As filed with the Securities and Exchange Commission on
November 17, 2015
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
_______________________________
FORM S-3
REGISTRATION
STATEMENT
UNDER
THE SECURITIES ACT OF 1933
_______________________________
NET 1 UEPS TECHNOLOGIES,
INC.
(Exact name of registrant as specified in its
charter)
| Florida |
98-0171860 |
| (State or other jurisdiction of |
(I.R.S. Employer Identification No.) |
| incorporation or organization) |
|
President Place, 4th Floor
Cnr. Jan Smuts Avenue
and Bolton Road
Rosebank, Johannesburg, South
Africa
(2711) 343-2000
(Address, including zip
code, and telephone number, including area code, of registrant’s principal
executive offices)
_______________________________
Serge C.P. Belamant
Chief Executive Officer
Net 1 UEPS Technologies,
Inc.
President Place, 4th Floor
Cnr. Jan Smuts Avenue and
Bolton Road
Rosebank, Johannesburg, South Africa
(2711)
343-2000
(Name, address, including zip code, and telephone
number including area code, of agent for service)
_______________________________
Copy
to:
Marjorie Sybul Adams, Esq.
DLA Piper LLP (US)
1251 Avenue of the Americas
New York, NY 10020
Tel: (212) 335-4500
Fax: (212)
335-4501
_______________________________
Approximate date of commencement of proposed sale to the
public: From time to time after the effective date of this registration
statement.
If the only securities being registered on this Form are being
offered pursuant to dividend or interest reinvestment plans, please check the
following box. [ ]
If any of the securities being registered on this Form are to
be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection with
dividend or interest reinvestment plans, check the following box. [X]
If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. [ ]
If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]
If this Form is a registration statement pursuant to General
Instruction I.D. or a post-effective amendment thereto that shall become
effective upon filing with the Commission pursuant to Rule 462(e) under the
Securities Act, check the following box. [ ]
If this Form is a post-effective amendment to a registration
statement filed pursuant to General Instruction I.D. filed to register
additional securities or additional classes of securities pursuant to Rule
413(b) under the Securities Act, check the following box. [ ]
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of “large accelerated filer,”
“accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.
| Large accelerated filer [ ] |
Accelerated filer [X] |
Non-accelerated filer [ ] |
Smaller reporting company [ ] |
| |
|
(Do not check if a smaller reporting company) |
|
CALCULATION OF REGISTRATION FEE
Title of each class of
securities
to be registered |
Amount to
be
registered(1) |
Proposed maximum
offering price
per
unit(2) |
Proposed maximum
aggregate
offering
price |
Amount of
registration
fee |
| Primary Offering by Net 1 UEPS
Technologies, Inc. |
|
|
|
|
Common
Stock, par
value
$0.001
per share |
|
|
|
|
Preferred
Stock, par
value
$0.001
per share |
|
|
|
|
| Debt
Securities |
|
|
|
|
| Warrants
|
|
|
|
|
| Units |
|
|
|
|
Total
for
Primary
Offering
|
|
|
$500,000,000
|
$50,350(3)
|
| (1) |
There are being registered hereunder such indeterminate
number of shares of common stock and preferred stock, such indeterminate
principal amount of debt securities, such indeterminate number of warrants
to purchase common stock, preferred stock or debt securities, and such
indeterminate number of units as shall have an aggregate initial offering
price not to exceed $500,000,000. If any debt securities are issued at an
original issue discount, then the offering price of such debt securities
shall be in such greater principal amount as shall result in an aggregate
offering price not to exceed $500,000,000. Any securities registered
hereunder may be sold separately or as units with the other securities
registered hereunder. The securities registered hereunder also include
such indeterminate number of shares of common stock and preferred stock
and amount of debt securities as may be issued upon conversion of or
exchange for preferred stock or debt securities that provide for
conversion or exchange, upon exercise of warrants or pursuant to the
antidilution provisions of any of such securities. In addition, pursuant
to Rule 416 under the Securities Act of 1933, as amended, the shares being
registered hereunder include such indeterminate number of shares of common
stock and preferred stock as may be issuable with respect to the shares
being registered hereunder as a result of stock splits, stock dividends or
similar transactions. |
| (2) |
The proposed maximum offering price per unit of each
class of security registered hereunder will be determined from time to
time in connection with, and at the time of, the issuance of the
securities and is not specified as to each class of security pursuant to
General Instruction II.D. of Form S-3, as amended. |
| (3) |
Calculated pursuant to Rule 457(o) under the Securities
Act of 1933, as amended, based on the proposed maximum aggregate offering
price of all securities being registered. Pursuant to Rule 457(p) under
the Securities Act of 1933, as amended, $63,855.25 of previously paid filing
fees have not been used with respect to certain securities that were
previously registered on Form S-3 (Registration No. 333-180059) initially
filed with the Securities and Exchange Commission by Net 1 UEPS
Technologies, Inc. on March 13, 2012 and amended on March 23, 2012. Such
securities remain unsold and the filing fee therefor is hereby offset
against the currently due filing fee. As a result, no fee is being paid in
connection with this filing. |
The registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date
until the registrant shall file a further amendment which specifically states
that this registration statement shall thereafter become effective in accordance
with Section 8(a) of the Securities Act of 1933, as amended, or until the
registration statement shall become effective on such date as the Securities and
Exchange Commission, acting pursuant to said Section 8(a), may determine.
|
The information in this prospectus is
not complete and may be changed or supplemented. We may not sell these
securities until the registration statement that we filed with the
Securities and Exchange Commission is effective. This prospectus is not an
offer to sell these securities and it is not soliciting an offer to buy
these securities in any state where the offer or sale is not permitted.
|
SUBJECT TO COMPLETION,
DATED NOVEMBER 17,
2015
PROSPECTUS
$500,000,000
Common Stock, Preferred Stock, Debt
Securities,
Warrants and Units
This prospectus covers our offer and sale from
time to time of any combination of common stock, preferred stock, debt
securities, warrants or units described in this prospectus in one or more
offerings. This prospectus provides a general description of the securities we
may offer and sell. Each time we offer and sell securities we will provide
specific terms of the securities offered in a supplement to this prospectus. The
prospectus supplement may also add, update or change information contained in
this prospectus. You should read this prospectus and the applicable prospectus
supplement carefully before you invest in any securities. This prospectus may
not be used to consummate a sale of securities by us unless accompanied by the
applicable prospectus supplement. The aggregate offering price of all securities
sold by us under this prospectus may not exceed $500,000,000.
The
securities may be offered and sold by us to or through one or more underwriters,
dealers or agents or directly to purchasers on a continuous or delayed basis.
See “Plan of Distribution.”
Our
common stock is currently listed on The Nasdaq Global Select Market under the
symbol “UEPS.” On November 16, 2015, the last reported sale price of our common
stock was $14.91 per share. We may sell the shares of common stock through
underwriters, through dealers, directly to one or more institutional purchasers
or through agents.
Investing in our securities involves risks that are referenced under the caption
“Risk Factors” on page 4 of this prospectus. You should read this document and
any prospectus supplement carefully before you invest.
This prospectus will allow us to offer for sale securities over time. We will
provide a prospectus supplement each time we issue securities, which will inform
you about the specific terms of that offering. We may also authorize one or more
free writing prospectuses to be provided to you in connection with these
offerings. The prospectus supplement and any related free writing prospectus may
add, update or change information contained in this prospectus. You should
carefully read this prospectus, the applicable prospectus supplement and any
related free writing prospectus, as well as the documents incorporated by
reference before you invest in any of our securities. This prospectus may not be used to sell the
securities unless accompanied by a prospectus supplement.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if this
prospectus is truthful and complete. Any representation to the contrary is a
criminal offense.
This prospectus is
dated
, 2015.
TABLE OF CONTENTS
_______________________
ABOUT THIS PROSPECTUS
This
prospectus is part of a registration statement on Form S-3 that we filed with
the Securities and Exchange Commission, or the SEC, utilizing a “shelf”
registration process under the Securities Act of 1933, as amended (the
“Securities Act”). Under this shelf registration process, we may offer and sell,
from time to time, any combination of the securities described in this
prospectus in one or more offerings up to a total dollar amount of $500,000,000.
This prospectus provides you with a general description of the securities we may
offer and sell. Each time we sell securities under this shelf registration, we
will, to the extent required by law, provide a prospectus supplement that will
contain specific information about the terms of that offering. The prospectus
supplement may also add, update or change information contained in this
prospectus. This prospectus does not contain all of the information included in
the registration statement. For a more complete understanding of the offering of
the securities, you should refer to the registration statement, including its
exhibits. You should read this prospectus, the applicable prospectus supplement,
the information and documents incorporated herein by reference and the
additional information described under the heading “Where You Can Find More
Information” before making an investment decision.
We
have not authorized any dealer, salesman or other person to give any information
or to make any representation other than those contained or incorporated by
reference in this prospectus and any accompanying supplement to this prospectus.
You must not rely upon any information or representation not contained or
incorporated by reference in this prospectus or any accompanying prospectus
supplement.
This
prospectus and any accompanying supplement to this prospectus do not constitute
an offer to sell or the solicitation of an offer to buy any securities other
than the registered securities to which they relate, nor do this prospectus and
any accompanying supplement to this prospectus constitute an offer to sell or
the solicitation of an offer to buy securities in any jurisdiction to any person
to whom it is unlawful to make such offer or solicitation in such jurisdiction.
You should not assume that the information contained in this prospectus and any
accompanying prospectus supplement is accurate on any date subsequent to the
date set forth on the front of the document or that any information we have
incorporated by reference is correct on any date subsequent to the date of the
document incorporated by reference, even though this prospectus and any
accompanying prospectus supplement is delivered or securities sold on a later
date.
This
prospectus may not be used by us to consummate sales of our securities, unless
it is accompanied by a prospectus supplement. To the extent there are
inconsistencies between any prospectus supplement, this prospectus and any
documents incorporated by reference, the document with the most recent date will
control.
Unless
the context otherwise requires, “Net1,” “Company,” “we,” “us” and “our” refer to
Net 1 UEPS Technologies, Inc. and its consolidated subsidiaries. References to
“securities” include any security that we might offer under this prospectus or
any prospectus supplement.
We
have filed or incorporated by reference exhibits to the registration statement
of which this prospectus forms a part. You should read the exhibits carefully
for provisions that may be important to you.
1
THE COMPANY
We
are a leading provider of payment solutions and transaction processing services
across multiple industries and in a number of emerging economies.
We
have developed and market a comprehensive transaction processing solution that
encompasses our smart card-based alternative payment system for the unbanked and
under-banked populations of developing economies and for mobile transaction
channels. Our market-leading system can enable the billions of people globally
who generally have limited or no access to a bank account to enter affordably
into electronic transactions with each other, government agencies, employers,
merchants and other financial service providers. Our universal electronic
payment system, or UEPS, and UEPS/EMV derivative discussed below, uses
biometrically secure smart cards that operate in real-time but offline, unlike
traditional payment systems offered by major banking institutions that require
immediate access through a communications network to a centralized computer.
This offline capability means that users of our system can conduct transactions
at any time with other card holders in even the most remote areas so long as a
smart card reader, which is often portable and battery powered, is available.
Our off-line systems also offer the highest level of availability and
affordability by removing any elements that are costly and are prone to outages.
Our latest version of the UEPS technology has been certified by the EuroPay,
MasterCard and Visa global standard, or EMV, which facilitates our traditionally
proprietary UEPS system to interoperate with the global EMV standard and allows
card holders to transact at any EMV-enabled point of sale terminal or automated
teller machine, ATM. The UEPS/EMV technology has been deployed on an extensive
scale in South Africa through the issuance of MasterCard-branded UEPS/EMV cards
to our social welfare grant customers. In addition to effecting purchases,
cash-backs and any form of payment, our system can be used for banking,
healthcare management, international money transfers, voting and identification.
We
also provide secure transaction technology solutions and services, by offering
transaction processing, financial and clinical risk management solutions to
various industries. We have extensive expertise in secure online transaction
processing, cryptography, mobile telephony, integrated circuit card (chip/smart
card) technologies, and the design and provision of financial and value-added
services to our cardholder base.
Our
technology is widely used in South Africa today, where we distribute pension and
welfare payments, using our UEPS/EMV technology, to over nine million recipient
cardholders across the entire country, process debit and credit card payment
transactions on behalf of a wide range of retailers through our EasyPay system,
process value-added services such as bill payments and prepaid airtime and
electricity for the major bill issuers and local councils in South Africa, and
provide mobile telephone top-up transactions for all of the South African mobile
carriers. We are the largest provider of third-party and associated payroll
payments in South Africa through our FIHRST service. We provide financial
inclusion services such as microloans, mobile transacting and prepaid utilities
to our cardholder base.
Internationally,
through KSNET, we are one of the top three value-added network, or VAN,
processors in South Korea, and we offer card processing, payment gateway and
banking value-added services in that country. Our XeoHealth service provides
funders and providers of healthcare in the United States with an on-line real-time
management system for healthcare transactions.
2
Our
ZAZOO business unit is responsible for the worldwide technical development and
commercialization of our array of web and mobile applications and payment
technologies, such as Mobile Virtual Card, or MVC, Chip and GSM licensing and
Virtual Top Up, or VTU, and has deployed solutions in many countries, including
South Africa, Namibia, Nigeria, Malawi, Cameroon, the Philippines, India and
Colombia.
We
are headquartered in Johannesburg, South Africa. More information about us is
available on our web site at www.net1.com. Information on our web site is not
incorporated by reference into this prospectus. Our principal executive offices
are located at President Place, 4th Floor, Cnr. Jan Smuts Avenue and Bolton
Road, Rosebank, Johannesburg, South Africa. Our phone number is (2711) 343-2000.
3
RISK FACTORS
Our
business is influenced by many factors that are difficult to predict, and that
involve uncertainties that may materially affect our actual operating results,
cash flows and financial condition. Before making an investment decision in our
securities, you should carefully consider the specific factors set forth under
the caption “Risk Factors” in the applicable prospectus supplement and in our
periodic reports filed with the SEC that are incorporated by reference herein
(including the “Risk Factors” section beginning on page 13 of our Annual Report
on Form 10-K for the fiscal year ended June 30, 2015) together with all of the
other information appearing in this prospectus, in the applicable prospectus
supplement or incorporated by reference into this prospectus in light of your
particular investment objectives and financial circumstances.
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
Forward-looking
statements in this prospectus and the documents incorporated by reference herein
are based on the beliefs and assumptions of our management and on information
currently available. Forward-looking statements include information about
possible or assumed future results of operations in “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” included in our most
recent Annual Report on Form 10-K, and other statements preceded by, followed by
or that include the words “may,” “will,” “should,” “could,” “would,” “expects,”
“plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,”
“potential” or “continue” or the negative of such terms and other comparable
terminology.
These
forward looking statements involve risks and uncertainties that could cause our
actual results to differ materially from those projected, anticipated or implied
in the forward-looking statements. Factors that might cause or contribute to
such differences include, but are not limited to, those discussed in “Risk
Factors.” You should not place undue reliance on these forward-looking
statements, which reflect our opinions only as of the date of this prospectus.
We undertake no obligation to release publicly any revisions to the
forward-looking statements after the date of this prospectus.
4
USE OF PROCEEDS
Unless
otherwise indicated in a prospectus supplement, we anticipate that the net
proceeds from our sale of any securities will be used for general corporate
purposes, including working capital, acquisitions, retirement of debt and other
business opportunities.
5
RATIO OF EARNINGS TO FIXED CHARGES
The
following table sets forth our ratio of earnings to fixed charges for the
periods indicated.
| |
Three Months Ended |
Fiscal Year Ended June
30, |
| |
September 30, |
|
|
|
|
|
| |
2015 |
2015 |
2014 |
2013 |
2012 |
2011 |
| Ratio of earnings to fixed charges |
31.32 |
28.44 |
14.34 |
3.90 |
7.02 |
4.92 |
The
ratios of earnings to fixed charges were computed by dividing earnings by fixed
charges. For purposes of calculating the above ratios, “earnings” consist of net
income from continuing operations before income tax expense and fixed charges.
“Fixed charges” consist of interest expense (which includes interest on
indebtedness and amortization of debt expense) and the portion of rents that we
believe to be representative of the interest factor.
6
DESCRIPTION OF SECURITIES
This
prospectus contains a summary of the securities that Net1 may sell. These
summaries are not meant to be a complete description of each security. However,
this prospectus and the accompanying prospectus supplement contain the material
terms of the securities being offered.
DESCRIPTION OF CAPITAL STOCK
Our
authorized capital stock consists of 200,000,000 shares of common stock and
50,000,000 shares of preferred stock. As of November 13, 2015, 47,322,702 shares
of our common stock, par value $0.001 per share, and no shares of our preferred
stock, were outstanding.
Common Stock
The
issued and outstanding shares of common stock are, and the shares of common
stock that we may issue in the future will be, validly issued, fully paid and
nonassessable. Holders of our common stock are entitled to share equally, share
for share, if dividends are declared on our common stock, whether payable in
cash, property or our securities. The shares of common stock are not convertible
and the holders thereof have no preemptive or subscription rights to purchase
any of our securities. Upon liquidation, dissolution or winding up of our
company, the holders of common stock are entitled to share equally, share for
share, in our assets which are legally available for distribution, after payment
of all debts and other liabilities and subject to the prior rights of any
holders of any series of preferred stock then outstanding. Each outstanding
share of common stock is entitled to one vote on all matters submitted to a vote
of shareholders. There is no cumulative voting. Except as otherwise required by
law or our amended and restated articles of incorporation, the holders of common
stock vote together as a single class on all matters submitted to a vote of
shareholders.
Our
common stock is listed on The Nasdaq Global Select Market, or Nasdaq, in the
United States under the symbol “UEPS” and on the Johannesburg Stock Exchange in
South Africa under the symbol “NT1.” Nasdaq is our principal market for the
trading of our common stock.
Preferred Stock
We
may issue shares of preferred stock in series and may, at the time of issuance,
determine the designations, preferences, conversion rights, cumulative,
relative, participating optional or other rights, preferences and limitations of
each series. Satisfaction of any dividend preferences of outstanding shares of
preferred stock would reduce the amount of funds available for the payment of
dividends on shares of common stock. Holders of shares of preferred stock may be
entitled to receive a preference payment in the event of any liquidation,
dissolution or winding-up of our company before any payment is made to the
holders of shares of common stock. In some circumstances, the issuance of shares
of preferred stock may render more difficult or tend to discourage a merger,
tender offer or proxy contest, the assumption of control by a holder of a large
block of our securities or the removal of incumbent management. Upon the
affirmative vote of a majority of the total number of directors then in office,
our board of directors, without shareholder approval, may issue shares of
preferred stock with voting and conversion rights which could adversely affect
the holders of shares of common stock.
7
DESCRIPTION OF DEBT SECURITIES
The
debt securities will be our direct unsecured general obligations. The debt
securities will be either senior debt securities or subordinated debt
securities. The debt securities will be issued under one or more separate
indentures between us and Wells Fargo Bank, National Association, as trustee.
Senior debt securities will be issued under a senior indenture, which we refer
to as the senior indenture. Subordinated debt securities will be issued under a
subordinated indenture, which we refer to as the subordinated indenture.
Together the senior indenture and the subordinated indenture are called the
indentures.
We
have summarized select portions of the material provisions of the indentures
below. The summary is not complete. The forms of the indentures have been filed
as exhibits to the registration statement of which this prospectus forms a part,
and you should read the indentures for provisions that may be important to you.
We will indicate in the applicable prospectus supplement any material variation
from the expected terms of the indentures described below.
General
The
debt securities will be our direct unsecured general obligations. The senior
debt securities will rank equally with all of our other senior and
unsubordinated debt. The subordinated debt securities will have a junior
position to all of our senior debt.
Because
we are a holding company that conducts all of its operations through
subsidiaries, holders of the debt securities will have a junior position to
claims of creditors of our subsidiaries, including trade creditors, debtholders,
secured creditors, taxing authorities, guarantee holders and any preferred
shareholders, except to the extent that the debt securities are guaranteed by
one or more subsidiary guarantees.
The
provisions of each indenture allow us to “reopen” a previous issue of a series
of debt securities and issue additional debt securities of that series.
A
prospectus supplement relating to any series of debt securities being offered
will include specific terms relating to the offering. The terms will be
established in an officers’ certificate or a supplemental indenture. The
officers’ certificate or supplemental indenture will be signed at the time of
issuance and will contain important information. The officers’ certificate or
supplemental indenture will be filed as an exhibit to a Current Report on Form
8-K of Net1, which will be publicly available. The officers’ certificate or
supplemental indenture will include some or all of the following terms for a
particular series of debt securities:
-
the title of the securities and any applicable CUSIP and/or ISIN numbers;
-
any limit on the amount that may be issued;
-
whether or not the debt securities will be issued in global form and who
the depositary will be;
8
-
the maturity date(s);
-
the interest rate or the method of computing the interest rate;
-
the date or dates from which interest will accrue, or how such date or
dates will be determined, and the interest payment date or dates and any
related record dates;
-
the place(s) where payments will be made;
-
Net1’s right, if any, to defer payment of interest and the maximum length
of any deferral period;
-
the terms and conditions on which the debt securities may be redeemed at
the option of Net1;
-
the date(s), if any, on which, and the price(s) at which Net1 is obligated
to redeem, or at the holder’s option to purchase, such series of debt
securities and other related terms and provisions;
-
any provisions granting special rights to holders when a specified event
occurs;
-
any changes to or additional events of default or covenants;
-
any special tax implications of the debt securities;
-
the denominations in which the debt securities will be issued, if other
than denominations of $1,000 and whole multiples of $1,000;
-
the subordination terms of any subordinated debt securities; and
-
any other terms that are not inconsistent with the indenture.
Fixed Rate Debt Securities
Each
fixed rate debt security will mature on the date specified in the applicable
prospectus supplement. Each fixed rate debt security will bear interest from the
date of issuance at the annual rate stated on its face until the principal is
paid or made available for payment. Interest on fixed rate debt securities will
be computed on the basis of a 360-day year of twelve 30-day months. Interest on
fixed rate debt securities will accrue from and including the most recent
interest payment date in respect of which interest has been paid or duly
provided for, or, if no interest has been paid or duly provided for, from and
including the issue date or any other date specified in a prospectus supplement
on which interest begins to accrue. Interest will accrue to but excluding the
next interest payment date, or, if earlier, the date of maturity or earlier
redemption or repayment, as the case may be.
Payments
of interest on fixed rate debt securities will be made on the interest payment
dates specified in the applicable prospectus supplement. However, if the first
interest payment date is less than 15 days after the date of issuance, interest
will not be paid on the first interest payment date, but will be paid on the
second interest payment date.
9
Unless
otherwise specified in the applicable prospectus supplement, if any scheduled
interest payment date, maturity date or date of redemption or repayment is not a
business day, then we may pay the applicable interest, principal and premium, if
any, on the next succeeding business day, and no additional interest will accrue
during the period from and after the scheduled interest payment date, maturity
date or date of redemption or repayment.
A
fixed rate debt security may pay a level amount in respect of both interest and
principal amortized over the life of the debt security. Payments of principal
and interest on amortizing debt securities will be made on the interest payment
dates specified in the applicable prospectus supplement, and at maturity or upon
any earlier redemption or repayment. Payments on amortizing debt securities will
be applied first to interest due and payable and then to the reduction of the
unpaid principal amount. We will provide to the original purchaser, and will
furnish to subsequent holders upon request to us, a table setting forth
repayment information for each amortizing debt security.
Floating Rate Debt Securities
Each
floating rate debt security will mature on the date specified in the applicable
prospectus supplement.
Unless
otherwise specified in the applicable prospectus supplement, each floating rate
debt security will bear interest at “LIBOR” plus a margin to be specified in the
applicable prospectus supplement. A floating rate debt security may also have
either or both of the following limitations on the interest rate:
-
a maximum limitation, or ceiling, on the rate of interest which may accrue
during any interest period, which we refer to as the “maximum interest rate”;
and/or
-
a minimum limitation, or floor, on the rate of interest that may accrue
during any interest period, which we refer to as the “minimum interest rate.”
Any
applicable maximum interest rate or minimum interest rate will be set forth in
the applicable prospectus supplement.
Interest
on floating rate debt securities will accrue from and including the most recent
interest payment date to which interest has been paid or duly provided for, or,
if no interest has been paid or duly provided for, from and including the issue
date or any other date specified in a prospectus supplement on which interest
begins to accrue. Interest will accrue to but excluding the next interest
payment date, or, if earlier, the date on which the principal has been paid or
duly made available for payment, except as described below.
The
interest rate in effect from the date of issue to the first interest reset date
for a floating rate debt security will be the initial interest rate specified in
the applicable prospectus supplement. We refer to this rate as the “initial
interest rate.” The interest rate on each floating rate debt security may be
reset daily, weekly, monthly, quarterly, semiannually or annually. This period
is the “interest reset period” and the first day of each interest reset period
is the “interest reset date.” The “interest determination date” for any interest
reset date is the day the calculation agent will refer to when determining the
new interest rate at which a floating rate will reset.
10
“LIBOR”
for each interest reset date, other than for the initial interest rate, will be
determined by the calculation agent as follows:
| |
(i) |
LIBOR will be the offered rate for deposits in U.S.
dollars for the three month period which appears on “Telerate Page 3750”
at approximately 11:00 a.m., London time, two “London banking days” prior
to the applicable interest reset date. |
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(ii) |
If this rate does not appear on the Telerate Page 3750,
the calculation agent will determine the rate on the basis of the rates at
which deposits in U.S. dollars are offered by four major banks in the
London interbank market (selected by us) at approximately 11:00 a.m.,
London time, two London banking days prior to the applicable interest
reset date to prime banks in the London interbank market for a period of
three months commencing on that interest reset date and in principal
amount equal to an amount not less than $1,000,000 that is representative
for a single transaction in such market at such time. In such case, the
calculation agent will request the principal London office of each of the
aforesaid major banks to provide a quotation of such rate. If at least two
such quotations are provided, LIBOR for that interest reset date will be
the average of the quotations. If fewer than two quotations are provided
as requested, LIBOR for that interest reset date will be the average of
the rates quoted by three major banks in New York, New York (selected by
us) at approximately 11:00 a.m., New York time, two London banking days
prior to the applicable interest reset date for loans in U.S. dollars to
leading banks for a period of three months commencing on that interest
reset date and in a principal amount equal to an amount not less than
$1,000,000 that is representative for a single transaction in such market
at such time; provided that if fewer than three quotations are provided as
requested, for the period until the next interest reset date, LIBOR will
be the same as the rate determined on the immediately preceding interest
reset date. |
The
interest reset dates will be specified in the applicable prospectus supplement.
If an interest reset date for any floating rate debt security falls on a day
that is not a business day, it will be postponed to the following business day,
except that, if that business day is in the next calendar month, the interest
reset date will be the immediately preceding business day.
A
“London banking day” is any day in which dealings in U.S. dollar deposits are
transacted in the London interbank market. “Telerate Page 3750” means the
display page so designated on the Telerate Service for the purpose of displaying
London interbank offered rates of major banks (or any successor page).
The
applicable prospectus supplement will specify a calculation agent for any issue
of floating rate debt securities. The calculation agent will, upon the request
of the holder of any floating rate debt security, provide the interest rate then
in effect. All calculations made by the calculation agent in the absence of
willful misconduct, bad faith or manifest error shall be conclusive for all
purposes and binding on us and the holders of the floating rate debt securities.
We may appoint a successor calculation agent at any time at our discretion and
without notice.
11
All
percentages resulting from any calculation of the interest rate with respect to
the floating rate debt securities will be rounded, if necessary, to the nearest
one-hundred thousandth of a percentage point, with five one-millionths of a
percentage point rounded upward (e.g., 9.876545% (or .09876545) would be rounded
to 9.87655% (or .0987655) and 9.876544% (or .09876544) would be rounded to
9.87654% (or .0987654)), and all dollar amounts in or resulting from any such
calculation will be rounded to the nearest cent (with one-half cent being
rounded upward).
Interest
on the floating rate debt securities will be computed and paid on the basis of a
360-day year and the actual number of days in each interest payment period. The
interest rate on the floating rate debt securities will in no event be higher
than the maximum rate permitted by New York law, as the same may be modified by
United States law of general application.
We
will pay interest on floating rate debt securities on the interest payment dates
specified in the applicable prospectus supplement. However, if the first
interest payment date is less than 15 days after the date of issuance, interest
will not be paid on the first interest payment date, but will be paid on the
second interest payment date. If any scheduled interest payment date, other than
the maturity date or any earlier redemption or repayment date, for any floating
rate debt security falls on a day that is not a business day, it will be
postponed to the following business day, except that if that business day would
fall in the next calendar month, the interest payment date will be the
immediately preceding business day. If the scheduled maturity date or any
earlier redemption or repayment date of a floating rate debt security falls on a
day that is not a business day, the payment of principal, premium, if any, and
interest, if any, will be made on the next succeeding business day, but interest
on that payment will not accrue during the period from and after the maturity,
redemption or repayment date.
Conversion or Exchange Rights
The
prospectus supplement will describe the terms, if any, on which a series of debt
securities may be convertible into or exchangeable for our common stock,
preferred stock, debt securities or other securities, or securities of third
parties. These terms will include provisions as to whether conversion or
exchange is mandatory, at the option of the holder or at the option of Net1.
These provisions may allow or require adjustment of the number of shares of
common stock or other securities of Net1 to be received by the holders of such
series of debt securities.
Optional Redemption
Unless
the prospectus supplement relating to any series of debt securities provides
otherwise with respect to such series, each series of debt securities will be
redeemable in whole at any time or in part from time to time, at our option, at
a redemption price equal to the greater of:
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100% of the principal amount of the series of debt
securities to be redeemed; or |
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the sum of the present values of the remaining scheduled
payments of principal and interest on the series of debt securities to be
redeemed (exclusive of interest accrued to the date of redemption)
discounted to the date of redemption on a semiannual basis (assuming a
360-day year consisting of twelve 30-day months) at the then current
Treasury Rate plus a spread as specified in the applicable prospectus
supplement. |
12
In
each case we will pay accrued and unpaid interest on the principal amount to be
redeemed to the date of redemption.
“Comparable
Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the remaining
term (“Remaining Life”) of the series of debt securities to be redeemed that
would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of such series of debt securities.
“Comparable
Treasury Price” means, with respect to any redemption date, (1) the average of
the Reference Treasury Dealer Quotations for such redemption date, after
excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if
the trustee obtains fewer than four such Reference Treasury Dealer Quotations,
the average of all such quotations.
“Independent
Investment Banker” means the investment banking institution or institutions
specified in the applicable prospectus supplement and their respective
successors, or, if such firms or the successors, if any, to such firm or firms,
as the case may be, are unwilling or unable to select the Comparable Treasury
Issue, an independent investment banking institution of national standing
appointed by us.
“Reference
Treasury Dealer” means the investment banking institutions specified as such in
the applicable prospectus supplement; provided, however, that if any of them
ceases to be a primary U.S. Government securities dealers (each a “Primary
Treasury Dealer”), we will substitute another Primary Treasury Dealer.
“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by us, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to us by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third business day
preceding such redemption date.
“Treasury
Rate” means, with respect to any redemption date, the rate per year equal
to:
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(i) |
the yield, under the heading which represents the average
for the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Board of Governors of the
Federal Reserve System and which establishes yields on actively traded
United States Treasury securities adjusted to constant maturity under the
caption “Treasury Constant Maturities,” for the maturity corresponding to
the Comparable Treasury Issue; provided that, if no maturity is within
three months before or after the remaining life of the series of debt
securities to be redeemed, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue shall be determined
and the Treasury Rate shall be interpolated or extrapolated from those
yields on a straight line basis, rounding to the nearest month;
or |
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(ii) |
if such release (or any successor release) is not
published during the week preceding the calculation date or does
not contain such yields, the rate per year equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue, calculated using a price for
the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such redemption date. |
13
The
Treasury Rate will be calculated on the third business day preceding the
redemption date. As used in the immediately preceding sentence and in the
definition of “Reference Treasury Dealer Quotations” above, the term “business
day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain
closed. The Trustee shall have no obligation to calculate the redemption
price.
Notice
of any redemption will be mailed at least 30 but not more than 60 days before
the redemption date to each holder of record of the series of debt securities to
be redeemed at its registered address. The notice of redemption will state,
among other things, the amount of the series of debt securities to be redeemed,
the redemption date, the manner in which the redemption price will be calculated
and the place or places that payment will be made upon presentation and
surrender of the series of debt securities to be redeemed. If less than all of a
series of debt securities are to be redeemed at our option, the trustee will
select, in a manner it deems fair and appropriate (and in accordance with the
procedures of the depositary), the debt securities of that series, or portions
of the debt securities of that series, to be redeemed. Unless we default in the
payment of the redemption price with respect to any debt securities called for
redemption, interest will cease to accrue on such debt securities at the
redemption date.
We
will not be required (i) to issue, register the transfer of or exchange any
series of debt securities during a period beginning at the opening of business
15 days before the day of mailing of a notice of redemption and ending at the
close of business on the day of such mailing, or (ii) to register the transfer
of or exchange any debt securities of any series so selected for redemption in
whole or in part, except the unredeemed portion of any such series of debt
securities being redeemed in part.
Covenants
Under
the indentures, Net1 agrees to pay the interest, principal and any premium on
the debt securities when due, and to maintain a place of payment. In addition,
we must comply with the covenants described below:
Limitation
on Liens on Stock of our Significant Subsidiaries. The indentures prohibit
us and our subsidiaries from directly or indirectly creating, assuming,
incurring or permitting to exist any Indebtedness secured by any lien on the
voting stock or voting equity interest of our Significant Subsidiaries (as
defined in the indentures) unless the debt securities then outstanding (and, if
we so elect, any other Indebtedness of Net1 that is not subordinate to such debt
securities and with respect to which we are obligated to provide such security)
are secured equally and ratably with such Indebtedness for so long as such
Indebtedness is so secured. “Indebtedness” is defined as the principal of and
any premium and interest due on indebtedness of a person (as defined in the
indentures), whether outstanding on the original date of issuance of a series of
debt securities or thereafter created, incurred or assumed, which is (a)
indebtedness for money borrowed and (b) any amendments, renewals, extensions,
modifications and refundings of any such indebtedness. For the purposes of this
definition, “indebtedness for money borrowed” means (1) any obligation of, or any obligation guaranteed by, such
person for the repayment of borrowed money, whether or not evidenced by bonds,
debentures, notes or other written instruments, (2) any obligation of, or any
obligation guaranteed by, such person evidenced by bonds, debentures, notes or
similar written instruments, including obligations assumed or incurred in
connection with the acquisition of property, assets or businesses (provided,
however, that the deferred purchase price of any business or property or assets
shall not be considered Indebtedness if the purchase price thereof is payable in
full within 90 days from the date on which such indebtedness was created), and
(3) any obligations of such person as lessee under leases required to be
capitalized on the balance sheet of the lessee under generally accepted
accounting principles and leases of property or assets made as part of any sale
and lease-back transaction to which such person is a party. For purposes of this
covenant only, Indebtedness also includes any obligation of, or any obligation
guaranteed by, any person for the payment of amounts due under a swap agreement
or similar instrument or agreement, or under a foreign currency hedge or similar
instrument or agreement. If we are required to secure outstanding debt
securities equally and ratably with other Indebtedness under this covenant, we
will be required to document our compliance with the covenant and enter into a
supplemental agreement or indenture and to take such action as we may deem
advisable to enable us to enforce the rights of the holders of the outstanding
debt securities so secured.
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Provision of Compliance Certificate. We are required
under the indentures to deliver to the trustee within 120 days after the end of
each fiscal year an officer’s certificate certifying as to our compliance with
all conditions and covenants under the relevant indenture, or if we are not in
compliance, identifying and describing the nature and status of such
non-compliance.
Consolidation, Merger or Sale
The
indentures do not restrict the ability of Net1 to merge or consolidate, or sell,
convey, transfer or lease all or substantially all of its assets as long as
certain conditions are met. We may only merge or consolidate with, or convey,
transfer or lease all of our assets to, any person, if doing so will not result
in an event of default. Any such successor, acquiror or lessor of such assets
must expressly assume all of the obligations of Net1 under the indentures and
the debt securities and will succeed to every right and power of Net1 under the
indentures. Thereafter, except in the case of a lease, the predecessor or
transferor of such assets will be relieved of all obligations and covenants
under the relevant indenture and debt securities.
Events of Default Under the Indentures
The following are events of default under the indentures with
respect to any series of debt securities issued:
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we fail to pay interest when due and such failure continues for 90 days,
unless the time for payment has been properly extended or deferred in
accordance with the terms of the particular series;
-
we fail to pay the principal or any premium when due, unless the maturity
has been properly extended in accordance with the terms of the particular
series;
-
we fail to observe or perform any other covenant or agreement contained in
the debt securities or the indentures, other than a covenant or agreement
specifically relating to another series of debt securities, and such
failure continues for 90 days after we receive a notice of default from the
trustee or from the holders of at least 25% in aggregate principal amount of
the outstanding debt securities of all of the affected series;
15
- certain events of bankruptcy or insolvency, whether voluntary or not; and
- any additional events of default that may be established with respect to a
particular series of debt securities under the indentures, as may be specified
in the applicable prospectus supplement.
If,
with regard to any series, an event of default resulting from a failure to pay
principal, any premium or interest occurs and is continuing, the trustee or the
holders of at least 25% in aggregate principal amount of the outstanding debt
securities of that series may declare the principal of all debt securities of
that series immediately due and payable.
If
an event of default other than a failure to pay principal, any premium or
interest occurs and is continuing, the trustee or the holders of at least 25% in
aggregate principal amount of the outstanding debt securities of all affected
series (all such series voting together as a single class) may declare the
principal of all debt securities of such affected series immediately due and
payable.
The
holders of a majority in principal amount of the outstanding debt securities of
all affected series (voting together as a single class) may waive any past
default with respect to such series and its consequences, except a default or
events of default regarding payment of principal, any premium or interest, in
which case the holders of the outstanding debt securities of each affected
series shall vote to waive such default or event of default as a separate class.
Such a waiver will eliminate the default.
