As filed with the Securities and Exchange Commission March 26, 2001
Registration Statement No. 333-______
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
-------------------------
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
--------------------------
EXELON CORPORATION
(Exact name of registrant as specified in its charter)
Pennsylvania 4931 23-2990190
- -------------------- ------------------------- ----------------------
(State or other (Primary Standard (IRS Employer
jurisdiction of Industrial Classification Identification Number)
incorporation or Code)
organization)
10 South Dearborn Street
37th Floor
Post Office Box 805379
Chicago, Illinois 60680-5379
(312) 394-4321
- --------------------------------------------------------------------------------
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
Ruth Ann M. Gillis
Senior Vice President and Chief Financial Officer
10 South Dearborn Street
37th Floor
Chicago, Illinois 60680-5379
(312) 394-4321
- --------------------------------------------------------------------------------
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
---------------------------------
Copies to:
Randall E. Mehrberg, Esq. Robert C. Gerlach, Esq
Exelon Corporation Ballard Spahr Andrews & Ingersoll, LLP
10 South Dearborn Street 1735 Market Street, 51st Floor
37th Floor Philadelphia, Pennsylvania 19103
Post Office Box 805379 (215) 665-8500
Chicago, Illinois 60680-5379
(312) 394-4321
Approximate date of commencement of proposed sale to public: From time to time
after the Registration Statement becomes effective, as determined by
market conditions and other factors.
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 being
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 number of the earlier effective registration statement for the
same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule
434, please check the following box. [ ]
CALCULATION OF REGISTRATION FEE
============================ ======================= ====================== ====================== ===================
Title of each class Proposed maximum Proposed maximum Amount of
of securities Amount to be offering price per aggregate offering registration
to be registered registered (1) unit (2) price(2) fee
- ---------------------------- ----------------------- ---------------------- ---------------------- -------------------
Debt Securities $1,500,000,000.00 100% $1,500,000,000.00 $375,000
- ---------------------------- ----------------------- ---------------------- ---------------------- -------------------
(1) There is being registered hereunder a presently indeterminate principal
amount of debt securities with an aggregate initial offering price not
to exceed $1,500,000,000.00.
(2) Estimated solely for the purpose of calculating the registration fee.
---------------------------------------------
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 or until the registration statement shall become
effective on such date as the Commission acting pursuant to said Section 8(a),
may determine.
Subject to Completion, dated March 26, 2001
$1,500,000,000
[Logo]
Exelon Corporation
Debt Securities
--------------------------------
Exelon Corporation may offer from time to time, together or separately,
one or more series of its unsecured debt securities. These debt securities will
rank equally in terms of payment with all of our other unsubordinated and
unsecured indebtedness.
When a particular series of debt securities is offered, we will prepare
and issue a supplement to this prospectus setting forth the particular terms of
the offered debt securities. You should read this prospectus and any prospectus
supplement carefully before you make any decision to invest in the debt
securities.
The aggregate initial public offering price of all debt securities
which may be sold under this prospectus will not exceed $1,500,000,000.
--------------------------------
This prospectus may not be used to consummate sales of the securities
offered by this prospectus unless accompanied by a prospectus supplement.
The information in this prospectus is not complete and may be changed.
We may not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an offer
to sell these securities and we are not soliciting an offer to buy these
securities in any jurisdiction where the offer or sale is not permitted.
--------------------------------
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities nor passed upon the
accuracy or adequacy of this prospectus. Any representation to the contrary is a
criminal offense.
------------------------
Prospectus dated _____________ __, 2001
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement that Exelon filed
with the Securities and Exchange Commission using a "shelf" registration
process. Under this shelf process, we may, from time to time, sell debt
securities with different terms and provisions in one or more offerings of one
or more series. The aggregate principal amount of debt securities which we may
offer under this prospectus is $1,500,000,000. Each time we sell debt
securities, we will 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. You should read
both this prospectus and any prospectus supplement together with the additional
information described under the heading "Where You Can Find More Information".
WHERE YOU CAN FIND MORE INFORMATION
Exelon is a Pennsylvania corporation that files annual, quarterly and
special reports, proxy statements and other information with the Securities and
Exchange Commission. You may read and copy any reports, statements or other
information that we file with the SEC at the SEC's public reference rooms at the
following locations:
Public Reference Room New York Regional Office Chicago Regional Office
450 Fifth Street, N.W. 7 World Trade Center Citicorp Center
Room 1024 Suite 1300 500 West Madison Street
Washington, D.C. 20549 New York, NY 10048 Suite 1400
Chicago, IL 60661-2511
Please call the SEC at 1-800-SEC-0330 for additional information on the
public reference rooms. Our SEC filings are also available to the public from
commercial document retrieval services and at the Internet worldwide web site
maintained by the SEC at "http://www.sec.gov". Reports, proxy statements and
other information about Exelon may also be inspected at the offices of the New
York Stock Exchange, which is located at 20 Broad Street, New York, New York
10005.
The SEC allows Exelon to "incorporate by reference" information into
this prospectus, which means that we can disclose important information to you
by referring you to other documents filed separately with the SEC. The
information incorporated by reference is considered part of this prospectus,
except for any information superseded by information contained directly in this
prospectus or in later filed documents incorporated by reference in any
supplement to this prospectus.
This prospectus incorporates by reference the documents that Exelon and
its predecessor companies, PECO Energy Company and Unicom Corporation, have
filed with the SEC. These documents contain important business and financial
information about Exelon that is not included in or delivered with this
prospectus. We incorporate by reference the documents listed below and any
future filings we make with the SEC (file no. 001-16169) under Sections 13(a),
13(c), 14 or 15(d) of the Securities Exchange Act of 1934 until we sell all of
the debt securities.
Exelon
o Quarterly report on Form 10-Q for the quarter ended September 30, 2000;
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o Current reports on Form 8-K filed on October 23, 2000, October 31, 2000,
November 15, 2000, November 29, 2000, December 18, 2000, December 22, 2000,
January 16, 2001, January 31, 2001, February 26, 2001 and March 16 2001;
and
o Amended current report on Form 8-K/A filed on November 15, 2000.
Predecessor Companies
PECO Energy Company
o Annual report on Form 10-K for the year ended December 31, 1999, as amended
on April 28, 2000;
o Quarterly reports on Form 10-Q for the quarters ended March 31, 2000, June
30, 2000 and September 30, 2000; and
o Current reports on Form 8-K filed on January 7, 2000, January 13, 2000,
March 21, 2000, March 24, 2000, May 3, 2000, June 8, 2000, June 22, 2000,
June 27, 2000, August 10, 2000, August 14, 2000, August 15, 2000 and
October 20, 2000 (2).
Unicom Corporation
o Annual report on Form 10-K for the year ended December 31, 1999, as amended
on May 1, 2000 and May 12, 2000;
o Quarterly reports on Form 10-Q for the quarters ended March 31, 2000, June
30, 2000 and September 30, 2000; and
o Current reports on Form 8-K filed on January 7, 2000, January 13, 2000,
March 30, 2000, May 9, 2000, June 29, 2000 (2) and October 20, 2000.
You may request a copy of these filings, other than exhibits not
specifically incorporated by reference therein, which will be provided to you
without charge, by writing or telephoning:
Director, Investor Relations
Exelon Corporation
37th Floor
10 South Dearborn Street
Post Office Box 805379
Chicago, Illinois 60680-5379
Telephone: (312) 394-8354
You should rely only on the information incorporated by reference or
provided in this prospectus or any prospectus supplement. We have not authorized
anyone else to provide you with different information. We are not making an
offer of these debt securities in any state where the offer is not permitted.
You should not assume that the information in this prospectus or any prospectus
supplement is accurate as of any date other than the date on the front of those
documents.
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EXELON CORPORATION
Exelon (NYSE: EXC) is a leading provider of energy services in the
United States. As the result of a merger between PECO Energy Company and Unicom
Corporation, Exelon, together with our affiliates, has become one of the
nation's largest electric utilities. We are a utility services holding company
engaged, through our subsidiaries, in the production, purchase, transmission,
distribution and sale of electricity to 5 million retail customers and in the
wholesale market, and the distribution and sale of natural gas to 425,000 retail
customers. We are the largest nuclear operator in the United States. We also
provide power marketing, deregulated energy, telecommunications and
infrastructure services.
We, through our subsidiaries including PECO Energy Company and
Commonwealth Edison Co., operate in three business segments:
o Energy Delivery, consisting of the retail electricity
distribution and transmission businesses of ComEd in northern
Illinois and PECO Energy in southeastern Pennsylvania and the
natural gas distribution business of PECO Energy located in the
Pennsylvania counties surrounding the City of Philadelphia.
o Generation, consisting of electric generating facilities, power
marketing operations and equity interests in Sithe Energies, Inc.
and AmerGen Energy Company, LLC.
o Enterprises, consisting of competitive retail energy sales,
energy and infrastructure services, communications and related
investments.
During January 2001, we undertook a restructuring to separate our
generation and other competitive businesses from our regulated energy delivery
business. As part of the restructuring, the non-regulated operations and related
assets of ComEd and PECO Energy were transferred to separate subsidiaries.
Restructuring will streamline the process for managing, operating and tracking
financial performance of each business segment.
Exelon's executive offices are located at 10 South Dearborn Street,
37th Floor, Chicago Illinois 60680-5379 and our telephone number is (312)
394-4321.
COVERAGE RATIOS
The ratio of earnings to fixed charges for each of PECO Energy Company
and Commonwealth Edison Co. for the periods indicated was as set forth in the
following table.
Substantially all of the results of operations for Unicom Corporation
are the results of operations for Commonwealth Edison Co. As such, the following
coverage ratios are for ComEd, as the operational entity, rather than Unicom,
the former holding company.
PECO Energy Company
Years ended December 31,
- --------------------------------------------------------------------------------
1995 1996 1997 1998 1999
---- ---- ---- ---- ----
3.41 3.29 2.71 3.60 3.42
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Commonwealth Edison Co.
Years ended December 31,
- -------------------------------------------------------------------------------
1995 1996 1997 1998 1999
---- ---- ---- ---- ----
2.79 2.90 0.58 2.59 2.45
The ratios of earnings to fixed charges represent, on a pre-tax basis,
the number of times earnings cover fixed charges. Earnings consist of net income
plus fixed charges and taxes based on our income. Fixed charges consist of
interest on funded indebtedness, other interest, amortization of net gain on
reacquired debt and net discount on debt and the interest portion of all rentals
charged to income.
USE OF PROCEEDS
The net proceeds from the sale of the debt securities will be added to
our general funds and will be used for the repayment of outstanding indebtedness
and for general corporate purposes, all as more specifically set forth in a
prospectus supplement.
DESCRIPTION OF DEBT SECURITIES
The debt securities will be our direct, unsecured obligations and may
be issued from time to time in one or more offerings of one or more series. The
debt securities will be issued under an Indenture to be entered into between us
and ____________________________, trustee. The Indenture is filed as an exhibit
to the registration statement of which this prospectus is a part. Selected
provisions of the Indenture have been summarized below. The summary is not
complete and many of the terms contained in the following summary may be
modified in the accompanying prospectus supplement. You should read the
Indenture for provisions that may be important to you. In the summary below, we
include references to section numbers of the Indenture so that you can easily
locate these provisions and, when appropriate, we also included references to
sections of the Trust Indenture Act.
General Provisions of the Indenture
The debt securities will be our direct, unsecured obligations and will
rank equally with all of our other unsecured and unsubordinated indebtedness.
Because we are a holding company that conducts all of our operations
through our subsidiaries, holders of debt securities will generally have a
junior position to claims of creditors of those subsidiaries, including trade
creditors, debt holders, secured creditors, taxing authorities, guarantee
holders and any preferred stockholders other than, in each case, where we are
the creditor or stockholder. Our subsidiaries have ongoing corporate debt
programs used to finance their business activities. As of December 31, 2000, our
subsidiaries had approximately $13,500,000,000 of outstanding debt. We do not
have any preferred stock outstanding but PECO Energy Company, one of our
subsidiaries, has outstanding preferred stock with an aggregate value of
$174,000,000. Commonwealth Edison Co., another of our subsidiaries, has less
than 1% of its shares of common stock held by non-affiliates. Finance
subsidiaries of each of PECO Energy and ComEd have preferred stock outstanding,
with an aggregate value of $128,000,000 and $328,000,000, respectively. If
distributions are not timely made on any of this preferred stock, PECO Energy or
ComEd, as the case may be, may not pay dividends on its common stock, which may
adversely affect our ability to make payment on these debt securities.
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The Indenture provides that any debt securities proposed to be sold by
this prospectus and the accompanying prospectus supplement, as well as other of
our unsecured debt securities, may be issued under the Indenture in one or more
series, in each case as authorized by us from time to time. The particular terms
of any series of debt securities and any modifications of or additions to the
general terms of the debt securities described in this prospectus will be
described in the prospectus supplement for that series. Accordingly, for a
description of the terms of any series of debt securities, you should refer to
both the prospectus supplement relating to that series and the description of
debt securities, set forth in this prospectus.
The applicable prospectus supplement for a series of debt securities
that we issue will describe, among other things, the following terms of the
offered debt securities:
o the title;
o any limit on the aggregate principal amount;
o whether issued in the form of one or more global securities and whether all
or a portion of the principal amount of the debt securities is represented
thereby;
o the price or prices at which the debt securities will be issued;
o the date or dates on which principal is payable which may range from nine
months to 30 years for medium-term debt securities and more than 30 years
for long-term debt securities;
o interest rates (which may be fixed or floating rates), and the dates from
which interest, if any, will accrue, and the dates when interest is
payable;
o the right, if any, to extend the interest payment periods and the duration
of the extensions;
o additional covenants to the benefit of the holders of debt securities;
o our rights or obligations to redeem or purchase the debt securities;
o any sinking fund provisions;
o the terms applicable to any debt securities issued at a discount from their
stated principal amount;
o the portion of the principal amount payable upon acceleration of maturity
as a result of a default on our obligations, if other than the entire
principal amount of the debt securities when issued;
o whether and under what circumstances we will pay additional amounts on our
debt securities to any holder who is not a United States person in respect
of any tax, assessment or governmental charge attributable to that person
and, if so, whether we will have the option to redeem those debt securities
rather than pay those additional amounts; and
o any other specific terms of any debt securities.
If applicable, the prospectus supplement will also include a discussion
of federal income tax considerations relevant to the debt securities being
offered.
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We may issue debt securities that provide for less than the entire
principal amount to be payable upon declaration of acceleration of the maturity
of those debt securities and these debt securities are commonly referred to as
"original issue discount securities." Federal income tax and other
considerations pertaining to any original issue discount securities will be
discussed in the applicable prospectus supplement.
We are not restricted by the Indenture from incurring indebtedness and
you are not protected from a highly leveraged or similar transaction involving
us. You should refer to the prospectus supplement for information with respect
to any deletions from, modifications of or additions to the events of default or
the covenants that are described below, including any addition of a covenant or
other provision providing event risk or similar protection.
Denominations, Registration and Transfer
Debt securities of a series may be issuable solely as registered
securities (registered in our books in the name of the holder thereof). The
Indenture also provides that debt securities of a series may be issuable in
global form. See "Book-Entry Debt Securities". Unless otherwise provided in the
prospectus supplement, debt securities denominated (other than global
securities, which may be of any denomination) are issuable in United States
dollars in denominations of $1,000 or any integral multiples of $1,000. (Section
2.7 of the Indenture).
Debt securities will be exchangeable for other debt securities of the
same series and maturity. (Section 2.8 of the Indenture).
Debt securities of a series may be presented for registration of
transfer, and debt securities of a series may be presented for exchange, (i) at
each office or agency required to be maintained by us for payment of that series
as described in "Payment and Paying Agents", and (ii) at each other office or
agency that we may designate from time to time for that purpose. No service
charge will be made for any transfer of debt securities, but we may require
payment of any tax or other governmental charge payable in connection therewith.
(Section 2.8 of the Indenture).
We will not be required to:
o issue, register the transfer of or exchange debt securities during a period
beginning at the opening of business 15 days preceding the first mailing of
notice of redemption of debt securities of that series to be redeemed; or
o register the transfer of or exchange any debt security, or portion thereof,
called for redemption, except the unredeemed portion of any debt security
being redeemed in part.
(Section 2.8 of the Indenture).
Payment and Paying Agents
Principal, premium, if any, and interest, if any, on debt securities
will be payable at any office or agency to be maintained by us in
________________, except that at our option, interest may be paid (i) by check
mailed to the address of the person entitled thereto as that address appears in
our security register or (ii) by wire transfer to an account maintained by the
person entitled thereto as specified in our security register. (Section 3.1 of
the Indenture). Payment of any installment of interest on debt securities will
be made to the person in whose name the debt security is registered at the close
of business on the regular record date for interest. (Section 2.7 of the
Indenture).
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We may from time to time designate additional offices or agencies,
approve a change in the location of any office or agency and, except as provided
above, rescind the designation of any office or agency.
Events of Default
Unless otherwise provided for in the prospectus supplement, we will be
subject to an "event of default" under the Indenture if any of the following
occurs:
o failure to pay interest for 30 days after the date payment is due and
payable; provided that if we extend an interest payment period in
accordance with the terms of the debt securities, the extension will not be
a failure to pay interest;
o failure to pay principal or premium, if any, on any debt security when due,
either at maturity, upon any redemption, by declaration or otherwise;
o failure to make any sinking fund payments when due;
o failure to perform other covenants under the Indenture for 60 days after
the trustee has notified us that performance was required;
o bankruptcy, insolvency or reorganization of our company; or
o any other event of default provided in the applicable resolution of our
Board of Directors under which we issue a series of debt securities.
(Section 5.1 of the Indenture).
An event of default for a particular series of debt securities does not
necessarily constitute an event of default for any other series of debt
securities issued under the Indenture. If an event of default relating to the
payment of interest, principal or any sinking fund installment involving any
series of debt securities has occurred and is continuing, the trustee or the
holders of not less than 25% in aggregate principal amount of outstanding debt
securities of each affected series may declare the entire principal of all the
debt securities of that series (or, if the debt securities of that series are
original issue discount securities, that portion of the principal amount as may
be specified in the terms thereof) to be due and payable immediately. (Section
5.1 of the Indenture).
Where an event of default has occurred and is continuing with respect
to the outstanding debt securities of a series, the trustee is under no
obligation to exercise any of its rights or powers under the Indenture at the
request, order or direction of the holders of the outstanding debt securities of
that series, unless those holders have offered the trustee reasonable indemnity
against the expenses and liabilities that it might incur in compliance with the
request that the trustee take action in response to an event of default. Subject
to these provisions for the indemnification of the trustee, the holders of a
majority in principal amount of the outstanding debt securities of a series 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 that series.
(Section 5.9 of the Indenture).
The holders of a majority in principal amount of the outstanding debt
securities of a series may, on behalf of the holders of all debt securities of
that series, waive any past default under the Indenture with respect to that
series and its consequences, except a default (i) in payment of the principal of
(or
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premium, if any) or interest, or any additional amounts payable in respect if
any debt security of that series or (ii) in respect of a covenant or provision
that cannot be modified or amended without the consent of the holder of each
affected outstanding debt security of that series. (Section 5.10 of the
Indenture)
The Indenture imposes limitations on suits brought by holders of debt
securities against us. Except for actions for payment of overdue principal or
interest, no holder of debt securities of any series may institute any action
against us under the Indenture unless:
o the holder has previously given to the trustee written notice of default
and continuance of that default;
o the holders of at least 25% in principal amount of the affected outstanding
debt securities have requested that the trustee institute the action;
o the requesting holders have offered the trustee reasonable indemnity for
expenses and liabilities that may be incurred by bringing the action;
o the trustee has not instituted the action within 60 days of the request;
and
o the trustee has not received inconsistent direction by the holders of a
majority in principal amount of the outstanding debt securities of that
series.
(Sections 5.6 and 5.7 of the Indenture).
We will be required to file annually with the trustee a certificate,
signed by an officer of our company, stating whether or not the officer knows of
any default by us in the performance, observance or fulfillment of any condition
or covenant of the Indenture. (Section 3.5 of the Indenture). The Indenture
provides that the trustee may withhold notice of a default (except payment
defaults) to the holders of debt securities of the series to which the default
applies if the trustee considers it in the interests of those holders of those
debt securities to do so. (Section 5.11 of the Indenture).
Covenants
The Indenture provides that we comply with the following covenants:
o punctual payment of principal and interest on the debt
securities;
o maintain an office in ___________________ where debt securities
may be presented for payment, exchange and transfer;
o to appoint a trustee to fill any vacancy;
o to issue a certificate to the trustee on January 31 each year
indicating whether we have complied with all covenants and
conditions in the Indenture;
o maintain our corporate existence; and
o pay our taxes and other assessments and claims as they become
due.
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Merger or Consolidation
The Indenture provides that we may not consolidate with or merge with
or into any other corporation or other person or convey or transfer our
properties or assets in their entirety or substantially in their entirety to any
corporation or other person, unless we are the continuing corporation or the
other corporation or other person is organized under the laws of the United
States or any state and assumes by supplemental indenture all of our obligations
under the Indenture and the debt securities issued thereunder and immediately
after the transaction no default exists.
Modification or Waiver
The Indenture provides that we and the trustee may modify and amend the
Indenture and enter into supplemental indentures without the consent of any
holders of debt securities to:
o evidence the assumption by a successor corporation of our obligations;
o add covenants for the protection of the holders of debt securities;
o cure any ambiguity or correct any inconsistency in the Indenture, provided
that this action does not adversely affect the interests of holders of any
series of debt securities in any material respect; and
o evidence and provide for the acceptance of appointment by a successor
trustee.
(Section 8.1 of the Indenture).
The Indenture also provides that we and the trustee may, with the
consent of the holders, add, eliminate or modify in any way the provisions of
the Indenture or modify in any manner the rights of the holders of the debt
securities. Consent of the holders means holders of not less than a majority in
aggregate principal amount of debt securities of all affected series then
outstanding, voting as one class. (Section 8.2 of the Indenture). We cannot do
this, however, for those matters requiring the consent of each holder as
described below.
We and the trustee may not without the consent of the holder of each
outstanding debt security affected thereby:
o extend the final maturity of any debt security;
o reduce the principal amount or premium, if any;
o reduce the rate or extend the time of payment of interest;
o reduce any amount payable on redemption;
o reduce the amount of the principal of any debt security issued with an
original issue discount that is payable upon acceleration or provable in
bankruptcy;
o impair the right to sue for the enforcement of any payment on any debt
security when due; or
o reduce the percentage of holders of debt securities of any series whose
consent is required for any modification of the Indenture.
In determining whether the holders of the requisite principal amount of
outstanding debt securities have given any request, demand, authorization,
direction, notice, consent or waiver under the
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Indenture (i) the principal amount of an original issue discount security that
will be deemed to be outstanding will be the amount of the principal thereof
that would then be due and payable upon acceleration of the maturity thereof and
(ii) debt securities owned by us or any other obligor upon the debt securities
or any affiliate of ours or of other obligor will be disregarded. (Section 7.4
of the Indenture).
Satisfaction and Discharge, Defeasance and Covenant Defeasance
We can discharge or defease our obligations under the Indenture as
stated below or as provided in the prospectus supplement.
We may discharge obligations to holders of any series of debt
securities that have not already been delivered to the trustee for cancellation
and that have either become due and payable or are to become due and payable, or
are scheduled for redemption, within one year. We may discharge these
obligations by irrevocably depositing with the trustee cash or U.S. "Government
Obligations" (as defined below), as trust funds, in an amount certified to be
enough to pay when due, whether at maturity, upon redemption or otherwise, the
principal of and interest on the debt securities and any mandatory sinking fund
payments. (Section 9.1 of the Indenture).
We may also discharge any and all of our obligations to holders of any
series of debt securities at any time, referred to as "defeasance." We may also
be released from the obligations imposed by any covenants of any outstanding
series of debt securities and provisions of the Indenture, and we may avoid
complying with those covenants without creating an event of default under the
Indenture, referred to as "covenant defeasance." We may effect defeasance and
covenant defeasance only if, among other things:
o we irrevocably deposit with the trustee cash or U.S. Government
Obligations, as trust funds, in an amount certified to be enough to pay at
maturity, or upon redemption, the principal, and interest on all
outstanding debt securities of that series; and
o we deliver to the trustee an opinion of counsel from a nationally
recognized law firm to the effect that (i) in the case of covenant
defeasance, the holders of the series of debt securities will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of
that defeasance, and will be subject to tax in the same manner and at the
same time as if no covenant defeasance had occurred and (ii) in the case of
defeasance, either we have received from, or there has been published by,
the Internal Revenue Service a ruling or there has been a change in
applicable U.S. federal income tax law, and based thereon, the holders of
the series of debt securities will not recognize income, gain or loss for
U.S. federal income tax purposes as a result of that defeasance, and will
be subject to tax in the same manner as if no defeasance had occurred.
(Section 9.1 of the Indenture).
Although we may discharge or decrease our obligations under the
Indenture as described in the two preceding paragraphs, we may not avoid, among
other things, then the rights and obligations of the trustee under the
Indenture, to register the transfer or exchange of any series of debt
securities, to replace any temporary, mutilated, destroyed, lost or stolen
series of debt securities or to maintain an office or agency in respect of any
series of debt securities. (Section 9.1 of the Indenture).
If we effect covenant defeasance with respect to any debt securities
and those debt securities are declared due and payable because of the occurrence
of any event of default other than the event of default resulting from a failure
to comply with any covenant in the Indenture after the notice served therefor
has elapsed, the amount of Government Obligations and funds on deposit with the
trustee will be sufficient to pay amounts due on those debt securities at the
time of their stated maturity but may not be sufficient to
10
pay amounts due on those debt securities at the time of the acceleration
resulting from that event of default. In that case, we would remain liable to
make payment of those amounts due at the time of acceleration. (Section 9.1 of
the Indenture).
If the trustee or any paying agent is prevented by a court or
governmental authority from applying any money deposited with the trustee in
accordance with the Indenture, then our obligations under the Indenture and the
debt securities shall be revived and reinstated as though no deposit had
occurred pursuant to the Indenture. Our obligation will continue until such time
as the trustee or paying agent is permitted to apply all money in accordance
with the Indenture. Any payment of principal of (or premium, if any) or interest
that we make on any debt security following the reinstatement of our obligations
will be subrogated to the rights of the holders of those debt securities to
receive such payment from the money held by the trustee or paying agent.
As used above, "Government Obligations" means securities that are (i)
direct obligations of the United States or (ii) obligations of a person
controlled or supervised by and acting as an agency or instrumentality of the
United States, the payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States, which are not callable or
redeemable at the option of the issuer thereof. (Section 9.1 of the Indenture).
Book-Entry Debt Securities
We may issue the debt securities of a series in whole or in part in the
form of one or more fully registered debt global securities and in either
temporary or permanent form and we refer to each of these as a "global
security". Unless otherwise provided in the prospectus supplement, debt
securities that are represented by a global security will be issued in
denominations of $1,000 and any integral multiple thereof, and will be issued in
registered form only. Payments of principal of (and premium, if any) and
interest, if any, on debt securities represented by a global security will be
made by us to the trustee, and then by the trustee to the depository.
We will deposit any registered global securities with a depository or
with a nominee for a depository identified in the applicable prospectus
supplement and registered in the name of that depository or nominee. We
anticipate that any global securities will be deposited with, or on behalf of,
The Depository Trust Company, New York, New York, that these global securities
will be registered in the name of DTC's nominee, and that the following
provisions will apply to the depository arrangements with respect to any global
securities:
o ownership of beneficial interests in a global security will be limited to
persons that have accounts with DTC or its nominee for that global
security, these persons being referred to as "participant," or persons that
may hold interests through participants;
o upon the issuance of a global security, DTC or its nominee will credit, on
its book-entry registration and transfer system, the participants' accounts
with the respective principal amounts of the debt securities represented by
the global security beneficially owned by the participants;
o any dealers, underwriters, or agents participating in the distribution of
the debt securities will designate the accounts to be credited; and
o ownership of beneficial interest in a global security will be shown on, and
the transfer of that ownership interest will be effected only through,
records maintained by DTC or its nominee for that global security for
interests of participants, and on the records of participants for interests
of persons holding through participants.
11
The laws of some states may require that specified purchasers of
securities take physical delivery of the securities in definitive form. These
laws may limit the ability of those persons to own, transfer or pledge
beneficial interests in registered global securities. Additional or differing
terms of the depository arrangements will be described in the prospectus
supplement.
So long as DTC or its nominee is the registered owner of a global
security, DTC or its nominee, as the case may be, will be considered the sole
holder of the debt securities represented by that global security for all
purposes under the Indenture. Except as stated below, owners of beneficial
interests in a global security:
o will not be entitled to have the debt securities represented by a global
security registered in their names;
o will not receive or be entitled to receive physical delivery of the debt
securities in the definitive form; and
o will not be considered the owners or holders of the debt securities under
the Indenture.
Accordingly, each person owning a beneficial interest in a global
security must rely on the procedures of DTC for the global security and, if the
person is not a participant, on the procedures of a participant through which
the person owns its interest, to exercise any rights of a holder under the
Indenture.
Neither we, any underwriter or agent, the trustee nor the paying agent
will have any responsibility or liability for any aspect of the records relating
to or payments made on account of beneficial interests in a global security, or
for maintaining, supervising or reviewing any records relating to those
beneficial interests.
