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                                                                       Exhibit 1

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                                RIGHTS AGREEMENT

                          DATED AS OF JANUARY 22, 2007,

                                 BY AND BETWEEN

                          DEL GLOBAL TECHNOLOGIES CORP.

                                       AND

                          MELLON INVESTOR SERVICES LLC,
                                 as Rights Agent

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                                TABLE OF CONTENTS

1.  Certain Definitions........................................................1

2.  Appointment of Rights Agent................................................6

3.  Issue of Right Certificates................................................6

4.  Form of Right Certificates.................................................8

5.  Countersignature and Registration..........................................8

6.  Transfer, Split Up, Combination and Exchange of Right Certificates;
    Mutilated, Destroyed, Lost or Stolen Right Certificates....................9

7.  Exercise of Rights; Purchase Price; Expiration Date of Rights.............10

8.  Cancellation and Destruction of Right Certificates........................11

9.  Company Covenants Concerning Securities and Rights........................11

10. Record Date...............................................................13

11. Adjustment of Purchase Price, Number and Kind of Securities or
    Number of Rights..........................................................13

12. Certificate of Adjusted Purchase Price or Number of Securities............21

13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power......21

14. Fractional Rights and Fractional Securities...............................24

15. Rights of Action..........................................................25

16. Agreement of Rights Holders...............................................25

17. Right Certificate Holder Not Deemed a Stockholder.........................26

18. Concerning the Rights Agent...............................................26

19. Merger or Consolidation or Change of Name of Rights Agent.................27

20. Rights and Duties of Rights Agent.........................................27

21. Change of Rights Agent....................................................30

22. Issuance of New Right Certificates........................................30

23. Redemption................................................................31

24. Exchange..................................................................31

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25. Notice of Certain Events..................................................32

26. Notices...................................................................33

27. Supplements and Amendments................................................34

28. Successors: Certain Covenants.............................................34

29. Benefits of This Agreement................................................34

30. Governing Law.............................................................35

31. Severability..............................................................35

32. Descriptive Headings, Etc.................................................35

33. Determinations and Actions by the Board...................................35

34. Counterparts..............................................................35

Exhibit A   A-1

Exhibit B   B-1

                                       ii

                                RIGHTS AGREEMENT

      This RIGHTS AGREEMENT, dated as of January 22, 2007 (this "AGREEMENT"), is
made and entered into by and between Del Global Technologies Corp., a New York
corporation (the "COMPANY"), and Mellon Investor Services LLC, a New Jersey
limited liability company, as Rights Agent (the "Rights Agent").

                                    RECITALS

      WHEREAS, on January 22, 2007, the Board of Directors of the Company
authorized and declared a dividend distribution of one right (a "RIGHT") for
each share of Common Stock, par value $0.10 per share, of the Company (a "COMMON
SHARE") outstanding as of the Close of Business (as hereinafter defined) on
February 2, 2007 (the "RECORD DATE"), each Right initially representing the
right to purchase one Common Share, on the terms and subject to the conditions
herein set forth, and further authorized and directed the issuance of one Right
(subject to adjustment as provided herein) with respect to each Common Share
issued or delivered by the Company (whether originally issued or delivered from
the Company's treasury) after the Record Date but prior to the earlier of the
Distribution Date (as hereinafter defined) and the Expiration Date (as
hereinafter defined) or as provided in Section 22.

      NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth, the parties hereto hereby agree as follows:

      1. CERTAIN DEFINITIONS. For purposes of this Agreement, the following
terms have the meanings indicated:

      (a) "ACQUIRING PERSON" means any Person (other than the Company, any
Related Person or any Exempt Person) who or which, together with all Affiliates
and Associates of such Person, is the Beneficial Owner of 5% or more of the
then-outstanding Common Shares; PROVIDED, HOWEVER, that (i) any Person who would
otherwise qualify as an Acquiring Person solely as a result of acquiring Common
Shares of the Company pursuant to a rights offering by the Company ("Rights
Offering Shares") shall not be deemed to be an Acquiring Person for any purpose
of this Agreement on and after such date of acquiring such Rights Offering
Shares until such time as (A) such Person or any Affiliate or Associate of such
Person thereafter becomes the Beneficial Owner of additional Common Shares
representing 1% or more of the then outstanding Common Shares, other than as a
result of a stock dividend, stock split or similar transaction effected by the
Company in which all holders of Common Shares are treated equally (such
percentage increase subject to downward adjustment if the Company's Board of
Directors, in its sole discretion, determines that such percentage increase
shall jeopardize or endanger the availability to the Company of its NOLs), or
(B) any other Person who is the Beneficial Owner of Common Shares representing
1% or more of the then-outstanding Common Shares thereafter becomes an Affiliate
or Associate of such Person (such percentage subject to downward adjustment if
the Company's Board of Directors, in its sole discretion, determines that such
percentage increase shall jeopardize or endanger the availability to the Company
of its NOLs), PROVIDED that the foregoing exclusion shall cease to apply with
respect to any Person at such time as such Person, together with all Affiliates
and Associates of such Person, ceases to Beneficially Own 5% or more of the
then-outstanding Common Shares, (ii) subject to (a)(i) hereof, any Person who

would otherwise qualify as an Acquiring Person as of the Close of Business on
February 2, 2007 shall not be deemed to be an Acquiring Person for any purpose
of this Agreement on and after such date unless and until such time as (A) such
Person or any Affiliate or Associate of such Person thereafter becomes the
Beneficial Owner of additional Common Shares representing 1% or more of the then
outstanding Common Shares, other than as a result of a stock dividend, stock
split or similar transaction effected by the Company in which all holders of
Common Shares are treated equally (such percentage increase subject to downward
adjustment if the Company's Board of Directors, in its sole discretion,
determines that such percentage increase shall jeopardize or endanger the
availability to the Company of its NOLs), or (B) any other Person who is the
Beneficial Owner of Common Shares representing 1% or more of the
then-outstanding Common Shares thereafter becomes an Affiliate or Associate of
such Person (such percentage subject to downward adjustment if the Company's
Board of Directors, in its sole discretion, determines that such percentage
increase shall jeopardize or endanger the availability to the Company of its
NOLs), PROVIDED that the foregoing exclusion shall cease to apply with respect
to any Person at such time as such Person, together with all Affiliates and
Associates of such Person, ceases to Beneficially Own 5% or more of the
then-outstanding Common Shares, and (iii) a Person shall not be deemed to have
become an Acquiring Person solely as a result of a reduction in the number of
Common Shares outstanding unless and until such time as (A) such Person or any
Affiliate or Associate of such Person thereafter becomes the Beneficial Owner of
additional Common Shares representing 1% or more of the then-outstanding Common
Shares, other than as a result of a stock dividend, stock split or similar
transaction effected by the Company in which all holders of Common Shares are
treated equally (such percentage increase subject to downward adjustment if the
Company's Board of Directors, in its sole discretion, determines that such
percentage increase shall jeopardize or endanger the availability to the Company
of its NOLs), or (B) any other Person who is the Beneficial Owner of Common
Shares representing 1% or more of the then-outstanding Common Shares thereafter
becomes an Affiliate or Associate of such Person (such percentage subject to
downward adjustment if the Company's Board of Directors, in its sole discretion,
determines that such percentage increase shall jeopardize or endanger the
availability to the Company of its NOLs). Notwithstanding the foregoing, if the
Board of the Company determines in good faith that a Person who would otherwise
be an "Acquiring Person" as defined pursuant to the foregoing provisions of this
Section 1(a), has become such inadvertently, and such Person divests as promptly
as practicable a sufficient number of Common Shares so that such Person would no
longer be an "Acquiring Person" as defined pursuant to the foregoing provisions
of this Section 1(a), then such Person shall not be deemed to be an "Acquiring
Person" for any purposes of this Agreement.

      (b) "AFFILIATE" and "ASSOCIATE" shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under
the Exchange Act, as in effect on the date of this Agreement, and to the extent
not included within the foregoing clause of this Section 1(b), shall also
include, with respect to any Person, any other Person (other than a Related
Person or an Exempt Person) whose Common Shares would be deemed constructively
owned by such first Person pursuant to the provisions of Section 382 of the
Internal Revenue Code of 1986, as amended (the "CODE"), or any successor
provision or replacement provision, PROVIDED, HOWEVER, that a Person shall not
be deemed to be the Affiliate or Associate of another Person solely because
either or both Persons are or were Directors of the Company.

                                       2

      (c) A Person shall be deemed the "BENEFICIAL OWNER" of, and to
"BENEFICIALLY OWN," any securities:

            (i) the beneficial ownership of which such Person or any of such
      Person's Affiliates or Associates, directly or indirectly, has the right
      to acquire (whether such right is exercisable immediately or only after
      the passage of time) pursuant to any agreement, arrangement or
      understanding (whether or not in writing), or upon the exercise of
      conversion rights, exchange rights, warrants, options or other rights (in
      each case, other than upon exercise or exchange of the Rights); PROVIDED,
      HOWEVER, that a Person shall not be deemed the Beneficial Owner of, or to
      Beneficially Own, securities tendered pursuant to a tender or exchange
      offer made by or on behalf of such Person or any of such Person's
      Affiliates or Associates until such tendered securities are accepted for
      purchase or exchange; or

            (ii) which such Person or any of such Person's Affiliates or
      Associates, directly or indirectly, has or shares the right to vote or
      dispose of, including pursuant to any agreement, arrangement or
      understanding (whether or not in writing); or

            (iii) of which any other Person is the Beneficial Owner, if such
      Person or any of such Person's Affiliates or Associates has any agreement,
      arrangement or understanding (whether or not in writing) with such other
      Person (or any of such other Person's Affiliates or Associates) with
      respect to acquiring, holding, voting or disposing of any securities of
      the Company;

PROVIDED, HOWEVER, that a Person shall not be deemed the Beneficial Owner of, or
to Beneficially Own, any security (A) if such Person has the right to vote such
security pursuant to an agreement, arrangement or understanding (whether or not
in writing) which (1) arises solely from a revocable proxy given to such Person
in response to a public proxy or consent solicitation made pursuant to, and in
accordance with, the applicable rules and regulations of the Exchange Act and
(2) is not also then reportable on Schedule 13D under the Exchange Act (or any
comparable or successor report), or (B) if such beneficial ownership arises
solely as a result of such Person's status as a "clearing agency," as defined in
Section 3(a)(23) of the Exchange Act; PROVIDED FURTHER, HOWEVER, that nothing in
this Section 1(c) shall cause a Person engaged in business as an underwriter of
securities to be the Beneficial Owner of, or to Beneficially Own, any securities
acquired through such Person's participation in good faith in an underwriting
syndicate until the expiration of 40 calendar days after the date of such
acquisition, or such later date as the Directors of the Company may determine in
any specific case. Notwithstanding anything herein to the contrary, to the
extent not within the foregoing provisions of this Section 1(c), a Person shall
be deemed the "Beneficial Owner" of and shall be deemed to "beneficially own" or
have "beneficial ownership" of, any securities which such Person would be deemed
to constructively own pursuant to Section 382 of the Code, or any successor
provision or replacement provision.

      (d) "BUSINESS DAY" means any day other than a Saturday, Sunday or a day on
which banking institutions in the State of New York are authorized or obligated
by law or executive order to close.

                                       3

      (e) "CLOSE OF BUSINESS" on any given date means 5:00 p.m., New York, New
York time, on such date; PROVIDED, HOWEVER, that if such date is not a Business
Day it means 5:00 p.m., New York, New York time, on the next succeeding Business
Day.

      (f) "COMMON SHARES" when used with reference to the Company means the
shares of Common Stock, par value $0.10 per share, of the Company; PROVIDED,
HOWEVER, that if the Company is the continuing or surviving corporation in a
transaction described in Section 11(a)(ii), "Common Shares" when used with
reference to the Company means shares of the capital stock or units of the
equity interests with the greatest aggregate voting power of the Company.
"Common Shares" when used with reference to any corporation or other legal
entity other than the Company, including an Issuer, means shares of the capital
stock or units of the equity interests with the greatest aggregate voting power
of such corporation or other legal entity.

      (g) "COMPANY" means Del Global Technologies Corp., a New York corporation.

      (h) "DISTRIBUTION DATE" means the earlier of: (i) the Close of Business on
the tenth calendar day following the Share Acquisition Date, or (ii) the Close
of Business on the tenth Business Day (or, unless the Distribution Date shall
have previously occurred, such later date as may be specified by the Board of
Directors of the Company) after the commencement of a tender or exchange offer
by any Person (other than the Company, any Related Person or any Exempt Person),
if upon the consummation thereof such Person would be the Beneficial Owner of 5%
or more of the then-outstanding Common Shares.

      (i) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

      (j) "EXEMPT PERSON" shall mean (1) the Company, (2) any Subsidiary (as
defined below) of the Company, (3) any employee benefit plan or related trust of
the Company or of any Subsidiary of the Company, (4) any trustee or fiduciary
with respect to any such benefit plan or trust acting in such capacity
(including without limitation serving in the capacity of investment manager or
adviser thereto), or any entity, trustee or fiduciary holding Common Shares for,
or pursuant to the terms of, any such plan or trust or for the purpose of
funding any such plan or trust or funding other employee benefits for employees
or former employees of the Company or of any Subsidiary of the Company, or (5)
any Person whose ownership (together with all Affiliates and Associates of such
Person) of 5% or more of the Common Shares then outstanding shall, in the
judgment of a majority of the Company's entire Board of Directors, not
jeopardize or endanger the availability to the Company of its NOLs to be used to
offset its taxable income in such year or future years (but in the case of any
Person determined by the Company's Board of Directors pursuant to this
subparagraph (j)(5) only for so long as such Person continues to be an Exempt
Person, as determined by the Board of Directors in its good faith discretion);
PROVIDED, HOWEVER, that any Person's status as an Exempt Person pursuant to
subparagraph (j)(5) shall cease immediately and without any action by the
Company's Board of Directors at any time that such Person's ownership (together
with all Affiliates and Associates of such Person) of Common Shares constitutes
the ownership by such Person of 5% or more of the shares of Common Shares
then-outstanding for purposes of Section 382 of the Code, or any successor
provision or replacement provision.

                                       4

      (k) "EXPIRATION DATE" means the earliest of (i) the Close of Business on
the Final Expiration Date, (ii) the time at which the Rights are redeemed as
provided in Section 23, and (iii) the time at which all exercisable Rights are
exchanged as provided in Section 24.

      (l) "FINAL EXPIRATION DATE" means the tenth anniversary of the Record
Date.

      (m) "FLIP-IN EVENT" means any event described in clauses (A), (B) or (C)
of Section 11 (a)(ii).

      (n) "FLIP-OVER EVENT" means any event described in clauses (i), (ii) or
(iii) of Section 13(a).

      (o) "ISSUER" has the meaning set forth in Section 13(b).

      (p) "NASDAQ" means The Nasdaq Stock Market.

      (q) "NOLS" means the Company's net operating loss carryforwards and/or
capital loss carryforwards, to be used to offset its taxable income in the
current year or future year.

      (r) "PERSON" means any individual, firm, corporation, limited liability
company, partnership, trust or other legal entity, and includes any successor
(by merger or otherwise) of such entity.

      (s) "PURCHASE PRICE" means initially $25.00 per Common Share, subject to
adjustment from time to time as provided in this Agreement.

      (t) "RECORD DATE" has the meaning set forth in the Recitals to this
Agreement.

      (u) "REDEMPTION PRICE" means $0.01 per Right, subject to adjustment by
resolution of the Board of Directors of the Company to reflect any stock split,
stock dividend or similar transaction occurring after the Record Date.

      (v) "RELATED PERSON" means (i) any Subsidiary of the Company or (ii) any
employee benefit or stock ownership plan of the Company or of any Subsidiary of
the Company or any entity holding Common Shares for or pursuant to the terms of
any such plan.

      (w) "RIGHT" has the meaning set forth in the Recitals to this Agreement.

      (x) "RIGHT CERTIFICATES" means certificates evidencing the Rights, in
substantially the form attached as Exhibit A.

      (y) "RIGHTS AGENT" means Mellon Investor Services LLC, a New Jersey
limited liability company, unless and until a successor Rights Agent has become
such pursuant to the terms of this Agreement, and thereafter, "Rights Agent"
means such successor Rights Agent.

      (z) "RIGHTS OFFERING SHARES" has the meaning set forth in Section 1(a).

                                       5

      (aa) "SECURITIES ACT" means the Securities Act of 1933, as amended.

      (bb) "SHARE ACQUISITION DATE" means the first date of public announcement
by the Company (by press release, filing made with the Securities and Exchange
Commission or otherwise) that an Acquiring Person has become such.

      (cc) "SUBSIDIARY" of any Person shall mean any corporation or other entity
of which securities or other ownership interests having ordinary voting power
sufficient to elect a majority of the board of directors or other persons
performing similar functions are beneficially owned, directly or indirectly, by
such Person, and any corporation or other entity that is otherwise controlled by
such Person; PROVIDED, HOWEVER, that for purposes of Section 13(b), "Subsidiary"
when used with reference to any Person means any corporation or other legal
entity of which at least 20% of the voting power of the voting equity securities
or equity interests is owned, directly or indirectly, by such Person.

      (dd) "TRADING DAY" means any day on which the principal national
securities exchange on which the Common Shares are listed or admitted to trading
is open for the transaction of business or, if the Common Shares are not listed
or admitted to trading on any national securities exchange, a Business Day.

      (ee) "TRIGGERING EVENT" means any Flip-in Event or Flip-over Event.

