EX-4.3



 





EXHIBIT 4.3



 


INDENTURE




Dated as of                     , 20                    




Between




NASTECH PHARMACEUTICAL COMPANY INC.,

as Issuer




And




[                                        ],

as Trustee




 






Debt Securities




 





 

 









 





TABLE OF CONTENTS




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	ARTICLE I	 	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 	 	 	 	SECTION 1.01. Definitions
	 	 	1	 
	 	 	 	 	SECTION 1.02. Other Definitions
	 	 	4	 
	 	 	 	 	SECTION 1.03 Incorporation by Reference of Trust Indenture Act
	 	 	4	 
	 	 	 	 	SECTION 1.04 Rules of Construction
	 	 	5	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE II	 	THE SECURITIES
	 	 	5	 
	 	 	 	 	SECTION 2.01 Unlimited in Amount, Issuable in Series, Form and Dating
	 	 	5	 
	 	 	 	 	SECTION 2.02 Execution and Authentication
	 	 	8	 
	 	 	 	 	SECTION 2.03 Registrar and Paying Agent
	 	 	9	 
	 	 	 	 	SECTION 2.04 Paying Agent to Hold Assets in Trust
	 	 	10	 
	 	 	 	 	SECTION 2.05 Holder Lists
	 	 	10	 
	 	 	 	 	SECTION 2.06 Registration of Transfer and Exchange
	 	 	10	 
	 	 	 	 	SECTION 2.07 Replacement Securities
	 	 	11	 
	 	 	 	 	SECTION 2.08 Outstanding Securities
	 	 	11	 
	 	 	 	 	SECTION 2.09 Treasury Securities
	 	 	12	 
	 	 	 	 	SECTION 2.10 Temporary Securities
	 	 	12	 
	 	 	 	 	SECTION 2.11 Cancellation
	 	 	12	 
	 	 	 	 	SECTION 2.12 CUSIP Numbers
	 	 	12	 
	 	 	 	 	SECTION 2.13 Defaulted Interest
	 	 	12	 
	 	 	 	 	SECTION 2.14 Special Record Dates
	 	 	13	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE III	 	REDEMPTION
	 	 	13	 
	 	 	 	 	SECTION 3.01 Notices to Trustee
	 	 	13	 
	 	 	 	 	SECTION 3.02 Selection of Securities to Be Redeemed
	 	 	13	 
	 	 	 	 	SECTION 3.03 Notice of Redemption
	 	 	13	 
	 	 	 	 	SECTION 3.04 Effect of Notice of Redemption
	 	 	14	 
	 	 	 	 	SECTION 3.05 Deposit of Redemption Price
	 	 	14	 
	 	 	 	 	SECTION 3.06 Securities Redeemed in Part
	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IV	 	COVENANTS
	 	 	15	 
	 	 	 	 	SECTION 4.01 Payment of Securities
	 	 	15	 
	 	 	 	 	SECTION 4.02 Maintenance of Office or Agency
	 	 	15	 
	 	 	 	 	SECTION 4.03 SEC Reports
	 	 	15	 
	 	 	 	 	SECTION 4.04 Compliance Certificate
	 	 	16	 
	 	 	 	 	SECTION 4.05 Taxes
	 	 	16	 
	 	 	 	 	SECTION 4.06 Corporate Existence
	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE V	 	MERGER, ETC.
	 	 	16	 
	 	 	 	 	SECTION 5.01 When Company May Merge, etc.
	 	 	16	 
	 	 	 	 	SECTION 5.02 Successor Corporation Substituted
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VI	 	DEFAULTS AND REMEDIES
	 	 	17	 






 









 






	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	 	 	 	 	SECTION 6.01 Events of Default
	 	 	17	 
	 	 	 	 	SECTION 6.02 Acceleration
	 	 	18	 
	 	 	 	 	SECTION 6.03 Other Remedies
	 	 	18	 
	 	 	 	 	SECTION 6.04 Wavier of Past Defaults
	 	 	19	 
	 	 	 	 	SECTION 6.05 Control by Majority
	 	 	19	 
	 	 	 	 	SECTION 6.06 Limitation on Suits
	 	 	19	 
	 	 	 	 	SECTION 6.07 Rights of Holders to Receive Payment
	 	 	19	 
	 	 	 	 	SECTION 6.08 Collection Suit by Trustee
	 	 	20	 
	 	 	 	 	SECTION 6.09 Trustee May File Proofs of Claim
	 	 	20	 
	 	 	 	 	SECTION 6.10 Priorities
	 	 	20	 
	 	 	 	 	SECTION 6.11. Undertaking for Costs
	 	 	21	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VII	 	TRUSTEE
	 	 	21	 
	 	 	 	 	SECTION 7.01. Duties of Trustee
	 	 	21	 
	 	 	 	 	SECTION 7.03. Individual Rights of Trustee
	 	 	23	 
	 	 	 	 	SECTION 7.04. Trustee’s Disclaimer
	 	 	23	 
	 	 	 	 	SECTION 7.05. Notice of Defaults
	 	 	23	 
	 	 	 	 	SECTION 7.06. Reports by Trustee to Holders
	 	 	23	 
	 	 	 	 	SECTION 7.07. Compensation and Indemnity
	 	 	24	 
	 	 	 	 	SECTION 7.08. Replacement of Trustee
	 	 	24	 
	 	 	 	 	SECTION 7.09. Successor Trustee by Merger, Etc.
	 	 	26	 
	 	 	 	 	SECTION 7.10. Eligibility; Disqualification
	 	 	26	 
	 	 	 	 	SECTION 7.11. Preferential Collection of Claims Against the Company
	 	 	26	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VIII	 	DISCHARGE OF INDENTURE
	 	 	26	 
	 	 	 	 	SECTION 8.01. Satisfaction and Discharge of Indenture
	 	 	26	 
	 	 	 	 	SECTION 8.02. Application of Trust Funds; Indemnification
	 	 	27	 
	 	 	 	 	SECTION 8.03. Legal Defeasance of Securities of any Series
	 	 	28	 
	 	 	 	 	SECTION 8.04. Covenant Defeasance
	 	 	29	 
	 	 	 	 	SECTION 8.05. Repayment to Company
	 	 	30	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IX	 	AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	31	 
	 	 	 	 	SECTION 9.01. Without Consent of Holders
	 	 	31	 
	 	 	 	 	SECTION 9.02. With Consent of Holders
	 	 	31	 
	 	 	 	 	SECTION 9.03. Compliance with Trust Indenture Act
	 	 	32	 
	 	 	 	 	SECTION 9.04. Revocation and Effect of Consents
	 	 	32	 
	 	 	 	 	SECTION 9.05. Notation on or Exchange of Securities
	 	 	32	 
	 	 	 	 	SECTION 9.06. Trustee to Sign Amendment, etc.
	 	 	32	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE X	 	MISCELLANEOUS
	 	 	32	 
	 	 	 	 	SECTION 10.01. Trust Indenture Act Controls
	 	 	32	 
	 	 	 	 	SECTION 10.02. Notices
	 	 	33	 
	 	 	 	 	SECTION 10.03. Communication by Holders with Other Holders
	 	 	34	 
	 	 	 	 	SECTION 10.04. Certificate and Opinion as to Conditions Precedent
	 	 	34	 
	 	 	 	 	SECTION 10.05. Statements Required in Certificate or Opinion
	 	 	34	 
	 	 	 	 	SECTION 10.06. Rules by Trustee and Agents
	 	 	34	 
	 	 	 	 	SECTION 10.07. Legal Holidays
	 	 	34	 






ii




 









 





	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	 	 	 	 	SECTION 10.08. Duplicate Originals
	 	 	34	 
	 	 	 	 	SECTION 10.09. Governing Law
	 	 	34	 
	 	 	 	 	SECTION 10.10. No Adverse Interpretation of Other Agreements
	 	 	35	 
	 	 	 	 	SECTION 10.11. Successors
	 	 	35	 
	 	 	 	 	SECTION 10.12. Severability
	 	 	35	 
	 	 	 	 	SECTION 10.13. Counterpart Originals
	 	 	35	 






iii




 









 





CROSS-REFERENCE TABLE




	 	 	 	 	 	 	 
	 	 	 	 	 	Indenture	 
	TIA Section	 	 	 	 	Section	 
	Section 310
	 	(a)(1)	 	 	7.10	 
	 
	 	(a)(2)	 	 	7.10	 
	 
	 	(a)(3)	 	 	N.A.	 
	 
	 	(a)(4)	 	 	N.A.	 
	 
	 	(a)(5)	 	 	7.10	 
	 
	 	(b)	 	 	7.08; 7.10	 
	 
	 	(c)	 	 	N.A.	 
	Section 311
	 	(a)	 	 	7.11	 
	 
	 	(b)	 	 	7.11	 
	 
	 	(c)	 	 	N.A.	 
	Section 312
	 	(a)	 	 	2.05	 
	 
	 	(b)(1)	 	 	N.A.	 
	 
	 	(b)(2)	 	 	7.06	 
	 
	 	(c)	 	 	7.06; 12.02	 
	 
	 	(d)	 	 	7.06	 
	Section 314
	 	(a)(1), (2), (3)	 	 	4.03	 
	 
	 	(a)(4)	 	 	4.04	 
	 
	 	(b)	 	 	N.A.	 
	 
	 	(c)(1)	 	 	10.04	 
	 
	 	(c)(2)	 	 	10.04	 
	 
	 	(c)(3)	 	 	N.A.	 
	 
	 	(d)	 	 	N.A.	 
	 
