Exhibit 4.5


 


ARQULE, INC.


 


Issuer


 


and


 


[TRUSTEE]


 


Trustee


 


Indenture


 


Dated as of                     


 


SUBORDINATED DEBT SECURITIES


 




     


     


    

 


ARQULE, INC.


 


CERTAIN SECTIONS OF THIS INDENTURE RELATING
TO

SECTIONS 310 THROUGH 318, INCLUSIVE, OF THE

TRUST INDENTURE ACT OF 1939:


 


	Trust Indenture	 	
	Act Section	 	 	Indenture
    Section
	§310(a)(1)	 	609	 
	 	 	 	 
	(a)(2)	 	609	 
	 	 	 	 
	(a)(3)	 	Not Applicable	 
	 	 	 	 
	(a)(4)	 	Not Applicable	 
	 	 	 	 
	(b)	 	608; 610	 
	 	 	 	 
	§311(a)	 	613	 
	 	 	 	 
	(b)	 	613	 
	 	 	 	 
	§312(a)	 	701; 702	 
	 	 	 	 
	(b)	 	702	 
	 	 	 	 
	(c)	 	702	 
	 	 	 	 
	§313(a)	 	703	 
	 	 	 	 
	(b)	 	703	 
	 	 	 	 
	(c)	 	703	 
	 	 	 	 
	(d)	 	703	 
	 	 	 	 
	§314(a)	 	704	 
	 	 	 	 
	(a)(4)	 	1004	 
	 	 	 	 
	(b)	 	Not Applicable	 
	 	 	 	 
	(c)(1)	 	102	 
	 	 	 	 
	(c)(2)	 	102	 
	 	 	 	 
	
        (c)(3)
	 	Not Applicable	 
	 	 	 	 
	(d)	 	Not Applicable	 
	 	 	 	 
	(e)	 	102	 
	 	 	 	 
	§315(a)	 	601, 603	 
	 	 	 	 
	(b)	 	602	 
	 	 	 	 
	(c)	 	601	 
	 	 	 	 
	(d)	 	601	 
	 	 	 	 
	(e)	 	514	 
	 	 	 	 
	§316(a)	 	101	 
	 	 	 	 
	(a)(1)(A)	 	502; 512	 
	 	 	 	 
	(a)(1)(B)	 	513	 
	 	 	 	 
	(a)(2)	 	Not Applicable	 
	 	 	 	 
	(b)	 	508	 
	 	 	 	 
	(c)	 	104	 
	 	 	 	 
	§317(a)(1)	 	503	 
	 	 	 	 
	(a)(2)	 	504	 
	 	 	 	 
	(b)	 	1003	 
	 	 	 	 
	§318(a)	 	107	 


 


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


 




     


     


    

 


TABLE OF CONTENTS


 


	 	 	Page
	 	 	 
	ARTICLE I
	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 1
	 
	Section 101.	Definitions	1
	 	 	 
	Section 102.	Compliance Certificates and Opinions	7
	 	 	 
	Section 103.	Form of Documents Delivered to Trustee	8
	 	 	 
	Section 104.	Acts of Holders; Record Dates	8
	 	 	 
	Section 105.	Notices, Etc., to Trustee and the Company	10
	 	 	 
	Section 106.	Notice to Holders; Waiver	10
	 	 	 
	Section 107.	Conflict with Trust Indenture Act	10
	 	 	 
	Section 108.	Effect of Headings and Table of Contents	11
	 	 	 
	Section 109.	Successors and Assigns	11
	 	 	 
	Section 110.	Separability Clause	11
	 	 	 
	Section 111.	Benefits of Indenture	11
	 	 	 
	Section 112.	Governing Law	11
	 	 	 
	Section 113.	Legal Holidays	11
	 	 	 
	Section 114.	Language of Notices, Etc.	11
	 	 	 
	Section 115.	Interest Limitation	12
	 	 	 
	Section 116.	No Personal Liability of Officers, Directors, Employees or Shareholders	12
	 	 	 
	Section 117.	Applicability of Depositary	13
	 	 	 
	ARTICLE II
	 
	SECURITY FORMS 13
	 
	Section 201.	Forms Generally	13
	 	 	 
	Section 202.	Form of Face of Security	13


 




    	 	i	 



     


    

 


	
        Section 203.
	Form of Reverse of Security	16
	 	 	 
	Section 204.	Global Securities	21
	 	 	 
	Section 205.	Form of Trustee’s Certificate and Authorization	22
	 	 	 
	ARTICLE III
	 
	THE SECURITIES 22
	 
	Section 301.	Amount Unlimited; Issuable in Series	22
	 	 	 
	Section 302.	Denominations	25
	 	 	 
	Section 303.	Execution, Authentication, Delivery and Dating	25
	 	 	 
	Section 304.	Temporary Securities	27
	 	 	 
	Section 305.	Registration, Registration of Transfer and Exchange	28
	 	 	 
	Section 306.	Mutilated, Destroyed, Lost and Stolen Securities	29
	 	 	 
	Section 307.	Payment of Interest; Interest Rights Preserved	30
	 	 	 
	Section 308.	Persons Deemed Owners	31
	 	 	 
	Section 309.	Cancellation	32
	 	 	 
	Section 310.	Computation of Interest	32
	 	 	 
	Section 311.	CUSIP Numbers	32
	 	 	 
	ARTICLE IV
	 
	SATISFACTION AND DISCHARGE 33
	 
	Section 401.	Satisfaction and Discharge of Indenture	33
	 	 	 
	Section 402.	Application of Trust Money	34
	 	 	 
	ARTICLE V
	 
	REMEDIES 34
	 
	Section 501.	Events of Default	34
	 	 	 
	Section 502.	Acceleration of Maturity; Rescission and Annulment	35
	 	 	 
	Section 503.	Collection of Indebtedness and Suits for Enforcement by Trustee	36


 




    	 	ii	 



     


    

 


	
        Section 504.
	Trustee May File Proofs of Claim	36
	 	 	 
	Section 505.	Trustee May Enforce Claims Without Possession of Securities	37
	 	 	 
	Section 506.	Application of Money Collected	37
	 	 	 
	Section 507.	Limitation on Suits	37
	 	 	 
	Section 508.	Unconditional Right of Holders to Receive Principal, Premium and Interest	38
	 	 	 
	Section 509.	Restoration of Rights and Remedies	38
	 	 	 
	Section 510.	Rights and Remedies Cumulative	38
	 	 	 
	Section 511.	Delay or Omission Not Waiver	39
	 	 	 
	Section 512.	Control by Holders	39
	 	 	 
	Section 513.	Waiver of Past Defaults	39
	 	 	 
	Section 514.	Undertaking for Costs	40
	 	 	 
	ARTICLE VI
	 
	THE TRUSTEE 40
	 
	Section 601.	Certain Duties and Responsibilities	40
	 	 	 
	Section 602.	Notice of Defaults	41
	 	 	 
	Section 603.	Certain Rights of Trustee	41
	 	 	 
	Section 604.	Not Responsible for Recitals or Issuance of Securities	43
	 	 	 
	Section 605.	May Hold Securities	43
	 	 	 
	Section 606.	Money Held in Trust	43
	 	 	 
	Section 607.	Compensation and Reimbursement	43
	 	 	 
	Section 608.	Disqualification; Conflicting Interests	44
	 	 	 
	Section 609.	Corporate Trustee Required; Eligibility	44
	 	 	 
	Section 610.	Resignation and Removal; Appointment of Successor	44
	 	 	 
	Section 611.	Acceptance of Appointment by Successor	46
	 	 	 
	Section 612.	Merger, Conversion, Consolidation or Succession to Business	47


 




    	 	iii	 



     


    

 


	
        Section 613.
	Preferential Collection of Claims Against the Company	47
	 	 	 
	Section 614.	Appointment of Authenticating Agent	47
	 	 	 
	ARTICLE VII
	 
	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND THE COMPANY 48
	 
	Section 701.	The Company to Furnish Trustee Names and Addresses of Holders	48
	 	 	 
	Section 702.	Preservation of Information; Communications to Holders	49
	 	 	 
	Section 703.	Reports by Trustee	49
	 	 	 
	Section 704.	Reports by the Company	49
	 	 	 
	ARTICLE VIII
	 
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 50
	 
	Section 801.	The Company May Consolidate, Etc., Only on Certain Terms	50
	 	 	 
	Section 802.	Successor Substituted	50
	 	 	 
	ARTICLE IX
	 
	SUPPLEMENTAL INDENTURES 51
	 
	Section 901.	Supplemental Indentures Without Consent of Holders	51
	 	 	 
	Section 902.	Supplemental Indentures with Consent of Holders	52
	 	 	 
	Section 903.	Execution of Supplemental Indentures	53
	 	 	 
	Section 904.	Effect of Supplemental Indentures	53
	 	 	 
	Section 905.	Conformity with Trust Indenture Act	53
	 	 	 
	Section 906.	Reference in Securities to Supplemental Indentures	53
	 	 	 
	ARTICLE X
	 
	COVENANTS 53
	 
	Section 1001.	Payment of Principal, Premium and Interest	53
	 	 	 
	Section 1002.	Maintenance of Office or Agency	53
	 	 	 
	Section 1003.	Money for Securities Payments to Be Held in Trust	54


 




    	 	iv	 



     


    

 


	
        Section 1004.
	Statement by Officers as to Default	55
	 	 	 
	Section 1005.	Waiver of Certain Covenants	55
	 	 	 
	ARTICLE XI
	 
	REDEMPTION OF SECURITIES 56
	 
	Section 1101.	Applicability of Article	56
	 	 	 
	Section 1102.	Election to Redeem; Notice to Trustee	56
	 	 	 
	Section 1103.	Selection by Trustee of Securities to be Redeemed	56
	 	 	 
	Section 1104.	Notice of Redemption	57
	 	 	 
	Section 1105.	Deposit of Redemption Price	57
	 	 	 
	Section 1106.	Securities Payable on Redemption Date	57
	 	 	 
	Section 1107.	Securities Redeemed in Part	58
	 	 	 
	ARTICLE XII
	 
	SINKING FUNDS 58
	 
	Section 1201.	Applicability of Article	58
	 	 	 
	Section 1202.	Satisfaction of Sinking Fund Payments with Securities	58
	 	 	 
	Section 1203.	Redemption of Securities for Sinking Fund	59
	 	 	 
	ARTICLE XIII
	 
	DEFEASANCE 59
	 
	Section 1301.	Applicability of Article	59
	 	 	 
	Section 1302.	Legal Defeasance	59
	 	 	 
	Section 1303.	Covenant Defeasance	61
	 	 	 
	Section 1304.	Application by Trustee of Funds Deposited for Payment of Securities	62
	 	 	 
	Section 1305.	Repayment to the Company	62
	 	 	 
	Section 1306.	Reinstatement	63
	 	 	 



 






    	 	v	 



     


    

 


	ARTICLE XIV
	 
	SUBORDINATION OF SECURITIES 63
	 
	Section 1401.	Securities Subordinated to Senior Debt	63


 




    	 	vi	 



     


    

 


INDENTURE dated as
of                     ,
between ARQULE, INC., a Delaware corporation (the “Company”), having its principal office at 19 Presidential Way, Woburn,
Massachusetts 01801, and [TRUSTEE], a [                          ]
(the “Trustee”), having its principal office at [                              ].


 


RECITALS OF THE COMPANY


 


The Company has duly
authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured subordinated
debentures, notes or other evidences of indebtedness (the “Securities”), to be issued in one or more series as provided
in this Indenture.


 


All things necessary
to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.


 


This Indenture is subject
to the provisions of the Trust Indenture Act that are required to be a part of this Indenture and, to the extent applicable, shall
be governed by such provisions.


 


NOW, THEREFORE, THIS
INDENTURE WITNESSETH:


 


For and in consideration
of the premises and the purchase of the Securities by the Holders thereof, it is mutually agreed, for the equal and proportionate
benefit of all Holders of the Securities or of any series thereof, as follows:


 


ARTICLE
I 



DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION


 


Section 101.        Definitions


 


For all purposes of
this Indenture, except as otherwise expressly provided or unless the context otherwise requires:


 


(1)         the
terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular;


 


(2)         all
other terms used herein which are defined in the Trust Indenture Act, either directly, or by reference therein, have the meanings
assigned to them therein;


 


(3)         all
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles in the United States, and, except as otherwise herein expressly provided, the term “generally accepted accounting
principles” with respect to any computation required or permitted hereunder shall mean such accounting principles as
are generally accepted in the United States at the date of such computation;


 




    	 	1	 



     


    

 


(4)         the
words “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; and


 


(5)         the
words “Article” and “Section” refer to an Article and Section, respectively, of this Indenture.


 


“Act”,
when used with respect to any Holder, has the meaning specified in Section 104.


 


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


 


“Authenticating
Agent” means any Person authorized by the Trustee pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.


 


“Authorized
Newspaper” means a newspaper, in the English language or in an official language of the country of publication, customarily
published on each Business Day, whether or not published on Saturdays, Sundays or holidays, and of general circulation in the place
in connection with which the term is used or in the financial community of such place.


 


“Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors or the protection of creditors.


 


“Board of
Directors” means the board of directors of the Company, or the executive or any other committee of that board duly authorized
to act in respect thereof.


 


“Board Resolution”
means a copy of a resolution certified by the Corporate Secretary of the Company, the principal financial officer of the Company
or any other authorized officer of the Company or a Person duly authorized by any of them, to have been duly adopted by the Board
of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.


 


“Business
Day”, when used with respect to any Place of Payment or other location, means, except as otherwise provided as contemplated
by Section 301 with respect to any series of Securities, each Monday, Tuesday, Wednesday, Thursday and Friday which is not
a day on which banking institutions in that Place of Payment or other location are authorized or obligated by law, executive order
or regulation to close.


 


“Commission”
means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act or, if at any time
after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties at such time.


 




    	 	2	 



     


    

 


“Company”
means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall
have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such
successor Person.