      2. APPOINTMENT OF RIGHTS AGENT. The Company hereby appoints the Rights
Agent to act as rights agent for the Company in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The
Company may from time to time act as Co-Rights Agent or appoint such Co-Rights
Agents as it may deem necessary or desirable. The Rights Agent shall have no
duty to supervise, and in no event shall be liable for, the acts or omissions of
any such Co-Rights Agent. Any actions which may be taken by the Rights Agent
pursuant to the terms of this Agreement may be taken by any such Co-Rights
Agent. To the extent that any Co-Rights Agent takes any action pursuant to this
Agreement, such Co-Rights Agent shall be entitled to all of the rights and
protections of, and subject to all of the applicable duties and obligations
imposed upon, the Rights Agent pursuant to the terms of this Agreement.

      3. ISSUE OF RIGHT CERTIFICATES. (a) Until the Distribution Date, (i) the
Rights shall be evidenced by the certificates representing Common Shares
registered in the names of the record holders thereof (which certificates
representing Common Shares shall also be deemed to be Right Certificates), (ii)
the Rights shall be transferable only in connection with the transfer of the
underlying Common Shares, and (iii) the surrender for transfer of any
certificates evidencing Common Shares in respect of which Rights have been
issued shall also constitute the transfer of the Rights associated with the
Common Shares evidenced by such certificates. On or as promptly as practicable
after the Record Date, the Company shall send by first class, postage prepaid
mail, to each record holder of Common Shares as of the Close of Business on the
Record Date, at the address of such holder shown on the records of the Company
as of such date, a copy of a Summary of Rights to Purchase Common Shares in
substantially the form attached as EXHIBIT B.

      (b) Rights shall be issued by the Company in respect of all Common Shares
(other than Common Shares issued upon the exercise or exchange of any Right)

                                       6

issued or delivered by the Company (whether originally issued or delivered from
the Company's treasury) after the Record Date but prior to the earlier of the
Distribution Date and the Expiration Date. Certificates evidencing such Common
Shares shall have stamped on, impressed on, printed on, written on, or otherwise
affixed to them the following legend or such similar legend as the Company may
deem appropriate and as is not inconsistent with the provisions of this
Agreement, or as may be required to comply with any applicable law or with any
rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange or transaction reporting system on which the Common Shares may
from time to time be listed or quoted, or to conform to usage:

      This Certificate also evidences and entitles the holder hereof to certain
      Rights as set forth in a Rights Agreement between Del Global Technologies
      Corp. and Mellon Investor Services LLC, as Rights Agent, dated as of
      January 22, 2007 (the "Rights Agreement"), the terms of which are hereby
      incorporated herein by reference and a copy of which is on file at the
      principal executive offices of Del Global Technologies Corp. The Rights
      are not exercisable prior to the occurrence of certain events specified in
      the Rights Agreement. Under certain circumstances, as set forth in the
      Rights Agreement, such Rights may be redeemed, may be exchanged, may
      expire, may be amended, or may be evidenced by separate certificates and
      no longer be evidenced by this Certificate. Del Global Technologies Corp.
      shall mail to the holder of this Certificate a copy of the Rights
      Agreement, as in effect on the date of mailing, without charge promptly
      after receipt of a written request therefor. Under certain circumstances
      as set forth in the Rights Agreement, Rights that are or were beneficially
      owned by an Acquiring Person or any Affiliate or Associate of an Acquiring
      Person (as such terms are defined in the Rights Agreement) may become null
      and void.

      Notwithstanding this subsection (b), the omission of a legend shall not
affect the enforceability of any part of this Rights Agreement or the rights of
any holder of the Rights.

      (c) Any Right Certificate issued pursuant to this Section 3 that
represents Rights beneficially owned by an Acquiring Person or any Associate or
Affiliate thereof (or any transferee of such Rights) and any Right Certificate
issued at any time upon the transfer of any Rights to an Acquiring Person or any
Associate or Affiliate thereof or to any nominee of such Acquiring Person,
Associate or Affiliate and any Right Certificate issued pursuant to Section 6 or
11 hereof upon transfer, exchange, replacement or adjustment of any other Right
Certificate referred to in this sentence, shall be subject to and contain (if
the Company or the Rights Agent has knowledge that such Person is an Acquiring
Person or an Associate thereof or a nominee of any of the foregoing) the
following legend or such similar legend as the Company may deem appropriate and
as is not inconsistent with the provisions of this Agreement, or as may be
required to comply with any applicable law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any stock exchange on which
the Rights may from time to time be listed, or to conform to usage:

      The Rights represented by this Right Certificate are or were beneficially
      owned by a Person who was an Acquiring Person or an Affiliate or an

                                       7

      Associate of an Acquiring Person (as such terms are defined in the Rights
      Agreement). This Right Certificate and the Rights represented hereby may
      become null and void in the circumstances specified in Section 11(a)(ii)
      or Section 13 of the Rights Agreement.

      Notwithstanding this subsection (c), the omission of a legend shall not
affect the enforceability of any part of this Rights Agreement or the rights of
any holder of the Rights.

      (d) As promptly as practicable after the Distribution Date, the Company
shall prepare and execute, the Rights Agent shall countersign and the Company
shall send or cause to be sent (and the Rights Agent shall, if requested and
provided with all necessary information, send), by first class, insured, postage
prepaid mail, to each record holder of Common Shares as of the Close of Business
on the Distribution Date, at the address of such holder shown on the records of
the Company, a Right Certificate evidencing one Right for each Common Share so
held, subject to adjustment as provided herein. As of and after the Distribution
Date, the Rights shall be evidenced solely by such Right Certificates.

      The Company shall promptly notify the Rights Agent in writing upon the
occurrence of the Distribution Date and, if such notification is given orally,
the Company shall confirm same in writing on or prior to the Business Day next
following. Until such notice is received by the Rights Agent, the Rights Agent
may presume conclusively for all purposes that the Distribution Date has not
occurred.

      (e) In the event that the Company purchases or otherwise acquires any
Common Shares after the Record Date but prior to the Distribution Date, any
Rights associated with such Common Shares shall be deemed canceled and retired
so that the Company shall not be entitled to exercise any Rights associated with
the Common Shares so purchased or acquired.

      4. FORM OF RIGHT CERTIFICATES. The Right Certificates (and the form of
election to purchase shares and the form of assignment to be printed on the
reverse thereof) shall be substantially in the form attached as EXHIBIT A with
such changes and marks of identification or designation, and such legends,
summaries or endorsements printed thereon, as the Company may deem appropriate
(but which do not affect the rights, duties, responsibilities of the Rights
Agent) and as are not inconsistent with the provisions of this Agreement, or as
may be required to comply with any applicable law or with any rule or regulation
made pursuant thereto or with any rule or regulation of any stock exchange or
transaction reporting system on which the Rights may from time to time be listed
or quoted, or to conform to usage. Subject to the provisions of Sections 11, 13
and 22, the Right Certificates, whenever issued, on their face shall entitle the
holders thereof to purchase such number of Common Shares as are set forth
therein at the Purchase Price set forth therein, but the Purchase Price, the
number and kind of securities issuable upon exercise of each Right and the
number of Rights outstanding shall be subject to adjustment as provided herein.

      5. COUNTERSIGNATURE AND REGISTRATION. (a) The Right Certificates shall be
executed on behalf of the Company by its Chairman of the Board, its President or
any Vice President, either manually or by facsimile signature, and shall have

                                       8

affixed thereto the Company's seal or a facsimile thereof which shall be
attested by the Secretary or an Assistant Secretary of the Company, either
manually or by facsimile signature. The Right Certificates shall be manually
countersigned by the Rights Agent and shall not be valid for any purpose unless
so countersigned. In case any officer of the Company who signed any of the Right
Certificates ceases to be such officer of the Company before countersignature by
the Rights Agent and issuance and delivery by the Company, such Right
Certificates, nevertheless, may be countersigned by the Rights Agent, and issued
and delivered by the Company with the same force and effect as though the person
who signed such Right Certificates had not ceased to be such officer of the
Company; and any Right Certificate may be signed on behalf of the Company by any
person who, at the actual date of the execution of such Right Certificate, is a
proper officer of the Company to sign such Right Certificate, although at the
date of the execution of this Rights Agreement any such person was not such
officer.

      (b) Following the Distribution Date and receipt by the Rights Agent of
notice to that effect and all other relevant information referred to in Section
3, the Rights Agent shall keep or cause to be kept, at the office of the Rights
Agent designated for such purpose, books for registration and transfer of the
Right Certificates issued hereunder. Such books shall show the names and
addresses of the respective holders of the Right Certificates, the number of
Rights evidenced on its face by each of the Right Certificates and the date of
each of the Right Certificates.

      6. TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT CERTIFICATES;
MUTILATED, DESTROYED, LOST OR STOLEN RIGHT CERTIFICATES. (a) Subject to the
provisions of Sections 7(d) and 14, at any time after the Close of Business on
the Distribution Date and prior to the Expiration Date, any Right Certificate or
Right Certificates representing exercisable Rights may be transferred, split up,
combined or exchanged for another Right Certificate or Right Certificates,
entitling the registered holder to purchase a like number of Common Shares (or
other securities, as the case may be) as the Right Certificate or Right
Certificates surrendered then entitled such holder (or former holder in the case
of a transfer) to purchase. Any registered holder desiring to transfer, split
up, combine or exchange any such Right Certificate must surrender the Right
Certificate to be transferred, split up, combined or exchanged at the office of
the Rights Agent designated for such purpose with the form of assignment on the
reverse side thereof duly endorsed (or enclose with such Right Certificate a
written instrument of transfer in form satisfactory to the Company and the
Rights Agent), duly executed by the registered holder thereof or his attorney
duly authorized in writing, and with such signature guaranteed by a member of a
securities approved medallion program. The Right Certificates are transferable
only on the registry books of the Rights Agent. Neither the Rights Agent nor the
Company shall be obligated to take any action whatsoever with respect to the
transfer of any such surrendered Right Certificate or Certificates until the
registered holder thereof shall have (i) completed and signed the certificate
contained in the form of assignment set forth on the reverse side of each such
Right Certificate, (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) thereof and of the Rights
evidenced thereby and the Affiliates and Associates of such Beneficial Owner (or
former Beneficial Owner) as the Company or the Rights Agent shall reasonably
request, and (iii) paid a sum sufficient to cover any tax or charge that may be
imposed in connection with any transfer, split up, combination or exchange of
Right Certificates as required by Section 9(d) hereof. Thereupon or as promptly
as practicable thereafter, subject to the provisions of Sections 7(d) and 14,
the Company shall prepare, execute and deliver to the Rights Agent, and the

                                       9

Rights Agent shall manually countersign and deliver to the Person entitled
thereto, a Right Certificate or Right Certificates, as the case may be, as so
requested, registered in such name or names as may be designated by the
surrendering registered holder. The Company may require payment of a sum
sufficient to cover any tax or charge that may be imposed in connection with any
transfer, split up, combination or exchange of Right Certificates. The Rights
Agent shall promptly forward any such sum collected by it to the Company or to
such Persons as the Company shall specify by written notice. The Rights Agent
shall have no duty or obligation under this Section unless and until it is
satisfied that all such taxes and/or governmental charges have been paid.

      (b) Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Right Certificate and, in case of loss, theft or destruction, of indemnity or
security satisfactory to them, and, at the Company's request, reimbursement to
the Company and the Rights Agent of all reasonable expenses incidental thereto,
and upon surrender to the Rights Agent and cancellation of the Right Certificate
if mutilated, the Company shall prepare, execute and deliver a new Right
Certificate of like tenor to the Rights Agent and the Rights Agent shall
countersign and deliver such new Right Certificate to the registered holder in
lieu of the Right Certificate so lost, stolen, destroyed or mutilated.

      7. EXERCISE OF RIGHTS; PURCHASE PRICE; EXPIRATION DATE OF RIGHTS. (a) The
registered holder of any Right Certificate may exercise the Rights evidenced
thereby (except as otherwise provided herein) in whole or in part at any time
after the Distribution Date and prior to the Expiration Date, upon surrender of
the Right Certificate, with the form of election to purchase on the reverse side
thereof duly executed (with such signature duly guaranteed), to the Rights Agent
at the office of the Rights Agent designated for such purpose, together with
payment in cash, in lawful money of the United States of America by certified
check or bank draft payable to the order of the Company, equal to the sum of (i)
the exercise price for the total number of securities as to which such
surrendered Rights are exercised and (ii) an amount equal to any applicable
transfer tax required to be paid by the holder of such Right Certificate in
accordance with the provisions of Section 9(d). Except for those provisions
herein which expressly survive the termination of this Agreement, this Agreement
shall terminate at such time as the Rights are no longer exercisable hereunder.

      (b) Upon receipt of a Right Certificate representing exercisable Rights
with the form of election to purchase duly and properly executed, accompanied by
payment as described above and an amount equal to any applicable tax or charge
required to be paid under Section 9(d) hereof by certified check, cashier's
check, bank draft or money order payable to the order of the Company, subject to
Section 20(j) hereof, the Rights Agent shall promptly (i) requisition from any
transfer agent of the Common Shares (or make available, if the Rights Agent is
the transfer agent) certificates representing the total number of number of
Common Shares to be purchased (and the Company hereby irrevocably authorizes and
directs its transfer agent to comply with all such requests), or, if the Company
elects to deposit Common Shares issuable upon exercise of the Rights hereunder
with a depositary agent, requisition from the depositary agent depositary
receipts representing such number of Common Shares as are to be purchased (and
the Company hereby irrevocably authorizes and directs such depositary agent to
comply with all such requests), (ii) after receipt of such certificates (or

                                       10

depositary receipts, as the case may be), cause the same to be delivered to or
upon the order of the registered holder of such Right Certificate, registered in
such name or names as may be designated by such holder, (iii) when appropriate,
requisition from the Company or any transfer agent therefor (or make available,
if the Rights Agent is the transfer agent) certificates representing the number
of equivalent common shares to be issued in lieu of the issuance of Common
Shares in accordance with the provisions of Section 11(a)(iii), (iv) when
appropriate, after receipt of such certificates, cause the same to be delivered
to or upon the order of the registered holder of such Right Certificate,
registered in such name or names as may be designated by such holder, (v) when
appropriate, requisition from the Company the amount of cash to be paid in lieu
of the issuance of fractional shares in accordance with the provisions of
Section 14 or in lieu of the issuance of Common Shares in accordance with the
provisions of Section 11(a)(iii), (vi) when appropriate, after receipt, deliver
such cash to or upon the order of the registered holder of such Right
Certificate, and (vii) when appropriate, deliver any due bill or other
instrument provided to the Rights Agent by the Company for delivery to the
registered holder of such Right Certificate as provided by Section 11(l).

      (c) In case the registered holder of any Right Certificate exercises less
than all the Rights evidenced thereby, the Company shall prepare, execute and
deliver a new Right Certificate evidencing Rights equivalent to the Rights
remaining unexercised and the Rights Agent shall countersign and deliver such
new Right Certificate to the registered holder of such Right Certificate or to
his duly authorized assigns, subject to the provisions of Section 14.

      (d) Notwithstanding anything in this Agreement to the contrary, neither
the Rights Agent nor the Company shall be obligated to undertake any action with
respect to a registered holder upon the occurrence of any purported transfer,
split up, combination or exchange of any Right Certificate pursuant to Section 6
or exercise of a Right Certificate as set forth in this Section 7 unless the
registered holder of such Right Certificate has (i) properly completed and
signed the certificate following the form of assignment or the form of election
to purchase, as applicable, set forth on the reverse side of the Right
Certificate surrendered for such transfer, split up, combination, exchange or
exercise and (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company or the Rights Agent shall reasonably request.

      8. CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES. All Right
Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation or in canceled form,
or, if surrendered to the Rights Agent, shall be canceled by it, and no Right
Certificates shall be issued in lieu thereof except as expressly permitted by
the provisions of this Agreement. The Company shall deliver to the Rights Agent
for cancellation and retirement, and the Rights Agent shall so cancel and
retire, any other Right Certificate purchased or acquired by the Company
otherwise than upon the exercise thereof. The Rights Agent shall deliver all
canceled Right Certificates to the Company, or shall, at the written request of
the Company, destroy such canceled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

      9. COMPANY COVENANTS CONCERNING SECURITIES AND RIGHTS. The Company
covenants and agrees that:

                                       11

      (a) At all times, it shall cause to be reserved and kept available out of
its authorized and unissued Common Shares or any Common Shares held in its
treasury, a number of Common Shares that shall be sufficient to permit the
exercise in full of all outstanding Rights in accordance with Section 7. The
Company shall take all such action as may be necessary to ensure that all Common
Shares delivered upon exercise of Rights shall, at the time of delivery of the
certificates for such Common Shares (subject to payment of the Purchase Price),
be duly and validly authorized and issued and fully paid and nonassessable
shares.

      (b) So long as the Common Shares (and, following the occurrence of a
Triggering Event, Common Shares and/or other securities) issuable and
deliverable upon the exercise of the Rights may be listed on a national
securities exchange or traded in the over-the-counter market and quoted on
Nasdaq, it shall use its best efforts to cause, from and after such time as the
Rights become exercisable (but only to the extent that the Company's Board of
Directors determines that it is reasonably likely that the Rights shall be
exercised), all securities reserved for issuance upon the exercise of Rights to
be listed on such exchange, or traded in the over-the-counter market and quoted
on Nasdaq, upon official notice of issuance upon such exercise.