	 	(e)	 	 	10.05	 
	 
	 	(f)	 	 	N.A.	 
	Section 315
	 	(a)	 	 	7.01(b)	
	 
	 	(b)	 	 	7.05; 10.02	 
	 
	 	(c)	 	 	7.01(a)	
	 
	 	(d)	 	 	7.01(c)	
	 
	 	(e)	 	 	6.11	 
	Section 316
	 	(a)(last sentence)	 	 	2.09	 
	 
	 	(a)(1)(A)	 	 	6.05	 
	 
	 	(a)(1)(B)	 	 	6.04	 
	 
	 	(a)(2)	 	 	N.A.	 
	 
	 	(b)	 	 	6.07	 
	 
	 	(c)	 	 	9.04	 
	Section 317
	 	(a)(1)	 	 	6.08	 
	 
	 	(a)(2)	 	 	6.09	 
	 
	 	(b)	 	 	2.04	 
	Section 318
	 	(a)	 	 	10.01	 






iv




 









 





N.A. means Not Applicable



NOTE: This Cross-Reference Table shall not, for any purpose, be deemed to be a part of the
indenture.





v











 





     INDENTURE dated as of                     , 20                    , between NASTECH PHARMACEUTICAL COMPANY INC., a
Delaware corporation (the “Company”), as issuer, and [                    ], a [                    ]
banking corporation, as Trustee (the “Trustee”).



     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its debentures, notes or other evidences of indebtedness to be
issued in one or more series (the “Securities”), as herein provided, up to such principal
amount as may from time to time be authorized in or pursuant to one or more resolutions of the
Board of Directors or by supplemental indenture.



     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of each series of the Securities:



ARTICLE I




DEFINITIONS AND INCORPORATION BY REFERENCE




          SECTION 1.01. Definitions.




          “Affiliate” means, when used with reference to the Company or another person, any
person directly or indirectly controlling, controlled by, or under direct or indirect common
control with, the Company or such other person, as the case may be. For the purposes of this
definition, “control” when used with respect to any specified person means the power to direct or
cause the direction of management or 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 of the foregoing.




          “Agent” means any registrar, Paying Agent, authenticating agent or co-registrar.




          “Board of Directors” means, with respect to any person, the Board of Directors of a
person or any duly authorized committee of such Board of Directors.




          “Board Resolution” means, with respect to any person, a copy of a resolution
certified by the secretary or an assistant secretary of such person to have been duly adopted by
the Board of Directors of such person or any duly authorized committee thereof and to be in full
force and effect on the date of such certification, and delivered to the Trustee.




          “Business Day” means a day that is not a Legal Holiday as defined in Section
10.07.




          “Company” means the party named as such in this Indenture, or any other obligor under
this Indenture, until a successor replaces it pursuant to this Indenture and thereafter means the
successor.




 









 








          “Consolidated” or “consolidated” means, when used with reference to any
amount, such amount determined on a consolidated basis in accordance with GAAP, after the
elimination of intercompany items.




          “Consolidated Assets” means, at a particular date, all amounts which would be included
under total assets on a consolidated balance sheet of the Company and its Subsidiaries as at such
date, determined in accordance with GAAP.




          “Corporate Trust Office” means the office of the Trustee at which at any particular
time its corporate services business shall be principally administered, which office at the date of
execution of this Indenture is located at [___].




          “Default” means any event which is, or after notice or lapse of time or both would be,
an Event of Default.




          “Event of Default” has the meaning provided in Section 6.01.




          “Exchange Act” means the Securities Exchange Act of 1934, as amended any successor
Statute.




          “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 or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, which are applicable from time to time.




          “Global Security” means a Security issued to evidence all or a part of any series of
Securities that is executed by the Company and authenticated and delivered by the Trustee to a
depositary or pursuant to such depositary’s instructions, all in accordance with this Indenture and
pursuant to Section 2.01, which shall be registered as to principal and interest in the
name of such depositary or its nominee.




          “Holder” means the person in whose name a Security is registered on the registrar’s
books.




          “Indebtedness” of a Person means all obligations which would be treated as liabilities
upon a balance sheet of such Person prepared on a consolidated basis in accordance with GAAP.




          “Indenture” means this Indenture, as amended, supplemented or modified from time to
time, and shall include the terms of a particular series of Securities established as contemplated
by Section 2.01.




          “Lien” means any lien, security interest, charge or encumbrance of any kind.




2









 








          “Obligations” means all obligations for principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under the documentation
governing any Indebtedness.




          “Officer” of any person means the Chairman of the Board, the Chief Executive Officer,
the President, any Vice President, the Treasurer, the Secretary or the Controller of such person.




          “Officers’ Certificate” means a certificate signed by two Officers or by an Officer
and an Assistant Treasurer, Assistant Secretary or Assistant Controller of any person.




          “Opinion of Counsel” means a written opinion from legal counsel who is reasonably
acceptable to the Trustee. The counsel may be an employee of or counsel to the Company.




          “Original Issue Discount Security” means any Security which provides that an amount
less than its principal amount is due and payable upon acceleration after an Event of Default.




          “Person” or “person” means any individual, corporation, partnership, joint
venture, trust, association, limited liability company, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.




          “Redemption Date” means, with respect to any Security to be redeemed, the date fixed
for such redemption pursuant to this Indenture.




          “Redemption Price” has the meaning provided in Section 3.03.




          “SEC” means the Securities and Exchange Commission and any government agency
succeeding to its functions.




          “Securities” means the means the securities authenticated and delivered under this
Indenture.




          “Securities Act” means the Securities Act of 1933, as amended.




          “Series” means a series of Securities established pursuant to this Indenture.




          “Subsidiary” of any Person means (i) a corporation a majority of whose capital stock
with voting power, under ordinary circumstances, to elect directors is at the time, directly or
indirectly, owned by such Person or by such Person and a subsidiary or subsidiaries of such Person
or by a subsidiary or subsidiaries of such Person or (ii) any other Person (other than a
corporation) in which such Person or such Person and a subsidiary or subsidiaries of such Person or
a subsidiary or subsidiaries of such Persons, at the time, directly or indirectly, own at least a
majority voting interest under ordinary circumstances.




3









 








          “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Section 77aaa-77bbbb), as in
effect on the date of this Indenture; provided, however, that in the event the TIA
is amended after such date, “TIA” means, to the extent required by such amendment, the
Trust Indenture Act of 1939, as so amended.




          “Trustee” means the party named as such above until a successor becomes such pursuant
to this Indenture and thereafter means or includes each party who is then a trustee hereunder, and
if at any time there is more than one such party, “Trustee” as used with respect to the
Securities of any series means the Trustee with respect to Securities of that series. If Trustees
with respect to different series of Securities are Trustees under this Indenture, nothing herein
shall constitute the Trustees co-Trustees of the same trust, and each Trustee shall be the Trustee
of a trust separate and apart from any trust administered by any other Trustee with respect to a
different series of Securities.




          “Trust Officer” means any officer in the corporate trust department of the Trustee or
any other officer of the Trustee assigned by the Trustee to administer this Indenture.




          “U.S. Government Obligations” means (i) direct obligations of the United States of
America for the payment of which the full faith and credit of the United States of America is
pledged or (ii) obligations of a person controlled or supervised by and acting as an agency or
instrumentality of the United States of America, the payment of which is unconditionally guaranteed
as a full faith and credit obligation by the United States of America and which in either case, are
non-callable at the option of the issuer thereof.




          SECTION 1.02. Other Definitions.




	 	 	 	 	 
	 	 	Defined in
	Term
	 	Section
	“Bankruptcy Law”
	 	 	6.01	 
	“Custodian”
	 	 	6.01	 
	“Legal Holiday”
	 	 	10.07	 
	“Paying Agent”
	 	 	2.03	 
	“Registrar”
	 	 	2.03	 






          SECTION 1.03. Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made
a part of this Indenture.




          The following TIA terms used in this Indenture have the following meanings:




          “indenture Securities” means the Securities;



          “indenture Security holder” means a Holder;




4









 










          “indenture to be qualified” means this Indenture;




          “indenture Trustee” or “institutional Trustee” means the Trustee; and




          “obligor” on the Securities means the Company and any other obligor on the indenture
Securities.



All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to
another statute or defined by SEC rule have the meanings assigned to them by such definitions.




          SECTION 1.04. Rules of Construction. Unless the context otherwise requires: (i) a
term has the meaning assigned to it; (ii) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP; (iii) “or” is not exclusive; (iv) words in the singular
include the plural, and in the plural include the singular; (v) provisions apply to successive
events and transactions; and (vi) statements relating to the payment of principal and interest
shall include the payment, premium (if any) and interest.




ARTICLE II




THE SECURITIES




          SECTION 2.01. Unlimited in Amount, Issuable in Series, Form and Dating.