We will issue individual debt securities in certificated form in
exchange for the relevant global securities if (i) DTC is at any time unwilling,
unable or ineligible to continue as depository and a successor depository is not
appointed by us within 90 days following notice to us, (ii) we determine, in our
sole discretion, not to have any debt securities represented by one or more
global securities, or (iii) an event of default under the Indenture has occurred
and is continuing. If debt securities are issued in certificated form, an owner
of a beneficial interest in a global security will be entitled to physical
delivery of individual debt securities in certificated form of like tenor and
rank, equal in principal amount to that beneficial interest and to have those
debt securities in certificated form registered in its name. Unless otherwise
provided in the prospectus supplement, debt securities so issued in certificated
form will be issued in denominations of $1,000 or any integral multiple thereof
and will be issued in registered form.
The following is based on information furnished by DTC and we assume no
responsibility for its content:
DTC will act as securities depository for the debt securities. The debt
securities will be issued as one or more fully registered securities registered
in the name of Cede & Co. (DTC's partnership nominee).
DTC is a limited-purpose trust company organized under the New York
Banking Law, a "banking organization" within the meaning of the New York Banking
Law, a member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code, and a "clearing agency"
registered pursuant to the provisions of Section 17A of the Securities Exchange
Act of 1934. DTC holds securities that its participants ("Direct Participants")
deposit with DTC. DTC also
12
facilitates the settlement among Direct Participants of securities transactions,
such as transfers and pledges, in deposited securities through electronic
computerized book-entry changes in Direct Participants' accounts, thereby
eliminating the need for physical movement of securities certificates. Direct
Participants include securities brokers and dealers, banks, trust companies,
clearing corporations and certain other organizations.
DTC is owned by a number of its Direct Participants and by the New York
Stock Exchange, Inc., the American Stock Exchange, LLC and the National
Association of Securities Dealers, Inc. Access to the DTC system is also
available to others such as securities brokers and dealers, banks and trust
companies that clear through or maintain a custodial relationship with a Direct
Participant, either directly or indirectly ("Indirect Participants"). The rules
applicable to DTC and its Direct and Indirect Participants are on file with the
SEC.
Purchases of debt securities under the DTC system must be made by or
through Direct Participants, who will receive a credit for the debt securities
on DTC's records. The ownership interest of each actual purchaser of each Debt
Security ("Beneficial Owner") is in turn recorded on the Direct and Indirect
Participants' records. A Beneficial Owner does not receive written confirmation
from DTC of its purchase, but such Beneficial Owner is expected to receive a
written confirmation providing details of the transaction, as well as periodic
statements of its holdings, from the Direct or Indirect Participant through
which such Beneficial Owner entered into the transaction. Transfers of ownership
interests in debt securities are accomplished by entries made on the books of
Participants acting on behalf of Beneficial Owners. Beneficial Owners do not
receive certificates representing their ownership interests in debt securities,
except in the event that use of the book-entry system for the debt securities is
discontinued.
To facilitate subsequent transfers, the debt securities are registered
in the name of DTC's partnership nominee, Cede & Co. or such other name as may
be requested by an authorized representative of DTC. The deposit of the debt
securities with DTC and their registration in the name of Cede & Co. or such
other nominee effects no change in beneficial ownership. DTC has no knowledge of
the actual Beneficial Owners of the debt securities; DTC's records reflect only
the identity of the Direct Participants to whose accounts debt securities are
credited, which may or may not be the Beneficial Owners. The Participants remain
responsible for keeping account of their holdings on behalf of their customers.
Delivery of notices and other communications by DTC to Direct
Participants, by Direct Participants to Indirect Participants, and by Direct
Participants and Indirect Participants to Beneficial Owners are governed by
arrangements among them, subject to any statutory or regulatory requirements as
may be in effect from time to time.
Redemption notices shall be sent to DTC. If less than all of the debt
securities within an issue are being redeemed, DTC's practice is to determine by
lot the amount of the interest of each Direct Participant in such issue to be
redeemed.
Neither DTC nor Cede & Co. (or other nominee) consents or votes with
respect to the debt securities. Under its usual procedures, DTC mails a proxy
(an "Omnibus Proxy") to the issuer as soon as possible after the record date.
The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those
Direct Participants to whose accounts the debt securities are credited on the
record date (identified on a list attached to the Omnibus Proxy).
Payments of principal of (and premium, if any) and interest on the debt
securities will be made to Cede & Co. or other nominee. DTC's practice is to
credit Direct Participants' accounts on the payable date in accordance with
their respective holdings as shown on DTC's records unless DTC has reason to
believe that it will not receive payment on the payable date. Payments by
Participants to Beneficial Owners will
13
be governed by standing instructions and customary practices, as is the case
with securities held for the accounts of customers or registered in "street
name", and will be the responsibility of such Participant and not of DTC, the
paying agent or us, subject to any statutory or regulatory requirements as may
be in effect from time to time. Payment of principal (and premium, if any) and
interest to DTC will be the responsibility of us or the paying agent,
disbursement of such payments to Direct Participants will be the responsibility
of DTC, and disbursement of such payments to the Beneficial Owners will be the
responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository
with respect to the debt securities at any time by giving reasonable notice to
us or the paying agent. Under such circumstances, in the event that a successor
securities depository is not appointed, debt security certificates are required
to be printed and delivered.
We may decide to discontinue use of the system of book-entry transfers
through DTC (or a successor securities depository). In that event, debt security
certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry
system has been obtained from sources (including DTC) that we believe are
reliable, but we take no responsibility for the accuracy thereof.
Unless stated otherwise in the prospectus supplement, the underwriters
or agents with respect to a series of debt securities issued as global
securities will be Direct Participants in DTC.
Information About the Trustee
The Indenture provides that there may be more than one trustee under
the Indenture, each for one or more series of debt securities. If there are
different trustees for different series of debt securities, each trustee will be
a trustee under the Indenture separate and apart from the trust administered by
any other trustee under the Indenture. Except as otherwise indicated in this
prospectus or any prospectus supplement, any action permitted to be taken by a
trustee may be taken by that trustee only on the one or more series of debt
securities for which it is the trustee under the Indenture. All payments of
principal of, premium, if any, and interest on, and all registration, transfer,
exchange, authentication and delivery of, the debt securities of a series will
be made by the trustee for that series at an office designated by that trustee
in _______________________.
The trustee may resign at any time and if the trustee resigns, we will
appoint a successor trustee. We may remove the trustee if the trustee fails to
satisfy the eligibility requirements of the Trust Indenture Act, fails to comply
with the Trust Indenture Act, is incapable of acting or if the trustee becomes
bankrupt or insolvent and, upon removal, we will appoint a successor trustee.
The holders of a majority in aggregate principal amount of the debt securities
of each series may remove the trustee for that series at any time and, upon
removal, we will appoint a successor trustee (Section 6.11 of the Indenture).
If the trustee becomes a creditor of Exelon, the Indenture places
limitations on the rights of the trustee to obtain payment of claims directly or
from property received in respect of that claim as security or otherwise. The
trustee may engage in other transactions. If the trustee acquires any
conflicting interest relating to any duties concerning the debt securities,
however, it must eliminate the conflict or resign as trustee. (Section 6.9 of
the Indenture).
The Indenture provides that if an event of default occurs and is not
cured or waived, the trustee must use the same degree of care and skill as a
prudent person would use in the conduct of his or her own affairs in the
exercise of the trustee's power. (Section 6.1 of the Indenture). The trustee
will be under no
14
obligation to exercise any of its rights or powers under the Indenture at the
request of any of the holders of the debt securities, unless that trustee has
been offered security and indemnity satisfactory to that trustee. (Section 6.2
of the Indenture).
We maintain ordinary banking relationships with _______________________,
including credit facilities and lines of credit. _____________________ also
serves as trustee under other indentures under which we or our subsidiaries are
the obligors.
Governing Law
The Indenture is governed by Pennsylvania law.
PLAN OF DISTRIBUTION
We may sell the debt securities to or through underwriters, dealers, or
agents or directly to one or more other purchasers.
The prospectus supplement sets forth the terms of the offering of the
particular series or issue of debt securities to which that prospectus
supplement relates, including, as applicable:
o the name or names of any underwriters or agents with whom we have entered
into arrangements with respect to the sale of that debt securities;
o the initial public offering or purchase price of those debt securities;
o any underwriting discounts, commissions and other items constituting
underwriters' compensation from us and any other discounts, concessions or
commissions allowed or reallowed or paid by any underwriters to other
dealers;
o any commissions paid to any agents;
o the net proceeds to us; and
o the securities exchanges, if any, on which those debt securities will be
listed.
The obligations of the underwriters to purchase debt securities will be
subject to conditions precedent and each of the underwriters will be obligated
to purchase all of the debt securities of that series or issue allocated to it
if any of those debt securities are purchased. Any initial public offering price
and any discounts or concessions allowed or reallowed or paid to dealers may be
changed from time to time.
The debt securities may be offered and sold by us directly or through
agents that we designate from time to time. Any agent involved in the offer or
sale of the debt securities for which this prospectus is delivered will be named
in, and any commissions payable by us to that agent will be set forth in, the
applicable prospectus supplement. Each agent will be acting on a best efforts
basis for the period of its appointment.
Any underwriters, dealers or agents participating in the distribution
of the debt securities may be deemed to be underwriters, and any discounts or
commissions received by them on the sale or resale of debt securities may be
deemed to be underwriting discounts and commissions, under the Securities Act of
15
1933, as amended. Underwriters, dealers and agents may be entitled, under
agreements entered into with us, to indemnification by us against some civil
liabilities, including liabilities under the Securities Act.
VALIDITY OF DEBT SECURITIES
The validity of the debt securities will be passed upon for us by
Ballard Spahr Andrews & Ingersoll, LLP, Philadelphia, Pennsylvania.
EXPERTS
The consolidated financial statements incorporated in this Registration
Statement by reference to the Annual Report on Form 10-K of PECO Energy Company
for the year ended December 31, 1999 and the consolidated financial statements
included in Exelon Corporation's Report 8-K dated March 16, 2001 have been so
incorporated in reliance on the reports of PricewaterhouseCoopers LLP,
independent accountants, given on the authority of said firm as experts in
auditing and accounting.
The consolidated financial statements and schedule of Unicom
Corporation included in the Annual Report on Form 10-K for the year ended
December 31, 1999 and in the Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2000 and June 30, 2000, have been audited by Arthur Andersen
LLP, independent public accountants, as indicated in their reports with respect
thereto, and are incorporated by reference in this Registration Statement in
reliance upon the authority of said firm as experts in accounting and auditing
in giving said reports.
16
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
The following table sets forth the amounts of expenses attributed to
the issuance of the securities being registered which shall be borne by us. All
of the expenses listed below, except the SEC registration fee, represent
estimates only.
Estimated
SEC registration fee.............................. $375,000
Trustee fees...................................... 10,000
Printing and engraving expenses................... 10,000
Accounting fees and expenses...................... 20,000
Legal fees and expenses........................... 50,000
Miscellaneous fees and expenses................... 35,000
-----------
Total........................................ $500,000
Item 15. Indemnification of Directors and Officers.
Chapter 17, Subchapter D of the Pennsylvania Business Corporation Law
contains provisions permitting indemnification of officers and directors of a
business corporation incorporated in Pennsylvania. Sections 1741 and 1742 of the
Pennsylvania Business Corporation Law provide that a business corporation may
indemnify any director or officer against liabilities and expenses he or she may
incur in connection with a threatened, pending or completed civil,
administrative or investigative proceeding by reason of the fact he or she is or
was a representative of the corporation or was serving at the request of the
corporation as a representative of another enterprise, provided that the person
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 proceeding, had no reasonable cause to believe his or her conduct was
unlawful. In general, the power to indemnify under these sections does not exist
in the case of actions against a director or officer by or in the right of the
corporation if the person otherwise entitled to indemnification shall have been
adjudged to be liable to the corporation unless it is judicially determined
that, despite the adjudication of liability but in view of all the circumstances
of the case, the person is fairly and reasonably entitled to indemnification for
the expenses the court deems proper. Section 1743 of the Pennsylvania Business
Corporation Law provides that the corporation is required to indemnify directors
and officers against expenses they may incur in defending these actions if they
are successful on the merits or otherwise in the defense of these actions.
Section 1746 of the Pennsylvania Business Corporation Law provides that
indemnification under the other sections of Subchapter D is not exclusive of
other rights that a person seeking indemnification may have under any by-law,
agreement, vote of shareholders or disinterested directors or otherwise, whether
or not the corporation would have the power to indemnify the person under any
other provision of law. However, Section 1746 prohibits indemnification in
circumstances where the act or failure to act giving rise to the claim for
indemnification is determined by a court to have constituted willful misconduct
or recklessness.
II-1
Section 1747 of the Pennsylvania Business Corporation Law permits a
corporation to purchase and maintain insurance on behalf of any person who is or
was a director or officer of the corporation, or is or was serving at the
request of the corporation as a representative of another enterprise, against
any liability asserted against that person and incurred by him or her in that
capacity, or arising out of his or her status as such, whether or not the
corporation would have the power to indemnify the person against the liability
under Subchapter D.
Exelon's by-laws provide that Exelon is obligated to indemnify
directors and officers and other persons designated by the board of directors
against any liability including any damage, judgment, amount paid in settlement,
fine, penalty, cost or expense (including, without limitation, attorneys' fees
and disbursements) incurred in connection with any proceeding. Exelon's by-laws
provide that no indemnification shall be made where the act or failure to act
giving rise to the claim for indemnification is determined by arbitration or
otherwise to have constituted willful misconduct or recklessness or to be
attributable to receipt from Exelon of a personal benefit to which the recipient
is not legally entitled.
As permitted by the Pennsylvania Business Corporation Law, Exelon's
by-laws provide that directors generally will not be liable for monetary damages
in any action whether brought by shareholders directly or in the right of Exelon
or by third parties unless they fail in the good faith performance of their
duties as fiduciaries (the standard of care established by the Pennsylvania
Business Corporation Law), and that failure constitutes self-dealing, willful
misconduct or recklessness.
Exelon maintains directors' and officers' liability insurance.
Item 16. Exhibits and Financial Statement Schedules.
Exhibit
Number Description
- ------- -----------
1.1 Form of Underwriting Agreement
3.1 Amended and Restated Articles of Incorporation of Exelon Corporation
(incorporated by reference to Exhibit 3.1 of Exelon's Registration
Statement on Form S-4 (Registration No. 333-37082))
3.2 Bylaws of Exelon Corporation (incorporated by reference to Exhibit 3.2
of Exelon's Registration Statement on Form S-4 (Registration No.
333-37082))
4.1 Form of Indenture between Exelon Corporation and the trustee named
therein
5.1 Opinion of Ballard Spahr Andrews & Ingersoll, LLP regarding the
legality of the securities
12.1 Statement re: Computation of Ratios
23.1 Consent of PricewaterhouseCoopers LLP
23.2 Consent of Arthur Andersen LLP
23.3 Consent of Ballard Spahr Andrews & Ingersoll, LLP (included in the
opinion filed as Exhibit 5.1 to this Registration Statement)
II-2
24.1 Power of Attorney from officers and directors (included in the
signature pages hereto)
25.1 Form T-1 Statement of Eligibility under the Trust Indenture Act of
1939, as amended, of BankOne, National Association, as candidate for
trustee under the Indenture
25.2 Form T-1 Statement of Eligibility under the Trust Indenture Act of
1939, as amended, of BNY Midwest Trust Company, as candidate for
trustee under the Indenture
25.3 Form T-1 Statement of Eligibility under the Trust Indenture Act of
1939, as amended, of LaSalle Bank National Association, as candidate
for trustee under the Indenture
Item 17. Undertakings
The undersigned registrant hereby undertakes:
(a) (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 1933 Act;
(ii) To reflect in the prospectus any facts or events
arising after the effective date of this 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 this
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 Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than a 20 percent
change in the maximum aggregate offering price set forth in the "Calculation of
Registration Fee" table in the effective registration statement;
(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 this registration
statement;
provided, however, that paragraphs (a)(1) (i) and (a)(1) (ii) do not apply if
the information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed by the registrant pursuant to
section 13 or section 15(d) of the Securities Exchange Act of 1934 (the
"Exchange Act") that are incorporated by reference in this registration
statement.
(2) That, for the purpose of determining any liability under the 1933
Act, 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.
(b) That, for purposes of determining any liability under the 1933 Act, each
filing of the registrant's annual report pursuant to section 13(a) or section
15(d) of the Exchange Act that is incorporated by reference in this registration
statement shall be deemed to be a new registration statement relating to the
securities offered thereby, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the 1933 Act may be
permitted to directors, officers and controlling persons of the registrant
pursuant to the provisions referred to in Item 15 of this registration
statement, or otherwise, the registrant has been advised that in the opinion of
the SEC such indemnification is against public policy as expressed in the 1933
Act and is, therefore, unenforceable. In
II-3
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 1933 Act
and will be governed by the final adjudication of such issue.
(d) The registrant hereby undertakes that:
(1) For purposes of determining any liability under the 1933 Act, the
information omitted from the form of prospectus filed as part of this
registration statement in reliance upon Rule 430A and contained in a form of
prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the 1933 Act shall be deemed to be part of this registration statement as
of the time it was declared effective.
(2) For the purpose of determining any liability under the 1933 Act,
each post-effective amendment that contains a form of prospectus 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.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Chicago, State of Illinois, on March 26, 2001.
EXELON CORPORATION
By: /s/ John W. Rowe
---------------------------------
Name: John W. Rowe
Title: Co-Chief Executive Officer
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature
appears below constitutes and appoints Corbin A. McNeill and John W. Rowe and
each or any one of them, his true and lawful attorneys-in-fact and agents, with
full power of substitution and resubstitution, for him and in his 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 relating to any offering made pursuant to this registration statement
that is to be effective upon filing pursuant to Rule 462(b) under the Securities
Act, and to file the same, with all exhibits thereto, and other documents in
connection therewith, with the SEC, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to perform each and every act
and thing requisite and necessary to be done in connection therewith, as fully
to all intents and purposes as he might or could do in person, hereby ratifying
and confirming all that said attorneys-in-fact and agents, or any of them, or
his or their substitute or substitutes, may lawfully do or cause to be done by
virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons in the
capacities and on the date indicated.
Signature Title Date
- --------- ----- ----
/s/ Corbin A. McNeill Corbin A. McNeill March 23, 2001
- ------------------------------------ ----------------------------
Corbin A. McNeill (Principal Co-Executive
Officer)
/s/ John W. Rowe John W. Rowe March 23, 2001
- ------------------------------------ ----------------------------
John W. Rowe (Principal Co-Executive
Officer)
II-5
/s/ Ruthann Gillis Ruthann Gillis March 23, 2001
- ------------------------------------ ----------------------------
Ruthann Gillis (Principal Financial
Officer)
/s/ Jean Gibson Jean Gibson March 23, 2001
- ------------------------------------ ----------------------------
Jean Gibson (Principal Accounting
Officer)
/s/ Edward A. Brennan Director March 23, 2001
- ------------------------------------
Edward A. Brennan
Director March 23, 2001
- ------------------------------------
Carlos H. Cantu
Director March 23, 2001
- ------------------------------------
Daniel L. Cooper
/s/ M. Walter D'Alessio Director March 23, 2001
- ------------------------------------
M. Walter D'Alessio
/s/ G. Fred DiBona, Jr. Director March 23, 2001
- ------------------------------------
G. Fred DiBona, Jr.
/s/ Bruce DeMars Director March 23, 2001
- ------------------------------------
Bruce DeMars
Director March 23, 2001
- ------------------------------------
Sue L. Gin
/s/ Richard H. Glanton Director March 23, 2001
- ------------------------------------
Richard H. Glanton
II-6
Director March 23, 2001
- ------------------------------------
Rosemarie B. Greco
/s/ Edgar D. Jannotta Director March 23, 2001
- ------------------------------------
Edgar D. Jannotta
/s/ Corbin A. McNeill, Jr. Director March 23, 2001
- ------------------------------------
Corbin A. McNeill, Jr.
/s/ John H. Palms, Ph.D. Director March 23, 2001
- ------------------------------------
John H. Palms, Ph.D.
/s/ John W. Rogers, Jr. Director March 23, 2001
- ------------------------------------
John W. Rogers, Jr.
/s/ John W. Rowe Director March 23, 2001
- ------------------------------------
John W. Rowe
/s/ Ronald Rubin Director March 23, 2001
- ------------------------------------
Ronald Rubin
/s/ Richard L. Thomas Director March 23, 2001
- ------------------------------------
Richard L. Thomas
II-7
EXHIBIT INDEX
Exhibit No. Exhibit
- -------------- ---------
1.1 Form of Underwriting Agreement
3.1 Amended and Restated Articles of Incorporation of Exelon Corporation
(incorporated by reference to Exhibit 3.1 of Exelon's Registration
Statement on Form S-4 (Registration No. 333-37082))
3.2 Bylaws of Exelon Corporation (incorporated by reference to Exhibit 3.2
of Exelon's Registration Statement on Form S-4 (Registration No.
333-37082))
4.1 Form of Indenture between Exelon Corporation and the trustee named
therein
5.1 Opinion of Ballard Spahr Andrews & Ingersoll, LLP regarding the
legality of the securities
12.1 Statement re: Computation of Ratios
23.1 Consent of PricewaterhouseCoopers LLP
23.2 Consent of Arthur Andersen LLP
23.3 Consent of Ballard Spahr Andrews & Ingersoll, LLP (included in the
opinion filed as Exhibit 5.1 to this Registration Statement)
24.1 Power of Attorney from officers and directors (included in the
signature pages hereto)
25.1 Form T-1 Statement of Eligibility under the Trust Indenture Act of
1939, as amended, of Bank One, National Association, as candidate for
trustee under the Indenture
25.2 Form T-1 Statement of Eligibility under the Trust Indenture Act of
1939, as amended, of BNY Midwest Trust Company, as candidate for
trustee under the Indenture
25.3 Form T-1 Statement of Eligibility under the Trust Indenture Act of
1939, as amended, of LaSalle Bank National Association, as candidate
for trustee under the Indenture
EXELON CORPORATION
PURCHASE AGREEMENT
AGREEMENT made among EXELON CORPORATION (Company) and the several
persons, firms and corporations (Purchasers) named as purchasers in Exhibit A
attached hereto as such Exhibit A may be revised from time to time and dated as
of the date of such Exhibit A.
WITNESSETH:
In consideration of the mutual covenants and agreements herein
contained and intending to be legally bound hereby, it is agreed among the
parties as follows:
SECTION 1. Registration and Issue of Debt Securities. The Company
proposes to issue, in series, an aggregate principal amount of $1,500,000,000.00
of its senior unsecured debt securities (each series and collectively, Debt
Securities), under the Indenture dated as of __________, 2001 between the
Company and ___________________________________________________, Trustee, as
supplemented and amended from time to time. The Company has filed with the
Securities and Exchange Commission (Commission) a registration statement on Form
S-3 under Rule 415 of the Securities Act of 1933, as amended (Securities Act),
relating to the Debt Securities, and such registration statement has become
effective. The Company proposes to file with the Commission, if required, a
post-effective amendment to such registration statement (Post-Effective
Amendment), or amended prospectus or prospectus supplement, including
information relating to the Purchasers, the price and terms of offering, and the
interest rate and redemption provisions and prices of the Debt Securities, as
soon as practicable after this Agreement becomes effective. Copies of such
registration statement, as amended to the date hereof, have been delivered to
the representatives of the Purchasers (Representative). Such registration
statement as amended at the time the Post-Effective Amendment, if any, shall
have become effective, or at the time this Agreement shall have become
effective, whichever is later, including the financial statements and exhibits
and each of the documents incorporated by reference in such registration
statement, is herein called the "Registration Statement," and the prospectus
relating to the Debt Securities as it may be amended or supplemented and filed
with the Commission pursuant to Rule 424(b) under the Securities Act, including
each of the documents incorporated by reference therein, is herein called the
"Prospectus." The Representative has advised the Company that the Purchasers
propose to make a public offering of the Debt Securities.
SECTION 2. Agreement and Warranty by Representative. The Representative
agrees forthwith to furnish to the Company in writing (i) such information as to
the Purchasers and the public offering of the Debt Securities as is required to
complete any Post-Effective Amendment, or amended or supplemented Prospectus,
and (ii) an appropriate consent to the filing of any Post-Effective Amendment or
Prospectus. The Representative warrants that it has been authorized by the
Purchasers to enter into this Agreement on their behalf and to act for them in
the manner herein provided.
SECTION 3. Purchase and Sale. Upon the basis of the representations and
warranties but subject to the terms and conditions herein set forth, the Company
agrees to sell to the several Purchasers and they agree to purchase from the
Company, severally and not jointly, at the price specified in Exhibit A hereto,
the respective principal amounts of Debt Securities set opposite their names in
Exhibit A.
SECTION 4. Payment for and Delivery of Debt Securities. (a) Payment of
the purchase price for the Debt Securities shall be made by or on behalf of the
several Purchasers by wire transfers payable to the order of the Company in
Federal Reserve fund at the office of ________________________
________________________________________________________________________________
at 10 A.M., ____________ Time, on the third business day following the date of
Exhibit A or at such later time and date as shall be agreed upon by the Company
and the Representative, upon delivery of the Debt Securities to the
Representative at said office (or such other place or places as shall be agreed
upon between the Company and the Representative) for the account of the several
Purchasers. The time and date of such payment and delivery is herein referred to
as the "Closing."
(b) At the Closing, the Debt Securities shall be delivered in
registered form without coupons in denominations of $1,000 or any multiple
thereof registered in such name or names as the Representative may request not
later than 5 P.M., ____________ Time, on the second full business day prior to
the Closing, or, if no such request is received, in the names of the respective
Purchasers in denominations selected by the Company. The Debt Securities, other
than Debt Securities in blank denominations, shall meet the printing and
engraving requirements of the New York Stock Exchange and the Debt Securities
shall be transferable and exchangeable as provided in the Indenture. The Company
shall make the Debt Securities available to the Representative for examination
at least 24 hours prior to the Closing.
(c) If at the Closing any Purchaser shall fail or refuse to purchase
and pay for the principal amount of Debt Securities set forth opposite its name
in Exhibit A hereto, in accordance with the terms hereof, and the aggregate
principal amount of the Debt Securities which all such defaulting Purchasers
agreed but failed to purchase is not more than one-eleventh of the aggregate
principal amount of the Debt Securities, the Company shall immediately notify
the Representative, and the amount of the Debt Securities that the remaining
Purchasers shall be obligated to purchase under this Agreement, subject to the
provisions of Section 9 hereof, shall be automatically increased pro rata to
absorb the unpurchased Debt Securities; except that in no event shall the
maximum principal amount of the Debt Securities which any Purchaser has become
obligated to purchase pursuant to Section 3 hereof be increased pursuant to this
Section 4 by more than one-tenth of such principal amount of the Debt Securities
without the written consent of such Purchaser. If any unpurchased Debt
Securities still remain, the Company may elect (i) to terminate this Agreement
by notice to the Representative; (ii) to consummate the sale except as to any
unpurchased Debt Securities so remaining; or (iii) to make arrangements within
the next succeeding 24 hours satisfactory to the remaining Purchasers for the
purchase of such Debt Securities. In any of such cases, either the
Representative or the Company shall have the right to postpone the Closing for
not more than five business days. If the Company shall not elect to consummate
the sale of less than all the Debt Securities and any unpurchased Debt
Securities remain for which no satisfactory substitute Purchaser is obtained in
accordance with the above provisions, then this Agreement shall terminate. None
of the provisions of this paragraph (c) shall in any way affect or limit the
Company's rights as against any defaulting Purchaser for damages occasioned by
such Purchaser's default hereunder.
SECTION 5. Conditions of Purchasers' Obligations. The obligations of
the several Purchasers to purchase and pay for the Debt Securities are subject
to the following conditions:
(a) At the Closing, there shall be in full force and effect an Order
issued by the Commission under the Public Utility Holding Company Act of 1935,
as amended ("PUHCA), permitting the issuance and sale of the Debt Securities and
the transactions relating thereto substantially in accordance with the terms and
conditions herein set forth and containing no provision unacceptable to the
Representative, it being understood that the Order in effect as of the date of
this Agreement (a copy of which is available at the office of the Company for
examination by the Representative) does not contain any such unacceptable
provision, and that no subsequent Notice shall be deemed to contain any such
unacceptable provision, unless the Representative, within 24 hours after
receiving a copy thereof from the Company, shall give notice to the Company to
the effect that such Notice contains an unacceptable provision.
2
(b) At the Closing:
(i) no stop order suspending the effectiveness of the Registration
Statement shall be in effect and no proceedings for that purpose shall
be pending before, or threatened by, the Commission;
(ii) the Indenture shall have become and be qualified under the
Trust Indenture Act of 1939, as amended (Trust Indenture Act);
(iii) subsequent to the date of the most recent financial
statements incorporated by reference in the Prospectus as of the
effective date of this Agreement, there shall have been no material
adverse change in the financial condition, business or results of
operations of the Company and its subsidiaries, considered as a whole,
except as set forth in the Registration Statement and the Prospectus,
including the documents incorporated by reference therein, as of the
effective date of this Agreement;
(iv) the Company shall have performed all agreements contained
herein to be performed by it at or prior to such date; and
(v) the representations and warranties of the Company contained
herein shall be true and correct in all material respects;
and the Representative shall have received, prior to payment for the Debt
Securities, a certificate, dated the day of the Closing and signed by the
President or a Vice President of the Company, to such effect.