Unless
otherwise specified in the indentures, if an event of default occurs and is
continuing, the trustee will be under no obligation to exercise any of its
rights or powers under the relevant indenture unless the holders of the debt
securities have offered the trustee indemnity satisfactory to the trustee
against the costs, expenses and liabilities that it might incur. The holders of
a majority in principal amount of the outstanding debt securities of all series
affected by an event of default, voting together as a single class, or, in the
event of a default in the payment of principal, any premium or interest, the
holders of a majority of the principal amount outstanding of each affected
series voting as a separate class, will have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
trustee, or exercising any trust or power conferred on the trustee with respect
to the debt securities of such series, provided that:
-
such direction is not in conflict with any law or the applicable indenture
or unduly prejudicial to the rights of holders of any other series of debt
securities outstanding under the applicable indenture; and
-
the trustee need not take any action that might involve it in personal
liability.
A
holder of the debt securities of a particular series will only have the right to
institute a proceeding under the indentures or to appoint a receiver or trustee,
or to seek other remedies, in each case with respect to such series of debt
securities, if:
16
-
the holder has given written notice to the trustee of a continuing event of
default;
-
in the case of an event of default relating to the payment of principal,
any premium or interest, the holders of at least 25% in aggregate principal
amount of the outstanding debt securities of the particular series have made
written request to the trustee to institute proceedings as trustee;
-
in the case of an event of default not relating to payment of principal,
any premium or interest, the holders of at least 25% in aggregate principal
amount of the outstanding debt securities of all series affected by such event
of default (voting together as a single class) have made written request to
the trustee to institute proceedings as trustee;
-
such holders have offered indemnity satisfactory to the trustee to cover
the cost of the proceedings; and
-
the trustee does not institute a proceeding, and does not receive
conflicting directions from a majority in principal amount of the outstanding
debt securities of (i) the particular series, in the case of an event of
default relating to the payment of principal, any premium or interest or (ii)
all affected series, in the case of an event of default not relating to the
payment of principal, any premium or interest, in each case, within 60 days of
receiving the written notice of an event of default.
Modification of Indenture; Waiver
Without the consent of any holders of debt securities, Net1 and
the trustee may change an indenture:
-
to fix any ambiguity, defect or inconsistency in the indenture;
-
to effect the assumption of a successor corporation of our obligations
under such indenture and the outstanding debt securities;
-
to add to our covenants for the benefit of the holders of all or any series
of debt securities under such indenture or surrender any right or power we
have under such indenture;
-
to change anything that does not materially adversely affect the interests
of any holder of debt securities of any series; and
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to effect certain other limited purposes described in the indenture.
The
rights of holders of a series of debt securities may be changed by Net1 and the
trustee with the written consent of the holders of a majority of the principal
amount of the outstanding debt securities of all series then outstanding under
the relevant indenture (all such series voting together as a single class).
However, the following changes may only be made with the consent of each holder
of debt securities of each series affected by the change:
- extending the fixed maturity;
17
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reducing the principal amount;
-
reducing the rate of or extending the time of payment of interest;
-
reducing any premium payable upon redemption;
-
reducing the percentage of debt securities referred to above, the holders
of which are required to consent to any amendment; or
-
in respect of the subordinated indenture, making any change to the
subordination terms of any debt security that would adversely affect the
holders of the debt securities of that series.
Rights and Duties of the Trustee
The
trustee, except when there is an event of default, will perform only those
duties as are specifically stated in the indentures. If an event of default has
occurred with respect to any series of debt securities, the trustee shall
exercise with respect to such debt securities the rights and powers it has under
the indenture and use the same degree of care and skill as a prudent person
would exercise or use in the conduct of his or her own affairs. Except as
provided in the preceding sentence, the trustee is not required to exercise any
of the powers given it by the indentures at the request of any holder of debt
securities unless it is offered security or indemnity satisfactory to it against
the costs, expenses and liabilities that it might incur. The trustee is not
required to spend or risk its own money or otherwise become financially liable
while performing its duties or exercising its rights or powers unless it
reasonably believes that it will be repaid or receive adequate indemnity. The
trustee will not be deemed to have any notice of any default or event of default
unless a responsible officer of the trustee has actual knowledge of or receives
written notice of the default which specifies the affected securities and the
relevant indenture. Furthermore, the rights and protections of the trustee,
including its right of indemnification under the indentures, extend to the
trustee’s officers, directors, agents and employees, and will survive the
trustee’s resignation and removal and termination of the indentures.
Payment and Paying Agents
We
will pay interest on any debt securities to the person in whose name the debt
securities are registered on the regular record date for the applicable interest
payment date.
We
will pay principal, any premium and interest on the debt securities of a
particular series at the office of one or more paying agents that we designate
for that series. Unless otherwise stated in the applicable supplemental
indenture and prospectus supplement, we will initially designate the corporate
trust office of the trustee in the City of New York as our sole paying agent. We
will be required to maintain a paying agent in each place of payment for the
debt securities.
All
money we pay to a paying agent or the trustee for the payment of principal, any
premium or interest on any debt security which remains unclaimed for a period of
two years after the principal, premium or interest has become due and payable
will, upon our request, be repaid to us, and the holder of the debt security may
then look only to us for payment of those amounts.
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Governing Law
The
indentures and the debt securities will be governed by and interpreted in
accordance with the laws of the State of New York.
Subordination of Subordinated Debt Securities
The
subordinated debt securities will be unsecured and will be subordinate and
junior in priority of payment to our other indebtedness on the terms described
in the prospectus supplement relating to such securities. The subordinated
indenture does not limit the amount of subordinated debt securities which we may
issue, nor does it limit our ability to issue any other secured or unsecured
debt.
The
prospectus supplement relating to any series of subordinated debt securities
will disclose the amount of debt of Net1 that will be senior to those
subordinated debt securities.
Subsidiary Guarantees
If
specified in the prospectus supplement, certain of our subsidiaries may
guarantee our obligations relating to debt securities issued under this
prospectus. The specific terms and provisions of each subsidiary guarantee will
be disclosed in the applicable prospectus supplement.
DESCRIPTION OF WARRANTS
We
may issue warrants to purchase our debt or equity securities or securities of
third parties or other rights, including rights to receive payment in cash or
securities based on the value, rate or price of one or more specified
commodities, currencies, securities or indices, or any combination of the
foregoing. Warrants may be issued independently or together with any other
securities and may be attached to, or separate from, such securities. Each
series of warrants will be issued under a separate warrant agreement to be
entered into between us and a warrant agent. The terms of any warrants to be
issued and a description of the material provisions of the applicable warrant
agreement will be set forth in the applicable prospectus supplement.
DESCRIPTION OF UNITS
As
specified in the applicable prospectus supplement, we may issue units consisting
of warrants, debt securities, shares of preferred stock, shares of common stock
or any combination of such securities.
FORMS OF SECURITIES
Each
debt security, warrant and unit will be represented either by a certificate
issued in definitive form to a particular investor or by one or more global
securities representing the entire issuance of securities. Certificated
securities in definitive form and global securities will be issued in registered
form. Definitive securities name you or your nominee as the owner of the
security, and in order to transfer or exchange these securities or to receive
payments other than interest or other interim payments, you or your nominee must
physically deliver the securities to the trustee, registrar, paying agent or
other agent, as applicable. Global securities name a depositary or its nominee as the owner of the debt securities,
warrants or units represented by these global securities. The depositary
maintains a computerized system that will reflect each investor’s beneficial
ownership of the securities through an account maintained by the investor with
its broker/dealer, bank, trust company or other representative, as we explain
more fully below.
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Registered Global Securities
We
may issue the registered debt securities, warrants and units in the form of one
or more fully registered global securities that will be deposited with a
depositary or its nominee identified in the applicable prospectus supplement and
registered in the name of that depositary or nominee. In those cases, one or
more registered global securities will be issued in a denomination or aggregate
denominations equal to the portion of the aggregate principal or face amount of
the securities to be represented by registered global securities. Unless and
until it is exchanged in whole for securities in definitive registered form, a
registered global security may not be transferred except as a whole by and among
the depositary for the registered global security, the nominees of the
depositary or any successors of the depositary or those nominees.
If
not described below, any specific terms of the depositary arrangement with
respect to any securities to be represented by a registered global security will
be described in the prospectus supplement relating to those securities. We
anticipate that the following provisions will apply to all depositary
arrangements.
Ownership
of beneficial interests in a registered global security will be limited to
persons, called participants, that have accounts with the depositary or persons
that may hold interests through participants. Upon the issuance of a registered
global security, the depositary will credit, on its book-entry registration and
transfer system, the participants’ accounts with the respective principal or
face amounts of the securities beneficially owned by the participants. Any
dealers, underwriters or agents participating in the distribution of the
securities will designate the accounts to be credited. Ownership of beneficial
interests in a registered global security will be shown on, and the transfer of
ownership interests will be effected only through, records maintained by the
depositary, with respect to interests of participants, and on the records of
participants, with respect to interests of persons holding through participants.
The laws of some states may require that some purchasers of securities take
physical delivery of these securities in definitive form. These laws may impair
your ability to own, transfer or pledge beneficial interests in registered
global securities.
So
long as the depositary, or its nominee, is the registered owner of a registered
global security, that depositary or its nominee, as the case may be, will be
considered the sole owner or holder of the securities represented by the
registered global security for all purposes under the applicable indenture,
warrant agreement or unit agreement. Except as described below, owners of
beneficial interests in a registered global security will not be entitled to
have the securities represented by the registered global security registered in
their names, will not receive or be entitled to receive physical delivery of the
securities in definitive form and will not be considered the owners or holders
of the securities under the applicable indenture, warrant agreement or unit
agreement. Accordingly, each person owning a beneficial interest in a registered
global security must rely on the procedures of the depositary for that
registered global security and, if that person is not a participant, on the
procedures of the participant through which the person owns its interest, to
exercise any rights of a holder under the applicable indenture, warrant
agreement or unit agreement. We understand that under existing industry
practices, if we request any action of holders or if an owner of a beneficial interest in a
registered global security desires to give or take any action that a holder is
entitled to give or take under the applicable indenture, warrant agreement or
unit agreement, the depositary for the registered global security would
authorize the participants holding the relevant beneficial interests to give or
take that action, and the participants would authorize beneficial owners owning
through them to give or take that action or would otherwise act upon the
instructions of beneficial owners holding through them.
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Principal,
premium, if any, and interest payments on debt securities, and any payments to
holders with respect to warrants or units, represented by a registered global
security registered in the name of a depositary or its nominee will be made to
the depositary or its nominee, as the case may be, as the registered owner of
the registered global security. None of Net1, the trustees, the warrant agents,
the unit agents or any other agent of Net1, agent of the trustees or agent of
the warrant agents or unit agents will have any responsibility or liability for
any aspect of the records relating to payments made on account of beneficial
ownership interests in the registered global security or for maintaining,
supervising or reviewing any records relating to those beneficial ownership
interests.
We
expect that the depositary for any of the securities represented by a registered
global security, upon receipt of any payment of principal, premium, interest or
other distribution of underlying securities or other property to holders on that
registered global security, will immediately credit participants’ accounts in
amounts proportionate to their respective beneficial interests in that
registered global security as shown on the records of the depositary. We also
expect that payments by participants to owners of beneficial interests in a
registered global security held through participants will be governed by
standing customer instructions and customary practices, as is now the case with
the securities held for the accounts of customers in bearer form or registered
in “street name,” and will be the responsibility of those participants.
If
the depositary for any of these securities represented by a registered global
security is at any time unwilling or unable to continue as depositary or ceases
to be a clearing agency registered under the Exchange Act, and a successor
depositary registered as a clearing agency under the Exchange Act is not
appointed by us within 90 days, we will issue securities in definitive form in
exchange for the registered global security that had been held by the
depositary. Any securities issued in definitive form in exchange for a
registered global security will be registered in the name or names that the
depositary gives to the relevant trustee, warrant agent, unit agent or other
relevant agent of ours or theirs. It is expected that the depositary’s
instructions will be based upon directions received by the depositary from
participants with respect to ownership of beneficial interests in the registered
global security that had been held by the depositary.
21
PLAN OF DISTRIBUTION
We
may sell or dispose of the securities in one or more of the following ways (or
in any combination) from time to time:
• through underwriters or dealers;
•
directly to a limited number of purchasers or to a single purchaser
(including block transactions);
•
through agents; or
•
an offering of shares by way of a distribution to shareholders, partners
or members.
The
prospectus supplement will state the terms of the offering of the securities,
including:
• the name or names of any underwriters, dealers or agents;
•
the purchase price of such securities and the proceeds to be received by us, if
any;
•
any underwriting discounts or agency fees and other items constituting
underwriters’ or agents’ compensation;
•
any initial public offering price;
•
any discounts or concessions allowed or reallowed or paid to dealers; and
•
any securities exchanges on which the securities may be listed.
Any
initial public offering price and any discounts or concessions allowed or
reallowed or paid to dealers may be changed from time to time.
If
we use underwriters in the sale, the securities will be acquired by the
underwriters for their own account and may be resold from time to time in one or
more transactions, including:
•
negotiated transactions;
•
at a fixed public offering price or prices, which may be changed;
•
at market prices prevailing at the time of sale;
•
at prices related to prevailing market prices; or
•
at negotiated prices.
22
Unless
otherwise stated in a prospectus supplement, the obligations of the underwriters
to purchase any securities will be conditioned on customary closing conditions
and the underwriters will be obligated to purchase all of such series of
securities, if any are purchased.
We
may sell the securities through agents from time to time. The prospectus
supplement will name any agent involved in the offer or sale of the securities
and any commissions we pay to them. Generally, any agent will be acting on a
best efforts basis for the period of its appointment.
We
may authorize underwriters, dealers or agents to solicit offers by certain
purchasers to purchase the securities from us at the public offering price set
forth in the prospectus supplement pursuant to delayed delivery contracts
providing for payment and delivery on a specified date in the future. The
contracts will be subject only to those conditions set forth in the prospectus
supplement, and the prospectus supplement will set forth any commissions we pay
for solicitation of these contracts.
Underwriters
and agents may be entitled under agreements entered into with us for
indemnification by us against certain civil liabilities, including liabilities
under the Securities Act, or to contribution with respect to payments which the
underwriters or agents may be required to make. Underwriters and agents may be
customers of, engage in transactions with, or perform services for us and our
affiliates in the ordinary course of business.
Each
series of securities will be a new issue of securities and will have no
established trading market other than the common stock which is listed on The
Nasdaq Global Select Market. Any underwriters to whom securities are sold for
public offering and sale may make a market in the securities, but such
underwriters will not be obligated to do so and may discontinue any market
making at any time without notice. The securities, other than the common stock,
may or may not be listed on a national securities exchange.
WHERE YOU CAN FIND MORE INFORMATION
We
file annual, quarterly and current reports, proxy statements and other
information with the SEC. You may read and copy any document we file with the
SEC at the SEC’s public reference room at 100 F Street NE, Room 1580,
Washington, D.C. 20549. You may obtain information on the operation of the SEC’s
public reference facilities by calling the SEC at 1-800-SEC-0330. You can
request copies of these documents, upon payment of a duplicating fee, by writing
to the SEC at its principal office at 100 F Street NE, Room 1580, Washington,
D.C. 20549-1004. The SEC maintains a website at http://www.sec.gov that contains
reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC. Our SEC filings are accessible
through the internet at that website. Our reports on Forms 10-K, 10-Q and 8-K,
and amendments to those reports, are also available for download, free of
charge, as soon as reasonably practicable after these reports are filed with the
SEC, at our website at www.net1.com. The content of our website is not a part of
this prospectus.
INCORPORATION OF INFORMATION BY REFERENCE
The
SEC allows us to “incorporate by reference” the information we file with it,
which means that we can disclose important information to you by referring you
to those documents. The information incorporated by reference is considered to
be part of this prospectus, and information that we file later with the SEC will
automatically update and supersede this information. We incorporate by reference
the documents listed below and any future filings with the SEC under Sections
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), between the date of this
prospectus and the termination of the offering of the securities:
23
-
Annual Report on Form 10-K for the fiscal year ended June 30, 2015 filed on
August 20, 2015;
-
Current Reports on Form 8-K filed on August 21, 2015, September 17, 2015,
October 15, 2015, November 5, 2015 and November 12, 2015 (only the Current
Report on Form 8-K containing Item 5.07 disclosure);
-
Definitive Proxy Statement on Schedule 14A filed with the SEC on October 2,
2015; and
-
Quarterly Report on Form 10-Q for the quarter ended September 30, 2015,
filed on November 5, 2015.
We
will provide without charge to each person, including any beneficial owner, to
whom this prospectus is delivered, upon his or her written or oral request, a
copy of any or all documents referred to above which have been or may be
incorporated by reference into this prospectus but not delivered with this
prospectus excluding exhibits to those documents unless they are specifically
incorporated by reference into those documents. You can request those documents
from Mr. Herman G. Kotzé at President Place, 4th Floor, Cnr. Jan Smuts Avenue
and Bolton Road, Rosebank, Johannesburg, South Africa, telephone (2711)
343-2000.
Information
furnished under Items 2.02 or 7.01 (or corresponding information furnished under
Item 9.01 or included as an exhibit) in any past or future Current Report on
Form 8-K that we file with the SEC, unless otherwise specified in such report,
is not incorporated by reference in this prospectus.
24
LEGAL MATTERS
DLA
Piper LLP (US), New York, New York, will provide us with an opinion as to
certain legal matters in connection with the securities being offered
hereby.
EXPERTS
The
consolidated financial statements incorporated in this prospectus by reference
from Net 1 UEPS Technologies, Inc.’s Annual Report on Form 10-K and the related
financial statement schedules, and the effectiveness of Net 1 UEPS Technologies,
Inc.’s internal control over financial reporting have been audited by Deloitte
& Touche (South Africa), an independent registered public accounting firm,
as stated in their reports, which are incorporated by reference. Such financial
statements and financial statement schedules are included in reliance upon the
report of such firm given upon their authority as experts in accounting and
auditing.
25
PART II
Information Not Required in Prospectus
Item 14. Other Expenses of Issuance and Distribution
The
following table sets forth the expenses payable by us in connection with the
offerings of the securities described in this registration statement being
registered hereby.
| SEC registration fee |
$ |
50,350 |
|
| Printing expenses |
|
* |
|
| Legal fees and expenses |
|
* |
|
| Accounting fees and expenses |
|
* |
|
| Transfer agent and trustee fees and
expenses |
|
* |
|
| Rating agency fees |
|
* |
|
| Miscellaneous |
|
* |
|
| |
|
|
|
| Total
|
$ |
* |
|
* Not presently known.
Item 15. Indemnification of Directors and Officers
Section
607.0850(1) of the Florida Business Corporation Act, or FBCA, permits a Florida
corporation to indemnify any person who was or is a party to any third party
proceeding by reason of the fact that such person is or was a director, officer,
employee or agent of the corporation (or is or was serving at the request of the
corporation), against liability incurred in connection with such proceeding
(including any appeal thereof) if he or she acted in good faith and in a manner
he or she reasonably believed to be in, or not opposed to, the best interests of
the corporation, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his or her conduct was unlawful.
Section
607.0850(2) of the FBCA permits a Florida corporation to indemnify any person
who may be a party to a derivative action if such person acted in any of the
capacities set forth in the immediately preceding paragraph, against expenses
and amounts paid in settlement not exceeding, in the judgment of the board of
directors, the estimated expenses of litigating the proceeding to conclusion,
actually and reasonably incurred in connection with the defense or settlement of
such proceeding (including appeals), provided that the person acted under the
standards set forth in the immediately preceding paragraph. However, no
indemnification shall be made for any claim, issue or matter for which such
person is found to be liable unless, and only to the extent that, the court
determines that, despite the adjudication of liability, but in view of all the
circumstances of the case, such person is fairly and reasonably entitled to
indemnification for such expenses which the court deems proper.
Section
607.0850(4) of the FBCA provides that any indemnification made as set forth to
the two immediately preceding paragraphs, unless pursuant to a court
determination, shall be made only after a determination that the person to be
indemnified has met the standard of conduct described above. This determination
is to be made by a majority vote of a quorum consisting of the disinterested
directors of the board of directors who were not parties to such proceeding and,
if such a quorum is not available, by duly selected independent legal counsel,
or by a majority vote of the disinterested security holders. The board of
directors may also designate a special committee of disinterested directors to
make this determination.
Section
607.0850(3), however, provides that a Florida corporation must indemnify any
director, or officer, employee or agent of a corporation who has been successful
in the defense of any proceeding referred to in Sections 607.0850(1) or (2), or
in the defense of any claim, issue or matter therein, against expenses actually
and reasonably incurred by him in connection therewith.
Under
the FBCA, expenses incurred by a director or officer in defending a civil or
criminal proceeding may be paid by the corporation in advance of the final
disposition thereof upon receipt of an undertaking by or on behalf of such
director or officer to repay such amount if it is ultimately determined that
such director or officer is not entitled to indemnification under Section
607.0850. Expenses incurred by other employees or agents in such a proceeding
may be paid in advance of final disposition thereof upon such terms or
conditions that the board of directors deems appropriate.
The
FBCA further provides that the indemnification and advancement of payment
provisions contained therein are not exclusive and it specifically empowers a
corporation to make any other or further indemnification or advancement of
expenses under any bylaw, agreement, vote of security holders or disinterested
directors or otherwise, both for actions taken in an official capacity and for
actions taken in other capacities while holding an office. However, a
corporation cannot indemnify or advance expenses if a judgment or other final
adjudication establishes that the actions of the director or officer were
material to the adjudicated cause of action and the director or officer (a)
violated criminal law, unless the director or officer had reasonable cause to
believe his conduct was lawful or had no reasonable cause to believe his conduct
was unlawful, (b) derived an improper personal benefit from a transaction, (c)
was or is a director in a circumstance where the liability under Section
607.0834 (relating to unlawful distributions) applies, or (d) engages in willful
misconduct or conscious disregard for the best interests of the corporation in a
proceeding by or in right of the corporation to procure a judgment in its favor
or in a proceeding by or in right of a shareholder.
Our
amended and restated by-laws provide that we have the power to indemnify any
current or former director, officer, employee or agent against any liability
arising from any action or suit to the fullest extent permitted by law. Advances
against expenses may be made under our bylaws and any other indemnification
agreement into which we may enter and the indemnity coverage provided thereunder
may include liabilities under the federal securities laws as well as in other
contexts. Our by-laws also permit us to purchase and maintain insurance on
behalf of any current or former director, officer, employee or agent for any
liability incurred by any of them in connection with, or arising out of, their
actions in their capacity as our director, officer, employee or agent. Our
by-laws also provide that any repeal or modification of the indemnification
provisions of the by-laws shall not adversely affect any right or protection of
any person in respect of any act or omission occurring prior to the time of such
repeal or modification.
Reference
is made to Article VI of our by-laws incorporated hereto by reference.
Item 16. Exhibits
A
list of exhibits filed herewith is contained in the exhibit index that
immediately precedes such exhibits and is incorporated herein by reference.
Item 17. Undertakings
The
undersigned registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i)
to include any prospectus required by Section 10(a)(3) of the Securities Act of
1933, as amended;
(ii)
to reflect in the prospectus any facts or events arising after the effective
date of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Securities and Exchange Commission (the “Commission”) pursuant to Rule 424(b)
if, in the aggregate, the changes in volume and price represent no more than 20
percent change in the maximum aggregate offering price set forth in the
“Calculation of Registration Fee” table in the effective registration statement;
and
(iii)
to include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to
such information in the registration statement;
provided, however, that paragraphs (1)(i), (1)(ii) and
(1)(iii) do not apply if the registration statement is on Form S-3 or Form F-3
and the information required to be included in a post-effective amendment by
those paragraphs is contained in reports filed with or furnished to the
Commission by the registrant pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934, as amended, that are incorporated by reference
in the registration statement, or is contained in a form of prospectus filed
pursuant to Rule 424(b) that is part of the registration statement.
(2)
That, for the purpose of determining any liability under the Securities Act of
1933, as amended, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.
(4)
That, for the purpose of determining liability under the Securities Act of 1933,
as amended, to any purchaser:
(A)Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to
be part of the registration statement as of the date the filed prospectus was
deemed part of and included in the registration statement; and
(B)Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as
part of a registration statement in reliance on Rule 430B relating to an
offering made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of
providing the information required by Section 10(a) of the Securities Act of
1933, as amended, shall be deemed to be part of and included in the registration
statement as of the earlier of the date such form of prospectus is first used after
effectiveness or the date of the first contract of sale of securities in the
offering described in the prospectus. As provided in Rule 430B, for liability
purposes of the issuer and any person that is at that date an underwriter, such
date shall be deemed to be a new effective date of the registration statement
relating to the securities in the registration statement to which the prospectus
relates, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof. Provided, however, that no statement
made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference
into the registration statement or prospectus that is part of the registration
statement will, as to a purchaser with a time of contract of sale prior to such
effective date, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement
or made in any such document immediately prior to such effective date; or
(5)
That, for the purpose of determining liability of the undersigned registrant
under the Securities Act of 1933, as amended, to any purchaser in the initial
distribution of the securities, the undersigned registrant undertakes that in a
primary offering of securities of the undersigned registrant pursuant to this
registration statement, regardless of the underwriting method used to sell the
securities to the purchaser, if the securities are offered or sold to such
purchaser by means of any of the following communications, the undersigned
registrant will be a seller to the purchaser and will be considered to offer or
sell such securities to such purchaser:
(i) Any preliminary prospectus or
prospectus of the undersigned registrant relating to the offering required to be
filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the
offering prepared by or on behalf of the undersigned registrant or used or
referred to by the undersigned registrant;
(iii) The portion of any other free
writing prospectus relating to the offering containing material information
about the undersigned registrant or its securities provided by or on behalf of
the undersigned registrant; and
(iv) Any other communication that is an offer in
the offering made by the undersigned registrant to the purchaser.
(6)
That, for purposes of determining any liability under the Securities Act of
1933, as amended, each filing of the registrant’s annual report pursuant to
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (and,
where applicable, each filing of an employee benefit plan’s annual report
pursuant to Section 15(d) of the Securities Exchange Act of 1934, as amended),
that is incorporated by reference in the registration statement shall be deemed
to be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(7)
Insofar as indemnification for liabilities arising under the Securities Act of
1933, as amended, may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise,
the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Securities Act of 1933, as amended, and is, therefore, unenforceable. In
the event that a claim for indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the registrant will,
unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act of 1933, as amended, and will be governed by the final
adjudication of such issue.
(8)
To file an application for the purpose of determining the eligibility of the
trustee to act under subsection (a) of Section 310 of the Trust Indenture Act of
1939, as amended (the “Trust Indenture Act”), in accordance with the rules and
regulations prescribed by the Commission under Section 305(b)(2) of the Trust
Indenture Act.
SIGNATURES
Pursuant to the requirements of the Securities Act of
1933, as amended, the registrant certifies that it has reasonable grounds to
believe that it meets all of the requirements for filing a Form S-3 and has duly
caused this registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in Johannesburg, South Africa on the 17th day of
November, 2015.
NET 1 UEPS TECHNOLOGIES, INC.
| |
By: |
/s/ Serge C.P. Belamant |
| |
|
Name:
Serge C.P. Belamant |
| |
|
Title: Chief Executive
Officer |
KNOW
ALL PERSONS BY THESE PRESENTS, that each of the individuals whose signature
appears below constitutes and appoints Serge C.P. Belamant and Herman Gideon
Kotzé, as the undersigned’s true and lawful attorneys-in-fact and agents, with
full and several power of substitution, for the undersigned and in the
undersigned’s name, place and stead, in any and all capacities, to sign any and
all amendments (including post-effective amendments) to this registration
statement and any registration statement filed pursuant to Rule 462(b) under the
Securities Act of 1933, as amended, and to file the same, with all exhibits
thereto, and all documents in connection therewith, with the Securities and
Exchange Commission, granting unto said attorneys-in-fact and agents, and each
of them, full power and authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as fully for all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or their substitutes, may lawfully do or cause to be done.
Pursuant
to the requirements of the Securities Act of 1933, as amended, this registration
statement has been signed by the following persons on behalf of the registrant
and in the capacities indicated and on the dates indicated below.
| |
/s/
Serge C.P. Belamant |
| |
Name:
Serge C.P. Belamant |
| |
Title:
Chief Executive Officer, Chairman of |
| |
the
Board and Director (Principal |
| |
Executive
Officer) |
| |
Date:
November 17, 2015 |
| |
|
| |
|
| |
/s/
Herman Gideon Kotzé |
| |
Name:
Herman Gideon Kotzé |
| |
Title:
Chief Financial Officer, Treasurer, |
| |
Secretary and Director (Principal |
| |
Financial
and Accounting Officer) |
| |
Date:
November 17, 2015 |
| |
/s/
Paul Edwards |
| |
Name:
Paul Edwards |
| |
Title:
Director |
| |
Date:
November 17, 2015 |
| |
|
| |
/s/ Alasdair Jonathan Kemsley Pein
|
| |
Name:
Alasdair Jonathan Kemsley Pein |
| |
Title:
Director |
| |
Date:
November 17, 2015 |
| |
|
| |
|
| |
/s/
Christopher Stefan Seabrooke |
| |
Name:
Christopher Stefan Seabrooke |
| |
Title:
Director |
| |
Date:
November 17, 2015 |
EXHIBIT INDEX
| Exhibit No.
|
|
Description |
| |
|
|
| 1.1* |
|
Form of Underwriting Agreement |
| |
|
|
| 3.1 |
|
Amended and Restated Articles of Incorporation of Net 1
UEPS Technologies, Inc. (incorporated by reference to Exhibit 3.1 to our
Form 8-K filed on December 1, 2008 (SEC File No. 000-31203)) |
| |
|
|
| 3.2 |
|
Amended and Restated By-Laws of Net 1 UEPS Technologies,
Inc. (as amended through November 2009) (incorporated by reference to
Exhibit 3.2 to our Form 8- K filed on November 5, 2009 (SEC File No.
000-31203)) |
| |
|
|
| 4.1 |
|
Form of Senior Debt Indenture between Net 1 UEPS
Technologies, Inc. and Wells Fargo Bank, National Association, as Trustee
|
| |
|
|
| 4.2 |
|
Form of Subordinated Debt Indenture between Net 1 UEPS
Technologies, Inc. and Wells Fargo Bank, National Association, as Trustee |
| |
|
|
| 4.3 |
|
Form of common stock certificate (incorporated by
reference to Exhibit 4.1 of Amendment No. 1 to our registration statement
on Form S-1 (File No. 333- 125273) filed with the Securities and Exchange
Commission on June 20, 2005) |
| |
|
|
| 4.4* |
|
Form of Senior Note |
| |
|
|
| 4.5* |
|
Form of Subordinated Note |
| |
|
|
| 4.6* |
|
Form of Warrant Agreement |
| |
|
|
| 4.7* |
|
Form of Unit Agreement |
| |
|
|
| 5.1 |
|
Opinion of DLA Piper LLP (US) |
| |
|
|
| 12.1 |
|
Statement regarding computation of ratio of earnings to
fixed charges |
| |
|
|
| 23.1 |
|
Consent of Deloitte & Touche (South Africa) |
| |
|
|
| 23.2 |
|
Consent of DLA Piper LLP (US) (included in exhibit 5.1) |
| |
|
|
| 24.1 |
|
Power of Attorney (included on the signature pages
hereto) |
| |
|
|
| 25.1 |
|
Form T-1 Statement of Eligibility and Qualification under
the Trust Indenture Act of 1939, as amended, of Wells Fargo Bank, National
Association with respect to the form of Senior Debt Indenture |
| |
|
|
| 25.2 |
|
Form T-1 Statement of Eligibility and Qualification under
the Trust Indenture Act of 1939, as amended, of Wells Fargo Bank, National
Association with respect to the form of Subordinated Debt Indenture |
________________________
* To be filed by
amendment or as an exhibit to a report pursuant to Section 13(a), 13(c) or 15(d)
of the Securities Exchange Act of 1934, as amended.
Exhibit 4.1
| |
| NET 1 UEPS TECHNOLOGIES, INC., |
| Company |
| |
| |
| AND |
| |
| |
| WELLS FARGO BANK, NATIONAL ASSOCIATION, |
| Trustee |
| |
| |
| INDENTURE |
| _________________ |
| |
| Dated as
of
|
| _________________ |
| |
| Senior Debt Securities |
| |
| |
CROSS-REFERENCE TABLE*
| Section of |
|
| First Indenture Act |
Section of |
| of 1939, as amended |
Indenture |
| 310(a) |
7.09 |
| 310(b) |
7.08 |
| |
7.10 |
| 310(c) |
Inapplicable |
| 311(a) |
713(a) |
| 311(b) |
713(b) |
| 311(c) |
Inapplicable |
| 312(a) |
5.01 |
| |
5.02(a) |
| 312(b) |
5.02(b) |
| 312(c) |
5.02(c) |
| 313(a) |
5.04(a) |
| 313(b) |
5.04(b) |
| 313(c) |
5.04(a) |
| |
5.04(b) |
| 313(d) |
5.04(c) |
| 314(a) |
5.03 |
| 314(b) |
Inapplicable |
| 314(c) |
Inapplicable |
| 314(d) |
Inapplicable |
| 314(e) |
Inapplicable |
| 314(f) |
Inapplicable |
| 315(a) |
7.01(a) |
| |
7.02 |
| 315(b) |
6.07 |
| 315(c) |
7.01 |
| 315(d) |
7.01(b) |
| |
7.01(c) |
| 315(e) |
6.07 |
| 316(a) |
6.06 |
| |
8.04 |
| 316(b) |
6.04 |
| 316(c) |
8.01 |
| 317(a) |
6.02 |
| 317(b) |
4.03 |
| 318(a) |
13.06 |
____________________
* This Cross-Reference Table does
not constitute part of the Indenture and shall not have any bearing on the
interpretation of any of its terms or provisions.
TABLE OF CONTENTS
-i-
TABLE OF CONTENTS
(continued)
-ii-
TABLE OF CONTENTS
(continued)
-iii-
TABLE OF CONTENTS
(continued)
-iv-
INDENTURE, dated as
of , between NET 1 UEPS TECHNOLOGIES,
INC., a Florida corporation (the “Company”), and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, as trustee (the “Trustee”):
WHEREAS,
for its lawful corporate purposes, the Company has duly authorized the execution
and delivery of this Indenture to provide for the issuance of unsecured debt
securities (hereinafter referred to as the “Securities”), in an unlimited
aggregate principal amount to be issued from time to time in one or more series
as in this Indenture provided, as registered Securities without coupons, to be
authenticated by the certificate of the Trustee;
WHEREAS,
to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture; and
WHEREAS,
all things necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done.
NOW,
THEREFORE, in consideration of the premises and the purchase of the Securities
by the holders thereof, it is mutually covenanted and agreed as follows for the
equal and ratable benefit of the Securityholders:
ARTICLE 1
DEFINITIONS
Section
1.01. Definitions of Terms.
The
terms defined in this Section (except as in this Indenture otherwise expressly
provided or unless the context otherwise requires) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective
meanings specified in this Section and shall include the plural as well as the
singular. All other terms used in this Indenture that are defined in the Trust
Indenture Act or that are by reference in the Trust Indenture Act 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
said Trust Indenture Act and in said Securities Act as in force at the date of
the execution of this instrument.
“Authenticating
Agent” means an authenticating agent with respect to all or any of the series of
Securities appointed with respect to all or any series of the Securities by the
Trustee pursuant to Section 2.10.
“Authorized
Newspaper” means a newspaper in the English language or in an official language
of the country of publication, customarily printed on each Business Day, whether
or not published on Saturdays, Sundays or holidays, and of general circulation
in the place in connection with which the term is used or in the financial
community of such place. If, because of temporary suspension of publication or
general circulation of any newspaper or for any other reason, it is impossible
or impracticable to make any publication of any notice required by this
Indenture in the manner herein provided, such publication or other notice in
lieu thereof which is made by the Company shall constitute a sufficient
publication of such notice.
“Bankruptcy
Law” means Title 11, U.S. Code, or any similar Federal or State law for the
relief of debtors.
“Board
of Directors” means the Board of Directors of the Company or any duly authorized
committee of such Board of Directors.
“Board
Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification.
“Business
Day” means, with respect to any series of Securities, any day other than a day
on which Federal or State banking institutions in the Borough of Manhattan, The
City of New York, are authorized or obligated by law, executive order or
regulation to close.
“Commission”
means the United States Securities and Exchange Commission and any successor
thereto.
“Company”
means Net 1 UEPS Technologies, Inc., a corporation duly organized and existing
under the laws of the State of Florida, and, subject to the provisions of
Article 10, shall also include its successors and assigns.
“Company
Order” has the meaning assigned to such term in Section 2.04.
“Corporate
Trust Office” means the office of the Trustee at which, at any particular time,
its corporate trust business shall be principally administered, which office is
located at 150 East 42nd Street, 40th Floor, New York, New
York 10017 Attn: Corporate Trust Services Administrator for Net 1 UEPS
Technologies, Inc., or such other address as the Trustee may designate from time
to time by notice to the Securityholders and the Company, or the principal
corporate trust office of any successor Trustee (or such other address as such
successor Trustee may designate from time to time by notice to the
Securityholders and the Company).
“Custodian”
means any receiver, trustee, assignee, liquidator, or similar official under any
Bankruptcy Law.
“Default”
means any event, act or condition that with notice or lapse of time, or both,
would constitute an Event of Default.
“Defaulted
Interest” has the meaning assigned to such term in Section 2.03. “Depositary”
means, with respect to Securities of any series, for which the Company shall
determine that such Securities will be issued as a Global Security, The
Depository Trust Company, New York, New York, another clearing agency, or any
successor registered as a clearing agency under the Exchange Act or other
applicable statute or regulation, which, in each case, shall be designated by
the Company pursuant to either Section 2.01 or Section 2.11.
“Event
of Default” means, with respect to Securities of a particular series, any event
specified in Section 6.01, continued for the period of time, if any, therein
designated.
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“Exchange
Act” means the Securities Exchange Act of 1934, as amended.
“Global
Security” means, with respect to any series of Securities, a Security executed
by the Company and delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instruction, all in accordance with the Indenture, which shall be
registered in the name of the Depositary or its nominee.