 


“Company Request”
or “Company Order” means a written request or order signed in the name of the Company by the Chairman of the
Board, the Vice Chairman, the President or a Vice President of the Company, and by the Treasurer or Secretary of the Company, and
delivered to the Trustee.


 


“Corporate
Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall be principally
administered, which at the date hereof is [                                ].


 


“Corporation”
includes corporations, associations, partnerships (general or limited), limited liability companies, joint-stock companies and
business trusts.


 


“Covenant
defeasance” has the meaning specified in Section 1303.


 


“Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.


 


“Debt”
means any debt for money borrowed.


 


“Default”
means, with respect to a series of Securities, any event which is, or after notice or lapse of time or both would become, an Event
of Default with respect to Securities of such series.


 


“Defaulted
Interest” has the meaning specified in Section 307.


 


“Defeasance”
has the meaning specified in Section 1302.


 


“Definitive
Security” means a Security other than a Global Security or a temporary Security.


 


“Depositary”
means, with respect to Securities of any series issuable in whole or in part in the form of one or more Global Securities, a clearing
agency registered under the Exchange Act that is designated to act as Depositary for such Securities as contemplated by Section 301,
until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter shall
mean or include each Person which is then a Depositary hereunder, and if at any time there is more than one such Person, shall
be a collective reference to such Persons.


 


“Dollar”
or “$” means the coin or currency of the United States of America as at the time of payment is legal tender
for the payment of public and private debts.


 


“Event of
Default” has the meaning specified in Section 501.


 




    	 	3	 



     


    

 


“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, and any statute successor thereto.


 


“Fiscal Year”
means, with respect to the Company, each 12-month period beginning on January 1 and ending on December 31; provided,
however, that, with respect to a series of Securities, the first fiscal year will begin on the date such series of Securities
is authenticated and delivered under this Indenture. The Company will notify the Trustee if its fiscal year changes.


 


“Global Security”
means a Security in global form that evidences all or part of the Securities of any series and is registered in the name of the
Depositary for such Securities or a nominee thereof.


 


“Holder”
means a Person in whose name a Security is registered in the Security Register.


 


“Indenture”
means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument,
and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern this
instrument and any such supplemental indenture, respectively. The term “Indenture” also shall include the terms of
particular series of Securities established as contemplated by Section 301.


 


“Interest”,
when used with respect to an Original Issue Discount Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.


 


“Interest
Payment Date”, when used with respect to any Security, means the Stated Maturity of an installment of interest on such
Security.


 


“Maturity”,
when used with respect to any Security, means the date on which the principal of such Security or an installment of principal becomes
due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption
or otherwise.


 


“Notice of
Default” means a written notice of the kind specified in Section 501(3).


 


“Officers’
Certificate” of a Person means a certificate signed by any two of the Chairman of the Board, the Vice Chairman, the President
or a Vice President of the Person, or if such Person is a partnership, of its general partner, and delivered to the Trustee. One
of the officers or such other Persons (as applicable) signing an Officers’ Certificate given pursuant to Section 1004
shall be the principal executive, financial or accounting officer of the Person, or if such Person is a partnership, of its general
partner.


 


“Opinion of
Counsel” means a written opinion of legal counsel, who may be an employee of or counsel for the Company, which opinion
shall comply with the provisions of Sections 102 and 103. Such counsel shall be acceptable to the Trustee, whose acceptance
shall not be unreasonably withheld.


 




    	 	4	 



     


    

 


“Original
Issue Discount Security” means any Security which provides for an amount less than the stated principal amount thereof
to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 502.


 


“Outstanding”,
when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:


 


(i)          Securities
theretofore canceled by the Trustee or delivered to the Trustee for cancellation;


 


(ii)         Securities
for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent
(other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying
Agent) for the Holders of such Securities; provided, however, that, if such Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision therefor has been made;


 


(iii)        Securities
which have been paid pursuant to Section 306 or in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to
the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; and


 


(iv)        Securities,
except to the extent provided in Sections 1302 and 1303, with respect to which the Company has effected defeasance or covenant
defeasance as provided in Article XIII;


 


provided, however,
that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, (A) the principal amount of an Original Issue Discount
Security that shall be deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable as of
the date of such determination upon acceleration of the Maturity thereof on such date pursuant to Section 502, (B) the
principal amount of a Security denominated in one or more currencies or currency units other than U.S. dollars shall be the U.S.
dollar equivalent of such currencies or currency units, determined in the manner provided as contemplated by Section 301 on
the date of original issuance of such Security, of the principal amount (or, in the case of an Original Issue Discount Security,
the U.S. dollar equivalent (as so determined) on the date of original issuance of such Security, of the amount determined as provided
in Clause (A) above) of such Security, and (C) Securities owned by the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which the Trustee knows to be so owned shall be so disregarded. Securities so owned as described
in Clause (C) above which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the
Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor.


 




    	 	5	 



     


    

 


“Paying Agent”
means any Person authorized by the Company to pay the principal of or any premium or interest on any Securities on behalf of the
Company.


 


“Periodic
Offering” means an offering of Securities of a series from time to time, the specific terms of which Securities, including,
without limitation, the rate or rates of interest or formula for determining the rate or rates of interest thereon, if any, the
Stated Maturity or Stated Maturities thereof, the original issue date or dates thereof, the redemption provisions, if any, with
respect thereto, and any other terms specified as contemplated by Section 301 with respect thereto, are to be determined by
the Company upon the issuance of such Securities.


 


“Person”
means any individual, corporation, partnership, joint venture, trust, unincorporated organization or government or any agency or
political subdivision thereof.


 


“Place of
Payment”, when used with respect to the Securities of any series, means, unless otherwise specifically provided for with
respect to such series as contemplated by Section 301, the office or agency of the Company in                     
and such other place or places where, subject to the provisions of Section 1002, the principal of and any premium and interest
on the Securities of that series are payable as specified as contemplated by Section 301.


 


“Predecessor
Security” of any particular Security means every previous Security evidencing all or a portion of the same Debt as that
evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under
Section 306 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same Debt as the mutilated, destroyed, lost or stolen Security.


 


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


 


“Redemption
Price”, when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant
to this Indenture.


 


“Regular Record
Date” for the interest payable on any Interest Payment Date on the Securities of any series means the date specified
for that purpose as contemplated by Section 301.


 


“Securities”
has the meaning stated in the first recital of this Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.


 


“Security
Register” and “Security Registrar” have the respective meanings specified in Section 305.


 


“Special Record
Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 307.


 


“Stated Maturity”,
when used with respect to the principal of any Security or any installment of principal thereof or interest thereon, means the
date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest
is due and payable.


 




    	 	6	 



     


    

 


“Subsidiary”
means, with respect to any Person, any entity of which more than 50% of the total voting power of the equity interests entitled,
without regard to the occurrence of any contingency, to vote in the election of directors, managers or trustees thereof; or any
partnership of which more than 50% of the partners’ equity interests, considering all partners’ equity interests as
a single class, is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or combination thereof.


 


“Trust Indenture
Act” means the Trust Indenture Act of 1939 as in force at the date as of which this instrument was executed, except as
otherwise provided in Section 905; provided, however, that if the Trust Indenture Act of 1939 is amended after such
date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as
so amended.


 


“Trustee”
means the Person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include
each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as used
with respect to the Securities of any series shall mean each Trustee with respect to Securities of that series.


 


“U.S. Government
Obligations” means securities which are (i) direct obligations of the United States for the payment of which its
full faith and credit is pledged, or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality
of the United States, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States,
each of which are not callable or redeemable at the option of the issuer thereof.


 


“Vice President”,
when used with respect to the Company, means any vice president of the Company, or when used with respect to the Trustee, means
any vice president of the Trustee.


 


Section 102.        Compliance
Certificates and Opinions


 


Upon any application
or request by the Company to the Trustee to take or refrain from taking any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee 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 an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent have been complied with. Each such certificate or opinion
shall be given in the form of an Officers’ Certificate, if to be given by officers of the Company, or an Opinion of Counsel,
if to be given by counsel, and shall comply with the requirements of the Trust Indenture Act and any other requirements set forth
in this Indenture.


 


Every Officers’
Certificate or Opinion of Counsel (except for certificates provided for in Section 1004) shall include:


 


(1)         a
statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein
relating thereto;


 




    	 	7	 



     


    

 


(2)         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;


 


(3)         a
statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such covenant or condition has been complied with; and


 


(4)         a
statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.


 


Section 103.        Form
of Documents Delivered to Trustee


 


In any case where several
matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other
matters, and any such Person may certify or give an opinion as to such matters in one or several documents.


 


Any certificate or
opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any such
certificate or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company, stating that the information with respect to such factual matters is
in the possession of the Company, unless such counsel knows that the certificate or opinion or representations with respect to
such matters are erroneous.


 


Where any Person is
required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments
under this Indenture, they may, but need not, be consolidated and form one instrument.


 


Section 104.        Acts
of Holders; Record Dates


 


Any request, demand,
authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed (either physically
or by means of a facsimile or an electronic transmission, provided that such electronic transmission is transmitted through
the facilities of a Depositary) by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments are delivered (either physically or
by means of a facsimile or an electronic transmission, provided that such electronic transmission is transmitted through
the facilities of a Depositary) to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders
signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Indenture and (subject to Section 315 of the Trust Indenture Act) conclusive in favor of
the Trustee and the Company, if made in the manner provided in this Section.


 




    	 	8	 



     


    

 


Without limiting the
generality of the foregoing, a Holder, including a Depositary that is a Holder of a Global Security, may make, give or take, by
a proxy or proxies, duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other
action provided in this Indenture to be made, given or taken by Holders, and a Depositary that is a Holder of a Global Security
may provide its proxy or proxies to the beneficial owners of interests in any such Global Security.


 


The fact and date of
the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or
by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a signer acting in a capacity
other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The
fact and date of the execution of any such instrument or writing or the authority of the Person executing the same, may also be
proved in any other manner which the Trustee deems sufficient.


 


The ownership, principal
amount and serial numbers of Securities held by any Person, and the date of commencement of such Person’s holding the same,
shall be proved by the Security Register.


 


Any request, demand,
authorization, direction, notice, consent, waiver or other action of the Holder of any Security shall bind every future Holder
of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor
or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance thereon,
whether or not notation of such action is made upon such Security.


 


Without limiting the
foregoing, a Holder entitled hereunder to give or take any action hereunder with regard to any particular Security may do so with
regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which may do
so pursuant to such appointment with regard to all or any different part of such principal amount.


 


The Company may set
any day as the record date for the purpose of determining the Holders of Outstanding Securities of any series entitled to give
or take any request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture
to be given or taken by Holders of Securities of such series, but the Company shall have no obligation to do so. With regard to
any record date set pursuant to this paragraph, the Holders of Outstanding Securities of the relevant series on such record date
(or their duly appointed agents), and only such Persons, shall be entitled to give or take the relevant action, whether or not
such Holders remain Holders after such record date.


 




    	 	9	 



     


    

 


Section 105.        Notices,
Etc., to Trustee and the Company


 


Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with,


 


(1)         the
Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made in writing and actually received
by the Trustee at its office at [                             ],
or at any other address previously furnished in writing by the Trustee, or


 


(2)         the
Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to the Company, addressed to it at 19 Presidential Way, Woburn, Massachusetts
01801, to the attention of the Corporate Secretary, or at any other address previously furnished in writing to the Trustee by the
Company.


 


Section 106.        Notice
to Holders; Waiver


 


Where this Indenture
provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid (if international mail, by air mail), to each Holder affected by such event,
at his address as it appears in the Security Register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure
to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders. Any notice mailed to a Holder in the manner herein prescribed shall be conclusively deemed to have
been received by such Holder, whether or not such Holder actually receives such notice.


 


Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.


 


In case of the suspension
of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification
as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.


 


Section 107.        Conflict
with Trust Indenture Act


 


If any provision hereof
limits, qualifies or conflicts with a provision of the Trust Indenture Act that is required under such Act to be a part of and
govern this Indenture, the latter provision shall control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture
as so modified or excluded, as the case may be.


 




    	 	10	 



     


    

 


Section 108.        Effect
of Headings and Table of Contents


 


The Article and Section
headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.


 


Section 109.        Successors
and Assigns


 


All covenants and agreements
in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not.


 


Section 110.        Separability
Clause


 


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 111.        Benefits
of Indenture 


 


Nothing in this Indenture
or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder,
the holders of Senior Debt and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture.


 


Section 112.        Governing
Law


 


This Indenture and
the Securities shall be governed by and construed in accordance with the law of the state of New York.


 


Section 113.        Legal
Holidays


 


In any case where any
Interest Payment Date, Redemption Date or Stated Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or of the Securities (other than a provision of the Securities of any
series which specifically states that such provision shall apply in lieu of this Section)) payment of interest or principal (and
premium, if any) need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, provided that no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date
or Stated Maturity, as the case may be.


 


Section 114.        Language
of Notices, Etc.


 


Any request, demand,
authorization, direction, notice, consent, waiver or Act required or permitted under this Indenture shall be in the English language,
except that any published notice may be in an official language of the country of publication.