(c) At the Closing and simultaneously with the issuance and sale of the
Debt Securities, the Representative shall be furnished with the following
opinions or letters, with reproduction copies or signed counterparts thereof for
each of the other Purchasers:
(i) a favorable opinion, dated the Closing date, of Ballard Spahr
Andrews & Ingersoll, LLP (counsel for the Company), substantially in
the form of the draft thereof heretofore made available for examination
at the office of the Company at any time during business hours;
(ii) a favorable opinion, dated the Closing date, of
______________________ (counsel for the Purchasers), substantially in
the form of the draft thereof heretofore made available for examination
at the office of the Company at any time during business hours; and
(iii) a letter of PricewaterhouseCoopers LLP, dated the Closing
date, substantially in the form of the draft thereof heretofore made
available for examination at the office of the Company at any time
during business hours.
SECTION 6. Conditions of Company's Obligations. The obligations of the
Company to deliver the Debt Securities are subject to the following conditions:
(a) At the Closing, no stop order suspending the effectiveness of the
Registration Statement shall be in effect and no proceedings for that purpose
shall be pending before, or threatened by, the Commission;
(b) At the Closing, there shall be in full force and effect an Order
issued by the Commission under PUHCA permitting the issuance and sale of the
Debt Securities and the transactions relating thereto substantially in
accordance with the terms and conditions herein set forth and containing no
provision unacceptable to the Company, it being understood that the Order in
effect as of the date of this Agreement does not contain any such unacceptable
provision, and that no subsequent Order shall be deemed to contain any such
unacceptable provision, unless the Company, within 24 hours after receiving a
copy thereof, shall have given notice to the Representative to the effect that
such notice contains an unacceptable provision.
3
(c) The Indenture shall have become and be qualified under the Trust
Indenture Act; and
(d) At the Closing, the Company shall concurrently deliver and receive
payment for all of the Debt Securities unless it shall have elected to proceed
with the sale of less than all of the Debt Securities pursuant to the provisions
of paragraph (c) of Section 4 hereof.
SECTION 7. Covenants of the Company. The Company agrees as follows:
(a) The Company will file any required Post-Effective Amendment or
amended or supplemented Prospectus, as soon as practicable. Before filing any
other amendments to the Registration Statement or making any supplements to the
Prospectus, other than Securities Exchange Act of 1934, as amended (Exchange
Act), filings incorporated therein by reference, the Company will provide the
Representative with copies of any such proposed amendments or supplements, and
will not file any such amendment to which the Representative shall reasonably
object in writing.
(b) As soon as the Company is advised thereof, it will promptly advise
the Representative orally, and (if requested by the Representative) will confirm
such advice in writing, (i) when the Post-Effective Amendment, if any, has
become effective, (ii) when any other amendment to the Registration Statement
has become effective or any amendment or supplement to the Prospectus has been
filed, (iii) when any stop order has been issued under the Securities Act with
respect to the Registration Statement or any proceedings therefor have been
instituted or are threatened; and it will make every reasonable effort to secure
the prompt removal of any stop order, if issued, (iv) of the suspension of the
Debt Securities for offering or sale in any jurisdiction, and (v) of the
happening of any event during the period mentioned in subparagraph (d) below
which in the judgment of the Company makes any statement of a material fact made
in the Registration Statement or the Prospectus untrue and which requires the
making of any changes in the Registration Statement or the Prospectus in order
to make such statements therein not misleading.
(c) The Company will, at or prior to the Closing, deliver to the
Representative and also to Counsel for the Purchasers:
(i) a copy of the Registration Statement as originally filed and
of each amendment thereto, each signed by or on behalf of the proper
officers of the Company and a majority of its Board of Directors,
including financial statements and schedules, if any, all exhibits
thereto (other than those incorporated therein by reference) and all
documents incorporated therein by reference; and
(ii) such other documents (including copies of the Registration
Statement and of any amendments thereto, in each case without
exhibits), appropriately certified if so requested, relating to the
issuance and validity of the Debt Securities as the Representative and
Counsel for the Purchasers may reasonably request.
(d) Promptly after the effective date of this Agreement and extending
for any period of time thereafter (not exceeding nine months) during which a
Purchaser may be required by law to deliver a Prospectus, the Company will
furnish to the Purchasers, without charge, as many copies of the Prospectus (as
supplemented or amended if the Company shall have made any supplements or
amendments thereto) as the Representative may reasonably request. If any event
shall occur which should be set forth in a supplement to or an amendment of the
Prospectus in order to make the Prospectus not misleading when it is delivered
to a Purchaser, or if it is necessary to supplement or amend the Prospectus to
comply with law, the Company will, during the aforesaid period of time,
forthwith, prepare and duly file with the Commission an appropriate supplement
or amendment thereto, and will at its expense, prepare and furnish to the
Representative such reasonable number of copies thereof as the Representative
shall reasonably request. If any Purchaser is required to deliver a Prospectus
after the expiration of the aforesaid period, the Company will, if requested by
the Representative and in each case at the expense of
4
such Purchaser, furnish Prospectuses and supplements and amendments thereto, as
aforesaid, or furnish a reasonable quantity of a supplemented prospectus or of
supplements to the Prospectus complying with Section 10(a)(3) of the Securities
Act.
(e) The Company will make generally available to its security holders a
consolidated earnings statement (which need not be audited) for the twelve
months ended _____________, or, if later, for the twelve months ended after the
date deemed to be the effective date of the Registration Statement pursuant to
Rule 158 promulgated under the Securities Act, or successor provision of law,
rule or regulation, as soon as is reasonably practicable after the end of such
period, which earnings statement shall satisfy the provisions of Section 11(a)
of the Securities Act.
(f) So long as any of the Debt Securities shall remain outstanding, the
Company will furnish to each Purchaser, upon request, (i) a copy of the annual
financial statements of the Company and consolidated subsidiaries, including
balance sheets and statements of income, retained earnings and changes in cash
flows, in the form made generally available to investors and other interested
persons, and (ii) copies of such documents, reports and other information as may
be required under the Indenture to be furnished to holders of the Debt
Securities.
(g) The Company will pay all expenses in connection with the
preparation and filing of the Registration Statement and the Prospectus; the
issuance and delivery of the Debt Securities; the preparation of the Indenture
and indentures supplemental thereto; the printing and delivery of copies of the
Registration Statement, the Prospectus, the preliminary and final forms of the
"Blue Sky" memorandum and the legal investment opinion, if any; the listing, if
any, of the Debt Securities on the New York, [American] and [Philadelphia] Stock
Exchanges; and the rating of the Debt Securities by any securities rating
agency; and will pay all federal and other taxes (except transfer taxes) on the
issuance of the Debt Securities. The Company will not be required to pay any
amount for any expenses of the Representative or any of the Purchasers or
compensation and disbursements of Counsel for the Purchasers, except as provided
in Section 9(c) hereof.
(h) The Company will cooperate with the Representative and Counsel for
the Purchasers to qualify the Debt Securities for offer and sale by the
Purchasers and dealers selected by them under the securities or "Blue Sky" laws
of such jurisdictions as the Representative may designate, provided that the
Company shall not be required to qualify as a foreign corporation in any
jurisdiction where it is not now so qualified or to take any action which would
subject it to general service of process in any jurisdiction where it is not now
so subject.
SECTION 8. Representations and Warranties; Indemnification.
(a) The Company represents and warrants to each Purchaser that:
(i) the documents incorporated by reference in the Registration
Statement and the Prospectus, when they became effective or were filed
(or, if an amendment with respect to any such document was filed or
became effective, when such amendment was filed or became effective)
with the Commission, as the case may be, conformed in all material
respects to the requirements of the Exchange Act and the rules and
regulations thereunder, and any further documents so filed and
incorporated by reference will, when they become effective or are filed
with the Commission, as the case may be, conform in all material
respects to the requirements of the Exchange Act and the rules and
regulations thereunder; none of such documents, when it became
effective or was filed (or, if an amendment with respect to any such
documents was filed or became effective, when such amendment was filed
or became effective) contained an untrue statement of a material fact
or omitted to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading; and no such further
document, when it becomes effective or is filed, will contain an untrue
statement of a material fact or will omit to state a material fact
required to be
5
stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading;
(ii) the Registration Statement, when it became effective, and the
Prospectus included therein, as it may be amended or supplemented to
the date of this Agreement, complied, and the Post-Effective Amendment,
if any, when it becomes effective, or any amendment or supplement to
the Prospectus when filed, will comply in all material respects with
the applicable provisions of the Securities Act and of the Trust
Indenture Act, and relevant rules and regulations of the Commission
under said Acts, the Registration Statement, when it became effective,
did not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading, and the Prospectus did not
and will not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which
they were made, not misleading, except that this representation and
warranty shall not apply to statements in or omissions from the
Registration Statement and the Prospectus made in reliance upon and in
conformity with information furnished herein or otherwise in writing to
the Company by any Purchaser or by the Representative on behalf of any
Purchaser expressly for use in the Registration Statement or the
Prospectus or to any statements in or omissions from the Statement of
Eligibility and Qualification of the Trustee under the Indenture;
(iii) PricewaterhouseCoopers LLP are independent certified public
accountants as required by the Securities Act and the rules and
regulations of the Commission thereunder;
(iv) the Company is a validly subsisting corporation in good
standing under the laws of the Commonwealth of Pennsylvania. Each of
the Company's subsidiaries which constitutes a "gas utility company" or
an "electric utility company," as defined in the Public Utility Holding
Company Act of 1935, as amended (Utility Subsidiary), is a validly
existing corporation under the laws of its jurisdiction of
incorporation. The Company and each Utility Subsidiary have all
requisite corporate power and authority to own and occupy their
respective properties and carry on their respective businesses as
presently conducted and as described in the Prospectus and are duly
qualified as foreign corporations to do business and in good standing
in every jurisdiction in which the nature of the business conducted or
property owned by them makes such qualification necessary and in which
the failure to so qualify would have a materially adverse effect on the
Company;
(v) the issuance and sale of the Debt Securities and the
fulfillment of the terms of this Agreement and the compliance by the
Company with all the terms and provisions of the Indenture will not
result in a breach of any of the terms or provisions of, or constitute
a default under, the Company's Amended and Restated Articles of
Incorporation or Bylaws or those of any subsidiaries listed in Exhibit
B or any indenture, mortgage, deed of trust or other agreement or
instrument to which the Company or any such subsidiary is now a party,
or any effective order of any court or administrative agency entered in
any proceedings to which the Company was or is now a party or by which
it is bound;
(vi) the Debt Securities and the Indenture have been duly
authorized by the Company and will conform to the description thereof
in the Prospectus; and
(vii) except for (a) the orders of the Commission making the
Registration Statement effective, (b) the Order of the Commission under
PUHCA authorizing the Company to issue and sell the Debt Securities as
contemplated by this Agreement, (c) permits and similar authorizations
required under the securities or "Blue Sky" laws of any jurisdiction,
and (d) to the extent, if any, required pursuant to the Undertakings
set forth in Part II of the Registration Statement, no
6
consent, approval, authorization or other order of any governmental
authority is legally required for the valid issuance and sale of the
Debt Securities.
(b) The Company agrees to indemnify and hold harmless each Purchaser
and each person, if any, who controls any Purchaser within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act from and
against any and all losses, claims, damages, liabilities and expense caused by
any untrue statement or alleged untrue statement of a material fact contained in
any preliminary prospectus or in the Registration Statement or in the Prospectus
(as amended or supplemented if the Company shall have made any amendments or
supplements thereto and if used within any period during which a Purchaser may
be required by law to deliver a Prospectus) or any omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make statements therein not misleading, all in light of the circumstances under
which they were made with respect to the Prospectus, except insofar as such
losses, claims, damages, liabilities or expenses are caused by (i) any such
untrue statement or omission or alleged untrue statement or omission based upon
information furnished herein or otherwise in writing to the Company by any
Purchaser or by the Representative on behalf of any Purchaser expressly for use
therein, or (ii) by any statements or alleged statements in or omissions or
alleged omissions from the Statement of Eligibility and Qualification of the
Trustee under the Indenture, or (iii) the failure of any Purchaser to send to
any purchaser to whom it had sent a preliminary prospectus an amended prospectus
together with such summary of material changes, if any, made therein since the
date of such preliminary prospectus as shall have been furnished by the Company
for such purpose, or (iv) any use of the Prospectus by any Purchaser after the
expiration of that period, if any, during which the Purchaser is required by law
to deliver a prospectus, unless the Company shall have been advised in writing
of such intended use. The term "preliminary prospectus" as used in this
paragraph includes the prospectus first complying with Section 10(a) of the
Securities Act.
(c) Each Purchaser agrees that, promptly upon the receipt of notice of
the commencement of any action or proceeding (including any governmental action)
against such Purchaser or against any person so controlling such Purchaser in
respect of which indemnity or reimbursement may be sought from the Company on
account of its agreement in the next preceding paragraph (b), timely notice will
be given to the Company of the commencement thereof. Thereupon, the Company
shall be entitled to participate in (and, to the extent that it shall desire,
including the selection of counsel reasonably satisfactory to such Purchaser or
controlling person, to direct) the defense thereof and shall in any event be
liable to pay all fees and expenses thereof. Any Purchaser or any such
controlling person shall have the right to employ separate counsel, but if the
Company has selected counsel in any such case, such employment by a Purchaser or
controlling person shall be at its expense unless (i) the employment of such
separate counsel has been authorized in writing by the Company and the Company
shall have agreed to pay such expense or (ii) the Company and the Purchaser or
controlling person shall have received an opinion of counsel stating that the
representation of both parties by the same counsel would be inappropriate due to
actual differing defenses between them. It is understood that the Company shall
not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm
(in addition to any local counsel) for all such Purchasers and controlling
persons, and that all such fees and expenses shall be reimbursed as they are
incurred. Such counsel shall be designated in writing by the Representative and
consented to by the Company, which consent shall not be unreasonably withheld.
The Company shall not be liable for any settlement of any such action or
proceeding effected without its written consent, but if settled with its written
consent, or if there be a final judgment for the plaintiff in any such action or
proceeding, the Company agrees to indemnify and hold harmless each Purchaser and
any such controlling person from and against any loss or liability by reason of
such settlement or judgment. The Company shall not, without the prior written
consent of any such Purchaser or controlling person, effect any settlement of
any pending or threatened proceeding in respect of which any such Purchaser or
controlling person is or could have been a party and indemnity could have been
sought hereunder by any such Purchaser or controlling person, unless such
settlement includes an
7
unconditional release of any such Purchaser or controlling person from all
liability on claims that are the subject matter of such proceeding.
(d) Each Purchaser agrees to indemnify and hold harmless the Company
and its controlling persons, directors, and officers to the same extent as the
foregoing indemnity from the Company to each Purchaser, but only with respect to
any untrue statement or omission or alleged untrue statement or omission based
upon information furnished herein or in writing to the Company by such
Purchaser, or by the Representative on behalf of such Purchaser, expressly for
use in such Registration Statement or Prospectus. In case any action shall be
brought against the Company or any such controlling person, director or officer
in respect of which he or it may seek indemnity or reimbursement from any
Purchaser on account of the agreement of such Purchaser contained in this
paragraph (d), the Purchaser shall have the rights and duties given to the
Company, and the Company and any such controlling person, director or officer
shall have the rights and duties given to the Purchaser, by the next preceding
paragraph (c).
(e) In order to provide for just and equitable contribution in
circumstances in which any indemnity provision provided for in this Section 8 is
for any reason held to be unenforceable by the indemnified parties although
applicable in accordance with its terms (including the requirements of Section
8(c)), then each indemnifying party, in lieu of indemnifying such indemnified
party, shall contribute to the amount paid or payable by such indemnified party
as a result of the losses, liabilities, claims, damages and expenses of the
nature contemplated in said indemnity provision in such proportion as is
equitable and as shall reflect both the relative benefit received by the Company
on the one hand and the Purchaser or Purchasers, as the case may be, on the
other hand from the offering of the Debt Securities, and the relative fault, if
any, of the Company on the one hand and of the Purchaser or Purchasers, as the
case may be, on the other hand in connection with the statements or omissions
which resulted in such losses, liabilities, claims, damages or expenses, as well
as any other relevant equitable considerations. The relative benefit received by
the Company on the one hand and the Purchaser or Purchasers, as the case may be,
on the other hand in connection with the offering of the Debt Securities shall
be deemed to be in the same proportion as the total net proceeds from the
offering of such Debt Securities (before deducting expenses) received by the
Company bear to the total commissions, concessions and discounts received by the
Purchaser or Purchasers, as the case may be. The relative fault shall be
determined by reference to, among things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
the Purchaser or the Purchasers on the other hand and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Company and the Purchasers agree that it would
not be just and equitable if contribution pursuant to this paragraph (e) were
determined by pro rata allocation (even if the Purchasers were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to hereinabove. The amount
paid or payable by an indemnified party as a result of the losses, liabilities,
claims, damages and expenses referred to hereinabove shall be deemed to include
any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. No Purchaser or person
controlling such Purchaser shall be obligated to make contribution hereunder
which in the aggregate exceeds the total public offering price of the Debt
Securities purchased by such Purchaser under this Agreement, less the aggregate
amount of any damages which such Purchaser and its controlling persons have
otherwise been required to pay in respect of the same claim or any substantially
similar claim. The Purchasers' obligations to contribute are several in
proportion to their respective purchasing obligations and not joint.
SECTION 9. Termination and Survival. (a) This Agreement may be
terminated by notice to the Company at any time prior to the expiration of 24
hours after the Post-Effective Amendment, if any, shall have become effective
(but not after the initial public offering of the Debt Securities), by the
8
Representative, with the consent of Purchasers who have agreed to purchase in
the aggregate 50% or more of the principal amount of the Debt Securities if, on
or prior to such date, there shall have occurred any of the following: (i)
trading in securities on the New York Stock Exchange shall have been suspended
or materially limited, or minimum prices have been established on such Exchange,
or any new restrictions on transactions in securities materially affecting the
free market shall have been established by such Exchange, by the Commission, by
any other federal or state agency, by action of the Congress or by Executive
Order; (ii) a general moratorium on commercial banking activities in New York
shall have been declared by either federal or New York State authorities; or
(iii) there shall have occurred any outbreak or escalation of hostilities or any
calamity or crisis of comparable magnitude that, in the judgment of the
Representative, is material and adverse and such event specified in this clause
(iii) in the reasonable judgment of the Representative makes it impracticable or
inadvisable to proceed with the public offering or the delivery of the Debt
Securities on the terms and in the manner contemplated in the Prospectus as
amended or supplemented. The time of the initial public offering for the purpose
of this Section 9 shall be deemed to be the time of the release by the
Representative for publication of a newspaper advertisement referring to the
Debt Securities which is subsequently published, or the time at which the Debt
Securities are first generally offered by the Purchasers to the public or to
dealers by letter or telegram or otherwise, whichever shall first occur.
(b) This Agreement shall terminate:
(i) if any unpurchased Debt Securities remain for which no
substitute Purchaser is obtained in accordance with the provisions of
Section 4(c) hereof, and the Company shall not elect to proceed with
the sale and delivery hereunder of less than all of the Debt
Securities;
(ii) if any of the conditions specified in Section 5 hereof shall
not have been fulfilled and the Representative shall give notice to the
Company that this Agreement is terminated by reason thereof; or
(iii) if any of the conditions specified in Section 6 hereof shall
not have been fulfilled and the Company shall give notice to the
Representative that this Agreement is terminated by reason thereof.
(c) If this Agreement shall terminate as provided in Section 9(a) or
(b), no Purchaser shall be under any liability to the Company, and the Company
shall not be under any liability to any Purchaser except:
(i) as specifically provided in the last sentence of Section 4(c);
(ii) as provided in Section 9(d); and
(iii) that the Company shall, unless such termination shall be
under the provisions of Section 9(b)(i), pay the Representative, for
the account of the Purchasers severally, the amount of their
out-of-pocket expenses (but not exceeding $5,000, in the aggregate, in
addition to the fee and disbursements of Counsel for the Purchasers, a
statement of the amount of such fee and estimate of such disbursements
having been furnished to the Company) reasonably incurred by the
Purchasers hereunder.
The Company will not in any event be liable to any of the several Purchasers for
damages on account of loss of anticipated profits.
(d) The agreements, representations and warranties set forth in
Sections 7 and 8 hereof shall remain operative and in full force and effect,
regardless of any investigation made by or on behalf of any Purchaser or
controlling person or by or on behalf of the Company or any person controlling
the Company, and regardless of acceptance of any payment for the Debt Securities
hereunder; and the
9
agreements, representations and warranties set forth in Sections 7(g) and 8
hereof shall remain operative and in full force and effect, regardless of
termination hereof as above provided or otherwise.
SECTION 10. Notices. All notices and other communications hereunder
shall be in writing (or where oral notice is specified, shall be promptly
confirmed in writing) and, if to the Representative or Purchasers, shall be
mailed with first class postage prepaid, or delivered to the Representative at
its address set forth in Exhibit A hereto and, if to the Company, shall be so
mailed to __________________,_________________________________________
________________________________________________________________________.
SECTION 11. Validity and Interpretation. The validity, construction and
interpretation of this Agreement shall be governed by the laws of the
Commonwealth of Pennsylvania. If signed by a single person, firm or corporation,
as used herein the term "Purchaser" shall mean such single person, firm or
corporation, the term "Representative" shall mean such Purchaser, the term
"Purchasers" shall be read in the singular to mean such Purchaser, and the
provisions of this Agreement shall be deemed appropriately modified to reflect
that it, is an Agreement between the Company and a single Purchaser.
SECTION 12. Succession. This Agreement shall inure to the benefit of
the Company, of the several Purchasers, and with respect to paragraphs (b), (c),
(d) and (e) of Section 8 hereof, of each controlling person and of each director
and officer of the Company or of the several Purchasers referred to in said
paragraphs, and, in each case, their respective successors, assigns, executors
and administrators. Nothing in this Agreement is intended or shall be construed
to give to any other person, firm or corporation any legal or equitable right,
remedy or claim under or in respect to this Agreement or any provision herein
contained. The terms "successors" and "assigns" as used in this Agreement shall
not include any purchaser, as such purchaser, of any of the Debt Securities from
any of the several Purchasers.
SECTION 13. Effective Date. This Agreement shall become effective upon
the execution of Exhibit A hereto.
10
EXHIBIT A
to
PURCHASE AGREEMENT
Dated: _____________, 2____
Subject to all the terms and conditions of the Purchase Agreement, the
Company agrees to sell to each Purchaser named below, for whom the undersigned
Representative is acting as Representative, and each Purchaser agrees, severally
and not jointly, to purchase from the Company, subject to all the terms and
conditions of the Purchase Agreement, the principal amount of Debt Securities
set forth opposite the name of such Purchaser, to be issued under the Indenture,
including indentures supplemental thereto, as follows:
Series of Debt Securities Interest Rate Per Annum Price Per Debt Security Date of Issuance
------------------------- ----------------------- ----------------------- ----------------
The undersigned represents and warrants that it has been and is fully
authorized by all the Purchasers named below to enter into the Purchase
Agreement, including this Exhibit A, which is attached thereto and made a part
thereof, on their behalf.
Principal Amount
Name of Purchaser of Debt Securities
--------------
Total: $
==============
Pursuant to Section 10 of the Purchase Agreement, notice to the
Representative shall be given to _______________, as Representative, at
_________________.
Executed as of the date first above mentioned, on behalf of the
Representative and the other several Purchasers named above.
------------------------------------
(Name of Representative)
BY:_________________________________
EXELON CORPORATION
BY:________________________________
INDENTURE
by and between
EXELON CORPORATION
and
------------------
Dated: ______________, 2001
ARTICLE I DEFINITIONS.............................................................................................5
SECTION 1.1. Certain Terms Defined.............................................................................5
ARTICLE II SECURITIES.............................................................................................9
SECTION 2.1. Forms Generally...................................................................................9
SECTION 2.2. Form Of Trustee's Certificate Of Authentication...................................................9
SECTION 2.3. Amount Unlimited; Issuable In Series.............................................................10
SECTION 2.4. Authentication And Delivery Of Securities........................................................12
SECTION 2.5. Execution Of Securities..........................................................................14
SECTION 2.6. Certificate Of Authentication....................................................................14
SECTION 2.7. Denomination And Date Of Securities; Payment Of Interest.........................................15
SECTION 2.8. Registration, Transfer And Exchange..............................................................15
SECTION 2.9. Mutilated, Defaced, Destroyed, Lost And Stolen Securities........................................18
SECTION 2.10. Cancellation Of Securities; Destruction Thereof.................................................18
SECTION 2.11. Temporary Securities............................................................................19
ARTICLE III COVENANTS OF THE ISSUER..............................................................................19
SECTION 3.1. Payment Of Principal And Interest................................................................19
SECTION 3.2. Offices For Payments, Etc........................................................................20
SECTION 3.3. Appointment To Fill A Vacancy In Office Of Trustee...............................................20
SECTION 3.4. Paying Agents....................................................................................20
SECTION 3.5. Compliance Certificates..........................................................................21
SECTION 3.6. Corporate Existence..............................................................................21
SECTION 3.7. Payment Of Taxes And Other Claims................................................................22
SECTION 3.8. The Issuer May Not Merge.........................................................................22
ARTICLE IV SECURITYHOLDER LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE........................................23
SECTION 4.1. Issuer To Furnish Trustee Information As To Names And Addresses Of Securityholders...............23
SECTION 4.2. Reports By The Issuer............................................................................23
SECTION 4.3. Reports By The Trustee...........................................................................23
ARTICLE V REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT........................................25
SECTION 5.1. Event Of Default Defined, Acceleration Of Maturity; Waiver Of Default............................25
SECTION 5.2. Collection Of Indebtedness By Trustee; Trustee May Prove Debt....................................28
SECTION 5.3. Application Of Proceeds..........................................................................29
SECTION 5.4. Suits For Enforcement............................................................................30
SECTION 5.5. Restoration Of Rights On Abandonment Of Proceedings..............................................30
SECTION 5.6. Limitations On Suits By Security Holders.........................................................31
SECTION 5.7. Unconditional Right Of Securityholders To Institute Certain Suits................................31
SECTION 5.8. Powers And Remedies Cumulative; Delay Or Omission Not Waiver Of Default..........................31
SECTION 5.9. Control By Holders Of Securities.................................................................32
SECTION 5.10. Waiver Of Past Defaults.........................................................................32
SECTION 5.11. Trustee To Give Notice Of Default, But May Withhold In Certain Circumstances....................33
SECTION 5.12. Right Of Court To Require Filing Of Undertaking To Pay Costs....................................33
ARTICLE VI CONCERNING THE TRUSTEE................................................................................34
SECTION 6.1. Duties And Responsibilities Of The Trustee; During Default; Prior To Default.....................34
SECTION 6.2. Certain Rights Of The Trustee....................................................................35
SECTION 6.3. Trustee Not Responsible For Recitals, Disposition Of Securities Or Application Of Proceeds
Thereof.................................................................................................36
SECTION 6.4. Trustee And Agents May Hold Securities; Collections, Etc.........................................36
SECTION 6.5. Held By Trustee..................................................................................36
SECTION 6.6. Compensation And Indemnification Of Trustee And Its Prior Claim..................................36
SECTION 6.7. Right Of Trustee To Rely On Officer's Certificate, Etc...........................................37
SECTION 6.8. Indentures Not Creating Potential Conflict Ing Interests For The Trustee.........................37
SECTION 6.9. Qualification Of Trustee; Conflicting Inter Ests.................................................37
SECTION 6.10. Persons Eligible For Appointment As Trustee.....................................................37
SECTION 6.11. Resignation And Removal; Appointment Of Successor Trustee.......................................38
SECTION 6.12. Acceptance Of Appointment By Successor Trustee..................................................39
SECTION 6.13. Merger, Conversion, Consolidation Or Succession To Business Of Trustee..........................40
SECTION 6.14. Preferential Collection Of Claims Against The Issuer............................................41
SECTION 6.15. Appointment Of Authenticating Agent.............................................................41
ARTICLE VII CONCERNING THE SECURITYHOLDERS.......................................................................42
SECTION 7.1. Evidence Of Action Taken By Securityholders......................................................42
SECTION 7.2. Proof Of Execution Of Instruments And Of Holding Of Securities...................................42
SECTION 7.3. Holders To Be Treated As Owners..................................................................42
SECTION 7.4. Securities Owned By Issuer Deemed Not Outstanding................................................42
SECTION 7.5. Right Of Revocation Of Action Taken..............................................................43
ARTICLE VIII SUPPLEMENTAL INDENTURES.............................................................................43
SECTION 8.1. Supplemental Indentures Without Consent Of Securityholders.......................................43
SECTION 8.2. Supplemental Indentures With Consent Of Securityholders..........................................44
SECTION 8.3. Effect Of Supplemental Indenture.................................................................46
SECTION 8.4. Documents To Be Given To Trustee.................................................................46
SECTION 8.5. Notation On Securities In Respect Of Supple Mental Indentures....................................46
ARTICLE IX SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS............................................46
SECTION 9.1. Satisfaction And Discharge Of Indenture..........................................................46
SECTION 9.2. Application By Trustee Of Funds Deposited For Payment Of Securities..............................50
SECTION 9.3. Repayment Of Moneys Held By Paying Agent.........................................................51
SECTION 9.4. Return Of Moneys Held By Trustee And Paying Agent Unclaimed For Two Years........................51
SECTION 9.5. Indemnity For U.S. Government Of Obligations.....................................................51
3
ARTICLE X MISCELLANEOUS PROVISIONS...............................................................................52
SECTION 10.1. Incorporators, Shareholders, Officers And Directors Of Issuer Exempt From Individual Liability..52
SECTION 10.2. Provisions Of Indenture For The Sole Benefit Of Parties And Holders Of Securities...............52
SECTION 10.3. Successors And Assigns Of Issuer Bound By Indenture.............................................52
SECTION 10.4. Notices And Demands On Issuer, Trustee And Holders Of Securities................................52
SECTION 10.5. Officer's Certificates And Opinions Of Counsel; Statements To Be Contained Therein..............53
SECTION 10.6. Payments Due On Saturdays, Sundays And Holidays.................................................54
SECTION 10.7. Conflict Of Any Provision Of Indenture With Trust Indenture Act.................................54
SECTION 10.8. PENNSYLVANIA LAW TO GOVERN......................................................................54
SECTION 10.9. Counterparts....................................................................................54
SECTION 10.10. Effect Of Headings.............................................................................54
ARTICLE XI REDEMPTION OF SECURITIES AND SINKING FUNDS............................................................55
SECTION 11.1. Applicability Of Article........................................................................55
SECTION 11.2. Notice Of Redemption; Partial Redemptions.......................................................55
SECTION 11.3. Payment Of Securities Called For Redemption.....................................................56
SECTION 11.4. Exclusion Of Certain Securities From Eligibility For Selection For Redemption...................56
SECTION 11.5. Mandatory And Optional Sinking Funds............................................................57
4
THIS INDENTURE, dated as of ______________________, by and between
EXELON CORPORATION, a Pennsylvania corporation (the "Issuer"), and
________________________, as trustee (the "Trustee"),
W I T N E S S E T H:
WHEREAS, the Issuer has duly authorized the issue from time to time of
its unsecured debentures, notes or other evidences of indebtedness to be issued
in one or more series (the "Securities") up to such principal amount or amounts
as may from time to time be authorized in accordance with the terms of this
Indenture;
WHEREAS, the Issuer has duly authorized the execution and delivery of
this Indenture to provide, among other things, for the authentication, delivery
and administration of the Securities; and
WHEREAS, all things necessary to make this Indenture a valid indenture
and agreement according to its terms have been done;
NOW, THEREFORE, in consideration of the premises and the purchases of
the Securities by the holders thereof, and intending to be legally bound hereby,
the Issuer and the Trustee mutually covenant and agree for the equal and
proportionate benefit of the respective holders from time to time of the
Securities and of the coupons, if any, appertaining thereto as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1 Certain Terms Defined. The following terms (except as
otherwise expressly provided or unless the context otherwise clearly requires)
for all purposes of this Indenture and of any indenture supplemental hereto
shall have the respective meanings specified in this Section. All other terms
used in this Indenture that are defined in the Trust Indenture Act of 1939, as
amended (the "Trust Indenture Act"), or the definitions of which in the
Securities Act of 1933, as amended (the "Securities Act"), are referred to in
the Trust Indenture Act, including terms defined therein by reference to the
Securities Act (except as herein otherwise expressly provided or unless the
context otherwise requires), shall have the meaning assigned to such terms in
the Trust Indenture Act and in the Securities Act as in effect from time to
time. All accounting terms used herein and not expressly defined shall have the
meanings assigned to such terms in accordance with generally accepted accounting
principles, and the term "generally accepted accounting principles" means such
accounting principles as are generally accepted at the time of any computation
unless a different time shall be specified with respect to such series of
Securities as provided for in Section 2.3. The words "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. The terms
defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular.