      (c) It shall take all such action as may be necessary to ensure that all
Common Shares (and, following the occurrence of a Triggering Event, Common
Shares and/or other securities) delivered upon exercise of Rights, at the time
of delivery of the certificates for such securities, shall be (subject to
payment of the Purchase Price) duly authorized, validly issued, fully paid and
nonassessable securities in accordance with applicable law.

      (d) It shall pay when due and payable any and all taxes and charges that
may be payable in respect of the issuance or delivery of the Right Certificates
and of any certificates representing securities issued upon the exercise of
Rights; provided, however, that the Company shall not be required to pay any
transfer tax or charge which may be payable in respect of any transfer or
delivery of Right Certificates to a Person other than, or the issuance or
delivery of certificates or depositary receipts representing securities issued
upon the exercise of Rights in a name other than that of, the registered holder
of the Right Certificate evidencing Rights surrendered for exercise, or to issue
or deliver any certificates or depositary receipts representing securities
issued upon the exercise of any Rights until any such tax or charge has been
paid (any such tax or charge being payable by the holder of such Right
Certificate at the time of surrender) or until it has been established to the
Company's or the Right's Agent's reasonable satisfaction that no such tax or
charge is due.

      (e) If the Company determines that registration under the Securities Act
is required, then the Company shall use its best efforts (i) to file, as soon as
practicable following the later of the Share Acquisition Date and the
Distribution Date, on an appropriate form, a registration statement under the
Securities Act with respect to the securities issuable upon exercise of the
Rights, (ii) to cause such registration statement to become effective as soon as
practicable after such filing, and (iii) to cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the earlier of (A) the date as of which the Rights are no
longer exercisable for such securities and (B) the Expiration Date. The Company
shall also take such action as may be appropriate under, or to ensure compliance
with, the securities or "blue sky" laws of the various states in connection with
the exercisability of the Rights. The Company may temporarily suspend, for a
period of time after the date set forth in clause (i) of the first sentence of

                                       12

this Section 9(e), the exercisability of the Rights in order to prepare and file
such registration statement and to permit it to become effective. Upon any such
suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended, as well as a public
announcement at such time as the suspension is no longer in effect. In addition,
if the Company determines that a registration statement should be filed under
the Securities Act or any state securities laws following the Distribution Date,
the Company may temporarily suspend the exercisability of the Rights in each
relevant jurisdiction until such time as a registration statement has been
declared effective and, upon any such suspension, the Company shall issue a
public announcement stating that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement at such time as the
suspension is no longer in effect. The Company shall notify the Rights Agent
whenever it makes a public announcement pursuant to this Section 9(e) and give
the Rights Agent a copy of such announcement. Notwithstanding anything in this
Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction if the requisite registration or qualification in such jurisdiction
has not been effected or the exercise of the Rights is not permitted under
applicable law.

      (f) Notwithstanding anything in this Agreement to the contrary, after the
later of the Share Acquisition Date and the Distribution Date it shall not take
(or permit any Subsidiary to take) any action if at the time such action is
taken it is reasonably foreseeable that such action shall eliminate or otherwise
diminish the benefits intended to be afforded by the Rights.

      (g) In the event that the Company is obligated to issue other securities
of the Company and/or pay cash pursuant to Section 11, 13, 14 or 24 it shall
make all arrangements necessary so that such other securities and/or cash are
available for distribution by the Rights Agent, if and when appropriate.

      10. RECORD DATE. Each Person in whose name any certificate representing
Common Shares (or Common Shares and/or other securities, as the case may be) is
issued upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of the Common Shares (or Common Shares and/or other
securities, as the case may be) represented thereby on, and such certificate
shall be dated, the date upon which the Right Certificate evidencing such Rights
was duly surrendered and payment of the Purchase Price (and all applicable taxes
or charges) was made; provided, however, that if the date of such surrender and
payment is a date upon which the transfer books of the Company for the Common
Shares (or Common Shares and/or other securities, as the case may be) are
closed, such Person shall be deemed to have become the record holder of such
securities on, and such certificate shall be dated, the next succeeding Business
Day on which the transfer books of the Company for the Common Shares (or Common
Shares and/or other securities, as the case may be) are open. Prior to the
exercise of the Rights evidenced thereby, the holder of a Right Certificate
shall not be entitled to any rights of a holder of any security for which the
Rights are or may become exercisable, including, without limitation, the right
to vote, to receive dividends or other distributions, or to exercise any
preemptive rights, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided herein.

      11. ADJUSTMENT OF PURCHASE PRICE, NUMBER AND KIND OF SECURITIES OR NUMBER
OF RIGHTS. The Purchase Price, the number and kind of securities issuable upon

                                       13

exercise of each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11.

      (a) (i) In the event that the Company at any time after the Record Date
(A) declares a dividend on the Common Shares payable in Common Shares, (B)
subdivides the outstanding Common Shares, (C) combines the outstanding Common
Shares into a smaller number of Common Shares, or (D) issues any shares of its
capital stock in a reclassification of the Common Shares (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation), except as otherwise
provided in this Section 11(a), the Purchase Price in effect at the time of the
record date for such dividend or of the effective date of such subdivision,
combination or reclassification and/or the number and/or kind of shares of
capital stock issuable on such date upon exercise of a Right, shall be
proportionately adjusted so that the holder of any Right exercised after such
time is entitled to receive upon payment of the Purchase Price then in effect
the aggregate number and kind of shares of capital stock which, if such Right
had been exercised immediately prior to such date and at a time when the
transfer books of the Company for the Common Shares were open, the holder of
such Right would have owned upon such exercise (and, in the case of a
reclassification, would have retained after giving effect to such
reclassification ) and would have been entitled to receive by virtue of such
dividend, subdivision, combination or reclassification; PROVIDED, HOWEVER, that
in no event shall the consideration to be paid upon the exercise of one Right be
less than the aggregate par value of the shares of capital stock issuable upon
exercise of one Right. If an event occurs which would require an adjustment
under both this Section 11(a)(i) and Section 11(a)(ii) or Section 13, the
adjustment provided for in this Section 11(a)(i) shall be in addition to, and
shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) or
Section 13.

            (ii) Subject to the provisions of Section 24, if:

      (A) any Person becomes an Acquiring Person; or

      (B) any Acquiring Person or any Affiliate or Associate of any Acquiring
Person, directly or indirectly, (1) merges into the Company or otherwise
combines with the Company and the Company is the continuing or surviving
corporation of such merger or combination (other than in a transaction subject
to Section 13), (2) merges or otherwise combines with any Subsidiary of the
Company, (3) in one or more transactions (otherwise than in connection with the
exercise, exchange or conversion of securities exercisable or exchangeable for
or convertible into shares of any class of capital stock of the Company or any
of its Subsidiaries) transfers cash, securities or any other property to the
Company or any of its Subsidiaries in exchange (in whole or in part) for shares
of any class of capital stock of the Company or any of its Subsidiaries or for
securities exercisable or exchangeable for or convertible into shares of any
class of capital stock of the Company or any of its Subsidiaries, or otherwise
obtains from the Company or any of its Subsidiaries, with or without
consideration, any additional shares of any class of capital stock of the
Company or any of its Subsidiaries or securities exercisable or exchangeable for
or convertible into shares of any class of capital stock of the Company or any
of its Subsidiaries (otherwise than as part of a pro rata distribution to all
holders of shares of any class of capital stock of the Company, or any of its
Subsidiaries), (4) sells, purchases, leases, exchanges, mortgages, pledges,
transfers or otherwise disposes (in one or more transactions) to, from, with or

                                       14

of, as the case may be, the Company or any of its Subsidiaries (otherwise than
in a transaction subject to Section 13), any property, including securities, on
terms and conditions less favorable to the Company than the Company would be
able to obtain in an arm's-length transaction with an unaffiliated third party,
(5) receives any compensation from the Company or any of its Subsidiaries other
than compensation as a director or a regular full-time employee, in either case
at rates consistent with the Company's (or its Subsidiaries') past practices, or
(6) receives the benefit, directly or indirectly (except proportionately as a
stockholder), of any loans, advances, guarantees, pledges or other financial
assistance or any tax credits or other tax advantage provided by the Company or
any of its Subsidiaries; or

      (C) during such time as there is an Acquiring Person, there is any
reclassification of securities of the Company (including any reverse stock
split), or any recapitalization of the Company, or any merger or consolidation
of the Company with any of its Subsidiaries, or any other transaction or series
of transactions involving the Company or any of its Subsidiaries (whether or not
with or into or otherwise involving an Acquiring Person), other than a
transaction subject to Section 13, which has the effect, directly or indirectly,
of increasing by more than 1% the proportionate share of the outstanding shares
of any class of equity securities of the Company or any of its Subsidiaries, or
of securities exercisable or exchangeable for or convertible into equity
securities of the Company or any of its Subsidiaries, of which an Acquiring
Person, or any Affiliate or Associate of any Acquiring Person, is the Beneficial
Owner equally (such percentage increase subject to downward adjustment if the
Company's Board of Directors, in its sole discretion, determines that such
percentage increase shall jeopardize or endanger the availability to the Company
of its NOLs);

then, and in each such case, from and after the latest of the Distribution Date,
the Share Acquisition Date and the date of the occurrence of such Flip-in Event,
proper provision shall be made so that each holder of a Right, except as
provided below, shall thereafter have the right to receive, upon exercise
thereof in accordance with the terms of this Agreement at an exercise price per
Right equal to the product of the then-current Purchase Price multiplied by the
number of Common Shares for which a Right was exercisable immediately prior to
the date of the occurrence of such Flip-in Event (or, if any other Flip-in Event
shall have previously occurred, the product of the then-current Purchase Price
multiplied by the number of Common Shares for which a Right was exercisable
immediately prior to the date of the first occurrence of a Flip-in Event) such
number of Common Shares as equals the result obtained by (x) multiplying the
then-current Purchase Price by the number of Common Shares for which a Right was
exercisable immediately prior to the date of the occurrence of such Flip-in
Event (or, if any other Flip-in Event shall have previously occurred,
multiplying the then-current Purchase Price by the number of Common Shares for
which a Right was exercisable immediately prior to the date of the first
occurrence of a Flip-in Event), and dividing that product by (y) 50% of the
current per share market price of the Common Shares (determined pursuant to
Section 11(d)) on the date of the occurrence of such Flip-in Event.
Notwithstanding anything in this Agreement to the contrary, from and after the
first occurrence of a Flip-in Event, any Rights that are Beneficially Owned by
(A) any Acquiring Person (or any Affiliate or Associate of any Acquiring
Person), (B) a transferee of any Acquiring Person (or any such Affiliate or
Associate) who becomes a transferee after the occurrence of a Flip-in Event, or
(C) a transferee of any Acquiring Person (or any such Affiliate or Associate)
who became a transferee prior to or concurrently with the occurrence of a
Flip-in Event pursuant to either (1) a transfer from an Acquiring Person to

                                       15

holders of its equity securities or to any Person with whom it has any
continuing agreement, arrangement or understanding regarding the transferred
Rights or (2) a transfer which the Directors of the Company have determined is
part of a plan, arrangement or understanding which has the purpose or effect of
avoiding the provisions of this Section 11(a)(ii), and subsequent transferees of
any of such Persons, shall be null and void without any further action and any
holder of such Rights shall thereafter have no rights whatsoever with respect to
such Rights under any provision of this Agreement. The Company shall use all
reasonable efforts to ensure that the provisions of this Section 11(a)(ii) are
complied with, but shall have no liability to any holder of Right Certificates
or any other Person as a result of its failure to make any determinations with
respect to an Acquiring Person or its Affiliates, Associates or transferees
hereunder. Upon the occurrence of a Flip-in Event, no Right Certificate that
represents Rights that are or have become null and void pursuant to the
provisions of this Section 11(a)(ii) shall thereafter be issued pursuant to
Section 3 or Section 6, and any Right Certificate delivered to the Rights Agent
that represents Rights that are or have become null and void pursuant to the
provisions of this Section 11(a)(ii) shall be canceled. The Company shall give
the Rights Agent written notice of the identity of any such Acquiring Person,
Associate or Affiliate, or the nominee of any of the foregoing, and the Rights
Agent may rely on such notice in carrying out its duties under this Agreement
and shall be deemed not to have any knowledge of the identity of any such
Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing
unless and until it shall have received such notice. Upon the occurrence of a
Flip-over Event, any Rights that shall not have been previously exercised
pursuant to this Section 11(a)(ii) shall thereafter be exercisable only pursuant
to Section 13 and not pursuant to this Section 11(a)(ii).

            (iii) Upon the occurrence of a Flip-in Event, if there are not
      sufficient Common Shares authorized but unissued or issued but not
      outstanding to permit the issuance of all the Common Shares issuable in
      accordance with Section 11(a)(ii) upon the exercise of a Right, the Board
      of Directors of the Company shall use its best efforts promptly to
      authorize and, subject to the provisions of Section 9(e), make available
      for issuance additional Common Shares or other equity securities of the
      Company having equivalent voting rights and an equivalent value (as
      determined in good faith by the Board of Directors of the Company) to the
      Common Shares (for purposes of this Section 11(a)(iii), "equivalent common
      shares"). In the event that equivalent common shares are so authorized,
      upon the exercise of a Right in accordance with the provisions of Section
      7, the registered holder shall be entitled to receive (A) Common Shares,
      to the extent any are available, and (B) a number of equivalent common
      shares, which the Board of Directors of the Company has determined in good
      faith to have a value equivalent to the excess of (x) the aggregate
      current per share market value on the date of the occurrence of the most
      recent Flip-in Event of all the Common Shares issuable in accordance with
      Section 11(a)(ii) upon the exercise of a Right (the "Exercise Value") over
      (y) the aggregate current per share market value on the date of the
      occurrence of the most recent Flip-in Event of any Common Shares available
      for issuance upon the exercise of such Right; provided, however, that if
      at any time after 90 calendar days after the latest of the Share
      Acquisition Date, the Distribution Date and the date of the occurrence of
      the most recent Flip-in Event, there are not sufficient Common Shares
      and/or equivalent common shares available for issuance upon the exercise
      of a Right, then the Company shall be obligated to deliver, upon the
      surrender of such Right and without requiring payment of the Purchase
      Price, Common Shares (to the extent available), equivalent common shares

                                       16

      (to the extent available) and then cash (to the extent permitted by
      applicable law and any agreements or instruments to which the Company is a
      party in effect immediately prior to the Share Acquisition Date), which
      securities and cash have an aggregate value equal to the excess of (1) the
      Exercise Value over (2) the product of the then-current Purchase Price
      multiplied by the number of Common Shares for which a Right was
      exercisable immediately prior to the date of the occurrence of the most
      recent Flip-in Event (or, if any other Flip-in Event shall have previously
      occurred, the product of the then-current Purchase Price multiplied by the
      number of Common Shares for which a Right would have been exercisable
      immediately prior to the date of the occurrence of such Flip-in Event if
      no other Flip-in Event had previously occurred). To the extent that any
      legal or contractual restrictions prevent the Company from paying the full
      amount of cash payable in accordance with the foregoing sentence, the
      Company shall pay to holders of the Rights as to which such payments are
      being made all amounts which are not then restricted on a pro rata basis
      and shall continue to make payments on a pro rata basis as promptly as
      funds become available until the full amount due to each such Rights
      holder has been paid.

      (b) In the event that the Company fixes a record date for the issuance of
rights, options or warrants to all holders of Common Shares entitling them (for
a period expiring within 45 calendar days after such record date) to subscribe
for or purchase Common Shares (or securities having equivalent rights,
privileges and preferences as the Common Shares (for purposes of this Section
11(b), "EQUIVALENT COMMON SHARES")) or securities convertible into Common Shares
or equivalent common shares at a price per Common Share or equivalent common
share (or having a conversion price per share, if a security convertible into
Common Shares or equivalent common shares) less than the current per share
market price of the Common Shares (determined pursuant to Section 11(d)) on such
record date, the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such
record date by a fraction, the numerator of which is the number of Common Shares
outstanding on such record date plus the number of Common Shares which the
aggregate offering price of the total number of Common Shares and/or equivalent
common shares so to be offered (and/or the aggregate initial conversion price of
the convertible securities so to be offered) would purchase at such current per
share market price and the denominator of which is the number of Common Shares
outstanding on such record date plus the number of additional Common Shares
and/or equivalent common shares to be offered for subscription or purchase (or
into which the convertible securities so to be offered are initially
convertible); PROVIDED, HOWEVER, that in no event shall the consideration to be
paid upon the exercise of one Right be less than the aggregate par value of the
shares of capital stock issuable upon exercise of one Right. In case such
subscription price may be paid in a consideration part or all of which is in a
form other than cash, the value of such consideration shall be as determined in
good faith by the Board of Directors of the Company, whose determination shall
be described in a statement filed with the Rights Agent. Common Shares owned by
or held for the account of the Company shall not be deemed outstanding for the
purpose of any such computation. Such adjustment shall be made successively
whenever such a record date is fixed, and in the event that such rights, options
or warrants are not so issued, the Purchase Price shall be adjusted to be the
Purchase Price which would then be in effect if such record date had not been
fixed.