          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 pursuant to a Board Resolution or an Officers’ Certificate pursuant to authority
granted under a Board Resolution or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series:




          (a) The title, ranking and authorized denominations of such Securities;




          (b) The aggregate principal amount of such Securities and any limit on such aggregate
principal amount;




          (c) The price (expressed as a percentage of the principal amount thereof) at which such
Securities will be issued and, if other than the principal amount thereof, the portion of the
principal amount thereof payable upon declaration of acceleration of the maturity thereof;




          (d) The date or dates, or the method for determining such date or dates, on which the
principal of such Securities will be payable;




          (e) The rate or rates (which may be fixed or variable), or the method by which such rate or
rates shall be determined, at which such Securities will bear interest, if any;




5









 








          (f) The date or dates, or the method for determining such date or dates, from which any such
interest will accrue, the dates on which any such interest will be payable, the record dates for
such interest payment dates, or the method by which such dates shall be determined, the persons to
whom such interest shall be payable, and the basis upon which interest shall be calculated if other
than that of a 360-day year of twelve 30-day months;




          (g) The place or places where the principal of and interest, if any, on such Securities will
be payable, where such Securities may be surrendered for registration of transfer or exchange and
where notices or demands to or upon the Company in respect of such Securities and this Indenture
may be served;




          (h) The period or periods, if any, within which, the price or prices at which and the other
terms and conditions upon which such Securities may, pursuant to any optional or mandatory
redemption provisions, be redeemed, as a whole or in part, at the option of the Company;




          (i) The obligation, if any, of the Company to redeem, repay or purchase such Securities
pursuant to any sinking fund or analogous provision or at the option of a holder thereof, and the
period or periods within which, the price or prices at which and the other terms and conditions
upon which such Securities will be redeemed, repaid or purchased, as a whole or in part, pursuant
to such obligation;




          (j) If other than U.S. dollars, the currency or currencies in which such Securities are
denominated and payable, which may be a foreign currency or units of two or more foreign currencies
or a composite currency or currencies, and the terms and conditions relating thereto;




          (k) Whether the amount of payments of principal of (and premium, if any) or interest, if any,
on such Securities may be determined with reference to an index, formula or other method (which
index, formula or method may, but need not be, based on the yield on or trading price of other
Securities, including United States Treasury Securities, or on a currency, currencies, currency
unit or units, or composite currency or currencies) and the manner in which such amounts shall be
determined;




          (l) Whether the principal of or interest on the Securities of the series is to be payable, at
the election of the Company or a holder thereof, in a currency or currencies, currency unit or
units or composite currency or currencies other than that in which such Securities are denominated
or stated to be payable, the period or periods within which, and the terms and conditions upon
which, such election may be made, and the time and manner of, and identity of the exchange rate
agent with responsibility for, determining the exchange rate between the
currency or currencies, currency unit or units or composite currency or currencies in which
such Securities are denominated or stated to be payable and the currency or currencies, currency
unit or units or composite currency or currencies in which such Securities are to be so payable;




6









 








          (m) Provisions, if any, granting special rights to the holders of Securities of the series
upon the occurrence of such events as may be specified;




          (n) Any deletions from, modifications of or additions to the Events of Default or covenants of
the Company with respect to Securities of the series, whether or not such Events of Default or
covenants are consistent with the Events of Default or covenants described herein;




          (o) Whether and under what circumstances the Company will pay any additional amounts on such
Securities in respect of any tax, assessment or governmental charge and, if so, whether the Company
will have the option to redeem such Securities in lieu of making such payment;




          (p) Whether Securities of the series are to be issuable as registered Securities, bearer
Securities (with or without coupons) or both, any restrictions applicable to the offer, sale or
delivery of bearer Securities and the terms upon which bearer Securities of the series may be
exchanged for registered Securities of the series and vice versa (if permitted by applicable laws
and regulations), whether any Securities of the series are to be issuable initially in temporary
global form and whether any Securities of the series are to be issuable in permanent global form
with or without coupons and, if so, whether beneficial owners of interests in any such permanent
Global Security may exchange such interests for Securities of such series and of like tenor or any
authorized form and denomination and the circumstances under which any such exchanges may occur, if
other than in the manner provided in this Indenture, and, if registered Securities of the series
are to be issuable as a Global Security, the identity of the depositary for such series;




          (q) The date as of which any bearer Securities of the series and any temporary Global Security
representing outstanding Securities of the series shall be dated if other than the date of original
issuance of the first Security of the series to be issued;




          (r) The person to whom any interest on any registered Security of the series shall be payable,
if other than the person in whose name that Security (or one or more predecessor Securities) is
registered at the close of business on the regular record date for such interest, the manner in
which, or the person to whom, any interest on any bearer Security of the series shall be payable,
if otherwise than upon presentation and surrender of the coupons appertaining thereto as they
severally mature, and the extent to which, or the manner in which, any interest payable on a
temporary Global Security on an interest payment date will be paid if other than in the manner
provided in this Indenture;




          (s) Whether such Securities will be issued in certificated or book entry form;




          (t) The applicability, if any, of the legal defeasance and covenant defeasance provisions of
this Indenture to the Securities of the series;




          (u) If the Securities of such 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, then the form and/or
terms of such certificates, documents or conditions;




7









 








          (v) Whether the Securities will be listed for trading on an exchange and the identity of such
exchange;




          (w) Whether any underwriters will act as market makers for the Securities;




          (x) Any guarantees of such Securities by the Company’s Subsidiaries or others;




          (y) The date or dates, if any, after which the Securities may be converted or exchanged into
or for shares of the Company’s common stock or another company’s securities or properties or cash
and the terms for any such conversion or exchange;




          (z) Any other terms of the series.




          The Securities of any series shall be substantially of the tenor and purport as set forth in
one or more indentures supplemental hereto or as provided in a written order of the Company, in
each case with such insertions, omission, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or
as may be required to comply with any law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any stock exchange on which Securities of that series may be listed
or of the depository, or to conform to usage.




          The Trustee’s Certificate of Authentication shall be in substantially the following form:




          “This is one of the Securities of the series designated in accordance with,
and referred to in the within-mentioned Indenture.




          Dated:




          [                                        ], as Trustee




	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory”
	 	 






          SECTION 2.02. Execution and Authentication. Two Officers shall sign the Securities for
the Company by manual or facsimile signature.




          If an Officer whose signature is on a Security no longer holds that office at the time the
Security is authenticated, the Security shall be valid nevertheless.




8









 








          A Security shall not be valid until authenticated by the manual signature of the Trustee. The
signature shall be conclusive evidence that the Security has been authenticated under this
Indenture.




          The Trustee shall authenticate Securities for original issue upon a written order of the
Company signed by one Officer of the Company.




          The Trustee may appoint an authenticating agent reasonably acceptable to the Company to
authenticate Securities. Unless limited by the terms of such appointment, an authenticating agent
may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An authenticating agent has
the same rights as an Agent to deal with the Company or an Affiliate of the Company.




          If the Company shall establish pursuant to Section 2.01 that the Securities of a
series are to be issued in the form of one or more Global Securities, then the Company shall
execute and the Trustee shall authenticate and deliver one or more 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 to be issued in the form of Global Securities and not yet canceled,
(ii) shall be registered in the name of the depositary for such Global Security or Securities or
the nominee of such depositary, (iii) shall be delivered by the Trustee to such depositary or
pursuant to such depositary’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
depositary to the nominee of the depositary or by a nominee of the depositary to the depositary or
another nominee of the depositary or by the depositary or any such nominee to a successor
depositary or a nominee of such successor depositary.”




          Each depositary designated pursuant to Section 2.01 must, at the time of its
designation and at all times while it services as depositary, be a clearing agency registered under
the Exchange Act.




          SECTION 2.03. Registrar and Paying Agent. The Company shall maintain an office or
agency where Securities of a particular series may be presented for registration of transfer or for
exchange (the “Registrar”) and an office or agency where Securities may be presented for
payment (the “Paying Agent”). The registrar for a particular series of Securities shall
keep a register of the Securities of that series and of their transfer and exchange. The Company
may appoint one or more co-registrars and one or more additional Paying Agents for each series of
Securities. The term “Paying Agent” includes any additional paying agent and the term “Registrar”
includes any additional registrar. The Company may change any Paying Agent or registrar without
prior notice to any Holder.




          The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, which shall incorporate the terms of the TIA and implement the terms of this
Indenture which relate to such Agent. The Company shall give prompt written notice to the Trustee
of the name and address of any Agent who is not a party to this Indenture. If



9









 






the Company fails to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The
Company or any Affiliate of the Company may act as Paying Agent or Registrar.




          The Company hereby initially appoints the Trustee as Registrar and Paying Agent for each
series of Securities unless another Registrar or Paying Agent, as the case may be, is appointed
prior to the time the Securities of that series are first issued.




          SECTION 2.04. Paying Agent to Hold Assets in Trust. The Company shall require each
Paying Agent other than the Trustee to agree in writing that the Paying Agent shall hold in trust
for the benefit of Holders or the Trustee all assets held by the Paying Agent for the payment of
principal of and interest on the Securities (whether such money has been paid to it by the Company
or any other obligor on the Securities) and shall notify the Trustee of any failure by the Company
(or any other obligor on the Securities) in making any such payment. While any such failure
continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee and to
account for any funds disbursed. The Company at any time may require a Paying Agent to pay all
money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than
the Company or a Subsidiary of the Company) shall have no further liability for the money so paid
over to the Trustee. If the Company or a Subsidiary of the Company acts as Paying Agent, it shall
segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as
Paying Agent.




          SECTION 2.05. Holder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of Holders,
separately by series, and shall otherwise comply with TIA Section 312(a). If the Trustee is not
the registrar, the Company shall furnish to the Trustee on or before each interest payment date for
the Securities and at such other times as the Trustee may request in writing a list in such form
and as of such date as the Trustee may reasonably require of the names and addresses of Holders,
separately by series, relating to such interest payment date or request, as the case may be.




          SECTION 2.06. Registration of Transfer and Exchange. When Securities of a series are
presented to the registrar or a co-registrar with a request to register their transfer or to
exchange them for an equal principal amount of Securities of other denominations, the registrar or
co-registrar shall register the transfer or make the exchange if its requirements for such
transaction are met. To permit registrations of transfer and exchanges, the Company shall issue
and the Trustee shall authenticate Securities at the registrar’s or co-registrar’s request. No
service charge shall be made for any registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge that may be
imposed
in connection with registration, transfer or exchange of Securities other than exchanges
pursuant to Section 2.10, 3.06 or 9.05 not involving any transfer.