5
"Affiliate" has the same meaning as given to that term in Rule 405 of
the Securities Act or any successor provision.
"Authenticating Agent" shall have the meaning set forth in Section
6.15.
"Board of Directors" means either the Board of Directors of the Issuer
or any committee of such Board duly authorized to act on its behalf.
"Board Resolution" means a copy of one or more resolutions, certified
by the secretary or an assistant secretary of the Issuer to have been duly
adopted or consented to by the Board of Directors and to be in full force and
effect, and delivered to the Trustee.
"Business Day" means, with respect to any Security, a day that is not a
day on which banking institutions in the city (or in any of the cities, if more
than one) in which amounts are payable, as specified in the form of such
Security, are authorized or required by any applicable law or regulation to be
closed.
"Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Exchange Act, or if at any time after the
execution and delivery of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties on such date.
"Corporate Trust Office" means the office of the Trustee at which the
corporate trust business of the Trustee shall, at any particular time, be
principally administered, which office is, as of the date of this Indenture,
located at __________________________________________.
"Covenant Defeasance" shall have the meaning set forth in Section
9.1(d).
"Depository" means, with respect to the Securities of any series
issuable or issued in the form of one or more Registered Global Securities, the
Person designated as Depository by the Issuer pursuant to Section 2.3 until a
successor Depository shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter "Depository" shall mean or include
each Person who is then a Depository hereunder, and if at any time there is more
than one such Person, "Depository" as used with respect to the Securities of any
such series shall mean the Depository with respect to the Registered Global
Securities of that series.
"Dollar" or "$" means the coin or currency of the United States of
America as at the time of payment is legal tender for the payment of public and
private debts.
"Event of Default" means any event or condition specified as such in
Section 5.1.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Holder," "Holder of Securities," "Securityholder" or any other similar
term means the person in whose name such Security is registered in the security
register kept by the Issuer for that purpose in accordance with the terms
hereof.
6
"Indenture" means this instrument as originally executed and delivered
or, if amended or supplemented as herein provided, as so amended or supplemented
or both, and shall include the forms and terms of particular series of
Securities established as contemplated hereunder.
"IRS" means the Internal Revenue Service of the United States
Department of the Treasury, or any successor entity.
"Issuer" means Exelon Corporation, a Pennsylvania corporation, and its
successors and assigns.
"Issuer Order" means a written statement, request or order of the
Issuer signed in its name by the chairman of the Board of Directors, the
president, any vice president or the treasurer of the Issuer.
"Non-U.S. Person" means any person that is not a "U.S. person" as such
term is defined in Rule 902 of the Securities Act.
"Officer's Certificate" means a certificate signed by the chairman of
the Board of Directors, the president or any vice president or the treasurer of
the Issuer and delivered to the Trustee. Each such certificate shall comply with
Section 314 of the Trust Indenture Act and include the statements provided for
in Section 10.5.
"Opinion of Counsel" means an opinion in writing signed by legal
counsel who may be an employee of the Issuer or other counsel satisfactory to
the Trustee. Each such opinion shall comply with Section 314 of the Trust
Indenture Act and include the statements provided for in Section 10.5.
"Original Issue Date" of any Security (or portion thereof) means the
earlier of (a) the date of such Security or (b) the date of any Security (or
portion thereof) for which such Security was issued (directly or indirectly) on
registration of transfer, exchange or substitution.
"Original Issue Discount Security" means any Security that provides for
an amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the maturity thereof pursuant to Section 5.1.
"Outstanding" (except as otherwise provided in Section 7.4), when used
with reference to Securities, means, subject to the provisions of Section 7.4,
as of any particular time, all Securities authenticated and delivered by the
Trustee under this Indenture, except:
(a) Securities theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;
(b) Securities, or portions thereof, for the payment or redemption
of which moneys or U.S. Government Obligations (as provided for in
Section 9.1) in the necessary amount shall have been deposited in trust
with the Trustee or with any paying agent (other than the Issuer) or
shall have been set aside, segregated and held in trust by the Issuer
for the Holders of such Securities (if the Issuer shall act as its own
paying agent), PROVIDED, that if such Securities, or portions thereof,
are to be redeemed prior to the maturity thereof, notice of such
7
redemption shall have been given as herein provided, or provisions
satisfactory to the Trustee shall have been made for giving such
notice; and
(c) Securities which shall have been paid or in substitution for
which other Securities shall have been authenticated and delivered
pursuant to the terms of Section 2.9 (except with respect to any such
Security as to which proof satisfactory to the Trustee is presented
that such Security is held by a person in whose hands such Security is
a legal, valid and binding obligation of the Issuer). In determining
whether the Holders of the requisite principal amount of Outstanding
Securities of any or all series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the
principal amount of an Original Issue Discount Security that shall be
deemed to be Outstanding for such purposes shall be the amount of the
principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the maturity
thereof pursuant to Section 5.1.
"Periodic Offering" means an offering of Securities of a series from
time to time, the specific terms of which Securities, including, without
limitation, the rate or rates of interest, if any, thereon, the stated maturity
or maturities thereof and the redemption provisions, if any, with respect
thereto, are to be determined by the Issuer or its agents upon the issuance of
such Securities.
"Person" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
"Principal" whenever used with reference to the Securities or any
Security or any portion thereof, shall be deemed to include "and premium, if
any," PROVIDED, HOWEVER, that such inclusion of premium, if any, shall under no
circumstances result in the double counting of such premium for the purpose of
any calculation required hereunder.
"Record date" shall have the meaning set forth in Section 2.7.
"Registered Global Security" means a Security evidencing all or a part
of a series of Registered Securities, issued to the Depository for such series
in accordance with Section 2.4, and bearing the legend prescribed in Section 2.4
and any other legend required by the Depository for such series.
"Registered Security" means any Security registered on the Security
register of the Issuer.
"Responsible Officer" when used with respect to the Trustee means any
officer of the Trustee assigned to administer corporate trust matters to whom
any corporate trust matter is referred because of his or her knowledge of and
familiarity with the particular subject.
"Security" or "Securities" (except as otherwise provided in Section
7.4) has the meaning stated in the first recital of this Indenture, or, as the
case may be, Securities that have been authenticated and delivered under this
Indenture.
8
"Securities Act" means the Securities Act of 1933, as amended.
"Subsidiary" means any corporation or other entity of which at least a
majority of the outstanding stock having the voting power to elect a majority of
the Board of Directors of such corporation (irrespective of whether or not at
the time stock of any other class or classes of such corporation shall have or
might have voting power by reason of the happening of any contingency) is at the
time of determination directly or indirectly owned by the Issuer, or by one or
more of its Subsidiaries, or by the Issuer and one or more of its Subsidiaries.
"Trustee" means the Person identified as "Trustee" in the first
paragraph hereof and, subject to the provisions of Article VI, shall also
include any successor trustee. "Trustee" shall also mean or include each Person
who is then a trustee hereunder, and, if at any time there is more than one such
Person, "Trustee" as used with respect to the Securities of any series shall
mean the trustee with respect to the Securities of such series.
"U.S. Government Obligations" shall have the meaning set forth in
Section 9.1(A).
"Yield to Maturity" means the yield to maturity on a series of
securities, calculated at the time of issuance of such series, or, if
applicable, at the most recent redetermination of interest on such series, and
calculated in accordance with accepted financial practice.
ARTICLE II
SECURITIES
SECTION 2.1. Forms Generally. The Securities of each series shall be
substantially in such form (not inconsistent with this Indenture) as shall be
established by or pursuant to one or more Board Resolutions (as set forth in a
Board Resolution or, to the extent established pursuant to but not set forth in
a Board Resolution, an Officer's Certificate detailing such establishment), in
each case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture and may have imprinted
or otherwise reproduced thereon such legend or legends or endorsements, not
inconsistent with the provisions of this Indenture, as may be required to comply
with any law or with any rules or regulations pursuant thereto, or with any
rules of any securities exchange or to conform to general usage, all as may be
determined by the officers executing such Securities, as evidenced by their
execution of such Securities. The definitive Securities shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers executing such Securities as
evidenced by their execution of such Securities.
SECTION 2.2. Form Of Trustee's Certificate Of Authentication. The
Trustee's certificate of authentication on all Securities shall be in
substantially the following form:
"This is one of the Securities referred to in the within-mentioned
Indenture.
By
------------------------------------------
Authorized Signatory"
9
If at any time there shall be an Authenticating Agent appointed with
respect to any series of Securities, then the Trustee's Certificate of
Authentication to be borne by the Securities of each such series shall be
substantially as follows:
"This is one of the Securities referred to in the within-mentioned
Indenture.
------------------------------------------
as Authenticating Agent
By
------------------------------------------
Authorized Signatory"
SECTION 2.3. Amount Unlimited; Issuable In Series. The aggregate
principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.
The Securities may be issued in one or more series. There shall be
established in or pursuant to one or more Board Resolutions (and to the extent
established pursuant to but not set forth in a Board Resolution, in an Officer's
Certificate detailing such establishment), prior to the initial issuance of
Securities of any series,
(1) the designation of the Securities of the series, which shall
distinguish the Securities of the series from the Securities of all
other series, and which may be part of a series of Securities
previously issued;
(2) any limit upon the aggregate principal amount of the
Securities of the 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 the series pursuant to Section 2.8, 2.9, 2.11, 8.5 or
11.3);
(3) the date or dates on which the principal of the Securities of
the series is payable which may range from nine months to 30 years for
medium term debt securities and 30 years or more for long term debt
securities;
(4) the rate or rates at which the Securities of the series shall
bear interest, if any, the date or dates from which such interest shall
accrue, on which such interest shall be payable, the terms and
conditions of any deferral of interest and the additional interest, if
any, thereon, the right, if any, of the Issuer to extend the interest
payment periods and the duration of the extensions and (in the case of
Registered Securities) the date or dates on which a record shall be
taken for the determination of Holders to whom interest is payable
and/or the method by which such rate or rates or date or dates shall be
determined;
(5) the place or places where and the manner in which, the
principal of and any interest on Securities of the series shall be
payable, if other than as provided in Section 3.2;
10
(6) the right, if any, of the Issuer to redeem Securities, in
whole or in part, at its option and the period or periods within which,
or the date or dates on which, the price or prices at which and any
terms and conditions upon which Securities of the series may be so
redeemed, pursuant to any sinking fund or otherwise;
(7) the obligation, if any, of the Issuer to redeem, purchase or
repay Securities of the series pursuant to any mandatory redemption,
sinking fund or analogous provisions or at the option of a Holder
thereof, and the price or prices at which and the period or periods
within which or the date or dates on which and any terms and conditions
upon which Securities of the series shall be redeemed, purchased or
repaid, in whole or in part, pursuant to such obligation;
(8) if other than denominations of $1,000 and any integral
multiple thereof;
(9) the percentage of the principal amount at which the Securities
will be issued, and, 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;
(10) whether the Securities of the series will be issuable as
unregistered securities (with or without coupons), any restrictions
applicable to the offer, sale or delivery of unregistered securities or
the payment of interest thereon and, the terms upon which unregistered
securities of any series may be exchanged for Registered Securities of
such series and vice versa;
(11) whether and under what circumstances the Issuer will pay
additional amounts on the Securities of the series held by a person who
is not a U.S. person in respect of any tax, assessment or governmental
charge withheld or deducted and, if so, whether the Issuer will have
the option to redeem the Securities of the series rather than pay such
additional amounts;
(12) if the Securities of the series are to be issuable in
definitive form (whether upon original issue or upon exchange of a
temporary Security of such series) only upon receipt of certain
certificates or other documents or satisfaction of other conditions,
the form and terms of such certificates, documents or conditions;
(13) any trustees, depositories, authenticating or paying agents,
transfer agents or registrars of any other agents with respect to the
Securities of such series;
(14) any deletion from modification of or addition to the Events
of Default or covenants with respect to the Securities of such series;
and
(15) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture).
All Securities of any one series shall be substantially identical,
except in the case of Registered Securities as to denomination and except as may
otherwise be provided by or pursuant to the Board Resolution or Officer's
Certificate referred to above. All Securities of any
11
one series need not be issued at the same time and may be issued from time to
time, consistent with the terms of this Indenture, if so provided by or pursuant
to such Board Resolution or such Officer's Certificate.
SECTION 2.4. Authentication And Delivery Of Securities. The Issuer may
deliver Securities of any series executed by the Issuer to the Trustee for
authentication together with the applicable documents referred to below in this
Section 2.4, and the Trustee shall thereupon authenticate and deliver such
Securities to or upon the order of the Issuer (contained in the Issuer Order
referred to below in this Section) or pursuant to such procedures acceptable to
the Trustee and to such recipients as may be specified from time to time by an
Issuer Order. The maturity date, original issue date, interest rate and any
other terms of the Securities of such series shall be determined by or pursuant
to such Issuer Order and procedures. If provided for in such procedures, such
Issuer Order may authorize authentication and delivery pursuant to oral or
electronic instructions from the Issuer or its duly authorized agent or agents,
which instructions, if oral, shall be promptly confirmed in writing. In
authenticating such Securities and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive (in the case of subparagraphs (2), (3) and (4) below only at
or before the time of the first request of the Issuer to the Trustee to
authenticate Securities of such series) and (subject to Section 6.1) shall be
fully protected in relying upon, the following enumerated documents unless and
until such documents have been superseded or revoked:
(1) an Issuer Order requesting such authentication and setting
forth delivery instructions if the Securities are not to be delivered
to the Issuer, PROVIDED that, with respect to Securities of a series
subject to a Periodic Offering, (a) such Issuer Order may be delivered
by the Issuer to the Trustee prior to the delivery to the Trustee of
such Securities for authentication and delivery, (b) the Trustee shall
authenticate and deliver Securities of such series for original issue
from time to time, in an aggregate principal amount not exceeding the
aggregate principal amount established for such series, pursuant to an
Issuer Order or pursuant to procedures acceptable to the Trustee as may
be specified from time to time by an Issuer Order, (c) the maturity
date or dates, original issue date or dates, interest rate or rates and
any other terms of Securities of such series shall be determined by an
Issuer Order or pursuant to such procedures and (d) if provided for in
such procedures, such Issuer Order may authorize authentication and
delivery pursuant to oral or electronic instructions from the Issuer or
its duly authorized agent or agents, which instructions, if oral, shall
be promptly confirmed in writing;
(2) any Board Resolution and/or Officer's Certificate referred to
in Section 2.1 and 2.3 by or pursuant to which the forms and terms of
the Securities were established;
(3) an Officer's Certificate setting forth the form or forms and
terms of the Securities stating that the form or forms and terms of the
Securities have been established pursuant to Sections 2.1 and 2.3 and
comply with this Indenture, and covering such other matters as the
Trustee may reasonably request; and
(4) At the option of the Issuer, either one or more Opinions of
Counsel, or a letter addressed to the Trustee permitting it to rely on
one or more Opinions of Counsel, substantially to the effect that:
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(a) the form or forms of the Securities have been duly authorized
and established in conformity with the provisions of this Indenture;
(b) in the case of an underwritten offering, the terms of the
Securities have been duly authorized and established in conformity with
the provisions of this Indenture, and, in the case of an offering that
is not underwritten, certain terms of the Securities have been
established pursuant to a Board Resolution or an Officer's Certificate
in accordance with this Indenture, and when such other terms as are to
be established pursuant to procedures set forth in an Issuer Order
shall have been established, all such terms will have been duly
authorized by the Issuer and will have been established in conformity
with the provisions of this Indenture; and
(c) such Securities when executed by the Issuer and authenticated
by the Trustee in accordance with the provisions of this Indenture and
delivered to and duly paid for by the purchasers thereof, and subject
to any conditions specified in such Opinion of Counsel, will have been
duly issued under this Indenture, will be entitled to the benefits of
this Indenture, and will be valid and binding obligations of the
Issuer, enforceable in accordance with their respective terms except as
the enforceability thereof may be limited by (i) bankruptcy,
insolvency, reorganization, liquidation, moratorium, fraudulent
transfer or similar laws affecting creditors' rights generally, (ii)
rights of acceleration, if any, and (iii) the availability of equitable
remedies may be limited by equitable principles of general
applicability and such counsel need express no opinion with regard to
the enforceability of Section 6.6.
In rendering such opinions, any counsel may qualify any opinions as to
enforceability by stating that such enforceability may be limited by bankruptcy,
insolvency, reorganization, liquidation, moratorium, fraudulent transfer and
other similar laws affecting the rights and remedies of creditors and is subject
to general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law). Such counsel may rely upon
opinions of other counsel (copies of which shall be delivered to the Trustee)
reasonably satisfactory to the Trustee, in which case the opinion shall state
that such counsel believes he and the Trustee are entitled so to rely. Such
counsel may also state that, insofar as such opinion involves factual matters,
he has relied, to the extent he deems proper, upon certificates of officers of
the Issuer and its Subsidiaries and certificates of public officials.
The Trustee shall have the right to decline to authenticate and deliver
any Securities under this Section 2.4 if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken by the Issuer or if the
Trustee in good faith by its board of directors or board of trustees, executive
committee or a trust committee of directors or trustees shall determine that
such action would expose the Trustee to personal liability to existing Holders
or would affect the Trustee's own rights, duties or immunities under the
Securities, this Indenture or otherwise.
If the Issuer shall establish pursuant to Section 2.3 that the
Securities of a series are to be issued in the form of one or more Registered
Global Securities, then the Issuer shall execute and the Trustee shall, in
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accordance with this Section and the Issuer Order with respect to such series,
authenticate and deliver one or more Registered Global Securities that (i) shall
represent and shall be denominated in an amount equal to the aggregate principal
amount of all of the Securities of such series issued and not yet canceled, (ii)
shall be registered in the name of the Depository for such Registered Global
Security or Securities or the nominee of such Depository, (iii) shall be
delivered by the Trustee to such Depository or delivered or held pursuant to
such Depository's instructions and (iv) shall bear a legend substantially to the
following effect: "Unless and until it is exchanged in whole or in part for
Securities in definitive registered form, this Security may not be transferred
except as a whole by the Depository to the nominee of the Depository or by a
nominee of the Depository to the Depository or another nominee of the Depository
or by the Depository or any such nominee to a successor Depository or a nominee
of such successor Depository."
Each Depository designated pursuant to Section 2.3 must, at the time of
its designation and at all times while it serves as Depository, be a clearing
agency registered under the Exchange Act and any other applicable statute or
regulation.
SECTION 2.5. Execution Of Securities. The Securities shall be signed on
behalf of the Issuer by the chairman or vice chairman of its Board of Directors
or its president, or any executive (senior or other), a vice president or its
treasurer, under its corporate seal which may, but need not, be attested. Such
signatures may be the manual or facsimile signatures of the present or any
future such officers. The seal of the Issuer may be in the form of a facsimile
thereof and may be impressed, affixed, imprinted or otherwise reproduced on the
Securities. Typographical and other minor errors or defects in any such
reproduction of the seal or any such signature shall not affect the validity or
enforceability of any Security that has been duly authenticated and delivered by
the Trustee.
In case any officer of the Issuer who shall have signed any of the
Securities shall cease to be such officer before the Security so signed shall be
authenticated and delivered by the Trustee or disposed of by the Issuer, such
Security nevertheless may be authenticated and delivered or disposed of as
though the person who signed such Security had not ceased to be such officer of
the Issuer; and any Security may be signed on behalf of the Issuer by such
persons as, at the actual date of the execution of such Security shall be the
proper officers of the Issuer, although at the date of the execution and
delivery of this Indenture any such person was not such an officer.
SECTION 2.6. Certificate Of Authentication. Only such Securities as
shall bear thereon a certificate of authentication substantially in the form
hereinbefore recited, executed by the Trustee by the manual signature of one of
its authorized officers, shall be entitled to the benefits of this Indenture or
be valid or obligatory for any purpose. The execution of such certificate by the
Trustee upon any Security executed by the Issuer shall be conclusive evidence
that the Security so authenticated has been duly authenticated and delivered
hereunder and that the Holder is entitled to the benefits of this Indenture.
SECTION 2.7. Denomination And Date Of Securities; Payment Of Interest.
The Securities of each series shall be issuable as Registered Securities in
denominations of $1,000 and any integral multiple thereof. The Securities of
each series shall be numbered, lettered or otherwise distinguished in such
manner or in accordance with such plan as the officers of the Issuer executing
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the same may determine with the approval of the Trustee, as evidenced by the
execution and authentication thereof.
Each Registered Security shall be dated the date of its authentication.
The Securities of each series shall bear interest, if any, from the date, and
such interest shall be payable on the dates, established as contemplated by
Section 2.3.
The person in whose name any Registered Security of any series is
registered at the close of business on any record date applicable to a
particular series with respect to any interest payment date for such series
shall be entitled to receive the interest, if any, payable on such interest
payment date notwithstanding any transfer or exchange of such Registered
Security subsequent to the record date and prior to such interest payment date,
except if and to the extent the Issuer shall default in the payment of the
interest due on such interest payment date for such series, in which case such
defaulted interest shall be paid to the persons in whose names Outstanding
Registered Securities for such series are registered at the close of business on
a subsequent record date (which shall be not less than five Business Days prior
to the date of payment of such defaulted interest) established by notice given
by mail by or on behalf of the Issuer to the Holders of Registered Securities
not less than 15 days preceding such subsequent record date. The term "record
date" as used with respect to any interest payment date (except a date for
payment of defaulted interest) for the Securities of any series shall mean the
date specified as such in the terms of the Registered Securities of such series
established as contemplated by Section 2.3, or, if no such date is so
established, if such interest payment date is the first day of a calendar month,
the fifteenth day of the preceding calendar month or, if such interest payment
date is the fifteenth day of a calendar month, the first day of such calendar
month, whether or not such record date is a Business Day.
SECTION 2.8. Registration, Transfer And Exchange. The Issuer will keep
at each office or agency to be maintained for the purpose as provided in Section
3.2 for each series of Securities a register or registers in which, subject to
such reasonable regulations as the Issuer may prescribe, it will provide for the
registration of Registered Securities of such series and the registration of
transfer of Registered Securities of such series. Such register shall be in
written form in the English language or in any other form capable of being
converted into such form within a reasonable time. At all reasonable times such
register or registers shall be open for inspection by the Trustee.
Upon due presentation for registration of transfer of any Registered
Security of any series at any such office or agency to be maintained for the
purpose as provided in Section 3.2, the Issuer shall execute and the Trustee
shall authenticate and deliver in the name of the transferee or transferees a
new Registered Security or Registered Securities of the same series, maturity
date, interest rate and original issue date in authorized denominations for a
like aggregate principal amount.
At the option of the Holder thereof, Registered Securities of any
series (other than a Registered Global Security, except as set forth below) may
be exchanged for a Registered Security or Registered Securities of such series
having authorized denominations and an equal aggregate principal amount, upon
surrender of such Registered Securities to be exchanged at the agency of the
Issuer that shall be maintained for such purpose in accordance with Section 3.2
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and upon payment, if the Issuer shall so require, of the charges hereinafter
provided. Whenever any Securities are so surrendered for exchange, the Issuer
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive. All Securities
surrendered upon any exchange or transfer provided for in this Indenture shall
be promptly cancelled and disposed of by the Trustee, and the Trustee shall
deliver a certificate of disposition thereof to the Issuer.
All Registered Securities presented for registration of transfer,
exchange, redemption or payment shall (if so required by the Issuer or the
Trustee) be duly endorsed, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the Issuer and the Trustee duly
executed, by the Holder or his attorney duly authorized in writing.
The Issuer may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any exchange or
registration of transfer of Securities. No service charge shall be made for any
such transaction.
The Issuer shall not be required to exchange or register a transfer of
(a) any Securities of any series for a period of 15 days preceding the first
mailing of notice of redemption of Securities of such series to be redeemed or
(b) any Securities selected, called or being called for redemption, in whole or
in part, except, in the case of any Security to be redeemed in part, the portion
thereof not so to be redeemed.
Notwithstanding any other provision of this Section 2.8, unless and
until it is exchanged in whole or in part for Securities in definitive
registered form, a Registered Global Security representing all or a portion of
the Securities of a series may not be transferred except as a whole by the
Depositary for such series to a nominee of such Depositary or by a nominee of
such Depositary to such Depositary or another nominee of such Depositary or by
such Depositary or any such nominee to a successor Depositary for such series or
a nominee of such successor Depositary.
If at any time the Depositary for any Registered Securities of a series
represented by one or more Registered Global Securities notifies the Issuer that
it is unwilling or unable to continue as Depositary for such Registered
Securities or if at any time the Depositary for such Registered Securities shall
no longer be eligible under Section 2.4, the Issuer shall appoint a successor
Depositary eligible under Section 2.4 with respect to such Registered
Securities. If a successor Depositary eligible under Section 2.4 for such
Registered Securities is not appointed by the Issuer within 90 days after the
Issuer receives such notice or becomes aware of such ineligibility, the Issuer's
election pursuant to Section 2.3 that such Registered Securities be represented
by one or more Registered Global Securities shall no longer be effective and the
Issuer will execute, and the Trustee, upon receipt of an Officer's Certificate
for the authentication and delivery of definitive Securities of such series,
will authenticate and deliver, Securities of such series in definitive
registered form in any authorized denominations, in an aggregate principal
amount equal to the principal amount of the Registered Global Security or
Securities representing such Registered Securities in exchange for such
Registered Global Security or Securities.
The Issuer may at any time and in its sole discretion determine that
the Registered Securities of any series issued in the form of one or more
16
Registered Global Securities shall no longer be represented by a Registered
Global Security or Securities. In such event the Issuer will execute, and the
Trustee, upon receipt of any Officer's Certificate for the authentication and
delivery of definitive Securities of such series, will authenticate and deliver,
Securities of such series in definitive registered form in any authorized
denominations, in an aggregate principal amount equal to the principal amount of
the Registered Global Security or Securities representing such Registered
Securities, in exchange for such Registered Global Security or Securities.