 




    	 	11	 



     


    

 


Section 115.        Interest
Limitation


 


It is the intention
of the Company to conform strictly to all applicable usury laws and any subsequent revisions, repeals or judicial interpretations
thereof. Accordingly, if the transactions contemplated hereby would be usurious under any applicable law then, in that event, notwithstanding
anything to the contrary in the Securities or this Indenture, it is agreed as follows: (i) the aggregate of all consideration
which constitutes interest under applicable law with respect to a Security shall under no circumstances exceed the maximum amount
allowed by applicable law, and any excess shall be credited to the principal amount of such Security (or, if the principal amount
of such Security shall have been paid in full, refunded to the Company), to the extent permitted by applicable law; and (ii) in
the event that the maturity of any Security is accelerated or in the event of any redemption of such Security, then such consideration
that constitutes interest under applicable law may never include more than the maximum amount allowed by applicable law, and any
excess shall be credited to the principal amount of such Security (or, if the principal amount of such Security shall be paid in
full, refunded to the Company), to the extent permitted by applicable law. All calculations made to compute the rate of interest
with respect to a Security for the purpose of determining whether such rate exceeds the maximum amount allowed by applicable law
shall be made, to the extent permitted by such applicable law, by allocating and spreading during the period of the full stated
term of such Security all interest any time contracted for, taken, reserved, charged or received by such Holder or by the Trustee
on behalf of any such Holder in connection therewith so that the amount or rate of interest charged for any and all periods of
time during the term of the Security does not exceed the maximum amount or rate of interest allowed to be charged by law during
the relevant period of time. Notwithstanding any of the foregoing, if at any time applicable laws shall be changed so as to permit
a higher rate or amount of interest to be charged than that permitted prior to such change, then unless prohibited by law, references
in this Indenture or any Security to “applicable law” when used in the context of determining the maximum interest
or rate of interest that can be charged shall be deemed to refer to such applicable law as so amended to allow the greater amount
or rate of interest.


 


The right to accelerate
maturity of any Security does not include the right to accelerate any interest which has not otherwise accrued to the date of such
acceleration, provided, however, that the foregoing shall not prohibit the continuing accrual after acceleration of interest in
accordance with the terms of the Indenture and such Security.


 


Section 116.        No
Personal Liability of Officers, Directors, Employees or Shareholders


 


Obligations of the
Company under this Indenture and the Securities hereunder are payable only out of cash flow and assets of the Company. The Trustee,
and each Holder of a Security by its acceptance thereof, will be deemed to have agreed in this Indenture that no director, officer,
employee, or shareholder, as such, of the Company, the Trustee, or any Affiliate of any of the foregoing entities shall have any
personal liability in respect of the obligations of the Company under this Indenture or such Securities by reason of his, her or
its status. The agreements set forth in this Section are part of the consideration for the issuance of the Securities.


 




    	 	12	 



     


    

 


Section 117.        Applicability
of Depositary


 


Notwithstanding any
other provision of this Indenture, so long as a series of Securities is a Global Security, the parties hereto will be bound at
all times by the applicable procedures of the Depositary with respect to such series.


 


ARTICLE
II 



SECURITY FORMS


 


Section 201.        Forms
Generally


 


The Securities of each
series shall be in substantially the form set forth in this Article, or in such other form as shall be established by or pursuant
to a Board Resolution or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other
marks of identification and such legends or endorsements placed thereon as may be required to comply with applicable laws or the
rules of any securities exchange or automated quotation system on which the Securities of such series may be listed or traded or
of any Depositary therefor or as may, consistently herewith, be determined by the officers executing such Securities, as evidenced
by their execution of the Securities. If the form of Securities of any series is established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by an authorized officer or other authorized Person
on behalf of the Company and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 303
for the authentication and delivery of such Securities. Any form of Security approved by or pursuant to a Board Resolution must
be acceptable as to form by the Trustee, such acceptance to be evidenced by the Trustee’s authentication of Securities in
that form.


 


The Definitive Securities
shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined
by the officers executing such Securities, as evidenced by their execution of such Securities.


 


Section 202.        Form
of Face of Security


 


[Insert any legend
required by the United States Internal Revenue Code and the regulations thereunder.]


 


[If a Global Security,
insert legend required by Section 204 of the Indenture]


 


[If applicable, insert—UNLESS
THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]


 




    	 	13	 



     


    

 


ARQULE, INC.


 


[TITLE OF SECURITY]


 


	NO.	U.S.$
	 	 
	[CUSIP No.    ]	 


 


ARQULE, INC., a Delaware
corporation (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to                     ,
or registered assigns, the principal sum of                     
United States Dollars [state other currency] on                     
[if the Security is to bear interest prior to Maturity, insert—, and to pay interest thereon from                     ,
or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on                     
and                     
in each year, commencing                     ,
at the rate of                     %
per annum, until the principal hereof is paid or made available for payment [if applicable, insert—, and at the rate of                     %
per annum on any overdue principal and premium and on any overdue installment of interest]. [If applicable, insert — The
amount of interest payable for any period shall be computed on the basis of twelve 30-day months and a 360-day year. The amount
of interest payable for any partial period shall be computed on the basis of a 360-day year of twelve 30-day months and the days
elapsed in any partial month. In the event that any date on which interest is payable on this Security is not a Business Day, then
a payment of the interest payable on such date will be made on the next succeeding day which is a Business Day (and without any
interest or other payment in respect of any such delay) with the same force and effect as if made on the date the payment was originally
payable. A “Business Day” shall mean, when used with respect to any Place of Payment, each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which banking institutions in that Place of Payment are authorized or obligated by law,
executive order or regulation to close.] The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on the Regular Record Date for such interest, which shall be the                     
or                     
(whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid
to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to Holders of
Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Securities
of this series may be listed or traded, and upon such notice as may be required by such exchange or automated quotation system,
all as more fully provided in such Indenture].


 




    	 	14	 



     


    

 


[If the Security is
not to bear interest prior to Maturity, insert—The principal of this Security shall not bear interest except in the case
of a default in payment of principal upon acceleration, upon redemption or at Stated Maturity and in such case the overdue principal
of this Security shall bear interest at the rate of                     %
per annum, which shall accrue from the date of such default in payment to the date payment of such principal has been made or duly
provided for. Interest on any overdue principal shall be payable on demand. Any such interest on any overdue principal that is
not so paid on demand shall bear interest at the rate of                     %
per annum, which shall accrue from the date of such demand for payment to the date payment of such interest has been made or duly
provided for, and such interest shall also be payable on demand.]


 


[If a Global Security,
insert—Payment of the principal of [(and premium, if any)] and [if applicable, insert—any such] interest on this Security
will be made by transfer of immediately available funds to a bank account in                     
designated by the Holder in such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts [state other currency].]


 


[If a Definitive Security,
insert—Payment of the principal of [(and premium, if any)] and [if applicable, insert—any such] interest on this Security
will be made at the office or agency of the Company maintained for that purpose in            
         , [in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts] [state other currency] [or subject to any laws or regulations
applicable thereto and to the right of the Company (as provided in the Indenture) to rescind the designation of any such Paying
Agent, at the [main] offices of                      
in                      
and                      
in                      ,
or at such other offices or agencies as the Company may designate, by [United States Dollar] [state other currency] check drawn
on, or transfer to a [United States Dollar] account maintained by the payee with, a bank in                
      (so long as the applicable Paying Agent has received proper transfer instructions in writing
at least                      
days prior to the payment date)] [if applicable, insert—; provided, however, that payment of interest may be made
at the option of the Company by [United States Dollar] [state other currency] check mailed to the addresses of the Persons entitled
thereto as such addresses shall appear in the Security Register] [or by transfer to a [United States Dollar] [state other currency]
account maintained by the payee with a bank in                    
  [state other Place of Payment] (so long as the applicable Paying Agent has received proper transfer instructions in
writing by the Record Date prior to the applicable Interest Payment Date)].]


 


Reference is hereby
made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.


 


Unless the certificate
of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.


 




    	 	15	 



     


    

 


IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed.


 


Dated:                    


 


	 	ARQULE, INC.
	 	 
	 	By:	 
	 	 
	 	Name:
	 	 
	 	Title:


 


Section 203.        Form
of Reverse of Security


 


This Security is one
of a duly authorized issue of securities of the Company (the “Securities”), issued and to be issued in one or more
series under an Indenture dated as of                     ,
20__ (the “Indenture”), between the Company and [TRUSTEE], as Trustee (the “Trustee”, which term includes
any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Company,
the Trustee, the Holders of the Senior Debt and the Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. As provided in the Indenture, the Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest, if any,
at different rates, may be subject to different redemption provisions, if any, may be subject to different sinking, purchase or
analogous funds, if any, may be subject to different covenants and Events of Default and may otherwise vary as in the Indenture
provided or permitted. This Security is one of the series designated on the face hereof [if applicable, insert—, limited
in aggregate principal amount to U.S.$                     ].


 


[If applicable, insert—The
Securities of this series are subject to redemption upon not less than 30 nor more than 60 days’ notice by mail, [if
applicable, insert—(1) on in any year commencing with the year                     
and ending with the year                     
through operation of the sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)]
at any time [if applicable, insert—on or after                     ],
as a whole or in part, at the election of the Company, at the following Redemption Prices (expressed as percentages of the principal
amount): If redeemed [if applicable, insert—on or before                     ,
___%, and if redeemed] during the 12-month period beginning                     
of the years indicated,


 




    	 	16	 



     


    

 


 


	Year	 	Redemption Price for

Redemption Through

Operation of the Sinking

Fund	 	Redemption Price for

Redemption Otherwise

Than Through Operation

of the Sinking Fund
	 	 	 	 	 



 


and thereafter at a Redemption Price equal to      % of the principal amount,
together in the case of any such redemption [if applicable, insert—(whether through operation of the sinking fund or otherwise)]
with accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of business
on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture.]


 


[If applicable, insert—The
Securities of this series are subject to redemption upon not less than 30 nor more than 60 days’ notice by mail, (1) on
                    
in any year commencing with the year                     
and ending with the year                     
through operation of the sinking fund for this series at the Redemption Prices for redemption through operation of the sinking
fund (expressed as percentages of the principal amount) set forth in the table below, and (2) at any time [if applicable,
insert—on or after                     ],
as a whole or in part, at the election of the Company, at the Redemption Prices for redemption otherwise than through operation
of the sinking fund (expressed as percentages of the principal amount) set forth in the table below: If redeemed during the 12-month
period beginning                     
of the years indicated,


 


	Year	 	Redemption Price for

Redemption Through

Operation

of the Sinking Fund	 	Redemption Price for

Redemption

Otherwise Than Through

Operation of

the Sinking Fund
	 	 	 	 	 


 


and thereafter at a Redemption
Price equal to      % of the principal amount, together in the case of any such redemption (whether
through operation of the sinking fund or otherwise) with accrued interest to the Redemption Date, but interest installments whose
Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face hereof, all as provided in
the Indenture.]


 


[If applicable, insert—The
sinking fund for this series provides for the redemption on                     
in each year beginning with the year                     
and ending with the year                     
of [if applicable,—not less than $                    
(“mandatory sinking fund”) and not more than] $                    
aggregate principal amount of Securities of this series. Securities of this series acquired or redeemed by the Company otherwise
than through [if applicable,—mandatory] sinking fund payments may be credited against subsequent [if applicable,—mandatory]
sinking fund payments otherwise required to be made [if applicable,—in the inverse order in which they become due].]


 




    	 	17	 



     


    

 


[If the Security is
subject to redemption in part of any kind, insert—In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof
upon the cancellation hereof.]


 


[If applicable, insert—The
Securities of this series are not redeemable prior to Stated Maturity.]


 


[If the Security is
not an Original Issue Discount Security, insert—If an Event of Default with respect to Securities of this series shall occur
and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.]


 


[If the Security is
an Original Issue Discount Security, insert—If an Event of Default with respect to Securities of this series shall occur
and be continuing, an amount of principal of the Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture. Such amount shall be equal to—insert formula for determining the amount. Upon payment
(1) of the amount of principal so declared due and payable, and (2) of interest on any overdue principal and overdue
interest, all of the Company’s obligations in respect of the payment of the principal of and interest, if any, on the Securities
of this series shall terminate.]


 


The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of not less than the Holders of a majority in aggregate principal amount of the Outstanding Securities
of all series to be affected (voting as one class). The Indenture also contains provisions permitting the Holders of a majority
in aggregate principal amount of the Outstanding Securities of all affected series (voting as one class), on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture. The Indenture permits,
with certain exceptions as therein provided, the Holders of a majority in principal amount of Securities of any series then Outstanding
to waive past defaults under the Indenture with respect to such series and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Security.


 




    	 	18	 



     


    

 


As provided in and
subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder
shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this
series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have
made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of
this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding,
for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or [any premium or] interest hereon on or
after the respective due dates expressed herein.


 


No reference herein
to the Indenture and no provision of this Security or of the Indenture shall, without the consent of the Holder, alter or impair
the obligation of the Company, which is absolute and unconditional, to pay the principal of and [any premium and] interest on this
Security at the times, place(s) and rate, and in the coin or currency, herein prescribed, except for Section 115 of the Indenture
(which limits interest to the maximum amount permissible by law), the provisions of which are incorporated herein by reference.


 


[If a Global Security,
insert—This Global Security or portion hereof may not be exchanged for Definitive Securities of this series except in the
limited circumstances provided in the Indenture.


 


The holders of beneficial
interests in this Global Security will not be entitled to receive physical delivery of Definitive Securities except as described
in the Indenture and will not be considered the Holders thereof for any purpose under the Indenture.]


 


[If a Definitive Security,
insert—As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is
registerable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of
the Company in [if applicable, insert — any place where the principal of and any premium and interest on this Security
are payable] [if applicable, insert—                     
[, or, subject to any laws or regulations applicable thereto and to the right of the Company (limited as provided in the Indenture)
to rescind the designation of any such transfer agent, at the [main] offices of                     
in                     
and in                     
or at such other offices or agencies as the Company may designate]], duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated transferee or transferees.]


 


The Securities of this
series are issuable only in registered form without coupons in denominations of U.S.$ [state other currency] and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable
for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as
requested by the Holder surrendering the same.


 


No service charge shall
be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.


 




    	 	19	 



     


    

 


Prior to due presentment
of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security is overdue,
and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.


 


This Security is subordinated
in right of payment to Senior Debt, to the extent provided in the Indenture.


 


Obligations of the
Company under the Indenture and the Securities thereunder, including this Security, are payable only out of cash flow and assets
of the Company. The Trustee, and each Holder of a Security by its acceptance hereof, will be deemed to have agreed in the Indenture
that no director, officer, employee, or shareholder, as such, of the Company, the Trustee, or any Affiliate of any of the foregoing
entities shall have any personal liability in respect of the obligations of the Company under the Indenture or such Securities
by reason of his, her or its status.