          The registrar or co-registrar shall not be required to register the transfer or exchange of
(i) any Security of a particular series selected for redemption in whole or in part, except the
unredeemed portion of any Security of that series being redeemed in part, or (ii) any Security of a
particular series during a period beginning at the opening of business 15 days



10









 






before the day of
any selection of Securities of that series for redemption under Section 3.02 and ending at
the close of business on the date of selection.




          Any Holder of a beneficial interest in a Global Security shall, by acceptance of such
beneficial interest, agree that transfers of beneficial interest in such Global Security may be
effected only through a book entry system maintained by the holder of such Global Security (or its
agent), and that ownership of a beneficial interest in the Security shall be required to be
reflected in a book entry system.




          SECTION 2.07. Replacement Securities. If a mutilated Security is surrendered to the
Trustee or if the Holder of a Security claims that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security
of the same series if the requirements of the Trustee and the Company are met; provided
that, if any such Security has been called for redemption in accordance with the terms thereof, the
Trustee may pay the Redemption Price thereof on the Redemption Date without authenticating or
replacing such Security. The Trustee or the Company may, in either case, require the Holder to
provide an indemnity bond sufficient in the judgment of each of the Trustee and the Company to
protect the Company, the Trustee or any Agent from any loss which any of them may suffer if a
Security is replaced or if the Redemption Price therefor is paid pursuant to this Section. The
Company may charge the Holder who has lost a Security for its expenses in replacing a Security.




          Every replacement Security is an obligation of the Company and shall be entitled to the
benefits of this Indenture equally and proportionately with any and all other Securities of the
same series.




          SECTION 2.08. Outstanding Securities. The Securities of any series outstanding at any
time are all the Securities of that series authenticated by the Trustee except for those canceled
by it, those delivered to it for cancellation and those described in this Section as not
outstanding.




          If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding and
interest ceases to accrue unless the Trustee receives proof satisfactory to it that the replaced
Security is held by a bona fide purchaser.




          If all principal of and interest on any of the Securities are considered paid under
Section 4.01, such Securities shall cease to be outstanding and interest on them shall
cease to accrue.




          Except as provided in Section 2.09, a Security does not cease to be outstanding
because the Company or an Affiliate of the Company holds such Security.




          For each series of Original Issue Discount Securities, the principal amount of such Securities
that shall be deemed to be outstanding and used to determine whether the necessary Holders have
given any request, demand, authorization, direction, notice, consent or waiver, shall be the
principal amount of such Securities that could be declared to be due and payable



11









 






upon acceleration
upon an Event of Default as of the date of such determination. When requested by the Trustee, the
Company will advise the Trustee of such amount, showing its computations in reasonable detail.




          SECTION 2.09. Treasury Securities. In determining whether the Holders of the required
principal amount of Securities of any series have concurred in any direction, waiver or consent,
Securities owned by the Company or an Affiliate of the Company shall be considered as though they
are not outstanding, except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities which such Trustee
actually knows are so owned shall be so disregarded.




          SECTION 2.10. Temporary Securities. Until definitive Securities are ready for
delivery, the Company may prepare and execute and the Trustee shall authenticate temporary
Securities. Temporary Securities shall be substantially in the form of definitive Securities but
may have variations that the Company considers appropriate for temporary Securities. Without
unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive
Securities in exchange for temporary Securities. Holders of temporary Securities shall be entitled
to all of the benefits of this Indenture.




          SECTION 2.11. Cancellation. The Company at any time may deliver Securities to the
Trustee for cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange, payment or repurchase. The
Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment,
repurchase, redemption, replacement or cancellation and shall destroy such Securities (subject to
the record retention requirements of the Exchange Act). Certification of the destruction of all
cancelled Securities shall be promptly delivered to the Company. The Company may not issue new
Securities to replace Securities that it has paid or that have been delivered to the Trustee for
cancellation.




          SECTION 2.12. CUSIP Numbers. The Company in issuing the Securities may use “CUSIP”
numbers (if then generally in use), and the Trustee shall use CUSIP numbers in notices of
redemption or exchange as a convenience to Holders; provided that any such notice shall
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any such notice and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall not be affected by
any defect in or omission of
such numbers. The Company shall promptly notify the Trustee of any change in the CUSIP
numbers.




          SECTION 2.13. Defaulted Interest. If the Company fails to make a payment of interest
on any series of Securities, it shall pay such defaulted interest plus (to the extent lawful) any
interest payable on the defaulted interest, in any lawful manner. It may elect to pay such
defaulted interest, plus any such interest payable on it, to the Persons who are Holders of such
Securities on which the interest is due on a subsequent special record date. The Company shall
notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each such
Security. The Company shall fix any such record date and payment date for such payment. At



12









 






least
15 days before any such record date, the Company shall mail to Holders affected thereby a notice
that states the record date, payment date, and amount of such interest to be paid.




          SECTION 2.14. Special Record Dates. The Company may, but shall not be obligated to,
set a record date for the purpose of determining the identity of Holders entitled to consent to any
supplement, amendment or waiver permitted by this Indenture. If a record date is fixed, the Holders
of Securities of that series outstanding on such record date, and no other Holders, shall be
entitled to consent to such supplement, amendment or waiver or revoke any consent previously given,
whether or not such Holders remain Holders after such record date. No consent shall be valid or
effective for more than 90 days after such record date unless consents from Holders of the
principal amount of Securities of that series required hereunder for such amendment or waiver to be
effective shall have also been given and not revoked within such 90-day period.




ARTICLE III




REDEMPTION




          SECTION 3.01. Notices to Trustee. If the Company elects to redeem Securities of any
series pursuant to any optional redemption provisions thereof, it shall notify the Trustee of the
intended Redemption Date and the principal amount of Securities of that series to be redeemed.




          The Company shall give each notice provided for in this Section and an Officers’ Certificate
at least 45 days before the Redemption Date (unless a shorter period shall be satisfactory to the
Trustee).




          SECTION 3.02. Selection of Securities to Be Redeemed. If fewer than all the
Securities of any series are to be redeemed, the Trustee shall select the Securities of that series
to be redeemed from the outstanding Securities of that series to be redeemed by a method that
complies with the requirements of any exchange on which the Securities of that series are listed,
or, if the Securities of that series are not listed on an exchange, on a pro rata basis or by lot,
which in any case shall be in accordance with a method the Trustee considers fair and appropriate.




          Except as otherwise provided as to any particular series of Securities, Securities and
portions thereof that the Trustee selects shall be in amounts equal to the minimum authorized
denomination for Securities of the series to be redeemed or any integral multiple thereof.
Provisions of this Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption. The Trustee shall notify the Company promptly in writing of
the Securities or portions of Securities to be called for redemption.




          SECTION 3.03. Notice of Redemption. At least 30 days but not more than 60 days
before the Redemption Date, the Company shall mail a notice of redemption by first-class mail to
each Holder whose Securities are to be redeemed at the address of such Holder appearing in the
register.




13









 








          The notice shall identify the Securities of the series to be redeemed and shall state:





     (1) the Redemption Date;




     (2) the redemption price fixed in accordance with the terms of the Securities of the
series to be redeemed, plus accrued interest, if any, to the date fixed for redemption (the
“Redemption Price”);




     (3) if any Security is being redeemed in part, the portion of the principal amount of
such Security to be redeemed and that, after the Redemption Date, upon surrender of such
Security, a new Security or Securities in principal amount equal to the unredeemed portion
will be issued;




     (4) the name and address of the Paying Agent;




     (5) that Securities called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price;




     (6) that, unless the Company defaults in payment of the Redemption Price, interest on
Securities called for redemption ceases to accrue on and after the Redemption Date; and




     (7) the CUSIP number, if any, of the Securities to be redeemed.



          At the Company’s written request, the Trustee shall give the notice of redemption in the
Company’s name and at its expense. The notice mailed in the manner herein provided shall be
conclusively presumed to have been duly given whether or not the Holder receives such notice. In
any case, failure to give such notice by mail or any defect in the notice to the Holder of any
Security shall not affect the validity of the proceeding for the redemption of any other Security.




          SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is mailed,
Securities called for redemption become due and payable on the Redemption Date at the Redemption
Price. Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price.




          SECTION 3.05. Deposit of Redemption Price. On or before the Redemption Date, the
Company shall deposit with the Trustee or with the Paying Agent (or if the Company or any
Subsidiary of the Company is acting as its own Paying Agent, the Company or such Subsidiary shall
segregate and hold in trust) money sufficient to pay the Redemption Price on all Securities to be
redeemed on that date other than Securities or portions thereof called for redemption on that date
which have been delivered by the Company to the Trustee for cancellation. The Paying Agent shall
promptly return to the Company any money not required for that purpose.




14









 








          SECTION 3.06. Securities Redeemed in Part. Upon surrender of a Security that is
redeemed in part, the Company shall issue and the Trustee shall authenticate for the Holder at the
expense of the Company, a new Security of the same series equal in principal amount to the
unredeemed portion of the Security surrendered.




ARTICLE IV




COVENANTS




          SECTION 4.01. Payment of Securities. The Company shall pay or cause to be paid the
principal of and interest on the Securities on the dates and in the manner provided in this
Indenture and the Securities. Principal and interest shall be considered paid on the date due if
the Paying Agent, if other than the Company or an Affiliate, holds as of 11:00 a.m. New York time
on that date immediately available funds designated for and sufficient to pay all principal and
interest then due. To the extent lawful, the Company shall pay interest on overdue principal and
overdue installments of interest at the rate per annum borne by the applicable series of
Securities.