If specified by the Issuer pursuant to Section 2.3 with respect to
Securities represented by a Registered Global Security, the Depositary for such
Registered Global Security may surrender such Registered Global Security in
exchange in whole or in part for Securities of the same series in definitive
registered form on such terms as are acceptable to the Issuer and such
Depositary. Thereupon, the Issuer shall execute, and the Trustee shall
authenticate and deliver, without service charge:
(i) to the Person specified by such Depositary a new Registered
Security or Securities of the same series, of any authorized
denominations as requested by such Person, in an aggregate principal
amount equal to and in exchange for such Person's beneficial interest
in the Registered Global Security; and
(ii) to such Depositary a new Registered Global Security in a
denomination equal to the difference, if any, between the principal
amount of the surrendered Registered Global Security and the aggregate
principal amount of Registered Securities authenticated and delivered
pursuant to clause (i) above.
Upon the exchange of a Registered Global Security for Securities in
definitive registered form in authorized denominations, such Registered Global
Security shall be cancelled by the Trustee or an agent of the Issuer or the
Trustee. Securities in definitive registered form issued in exchange for a
Registered Global Security pursuant to this Section 2.8 shall be registered in
such names and in such authorized denominations as the Depositary for such
Registered Global Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee or an agent of the Issuer
or the Trustee. The Trustee or such agent shall deliver such Securities to or as
directed by the Persons in whose names such Securities are so registered.
All Securities issued upon any transfer or exchange of Securities shall
be valid obligations of the Issuer, evidencing the same debt, and entitled to
the same benefits under this Indenture, as the Securities surrendered upon such
transfer or exchange.
SECTION 2.9. Mutilated, Defaced, Destroyed, Lost And Stolen Securities.
In case any temporary or definitive Security shall be mutilated, defaced,
destroyed, lost or stolen, the Issuer in its discretion may execute and, upon
the written request of any officer of the Issuer, the Trustee shall authenticate
and deliver, a new Security of the same series, maturity date, interest rate and
original issue date, bearing a number or other distinguishing symbol not
contemporaneously outstanding, in exchange and substitution for the mutilated or
defaced Security, or in lieu of and in substitution for the Security so
destroyed, lost or stolen. In every case, the applicant for a substitute
Security shall furnish to the Issuer and to the Trustee and any agent of the
17
Issuer or the Trustee such security or indemnity as may be required by them to
indemnify and defend and to save each of them harmless and, in every case of
destruction, loss or theft, evidence to their satisfaction of the destruction,
loss or theft of such Security and of the ownership thereof, and in the case of
mutilation or defacement shall surrender the Security to the Trustee or such
agent.
Upon the issuance of any substitute Security, the Issuer 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) or its agent connected therewith. In case any
Security which has matured or is about to mature or has been called for
redemption in full shall become mutilated or defaced or be destroyed, lost or
stolen, the Issuer 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 or defaced Security), if the applicant for such payment shall
furnish to the Issuer and to the Trustee and any agent of the Issuer or the
Trustee such security or indemnity as any of them may require to save each of
them harmless, and, in every case of destruction, loss or theft, the applicant
shall also furnish to the Issuer and the Trustee and any agent of the Issuer or
the Trustee evidence to their satisfaction of the destruction, loss or theft of
such Security and of the ownership thereof.
Every substitute Security of any series issued pursuant to the
provisions of this Section by virtue of the fact that any such Security is
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Issuer, whether or not the destroyed, lost or stolen Security shall be at
any time enforceable by anyone and shall be entitled to all the benefits of (but
shall be subject to all the limitations of rights set forth in) this Indenture
equally and proportionately with any and all other Securities of such series
duly authenticated and delivered hereunder. All Securities shall be held and
owned upon the express condition that, to the extent permitted by law, the
foregoing provisions are exclusive with respect to the replacement or payment of
mutilated, defaced or destroyed, lost or stolen Securities and shall preclude
any and all other rights or remedies notwithstanding any law or statute existing
or hereafter enacted to the contrary with respect to the replacement or payment
of negotiable instruments or other securities without their surrender.
SECTION 2.10. Cancellation Of Securities; Destruction Thereof All
Securities surrendered for payment, redemption, registration of transfer or
exchange, or for credit against any payment in respect of a sinking or analogous
fund, if any, if surrendered to the Issuer or any agent of the Issuer or the
Trustee or any agent of the Trustee, shall be delivered to the Trustee or its
agent for cancellation or, if surrendered to the Trustee, shall be canceled by
it; and no Securities shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Indenture. The Trustee or its agent
shall dispose of canceled Securities held by it and deliver a certificate of
disposition to the Issuer. If the Issuer or its agent shall acquire any of the
Securities, 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 or its agent for cancellation.
SECTION 2.11. Temporary Securities. Pending the preparation of
definitive Securities for any series, the Issuer may execute and the Trustee
shall authenticate and deliver temporary Securities for such series (printed,
lithographed, typewritten or otherwise reproduced, in each case in form
18
satisfactory to the Trustee). Temporary Securities of any series shall be
issuable as Registered Securities without coupons of any authorized
denomination, and substantially in the form of the definitive Securities of such
series but with such omissions, insertions and variations as may be appropriate
for temporary Securities, all as may be determined by the Issuer with the
concurrence of the Trustee as evidenced by the execution and authentication
thereof. Temporary Securities may contain such references to any provisions of
this Indenture as may be appropriate. Every temporary Security shall be executed
by the Issuer and be authenticated by the Trustee upon the same conditions and
in substantially the same manner, and with like effect, as the definitive
Securities. Without unreasonable delay the Issuer shall execute and shall
furnish definitive Securities of such series and thereupon temporary Registered
Securities of such series may be surrendered in exchange therefor without charge
at each office or agency to be maintained by the Issuer for that purpose
pursuant to Section 3.2 and the Trustee shall authenticate and deliver in
exchange for such temporary Securities of such series an equal aggregate
principal amount of definitive Securities of the same series having authorized
denominations. Until so exchanged, the temporary Securities of any series shall
be entitled to the same benefits under this Indenture as definitive Securities
of such series, unless otherwise established pursuant to Section 2.3.
ARTICLE III
COVENANTS OF THE ISSUER
SECTION 3.1. Payment Of Principal And Interest. The Issuer covenants
and agrees for the benefit of each series of Securities that it will duly and
punctually pay or cause to be paid the principal of, and interest on, if any,
each of the Securities of such series (together with any additional amounts
payable pursuant to the terms of such Securities) at the place or places, at the
respective time or times and in the manner provided in such Securities in this
Indenture. The interest, if any, on Registered Securities (together with any
additional amounts payable pursuant to the terms of such Securities) shall be
payable only to or upon the written order of the Holders thereof and, at the
option of the Issuer, may be paid by wire transfer or by mailing checks for such
interest payable to or upon the written order of such Holders at their last
addresses as they appear on the Securities register of the Issuer.
SECTION 3.2. Offices For Payments, Etc. So long as any Registered
Securities are authorized for issuance pursuant to this Indenture or are
outstanding hereunder, the Issuer will maintain in __________________, an office
or agency where the Registered Securities of each series may be presented for
payment, where the Securities of each series may be presented for exchange as is
provided in this Indenture and, if applicable, pursuant to Section 2.3 and where
the Registered Securities of each series may be presented for registration of
transfer as in this Indenture provided.
The Issuer will maintain in ___________________, an office or agency
where notices and demands to or upon the Issuer in respect of the Securities of
any series or this Indenture may be served.
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The Issuer will give to the Trustee written notice of the location of
each such office or agency and of any change of location thereof. In case the
Issuer shall fail to maintain any agency required by this Section to be located
in ___________________, or shall fail to give such notice of the location or for
any change in the location of any of the above agencies, presentations and
demands may be made and notices may be served at the Corporate Trust Office of
the Trustee.
The Issuer may from time to time designate one or more additional
offices or agencies where the Securities of a series may be presented for
payment, where the Securities of that series may be presented for exchange as
provided in this Indenture and pursuant to Section 2.3 and where the Registered
Securities of that series may be presented for registration of transfer as in
this Indenture provided, and the Issuer may from time to time rescind any such
designation, as the Issuer may deem desirable or expedient; PROVIDED, that no
such designation or rescission shall in any manner relieve the Issuer of its
obligations to maintain the agencies provided for in this Section. The Issuer
shall give to the Trustee prompt written notice of any such designation or
rescission thereof.
SECTION 3.3. Appointment To Fill A Vacancy In Office Of Trustee. The
Issuer, whenever necessary to avoid or fill a vacancy in the office of Trustee,
will appoint, in the manner provided in Section 6.10, a Trustee, so that there
shall at all times be a Trustee with respect to each series of Securities
hereunder.
SECTION 3.4. Paying Agents. Whenever the Issuer shall appoint a paying
agent other than the Trustee with respect to the Securities of any series, it
will cause such paying agent to execute and deliver to the Trustee an instrument
in which such agent shall agree with the Trustee, subject to the provisions of
this Section:
(a) that it will hold all sums received by it as such agent for
the payment of the principal of or interest on the Securities of such
series (whether such sums have been paid to it by the Issuer or by any
other obligor on the Securities of such series) in trust for the
benefit of the Holders of the Securities of such series or of the
Trustee;
(b) that it will give the Trustee notice of any failure by the
Issuer (or by any other obligor on the Securities of such series) to
make any payment of the principal of or interest on the Securities of
such series when the same shall be due and payable; and
(c) that it will pay any such sums so held in trust by it to the
Trustee upon the Trustee's written request at any time during the
continuance of the failure referred to in the foregoing clause (b).
The Issuer will, on or prior to each due date of the principal of or
interest on the Securities of such series, deposit with the paying agent a sum
sufficient to pay such principal or interest so becoming due, and (unless such
paying agent is the Trustee) the Issuer will promptly notify the Trustee of any
failure to take such action.
If the Issuer shall act as its own paying agent with respect to the
Securities of any series, it will, on or before each due date of the principal
of or interest on the Securities of such series, set aside, segregate and hold
20
in trust for the benefit of the Holders of the Securities of such series a sum
sufficient to pay such principal or interest so becoming due. The Issuer will
promptly notify the Trustee of any failure to take such action.
Anything in this Section to the contrary notwithstanding, but subject
to Section 9.1, the Issuer may at any time, for the purpose of obtaining a
satisfaction and discharge with respect to one or more or all series of
Securities hereunder, or for any other reason, pay or cause to be paid to the
Trustee all sums held in trust for any such series by the Issuer or any paying
agent hereunder, as required by this Section, such sums to be held by the
Trustee upon the trusts herein contained.
Anything in this Section to the contrary notwithstanding, the agreement
to hold sums in trust as provided in this Section is subject to the provisions
of Sections 9.3 and 9.4.
SECTION 3.5. Compliance Certificates. The Issuer will furnish to the
Trustee on or before January 31 in each year (beginning with January 31, 2002) a
brief certificate (which need not comply with Section 10.5) from the principal
executive, financial or accounting officer of the Issuer stating that in the
course of the performance by the signer of his or her duties as an officer of
the Issuer he or she would normally have knowledge of any default or
non-compliance by the Issuer in the performance of any covenants or conditions
contained in this Indenture, stating whether or not he or she has knowledge of
any such default or non-compliance and, if so, describing each such default or
non-compliance of which the signer has knowledge and the nature of such default
or non-compliance.
SECTION 3.6. Corporate Existence. The Issuer will do or cause to be
done all things necessary to preserve and keep in full force and effect its
corporate existence and the rights (charter and statutory), licenses and
franchises of the Issuer; PROVIDED, that the Issuer shall not be required to
preserve any such right, license or franchise, if, in the judgment of the
Issuer, the preservation thereof is no longer desirable in the conduct of the
business of the Issuer taken as a whole and the loss thereof is not
disadvantageous in any material respect to the Securityholders.
SECTION 3.7. Payment Of Taxes And Other Claims. The Issuer will pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent: (a) all taxes, assessments and governmental charges levied or
imposed upon the Issuer or any Subsidiary or upon the income, profits or
property of the Issuer or any Subsidiary; and (b) all lawful claims for labor,
materials and supplies, which, if unpaid, might by law become a lien upon the
property of the Issuer or any Subsidiary; PROVIDED, that the Issuer shall not be
required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being
contested in good faith by appropriate proceedings; and PROVIDED FURTHER that
the Issuer shall not be required to cause to be paid or discharged any such tax,
assessment, charge or claim if the Issuer shall determine that such payment is
not advantageous to the conduct of the business of the Issuer and its
Subsidiaries taken as a whole and that the failure so to pay or discharge is not
disadvantageous in any material respect to the Securityholders.
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SECTION 3.8. The Issuer May Not Merge. The Issuer may not consolidate
with or merge with or into, or sell, convey, transfer or lease all or
substantially all of its assets (either in one transaction or a series of
transactions) to any Person unless:
(a) the Person formed by or surviving such consolidation or merger
or to which such sale, conveyance, transfer or lease shall have been
made (the "Successor") if other than the Issuer, (a) is organized and
existing under the laws of the United States of America or any State
thereof or the District of Columbia, and (b) shall expressly assume by
a supplemental indenture, executed and delivered to the Trustee, in
form satisfactory to the Trustee, all the obligations of the Issuer
under the Securities and this Indenture;
(b) immediately prior to and after giving effect to such
transaction (and treating any indebtedness which becomes an obligation
of the Successor or any Subsidiary as a result of such transaction as
having been incurred by such Successor or such Subsidiary at the time
of such transaction), no Event of Default shall have occurred and be
continuing; and
(c) the Issuer, delivers to the Trustee an Officer's Certificate
and an Opinion of Counsel, each stating that such consolidation,
merger, sale, conveyance, transfer or lease and such supplemental
indenture comply with this Indenture.
The Successor will be the successor to the Issuer, and will be
substituted for, and may exercise every right and power and become the obligor
on the Securities with the same effect as if the Successor had been named, as
the Issuer herein but, in the case of a sale, conveyance, transfer or lease of
all or substantially all of the assets of the Issuer, the predecessor Issuer
will not be released from its obligation to pay the principal of, premium, if
any, and interest on the Securities.
ARTICLE IV
SECURITYHOLDER LISTS AND REPORTS BY THE
ISSUER AND THE TRUSTEE
SECTION 4.1. Issuer To Furnish Trustee Information As To Names And
Addresses Of Securityholders. If and so long as the Trustee shall not be the
Security registrar for the Securities of any series, the Issuer and any other
obligor on the Securities will furnish or cause to be furnished to the Trustee a
list in such form as the Trustee may reasonably require of the names and
addresses of the Holders of the Registered Securities of such series pursuant to
Section 312 of the Trust Indenture Act:
(a) semi-annually not more than 5 days after each record date for
the payment of interest on such Registered Securities, as hereinabove
specified, as of such record date and on dates to be determined
pursuant to Section 2.3 for non-interest bearing Registered Securities
in each year; and
(b) at such other times as the Trustee may reasonably request in
writing, within thirty days after receipt by the Issuer of any such
request as of a date not more than 15 days prior to the time such
information is furnished.
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SECTION 4.2. Reports By The Issuer. The Issuer covenants to file with
the Trustee, within 15 days after the Issuer is required to file the same with
the Commission, copies of the annual reports and of the information, documents,
and other reports that the Issuer may be required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act or pursuant to
Section 314 of the Trust Indenture Act.
SECTION 4.3. Reports By The Trustee.
(a) On or before the first July 15 which occurs not less than 60
days after the earliest date of issuance of any Securities and on or
before July 15 in each year thereafter, so long as any Securities are
Outstanding hereunder, the Trustee shall transmit by mail as provided
below to the Securityholders of each series of outstanding Securities,
as hereinafter in this Section provided, a brief report dated as of the
preceding May 15 with respect to:
(i) its eligibility under Section 6.10 and its qualification under
Section 6.9, or in lieu thereof, if to the best of its knowledge it has
continued to be eligible and qualified under such Sections, a written
statement to such effect;
(ii) the character and amount of any advances (and if the Trustee
elects to so state, the circumstances surrounding the making thereof)
made by the Trustee (as such) which remain unpaid on the date of such
report and for the reimbursement of which it claims or may claim a lien
or charge, prior to that of the Securities of such series, on any
property or funds held or collected by it as Trustee, except that the
Trustee shall not be required (but may elect) to report such advances
if such advances so remaining unpaid aggregate not more than 0.5% of
the principal of the Securities of such series outstanding on the date
of such report;
(iii) the amount, interest rate and maturity date of all other
indebtedness owing by the Issuer (or any other obligor on the
Securities of such series) to the Trustee in its individual capacity on
the date of such report, with a brief description of any property held
as collateral security therefor, except any indebtedness based upon a
creditor relationship;
(iv) the property and funds, if any, physically in the possession
of the Trustee (as such) in respect of the Securities of such series on
the date of such report;
(v) any additional issue of Securities of such series which the
Trustee has not previously reported; and
(vi) any action taken by the Trustee in the performance of its
duties under this Indenture which the Trustee has not previously
reported and which in the Trustee's opinion materially affects the
Securities of such series, except action in respect of a default,
notice of which has been or is to be withheld by it in accordance with
the provisions of Section 5.11.
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(b) The Trustee shall transmit to the Securityholders of each
series, as provided in subsection (c) of this Section, a brief report
with respect to the character and amount of any advances (and if the
Trustee elects so to state, the circumstances surrounding the making
thereof) made by the Trustee (as such) in respect of the Securities of
such series since the date of the last report transmitted pursuant to
the provisions of subsection (a) of this Section (or if no such report
has yet been so transmitted, since the date of this Indenture) for the
reimbursement of which it claims or may claim a lien or charge prior to
that of the Securities of such series on property or funds held or
collected by it as Trustee and which it has not previously reported
pursuant to this subsection (b), except that the Trustee shall not be
required (but may elect) to report such advances if such advances
remaining unpaid at any time aggregate 10% or less of the principal
amount of Securities of such series outstanding at such time, such
report to be transmitted within 90 days after such time.
(c) Reports pursuant to this Section shall be transmitted by mail
to all Holders of Securities of such series, as the names and addresses
of such Holders appear upon the Securities register as of a date not
more than 15 days prior to the mailing thereof.
(d) A copy of each such report shall, at the time of such
transmission to Securityholders, be furnished to the Issuer and be
filed by the Trustee with each stock exchange upon which the Securities
of such series are listed and also with the Commission. The Issuer
agrees to notify the Trustee when and as Securities of any series
become listed on any national securities exchange.
ARTICLE V
REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
ON EVENT OF DEFAULT
SECTION 5.1. Event Of Default Defined, Acceleration Of Maturity; Waiver
Of Default. "Event of Default" with respect to Securities of any series,
wherever used herein, means any one of the following events which shall have
occurred and be continuing (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary or be effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):
(a) default in the payment of any installment of interest upon any
of the Securities of such series as and when the same shall become due
and payable, and continuance of such default for a period of 30 days;
provided that, a valid extension of an interest payment period by the
Issuer in accordance with the terms of such Securities shall not
constitute a failure to pay interest; or
(b) default in the payment of all or any part of the principal or
premium (if any) on any of the Securities of such series as and when
the same shall become due and payable either at maturity, upon any
redemption, by declaration or otherwise; or
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(c) default in the payment of any sinking fund installment as and
when the same shall become due and payable by the terms of the
Securities of such series; or
(d) failure on the part of the Issuer duly to observe or perform
any other of the covenants or agreements on the part of the Issuer in
the Securities of such series or contained in this Indenture (other
than a covenant or agreement included in this Indenture solely for the
benefit of a series of Securities other than such series) for a period
of 60 days after the date on which written notice specifying such
failure, stating that such notice is a "Notice of Default" hereunder
and demanding that the Issuer remedy the same, shall have been given by
registered or certified mail, return receipt requested, to the Issuer
by the Trustee, or to the Issuer and the Trustee by the holders of at
least 25% in aggregate principal amount of the Outstanding Securities
of the series to which such covenant or agreement relates; or
(e) a court having jurisdiction in the premises shall enter a
decree or order for relief in respect of the Issuer in an involuntary
case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of the
Issuer for any substantial part of its or their property or ordering
the winding up or liquidation of its or their affairs, and such decree
or order shall remain unstayed and in effect for a period of 60
consecutive days; or
(f) the Issuer shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter
in effect, or consent to the entry of an order for relief in an
involuntary case under any such law, or consent to the appointment or
taking possession by a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of the Issuer or for any
substantial part of its or their property, or make any general
assignment for the benefit of creditors; or
(g) any other Event of Default provided in the Board Resolution
under which such series of Securities is issued or in the form of
Security for such series.
If an Event of Default described in clause (a), (b) or (c) occurs and
is continuing, then, and in each and every such case, except for any series of
Securities the principal of which 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 each such affected series then Outstanding hereunder
(each such series voting as a separate class) by notice in writing to the Issuer
(and to the Trustee if given by Securityholders), may declare the entire
principal (or, if the Securities of such series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of such series) of all Securities of such series, and the interest accrued
thereon, if any, to be due and payable immediately, and upon any such
declaration, the same shall become immediately due and payable.
Except as otherwise provided in the terms of any series of Securities
pursuant to Section 2.3, if an Event of Default described in clause (d) or (g)
above with respect to all series of the Securities then Outstanding, occurs and
is continuing, then, and in each and every such case, unless the Principal of
all of the Securities shall have already become due and payable, either the
25
Trustee or the Holders of not less than 25% in aggregate principal amount of all
of the Securities then Outstanding hereunder (treated as one class) by notice in
writing to the Issuer (and to the Trustee if given by Securityholders), may
declare the entire principal (or, if the Securities of any series are Original
Issue Discount Securities, such portion of the principal amount as may be
specified in the terms of such series) of all of the Securities then
Outstanding, and the interest accrued thereon, if any, to be due and payable
immediately, and upon such declaration, the same shall become immediately due
and payable.
If an Event of Default described in clause (e) or (f) above occurs and
is continuing, then the principal amount of all the Securities then Outstanding,
and the interest accrued thereon, if any, shall become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder.
If an Event of Default described in clause (d) or (g) occurs and is
continuing, which Event of Default is with respect to less than all series of
Securities then Outstanding, then, and in each and every such case, except for
any series of Securities the principal of which 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 each such affected series then Outstanding
hereunder (each such series voting as a separate class) by notice in writing to
the Issuer (and to the Trustee if given by Securityholders), may declare the
entire principal (or, if the Securities of such series are Original Issue
Discount Securities, such portion of the principal amount as may be specified in
the terms of such series) of all Securities of such series, and the interest
accrued thereon, if any, to be due and payable immediately, and upon any such
declaration, the same shall become immediately due and payable.
The foregoing provisions are subject to the condition that if, at any
time after the principal (or, if the Securities are Original Issue Discount
Securities, such portion of the principal as may be specified in the terms
thereof) of the Securities of any series (or of all the Securities, as the case
may be) shall have been so declared due and payable, and before any judgment or
decree for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, the Issuer shall pay or shall deposit with the Trustee a
sum sufficient to pay
(a) all matured installments of interest upon all the Securities
of such series (or all the Securities, as the case may be); and
(i) the principal of any and all Securities of such series (or
of all the Securities, as the case may be) which shall have become due
otherwise than by acceleration; and
(ii) interest upon such principal and, to the extent that
payment of such interest is enforceable under applicable law, on
overdue installments of interest, at the same rate as the rate of
interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in the Securities of such series (or at the
respective rates of interest or Yields to Maturity of all the
Securities, as the case may be) to the date of such payment or deposit;
and
(iii) all amounts payable to the Trustee pursuant to Section
6.6; and
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(b) all Events of Default under the Indenture, other than the
non-payment of the principal of Securities which shall have become due
by acceleration, shall have been cured, waived or otherwise remedied as
provided herein,
then and in every such case the Holders of a majority, or any applicable
supermajority, in aggregate principal amount of all the Securities of such
series voting as a separate class (or all the Securities, as the case may be,
voting as a single class), then Outstanding, by written notice to the Issuer and
to the Trustee, may waive all defaults with respect to such series (or with
respect to all the Securities, as the case may be) and rescind and annul such
declaration and its consequences, but no such waiver or rescission and annulment
shall extend to or shall affect any subsequent default or shall impair any right
consequent thereon.
For all purposes under this Indenture, if a portion of the principal of
any Original Issue Discount Securities shall have been accelerated and declared
due and payable pursuant to the provisions hereof, then, from and after such
declaration, unless such declaration has been rescinded and annulled, the
principal amount of such Original Issue Discount Securities shall be deemed, for
all purposes hereunder, to be such portion of the principal thereof as shall be
due and payable as a result of such acceleration, and payment of such portion of
the principal thereof as shall be due and payable as a result of such
acceleration, together with interest, if any, thereon and all other amounts
owing thereunder, shall constitute payment in full of such Original Issue
Discount Securities.
SECTION 5.2. Collection Of Indebtedness By Trustee; Trustee May Prove
Debt. The Issuer covenants that (a) in case default shall be made in the payment
of any installment of interest on any of the Securities of any series when such
interest shall have become due and payable, and such default shall have
continued for a period of 30 days, or (b) in case default shall be made in the
payment of all or any part of the principal of any of the Securities of any
series when the same shall have become due and payable, whether upon maturity of
the Securities of such series or upon any redemption or by declaration or
otherwise, then upon demand of the Trustee, the Issuer will pay to the Trustee
for the benefit of the Holders of the Securities of such series the whole amount
that then shall have become due and payable on all Securities of such series,
for principal and interest, as the case may be (with interest to the date of
such payment upon the overdue principal and, to the extent that payment of such
interest is enforceable under applicable law, on overdue installments of
interest at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in the Securities of such
series); and in addition thereto, such further amount as shall be sufficient to
cover the costs and expenses of collection, and such other amount due the
Trustee under Section 6.6 in respect of Securities of such series.
Until such demand is made by the Trustee, the Issuer may pay the
principal of and interest on the Securities of any series to the registered
Holders, whether or not the Securities of such series be overdue.
In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name as trustee of an express trust, shall be
entitled and empowered to institute any action or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
27
such action or proceedings to judgment or final decree, and may enforce any such
judgment or final decree against the Issuer or other obligor upon the Securities
and collect in the manner provided by law out of the property of the Issuer or
other obligor upon the Securities, wherever situated, all the moneys adjudged or
decreed to be payable.
In case there shall be pending proceedings relative to the Issuer or
any other obligor upon the Securities under Title 11 of the United States Code
or any other applicable federal or state bankruptcy, insolvency or other similar
law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor, or in case
of any other comparable judicial proceedings relative to the Issuer or other
obligor upon the Securities, or to the creditors or property of the Issuer or
such other obligor, the Trustee, irrespective of whether the principal of the
Securities shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Trustee shall have made any demand
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such proceedings or otherwise:
(a) to file and prove a claim or claims for the whole amount of
principal and interest (or, if the Securities of any series are
Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms of such series) owing and
unpaid in respect of the Securities of any series, and to file such
other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for amounts payable
to the Trustee under Section 6.6) and of the Securityholders allowed in
any judicial proceedings relative to the Issuer or other obligor upon
the Securities, or to the creditors or property of the Issuer or such
other obligor; and
(b) unless prohibited by applicable law and regulations, to vote
on behalf of the holders of the Securities of any series in any
election of a receiver, assignee, trustee or a standby trustee in
arrangement, reorganization, liquidation or other bankruptcy or
insolvency proceedings, custodian or other person performing similar
functions in respect of any such proceedings; and
(c) to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute all amounts received
with respect to the claims of the Securityholders and of the Trustee on
their behalf; and any trustee, receiver, or liquidator, custodian or
other similar official performing similar functions in respect of any
such proceedings is hereby authorized by each of the Securityholders to
make payments to the Trustee, and, in the event that the Trustee shall
consent to the making of payments directly to the Securityholders, to
pay to the Trustee its costs and expenses of collection and all other
amounts due to it pursuant to Section 6.6.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities of any 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, except as aforesaid in clause (b).
28
All rights of action and of asserting claims under this Indenture, or
under any of the Securities of any series may be enforced by the Trustee without
the possession of any of the Securities of such series or the production thereof
in any trial or other proceedings relative thereto, and any such action or
proceedings instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall be awarded to
the Trustee for ratable distribution to the Holders of the Securities in respect
of which such action was taken, after payment of all sums due to the Trustee
under Section 6.6 in respect of such Securities.
In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the Holders
of the Securities in respect to which such action was taken, and it shall not be
necessary to make any Holders of such Securities parties to any such
proceedings.
SECTION 5.3. Application Of Proceeds. Any moneys collected by the
Trustee pursuant to this Article in respect of any series 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 interest, upon
presentation of the several Securities in respect of which monies have been
collected and stamping (or otherwise noting) thereon the payment, or issuing
Securities of such series in reduced principal amounts in exchange for the
presented Securities of like series if only partially paid, or upon surrender
thereof if fully paid:
FIRST: To the payment of costs and expenses applicable to such series
of Securities in respect of which monies have been collected, including all
amounts due to the Trustee and each predecessor Trustee pursuant to Section 6.6
in respect to such series of Securities;
SECOND: In case the principal of the Securities of such series in
respect of which moneys have been collected shall not have become and be then
due and payable, to the payment of interest on the Securities of such series in
default in the order of the maturity of the installments on such interest, with
interest (to the extent that such interest has been collected by the Trustee and
is permitted by applicable law) upon the overdue installments of interest at the
same rate as the rate of interest or Yield to Maturity (in the case of Original
Issue Discount Securities) specified in such Securities, such payments to be
made ratably to the persons entitled thereto, without discrimination or
preference;
THIRD: In case the principal of the Securities of such series in
respect of which moneys have been collected shall have become and shall be then
due and payable, to the payment of the whole amount then owing and unpaid upon
all the Securities of such series for principal and interest, with interest upon
the overdue principal, and (to the extent that such interest has been collected
by the Trustee and is permitted by applicable law) upon the overdue
installations of interest at the same rate as the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) specified in the
Securities of such series; and in case such moneys shall be insufficient to pay
in full the whole amount so due and unpaid upon the Securities of such series,
then to the payment of such principal and interest or Yield to Maturity, without
preference or priority of principal over interest or Yield to Maturity, or of
interest or Yield to Maturity over principal, or of any installment of interest
29
over any other installment of interest or of any Security of such series over
any other Security of such series, ratably to the aggregate of such principal
and accrued and unpaid interest or Yield to Maturity; and
FOURTH: To the payment of the remainder, if any, to the Issuer or any
other person lawfully entitled thereto.
