Form Of Indenture For Jr. Subordinated Debentures

COX COMMUNICATIONS, INC., AS ISSUER


AND


THE BANK OF NEW YORK, AS TRUSTEE


INDENTURE


DATED AS OF , 1999


JUNIOR SUBORDINATED DEBENTURES


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ARTICLE 1


DEFINITIONS AND INCORPORATION BY REFERENCE


Section 1.01 Definitions.....................................................................................1 Section 1.02 Other Definitions...............................................................................6 Section 1.03 Incorporation by Reference of TIA...............................................................7 Section 1.04 Rules of Construction...........................................................................7 Section 1.05 Acts of Holders and Holders of Preferred Securities.............................................7


ARTICLE 2


THE DEBENTURES


Section 2.01 Amount Unlimited; Issuable in Series............................................................8 Section 2.02 Payment of Principal and Interest..............................................................11 Section 2.03 Execution, Authentication and Delivery.........................................................12 Section 2.04 Registrar and Paying and Conversion Agents.....................................................14 Section 2.05 Paying Agent to Hold Money in Trust............................................................15 Section 2.06 Debentureholder Lists..........................................................................16 Section 2.07 Transfer and Exchange..........................................................................16 Section 2.08 Replacement Debentures.........................................................................17 Section 2.09 Outstanding Debentures; Determinations of Holders' Action......................................17 Section 2.10 Temporary Debentures...........................................................................18 Section 2.11 Book-Entry System..............................................................................18 Section 2.12 Cancellation...................................................................................20 Section 2.13 CUSIP Numbers..................................................................................20


ARTICLE 3


REDEMPTION


Section 3.01 Redemption; Notice to Trustee..................................................................20 Section 3.02 Selection of Debentures to be Redeemed.........................................................20 Section 3.03 Notice of Redemption...........................................................................22 Section 3.04 Effect of Notice of Redemption.................................................................22 Section 3.05 Deposit of Redemption Price....................................................................22 Section 3.06 Debentures Redeemed in Part....................................................................22


ARTICLE 4


COVENANTS


Section 4.01 Payment of Principal, Premium and Interest.....................................................22 Section 4.02 Prohibition Against Dividends, etc.............................................................23 Section 4.03 SEC Reports....................................................................................24 Section 4.04 Compliance Certificates........................................................................24


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Section 4.05 Further Instruments and Acts...................................................................24 Section 4.06 Payment of Expenses of each Trust..............................................................25 Section 4.07 Ownership of Common Securities.................................................................25 Section 4.08 Statement by Officers as to Default............................................................25


ARTICLE 5


SUCCESSOR CORPORATION


Section 5.01 When the Company May Merge, Etc................................................................25


ARTICLE 6


DEFAULTS AND REMEDIES


Section 6.01 Events of Default..............................................................................26 Section 6.02 Acceleration...................................................................................28 Section 6.03 Other Remedies.................................................................................28 Section 6.04 Waiver of Past Defaults........................................................................29 Section 6.05 Control by Holders.............................................................................29 Section 6.06 Limitation on Suits............................................................................29 Section 6.07 Unconditional Right of Holders to Receive Principal, Premium and Interest......................30 Section 6.08 Direct Action Right of Holders of Trust Preferred Securities...................................30 Section 6.09 Collection Suits by the Trustee................................................................31 Section 6.10 Trustee May File Proofs of Claim...............................................................31 Section 6.11 Priorities.....................................................................................32 Section 6.12 Undertaking for Costs..........................................................................32


ARTICLE 7


THE TRUSTEE


Section 7.01 Duties and Responsibilities of the Trustee.....................................................33 Section 7.02 Rights of the Trustee..........................................................................34 Section 7.03 Not Responsible for Recitals or Issuances of Debentures........................................35 Section 7.04 May Hold Securities............................................................................35 Section 7.05 Notice of Defaults.............................................................................35 Section 7.06 Reports by Trustee to Holders..................................................................36 Section 7.07 Compensation and Indemnity.....................................................................36 Section 7.08 Eligibility; Disqualification..................................................................37 Section 7.09 Resignation and Removal; Appointment of Successor..............................................37 Section 7.10 Acceptance of Appointment by Successor.........................................................39 Section 7.11 Successor Trustee by Merger....................................................................40