                                       17

      (c) In the event that the Company fixes a record date for the making of a
distribution to all holders of Common Shares (including any such distribution
made in connection with a consolidation or merger in which the Company is the
continuing or surviving corporation) of evidences of indebtedness, cash (other
than a regular periodic cash dividend), assets, stock (other than a dividend
payable in Common Shares) or subscription rights, options or warrants (excluding
those referred to in Section 11(b)), the Purchase Price to be in effect after
such record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which is
the current per share market price of the Common Shares (as determined pursuant
to Section 11(d)) on such record date or, if earlier, the date on which Common
Shares begin to trade on an ex-dividend or when issued basis for such
distribution, less the fair market value (as determined in good faith by the
Board of Directors of the Company, whose determination shall be described in a
statement filed with the Rights Agent) of the portion of the evidences of
indebtedness, cash, assets or stock so to be distributed or of such subscription
rights, options or warrants applicable to one Common Share, and the denominator
of which is such current per share market price of the Common Shares; provided,
however that in no event shall the consideration to be paid upon the exercise of
one Right be less than the aggregate par value of the shares of capital stock
issuable upon exercise of one Right. Such adjustments shall be made successively
whenever such a record date is fixed; and in the event that such distribution is
not so made, the Purchase Price shall again be adjusted to be the Purchase Price
which would then be in effect if such record date had not been fixed.

      (d) For the purpose of any computation hereunder, the "CURRENT PER SHARE
MARKET PRICE" of Common Shares on any date shall be deemed to be the average of
the daily closing prices per share of such Common Shares for the 30 consecutive
Trading Days immediately prior to such date; PROVIDED, HOWEVER, that in the
event that the current per share market price of the Common Shares is determined
during a period following the announcement by the issuer of such Common Shares
of (A) a dividend or distribution on such Common Shares payable in such Common
Shares or securities convertible into such Common Shares (other than the Rights)
or (B) any subdivision, combination or reclassification of such Common Shares,
and prior to the expiration of 30 Trading Days after the ex-dividend date for
such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the current per
share market price shall be appropriately adjusted to take into account
ex-dividend trading or to reflect the current per share market price per Common
Share equivalent. The closing price for each day shall be the last sale price,
regular way, or, in case no such sale takes place on such day, the average of
the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the New York Stock Exchange or, if the Common
Shares are not listed or admitted to trading on the New York Stock Exchange, as
reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which the
Common Shares are listed or admitted to trading or, if the Common Shares are not
listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by Nasdaq or such other
system then in use, or, if on any such date the Common Shares are not quoted by
any such organization, the average of the closing bid and asked prices as
furnished by a professional market maker making a market in the Common Shares
selected by the Board of Directors of the Company. If the Common Shares are not
publicly held or not so listed or traded, or are not the subject of available

                                       18

bid and asked quotes, "current per share market price" shall mean the fair value
per share as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a statement filed with the Rights
Agent and shall be conclusive for all purposes.

      (e) Except as set forth below, no adjustment in the Purchase Price shall
be required unless such adjustment would require an increase or decrease of at
least 1% in such price; PROVIDED, HOWEVER, that any adjustments which by reason
of this Section 11(e) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent or to the nearest one
ten-thousandth of a Common Share or other security, as the case may be.
Notwithstanding the first sentence of this Section 11(e), any adjustment
required by this Section 11 shall be made no later than the earlier of (i) three
years from the date of the transaction which requires such adjustment and (ii)
the Expiration Date.

      (f) If as a result of an adjustment made pursuant to Section 11(a), the
holder of any Right thereafter exercised becomes entitled to receive any
securities of the Company other than Common Shares, thereafter the number and/or
kind of such other securities so receivable upon exercise of any Right (and/or
the Purchase Price in respect thereof) shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Shares (and the Purchase Price in respect
thereof) contained in this Section 11, and the provisions of Sections 7, 9, 10,
13 and 14 with respect to the Common Shares (and the Purchase Price in respect
thereof) shall apply on like terms to any such other securities (and the
Purchase Price in respect thereof).

      (g) All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of Common Shares issuable
from time to time hereunder upon exercise of the Rights, all subject to further
adjustment as provided herein.

      (h) Unless the Company has exercised its election as provided in Section
11(i), upon each adjustment of the Purchase Price pursuant to Section 11(b) or
Section 11(c), each Right outstanding immediately prior to the making of such
adjustment shall thereafter evidence the right to purchase, at the adjusted
Purchase Price, that number of Common Shares (calculated to the nearest one
ten-thousandth of a Common Share) obtained by (i) multiplying (x) the number of
Common Shares issuable upon exercise of a Right immediately prior to such
adjustment of the Purchase Price by (y) the Purchase Price in effect immediately
prior to such adjustment of the Purchase Price and (ii) dividing the product so
obtained by the Purchase Price in effect immediately after such adjustment of
the Purchase Price.

      (i) The Company may elect, on or after the date of any adjustment of the
Purchase Price, to adjust the number of Rights in substitution for any
adjustment in the number of Common Shares issuable upon the exercise of a Right.
Each of the Rights outstanding after such adjustment of the number of Rights
shall be exercisable for the number of Common Shares for which a Right was
exercisable immediately prior to such adjustment. Each Right held of record
prior to such adjustment of the number of Rights shall become that number of
Rights (calculated to the nearest one ten-thousandth) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase Price
by the Purchase Price in effect immediately after adjustment of the Purchase

                                       19

Price. The Company shall make a public announcement (with prompt written notice
thereof to the Rights Agent) of its election to adjust the number of Rights,
indicating the record date for the adjustment, and, if known at the time, the
amount of the adjustment to be made. Such record date may be the date on which
the Purchase Price is adjusted or any day thereafter, but, if the Right
Certificates have been issued, shall be at least 10 calendar days later than the
date of the public announcement. If Right Certificates have been issued, upon
each adjustment of the number of Rights pursuant to this Section 11(i), the
Company shall, as promptly as practicable, cause to be distributed to holders of
record of Right Certificates on such record date Right Certificates evidencing,
subject to the provisions of Section 14, the additional Rights to which such
holders are entitled as a result of such adjustment, or, at the option of the
Company, shall cause to be distributed to such holders of record in substitution
and replacement for the Right Certificates held by such holders prior to the
date of adjustment, and upon surrender thereof if required by the Company, new
Right Certificates evidencing all the Rights to which such holders are entitled
after such adjustment. Right Certificates so to be distributed shall be issued,
executed and delivered by the Company, and countersigned and delivered by the
Rights Agent in the manner provided for herein (and may bear, at the option of
the Company, the adjusted Purchase Price) and shall be registered in the names
of the holders of record of Right Certificates on the record date specified in
the public announcement.

      (j) Without respect to any adjustment or change in the Purchase Price
and/or the number and/or kind of securities issuable upon the exercise of the
Rights, the Right Certificates theretofore and thereafter issued may continue to
express the Purchase Price and the number and kind of securities which were
expressed in the initial Right Certificate issued hereunder.

      (k) Before taking any action that would cause an adjustment reducing the
Purchase Price below the then par value, if any, of the Common Shares issuable
upon exercise of the Rights, the Company shall take any corporate action which
may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue fully paid and nonassessable Common Shares or such
other securities, as the case may be, at such adjusted Purchase Price.

      (l) In any case in which this Section 11 otherwise requires that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer (with prompt written notice
thereof to the Rights Agent) until the occurrence of such event the issuance to
the holder of any Right exercised after such record date the number of Common
Shares or other securities of the Company, if any, issuable upon such exercise
over and above the number of Common Shares or other securities of the Company,
if any, issuable upon such exercise on the basis of the Purchase Price in effect
prior to such adjustment; provided, however, that the Company delivers to such
holder a due bill or other appropriate instrument evidencing such holder's right
to receive such additional Common Shares or other securities upon the occurrence
of the event requiring such adjustment.

      (m) Notwithstanding anything in this Agreement to the contrary, the
Company shall be entitled to make such adjustments in the number of Common
Shares which may be acquired upon exercise of the Rights and to make such
reductions in the Purchase Price, in addition to those adjustments expressly
required by this Section 11, as and to the extent that in its good faith
judgment the Board of Directors of the Company determines to be advisable in
order that any (i) consolidation or subdivision of the Common Shares, (ii)

                                       20

issuance wholly for cash of Common Shares at less than the current per share
market price therefor, (iii) issuance wholly for cash of Common Shares or
securities which by their terms are convertible into or exchangeable for Common
Shares, (iv) stock dividends, or (v) issuance of rights, options or warrants
referred to in this Section 11, hereafter made by the Company to holders of its
Common Shares is not taxable to such stockholders.

      (n) Notwithstanding anything in this Agreement to the contrary, in the
event that the Company at any time after the Record Date prior to the
Distribution Date (i) pays a dividend on the outstanding Common Shares payable
in Common Shares, (ii) subdivides the outstanding Common Shares, (iii) combines
the outstanding Common Shares into a smaller number of shares, or (iv) issues
any shares of its capital stock in a reclassification of the outstanding Common
Shares (including any such reclassification in connection with a consolidation
or merger in which the Company is the continuing or surviving corporation), the
number of Rights associated with each Common Share then outstanding, or issued
or delivered thereafter but prior to the Distribution Date, shall be
proportionately adjusted so that the number of Rights thereafter associated with
each Common Share following any such event equals the result obtained by
multiplying the number of Rights associated with each Common Share immediately
prior to such event by a fraction the numerator of which is the total number of
Common Shares outstanding immediately prior to the occurrence of the event and
the denominator of which is the total number of Common Shares outstanding
immediately following the occurrence of such event. The adjustments provided for
in this Section 11(n) shall be made successively whenever such a dividend is
paid or such a subdivision, combination or reclassification is effected.

      12. CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SECURITIES.
Whenever an adjustment is made or any event affecting the Rights or their
exercisability (including without limitation an event which causes Rights to
become null and void) occurs as provided in Section 11 or Section 13, the
Company shall promptly (a) prepare a certificate setting forth such adjustment
or describing such event and a brief, reasonably detailed statement of the
facts, computations and methodology accounting for such adjustment, (b) file
with the Rights Agent and with each transfer agent for the Common Shares a copy
of such certificate, and (c) if such adjustment is made after the Distribution
Date, mail a brief summary of such adjustment to each holder of a Right
Certificate in accordance with Section 26. The Rights Agent shall be fully
protected in relying on any such certificate and on any adjustment or statement
therein contained and shall have no duty or liability with respect to, and shall
not be deemed to have knowledge of, any adjustment or any such event unless and
until it shall have received such a certificate.

      13. CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS OR EARNING POWER.
(a) In the event that:

            (i) at any time after a Person has become an Acquiring Person, the
      Company consolidates with, or merges with or into, any other Person and
      the Company is not the continuing or surviving corporation of such
      consolidation or merger; or

            (ii) at any time after a Person has become an Acquiring Person, any
      Person consolidates with the Company, or merges with or into the Company,
      and the Company is the continuing or surviving corporation of such merger
      or consolidation and, in connection with such merger or consolidation, all
      or part of the Common Shares is changed into or exchanged for stock or
      other securities of any other Person or cash or any other property; or

                                       21

            (iii) at any time after a Person has become an Acquiring Person, the
      Company, directly or indirectly, sells or otherwise transfers (or one or
      more of its Subsidiaries sells or otherwise transfers), in one or more
      transactions, assets or earning power (including without limitation
      securities creating any obligation on the part of the Company and/or any
      of its Subsidiaries) representing in the aggregate more than 50% of the
      assets or earning power of the Company and its Subsidiaries (taken as a
      whole) to any Person or Persons other than the Company or one or more of
      its wholly owned Subsidiaries;

then, and in each such case, proper provision shall be made so that from and
after the latest of the Share Acquisition Date, the Distribution Date and the
date of the occurrence of such Flip-over Event (A) each holder of a Right
(except as otherwise provided in this Agreement) thereafter has the right to
receive, upon the exercise thereof in accordance with the terms of this
Agreement at an exercise price per Right equal to the product of the
then-current Purchase Price multiplied by the number of Common Shares for which
a Right was exercisable immediately prior to the Share Acquisition Date, such
number of duly authorized, validly issued, fully paid, non assessable and freely
tradeable Common Shares of the Issuer, free and clear of any liens, encumbrances
and other adverse claims and not subject to any rights of call or first refusal,
as equals the result obtained by (x) multiplying the then-current Purchase Price
by the number of Common Shares for which a Right is exercisable immediately
prior to the Share Acquisition Date and dividing that product by (y) 50% of the
current per share market price of the Common Shares of the Issuer (determined
pursuant to Section 11(d)), on the date of the occurrence of such Flip-over
Event; (B) the Issuer shall thereafter be liable for, and shall assume, by
virtue of the occurrence of such Flip-over Event, all the obligations and duties
of the Company pursuant to this Agreement; (C) the term "Company' shall
thereafter be deemed to refer to the Issuer; and (D) the Issuer shall take such
steps (including without limitation the reservation of a sufficient number of
its Common Shares to permit the exercise of all outstanding Rights) in
connection with such consummation as may be necessary to assure that the
provisions hereof are thereafter applicable, as nearly as reasonably may be
possible, in relation to its Common Shares thereafter deliverable upon the
exercise of the Rights.

      (b) For purposes of this Section 13, "ISSUER" means (i) in the case of any
Flip-over Event described in Sections 13(a)(i) or (ii) above, the Person that is
the continuing, surviving, resulting or acquiring Person (including the Company
as the continuing or surviving corporation of a transaction described in Section
13(a)(ii) above), and (ii) in the case of any Flip-over Event described in
Section 13(a)(iii) above, the Person that is the party receiving the greatest
portion of the assets or earning power (including without limitation securities
creating any obligation on the part of the Company and/or any of its
Subsidiaries) transferred pursuant to such transaction or transactions;
PROVIDED, HOWEVER, that, in any such case, (A) if (1) no class of equity
security of such Person is, at the time of such merger, consolidation or
transaction and has been continuously over the preceding 12-month period,
registered pursuant to Section 12 of the Exchange Act, and (2) such Person is a
Subsidiary, directly or indirectly, of another Person, a class of equity
security of which is and has been so registered, the term "Issuer" means such
other Person; and (B) in case such Person is a Subsidiary, directly or
indirectly, of more than one Person, a class of equity security of two or more
of which are and have been so registered, the term "Issuer" means whichever of

                                       22

such Persons is the issuer of the equity security having the greatest aggregate
market value. Notwithstanding the foregoing, if the Issuer in any of the
Flip-over Events listed above is not a corporation or other legal entity having
outstanding equity securities, then, and in each such case, (x) if the Issuer is
directly or indirectly wholly owned by a corporation or other legal entity
having outstanding equity securities, then all references to Common Shares of
the Issuer shall be deemed to be references to the Common Shares of the
corporation or other legal entity having outstanding equity securities which
ultimately controls the Issuer, and (y) if there is no such corporation or other
legal entity having outstanding equity securities, (I) proper provision shall be
made so that the Issuer creates or otherwise makes available for purposes of the
exercise of the Rights in accordance with the terms of this Agreement, a kind or
kinds of security or securities having a fair market value at least equal to the
economic value of the Common Shares which each holder of a Right would have been
entitled to receive if the Issuer had been a corporation or other legal entity
having outstanding equity securities; and (II) all other provisions of this
Agreement shall apply to the Issuer of such securities as if such securities
were Common Shares.

      (c) The Company shall not consummate any Flip-over Event if, (i) at the
time of or immediately after such Flip-over Event, there are or would be any
rights, warrants, instruments or securities outstanding or any agreements or
arrangements in effect which would eliminate or substantially diminish the
benefits intended to be afforded by the Rights, (ii) prior to, simultaneously
with or immediately after such Flip-over Event, the stockholders of the Person
who constitutes, or would constitute, the Issuer for purposes of Section 13(a)
shall have received a distribution of Rights previously owned by such Person or
any of its Affiliates or Associates, or (iii) the form or nature of the
organization of the Issuer would preclude or limit the exercisability of the
Rights. In addition, the Company shall not consummate any Flip-over Event unless
the Issuer has a sufficient number of authorized Common Shares (or other
securities as contemplated in Section 13(b) above) which have not been issued or
reserved for issuance to permit the exercise in full of the Rights in accordance
with this Section 13 and unless prior to such consummation the Company and the
Issuer have executed and delivered to the Rights Agent a supplemental agreement
providing for the terms set forth in subsections (a) and (b) of this Section 13
and further providing that as promptly as practicable after the consummation of
any Flip-over Event, the Issuer shall:

      (A) prepare and file a registration statement under the Securities Act
with respect to the Rights and the securities issuable upon exercise of the
Rights on an appropriate form, and use its best efforts to cause such
registration statement to (1) become effective as soon as practicable after such
filing and (2) remain effective (with a prospectus at all times meeting the
requirements of the Securities Act) until the Expiration Date;

      (B) take all such action as may be appropriate under, or to ensure
compliance with, the securities or "blue sky" laws of the various states in
connection with the exercisability of the Rights; and

      (C) deliver to holders of the Rights historical financial statements for
the Issuer and each of its Affiliates which comply in all respects with the
requirements for registration on Form 10 under the Exchange Act.

                                       23

      (d) The provisions of this Section 13 shall similarly apply to successive
mergers or consolidations or sales or other transfers. In the event that a
Flip-over Event occurs at any time after the occurrence of a Flip-in Event,
except for Rights that have become null and void pursuant to Section 11(a)(ii),
Rights that shall not have been previously exercised shall cease to be
exercisable in the manner provided in Section 11(a)(ii) and shall thereafter be
exercisable in the manner provided in Section 13(a).