“Governmental
Obligations” means securities that are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged
or (ii) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America, the payment of which
is unconditionally guaranteed as a full faith and credit obligation by the
United States of America that, in either case, are not callable or redeemable at
the option of the issuer thereof, and shall also include a depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as
custodian with respect to any such Governmental Obligation or a specific payment
of principal of or interest on any such Governmental Obligation held by such
custodian for the account of the holder of such depositary receipt;
provided, however, that (except as required by law) such custodian
is not authorized to make any deduction from any amount payable to the holder of
such depositary receipt, or from any amount received by the custodian in respect
of the Governmental Obligation, or from any specific payment of principal of or
interest on the Governmental Obligation evidenced by such depositary receipt.
“herein”,
“hereof and “hereunder”, and other words of similar import, refer to this
Indenture as a whole and not to any particular Article, Section or other
subdivision.
“Indebtedness”
of any person means the principal of (and premium, if any) and interest due on
indebtedness of such Person, whether outstanding on the date of this Indenture
or thereafter created, incurred or assumed, which is (a) indebtedness for money
borrowed, and (b) any amendments, renewals, extensions, modifications and
refundings of any such indebtedness. For the purposes of this definition,
“indebtedness for money borrowed” means (i) any obligation of, or any obligation
guaranteed by, such Person for the repayment of borrowed money, whether or not
evidenced by bonds, debentures, notes or other written instruments, (ii) any
obligation of, or any such obligation guaranteed by, such Person evidenced by
bonds, debentures, notes or similar written instruments, including obligations
assumed or incurred in connection with the acquisition of property, assets or
businesses (provided, however, that the deferred purchase price of
any business or property or assets shall not be considered Indebtedness if the
purchase price thereof is payable in full within 90 days from the date on which
such indebtedness was created), and (iii) any obligations of such Person as
lessee under leases required to be capitalized on the balance sheet of the
lessee under generally accepted accounting principles and leases of property or
assets made as part of any sale and lease-back transaction to which such Person
is a party. For purposes of the covenant under Section 4.06 of this Indenture
only, Indebtedness also includes any obligation of, or any obligation guaranteed
by, any Person for the payment of amounts due under a swap agreement or similar
instrument or agreement, or under a foreign currency hedge or similar instrument
or agreement.
3
“Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into in accordance with the terms hereof.
“Interest
Payment Date”, when used with respect to any installment of interest on a
Security of a particular series, means the date specified in such Security or in
an Officers’ Certificate pursuant to a Board Resolution or in an indenture
supplemental hereto with respect to such series as the fixed date on which an
installment of interest with respect to Securities of that series is due and
payable.
“Officers’
Certificate” means a certificate, signed by any two of the Chief Executive
Officer, Chief Financial Officer, the Treasurer and an Assistant Treasurer of
the Company, provided that at least one such officer is the Chief
Financial Officer or the Treasurer of the Company, that is delivered to the
Trustee in accordance with the terms hereof. Each such certificate shall include
the statements provided for in Section 13.06, if and to the extent required by
the provisions thereof.
“Opinion
of Counsel” means an opinion in writing of legal counsel, who may be an employee
of or counsel for the Company, that is delivered to the Trustee in accordance
with the terms hereof. Each such opinion shall include the statements provided
for in Section 13.06, if and to the extent required by the provisions thereof.
“Outstanding”,
when used with reference to Securities of any series, means, subject to the
provisions of Section 8.04, as of any particular time, all Securities of that
series theretofore authenticated and delivered by the Trustee under this
Indenture, except: (a) Securities theretofore canceled by the Trustee or any
paying agent, or delivered to the Trustee or any paying agent for cancellation
or that have previously been canceled; (b) Securities or portions thereof for
the payment or redemption of which moneys or Governmental Obligations in the
necessary amount shall have been deposited in trust with the Trustee or with any
paying agent (other than the Company) or shall have been set aside and
segregated in trust by the Company (if the Company shall act as its own paying
agent), provided, however, that if such Securities or portions of
such Securities are to be redeemed prior to the maturity thereof, notice of such
redemption shall have been given as specified in Article 3 or provision
satisfactory to the Trustee shall have been made for giving such notice; and (c)
Securities in lieu of or in substitution for which other Securities shall have
been authenticated and delivered, or securities which shall have been paid,
pursuant to the terms of Section 2.07.
“Person”
means any individual, corporation, partnership, joint-venture, joint-stock
company, limited liability company or other unincorporated organization or
government or any agency or political subdivision thereof.
“Predecessor
Security” of any particular Security means every previous Security evidencing
all or a portion of the same debt as that evidenced by such particular Security;
and, for the purposes of this definition, any Security authenticated and
delivered under Section 2.07 in lieu of a lost, destroyed or stolen Security
shall be deemed to evidence the same debt as the lost, destroyed or stolen
Security.
4
“Responsible
Officer” when used with respect to the Trustee means any vice president, any
assistant vice president, any trust officer or assistant trust officer or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of this Indenture.
“Securities
Act” means the Securities Act of 1933, as amended.
“Securities”
means the debt securities authenticated and delivered under this Indenture.
“Securityholder”, “holder of Securities”, “registered holder”, or other similar
term, means the Person or Persons in whose name or names a particular Security
shall be registered on the books of the Security Registrar kept for that purpose
in accordance with the terms of this Indenture.
“Security
Register” has the meaning assigned to such term in Section 2.05(b) .
“Security
Registrar” has the meaning assigned to such term in Section 2.05(b) .
“Significant
Subsidiary” means [ ].
“Subsidiary”
means, with respect to any Person, (i) any corporation, limited liability
company or other unincorporated entity at least a majority of whose outstanding
Voting Stock shall at the time be owned, directly or indirectly, by such Person
or by one or more of its Subsidiaries or by such Person and one or more of its
Subsidiaries, (ii) any general partnership, joint venture or similar entity, at
least a majority of whose outstanding partnership or similar interests shall at
the time be owned by such Person, or by one or more of its Subsidiaries, or by
such Person and one or more of its Subsidiaries and (iii) any limited
partnership of which such Person or any of its Subsidiaries is a general
partner.
“Trustee”
means Wells Fargo Bank, National Association, and, subject to the provisions of
Article 7, shall also include its successors and assigns, and, if at any time
there is more than one Person acting in such capacity hereunder, “Trustee” shall
mean each such Person. The term “Trustee” as used with respect to a particular
series of the Securities shall mean the trustee with respect to that series.
“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended, subject to the
provisions of Section 9.01 and Section 9.02, as in effect at the date of
execution of this instrument.
“UCC”
means the Uniform Commercial Code, as in effect in each applicable jurisdiction.
“Voting
Stock”, as applied to stock of any Person, means shares, interests,
participations or other equivalents in the equity interest (however designated)
in such Person having ordinary voting power for the election of a majority of
the directors (or the equivalent) of such Person, other than shares, interests, participations or other
equivalents having such power only by reason of the occurrence of a contingency.
5
ARTICLE 2
ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION
AND EXCHANGE OF SECURITIES
Section
2.01. Designation and Terms of Securities.
The
aggregate principal amount of Securities that may be authenticated and delivered
under this Indenture is unlimited. The Securities may be issued in one or more
series up to the aggregate principal amount of Securities of that series from
time to time authorized by or pursuant to a Board Resolution or pursuant to one
or more indentures supplemental hereto. Prior to the initial issuance of
Securities of any series, there shall be established in or pursuant to a Board
Resolution, and set forth in an Officers’ Certificate, or established in one or
more indentures supplemental hereto:
(a)
the title of the Security of the series and any applicable CUSIP and/or ISIN
numbers (which shall distinguish the Securities of the series from all other
Securities);
(b)
any limit upon the aggregate principal amount of the Securities of that series
that may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of that series);
(c)
the date or dates on which the principal of the Securities of the series is
payable;
(d)
the rate or rates at which the Securities of the series shall bear interest or
the manner of calculation of such rate or rates, if any;
(e)
the date or dates from which such interest shall accrue, the Interest Payment
Dates on which such interest will be payable or the manner of determination of
such Interest Payment Dates and the record date for the determination of
Securityholders to whom interest is payable on any such Interest Payment Dates;
(f)
the right, if any, to extend the interest payment periods and the duration of
such extension;
(g)
the period or periods within which, the price or prices at which and the terms
and conditions upon which, Securities of the series may be redeemed, in whole or
in part, at the option of the Company;
(h)
the obligation, if any, of the Company to redeem or purchase Securities of the
series pursuant to any sinking fund or analogous provisions (including payments
made in cash in participation of future sinking fund obligations) or at the
option of a holder thereof and the period or periods within which, the price or
prices at which, and the terms and conditions upon which, Securities of the
series shall be redeemed or purchased, in whole or in part, pursuant to such
obligation;
6
(i)
the form of the Securities of the series including the form of the certificate
of authentication for such series;
(j)
if other than denominations of one thousand U.S. dollars ($1,000) or any
integral multiple thereof, the denominations in which the Securities of the
series shall be issuable;
(k)
any and all other terms with respect to such series (which terms shall not be
inconsistent with the terms of this Indenture) including any terms which may be
required by or advisable under United States laws or regulations or advisable in
connection with the marketing of Securities of that series;
(l)
whether the Securities are issuable as a Global Security and, in such case, the
identity of the Depositary for such series;
(m)
whether the Securities will be convertible into shares of common stock or other
securities of the Company and, if so, the terms and conditions upon which such
Securities will be so convertible, including the conversion price and the
conversion period;
(n)
if other than the principal amount thereof, the portion of the principal amount
of Securities of the series which shall be payable upon declaration of
acceleration of the maturity thereof pursuant to Section 6.01;
(o)
any additional or different Events of Default or restrictive covenants provided
for with respect to the Securities of the series;
(p)
any provisions granting special rights to Securityholders when a specified event
occurs; and
(q)
any special tax implications of the Securities of the series, including
provisions for an original issue discount, if offered.
All
Securities of any one series shall be substantially identical except as to
denomination and except as may otherwise be provided in or pursuant to any such
Board Resolution or in any indentures supplemental hereto.
If
any of the terms of the series are established by action taken pursuant to a
Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers’
Certificate setting forth the terms of the series.
Securities
of any particular series may be issued at various times, with different dates on
which the principal or any installment of principal is payable, with different
rates of interest, if any, or different methods by which rates of interest may
be determined, with different dates on which such interest may be payable and
with different redemption dates.
Section
2.02. Form of Securities and Trustee’s Certificate.
7
The Securities of any series and the Trustee’s certificate of authentication to
be borne by such Securities shall be substantially of the tenor and purport as
set forth in one or more indentures supplemental hereto or as provided by or
pursuant to a Board Resolution and set forth in an Officers’ Certificate, and
may have such letters, numbers or other marks of identification or designation
and such legends or endorsements printed, lithographed or engraved thereon as
the Company may deem appropriate and as are not inconsistent with the provisions
of this Indenture, or as may be required to comply with any law or with any rule
or regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which Securities of that series may be listed, or to conform to
usage.
Section
2.03. Denominations; Provision for Payment.
The
Securities shall be issuable as registered Securities without coupons and in the
denominations of one thousand U.S. dollars ($1,000) or any integral multiple
thereof, subject to Section 2.01(j) . The Securities of a particular series
shall bear interest payable on the dates and at the rate or rates specified with
respect to that series. The principal of and the interest on the Securities of
any series, as well as any premium thereon in case of redemption thereof prior
to maturity, shall be payable in the coin or currency of the United States of
America that at the time is legal tender for public and private debt, at the
office or agency of the Company maintained for that purpose in the Borough of
Manhattan, the City and State of New York. Each Security shall be dated the date
of its authentication. Interest on the Securities shall be computed on the basis
of a 360-day year composed of twelve 30-day months.
The
interest installment on any Security that is payable, and is punctually paid or
duly provided for, on any Interest Payment Date for Securities of that series
shall be paid to the Person in whose name said Security (or one or more
Predecessor Securities) is registered at the close of business on the regular
record date for such interest installment. In the event that any Security of a
particular series or portion thereof is called for redemption and the redemption
date is subsequent to a regular record date with respect to any Interest Payment
Date and prior to such Interest Payment Date, interest on such Security will be
paid upon presentation and surrender of such Security as provided in Section
3.03.
Any
interest on any Security that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date for Securities of the same series
(herein called “Defaulted Interest”) shall forthwith cease to be payable to the
registered holder on the relevant regular record date by virtue of having been
such registered holder; and such Defaulted Interest shall be paid by the
Company, at its election, as provided in clause (a) or clause (b) below:
(a) The Company may make payment of
any Defaulted Interest on Securities to the Persons in whose names such
Securities (or their respective Predecessor Securities) are registered at the
close of business on a special record date for the payment of such Defaulted
Interest, which shall be fixed in the following manner: the Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each such Security and the date of the proposed payment, and at the same time
the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Trustee shall fix a special record date for the
payment of such Defaulted Interest which shall not be more than 15 nor less than
10 days prior to the date of the proposed payment and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such special record date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the special record date therefor to be
mailed, first class postage prepaid, to each Securityholder at his or her
address as it appears in the Security Register (as hereinafter defined), not
less than 10 days prior to such special record date (or otherwise transmitted in
accordance with the procedure of the Depositary). Following such transmission of
notice of the proposed payment of such Defaulted Interest and the special record
date, such Defaulted Interest shall be paid to the Persons in whose names such
Securities (or their respective Predecessor Securities) are registered on such
special record date and shall be no longer payable pursuant to the following
clause (b).
8
(b)
The Company may make payment of any Defaulted Interest on any Securities in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be
required by such exchange, if, after notice given by the Company to the Trustee
of the proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee.
Unless
otherwise set forth in or pursuant to a Board Resolution or one or more
indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.01 hereof, the term “regular record date” as
used in this Section with respect to a series of Securities with respect to any
Interest Payment Date for such series shall mean either the fifteenth day of the
month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur, if such
Interest Payment Date is the first day of a month, or the first day of the month
in which an Interest Payment Date established for such series pursuant to
Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth
day of such month, whether or not such date is a Business Day.
Subject
to the foregoing provisions of this Section, each Security of a series delivered
under this Indenture upon transfer of or in exchange for or in lieu of any other
Security of such series shall carry the rights to interest accrued and unpaid,
and to accrue, that were carried by such other Security.
Section
2.04. Execution and Authentications.
The
Securities shall be signed on behalf of the Company by any two of its officers
among the Chief Executive Officer, Chief Financial Officer, the Treasurer and an
Assistant Treasurer, provided that at least one such officer is the Chief
Financial Officer or the Treasurer and attested by its Secretary or one of its
Assistant Secretaries. Signatures may be in the form of a manual or facsimile
signature. The Company may use the facsimile signature of any Person who shall
have been a Chief Executive Officer, Chief Financial Officer, Treasurer or
Assistant Treasurer thereof, or of any Person who shall have been a Secretary or
Assistant Secretary thereof, notwithstanding the fact that at the time the
Securities shall be authenticated and delivered or disposed of such Person shall
have ceased to be the Chief Executive Officer, Chief Financial Officer, Treasurer or Assistant Treasurer, or the Secretary or
an Assistant Secretary, of the Company. The Securities may contain such
notations, legends or endorsements as are required by law, stock exchange rule
or usage. Each Security shall be dated the date of its authentication by the
Trustee.
9
A
Security shall not be valid until authenticated manually by an authorized
signatory of the Trustee, or by an Authenticating Agent. Such signature shall be
conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the holder of such Security is
entitled to the benefits of this Indenture.
At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a written order of the
Company for the authentication and delivery of such Securities, signed by its
Chief Executive Officer, Chief Financial Officer, Treasurer or any Assistant
Treasurer and its Secretary or any Assistant Secretary (“Company Order”), and
the Trustee in accordance with such Company Order shall authenticate and deliver
such Securities.
In
authenticating such Securities and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 7.01) shall be fully protected in
relying upon (A) an Officers’ Certificate or executed supplemental indenture
setting forth the form and terms of the Securities as required pursuant to
Section 2.01, (B) an Opinion of Counsel stating (1) that the form and terms
thereof have been established in conformity with the provisions of this
Indenture, (2) that such Securities, when authenticated and delivered by the
Trustee and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will be valid and binding obligations of
the Company entitled to the benefits of this Indenture, and enforceable against
the Company in accordance with their terms, except to the extent that
enforcement thereof may be limited by (a) bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or similar laws now or
hereafter in effect relating to creditors’ rights generally, (b) general
principles of equity (regardless of whether enforceability is considered in a
proceeding in equity or at law) and (c) that all conditions precedent to the
authentication of the Securities have been met, (C) an Officers’ Certificate
delivered pursuant to Section 13.06.
The
Trustee shall not be required to authenticate such Securities if the issue of
such Securities pursuant to this Indenture will affect the Trustee’s own rights,
duties or immunities under the Securities and this Indenture or otherwise in a
manner that is not reasonably acceptable to the Trustee.
Section
2.05. Registration of Transfer and Exchange.
(a)
Securities of any series may be exchanged upon presentation thereof at the
office or agency of the Company designated for such purpose in the Borough of
Manhattan, the City and State of New York, for other Securities of such series
of authorized denominations, and for a like aggregate principal amount, upon
payment of a sum sufficient to cover any tax or other governmental charge in
relation thereto, all as provided in this Section. In respect of any Securities
so surrendered for exchange, the Company shall execute, the Trustee shall
authenticate and such office or agency shall deliver in exchange therefor the
Security or Securities of the same series that the Securityholder making the exchange shall
be entitled to receive, bearing numbers not contemporaneously outstanding.
10
(b)
The Company shall keep, or cause to be kept, at its office or agency designated
for such purpose in the Borough of Manhattan, the City and State of New York, or
such other location designated by the Company a register or registers (herein
referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall register the Securities and
the transfers of Securities as provided in this Section and which at all
reasonable times shall be open for inspection by the Trustee. The registrar for
the purpose of registering Securities and transfers of Securities as herein
provided shall be the Trustee (the “Security Registrar”).
Upon
surrender for transfer of any Security at the office or agency of the Company
designated for such purpose (which office shall be the Corporate Trust Office),
the Company shall execute, the Trustee shall authenticate and such office or
agency shall deliver in the name of the transferee or transferees a new Security
or Securities of the same series as the Security presented for a like aggregate
principal amount.
All
Securities presented or surrendered for exchange or registration of transfer, as
provided in this Section, shall be accompanied (if so required by the Company or
the Security Registrar) by a written instrument or instruments of transfer, in
form satisfactory to the Company or the Security Registrar, duly executed by the
registered holder or by such registered holder’s duly authorized attorney in
writing.
(c)
No service charge shall be made for any exchange or registration of transfer of
Securities, or issue of new Securities in case of partial redemption of any
series, but the Company may require payment of a sum sufficient to cover any tax
or other governmental charge in relation thereto, other than exchanges pursuant
to Section 2.06, Section 3.03(b) and Section 9.04 not involving any transfer.
(d)
The Company shall not be required (i) to issue, exchange or register the
transfer of any Securities during a period beginning at the opening of business
15 days before the day of the transmission of a notice of redemption of less
than all the Outstanding Securities of the same series and ending at the close
of business on the day of such transmission, nor (ii) to register the transfer
of or exchange any Securities of any series or portions thereof called for
redemption. The provisions of this Section 2.05 are, with respect to any Global
Security, subject to Section 2.11 hereof.
Section
2.06. Temporary Securities.
Pending
the preparation of definitive Securities of any series, the Company may execute,
and the Trustee shall authenticate and deliver, temporary Securities (printed,
lithographed or typewritten) of any authorized denomination. Such temporary
Securities shall be substantially in the form of the definitive Securities in
lieu of which they are issued, but with such omissions, insertions and
variations as may be appropriate for temporary Securities, all as may be
determined by the Company. Every temporary Security of any series shall be
executed by the Company and be authenticated by the Trustee upon the same
conditions and in substantially the same manner, and with like effect, as the definitive Securities
of such series. Without unnecessary delay the Company will execute and will
furnish definitive Securities of such series and thereupon any or all temporary
Securities of such series may be surrendered in exchange therefor (without
charge to the holders thereof), at the office or agency of the Company
designated for the purpose in the Borough of Manhattan, the City and State of
New York (which shall be the Corporate Trust Office), and the Trustee shall
authenticate and such office or agency shall deliver in exchange for such
temporary Securities an equal aggregate principal amount of definitive
Securities of such series, unless the Company advises the Trustee in writing to
the effect that definitive Securities need not be executed and furnished until
further notice from the Company. Until so exchanged, the temporary Securities of
such series shall be entitled to the same benefits under this Indenture as
definitive Securities of such series authenticated and delivered hereunder.
11
Section
2.07. Mutilated, Destroyed, Lost or Stolen Securities.
In
case any temporary or definitive Security shall become mutilated or be
destroyed, lost or stolen, the Company (subject to the next succeeding sentence)
shall execute, and upon the Company’s delivery of a Company Order the Trustee
(subject as aforesaid) shall authenticate and deliver, a new Security of the
same series, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Security, or in lieu of and in substitution for
the Security so destroyed, lost or stolen. In every case the applicant for a
substituted Security shall furnish to the Company and the Trustee such security
or indemnity as required by them to save each of them harmless, and, in every
case of destruction, loss or theft, the applicant shall also furnish to the
Company and the Trustee evidence to their satisfaction of the destruction, loss
or theft of the applicant’s Security and of the ownership thereof. The Trustee
may authenticate any such substituted Security and deliver the same upon receipt
of a Company Order. Upon the issuance of any substituted Security, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee and its counsel)
connected therewith. In case any Security that has matured or is about to mature
shall become mutilated or be destroyed, lost or stolen, the Company may, instead
of issuing a substitute Security, pay or authorize the payment of the same
(without surrender thereof except in the case of a mutilated Security) if the
applicant for such payment shall furnish to the Company and the Trustee such
security or indemnity as they require to save them harmless, and, in case of
destruction, loss or theft, evidence to the satisfaction of the Company and the
Trustee of the destruction, loss or theft of such Security and of the ownership
thereof.
Every
replacement Security issued pursuant to the provisions of this Section shall
constitute an additional contractual obligation of the Company whether or not
the mutilated, destroyed, lost or stolen Security shall be found at any time, or
be enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of the
same series duly issued hereunder. All Securities shall be held and owned upon
the express condition that the foregoing provisions are exclusive with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities
and shall preclude (to the extent lawful) any and all other rights or remedies,
notwithstanding any law or statute existing or hereafter enacted to the contrary
with respect to the replacement or payment of negotiable instruments or other
securities without their surrender.
12
Section
2.08. Cancellation.
All
Securities surrendered for the purpose of payment, redemption, exchange or
registration of transfer shall, if surrendered to the Company or any paying
agent, be delivered to the Trustee for cancellation, or, if surrendered to the
Trustee, shall be cancelled by it, and no Securities shall be issued in lieu
thereof except as expressly required or permitted by any of the provisions of
this Indenture. On written request of the Company at the time of such surrender,
the Trustee shall deliver to the Company canceled Securities held by the
Trustee. In the absence of such request the Trustee may dispose of canceled
Securities in accordance with its standard procedures. If the Company shall
otherwise acquire any of the Securities, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Securities unless and until the same are delivered to the Trustee for
cancellation.
Section
2.09. Benefits of Indenture.
Nothing
in this Indenture or in the Securities, express or implied, shall give or be
construed to give to any Person, other than the parties hereto and the holders
of the Securities any legal or equitable right, remedy or claim under or in
respect of this Indenture, or under any covenant, condition or provision herein
contained; all such covenants, conditions and provisions being for the sole
benefit of the parties hereto and of the holders of the Securities.
Section
2.10. Authenticating Agent.
So
long as any of the Securities of any series remain Outstanding there may be an
Authenticating Agent for any or all such series of Securities which the Company
shall have the right to appoint. Said Authenticating Agent shall be authorized
to authenticate Securities of such series issued upon exchange, transfer or
partial redemption thereof, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. All references in this
Indenture to the authentication of Securities by the Trustee shall be deemed to
include authentication by an Authenticating Agent for such series. Each
Authenticating Agent shall be acceptable to the Company and shall be a
corporation that has a combined capital and surplus, as most recently reported
or determined by it, sufficient under the laws of any jurisdiction under which
it is organized or in which it is doing business to conduct a trust business,
and that is otherwise authorized under such laws to conduct such business and is
subject to supervision or examination by Federal or State authorities. If at any
time any Authenticating Agent shall cease to be eligible in accordance with
these provisions, it shall resign immediately.
Any
Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Company may at any time (and
upon) terminate the agency of any Authenticating Agent by giving written notice
of termination to such Authenticating Agent and to the Trustee. Upon
resignation, termination or cessation of eligibility of any Authenticating
Agent, the Company may appoint an eligible successor Authenticating Agent. Any
successor Authenticating Agent, upon acceptance of its appointment hereunder,
shall become vested with all the rights, powers and duties of its predecessor
hereunder as if originally named as an Authenticating Agent pursuant hereto.
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Section
2.11. Global Securities.
(a)
If the Company shall establish pursuant to Section 2.01 that the Securities of a
particular series are to be issued as a Global Security, then the Company shall
execute and the Trustee shall, in accordance with Section 2.04, authenticate and
deliver, a Global Security that (i) shall represent, and shall be denominated in
an amount equal to the aggregate principal amount of, all of the Outstanding
Securities of such series, (ii) shall be registered in the name of the
Depositary or its nominee, (iii) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary’s instruction and (iv) shall bear a
legend substantially to the following effect: “Except as otherwise provided in
Section 2.11 of the Indenture, this Security may be transferred, in whole but
not in part, only to another nominee of the Depositary or to a successor
Depositary or to a nominee of such successor Depositary.”
(b) Notwithstanding the provisions of
Section 2.05, the Global Security of a series may be transferred, in whole but
not in part and in the manner provided in Section 2.05, only to another nominee
of the Depositary for such series, or to a successor Depositary for such series
selected or approved by the Company or to a nominee of such successor
Depositary.
(c)
If at any time the Depositary for a series of the Securities notifies the
Company that it is unwilling or unable to continue as Depositary for such series
or if at any time the Depositary for such series shall no longer be registered
or in good standing under the Exchange Act or other applicable statute or
regulation, and a successor Depositary for such series is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such condition, as the case may be, this Section 2.11 shall no longer be
applicable to the Securities of such series and the Company will execute, and
subject to Section 2.05, the Trustee will authenticate and deliver the
Securities of such series in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series in exchange for such
Global Security. In addition, the Company may at any time determine that the
Securities of any series shall no longer be represented by a Global Security and
that the provisions of this Section 2.11 shall no longer apply to the Securities
of such series. In such event the Company will execute and, subject to Sections
2.05 and 13.06, the Trustee, upon receipt of an Officers’ Certificate evidencing
such determination by the Company, will authenticate and deliver the Securities
of such series in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security. Upon the exchange of the Global Security for such Securities in
definitive registered form without coupons, in authorized denominations, the
Global Security shall be canceled by the Trustee. Such Securities in definitive
registered form issued in exchange for the Global Security pursuant to this
Section 2.11(c) shall be registered in such names and in such authorized
denominations as the Depositary, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such Securities to the Depositary for delivery to the Persons in
whose names such Securities are so registered.
Section 2.12. CUSIP Numbers.
14
The
Company in issuing the Securities may use “CUSIP” numbers (if then generally in
use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption
as a convenience to Securityholders; provided, that any such notice may
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers. The Company will promptly notify
the Trustee in writing of any change in the “CUSIP” numbers.
ARTICLE 3
REDEMPTION OF SECURITIES AND SINKING FUND
PROVISIONS
Section
3.01. Redemption.
The
Company may redeem the Securities of any series issued hereunder on and after
the dates and in accordance with the terms established for such series pursuant
to Section 2.01 hereof.
Section
3.02. Notice of Redemption.
(a)
In case the Company shall desire to exercise such right to redeem all or, as the
case may be, a portion of the Securities of any series in accordance with the
right reserved so to do, the Company shall, or shall cause the Trustee to, give
notice of such redemption to holders of the Securities of such series to be
redeemed by mailing, first class postage prepaid, (or otherwise transmitted in
accordance with the procedure of the Depositary) a notice of such redemption not
less than 30 days and not more than 60 days before the date fixed for redemption
of that series to such holders at their last addresses as they shall appear upon
the Security Register unless a shorter period is specified in the Securities to
be redeemed. Any notice that is transmitted in the manner herein provided shall
be conclusively presumed to have been duly given, whether or not the registered
holder receives the notice. In any case, failure duly to give such notice to the
holder of any Security of any series designated for redemption in whole or in
part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any
other series. In the case of any redemption of Securities subject to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, the Company shall furnish the Trustee
with an Officers’ Certificate evidencing compliance with any such restriction.
Each such notice of redemption shall specify the series of Securities being
redeemed, the CUSIP and/or ISIN numbers of the Securities being redeemed, the
date fixed for redemption and the redemption price at which Securities of that
series are to be redeemed, and shall state that payment of the redemption price
of such Securities to be redeemed will be made at the office or agency of the
Company in the Borough of Manhattan, the City and State of New York, upon
presentation and surrender of such Securities, that interest accrued to the date
fixed for redemption will be paid as specified in said notice, that from and
after such date interest will cease to accrue and that the redemption is for a
sinking fund, if such is the case. If less than all the Securities of a series
are to be redeemed, the notice to the holders of Securities of that series to be
redeemed in whole or in part shall specify the particular Securities to be so
redeemed. In case any Security is to be redeemed in part only, the notice
that relates to such Security shall state the portion of the principal amount
thereof to be redeemed, and shall state that on and after the redemption date,
upon surrender of such Security, a new Security or Securities of such series in
principal amount equal to the unredeemed portion thereof will be issued.
15
(b)
If the Trustee is to provide notice to the holders of Securities in accordance
with clause (a) above, for a partial or full redemption, the Company shall give
the Trustee the notice to be delivered to Securityholders at least 45 days
notice in advance of the date fixed for redemption as to the aggregate principal
amount of Securities of the series to be redeemed, and thereupon, in the case of
a partial redemption, the Trustee shall select, by lot or in such other manner
as it shall deem appropriate and fair (in accordance with the procedures of the
Depositary) and that may provide for the selection of a portion or portions
(equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof)
of the principal amount of such Securities of a denomination larger than $1,000,
the Securities to be redeemed and shall thereafter promptly notify the Company
in writing of the numbers of the Securities to be redeemed, in whole or in part.
The
Company may, if and whenever it shall so elect, by delivery of instructions
signed on its behalf by its Chief Executive Officer, Chief Financial Officer,
Treasurer or an Assistant Treasurer, instruct the Trustee or any paying agent to
call all or any part of the Securities of a particular series for redemption and
to give notice of redemption in the manner set forth in this Section, such
notice to be in the name of the Company.
Section
3.03. Payment Upon Redemption.
(a)
If the giving of notice of redemption shall have been completed as above
provided, the Securities or portions of Securities of the series to be redeemed
specified in such notice shall become due and payable on the date and at the
place stated in such notice at the applicable redemption price, together with
interest accrued to the date fixed for redemption, and interest on such
Securities or portions of Securities shall cease to accrue on and after the date
fixed for redemption; except that interest shall continue to accrue on any such
Security or portion thereof with respect to which the Company defaults in the
payment of such redemption price and accrued interest. On presentation and
surrender of such Securities on or after the date fixed for redemption at the
place of payment specified in the notice, said Securities shall be paid and
redeemed at the applicable redemption price for such series, together with
interest accrued thereon to the date fixed for redemption (but if the date fixed
for redemption is an interest payment date, the interest installment payable on
such date shall be payable to the registered holder at the close of business on
the applicable record date pursuant to Section 2.03) .
(b)
Upon presentation of any Security of such series that is to be redeemed in part
only, the Company shall execute and the Trustee shall authenticate and the
office or agency where the Security is presented shall deliver to the holder
thereof, at the expense of the Company, a new Security of the same series of
authorized denominations in principal amount equal to the unredeemed portion of
the Security so presented.
Section
3.04. Sinking Fund.
16
The
provisions of this Section 3.04, Section 3.05 and Section 3.06 shall be
applicable to any sinking fund for the retirement of Securities of a series,
except as otherwise specified as contemplated by Section 2.01 for Securities of
such series.
The
minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund
payment,” and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an “optional sinking
fund payment”. If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 3.05. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such
series.
Section
3.05. Satisfaction of Sinking Fund Payments with Securities.
The
Company (i) may deliver Outstanding Securities of a series (other than any
Securities previously called for redemption) and (ii) may apply as a credit
Securities of a series that have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series, provided that such Securities have not been previously so
credited. Such Securities shall be received and credited for such purpose by the
Trustee at the redemption price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly.
Section
3.06. Redemption of Securities for Sinking Fund.
Not
less than 45 days prior to each sinking fund payment date for any series of
Securities, the Company will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of the series, the portion thereof, if any, that is to be
satisfied by delivering and crediting Securities of that series pursuant to
Section 3.05 and the basis for such credit and will, together with such
Officers’ Certificate, deliver to the Trustee any Securities to be so delivered.
Not less than 30 days before each such sinking fund payment date the Trustee
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner specified in Section 3.02 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the
manner provided in Section 3.02. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Section 3.03.
ARTICLE 4
CERTAIN COVENANTS
Section
4.01. Payment of Principal, Premium and Interest.
The
Company will duly and punctually pay or cause to be paid the principal of (and
premium, if any) and interest on the Securities of that series on or prior to
11:00 a.m., New York City time, on such the date of such payment at the place
and in the manner provided herein and established with respect to such
Securities.
17
Section 4.02. Maintenance of Office or Agency.
So
long as any series of the Securities remain Outstanding, the Company agrees to
maintain an office or agency in the Borough of Manhattan, the City and State of
New York, with respect to each such series and at such other location or
locations as may be designated as provided in this Section 4.02, where (i)
Securities of that series may be presented for payment, (ii) Securities of that
series may be presented as hereinabove authorized for registration of transfer
and exchange, and (iii) notices and demands to or upon the Company in respect of
the Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by its Chief Executive Officer, Chief Financial
Officer, Treasurer, an Assistant Treasurer, Secretary or an Assistant Secretary
and delivered to the trustee, designate some other office or agency for such
purposes or any of them. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof in the case of (i) and (ii) above, such presentations, notices
and demands may be made or served at the Corporate Trust Office and the Company
hereby appoints the Trustee as its agent to receive all such presentations,
notices and demands.
Section 4.03. Paying Agents.
(a)
If the Company shall appoint one or more paying agents for all or any series of
the Securities, other than the Trustee, the Company will cause each such paying
agent to execute and deliver to the Trustee an instrument in which such agent
shall agree with the Trustee, subject to the provisions of this Section:
(i)
that it will hold all sums held by it as such agent for the payment of the
principal of (and premium, if any) or interest on the Securities of that series
(whether such sums have been paid to it by the Company or by any other obligor
of such Securities) in trust for the benefit of the Persons entitled thereto;
(ii)
that it will give the Trustee notice of any failure by the Company (or by any
other obligor of such Securities) to make any payment of the principal of (and
premium, if any) or interest on the Securities of that series when the same
shall be due and payable;
(iii)
that it will, at any time during the continuance of any failure referred to in
the preceding paragraph (a)(ii) above, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by such paying agent; and
(iv) that it will perform all other
duties of paying agent as set forth in this Indenture.
(b)
If the Company shall act as its own paying agent with respect to any series of
the Securities, it will on or before each due date of the principal of (and
premium, if any) or interest on Securities of that series, set aside, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay such principal (and premium, if any) or interest so becoming
due on Securities of that series until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and will promptly notify in writing
the Trustee of such action, or any failure (by it or any other obligor on such
Securities) to take such action. Whenever the Company shall have one or more
paying agents for any series of Securities, it will, prior to each due date of
the principal of (and premium, if any) or interest on any Securities of that
series, deposit with the paying agent a sum sufficient to pay the principal (and
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the Persons entitled to such principal, premium or interest, and
(unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of this action or failure so to act.
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(c)
Notwithstanding anything in this Section to the contrary, (i) the agreement to
hold sums in trust as provided in this Section is subject to the provisions of
Section 11.05, and (ii) the Company may at any time, for the purpose of
obtaining the satisfaction and discharge of this Indenture or for any other
purpose, pay, or direct any paying agent to pay, to the Trustee all sums held in
trust by the Company or such paying agent, such sums to be held by the Trustee
in accordance with Section 11.04 and upon the same terms and conditions as those
upon which such sums were held by the Company or such paying agent; and, upon
such payment by any paying agent to the Trustee, such paying agent shall be
released from all further liability with respect to such money.
Section
4.04. Appointment to Fill Vacancy in Office of Trustee.
The
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee,
will appoint, in the manner provided in Section 7.10, a Trustee, so that there
shall at all times be a Trustee hereunder.
Section
4.05. Compliance with Consolidation Provisions.
The
Company will not, while any of the Securities remain Outstanding, consolidate
with, or merge into, or merge into itself, or sell or convey all or
substantially all of its property to any other company unless the provisions of
Article 10 hereof are complied with.
Section
4.06. Limitation on Liens on Stock of Significant Subsidiaries.
The
Company will not, and it will not permit any Subsidiary of the Company to, at
any time directly or indirectly create, assume, incur or permit to exist any
Indebtedness secured by a pledge, lien or other encumbrance (any pledge, lien or
other encumbrance being hereinafter in this Section referred to as a “lien”) on
the Voting Stock of a Significant Subsidiary without making effective provision
whereby the Securities then Outstanding (and, if the Company so elects, any
other Indebtedness of the Company that is not subordinate to the Securities and
with respect to which the governing instruments require, or pursuant to which
the Company is otherwise obligated or required, to provide such security) shall
be equally and ratably secured with such secured Indebtedness so long as such
other Indebtedness shall be so secured.
If
the Company shall hereafter be required to secure the Securities equally and
ratably with any other Indebtedness pursuant to this Section, (i) the Company
will promptly deliver to the Trustee an Officers’ Certificate stating that the
foregoing covenant has been complied with, and an Opinion of Counsel stating
that in the opinion of such counsel the foregoing covenant has been complied
with and (ii) the Trustee is hereby authorized to enter into an indenture or
agreement supplemental hereto and to take such action, if any,
as it may deem advisable to enable it to enforce the rights of the holders of
the Securities so secured.