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ARTICLE 8


SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS


Section 8.01 Satisfaction and Discharge of Indenture........................................................40 Section 8.02 Application by Trustee of Funds Deposited for Payment of Debentures............................41 Section 8.03 Repayment of Moneys Held by Paying Agent.......................................................41 Section 8.04 Return of Moneys Held by the Trustee and Paying Agent Unclaimed for Two Years..................41


ARTICLE 9


SUPPLEMENTAL INDENTURES


Section 9.01 Supplemental Indentures Without Consent of Holders.............................................42 Section 9.02 Supplemental Indentures With Consent of Holders................................................43 Section 9.03 Compliance with Trust Indenture Act............................................................44 Section 9.04 Revocation and Effect of Consents, Waivers and Actions.........................................44 Section 9.05 Notation on or Exchange of Debentures..........................................................45 Section 9.06 Execution of Supplemental Indentures...........................................................45 Section 9.07 Effect of Supplemental Indentures..............................................................45


ARTICLE 10


SUBORDINATION


Section 10.01 Debentures Subordinated to Senior Indebtedness.................................................45 Section 10.02 Priority and Payment of Proceeds in Certain Events:
Remedies Standstill............................................................................46 Section 10.03 Payments which May Be Made Prior to Notice.....................................................47 Section 10.04 Rights of Holders of Senior Indebtedness Not to Be Impaired....................................47 Section 10.05 Trustee May Take Action to Effectuate Subordination............................................47 Section 10.06 Subrogation....................................................................................48 Section 10.07 Obligations of Company Unconditional; Reinstatement............................................48 Section 10.08 Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice........................50 Section 10.09 Right of Trustee to Hold Senior Indebtedness...................................................50 Section 10.10 Notice to Trustee..............................................................................50 Section 10.11 Reliance on Judicial Order or Certificate of Liquidating Agent.................................50 Section 10.12 Trustee Not Fiduciary for Holders of Senior Indebtedness.......................................50


ARTICLE 11


SINKING FUNDS


Section 11.01 Applicability of Article.......................................................................51 Section 11.02 Satisfaction of Sinking Fund Payments with Debentures..........................................51 Section 11.03 Redemption of Debentures for Sinking Fund......................................................51


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ARTICLE 12


MEETINGS OF DEBENTUREHOLDERS


Section 12.01 Purposes for Which Meetings May Be Called......................................................52 Section 12.02 Call, Notice and Place of Meetings.............................................................52 Section 12.03 Persons Entitled to Vote at Meetings...........................................................54 Section 12.04 Quorum; Action.................................................................................54 Section 12.05 Determination of Voting Rights; Conduct and Adjournment
of Meetings....................................................................................55 Section 12.06 Counting Votes and Recording Action of Meetings................................................55


ARTICLE 13


MISCELLANEOUS


Section 13.01 Trust Indenture Act Controls...................................................................55 Section 13.02 Notices........................................................................................56 Section 13.03 Communication by Holders with Other Holders....................................................57 Section 13.04 Certificate and Opinion as to Conditions Precedent.............................................57 Section 13.05 Statements Required in Certificate or Opinion..................................................58 Section 13.06 Severability Clause............................................................................58 Section 13.07 Rules by Trustee, Paying Agent and Registrar...................................................58 Section 13.08 Legal Holidays.................................................................................58 Section 13.09 Governing Law..................................................................................58 Section 13.10 No Recourse Against Others.....................................................................58 Section 13.11 Successors and Assigns.........................................................................59 Section 13.12 Counterparts...................................................................................59 Section 13.13 No Adverse Interpretation of Other Agreements..................................................59 Section 13.14 Table of Contents, Headings, Etc...............................................................59 Section 13.15 Holders of Preferred Securities as Third Party Beneficiaries...................................59 Section 13.16 Benefits of the Indenture......................................................................59