      14. FRACTIONAL RIGHTS AND FRACTIONAL SECURITIES. (a) The Company shall not
be required to issue fractions of Rights or to distribute Right Certificates
which evidence fractional Rights. In lieu of such fractional Rights, the Company
shall pay as promptly as practicable to the registered holders of the Right
Certificates with regard to which such fractional Rights otherwise would be
issuable, an amount in cash equal to the same fraction of the current market
value of one Right. For the purposes of this Section 14(a), the current market
value of one Right is the closing price of the Rights for the Trading Day
immediately prior to the date on which such fractional Rights otherwise would
have been issuable. The closing price for any day is the last sale price,
regular way, or, in case no such sale takes place on such day, the average of
the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the New York Stock Exchange or, if the Rights
are not listed or admitted to trading on the New York Stock Exchange, as
reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which the
Rights are listed or admitted to trading or, if the Rights are not listed or
admitted to trading on any national securities exchange, the last quoted price
or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by Nasdaq or such other system then in use,
or, if on any such date the Rights are not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional
market maker making a market in the Rights selected by the Board of Directors of
the Company. If the Rights are not publicly held or are not so listed or traded,
or are not the subject of available bid and asked quotes, the current market
value of one Right shall mean the fair value thereof as determined in good faith
by the Board of Directors of the Company, whose determination shall be described
in a statement filed with the Rights Agent.

      (b) The Company shall not be required to issue fractions of Common Shares
or other securities issuable upon exercise or exchange of the Rights or to
distribute certificates which evidence any such fractional securities. In lieu
of issuing any such fractional securities, the Company may pay to any Person to
whom or which such fractional securities would otherwise be issuable an amount
in cash equal to the same fraction of the current market value of one such
security. For purposes of this Section 14(b), the current market value of one
Common Share or other security issuable upon the exercise or exchange of Rights
is the closing price thereof (as determined in the same manner as set forth for
Common Shares in the second sentence of Section 11(d)) for the Trading Day
immediately prior to the date of such exercise or exchange; PROVIDED, HOWEVER,
that if neither the Common Shares nor any such other securities are publicly
held or listed or admitted to trading on any national securities exchange, or
the subject of available bid and asked quotes, the current market value of one
Common Share or such other security shall mean the fair value thereof as
determined in good faith by the Board of Directors of the Company, whose
determination shall mean the fair value thereof as shall be described in a
statement filed with the Rights Agent.

                                       24

      (c) Whenever a payment for fractional Rights or fractional shares is to be
made by the Rights Agent, the Company shall (i) promptly prepare and deliver to
the Rights Agent a certificate setting forth in reasonable detail the facts
related to such payments and the prices and/or formulas utilized in calculating
such payments, and (ii) provide sufficient monies to the Rights Agent in the
form of fully collected funds to make such payments. The Rights Agent shall be
fully protected in relying upon such a certificate and shall have no duty with
respect to, and shall not be deemed to have knowledge of any payment for
fractional Rights or fractional shares under any Section of this Agreement
relating to the payment of fractional Rights or fractional shares unless and
until the Rights Agent shall have received such a certificate and sufficient
monies.

      15. RIGHTS OF ACTION. All rights of action in respect of this Agreement,
excepting the rights of action given to the Rights Agent under Section 18 and
Section 20, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Shares); and any registered holder of any Right Certificate (or, prior to
the Distribution Date, of the Common Shares), without the consent of the Rights
Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the holder of any Common Shares), may in his own behalf
and for his own benefit enforce, and may institute and maintain any suit, action
or proceeding against the Company to enforce, or otherwise act in respect of,
his right to exercise the Rights evidenced by such Right Certificate in the
manner provided in such Right Certificate and in this Agreement. Without
limiting the foregoing or any remedies available to the holders of Rights, it is
specifically acknowledged that the holders of Rights would not have an adequate
remedy at law for any breach by the Company of this Agreement and shall be
entitled to specific performance of the obligations under this Agreement, and
injunctive relief against actual or threatened violations by the Company of the
obligations of any Person subject to this Agreement.

      16. AGREEMENT OF RIGHTS HOLDERS. Every holder of a Right by accepting the
same consents and agrees with the Company and the Rights Agent and with every
other holder of a Right that:

      (a) Prior to the Distribution Date, the Rights are transferable only in
connection with the transfer of the Common Shares;

      (b) After the Distribution Date, the Right Certificates are transferable
only on the registry books of the Rights Agent if surrendered at the office of
the Rights Agent designated for such purpose, duly endorsed or accompanied by a
proper instrument of transfer;

      (c) The Company and the Rights Agent may deem and treat the person in
whose name the Right Certificate (or, prior to the Distribution Date, the
associated Common Share certificate) is registered as the absolute owner thereof
and of the Rights evidenced thereby (notwithstanding any notations of ownership
or writing on the Right Certificate or the associated Common Share certificate
made by anyone other than the Company or the Rights Agent) for all purposes
whatsoever, and neither the Company nor the Rights Agent shall be affected by
any notice to the contrary;

                                       25

      (d) Such holder expressly waives any right to receive any fractional
Rights and any fractional securities upon exercise or exchange of a Right,
except as otherwise provided in Section 14.

      (e) Notwithstanding anything in this Agreement to the contrary, neither
the Company nor the Rights Agent shall have any liability to any holder of a
Right or other Person as a result of its inability to perform any of its
obligations under this Agreement by reason of any preliminary or permanent
injunction or other order, decree or ruling (whether interlocutory or final)
issued by a court or by a governmental, regulatory, self-regulatory or
administrative agency or commission, or any statute, rule, regulation or
executive order promulgated or enacted by any governmental authority,
prohibiting or otherwise restraining performance of such obligation; provided,
however that the Company shall use its best efforts to have any such order,
decree or ruling lifted or otherwise overturned as soon as possible.

      17. RIGHT CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER. No holder, as such,
of any Right Certificate shall be entitled to vote, receive dividends, or be
deemed for any purpose the holder of Common Shares or any other securities of
the Company which may at any time be issuable upon the exercise of the Rights
represented thereby, nor shall anything contained herein or in any Right
Certificate be construed to confer upon the holder of any Right Certificate, as
such, any of the rights of a stockholder of the Company or any right to vote for
the election of Directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting stockholders (except as
provided in Section 25), or to receive dividends or subscription rights, or
otherwise, until the Right or Rights evidenced by such Right Certificate shall
have been exercised in accordance with the provisions of this Agreement or
exchanged pursuant to the provisions of Section 24.

      18. CONCERNING THE RIGHTS AGENT. (a) The Company shall pay to the Rights
Agent reasonable compensation for all services rendered by it hereunder and,
from time to time, on demand of the Rights Agent, its reasonable expenses and
counsel fees and other disbursements incurred in the preparation, delivery,
amendment and administration and execution of this Agreement and the exercise
and performance of its duties hereunder. The Company shall also indemnify the
Rights Agent for, and hold it harmless against, any loss, liability, damage,
judgment, fine, penalty, claim, demand, settlement, cost or expense (including,
without limitation, the reasonable fees and expenses of legal counsel), incurred
without gross negligence or bad faith on the part of the Rights Agent (which
gross negligence or bad faith must be determined by a final, non-appealable
order, judgment, decree or ruling of a court of competent jurisdiction), for any
action taken, suffered or omitted by the Rights Agent in connection with the
acceptance, administration, exercise and performance of its duties under this
Agreement. The costs and expenses incurred in enforcing this right of
indemnification shall be paid by the Company. The provisions of this Section 18
and Section 20 below shall survive the termination of this Agreement, the
exercise or expiration of the Rights and the resignation, replacement or removal
of the Rights Agent.

      (b) The Rights Agent shall be authorized and protected and shall incur no
liability for or in respect of any action taken, suffered, or omitted to be
taken by it in connection with its acceptance and administration of this

                                       26

Agreement and the exercise and performance of its duties hereunder, in reliance
upon any Right Certificate or certificate evidencing Common Shares or other
securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement or other paper or document believed by it to be genuine
and to be signed, executed, and, where necessary, verified or acknowledged, by
the proper Person or Persons or otherwise upon the advice of counsel as provided
in Section 20 hereof.

      19. MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT. (a) Any
Person into which the Rights Agent or any successor Rights Agent may be merged
or with which it may be consolidated, or any Person resulting from any merger or
consolidation to which the Rights Agent or any successor Rights Agent is a
party, or any Person succeeding to the shareholder services business of the
Rights Agent or any successor Rights Agent, shall be the successor to the Rights
Agent under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided that such Person
would be eligible for appointment as a successor Rights Agent under the
provisions of Section 21. If at the time such successor Rights Agent succeeds to
the agency created by this Agreement any of the Right Certificates shall have
been countersigned but not delivered, any such successor Rights Agent may adopt
the countersignature of the predecessor Rights Agent and deliver such Right
Certificates so countersigned; and if at that time any of the Right Certificates
shall not have been countersigned, any successor Rights Agent may countersign
such Right Certificates either in the name of the predecessor Rights Agent or in
the name of the successor Rights Agent; and in all such cases such Right
Certificates shall have the full force provided in the Right Certificates and in
this Agreement.

      (b) If at any time the name of the Rights Agent changes and at such time
any of the Right Certificates have been countersigned but not delivered, the
Rights Agent may adopt the countersignature under its prior name and deliver
Right Certificates so countersigned; and if at that time any of the Right
Certificates have not been countersigned, the Rights Agent may countersign such
Right Certificates either in its prior name or in its changed name; and in all
such cases such Right Certificates shall have the full force provided in the
Right Certificates and in this Agreement.

      20. RIGHTS AND DUTIES OF RIGHTS AGENT. The Rights Agent undertakes to
perform only the duties and obligations expressly imposed by this Agreement (and
no implied duties) upon the following terms and conditions, by all of which the
Company and the holders of Right Certificates, by their acceptance thereof,
shall be bound:

      (a) The Rights Agent may consult with legal counsel (who may be legal
counsel for the Company or an employee of the Rights Agent), and the advice or
opinion of such counsel shall be full and complete authorization and protection
to the Rights Agent and the Rights Agent shall incur no liability for or in
respect of any action taken, suffered or omitted by it in accordance with such
advice or opinion.

      (b) Whenever in the performance of its duties under this Agreement the
Rights Agent deems it necessary or desirable that any fact or matter (including
without limitation, the identity of an Acquiring Person and the determination of
the current per share market price of any security) be proved or established by
the Company prior to taking, suffering, or omitting to take any action

                                       27

hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the Chairman of the Board, the
President, any Vice President, the Secretary or the Treasurer of the Company and
delivered to the Rights Agent, and such certificate shall be full and complete
authorization and protection to the Rights Agent and the Rights Agent shall
incur no liability for or in respect of any action taken, suffered, or omitted
by it under the provisions of this Agreement in reliance upon such certificate.

      (c) The Rights Agent shall be liable hereunder to the Company and any
other Person only for its own gross negligence or bad faith (which gross
negligence or bad faith must be determined by a final, non-appealable order,
judgment, decree or ruling of a court of competent jurisdiction). Anything to
the contrary notwithstanding, in no event shall the Rights Agent be liable for
special, punitive, indirect, consequential or incidental loss or damage of any
kind whatsoever (including but not limited to lost profits), even if the Rights
Agent has been advised of the likelihood of such loss or damage. Any liability
of the Rights Agent under this Agreement shall be limited to the amount of
annual fees paid by the Company to the Rights Agent.

      (d) The Rights Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained in this Agreement or in the Right
Certificates (except its countersignature thereof) or be required to verify the
same, but all such statements and recitals are and shall be deemed to have been
made by the Company only.

      (e) The Rights Agent shall not have any liability for or be under any
responsibility in respect of the validity of this Agreement or the execution and
delivery hereof (except the due execution and delivery hereof by the Rights
Agent) or in respect of the validity or execution of any Right Certificate
(except its countersignature thereof); nor shall it be responsible for any
breach by the Company of any covenant or condition contained in this Agreement
or in any Right Certificate; nor shall it be responsible for any change in the
exercisability of the Rights (including the Rights becoming null and void
pursuant to Section 11(a)(ii) hereof) or any change or adjustment in the terms
of the Rights (including the manner, method or amount thereof) provided for in
Section 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that
would require any such change or adjustment (except with respect to the exercise
of Rights evidenced by Right Certificates after receipt of the certificate
described in Section 12 hereof, upon which the Rights Agent may rely); nor shall
it by any act hereunder be deemed to make any representation or warranty as to
the authorization or reservation of any shares of stock or other securities to
be issued pursuant to this Agreement or any Right Certificate or as to whether
any shares of stock or other securities shall, when issued, be validly
authorized and issued, fully paid and nonassessable.

      (f) The Company shall perform, execute, acknowledge and deliver or cause
to be performed, executed, acknowledged and delivered all such further and other
acts, instruments and assurances as may reasonably be required by the Rights
Agent for the carrying out or performing by the Rights Agent of the provisions
of this Agreement.

      (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
one of the Chairman of the Board, the President, any Vice President, the
Secretary or the Treasurer of the Company, and to apply to such officers for

                                       28

advice or instructions in connection with its duties, and such instructions
shall be full authorization and protection to the Rights Agent and the Rights
Agent shall not be liable for or in respect of any action taken, suffered or
omitted by it in accordance with instructions of any such officer or for any
delay in acting while waiting for those instructions. The Rights Agent shall be
fully authorized and protected in relying upon the most recent instructions
received by any such officer. Any application by the Rights Agent for written
instructions from the Company may, at the option of the Rights Agent, set forth
in writing any action proposed to be taken, suffered or omitted by the Rights
Agent under this Agreement and the date on and/or after which such action shall
be taken or suffered or such omission shall be effective. The Rights Agent shall
not be liable for any action taken or suffered by, or omission of, the Rights
Agent in accordance with a proposal included in any such application on or after
the date specified in such application (which date shall not be less than five
Business Days after the date any officer of the Company actually receives such
application, unless any such officer shall have consented in writing to an
earlier date) unless, prior to taking any such action (or the effective date in
the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken,
suffered or omitted.

      (h) The Rights Agent and any stockholder, affiliate, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights or other
securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though the Rights Agent were not
Rights Agent under this Agreement. Nothing herein shall preclude the Rights
Agent or any such stockholder, affiliate, director, officer or employee from
acting in any other capacity for the Company or for any other Person.

      (i) The Rights Agent may execute and exercise any of the rights or powers
hereby vested in it or perform any duty hereunder either itself (through its
directors, officers and employees) or by or through its attorneys or agents, and
the Rights Agent shall not be answerable or accountable for any act, default,
neglect or misconduct of any such attorneys or agents or for any loss to the
Company or any other Person resulting from any such act, default, neglect or
misconduct, absent gross negligence or bad faith in the selection and continued
employment thereof (which gross negligence or bad faith must be determined by a
final, non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction). The Rights Agent shall not be under any duty or responsibility to
ensure compliance with any applicable federal or state securities laws in
connection with the issuance, transfer or exchange of Right Certificates.

      (j) If, with respect to any Right Certificate surrendered to the Rights
Agent for exercise, transfer, split up, combination or exchange, the certificate
attached to the form of assignment or form of election to purchase, as the case
may be, has either not been completed or indicates an affirmative response to
clause 1 or 2 thereof, the Rights Agent shall not take any further action with
respect to such requested exercise, transfer, split up, combination or exchange
without first consulting with the Company, and shall thereafter take further
action with respect thereto only in accordance with the Company's written
instructions.

      (k) No provision of this Agreement shall require the Rights Agent to
expend or risk its own funds or otherwise incur any financial liability in the

                                       29

performance of any of its duties hereunder or in the exercise of its rights if
it believes that repayment of such funds or adequate indemnification against
such risk or liability is not reasonably assured to it.

      21. CHANGE OF RIGHTS AGENT. The Rights Agent or any successor Rights Agent
may resign and be discharged from its duties under this Agreement upon 30
calendar days' notice in writing mailed to the Company and to each transfer
agent of the Common Shares known to the Rights Agent by registered or certified
mail, or by nationally recognized overnight carrier, and to the holders of the
Right Certificates by first class mail. The Company may remove the Rights Agent
or any successor Rights Agent upon 30 calendar days' notice in writing, mailed
to the Rights Agent or successor Rights Agent, as the case may be, and to each
transfer agent of the Common Shares by registered or certified mail, and to the
holders of the Right Certificates by first class mail. If the Rights Agent
resigns or is removed or otherwise becomes incapable of acting, the Company
shall appoint a successor to the Rights Agent. If the Company fails to make such
appointment within a period of 30 calendar days after giving notice of such
removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Right Certificate (who shall, with such notice, submit his Right Certificate for
inspection by the Company), then the registered holder of any Right Certificate
may apply to any court of competent jurisdiction for the appointment of a new
Rights Agent. Any successor Rights Agent, whether appointed by the Company or by
such a court, shall be (a) a Person organized and doing business under the laws
of the United States or of any State thereof, in good standing, which is
authorized under such laws to exercise corporate trust or stock transfer powers
and is subject to supervision or examination by federal or state authority and
which has at the time of its appointment as Rights Agent a combined capital and
surplus of at least $50 million or (b) an Affiliate of such a Person. After
appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights
Agent without further act or deed; but the predecessor Rights Agent shall
deliver and transfer to the successor Rights Agent any property at the time held
by it hereunder, and execute and deliver any further assurance, conveyance, act
or deed necessary for the purpose. Not later than the effective date of any such
appointment, the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Common Shares, and mail
a notice thereof in writing to the registered holders of the Right Certificates.
Failure to give any notice provided for in this Section 21, however, or any
defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as
the case may be.