 


The Indenture contains
provisions that relieve the Company from the obligation to comply with certain restrictive covenants in the Indenture and for satisfaction
and discharge at any time of the entire indebtedness upon compliance by the Company with certain conditions set forth in the Indenture.


 


This Security shall
be governed by and construed in accordance with the laws of the state of New York.


 


All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.


 


[If a Definitive Security,
insert as a separate page—


 


FOR VALUE RECEIVED,
the undersigned hereby sell(s), assign(s) and transfer(s) unto                                         
(Please Print or Typewrite Name and Address of Assignee) the within instrument of ARQULE, INC., and does hereby irrevocably constitute
and appoint                                         
Attorney to transfer said instrument on the books of the within-named Company, with full power of substitution in the premises.


 


Please Insert Social Security or

Other Identifying Number of Assignee:


 


	Dated:	 	 	 	(Signature)
	 	 	 	 	 


 


Signature Guarantee:


 




    	 	20	 



     


    

 


(Participant in a Recognized Signature

Guaranty Medallion Program)


 


NOTICE: The signature
to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without
alteration or enlargement or any change whatever.]


 


Section 204.        Global
Securities


 


Every Global Security
authenticated and delivered hereunder shall bear a legend in substantially the following form:


 


THIS SECURITY IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF,
ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE. EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR
IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.


 


If Securities of a
series are issuable in whole or in part in the form of one or more Global Securities, as contemplated by Section 301, then,
notwithstanding Clause (9) of Section 301 and the provisions of Section 302, any Global Security shall represent
such of the Outstanding Securities of such series as shall be specified therein and may provide that it shall represent the aggregate
amount of Outstanding Securities from time to time endorsed thereon and that the aggregate amount of Outstanding Securities represented
thereby may from time to time be reduced or increased, as the case may be, to reflect exchanges. Any endorsement of a Global Security
to reflect the amount, or any reduction or increase in the amount, of Outstanding Securities represented thereby shall be made
in such manner and upon instructions given by such Person or Persons as shall be specified therein or in a Company Order. Subject
to the provisions of Sections 303, 304 and 305, the Trustee shall deliver and redeliver any Global Security in the manner
and upon instructions given by the Person or Persons specified therein or in the applicable Company Order. Any instructions by
the Company with respect to endorsement or delivery or redelivery of a Global Security shall be in a Company Order (which need
not comply with Section 102 and need not be accompanied by an Opinion of Counsel).


 


The provisions of the
last sentence of Section 303 shall apply to any Security represented by a Global Security if such Security was never issued
and sold by the Company and the Company delivers to the Trustee the Global Security together with a Company Order (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel) with regard to the reduction or increase, as
the case may be, in the principal amount of Securities represented thereby, together with the written statement contemplated by
the last sentence of Section 303.


 




    	 	21	 



     


    

 


Section 205.        Form
of Trustee’s Certificate and Authorization


 


The Trustee’s
certificates of authentication shall be in substantially the following form:


 


This is one of the
Securities of the series designated therein referred to in the within-mentioned Indenture.


 


	 	[TRUSTEE]
	 	As Trustee
	 	 
	 	By:	 
	 	 	Authorized Signatory


 


ARTICLE
III 



THE SECURITIES


 


Section 301.        Amount
Unlimited; Issuable in Series


 


The aggregate principal
amount of Securities which may be authenticated and delivered under this Indenture is unlimited.


 


The Securities may
be issued in one or more series. There shall be established in or pursuant to a Board Resolution (and, subject to Section 303,
to the extent established pursuant to rather than set forth in a Board Resolution, in an Officers’ Certificate or Company
Order setting forth, or determining the manner of, such establishment) or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series,


 


(1)         the
form and title of the Securities of the series (which shall distinguish the Securities of the series from Securities of any other
series);


 


(2)         any
limit upon the aggregate principal amount of the Securities of the series which may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities
of the series pursuant to Section 304, 305, 306, 906 or 1107 and except for any Securities which, pursuant to Section 303,
are deemed never to have been authenticated and delivered hereunder);


 


(3)         the
Person to whom any interest on a 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;


 




    	 	22	 



     


    

 


(4)         the
date or dates on which the Securities will be issued and on which the principal of, and premium, if any, on the Securities of the
series is payable or the method of determination thereof;


 


(5)         the
rate or rates (which may be fixed or variable) at which the Securities of the series shall bear interest, if any, or the method
of determination thereof, the date or dates from which such interest shall accrue, or the method of determination thereof, the
Interest Payment Dates on which any such interest shall be payable and the Regular Record Date for any interest payable on any
Interest Payment Date;


 


(6)         the
place or places where, subject to the provisions of Section 1002, the principal of and any premium and interest on Securities
of the series shall be payable, Securities of the series may be surrendered for registration of transfer, Securities of the series
may be surrendered for exchange and notices, and demands to or upon the Company in respect of the Securities of the series and
this Indenture may be served;


 


(7)         the
period or periods, if any, within which, the price or prices at which and the terms and conditions upon which Securities of the
series may be redeemed, in whole or in part, at the option of the Company or otherwise, if the Company is to have that option;


 


(8)         the
obligation, if any, and the option, if any, of the Company to redeem, purchase or repay Securities of the series pursuant to any
sinking fund or analogous provisions or upon the happening of a specified event or at the option of a Holder thereof and the period
or periods within which, the price or prices at which and the terms and conditions upon which Securities of the series shall be
redeemed, purchased or repaid, in whole or in part, pursuant to such obligation;


 


(9)         if
other than denominations of $1,000 and any integral multiple thereof, the denominations in which Securities of the series shall
be issuable;


 


(10)        whether
payment of principal of and premium, if any, and interest, if any, on the Securities of the series shall be without deduction for
taxes, assessments or governmental charges paid by Holders of the series;


 


(11)        the
currency, currencies or currency units in which payment of the principal of and any premium and interest on any Securities of the
series shall be denominated, payable, redeemable or purchasable if other than the currency of the United States of America and
the manner of determining the equivalent thereof in the currency of the United States of America for purposes of the definition
of “Outstanding” in Section 101;


 


(12)        if
the amount of payments of principal of or any premium or interest on any Securities of the series may be determined with reference
to an index, the manner in which such amounts shall be determined;


 


(13)        if
the principal of or any premium or interest on any Securities of the series is to be payable, at the election of the Company or
a Holder thereof, in one or more currencies or currency units other than that or those in which the Securities are stated to be
payable, the currency, currencies or currency units in which payment of the principal of and any premium and interest on Securities
of such series as to which such election is made shall be payable, and the periods within which and the terms and conditions upon
which such election is to be made;


 




    	 	23	 



     


    

 


(14)        the
right, if any, of the Company to defer payments of interest by extending the interest payment periods and specify the duration
of such extension, the Interest Payment Dates on which such interest shall be payable and whether and under what circumstances
additional interest on amounts deferred shall be payable;


 


(15)        if
other than the principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable
upon declaration of acceleration of the Maturity thereof pursuant to Section 502 or provable in bankruptcy pursuant to Section 504
or the method of determination thereof;


 


(16)        if
and as applicable, that the Securities of the series shall be issuable in whole or in part in the form of one or more Global Securities
(and whether in temporary or permanent global form) and, in such case, the Depositary or Depositaries for such Global Security
or Global Securities and any circumstances other than those set forth in Section 305 in which any such Global Security may
be transferred to, and registered and exchanged for Securities registered in the name of, a Person other than the Depositary for
such Global Security or a nominee thereof and in which any such transfer may be registered;


 


(17)        any
deletions from, modifications of or additions to the Events of Default set forth in Section 501 or the covenants of the Company
set forth in Article X pertaining to the Securities of the series;


 


(18)        if
and the terms and conditions upon which any Securities of the series may be converted into or exchanged for securities, which may
include, without limitation, capital stock, of any class or series of the Company or any other issuer;


 


(19)        if
the amount of payments of principal of or any premium or interest on any Securities of the series may be determined with reference
to an index, including, but not limited to an index based on a currency or currencies other than that in which the Securities of
that series are payable, or any other type of index, the manner in which such amounts shall be determined;


 


(20)        if
other than as provided in Sections 1302 and 1303, the terms and conditions upon which and the manner in which such series
of Securities may be defeased or discharged;


 


(21)        if
other than the Trustee, the identity of any other trustee, the Security Registrar and any Paying Agent;


 


(22)        any
restrictions or other provisions with respect to the transfer or exchange of the Securities; and


 


(23)        any
other terms of the Securities of the series (which terms shall not be inconsistent with the provisions of this Indenture, except
as permitted by Section 901(3)).


 




    	 	24	 



     


    

 


All Securities of any
one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to
the Board Resolution or Officers’ Certificate referred to above or in any such indenture supplemental hereto.


 


Any such Board Resolution
or Officers’ Certificate referred to above with respect to Securities of any series filed with the Trustee on or before the
initial issuance of the Securities of such series shall be incorporated herein by reference with respect to Securities of such
series and shall thereafter be deemed to be a part of the Indenture for all purposes relating to Securities of such series as fully
as if such Board Resolution or Officers’ Certificate were set forth herein in full.


 


All Securities of any
one series need not be issued at the same time and, unless otherwise provided, a series may be reopened, without the consent of
the Holders, for increases in the aggregate principal amount of such series of Securities and issuances of additional Securities
of such series or for the establishment of additional terms with respect to the Securities of such series.


 


If any of the terms
of the series are established by action taken by or pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by an authorized officer or other authorized person of the Company and delivered to the Trustee at or prior
to the delivery of the Officers’ Certificate setting forth, or providing the manner for determining, the terms of the series.


 


With respect to Securities
of a series subject to a Periodic Offering, such Board Resolution or Officers’ Certificate may provide general terms for
Securities of such series and provide either that the specific terms of particular Securities of such series shall be specified
in a Company Order, or that such terms shall be determined by the Company, or one or more of the Company’s agents designated
in an Officers’ Certificate, in accordance with a Company Order.


 


Section 302.        Denominations


 


The Securities of each
series shall be issuable only in registered form without coupons in such denominations as shall be specified as contemplated by
Section 301. In the absence of any such specified denomination with respect to the Securities of any series, the Securities
of such series shall be issuable in denominations of $1,000 and any integral multiple thereof.


 


Section 303.        Execution,
Authentication, Delivery and Dating


 


The Securities shall
be executed on behalf of the Company by the Chairman of the Board, Vice Chairman, Chief Executive Officer, Chief Financial Officer,
President or any Vice President of the Company and need not be attested. The signature of any of these officers on the Securities
may be manual or facsimile.


 


Securities bearing
the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery
of such Securities or did not hold such offices at the date of such Securities.


 




    	 	25	 



     


    

 


At any time and from
time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities,
and the Trustee in accordance with the Company Order shall authenticate and deliver such Securities; provided, however,
that in the case of Securities offered in a Periodic Offering, the Trustee shall authenticate and deliver such Securities from
time to time in accordance with such other procedures (including, without limitation, the receipt by the Trustee of oral or electronic
instructions from the Company or its duly authorized agents, thereafter promptly confirmed in writing) acceptable to the Trustee
as may be specified by or pursuant to a Company Order delivered to the Trustee prior to the time of the first authentication of
Securities of such series. If the form or terms of the Securities of the series have been established in or pursuant to one or
more Board Resolutions as permitted by Sections 201 and 301, in authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, in addition to
any Officers’ Certificate and Opinion of Counsel required to be furnished to the Trustee pursuant to Section 102, and
(subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating,


 


(1)         the
form and terms (or the manner of determining the terms) of such Securities have been established by or pursuant to Board Resolution
as permitted by Section 201, that such form or forms have been established in conformity with the provisions of this Indenture;


 


(2)         if
the terms of such Securities have been, or in the case of Securities of a series offered in a Periodic Offering, will be, established
by or pursuant to a Board Resolution as permitted by Section 301, that such terms have been, or in the case of Securities
of a series offered in a Periodic Offering, will be, established in conformity with the provisions of this Indenture, subject,
in the case of Securities of a series offered in a Periodic Offering, to any conditions specified in such Opinion of Counsel (which
conditions are reasonably acceptable to the Trustee);


 


(3)         that
such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, which conditions are reasonably acceptable to the Trustee, will constitute valid and legally
binding obligations of the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general
equity principles and entitled to the benefits of this Indenture, equally and ratably with all other Securities, if any, of such
series Outstanding; and


 


(4)         such
other matters as the Trustee may reasonably request;


 


and, if the authentication
and delivery relates to a new series of Securities created by an indenture supplemental hereto, also stating that all conditions
precedent to the execution of the supplemental indenture with respect to that series of Securities have been complied with, the
Company has the power to execute and deliver any such supplemental indenture and has taken all necessary action for those purposes
and any such supplemental indenture has been executed and delivered and constitutes the legal, valid and binding obligation of
the Company enforceable in accordance with its terms (subject, as to enforcement of remedies, to applicable bankruptcy, reorganization,
insolvency, fraudulent conveyance, moratorium or other laws and legal principles affecting creditors’ rights generally from
time to time in effect and to general equitable principles, whether applied in an action at law or in equity).


 




    	 	26	 



     


    

 


If such form or forms
or terms have been so established, the Trustee shall not be required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture
or otherwise in a manner which is not reasonably acceptable to the Trustee.


 


Notwithstanding the
provisions of Section 301 and of the preceding paragraph, if all Securities of a series are not to be originally issued at
one time, it shall not be necessary to deliver the Officers’ Certificate otherwise required pursuant to Section 301
or the Company Order and Opinion of Counsel or Board Resolution or supplemental indenture otherwise required pursuant to such preceding
paragraph at or prior to the time of authentication of each Security of such series if such documents are delivered at or prior
to the authentication upon original issuance of the first Security of such series to be issued.