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Section
4.07. Trustee’s Obligations with Respect to the Covenants.
The
Trustee shall not be obligated to monitor or confirm, on a continuing basis or
otherwise, the Company’s compliance with the covenants contained in this Article
4 or with respect to reports or other documents filed under the Indenture
(unless otherwise required hereunder).
Section
4.08. Compliance Certificate.
The
Company shall deliver to the Trustee within 120 days after the end of each of
the Company’s fiscal years, commencing ________, 201__, a certificate executed
by its principal executive officer, principal financial officer or principal
accounting officer, stating as to his or her knowledge the Company’s compliance
(without regard to periods of grace or notice requirements) with all conditions
and covenants under this Indenture, and if the Company shall not be in
compliance, specifying such non- compliance and the nature and status thereof of
which such officer may have knowledge. Promptly upon learning of a Default, the
Company shall provide notice thereof to the Trustee.
ARTICLE 5
SECURITYHOLDERS LISTS AND REPORTS BY THE COMPANY
AND THE TRUSTEE
Section
5.01. Company to Furnish Trustee Names and Addresses of Securityholders.
The Company will furnish or cause to be furnished to the Trustee (a) on each
regular record date (as defined in Section 2.03) a list, in such form as the
Trustee may reasonably require, of the names and addresses of the holders of
each series of Securities as of such regular record date, provided that
the Company shall not be obligated to furnish or cause to furnish such list at
any time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the
Trustee may request in writing within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished; provided, however, that, in either case, no such list need be furnished for any
series for which the Trustee shall be the Security Registrar.
Section
5.02. Preservation of Information; Communications with Securityholders.
(a)
The Trustee shall preserve, in as current a form as is reasonably practicable,
all information as to the names and addresses of the holders of Securities
contained in the most recent list furnished to it as provided in Section 5.01
and as to the names and addresses of holders of Securities received by the
Trustee in its capacity as Security Registrar (if acting in such capacity).
(b)
The Trustee may destroy any list furnished to it as provided in Section 5.01
upon receipt of a new list so furnished.
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(c)
Securityholders may communicate as provided in Section 312(b) of the Trust
Indenture Act with other Securityholders with respect to their rights under this
Indenture or under the Securities.
Section
5.03. Reports by the Company.
(a)
The Company covenants and agrees to file with the Trustee, within 30 days after
the Company is required to file the same with the Commission, copies of the
annual reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) that the Company may be required to file with
the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or,
if the Company is not required to file information, documents or reports
pursuant to either of such sections, then to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time to
time by the Commission, such of the supplementary and periodic information,
documents and reports that may be required pursuant to Section 13 of the
Exchange Act, in respect of a security listed and registered on a national
securities exchange as maybe prescribed from time to time in such rules and
regulations.
(b)
The Company covenants and agrees to file with the Trustee and the Commission, in
accordance with the rules and regulations prescribed from time to time by the
Commission, such additional information, documents and reports with respect to
compliance by the Company with the conditions and covenants provided for in this
Indenture as may be required from time to time by such rules and regulations.
(c)
Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).
(d)
The Company covenants and agrees to transmit in accordance with the procedures
of the Depositary or by mail, first class postage prepaid, or reputable
over-night delivery service that provides for evidence of receipt, to the
Securityholders, as their names and addresses appear upon the Security Register,
within 30 days after the filing thereof with the Trustee, such summaries of any
information, documents and reports required to be filed by the Company pursuant
to subsections (a) and (b) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission.
Section
5.04. Reports by the Trustee.
(a)
On or before May 15 in each year in which any of the Securities are Outstanding,
the Trustee shall transmit in accordance with the procedures of the Depositary
or by mail, first class postage prepaid, to the Securityholders, as their names
and addresses appear upon the Security Register, a brief report dated as of the
preceding May 15, if and to the extent required under Section 313(a) of the
Trust Indenture Act.
(b)
The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture
Act.
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(c)
A copy of each such report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with the Company, with each stock
exchange upon which any Securities are listed (if so listed) and also with the
Commission. The Company agrees to reasonably promptly notify the Trustee in
writing when any Securities become listed on any stock exchange, and of any
delisting thereof.
ARTICLE 6
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON
EVENT OF DEFAULT
Section
6.01. Events of Default.
(a)
Whenever used herein with respect to Securities of a particular series, “Event
of Default” means any one or more of the following events that has occurred and
is continuing:
(i) the Company defaults
in the payment of any installment of interest upon any of the Securities of that
series, as and when the same shall become due and payable, and continuance of
such default for a period of 90 days; provided, however, that a
valid extension of an interest payment period by the Company in accordance with
the terms of any indenture supplemental hereto, shall not constitute a default
in the payment of interest for this purpose;
(ii) the Company defaults in the
payment of the principal of (or premium, if any, on) any of the Securities of
that series as and when the same shall become due and payable whether at
maturity, upon redemption, by declaration or otherwise, or in any payment
required by any sinking or analogous fund established with respect to that
series; provided, however, that a valid extension of the maturity
of such Securities in accordance with the terms of any indenture supplemental
hereto shall not constitute a default in the payment of principal or premium, if
any;
(iii) the Company fails to observe or
perform any other of its covenants or agreements with respect to that series
contained in this Indenture or otherwise established with respect to that series
of Securities pursuant to Section 2.01 hereof (other than a covenant or
agreement that has been expressly included in this Indenture solely for the
benefit of one or more series of Securities other than such series) for a period
of 90 days after the date on which written notice of such failure, requiring the
same to be remedied and stating that such notice is a “Notice of Default”
hereunder, shall have been given to the Company by the Trustee, by registered or
certified mail, or to the Company and the Trustee by the holders of at least 25%
in aggregate principal amount of the Securities of all series affected by such
failure at the time Outstanding;
(iv) the Company pursuant to or within
the meaning of any Bankruptcy Law (A) commences a voluntary case, (B) consents
to the entry of an order for relief against it in an involuntary case, (C)
consents to the appointment of a Custodian of it or for all or substantially all
of its property or (D) makes a general assignment for the benefit of its
creditors;
(v) a court of competent
jurisdiction enters an order under any Bankruptcy Law that (A) is for relief
against the Company in an involuntary case, (B) appoints a Custodian of the Company for all or
substantially all of their respective property, or (C) orders the liquidation of
the Company, and the order or decree remains unstayed and in effect for 90 days;
or
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(vi) any other Event of Default
provided for with respect to the Securities of such series in accordance with
Section 2.01.
(b)
If an Event of Default described in clauses (a)(i) or (a)(ii) of this Section
6.01 with respect to the Securities of any series then Outstanding hereunder
occurs and is continuing, then, unless the principal of the Securities of such
series shall have already become due and payable, either the Trustee or the
holders of not less than 25% in aggregate principal amount of the Securities of
such series then Outstanding, by notice in writing to the Company (and to the
Trustee if given by such Securityholders), may declare the principal of all the
Securities of such series and interest accrued thereon, if any, to be due and
payable immediately, and upon any such declaration the same shall become and
shall be immediately due and payable, notwithstanding anything contained in this
Indenture or in the Securities of such series or established with respect to
such series pursuant to Section 2.01 to the contrary. If an Event of Default
described in clauses (a)(iv) or (a)(v) of this Section 6.01 occurs and is
continuing, or if an Event of Default described in clauses (a)(iii) or (a)(vi)
of this Section 6.01 with respect to Securities of one or more series then
Outstanding hereunder occurs and is continuing, then, except with respect to any
such affected series for which the principal of all the Securities thereof shall
have already become due and payable, either the Trustee or the holders of not
less than 25% in aggregate principal amount of the Securities of all affected
series then Outstanding (all such series voting together as a single class), by
notice in writing to the Company (and to the Trustee if given by such
Securityholders), may declare the principal of all the Securities then
Outstanding of such series and interest accrued thereon, if any, to be due and
payable immediately, and upon such declaration the same shall become immediately
due and payable.
(c)
At any time after the principal of the Securities of any series shall have been
declared due and payable as provided in Section 6.01(b), and before any judgment
or decree for the payment of the moneys due shall have been obtained or entered
as hereinafter provided, the holders of a majority in aggregate principal amount
of the Securities of such series then Outstanding (in the case of an Event of
Default described in clauses (a)(i) or (a)(ii) of this Section 6.01, each such
affected series voting as a separate class, and in the case of an Event of
Default described in clauses (a)(iii), (a)(iv), (a)(v) or (a)(vi) of this
Section 6.01, all such affected series voting together as a single class), by
written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if: (1) the Company has paid or deposited with
the Trustee a sum sufficient to pay all matured installments of interest upon
all the Securities of such series and the principal of (and premium, if any, on)
any and all Securities of such series that shall have become due otherwise than
by acceleration (with interest upon such principal and premium, if any, and, to
the extent that such payment is enforceable under applicable law, upon overdue
installments of interest, applied to the Securities of each such series at the
rate per annum expressed in the Securities of each such series, respectively, to
the date of such payment or deposit) and the amount payable to the Trustee under
Section 7.06, and (2) any and all Events of Default under the Indenture with
respect to such series, other than the nonpayment of principal on Securities of
that series that shall not have become due by their terms, shall have been
remedied or waived as provided in Section 6.06.
23
No
such rescission and annulment shall extend to or shall affect any subsequent
default or impair any right consequent thereon.
(d)
In case the Trustee shall have proceeded to enforce any right with respect to
Securities of any such series under this Indenture and such proceedings shall
have been discontinued or abandoned because of such rescission or annulment or
for any other reason or shall have been determined adversely to the Trustee,
then and in every such case the Company and the Trustee shall be restored
respectively to their former positions and rights hereunder, and all rights,
remedies and powers of the Company and the Trustee shall continue as though no
such proceedings had been taken.
Section
6.02. Collection of Indebtedness and Suits for Enforcement by Trustee.
(a) The Company covenants that (i) in
case it shall default in the payment of any installment of interest on any of
the Securities of a series, or any payment required by any sinking or analogous
fund established with respect to that series as and when the same shall have
become due and payable, and such default shall have continued for a period of 90
Business Days, or (ii) in case it shall default in the payment of the principal
of (or premium, if any, on) any of the Securities of a series when the same
shall have become due and payable, whether upon maturity of the Securities of a
series or upon redemption or upon declaration or otherwise, then, upon demand of
the Trustee, the Company will pay to the Trustee, for the benefit of the holders
of the Securities of that series, the whole amount that then shall have been
become due and payable on all such Securities for principal (and premium, if
any) or interest, or both, as the case may be, with interest upon the overdue
principal (and premium, if any) and (to the extent that payment of such interest
is enforceable under applicable law) upon overdue installments of interest at
the rate per annum expressed in the Securities of that series; and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, and the amount payable to the Trustee under Section
7.06.
(b)
If the Company shall fail to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, shall be entitled
and empowered to institute any action or proceedings at law or in equity for the
collection of the sums so due and unpaid (including its reasonable attorney fees
and expenses), and may prosecute any such action or proceeding to judgment or
final decree, and may enforce any such judgment or final decree against the
Company or other obligor upon the Securities of that series and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or other obligor upon the Securities of that series,
wherever situated.
(c)
In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or judicial proceedings
affecting the Company, or its creditors or property, the Trustee shall have
power to intervene in such proceedings and take any action therein that may be
permitted by the court and shall (except as may be otherwise provided by law) be
entitled to file such proofs of claim and other papers and documents as may be
necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and
payable by the Company under the Indenture at the date of institution of such
proceedings and for any additional amount that may become due and payable by the
Company after such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and
to distribute the same after the deduction of the amount payable to the Trustee
under Section 7.06; and any receiver, assignee or trustee in bankruptcy or
reorganization is hereby authorized by each of the holders of Securities of such
series to make such payments to the Trustee, and, in the event that the Trustee
shall consent to the making of such payments directly to such Securityholders,
to pay to the Trustee any amount due it under Section 7.06.
24
(d)
All rights of action and of asserting claims under this Indenture, or under any
of the terms established with respect to Securities of that series, may be
enforced by the Trustee without the possession of any of such Securities, or the
production thereof at any trial or other proceeding relative thereto, and any
such suit or proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after
provision for payment to the Trustee of any amounts due under Section 7.06, be
for the ratable benefit of the holders of the Securities of such series.
In
case of an Event of Default hereunder, the Trustee may proceed to protect and
enforce the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in
the Indenture or in aid of the exercise of any power granted in this Indenture,
or to enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law.
Nothing
contained herein shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Securityholder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
of that series or the rights of any holder thereof or to authorize the Trustee
to vote in respect of the claim of any Securityholder in any such proceeding.
Section
6.03. Application of Moneys Collected.
Any
moneys collected by the Trustee pursuant to this Article with respect to a
particular series of Securities shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
moneys on account of principal (or premium, if any) or interest, upon
presentation of the Securities of that series, and notation thereon the payment,
if only partially paid, and upon surrender thereof if fully paid:
FIRST: To the
payment of costs and expenses of collection and of all amounts payable to the
Trustee under Section 7.06;
SECOND: To the
payment of the amounts then due and unpaid upon Securities of such series for
principal (and premium, if any) and interest, in respect of which or for the
benefit of which such money has been collected, ratably, without preference or
priority of any kind, according to the amounts due and payable on such
Securities for principal (and premium, if any) and interest, respectively.
THIRD:
To the Company or as a court of competent jurisdiction may direct in a final
non-applicable judgement.
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Section 6.04. Limitation on Suits.
No
holder of any Security of any series shall have any right by virtue or by
availing itself of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless: (a) such holder previously shall have given to the
Trustee written notice of an Event of Default and of the continuance thereof
with respect to the Securities of such series specifying such Event of Default,
as hereinbefore provided; (b) the holders of not less than 25% in aggregate
principal amount of the Outstanding Securities of such series (in the case of an
Event of Default described in clauses Section 6.01(a)(i) or Section 6.01(a)(ii)
of Section 6.01, each such series voting as a separate class, and in the case of
an Event of Default described in clauses Section 6.01(a)(iii), Section
6.01(a)(iv), Section 6.01(a)(v) or Section 6.01(a)(vi) of Section 6.01, all
affected series voting together as a single class) or shall have made written
request upon the Trustee to institute such action, suit or proceeding in its own
name as trustee hereunder; (c) such holder or holders shall have offered to the
Trustee such indemnity satisfactory to the Trustee against the costs, expenses
and liabilities to be incurred therein or thereby; (d) the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
failed to institute any such action, suit or proceeding; and (e) during such 60
day period, the holders of a majority in principal amount of the Securities of
such series (voting as provided in clause (b) above) do not give the Trustee a
direction inconsistent with the request.
Notwithstanding
anything contained herein to the contrary, any other provisions of this
Indenture, the right of any holder of any Security to receive payment of the
principal of (and premium, if any) and interest on such Security, as therein
provided, on or after the respective due dates expressed in such Security (or in
the case of redemption, on the redemption date), or to institute suit for the
enforcement of any such payment on or after such respective dates or redemption
date, shall not be impaired or affected without the consent of such holder and
by accepting a Security hereunder it is expressly understood, intended and
covenanted by the taker and holder of every Security of such series with every
other such taker and holder and the Trustee, that no one or more holders of
Securities of such series shall have any right in any manner whatsoever by
virtue or by availing of any provision of this Indenture to affect, disturb or
prejudice the rights of the holders of any other of such Securities, or to
obtain or seek to obtain priority over or preference to any other such holder,
or to enforce any right under this Indenture, except in the manner herein
provided and for the equal, ratable and common benefit of all holders of
Securities of such series. For the protection and enforcement of the provisions
of this Section, each and every Securityholder and the Trustee shall be entitled
to such relief as can be given either at law or in equity.
Section 6.05. Rights and Remedies Cumulative; Delay or Omission not
Waiver.
(a) Except as otherwise provided in
Section 2.07, all powers and remedies given by this Article to the Trustee or to
the Securityholders shall, to the extent permitted by law, be deemed cumulative
and not exclusive of any other powers and remedies available to the Trustee or
the holders of the Securities, by judicial proceedings or otherwise, to enforce
the performance or observance of the covenants and agreements contained in this
Indenture or otherwise established with respect to such Securities.
26
(b)
No delay or omission of the Trustee or of any holder of any of the Securities to
exercise any right or power accruing upon any Event of Default occurring and
continuing as aforesaid shall impair any such right or power, or shall be
construed to be a waiver of any such default or on acquiescence therein; and,
subject to the provisions of Section 6.04, every power and remedy given by this
Article or by law to the Trustee or the Securityholders may be exercised from
time to time, and as often as shall be deemed expedient, by the Trustee or by
the Securityholders.
Section
6.06. Control by Securityholders.
The
holders of a majority in aggregate principal amount of the Securities of all
series at the time Outstanding affected thereby (all such series voting together
as a single class except with respect to an Event of Default described in
clauses Section 6.01(a)(i) or Section 6.01(a)(ii) of Section 6.01, in which
case, each such affected series voting as a separate class), determined in
accordance with Section 8.04, shall have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred on the Trustee with respect to such
series subject to Section 7.02(d); provided, however, that such
direction shall not be in conflict with any rule of law or with this Indenture
or be unduly prejudicial to the rights of holders of Securities of any other
series at the time Outstanding determined in accordance with Section 8.04.
Subject to the provisions of Section 7.01, the Trustee shall have the right to
decline to follow any such direction if the Trustee in good faith shall, by a
Responsible Officer or Officers of the Trustee, determine that the proceeding so
directed would involve the Trustee in personal liability. The holders of a
majority in aggregate principal amount of the Securities of all series at the
time Outstanding affected thereby (all such series voting together as a single
class), determined in accordance with Section 8.04, may on behalf of the holders
of all of the Securities of such series waive any past default in the
performance of any of the covenants contained herein or established pursuant to
Section 2.01 with respect to such series and its consequences, except a default
in the payment of the principal of, or premium, if any, or interest on, any of
the Securities of any such series as and when the same shall become due by the
terms of such Securities otherwise than by acceleration (unless such default has
been cured and a sum sufficient to pay all matured installments of interest and
principal and any premium has been deposited with the Trustee (in accordance
with Section 6.01(c)) . Upon any such waiver, the default covered thereby shall
be deemed to be cured for all purposes of this Indenture and the Company, the
Trustee and the holders of the Securities of such series shall be restored to
their former positions and rights hereunder, respectively; but no such waiver
shall extend to any subsequent or other default or impair any right consequent
thereon.
Section
6.07. Undertaking to Pay Costs.
All
parties to this Indenture agree, and each holder of any Securities by such
holder’s acceptance thereof shall be deemed to have agreed, that any court may
in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any
Securityholder, or group of Securityholders, holding more than 10% in aggregate
principal amount of the Outstanding Securities of any series, or to any suit
instituted by any Securityholder for the enforcement of the payment of the
principal of (or premium, if any) or interest on any Security of such series, on
or after the respective due dates expressed in such Security or established
pursuant to this Indenture.
27
ARTICLE 7
CONCERNING THE TRUSTEE
Section
7.01. Certain Duties and Responsibilities of Trustee.
(a)
The Trustee, prior to the occurrence of an Event of Default with respect to the
Securities of a series and after the curing of all Events of Default with
respect to the Securities of that series that may have occurred, shall undertake
to perform with respect to the Securities of such series such duties and only
such duties as are specifically set forth in this Indenture, and no implied
covenants shall be read into this Indenture against the Trustee. In case an
Event of Default with respect to the Securities of a series has occurred (that
has not been cured or waived), the Trustee shall exercise with respect to
Securities of that series such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.
(b)
No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or its
own willful misconduct, except that:
(i) prior to the occurrence of an
Event of Default with respect to the Securities of a series and after the curing
or waiving of all such Events of Default with respect to that series that may
have occurred:
(A) the duties and obligations of the
Trustee shall with respect to the Securities of such series be determined solely
by the express provisions of this Indenture, and the Trustee shall not be liable
with respect to the Securities of such series except for the performance of such
duties and obligations as are specifically set forth in this Indenture, and no
implied covenants or obligations shall be read into this Indenture against the
Trustee; and
(B) in the absence of bad faith on the
part of the Trustee, the Trustee may with respect to the Securities of such
series conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon any certificates or opinions furnished
to the Trustee and conforming to the requirements of this Indenture; but in the
case of any such certificates or opinions that by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be under
a duty to examine the same to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the accuracy of
any mathematical calculations or other facts stated therein);
28
(ii)
the Trustee shall not be liable for any error of judgment made in good faith by
a Responsible Officer or Responsible Officers of the Trustee, unless it shall be
proved that the Trustee was negligent in ascertaining the pertinent facts;
(iii)
the Trustee shall not be liable with respect to any action taken or omitted to
be taken by it in good faith in accordance with the direction of Securityholders
provided to the Trustee in accordance with Section 6.06 relating to the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee under this
Indenture with respect to the Securities of such series;
(iv) none of the provisions contained
in this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if there is reasonable
ground for believing that the repayment of such funds or liability is not
reasonably assured to it under the terms of this Indenture or adequate indemnity
against such risk is not reasonably assured to it; and
(v) whether or not therein expressly
so provided, every provision of this Indenture relating to the conduct of or
affecting the liability of or affording protection to the Trustee shall be
subject to the requirements of the Trust Indenture Act.
Section 7.02. Certain Rights of Trustee.
Except as otherwise provided in Section 7.01:
(a)
the Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security or
other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(b) any request, direction, order or
demand of the Company mentioned herein shall be sufficiently evidenced by a
Board Resolution or an instrument signed in the name of the Company, by any two
of the Chief Executive Officer, Chief Financial Officer, the Secretary, an
Assistant Secretary, the Treasurer and an Assistant Treasurer thereof (unless
other evidence in respect thereof is specifically prescribed herein);
(c) the Trustee may consult with
counsel of its selection and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of
any action taken or suffered or omitted hereunder in good faith and in reliance
thereon;
(d) subject to Section 7.01, the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Security holders, pursuant to the provisions of this Indenture, unless such
Securityholders shall have offered to the Trustee security or indemnity satisfactory
to it against the costs, expenses and liabilities that may be incurred therein
or thereby;
29
(e) the Trustee shall not be liable
for any action taken or omitted to be taken by it in good faith and believed by
it to be authorized or within the discretion or rights or powers conferred upon
it by this Indenture;
(f) the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond, security, or other papers or documents, unless requested
in writing so to do and indemnified by the holders of not less than a majority
in principal amount of the Outstanding Securities of the series affected
thereby. The reasonable expense of every such examination shall be paid by the
Company or, if paid by the Trustee, shall be repaid by the Company upon demand;
(g) the Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or by
or through agents or attorneys and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agent or attorney appointed with due
care by it hereunder;
(h) the Trustee shall not be deemed to
have notice of any Default or Event of Default unless a Responsible Officer of
the Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a default is received by the Trustee at the Corporate
Trust Office, and such notice references the Securities and this Indenture;
(i) the rights, privileges,
protections, immunities and benefits given to the Trustee, including, without
limitation, its right to be indemnified in connection with the performance of
its duties under this Indenture shall extend to the Trustee’s officers,
directors, agents and employees. Such immunities and protections and right to
indemnification, together with the Trustee’s right to compensation, shall
survive the Trustee’s resignation or removal and final payment of the
Securities;
(j) the Trustee may request that the
Company deliver a certificate setting forth the names of individuals and/or
titles of officers authorized at such time to take specified actions pursuant to
this Indenture;
(k)
in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited
to, loss of profit) irrespective of whether the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action; and
(l) The Trustee shall not be required
to give any bond or surety in respect of the performance of its powers and
duties hereunder.
Section
7.03. Trustee not Responsible for Recitals or Issuance or Securities.
(a)
The recitals contained herein and in the Securities shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same.
30
(b)
The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities.
(c)
The Trustee shall not be accountable for the use or application by the Company
of any of the Securities or of the proceeds of such Securities, or for the use
or application of any moneys paid over by the Trustee in accordance with any
provision of this Indenture or established pursuant to Section 2.01, or for the
use or application of any moneys received by any paying agent other than the
Trustee.
Section
7.04. May Hold Securities.
The
Trustee or any paying agent or Security Registrar, in its individual or any
other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not Trustee, paying agent or Security Registrar.
Section
7.05. Moneys Held in Trust.
Subject
to the provisions of Section 11.05, all moneys received by the Trustee shall,
until used or applied as herein provided, be held in trust for the purposes for
which they were received, but need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest
on any moneys received by it hereunder except such as it may agree with the
Company in writing to pay thereon.
Section
7.06. Compensation and Reimbursement.
(a)
The Company covenants and agrees to pay to the Trustee, and the Trustee shall be
entitled to, such compensation (which shall not be limited by any provision of
law in regard to the compensation of a trustee of an express trust), as the
Company, and the Trustee may from time to time agree in writing, for all
services rendered by it in the execution of the trusts hereby created and in the
exercise and performance of any of the powers and duties hereunder of the
Trustee, and, the Company will pay or reimburse the Trustee upon its request for
all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any of the provisions of this Indenture (including
the reasonable compensation and the expenses and disbursements of its counsel
and of all Persons not regularly in its employ) except any such expense,
disbursement or advance as may be determined to have been caused by its own
negligence or willful misconduct. The Company also covenants to indemnify the
Trustee (and its officers, agents, directors and employees) for, and to hold it
harmless against, any loss, liability, claim, damage or expense incurred without
negligence or willful misconduct on the part of the Trustee and arising out of
or in connection with the acceptance or administration of this trust, including
the costs and expenses of defending itself against any claim of liability in the
premises.
(b)
The obligations of the Company under this Section to compensate and indemnify
the Trustee and to pay or reimburse the Trustee for expenses, disbursements and
advances shall constitute additional indebtedness hereunder. Such additional
indebtedness shall be secured by a lien prior to that of the Securities upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the benefit of the holders of particular Securities. The benefits
of this Section shall survive the termination of this Indenture or the
resignation or removal of the Trustee.
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(c)
When the Trustee incurs expenses or renders services in connection with an Event
of Default, 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.
Section
7.07. Reliance on Officers’ Certificate or Opinion of Counsel or Both.
Except as otherwise provided in Section 7.01, whenever in the administration of
the provisions of this Indenture the Trustee shall deem it necessary or
desirable that a matter be proved or established prior to taking or suffering or
omitting to take any action hereunder, such matter (unless other evidence in
respect thereof be herein specifically prescribed) may, in the absence of
negligence or willful misconduct on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers’ Certificate or Opinion of
Counsel or both delivered to the Trustee and such certificate, in the absence of
negligence or bad faith on the part of the Trustee, shall be full warrant to the
Trustee for any action taken, suffered or omitted to be taken by it under the
provisions of this Indenture upon the faith thereof.
Section 7.08. Disqualification; Conflicting Interests.
If
the Trustee has or shall acquire any “conflicting interest” within the meaning
of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall
in all respects comply with the provisions of Section 310(b) of the Trust
Indenture Act.
Section 7.09. Corporate Trustee Required, Eligibility.
There
shall at all times be a Trustee with respect to the Securities issued hereunder
which shall at all times be a corporation or national association organized and
doing business under the laws of the United States of America or any State or
Territory thereof or of the District of Columbia, or a corporation or other
Person permitted to act as trustee by the Commission, authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of at
least 50 million U.S. dollars ($50,000,000), and subject to supervision or
examination by Federal, State, Territorial, or District of Columbia authority.
If such corporation or national association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation or national association shall
be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. The Company may not, nor may any Person
directly or indirectly controlling, controlled by, or under common control with
the Company, serve as Trustee. In case at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, the Trustee shall
resign immediately in the manner and with the effect specified in Section 7.10.
Section 7.10. Resignation and Removal; Appointment of Successor.
(a)
The Trustee or any successor hereafter appointed, may at any time resign with
respect to the Securities of one or more series by giving written notice thereof
to the Company and by transmitting notice of resignation electronically or by
mail, first class postage prepaid, to the Securityholders of such series, as
their names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee with respect to Securities of such series by
written instrument, in duplicate, executed by order of the Board of Directors,
one copy of which instrument shall be delivered to the resigning Trustee and one
copy to the successor trustee. If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after the mailing of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee with respect to
Securities of such series, or any Securityholder of that series who has been a
bona fide holder of a Security or Securities for at least six months may on
behalf of himself and all others similarly situated, petition any such court for
the appointment of a successor trustee. Such court may thereupon after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.
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(b)
In case at any time any one of the following shall occur:
(i)
the Trustee shall fail to comply with the provisions of Section 7.08 after
written request therefor by the Company or by any Securityholder who has been a
bona fide holder of a Security or Securities for at least six months;
(ii)
the Trustee shall cease to be eligible in accordance with the provisions of
Section 7.09 and shall fail to resign after written request therefor by the
Company or by any such Securityholder, or
(iii)
the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the
Trustee or of its property shall be appointed or consented to, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation,
then, in any such case, the Company may remove the Trustee with
respect to all Securities and appoint a successor trustee by written instrument,
in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, unless the Trustee’s duty to resign is stayed as provided
herein, any Securityholder who has been a bona fide holder of a Security or
Securities for at least six months may, on behalf of that holder and all others
similarly situated, petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor trustee. Such court may
thereupon after such notice, if any, as it may deem proper and prescribe, remove
the Trustee and appoint a successor trustee.
(c)
The holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding may at any time remove the Trustee with respect
to such series by so notifying the Trustee and the Company in writing within 30
days of the effective date of such removal and may appoint a successor Trustee
for such series with the consent of the Company.
(d)
Any resignation or removal of the Trustee and appointment of a successor trustee
with respect to the Securities of a series pursuant to any of the provisions of
this Section shall become effective upon acceptance of appointment by the
successor trustee as provided in Section 7.11.
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(e)
Any successor trustee appointed pursuant to this Section may be appointed with
respect to the Securities of one or more series or all of such series, and at
any time there shall be only one Trustee with respect to the Securities of any
particular series.
Section
7.11. Acceptance of Appointment by Successor.
(a)
In case of the appointment hereunder of a successor trustee with respect to all
Securities, every such successor trustee so appointed shall execute, acknowledge
and deliver to the Company and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee; but, on the 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.
(b)
In case of the appointment hereunder of a successor trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring
Trustee and each successor trustee with respect to the Securities of one or more
series shall execute and deliver an indenture supplemental hereto wherein each
successor trustee shall accept such appointment and which (i) shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor trustee all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to which
the appointment of such successor trustee relates, (ii) shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (iii) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust, that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee and that no Trustee shall be responsible for any act or failure to
act on the part of any other Trustee hereunder; and upon the execution and
delivery of such supplemental indenture the resignation or removal of the
retiring Trustee shall become effective to the extent provided therein, such
retiring Trustee shall with respect to the Securities of that or those series to
which the appointment of such successor trustee relates have no further
responsibility for the exercise of rights and powers or for the performance of
the duties and obligations vested in the Trustee under this Indenture, and each
such successor trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor trustee relates; but, on request of the Company or
any successor trustee, such retiring Trustee shall duly assign, transfer and
deliver to such successor trustee, to the extent contemplated by such
supplemental indenture, the property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor trustee relates.
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(c)
Upon request of any such successor trustee, the Company shall execute any and
all instruments for more fully and certainly vesting in and confirming to such
successor trustee all such rights, powers and trusts referred to in paragraph
(a) or (b) of this Section, as the case may be.
(d)
No successor trustee shall accept its appointment unless at the time of such
acceptance such successor trustee shall be qualified and eligible under this
Article.
(e)
Upon acceptance of appointment by a successor trustee as provided in this
Section, the Company shall transmit notice of the succession of such trustee
hereunder electronically or by mail, first class postage prepaid, to the
Securityholders, as their names and addresses appear upon the Security Register.
If the Company fails to transmit such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be transmitted at the expense of the Company.
(f)
The retiring Trustee shall have no responsibility or liability for by action or
inaction of a successor trustee.
Section
7.12. Merger, Conversion, Consolidation or Succession to Business.
Any corporation or national association into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation or national
association resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation or national association succeeding
to all or substantially all of the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder, provided that such
corporation shall be qualified under the provisions of Section 7.08 and eligible
under the provisions of Section 7.09, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.
Section 7.13. Preferential Collection of Claims Against the Company.
The
Trustee shall comply with Section 31l(a) of the Trust Indenture Act, excluding
any creditor relationship described in Section 31l(b) of the Trust Indenture
Act. A Trustee who has resigned or been removed shall be subject to Section
311(a) of the Trust Indenture Act to the extent included therein.
ARTICLE 8
CONCERNING THE SECURITYHOLDERS
Section 8.01. Evidence of Action by Securityholders.
Whenever
in this Indenture it is provided that the holders of a majority or specified
percentage in aggregate principal amount of the Securities of one or more series
may take any action (including the making of any demand or request, the giving
of any notice, consent or waiver or the taking of any other action), the fact that at the
time of taking any such action the holders of such majority or specified
percentage of such series have joined therein may be evidenced by any instrument
or any number of instruments of similar tenor executed by such holders of
Securities of the relevant series in person or by agent or proxy appointed in
writing.
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If
the Company shall solicit from the Securityholders of one or more series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company may, at its option, as evidenced by an Officers’
Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, but the Company shall have
no obligation to do so. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of Outstanding Securities of the relevant series have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other action, and for that purpose the Outstanding Securities of the
relevant series shall be computed as of the record date; provided,
however, that no such authorization, agreement or consent by such
Securityholders on the record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than six
months after the record date.
Section 8.02. Proof of Execution by Securityholders.
Subject
to the provisions of Section 7.01, proof of the execution of any instrument by a
Securityholder (such proof will not require notarization) or his agent or proxy
and proof of the holding by any Person of any of the Securities shall be
sufficient if made in the following manner:
(a) The fact and date of the execution
by any such Person of any instrument may be proved in any reasonable manner
acceptable to the Trustee.
(b)
The ownership of Securities shall be proved by the Security Register of such
Securities or by a certificate of the Security Registrar thereof.
(c)
The Trustee may require such additional proof of any matter referred to in this
Section as it shall deem necessary.
Section 8.03. Who May be Deemed Owners.
Prior
to the due presentment for registration of transfer of any Security, the
Company, the Trustee, any paying agent and any Security Registrar may deem and
treat the Person in whose name such Security shall be registered upon the books
of the Company as the absolute owner of such Security (whether or not such
Security shall be overdue and notwithstanding any notice of ownership or writing
thereon made by anyone other than the Security Registrar) for the purpose of
receiving payment of or on account of the principal of, premium, if any, and
(subject to Section 2.03) interest on such Security and for all other purposes;
and neither the Company nor the Trustee nor any paying agent nor any Security
Registrar shall be affected by any notice to the contrary.
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Section 8.04. Certain Securities Owned by Company Disregarded.
In
determining whether the holders of the requisite aggregate principal amount of
Securities of one or more series have concurred in any direction, consent or
waiver under this Indenture, the Securities of such series that are owned by the
Company or any other obligor on the Securities of that series or by any Person
directly or indirectly controlling or controlled by or under common control with
the Company or any other obligor on the Securities of that series shall be
disregarded and deemed not to be Outstanding for the purpose of any such
determination, except that for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, consent or waiver, only
Securities of such series that a Responsible Officer of the Trustee actually
knows are so owned shall be so disregarded. The Securities so owned that have
been pledged in good faith may be regarded as Outstanding for the purposes of
this Section, if the pledgee shall establish to the satisfaction of the Trustee
the pledgee’s right so to act with respect to such Securities and that the
pledgee is not a Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company or any such other
obligor. In case of a dispute as to such right, any decision by the Trustee
taken upon the advice of counsel shall be full protection to the Trustee.
Section 8.05. Actions Binding on Future Securityholders.
At
any time prior to (but not after) the evidencing to the Trustee, as provided in
Section 8.01, of the taking of any action by the holders of the majority or
percentage in aggregate principal amount of the Securities of one or more series
specified in this Indenture in connection with such action, any holder of a
Security of any such series that is shown by the evidence to be included in the
Securities the holders of which have consented to such action may, by filing
written notice with the Trustee, and upon proof of holding as provided in
Section 8.02, revoke such action so far as concerns such Security. Except as
aforesaid any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders and owners
of such Security, and of any Security issued in exchange therefor, on
registration of transfer thereof or in place thereof, irrespective of whether or
not any notation in regard thereto is made upon such Security. Any action taken
by the holders of the majority or percentage in aggregate principal amount of
the Securities of one or more series specified in this Indenture in connection
with such action shall be conclusively binding upon the Company, the Trustee and
the holders of all the Securities of such series.
ARTICLE 9
SUPPLEMENTAL INDENTURES
Section 9.01. Supplemental Indentures Without the Consent of
Securityholders.
In
addition to any supplemental indenture otherwise authorized by this Indenture,
the Company and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as then in effect), without the consent of
the Securityholders, for one or more of the following purposes:
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(a)
to cure any ambiguity, defect, or inconsistency herein, in the Securities of any
series;
(b) to comply with Article 10;
(c) to provide for uncertificated
Securities in addition to or in place of certificated Securities;
(d) to add to the covenants of the
Company for the benefit of the holders of all or any Series of Securities (and
if such covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred
upon the Company;
(e) to add to, delete from, or revise
the conditions, limitations, and restrictions on the authorized amount, terms,
or purposes of issue, authentication, and delivery of Securities, as herein set
forth;
(f) to make any change that does not
adversely affect the rights of any Securityholder in any material respect; or
(g) to provide for the issuance of and
establish the form and terms and conditions of the Securities of any series as
provided in Section 2.01, to establish the form of any certifications required
to be established pursuant to the terms of this Indenture or any series of
Securities, or to add to the rights of the holders of any series of Securities.
The
Trustee is hereby authorized to join with the Company in the execution of any
such supplemental indenture, and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into any such supplemental indenture that affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.
Any
supplemental indenture authorized by the provisions of this Section may be
executed by the Company and the Trustee without the consent of the holders of
any of the Securities at the time Outstanding, notwithstanding any of the
provisions of Section 9.02.
Section 9.02. Supplemental Indentures With Consent of Securityholders.