          SECTION 4.02. Maintenance of Office or Agency. The Company shall maintain in the
Borough of Manhattan, the City of New York, or in [                                        ], an office or agency (which may
be an office of the Trustee or an affiliate of the Trustee or registrar) where Securities may be
surrendered for registration of transfer or exchange and where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served. The Company shall give
prompt written notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee.




          The Company may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in the Borough of Manhattan, the City of New York, or [                                        ], for such purposes. The
Company shall give prompt written notice to the Trustee of any such designation or rescission and
of any change in the location of any such other office or agency.




          The Company hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.03.




          SECTION 4.03. SEC Reports. The Company shall deliver to the Trustee within 15 days
after it files them with the SEC copies of the annual reports and of the information, documents,
and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and
regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act; provided, however, the Company shall not be



15









 






required to deliver to the
Trustee any materials for which the Company has sought and received confidential treatment by the
SEC. The Company also shall comply with the other provisions of TIA Section 314 (a).




          SECTION 4.04. Compliance Certificate. The Company shall deliver to the Trustee,
within 120 days after the end of each fiscal year of the Company, an Officers’ Certificate stating
that in the course of the performance by the signers of their duties as officers of the Company,
they would normally have knowledge of any failure by the Company to comply with all conditions, or
default by the Company with respect to any covenants, under this Indenture, and further stating
whether or not they have knowledge of any such failure or default and, if so, specifying each such
failure or default and the nature thereof. For purposes of this Section, such compliance shall be
determined without regard to any period of grace or requirement of notice provided for in this
Indenture. The certificate need not comply with Section 10.04.




          SECTION 4.05. Taxes. The Company shall pay prior to delinquency, all material taxes,
assessments, and governmental levies except as contested in good faith by appropriate proceedings.




          SECTION 4.06. Corporate Existence. Subject to Article V hereof, the Company
shall do or cause to be done all things necessary to preserve and keep in full force and effect (i)
its corporate existence and (ii) the material rights (charter and statutory), licenses and
franchises of the Company and its Subsidiaries taken as a whole; provided, however,
that the Company shall not be required to preserve any such right, license or franchise if the
Board of Directors or management of the Company shall determine that the preservation thereof is no
longer in the best interests of the Company, and that the loss thereof is not adverse in any
material respect to the Holders.




ARTICLE V




MERGER, ETC.




          SECTION 5.01. When Company May Merge, etc. (a) The Company shall not consolidate or
merge with or into, or sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its assets to, any Person unless: (i) the Person formed by or surviving any
such consolidation or merger (if other than the Company), or to which such sale, assignment,
transfer, lease, conveyance or disposition has been made, is a corporation organized and existing
under the laws of the United States of America, any state thereof or the District of Columbia; (ii)
the Person formed by or surviving any such consolidation or merger (if other than the Company), or
to which such sale, assignment, transfer, lease, conveyance or disposition has been made, assumes
by supplemental indenture satisfactory in form to the Trustee all the obligations of the Company
under the Securities and this Indenture; and (iii) immediately after such transaction, and giving
effect thereto, no Default or Event of Default shall have occurred and be continuing.
Notwithstanding the foregoing, the Company may merge with another Person or acquire by





16











 




purchase or otherwise all or any part of the property or assets of any other corporation or Person in a
transaction in which the surviving entity is the Company.




          (b) In connection with any consolidation, merger, sale, assignment, transfer or lease
contemplated by this Section 5.01, the Company shall deliver, or cause to be delivered, to the
Trustee, in form and substance reasonably satisfactory to the Trustee, an Officers’ Certificate and
an Opinion of Counsel, each stating that such consolidation, merger, sale, assignment, transfer or
lease and the supplemental indenture in respect thereof comply with Article V and the TIA
and that all conditions precedent herein provided for relating to such transaction have been
complied with.




          SECTION 5.02. Successor Corporation Substituted. Upon any consolidation or merger, or
any sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all
the assets of the Company in accordance with Section 5.01, the successor corporation formed
by such consolidation or into which the Company is merged or to which such sale, assignment,
transfer, lease, conveyance or other disposition is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Indenture with the same effect as
if such successor corporation had been named as the Company herein. In the event of any such sale
or conveyance, but not any such lease, the Company or any successor corporation which thereafter
shall have become such in the manner described in this Article V shall be discharged from
all obligations and covenants under this Indenture and the Securities and may be dissolved, wound
up or liquidated.




ARTICLE VI




DEFAULTS AND REMEDIES




          SECTION 6.01. Events of Default. An “Event of Default” occurs with respect to
Securities of any particular series, unless in the establishing Board Resolutions, Officers’
Certificate or supplemental indenture hereto, it is provided that such series shall not have the
benefit of any such Event of Default, when any of the following occurs:





     (i) the Company defaults in the payment of interest on any Security of that series when
it becomes due and payable and such default continues for a period of 30 days;




     (ii) the Company defaults in the payment of the principal of any Security of that
series when the same becomes due and payable at maturity, upon acceleration, redemption or
otherwise;




     (iii) the Company fails to comply with any of its other agreements or covenants in, or
provisions of, the Securities of that series or this Indenture and the Default continues for
the period and after the notice specified below;



17









 






     (iv) the Company pursuant to or within the meaning of any Bankruptcy Law: (A) commences
a voluntary case or proceeding, (B) consents to the entry of an order for relief against it
in an involuntary case or proceeding, (C) consents to the appointment of a Custodian of it
or for all or substantially all of its property, or (D) makes a general assignment for the
benefit of its creditors; or




     (v) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that: (A) is for relief against the Company in an involuntary case or proceeding, (B)
appoints a Custodian for the Company or for all or substantially all of the Company’s
property, or (C) orders the liquidation of the Company;


and in case of (v) the order or decree remains unstayed and in effect for 60 days.




          The term “Bankruptcy Law” means Title 11 of the U.S. Code or any similar Federal or
state law for the relief of debtors. The term “Custodian” means any receiver, Trustee,
assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.




          A Default under clause (iii) of this Section 6.01 is not an Event of Default with respect to a
particular series of Securities until the Trustee notifies the Company in writing, or the Holders
of at least 25% in principal amount of the outstanding Securities of that series notify the Company
and the Trustee, in writing, of the Default, and the Company does not cure the Default within 30
days after receipt of the notice. The notice must specify the Default, demand that it be remedied
and state that the notice is a “Notice of Default”.




          SECTION 6.02. Acceleration. If an Event of Default (other than an Event of Default
specified in clause (iv) or (v) of Section 6.01) occurs and is continuing, the Trustee or the
Holders of at least 25% of the principal amount of the outstanding Securities of that series, by
written notice to the Company
may declare due and payable 100% of the principal amount (or, in the case of Original Issue
Discount Securities, such lesser amount as may be provided for in such Securities) of the
Securities of that series plus any accrued interest to the date of payment. Upon a declaration of
acceleration, such principal (or such lesser amount) and accrued interest to the date of payment
shall be due and payable. If an Event of Default specified in clause (iv) or (v) of Section 6.01
occurs, all unpaid principal and accrued interest on the Securities shall become and be immediately
due and payable without any declaration or other act on the part of the Trustee or any Holder.




          The Holders of a majority of the outstanding principal amount of the Securities of that series
by written notice to the Trustee may rescind an acceleration and its consequences if (i) all
existing Events of Default other than the nonpayment of principal (or such lesser amount) of or
interest on the Securities of that series which have become due solely because of the acceleration,
have been cured or waived and (ii) the rescission would not conflict with any judgment or decree of
a court of competent jurisdiction.




          SECTION 6.03. Other Remedies. If an Event of Default occurs and is continuing with
respect to any series of Securities, the Trustee may pursue any available remedy by proceeding at
law or in equity to collect the payment of principal of or interest on the




18









 




Securities of that series or to enforce the performance of any provision of the Securities of that series or this
Indenture.




          The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon the Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All remedies are cumulative to the extent permitted by law.




          SECTION 6.04. Waiver of Past Defaults. Subject to Sections 6.07 and
9.02, the Holders of at least a majority in principal amount of the outstanding Securities
of any series by notice to the Trustee may waive an existing Default or Event of Default and its
consequences with respect to that series, except a Default in the nonpayment of the principal of or
interest on any Security of that series (provided, however, that the Holders of a
majority in principal amount of the then outstanding Securities of any series may rescind an
acceleration and its consequences, including any related payment default that resulted from such
acceleration) . When a Default or Event of Default is waived, it is cured and ceases.




          SECTION 6.05. Control by Majority. The Holders of at least a majority in principal
amount of the outstanding Securities of any series may 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 it. However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of other
Holders or that may involve
the Trustee in personal liability. The Trustee may take any other action which it deems proper
which is not inconsistent with any such direction.




          SECTION 6.06. Limitation on Suits. A Holder of Securities of any series may not
pursue a remedy with respect to this Indenture or the Securities of that series unless: (i) the
Holder gives to the Trustee written notice of a continuing Event of Default with respect to such
series; (ii) the Holders of at least 25% in principal amount of the outstanding Securities of that
series make a written request to the Trustee to pursue the remedy; (iii) such Holder or Holders
offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability, cost or
expense; (iv) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and (v) during such 60-day period the Holders of at least a
majority in principal amount of the outstanding Securities of that series do not give the Trustee a
direction inconsistent with the request.




          A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder.