 


With respect to Securities
of a series not to be originally issued at one time, the Trustee may rely upon the Opinion of Counsel and the other documents delivered
pursuant to Sections 201 and 301 and this Section, as applicable, in connection with the first authentication of Securities
of such series and any subsequent request by the Company to the Trustee to authenticate Securities of such series upon original
issuance shall constitute a representation and warranty by the Company that as of the date of such request, the statements made
in the Officers’ Certificate shall be true and correct as if made on such date.


 


Each Security shall
be dated the date of its authentication.


 


No Security shall be
entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature of an authorized
signatory, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the foregoing, if
any Security shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section 309 for all purposes of this Indenture, such
Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of
this Indenture.


 


Section 304.        Temporary
Securities


 


Pending the preparation
of Definitive Securities of any series, the Company may execute, and upon receipt of the documents required by Section 303,
together with a Company Order, the Trustee shall authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the Definitive Securities
of like series in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced by their execution of such Securities.


 




    	 	27	 



     


    

 


If temporary Securities
of any series are issued, the Company will cause Definitive Securities of that series to be prepared without unreasonable delay.
After the preparation of Definitive Securities of such series, the temporary Securities of such series shall be exchangeable for
Definitive Securities of such series upon surrender of the temporary Securities of such series at the office or agency of the Company
maintained pursuant to Section 1002 for the purpose of exchanges of Securities of such series, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Securities of any series the Company shall execute and the Trustee
shall authenticate and deliver in exchange therefor one or more Definitive Securities of the same series, of any authorized denominations
and of a like aggregate principal amount and tenor. Until so exchanged the temporary Securities of any series shall in all respects
be entitled to the same benefits under this Indenture as Definitive Securities of such series and tenor.


 


Section 305.        Registration,
Registration of Transfer and Exchange


 


The Company shall cause
to be kept at the Corporate Trust Office of the Trustee a register (the register maintained in such office or in any other office
or agency of the Company in a Place of Payment being herein sometimes referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Securities and of
transfers of Securities. The Company shall, prior to the issuance of any Securities hereunder, appoint the Trustee as the initial
“Security Registrar” for the purpose of registering Securities and transfers of Securities as herein provided. The
Company may at any time replace such Security Registrar, change such office or agency or act as its own Security Registrar. The
Company will give prompt written notice to the Trustee of any change of the Security Registrar or of the location of such office
or agency. At all reasonable times the Security Register shall be available for inspection by the Trustee.


 


Upon surrender for
registration of transfer of any Security of any series at the office or agency of the Company maintained pursuant to Section 1002
for such purpose, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and tenor.


 


At the option of the
Holder, Securities of any series (except a Global Security) may be exchanged for other Securities of the same series, of any authorized
denominations and of a like aggregate principal amount and tenor, upon surrender of the Securities to be exchanged at such office
or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate
and deliver, the Securities which the Holder making the exchange is entitled to receive.


 


All Securities issued
upon any registration of transfer or exchange of Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer
or exchange.


 




    	 	28	 



     


    

 


Every Security presented
or surrendered for registration of transfer or for exchange shall (if so required by the Company or the Trustee) be duly endorsed,
or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed,
by the Holder thereof or his attorney duly authorized in writing.


 


No service charge shall
be made for any registration of transfer or exchange of Securities, 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 any registration of transfer or exchange of Securities,
other than exchanges pursuant to Section 304 or 1107 not involving any transfer.


 


Neither the Trustee nor
the Company shall be required (1) to issue, register the transfer of or exchange Securities of any series (or of any series
and specified tenor, as the case may be) during a period beginning at the opening of business 15 days before the day of mailing
of a notice of redemption of Securities of that series selected for redemption under Section 1103 and ending at the close
of business on the day of such mailing, or (2) to register the transfer of or exchange any Security so selected for redemption
in whole or in part, except the unredeemed portion of any Security being redeemed in part.


 


Notwithstanding any other
provision in this Indenture and except as otherwise specified as contemplated by Section 301, no Global Security may be transferred
to, or registered or exchanged for Securities registered in the name of, any Person other than the Depositary for such Global Security
or any nominee thereof, and no such transfer may be registered, except as provided in this paragraph. Every Security authenticated
and delivered upon registration or transfer of, or in exchange for or in lieu of, a Global Security shall be a Global Security,
except as provided in this paragraph. If (1) (A) the Depositary for a Global Security notifies the Company that it is unwilling
or unable to continue as Depositary for such Global Security or ceases to be a clearing agency registered under the Exchange Act,
and (B) a successor Depositary is not appointed by the Company within 90 days, (2) an Event of Default has occurred
and is continuing with respect to the Securities of such series and the Security Registrar has received a request from the Depositary
to issue certificated securities in lieu of all or a portion of the Global Securities of such series (in which case the Company
shall deliver certificated securities within 30 days of such request) or (3) the Company determines in its sole discretion
that Securities of a series issued in global form shall no longer be represented by a Global Security, then such Global Security
may be exchanged by such Depositary for Definitive Securities of the same series, of any authorized denomination and of a like
aggregate principal amount and tenor, registered in the names of, and the transfer of such Global Security or portion thereof may
be registered to, such Persons as such Depositary shall direct.


 


Section 306.        Mutilated,
Destroyed, Lost and Stolen Securities


 


If any mutilated Security
is surrendered to the Trustee, together with such security or indemnity as may be required by the Company or the Trustee to save
each of them and any agent of either of them harmless, the Company shall execute and upon its request the Trustee shall authenticate
and deliver in exchange therefor a new Security of the same series and of like tenor and principal amount and bearing a number
not contemporaneously Outstanding.


 




    	 	29	 



     


    

 


If there shall be delivered
to the Company and the Trustee (1) evidence to their satisfaction of the destruction, loss or theft of any Security and (2) such
security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence
of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute
and upon its request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new
Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously Outstanding. If,
after the delivery of such new Security, a bona fide purchaser of the original Security in lieu of which such new Security was
issued presents for payment or registration such original Security, the Trustee shall be entitled to recover such new Security
from the party to whom it was delivered or any party taking therefrom, except a bona fide purchaser, and shall be entitled to recover
upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Company and
the Trustee in connection therewith.


 


In case any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead
of issuing a new Security, pay such Security.


 


Upon the issuance of any
new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith. Every new Security of any series issued pursuant to this Section in exchange for any mutilated Security or in lieu of
any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or
not the mutilated, destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all other Securities of that series duly issued hereunder.


 


The provisions of this
Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.


 


Section 307.        Payment
of Interest; Interest Rights Preserved


 


Except as otherwise provided
as contemplated by Section 301 with respect to any series of Securities, interest on any Security which is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be paid to 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.


 


Any interest on any Security
of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been
such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in Clause (1) or
(2) below:


 




    	 	30	 



     


    

 


(1)         The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Security of such series and the date of the proposed payment, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this Clause provided.
Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the
Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Securities of such series at his address as it
appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to
the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close
of business on such Special Record Date and shall no longer be payable pursuant to the following Clause (2).


 


(2)         The
Company may make payment of any Defaulted Interest on the Securities of any series in any other lawful manner not inconsistent
with the requirements of any securities exchange or automated quotation system on which such Securities may be listed or traded,
and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed
payment pursuant to this Clause, such manner of payment shall be deemed practicable by the Trustee.


 


Subject to the foregoing
provisions of this Section and Section 305, each Security delivered under this Indenture upon registration of transfer of
or in exchange for or in lieu of any other Security, shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other Security.


 


For each series of Securities,
the Company shall, prior to 10:30 a.m. (                    
time) on each payment date for principal and premium, if any, and interest, if any, deposit with the Trustee money in immediately
available funds sufficient to make cash payments due on the applicable payment date.


 


Section 308.        Persons
Deemed Owners


 


Except as otherwise provided
as contemplated by Section 301 with respect to any series of Securities, prior to due presentment of a Security for registration
of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Security
is registered as the owner of such Security for the purpose of receiving payment of principal of and any premium and (subject to
Sections 305 and 307) any interest on such Security and for all other purposes whatsoever, whether or not such Security is
overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.


 




    	 	31	 



     


    

 


No holder of any beneficial
interest in any Global Security held on its behalf by a Depositary shall have any rights under this Indenture with respect to such
Global Security, and such Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as
the owner of such Global Security for all purposes whatsoever. None of the Company, the Trustee nor any agent of the Company or
the Trustee will have any responsibility or liability for any aspect of the records relating to or payments made on account of
beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial
ownership interests.


 


Section 309.        Cancellation


 


All Securities surrendered
for payment, redemption, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee and shall be promptly canceled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the Trustee)
for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities
so delivered shall be promptly canceled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities canceled as provided in this Section, except as expressly permitted by this Indenture. All canceled Securities held
by the Trustee shall be disposed of in accordance with its customary procedures, and the Trustee shall thereafter, from time to
time upon written request, deliver to the Company a certificate with respect to such disposition.


 


Section 310.        Computation
of Interest


 


Except as otherwise specified
as contemplated by Section 301 for Securities of any series, interest on the Securities of each series shall be computed on
the basis of a 360-day year of twelve 30-day months and interest on the Securities of each series for any partial period shall
be computed on the basis of a 360-day year of twelve 30-day months and the number of days elapsed in any partial month.


 


Section 311.        CUSIP
Numbers


 


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


 




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ARTICLE IV


 


SATISFACTION AND DISCHARGE


 


Section 401.        Satisfaction
and Discharge of Indenture


 


This Indenture shall upon
Company Request cease to be of further effect with respect to Securities of any series (except as to any surviving rights of registration
of transfer or exchange of such 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 with respect to such Securities, when


 


(1)         either


 


(A)         all
such Securities theretofore authenticated and delivered (other than (i) such Securities which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section 306, and (ii) such Securities for whose payment money
has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 1003) have been delivered to the Trustee for cancellation; or


 


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


 


(i)          have
become due and payable,


 


(ii)         will
become due and payable at their Stated Maturity within one year, or


 


(iii)        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,


 


and the Company in the case
of (i), (ii) or (iii) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust
for this purpose an amount of money in the currency or currency units in which such Securities are payable sufficient to pay and
discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and
any premium and interest to the date of such deposit (in the case of Securities which have become due and payable) or to the Stated
Maturity or Redemption Date, as the case may be;


 


(2)         the
Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to such Securities; and


 


(3)         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 with respect to such Securities have
been complied with.


 




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Notwithstanding the satisfaction
and discharge of this Indenture with respect to Securities of any series, (i) the obligations of the Company to the Trustee
under Section 607, the obligations of the Trustee to any Authenticating Agent under Section 614 and the right of the
Trustee to resign under Section 610 shall survive, and (ii) if money shall have been deposited with the Trustee pursuant
to subclause (B) of Clause (1) of this Section, the obligations of the Company and/or the Trustee under Sections 402,
606, 701 and 1002 and the last paragraph of Section 1003 shall survive.


 


Section 402.        Application
of Trust Money


 


Subject to the provisions
of the last paragraph of Section 1003, all money deposited with the Trustee pursuant to Section 401 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 any premium and interest for whose payment such money has been deposited with the Trustee.


 


ARTICLE
V 



REMEDIES


 


Section 501.        Events
of Default


 


“Event of Default”,
wherever used herein with respect to Securities of any series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental body):


 


(1)         default
in the payment of any interest upon any Security of that series when it becomes due and payable, and continuance of such default
for a period of 30 days (whether or not such payment is prohibited by the provisions of Article XIV hereof); or


 


(2)         default
in the payment of the principal of (or premium, if any, on) any Security of that series at its Maturity (whether or not such payment
is prohibited by the provisions of Article XIV hereof); or


 


(3)         default
in the performance, or breach, of any term, covenant or warranty of the Company in this Indenture (other than a term, covenant
or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with or which has expressly
been included in this Indenture solely for the benefit of series of Securities other than that series), and continuance of such
default or breach for a period of 90 days after there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by Holders of at least 25% in principal amount of the Outstanding Securities of that
series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder; or


 




    	 	34	 



     


    

 


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


 


(5)         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, (B) appoints a Custodian of the Company or for all or substantially all of its property, or (C) orders
the liquidation of the Company; and the order or decree remains unstayed and in effect for 90 days; or


 


(6)         any
other Event of Default provided as contemplated by Section 301 with respect to Securities of that series.


 


Section 502.        Acceleration
of Maturity; Rescission and Annulment


 


If an Event of Default
with respect to Securities of any series at the time Outstanding occurs and is continuing, then in every such case the Trustee
or Holders of not less than 25% in principal amount of the Outstanding Securities of that series may declare the principal amount
of (or, if any of the Securities of that series are Original Issue Discount Securities, such portion of the principal amount of
such Securities as may be specified in the terms thereof) all of the Securities of that series to be due and payable immediately,
by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount
(or specified amount) shall become immediately due and payable.


 


At any time after such
a declaration of acceleration with respect to Securities of any series has been made and before a judgment or decree for payment
of the money due has been obtained by the Trustee as hereinafter in this Article provided, Holders of a majority in principal amount
of the Outstanding Securities of that series, by written notice to the Company and the Trustee, may rescind and annul such declaration
and its consequences if


 


(1)         the
Company has paid or deposited with the Trustee a sum sufficient to pay


 


(A)         all
overdue interest on all Securities of that series,


 


(B)         the
principal of (and premium, if any, on) any Securities of that series which have become due otherwise than by such declaration of
acceleration and any interest thereon at the rate or rates prescribed therefor in such Securities,


 


(C)         to
the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in
such Securities, and


 


(D)         all
sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel;


 


and


 




    	 	35	 



     


    

 


(2)         all
Events of Default with respect to Securities of that series, other than the non-payment of the principal of Securities of that
series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 513.


 


No such rescission shall
affect any subsequent Default or impair any right consequent thereon.


 


Section 503.        Collection
of Indebtedness and Suits for Enforcement by Trustee


 


The Company covenants that
if


 


(1)         default
is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for
a period of 30 days (whether or not such payment is prohibited by the provisions of Article XIV hereof), or


 


(2)         default
is made in the payment of the principal of (or premium, if any, on) any Security at the Maturity thereof (whether or not such payment
is prohibited by the provisions of Article XIV hereof),


 


the Company will, upon demand
of the Trustee, pay to it, for the benefit of Holders of such Securities, the whole amount then due and payable on such Securities
for principal and any premium and interest and, to the extent that payment of such interest shall be legally enforceable, interest
on any overdue principal and premium and on any overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.