With
the consent (evidenced as provided in Section 8.01) of the holders of not less
than a majority in aggregate principal amount of the Securities of all of the
series affected by such supplemental indenture or indentures at the time
Outstanding (all such series voting together as a single class), the Company,
when authorized by Board Resolutions, and the Trustee may from time to time and
at any time enter into an indenture or indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act as then in effect)
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner not covered by Section 9.01 the rights
of the holders of the Securities of such series under this Indenture;
provided, however, that no such supplemental indenture shall,
without the consent of the holders of each Security then Outstanding and
affected thereby, (i) extend the fixed maturity of any Securities of any series, or reduce the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon,
or reduce any premium payable upon the redemption thereof or (ii) reduce the
aforesaid percentage of Securities, the holders of which are required to consent
to any such supplemental indenture.
38
It
shall not be necessary for the consent of the Securityholders of the series
affected thereby under this Section to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.
Section
9.03. Effect of Supplemental Indentures.
Upon
the execution of any supplemental indenture pursuant to the provisions of this
Article or of Section 10.01, this Indenture shall, with respect to the relevant
series, be and be deemed to be modified and amended in accordance therewith and
the respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the holders of Securities
of the series affected thereby shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments,
and all the terms and conditions of any such supplemental indenture shall be and
be deemed to be part of the terms and conditions of this Indenture for any and
all purposes.
Section
9.04. Securities Affected by Supplemental Indentures.
Following
the execution, authentication and delivery of a supplemental indenture pursuant
to the provisions of this Article or of Section 10.01, the Securities of any
series affected thereby may bear a notation in form approved by the Company,
provided such form meets the requirements of any exchange
Upon
which such series may be listed, as to any matter provided for in such
supplemental indenture. If the Company shall determine that it is necessary or
desirable, new Securities of such series so modified as to conform, in the
opinion of the Board of Directors, to any modification of this Indenture
contained in any such supplemental indenture may be prepared by the Company,
authenticated by the Trustee and delivered in exchange for the Securities of
that series then Outstanding.
Section
9.05. Execution of Supplemental Indentures.
Upon
the request of the Company, accompanied by its Board Resolutions authorizing the
execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of Securityholders required to consent
thereto as aforesaid, the Trustee shall join with the Company in the execution
of such supplemental indenture unless such supplemental indenture affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise, in
which case the Trustee may in its discretion but shall not be obligated to enter
into such supplemental indenture. The Trustee, subject to the provisions of
Section 7.01, shall be provided with an Officers’ Certificate and Opinion of
Counsel as conclusive evidence that any supplemental indenture executed pursuant
to this Article is authorized or permitted by, and conforms to, the terms of
this Article, that all conditions precedent to the execution of the supplemental
indenture have been met and, with respect to the Opinion of Counsel only, is
legally valid and binding against the Company and that it is
proper for the Trustee under the provisions of this Article to join in the
execution thereof.
39
Promptly
after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of this Section, the Company shall prepare and send
to the Trustee for transmission to the Securityholders and the Trustee shall
transmit electronically or by mail, first class postage prepaid, a notice,
setting forth in general terms the substance of such supplemental indenture, to
the Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.
Section
9.06. Conformity with Trust Indenture Act.
Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.
ARTICLE 10
SUCCESSOR CORPORATION
Section
10.01. Company May Consolidate, Etc., Only on Certain Terms.
The
Company shall not consolidate with or merge into any other Person or convey,
transfer or lease all or substantially all of its properties and assets to any
Person, and the Company shall not permit any Person to consolidate with or merge
into the Company, unless:
(a) in case the Company shall consolidate with or merge into another Person or
convey, transfer or lease all or substantially all of its properties and assets
to any 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, all or substantially all of the properties and assets of the Company
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, the due and punctual
payment of the principal of and any premium and interest on all the Securities
and the performance or observance of every covenant of this Indenture on the
part of the Company to be performed or observed;
(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; and
(c)
the Company has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, conveyance, transfer
or lease and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction have been
complied with.
Section
10.02. Successor Substitute.
40
Upon
any consolidation of the Company with, or merger of the Company into, any other
Person or any conveyance, transfer or lease of all or substantially all of the
properties and assets of the Company in accordance with Section 10.01 above, 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 the 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 the
Indenture and the Securities.
ARTICLE 11
DEFEASANCE AND DISCHARGE
Section
11.01. Discharge of Company’s Obligations. Except as otherwise
provided in this Section 11.01, the Company may terminate its obligations under
the Securities of any series and this Indenture with respect to the Securities
of such series if:
(a)
all Securities of such series previously authenticated and delivered (other than
destroyed, lost or wrongfully taken Securities of such series that have been
replaced or Securities of such series that are paid pursuant to Section 2.07 or
Securities of such series for whose payment money or securities have theretofore
been held in trust and thereafter repaid to the Company, as provided in Section
11.05) have been delivered to the Trustee for cancellation and the Company has
paid all sums payable by it hereunder; or
(b)
(i) the Securities of such series are scheduled to mature within one year or are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for giving the notice of redemption, (ii) the Company irrevocably
deposits in trust with the Trustee, as trust funds solely for the benefit of the
holders of such Securities, money or Government Obligations or a combination
thereof sufficient (unless such funds consist solely of money), in the opinion
of a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, without consideration of
any reinvestment and after payment of all Federal, state and local taxes or
other charges and assessments in respect thereof payable by the Trustee, to pay
and discharge the principal of (and premium, if any) and interest on the
Securities of such series to maturity or redemption, as the case may be, and to
pay all other sums payable by the Company hereunder, and (iii) the Company
delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, in
each case stating that all conditions precedent provided for herein relating to
the satisfaction and discharge of this Indenture with respect to the Securities
of such series have been complied with.
With
respect to the foregoing clause (a), only the Company’s obligations under
Sections 7.06 and 11.05 in respect of the Securities of such series shall
survive. With respect to the foregoing clause (b), only the Company’s
obligations in Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10 in respect
of the Securities of such series shall survive until such Securities of such
series are no longer outstanding. Thereafter, only the Company’s obligations in
Sections 7.06 and 11.05 in respect of the Securities of such series shall
survive. After any such irrevocable deposit, the Trustee shall acknowledge in
writing the discharge of the Company’s obligations under the Securities of such
series and this Indenture with respect to the Securities of such series except
for those surviving obligations specified above.
41
Section
11.02. Legal Defeasance. Except as provided below, the Company will be
deemed to have paid and will be discharged from any and all obligations in
respect of the Securities of any series and the provisions of this Indenture
(and the Trustee, at the expense of the Company, shall execute instruments in
form and substance satisfactory to the Company and the Trustee acknowledging the
same) if the following conditions shall have been satisfied:
(a)
the Company has irrevocably deposited in trust with the Trustee as trust funds
solely for the benefit of the holders of the Securities of such series, for
payment of the principal of (and premium, if any) and interest on the Securities
of such series, money or Government Obligations or a combination thereof
sufficient (unless such funds consist solely of money), in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee without consideration of
any reinvestment and after payment of all Federal, state and local taxes or
other charges and assessments in respect thereof payable by the Trustee, to pay
and discharge the principal of (and premium, if any) and interest on the
outstanding Securities of such series to maturity or earlier redemption
(irrevocably provided for under arrangements satisfactory to the Trustee), as
the case may be;
(b)
such deposit will not result in a breach or violation of, or constitute a
default under, this Indenture or any other material agreement or instrument to
which the Company is a party or by which it is bound;
(c)
no Default or Event of Default with respect to the Securities of such series
shall have occurred and be continuing on the date of such deposit;
(d)
the Company has delivered to the Trustee (i) either (x) a ruling directed to the
Trustee received from the Internal Revenue Service to the effect that the
holders of the Securities of such series will not recognize income, gain or loss
for Federal income tax purposes as a result of the Company’s exercise of its
option under this Section 11.02 and will be subject to Federal income tax on the
same amount and in the same manner and at the same times as would have been the
case if such deposit and defeasance had not occurred or (y) an Opinion of
Counsel to the same effect as the ruling described in clause (x) above and based
upon a change in law and (ii) an Opinion of Counsel, subject to customary
assumptions and qualifications, to the effect that the holders of the Securities
of such series have a valid security interest in the trust funds subject to no
prior liens under the UCC; and
(e)
the Company has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, in each case stating that all conditions precedent provided for
herein relating to the defeasance contemplated by this Section 11.02 of the
Securities of such series have been complied with.
The
Company’s obligations in Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10
with respect to the Securities of such series shall survive until such
Securities are no longer outstanding. Thereafter, only the Company’s obligations
in Sections 7.06 and 11.05 shall survive.
Section
11.03. Covenant Defeasance. The Company may omit to comply with any term,
provision or condition set forth in Sections 4.05, 4.06 or 4.08 (or any other
specific covenant relating to the Securities of any series provided for in a
Board Resolution or supplemental indenture pursuant to Section 2.01 which may by
its terms be defeased pursuant to this Section 11.03), and such omission shall
be deemed not to be an Event of Default under clause (a)(iii) of Section 6.01,
with respect to the outstanding Securities of such series if:
42
(a) the Company has irrevocably
deposited in trust with the Trustee as trust funds solely for the benefit of the
holders of Securities of such series, for payment of the principal of (and
premium, if any) and interest on the Securities of such series, money or
Government Obligations or a combination thereof in an amount sufficient (unless
such funds consist solely of money), in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee without consideration of any reinvestment and
after payment of all Federal, state and local taxes or other charges and
assessments in respect thereof payable by the Trustee, to pay and discharge the
principal of (and premium, if any) and accrued interest on the outstanding
Securities of such series to maturity or earlier redemption (irrevocably
provided for under arrangements satisfactory to the Trustee), as the case may
be;
(b) such deposit will not result in a
breach or violation of, or constitute a default under, this Indenture or any
other material agreement or instrument to which the Company is a party or by
which it is bound;
(c) no Default or Event of Default
with respect to the Securities of such series shall have occurred and be
continuing on the date of such deposit;
(d) the Company has delivered to the
Trustee an Opinion of Counsel, subject to customary assumptions and
qualifications, to the effect that (i) the holders of the Securities of such
series have a valid security interest in the trust funds subject to no prior
liens under the UCC and (ii) such holders will not recognize income, gain or
loss for Federal income tax purposes as a result of such deposit and covenant
defeasance and will be subject to Federal income tax on the same amount and in
the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred; and
(e) the Company has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating
that all conditions precedent provided for herein relating to the covenant
defeasance contemplated by this Section 11.03 of the Securities of such series
have been complied with.
Section
11.04. Application of Trust Money. Subject to Section 11.05, the Trustee
or paying agent shall hold in trust money or Government Obligations deposited
with it pursuant to Section 11.01, 11.02 or 11.03, as the case maybe, in respect
of the Securities of any series and shall apply the deposited money and the
proceeds from deposited Government Obligations in accordance with the Securities
of such series and this Indenture to the payment of principal of (and premium,
if any) and interest on the Securities of such series; but such money need not
be segregated from other funds except to the extent required by law. The Company
shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Obligations deposited pursuant to Section
11.01, 11.02 or 11.03, as the case may be, or the principal and interest received in respect thereof,
other than any such tax, fee or other charge that by law is for the account of
the Securityholders.
43
Section
11.05. Repayment to Company. Subject to Sections 7.06, 11.01, 11.02 and
11.03, the Trustee and the paying agent shall promptly pay to the Company upon
request set forth in an Officers’ Certificate any money held by them at any time
and not required to make payments hereunder and thereupon shall be relieved from
all liability with respect to such money. Subject to applicable escheat or
abandoned property laws, the Trustee and the paying agent shall pay to the
Company upon written request any money held by them and required to make
payments under this Indenture that remains unclaimed for two years;
provided that the Trustee or such paying agent before being required to
make any such payment to the Company shall cause to be published at the expense
of the Company once in an Authorized Newspaper or mail to each Securityholder
entitled to such money at such Securityholder’s address (as set forth in the
register) notice that such money remains unclaimed and that after a date
specified therein (which shall be at least 30 days from the date of such
publication or mailing) any unclaimed balance of such money then remaining will
be repaid to the Company. After payment to the Company, Securityholders entitled
to such money must look to the Company for payment as unsecured general
creditors unless an abandoned property law designates another Person, and all
liability of the Trustee and such paying agent with respect to such money shall
cease.
ARTICLE 12
IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS
AND DIRECTORS
Section
12.01. No Recourse.
No
recourse under or upon any obligation, covenant or agreement of this Indenture,
or of any Security, or for any claim based thereon or otherwise in respect
thereof, shall be had against any incorporator, shareholder, officer or
director, past, present or future as such, of the Company or of any predecessor
or successor corporation, either directly or through the Company or any such
predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture and the obligations
issued hereunder are solely corporate obligations, and that no such personal
liability whatsoever shall attach to, or is or shall be incurred by, the
incorporators, shareholders, officers or directors as such, of the Company or of
any predecessor or successor corporation, or any of them, because of the
creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of
the Securities or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by
constitution or statute, of, and any and all such rights and claims against,
every such incorporator, shareholder, officer or director as such, because of
the creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of
the Securities or implied therefrom, are hereby expressly waived and released as
a condition of, and as a consideration for, the execution of this Indenture and
the issuance of such Securities.
44
ARTICLE 13
MISCELLANEOUS PROVISIONS
Section
13.01. Effect on Successors and Assigns.
All
the covenants, stipulations, promises and agreements in this Indenture contained
by or on behalf of the Company shall bind its successors and assigns, whether so
expressed or not.
Section
13.02. Actions by Successor.
Any act or proceeding which by any provision of this Indenture is 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
corresponding board, committee or officer of any corporation that shall at the
time be the lawful successor of the Company.
Section
13.03. Surrender of Company Powers.
The
Company, by an instrument in writing executed by 2/3 (two-thirds) of its Board
of Directors and delivered to the Trustee, may surrender any of the powers or
rights, but in no event any of its duties or obligations, reserved to the
Company under this Indenture, including any supplemental indenture hereto, and
thereupon such power or right so surrendered shall terminate both as to the
Company and as to any successor corporation.
Section
13.04. Notices.
Except
as otherwise expressly provided herein any notice or demand that by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the holders of Securities to or on the Company may be given or
served by being deposited first class postage prepaid in a post-office letterbox
addressed (until another address is filed in writing by the Company with the
Trustee), as follows: Net 1 UEPS Technologies, Inc., President Place,
4th Floor, Cnr. Jan Smuts Avenue and Bolton Road, Rosebank,
Johannesburg, South Africa. Any notice, election, request or demand by the
Company or any Securityholder to or upon the Trustee shall be deemed to have
been sufficiently given or made, for all purposes, if given or made in writing
at the Corporate Trust Office.
Section
13.05. Governing Law.
This
Indenture and each Security shall be deemed to be a contract made under the
internal laws of the State of New York, and for all purposes shall be construed
in accordance with the laws of said State.
Section
13.06. Compliance Certificates and Opinions.
(a)
Upon any application or demand by the Company to the Trustee to take any action
under any of the provisions of this Indenture, the Company shall furnish to the
Trustee an Officers’ Certificate stating that all conditions precedent 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.
45
(b)
Each certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant in this
Indenture shall include (i) a statement that the Person making such certificate
or opinion has read such covenant or condition; (ii) a brief statement as to the
nature and scope of the examination or investigation upon which the statements
or opinions contained in such certificate or opinion are based; (iii) a
statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (iv) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.
Section 13.07. Payments on Business Days.
Except
as provided pursuant to Section 2.01 pursuant to a Board Resolution, and as set
forth in an Officers’ Certificate or established in one or more indentures
supplemental to this Indenture, in any case where the date of maturity of
interest or principal of any Security or the date of redemption of any Security
shall not be a Business Day, then payment of interest or principal (and premium,
if any) may be made on the next succeeding Business Day with the same force and
effect as if made on the nominal date of maturity or redemption, and no interest
shall accrue for the period after such nominal date.
Section 13.08. Conflict with Trust Indenture Act.
If
and to the extent that any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act, such imposed duties shall control.
Section 13.09. 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 13.10. Separability.
In
case any one or more of the provisions contained in this Indenture or in the
Securities of any series shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Indenture or of such Securities,
but this Indenture and such Securities shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.
Section 13.11. Assignment.
The
Company will have the right at all times to assign any of its rights or
obligations under this Indenture to a direct or indirect wholly-owned Subsidiary
of the Company, provided that, in the event of any such assignment, the
Company will remain liable for all such obligations. Subject to the foregoing,
the Indenture is binding upon and inures to the benefit of the parties thereto
and their respective successors and assigns. This Indenture may not otherwise be
assigned by the parties hereto.
46
Section
13.12. Waiver of Jury Trial.
EACH
OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE
TRANSACTION CONTEMPLATED HEREBY.
Section
13.13. Force Majeure.
In
no event shall the Trustee be responsible or liable for any failure or delay in
the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without
limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking
industry to resume performance as soon as practicable under the circumstances.
Section
13.14. USA Patriot Act
The
parties hereto acknowledge that in accordance with Section 326 of the USA
PATRIOT Act, the Trustee, like all financial institutions and in order to help
fight the funding of terrorism and money laundering, is required to obtain,
verify and record information that identifies each person or legal entity that
establishes a relationship or opens an account with the Trustee. The parties to
this Indenture agree that they will provide the Trustee with such information as
it may request in order for the Trustee to satisfy the requirements of the USA
PATRIOT Act.
IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed as of the day and year first above written.
NET 1 UEPS TECHNOLOGIES, INC.
By:
____________________________________
Name:
Title:
WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Trustee
By:
____________________________________
Name:
Title:
47
Exhibit 4.2
| |
| NET 1 UEPS TECHNOLOGIES, INC., |
| Company |
| |
| |
| AND |
| |
| |
| WELLS FARGO BANK, NATIONAL ASSOCIATION, |
| Trustee |
| ___________________________ |
| |
| INDENTURE |
| |
| Dated as of |
| ____________________________ |
| |
| Subordinated Debt Securities |
| |
| |
CROSS-REFERENCE TABLE*
| Section of |
|
| Trust Indenture Act |
Section of |
| of 1939, as amended |
Indenture |
| 310(a) |
7.09 |
| 310(6) |
7.08 |
| |
7.10 |
| |
Inapplicable |
| 310(c) |
713(a) |
| 311(a) |
713(b) |
| 311(b) |
Inapplicable |
| 311(c) |
5.01 |
| 312(a) |
5.02(a) |
| 312(6) |
5.02(b) |
| 312(c) |
5.02(c) |
| 313(a) |
5.04(a) |
| 313(b) |
5.04(b) |
| 313(c) |
5.04(a) |
| |
5.04(b) |
| 313(d) |
5.04(c) |
| 314(a) |
5.03 |
| 314(b) |
Inapplicable |
| 314(c) |
Inapplicable |
| 314(d) |
Inapplicable |
| 314(e) |
Inapplicable |
| 314(f) |
Inapplicable |
| 315(a) |
7.01(a) |
| |
7.02 |
| 315(6) |
6.07 |
| 315(c) |
7.01 |
| 315(d) |
7.01(b) |
| |
7.01(c) |
| 315(e) |
6.07 |
| 316(a) |
6.06 |
| |
8.04 |
| 316(b) |
6.04 |
| 316(c) |
8.01 |
| 317(a) |
6.02 |
| 317(6) |
4.03 |
| 318(a) |
13.06 |
* This Cross-Reference Table does not constitute part of the
Indenture and shall not have any bearing on the interpretation of any of its
terms or provisions.
TABLE OF CONTENTS
i
ii
iii
INDENTURE,
dated as
of
between NET 1 UEPS TECHNOLOGIES, INC., a Florida corporation (the “Company”),
and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as
trustee (the “Trustee”):
WHEREAS,
for its lawful corporate purposes, the Company has duly authorized the execution
and delivery of this Indenture to provide for the issuance of unsecured
subordinated debt securities (hereinafter referred to as the “Securities”), in
an unlimited aggregate principal amount to be issued from time to time in one or
more series as in this Indenture provided, as registered Securities without
coupons, to be authenticated by the certificate of the Trustee;
WHEREAS,
to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture; and
WHEREAS,
all things necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done.
NOW,
THEREFORE, in consideration of the premises and the purchase of the Securities
by the holders thereof, it is mutually covenanted and agreed as follows for the
equal and ratable benefit of the Securityholders:
ARTICLE 1
DEFINITIONS
Section 1.01. Definitions of Terms.
The
terms defined in this Section (except as in this Indenture otherwise expressly
provided or unless the context otherwise requires) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective
meanings specified in this Section and shall include the plural as well as the
singular. All other terms used in this Indenture that are defined in the Trust
Indenture Act or that are by reference in the Trust Indenture Act 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
said Trust Indenture Act and in said Securities Act as in force at the date of
the execution of this instrument.
“Authenticating
Agent” means an authenticating agent with respect to all or any of the series of
Securities appointed with respect to all or any series of the Securities by the
Trustee pursuant to Section 2.10.
“Authorized
Newspaper” means a newspaper in the English language or in an official language
of the country of publication, customarily printed on each Business Day, whether
or not published on Saturdays, Sundays or holidays, and of general circulation
in the place in connection with which the term is used or in the financial
community of such place. If, because of temporary suspension of publication or
general circulation of any newspaper or for any other reason, it is impossible
or impracticable to make any publication of any notice required by this
Indenture in the manner herein provided, such publication or other notice in
lieu thereof which is made by the Company shall constitute a sufficient
publication of such notice.
“Bankruptcy
Law” means Title 11, U.S. Code, or any similar Federal or State law for the
relief of debtors.
“Board
of Directors” means the Board of Directors of the Company or any duly authorized
committee of such Board of Directors.
“Board
Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification.
“Business
Day” means, with respect to any series of Securities, any day other than a day
on which Federal or State banking institutions in the Borough of Manhattan, The
City of New York, are authorized or obligated by law, executive order or
regulation to close.
“Commission”
means the United States Securities and Exchange Commission and any successor
thereto.
“Company”
means Net 1 UEPS Technologies, Inc., a corporation duly organized and existing
under the laws of the State of Florida, and, subject to the provisions of
Article 10, shall also include its successors and assigns.
“Company Order” has the meaning assigned to such term in Section 2.04.
“Corporate
Trust Office” means the office of the Trustee at which, at any particular time,
its corporate trust business shall be principally administered, which office is
located at 150 East 42nd Street, 40th Floor, New York, New
York 10017 Attn: Corporate Trust Services Administrator for Net 1 UEPS
Technologies, Inc., or such other address as the Trustee may designate from time
to time by notice to the Securityholders and the Company, or the principal
corporate trust office of any successor Trustee (or such other address as such
successor Trustee may designate from time to time by notice to the
Securityholders and the Company).
“Custodian”
means any receiver, trustee, assignee, liquidator, or similar official under any
Bankruptcy Law.
“Default”
means any event, act or condition that with notice or lapse of time, or both,
would constitute an Event of Default.
“Defaulted
Interest” has the meaning assigned to such term in Section 2.03. “Depositary”
means, with respect to Securities of any series, for which the Company shall
determine that such Securities will be issued as a Global Security, The
Depository Trust Company, New York, New York, another clearing agency, or any
successor registered as a clearing agency under the Exchange Act or other
applicable statute or regulation, which, in each case, shall be designated by
the Company pursuant to either Section 2.01 or Section 2.11.
“Event
of Default” means, with respect to Securities of a particular series, any event
specified in Section 6.01, continued for the period of time, if any, therein
designated.
2
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Global
Security” means, with respect to any series of Securities, a Security executed
by the Company and delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instruction, all in accordance with the Indenture, which shall be
registered in the name of the Depositary or its nominee.
“Governmental
Obligations” means securities that are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged
or (ii) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America, the payment of which
is unconditionally guaranteed as a full faith and credit obligation by the
United States of America that, in either case, are not callable or redeemable at
the option of the issuer thereof, and shall also include a depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as
custodian with respect to any such Governmental Obligation or a specific payment
of principal of or interest on any such Governmental Obligation held by such
custodian for the account of the holder of such depositary receipt;
provided, however, that (except as required by law) such custodian
is not authorized to make any deduction from any amount payable to the holder of
such depositary receipt, or from any amount received by the custodian in respect
of the Governmental Obligation, or from any specific payment of principal of or
interest on the Governmental Obligation evidenced by such depositary receipt.
“herein”,
“hereof and “hereunder”, and other words of similar import, refer to this
Indenture as a whole and not to any particular Article, Section or other
subdivision.
“Indebtedness”
of any person means the principal of (and premium, if any) and interest due on
indebtedness of such Person, whether outstanding on the date of this Indenture
or thereafter created, incurred or assumed, which is (a) indebtedness for money
borrowed, and (b) any amendments, renewals, extensions, modifications and
refundings of any such indebtedness. For the purposes of this definition,
“indebtedness for money borrowed” means (i) any obligation of, or any obligation
guaranteed by, such Person for the repayment of borrowed money, whether or not
evidenced by bonds, debentures, notes or other written instruments, (ii) any
obligation of, or any such obligation guaranteed by, such Person evidenced by
bonds, debentures, notes or similar written instruments, including obligations
assumed or incurred in connection with the acquisition of property, assets or
businesses (provided, however, that the deferred purchase price of
any business or property or assets shall not be considered Indebtedness if the
purchase price thereof is payable in full within 90 days from the date on which
such indebtedness was created), and (iii) any obligations of such Person as
lessee under leases required to be capitalized on the balance sheet of the
lessee under generally accepted accounting principles and leases of property or
assets made as part of any sale and lease-back transaction to which such Person
is a party. For purposes of the covenant under Section 4.06 of this Indenture
only, Indebtedness also includes any obligation of, or any obligation guaranteed
by, any Person for the payment of amounts due under a swap agreement or similar
instrument or agreement, or under a foreign currency hedge or similar instrument
or agreement.
3
“Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into in accordance with the terms hereof.
“Interest
Payment Date”, when used with respect to any installment of interest on a
Security of a particular series, means the date specified in such Security or in
an Officers’ Certificate pursuant to a Board Resolution or in an indenture
supplemental hereto with respect to such series as the fixed date on which an
installment of interest with respect to Securities of that series is due and
payable.
“Officers’
Certificate” means a certificate, signed by any two of the Chief Executive
Officer, Chief Financial Officer, the Treasurer and an Assistant Treasurer of
the Company, provided that at least one such officer is the Chief Financial
Officer or the Treasurer of the Company, that is delivered to the Trustee in
accordance with the terms hereof. Each such certificate shall include the
statements provided for in Section 13.06, if and to the extent required by the
provisions thereof.
“Opinion
of Counsel” means an opinion in writing of legal counsel, who may be an employee
of or counsel for the Company, that is delivered to the Trustee in accordance
with the terms hereof. Each such opinion shall include the statements provided
for in Section 13.06, if and to the extent required by the provisions thereof.
“Outstanding”,
when used with reference to Securities of any series, means, subject to the
provisions of Section 8.04, as of any particular time, all Securities of that
series theretofore authenticated and delivered by the Trustee under this
Indenture, except: (a) Securities theretofore canceled by the Trustee or any
paying agent, or delivered to the Trustee or any paying agent for cancellation
or that have previously been canceled; (b) Securities or portions thereof for
the payment or redemption of which moneys or Governmental Obligations in the
necessary amount shall have been deposited in trust with the Trustee or with any
paying agent (other than the Company) or shall have been set aside and
segregated in trust by the Company (if the Company shall act as its own paying
agent), provided, however, that if such Securities or portions of
such Securities are to be redeemed prior to the maturity thereof, notice of such
redemption shall have been given as specified in Article 3 or provision
satisfactory to the Trustee shall have been made for giving such notice; and (c)
Securities in lieu of or in substitution for which other Securities shall have
been authenticated and delivered, or securities which shall have been paid,
pursuant to the terms of Section 2.07.
“Person”
means any individual, corporation, partnership, joint venture, joint-stock
company, limited liability company or other unincorporated organization or
government or any agency or political subdivision thereof.
“Predecessor
Security” of any particular Security means every previous Security evidencing
all or a portion of the same debt as that evidenced by such particular Security;
and, for the purposes of this definition, any Security authenticated and
delivered under Section 2.07 in lieu of a lost, destroyed or stolen Security
shall be deemed to evidence the same debt as the lost, destroyed or stolen
Security.
4
“Responsible
Officer” when used with respect to the Trustee means any vice president, any
assistant vice president, any trust officer or assistant trust officer or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of this Indenture.
“Securities Act” means the Securities Act of 1933, as amended.
“Securities”
means the debt securities authenticated and delivered under this Indenture.
“Securityholder”, “holder of Securities”, “registered holder”, or other similar
term, means the Person or Persons in whose name or names a particular Security
shall be registered on the books of the Security Registrar kept for that purpose
in accordance with the terms of this Indenture.
“Security
Register” has the meaning assigned to such term in Section 2.05(b) .
“Senior Indebtedness” means all Indebtedness, except for Indebtedness which, in
the instrument creating or evidencing the same, is expressly stated to be not
senior in right of payment to the Securities; provided that Senior
Indebtedness does not include (i) any obligation to the Company or any
Subsidiary or (ii) trade payables.
“Significant Subsidiary” means [ ].
“Subsidiary”
means, with respect to any Person, (i) any corporation, limited liability
company or other unincorporated entity at least a majority of whose outstanding
Voting Stock shall at the time be owned, directly or indirectly, by such Person
or by one or more of its Subsidiaries or by such Person and one or more of its
Subsidiaries, (ii) any general partnership, joint venture or similar entity, at
least a majority of whose outstanding partnership or similar interests shall at
the time be owned by such Person, or by one or more of its Subsidiaries, or by
such Person and one or more of its Subsidiaries and (iii) any limited
partnership of which such Person or any of its Subsidiaries is a general
partner.
“Trustee”
means Wells Fargo Bank, National Association, and, subject to the provisions of
Article 7, shall also include its successors and assigns, and, if at any time
there is more than one Person acting in such capacity hereunder, “Trustee” shall
mean each such Person. The term “Trustee” as used with respect to a particular
series of the Securities shall mean the trustee with respect to that series.
“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended, subject to the
provisions of Section 9.01 and Section 9.02, as in effect at the date of
execution of this instrument.
“UCC” means the Uniform Commercial Code, as in effect in each applicable
jurisdiction.
5
“Voting
Stock”, as applied to stock of any Person, means shares, interests,
participations or other equivalents in the equity interest (however designated)
in such Person having ordinary voting power for the election of a majority of
the directors (or the equivalent) of such Person, other than shares, interests,
participations or other equivalents having such power only by reason of the
occurrence of a contingency.
ARTICLE 2
ISSUE, DESCRIPTION, TERMS, EXECUTION REGISTRATION
AND EXCHANGE OF SECURITIES
Section 2.01. Designation and Terms of Securities.
The
aggregate principal amount of Securities that may be authenticated and delivered
under this Indenture is unlimited. The Securities may be issued in one or more
series up to the aggregate principal amount of Securities of that series from
time to time authorized by or pursuant to a Board Resolution or pursuant to one
or more indentures supplemental hereto. Prior to the initial issuance of
Securities of any series, there shall be established in or pursuant to a Board
Resolution, and set forth in an Officers’ Certificate, or established in one or
more indentures supplemental hereto:
(a) the title of the Security of the series and any applicable CUSIP and/or ISIN
numbers (which shall distinguish the Securities of the series from all other
Securities);
(b) any limit upon the aggregate principal amount of the Securities of that
series that may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of that series);
(c) the date or dates on which the principal of the Securities of the series is
payable;
(d) the rate or rates at which the Securities of the series shall bear interest
or the manner of calculation of such rate or rates, if any;
(e) the date or dates from which such interest shall accrue, the Interest
Payment Dates on which such interest will be payable or the manner of
determination of such Interest Payment Dates and the record date for the
determination of Securityholders to whom interest is payable on any such
Interest Payment Dates;
(f) the right, if any, to extend the interest payment periods and the duration
of such extension;
(g) the period or periods within which, the price or prices at which and the
terms and conditions upon which, Securities of the series may be redeemed, in
whole or in part, at the option of the Company;
(h) the obligation, if any, of the Company to redeem or purchase Securities of
the series pursuant to any sinking fund or analogous provisions (including
payments made in cash in participation of future sinking fund obligations) or at
the option of a holder thereof and the period or periods within which, the price or prices at which,
and the terms and conditions upon which, Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;
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(i) the subordination terms of the Securities of the series;
(j) the form of the Securities of the series including the form of the
certificate of authentication for such series;
(k) if other than denominations of one thousand U.S. dollars ($1,000) or any
integral multiple thereof, the denominations in which the Securities of the
series shall be issuable;
(l) any and all other terms with respect to such series (which terms shall not
be inconsistent with the terms of this Indenture) including any terms which may
be required by or advisable under United States laws or regulations or advisable
in connection with the marketing of Securities of that series;
(m) whether the Securities are issuable as a Global Security and, in such case,
the identity of the Depositary for such series;
(n) whether the Securities will be convertible into shares of common stock or
other securities of the Company and, if so, the terms and conditions upon which
such Securities will be so convertible, including the conversion price and the
conversion period;
(o) if other than the principal amount thereof, the portion of the principal
amount of Securities of the series which shall be payable upon declaration of
acceleration of the maturity thereof pursuant to Section 6.01;
(p) any additional or different Events of Default or restrictive covenants
provided for with respect to the Securities of the series;
(q) any provisions granting special rights to Securityholders when a specified
event occurs; and
(r) any special tax implications of the Securities of the series, including
provisions for an original issue discount, if offered.
All
Securities of any one series shall be substantially identical except as to
denomination and except as may otherwise be provided in or pursuant to any such
Board Resolution or in any indentures supplemental hereto.
If
any of the terms of the series are established by action taken pursuant to a
Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers’
Certificate setting forth the terms of the series.
Securities
of any particular series may be issued at various times, with different dates on
which the principal or any installment of principal is payable, with different
rates of interest, if any, or different methods by which rates of interest may be
determined, with different dates on which such interest may be payable and with
different redemption dates.
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Section 2.02. Form of Securities and Trustee’s Certificate.
The
Securities of any series and the Trustee’s certificate of authentication to be
borne by such Securities shall be substantially of the tenor and purport as set
forth in one or more indentures supplemental hereto or as provided by or
pursuant to a Board Resolution and set forth in an Officers’ Certificate, and
may have such letters, numbers or other marks of identification or designation
and such legends or endorsements printed, lithographed or engraved thereon as
the Company may deem appropriate and as are not inconsistent with the provisions
of this Indenture, or as may be required to comply with any law or with any rule
or regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which Securities of that series may be listed, or to conform to
usage.
Section 2.03. Denominations; Provision for Payment.
The
Securities shall be issuable as registered Securities without coupons and in the
denominations of one thousand U.S. dollars ($1,000) or any integral multiple
thereof, subject to Section 2.01(j) . The Securities of a particular series
shall bear interest payable on the dates and at the rate or rates specified with
respect to that series. The principal of and the interest on the Securities of
any series, as well as any premium thereon in case of redemption thereof prior
to maturity, shall be payable in the coin or currency of the United States of
America that at the time is legal tender for public and private debt, at the
office or agency of the Company maintained for that purpose in the Borough of
Manhattan, the City and State of New York. Each Security shall be dated the date
of its authentication. Interest on the Securities shall be computed on the basis
of a 360-day year composed of twelve 30-day months.
The
interest installment on any Security that is payable, and is punctually paid or
duly provided for, on any Interest Payment Date for Securities of that series
shall be paid to the Person in whose name said Security (or one or more
Predecessor Securities) is registered at the close of business on the regular
record date for such interest installment. In the event that any Security of a
particular series or portion thereof is called for redemption and the redemption
date is subsequent to a regular record date with respect to any Interest Payment
Date and prior to such Interest Payment Date, interest on such Security will be
paid upon presentation and surrender of such Security as provided in Section
3.03.
Any
interest on any Security that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date for Securities of the same series
(herein called “Defaulted Interest”) shall forthwith cease to be payable to the
registered holder on the relevant regular record date by virtue of having been
such registered holder; and such Defaulted Interest shall be paid by the
Company, at its election, as provided in clause (a) or clause (b) below:
8
(a) The Company may make payment of any Defaulted Interest on Securities to the
Persons in whose names such Securities (or their respective Predecessor
Securities) are registered at the close of business on a special record date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each such Security and the date of the proposed payment, and at the same time
the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Trustee shall fix a special record date for the
payment of such Defaulted Interest which shall not be more than 15 nor less than
10 days prior to the date of the proposed payment and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such special record date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the special record date therefor to be
mailed, first class postage prepaid, to each Securityholder at his or her
address as it appears in the Security Register (as hereinafter defined), not
less than 10 days prior to such special record date (or otherwise transmitted in
accordance with the procedure of the Depositary). Following such transmission of
notice of the proposed payment of such Defaulted Interest and the special record
date, such Defaulted Interest shall be paid to the Persons in whose names such
Securities (or their respective Predecessor Securities) are registered on such
special record date and shall be no longer payable pursuant to the following
clause (b).
(b)
The Company may make payment of any Defaulted Interest on any Securities in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be
required by such exchange, if, after notice given by the Company to the Trustee
of the proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee.
Unless
otherwise set forth in or pursuant to a Board Resolution or one or more
indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.01 hereof, the term “regular record date” as
used in this Section with respect to a series of Securities with respect to any
Interest Payment Date for such series shall mean either the fifteenth day of the
month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur, if such
Interest Payment Date is the first day of a month, or the first day of the month
in which an Interest Payment Date established for such series pursuant to
Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth
day of such month, whether or not such date is a Business Day.
Subject
to the foregoing provisions of this Section, each Security of a series delivered
under this Indenture upon transfer of or in exchange for or in lieu of any other
Security of such series shall carry the rights to interest accrued and unpaid,
and to accrue, that were carried by such other Security.
Section 2.04. Execution and Authentications.
The
Securities shall be signed on behalf of the Company by any two of its officers
among the Chief Executive Officer, Chief Financial Officer, the Treasurer and an
Assistant Treasurer, provided that at least one such officer is the Chief
Financial Officer or the Treasurer and attested by its Secretary or one of its
Assistant Secretaries. Signatures may be in the form of a manual or facsimile signature. The Company may use the facsimile
signature of any Person who shall have been a Chief Executive Officer, Chief
Financial Officer, Treasurer or Assistant Treasurer thereof, or of any Person
who shall have been a Secretary or Assistant Secretary thereof, notwithstanding
the fact that at the time the Securities shall be authenticated and delivered or
disposed of such Person shall have ceased to be the Chief Executive Officer,
Chief Financial Officer, Treasurer or Assistant Treasurer, or the Secretary or
an Assistant Secretary, of the Company. The Securities may contain such
notations, legends or endorsements as are required by law, stock exchange rule
or usage. Each Security shall be dated the date of its authentication by the
Trustee.