      22. ISSUANCE OF NEW RIGHT CERTIFICATES. Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may,
at its option, issue new Right Certificates evidencing Rights in such form as
may be approved by its Board of Directors to reflect any adjustment or change in
the Purchase Price per share and the number or kind of securities issuable upon
exercise of the Rights made in accordance with the provisions of this Agreement.
In addition, in connection with the issuance or sale by the Company of Common
Shares following the Distribution Date and prior to the Expiration Date, the
Company (a) shall, with respect to Common Shares so issued or sold pursuant to
the exercise, exchange or conversion of securities (other than Rights) issued
prior to the Distribution Date which are exercisable or exchangeable for, or
convertible into Common Shares, and (b) may, in any other case, if deemed
necessary, appropriate or desirable by the Board of Directors of the Company,
issue Right Certificates representing an equivalent number of Rights as would
have been issued in respect of such Common Shares if they had been issued or
sold prior to the Distribution Date, as appropriately adjusted as provided
herein as if they had been so issued or sold; provided, however, that (i) no

                                       30

such Right Certificate shall be issued if, and to the extent that, in its good
faith judgment the Board of Directors of the Company determines that the
issuance of such Right Certificate could have a material adverse tax consequence
to the Company or to the Person to whom or which such Right Certificate
otherwise would be issued and (ii) no such Right Certificate shall be issued if,
and to the extent that, appropriate adjustment otherwise has been made in lieu
of the issuance thereof.

      23. REDEMPTION. (a) Prior to the Expiration Date, the Board of Directors
of the Company may, at its option, redeem all but not less than all of the
then-outstanding Rights at the Redemption Price at any time prior to the Close
of Business on the later of (i) the Distribution Date and (ii) Share Acquisition
Date. Any such redemption shall be effective immediately upon the action of the
Board of Directors of the Company ordering the same, unless such action of the
Board of Directors of the Company expressly provides that such redemption shall
be effective at a subsequent time or upon the occurrence or nonoccurrence of one
or more specified events (in which case such redemption shall be effective in
accordance with the provisions of such action of the Board of Directors of the
Company).

      (b) Immediately upon the effectiveness of the redemption of the Rights as
provided in Section 23(a), and without any further action and without any
notice, the right to exercise the Rights shall terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price,
without interest thereon. Promptly after the effectiveness of the redemption of
the Rights as provided in Section 23(a), the Company shall publicly announce
such redemption (with prompt written notice thereof to the Rights Agent) and,
within 10 calendar days thereafter, shall give notice of such redemption to the
holders of the then-outstanding Rights by mailing such notice to all such
holders at their last addresses as they appear upon the registry books of the
Company; provided, however, that the failure to give, or any defect in, any such
notice shall not affect the legality or validity of the redemption of the
Rights. Any notice that is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. The notice of redemption
mailed to the holders of Rights shall state the method by which the payment of
the Redemption Price shall be made. The Company may, at its option, pay the
Redemption Price in cash, Common Shares (based upon the current per share market
price of the Common Shares (determined pursuant to Section 11(d)) at the time of
redemption), or any other form of consideration deemed appropriate by the Board
of Directors of the Company (based upon the fair market value of such other
consideration, determined by the Board of Directors of the Company in good
faith) or any combination thereof. The Company may, at its option, combine the
payment of the Redemption Price with any other payment being made concurrently
to holders of Common Shares and, to the extent that any such other payment is
discretionary, may reduce the amount thereof on account of the concurrent
payment of the Redemption Price. If legal or contractual restrictions prevent
the Company from paying the Redemption Price (in the form of consideration
deemed appropriate by the Board of Directors) at the time of redemption, the
Company shall pay the Redemption Price, without interest, promptly after such
time as the Company ceases to be so prevented from paying the Redemption Price.

      24. EXCHANGE. (a) The Board of Directors of the Company may, at its
option, at any time after the later of the Share Acquisition Date and the

                                       31

Distribution Date, exchange all or part of the then-outstanding and exercisable
Rights (which shall not include Rights that have become null and void pursuant
to the provisions of Section 11(a)(ii)) for Common Shares at an exchange ratio
of one Common Share per Right, appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the Record Date
(such exchange ratio being hereinafter referred to as the "EXCHANGE RATIO"). Any
such exchange shall be effective immediately upon the action of the Board of
Directors of the Company ordering the same, unless such action of the Board of
Directors of the Company expressly provides that such exchange shall be
effective at a subsequent time or upon the occurrence or nonoccurrence of one or
more specified events (in which case such exchange shall be effective in
accordance with the provisions of such action of the Board of Directors of the
Company). Notwithstanding the foregoing, the Board of Directors of the Company
shall not be empowered to effect such exchange at any time after any Person
(other than the Company, any Related Person or any Exempt Person), who or which,
together with all Affiliates and Associates of such Person, becomes the
Beneficial Owner of 50% or more of the then-outstanding Common Shares.

      (b) Immediately upon the effectiveness of the exchange of any Rights as
provided in Section 24(a), and without any further action and without any
notice, the right to exercise such Rights shall terminate and the only right
with respect to such Rights thereafter of the holder of such Rights shall be to
receive that number of Common Shares equal to the number of such Rights held by
such holder multiplied by the Exchange Ratio. Promptly after the effectiveness
of the exchange of any Rights as provided in Section 24(a), the Company shall
publicly announce such exchange (with prompt written notice thereof to the
Rights Agreement) and, within 10 calendar days thereafter, shall give notice of
such exchange to all of the holders of such Rights at their last addresses as
they appear upon the registry books of the Rights Agent; PROVIDED, HOWEVER, that
the failure to give, or any defect in, such notice shall not affect the legality
or validity of such exchange. Any notice that is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the notice.
Each such notice of exchange shall state the method by which the exchange of the
Common Shares for Rights shall be effected and, in the event of any partial
exchange, the number of Rights which shall be exchanged. Any partial exchange
shall be effected pro rata based on the number of Rights (other than Rights
which have become null and void pursuant to the provisions of Section 11(a)(ii))
held by each holder of Rights.

      (c) In any exchange pursuant to this Section 24, the Company, at its
option, may substitute for any Common Share exchangeable for a Right (i)
equivalent common shares (as such term is used in Section 11(a)(iii)), (ii)
cash, (iii) debt securities of the Company, (iv) other assets, or (v) any
combination of the foregoing, in any event having an aggregate value, as
determined in good faith by the Board of Directors of the Company (whose
determination shall be described in a statement filed with the Rights Agent),
equal to the current market value of one Common Share (determined pursuant to
Section 11(d)) on the Trading Day immediately preceding the date of the
effectiveness of the exchange pursuant to this Section 24.

      25. NOTICE OF CERTAIN EVENTS. (a) If, after the Distribution Date, the
Company proposes (i) to pay any dividend payable in stock of any class to the
holders of Common Shares or to make any other distribution to the holders of
Common Shares (other than a regular periodic cash dividend), (ii) to offer to
the holders of Common Shares rights, options or warrants to subscribe for or to
purchase any additional Common Shares or shares of stock of any class or any

                                       32

other securities, rights, options or warrants, (iii) to effect any
reclassification of its Common Shares (other than a reclassification involving
only the subdivision of outstanding Common Shares), (iv) to effect any
consolidation or merger into or with, or to effect any sale or other transfer
(or to permit one or more of its Subsidiaries to effect any sale or other
transfer), in one or more transactions, of assets or earning power (including,
without limitation, securities creating any obligation on the part of the
Company and/or any of its Subsidiaries) representing more than 50% of the assets
and earning power of the Company and its Subsidiaries, taken as a whole, to any
other Person or Persons other than the Company or one or more of its wholly
owned Subsidiaries, (v) to effect the liquidation, dissolution or winding up of
the Company, or (vi) to declare or pay any dividend on the Common Shares payable
in Common Shares or to effect a subdivision, combination or reclassification of
the Common Shares then, in each such case, the Company shall as soon as
practicable thereafter give to the Rights Agent and to each holder of a Right
Certificate, in accordance with Section 26, a notice of such proposed action,
which specifies the record date for the purposes of such stock dividend,
distribution or offering of rights, options or warrants, or the date on which
such reclassification, consolidation, merger, sale, disposition, transfer,
liquidation, dissolution or winding up is to take place and the date of
participation therein by the holders of the Common Shares, if any such date is
to be fixed, and such notice shall be so given, in the case of any action
covered by clause (i) or (ii) above, at least 10 calendar days prior to the
record date for determining holders of the Common Shares for purposes of such
action, and, in the case of any such other action, at least 10 calendar days
prior to the date of the taking of such proposed action or the date of
participation therein by the holders of the Common Shares, whichever is the
earlier.

      (b) In case any Triggering Event occurs, then, in any such case, the
Company shall as soon as practicable thereafter give to the Rights Agent and
each holder of a Right Certificate, in accordance with Section 26, a notice of
the occurrence of such event, which notice specifies the event and the
consequences of the event to holders of Rights.

      26. NOTICES. (a) Notices or demands authorized by this Agreement to be
given or made by the Rights Agent or by the holder of any Right Certificate to
or on the Company shall be sufficiently given or made if sent by first class
mail, postage prepaid, addressed (until another address is filed in writing with
the Rights Agent) as follows:

                        Del Global Technologies Corp.
                        11550 West King Street
                        Franklin Park, IL 60131
                        Attention: Chief Executive Officer

      (b) Subject to the provisions of Section 21 hereof, any notice or demand
authorized by this Agreement to be given or made by the Company or by the holder
of any Right Certificate to or on the Rights Agent shall be sufficiently given
or made if sent by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Company) as follows:

                        Mellon Investor Services LLC
                        Newport Office Center VII
                        480 Washington Boulevard
                        Jersey City, NJ 07310
                        Attention:  Manager

                                       33

      (c) Notices or demands authorized by this Agreement to be given or made by
the Company or the Rights Agent to the holder of any Right Certificate (or, if
prior to the Distribution Date, to the holder of any certificate evidencing
Common Shares) shall be sufficiently given or made if sent by first class mail,
postage prepaid, addressed to such holder at the address of such holder as shown
on the registry books of the Company.

      27. SUPPLEMENTS AND AMENDMENTS. Prior to the time at which the Rights
cease to be redeemable pursuant to Section 23, and subject to the last sentence
of this Section 27, the Company may in its sole and absolute discretion
supplement or amend any provision of this Agreement in any respect without the
approval of any holders of Rights or Common Shares. From and after the time at
which the Rights cease to be redeemable pursuant to Section 23, and subject to
the last sentence of this Section 27, the Company may supplement or amend this
Agreement without the approval of any holders of Rights or Common Shares in
order (i) to cure any ambiguity, (ii) to correct or supplement any provision
contained herein which may be defective or inconsistent with any other
provisions herein, (iii) to shorten or lengthen any time period hereunder, or
(iv) to supplement or amend the provisions hereunder in any manner which the
Company may deem necessary or desirable, any such supplement or amendment to be
evidenced by a writing signed by the Company and the Rights Agent; provided,
however, that no such supplement or amendment shall adversely affect the
interests of the holders of Rights as such (other than an Acquiring Person or an
Affiliate or Associate of an Acquiring Person), and no such supplement or
amendment shall cause the Rights again to become redeemable or cause this
Agreement again to become supplementable or amendable otherwise than in
accordance with the provisions of this sentence. Without limiting the generality
or effect of the foregoing, this Agreement may be supplemented or amended to
provide for such voting powers for the Rights and such procedures for the
exercise thereof, if any, as the Board of Directors of the Company may determine
to be appropriate. Upon the delivery of a certificate from an appropriate
officer of the Company that states that the proposed supplement or amendment is
in compliance with the terms of this Section 27, the Rights Agent shall execute
such supplement or amendment. Notwithstanding anything contained in this
Agreement to the contrary, (a) no supplement or amendment may be made which
decreases the stated Redemption Price to an amount less than $0.01 per Right and
(b) neither the Company nor the Rights Agent shall be obligated to enter into
any supplement or amendment that affects the Rights Agent's own rights, duties,
obligations or immunities under this Agreement.

      28. SUCCESSORS: CERTAIN COVENANTS. All the covenants and provisions of
this Agreement by or for the benefit of the Company or the Rights Agent shall be
binding on and inure to the benefit of their respective successors and assigns
hereunder.

      29. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent, and
the registered holders of the Right Certificates (and, prior to the Distribution
Date, the Common Shares) any legal or equitable right, remedy or claim under
this Agreement. This Agreement shall be for the sole and exclusive benefit of
the Company, the Rights Agent, and the registered holders of the Right
Certificates (or prior to the Distribution Date, the Common Shares).

                                       34

      30. GOVERNING LAW. This Agreement, each Right and each Right Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of New York and for all purposes shall be governed by and construed in
accordance with the laws of such state applicable to contracts to be made solely
by residents of such state and performed entirely within such state.

      31. SEVERABILITY. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be
invalid, illegal or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated; provided,
however, that nothing contained in this Section 31 shall affect the ability of
the Company under the provisions of Section 27 to supplement or amend this
Agreement to replace such invalid, illegal or unenforceable term, provision,
covenant or restriction with a legal, valid and enforceable term, provision,
covenant or restriction.

      32. DESCRIPTIVE HEADINGS, ETC. Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.
Unless otherwise expressly provided, references herein to Articles, Sections and
Exhibits are to Articles, Sections and Exhibits of or to this Agreement.

      33. DETERMINATIONS AND ACTIONS BY THE BOARD. For all purposes of this
Agreement, any calculation of the number of Common Shares outstanding at any
particular time, including for purposes of determining the particular percentage
of such outstanding Common Shares of which any Person is the Beneficial Owner,
shall be made in accordance with, as applicable, the last sentence of Rule
13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act or
the provisions of Section 382 of the Code, or any successor provision or
replacement provision. The Board of Directors of the Company shall have the
exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board of Directors of the Company
or to the Company, or as may be necessary or advisable in the administration of
this Agreement, including without limitation the right and power to (i)
interpret the provisions of this Agreement and (ii) make all determinations
deemed necessary or advisable for the administration of this Agreement
(including without limitation any determination contemplated by Section 1(a) or
any determination as to whether particular Rights shall have become null and
void). All such actions, calculations, interpretations and determinations
(including, for purposes of clause (y) below, any omission with respect to any
of the foregoing) which are done or made by the Board of Directors of the
Company in good faith shall (x) be final, conclusive and binding on the Company,
the Rights Agent, the holders of the Rights and all other parties and (y) not
subject the Board of Directors of the Company to any liability to the holders of
the Rights. The Rights Agent is entitled always to assume the Board of Directors
of the Company acted in good faith and shall be fully protected and incur no
liability in reliance thereon.

      34. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.

                                       35

                         [Signatures on Following Page]

                                       36

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, and attested, all as of the day and year first above written.

Attest:                             DEL GLOBAL TECHNOLOGIES CORP.

By: /s/ Sandra J. Kline             By: /s/ Mark A. Zorko
    --------------------------          ---------------------------------------
Title: Notary Public                Name:  Mark A. Zorko
                                    Title: Chief Financial Officer

Attest:                             MELLON INVESTOR SERVICES LLC

By: /s/ Lee Bowalsky                By: /s/ John J. Boryczki
    ---------------------------         ------------------------------------
Title: Client Relationship          Name: John J. Boryczki
       Executive                    Title: Client Relationship Executive

                                       37

                                                                       EXHIBIT A

                            FORM OF RIGHT CERTIFICATE

Certificate No. R-__________________                    _________________ Rights

      NOT EXERCISABLE AFTER FEBRUARY 2, 2017 OR EARLIER IF REDEEMED, EXCHANGED
OR AMENDED. THE RIGHTS ARE SUBJECT TO REDEMPTION, EXCHANGE AND AMENDMENT AT THE
OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER
CERTAIN CIRCUMSTANCES SPECIFIED IN THE RIGHTS AGREEMENT, RIGHTS THAT ARE OR WERE
BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR AN ASSOCIATE OF AN
ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR A
TRANSFEREE THEREOF MAY BECOME NULL AND VOID.

                                Right Certificate

                          DEL GLOBAL TECHNOLOGIES CORP.

      This certifies that ______________________________, or registered assigns,
is the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions, and conditions of
the Rights Agreement, dated as of January 22, 2007 (the "RIGHTS AGREEMENT"),
between Del Global Technologies Corp., a New York corporation (the "COMPANY"),
and Mellon Investor Services LLC, a New Jersey limited liability company, as
Rights Agent (the "RIGHTS AGENT"), to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to 5:00 p.m., New York, New York time on the Expiration Date (as such
term is defined in the Rights Agreement) at the office of the Rights Agent
designated for such purpose, or at the office of its successor as Rights Agent,
one fully paid nonassessable share of Common Stock, par value $0.10 per share
(the "COMMON Shares"), of the Company, at a purchase price of $25.00 per Common
Share (the "PURCHASE PRICE"), upon presentation and surrender of this Right
Certificate with the Form of Election to Purchase and related Certificate duly
executed. If this Right Certificate is exercised in part, the holder shall be
entitled to receive upon surrender hereof another Right Certificate or Right
Certificates for the number of whole Rights not exercised. The number of Rights
evidenced by this Right Certificate (and the number of Common Shares which may
be purchased upon exercise thereof) set forth above, and the Purchase Price set
forth above, are the number and Purchase Price as of the date of the Rights
Agreement, based on the Common Shares as constituted at such date.

      As provided in the Rights Agreement, the Purchase Price and/or the number
and/or kind of securities issuable upon the exercise of the Rights evidenced by
this Right Certificate are subject to adjustment upon the occurrence of certain
events.