 


If the Company fails to
pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company, or any other obligor upon such Securities and collect the moneys adjudged or decreed to be
payable in the manner provided by law out of the property of the Company, or any other obligor upon such Securities, wherever situated.


 


If an Event of Default
with respect to Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.


 


Section 504.        Trustee
May File Proofs of Claim


 


In case of any judicial
proceeding relative to the Company, or any other obligor upon the Securities, their property or their creditors, the Trustee shall
be entitled and empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized under the Trust
Indenture Act in order to have claims of Holders and the Trustee allowed in any such proceeding. In particular, the Trustee shall
be authorized to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the
same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding
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 Holders, to pay to the Trustee any amount due 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 607.


 




    	 	36	 



     


    

 


No provision of this Indenture
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; provided, however, that the Trustee may, on behalf
of Holders, vote for the election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other
similar committee.


 


Section 505.       Trustee
May Enforce Claims Without Possession of Securities


 


All rights of action and
claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall
be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment
of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable
benefit of Holders of the Securities in respect of which such judgment has been recovered.


 


Section 506.       Application
of Money Collected


 


Any money or property collected
or to be applied by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of such money or property on account of principal or any premium or interest, upon
presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully
paid:


 


FIRST: To the payment of
all amounts due the Trustee under Section 607;


 


SECOND: Subject to Article XIV,
to the payment of the amounts then due and unpaid for principal of and any premium and interest on the Securities in respect of
which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according
to the amounts due and payable on such Securities for principal and any premium and interest, respectively; and


 


THIRD: The balance, if
any, to the Company.


 


Section 507.        Limitation
on Suits


 


No Holder of any Security
of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture or a Security,
or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless


 




    	 	37	 



     


    

 


(1)         such
Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that
series;


 


(2)         Holders
of not less than 25% in principal amount of the Outstanding Securities of that series shall have made written request to the Trustee
to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;


 


(3)         such
Holder or Holders have offered and, if requested, provided to the Trustee reasonable security or indemnity against the costs, expenses
and liabilities to be incurred in compliance with such request;


 


(4)         the
Trustee for 60 days after its receipt of such notice, request and offer and, if requested, provision of security or indemnity
has failed to institute any such proceeding; and


 


(5)         no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by Holders of a majority
in principal amount of the Outstanding Securities of that series;


 


it being understood and intended
that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority
or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided
and for the equal and ratable benefit of all of such Holders.


 


Section 508.       Unconditional
Right of Holders to Receive Principal, Premium and Interest 


 


Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment
of the principal of and any premium and (subject to Sections 305 and 307) interest on such Security on the respective Stated
Maturity expressed in such Security (or, in the case of redemption, on the Redemption Date) and to institute suit for the enforcement
of any such payment, and such rights shall not be impaired without the consent of such Holder.


 


Section 509.        Restoration
of Rights and Remedies


 


If the Trustee or any Holder
has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then in every such case, subject to
any determination in such proceeding, the Company, the Trustee and Holders shall be restored severally and respectively to their
former positions hereunder, and thereafter all rights and remedies of the Trustee and Holders shall continue as though no such
proceeding had been instituted.


 


Section 510.        Rights
and Remedies Cumulative


 


Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 306,
no right or remedy herein conferred upon or reserved to the Trustee or to Holders is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right
or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.


 




    	 	38	 



     


    

 


Section 511.        Delay
or Omission Not Waiver


 


No delay or omission of
the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy
given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.


 


Section 512.        Control
by Holders


 


Subject to the
provisions of Section 603, Holders of a majority in aggregate principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred on the Trustee, with respect to the Securities of such series; provided, however,
that


 


(1)         such
direction shall not be in conflict with any rule of law or with this Indenture;


 


(2)         the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction; and


 


(3)         subject
to the provisions of Section 601, the Trustee shall have the right to decline to follow any such direction if the Trustee
in good faith shall determine that the proceeding so directed would involve the Trustee in personal liability or would otherwise
be contrary to applicable law.


 


Section 513.        Waiver
of Past Defaults


 


Holders of a majority in
aggregate principal amount of the Outstanding Securities of any series may on behalf of Holders of all the Securities of such series
waive any past default hereunder with respect to such series and its consequences, except


 


(1)         a
continuing default in the payment of the principal of or any premium or interest on any Security of such series, or


 


(2)         a
default in respect of a covenant or provision hereof which under Article IX cannot be modified or amended without the consent
of the Holder of each Outstanding Security of such series affected.


 




    	 	39	 



     


    

 


Upon any such waiver, such
default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture, but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.


 


Section 514.        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, suffered or omitted by it
as Trustee, a court may require any party litigant in such suit to file an undertaking to pay the costs of such suit, and may assess
costs against any such party litigant, in the manner and to the extent provided in the Trust Indenture Act; provided, however,
that neither this Section nor the Trust Indenture Act shall be deemed to authorize any court to require such an undertaking or
to make such an assessment in any suit instituted by the Trustee, in any suit instituted by any Holder, or group of Holders, holding
in the aggregate more than 10% in principal amount of the Outstanding Securities of any series to which the suit relates, or in
any suit instituted by any Holder for the enforcement of the payment of the principal of (or premium, if any) or interest on any
Security on or after the respective Stated Maturity expressed by such Security (or, in the case of redemption or repayment, on
or after the Redemption Date).


 


ARTICLE
VI 



THE TRUSTEE


 


Section 601.        Certain
Duties and Responsibilities


 


(a)          Except
during the continuance of an Event of Default with respect to any series of Securities,


 


(1)         the
Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture with respect to
the Securities of such series, and no implied covenants or obligations shall read into this Indenture against the Trustee; and


 


(2)         in
the absence of bad faith on its part, the Trustee may, with respect to Securities of such series, 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
conforming to the requirements of this Indenture; but 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 be under a duty to examine the same to determine whether
or not they conform on their face to the requirements of this Indenture.


 


(b)          In
case an Event of Default with respect to any series of Securities has occurred and is continuing, the Trustee shall exercise with
respect to the Securities of such series such 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.


 


(c)          No
provisions of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that


 




    	 	40	 



     


    

 


(3)         this
Subsection shall not be construed to limit the effect of Subsection (a) of this Section;


 


(4)         the
Trustee shall not be liable for any error of judgment made in good faith by a responsible officer, unless it shall be proved that
the Trustee was negligent in ascertaining the pertinent facts;


 


(5)         the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders or a majority in principal amount of the Outstanding Securities of any series relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon
the Trustee, under this Indenture with respect to the Securities of such series; and


 


(6)         no
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured
to it.


 


(d)          Whether
or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section.


 


Section 602.        Notice
of Defaults


 


If a Default occurs and
is continuing with respect to the Securities of any series, the Trustee shall, within 90 days after it occurs, transmit, in
the manner and to the extent provided in Section 313(c) of the Trust Indenture Act, notice of all uncured or unwaived Defaults
known to it; provided, however, that, except in the case of a Default in payment on the Securities of any series, the Trustee
shall be protected in withholding the notice if and so long as the board of directors, the executive committee or a trust committee
of directors or responsible officers of the Trustee determine in good faith that withholding such notice is in the interests of
Holders of Securities of such series; provided, further, however, that, in the case of any default or breach of the character
specified in Section 501(3) with respect to the Securities of such series, no such notice to Holders shall be given until
at least 90 days after the occurrence thereof.


 


The Trustee shall not be
deemed to have notice or be charged with knowledge of any Default, except a Default under Sections 501(1) or 501(2) herein,
unless the Trustee shall have received from the Company or from any Holder written notice thereof at its Corporate Trust Office,
and such notice references the Securities in this Indenture. In the absence of any such notice, the Trustee may conclusively assume
that no such Default exists.


 


Section 603.        Certain
Rights of Trustee 


 


Subject to the provisions
of Section 601:


 




    	 	41	 



     


    

 


(1)         the
Trustee may rely on and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper
or document believed by it to be genuine and to have been signed or presented by the proper party or parties;


 


(2)         any
request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company
Order (or in the case of a Periodic Offering, as agreed in procedures set forth in a Company Order pursuant to Section 303)
and any resolution of the Board of Directors shall be sufficiently evidenced by a Board Resolution;


 


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


 


(4)         the
Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;


 


(5)         the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory
to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction;


 


(6)         the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may, without obligation to do so, make such further inquiry or
investigation into such facts or matters as it may see fit; and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney;


 


(7)         the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents
or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder; and


 


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


 


(9)         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 each agent, custodian and other
Person employed to act hereunder.


 




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Section 604.        Not
Responsible for Recitals or Issuance of Securities


 


The recitals contained
herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the
Company, and the Trustee or any Authenticating Agent assumes no responsibility for their correctness. Neither the Trustee nor any
Authenticating Agent makes any representations as to the validity or sufficiency of this Indenture or of the Securities. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of Securities or the proceeds
thereof.


 


Section 605.        May
Hold Securities


 


The Trustee, any Authenticating
Agent, any Paying Agent, any Security Registrar or any other agent of the Company, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent.


 


Section 606.        Money
Held in Trust


 


Money held by the Trustee
in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise agreed with the Company.


 


Section 607.        Compensation
and Reimbursement


 


The Company agrees:


 


(1)         to
pay to the Trustee from time to time such compensation for all services rendered by it hereunder as shall be mutually agreed upon
by the Company and the Trustee in writing (which compensation shall not be limited by any provision of law in regard to the compensation
of a trustee of an express trust);


 


(2)         to
reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of
its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith;
and


 


(3)         to
indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without gross negligence or
bad faith on its part, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance
of any of its powers or duties hereunder.


 


The obligations of the
Company under this Section to compensate the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances
shall constitute additional indebtedness hereunder.


 




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Without limiting any rights
available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an Event
of Default specified in Section 501(4) or Section 501(5), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for such services are intended to constitute expenses of administration under any applicable Bankruptcy
Law.


 


The provisions of this
Section shall survive the satisfaction and discharge of this Indenture and the defeasance of the Securities.


 


Section 608.        Disqualification;
Conflicting Interests


 


If the Trustee has or shall
acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest
or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.


 


Section 609.        Corporate
Trustee Required; Eligibility


 


There shall at all times
be one or more Trustees hereunder with respect to the Securities of each series, at least one of which shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus required by the Trust Indenture
Act. If such Person publishes reports of condition at least annually, pursuant to law or to the requirements of a supervising or
examining authority, then for the purposes of this Section, the combined capital and surplus of such Person shall be deemed to
be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.


 


Section 610.        Resignation
and Removal; Appointment of Successor


 


No resignation or removal
of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable requirements of Section 611.


 


The Trustee may resign
at any time with respect to the Securities of one or more series by giving written notice thereof to the Company. If the instrument
of acceptance by a successor Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days
after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such series.


 


The Trustee may be removed
at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series, delivered to the Trustee and to the Company. If an instrument of acceptance by a successor Trustee shall
not have been delivered to the Trustee within 30 days after the giving of such notice of removal, the removed Trustee may
petition any court of competent jurisdiction for the appointment of a successor Trustee.


 


If at any time:


 




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(1)         the
Trustee shall fail to comply with Section 608 after written request therefor by the Company or by any Holder who has been
a bona fide Holder of a Security for at least six months, or


 


(2)         the
Trustee shall cease to be eligible under Section 609 and shall fail to resign after written request therefor by the Company
or by any such Holder, or


 


(3)         the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property
shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation, then, in any such case, (A) the Company, acting pursuant to the authority
of a Board Resolution, may remove the Trustee with respect to all Securities, or (B) subject to Section 514, any Holder who
has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with respect to all Securities and the appointment
of a successor Trustee or Trustees.


 


If the Trustee shall resign,
be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect
to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable requirements of Section 611. If, within one year
after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of Holders of a majority in principal amount of the Outstanding Securities of such series
delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 611, become the successor Trustee with respect to the
Securities of such series and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee
with respect to the Securities of any series shall have been so appointed by the Company or Holders and accepted appointment in
the manner required by Section 611, any Holder who has been a bona fide Holder of a Security of such series for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment
of a successor Trustee with respect to the Securities of such series.


 


The Company shall give
notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of
a successor Trustee with respect to the Securities of any series to all Holders of Securities of such series in the manner provided
in Section 106. Each notice shall include the name of the successor Trustee with respect to the Securities of such series
and the address of its Corporate Trust Office.


 




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Section 611.        Acceptance
of Appointment by Successor


 


(1)         In
case of the appointment hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so appointed
shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the
request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver
an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder.


 


(2)         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 (A) 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, (B) if the retiring Trustee is not retiring with respect to all Securities, shall contain
such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue
to be vested in the retiring Trustee, and (C) shall add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees as co-trustees of the same trust and that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and 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, but, on request of the Company, or any successor Trustee,
such retiring Trustee shall, upon payment of its charges, duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment
of such successor Trustee relates.


 


(3)         Upon
request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph (1) or (2) of this
Section, as the case may be.


 


(4)         No
successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified
and eligible under this Article.


 




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Section 612.        Merger,
Conversion, Consolidation or Succession to Business


 


Any corporation into which
the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate
trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise
qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of
the parties hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.


 


Section 613.        Preferential
Collection of Claims Against the Company


 


If and when the Trustee
shall be or become a creditor of the Company, or any other obligor upon the Securities, the Trustee shall be subject to the provisions
of the Trust Indenture Act regarding the collection of claims against the Company or any such other obligor.


 


Section 614.        Appointment
of Authenticating Agent


 


The Trustee (upon notice
to the Company) may appoint an Authenticating Agent or Agents with respect to one or more series of Securities which shall be authorized
to act on behalf of the Trustee to authenticate Securities of such series issued upon original issue (in accordance with procedures
acceptable to the Trustee) and upon exchange, registration of transfer or partial redemption thereof or pursuant to Section 306,
and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes
as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery of
Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication
and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the
Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be a corporation
organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject
to supervision or examination by Federal or State authority. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section,
the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance
with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified
in this Section.