          SECTION 6.07. Rights of Holders To Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder of a Security to receive payment of principal
of or interest, if any, on the Security on or after the respective due dates expressed or provided
for in the Security, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of the Holder.




19









 








          SECTION 6.08. Collection Suit by Trustee. If an Event of Default specified in
Section 6.01(i) or (ii) occurs and is continuing with respect to Securities of any
series, the Trustee may recover judgment in its own name and as Trustee of an express trust against
the Company for the whole amount of principal (or such portion of the principal as may be specified
as due upon acceleration at that time in the terms of that series of Securities) and accrued
interest, if any, remaining unpaid on the outstanding Securities of that series, together with (to
the extent lawful) interest on overdue principal and interest, and such further amount as shall be
sufficient to cover the costs and, to the extent lawful, expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel and any other amounts due the Trustee under Section 7.07.




          SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee and the Holders allowed in any judicial proceeding relative to the Company (or any
other obligor upon the Securities), its creditors or its property and shall be entitled and
empowered to participate as a member, voting or otherwise, of any official committee of creditors
appointed in such matter and to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same, and any custodian in any such judicial
proceedings is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07. Nothing herein contained shall be deemed
to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any
plan of reorganization, arrangement, adjustment or composition affecting the Securities or the
rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.




          SECTION 6.10. Priorities. If the Trustee collects any money pursuant to this
Article VI, it shall pay out the money in the following order:





     FIRST: to the Trustee, its agents and attorneys for amounts due under Section
7.07, including payment of all compensation, expense and liabilities incurred, and all
advances made by the Trustee and the costs and expenses of collection;




     SECOND: to Holders of any particular series of Securities for amounts due and unpaid on
the Securities of such series for principal and interest, if any, ratably, without
preference or priority of any kind, according to the amounts due and payable on the
Securities of such series for principal and interest, respectively; and




     THIRD: to the Company or any other obligors on the Securities of that series, as their
interests may appear, or as a court of competent jurisdiction may direct.



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          The Trustee, upon prior written notice to the Company, may fix a record date and payment date
for any payment to Holders pursuant to this Section 6.10. The Trustee shall notify the Company in
writing reasonably in advance of any such record date and payment date.




          SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted
by it as a Trustee, a court in its discretion may require the filing by any party litigant in the
suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
the suit, having due regard to the merits and good faith of the claims or defenses made by the
party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in principal amount
of the outstanding Securities of that series.




ARTICLE VII




TRUSTEE




          SECTION 7.01. Duties of Trustee. (a) If an Event of Default has occurred and is
continuing, the Trustee
shall exercise such of the rights and powers vested in it by this Indenture, and use the same
degree of care and skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs.




          (b) Except during the continuance of an Event of Default: (1) the Trustee need perform only
those duties that are specifically set forth in this Indenture or the TIA, and no implied covenants
or obligations shall be read into this Indenture against the Trustee and (2) in the absence of bad
faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture. However, in the case of any such
certificates or opinions which by any provision hereof are specifically required to be furnished to
the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not,
on their face, they conform to the requirements of this Indenture.




          (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct except that: (1) this paragraph does not
limit the effect of paragraph (b) of this Section 7.01, (2) the Trustee shall not be liable
for any error of judgment made in good faith by a Trust Officer or other officer, unless it is
proved that the Trustee was negligent in ascertaining the pertinent facts and (3) the Trustee shall
not be liable with respect to any action it takes or omits to take in good faith in accordance with
a direction received by it pursuant to Section 6.05.




          (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (e) of this Section
7.01.




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          (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability. The Trustee may refuse to perform any duty or exercise any right or power
unless it receives indemnity satisfactory to it against any loss, liability, cost or expense
(including, without limitation, reasonable fees of counsel).




          (f) The Trustee shall not be obligated to pay interest on any money or other assets received
by it unless otherwise agreed in writing with the Company. Assets held in trust by the Trustee
need not be segregated from other funds except to the extent required by law.




          SECTION 7.02. Rights of Trustee. Subject to Section 7.01:




          (a) The Trustee may conclusively rely on any document (whether in its original or facsimile
form) reasonably believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the document. The Trustee
shall receive and retain financial reports and statements of the Company as provided herein, but
shall have no duty to review or analyze such reports or statements to determine compliance under
covenants or other obligations of the Company.




          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
and/or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on an Officers’ Certificate or Opinion of Counsel.




          (c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care.




          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers, unless the Trustee’s conduct
constitutes willful misconduct or negligence.




          (e) The Trustee may consult with counsel of its selection, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Securities shall be full
and complete authorization and protection from liability in respect of any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the advice or opinion of such
counsel.




          (f) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Trust Officer of the Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a default is received by the Trustee at the Corporate Trust Office of the
Trustee and such notice references the Securities and this Indenture.




          (g) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and
other Person employed to act hereunder.




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          (h) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Holders pursuant to the
provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which may be incurred therein or
thereby.




          (i) Whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may request, and in the absence
of bad faith or willful misconduct on its part, rely upon an Officers’ Certificate and an Opinion
of Counsel.




          (j) The Trustee may request that the Company deliver an Officers’ Certificate setting for the
names of individuals and/or titles of officers authorized at such times to take specified actions
pursuant to this Indenture, which Officers’ Certificate may be signed by any person specified as so
authorized in any such certificate previously delivered and not superseded.




          SECTION 7.03. Individual Rights of Trustee.




          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or an Affiliate of the Company with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee is subject to Sections 7.10 and 7.11.




          SECTION 7.04. Trustee’s Disclaimer. The Trustee makes no representation as to the
validity or adequacy of this Indenture or the Securities, it shall not be accountable for the
Company’s use of the proceeds from the Securities and it shall not be responsible for any statement
in the Securities other than its certificate of authentication.




          SECTION 7.05. Notice of Defaults. If a Default or Event of Default with respect to
the Securities of any series occurs and is continuing, and if it is known to the Trustee, the
Trustee shall mail to Holders a notice of the Default or Event of Default within 90 days after the
occurrence thereof. Except in the case of a Default or Event of Default in payment of any such
Security, the Trustee may withhold the notice if and so long as it in good faith determines that
withholding the notice is in the interests of the Holders.




          SECTION 7.06. Reports by Trustee to Holders. The Trustee shall transmit to Holders
such reports concerning the Trustee and its actions under this Indenture as may be required by TIA
Section 3.13 at the times and in the manner provided by the TIA, which shall initially be not less
than every twelve months commencing on and may be dated as of a date up to 75 days prior to such
transmission.




          A copy of each report at the time of its mailing to Holders shall be filed with the SEC, if
required, and each stock exchange, if any, on which the Securities are listed. The Company shall
promptly notify the Trustee when the Securities of any series are listed on any stock exchange.




23









 








          SECTION 7.07. Compensation and Indemnity. The Company shall be liable for paying to
the Trustee from time to time reasonable compensation for its acceptance of this Indenture and
services hereunder as the Company and the Trustee shall from time to time agree in writing. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Company shall be liable for reimbursing the Trustee upon request for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, costs of preparing
and reviewing reports, certificates and other documents, costs of preparation and mailing of
notices to Securityholders and reasonable costs of counsel retained by the Trustee in connection
with the delivery of an Opinion of Counsel or otherwise, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses, disbursements and
advances of the Trustee’s agents, counsel, accountants and experts. The Company shall indemnify
the Trustee against any and all loss, liability, damages, claims or expense (including reasonable
attorneys’ fees and expenses) incurred by it without negligence, bad faith or willful misconduct on
its part in connection with the administration of this trust and
the performance of its duties hereunder, including the costs and expense of enforcing this
Indenture (including this Section 7.07) and of defending itself against any claims (whether
asserted by any Securityholder, the Company or otherwise). Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder. The Company shall defend the
claim, and the Trustee shall provide reasonable cooperation at the Company’s expense in the
defense. The Trustee may have separate counsel and the Company shall pay the fees and expenses of
such counsel, provided that the Company shall not be required to pay such fees and expenses
if it assumes the Trustee’s defense, and, in the reasonable judgment of outside counsel to the
Trustee, there is no conflict of interest between the Company and the Trustee in connection with
such defense. Notwithstanding the foregoing, the Company need not reimburse any expense or
indemnify against any loss, liability or expense which is finally determined by a court of
competent jurisdiction to have been incurred by the Trustee through the Trustee’s own willful
misconduct, negligence or bad faith.




          To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the Trustee other than money
or property held in trust to pay principal of and interest on particular Securities. Such lien
shall survive the satisfaction and discharge of this Indenture. The Trustee’s right to receive
payment of any amounts due under this Section 7.07 shall not be subordinate to any other
liability or Indebtedness of the Company.




          The Company’s and the Subsidiary Guarantors’ payment obligations pursuant to this Section
shall survive the discharge of this Indenture. When the Trustee incurs expenses after the
occurrence of an Event of Default specified in clause (iv) or clause (v) of Section 6.01
with respect to the Company, the expenses are intended to constitute expenses of administration
under any Bankruptcy Law.




          SECTION 7.08. Replacement of Trustee. A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section 7.08.




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          The Trustee may resign and be discharged from the trust hereby created with respect to one or
more or all series of Securities by so notifying the Company in writing. The Holders of a majority
in principal amount of the then outstanding Securities of any series may remove the Trustee with
respect to that series by so notifying the Trustee and the Company in writing. The Company may
remove the Trustee with respect to one or more or all series of Securities if: (i) the Trustee
fails to comply with Section 7.10 or TIA Section 310; (ii) the Trustee is adjudged a
bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any
Bankruptcy Law; (iii) a Custodian or public officer takes charge of the Trustee or its property; or
(iv) the Trustee becomes incapable of acting.