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Cox Communications, Inc. Indenture
Certain Sections of this Indenture relating to
Sections 310 through 318 of the
Trust Indenture Act of 1939


Trust Indenture Indenture
Act Section Section
----------- -------


ss.3 10(a)(1) ..................................................... 2.03; 7.08
(a)(2) ..................................................... 2.03; 7.08
(a)(3) ..................................................... Not Applicable
(a)(4) ..................................................... Not Applicable
(a)(5) ..................................................... Not Applicable
(b) ..................................................... 7.08; 7.09
(c) ..................................................... Not Applicable ss.311(a) ..................................................... Not Applicable
(b) ..................................................... Not Applicable
(c) ..................................................... Not Applicable ss.312(a) ..................................................... 2.06
(b) ..................................................... 13.03
(c) ..................................................... 13.03 ss.313(a) ..................................................... 7.06
(b)(1) ..................................................... Not Applicable
(b)(2) ..................................................... Not Applicable
(c) ..................................................... 7.06
(d) ..................................................... 7.06 ss.314(a) ..................................................... 4.03; 4.04
(b) ..................................................... Not Applicable
(c)(1) ..................................................... 2.03; 13.04; 13.05
(c)(2) ..................................................... 2.03; 13.04; 13.05
(c)(3) ..................................................... Not Applicable
(d) ..................................................... Not Applicable
(e) ..................................................... 13.05
..................................................... Not Applicable ss.315(a) ..................................................... 7.01(b); 7.02
(b) ..................................................... 7.02; 7.04; 13.02
(c) ..................................................... 7.01(a); 7.02
(d) ..................................................... 7.01(c); 7.02
(e) ..................................................... 6.12 ss.316(a)(1)(A) ..................................................... 6.05
(a)(1)(B) ..................................................... 6.02; 6.04
(a)(2) ..................................................... Not Applicable
(a)(last
sentence) ..................................................... 2.09
(b) ..................................................... 6.07
(c) ..................................................... 1.05 ss.317(a)(1) ..................................................... 6.09
(a)(2) ..................................................... 6.10
(b) ..................................................... 2.05 ss.318(a) ..................................................... 13.01
(b) ..................................................... Not Applicable
(c) ..................................................... 13.01


-------------------- Note: This reconciliation and tie sheet shall not, for any purpose, be deemed to be a part of the Indenture.


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INDENTURE, dated as of , 1999, by and between Cox Communications, Inc., a corporation duly organized and existing under the laws of the State of Delaware, or any successor thereto (the "Company"), and The Bank of New York, a New York banking corporation, as trustee (the "Trustee").


WHEREAS, the Company may from time to time create or establish one or more statutory business trusts for the purpose of issuing undivided beneficial interests in the assets thereof (the "Trust Securities") and using the proceeds thereof to acquire the Company's Debentures (as hereinafter defined).


WHEREAS, all things necessary to make the Debentures, when duly issued and executed by the Company and authenticated and delivered hereunder, the valid obligations of the Company, and to make this Indenture a valid and binding agreement of the Company, enforceable in accordance with its terms, have been done.


NOW THEREFORE:


Each of the Company and the Trustee, intending to be legally bound hereby, agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders (as hereinafter defined) of the securities issued hereunder:


ARTICLE 1
DEFINITIONS AND INCORPORATION BY REFERENCE


SECTION 1.01 DEFINITIONS.


"Affiliate" of any specified Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. When used with respect to any Person, "control" means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing.


"Board of Directors" means either the Board of Directors of the Company or the Executive Committee of such Board or any other committee of such Board duly authorized to act generally or in any particular respect for the Company hereunder.


"Board Resolution" means (i) a copy of a resolution certified by the Secretary or the Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification and delivered to the Trustee, (ii) a copy of a unanimous written consent of the Board of Directors or (iii) a certificate signed by the authorized officer or officers to whom the Board of Directors has delegated its authority, and in each case, delivered to the Trustee.