 


Any corporation into which
an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all of the corporate agency or corporate trust business of such Authenticating Agent, shall continue to be an Authenticating
Agent, provided such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or
any further act on the part of the Trustee or such Authenticating Agent.


 




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An Authenticating Agent
may resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable
to the Company. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.


 


Except with respect to
an Authenticating Agent appointed at the request of the Company, the Trustee agrees to pay to each Authenticating Agent from time
to time reasonable compensation for its services under this Section.


 


If an appointment with
respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed thereon, in addition
to the Trustee’s certificate of authentication, an alternative certificate of authentication in the following form:


 


This is one of the Securities
of the series designated therein referred to in the within-mentioned Indenture.


 


	 	 	 	[TRUSTEE]
	 	 	 	As Trustee
	 	 	 	 
	Date: 	    	 	By:	         
	 	 	 	 
	 	 	 	As Authenticating Agent
	 	 	 	 
	 	 	 	By:	 
	 	 	 	 
	 	 	 	Authorized Signatory


 


ARTICLE
VII 



HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND THE COMPANY


 


Section 701.        The
Company to Furnish Trustee Names and Addresses of Holders


 


The Company will furnish
or cause to be furnished to the Trustee


 




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(1)         semi-annually,
not later than each Interest Payment Date in each year, a list for each series of Securities, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders of Securities of such series as of the preceding Regular Record Date, and


 


(2)         at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request,
a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished;


 


provided, however,
that if and so long as the Trustee shall be the Security Registrar for Securities of a series, no such list need be furnished with
respect to such series of Securities.


 


Section 702.        Preservation
of Information; Communications to Holders


 


The Trustee shall comply
with the obligations imposed upon it pursuant to Section 312 of the Trust Indenture Act.


 


The rights of the Holders
to communicate with other Holders with respect to their rights under this Indenture or under the Securities, and the corresponding
rights and privileges of the Trustee, shall be as provided by the Trust Indenture Act.


 


Every Holder of Securities,
by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent
of either of them shall be held accountable by reason of any disclosure of information as to the names and addresses of Holders
made pursuant to the Trust Indenture Act.


 


Section 703.        Reports
by Trustee


 


As promptly as practicable
after each May 15 beginning with the May 15 following the date of this Indenture, and in any event prior to July 15
in each year, the Trustee shall mail to each Holder a brief report dated as of May 15 that complies with Trust Indenture Act
Section 313(a). The Trustee also shall comply with Trust Indenture Act Section 313(b). Prior to delivery to the Holders,
the Trustee shall deliver to the Company a copy of any report it delivers to Holders pursuant to this Section 703; provided,
however, that no recourse may be taken against the Trustee for its failure to deliver a copy of such report to the Company
prior to its delivery of the report to the Holders.


 


A copy of each such report
shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any Securities
are listed, with the Commission and with the Company. The Company will notify the Trustee when any Securities are listed on any
stock exchange.


 


Section 704.        Reports
by the Company


 


The Company shall file
with the Trustee and the Commission, and transmit to Holders, in accordance with rules and regulations prescribed from time to
time by the Commission, such information, documents and reports with respect to compliance by the Company with the conditions and
covenants of this Indenture as may be required from time to time by such rules and regulations.


 




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ARTICLE
VIII 



CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE


 


Section 801.        The
Company May Consolidate, Etc., Only on Certain Terms


 


The Company shall not consolidate
with or merge into any other Person or convey, transfer or lease its properties and assets substantially as an entirety to, any
Person, unless:


 


(1)         the
Person formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer,
or which leases, the properties and assets of the Company substantially as an entirety shall be a corporation, partnership or trust,
shall be organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia
and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to
the Trustee, the due and punctual payment of the principal of and any premium and interest on all the Securities and the performance
or observance of every other covenant of this Indenture on the part of the Company to be performed or observed;


 


(2)         immediately
after giving effect to such transaction and treating any indebtedness which becomes an obligation of the Company or a Subsidiary
as a result of such transaction as having been incurred by the Company or such Subsidiary at the time of such transaction, no Event
of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have happened and
be continuing;


 


(3)         if,
as a result of any such consolidation or merger or such conveyance, transfer or lease, properties or assets of the Company would
become subject to a mortgage, pledge, lien, security interest or other encumbrance which would not be permitted by this Indenture,
the Company or such successor Person, as the case may be, shall take such steps as shall be necessary effectively to secure the
Securities equally and ratably with (or prior to) all indebtedness secured thereby; and


 


(4)         the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance, transfer or lease and such supplemental indenture comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.


 


Section 802.        Successor
Substituted


 


Upon any consolidation
of the Company with, or merger of the Company into, any other Person or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety in accordance with Section 801, the successor Person formed by such consolidation
or into which the Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person
had been named as the Company herein and thereafter, except in the case of a lease, the predecessor Person shall be relieved of
all obligations and covenants under this Indenture and the Securities and coupons and may liquidate and dissolve.


 




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ARTICLE
IX 



SUPPLEMENTAL INDENTURES


 


Section 901.        Supplemental
Indentures Without Consent of Holders


 


Without the consent of
any Holders of Securities, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes:


 


(1)         to
evidence the succession of another Person to the Company under this Indenture and the Securities and the assumption by such successor
Person of the obligations of the Company hereunder;


 


(2)         to
add covenants and Events of Default for the benefit of the Holders of all or any series of such Securities or to surrender any
right or power conferred by this Indenture upon the Company or to make any change that does not adversely affect the legal rights
hereunder of any Holder in any material respect;


 


(3)         to
add to, change or eliminate any of the provisions of this Indenture, provided that any such addition, change or elimination
shall become effective only after there are no such Securities of any series entitled to the benefit of such provision outstanding;


 


(4)         to
establish the forms or terms of the Securities of any series issued hereunder;


 


(5)         to
cure any ambiguity or correct any defect or inconsistency in this Indenture;


 


(6)         to
evidence the acceptance of appointment by a successor Trustee with respect to one or more series of Securities or otherwise;


 


(7)         to
qualify this Indenture under the Trust Indenture Act;


 


(8)         to
provide for uncertificated securities in addition to certificated securities;


 


(9)         to
supplement any provisions of this Indenture necessary to permit or facilitate the defeasance and discharge of any series of Securities,
provided that such action does not adversely affect the interests of the Holders of Securities of such series or any other
series; and


 


(10)        to
comply with the rules or regulations of any securities exchange or automated quotation system on which any of the Securities may
be listed or traded.


 




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Section 902.        Supplemental
Indentures with Consent of Holders


 


With the consent of the
Holders of not less than a majority in aggregate principal amount of all Outstanding Securities affected by such supplemental indenture
(voting as one class), the Company and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose
of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture, or modifying in
any manner the rights of Holders of Securities of such series under this Indenture; provided that the Company and the Trustee
may not, without the consent of the Holder of each Outstanding Security affected thereby,


 


(1)         change
the Stated Maturity of the principal of, or any installment of principal of or interest, if any, on, any Security, or reduce the
principal amount thereof or premium, if any, on or the rate of interest thereon or adversely affect any right to convert or exchange
any Security into any other security, or alter the method of computation of interest;


 


(2)         reduce
the percentage in principal amount of Securities required for any such supplemental indenture or for any waiver provided for in
this Indenture;


 


(3)         change
the Company’s obligation to maintain an office or agency for payment of Securities and the other matters specified herein;


 


(4)         impair
the right to institute suit for the enforcement of any payment of principal of, premium, if any, or interest on, any Security;


 


(5)         modify
the provisions of this Indenture with respect to the subordination of any Security in a manner adverse to the Holder thereof; or


 


(6)         modify
any of the provisions of this Indenture relating to the execution of supplemental indentures with the consent of Holders of Securities
which are discussed in this Section or modify any provisions relating to the waiver by Holders of Securities of past defaults and
covenants, except to increase any required percentage or to provide that other provisions of this Indenture cannot be modified
or waived without the consent of the Holder of each Outstanding Security affected thereby.


 


A supplemental indenture
which changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the rights of 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.


 


It shall not be necessary
for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.


 




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Section 903.        Execution
of Supplemental Indentures


 


In executing, or accepting
the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected
in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture. The Trustee shall enter into any supplemental indenture which does not adversely
affect the Trustee’s own rights, duties or immunities under this Indenture or otherwise. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which adversely affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise.


 


Section 904.        Effect
of Supplemental Indentures


 


Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby.


 


Section 905.        Conformity
with Trust Indenture Act


 


Every supplemental indenture
executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect.


 


Section 906.        Reference
in Securities to Supplemental Indentures


 


Securities of any series
authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required
by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If
the Company shall so determine, new Securities of any series so modified as to conform, in the opinion of the Trustee and the Company,
to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in
exchange for Outstanding Securities of such series. Failure to make a notation or issue a new Security shall not affect the validity
and effect of any amendment, supplement or waiver.


 


ARTICLE
X 



COVENANTS


 


Section 1001.    Payment
of Principal, Premium and Interest 


 


The Company covenants and
agrees for the benefit of each series of Securities that it will duly and punctually pay the principal of and any premium and interest
on the Securities of that series in accordance with the terms of the Securities and this Indenture.


 


Section 1002.      Maintenance
of Office or Agency


 


The Company will maintain
in each Place of Payment for any series of Securities an office or agency where Securities of that series may be presented or surrendered
for payment, where Securities of that series may be surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities of that series and this Indenture may be served. The Company will give
prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. 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, and the
Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.


 




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The Company may also from
time to time designate one or more other offices or agencies where the Securities of one or more series 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 each Place of Payment
for Securities of any series for such purposes. The Company will 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.


 


Except as otherwise specified
with respect to a series of Securities as contemplated by Section 301, the Company hereby initially designates as the Place
of Payment for each series of Securities to be the Corporate Trust Office of the Trustee, and initially appoints the Trustee as
Paying Agent at its office at [                                  ],
as the Company’s office or agency for each such purpose in such city.


 


Section 1003.      Money
for Securities Payments to Be Held in Trust


 


If the Company or any of
its Subsidiaries shall at any time act as Paying Agent with respect to any series of Securities, it will, on or before each due
date of the principal of or any premium or interest on any of the Securities of that series, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal and any premium and interest so becoming due until
such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act.


 


Whenever the Company shall
have one or more Paying Agents for any series of Securities, it will, on or prior to each due date of the principal of or any premium
or interest on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be held
as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee
of its action or failure so to act.


 


The Company will cause
each Paying Agent for any series of Securities other than the Trustee to execute and deliver to the Trustee an instrument in which
such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will (1) hold
all sums held by it for the payment of the principal of (and premium, if any) or interest, if any, on Securities of that series
in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of
as herein provided; (2) give the Trustee notice of any default by the Company (or any other obligor upon the Securities of
that series) in the making of any payment of principal (and premium, if any) or interest, if any, on the Securities of that series;
and (3) during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee
all sums held in trust by such Paying Agent for payment in respect of the Securities of that series.


 




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The Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company
Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be
held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon
such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to
such money.


 


Any money deposited with
the Trustee or any Paying Agent in trust for the payment of the principal of or any premium or interest on any Security of any
series and remaining unclaimed for two years after such principal, premium or interest has become due and payable shall be paid
to the state which escheat laws control and the Trustee or any Paying Agent shall be discharged from such trust; and the Holder
of such Security shall thereafter, as an unsecured general creditor, look only to the state which escheat laws control for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required
to make any such payment, may at the expense of the Company cause to be published once, in an Authorized Newspaper, notice that
such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date
of such publication, any unclaimed balance of such money then remaining will be paid to the state whose escheat laws control.


 


Section 1004.       Statement
by Officers as to Default


 


The Company will deliver
to the Trustee, within 150 days after the end of each Fiscal Year of the Company ending after the date hereof, an Officers’
Certificate, stating whether or not to the best knowledge of the signer or signers thereof the Company is in default in the performance
and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement
of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and status thereof
of which they may have knowledge.


 


Section 1005.    Waiver
of Certain Covenants 


 


The Company may omit in
any particular instance to comply with any term, provision or condition set forth in Sections 1002 through 1004 with respect
to the Securities of any series if before the time for such compliance Holders of at least a majority in aggregate principal amount
of the Outstanding Securities of all affected series (voting as one class) shall, by Act of such Holders, either waive such compliance
in such instance or generally waive compliance with such term, provision or condition, but no such waiver shall extend to or affect
such term, provision or condition except to the extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such term, provision or condition shall remain in full
force and effect.


 


A waiver which changes
or eliminates any term, provision or condition 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 term, provision or condition, shall be deemed not to affect the rights under this Indenture of the Holders of Securities
of any other series.


 




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ARTICLE XI


 


REDEMPTION OF SECURITIES


 


Section 1101.       Applicability
of Article


 


Securities of any series
which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified
as contemplated by Section 301 for Securities of any series) in accordance with this Article.


 


Section 1102.      Election
to Redeem; Notice to Trustee


 


The election of the Company
to redeem any Securities shall be evidenced by a Board Resolution. In case of any redemption at the election of the Company of
less than all the Securities of any series, the Company shall, not less than 35 nor more than 60 days prior to the Redemption
Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption
Date, of the principal amount of Securities of such series to be redeemed and, if applicable, of the tenor of the Securities to
be redeemed. In the case of any redemption of Securities (1) prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, or (2) pursuant to an election of the Company which
is subject to a condition specified in the terms of such Securities, the Company shall furnish the Trustee with an Officers’
Certificate evidencing compliance with such restriction or condition.


 


Section 1103.      Selection
by Trustee of Securities to be Redeemed


 


If less than all the Securities
of any series are to be redeemed (unless all the Securities of such series and of a specified tenor are to be redeemed), the particular
Securities to be redeemed shall be selected not more than 35 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, on a pro rata basis or by any other method which the Trustee
deems fair and appropriate and which complies with any securities exchange or other applicable requirements for redemption of portions
(equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series.