          If, as to any series of Securities, the Trustee resigns or is removed or if a vacancy exists
in the office of the Trustee for any reason, the Company shall promptly appoint a successor Trustee
for that series of Securities. The Trustee shall be entitled to payment of its fees and
reimbursement of its expenses while acting as Trustee. Within one year after the
successor Trustee takes office, the Holders of at least a majority in principal amount of then
outstanding Securities of that series may appoint a successor Trustee to replace the successor
Trustee appointed by the Company.




          Any Holder of Securities of that series may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee if the Trustee fails to
comply with Section 7.10.




          A successor Trustee as to any series of Securities shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of
the retiring Trustee shall become effective, and the successor Trustee shall have all the rights,
powers and duties of the Trustee under this Indenture. The Company shall mail a notice of the
successor Trustee’s succession to the Holders. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien provided for in
Section 7.07. Notwithstanding replacement of the Trustee pursuant to this Section
7.08, the Company’s obligations under Section 7.07 hereof shall continue for the
benefit of the retiring Trustee with respect to expenses, losses and liabilities incurred by it
prior to such replacement.




          In case of the appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more series shall execute and deliver an indenture supplemental
hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain
such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series to which the appointment of such successor Trustee relates,
(2) shall contain such provisions as shall be necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or
those series as to which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall
be necessary or desirable to provide for or facilitate the administration of the trusts hereunder
by more than one Trustee; provided, however, that nothing herein or in such




25









 




supplemental indenture shall constitute such Trustees to be co-Trustees of the same trust and that
each such Trustee shall be Trustee of a trust hereunder separate and apart from any trust hereunder
administered by any other such Trustee.




          Upon the execution and delivery of such supplemental indenture the resignation or removal of
the retiring Trustee shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.




          SECTION 7.09. Successor Trustee by Merger, Etc. Subject to Section 7.10, if the
Trustee consolidates with, merges or converts into, or transfers all or substantially all of its
corporate
trust business to, another corporation or national banking association, the successor entity
without any further act shall be the successor Trustee as to that series of Securities.




          SECTION 7.10. Eligibility; Disqualification. Each series of Securities shall always
have a Trustee who satisfies the requirements of TIA Section 310(a) (1), (2) and (5). The Trustee
as to any series of Securities shall always have a combined capital and surplus of at least $100
million as set forth in its most recent published annual report of condition. The Trustee is
subject to TIA Section 310(b).




          SECTION 7.11. Preferential Collection of Claims Against the Company. The Trustee is
subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311 (b).
A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated therein.




ARTICLE VIII




DISCHARGE OF INDENTURE




          SECTION 8.01. Satisfaction and Discharge of Indenture. This Indenture shall cease to
be of further effect (except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this Indenture, when





(a) either




(i) all Securities theretofore authenticated and delivered (other than Securities
that have been destroyed, lost or stolen and that have been replaced or paid) have
been delivered to the Trustee for cancellation; or




(ii) all such Securities not theretofore delivered to the Trustee for cancellation




(1) have become due and payable, or



26









 






(2) will become due and payable at their stated maturity within one year, or




(3) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company, or




(4) are deemed paid and discharged pursuant to Section 8.03, as applicable;




and the Company, in the case of (1), (2) or (3) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust an amount sufficient for the
purpose of paying and discharging the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal and interest to
the date of such deposit (in the case of Securities which have become due and
payable on or prior to the date of such deposit) or to the stated maturity or
redemption date, as the case may be;



          (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company;
and




          (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.




          Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 7.07, and, if money shall have been deposited with the
Trustee pursuant to clause (a) of this Section or if money or obligations shall have been deposited
with or received by the Trustee pursuant to Section 8.03, the obligations of the Trustee
under Section 8.02 and Section 8.05 shall survive.




          SECTION 8.02. Application of Trust Funds; Indemnification.




          (a) Subject to the provisions of Section 8.05, all money deposited with the Trustee
pursuant to Section 8.01, all money and U.S. Government Obligations deposited with the
Trustee pursuant to Section 8.03 or 8.04 and all money received by the Trustee in
respect of U.S. Government Obligations deposited with the Trustee pursuant to Section 8.03
or 8.04, shall be held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the persons
entitled thereto, of the principal and interest for whose payment such money has been deposited
with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as
contemplated by Sections 8.03 and 8.04.




27









 








          (b) The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations deposited pursuant to Sections
8.03 or 8.04 or the interest and principal received in respect of such obligations
other than any payable by or on behalf of Holders.




          (c) The Trustee shall deliver or pay to the Company from time to time upon the request of the
Company any U.S. Government Obligations or money held by it as provided in Sections 8.03 or
8.04 which, in the opinion of a nationally recognized firm of independent
certified public accountants expressed in a written certification thereof delivered to the
Trustee, are then in excess of the amount thereof which then would have been required to be
deposited for the purpose for which such U.S. Government Obligations or money were deposited or
received. This provision shall not authorize the sale by the Trustee of any U.S. Government
Obligations held under this Indenture.




          SECTION 8.03. Legal Defeasance of Securities of any Series. Unless this Section
8.03 is otherwise specified to be inapplicable to Securities of any series, the Company shall
be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of
any such series on the 91st day after the date of the deposit referred to in subparagraph (a)
hereof, and the provisions of this Indenture, as it relates to such outstanding Securities of such
series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, upon
the request of the Company, execute proper instruments acknowledging the same), except as to:




          (i) the rights of Holders of Securities of such series to receive, from the trust funds
described in subparagraph (d) hereof, (x) payment of the principal of an each installment of
principal of or interest on the outstanding Securities of such series on the stated maturity of
such principal of or interest and (y) the benefit of any mandatory sinking fund payments applicable
to the Securities of such series on the day on which such payments are due and payable in
accordance with the terms of this Indenture and the Securities of such series;




          (ii) the Company’s obligations with respect to such Securities of such series under
Sections 2.03, 2.06 and 2.07; and




          (iii) the rights, powers, trust and immunities of the Trustee hereunder and the duties of the
Trustee under Section 8.02 and the duty of the Trustee to authenticate Securities of such
series issued on registration of transfer of exchange;




          provided that, the following conditions shall have been satisfied:




          (a) the Company shall have deposited or caused to be deposited irrevocably 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 such Securities, cash in U.S.
Dollars and/or U.S. Government Obligations which through the payment of interest and principal in
respect thereof, in accordance with their terms, will provide (and without reinvestment and
assuming no tax liability will be imposed on such Trustee), not later than one day before the due
date of any payment of money, an amount in cash, sufficient, in the




28









 




opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge each installment of principal (including mandatory
sinking fund or analogous payments) of and interest, if any, on all the Securities of such series
on the dates such installments of interest or principal are due;




          (b) such deposit will not result in a breach or violation of, or constitute a default under,
this Indenture;




          (c) no Default or Event of Default with respect to the Securities of such series shall have
occurred on the date of such deposit and 91 days shall have passed after the deposit has been made,
and, during such 91 day period, no Default specified in Section 6.0l(iv) or (v) with respect to the
Company occurs which is continuing at the end of such period;




          (d) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel to the effect that (i) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture, there has
been a change in the applicable Federal income tax law, in either case to the effect that, and
based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such
series will not recognize income, gain or loss for Federal income tax purposes as a result of such
deposit, defeasance and discharge and will be subject to Federal income tax on the same amount and
in the same manner and at the same times as would have been the case if such deposit, defeasance
and discharge had not occurred;




          (e) the Company shall have delivered to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders of the Securities of
such series over any other creditors of the Company or with the intent of defeating, hindering,
delaying or defrauding any other creditors of the Company;




          (f) such deposit shall not result in the trust arising from such deposit constituting an
investment company (as defined in the Investment Company Act of 1940, as amended), or such trust
shall be qualified under such Act or exempt from regulation thereunder; and




          (g) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the defeasance contemplated by this
Section have been complied with.




          SECTION 8.04. Covenant Defeasance. Unless this Section 8.04 is otherwise
inapplicable to Securities of any series, on and after the 91st day after the date of the deposit
referred to in subparagraph (a) hereof, the Company may omit to comply with any term, provision or
condition set forth under Sections 4.03, 4.04 and 4.05 as well as any
additional covenants contained in a supplemental indenture hereto for a particular series of
Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section
2.01 (and the failure to comply with any such provisions shall not constitute a Default or
Event of Default under Section 6.01) and the occurrence of any event described in clause
(e) of Section 6.01 shall not constitute




29









 




a Default or Event of Default hereunder, with
respect to the Securities of such series, provided that the following conditions shall have been
satisfied:




          (a) With reference to this Section 8.04, the Company has deposited or caused to be
irrevocably deposited (except as provided in Section 8.03) with the Trustee as trust funds
in trust, specifically pledged as Security for, and dedicated solely to, the benefit of the Holders
of such Securities, cash in U.S. Dollars and/or U.S. Government Obligations which through the payment of interest and principal in respect thereof, in accordance with their terms, will
provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee),
not later than one day before the due date of any payment of money, an amount in cash, sufficient,
in the opinion of a nationally recognized firm of independent certified public accountants
expressed in a written certification thereof delivered to the Trustee, to pay principal and
interest, if any, on and any mandatory sinking fund in respect of the Securities of such series on
the dates such installments of interest or principal are due;




          (b) Such deposit will not result in a breach or violation of, or constitute a default under,
this Indenture;




          (c) No Default or Event of Default with respect to the Securities of such series shall have
occurred on the date of such deposit and 91 days shall have passed after the deposit has been made,
and, during such 91 day period, no Default specified in Section 6.01(iv) or (v) with respect to the
Company occurs which is continuing at the end of such period;




          (d) The Company shall have delivered to the Trustee an Opinion of Counsel confirming that
Holders of the Securities of such series will not recognize income, gain or loss for federal income
tax purposes as a result of such deposit and defeasance and will be subject to federal income tax
on the same amounts, in the same manner and at the same times as would have been the case if such
deposit and defeasance had not Occurred;




          (e) The Company shall have delivered to the Trustee an Officers’ Certificate stating the
deposit was not made by the Company with the intent of preferring the Holders of the Securities of
such series over any other creditors of the Company or with the intent of defeating, hindering,
delaying or defrauding any other creditors of the Company; and




          (f) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the defeasance
contemplated by this Section have been complied with.