      This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are

                                      A-1

hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities of the Rights Agent,
the Company and the holders of the Right Certificates, which limitations of
rights include the temporary suspension of the exercisability of the Rights
under the circumstances specified in the Rights Agreement. Copies of the Rights
Agreement are on file at the abovementioned office of the Rights Agent and can
be obtained from the Company without charge upon written request therefor. Terms
used herein with initial capital letters and not defined herein are used herein
with the meanings ascribed thereto in the Rights Agreement.

      Pursuant to the Rights Agreement, from and after the occurrence of a
Flip-in Event, any Rights that are Beneficially Owned by (i) any Acquiring
Person (or any Affiliate or Associate of any Acquiring Person), (ii) a
transferee of any Acquiring Person (or any such Affiliate or Associate) who
becomes a transferee after the occurrence of a Flip-in Event, or (iii) a
transferee of any Acquiring Person (or any such Affiliate or Associate) who
became a transferee prior to or concurrently with the Flip-in Event pursuant to
either (a) a transfer from an Acquiring Person to holders of its equity
securities or to any Person with whom it has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (b) a transfer
which the Board of Directors of the Company has determined is part of a plan,
arrangement or understanding which has the purpose or effect of avoiding certain
provisions of the Rights Agreement, and subsequent transferees of any of such
Persons, shall be null and void without any further action and any holder of
such Rights shall thereafter have no rights whatsoever with respect to such
Rights under any provision of the Rights Agreement. From and after the
occurrence of a Flip-in Event, no Right Certificate shall be issued that
represents Rights that are or have become null and void pursuant to the
provisions of the Rights Agreement, and any Right Certificate delivered to the
Rights Agent that represents Rights that are or have become null and void
pursuant to the provisions of the Rights Agreement shall be canceled.

      This Right Certificate, with or without other Right Certificates, may be
transferred, split up, combined or exchanged for another Right Certificate or
Right Certificates entitling the holder to purchase a like number of Common
Shares (or other securities, as the case may be) as the Right Certificate or
Right Certificates surrendered entitled such holder (or former holder in the
case of a transfer) to purchase, upon presentation and surrender hereof at the
office of the Rights Agent designated for such purpose, with the Form of
Assignment (if appropriate) and the related Certificate duly executed.

      Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Certificate may be redeemed by the Company at its option at a redemption
price of $0.01 per Right or may be exchanged in whole or in part. The Rights
Agreement may be supplemented and amended by the Company, as provided therein.

      The Company is not required to issue fractions of Common Shares or other
securities issuable upon the exercise of any Right or Rights evidenced hereby.
In lieu of issuing such fractional Common Shares or other securities, the
Company may make a cash payment, as provided in the Rights Agreement.

      No holder of this Right Certificate, as such, shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of the Common Shares

                                      A-2

or of any other securities of the Company which may at any time be issuable upon
the exercise of the Right or Rights represented hereby, nor shall anything
contained herein or in the Rights Agreement be construed to confer upon the
holder hereof, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in the Rights Agreement), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by this Right Certificate have been exercised in accordance with the
provisions of the Rights Agreement.

      This Right Certificate shall not be valid or obligatory for any purpose
until it has been countersigned by the Rights Agent.

      WITNESS the facsimile signature of the proper officers of the Company and
its corporate seal.

Dated as of _____________________.

ATTEST:                                  DEL GLOBAL TECHNOLOGIES CORP.

---------------------------------        By:
                                            ---------------------------------
                                            Name:
                                            Title:

Countersigned:

Mellon Investor Services LLC,
As Rights Agent

By:
   ------------------------------
   Authorized Signature

                                      A-3

                    Form of Reverse Side of Right Certificate

                               FORM OF ASSIGNMENT

                (To be executed by the registered holder if such
                holder desires to transfer the Right Certificate)

      FOR VALUE RECEIVED, __________________ hereby sells, assigns and transfers
unto ________________________________________________________________________
                 (Please print name and address of transferee)

___________________________________________________________________________ this
Right Certificate, together with all right, title and interest therein, and does
hereby irrevocably constitute and appoint ______________________ Attorney, to
transfer the within Right Certificate on the books of the within-named Company,
with full power of substitution.

Dated : __________________________

                                    _________________________________
                                    Signature

Signature Guaranteed: __________________________

       Signatures must be guaranteed by a participant in the Securities Transfer
Agent Medallion Program, the Stock Exchanges Medallion Program or the New York
Stock Exchange, Inc. Medallion Signature Program.

                                      A-4

                                   CERTIFICATE

      The undersigned hereby certifies by checking the appropriate boxes that:

      (1) the Rights evidenced by this Right Certificate [ ] are [ ] are not
being sold, assigned, transferred, split up, combined or exchanged by or on
behalf of a Person who is or was an Acquiring Person or an Affiliate or
Associate of any such Person (as such terms are defined in the Rights
Agreement);

      (2) after due inquiry and to the best knowledge of the undersigned, it [ ]
did [ ] did not acquire the Rights evidenced by this Right Certificate from any
Person who is, was or became an Acquiring Person or an Affiliate or Associate of
an Acquiring Person.

Dated: _______________________
                                              _________________________________
                                              Signature

                                      A-5

                          FORM OF ELECTION TO PURCHASE

                      (To be executed if holder desires to
                         exercise the Right Certificate)

To Del Global Technologies Corp.:

      The undersigned hereby irrevocably elects to exercise ___________ Rights
represented by this Right Certificate to purchase the Common Shares or other
securities issuable upon the exercise of such Rights and requests that
certificates for such securities be issued in the name of and delivered to:

Please insert social
security or other identifying number:___________________________________________

________________________________________________________________________________
                         (Please print name and address)

________________________________________________________________________________

If such number of Rights is not all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:

Please insert social
security or other identifying number:___________________________________________

________________________________________________________________________________
                         (Please print name and address)

________________________________________________________________________________

Dated: ___________________________________

                                    _____________________________________
                                    Signature

Signature Guaranteed: _____________________

       Signatures must be guaranteed by a participant in the Securities Transfer
Agent Medallion Program, the Stock Exchanges Medallion Program or the New York
Stock Exchange, Inc. Medallion Signature Program.

                                      A-6

                                   CERTIFICATE

      The undersigned hereby certifies by checking the appropriate boxes that:

      (1) the Rights evidenced by this Right Certificate [ ] are [ ] are not
being exercised by or on behalf of a Person who is or was an Acquiring Person or
an Affiliate or Associate of any such Person (as such terms are defined pursuant
to the Rights Agreement);

      (2) after due inquiry and to the best knowledge of the undersigned, it [ ]
did [ ] did not acquire the Rights evidenced by this Right Certificate from any
Person who is, was, or became an Acquiring Person or an Affiliate or Associate
of an Acquiring Person.

Dated: ______________________________

                                    _________________________________
                                    Signature

                                     NOTICE

      SIGNATURES ON THE FOREGOING FORM OF ASSIGNMENT AND FORM OF ELECTION TO
PURCHASE AND IN THE RELATED CERTIFICATES MUST CORRESPOND TO THE NAME AS WRITTEN
UPON THE FACE OF THIS RIGHT CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION
OR ENLARGEMENT OR ANY CHANGE WHATSOEVER.

      SIGNATURES MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS,
STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN
AN APPROVED MEDALLION SIGNATURE PROGRAM) PURSUANT TO RULE 17AD-15 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

       IN THE EVENT THE CERTIFICATION SET FORTH ABOVE IN THE FORM OF ASSIGNMENT
OR THE FORM OF ELECTION TO PURCHASE, AS THE CASE MAY BE, IS NOT COMPLETED, THE
COMPANY AND THE RIGHTS AGENT WILL DEEM THE BENEFICIAL OWNER OF THE RIGHTS
EVIDENCED BY THIS RIGHT CERTIFICATE TO BE AN ACQUIRING PERSON OR AN AFFILIATE OR
ASSOCIATE THEREOF (AS DEFINED IN THE AGREEMENT) AND SUCH ASSIGNMENT OR ELECTION
TO PURCHASE WILL NOT BE HONORED.

                                      A-7

                                                                       EXHIBIT B

                      SUMMARY OF RIGHTS TO PURCHASE COMMON STOCK

      On January 22, 2007, the Board of Directors of Del Global Technologies
Corp. adopted a rights plan and declared a dividend of one common share purchase
right for each outstanding share of our common stock. The dividend is payable on
February 2, 2007 to our stockholders of record on that date. The terms of the
rights and the rights plan are set forth in a Rights Agreement, dated as of
January 22, 2007, by and between Del Global Technologies Corp. and Mellon
Investor Services LLC, as rights agent.

      This summary of rights provides a general description of the rights plan.
Because it is only a summary, this description should be read together with the
entire rights plan, which we incorporate in this summary by reference. Upon
written request, we shall provide a copy of the rights plan free of charge to
any stockholder.

      Our Board adopted the rights plan to protect stockholder value by
protecting our ability to realize the benefits of our net operating loss
carryforwards ("NOLs") and capital loss carryforwards. We have experienced
substantial operating and capital losses in previous years. Under the Internal
Revenue Code and rules promulgated by the Internal Revenue Service, we may
"carry forward" these losses in certain circumstances to offset current and
future earnings and thus reduce our federal income tax liability, subject to
certain requirements and restrictions. Assuming that we have future earnings, we
may be able to realize the benefits of NOLs and capital loss carryforwards.
These NOLs and capital loss carryforwards constitute a substantial asset to us.
If we experience an "Ownership Change," as defined in Section 382 of the
Internal Revenue Code, our ability to use the NOLs and capital loss
carryforwards could be substantially limited or lost altogether.

      In general terms, the rights plan imposes a significant penalty upon any
person or group that acquires 5% or more of our outstanding common stock without
the prior approval of our Board. Stockholders that owned 5% or more of our
outstanding common stock as of the close of business on February 2, 2007 may
acquire up to an additional 1% of our outstanding common stock without penalty
so long as they maintain their ownership above the 5% level (such increase
subject to downward adjustment by our Board if it determines that such increase
shall endanger the availability of our NOLs and/or our capital loss
carryforwards). In addition, our Board may exempt any person or group that owns
more than 5% of our common stock if the Board determines that the person or
group's ownership shall not endanger the availability of our NOLs and/or our
capital loss carryforwards. A person or group that acquires a percentage of our
common stock in excess of the applicable threshold is called an "acquiring
person." Any rights held by an acquiring person are null and void and may not be
exercised. Common stock acquired in a rights offering shall not alone cause a
person to become an acquiring person.

THE RIGHTS. Our Board of Directors authorized the issuance of one right per each
outstanding share of our common stock on February 2, 2007. If the rights become
exercisable, each right would allow its holder to purchase from us one share of
our common stock for a purchase price of $25.00.

                                      B-1

EXERCISABILITY. The rights shall not be exercisable until the earlier of:

o     10 days after a public announcement by Del Global Technologies Corp. that
      a person or group has become an acquiring person; and

o     10 business days (or a later date determined by our Board) after a person
      or group begins a tender or exchange offer that, if completed, would
      result in that person or group becoming an acquiring person.

We refer to the date that the rights become exercisable as the "distribution
date." Until the distribution date, our common stock certificates shall also
evidence the rights and shall contain a notation to that effect. Any transfer of
shares of common stock prior to the distribution date shall constitute a
transfer of the associated rights. After the distribution date, the rights shall
separate from the common stock and be evidenced by rights certificates, which we
shall mail to all holders of rights that have not become null and void.

FLIP-IN EVENT. After the distribution date, all holders of rights, except the
acquiring person, may exercise their rights upon payment of the purchase price
to purchase shares of our common stock (or other securities or assets as
determined by the Board) with a market value of two times the purchase price.

FLIP-OVER EVENT. After the distribution date, if a flip-in event has already
occurred and Del Global Technologies Corp. is acquired in a merger or similar
transaction, all holders of rights except the acquiring person may exercise
their rights upon payment of the purchase price, to purchase shares of the
acquiring corporation with a market value of two times the purchase price of the
rights.

EXPIRATION. The rights shall expire on February 2, 2017 unless earlier redeemed
or exchanged.

REDEMPTION. Our Board may redeem all (but not less than all) of the rights for a
redemption price of $0.01 per right at any time before the later of the
distribution date and the date of the first public announcement or disclosure by
Del Global Technologies Corp. that a person or group has become an acquiring
person. Once the rights are redeemed, the right to exercise rights shall
terminate, and the only right of the holders of rights shall be to receive the
redemption price. The redemption price shall be adjusted if we declare a stock
split or issue a stock dividend on our common stock.

EXCHANGE. After the later of the distribution date and the date of the first
public announcement by Del Global Technologies Corp. that a person or group has
become an acquiring person, but before an acquiring person owns 50% or more of
our outstanding common stock, our Board may exchange each right (other than
rights that have become null and void) for one share of common stock or an
equivalent security.

ANTI-DILUTION PROVISIONS. Our Board may adjust the purchase price of the common
shares, the number of common shares issuable and the number of outstanding
rights to prevent dilution that may occur as a result of certain events,
including among others, a stock dividend, a stock split or a reclassification of
the common stock. No adjustments to the purchase price of less than 1% shall be
made.

                                      B-2

AMENDMENTS. Before the time rights cease to be redeemable, our Board may amend
or supplement the rights plan without the consent of the holders of the rights,
except that no amendment may decrease the redemption price below $0.01 per
right. At any time thereafter, our Board may amend or supplement the rights plan
only to cure an ambiguity, to alter time period provisions, to correct
inconsistent provisions or to make any additional changes to the rights plan,
but only to the extent that those changes do not impair or adversely affect any
rights holder and do not result in the rights again becoming redeemable.

                                        * * *

                                      B-3Exhibit 4.1 Indenture

    
      

    

     

    Exhibit
      4.1

     

     

     

     

     

    GENCO
      SHIPPING & TRADING LIMITED

     

    ________________

    

    INDENTURE

    

    DATED
      AS
      OF [   ],
      200_

    

    ________________

    

    [   ]

    

    Trustee

    ________________

    

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    CROSS-REFERENCE
      TABLE*

     

    
      	
              Trust
                Indenture

              Act
                Section

            	 	
              Indenture
                Section

            
	 	 	 
	
              310(a)(1)

               

            	 	
              7.10

               

            
	
              (a)(2)

               

            	 	
              7.10

               

            
	
              (a)(3)

               

            	 	
              N.A.

               

            
	
              (a)(4)

               

            	 	
              N.A.

               

            
	
              (a)(5)

               

            	 	
              7.10

               

            
	
              (b)

               

            	 	
              7.10

               

            
	
              (c)

               

            	 	
              N.A.

               

            
	
              311(a)

               

            	 	
              7.11

               

            
	
              (b)

               

            	 	
              7.11

               

            
	
              (c)

               

            	 	
              N.A.

               

            
	
              312(a)

               

            	 	
              2.06

               

            
	
              (b)

               

            	 	
              11.03

               

            
	
              (c)

               

            	 	
              11.03

               

            
	
              313(a)

               

            	 	
              7.06

               

            
	
              (b)(2)

               

            	 	
              7.06;
                7.07

               

            
	
              (c)

               

            	 	
              7.06;
                11.02

               

            
	
              (d)

               

            	 	
              7.06

               

            
	
              314(a)

               

            	 	
              4.03;
                11.02

               

            
	
              (b)

               

            	 	
              N.A.

               

            
	
              (c)(1)

               

            	 	
              11.04

               

            
	
              (c)(2)

               

            	 	
              11.04

               

            
	
              (c)(3)

               

            	 	
              N.A.

               

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Trust
                Indenture

              Act
                Section

            	 	
              Indenture
                Section

            

    

     

    
      	
              (d)

               

            	 	
              N.A.

               

            
	
              (e)

               

            	 	
              11.05

               

            
	
              (f)

               

            	 	
              N.A.

               

            
	
              315(a)

               

            	 	
              7.01

               

            
	
              (b)

               

            	 	
              7.05;
                11.02

               

            
	
              (c)

               

            	 	
              7.01

               

            
	
              (d)

               

            	 	
              7.01

               

            
	
              (e)

               

            	 	
              6.11

               

            
	
              316(a)
                (last sentence)

               

            	 	
              2.10

               

            
	
              (a)(1)(A)

               

            	 	
              6.05

               

            
	
              (a)(1)(B)

               

            	 	
              6.04

               

            
	
              (a)(2)

               

            	 	
              N.A.

               

            
	
              (b)

               

            	 	
              6.07

               

            
	
              (c)

               

            	 	
              2.13

               

            
	
              317(a)(1)

               

            	 	
              6.08

               

            
	
              (a)(2)

               

            	 	
              6.09

               

            
	
              (b)

               

            	 	
              2.05

               

            
	
              318(a)

               

            	 	
              11.01

               

            
	
              (b)

               

            	 	
              N.A.

               

            
	
              (c)

               

            	 	
              11.01

               

            

    

    N.A.
      means not applicable.

    

    
      	
              *

            	
              This
                Cross-Reference Table is not part of this
                Indenture.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    TABLE
      OF CONTENTS

     

                                                                       Page

     

    
      	
              ARTICLE
                1.

            	
              DEFINITIONS
                AND INCORPORATION BY REFERENCE                                   1

            	 

    

    
      	 	
              Section
                1.01

            	
              Definitions                                                                1

            	 

    

    
      	 	
              Section
                1.02

            	
              Other
                Definitions                                                            
                6

            	 

    

    
      	 	
              Section
                1.03

            	
              Incorporation
                by Reference of Trust Indenture Act                                      6   

            	 

    

    
      	 	
              Section
                1.04

            	
              Rules
                of Construction                                                    7

            	 

    

     

    
      	
              ARTICLE
                2.