"Business Day" means any day that is not a Saturday, a Sunday or a day on which banking institutions and trust companies in The City of New York are authorized or required by law, regulation or executive order to close. 8


"Capital Lease Obligations" of a Person means any obligation which is required to be classified and accounted for as a capital lease on the face of a balance sheet of such Person prepared in accordance with GAAP.


"Capital Stock" means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) corporate stock or similar interests in other types of entities.


"Common Stock" means the Class A common stock, par value $1.00 per share, of the Company and the Class C common stock, par value $1.00 per share, of the Company collectively, unless the context otherwise requires.


"Company Order" means a written request or order signed in the name of the Company by an Officer of the Company and delivered to the Trustee.


"Debentureholder" or "Holder" means a Person in whose name a Debenture is registered on the Registrar's books.


"Debentures" shall mean any of the junior subordinated debentures of any series issued, authenticated and delivered under this Indenture.


"Default" means any event which is, or after notice or passage of time, or both, would be, an Event of Default pursuant to Section 6.01.


"Exchange Act" means the Securities Exchange Act of 1934, as amended.


"Extension Period," with respect to any series of Debentures, means any period during which the Company elects to extend the interest payment period on such series of Debentures pursuant to Section 4.01(b); provided that an Extension Period (or any extension thereof) must end on an Interest Payment Date for such Debentures and may not extend beyond the Stated Maturity Date or the Redemption Date of any Debenture of such series.


"GAAP" means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board.


"Guarantee" means each guarantee agreement executed by the Company with respect to the Preferred Securities issued by any Trust pursuant to which the Company irrevocably and unconditionally agrees to pay the guarantee payments under any such guarantee agreement to the holders of such Preferred Securities.


"Indebtedness" means, without duplication, (i) every obligation of the Company for money borrowed; (ii) every obligation of the Company evidenced by bonds, debentures, notes or other similar instruments, including obligations incurred in connection with the acquisition of property, assets or businesses; (iii) every reimbursement obligation of the Company with respect to letters of credit, banker's acceptances or similar facilities issued for the account of the Company; (iv) every obligation of the Company issued or assumed as the deferred purchase price of property or services (but excluding trade accounts payable or accrued liabilities arising


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in the ordinary course of business); (v) every Capital Lease Obligation of the Company; (vi) all indebtedness of the Company, whether incurred on or prior to the date of this Indenture or thereafter incurred, for claims in respect of derivative products, including interest rate, foreign exchange rate and commodity forward contracts, options and swaps and similar arrangements; (vii) letters of credit, performance bonds and similar obligations issued in favor of governmental or franchising authorities as a term of a cable television franchise or other governmental franchise, license, permit or authorization held by the Company or any of its affiliates; (viii) every obligation of the type referred to in clauses (i) through (vii) of another Person and all dividends of another Person the payment of which, in either case, the Company has guaranteed or is responsible or liable for, directly or indirectly, as obligor or otherwise; and (ix) obligations of the type referred to in clauses (i) through (viii) of another Person secured by any lien on any property or asset of the Company (whether or not such obligation is assumed by the Company); and all deferrals, renewals, extensions and refundings of, and amendments, modifications and supplements to, any of the foregoing obligations.


"Indebtedness Ranking on a Parity with the Debentures" means (i) Indebtedness, whether outstanding on the date of execution of this Indenture or thereafter created, assumed or incurred, to the extent such Indebtedness specifically by its terms ranks pari passu with and not prior to the Debentures in the right of payment upon the happening of the dissolution, winding-up, liquidation or reorganization of the Company and (ii) all other debt securities, and guarantees in respect of those debt securities, issued to any other trust, or a trustee of such trust, partnership or other entity affiliated with the Company that is a financing vehicle of the Company (a "financing entity") in connection with the issuance by such financing entity of equity securities or other securities guaranteed by the Company pursuant to an instrument that ranks pari passu with or junior in right of payment to the Guarantees. The securing of any Indebtedness otherwise constituting Indebtedness Ranking on a Parity with the Debentures sha ...