9
A
Security shall not be valid until authenticated manually by an authorized
signatory of the Trustee, or by an Authenticating Agent. Such signature shall be
conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the holder of such Security is
entitled to the benefits of this Indenture.
At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a written order of the
Company for the authentication and delivery of such Securities, signed by its
Chief Executive Officer, Chief Financial Officer, Treasurer or any Assistant
Treasurer and its Secretary or any Assistant Secretary (“Company Order”), and
the Trustee in accordance with such Company Order shall authenticate and deliver
such Securities.
In
authenticating such Securities and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 7.01) shall be fully protected in
relying upon (A) an Officers’ Certificate or executed supplemental indenture
setting forth the form and terms of the Securities as required pursuant to
Section 2.01, (B) an Opinion of Counsel stating (1) that the form and terms
thereof have been established in conformity with the provisions of this
Indenture, (2) that such Securities, when authenticated and delivered by the
Trustee and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will be valid and binding obligations of
the Company entitled to the benefits of this Indenture, and enforceable against
the Company in accordance with their terms, except to the extent that
enforcement thereof may be limited by (a) bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or similar laws now or
hereafter in effect relating to creditors’ rights generally, (b) general
principles of equity (regardless of whether enforceability is considered in a
proceeding in equity or at law) and (iii) that all conditions precedent to the
authentication of the Securities have been met, (C) an Officers’ Certificate
delivered pursuant to Section 13.06.
The
Trustee shall not be required to authenticate such Securities if the issue of
such Securities pursuant to this Indenture will affect the Trustee’s own rights,
duties or immunities under the Securities and this Indenture or otherwise in a
manner that is not reasonably acceptable to the Trustee.
Section 2.05. Registration of Transfer and Exchange
(a)
Securities of any series may be exchanged upon presentation thereof at the
office or agency of the Company designated for such purpose in the Borough of
Manhattan, the City and State of New York, for other Securities of such series of
authorized denominations, and for a like aggregate principal amount, upon
payment of a sum sufficient to cover any tax or other governmental charge in
relation thereto, all as provided in this Section. In respect of any Securities
so surrendered for exchange, the Company shall execute, the Trustee shall
authenticate and such office or agency shall deliver in exchange therefor the
Security or Securities of the same series that the Securityholder making the
exchange shall be entitled to receive, bearing numbers not contemporaneously
outstanding.
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(b)
The Company shall keep, or cause to be kept, at its office or agency designated
for such purpose in the Borough of Manhattan, the City and State of New York, or
such other location designated by the Company a register or registers (herein
referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall register the Securities and
the transfers of Securities as provided in this Section and which at all
reasonable times shall be open for inspection by the Trustee. The registrar for
the purpose of registering Securities and transfers of Securities as herein
provided shall be the Trustee (the “Security Registrar”).
Upon
surrender for transfer of any Security at the office or agency of the Company
designated for such purpose (which office shall be the Corporate Trust Office),
the Company shall execute, the Trustee shall authenticate and such office or
agency shall deliver in the name of the transferee or transferees a new Security
or Securities of the same series as the Security presented for a like aggregate
principal amount.
All
Securities presented or surrendered for exchange or registration of transfer, as
provided in this Section, shall be accompanied (if so required by the Company or
the Security Registrar) by a written instrument or instruments of transfer, in
form satisfactory to the Company or the Security Registrar, duly executed by the
registered holder or by such registered holder’s duly authorized attorney in
writing.
(c)
No service charge shall be made for any exchange or registration of transfer of
Securities, or issue of new Securities in case of partial redemption of any
series, but the Company may require payment of a sum sufficient to cover any tax
or other governmental charge in relation thereto, other than exchanges pursuant
to Section 2.06, Section 3.03(b) and Section 9.04 not involving any transfer.
(d)
The Company shall not be required (i) to issue, exchange or register the
transfer of any Securities during a period beginning at the opening of business
15 days before the day of the transmission of a notice of redemption of less
than all the Outstanding Securities of the same series and ending at the close
of business on the day of such transmission, nor (ii) to register the transfer
of or exchange any Securities of any series or portions thereof called for
redemption. The provisions of this Section 2.05 are, with respect to any Global
Security, subject to Section 2.11 hereof.
Section 2.06. Temporary Securities.
Pending
the preparation of definitive Securities of any series, the Company may execute,
and the Trustee shall authenticate and deliver, temporary Securities (printed,
lithographed or typewritten) of any authorized denomination. Such temporary
Securities shall be substantially in the form of the definitive Securities in
lieu of which they are issued, but with such omissions, insertions and
variations as may be appropriate for temporary Securities, all as may be
determined by the Company. Every temporary Security of any series shall be
executed by the Company and be authenticated by the Trustee upon the same
conditions and in substantially the same manner, and with like effect, as the
definitive Securities of such series. Without unnecessary delay the Company will
execute and will furnish definitive Securities of such series and thereupon any
or all temporary Securities of such series may be surrendered in exchange
therefor (without charge to the holders thereof), at the office or agency of the
Company designated for the purpose in the Borough of Manhattan, the City and
State of New York (which shall be the Corporate Trust office), and the Trustee
shall authenticate and such office or agency shall deliver in exchange for such
temporary Securities an equal aggregate principal amount of definitive
Securities of such series, unless the Company advises the Trustee in writing to
the effect that definitive Securities need not be executed and furnished until
further notice from the Company. Until so exchanged, the temporary Securities of
such series shall be entitled to the same benefits under this Indenture as
definitive Securities of such series authenticated and delivered hereunder.
11
Section 2.07. Mutilated, Destroyed, Lost or Stolen Securities.
In
case any temporary or definitive Security shall become mutilated or be
destroyed, lost or stolen, the Company (subject to the next succeeding sentence)
shall execute, and upon the Company’s delivery of a Company Order the Trustee
(subject as aforesaid) shall authenticate and deliver, a new Security of the
same series, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Security, or in lieu of and in substitution for
the Security so destroyed, lost or stolen. In every case the applicant for a
substituted Security shall furnish to the Company and the Trustee such security
or indemnity as required by them to save each of them harmless, and, in every
case of destruction, loss or theft, the applicant shall also furnish to the
Company and the Trustee evidence to their satisfaction of the destruction, loss
or theft of the applicant’s Security and of the ownership thereof. The Trustee
may authenticate any such substituted Security and deliver the same upon receipt
of a Company Order. Upon the issuance of any substituted Security, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee and its counsel)
connected therewith. In case any Security that has matured or is about to mature
shall become mutilated or be destroyed, lost or stolen, the Company may, instead
of issuing a substitute Security, pay or authorize the payment of the same
(without surrender thereof except in the case of a mutilated Security) if the
applicant for such payment shall furnish to the Company and the Trustee such
security or indemnity as they require to save them harmless, and, in case of
destruction, loss or theft, evidence to the satisfaction of the Company and the
Trustee of the destruction, loss or theft of such Security and of the ownership
thereof.
Every
replacement Security issued pursuant to the provisions of this Section shall
constitute an additional contractual obligation of the Company whether or not
the mutilated, destroyed, lost or stolen Security shall be found at any time, or
be enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of the
same series duly issued hereunder. All Securities shall be held and owned
12
upon the express condition that the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities and shall preclude (to the extent lawful) any and all
other rights or remedies, notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.
Section 2.08. Cancellation.
All
Securities surrendered for the purpose of payment, redemption, exchange or
registration of transfer shall, if surrendered to the Company or any paying
agent, be delivered to the Trustee for cancellation, or, if surrendered to the
Trustee, shall be cancelled by it, and no Securities shall be issued in lieu
thereof except as expressly required or permitted by any of the provisions of
this Indenture. On written request of the Company at the time of such surrender,
the Trustee shall deliver to the Company canceled Securities held by the
Trustee. In the absence of such request the Trustee may dispose of canceled
Securities in accordance with its standard procedures. If the Company shall
otherwise acquire any of the Securities, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Securities unless and until the same are delivered to the Trustee for
cancellation.
Section 2.09. Benefits of Indenture.
Nothing
in this Indenture or in the Securities, express or implied, shall give or be
construed to give to any Person, other than the parties hereto and the holders
of the Securities (and, with respect to the provisions of Article 14, the
holders of Senior Indebtedness) any legal or equitable right, remedy or claim
under or in respect of this Indenture, or under any covenant, condition or
provision herein contained; all such covenants, conditions and provisions being
for the sole benefit of the parties hereto and of the holders of the Securities
(and, with respect to the provisions of Article 14, the holders of Senior
Indebtedness).
Section 2.10. Authenticating Agent.
So
long as any of the Securities of any series remain Outstanding there may be an
Authenticating Agent for any or all such series of Securities which the Company
shall have the right to appoint. Said Authenticating Agent shall be authorized
to authenticate Securities of such series issued upon exchange, transferor
partial redemption thereof, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. All references in this
Indenture to the authentication of Securities by the Trustee shall be deemed to
include authentication by an Authenticating Agent for such series. Each
Authenticating Agent shall be acceptable to the Company and shall be a
corporation that has a combined capital and surplus, as most recently reported
or determined by it, sufficient under the laws of any jurisdiction under which
it is organized or in which it is doing business to conduct a trust business,
and that is otherwise authorized under such laws to conduct such business and is
subject to supervision or examination by Federal or State authorities. If at any
time any Authenticating Agent shall cease to be eligible in accordance with
these provisions, it shall resign immediately.
13
Any
Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Company may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Trustee. Upon resignation,
termination or cessation of eligibility of any Authenticating Agent, the Company
may appoint an eligible successor Authenticating Agent. Any successor
Authenticating Agent, upon acceptance of its appointment hereunder, shall become
vested with all the rights, powers and duties of its predecessor hereunder as if
originally named as an Authenticating Agent pursuant hereto.
Section 2.11. Global Securities.
(a)
If the Company shall establish pursuant to Section 2.01 that the Securities of a
particular series are to be issued as a Global Security, then the Company shall
execute and the Trustee shall, in accordance with Section 2.04, authenticate and
deliver, a Global Security that (i) shall represent, and shall be denominated in
an amount equal to the aggregate principal amount of, all of the Outstanding
Securities of such series, (ii) shall be registered in the name of the
Depositary or its nominee, (iii) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary’s instruction and (iv) shall bear a
legend substantially to the following effect: “Except as otherwise provided in
Section 2.11 of the Indenture, this Security may be transferred, in whole but
not in part, only to another nominee of the Depositary or to a successor
Depositary or to a nominee of such successor Depositary.”
(b) Notwithstanding the provisions of Section 2.05, the Global Security of a
series may be transferred, in whole but not in part and in the manner provided
in Section 2.05, only to another nominee of the Depositary for such series, or
to a successor Depositary for such series selected or approved by the Company or
to a nominee of such successor Depositary.
(c)
If at any time the Depositary for a series of the Securities notifies the
Company that it is unwilling or unable to continue as Depositary for such series
or if at any time the Depositary for such series shall no longer be registered
or in good standing under the Exchange Act or other applicable statute or
regulation, and a successor Depositary for such series is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such condition, as the case may be, this Section 2.11 shall no longer be
applicable to the Securities of such series and the Company will execute, and
subject to Sections 2.05 and 13.06, the Trustee will authenticate and deliver
the Securities of such series in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series in exchange for such
Global Security. In addition, the Company may at any time determine that the
Securities of any series shall no longer be represented by a Global Security and
that the provisions of this Section 2.11 shall no longer apply to the Securities
of such series. In such event the Company will execute and, subject to Section
2.05, the Trustee, upon receipt of an Officers’ Certificate evidencing such
determination by the Company, will authenticate and deliver the Securities of
such series in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security. Upon the exchange of the Global Security for such Securities in
definitive registered form without coupons, in authorized denominations, the
Global Security shall be canceled by the Trustee. Such Securities in definitive
registered form issued in exchange for the Global Security pursuant to this Section 2.11(c) shall be
registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Securities to the
Depositary for delivery to the Persons in whose names such Securities are so
registered.
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Section 2.12. CUSIP Numbers.
The
Company in issuing the Securities may use “CUSIP” numbers (if then generally in
use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption
as a convenience to Securityholders; provided, that any such notice may
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers. The Company will promptly notify
the Trustee in writing of any change in the “CUSIP” numbers.
ARTICLE 3
REDEMPTION OF SECURITIES AND SINKING FUND
PROVISIONS
Section 3.01. Redemption.
The
Company may redeem the Securities of any series issued hereunder on and after
the dates and in accordance with the terms established for such series pursuant
to Section 2.01 hereof.
Section 3.02. Notice of Redemption.
(a)
In case the Company shall desire to exercise such right to redeem all or, as the
case may be, a portion of the Securities of any series in accordance with the
right reserved so to do, the Company shall, or shall cause the Trustee to, give
notice of such redemption to holders of the Securities of such series to be
redeemed by mailing, first class postage prepaid, (or otherwise transmitted in
accordance with the procedure of the Depositary) a notice of such redemption not
less than 30 days and not more than 60 days before the date fixed for redemption
of that series to such holders at their last addresses as they shall appear upon
the Security Register unless a shorter period is specified in the Securities to
be redeemed. Any notice that is transmitted in the manner herein provided shall
be conclusively presumed to have been duly given, whether or not the registered
holder receives the notice. In any case, failure duly to give such notice to the
holder of any Security of any series designated for redemption in whole or in
part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any
other series. In the case of any redemption of Securities subject to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, the Company shall furnish the Trustee
with an Officers’ Certificate evidencing compliance with any such restriction.
Each
such notice of redemption shall specify the series of Securities being redeemed,
the CUSIP and/or ISIN numbers of the Securities being redeemed, the date fixed
for redemption and the redemption price at which Securities of that series are
to be redeemed, and shall state that payment of the redemption price of such
Securities to be redeemed will be made at the office or agency of the Company in the Borough of Manhattan, the City and
State of New York, upon presentation and surrender of such Securities, that
interest accrued to the date fixed for redemption will be paid as specified in
said notice, that from and after such date interest will cease to accrue and
that the redemption is for a sinking fund, if such is the case. If less than all
the Securities of a series are to be redeemed, the notice to the holders of
Securities of that series to be redeemed in whole or in part shall specify the
particular Securities to be so redeemed. In case any Security is to be redeemed
in part only, the notice that relates to such Security shall state the portion
of the principal amount thereof to be redeemed, and shall state that on and
after the redemption date, upon surrender of such Security, a new Security or
Securities of such series in principal amount equal to the unredeemed portion
thereof will be issued.
15
(b)
If the Trustee is to provide notice to the holders of Securities in accordance
with clause (a) above, for a partial or full redemption, the Company shall give
the Trustee the notice to be delivered to Securityholders at least 45 days
notice in advance of the date fixed for redemption as to the aggregate principal
amount of Securities of the series to be redeemed, and thereupon, in the case of
a partial redemption, the Trustee shall select, by lot or in such other manner
as it shall deem appropriate and fair (in accordance with the procedures of the
Depositary) and that may provide for the selection of a portion or portions
(equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof)
of the principal amount of such Securities of a denomination larger than $1,000,
the Securities to be redeemed and shall thereafter promptly notify the Company
in writing of the numbers of the Securities to be redeemed, in whole or in part.
The
Company may, if and whenever it shall so elect, by delivery of instructions
signed on its behalf by its Chief Executive Officer, Chief Financial Officer,
Treasurer or an Assistant Treasurer, instruct the Trustee or any paying agent to
call all or any part of the Securities of a particular series for redemption and
to give notice of redemption in the manner set forth in this Section, such
notice to be in the name of the Company.
Section 3.03. Payment Upon Redemption.
(a)
If the giving of notice of redemption shall have been completed as above
provided, the Securities or portions of Securities of the series to be redeemed
specified in such notice shall become due and payable on the date and at the
place stated in such notice at the applicable redemption price, together with
interest accrued to the date fixed for redemption, and interest on such
Securities or portions of Securities shall cease to accrue on and after the date
fixed for redemption; except that interest shall continue to accrue on any such
Security or portion thereof with respect to which the Company defaults in the
payment of such redemption price and accrued interest. On presentation and
surrender of such Securities on or after the date fixed for redemption at the
place of payment specified in the notice, said Securities shall be paid and
redeemed at the applicable redemption price for such series, together with
interest accrued thereon to the date fixed for redemption (but if the date fixed
for redemption is an interest payment date, the interest installment payable on
such date shall be payable to the registered holder at the close of business on
the applicable record date pursuant to Section 2.03) .
(b)
Upon presentation of any Security of such series that is to be redeemed in part
only, the Company shall execute and the Trustee shall authenticate and the
office or agency where the Security is presented shall deliver to the holder thereof, at
the expense of the Company, a new Security of the same series of authorized
denominations in principal amount equal to the unredeemed portion of the
Security so presented.
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Section 3.04. Sinking Fund.
The
provisions of this Section 3.04, Section 3.05 and Section 3.06 shall be
applicable to any sinking fund for the retirement of Securities of a series,
except as otherwise specified as contemplated by Section 2.01 for Securities of
such series.
The
minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund
payment,” and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an “optional sinking
fund payment”. If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 3.05. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such
series.
Section 3.05. Satisfaction of Sinking Fund Payments with Securities.
The
Company (i) may deliver Outstanding Securities of a series (other than any
Securities previously called for redemption) and (ii) may apply as a credit
Securities of a series that have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series, provided that such Securities have not been previously so
credited. Such Securities shall be received and credited for such purpose by the
Trustee at the redemption price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly.
Section 3.06. Redemption of Securities, for Sinking Fund.
Not
less than 45 days prior to each sinking fund payment date for any series of
Securities, the Company will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of the series, the portion thereof, if any, that is to be
satisfied by delivering and crediting Securities of that series pursuant to
Section 3.05 and the basis for such credit and will, together with such
Officers’ Certificate, deliver to the Trustee any Securities to be so delivered.
Not less than 30 days before each such sinking fund payment date the Trustee
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner specified in Section 3.02 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the
manner provided in Section 3.02. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Section 3.03.
ARTICLE 4
CERTAIN COVENANTS
17
Section 4.01. Payment of Principal, Premium and Interest.
The
Company will duly and punctually pay or cause to be paid the principal of (and
premium, if any) and interest on the Securities of that series on or prior to
11:00 a.m., New York City time, on such the date of such payment at the place
and in the manner provided herein and established with respect to such
Securities.
Section 4.02. Maintenance of Office or Agency.
So
long as any series of the Securities remain Outstanding, the Company agrees to
maintain an office or agency in the Borough of Manhattan, the City and State of
New York, with respect to each such series and at such other location or
locations as may be designated as provided in this Section 4.02, where (i)
Securities of that series may be presented for payment, (ii) Securities of that
series may be presented as hereinabove authorized for registration of transfer
and exchange, and (iii) notices and demands to or upon the Company in respect of
the Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by its Chief Executive Officer, Chief Financial
Officer, Treasurer, an Assistant Treasurer, Secretary or an Assistant Secretary
and delivered to the trustee, designate some other office or agency for such
purposes or any of them. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof in the case of (i) and (ii) above, such presentations, notices
and demands may be made or served at the Corporate Trust Office and the Company
hereby appoints the Trustee as its agent to receive all such presentations,
notices and demands.
Section 4.03. Paying Agents.
(a)
If the Company shall appoint one or more paying agents for all or any series of
the Securities, other than the Trustee, the Company will cause each such paying
agent to execute and deliver to the Trustee an instrument in which such agent
shall agree with the Trustee, subject to the provisions of this Section:
(i) that it will hold all sums held by it as such agent for the payment of the
principal of (and premium, if any) or interest on the Securities of that series
(whether such sums have been paid to it by the Company or by any other obligor
of such Securities) in trust for the benefit of the Persons entitled thereto;
(ii) that it will give the Trustee notice of any failure by the Company (or by
any other obligor of such Securities) to make any payment of the principal of
(and premium, if any) or interest on the Securities of that series when the same
shall be due and payable;
(iii) that it will, at any time during the continuance of any failure referred
to in the preceding paragraph (a)(ii) above, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such paying
agent; and
(iv) that it will perform all other duties of paying agent as set forth in this
Indenture.
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(b)
If the Company shall act as its own paying agent with respect to any series of
the Securities, it will on or before each due date of the principal of (and
premium, if any) or interest on Securities of that series, set aside, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay such principal (and premium, if any) or interest so becoming
due on Securities of that series until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and will promptly notify in writing
the Trustee of such action, or any failure (by it or any other obligor on such
Securities) to take such action. Whenever the Company shall have one or more
paying agents for any series of Securities, it will, prior to each due date of
the principal of (and premium, if any) or interest on any Securities of that
series, deposit with the paying agent a sum sufficient to pay the principal (and
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the Persons entitled to such principal, premium or interest, and
(unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of this action or failure so to act.
(c)
Notwithstanding anything in this Section to the contrary, (i) the agreement to
hold sums in trust as provided in this Section is subject to the provisions of
Section 11.05, and (ii) the Company may at any time, for the purpose of
obtaining the satisfaction and discharge of this Indenture or for any other
purpose, pay, or direct any paying agent to pay, to the Trustee all sums held in
trust by the Company or such paying agent, such sums to be held by the Trustee
in accordance with Section 11.04 and upon the same terms and conditions as those
upon which such sums were held by the Company or such paying agent; and, upon
such payment by any paying agent to the Trustee, such paying agent shall be
released from all further liability with respect to such money.
Section 4.04. Appointment to Fill Vacancy in Office of Trustee.
The
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee,
will appoint, in the manner provided in Section 7.10, a Trustee, so that there
shall at all times be a Trustee hereunder.
Section 4.05. Compliance with Consolidation Provisions.
The
Company will not, while any of the Securities remain Outstanding, consolidate
with, or merge into, or merge into itself, or sell or convey all or
substantially all of its property to any other company unless the provisions of
Article 10 hereof are complied with.
Section 4.06. Limitation on Liens on Stock of Significant Subsidiaries.
The
Company will not, and it will not permit any Subsidiary of the Company to, at
any time directly or indirectly create, assume, incur or permit to exist any
Indebtedness secured by a pledge, lien or other encumbrance (any pledge, lien or
other encumbrance being hereinafter in this Section referred to as a “lien”) on
the Voting Stock of a Significant Subsidiary without making effective provision
whereby the Securities then Outstanding (and, if the Company so elects, any
other Indebtedness of the Company that is not subordinate to the Securities and
with respect to which the governing instruments require, or pursuant to which
the Company is otherwise obligated or required, to provide such security) shall
be equally and ratably secured with such secured Indebtedness so long as such
other Indebtedness shall be so secured.
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If
the Company shall hereafter be required to secure the Securities equally and
ratably with any other Indebtedness pursuant to this Section, (i) the Company
will promptly deliver to the Trustee an Officers’ Certificate stating that the
foregoing covenant has been complied with, and an Opinion of Counsel stating
that in the opinion of such counsel the foregoing covenant has been complied
with and (ii) the Trustee is hereby authorized to enter into an indenture or
agreement supplemental hereto and to take such action, if any, as it may deem
advisable to enable it to enforce the rights of the holders of the Securities so
secured.
Section 4.07. Trustee’s Obligations with Respect to the Covenants.
The
Trustee shall not be obligated to monitor or confirm, on a continuing basis or
otherwise, the Company’s compliance with the covenants contained in this Article
4 or with respect to reports or other documents filed under the Indenture
(unless otherwise required hereunder).
Section 4.08. Compliance Certificate.
The
Company shall deliver to the Trustee within 120 days after the end of each of
the Company’s fiscal years commencing _______, 201__, a certificate executed by
its principal executive officer, principal financial officer or principal
accounting officer, stating as to his or her knowledge the Company’s compliance
(without regard to periods of grace or notice requirements) with all conditions
and covenants under this Indenture, and if the Company shall not be in
compliance, specifying such non-compliance and the nature and status thereof of
which such officer may have knowledge. Promptly upon learning of a Default, the
Company shall provide notice thereof to the Trustee.
ARTICLE 5
SECURITY HOLDERS LISTS AND REPORTS BY THE COMPANY
AND THE TRUSTEE
Section
5.01. Company to Furnish Trustee Names and Addresses of Securityholders.
The Company will furnish or cause to be furnished to the Trustee (a) on each
regular record date (as defined in Section 2.03) a list, in such form as the
Trustee may reasonably require, of the names and addresses of the holders of
each series of Securities as of such regular record date, provided that
the Company shall not be obligated to furnish or cause to furnish such list at
any time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the
Trustee may request in writing within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished; provided,
however, that, in either case, no such list need be furnished for any
series for which the Trustee shall be the Security Registrar.
Section
5.02. Preservation of Information; Communications with Securityholders.
(a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
Securities contained in the most recent list furnished to it as provided in
Section 5.01 and as to the names and addresses of holders of Securities received by the Trustee in its capacity
as Security Registrar (if acting in such capacity).
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(b)
The Trustee may destroy any list furnished to it as provided in Section 5.01
upon receipt of a new list so furnished.
(c)
Securityholders may communicate as provided in Section 312(b) of the Trust
Indenture Act with other Securityholders with respect to their rights under this
Indenture or under the Securities.
Section 5.03. Reports by the Company.
(a)
The Company covenants and agrees to file with the Trustee, within 30 days after
the Company is required to file the same with the Commission, copies of the
annual reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) that the Company may be required to file with
the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or,
if the Company is not required to file information, documents or reports
pursuant to either of such sections, then to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time to
time by the Commission, such of the supplementary and periodic information,
documents and reports that may be required pursuant to Section 13 of the
Exchange Act, in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations.
(b)
The Company covenants and agrees to file with the Trustee and the Commission, in
accordance with the rules and regulations prescribed from time to time by the
Commission, such additional information, documents and reports with respect to
compliance by the Company with the conditions and covenants provided for in this
Indenture as may be required from time to time by such rules and regulations.
(c)
Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).
(d)
The Company covenants and agrees to transmit in accordance with the procedures
of the Depositary or by mail, first class postage prepaid, or reputable
over-night delivery service that provides for evidence of receipt, to the
Securityholders, as their names and addresses appear upon the Security Register,
within 30 days after the filing thereof with the Trustee, such summaries of any
information, documents and reports required to be filed by the Company pursuant
to subsections (a) and (b) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission.
Section 5.04. Reports by the Trustee.
21
(a)
On or before May 15 in each year in which any of the Securities are Outstanding,
the Trustee shall transmit in accordance with the procedures of the Depositary
or by mail, first class postage prepaid, to the Securityholders, as their names
and addresses appear upon the Security Register, a brief report dated as of the
preceding May 15, if and to the extent required under Section 313(a) of the
Trust Indenture Act.
(b)
The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture
Act.
(c) A copy of each such report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with the Company, with each stock
exchange upon which any Securities are listed (if so listed) and also with the
Commission. The Company agrees to reasonably promptly notify the Trustee in
writing when any Securities become listed on any stock exchange, and of any
delisting thereof.
ARTICLE 6
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON
EVENT OF DEFAULT
Section 6.01. Events of Default.
(a)
Whenever used herein with respect to Securities of a particular series, “Event
of Default” means any one or more of the following events that has occurred and
is continuing:
(i) the Company defaults in the payment of any installment of interest upon any
of the Securities of that series, as and when the same shall become due and
payable, and continuance of such default for a period of 90 days;
provided, however, that a valid extension of an interest payment
period by the Company in accordance with the terms of any indenture supplemental
hereto, shall not constitute a default in the payment of interest for this
purpose;
(ii) the Company defaults in the payment of the principal of (or premium, if
any, on) any of the Securities of that series as and when the same shall become
due and payable whether at maturity, upon redemption, by declaration or
otherwise, or in any payment required by any sinking or analogous fund
established with respect to that series; provided, however, that a
valid extension of the maturity of such Securities in accordance with the terms
of any indenture supplemental hereto shall not constitute a default in the
payment of principal or premium, if any;
(iii) the Company fails to observe or perform any other of its covenants or
agreements with respect to that series contained in this Indenture or otherwise
established with respect to that series of Securities pursuant to Section 2.01
hereof (other than a covenant or agreement that has been expressly included in
this Indenture solely for the benefit of one or more series of Securities other
than such series) for a period of 90 days after the date on which written notice
of such failure, requiring the same to be remedied and stating that such notice
is a “Notice of Default” hereunder, shall have been given to the Company by the
Trustee, by registered or certified mail, or to the Company and the Trustee by
the holders of at least 25% in aggregate principal amount of the Securities of
all series affected by such failure at the time Outstanding;
22
(iv)
the Company pursuant to or within the meaning of any Bankruptcy Law (A)
commences a voluntary case, (B) consents to the entry of an order for relief
against it in an involuntary case, (C) consents to the appointment of a
Custodian of it or for all or substantially all of its property or (D) makes a
general assignment for the benefit of its creditors;
(v) a court of competent jurisdiction enters an order under any Bankruptcy Law
that (A) is for relief against the Company in an involuntary case, (B) appoints
a Custodian of the Company for all or substantially all of their respective
property, or (C) orders the liquidation of the Company, and the order or decree
remains unstayed and in effect for 90 days; or
(vi) any other Event of Default provided for with respect to the Securities of
such series in accordance with Section 2.01.
(b)
If an Event of Default described in clauses (a)(i) or (a)(ii) of this Section
6.01 with respect to the Securities of any series then Outstanding hereunder
occurs and is continuing, then, unless the principal of the Securities of such
series shall have already become due and payable, either the Trustee or the
holders of not less than 25% in aggregate principal amount of the Securities of
such series then Outstanding, by notice in writing to the Company (and to the
Trustee if given by such Securityholders), may declare the principal of all the
Securities of such series and interest accrued thereon, if any, to be due and
payable immediately, and upon any such declaration the same shall become and
shall be immediately due and payable, notwithstanding anything contained in this
Indenture or in the Securities of such series or established with respect to
such series pursuant to Section 2.01 to the contrary. If an Event of Default
described in clauses (a)(iv) or (a)(v) of this Section 6.01 occurs and is
continuing, or if an Event of Default described in clauses (a)(iii) or (a)(vi)
of this Section 6.01 with respect to Securities of one or more series then
Outstanding hereunder occurs and is continuing, then, except with respect to any
such affected series for which the principal of all the Securities thereof shall
have already become due and payable, either the Trustee or the holders of not
less than 25% in aggregate principal amount of the Securities of all affected
series then Outstanding (all such series voting together as a single class), by
notice in writing to the Company (and to the Trustee if given by such
Securityholders), may declare the principal of all the Securities then
Outstanding of such series and interest accrued thereon, if any, to be due and
payable immediately, and upon such declaration the same shall become immediately
due and payable.
(c)
At any time after the principal of the Securities of any series shall have been
declared due and payable as provided in Section 6.01(b), and before any judgment
or decree for the payment of the moneys due shall have been obtained or entered
as hereinafter provided, the holders of a majority in aggregate principal amount
of the Securities of such series then Outstanding (in the case of an Event of
Default described in clauses (a)(i) or (a)(ii) of this Section 6.01, each such
affected series voting as a separate class, and in the case of an Event of
Default described in clauses (a)(iii), (a)(iv), (a)(v) or (a)(vi) of this
Section 6.01, all such affected series voting together as a single class), by
written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if: (1) the Company has paid or deposited with
the Trustee a sum sufficient to pay all matured installments of interest upon
all the Securities of such series and the principal of (and premium, if any, on)
any and all Securities of such series that shall have become due otherwise than by
acceleration (with interest upon such principal and premium, if any, and, to the
extent that such payment is enforceable under applicable law, upon overdue
installments of interest, applied to the Securities of each such series at the
rate per annum expressed in the Securities of each such series, respectively, to
the date of such payment or deposit) and the amount payable to the Trustee under
Section 7.06, and (2) any and all Events of Default under the Indenture with
respect to such series, other than the nonpayment of principal on Securities of
that series that shall not have become due by their terms, shall have been
remedied or waived as provided in Section 6.06.
23
No
such rescission and annulment shall extend to or shall affect any subsequent
default or impair any right consequent thereon.
(d)
In case the Trustee shall have proceeded to enforce any right with respect to
Securities of any such series under this Indenture and such proceedings shall
have been discontinued or abandoned because of such rescission or annulment or
for any other reason or shall have been determined adversely to the Trustee,
then and in every such case the Company and the Trustee shall be restored
respectively to their former positions and rights hereunder, and all rights,
remedies and powers of the Company and the Trustee shall continue as though no
such proceedings had been taken.
Section
6.02. Collection of Indebtedness and Suits for Enforcement by Trustee.
(a) The Company covenants that (i) in case it shall default in the payment of
any installment of interest on any of the Securities of a series, or any payment
required by any sinking or analogous fund established with respect to that
series as and when the same shall have become due and payable, and such default
shall have continued for a period of 90 Business Days, or (ii) in case it shall
default in the payment of the principal of (or premium, if any, on) any of the
Securities of a series when the same shall have become due and payable, whether
upon maturity of the Securities of a series or upon redemption or upon
declaration or otherwise, then, upon demand of the Trustee, the Company will pay
to the Trustee, for the benefit of the holders of the Securities of that series,
the whole amount that then shall have been become due and payable on all such
Securities for principal (and premium, if any) or interest, or both, as the case
may be, with interest upon the overdue principal (and premium, if any) and (to
the extent that payment of such interest is enforceable under applicable law)
upon overdue installments of interest at the rate per annum expressed in the
Securities of that series; and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, and the
amount payable to the Trustee under Section 7.06.
(b)
If the Company shall fail to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, shall be entitled
and empowered to institute any action or proceedings at law or in equity for the
collection of the sums so due and unpaid (including its reasonable attorney fees
and expenses), and may prosecute any such action or proceeding to judgment or
final decree, and may enforce any such judgment or final decree against the
Company or other obligor upon the Securities of that series and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or other obligor upon the Securities of that series,
wherever situated.
24
(c)
In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or judicial proceedings
affecting the Company, or its creditors or property, the Trustee shall have
power to intervene in such proceedings and take any action therein that may be
permitted by the court and shall (except as may be otherwise provided by law) be
entitled to file such proofs of claim and other papers and documents as may be
necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and
payable by the Company under the Indenture at the date of institution of such
proceedings and for any additional amount that may become due and payable by the
Company after such date, and to collect and receive any moneys or other property
payable or deliverable on any such claim, and to distribute the same after the
deduction of the amount payable to the Trustee under Section 7.06; and any
receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the holders of Securities of such series to make such
payments to the Trustee, and, in the event that the Trustee shall consent to the
making of such payments directly to such Securityholders, to pay to the Trustee
any amount due it under Section 7.06.
(d)
All rights of action and of asserting claims under this Indenture, or under any
of the terms established with respect to Securities of that series, may be
enforced by the Trustee without the possession of any of such Securities, or the
production thereof at any trial or other proceeding relative thereto, and any
such suit or proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after
provision for payment to the Trustee of any amounts due under Section 7.06, be
for the ratable benefit of the holders of the Securities of such series.
In
case of an Event of Default hereunder, the Trustee may proceed to protect and
enforce the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in
the Indenture or in aid of the exercise of any power granted in this Indenture,
or to enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law.
Nothing
contained herein shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Securityholder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
of that series or the rights of any holder thereof or to authorize the Trustee
to vote in respect of the claim of any Securityholder in any such proceeding.
Section 6.03. Application of Moneys Collected.
Any moneys collected by the Trustee pursuant to this Article with respect to a
particular series of Securities shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
moneys on account of principal (or premium, if any) or interest, upon
presentation of the Securities of that series, and notation thereon the payment,
if only partially paid, and upon surrender thereof if fully paid:
FIRST: To the
payment of costs and expenses of collection and of all amounts payable to the
Trustee under Section 7.06;
25
SECOND:
To the payment of all Senior Indebtedness of the Company if and to the extent
required by Article 14; and
THIRD: To the payment of the amounts then due and unpaid upon Securities of such
series for principal (and premium, if any) and interest, in respect of which or
for the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and payable on
such Securities for principal (and premium, if any) and interest, respectively.
FOURTH:
To the Company or as a court of competent jurisdiction may direct in a final
non-appealable judgement.
Section 6.04. Limitation on Suits.
No
holder of any Security of any series shall have any right by virtue or by
availing itself of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless: (a) such holder previously shall have given to the
Trustee written notice of an Event of Default and of the continuance thereof
with respect to the Securities of such series specifying such Event of Default,
as hereinbefore provided; (b) the holders of not less than 25% in aggregate
principal amount of the Outstanding Securities of such series (in the case of an
Event of Default described in clauses (a)(i) or (a)(ii) of Section 6.01, each
such series voting as a separate class, and in the case of an Event of Default
described in clauses (a)(iii), (a)(iv), (a)(v) or (a)(vi) of Section 6.01, all
affected series voting together as a single class) or shall have made written
request upon the Trustee to institute such action, suit or proceeding in its own
name as trustee hereunder; (c) such holder or holders shall have offered to the
Trustee such indemnity satisfactory to the Trustee against the costs, expenses
and liabilities to be incurred therein or thereby; (d) the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
failed to institute any such action, suit or proceeding; and (e) during such 60
day period, the holders of a majority in principal amount of the Securities of
such series (voting as provided in clause (b) above) do not give the Trustee a
direction inconsistent with the request.
Notwithstanding
anything contained herein to the contrary, any other provisions of this
Indenture, the right of any holder of any Security to receive payment of the
principal of (and premium, if any) and interest on such Security, as therein
provided, on or after the respective due dates expressed in such Security (or in
the case of redemption, on the redemption date), or to institute suit for the
enforcement of any such payment on or after such respective dates or redemption
date, shall not be impaired or affected without the consent of such holder and
by accepting a Security hereunder it is expressly understood, intended and
covenanted by the taker and holder of every Security of such series with every
other such taker and holder and the Trustee, that no one or more holders of
Securities of such series shall have any right in any manner whatsoever by
virtue or by availing of any provision of this Indenture to affect, disturb or
prejudice the rights of the holders of any other of such Securities, or to
obtain or seek to obtain priority over or preference to any other such holder,
or to enforce any right under this Indenture, except in the manner herein
provided and for the equal, ratable and common benefit of all holders of
Securities of such series. For the protection and enforcement of the provisions
of this Section, each and every Securityholder and the Trustee shall be
entitled to such relief as can be given either at law or in equity.