SECTION 5.4. Suits For Enforcement. In case an Event of Default has
occurred, has not been waived and is continuing, the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in this Indenture or in aid of the exercise
of any power granted in this Indenture or to enforce any other legal or
equitable right vested in the Trustee by this Indenture or by law.
SECTION 5.5. Restoration Of Rights On Abandonment Of Proceedings. In
case the Trustee shall have proceeded to enforce any right under this Indenture
and such proceedings shall have been discontinued or abandoned for any reason,
or shall have been determined adversely to the Trustee, then and in every such
case the Issuer and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the
Issuer, the Trustee and the Securityholders shall continue as though no such
proceedings had been taken.
SECTION 5.6. Limitations On Suits By Security Holders. No Holder of any
Security of any series shall have any right by virtue or by availing of any
provision of this Indenture to institute any action or proceeding at law or in
equity or in bankruptcy or otherwise upon or under or with respect to this
Indenture or such Security, or for the appointment of a trustee, receiver,
liquidator, custodian or other similar official or for any other remedy
hereunder or thereunder, unless (a) such Holder previously shall have given to
the Trustee written notice of an Event of Default with respect to Securities of
such series and of the continuance thereof, as hereinbefore provided, and (b)
the Holders of not less than 25% in aggregate principal amount of the Securities
of such series then Outstanding (treated as a single class) shall have made
written request upon the Trustee to institute such action or proceedings in its
own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and (c) the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity shall have
failed to institute any such action or proceeding, and (d) no direction
inconsistent with such written request shall have been given to the Trustee
pursuant to Section 5.9; it being understood and intended, and being expressly
covenanted by the taker and Holder of every Security with every other taker and
Holder and the Trustee, that no one or more Holders of Securities of any series
30
shall have any right in any manner whatever by virtue or by availing of any
provision of this Indenture or any Security to affect, disturb or prejudice the
rights of any other such taker or Holder of Securities or to obtain or seek to
obtain priority over or preference to any other such taker or Holder or to
enforce any right under this Indenture or any Security, except in the manner
herein provided and for the equal, ratable and common benefit of all Holders of
Securities of the applicable 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 5.7. Unconditional Right Of Securityholders To Institute
Certain Suits. Notwithstanding any other provision in this Indenture and any
provision of any Security, the right of any Holder of any Security to receive
payment of the principal of and interest on such Security on or after the
respective due dates expressed in such Security or the applicable redemption
dates provided for in such Security, or to institute suit for the enforcement of
any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.
SECTION 5.8. Powers And Remedies Cumulative; Delay Or Omission Not
Waiver Of Default. Except as provided in Section 5.6, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders of Securities is
intended to be exclusive of any other right or remedy and every right and remedy
shall, to the extent permitted by law, be cumulative and in addition to every
other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.
No delay or omission of the Trustee or of any Holder of 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 Event of Default or an acquiescence
therein. Every power and remedy given by this Indenture, any Security or law to
the Trustee or to the Holders of Securities may be exercised from time to time,
and as often as shall be deemed expedient, by the Trustee or, subject to Section
5.6, by the Holders of Securities.
SECTION 5.9. Control By Holders Of Securities. The Holders of a
majority in aggregate principal amount of the Securities of each series affected
(with each such series voting as a separate class) at the time Outstanding shall
have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee with respect to the Securities of such series by this
Indenture; PROVIDED, that such Holders shall have offered to the Trustee such
reasonable indemnity as it may require against costs, expenses and liabilities
to be incurred therein or thereby, and PROVIDED FURTHER, that such direction
shall not be otherwise than in accordance with law and the provisions of this
Indenture; and PROVIDED, FURTHER, that (subject to the provisions of Section
6.1) the Trustee shall have the right to decline to follow any such direction if
(a) the Trustee, being advised by counsel, shall determine that the action or
proceeding so directed may not lawfully be taken; or (b) if the Trustee by its
board of directors, the executive committee or a trust committee of directors or
Responsible Officers of the Trustee shall determine in good faith that the
action or proceedings so directed would involve the Trustee in personal
liability; or (c) if the Trustee in good faith shall so determine that the
actions or forbearances specified in or pursuant to such direction would be
unduly prejudicial to the interests of Holders of the Securities of all affected
series not joining in the giving of said direction, it being understood that
(subject to Section 6.1) the Trustee shall have no duty to ascertain whether or
not such actions or forbearances are unduly prejudicial to such Holders.
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Nothing in this Indenture shall impair the right of the Trustee in its
discretion to take any action deemed proper by the Trustee and which is not
inconsistent with such direction or directions by Securityholders.
SECTION 5.10. Waiver Of Past Defaults. Prior to the declaration of
acceleration of the maturity of the Securities of any series as provided in
Section 5.1, the Holders of a majority in aggregate principal amount of the
Securities of such series at the time Outstanding (voting as a single class) may
on behalf of the Holders of all such Securities waive any past default or Event
of Default described in Section 5.1 and its consequences, except (i) in the
payment of the principal of or premium, if any, or interest if any, on or any
additional amounts payable in respect of any security of that Series or (ii) a
default in respect of a covenant or provision hereof which cannot be modified or
amended without the consent of the Holder of each Security affected. In the case
of any such waiver, the Issuer, the Trustee and the Holders of all such
Securities shall be restored to their former positions and rights hereunder,
respectively, and such default shall cease to exist and be deemed to have been
cured and not to have occurred for purposes of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right
consequent thereon.
SECTION 5.11. Trustee To Give Notice Of Default, But May Withhold In
Certain Circumstances. The Trustee shall, within 90 days after the occurrence of
a default with respect to the Securities of any series, give notice of all
defaults with respect to that series known to the Trustee to all Holders of
Securities of such series in the manner and to the extent provided in Section
313(c) of the Trust Indenture Act, unless in each case such defaults shall have
been cured before the mailing or publication of such notice (the term "default"
for the purpose of this Section being hereby defined to mean any event or
condition which is, or with notice or lapse of time or both would become, an
Event of Default); PROVIDED, that, except in the case of default in the payment
of the principal of or interest on any of the Securities of such series, or in
the payment of any sinking fund installment on such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee, or a trust committee of directors or trustees and/or
Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Securityholders of such
series.
SECTION 5.12. Right Of Court To Require Filing Of Undertaking To Pay
Costs. All parties to this Indenture agree, and each Holder of any Security by
his or her acceptance thereof shall be deemed to have agreed, that any court may
in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys'
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder or group of
Securityholders of any series holding in the aggregate more than 10% in
aggregate principal amount of the Securities of such series, or, in the case of
any suit relating to or arising under clause (d) or (g) of Section 5.1 (if the
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suit relates to Securities of more than one but less than all series), 10% in
aggregate principal amount of Securities then Outstanding and affected thereby,
or in the case of any suit relating to or arising under clause (d) or (g) (if
the suit under clause (d) or (g) relates to all the Securities then Outstanding)
or (e) or (f) of Section 5.1, 10% in aggregate principal amount of all
Securities then Outstanding, or to any suit instituted by any Securityholder for
the enforcement of the payment of the principal of or interest on any Security
on or after the due date expressed in such Security or any date fixed for
redemption.
ARTICLE VI
CONCERNING THE TRUSTEE
SECTION 6.1. Duties And Responsibilities Of The Trustee; During
Default; Prior To Default. Prior to the occurrence of an Event of Default with
respect to the Securities of a particular series and after the curing or waiving
of all Events of Default which may have occurred with respect to such series,
the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture with respect to such series of
Securities. In case an Event of Default with respect to the Securities of a
series has occurred and has not been cured or waived, the Trustee shall exercise
with respect to such series of Securities such of the rights and powers vested
in it by this Indenture with respect to such series of Securities, and use the
same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own
affairs.
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:
(a) prior to the occurrence of an Event of Default with respect to
the Securities of any series and after the curing or waiving of all
such Events of Default with respect to such series which may have
occurred:
(i) the duties and obligations of the Trustee with respect to the
Securities of any series shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable
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
(ii) in the absence of bad faith on the part of the Trustee, the
Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon any
statements, certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but in the case of
any such statements, certificates or opinions which 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;
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(b) 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; and
(c) the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders pursuant to Section 5.9 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.
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 shall be reasonable ground for believing that the
repayment of such funds or adequate indemnity against such liability is not
reasonably assured to it.
The provisions of this Section 6.1 are in furtherance of and subject to
Section 315 of the Trust Indenture Act.
SECTION 6.2. Certain Rights Of The Trustee. In furtherance of and
subject to the Trust Indenture Act, and subject to Section 6.1:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, Officer's Certificate or
any other certificate, statement, instrument, opinion, report, notice,
request, consent, order, bond, debenture, note, coupon, 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 Issuer
mentioned herein shall be sufficiently evidenced by an Officer's
Certificate (unless other evidence in respect thereof is specifically
prescribed herein or in the terms established in respect of any
series); and any resolution of the Board of Directors shall be
evidenced to the Trustee by a copy thereof certified by the secretary
or an assistant secretary of the Issuer;
(c) the Trustee may consult with counsel and any written advice or
any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted to be
taken by it hereunder in good faith and in reliance thereon in
accordance with such advice or Opinion of Counsel;
(d) the Trustee shall be under no obligation to exercise any of
the trusts 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 reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred therein or
thereby;
(e) the Trustee shall not be liable for any action taken or
omitted by it in good faith and believed by it to be authorized or
within the discretion, rights or powers conferred upon it by this
Indenture;
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(f) prior to the occurrence of an Event of Default hereunder and
after the curing or waiving of all Events of Default, 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, appraisal, bond, debenture,
note, coupon, security or other paper or document unless (i) requested
in writing so to do by the Holders of not less than a majority in
aggregate principal amount of the Securities of all series affected
then Outstanding (treated as one class) or (ii) otherwise provided in
the terms of any series of Securities pursuant to Section 2.3;
PROVIDED, that, if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in
the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by the
terms of this Indenture, the Trustee may require reasonable indemnity
against such expenses or liabilities as a condition to proceeding; the
reasonable expenses of every such investigation shall be paid by the
Issuer or, if paid by the Trustee or any predecessor trustee, shall be
repaid by the Issuer upon demand; and
(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 not regularly in its employ and the Trustee shall not be
responsible for any misconduct or negligence on the part of any such
agent or attorney appointed with due care by it hereunder.
SECTION 6.3. Trustee Not Responsible For Recitals, Disposition Of
Securities Or Application Of Proceeds Thereof. The recitals contained herein and
in the Securities, except the Trustee's certificates of authentication, shall be
taken as the statements of the Issuer, and the Trustee assumes no responsibility
for the correctness of the same. The Trustee makes no representation as to the
validity or sufficiency of this Indenture or of the Securities. The Trustee
shall not be accountable for the use or application by the Issuer of any of the
Securities or of the proceeds thereof.
SECTION 6.4. Trustee And Agents May Hold Securities; Collections, Etc.
The Trustee or any agent of the Issuer or of the Trustee, 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 the Trustee or such agent and may otherwise
deal with the Issuer and receive, collect, hold and retain collections from the
Issuer with the same rights it would have if it were not the Trustee or such
agent.
SECTION 6.5. Held By Trustee. Subject to the provisions of Section 9.4
hereof, 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
mandatory provisions of law. Neither the Trustee nor any agent of the Issuer or
the Trustee shall be under any liability for interest on any moneys received by
it hereunder.
SECTION 6.6. Compensation And Indemnification Of Trustee And Its Prior
Claim. The Issuer covenants and agrees to pay to the Trustee from time to time,
and the Trustee shall be entitled to reasonable compensation (which shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust) and the Issuer covenants and agrees to pay or reimburse the
35
Trustee and each predecessor trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by or on behalf of it 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 agents and other persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its negligence or bad faith.
The Issuer also covenants to indemnify the Trustee and each predecessor trustee
for, and to hold it harmless against, any loss, liability or expense incurred
without negligence or bad faith on its part, arising out of or in connection
with the acceptance or administration of this Indenture or the trusts hereunder
and its duties hereunder, including the costs and expenses of defending itself
against or investigating any claim of liability in the premises. The obligations
of the Issuer under this Section to compensate and indemnify the Trustee and
each predecessor trustee and to pay or reimburse the Trustee and each
predecessor trustee for expenses, disbursements and advances shall constitute
additional indebtedness hereunder and shall survive the satisfaction and
discharge of this Indenture and the resignation or removal of the Trustee. Such
additional indebtedness shall be a senior claim 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 and the
Securities are hereby subordinated to such senior claim.
SECTION 6.7. Right Of Trustee To Rely On Officer's Certificate, Etc.
Subject to Sections 6.1 and 6.2, whenever in the administration of the trusts 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 any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or wilfull misconduct
on the part of the Trustee, be deemed to be conclusively proved and established
by an Officer's Certificate delivered to the Trustee, and such certificate, in
the absence of negligence or wilfull misconduct on the part of the Trustee,
shall be full warrant to the Trustee for any action taken, suffered or omitted
by it under the provisions of this Indenture upon the faith thereof.
SECTION 6.8. Indentures Not Creating Potential Conflict Ing Interests
For The Trustee. This Indenture is hereby specifically described for the
purposes of Section 310(b)(1)(i) of the Trust Indenture Act with respect to
series of Securities that are of an equal priority.
SECTION 6.9. Qualification Of Trustee; Conflicting Inter Ests. The
Trustee shall comply with Section 310(b) of the Trust Indenture Act.
SECTION 6.10. Persons Eligible For Appointment As Trustee. The Trustee
for each series of Securities hereunder shall at all times be a corporation or
banking association organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, having a
combined capital and surplus of at least $50,000,000, and which is authorized
under such laws to exercise corporate trust powers and is subject to supervision
or examination by Federal, state or District of Columbia authority. If such
corporation 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 shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
36
Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 6.11.
The provisions of this Section 6.10 are in furtherance of and subject
to Section 310(a) of the Trust Indenture Act.
SECTION 6.11. Resignation And Removal; Appointment Of Successor
Trustee.
(a) The Trustee, or any trustee or trustees hereafter appointed,
may at any time resign with respect to one or more or all series of
Securities by giving written notice of resignation to the Issuer and by
mailing notice of such resignation to the Holders of then Outstanding
Registered Securities of each series affected at their addresses as
they shall appear on the registry books. Upon receiving such notice of
resignation, the Issuer shall promptly appoint a successor trustee or
trustees with respect to the applicable series by written instrument in
duplicate, executed by authority of the Board of Directors, one copy of
which instrument shall be delivered to the resigning Trustee and one
copy to the successor trustee or trustees. If no successor trustee
shall have been so appointed with respect to any series 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, or any
Securityholder who has been a bona fide Holder of a Security or
Securities of the applicable series for at least six months may,
subject to the provisions of Section 5.12, 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 of the following shall occur:
(i) the Trustee shall fail to comply with the provisions of
Section 310(b) of the Trust Indenture Act with respect to any series
of Securities after written request therefor by the Issuer or by any
Securityholder who has been a bona fide Holder of a Security or
Securities of such series for at least six months; or
(ii) the Trustee shall cease to be eligible in accordance with the
provisions of Section 6.10 and Section 310(a) of the Trust Indenture
Act and shall fail to resign after written request therefor by the
Issuer or by any Securityholder; or
(iii) the Trustee shall become incapable of acting with respect to
any series of Securities, or shall be adjudged bankrupt or
insolvent, or a receiver or liquidator of the Trustee or of its
property shall be appointed, or any public officer shall take charge
or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation;
then, in any such case, the Issuer may remove the Trustee with respect to the
applicable series of Securities and appoint a successor trustee for such series
by written instrument, in duplicate, executed by order of the Board of Directors
37
of the Issuer, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor trustee, or, subject to the provisions of
Section 315(e) of the Trust Indenture Act, any Securityholder who has been a
bona fide Holder of a Security or Securities of such series for at least six
months may on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee with respect to such series. Such court may
thereupon, after such notice, if any, as it may deem proper and so prescribe,
remove the Trustee and appoint a successor trustee.
(c) The Holders of a majority in aggregate principal amount of the
Securities of each series at the time outstanding may at any time
remove the Trustee with respect to Securities of such series and
appoint a successor trustee with respect to the Securities of such
series by delivering to the Trustee so removed, to the successor
trustee so appointed and to the Issuer the evidence as of the action in
that regard taken by the Securityholders as provided for in Section
7.1.
(d) Any resignation or removal of the Trustee with respect to any
series and any appointment of a successor trustee with respect to such
series pursuant to any of the provisions of this Section 6.11 shall
become effective upon acceptance of appointment by the successor
trustee as provided in Section 6.12.
SECTION 6.12. Acceptance Of Appointment By Successor Trustee. Any
successor trustee appointed as provided in Section 6.11 shall execute and
deliver to the Issuer and to its predecessor trustee an instrument accepting
such appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee with respect to all or any applicable series shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all rights, powers, duties and obligations
with respect to such series of its predecessor hereunder, with like effect as if
originally named as trustee for such series hereunder; but, nevertheless, on the
written request of the Issuer or of the successor trustee, upon payment of its
charges then unpaid, the trustee ceasing to act shall, subject to Section 9.4,
pay over to the successor trustee all moneys at the time held by it hereunder
and shall execute and deliver an instrument transferring to such successor
trustee all such rights, powers, duties and obligations. Upon request of any
such successor trustee, the Issuer shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a prior claim upon all property or funds held or collected
by such trustee to secure any amounts then due it pursuant to the provisions of
Section 6.6.
If a successor trustee is appointed with respect to the Securities of
one or more (but not all) series, the Issuer, the predecessor trustee and each
successor trustee with respect to the Securities of any applicable series shall
execute and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the predecessor trustee with respect to the
Securities of any series as to which the predecessor trustee is not retiring
shall continue to be vested in the predecessor trustee, and 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 as co-trustees of the same trust and
38
that each such trustee shall be trustee of a trust or trusts under separate
indentures.
No successor trustee with respect to any series of Securities shall
accept appointment as provided in this Section 6.12 unless at the time of such
acceptance such successor trustee shall be qualified under Section 310(b) of the
Trust Indenture Act and eligible under the provisions of Section 6.10.
Upon acceptance of appointment by any successor trustee as provided in
this Section 6.12, the Issuer shall give notice thereof to the Holders of
Registered Securities of each series affected by mailing such notice to such
Holders at their addresses as they shall appear on the registry books. If the
acceptance of appointment is substantially contemporaneous with the resignation,
then the notice called for by the preceding sentence may be combined with the
notice called for by Section 6.11. If the Issuer fails to give such notice
within ten days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be given at the expense of the
Issuer.
SECTION 6.13. Merger, Conversion, Consolidation Or Succession To
Business Of Trustee. Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, PROVIDED, that such
corporation shall be qualified under Section 310(b) of the Trust Indenture Act
and eligible under the provisions of Section 6.10, 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 at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture, any of the Securities of any series shall have
been authenticated but not delivered, any such successor to the Trustee may
adopt the certificate of authentication of any predecessor trustee and deliver
such Securities so authenticated; and, in case at that time any of the
Securities of any series shall not have been authenticated, any such successor
to the Trustee may authenticate such Securities either in the name of any
predecessor hereunder or in the name of the successor Trustee; and in all such
cases such certificate of authentication shall have the full force which under
this Indenture or the Securities of such series it is provided that the
certificate of authentication of the Trustee shall have; PROVIDED, that the
right to adopt the certificate of authentication of any predecessor trustee or
to authenticate Securities of any series in the name of any predecessor trustee
shall apply only to its successor or successors by merger, conversion or
consolidation.
SECTION 6.14. Preferential Collection Of Claims Against The Issuer. The
Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding
any creditor relationship as provided 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 indicated therein.
SECTION 6.15. Appointment Of Authenticating Agent. As long as any
Securities of a series remain Outstanding, the Trustee may, by an instrument in
writing, appoint with the approval of the Issuer an authenticating agent (the
39
"Authenticating Agent") which shall be authorized to act on behalf of the
Trustee to authenticate Securities, including Securities issued upon exchange,
registration of transfer, partial redemption or pursuant to Section 2.9.
Securities of each such series authenticated by such Authenticating Agent shall
be entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee. Whenever reference is made
in this Indenture to the authentication and delivery of Securities of any series
by the Trustee or to the Trustee's Certificate of Authentication, such reference
shall be deemed to include authentication and delivery on behalf of the Trustee
by an Authenticating Agent for such series and a Certificate of Authentication
executed on behalf of the Trustee by such Authenticating Agent. Such
Authenticating Agent shall at all times be a corporation organized and doing
business under the laws of the United States of America or of any State,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $45,000,000 (determined as provided in Section
6.10 with respect to the Trustee) and subject to supervision or examination by
federal or state authority.
Any corporation into which any Authenticating Agent may be merged or
converted, or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which any Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency business
of any Authenticating Agent, shall continue to be the Authenticating Agent with
respect to all series of Securities for which it served as Authenticating Agent
without the execution or filing of any paper or any further act on the part of
the Trustee or such Authenticating Agent. Any Authenticating Agent may at any
time, and if it shall cease to be eligible shall, resign by giving written
notice of resignation to the Trustee and to the Issuer.
Upon receiving such a notice of resignation or upon such a termination,
or in case at any time any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 6.15 with respect to one or more
series of Securities, the Trustee shall upon receipt of an Issuer Order appoint
a successor Authenticating Agent and the Issuer shall provide notice of such
appointment to all Holders of Securities of such series in the manner and to the
extent provided in Section 11.2. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all rights,
powers, duties and responsibilities of its predecessor hereunder, with like
effect as if originally named as Authenticating Agent. The Issuer agrees to pay
to the Authenticating Agent for such series from time to time reasonable
compensation. The Authenticating Agent for the Securities of any series shall
have no responsibility or liability for any action taken by it as such at the
direction of the Trustee.
Sections 6.2, 6.3, 6.4, 6.6 and 7.3 shall be applicable to any
Authenticating Agent.
ARTICLE VII
CONCERNING THE SECURITYHOLDERS
SECTION 7.1. Evidence Of Action Taken By Securityholders. Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by a specified percentage in
principal amount of the Securityholders of any or all series may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such specified percentage of Securityholders in person or by agent duly
40
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee. Proof of execution of any instrument or of a writing appointing
any such agent shall be sufficient for any purpose of this Indenture, and
subject to the provisions of Sections 6.1 and 6.2, conclusive in favor of the
Trustee and the Issuer, if made in the manner provided in this Article.
SECTION 7.2. Proof Of Execution Of Instruments And Of Holding Of
Securities. Subject to the provisions of Sections 6.1 and 6.2, the execution of
any instrument by a Securityholder or his or her agent or proxy may be proved in
accordance with such reasonable rules and regulations as may be prescribed by
the Trustee or in such manner as shall be satisfactory to the Trustee. The
holding of Registered Securities shall be proved by the Security register or by
a certificate of the registrar thereof.
SECTION 7.3. Holders To Be Treated As Owners. The Issuer, the Trustee
and any agent of the Issuer or the Trustee may deem and treat the person in
whose name any Security shall be registered upon the Security register for such
series as the absolute owner of such Security (whether or not such Security
shall be overdue and notwithstanding any notation of ownership or other writing
thereon) for the purpose of receiving payment of or on account of the principal
of and, subject to the provisions of this Indenture, interest on such Security
and for all other purposes; and neither the Issuer nor the Trustee nor any agent
of the Issuer or the Trustee shall be affected by any notice to the contrary.
SECTION 7.4. Securities Owned By Issuer Deemed Not Outstanding. In
determining whether the Holders of the requisite aggregate principal amount of
Outstanding Securities of any or all series have concurred in any request,
demand, authorization, direction, notice, consent, waiver or other action by
Securityholders under this Indenture, Securities which are owned by the Issuer
or any other obligor on the Securities with respect to which such determination
is being made or by any person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Issuer or any other
obligor on the Securities with respect to which such determination is being made
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 action only Securities which
the Trustee knows are so owned shall be so disregarded. Securities so owned
which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee's right so to
act with respect to such Securities and that the pledgee is not the Issuer or
any other obligor upon the Securities or any person directly or indirectly
controlling or controlled by or under direct or indirect common control with the
Issuer or any other obligor on the Securities. In case of a dispute as to such
right, the advice of counsel shall be full protection in respect of any decision
made by the Trustee in accordance with such advice. Upon request of the Trustee,
the Issuer shall furnish to the Trustee promptly an Officer's Certificate
listing and identifying all Securities, if any, known by the Issuer to be owned
or held by or for the account of any of the above-described persons; and,
subject to the provisions of Sections 6.1 and 6.2, the Trustee shall be entitled
to accept such Officer's Certificate as conclusive evidence of the facts therein
set forth and of the fact that all Securities not listed therein are Outstanding
for the purpose of any such determination.
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SECTION 7.5. Right Of Revocation Of Action Taken. At any time prior to
(but not after) the evidencing to the Trustee, as provided in Section 7.1, of
the taking of any action by the Holders of the percentage in aggregate principal
amount of the Securities of any or all series, as the case may be, specified in
this Indenture in connection with such action, any Holder of a Security the
serial number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action
may, by filing written notice at the Corporate Trust Office and upon proof of
holding as provided in this Article, 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 Securities issued in exchange or
substitution therefor or on registration of transfer thereof, irrespective of
whether or not any notation in regard thereto is made upon any such Security.
Any action taken by the Holders of the percentage in aggregate principal amount
of the Securities of any or all series, as the case may be, specified in this
Indenture in connection with such action shall be conclusively binding upon the
Issuer, the Trustee and the Holders of all the Securities affected by such
action.
ARTICLE VIII
SUPPLEMENTAL INDENTURES
SECTION 8.1. Supplemental Indentures Without Consent Of
Securityholders. The Issuer, when authorized by a resolution of its Board of
Directors (which resolution may provide general terms or parameters for such
action and may provide that the specific terms of such action may be determined
in accordance with or pursuant to an Issuer Order), and the Trustee may from
time to time and at any time enter into an indenture or indentures supplemental
hereto for one or more of the following purposes:
(a) to evidence the succession of another corporation to the
Issuer, or successive successions, and the assumption by the successor
corporation of the covenants, agreements and obligations of the Issuer
pursuant to any applicable covenants herein and pursuant to the terms
of the Securities as set forth in Section 2.3;
(b) to add to the covenants of the Issuer such further covenants,
restrictions, conditions or provisions as the Issuer and the Trustee
shall consider to be for the protection of the Holders of Securities
and to make the occurrence, or the occurrence and continuance, of a
default in any such additional covenants, restrictions, conditions or
provisions an Event of Default permitting the enforcement of all or any
of the several remedies provided in this Indenture as herein set forth;
PROVIDED, that in respect of any such additional covenant, restriction,
condition or provision such supplemental indenture may provide for a
particular period of grace after default (which period may be shorter
or longer than that allowed in the case of other defaults) or may
provide for an immediate enforcement upon such an Event of Default or
may limit the remedies available to the Trustee upon such an Event of
Default or may limit the right of the Holders of a majority in
aggregate principal amount of the Securities of such series to waive
such an Event of Default;
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(c) to cure any ambiguity or to correct or supplement any
provision contained herein or in any supplemental indenture which may
be defective or inconsistent with any other provision contained herein
or in any supplemental indenture, or to make any other provisions as
the Issuer may deem necessary or desirable, PROVIDED, that no such
action shall adversely affect the interests of the Holders of the
Securities in any material respect; and
(d) to evidence and provide for the acceptance of appointment
hereunder by a successor trustee with respect to the Securities of one
or more series and to add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one trustee,
pursuant to the requirements of Section 6.12.
The Trustee is hereby authorized to join with the Issuer in the
execution of any such supplemental indenture, to make any further appropriate
agreements and stipulations which may be therein contained and to accept the
conveyance, transfer, assignment, mortgage or pledge of any property thereunder,
but the Trustee shall not be obligated to enter into any such supplemental
indenture which 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 without the consent of the Holders of any of the Securities at
the time outstanding, notwithstanding any of the provisions of Section 8.2.
SECTION 8.2. Supplemental Indentures With Consent Of Securityholders.
(a) Except as set forth in paragraph (b) below, with the consent
(evidenced as provided in Article VII) of the Holders of not less than
a majority in aggregate principal amount of the Securities at the time
Outstanding of all series of Securities affected by such supplemental
indenture (voting as one class), the Issuer, when authorized by a
resolution of its Board of Directors (which resolution may provide
general terms or parameters for such action and may provide that the
specific terms of such action may be determined in accordance with or
pursuant to an Issuer Order), 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 in force and effect at the date of execution thereof) for the
purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying in any manner the rights of the
Holders of the Securities of each such series.