 


The Trustee shall promptly
notify the Company in writing of the Securities selected for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed.


 


For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the
case of any Securities redeemed or to be redeemed only in part, to the portion of the principal amount of such Securities which
has been or is to be redeemed.


 




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Section 1104.       Notice
of Redemption


 


Notice of redemption shall
be given by first-class mail (if international mail, by air mail), postage prepaid, mailed not less than 30 nor more than 60 days
prior to the Redemption Date, to each Holder of Securities to be redeemed, at his address appearing in the Security Register.


 


All notices of redemption
shall state:


 


(1)         the
Redemption Date,


 


(2)         the
Redemption Price,


 


(3)         if
less than all the Outstanding Securities of any series and of a specified tenor are to be redeemed, the identification (and, in
the case of partial redemption of any Securities, the principal amounts) of the particular Securities to be redeemed,


 


(4)         that
on the Redemption Date the Redemption Price will become due and payable upon each such Security to be redeemed and that interest
thereon will cease to accrue on and after said date,


 


(5)         the
place or places where such Securities are to be surrendered for payment of the Redemption Price, and


 


(6)         that
the redemption is for a sinking fund, if such is the case.


 


Notice of redemption of
Securities to be redeemed shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company.


 


Section 1105.      Deposit
of Redemption Price


 


On or prior to 10:30 a.m.
(Eastern Daylight Savings time) on any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or,
if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money
sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest
on, all the Securities which are to be redeemed on that date.


 


Section 1106.      Securities
Payable on Redemption Date


 


Notice of redemption having
been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption
Price therein specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price
and accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security for redemption in accordance
with said notice, such Security shall be paid by the Company at the Redemption Price, together with accrued interest to the Redemption
Date; provided, however, that, unless otherwise specified as contemplated by Section 301, installments of interest
whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.


 




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If any Security called
for redemption shall not be so paid upon surrender thereof for redemption, the principal and any premium shall, until paid, bear
interest from the Redemption Date at the rate prescribed therefor in the Security.


 


Section 1107.      Securities
Redeemed in Part


 


Any Security which is to
be redeemed only in part shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security or Securities of the same series and of like tenor,
of any authorized denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered.


 


ARTICLE
XII 



SINKING FUNDS


 


Section 1201.      Applicability
of Article


 


The provisions of this
Article shall be applicable to any sinking fund for the retirement of Securities of a series except as otherwise specified as contemplated
by Section 301 for Securities of such series.


 


The minimum amount of any
sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking
fund payment,” and any payment in excess of such minimum amount provided for by the terms of Securities of any series is
herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any series,
the cash amount of any sinking fund payment may be subject to reduction as provided in Section 1202. Each sinking fund payment
shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series.


 


Section 1202.      Satisfaction
of Sinking Fund Payments with Securities


 


The Company (1) may
deliver Outstanding Securities of a series (other than any previously called for redemption), and (2) may apply as a credit
Securities of a series which have been redeemed either at the election of the Company pursuant to the terms of such Securities
or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant
to the terms of such Securities as provided for by the terms of such series; provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.


 




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Section 1203.      Redemption
of Securities for Sinking Fund


 


Not less than 45 days
prior to each sinking fund payment date for any series of Securities (unless a shorter period shall be satisfactory to the Trustee),
the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment
for that series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by payment of cash
and the portion thereof, if any, which is to be satisfied by delivering and crediting Securities of that series pursuant to Section 1202
and stating the basis for such credit and that such Securities have not been previously so credited, and will also deliver to the
Trustee any Securities to be so delivered. Not less than 30 days before each such sinking fund payment date the Trustee shall
select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 1104.
Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in
Sections 1106 and 1107.


 


ARTICLE
XIII 



DEFEASANCE


 


Section 1301.       Applicability
of Article


 


The provisions of this
Article shall be applicable to each series of Securities except as otherwise specified as contemplated by Section 301 for
Securities of such series.


 


Section 1302.      Legal
Defeasance


 


In addition to discharge
of the Indenture pursuant to Section 401, the Company shall be deemed to have paid and discharged the entire indebtedness
on all the Securities of such a series on the 91st day after the date of the deposit referred to in Clause (1) below, and
the provisions of this Indenture with respect to the Securities of such series shall no longer be in effect (except as to (i) rights
of registration of transfer and exchange of Securities of such series and the Company’s right of optional redemption, if
any, (ii) substitution of mutilated, destroyed, lost or stolen Securities, (iii) rights of Holders of Securities to receive
payments of principal thereof and interest thereon, upon the original stated due dates therefor or on the specified redemption
dates therefor (but not upon acceleration), and remaining rights of the holders to receive mandatory sinking fund payments, if
any, (iv) the rights, obligations, duties and immunities of the Trustee hereunder, and the Company’s obligations in
connection therewith (including, but not limited to, Section 607), (v) the rights, if any, to convert or exchange the
Securities of such series, (vi) the rights of Holders of Securities of such series as beneficiaries hereof with respect to the
property so deposited with the Trustee payable to all or any of them, and (vii) the obligations of the Company under Section 1002),
and the Trustee, at the expense of the Company, shall, upon a Company Request, execute proper instruments acknowledging the same,
if the conditions set forth below are satisfied (hereinafter, “defeasance”):


 




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(1)         The
Company has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust, for the purposes of making
the following payments, specifically pledged as security for, and dedicated solely to, the benefit of Holders of the Securities
of such series (A) cash in an amount, or (B) in the case of any series of Securities the payments on which may only be
made in legal coin or currency of the United States, U.S. Government Obligations, maturing as to principal and interest at such
times and in such amounts as will insure the availability of cash, or (C) a combination thereof, certified to be sufficient,
in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered
to the Trustee, to pay (i) the principal and interest and premium, if any, on all Securities of such series on each date that
such principal, interest or premium, if any, is due and payable or on any Redemption Date established pursuant to Clause (3) below,
and (ii) any mandatory sinking fund payments on the dates on which such payments are due and payable in accordance with the
terms of the Indenture and the Securities of such series;


 


(2)         The
Company has delivered to the Trustee an Opinion of Counsel based on the fact that (A) the Company has received from, or there has
been published by, the Internal Revenue Service a ruling, or (B) since the date hereof, there has been a change in the applicable
federal income tax law, in either case to the effect that, and such opinion shall confirm 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, 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;


 


(3)         If
the Securities are to be redeemed prior to Stated Maturity (other than from mandatory sinking fund payments or analogous payments),
notice of such redemption shall have been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee
shall have been made;


 


(4)         No
Event of Default or event which with notice or lapse of time or both would become an Event of Default shall have occurred and be
continuing on the date of such deposit;


 


(5)         Such
defeasance shall not cause the Trustee to have a conflicting interest within the meaning of the Trust Indenture Act (assuming all
Securities are in default within the meaning of such Act);


 


(6)         Such
defeasance shall not result in a breach or violation of, or constitute a default under, any other agreement or instrument to which
the Company is a party or by which it is bound;


 


(7)         Such
defeasance shall not result in the trust arising from such deposit constituting an investment company within the meaning of the
Investment Company Act of 1940, as amended, unless such trust shall be registered under such Act or exempt from registration thereunder;
and


 


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


 




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For this purpose, such
defeasance means that the Company and any other obligor upon the Securities of such series shall be deemed to have paid and discharged
the entire debt represented by the Securities of such series, which shall thereafter be deemed to be “Outstanding”
only for the purposes of Section 1304 and the rights and obligations referred to in Clauses (i) through (vii), inclusive,
of the first paragraph of this Section, and to have satisfied all its other obligations under the Securities of such series and
this Indenture insofar as the Securities of such series are concerned.


 


Section 1303.     
Covenant Defeasance


 


The Company and any other
obligor shall be released on the 91st day after the date of the deposit referred to in Clause (1) below from its obligations
under Sections 704 and 801 with respect to the Securities of any series on and after the date the conditions set forth below
are satisfied (hereinafter, “covenant defeasance”), and the Securities of such series shall thereafter be deemed
to be not “Outstanding” for the purposes of any request, demand, authorization, direction, notice, waiver, consent
or declaration or other action or Act of Holders (and the consequences of any thereof) in connection with such covenants, but shall
continue to be deemed Outstanding for all other purposes hereunder. For this purpose, such covenant defeasance means that, with
respect to the Securities of such series, the Company may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such Section, whether directly or indirectly by reason of any reference elsewhere herein
to such Section or by reason of any reference in such Section to any other provision herein or in any other document and such omission
to comply shall not constitute a Default or an Event of Default under Section 501, but, except as specified above, the remainder
of this Indenture and the Securities of such series shall be unaffected thereby. The following shall be the conditions to application
of this Section 1303:


 


(1)         The
Company has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose of making
the following payments, specifically pledged as security for, and dedicated solely to, the benefit of Holders of the Securities
of such series, (A) cash in an amount, or (B) in the case of any series of Securities the payments on which may only
be made in legal coin or currency of the United States, U.S. Government Obligations, maturing as to principal and interest at such
times and in such amounts as will insure the availability of cash, or (C) a combination thereof, sufficient, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay (i) the principal and interest and premium, if any, on all Securities of such series on each date that such
principal, interest or premium, if any, is due and payable or on any Redemption Date established pursuant to Clause (2) below,
and (ii) any mandatory sinking fund payments on the day on which such payments are due and payable in accordance with the
terms of the Indenture and the Securities of such series;


 


(2)         If
the Securities are to be redeemed prior to Stated Maturity (other than from mandatory sinking fund payments or analogous payments),
notice of such redemption shall have been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee
shall have been made;


 




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(3)         No
Event of Default or event which with notice or lapse of time or both would become an Event of Default shall have occurred and be
continuing on the date of such deposit;


 


(4)         The
Company has delivered to the Trustee an Opinion of Counsel which shall confirm 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 covenant defeasance and will
be subject to federal income tax on the same amount and in the same manner and at the same time as would have been the case if
such deposit and covenant defeasance had not occurred;


 


(5)         Such
covenant defeasance shall not cause the Trustee to have a conflicting interest within the meaning of the Trust Indenture Act (assuming
all Securities are in default within the meaning of such Act);


 


(6)         Such
covenant defeasance shall not result in a breach or violation of, or constitute a default under, any other agreement or instrument
to which the Company is a party or by which it is bound;


 


(7)         Such
covenant defeasance shall not result in the trust arising from such deposit constituting an investment company within the meaning
of the Investment Company Act of 1940, as amended, unless such trust shall be registered under such Act or exempt from registration
thereunder; and


 


(8)         The
Company has delivered to the Trustee an Officers’ Certificate and Opinion of Counsel stating that all conditions precedent
provided for relating to the covenant defeasance contemplated by this provision have been complied with.


 


Section 1304.       Application
by Trustee of Funds Deposited for Payment of Securities


 


Subject to the provisions
of the last paragraph of Section 1003, all moneys or U.S. Government Obligations deposited with the Trustee pursuant to Section 1302
or 1303 (and all funds earned on such moneys or U.S. Government Obligations) shall be held in trust and applied by it to the payment,
either directly or through any Paying Agent (including the Company acting as its own Paying Agent), to Holders of the particular
Securities of such series for the payment or redemption of which such moneys have been deposited with the Trustee, of all sums
due and to become due thereon for principal and interest; but such money need not be segregated from other funds except to the
extent required by law. Subject to Sections 1302 and 1303, the Trustee shall promptly pay to the Company upon Company Order
any moneys held by it at any time, which, in the opinion of a nationally recognized firm of independent public accountants expressed
in a written certification delivered to the Trustee, are in excess of the amounts required to effect the defeasance with respect
to the Outstanding Securities in question.


 


Section 1305.      Repayment
to the Company


 


The Trustee and any Paying
Agent promptly shall pay or return to the Company upon Company Request any money and U.S. Government Obligations held by them at
any time that are not required for the payment of the principal of and any interest on the Securities of any series for which money
or U.S. Government Obligations have been deposited pursuant to Section 1302 or 1303, which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification delivered to the Trustee, are in excess
of the amounts required to effect the defeasance with respect to the Outstanding Securities in question.


 




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The provisions of the last
paragraph of Section 1003 shall apply to any money held by the Trustee or any Paying Agent under this Article that remains
unclaimed for two years after the Maturity of any series of Securities for which money or U.S. Government Obligations have been
deposited pursuant to Section 1302 or 1303.


 


Section 1306.      Reinstatement


 


If the Trustee or the Paying
Agent is unable to apply any money or U. S. Government Obligations in accordance with this Article by reason of any legal proceeding
or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such
application, the obligations of the Company under this Indenture and the Securities of the applicable series shall be revived and
reinstated as though no deposit had occurred pursuant to this Indenture until such time as the Trustee or the Paying Agent is permitted
to apply all such money or U. S. Government Obligations in accordance with this Article; provided, however, that if the
Company has made any payment of principal of or interest on any Securities of such series because of the reinstatement of its obligations,
the Company shall be subrogated to the rights of Holders of such Securities to receive such payment from the money or U.S. Government
Obligations held by the Trustee or the Paying Agent.


 


ARTICLE
XIV 



SUBORDINATION OF SECURITIES


 


Section 1401.      Securities
Subordinated to Senior Debt


 


The payment by the Company
of the principal of, premium, if any, and interest, if any, on any series of Securities issued hereunder shall be subordinated
to the extent set forth in an indenture supplemental hereto relating to such Securities.


 


IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed in multiple counterparts, each of which so executed shall be deemed
to be an original, but all of which shall together constitute but one and the same instrument, all as of the day and year first
above written.


 




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	 	ARQULE, INC.
	 	 
	 	By:	 
	 	 
	 	Name:
	 	 
	 	Title:
	 	 
	 	TRUSTEE
	 	 
	 	By:	 
	 	 	 
	 	Name:
	 	 
	 	Title:


 








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