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Section
6.05. Rights and Remedies Cumulative; Delay or Omission not Waiver.
(a)
Except as otherwise provided in Section 2.07, all powers and remedies given by
this Article to the Trustee or to the Securityholders shall, to the extent
permitted by law, be deemed cumulative and not exclusive of any other powers and
remedies available to the Trustee or the holders of the Securities, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture or otherwise established
with respect to such Securities.
(b)
No delay or omission of the Trustee or of any holder of any of the Securities to
exercise any right or power accruing upon any Event of Default occurring and
continuing as aforesaid shall impair any such right or power, or shall be
construed to be a waiver of any such default or on acquiescence therein; and,
subject to the provisions of Section 6.04, every power and remedy given by this
Article or by law to the Trustee or the Securityholders may be exercised from
time to time, and as often as shall be deemed expedient, by the Trustee or by
the Securityholders.
Section
6.06. Control by Securityholders.
The holders of a majority in aggregate principal amount of the Securities of all
series at the time Outstanding affected thereby (all such series voting together
as a single class except with respect to an Event of Default described in
clauses (a)(i) or (a)(ii) of Section 6.01, in which case, each such affected
series voting as a separate class), determined in accordance with Section 8.04,
shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred on the Trustee with respect to such series subject to Section
7.02(d); provided, however, that such direction shall not be in
conflict with any rule of law or with this Indenture or be unduly prejudicial to
the rights of holders of Securities of any other series at the time Outstanding
determined in accordance with Section 8.04. Subject to the provisions of Section
7.01, the Trustee shall have the right to decline to follow any such direction
if the Trustee in good faith shall, by a Responsible Officer or Officers of the
Trustee, determine that the proceeding so directed would involve the Trustee in
personal liability. The holders of a majority in aggregate principal amount of
the Securities of all series at the time Outstanding affected thereby (all such
series voting together as a single class), determined in accordance with Section
8.04, may on behalf of the holders of all of the Securities of such series waive
any past default in the performance of any of the covenants contained herein or
established pursuant to Section 2.01 with respect to such series and its
consequences, except a default in the payment of the principal of, or premium,
if any, or interest on, any of the Securities of any such series as and when the
same shall become due by the terms of such Securities otherwise than by
acceleration (unless such default has been cured and a sum sufficient to pay all
matured installments of interest and principal and any premium has been
deposited with the Trustee (in accordance with Section 6.01(c)) . Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes
of this Indenture and the Company, the Trustee and the holders of the Securities
of such series shall be restored to their former positions and rights hereunder, respectively; but
no such waiver shall extend to any subsequent or other default or impair any
right consequent thereon.
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Section 6.07. Undertaking to Pay Costs.
All
parties to this Indenture agree, and each holder of any Securities by such
holder’s acceptance thereof shall be deemed to have agreed, that any court may
in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the
Outstanding Securities of any series, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest on any Security of such series, on or after the
respective due dates expressed in such Security or established pursuant to this
Indenture.
ARTICLE 7
CONCERNING THE TRUSTEE
Section 7.01. Certain Duties and Responsibilities of Trustee.
(a)
The Trustee, prior to the occurrence of an Event of Default with respect to the
Securities of a series and after the curing of all Events of Default with
respect to the Securities of that series that may have occurred, shall undertake
to perform with respect to the Securities of such series such duties and only
such duties as are specifically set forth in this Indenture, and no implied
covenants shall be read into this Indenture against the Trustee. In case an
Event of Default with respect to the Securities of a series has occurred (that
has not been cured or waived), the Trustee shall exercise with respect to
Securities of that series such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.
(b)
No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or its
own willful misconduct, except that:
(i)
prior to the occurrence of an Event of Default with respect to the Securities of
a series and after the curing or waiving of all such Events of Default with
respect to that series that may have occurred:
(A)
the duties and obligations of the Trustee shall with respect to the Securities
of such series be determined solely by the express provisions of this Indenture,
and the Trustee shall not be liable with respect to the Securities of such
series except for the performance of such duties and obligations as are
specifically set forth in this Indenture, and no
implied covenants or obligations shall be read into this Indenture against the
Trustee; and
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(B) in the absence of bad faith on the part of the Trustee, the Trustee may with
respect to the Securities of such series conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates or
opinions that by any provision hereof are specifically required to be furnished
to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture (but
need not confirm or investigate the accuracy of any mathematical calculations or
other facts stated therein);
(ii) the Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer or Responsible Officers of the Trustee, unless it
shall be proved that the Trustee was negligent in ascertaining the pertinent
facts;
(iii) the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of
Securityholders provided to the Trustee in accordance with Section 6.06 relating
to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the
Trustee under this Indenture with respect to the Securities of such series;
(iv) none of the provisions contained in this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of
its rights or powers, if there is reasonable ground for believing that the
repayment of such funds or liability is not reasonably assured to it under the
terms of this Indenture or adequate indemnity against such risk is not
reasonably assured to it; and
(v) whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct of or affecting the liability of or affording
protection to the Trustee shall be subject to the requirements of the Trust
Indenture Act.
Section 7.02. Certain Rights of Trustee.
Except as otherwise provided in Section 7.01:
(a)
the Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security or
other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(b) any request, direction, order or demand of the Company mentioned herein
shall be sufficiently evidenced by a Board Resolution or an instrument signed in
the name of the Company, by any two of the Chief Executive Officer, Chief
Financial Officer, the Secretary, an Assistant Secretary, the Treasurer and an Assistant Treasurer
thereof (unless other evidence in respect thereof is specifically prescribed
herein);
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(c) the Trustee may consult with counsel of its selection and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted hereunder in
good faith and in reliance thereon;
(d) subject to Section 7.01, the Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Indenture at the
request, order or direction of any of the Securityholders, pursuant to the
provisions of this Indenture, unless such Securityholders shall have offered to
the Trustee security or indemnity satisfactory to it against the costs, expenses
and liabilities that may be incurred therein or thereby;
(e) the Trustee shall not be liable for any action taken or omitted to be taken
by it in good faith and believed by it to be authorized or within the discretion
or rights or powers conferred upon it by this Indenture;
(f) the Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond, security, or other
papers or documents, unless requested in writing so to do and indemnified by the
holders of not less than a majority in principal amount of the Outstanding
Securities of the series affected thereby. The reasonable expense of every such
examination shall be paid by the Company or, if paid by the Trustee, shall be
repaid by the Company upon demand;
(g) the Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys and the
Trustee shall not be responsible for appointed with due care by it hereunder:
(h) the Trustee shall not be deemed to have notice of any Default or Event of
Default unless a Responsible Officer of the Trustee has actual knowledge thereof
or unless written notice of any event which is in fact such a default is
received by the Trustee at the Corporate Trust Office, and such notice
references the Securities and this Indenture;
(i) the rights, privileges, protections, immunities and benefits given to the
Trustee, including, without limitation, its right to be indemnified in
connection with the performance of its duties under this Indenture shall extend
to the Trustee’s officers, directors, agents and employees. Such immunities and
protections and right to indemnification, together with the Trustee’s right to
compensation, shall survive the Trustee’s resignation or removal and final
payment of the Securities;
(j) the Trustee may request that the Company deliver a certificate setting forth
the names of individuals and/or titles of officers authorized at such time to
take specified actions pursuant to this Indenture;
(k) in no event shall the Trustee be responsible or liable for special,
indirect, or consequential loss or damage of any kind whatsoever (including, but
not limited to, loss of profit) irrespective of whether the Trustee has been advised of
the likelihood of such loss or damage and regardless of the form of action; and
30
(l) The Trustee shall not be required to give any bond or surety in respect of
the performance of its powers and duties hereunder.
Section 7.03. Trustee not Responsible for Recitals or Issuance or
Securities.
(a)
The recitals contained herein and in the Securities shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same.
(b)
The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities.
(c)
The Trustee shall not be accountable for the use or application by the Company
of any of the Securities or of the proceeds of such Securities, or for the use
or application of any moneys paid over by the Trustee in accordance with any
provision of this Indenture or established pursuant to Section 2.01, or for the
use or application of any moneys received by any paying agent other than the
Trustee.
Section 7.04. May Hold Securities.
The
Trustee or any paying agent or Security Registrar, in its individual or any
other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not Trustee, paying agent or Security Registrar.
Section 7.05. Moneys Held in Trust.
Subject
to the provisions of Section 11.05, all moneys received by the Trustee shall,
until used or applied as herein provided, be held in trust for the purposes for
which they were received, but need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest
on any moneys received by it hereunder except such as it may agree with the
Company in writing to pay thereon.
Section 7.06. Compensation and Reimbursement.
(a)
The Company covenants and agrees to pay to the Trustee, and the Trustee shall be
entitled to, such compensation (which shall not be limited by any provision of
law in regard to the compensation of a trustee of an express trust), as the
Company, and the Trustee may from time to time agree in writing, for all
services rendered by it in the execution of the trusts hereby created and in the
exercise and performance of any of the powers and duties hereunder of the
Trustee, and, the Company will pay or reimburse the Trustee upon its request for
all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any of the provisions of this Indenture (including
the reasonable compensation and the expenses and disbursements of its counsel
and of all Persons not regularly in its employ) except any such expense,
disbursement or advance as may be determined to have been caused by its own
negligence or willful misconduct. The Company also covenants to indemnify the
Trustee (and its officers, agents, directors and employees) for, and to hold it
harmless against, any loss, liability, claim, damage or expense incurred without negligence
or willful misconduct on the part of the Trustee and arising out of or in
connection with the acceptance or administration of this trust, including the
costs and expenses of defending itself against any claim of liability in the
premises.
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(b)
The obligations of the Company under this Section to compensate and indemnify
the Trustee and to pay or reimburse the Trustee for expenses, disbursements and
advances shall constitute additional indebtedness hereunder. Such additional
indebtedness shall be secured by a lien prior to that of the Securities upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the benefit of the holders of particular Securities. The benefits
of this Section shall survive the termination of this Indenture or the
resignation or removal of the Trustee.
(c)
When the Trustee incurs expenses or renders services in connection with an Event
of Default, 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.
Section
7.07. Reliance on Officers’ Certificate or Opinion of Counsel or Both.
Except as otherwise provided in Section 7.01, whenever in the administration of
the provisions of this Indenture the Trustee shall deem it necessary or
desirable that a matter be proved or established prior to taking or suffering or
omitting to take any action hereunder, such matter (unless other evidence in
respect thereof be herein specifically prescribed) may, in the absence of
negligence or willful misconduct on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers’ Certificate or Opinion of
Counsel or both delivered to the Trustee and such certificate, in the absence of
negligence or bad faith on the part of the Trustee, shall be full warrant to the
Trustee for any action taken, suffered or omitted to be taken by it under the
provisions of this Indenture upon the faith thereof.
Section 7.08. Disqualification; Conflicting Interests.
If
the Trustee has or shall acquire any “conflicting interest” within the meaning
of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall
in all respects comply with the provisions of Section 310(b) of the Trust
Indenture Act.
Section 7.09. Corporate Trustee Required; Eligibility.
There
shall at all times be a Trustee with respect to the Securities issued hereunder
which shall at all times be a corporation or national association organized and
doing business under the laws of the United States of America or any State or
Territory thereof or of the District of Columbia, or a corporation or other
Person permitted to act as trustee by the Commission, authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of at
least 50 million U.S. dollars ($50,000,000), and subject to supervision or
examination by Federal, State, Territorial, or District of Columbia authority.
If such corporation or national association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation or national association shall
be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. The Company may not, nor may
any Person directly or indirectly controlling, controlled by, or under common
control with the Company, serve as Trustee. In case at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section,
the Trustee shall resign immediately in the manner and with the effect specified
in Section 7.10.
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Section 7.10. Resignation and Removal; Appointment of Successor.
(a)
The Trustee or any successor hereafter appointed, may at any time resign with
respect to the Securities of one or more series by giving written notice thereof
to the Company and by transmitting notice of resignation electronically or by
mail, first class postage prepaid, to the Securityholders of such series, as
their names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee
with respect to Securities of such series by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall
be delivered to the resigning Trustee and one copy to the successor trustee. If
no successor trustee shall have been so appointed and have accepted appointment
within 30 days after the mailing of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor trustee with respect to Securities of such series, or any
Securityholder of that series who has been a bona fide holder of a Security or
Securities for at least six months may on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor
trustee. Such court may thereupon after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.
(b) In case at any time any one of the following shall occur:
(i)
the Trustee shall fail to comply with the provisions of Section 7.08 after
written request therefor by the Company or by any Securityholder who has been a
bona fide holder of a Security or Securities for at least six months;
(ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 7.09 and shall fail to resign after written request therefor by the
Company or by any such Securityholder; or
(iii) the Trustee shall become incapable of acting, or shall be adjudged a
bankrupt or insolvent, or commence a voluntary bankruptcy proceeding, or a
receiver of the Trustee or of its property shall be appointed or consented to,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation,
then, in any such case, the Company may remove the Trustee with
respect to all Securities and appoint a successor trustee by written instrument,
in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, unless the Trustee’s duty to resign is stayed as provided
herein, any Securityholder who has been a bona fide holder of a Security or
Securities for at least six months may, on behalf of that holder and all others
similarly situated, petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may
deem proper and prescribe, remove the Trustee and appoint a successor trustee.
33
(c)
The holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding may at any time remove the Trustee with respect
to such series by so notifying the Trustee and the Company in writing within 30
days of the effective date of such removal and may appoint a successor Trustee
for such series with the consent of the Company.
(d)
Any resignation or removal of the Trustee and appointment of a successor trustee
with respect to the Securities of a series pursuant to any of the provisions of
this Section shall become effective upon acceptance of appointment by the
successor trustee as provided in Section 7.11.
(e)
Any successor trustee appointed pursuant to this Section may be appointed with
respect to the Securities of one or more series or all of such series, and at
any time there shall be only one Trustee with respect to the Securities of any
particular series.
Section 7.11. Acceptance of Appointment by Successor.
(a)
In case of the appointment hereunder of a successor trustee with respect to all
Securities, every such successor trustee so appointed shall execute, acknowledge
and deliver to the Company and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee; but, on the 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.
(b)
In case of the appointment hereunder of a successor trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring
Trustee and each successor trustee with respect to the Securities of one or more
series shall execute and deliver an indenture supplemental hereto wherein each
successor trustee shall accept such appointment and which (i) shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor trustee all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to which
the appointment of such successor trustee relates, (ii) shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (iii) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust, that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee and that no Trustee shall be responsible for any act or failure to
act on the part of any other Trustee hereunder; and upon the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein, such retiring Trustee shall with respect to the Securities of that or
those series to which the appointment of such successor trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture, and each such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor trustee relates; but, on request of
the Company or any successor trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor trustee, to the extent contemplated by
such supplemental indenture, the property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor trustee relates.
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(c)
Upon request of any such successor trustee, the Company shall execute any and
all instruments for more fully and certainly vesting in and confirming to such
successor trustee all such rights, powers and trusts referred to in paragraph
(a) or (b) of this Section, as the case may be.
(d)
No successor trustee shall accept its appointment unless at the time of such
acceptance such successor trustee shall be qualified and eligible under this
Article.
(e)
Upon acceptance of appointment by a successor trustee as provided in this
Section, the Company shall transmit notice of the succession of such trustee
hereunder electronically or by mail, first class postage prepaid, to the
Securityholders, as their names and addresses appear upon the Security Register.
If the Company fails to transmit such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be transmitted at the expense of the Company.
(f)
The retiring Trustee shall have no responsibility or liability for any action or
inaction of a successor trustee.
Section
7.12. Merger, Conversion, Consolidation or Succession to Business. Any
corporation or national association into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation or national
association resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation or national association succeeding
to all or substantially all of the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder, provided that such
corporation shall be qualified under the provisions of Section 7.08 and eligible
under the provisions of Section 7.09, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.
Section 7.13. Preferential Collection of Claims Against the Company.
35
The
Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding
any creditor relationship described in Section 311(b) of the Trust Indenture
Act. A Trustee who has resigned or been removed shall be subject to Section
311(a) of the Trust Indenture Act to the extent included therein.
ARTICLE 8
CONCERNING THE SECURITYHOLDERS
Section 8.01. Evidence of Action by Securityholders.
Whenever
in this Indenture it is provided that the holders of a majority or specified
percentage in aggregate principal amount of the Securities of one or more series
may take any action (including the making of any demand or request, the giving
of any notice, consent or waiver or the taking of any other action), the fact
that at the time of taking any such action the holders of such majority or
specified percentage of such series have joined therein may be evidenced by any
instrument or any number of instruments of similar tenor executed by such
holders of Securities of the relevant series in person or by agent or proxy
appointed in writing.
If
the Company shall solicit from the Securityholders of one or more series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company may, at its option, as evidenced by an Officers’
Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, but the Company shall have
no obligation to do so. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of Outstanding Securities of the relevant series have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other action, and for that purpose the Outstanding Securities of the
relevant series shall be computed as of the record date; provided,
however, that no such authorization, agreement or consent by such
Securityholders on the record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than six
months after the record date.
Section 8.02. Proof of Execution by Securityholders.
Subject
to the provisions of Section 7.01, proof of the execution of any instrument by a
Securityholder (such proof will not require notarization) or his agent or proxy
and proof of the holding by any Person of any of the Securities shall be
sufficient if made in the following manner:
(a)
The fact and date of the execution by any such Person of any instrument may be
proved in any reasonable manner acceptable to the Trustee.
(b)
The ownership of Securities shall be proved by the Security Register of such
Securities or by a certificate of the Security Registrar thereof.
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(c)
The Trustee may require such additional proof of any matter referred to in this
Section as it shall deem necessary.
Section 8.03. Who May be Deemed Owners.
Prior
to the due presentment for registration of transfer of any Security, the
Company, the Trustee, any paying agent and any Security Registrar may deem and
treat the Person in whose name such Security shall be registered upon the books
of the Company as the absolute owner of such Security (whether or not such
Security shall be overdue and notwithstanding any notice of ownership or writing
thereon made by anyone other than the Security Registrar) for the purpose of
receiving payment of or on account of the principal of, premium, if any, and
(subject to Section 2.03) interest on such Security and for all other purposes;
and neither the Company nor the Trustee nor any paying agent nor any Security
Registrar shall be affected by any notice to the contrary.
Section 8.04. Certain Securities Owned by Company Disregarded.
In
determining whether the holders of the requisite aggregate principal amount of
Securities of one or more series have concurred in any direction, consent or
waiver under this Indenture, the Securities of such series that are owned by the
Company or any other obligor on the Securities of that series or by any Person
directly or indirectly controlling or controlled by or under common control with
the Company or any other obligor on the Securities of that series shall be
disregarded and deemed not to be Outstanding for the purpose of any such
determination, except that for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, consent or waiver, only
Securities of such series that a Responsible Officer of the Trustee actually
knows are so owned shall be so disregarded. The Securities so owned that have
been pledged in good faith may be regarded as Outstanding for the purposes of
this Section, if the pledgee shall establish to the satisfaction of the Trustee
the pledgee’s right so to act with respect to such Securities and that the
pledgee is not a Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company or any such other
obligor. In case of a dispute as to such right, any decision by the Trustee
taken upon the advice of counsel shall be full protection to the Trustee.
Section 8.05. Actions Binding on Future Securityholders.
At
any time prior to (but not after) the evidencing to the Trustee, as provided in
Section 8.01, of the taking of any action by the holders of the majority or
percentage in aggregate principal amount of the Securities of one or more series
specified in this Indenture in connection with such action, any holder of a
Security of any such series that is shown by the evidence to be included in the
Securities the holders of which have consented to such action may, by filing
written notice with the Trustee, and upon proof of holding as provided in
Section 8.02, revoke such action so far as concerns such Security. Except as
aforesaid any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders and owners
of such Security, and of any Security issued in exchange therefor, on
registration of transfer thereof or in place thereof, irrespective of whether or
not any notation in regard thereto is made upon such Security. Any action taken
by the holders of the majority or percentage in aggregate principal amount of
the Securities of one or more series specified in this Indenture in connection with such action shall be conclusively
binding upon the Company, the Trustee and the holders of all the Securities of
such series.
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ARTICLE 9
SUPPLEMENTAL INDENTURES
Section 9.01. Supplemental Indentures Without the Consent of
Securityholders.
In
addition to any supplemental indenture otherwise authorized by this Indenture,
the Company and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as then in effect), without the consent of
the Securityholders, for one or more of the following purposes:
(a) to cure any ambiguity, defect, or inconsistency herein, in the Securities of
any series;
(b) to comply with Article 10;
(c) to provide for uncertificated Securities in addition to or in place of
certificated Securities;
(d) to add to the covenants of the Company for the benefit of the holders of all
or any Series of Securities (and if such covenants are to be for the benefit of
less than all series of Securities, stating that such covenants are expressly
being included solely for the benefit of such series) or to surrender any right
or power herein conferred upon the Company;
(e) to add to, delete from, or revise the conditions, limitations, and
restrictions on the authorized amount, terms, or purposes of issue,
authentication, and delivery of Securities, as herein set forth;
(f) to make any change that does not adversely affect the rights of any
Securityholder in any material respect; or
(g) to provide for the issuance of and establish the form and terms and
conditions of the Securities of any series as provided in Section 2.01, to
establish the form of any certifications required to be established pursuant to
the terms of this Indenture or any series of Securities, or to add to the rights
of the holders of any series of Securities.
The
Trustee is hereby authorized to join with the Company in the execution of any
such supplemental indenture, and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into any such supplemental indenture that affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.
Any
supplemental indenture authorized by the provisions of this Section may be
executed by the Company and the Trustee without the consent of the holders of
any of the Securities at the time Outstanding, notwithstanding any of the
provisions of Section 9.02.
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Section 9.02. Supplemental Indentures With Consent of Securityholders.
With
the consent (evidenced as provided in Section 8.01) of the holders of not less
than a majority in aggregate principal amount of the Securities of all of the
series affected by such supplemental indenture or indentures at the time
Outstanding (all such series voting together as a single class), the Company,
when authorized by Board Resolutions, and the Trustee may from time to time and
at any time enter into an indenture or indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act as then in effect)
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner not covered by Section 9.01 the rights
of the holders of the Securities of such series under this Indenture;
provided, however, that no such supplemental indenture shall,
without the consent of the holders of each Security then Outstanding and
affected thereby, (i) extend the fixed maturity of any Securities of any series,
or reduce the principal amount thereof, or reduce the rate or extend the time of
payment of interest thereon, or reduce any premium payable upon the redemption
thereof, (ii) reduce the aforesaid percentage of Securities, the holders of
which are required to consent to any such supplemental indenture or (iii) make
any change to the subordination terms of any Security of any series that would
adversely affect the holders of the Securities of such series.
It
shall not be necessary for the consent of the Securityholders of the series
affected thereby under this Section to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.
Section 9.03. Effect of Supplemental Indentures.
Upon
the execution of any supplemental indenture pursuant to the provisions of this
Article or of Section 10.01, this Indenture shall, with respect to the relevant
series, be and be deemed to be modified and amended in accordance therewith and
the respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the holders of Securities
of the series affected thereby shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments,
and all the terms and conditions of any such supplemental indenture shall be and
be deemed to be part of the terms and conditions of this Indenture for any and
all purposes.
Section 9.04. Securities Affected by Supplemental Indentures.
Following
the execution, authentication and delivery of a supplemental indenture pursuant
to the provisions of this Article or of Section 10.01, the Securities of any
series affected thereby may bear a notation in form approved by the Company,
provided such form meets the requirements of any exchange upon which such
series may be listed, as to any matter provided for in such supplemental
indenture. If the Company shall determine that it is necessary or desirable, new
Securities of such series so modified as to conform, in the opinion of the Board
of Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Company, authenticated by the
Trustee and delivered in exchange for the Securities of that series then
Outstanding.
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Section 9.05. Execution of Supplemental Indentures.
Upon
the request of the Company, accompanied by its Board Resolutions authorizing the
execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of Securityholders required to consent
thereto as aforesaid, the Trustee shall join with the Company in the execution
of such supplemental indenture unless such supplemental indenture affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise, in
which case the Trustee may in its discretion but shall not be obligated to enter
into such supplemental indenture. The Trustee, subject to the provisions of
Section 7.01, shall be provided with an Officers’ Certificate and Opinion of
Counsel as conclusive evidence that any supplemental indenture executed pursuant
to this Article is authorized or permitted by, and conforms to, the terms of
this Article, that all conditions precedent to the execution of the supplemental
indenture have been met and, with respect to the Opinion of Counsel only, is
legally valid and binding against the Company and that it is proper for the
Trustee under the provisions of this Article to join in the execution thereof.
Promptly
after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of this Section, the Company shall prepare and send
to the Trustee for transmission to the Securityholders and the Trustee shall
transmit electronically or by mail, first class postage prepaid, a notice,
setting forth in general terms the substance of such supplemental indenture, to
the Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.
Section 9.06. Conformity with Trust Indenture Act.
Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.
ARTICLE 10
SUCCESSOR CORPORATION
Section 10.01. Company May Consolidate, Etc., Only on Certain Terms.
The
Company shall not consolidate with or merge into any other Person or convey,
transfer or lease all or substantially all of its properties and assets to any
Person, and the Company shall not permit any Person to consolidate with or merge
into the Company, unless:
(a) in case the Company shall consolidate with or merge into another Person or
convey, transfer or lease all or substantially all of its properties and assets
to any 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, all or substantially all of the properties and assets of the Company
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, the due and punctual
payment of the principal of and any premium and interest on all the Securities and the performance or
observance of every covenant of this Indenture on the part of the Company to be
performed or observed;
40
(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; and
(c) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer or lease and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture comply with this Article and
that all conditions precedent herein provided for relating to such transaction
have been complied with.
Section 10.02. Successor Substitute.
Upon
any consolidation of the Company with, or merger of the Company into, any other
Person or any conveyance, transfer or lease of all or substantially all of the
properties and assets of the Company in accordance with Section 10.01 above, 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 the 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 the
Indenture and the Securities.
ARTICLE 11
DEFEASANCE AND DISCHARGE
Section
11.01. Discharge of Company’s Obligations. Except as otherwise provided
in this Section 11.01, the Company may terminate its obligations under the
Securities of any series and this Indenture with respect to the Securities of
such series if:
(a) all Securities of such series previously authenticated and delivered (other
than destroyed, lost or wrongfully taken Securities of such series that have
been replaced or Securities of such series that are paid pursuant to Section
2.07 or Securities of such series for whose payment money or securities have
theretofore been held in trust and thereafter repaid to the Company, as provided
in Section 11.05) have been delivered to the Trustee for cancellation and the
Company has paid all sums payable by it hereunder; or
(b) (i) the Securities of such series are scheduled to mature within one
year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for giving the notice of redemption, (ii) the
Company irrevocably deposits in trust with the Trustee, as trust funds solely
for the benefit of the holders of such Securities, money or Government
Obligations or a combination thereof sufficient (unless such funds consist
solely of money), in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the
Trustee, without consideration of any reinvestment and after payment of all
Federal, state and local taxes or other charges and assessments in respect
thereof payable by the Trustee, to pay and discharge the principal of (and
premium, if any) and interest on the Securities of such series to maturity or
redemption, as the case may be, and to pay all other sums payable by the Company hereunder, and (iii) the
Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, in each case stating that all conditions precedent provided for herein
relating to the satisfaction and discharge of this Indenture with respect to the
Securities of such series have been complied with.
41
With
respect to the foregoing clause (a), only the Company’s obligations under
Sections 7.06 and 11.05 in respect of the Securities of such series shall
survive. With respect to the foregoing clause (b), only the Company’s
obligations in Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10 in respect
of the Securities of such series shall survive until such Securities of such
series are no longer outstanding. Thereafter, only the Company’s obligations in
Sections 7.06 and 11.05 in respect of the Securities of such series shall
survive. After any such irrevocable deposit, the Trustee shall acknowledge in
writing the discharge of the Company’s obligations under the Securities of such
series and this Indenture with respect to the Securities of such series except
for those surviving obligations specified above.
Section
11.02. Legal Defeasance. Except as provided below, the Company will be
deemed to have paid and will be discharged from any and all obligations in
respect of the Securities of any series and the provisions of this Indenture
(and the Trustee, at the expense of the Company, shall execute instruments in
form and substance satisfactory to the Company and the Trustee acknowledging the
same) if the following conditions shall have been satisfied:
(a) the Company has irrevocably deposited in trust with the Trustee as trust
funds solely for the benefit of the holders of the Securities of such series,
for payment of the principal of (and premium, if any) and interest on the
Securities of such series, money or Government Obligations or a combination
thereof sufficient (unless such funds consist solely of money), in the opinion
of a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee without consideration of
any reinvestment and after payment of all Federal, state and local taxes or
other charges and assessments in respect thereof payable by the Trustee, to pay
and discharge the principal of (and premium, if any) and interest on the
outstanding Securities of such series to maturity or earlier redemption
(irrevocably provided for under arrangements satisfactory to the Trustee), as
the case may be;
(b) such deposit will not result in a breach or violation of, or constitute a
default under, this Indenture or any other material agreement or instrument to
which the Company is a party or by which it is bound;
(c) no Default or Event of Default with respect to the Securities of such series
shall have occurred and be continuing on the date of such deposit;
(d) the Company has delivered to the Trustee (i) either (x) a ruling directed to
the Trustee received from the Internal Revenue Service to the effect that the
holders of the Securities of such series will not recognize income, gain or loss
for Federal income tax purposes as a result of the Company’s exercise of its
option under this Section 11.02 and will be subject to Federal income tax on the
same amount and in the same manner and at the same times as would have been the
case if such deposit and defeasance had not occurred or (y) an Opinion of
Counsel to the same effect as the ruling described in clause (x) above and based
upon a change in law and (ii) an Opinion of Counsel, subject to customary
assumptions and qualifications, to the effect that the holders of the Securities of such series have a valid security
interest in the trust funds subject to no prior liens under the UCC; and
42
(e) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, in each case stating that all conditions precedent provided for herein
relating to the defeasance contemplated by this Section 11.02 of the Securities
of such series have been complied with.
The
Company’s obligations in Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10
with respect to the Securities of such series shall survive until such
Securities are no longer outstanding. Thereafter, only the Company’s obligations
in Sections 7.06 and 11.05 shall survive.
Section
11.03. Covenant Defeasance. The Company may omit to comply with any term,
provision or condition set forth in Sections 4.05, 4.06 or 4.08 (or any other
specific covenant relating to the Securities of any series provided for in a
Board Resolution or supplemental indenture pursuant to Section 2.01 which may by
its terms be defeased pursuant to this Section 11.03), and such omission shall
be deemed not to be an Event of Default under clause (a)(iii) of Section 6.01,
with respect to the outstanding Securities of such series if:
(a) the Company has irrevocably deposited in trust with the Trustee as trust
funds solely for the benefit of the holders of Securities of such series, for
payment of the principal of (and premium, if any) and interest on the Securities
of such series, money or Government Obligations or a combination thereof in an
amount sufficient (unless such funds consist solely of money), in the opinion of
a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee without consideration of
any reinvestment and after payment of all Federal, state and local taxes or
other charges and assessments in respect thereof payable by the Trustee, to pay
and discharge the principal of (and premium, if any) and accrued interest on the
outstanding Securities of such series to maturity or earlier redemption
(irrevocably provided for under arrangements satisfactory to the Trustee), as
the case may be;
(b)
such deposit will not result in a breach or violation of, or constitute a
default under, this Indenture or any other material agreement or instrument to
which the Company is a party or by which it is bound;
(c) no Default or Event of Default with respect to the Securities of such series
shall have occurred and be continuing on the date of such deposit;
(d) the Company has delivered to the Trustee an Opinion of Counsel, subject to
customary assumptions and qualifications, to the effect that (i) the holders of
the Securities of such series have a valid security interest in the trust funds
subject to no prior liens under the UCC and (ii) such holders will not recognize
income, gain or loss for Federal income tax purposes as a result of such deposit
and covenant defeasance and will be subject to Federal income tax on the same
amount and in the same manner and at the same times as would have been the case
if such deposit and defeasance had not occurred; and
(e) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, in each case stating that all conditions precedent provided
for herein relating to the covenant defeasance contemplated by this Section 11.03 of the
Securities of such series have been complied with.
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Section
11.04. Application of Trust Money. Subject to Section 11.05, the Trustee
or paying agent shall hold in trust money or Government Obligations deposited
with it pursuant to Section 11.01, 11.02 or 11.03, as the case may be, in
respect of the Securities of any series and shall apply the deposited money and
the proceeds from deposited Government Obligations in accordance with the
Securities of such series and this Indenture to the payment of principal of (and
premium, if any) and interest on the Securities of such series; but such money
need not be segregated from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the Government Obligations deposited
pursuant to Section 11.01, 11.02 or 11.03, as the case may be, or the principal
and interest received in respect thereof, other than any such tax, fee or other
charge that by law is for the account of the Securityholders.
Section
11.05. Repayment to Company. Subject to Sections 7.06, 11.01, 11.02 and
11.03, the Trustee and the paying agent shall promptly pay to the Company upon
request set forth in an Officers’ Certificate any money held by them at any time
and not required to make payments hereunder and thereupon shall be relieved from
all liability with respect to such money. Subject to applicable escheat or
abandoned property laws, the Trustee and the paying agent shall pay to the
Company upon written request any money held by them and required to make
payments under this Indenture that remains unclaimed for two years;
provided that the Trustee or such paying agent before being required to
make any such payment to the Company shall cause to be published at the expense
of the Company once in an Authorized Newspaper or mail to each Securityholder
entitled to such money at such Securityholder’s address (as set forth in the
register) notice that such money remains unclaimed and that after a date
specified therein (which shall be at least 30 days from the date of such
publication or mailing) any unclaimed balance of such money then remaining will
be repaid to the Company. After payment to the Company, Securityholders entitled
to such money must look to the Company for payment as unsecured general
creditors unless an abandoned property law designates another Person, and all
liability of the Trustee and such paying agent with respect to such money shall
cease.
ARTICLE 12
IMMUNITY OF INCORPORATORS SHAREHOLDERS, OFFICERS
AND DIRECTORS
Section 12.01. No Recourse.
No
recourse under or upon any obligation, covenant or agreement of this Indenture,
or of any Security, or for any claim based thereon or otherwise in respect
thereof, shall be had against any incorporator, shareholder, officer or
director, past, present or future as such, of the Company or of any predecessor
or successor corporation, either directly or through the Company or any such
predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture and the obligations
issued hereunder are solely corporate obligations, and that no such personal
liability whatsoever shall attach to, or is or shall be incurred by, the
incorporators, shareholders, officers or directors as such, of the Company or of
any predecessor or successor corporation, or any of them, because of the
creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of
the Securities or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by
constitution or statute, of, and any and all such rights and claims against,
every such incorporator, shareholder, officer or director as such, because of
the creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of
the Securities or implied therefrom, are hereby expressly waived and released as
a condition of, and as a consideration for, the execution of this Indenture and
the issuance of such Securities.
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ARTICLE 13
MISCELLANEOUS PROVISIONS
Section 13.01. Effect on Successors and Assigns.
All
the covenants, stipulations, promises and agreements in this Indenture contained
by or on behalf of the Company shall bind its successors and assigns, whether so
expressed or not.
Section 13.02. Actions by Successor.
Any
act or proceeding which by any provision of this Indenture is 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
corresponding board, committee or officer of any corporation that shall at the
time be the lawful successor of the Company.
Section 13.03. Surrender of Company Powers.
The
Company, by an instrument in writing executed by 2/3 (two-thirds) of its Board
of Directors and delivered to the Trustee, may surrender any of the powers or
rights, but in no event any of its duties or obligations, reserved to the
Company under this Indenture, including any supplemental indenture hereto, and
thereupon such power or right so surrendered shall terminate both as to the
Company and as to any successor corporation.
Section 13.04. Notices.
Except
as otherwise expressly provided herein any notice or demand that by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the holders of Securities to or on the Company may be given or
served by being deposited first class postage prepaid in a post-office letterbox
addressed (until another address is filed in writing by the Company with the
Trustee), as follows: Net 1 UEPS Technologies, Inc., President Place,
4th Floor, Cnr. Jan Smuts Avenue and Bolton Road, Rosebank,
Johannesburg, South Africa. Any notice, election, request or demand by the
Company or any Securityholder to or upon the Trustee shall be deemed to have
been sufficiently given or made, for all purposes, if given or made in writing
at the Corporate Trust Office.
Section 13.05. Governing Law.
45
This
Indenture and each Security shall be deemed to be a contract made under the
internal laws of the State of New York, and for all purposes shall be construed
in accordance with the laws of said State.
Section
13.06. Compliance Certificates and Opinions.
(a)
Upon any application or demand by the Company to the Trustee to take any action
under any of the provisions of this Indenture, the Company shall furnish to the
Trustee an Officers’ Certificate stating that all conditions precedent 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.
(b)
Each certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant in this
Indenture shall include (i) a statement that the Person making such certificate
or opinion has read such covenant or condition; (ii) a brief statement as to the
nature and scope of the examination or investigation upon which the statements
or opinions contained in such certificate or opinion are based; (iii) a
statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (iv) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.
Section
13.07. Payments on Business Days.
Except
as provided pursuant to Section 2.01 pursuant to a Board Resolution, and as set
forth in an Officers’ Certificate or established in one or more indentures
supplemental to this Indenture, in any case where the date of maturity of
interest or principal of any Security or the date of redemption of any Security
shall not be a Business Day, then payment of interest or principal (and premium,
if any) may be made on the next succeeding Business Day with the same force and
effect as if made on the nominal date of maturity or redemption, and no interest
shall accrue for the period after such nominal date.
Section
13.08. Conflict with Trust Indenture Act.
If
and to the extent that any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act, such imposed duties shall control.
Section
13.09. 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
13.10. Separability.
In
case any one or more of the provisions contained in this Indenture or in the
Securities of any series shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Indenture or of such Securities, but this Indenture and such
Securities shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.