(b) No such supplemental indenture shall (i) extend the final
maturity of any Security, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon, or
reduce any amount payable on redemption thereof, or make the principal
thereof (including any amount in respect of original issue discount),
or interest thereon payable in any coin or currency other than that
provided in the Securities or in accordance with the terms thereof, or
reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon an acceleration of the
43
maturity thereof pursuant to Section 5.1 or the amount thereof provable
in bankruptcy pursuant to Section 5.2, or impair or affect the right of
any Securityholder to institute suit for the payment thereof when due
or, if the Securities provide therefor, any right of repayment at the
option of the Securityholder, in each case without the consent of the
Holder of each Security so affected, or (ii) reduce the aforesaid
percentage of Securities of any series, the consent of the Holders of
which is required for any such supplemental indenture, without the
consent of the Holders of each Security so affected.
(c) A supplemental indenture which changes or eliminates any
covenant or other provision of this Indenture which has expressly been
included solely for the benefit of one or more particular series of
Securities, or which modifies the rights of Holders of Securities of
such series, with respect to such covenant or provision, shall be
deemed not to affect the rights under this Indenture of the Holders of
Securities of any other series.
(d) Upon the request of the Issuer, accompanied by a copy of a
resolution of the Board of Directors (which resolution may provide
general terms or parameters for such action and may provide that the
specific terms of such action may be determined in accordance with or
pursuant to an Issuer Order) certified by the secretary or an assistant
secretary of the Issuer authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of
evidence of the consent of the Holders of the Securities as aforesaid
and other documents, if any, required by Section 7.1, the Trustee shall
join with the Issuer in the execution of such supplemental indenture
unless such supplemental indenture affects the Trustee's own rights,
duties or immunities under this Indenture or otherwise, in which case
the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.
It shall not be necessary for the consent of the Securityholders 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.
Promptly after the execution by the Issuer and the Trustee of any
supplemental indenture pursuant to the provisions of this Section 8.2, the
Trustee shall give notice thereof to the Holders of then Outstanding Registered
Securities of each series affected thereby, by mailing a notice thereof by
first-class mail to such Holders at their addresses as they shall appear on the
Security register, and such notice shall set forth in general terms the
substance of such supplemental indenture. Any failure of the Issuer to give such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.
SECTION 8.3. Effect Of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall 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 Issuer and the Holders of Securities of
each 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.
44
SECTION 8.4. Documents To Be Given To Trustee. The Trustee, subject to
the provisions of Sections 6.1 and 6.2, may receive an Officer's Certificate and
an Opinion of Counsel as conclusive evidence that any supplemental indenture
executed pursuant to this Article VIII complies with the applicable provisions
of this Indenture.
SECTION 8.5. Notation On Securities In Respect Of Supple Mental Indentures.
Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article may bear a
notation in form approved by the Trustee for such series as to any matter
provided for by such supplemental indenture or as to any action taken by
Securityholders. If the Issuer or the Trustee shall so determine, new Securities
of any series so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Issuer, authenticated by the
Trustee and delivered in exchange for the Securities of such series then
Outstanding.
ARTICLE IX
SATISFACTION AND DISCHARGE OF INDENTURE;
UNCLAIMED MONEYS
SECTION 9.1. Satisfaction And Discharge Of Indenture.
(a) The following provisions shall apply to the Securities of each
series unless specifically otherwise provided in a Board Resolution,
Officer's Certificate or supplemental indenture provided pursuant to
Section 2.3. If at any time (i) the Issuer shall have paid or caused to
be paid the principal of and interest on all the Securities of any
series Outstanding hereunder and (other than Securities of such series
which have been destroyed, lost or stolen and which have been replaced
or paid as provided in Section 2.9) as and when the same shall have
become due and payable, or (ii) the Issuer shall have delivered to the
Trustee for cancellation all Securities of any series theretofore
authenticated (other than any Securities of such series which shall
have been destroyed, lost or stolen and which shall have been replaced
or paid as provided in Section 2.9) or (iii) in the case of any series
of Securities where the exact amount of principal of and interest due
on which can be determined at the time of making the deposit referred
to in clause (b) below, (a) all the Securities of such series not
theretofore delivered to the Trustee for cancellation shall have become
due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption, and (b) the Issuer shall have irrevocably deposited or
caused to be deposited with the Trustee funds in trust the entire
amount in (i) cash (other than moneys repaid by the Trustee or any
paying agent to the Issuer in accordance with Section 9.4), (ii) direct
obligations of the United States of America or obligations of a Person
controlled or supervised by and acting as an agency or instrumentality
of the United States, the payment of which is unconditionally
guaranteed as a full faith and credit obligation of the United States,
which are not callable or redeemable at the option of the issuer
thereof ("U.S. Government Obligations"), maturing as to principal and
interest at such times and in such amounts as will insure the
45
availability of cash sufficient to pay at such maturity or upon such
redemption, as the case may be, or (iii) a combination thereof,
sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay (x) the principal and interest
on all Securities of such series on each date that such principal or
interest is due and payable and (y) any mandatory sinking fund payments
on the dates on which such payments are due and payable in accordance
with the terms of the Indenture and the Securities of such series; and
if, in any such case, the Issuer shall also pay or cause to be paid all
other sums payable hereunder by the Issuer, then this Indenture shall
cease to be of further effect (except as to (i) rights of registration
of transfer and exchange of Securities of such Series pursuant to
Section 2.8 and the Issuer's right of optional redemption, if any, (ii)
substitution of mutilated, defaced, destroyed, lost or stolen
Securities (iii) rights of holders of Securities pursuant to Section
2.8 to receive payments of principal thereof and interest thereon, upon
the original stated due dates therefor (but not upon acceleration), and
remaining rights of the Holders to receive mandatory sinking fund
payments, if any, (iv) the rights, obligations, duties and immunities
of the Trustee hereunder, including those under Section 6.6, (v) the
rights of the Holders of Securities of such series as beneficiaries
hereof with respect to the property so deposited with the Trustee
payable to all or any of them, and (vi) the obligations of the Issuer
under Section 3.2) and the Trustee, on demand of the Issuer accompanied
by an Officer's Certificate and an Opinion of Counsel and at the cost
and expense of the Issuer, shall execute proper instruments
acknowledging such satisfaction of and discharging this Indenture;
PROVIDED, that the rights of Holders of the Securities to receive
amounts in respect of principal of and interest on the Securities held
by them shall not be delayed longer than required by then-applicable
mandatory rules or policies of any securities exchange upon which the
Securities are listed. The Issuer agrees to reimburse the Trustee for
any costs or expenses thereafter reasonably and properly incurred and
to compensate the Trustee for any services thereafter reasonably and
properly rendered by the Trustee in connection with this Indenture or
the Securities of such series.
(b) The following provisions shall apply to the Securities of each
series unless specifically otherwise provided in a Board Resolution,
Officer's Certificate or supplemental indenture provided pursuant to
Section 2.3. In addition to discharge of the Indenture pursuant to the
next preceding paragraph, in the case of any series of Securities the
exact amounts of principal of and interest due on which can be
determined at the time of making the deposit referred to in clause (a)
below, the Issuer shall be deemed to have paid and discharged the
entire indebtedness on all the Securities of such a series on the date
of the deposit referred to in subparagraph (a) below, and the
provisions of this Indenture with respect to the Securities of such
series shall no longer be in effect (except as to (i) rights of
registration of transfer and exchange of Securities of such series
pursuant to Section 2.8 and the Issuer's right of optional redemption,
if any, (ii) substitution of mutilated, defaced, destroyed, lost or
stolen Securities, (iii) rights of Holders of Securities to receive
payments of principal thereof and interest thereon, upon the original
stated due dates therefor (but not upon acceleration), and remaining
rights of the Holders to receive mandatory sinking fund payments, if
any, (iv) the rights, obligations, duties and immunities of the Trustee
hereunder, (v) the rights of the Holders of Securities of such series
as beneficiaries hereof with respect to the property so deposited with
46
the Trustee payable to all or any of them and (vi) the obligations of
the Issuer under Section 3.2) and the Trustee, at the expense of the
Issuer, shall at the Issuer's request, execute proper instruments
acknowledging the same, if:
(i) with reference to this provision the Issuer has irrevocably
deposited or caused to be irrevocably deposited with the Trustee as
funds in trust, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities of such
series: (x) cash in an amount, or (y) U.S. Government Obligations,
maturing as to principal and interest at such times and in such
amounts as will insure the availability of cash or (z) a combination
thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay (A) the
principal and interest on all Securities of such series on each date
that such principal or interest is due and payable and (B) any
mandatory sinking fund payments on the dates on which such payments
are due and payable in accordance with the terms of the Indenture
and the Securities of such series;
(ii) such deposit will not result in a breach or violation of, or
constitute a default under, any agreement or instrument to which the
Issuer is a party or by which it is bound;
(iii) the Issuer has delivered to the Trustee an opinion of
counsel from a nationally recognized law firm based on the fact that
(x) the Issuer has received from, or there has been published by,
the IRS a ruling or (y) since the date hereof, there has been a
change in the applicable United States federal income tax law, in
either case to the effect that, and such opinion shall confirm that,
the Holders of the Securities of such series will not recognize
income, gain or loss for United States federal income tax purposes
as a result of such deposit, defeasance and discharge and will be
subject to United States federal income tax on the same amount and
in the same manner and at the same times, as would have been the
case if such deposit, defeasance and discharge had not occurred;
(iv) the Issuer has delivered to the Trustee an Opinion of Counsel
to the effect that after the 91st day following the deposit, the
trust funds will not be subject to avoidance as a preferential
transfer under Section 547(b) of the United States Bankruptcy Code
(except with respect to any Holder that is an "insider" of the
Issuer within the meaning of the United States Bankruptcy Code); and
(v) the Issuer has delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to the defeasance
contemplated by this provision have been complied with.
(c) If the trustee or any paying agent is unable to apply any
money in accordance with this Indenture by reason of any order or
judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting that application, then the Issuer's
obligations under this Indenture and the Securities shall be revived
47
and reinstated as though no deposit had occurred pursuant to this
Indenture, until such time as the Trustee or paying agent is permitted
to apply all money in accordance with this Indenture; provided,
however, that if the Issuer makes any payment of principal of (or
premium, if any) or interest, if any, on any Security following the
reinstatement of such obligations, the Issuer will be subrogated to the
rights of the Holders to receive such payment from the money held by
the Trustee or paying agent.
(d) The Issuer shall be released from its obligations under
Sections 3.6 and 3.7 and unless otherwise provided for in the Board
Resolution and/or Officer's Certificate establishing such series of
Securities, from all covenants and other obligations referred to in
Section 2.3(14) or 2.3(15) with respect to such series of Securities,
outstanding on and after the date the conditions set forth below are
satisfied (hereinafter, "covenant defeasance"). For this purpose, such
covenant defeasance means that, with respect to the Outstanding
Securities of any series, the Issuer may omit to comply with and shall
have no liability in respect of any term, condition or limitation set
forth in such Section, whether directly or indirectly by reason of any
reference elsewhere herein to such Section or by reason of any
reference in such Section to any other provision herein or in any other
document and such omission to comply shall not constitute an Event of
Default under Section 5.1, but the remainder of this Indenture and such
Securities shall be unaffected thereby. The following shall be the
conditions to application of this subsection (d) of this Section 9.1,
unless otherwise provided for in the Board Resolution and/or Officer's
Certificate establishing such series of Securities:
(i) The Issuer has irrevocably deposited or caused to be deposited
with the Trustee as trust funds in trust for the purpose of making
the following payments, specifically pledged as security for, and
dedicated solely to, the benefit of the holders of the Securities of
such series, (i) cash in an amount, or (ii) U.S. Government
Obligations maturing as to principal and interest at such times and
in such amounts as will insure the availability of cash or (iii) a
combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay (A)
the principal and interest on all Securities of such series and (B)
any mandatory sinking fund payments on the day on which such
payments are due and payable in accordance with the terms of the
Indenture and the Securities of such series;
(ii) No Event of Default or event which with notice or lapse of
time or both would become an Event of Default with respect to the
Securities shall have occurred and be continuing on the date of such
deposit;
(iii) Such covenant defeasance shall not cause the Trustee to have
a conflicting interest as defined in Section 6.9 or for purposes of
the Trust Indenture Act with respect to any securities of the
Issuer;
(iv) Such covenant defeasance shall not result in a breach or
violation of, or constitute a default under any agreement or
instrument to which the Issuer is a party or by which it is bound;
48
(v) Such covenant defeasance shall not cause any Securities then
listed on any registered national securities exchange under the
Exchange Act to be delisted;
(vi) The Issuer shall have delivered to the Trustee an Officer's
Certificate and an opinion of counsel from a nationally recognized
law firm to the effect that the Holders of the Securities of such
series will not recognize income, gain or loss for United States
federal income tax purposes as a result of such covenant defeasance
and will be subject to United States federal income tax on the same
amounts, in the same manner and at the same times as would have been
the case if such covenant defeasance had not occurred;
(vii) The Issuer has delivered to the Trustee an Opinion of
Counsel to the effect that after the 91st day following the deposit,
the trust funds will not be subject to avoidance as a preferential
transfer under Section 547(b) of the United States Bankruptcy Code
(except with respect to any Holder that is an "insider" of the
Issuer within the meaning of the United States Bankruptcy Code); and
(viii) The Issuer shall have delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to the covenant
defeasance contemplated by this provision have been complied with.
SECTION 9.2. Application By Trustee Of Funds Deposited For Payment Of
Securities. Subject to Section 9.4, all moneys deposited with the Trustee (or
other trustee) pursuant to Section 9.1 shall be held in trust and applied by it
to the payment, either directly or through any paying agent (including the
Issuer acting as its own paying agent), to the Holders of the particular
Securities of such series for the payment or redemption of which such moneys
have been deposited with the Trustee, of all sums due and to become due thereon
for principal and interest; but such money need not be segregated from other
funds except to the extent required by law.
SECTION 9.3. Repayment Of Moneys Held By Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to Securities
of any series, all moneys then held by any paying agent under the provisions of
this Indenture with respect to such series of Securities shall, upon demand of
the Issuer, be repaid to it or paid to the Trustee and thereupon such paying
agent shall be released from all further liability with respect to such moneys.
SECTION 9.4. Return Of Moneys Held By Trustee And Paying Agent
Unclaimed For Two Years. Any moneys deposited with or paid to the Trustee or any
paying agent for the payment of the principal of or interest on any Security of
any series and not applied but remaining unclaimed for two years after the date
upon which such principal or interest shall have become due and payable, shall,
upon the written request of the Issuer and unless otherwise required by
mandatory provisions of applicable
49
escheat or abandoned or unclaimed property law, be repaid to the Issuer by the
Trustee for such series or such paying agent, and the Holder of the Securities
of such series shall, unless otherwise required by mandatory provisions of
applicable escheat or abandoned or unclaimed property laws, thereafter look only
to the Issuer for any payment which such Holder may be entitled to collect, and
all liability of the Trustee or any paying agent with respect to such moneys
shall thereupon cease; PROVIDED, that the Trustee or such paying agent, before
being required to make any such repayment with respect to moneys deposited with
it for any payment shall at the expense of the Issuer, mail by first-class mail
to Holders of such Securities at their addresses as they shall appear on the
Security register, notice that such moneys remain and that, after a date
specified therein, which shall not be less than 30 days from the date of such
mailing or publication, any unclaimed balance of such money then remaining will
be repaid to the Issuer.
SECTION 9.5. Indemnity For U.S. Government Of Obligations. The Issuer
shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to
Section 9.1 or the principal or interest received in respect of such
obligations.
ARTICLE X
MISCELLANEOUS PROVISIONS
SECTION 10.1. Incorporators, Shareholders, Officers And Directors Of
Issuer Exempt From Individual Liability. No recourse under or upon any
obligation, covenant or agreement contained in this Indenture, or in any
Security, or because of any indebtedness evidenced thereby, shall be had against
any incorporator, as such, or against any past, present or future shareholder,
officer or director, as such, of the Issuer or of any successor, either directly
or through the Issuer or any successor, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any legal
or equitable proceeding or otherwise, all such liability being expressly waived
and released by the acceptance of the Securities by the Holders thereof and as
part of the consideration for the issue of the Securities.
SECTION 10.2. Provisions Of Indenture For The Sole Benefit Of Parties
And Holders Of Securities. Nothing in this Indenture, in the Securities,
expressed or implied, shall give or be construed to give to any person, firm or
corporation, other than the parties thereto and their successors and the Holders
of the Securities any legal or equitable right, remedy or claim under this
Indenture or under any covenant or provision herein contained, all such
covenants and provisions being for the sole benefit of the parties hereto and
their successors and of the Holders of the Securities.
SECTION 10.3. Successors And Assigns Of Issuer Bound By Indenture. All
the covenants, stipulations, promises and agreements in this Indenture contained
by or in behalf of the Issuer shall bind its successors and assigns, whether so
expressed or not.
SECTION 10.4. Notices And Demands On Issuer, Trustee And Holders Of
Securities. Any notice or demand which by any provision of this Indenture is
required or permitted to be given or served by the Trustee or by the Holders of
Securities to or on the Issuer may be given or served by being deposited postage
prepaid, first-class mail (except as otherwise specifically provided herein)
addressed (until another address of the Issuer is filed by the Issuer with the
50
Trustee) to Exelon Corporation, 10 South Dearborn Street, 37th Floor, Post
Office Box A-3005, Chicago, Illinois 60690-3005, Attention: Secretary. Any
notice, direction, request or demand by the Issuer or any Holder of Securities
to or upon the Trustee shall be deemed to have been sufficiently given or served
by being deposited postage prepaid, first-class mail (except as otherwise
specifically provided herein) addressed (until another address of the Trustee is
filed by the Trustee with the Issuer) to, ________________ Attention: Corporate
Trust Administration.
Where this Indenture provides for notice to Holders of Registered
Securities, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class mail, postage prepaid,
to each Holder entitled thereto, at his or her last address as it appears in the
Security register.
In any case where notice to such Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.
In case, by reason of the suspension of or irregularities in regular
mail service, it shall be impracticable to mail notice to the Issuer when such
notice is required to the given pursuant to any provision of this Indenture,
then any manner of giving such notice as shall be reasonably satisfactory to the
Trustee shall be deemed to be a sufficient giving of such notice.
SECTION 10.5. Officer's Certificates And Opinions Of Counsel;
Statements To Be Contained Therein. Upon any application or demand by the Issuer
to the Trustee to take any action under any of the provisions of this Indenture,
the Issuer shall furnish to the Trustee an Officer's 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,
except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.
Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture shall include (a) a statement that the person
making such certificate or opinion has read such covenant or condition, (b) a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based, (c) a statement that, in the opinion of such person, he 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 (d) a statement as to whether or not, in the opinion of
such person, such condition or covenant has been complied with.
Any certificate, statement or opinion of an officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of or representations by counsel, unless such officer knows that the certificate
51
or opinion or representations with respect to the matters upon which his or her
certificate, statement or opinion may be based as aforesaid are erroneous, or in
the exercise of reasonable care should know that the same are erroneous. Any
certificate, statement or opinion of counsel may be based, insofar as it relates
to factual matters or information in the possession of the Issuer, upon the
certificate, statement or opinion of or representations by an officer or
officers of the Issuer, unless such counsel knows that the certificate,
statement or opinion or representations with respect to the matters upon which
his or her certificate, statement or opinion may be based as aforesaid are
erroneous, or in the exercise of reasonable care should know that the same are
erroneous.
Any certificate, statement or opinion of an officer of the Issuer or of
counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Issuer, unless such officer or counsel, as the
case may be, knows that the certificate or opinion of or representations with
respect to the accounting matters upon which his or her certificate, statement
or opinion may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous.
Any certificate or opinion of any independent firm of public
accountants filed with and directed to the Trustee shall contain a statement
that such firm is independent.
SECTION 10.6. Payments Due On Saturdays, Sundays And Holidays. If the
date of maturity of interest on or principal of the Securities of any series or
the date fixed for redemption or repayment of any such Security shall not be a
Business Day, then payment of interest or principal need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on the date of maturity or the date fixed for redemption,
and no interest shall accrue for the period after such date.
SECTION 10.7. Conflict Of Any Provision Of Indenture With Trust
Indenture Act. If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with duties imposed by, or with another provision (an
"incorporated provision") included in this Indenture by operation of Sections
310 to 318, inclusive, of the Trust Indenture Act, such imposed duties or
incorporated provision shall control.
SECTION 10.8. PENNSYLVANIA LAW TO GOVERN. THIS INDENTURE AND EACH
SECURITY SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE COMMONWEALTH OF
PENNSYLVANIA, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF SUCH COMMONWEALTH.
SECTION 10.9. 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 10.10. Effect Of Headings. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.
52
ARTICLE XI
REDEMPTION OF SECURITIES AND SINKING FUNDS
SECTION 11.1. Applicability Of Article. The provisions of this Article
shall be applicable to the Securities of any series which are redeemable before
their maturity or to any sinking fund for the retirement of Securities of a
series except as otherwise specified as contemplated by Section 2.3 for
Securities of such series.
SECTION 11.2. Notice Of Redemption; Partial Redemptions. Notice of
redemption to the Holders of Registered Securities of any series to be redeemed
as a whole or in part at the option of the Issuer shall be given by mailing
notice of such redemption by first class mail, postage prepaid, at least 30 days
and not more than 60 days prior to the date fixed for redemption to such Holders
of Securities of such series at their last addresses as they shall appear upon
the registry books. Any notice which is mailed in the manner herein provided
shall be conclusively presumed to have been duly given, whether or not the
Holder receives the notice. Failure to give notice by mail, or any defect in the
notice to the Holder of any Security of a series designated for redemption as a
whole or in part shall not affect the validity of the proceedings for the
redemption of such Security of such series.
The notice of redemption to each such Registered Holder shall specify
the principal amount of each Security of such series held by such Registered
Holder to be redeemed, the date fixed for redemption, the redemption price, the
place or places of payment, that payment will be made upon presentation and
surrender of such Securities, that such redemption is pursuant to the mandatory
or optional sinking fund, or both, if such be the case, that interest accrued to
the date fixed for redemption will be paid as specified in such notice and that
on and after said date interest thereon or on the portions thereof to be
redeemed will cease to accrue. In case any Security of a series is to be
redeemed in part only, the notice of redemption to Registered Holders of
Securities of the series shall state the portion of the principal amount thereof
to be redeemed and shall state that on and after the date fixed for redemption,
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.
The notice of redemption of Securities of any series to be redeemed at
the option of the Issuer shall be given by the Issuer or, at the Issuer's
request, by the Trustee in the name and at the expense of the Issuer.
On or before the redemption date specified in the notice of redemption
given as provided in this Section, the Issuer will deposit with the Trustee or
with one or more paying agents (or, if the Issuer is acting as its own paying
agent, set aside, segregate and hold in trust as provided in Section 3.4) an
amount of money sufficient to redeem on the redemption date all the Securities
of such series so called for redemption at the appropriate redemption price,
together with accrued interest to the date fixed for redemption. The Issuer will
deliver to the Trustee at least 70 days prior to the date fixed for redemption,
or such shorter period as shall be acceptable to the Trustee, an Officer's
Certificate stating the aggregate principal amount of Securities to be redeemed.
In case of a redemption at the election of the Issuer prior to the expiration of
53
any restriction on such redemption, the Issuer shall deliver to the Trustee,
prior to the giving of any notice of redemption to Holders pursuant to this
Section, an Officer's Certificate stating that such restriction has been
complied with.
If less than all the Securities of a series are to be redeemed, the
Trustee shall select, in such manner as it shall deemed appropriate and fair, in
its sole discretion, Securities of such series to be redeemed in whole or in
part. Securities may be redeemed in part in multiples equal to the minimum
authorized denomination for Securities of such series or any multiple thereof.
The Trustee shall promptly notify the Issuer in writing of the Securities of
such series selected for redemption and, in the case of any Securities of such
series selected for partial redemption, the principal amount thereof to be
redeemed. For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities of any series
shall relate, in the case of any Security redeemed or to be redeemed only in
part, to the portion of the principal amount of such Security which has been or
is to be redeemed.
SECTION 11.3. Payment Of Securities Called For Redemption. If notice of
redemption has been given as above provided, the Securities or portions of
Securities 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 on and after said
date (unless the Issuer shall default in the payment of such Securities at the
redemption price, together with interest accrued to said date) interest on the
Securities or portions of Securities so called for redemption shall cease to
accrue, and, except as provided in Sections 6.5 and 9.4, such Securities shall
cease from and after the date fixed for redemption to be entitled to any benefit
or security under this Indenture, and the Holders thereof shall have no right in
respect of such Securities except the right to receive the redemption price
thereof and unpaid interest to the date fixed for redemption. On presentation
and surrender of such Securities at a place of payment specified in said notice,
said Securities or the specified portions thereof shall be paid and redeemed by
the Issuer at the applicable redemption price, together with interest accrued
thereon to the date fixed for redemption; PROVIDED, that payment of interest
becoming due on or prior to the date fixed for redemption shall be payable to
the Holder of such Registered Securities registered as such on the relevant
record date, subject to the terms and provisions of Section 2.3 and 2.7 hereof.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid or duly
provided for, bear interest from the date fixed for redemption at the rate of
interest or Yield to Maturity (in the case of an Original Issue Discount
Security) borne by such Security.
Upon presentation of any Security redeemed in part only, the Issuer
shall execute and the Trustee shall authenticate and deliver to or on the order
of the Holder thereof, at the expense of the Issuer, a new Security or
Securities of such series, of authorized denominations, in principal amount
equal to the unredeemed portion of the Security so presented.
SECTION 11.4. Exclusion Of Certain Securities From Eligibility For
Selection For Redemption. Securities shall be excluded from eligibility for
selection for redemption if they are identified by registration and certificate
number in an Officer's Certificate delivered to the Trustee at least 40 days
prior to the last date on which notice of redemption may be given as being owned
of record and beneficially by, and not pledged or hypothecated by, either (a)
54
the Issuer or (b) an entity specifically identified in such written statement as
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Issuer.
SECTION 11.5. Mandatory And Optional Sinking Funds. The minimum amount
of any sinking fund payment provided for by the terms of the Securities of any
series is herein referred to as a "mandatory sinking fund payment," and any
payment in excess of such minimum amount provided for by the terms of the
Securities of any series is herein referred to as an "optional sinking fund
payment." The date on which a sinking fund payment is to be made is herein
referred to as the "sinking fund payment date."
In lieu of making all or any part of any mandatory sinking fund payment
with respect to any series of Securities in cash, the Issuer may at its option
(a) deliver to the Trustee Securities of such series theretofore purchased or
otherwise acquired (except upon redemption pursuant to the mandatory sinking
fund) by the Issuer or receive credit for Securities of such series (not
previously so credited) theretofore purchased or otherwise acquired (except as
aforesaid) by the Issuer and delivered to the Trustee for cancellation pursuant
to Section 2.10, (b) receive credit for optional sinking fund payments (not
previously so credited) made pursuant to this Section, or (c) receive credit for
Securities of such series (not previously so credited) redeemed by the Issuer
through any optional redemption provision contained in the terms of such series.
Securities so delivered or credited shall be received or credited by the Trustee
at the sinking fund redemption price specified in such Securities.
On or before the 60th day next preceding each sinking fund payment date
for any series, the Issuer will deliver to the Trustee an Officer's Certificate
(which need not contain the statements required by Section 10.5) (a) specifying
the portion of the mandatory sinking fund payment to be satisfied by payment of
cash and the portion to be satisfied by credit of Securities of such series and
the basis for such credit, (b) stating that none of the Securities of such
series has theretofore been so credited, (c) stating that no defaults in the
payment of interest or Events of Default with respect to such series have
occurred (which have not been waived or cured) and are continuing and (d)
stating whether or not the Issuer intends to exercise its right to make an
optional sinking fund payment with respect to such series and, if so, specifying
the amount of such optional sinking fund payment which the Issuer intends to pay
on or before the next succeeding sinking fund payment date. Any Securities of
such series to be credited and required to be delivered to the Trustee in order
for the Issuer to be entitled to credit therefor as aforesaid which have not
theretofore been delivered to the Trustee shall be delivered for cancellation
pursuant to Section 2.10 to the Trustee with such Officer's Certificate (or
reasonably promptly thereafter if acceptable to the Trustee). Such Officer's
Certificate shall be irrevocable and upon its receipt by the Trustee, the Issuer
shall become unconditionally obligated to make all the cash payments or payments
therein referred to, if any, on or before the next succeeding sinking fund
payment date. Failure of the Issuer, on or before any such 60th day, to deliver
such Officer's Certificate and Securities specified in this paragraph, if any,
shall not constitute a default but shall constitute, on and as of such date, the
irrevocable election of the Issuer (i) that the mandatory sinking fund payment
for such series due on the next succeeding sinking fund payment date shall be
paid entirely in cash without the option to deliver or credit Securities of such
series in respect thereof and (ii) that the Issuer will make no optional sinking
fund payment with respect to such series as provided in this Section.