          SECTION 8.05. Repayment to Company. The Trustee and the Paying Agent shall pay to
the Company upon request any money held by them for the payment of principal or interest that
remains unclaimed for two years after the date upon which such payment shall have become due. After
payment to the Company, Holders entitled to the money must look to the Company for payment as
general creditors unless an applicable abandoned property law designates another Person.




30









 








ARTICLE IX




AMENDMENTS, SUPPLEMENTS AND WAIVERS




          SECTION 9.01. Without Consent of Holders. The Company and the Trustee may amend this
Indenture or the Securities without the consent of any Holder: (i) to cure any ambiguity, defect or
inconsistency or make any change required to qualify the indenture under the TIA, provided that
such change does not adversely affect the rights hereunder of any Holder in any material respect;
(ii) to comply with Section 5.01; (iii) to provide for uncertificated Securities in
addition to certificated Securities; (iv) to make any change that does not adversely affect in any
material respect the rights hereunder of any Holder; (v) to add to, change or eliminate any of the
provisions of this Indenture in respect of one or more series of Securities, provided,
however, that any such addition, change or elimination (A) shall neither (i) apply to any
Security of any series created prior to the execution of such supplemental indenture and entitled
to the benefit of such provision nor (ii) modify the rights of the holder of any such Security with
respect to such provision or (B) shall become effective only when there is no outstanding Security
of any series created prior to the execution of such supplemental indenture and entitled to the
benefit of such provisions; or (vi) to establish additional series of Securities as permitted by
Section 2.01.




          SECTION 9.02. With Consent of Holders. The Company and the Trustee as to any series
of Securities may amend this Indenture or the Securities of that series or waive compliance in any
particular instance with any provision of this Indenture or the Securities of that series, in each
case with the written consent of the Holders of at least a majority in principal amount of the then
outstanding Securities of that series.




          Without the consent of each Holder affected, an amendment or waiver under this Section may
not: (i) reduce the principal amount of Securities, whose Holders must consent to an amendment or
waiver; (ii) reduce the rate of or change the time for payment of interest on any Security; (iii)
change the date on which any Security may be subject to redemption or repurchase, or reduce the
redemption or repurchase price therefor; (iv) make any Security payable in currency other than that
stated in the Security; or (v) make any change in Section 6.04, 6.07 or this
sentence.




          It shall not be necessary for the consent of the Holders under this Section to approve the
particular form of any proposed amendment or waiver, but it shall be sufficient if such consent
approves the substance thereof.




          An amendment or waiver under this Section which waives, 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 the Holders of Securities
of such series with respect to such covenant or other provision, shall be deemed not to affect the
rights under this Indenture of the Holders of Securities of any other series.




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          The Company will mail supplemental indentures to Holders upon request. Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture or waiver.




          SECTION 9.03. Compliance with Trust Indenture Act. Every amendment to this Indenture
or the Securities shall be set forth in a supplemental indenture that complies with the TIA as then
in effect.




          SECTION 9.04. Revocation and Effect of Consents. Until an amendment or waiver
becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder
and every subsequent Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security, even if notation of the consent is not made on any Security;
provided, however, that unless a record date shall have been established pursuant
to Section 2.14, any such Holder or subsequent Holder may revoke the consent as to his
Security or portion of a Security if the Trustee receives written notice of revocation before the
date the amendment or waiver becomes effective. An amendment or waiver becomes effective on receipt
by the Trustee of consents from the Holders of the requisite percentage principal amount of the
outstanding Securities of any series, and thereafter shall bind every Holder of Securities of that
series.




          SECTION 9.05. Notation on or Exchange of Securities. If an amendment or waiver
changes the terms of a Security: (a) the Trustee may require the Holder of the Security to deliver
such Security to the Trustee, the Trustee may place an appropriate notation on the Security about
the changed terms and return it to the Holder and the Trustee may place an appropriate notation on
any Security thereafter authenticated; or (b) if the Company or the Trustee so determines, the
Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security
that reflects the changed terms.




          SECTION 9.06. Trustee to Sign Amendment, etc. The Trustee shall sign any amendment
authorized pursuant to this Article IX if the amendment does not adversely affect the
rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need
not sign it. In signing or refusing to sign such amendment, the Trustee shall be entitled to
receive and shall be fully protected in relying upon an Officers’ Certificate and an Opinion of
Counsel as conclusive evidence that such amendment is authorized or permitted by this Indenture and
that such amendment, supplement or waiver is the legal, valid and binding obligation of the
Company, enforceable against it in accordance with its terms, subject to customary exceptions, and
complies with the provisions hereof (including Section 9.03).




ARTICLE X




MISCELLANEOUS




          SECTION 10.01. Trust Indenture Act Controls. This Indenture is subject to the
provisions of the TIA which are required to be part of this Indenture, and shall, to the extent
applicable, be governed by such provisions.




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          SECTION 10.02. Notices. Any notice or communication to the Company or the Trustee is
duly given if in writing and delivered in person or mailed by first-class mail to the address set
forth below:



If to the Company:



Nastech Pharmaceutical Company Inc.

3830 Monte Villa Parkway

Bothell, Washington 98021

Attention: Chief Financial Officer



with a copy to:



Pryor Cashman LLP

410 Park Avenue

New York, NY 10022

Attention: Lawrence Remmel



If to the Trustee:



[                                       ]



                                       



                                       



                                       

Attention:                      



With a copy to:



                                       



                                       



                                       

Attention:                      



The Company or the Trustee by notice to the other may designate additional or different addresses
for subsequent notices or communications.




          Any notice or communication to a Holder shall be mailed by first-class mail to his address
shown on the register kept by the registrar. Failure to mail a notice or communication to a Holder
or any defect in such notice or communication shall not affect its sufficiency with respect to
other Holders.




          If a notice or communication is mailed or sent in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it, except that notice to the
Trustee shall only be effective upon receipt thereof by the Trustee.





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          If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.




          SECTION 10.03. Communication by Holders with Other Holders. Holders may communicate
pursuant to TIA Section 312(b) with other Holders with respect to their rights under this Indenture
or the Securities. The Company, the Trustee, the registrar and anyone else shall have the
protection of TIA Section 312 (c)




          SECTION 10.04. Certificate and Opinion as to Conditions Precedent. Upon any request
or application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee: (1) an Officers’ Certificate (which shall include the statements set
forth in Section 10.05) stating that, in the opinion of the signers, all conditions precedent and
covenants, if any, provided for in this Indenture relating to the proposed action have been
complied with; and (ii) an Opinion of Counsel (which shall include the statements set forth in
Section 10.05) stating that, in the opinion of such counsel, all such conditions precedent and
covenants have been complied with.




          SECTION 10.05. Statements Required in Certificate or Opinion. Each certificate (other
than certificates provided pursuant to Section 4.04) or opinion with respect to compliance
with a condition or covenant provided for in this Indenture shall include: (i) a statement that the
person making such certificate or opinion has read such covenant or condition; (ii) a brief
statement as to the nature and scope of the examination or investigation upon which the statements
or opinions contained in such certificate or opinion are based; (iii) a statement that, in the
opinion of such person, he or she has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not such covenant or condition has been
complied with; and (iv) a statement as to whether or not, in the opinion of such person, such
condition or covenant has been complied with; provided, however, that with respect
to matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or certificate of
public officials.




          SECTION 10.06. Rules by Trustee and Agents. The Trustee may make reasonable rules
for action by or for a meeting of Holders. The Registrar or Paying Agent may make reasonable rules
and set reasonable requirements for its functions.




          SECTION 10.07. Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or
a day on which banking institutions in the City of New York are not required or authorized to be
open. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the
intervening period.




          SECTION 10.08. Duplicate Originals. The parties may sign any number of copies of
this Indenture. One signed copy is enough to prove this Indenture.




          SECTION 10.09. Governing Law. The internal laws of the State of New York shall
govern this Indenture and the Securities, without regard to the conflicts of Law rules thereof.




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          SECTION 10.10. No Adverse Interpretation of Other Agreements. This Indenture may not
be used to interpret another indenture, loan or debt agreement of the Company or any subsidiary.
Any such indenture, loan or debt agreement may not be used to interpret this Indenture.




          SECTION 10.11. Successors. All agreements of the Company in this Indenture and the
Securities shall bind their respective successors. All agreements of the Trustee in this Indenture
shall bind its successor.




          SECTION 10.12. Severability. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.




          SECTION 10.13. Counterpart Originals. This Indenture may be signed in one or more
counterparts. Each signed copy shall be an original, but all of them together represent the same
agreement.




	 	 	 	 	 
	 	NASTECH PHARMACEUTICAL 
COMPANY INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	Dated:
	 	[                                                            ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



Dated:





35