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Section 13.11. Assignment.
The
Company will have the right at all times to assign any of its rights or
obligations under this Indenture to a direct or indirect wholly-owned Subsidiary
of the Company, provided that, in the event of any such assignment, the
Company will remain liable for all such obligations. Subject to the foregoing,
the Indenture is binding upon and inures to the benefit of the parties thereto
and their respective successors and assigns. This Indenture may not otherwise be
assigned by the parties hereto.
Section 13.12. Waiver of Jury Trial.
EACH
OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE
TRANSACTION CONTEMPLATED HEREBY.
Section 13.13. Force Majeure.
In
no event shall the Trustee be responsible or liable for any failure or delay in
the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without
limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking
industry to resume performance as soon as practicable under the circumstances.
Section 13.14. USA Patriot Act.
The
parties hereto acknowledge that in accordance with Section 326 of the USA
PATRIOT Act, the Trustee, like all financial institutions and in order to help
fight the funding of terrorism and money laundering, is required to obtain,
verify and record information that identifies each person or legal entity that
establishes a relationship or opens an account with the Trustee. The parties to
this Indenture agree that they will provide the Trustee with such information as
it may request in order for the Trustee to satisfy the requirements of the USA
PATRIOT Act.
ARTICLE 14
SUBORDINATION OF SECURITIES
Section 14.01. Subordination
Terms.
47
The
payment by the Company of the principal of, premium, if any, and interest on any
series of Securities issued hereunder shall be subordinated to the extent set
forth in an indenture supplemental hereto relating to such Securities.
Section 14.02. Trustee Not Fiduciary for Holders of Senior Indebtedness.
The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness and shall not be liable to any such holders if the Trustee shall in
good faith mistakenly pay over or distribute to Securityholders or to the
Company or to any other person cash, property or securities to which any holders
of Senior Indebtedness shall be entitled by virtue of this Article or otherwise.
With respect to the holders of Senior Indebtedness, the Trustee undertakes to
perform or to observe only such of its covenants or obligations as are
specifically set forth in this Article and no implied covenants or obligations
with respect to holders of Senior Indebtedness shall be read into this Indenture
against the Trustee.
Nothing in this Article shall apply to claims of,
or payments to, the Trustee under or pursuant to Section 7.06.
48
IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed as of the day and year first above written.
NET 1 UEPS TECHNOLOGIES, INC.
By:
____________________________________
Name:
Title:
WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Trustee
By:
____________________________________
Name:
Title:
49
Exhibit 5.1
OPINION OF DLA PIPER LLP (US)
DLA Piper LLP (US)
1251 Avenue of the Americas
New
York, New York 10020-1104
T 212.335.4500
F
212.335.4501
W www.dlapiper.com
November 17, 2015
Net 1 UEPS Technologies, Inc.
President Place,
4th Floor
Cnr. Jan Smuts Avenue and Bolton Road
Rosebank,
Johannesburg, South Africa
Re:
Net 1 UEPS Technologies, Inc.-- Registration Statement on Form S-3
Ladies and Gentlemen:
We have acted as counsel to Net 1 UEPS Technologies Inc., a
Florida corporation (the “Company”), in connection with the preparation and
filing of a registration statement on Form S-3 (as amended, the “Registration
Statement”) by the Company with the Securities and Exchange Commission (the
“Commission”) on November 12, 2015, to which this opinion has been filed as an
exhibit. The Registration Statement relates to the issuance and sale from time
to time on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, as amended (the “Securities Act”), up to a total amount
of $500,000,000 by the Company of the Company’s:
| |
(i) |
common stock, $0.001 par value per share (the “Common
Stock”); |
| |
|
|
| |
(ii) |
preferred stock, $0.001 par value per share (the
“Preferred Stock”); |
| |
|
|
| |
(iii) |
senior debt securities (the “Senior Debt
Securities”); |
| |
|
|
| |
(iv) |
subordinated debt securities (the “Subordinated Debt
Securities” and, together with the Senior Debt Securities, the “Debt
Securities”); |
| |
|
|
| |
(v) |
warrants representing rights to purchase Common Stock,
Preferred Stock or Debt Securities (the “Warrants”); and |
| |
|
|
| |
(vi) |
units representing an interest in any two or more of the
following: Debt Securities, shares of Common Stock, shares of Preferred
Stock or Warrants which may or may not be separable from one another (the
“Units”); |
(collectively, the Common Stock, the Preferred Stock, the Debt
Securities, the Warrants, and the Units are referred to herein as the
“Securities”).
Net 1 UEPS Technologies, Inc.
November 17, 2015
Page 2
In providing this opinion, we have relied as to certain matters
on information obtained from public officials and officers of the Company. We
have been advised by the Company and, for purposes of this opinion, we have
assumed, that:
| |
1. |
The rights, preferences, privileges and restrictions,
including voting rights, dividend rights, conversion rights, redemption
privileges and liquidation privileges of each series of Preferred Stock
will be set forth in a certificate of designation to be approved by the
Company’s board of directors, or in an amendment to the Company’s Amended
and Restated Articles of Incorporation (the “Articles of Incorporation”),
to be approved by the Company’s board of directors and shareholders, and
that one or both of these documents will be filed either as an exhibit to
an amendment to the Registration Statement to be filed after the date of
this opinion or as an exhibit to a Current Report on Form 8-K to be filed
after the Registration Statement has become effective; |
| |
|
|
| |
2. |
The Senior Debt Securities will be issued pursuant to an
indenture between the Company and Wells Fargo Bank, National Association
(the “Trustee”), a form of which indenture has been filed as an exhibit to
the Registration Statement and will have been qualified under the Trust
Indenture Act of 1939, as amended (the “Trust Indenture Act”); |
| |
|
|
| |
3. |
The Subordinated Debt Securities will be issued pursuant
to an indenture between the Company and the Trustee, a form of which
indenture has been filed as an exhibit to the Registration Statement and
will have been qualified under the Trust Indenture Act; |
| |
|
|
| |
4. |
The particular terms of any Debt Securities to be issued
will be set forth in a supplement to the prospectus forming a part of the
Registration Statement; |
| |
|
|
| |
5. |
The Warrants will be issued pursuant to a warrant
agreement to be entered into between the Company and a financial
institution as warrant agent (the “Warrant Agreement”). The Warrant
Agreement will be filed either as an exhibit to an amendment to the
Registration Statement to be filed after the date of this opinion or as an
exhibit to a Current Report on Form 8-K to be filed after the Registration
Statement has become effective, and the particular terms of any series of
the Warrants to be issued will be set forth in a supplement to the
prospectus forming a part of the Registration Statement; |
| |
|
|
| |
6. |
The Units will be issued pursuant to a unit agreement to
be entered into between the Company and a financial institution acting as
unit agent (the “Unit Agreement”). The Unit Agreement will be filed either
as an exhibit to an amendment to the Registration Statement to be filed
after the date of this opinion or as an exhibit to a Current Report on
Form 8-K to be filed after the Registration Statement has become
effective, and the particular terms of any series of the Units to be
issued will be set forth in a supplement to the prospectus forming a part
of the Registration Statement; and |
| |
|
|
| |
7. |
The number of shares of Common Stock and Preferred Stock
to be offered and sold subsequent to the date hereof under the
Registration Statement, together with the number of shares of Common Stock
and Preferred Stock of the same class issuable
upon exercise, conversion or exchange of
any Securities will not, in the aggregate, exceed the number of shares of each
such class of Common Stock or Preferred Stock authorized in the Articles of
Incorporation. |
Net 1 UEPS Technologies, Inc.
November 17, 2015
Page 3
In rendering the opinions set forth below, we have further
assumed that (i) all information contained in all documents reviewed by us is
true and correct; (ii) all signatures on all documents examined by us are
genuine; (iii) all documents submitted to us as originals are authentic and all
documents submitted to us as copies conform to the originals of those documents;
(iv) each natural person signing any document reviewed by us had the legal
capacity to do so; (v) the Registration Statement, and any further amendments
thereto (including post-effective amendments) will have become effective and
will comply with all applicable laws; (vi) a prospectus supplement will have
been prepared and filed with the Commission describing the Securities offered
thereby; (vii) all Securities will be issued and sold in compliance with
applicable federal and state securities laws and in the manner stated in the
Registration Statement and the applicable prospectus supplement; (viii) a
definitive purchase, underwriting or similar agreement with respect to any
Securities offered will have been duly authorized and validly executed and
delivered by the Company and the other parties thereto; (ix) the Company will
have reserved from its authorized but unissued and unreserved shares of stock a
number sufficient to issue all shares of Common Stock and Preferred Stock; (x)
the certificates representing the Securities will be duly executed and
delivered; and (xi) if the holders of the Debt Securities or shares of Preferred
Stock are granted rights to inspect corporate books and records and to vote in
the election of directors or any matters on which shareholders of the Company
may vote, such rights will be set forth in the Articles of Incorporation or the
Articles of Incorporation grants to the Company’s board of directors the power
to confer such voting or inspection rights and the Company’s board of directors
will have conferred such rights.
We have examined the Registration Statement, including the
exhibits thereto, and such other documents, corporate records, and instruments
and have examined such laws and regulations as we have deemed necessary for
purposes of rendering the opinions set forth herein. Based upon such examination
and subject to the further assumptions, qualifications and limitations contained
herein, we are of the following opinion:
| |
1. |
The Common Stock will be validly issued, fully paid and
nonassessable, assuming that (i) the Company’s board of directors or an
authorized committee thereof will have specifically authorized the
issuance of such Common Stock in exchange for consideration that the board
of directors or such committee determines as adequate and in excess of the
par value of such Common Stock (“Common Stock Authorizing Resolutions”),
and (ii) the Company has received the consideration provided for in the
applicable Common Stock Authorizing Resolutions. |
| |
|
|
| |
2. |
The Preferred Stock will be validly issued, fully paid
and nonassessable, assuming that (i) the Company’s board of directors or
an authorized committee thereof will have specifically authorized the
issuance of such Preferred Stock in exchange for consideration that the
board of directors or such committee determines as adequate and in excess
of the par value of such Preferred Stock (“Preferred Stock
Authorizing Resolutions”), (ii) the rights, preferences, privileges
and restrictions of the Preferred Stock have been established in
conformity with applicable law, (iii) an appropriate certificate of
designation approved by the Company’s board of directors, or an amendment
to the Company’s Articles of Incorporation approved by the Company’s board
of directors and shareholders, has been filed with the State of Florida,
(iv) the terms of the offer, issuance and sale of shares of such class or
series of Preferred Stock have been duly established in conformity with
the Company’s Articles of Incorporation and Bylaws (the “Bylaws”), and do
not violate any applicable law or result in a default under or breach of
any agreement or instrument binding upon the Company and comply with any
requirement or restriction imposed by any court or governmental body
having jurisdiction over the Company, and (v) the Company has received the
consideration provided for in the applicable Preferred Stock Authorizing
Resolutions. |
Net 1 UEPS Technologies, Inc.
November 17, 2015
Page 4
| |
3. |
The Debt Securities will constitute valid and legally
binding obligations of the Company, assuming that (i) the Company’s board
of directors or an authorized committee thereof will have specifically
authorized the issuance of such Debt Securities in exchange for
consideration that the board of directors or such committee determines as
adequate (“Debt Securities Authorizing Resolutions”), (ii) the applicable
indenture conforms with applicable law and is enforceable in accordance
with its terms, (iii) the terms of the Debt Securities and of their issue
and sale have been duly established in conformity with the applicable
indenture, the Company’s Articles of Incorporation and Debt Securities
Authorizing Resolutions and do not violate any applicable law or result in
a default under or breach of any agreement or instrument binding upon the
Company and comply with any requirement or restriction imposed by any
court or governmental body having jurisdiction over the Company, (iv) such
Debt Securities have been duly executed and authenticated in accordance
with the applicable indenture and offered, issued and sold as contemplated
in the Registration Statement, and (v) the Company has received the
consideration provided for in the applicable Debt Securities Authorizing
Resolutions. |
| |
|
|
| |
4. |
The Warrants will constitute valid and legally binding
obligations of the Company, assuming that (i) the Company’s board of
directors or an authorized committee thereof will have specifically
authorized the issuance of such Warrants in exchange for consideration
that the board of directors or such committee determines as adequate
(“Warrant Authorizing Resolutions”), which include the terms upon which
the Warrants are to be issued, their form and content and the
consideration for which shares are to be issued upon exercise of the
Warrants, (ii) the Warrant Agreement relating to the Warrants has been
duly authorized, executed and delivered and is enforceable in accordance
with its terms, (iii) the terms of the offer, issuance and sale of such
Warrants have been duly established in conformity with the Warrant
Agreement, (iv) the Warrant Agreement and the offer, issuance and sale of
the Warrants do not violate any applicable law or result in a default
under or breach of any agreement or instrument binding upon the Company
and comply with any requirement or restriction imposed by any court or
governmental body having jurisdiction over the Company, (v) such Warrants
have been duly executed and countersigned in accordance with the Warrant
Agreement and offered, issued and sold as contemplated in the Registration
Statement, the applicable Warrant Authorizing Resolutions and the Warrant Agreement, and (vi) the
Company has received the consideration provided for in the applicable
Warrant Authorizing Resolutions. |
Net 1 UEPS Technologies, Inc.
November 17, 2015
Page 5
| |
5. |
The Units will constitute valid and legally binding
obligations of the Company, assuming that (i) the Company’s board of
directors or an authorized committee thereof will have specifically
authorized the issuance of such Units in exchange for consideration that
the board of directors or such committee determines as adequate (“Unit
Authorizing Resolutions”), which include the terms upon which the Units
are to be issued, their form and content and the consideration for which
the Units are to be issued, (ii) the Unit Agreement relating to the Units
has been duly authorized, executed and delivered and is enforceable in
accordance with its terms, (iii) the terms of the offer, issuance and sale
of such Units have been duly established in conformity with the Unit
Agreement, (iv) the Unit Agreement and the offer, issuance and sale of the
Units do not violate any applicable law or result in a default under or
breach of any agreement or instrument binding upon the Company and comply
with any requirement or restriction imposed by any court or governmental
body having jurisdiction over the Company, (v) such Units have been duly
executed and countersigned in accordance with the Unit Agreement and
offered, issued and sold as contemplated in the Registration Statement,
the applicable Unit Authorizing Resolutions and the Unit Agreement, and
(vi) the Company has received the consideration provided for in the
applicable Unit Authorizing Resolutions. |
The foregoing opinions are qualified to the extent that the
enforceability of any document, instrument or the Securities may be limited by
or subject to bankruptcy, insolvency, fraudulent transfer or conveyance,
reorganization, moratorium or other similar laws relating to or affecting
creditors’ rights generally, and general equitable or public policy
principles.
We express no opinions concerning (i) the validity or
enforceability of any provisions contained in indentures that purport to waive
or not give effect to rights to notices, defenses, subrogation or other rights
or benefits that cannot be effectively waived under applicable law; or (ii) the
validity or enforceability of any provisions contained in Warrant Agreements or
Unit Agreements that purport to waive or not give effect to rights to notices,
defenses, subrogation or other rights or benefits that cannot be effectively
waived under applicable law.
We hereby consent to the filing of this opinion as Exhibit 5.1
to the Registration Statement and the reference to DLA Piper LLP (US) under the
caption “Legal Matters” in the prospectus included in the Registration
Statement. In giving this consent, we do not admit that we are within the
category of persons whose consent is required under Section 7 of the Securities
Act or the rules and regulations of the Commission promulgated thereunder.
Net 1 UEPS Technologies, Inc.
November 17, 2015
Page 6
Our opinion is expressly limited to the matters set forth
above, and we render no opinion, whether by implication or otherwise, as to any
other matters relating to the Company, the Securities or the Registration
Statement.
Very truly yours,
/s/ DLA Piper LLP (US)
Exhibit 12.1
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED
CHARGES
| |
|
Three |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
30, |
|
|
|
Year ended June 30, |
|
| |
|
2015 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2013 |
|
|
|
2012 |
|
|
|
2011 |
|
| |
|
|
|
|
|
(in thousands, except for ratio of earnings
to fixed charges) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expensed
and capitalized |
$ |
974 |
|
|
$ |
4,456 |
|
|
$ |
7,473 |
|
|
$ |
7,966 |
|
|
$ |
9,345 |
|
|
$ |
8,672 |
|
| Amortized premiums, discounts and capitalized expenses
related to indebtedness |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
| Estimate of the interest within rental expense |
|
170 |
|
|
|
650 |
|
|
|
709 |
|
|
|
1,430 |
|
|
|
678 |
|
|
|
628 |
|
| Preference security
dividend requirements of consolidated subsidiaries |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed charges |
|
1,144 |
|
|
|
5,106 |
|
|
|
8,182 |
|
|
|
9,396 |
|
|
|
10,023 |
|
|
|
9,300 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Add |
|
35,950 |
|
|
|
145,524 |
|
|
|
117,324 |
|
|
|
36,675 |
|
|
|
70,404 |
|
|
|
45,710 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pretax income from continuing operations before adjustment
for non-controlling interests in consolidated subsidiaries or income or
loss from equity investees |
|
34,516 |
|
|
|
140,418 |
|
|
|
109,142 |
|
|
|
27,279 |
|
|
|
60,381 |
|
|
|
36,410 |
|
| Fixed charges |
|
1,144 |
|
|
|
5,106 |
|
|
|
8,182 |
|
|
|
9,396 |
|
|
|
10,023 |
|
|
|
9,300 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of
capitalized interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Distributed income of equity investees |
|
290 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Your share of
pre-tax losses of equity investees for which charges arising from
guarantees are included in fixed charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less |
|
120 |
|
|
|
328 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
| Interest capitalized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
| Preference security
dividend requirements of consolidated subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
| Non-controlling interest in pre-tax income of subsidiaries
that have not incurred fixed charges |
|
120 |
|
|
|
328 |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings |
|
35,830 |
|
|
$ |
145,196 |
|
|
$ |
117,324 |
|
|
$ |
36,675 |
|
|
$ |
70,404 |
|
|
$ |
45,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratio of earnings to fixed charges |
|
31.32 |
|
|
|
28.44 |
|
|
|
14.34 |
|
|
|
3.90 |
|
|
|
7.02 |
|
|
|
4.92 |
|
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in this
Registration Statement on Form S-3 of our reports dated August 20, 2015,
relating to the financial statements of Net 1 UEPS Technologies, Inc. and its
subsidiaries (collectively, the “Company”), and the effectiveness of the
Company’s internal control over financial reporting, appearing in the Annual
Report on Form 10-K of Net 1 UEPS Technologies, Inc. for the year ended June 30,
2015, and to the reference to us under the heading “Experts” in the Prospectus,
which is part of this Registration Statement.
/s/ Deloitte & Touche (South Africa)
Johannesburg,
South Africa
Registered Auditors
November 17, 2015
National Executive: *LL Bam Chief Executive *AE Swiegers Chief
Operating Officer *GM Pinnock Audit
*N Sing Risk Advisory *NB Kader Tax TP
Pillay Consulting S Gwala BPaaS
*K Black Clients & Industries *JK
Mazzocco Talent & Transformation *MJ Jarvis Finance
*M Jordan Strategy
*MJ Comber Reputation & Risk *TJ Brown Chairman of the Board
| A full list of partners and directors is available on
request |
*Partner and Registered Auditor
|
Exhibit 25.1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM T-1
STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF
1939 OF A
CORPORATION DESIGNATED TO ACT AS TRUSTEE
_____________________________
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A TRUSTEE
PURSUANT TO SECTION 305(b) (2)
WELLS FARGO BANK, NATIONAL
ASSOCIATION
(Exact name of trustee as specified in its
charter)
| A National Banking Association |
94-1347393 |
| (Jurisdiction of incorporation or |
(I.R.S. Employer |
| organization if not a U.S. national |
Identification No.) |
| bank) |
|
| |
|
| 101 North Phillips Avenue |
|
| Sioux Falls, South Dakota |
57104 |
| (Address of principal executive offices) |
(Zip code) |
Wells Fargo & Company
Law Department, Trust
Section
MAC N9305-175
Sixth Street and Marquette Avenue,
17th Floor
Minneapolis, Minnesota 55479
(612) 667-4608
(Name, address and telephone
number of agent for service)
_____________________________
NET 1 UEPS TECHNOLOGIES, INC.
(Exact name of obligor as specified in its charter)
| Florida |
98-0171860 |
| (State or other jurisdiction of |
(I.R.S. Employer |
| incorporation or organization) |
Identification No.) |
| |
|
| President Place, 4th Floor
|
|
| Cnr. Jan Smuts Avenue and Bolton Road |
|
| Rosebank, Johannesburg, South Africa |
N/A |
| (Address of principal executive offices) |
(Zip code) |
_____________________________
Senior Debt Securities
(Title of the
indenture securities)
Item 1. General Information. Furnish
the following information as to the trustee:
| |
(a) |
Name and address of each examining or supervising
authority to which it is subject. |
| |
|
|
| |
|
Comptroller of the Currency
Treasury Department
Washington, D.C. |
| |
|
|
| |
|
Federal Deposit Insurance Corporation
Washington,
D.C. |
| |
|
|
| |
|
Federal Reserve Bank of San Francisco
San Francisco,
California 94120 |
| |
|
|
| |
(b) |
Whether it is authorized to exercise corporate trust
powers. |
| |
|
|
| |
|
The trustee is authorized to exercise corporate trust
powers. |
Item 2. Affiliations with Obligor. If the obligor is an
affiliate of the trustee, describe each such affiliation.
None with respect to the trustee.
No responses are included for Items 3-14 of this Form T-1
because the obligor is not in default as provided under Item 13.
Item 15. Foreign
Trustee. Not
applicable.
Item 16. List of
Exhibits. List
below all exhibits filed as a part of this Statement of Eligibility.
| |
Exhibit 1. |
A copy of the Articles of Association of the trustee now
in effect.* |
| |
|
|
| |
Exhibit 2. |
A copy of the Comptroller of the Currency Certificate of
Corporate Existence for Wells Fargo Bank, National Association, dated
January 14, 2015.* |
| |
|
|
| |
Exhibit 3. |
A copy of the Comptroller of the Currency Certification
of Fiduciary Powers for Wells Fargo Bank, National Association, dated
January 6, 2014.* |
| |
|
|
| |
Exhibit 4. |
Copy of By-laws of the trustee as now in effect.*
|
| |
|
|
| |
Exhibit 5. |
Not applicable. |
| |
|
|
| |
Exhibit 6. |
The consent of the trustee required by Section 321(b) of
the Act. |
| |
|
|
| |
Exhibit 7. |
A copy of the latest report of condition of the trustee
published pursuant to law or the requirements of its supervising or
examining authority. |
| |
|
|
| |
Exhibit 8. |
Not applicable. |
| |
|
|
| |
Exhibit 9. |
Not applicable. |
* Incorporated by reference to the exhibit of the same number to the trustee’s Form T-1 filed as exhibit to the Filing 305B2 dated March 13, 2015 of file number 333-190926.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of
1939, as amended, the trustee, Wells Fargo Bank, National Association, a
national banking association organized and existing under the laws of the United
States of America, has duly caused this statement of eligibility to be signed on
its behalf by the undersigned, thereunto duly authorized, all in the City of New
York and State of New York on the 12th day of November, 2015.
WELLS FARGO BANK, NATIONAL ASSOCIATION
/s/ Martin G.
Reed
Martin G. Reed
Vice President
EXHIBIT 6
November 12, 2015
Securities and Exchange Commission
Washington, D.C. 20549
Gentlemen:
In accordance with Section 321(b) of the Trust Indenture Act of
1939, as amended, the undersigned hereby consents that reports of examination of
the undersigned made by Federal, State, Territorial, or District authorities
authorized to make such examination may be furnished by such authorities to the
Securities and Exchange Commission upon its request therefor.
Very truly yours,
WELLS FARGO BANK, NATIONAL ASSOCIATION
/s/ Martin G.
Reed
Martin
G. Reed
Vice President
EXHIBIT 7
Consolidated Report of Condition of
Wells Fargo Bank National Association
of 101 North Phillips
Avenue, Sioux Falls, SD 57104
And Foreign and Domestic Subsidiaries,
at
the close of business June 30, 2015, filed in accordance with 12 U.S.C. §161 for
National Banks.
|
|
|
|
|
Dollar Amounts |
|
| |
|
|
|
|
In Millions |
|
| ASSETS |
|
|
|
|
|
|
| Cash and balances due from depository
institutions: |
|
|
|
|
|
|
|
Noninterest-bearing balances and currency and coin |
|
|
|
$ |
17,464 |
|
|
Interest-bearing balances |
|
|
|
|
189,787 |
|
| Securities: |
|
|
|
|
|
|
|
Held-to-maturity securities |
|
|
|
|
80,102 |
|
|
Available-for-sale securities |
|
|
|
|
233,717 |
|
| Federal funds sold and securities purchased
under agreements to resell: |
|
|
|
|
|
|
|
Federal funds sold in domestic offices |
|
|
|
|
1,864 |
|
|
Securities purchased under agreements to resell
|
|
|
|
|
18,746 |
|
| Loans and lease financing receivables: |
|
|
|
|
|
|
|
Loans and leases held for sale |
|
|
|
|
20,241 |
|
|
Loans and leases, net of unearned income |
|
848,562 |
|
|
|
|
|
LESS: Allowance for loan and lease losses |
|
10,493 |
|
|
|
|
|
Loans and leases, net of unearned income and allowance |
|
|
|
|
838,069 |
|
| Trading Assets |
|
|
|
|
39,221 |
|
| Premises and fixed assets (including capitalized leases)
|
|
|
|
|
7,527 |
|
| Other real estate owned |
|
|
|
|
1,849 |
|
| Investments in unconsolidated subsidiaries and associated
companies |
|
|
|
|
855 |
|
| Direct and indirect investments in real
estate ventures |
|
|
|
|
0 |
|
| Intangible assets |
|
|
|
|
|
|
|
Goodwill |
|
|
|
|
21,627 |
|
|
Other intangible assets |
|
|
|
|
17,894 |
|
| |
|
|
|
|
|
|
| Other assets |
|
|
|
|
64,908 |
|
| Total assets |
|
|
|
$ |
1,553,871 |
|
| |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
In domestic offices |
|
|
|
$ |
1,086,292 |
|
|
Noninterest-bearing |
|
343,725 |
|
|
|
|
|
Interest-bearing |
|
742,567 |
|
|
|
|
|
In foreign offices, Edge and Agreement subsidiaries, and IBFs
|
|
|
|
|
140,792 |
|
|
Noninterest-bearing |
|
669 |
|
|
|
|
|
Interest-bearing |
|
140,123 |
|
|
|
|
| Federal funds purchased and securities sold
under agreements to repurchase: |
|
|
|
|
|
|
|
Federal funds purchased in domestic offices |
|
|
|
|
594 |
|
|
Securities sold under agreements to repurchase
|
|
|
|
|
19,806 |
|
| |
|
Dollar Amounts |
|
| |
|
In Millions |
|
| |
|
|
|
| |
|
|
|
| Trading liabilities |
|
18,515 |
|
| Other borrowed money |
|
|
|
|
(includes mortgage indebtedness and obligations
under capitalized leases) |
|
89,743 |
|
| Subordinated notes and debentures |
|
16,760 |
|
| |
|
|
|
| Other liabilities |
|
33,801 |
|
| Total liabilities |
$ |
1,406,303 |
|
| |
|
|
|
| |
|
|
|
| EQUITY CAPITAL |
|
|
|
| Perpetual preferred stock and related
surplus |
|
0 |
|
| Common stock |
|
519 |
|
| Surplus (exclude all surplus related to
preferred stock) |
|
106,692 |
|
| Retained earnings |
|
36,940 |
|
| Accumulated other comprehensive income |
|
2,986 |
|
| |
|
|
|
| Other equity capital components |
|
0 |
|
| Total bank equity capital |
|
147,137 |
|
| Noncontrolling (minority) interests in
consolidated subsidiaries |
|
431 |
|
| |
|
|
|
| |
|
|
|
| Total equity capital |
|
147,568 |
|
| Total liabilities, and equity capital |
$ |
1,553,871 |
|
I, John R. Shrewsberry, Sr. EVP & CFO of the above-named
bank do hereby declare that this Report of Condition has been prepared in
conformance with the instructions issued by the appropriate Federal regulatory
authority and is true to the best of my knowledge and belief.
John R. Shrewsberry
Sr. EVP &
CFO
We, the undersigned directors, attest to the correctness of
this Report of Condition and declare that it has been examined by us and to the
best of our knowledge and belief has been prepared in conformance with the
instructions issued by the appropriate Federal regulatory authority and is true
and correct.
| John Stumpf |
Directors |
| James Quigley |
|
| Enrique Hernandez, Jr. |
|
Exhibit 25.2
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM T-1
STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF
1939 OF A
CORPORATION DESIGNATED TO ACT AS TRUSTEE
_____________________________
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A TRUSTEE
PURSUANT TO SECTION 305(b) (2)
WELLS FARGO BANK, NATIONAL
ASSOCIATION
(Exact name of trustee as specified in its
charter)
| A National Banking Association |
94-1347393 |
| (Jurisdiction of incorporation or |
(I.R.S. Employer |
| organization if not a U.S. national |
Identification No.) |
| bank) |
|
| |
|
| 101 North Phillips Avenue |
|
| Sioux Falls, South Dakota |
57104 |
| (Address of principal executive offices) |
(Zip code) |
Wells Fargo & Company
Law Department, Trust
Section
MAC N9305-175
Sixth Street and Marquette Avenue,
17th Floor
Minneapolis, Minnesota 55479
(612) 667-4608
(Name, address and telephone
number of agent for service)
_____________________________
NET 1 UEPS TECHNOLOGIES, INC.
(Exact name of obligor as specified in its charter)
| Florida |
98-0171860 |
| (State or other jurisdiction of |
(I.R.S. Employer |
| incorporation or organization) |
Identification No.) |
| |
|
| President Place, 4th Floor
|
|
| Cnr. Jan Smuts Avenue and Bolton Road |
|
| Rosebank, Johannesburg, South Africa |
N/A |
| (Address of principal executive offices) |
(Zip code) |
_____________________________
Subordinated Debt Securities
(Title of
the indenture securities)
Item 1. General Information. Furnish
the following information as to the trustee:
| |
(a) |
Name and address of each examining or supervising
authority to which it is subject. |
| |
|
|
| |
|
Comptroller of the Currency
Treasury Department
Washington, D.C. |
| |
|
|
| |
|
Federal Deposit Insurance Corporation
Washington,
D.C. |
| |
|
|
| |
|
Federal Reserve Bank of San Francisco
San Francisco,
California 94120 |
| |
|
|
| |
(b) |
Whether it is authorized to exercise corporate trust
powers. |
| |
|
|
| |
|
The trustee is authorized to exercise corporate trust
powers. |
Item 2. Affiliations with Obligor. If the obligor is an
affiliate of the trustee, describe each such affiliation.
None with respect to the trustee.
No responses are included for Items 3-14 of this Form T-1
because the obligor is not in default as provided under Item 13.
Item 15. Foreign
Trustee. Not
applicable.
Item 16. List of
Exhibits.
List below all exhibits filed as a part of this Statement of Eligibility.
| |
Exhibit 1. |
A copy of the Articles of Association of the trustee now
in effect.* |
| |
|
|
| |
Exhibit 2. |
A copy of the Comptroller of the Currency Certificate of
Corporate Existence for Wells Fargo Bank, National Association, dated
January 14, 2015.* |
| |
|
|
| |
Exhibit 3. |
A copy of the Comptroller of the Currency Certification
of Fiduciary Powers for Wells Fargo Bank, National Association, dated
January 6, 2014.* |
| |
|
|
| |
Exhibit 4. |
Copy of By-laws of the trustee as now in effect.*
|
| |
|
|
| |
Exhibit 5. |
Not applicable. |
| |
|
|
| |
Exhibit 6. |
The consent of the trustee required by Section 321(b) of
the Act. |
| |
|
|
| |
Exhibit 7. |
A copy of the latest report of condition of the trustee
published pursuant to law or the requirements of its supervising or
examining authority. |
| |
|
|
| |
Exhibit 8. |
Not applicable. |
| |
|
|
| |
Exhibit 9. |
Not applicable. |
* Incorporated by reference to the exhibit of the same number to the trustee’s Form T-1 filed as exhibit to the Filing 305B2 dated March 13, 2015 of file number 333-190926.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of
1939, as amended, the trustee, Wells Fargo Bank, National Association, a
national banking association organized and existing under the laws of the United
States of America, has duly caused this statement of eligibility to be signed on
its behalf by the undersigned, thereunto duly authorized, all in the City of New
York and State of New York on the 12th day of November, 2015.
WELLS FARGO BANK, NATIONAL ASSOCIATION
/s/ Martin G.
Reed
Martin G. Reed
Vice President
EXHIBIT 6
November 12, 2015
Securities and Exchange Commission
Washington, D.C. 20549
Gentlemen:
In accordance with Section 321(b) of the Trust Indenture Act of
1939, as amended, the undersigned hereby consents that reports of examination of
the undersigned made by Federal, State, Territorial, or District authorities
authorized to make such examination may be furnished by such authorities to the
Securities and Exchange Commission upon its request therefor.
Very truly yours,
WELLS FARGO BANK, NATIONAL ASSOCIATION
/s/ Martin G.
Reed
Martin G. Reed
Vice President
EXHIBIT 7
Consolidated Report of Condition of
Wells Fargo Bank National Association
of 101 North Phillips
Avenue, Sioux Falls, SD 57104
And Foreign and Domestic Subsidiaries,
at
the close of business June 30, 2015, filed in accordance with 12 U.S.C. §161 for
National Banks.
| |
|
|
|
|
Dollar Amounts |
|
| |
|
|
|
|
In Millions |
|
| |
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
| Cash and balances due from depository
institutions: |
|
|
|
|
|
|
|
Noninterest-bearing balances and currency and coin |
|
|
|
$ |
17,464 |
|
|
Interest-bearing balances |
|
|
|
|
189,787 |
|
| Securities: |
|
|
|
|
|
|
|
Held-to-maturity securities |
|
|
|
|
80,102 |
|
|
Available-for-sale securities |
|
|
|
|
233,717 |
|
| Federal funds sold and securities purchased
under agreements to resell: |
|
|
|
|
|
|
|
Federal funds sold in domestic offices |
|
|
|
|
1,864 |
|
|
Securities purchased under agreements to resell
|
|
|
|
|
18,746 |
|
| Loans and lease financing receivables: |
|
|
|
|
|
|
|
Loans and leases held for sale |
|
|
|
|
20,241 |
|
|
Loans and leases, net of unearned income |
|
848,562 |
|
|
|
|
|
LESS: Allowance for loan and lease losses |
|
10,493 |
|
|
|
|
|
Loans and leases, net of unearned income and allowance |
|
|
|
|
838,069 |
|
| Trading Assets |
|
|
|
|
39,221 |
|
| Premises and fixed assets (including capitalized leases)
|
|
|
|
|
7,527 |
|
| Other real estate owned |
|
|
|
|
1,849 |
|
| Investments in unconsolidated subsidiaries and associated
companies |
|
|
|
|
855 |
|
| Direct and indirect investments in real
estate ventures |
|
|
|
|
0 |
|
| Intangible assets |
|
|
|
|
|
|
|
Goodwill |
|
|
|
|
21,627 |
|
|
Other intangible assets |
|
|
|
|
17,894 |
|
| |
|
|
|
|
|
|
| Other assets |
|
|
|
|
64,908 |
|
| Total assets |
|
|
|
$ |
1,553,871 |
|
| |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
In domestic offices |
|
|
|
$ |
1,086,292 |
|
|
Noninterest-bearing |
|
343,725 |
|
|
|
|
|
Interest-bearing |
|
742,597 |
|
|
|
|
|
In foreign offices, Edge and Agreement subsidiaries, and IBFs
|
|
|
|
|
140,792 |
|
|
Noninterest-bearing |
|
669 |
|
|
|
|
|
Interest-bearing |
|
140,123 |
|
|
|
|
| Federal funds purchased and securities sold
under agreements to repurchase: |
|
|
|
|
|
|
|
Federal funds purchased in domestic offices |
|
|
|
|
594 |
|
|
Securities sold under agreements to repurchase
|
|
|
|
|
19,806 |
|
| |
|
Dollar Amounts |
|
| |
|
|
|
| |
|
In
Millions |
|
| |
|
|
|
| Trading liabilities |
|
18,515 |
|
| Other borrowed money |
|
|
|
|
(includes mortgage indebtedness and obligations
under capitalized leases) |
|
89,743 |
|
| Subordinated notes and debentures |
|
16,760 |
|
| |
|
|
|
| Other liabilities |
|
33,801 |
|
| Total liabilities |
$ |
1,406,303 |
|
| |
|
|
|
| |
|
|
|
| EQUITY CAPITAL |
|
|
|
| Perpetual preferred stock and related
surplus |
|
0 |
|
| Common stock |
|
519 |
|
| Surplus (exclude all surplus related to
preferred stock) |
|
106,692 |
|
| Retained earnings |
|
36,940 |
|
| Accumulated other comprehensive income |
|
2,986 |
|
| |
|
|
|
| Other equity capital components |
|
0 |
|
| Total bank equity capital |
|
147,137 |
|
| Noncontrolling (minority) interests in
consolidated subsidiaries |
|
431 |
|
| |
|
|
|
| |
|
|
|
| Total equity capital |
|
147,568 |
|
| Total liabilities, and equity capital |
$ |
1,553,871 |
|
I, John R. Shrewsberry, Sr. EVP & CFO of the above-named
bank do hereby declare that this Report of Condition has been prepared in
conformance with the instructions issued by the appropriate Federal regulatory
authority and is true to the best of my knowledge and belief.
John R. Shrewsberry Sr.
EVP &
CFO
We, the undersigned directors, attest to the correctness of
this Report of Condition and declare that it has been examined by us and to the
best of our knowledge and belief has been prepared in conformance with the
instructions issued by the appropriate Federal regulatory authority and is true
and correct.
| John Stumpf |
Directors |
| James Quigley |
|
| Enrique Hernandez, Jr. |
|
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