55
If the sinking fund payment or payments (mandatory or optional or both)
to be made in cash on the next succeeding sinking fund payment date plus any
unused balance of any preceding sinking fund payments made in cash shall exceed
$50,000 or a lesser sum in Dollars if the Issuer shall so request with respect
to the Securities of any particular series, such cash shall be applied on the
next succeeding sinking fund payment date to the redemption of Securities of
such series at the sinking fund redemption price together with accrued interest
to the date fixed for redemption. If such amount shall be $50,000 or less and
the Issuer makes no such request then it shall be carried over until a sum in
excess of $50,000 is available. The Trustee shall select, in the manner provided
in Section 11.2, for redemption on such sinking fund payment date a sufficient
principal amount of Securities of such series to absorb said cash, as nearly as
may be, and shall (if requested in writing by the Issuer) inform the Issuer of
the serial numbers of the Securities of such series (or portions thereof) so
selected. Securities shall be excluded from eligibility for redemption under
this Section if they are identified by registration and certificate number in an
Officer's Certificate delivered to the Trustee at least 60 days prior to the
sinking fund payment date as being owned of record and beneficially by, and not
pledged or hypothecated by, either (a) the Issuer or (b) an entity specifically
identified in such Officer's Certificate as directly or indirectly controlling
or controlled by or under direct or indirect common control with the Issuer. The
Trustee, in the name and at the expense of the Issuer (or the Issuer, if it
shall so request the Trustee in writing) shall cause notice of redemption of the
Securities of such series to be given in substantially the manner provided in
Section 11.2 (and with the effect provided in Section 11.3) for the redemption
of Securities of such series in part at the option of the Issuer. The amount of
any sinking fund payments not so applied or allocated to the redemption of
Securities of such series shall be added to the next cash sinking fund payment
for such series and, together with such payment, shall be applied in accordance
with the provisions of this Section. Any and all sinking fund moneys held on the
stated maturity date of the Securities of any particular series (or earlier, if
such maturity is accelerated), which are not held for the payment or redemption
of particular Securities of such series shall be applied, together with other
moneys, if necessary, sufficient for the purpose, to the payment of the
principal of, and interest on, the Securities of such series at maturity.
On or before each sinking fund payment date, the Issuer shall pay to
the Trustee in cash or shall otherwise provide for the payment of all interest
accrued to the date fixed for redemption on Securities to be redeemed on the
next following sinking fund payment date.
The Trustee shall not redeem or cause to be redeemed any Securities of
a series with sinking fund moneys or give any notice of redemption of Securities
for such series by operation of the sinking fund during the continuance of a
default in payment of interest on such Securities or of any Event of Default
except that, where the giving of notice of redemption of any Securities shall
theretofore have been made, the Trustee shall redeem or cause to be redeemed
such Securities, provided that it shall have received from the Issuer a sum
sufficient for such redemption. Except as aforesaid, any moneys in the sinking
fund for such series at the time when any such default or Event of Default shall
occur, and any moneys thereafter paid into the sinking fund, shall, during the
continuance of such default or Event of Default be deemed to have been collected
under Article V and held for the payment of all such Securities. In case such
Event of Default shall have been waived as provided in Section 5.10 or the
default cured on or before the 60th day preceding the sinking fund payment date
in any year, such moneys shall thereafter be applied on the next succeeding
sinking fund payment date in accordance with this Section to the redemption of
such Securities.
56
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed and attested as of the date first written above.
EXELON CORPORATION
By:
--------------------------------
Name:
Title:
Attest:
By:
-------------------------
-----------------------------------
as Trustee
By:
--------------------------------
Name:
Title:
Attest:
By:
-------------------------
March 26, 2001
Exelon Corporation
10 South Dearborn Street
37th Floor
P. O. Box 805379
Chicago, Illinois 60680-5379
RE: Exelon Corporation -
Registration Statement on Form S-3
Ladies and Gentlemen:
We have acted as counsel to Exelon Corporation, a Pennsylvania
corporation (the "Company"), in connection with the preparation of the
Registration Statement on Form S-3 (the "Registration Statement") filed today
with the Securities and Exchange Commission in connection with the registration
under the Securities Act of 1933, as amended, of $1,500,000,000 principal amount
of debt securities of the Company (the "Debt Securities").
We are familiar with the proceedings taken and proposed to be
taken by the Company in connection with the proposed authorization, issuance and
sale of the Debt Securities. In this connection, we have examined and relied
upon such corporate records and other documents, instruments and certificates
and have made such other investigations as we have deemed appropriate as the
basis for the opinion set forth below. In our examination, we have assumed the
legal capacity of all natural persons, the genuineness of all signatures, the
authenticity of all documents submitted to us as originals, the conformity to
original documents of documents submitted to us as certified, conformed or
photostatic copies and the authenticity of such original documents.
The opinions expressed below are based on the assumption that
the Registration Statement will become effective.
Exelon Corporation
March 26, 2001
Page 2
Based upon the foregoing, we are of the opinion that the Debt
Securities to be sold by the Company have been duly authorized and, when issued,
delivered and paid for in accordance with the terms of the Underwriting
Agreement, the form of which is filed as Exhibit 1.1 to the Registration
Statement, will be legally issued, fully paid and non-assessable.
We hereby consent to the filing of this opinion as Exhibit 5.1
of the Registration Statement and to the reference to this firm under the
caption "Legal Matters" in the Prospectus forming a part thereof.
Very truly yours,
/s/ Ballard Spahr Andrews & Ingersoll, LLP
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in this Registration
Statement on Form S-3 of our report dated February 29, 2000, except for certain
information included in Notes 2 and 4, for which the dates are March 24, 2000
and March 16, 2000, respectively relating to the consolidated financial
statements and financial statement schedule, which appears in PECO Energy
Company's Annual Report on Form 10-K for the year ended December 31, 1999. We
also consent to the incorporation by reference of our report dated January 30,
2001, except for Note 21 PETT Refinancing for which the date is March 1, 2001,
relating to the consolidated financial statements of Exelon Corporation, which
appears in the Current Report on Form 8-K dated March 16, 2001. We also consent
to the references to us under the headings "Experts" in such Registration
Statement.
PricewaterhouseCoopers LLP
Chicago, Illinois
March 23, 2001
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this Registration Statement of our report dated January 31, 2000
(except with respect to Notes 1 and 3 as to which the date is May 12, 2000)
incorporated by reference in Unicom Corporation's Form 10-K for the year ended
December 31, 1999, and to our reports dated May 12, 2000 and August 11, 2000
incorporated by reference in Unicom Corporation's Form 10-Q for the quarters
ended March 31, 2000 and June 30, 2000, and to all references to our Firm
included in this Registration Statement.
Arthur Andersen LLP
Chicago, Illinois
March 23, 2000
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) X
BANK ONE, NATIONAL ASSOCIATION
(Exact name of trustee as specified in its charter)
A National Banking Association 36-0899825
(I.R.S. employer
identification number)
1 Bank One Plaza, Chicago, Illinois 60670-0126
(Address of principal executive offices) (Zip Code)
Bank One, National Association
1 Bank One Plaza, Suite IL1-0126
Chicago, Illinois 60670-0126
Attn: Steven M. Wagner, (312) 407-1819
(Name, address and telephone number of agent for service)
Exelon Corporation
(Exact name of obligor as specified in its charter)
Pennsylvania 23-2990190
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
10 South Dearborn Street
37th Floor
Post Office Box 805379
Chicago, Illinois 60680-5379
(Address of principal executive offices) (Zip Code)
Debt Securities
(Title of Indenture Securities)
1
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 Currency, Washington, D.C.;
Federal Deposit Insurance Corporation,
Washington, D.C.; The Board of Governors of
the Federal Reserve System, Washington D.C..
(b) Whether it is authorized to exercise
corporate trust powers.
The trustee is authorized to exercise corporate trust powers.
Item 2. Affiliations With the Obligor. If the obligor
is an affiliate of the trustee, describe each
such affiliation.
No such affiliation exists with the trustee.
Item 16. List of exhibits. List below all exhibits filed as a part
of this Statement of Eligibility.
1. A copy of the articles of association of the
trustee now in effect.*
2. A copy of the certificates of authority of the
trustee to commence business.*
3. A copy of the authorization of the trustee to
exercise corporate trust powers.*
4. A copy of the existing by-laws of the trustee.*
5. Not Applicable.
6. The consent of the trustee required by
Section 321(b) of the Act.
2
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.
8. Not Applicable.
9. Not Applicable.
Pursuant to the requirements of the Trust Indenture Act of 1939, as
amended, the trustee, Bank One, 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 Chicago and State of Illinois, on the 11th day of May,
2000.
Bank One, National Association,
Trustee
By /s/ Christopher C. Holly
Christopher C. Holly
Assistant Vice President
* Exhibits 1, 2, 3, and 4 are herein incorporated by reference to Exhibits
bearing identical numbers in Item 16 of the Form T-1 of Bank One, National
Association, filed as Exhibit 25 to the Registration Statement on Form S-3 of
Household Finance Corporation filed with the Securities and Exchange Commission
on March 24, 2000 (Registration No. 333-33240).
3
EXHIBIT 6
THE CONSENT OF THE TRUSTEE REQUIRED
BY SECTION 321(b) OF THE ACT
May 11, 2000
Securities and Exchange Commission
Washington, D.C. 20549
Gentlemen:
In connection with the qualification of an indenture between [company name] and
Bank One, National Association, as Trustee, the undersigned, in accordance with
Section 321(b) of the Trust Indenture Act of 1939, as amended, hereby consents
that the reports of examinations of the undersigned, made by Federal or State
authorities authorized to make such examinations, may be furnished by such
authorities to the Securities and Exchange Commission upon its request therefor.
Very truly yours,
Bank One, National Association
By: /s/ Christopher Holly
Christopher Holly
Assistant Vice President
4
EXHIBIT 7
Legal Title of Bank: Bank One, NA Call Date: 12/31/99 ST-BK: 17-1630 FFIEC 031
Address: 1 Bank One Plaza, Ste 0303 Page RC-1
City, State Zip: Chicago, IL 60670
FDIC Certificate No.: 0/3/6/1/8
---------
Consolidated Report of Condition for Insured Commercial
and State-Chartered Savings Banks for December 31, 1999
All schedules are to be reported in thousands of dollars. Unless otherwise
indicated, report the amount outstanding of the last business day of the
quarter.
Schedule RC--Balance Sheet
Dollar Amounts in thousands C400
ASSETS
1. Cash and balances due from depository institutions (from Schedule
RC-B): RCFD
a. Noninterest-bearing balances and currency and coin(1) ................ 0081 5,055,227 1.a
b. Interest-bearing balances(2) ......................................... 0071 6,267,008 1.b
2. Securities
a. Held-to-maturity securities(from Schedule RC-B, column A) ............ 1754 0 2.a
b. Available-for-sale securities (from Schedule RC-B, column D) ......... 1773 10,171,065 2.b
3. Federal funds sold and securities purchased under agreements to
resell .................................................................. 1350 9,133,306 3.
4. Loans and lease financing receivables:
a. Loans and leases, net of unearned income (from Schedule RCFD
RC-C) ................................................................... 2122 54,113,895 4.a
b. LESS: Allowance for loan and lease losses ............................ 3123 485,672 4.b
c. LESS: Allocated transfer risk reserve ................................ 3128 0 4.c
d. Loans and leases, net of unearned income, allowance, and RCFD
reserve (item 4.a minus 4.b and 4.c) ................................. 2125 53,628,223 4.d
5. Trading assets (from Schedule RD-D) ..................................... 3545 5,625,628 5.
6. Premises and fixed assets (including capitalized leases) ................ 2145 728,892 6.
7. Other real estate owned (from Schedule RC-M) ............................ 2150 2,661 7.
8. Investments in unconsolidated subsidiaries and associated
companies (from Schedule RC-M) .......................................... 2130 225,055 8.
9. Customers' liability to this bank on acceptances outstanding ............ 2155 318,645 9.
10. Intangible assets (from Schedule RC-M) .................................. 2143 222,903 10.
11. Other assets (from Schedule RC-F) ....................................... 2160 2,515,075 11.
12. Total assets (sum of items 1 through 11) ................................ 2170 93,893,688 12.
(1) Includes cash items in process of collection and unposted debits.
(2) Includes time certificates of deposit not held for trading.
Legal Title of Bank: Bank One, NA Call Date: 12/31/99 ST-BK: 17-1630 FFIEC 031
Address: 1 Bank One Plaza, Ste 0303 Page RC-2
City, State Zip: Chicago, IL 60670
FDIC Certificate No.: 0/3/6/1/8
---------
Schedule RC-Continued
Dollar Amounts in
Thousands
LIABILITIES
13. Deposits:
a. In domestic offices (sum of totals of columns A and C RCON
from Schedule RC-E, part 1) .......................................... 2200 26,310,375 13.a
(1) Noninterest-bearing(1) ........................................... 6631 11,553,564 13.a1
(2) Interest-bearing ................................................. 6636 14,756,811 13.a2
b. In foreign offices, Edge and Agreement subsidiaries, and RCFN
IBFs (from Schedule RC-E, part II) ................................... 2200 28,917,958 13.b
(1) Noninterest bearing .............................................. 6631 623,837 13.b1
(2) Interest-bearing ................................................. 6636 28,294,121 13.b2
14. Federal funds purchased and securities sold under agreements
to repurchase: .......................................................... RCFD 2800 9,453,894 14
15. a. Demand notes issued to the U.S. Treasury ............................. RCON 2840 1,263,434 15.a
b. Trading Liabilities(from Schedule RC-D) .............................. RCFD 3548 3,262,946 15.b
16. Other borrowed money: RCFD
a. With original maturity of one year or less ........................... 2332 12,462,976 16.a
b. With original maturity of more than one year ........................ A547 1,049,525 16.b
c. With original maturity of more than three years ...................... A548 477,923 16.c
17. Not applicable
18. Bank's liability on acceptance executed and outstanding ................. 2920 318,645 18.
19. Subordinated notes and debentures ....................................... 3200 3,250,000 19.
20. Other liabilities (from Schedule RC-G) .................................. 2930 1,377,838 20.
21. Total liabilities (sum of items 13 through 20) .......................... 2948 88,145,514 21.
22. Not applicable
EQUITY CAPITAL
23. Perpetual preferred stock and related surplus ........................... 3838 0 23.
24. Common stock ............................................................ 3230 200,858 24.
25. Surplus (exclude all surplus related to preferred stock) ................ 3839 3,660,673 25.
26. a. Undivided profits and capital reserves ............................... 3632 2,057,661 26.a
b. Net unrealized holding gains (losses) on available-for-sale
securities ........................................................... 8434 (170,996) 26.b
c. Accumulated net gains (losses) on cash flow hedges ................... 4336 0 26.c
27. Cumulative foreign currency translation adjustments ..................... 3284 ( 22) 27.
28. Total equity capital (sum of items 23 through 27) ....................... 3210 5,748,174 28.
29. Total liabilities, limited-life preferred stock, and equity
capital (sum of items 21, 22, and 28) ................................... 3300 93,893,688 29.
Memorandum
To be reported only with the March Report of
Condition.
1. Indicate in the box at the right the number of the statement below that
best describes the most comprehensive level of auditing work performed for
the bank by independent external auditors as of any date during 1996 . . .
. . . . . . . . . . . . . . . . .....RCFD 6724............. M.1.......Number
1 = Independent audit of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm which
submits a report on the bank
2 = Independent audit of the bank's parent holding company conducted in
accordance with generally accepted auditing standards by a certified public
accounting firm which submits a report on the consolidated holding company
(but not on the bank separately)
3 = Directors' examination of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm (may be
required by state chartering authority)
4. = Directors' examination of the bank performed by other external auditors
(may be required by state chartering authority)
5 = Review of the bank's financial statements by external auditors
6 = Compilation of the bank's financial statements by external auditors
7 = Other audit procedures (excluding tax preparation work)
8 = No external audit work
(1) Includes total demand deposits and noninterest-bearing time and savings
deposits.
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
FORM T-1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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) |__|
---------------------------
BNY MIDWEST TRUST COMPANY
(formerly known as CTC Illinois Trust Company)
(Exact name of trustee as specified in its charter)
Illinois 36-3800435
(State of incorporation (I.R.S. employer
if not a U.S. national bank) identification no.)
2 N. LaSalle Street
Suite 1020
Chicago, Illinois 60602
(Address of principal executive offices) (Zip code)
---------------------------
EXELON CORPORATION
(Exact name of obligor as specified in its charter)
Pennsylvania 23-2990190
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
10 South Dearborn Street
37th Floor
Post Office Box 805379
Chicago, Illinois 60680-5379
(Address of principal executive offices) (Zip code)
---------------------------
Debt Securities
(Title of the indenture securities)
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
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.
- --------------------------------------------------------------------------------
Name Address
- --------------------------------------------------------------------------------
Office of Banks & Trust Companies of 500 E. Monroe Street
the State of Illinois Springfield, Illinois 62701-1532
Federal Reserve Bank of Chicago 230 S. LaSalle Street
Chicago, Illinois 60603
(b) Whether it is authorized to exercise corporate trust powers.
Yes.
2. Affiliations with Obligor.
If the obligor is an affiliate of the trustee, describe each such
affiliation.
None.
16. List of Exhibits.
1. A copy of Articles of Incorporation of BNY Midwest Trust Company
(formerly CTC Illinois Trust Company, formerly Continental Trust
Company) as now in effect. (Exhibit 1 to Form T-1 filed with the
Registration Statement No. 333-47688.)
2,3. A copy of the Certificate of Authority of the Trustee as now in
effect, which contains the authority to commence business and a grant
of powers to exercise corporate trust powers. (Exhibit 2 to Form T-1
filed with the Registration Statement No. 333-47688.)
4. A copy of the existing By-laws of the Trustee. (Exhibit 4 to Form T-1
filed with the Registration Statement No. 333-47688.)
6. The consent of the Trustee required by Section 321(b) of the Act.
(Exhibit 6 to Form T-1 filed with the Registration Statement No.
333-47688.)
7. A copy of the latest report of condition of the Trustee published
pursuant to law or to the requirements of its supervising or examining
authority.
-2-
SIGNATURE
Pursuant to the requirements of the Act, the Trustee, BNY Midwest Trust
Company, a corporation organized and existing under the laws of the State of
Illinois, has duly caused this statement of eligibility to be signed on its
behalf by the undersigned, thereunto duly authorized, all in The City of
Chicago, and State of Illinois, on the 23rd day of March, 2001.
BNY Midwest Trust Company
By: /S/ MEGAN CARMODY
------------------------------------
Name: MEGAN CARMODY
Title: ASSISTANT VICE PRESIDENT
-3-
OFFICE OF BANKS AND REAL ESTATE
Bureau of Banks and Trust Companies
CONSOLIDATED REPORT OF CONDITION
OF
BNY Midwest Trust Company
208 West Jackson Boulevard
Suite 700
Chicago, Illinois 60606
Including the institution's domestic and foreign subsidiaries completed as of
the close of business on September 30, 2000, submitted in response to the call
of the Office of Banks and Real Estate of the State of Illinois.
ASSETS Thousands of Dollars
1 Cash and Due from Depository Institutions...................... 23,538
2 U.S. Treasury Securities....................................... - 0 -
3 Obligations of States and Political Subdivisions............... - 0 -
4 Other Bonds, Notes and Debentures.............................. - 0 -
5 Corporate Stock................................................ - 0 -
6 Trust Company Premises, Furniture, Fixtures and Other
Assets Representing Trust Company Premises.............. 234
7 Leases and Lease Financing Receivables.................. - 0 -
8 Accounts Receivable..................................... 3,706
9 Other Assets............................................
(Itemize amounts greater than 15% of Line 9)
Goodwill and Intangibles..................49,497
49,681
10 TOTAL ASSETS............................................ 77,159
Page 1
OFFICE OF BANKS AND REAL ESTATE
Bureau of Banks and Trust Companies
CONSOLIDATED REPORT OF CONDITION
OF
BNY Midwest Trust Company
208 West Jackson Boulevard
Suite 700
Chicago, Illinois 60606
LIABILITIES Thousands of Dollars
11 Accounts Payable............................................... - 0 -
12 Taxes Payable.................................................. - 0 -
13 Other Liabilities for Borrowed Money........................... 7,000
14 Other Liabilities..............................................
(Itemize amounts greater than 15% of Line 14)
Reserve for Taxes..........................2,853
3,289
15 TOTAL LIABILITIES 10,289
EQUITY CAPITAL
16 Preferred Stock................................................ - 0 -
17 Common Stock................................................... 2,000
18 Surplus........................................................ 62,130
19 Reserve for Operating Expenses................................. - 0 -
20 Retained Earnings (Loss)....................................... 2,740
21 TOTAL EQUITY CAPITAL........................................... 66,870
22 TOTAL LIABILITIES AND EQUITY CAPITAL........................... 77,159
Page 2
I, Robert L. De Paola, Vice President
- ----------------------------------------------------------------------------
(Name and Title of Officer Authorized to Sign Report)
of BNY Midwest Trust Company certify that the information contained in this
statement is accurate to the best of my knowledge and belief. I understand that
submission of false information with the intention to deceive the Commissioner
or his Administrative officers is a felony.
Robert L. DePaola
------------------------------------------------
(Signature of Officer Authorized to Sign Report)
Sworn to and subscribed before me is 26th day of October, 2000
---- -------------------
My Commission expires December 31, 2001.
-----------------
Carmelo C. Casella, Notary Public
------------------
(Notary Seal)
Person to whom Supervisory Staff should direct questions concerning this report.
Jennifer Barbieri (212) 437-5520
- --------------------------------------------------------------------------------
Name Telephone Number (Extension)
Page 3
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) X
LASALLE BANK NATIONAL ASSOCIATION
(Exact name of trustee as specified in its charter)
36-0884183
(I.R.S. Employer
Identification No.)
135 South LaSalle Street, Chicago, Illinois 60603
(Address of principal executive offices) (Zip Code)
-----------------------
Willie J. Miller, Jr.
Group Senior Vice President
Chief Legal Officer and Secretary
Telephone: (312) 904-2018
135 South LaSalle Street, Suite 925
Chicago, Illinois 60603
(Name, address and telephone number of agent for service)
-----------------------
ALLETE (legally incorporated as Minnesota Power, Inc.)
(Exact name of obligor as specified in its charter)
Minnesota 41-0418150
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
30 West Superior Street
Duluth, Minnesota 55802-2093
(Address of principal executive offices) (Zip Code)
-----------------------
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.
1. Comptroller of the Currency, Washington D.C.
2. Federal Deposit Insurance Corporation, Washington, D.C.
3. The Board of Governors of the Federal Reserve Systems,
Washington, D.C.
(b) Whether it is authorized to exercise corporate trust powers.
Yes.
ITEM 2. AFFILIATIONS WITH THE OBLIGOR.
If the obligor is an affiliate of the trustee, describe each such affiliation.
Not Applicable
*Pursuant to General Instruction B, the trustee has responded only to items 1, 2
and 16 of this form since to the best knowledge of the trustee the obligor is
not in default under any indenture under which the trustee is a trustee.
ITEM 16. LIST OF EXHIBITS.
List below all exhibits filed as part of this statement of eligibility and
qualification.
1. A copy of the Articles of Association of LaSalle Bank National
Association now in effect. (incorporated herein by reference to
Exhibit 1 filed with Form T-1 filed with the Current Report on Form
8-K, dated June 29, 2000, in File No. 333-61691).
2. A copy of the certificate of authority to commence business
(incorporated herein by reference to Exhibit 2 filed with Form T-1
filed with the Current Report on Form 8-K, dated June 29, 2000, in
File No. 333-61691).
3. A copy of the authorization to exercise corporate trust powers
(incorporated herein by reference to Exhibit 3 filed with Form T-1
filed with the Current Report on Form 8-K, dated June 29, 2000, in
File No. 333-61691).
4. A copy of the existing By-Laws of LaSalle Bank National Association
(incorporated herein by reference to Exhibit 4 filed with Form T-1
filed with the Current Report on Form 8-K, dated June 29, 2000, in
File No. 333-61691).
5. Not applicable.
6. The consent of the trustee required by Section 321(b) of the Trust
Indenture Act of 1939 (incorporated herein by reference to Exhibit 6
filed with Form T-1 filed with the Current Report on Form 8-K, dated
June 29, 2000, in File No. 333-61691).
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.
8. Not applicable.
9. Not applicable.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939, the trustee,
LaSalle Bank National Association, a corporation 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 Chicago, State of Illinois, on the 12th day of
March, 2001.
LASALLE BANK NATIONAL ASSOCIATION
By: /s/ John W. Porter
John W. Porter
Assistant Vice President
LaSalle Bank N.A. Call Date: 12/31/00 ST-BK: 17-1520 FFIEC 031
135 South LaSalle Street Page RC-1
Chicago, IL 60603 Vendor ID: D CERT: 15407 11
Transit Number: 71000505
Consolidated Report of Condition for Insured Commercial and
State-Chartered Savings Banks for December 31 , 2000
All schedules are to be reported in thousands of dollars. Unless otherwise
indicated, report the amount outstanding as of the last business day of the
quarter.
Schedule RC - Balance Sheet
Dollar Amounts in Thousands
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
1. Cash and balances due from depository institutions (from Schedule RC-A): RCFD
----
a. Noninterest-bearing balances and currency and coin (1) 0081 1,440,053 1.a
b. Interest-bearing balances (2) 0071 17,034 1.b
2. Securities:
a. Held-to-maturity securities (from Schedule RC-B, column A) 1754 694,913 2.a
b. Available-for-sale securities (from Schedule RC-B, column D) 1773 12,323,062 2.b
3. Federal funds sold and securities purchased under agreements to resell 1350 220,788 3.
4. Loans and lease financing receivables:
a. Loans and leases, net of unearned income RCFD
----
(from Schedule RC-C) 2122 31,691,102 4.a
b. LESS: Allowance for loan and lease losses 3123 443,137 4.b
c. LESS: Allocated transfer risk reserve 3128 0 4.c
d. Loans and leases, net of unearned income,
allowance, and reserve (item 4.a minus 4.b and 4.c) 2125 31,247,965 4.d
5. Trading assets (from Schedule RC-D) 3545 262,014 5.
6. Premises and fixed assets (including capitalized leases) 2145 279,087 6.
7. Other real estate owned (from Schedule RC-M) 2150 3,780 7.
8. Investments in unconsolidated subsidiaries and associated companies (from
Schedule RC-M) 2130 0 8.
9. Customers' liability to this bank on acceptances outstanding 2155 13,076 9.
10. Intangible assets (from Schedule RC-M) 2143 677,878 10.
11. Other assets (from Schedule RC-F) 2160 1,673,187 11.
12. Total assets (sum of items 1 through 11) 2170 48,852,837 12.
- ------------------
(1) Includes cash items in process of collection and unposted debits.
(2) Includes time certificates of deposit not held for trading.
LaSalle Bank N.A. Call Date: 12/31/00 ST-BK: 17-1520 FFIEC 031
135 South LaSalle Street Page RC- 2
Chicago, IL 60603 Vendor ID: D CERT: 15407 12
Transit Number: 71000505
Schedule RC - Continued
Dollar Amounts in Thousands
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
13. Deposits:
a. In domestic offices (sum of totals of RCON
----
columns A and C from Schedule RC-E, part I) 2200 27,740,880 13.a
RCON
(1) Noninterest-bearing (1) 6631 2,038,152 13.a.1
(2) Interest-bearing 6636 25,702,728 13.a.2
RCFN
b. In foreign offices, Edge and Agreement subsidiaries, and IBFs (from
Schedule RC-E, part II) 2200 4,404,467 13.b
RCFN
(1) Noninterest-bearing 6631 0 13.b.1
(2) Interest-bearing 6636 4,404,467 13.b.2
RCFD
14. Federal funds purchased and securities sold under agreements to repurchase 2800 3,943,015 14.
RCON
15. a. Demand notes issued to the U.S. Treasury 2840 473,742 15.a
RCFD
b. Trading liabilities (from Schedule RC-D) 3548 54,207 15.b
16. Other borrowed money (includes mortgage indebtedness and obligations under
capitalized leases):
a. With a remaining maturity of one year or less 2332 5,306,499 16.a
b. With a remaining maturity of more than one year through three years A547 19,396 16.b
c. With a remaining maturity of more than three years A548 1,972,209 16.c
17. Not applicable.
18. Bank's liability on acceptances executed and outstanding 2920 13,076 18.
19. Subordinated notes and debentures (2) 3200 831,000 19.
20. Other liabilities (from Schedule RC-G) 2930 760,921 20.
21. Total liabilities (sum of items 13 through 20) 2948 45,519,412 21.
22. Not applicable.
EQUITY CAPITAL
RCFD
23. Perpetual preferred stock and related surplus 3838 135,410 23.
24. Common stock 3230 41,234 24.
25. Surplus (exclude all surplus related to preferred stock) 3839 1,901,992 25.
26. a. Undivided profits and capital reserves 3632 1,349,110 26.a
b. Net unrealized holding gains (losses) on available-for-sale securities 8434 (94,321) 26.b
c. Accumulated net gains (losses) on cash flow hedges 4336 0 26.c
27. Cumulative foreign currency translation adjustments 3284 0 27.
28. Total equity capital (sum of items 23 through 27) 3210 3,333,425 28.
29. Total liabilities and equity capital (sum of items 21 and 28) 3300 48,852,837 29.
Memorandum
To be reported only with the March Report of Condition.
1. Indicate in the box at the right the number of the statement below that
best describes the most comprehensive level of auditing work performed for RCFD Number
the bank by independent external auditors as of any date during 1999 6724 N/A M.1
1 = Independent audit of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm which
submits a report on the bank
2 = Independent audit of the bank's parent holding company conducted in
accordance with generally accepted auditing standards by a certified public
accounting firm which submits a report on the consolidated holding company
(but not on the bank separately)
3 = Directors' examination of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm (may be
required by state charter- ing authority)
4 = Directors' examination of the bank performed by other external auditors
(may be required by state chartering authority)
5 = Review of the bank's financial statements by external auditors
6 = Compilation of the bank's financial statements by external auditors
7 = Other audit procedures (excluding tax preparation work)
8 = No external audit work
- ------------------
(1) Includes total demand deposits and noninterest-bearing time and savings
deposits.
(2) Includes limited-life preferred stock and related surplus.