            	
              THE
                NOTES                                                              7       

            	 

    

    
      	 	
              Section
                2.01

            	
              Issuable
                in Series                                                         7

            	 

    

    
      	 	
              Section
                2.02

            	
              Establishment
                of Terms of Series of Notes                                        
                8

            	 

    

    
      	 	
              Section
                2.03

            	
              Execution
                and Authentication                                                 10

            	 

    

    
      	 	
              Section
                2.04

            	
              Registrar
                and Paying Agent                                                
10   

            	 

    

    
      	 	
              Section
                2.05

            	
              Paying
                Agent to Hold Money in Trust                                           11

            	 

    

    
      	 	
              Section
                2.06

            	
              Holder
                Lists                                                            
                11

            	 

    

    
      	 	
              Section
                2.07

            	
              Transfer
                and Exchange                                                     
                11

            	 

    

    
      	 	
              Section
                2.08

            	
              Replacement
                Notes                                                        12

            	 

    

    
      	 	
              Section
                2.09

            	
              Outstanding
                Notes                                                        12

            	 

    

    
      	 	
              Section
                2.10

            	
              Treasury
                Notes                                                      
12

            	 

    

    
      	 	
              Section
                2.11

            	
              Temporary
                Notes                                                       
13

            	 

    

    
      	 	
              Section
                2.12

            	
              Cancellation                                                            
                13

            	 

    

    
      	 	
              Section
                2.13

            	
              Defaulted
                Interest                                                       13

            	 

    

    
      	 	
              Section
                2.14

            	
              Global
                Notes                                                        13

            	 

    

    
      	 	
              Section
                2.15

            	
              CUSIP
                Number                                               
                14    

            	 

    

     

    
      	
              ARTICLE
                3.

            	
              REDEMPTION
                AND PREPAYMENT                                            
                15

            	 

    

    
      	 	
              Section
                3.01

            	
              Notice
                to Trustee                                                       15

            	 

    

    
      	 	
              Section
                3.02

            	
              Selection
                of Notes to Be Redeemed                                            15

            	 

    

    
      	 	
              Section
                3.03

            	
              Notice
                of Redemption                                                    15

            	 

    

    
      	 	
              Section
                3.04

            	
              Effect
                of Notice of Redemption                                               
                16 

            	 

    

    
      	 	
              Section
                3.05

            	
              Deposit
                of Redemption Price                                                16

            	 

    

    
      	 	
              Section
                3.06

            	
              Notes
                Redeemed in Part                                                    17

            	 

    

     

    
      	
              ARTICLE
                4.

            	
              COVENANTS                                                          17

            	 

    

    
      	 	
              Section
                4.01

            	
              Payment
                of Principal and Interest                                               
17

            	 

    

    
      	 	
              Section
                4.02

            	
              Maintenance
                of Office or Agency                                              
                17

            	 

    

    
      	 	
              Section
                4.03

            	
              Reports                                                            18

            	 

    

    
      	 	
              Section
                4.04

            	
              Compliance
                Certificate                                                   18

            	 

    

    
      	 	
              Section
                4.05

            	
              Taxes                                                                19

            	 

    

    
      	 	
              Section
                4.06

            	
              Stay,
                Extension and Usury Laws                                                 19

            	 

    

    
      	 	
              Section
                4.07

            	
              Corporate
                Existence                                                       19

            	 

    

     

    
      	
              ARTICLE
                5.

            	
              SUCCESSORS                                                         19

            	 

    

    
      	 	
              Section
                5.01

            	
              Merger,
                Consolidation or Sale of Assets                                          
19

            	 

    

     

    i
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              Section
                5.02

            	
              Successor
                Corporation Substituted                                            20

            	 

    

     

    
      	
              ARTICLE
                6.

            	
              DEFAULTS
                AND REMEDIES                                                 
                21

            	 

    

    
      	 	
              Section
                6.01

            	
              Events
                of Default                                                       
21

            	 

    

    
      	 	
              Section
                6.02

            	
              Acceleration                                                           
                22

            	 

    

    
      	 	
              Section
                6.03

            	
              Other
                Remedies                                                       22

            	 

    

    
      	 	
              Section
                6.04

            	
              Waiver
                of Past Defaults                                                   
23

            	 

    

    
      	 	
              Section
                6.05

            	
              Control
                by Majority                                                      
23

            	 

    

    
      	 	
              Section
                6.06

            	
              Limitation
                on Suits                                                        
                23

            	 

    

    
      	 	
              Section
                6.07

            	
              Rights
                of Holders of Notes to Receive Payment                                       24

            	 

    

    
      	 	
              Section
                6.08

            	
              Collection
                Suit by Trustee                                                   
24

            	 

    

    
      	 	
              Section
                6.09

            	
              Trustee
                May File Proofs of Claim                                               
24

            	 

    

    
      	 	
              Section
                6.10

            	
              Priorities                                                           25 

            	 

    

    
      	 	
              Section
                6.11

            	
              Undertaking
                for Costs                                                   25

            	 

    

     

    
      	
              ARTICLE
                7.

            	
              TRUSTEE                                                             25

            	 

    

    
      	 	
              Section
                7.01

            	
              Duties
                of Trustee                                                       
25

            	 

    

    
      	 	
              Section
                7.02

            	
              Rights
                of Trustee                                                       
26

            	 

    

    
      	 	
              Section
                7.03

            	
              Individual
                Rights of Trustee                                                
                27

            	 

    

    
      	 	
              Section
                7.04

            	
              Trustee’s
                Disclaimer                                                     
                28

            	 

    

    
      	 	
              Section
                7.05

            	
              Notice
                of Defaults                                                         
                28

            	 

    

    
      	 	
              Section
                7.06

            	
              Reports
                by Trustee to Holders of the Notes                                        
                28

            	 

    

    
      	 	
              Section
                7.07

            	
              Compensation
                and Indemnity                                                 
                28

            	 

    

    
      	 	
              Section
                7.08

            	
              Replacement
                of Trustee                                                   
29

            	 

    

    
      	 	
              Section
                7.09

            	
              Successor
                Trustee by Merger, Etc.                                             30

            	 

    

    
      	 	
              Section
                7.10

            	
              Eligibility;
                Disqualification                                                  
                30

            	 

    

    
      	 	
              Section
                7.11

            	
              Preferential
                Collection of Claims Against Company                                    
                31

            	 

    

    
      	 	
              Section
                7.12

            	
              Trustee’s
                Application for Instructions from the Company                                
                31

            	 

    

     

    
      	
              ARTICLE
                8.

            	
              LEGAL
                DEFEASANCE AND COVENANT DEFEASANCE                               31

            	 

    

    
      	 	
              Section
                8.01

            	
              Option
                to Effect Legal Defeasance or Covenant Defeasance                                
                31

            	 

    

    
      	 	
              Section
                8.02

            	
              Legal
                Defeasance and Discharge                                                31

            	 

    

    
      	 	
              Section
                8.03

            	
              Covenant
                Defeasance                                                       32

            	 

    

    
      	 	
              Section
                8.04

            	
              Conditions
                to Legal or Covenant Defeasance                                          32

            	 

    

    
      	 	
              Section
                8.05

            	
              Deposited
                Money and Government Securities to Be Held in Trust; Other Miscellaneous
                Provisions           33

            	 

    

    
      	 	
              Section
                8.06

            	
              Repayment
                to Company                                                       34 

            	 

    

    
      	 	
              Section
                8.07

            	
              Reinstatement                                                        34

            	 

    

     

    
      	
              ARTICLE
                9.

            	
              AMENDMENT,
                SUPPLEMENT AND WAIVER                                     35

            	 

    

    
      	 	
              Section
                9.01

            	
              Without
                Consent of Holders of Notes                                               35                      

            	 

    

    
      	 	
              Section
                9.02

            	
              With
                Consent of Holders of Notes                                                 36

            	 

    

    
      	 	
              Section
                9.03

            	
              Compliance
                with Trust Indenture Act                                                37

            	 

    

    
      	 	
              Section
                9.04

            	
              Revocation
                and Effect of Consents                                                37

            	 

    

    
      	 	
              Section
                9.05

            	
              Notation
                on or Exchange of Notes                                             37

            	 

    

    
      	 	
              Section
                9.06

            	
              Trustee
                Protected                                                          37

            	 

    

     

    ii
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              ARTICLE
                10.

            	
              SATISFACTION
                AND DISCHARGE                                                  
                37

            	 

    

    
      	 	
              Section
                10.01

            	
              Satisfaction
                and Discharge                                                    37

            	 

    

    
      	 	
              Section
                10.02

            	
              Application
                of Trust Money                                                    
                38

            	 

    

     

    
      	
              ARTICLE
                11.

            	
              MISCELLANEOUS                                                         39

            	 

    

    
      	 	
              Section
                11.01

            	
              Trust
                Indenture Act Controls                                                   39

            	 

    

    
      	 	
              Section
                11.02

            	
              Notices                                                                
                39

            	 

    

    
      	 	
              Section
                11.03

            	
              Communication
                by Holders of Notes with Other Holders of Notes                              
40

            	 

    

    
      	 	
              Section
                11.04

            	
              Certificate
                and Opinion as to Conditions Precedent                                       
40

            	 

    

    
      	 	
              Section
                11.05

            	
              Statements
                Required in Certificate                                                 
                40

            	 

    

    
      	 	
              Section
                11.06

            	
              Rules
                by Trustee and Agents                                                     
                40

            	 

    

    
      	 	
              Section
                11.07

            	
              Calculation
                of Foreign Currency Amounts                                           
41

            	 

    

    
      	 	
              Section
                11.08

            	
              No
                Personal Liability of Directors, Officers, Employees and Stockholders                         
                41

            	 

    

    
      	 	
              Section
                11.09

            	
              Governing
                Law                                                           41

            	 

    

    
      	 	
              Section
                11.10

            	
              No
                Adverse Interpretation of Other Agreements                                        
41

            	 

    

    
      	 	
              Section
                11.11

            	
              Successors                                                             
                41

            	 

    

    
      	 	
              Section
                11.12

            	
              Severability                                                             41

            	 

    

    
      	 	
              Section
                11.13

            	
              Counterpart
                Originals                                                       
41

            	 

    

    
      	 	
              Section
                11.14

            	
              Table
                of Contents, Headings, Etc.                                              
42

            	 

    

     

    
      	
              ARTICLE
                12.

            	
              SINKING
                FUNDS                                                          42

            	 

    

    
      	 	
              Section
                12.01

            	
              Applicability
                of Article                                                        
                42

            	 

    

    
      	 	
              Section
                12.02

            	
              Satisfaction
                of Sinking Fund Payments with Notes                                       
                42

            	 

    

    
      	 	
              Section
                12.03

            	
              Redemption
                of Notes for Sinking Fund                                            
                43

            	 

    

     

    
      	
              ARTICLE
                13.

            	
              GUARANTEES                                                             43

            	 

    

    
      	 	
              Section
                13.01

            	
              Guarantee                                                               43

            	 

    

     

     

    iii

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    INDENTURE
      dated as of [ ], 200_ between Genco Shipping & Trading Limited, a Marshall
      Islands corporation (the “Company”),
      the
      guarantors, if any, listed on the signature pages hereto (the “Guarantors”)
      and [
      ], as trustee (the “Trustee”).

     

    The
      Company and the Trustee agree as follows for the benefit of each other and
      for
      the equal and ratable benefit of the Holders of the Notes issued under this
      Indenture.

     

    ARTICLE
      1.

    DEFINITIONS
      AND INCORPORATION

    BY
      REFERENCE

     

    Section
      1.01 Definitions.

     

    “Affiliate”
of
      any
      specified Person means any other Person directly or indirectly controlling
      or
      controlled by or under direct or indirect common control with such specified
      Person. For purposes of this definition, “control,” as used with respect to any
      Person, means the possession, directly or indirectly, of the power to direct
      or
      cause the direction of the management or policies of such Person, whether
      through the ownership of voting securities, by agreement or otherwise;
provided,
      that
      beneficial ownership of 10% or more of the Voting Stock of a Person shall be
      deemed to be in control. For purposes of this definition, the terms
“controlling,” “controlled by” and “under common control with” have correlative
      meanings.

     

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

     

    “Attributable
      Debt”
in
      respect of a sale and leaseback transaction means, at the time of determination,
      the present value of the obligation of the lessee for net rental payments during
      the remaining term of the lease included in such sale and leaseback transaction
      including any period for which such lease has been extended or may, at the
      option of the lessor, be extended. Such present value shall be calculated using
      a discount rate equal to the rate of interest implicit in such transaction,
      determined in accordance with GAAP.

     

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

     

    “Board
      of Directors” means:

     

    
      	 	
              (1)

            	
              with
                respect to a corporation, the board of directors of the corporation
                or any
                committee thereof duly authorized to act on behalf of such
                board;

            

    

     

    
      	 	
              (2)

            	
              with
                respect to a partnership, the Board of Directors of the general partner
                of
                the partnership;

            

    

     

    
      	 	
              (3)

            	
              with
                respect to a limited liability company, the managing member or members
                or
                any controlling committee of managing members or managers thereof;
                and

            

    

     

    
      	 	
              (4)

            	
              with
                respect to any other Person, the board or committee of such Person
                serving
                a similar function.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Board
      Resolution”
means
      a
      copy of a resolution certified by the Secretary or an Assistant Secretary of
      the
      Company to have been adopted by the Board of Directors or pursuant to
      authorization by the Board of Directors and to be in full force and effect
      on
      the date of the certificate and delivered to the Trustee.

     

    “Business
      Day”
means
      any day other than a Legal Holiday.

     

    “Capital
      Lease Obligation”
      means,
      at the
      time any determination thereof is to be made, the amount of the liability in
      respect of a capital
      lease that would at that time be required to be capitalized on a balance sheet
      in accordance with GAAP.

     

    “Capital
      Stock”
      means:

     

    
      	 	
              (1)

            	
              in
                the case of a corporation, corporate
                stock;

            

    

     

    
      	 	
              (2)

            	
              in
                the case of an association or business entity, any and all shares,
                interests, participations, rights or other equivalents, however
                designated, of corporate stock;

            

    

     

    
      	 	
              (3)

            	
              in
                the case of a partnership or limited liability company, partnership
                or
                membership interests, whether general or limited;
                and

            

    

     

    
      	 	
              (4)

            	
              any
                other interest or participation that confers on a Person the right
                to
                receive a share of the profits and losses of, or distributions of
                assets
                of, the issuing Person.

            

    

     

    “Company”
means
      Genco Shipping & Trading Limited, a Marshall Islands corporation and any and
      all successors thereto.

     

    “Company
      Order”
means
      a
      written order signed in the name of the Company by the principal executive
      officer, the principal financial officer, the treasurer or the principal
      accounting officer of the Company.

     

    “Corporate
      Trust Office of the Trustee”
shall
      be at the address of the Trustee specified in Section 11.02 hereof or such
      other
      address as to which the Trustee may give notice to the Company.

     

    “Custodian”
means
      the Trustee, as custodian with respect to the Global Notes, or any successor
      entity thereto.

     

    “Default”
means
      any event that is, or with the passage of time or the giving of notice or both
      would be, an Event of Default.

     

    “Depositary”
means,
      with respect to the Notes of any Series issuable or issued in whole or in part
      in the form of one or more Global Notes, the person designated as Depositary
      for
      such Series by the Company,
      which
      Depositary shall be a clearing agency registered under the Exchange Act; and
      if
      at any time there is more than one such person, “Depositary” as used with
      respect to the Notes of any Series shall mean the Depositary with respect to
      the
      Notes of such Series.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Discount
      Note”
means
      any Note that provides for an amount less than the stated principal amount
      thereof to be due and payable upon declaration of acceleration of the maturity
      thereof pursuant to Section 6.02.

     

    “Dollars”
and
      “$”
means
      the currency of The United States of America.

     

    “ECU”
means
      the European Currency Unit as determined by the Commission of the European
      Union.

     

    “Equity
      Interests”
means
      Capital Stock and all warrants, options or other rights to acquire Capital
      Stock, but excluding any debt security that is convertible into, or exchangeable
      for, Capital Stock.

     

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

     

    “Foreign
      Currency”
means
      any currency or currency unit issued by a government other than the government
      of The United States of America.

     

    “GAAP”
means
      generally accepted accounting principles set forth in the opinions and
      pronouncements of the Accounting Principles Board of the American Institute
      of
      Certified Public Accountants and statements and pronouncements of the Financial
      Accounting Standards Board and such other statements by such other entity as
      have been approved by a significant segment of the accounting profession, which
      are applicable as of the date of this Indenture.

     

    “Global
      Note”
or
      “Global
      Notes”
means
      a
      Note or Notes, as the case may be, in the form established pursuant to Section
      2.02 evidencing all or part of a Series of Notes, issued to the Depositary
      for
      such Series or its nominee, and registered in the name of such Depositary or
      nominee.

     

    “Government
      Securities”
means
      direct obligations of, or obligations guaranteed by, the United States of
      America, and the payment for which the United States pledges its full faith
      and
      credit.

     

    “Guarantee”
means
      a
      guarantee, other than by endorsement of negotiable instruments for collection
      in
      the ordinary course of business, direct or indirect, in any manner including,
      without limitation, by way of a pledge of assets or through letters of credit
      or
      reimbursement agreements in respect thereof, of all or any part of any
      Indebtedness.

     

    “Guarantor”
means
      each of the parties identified pursuant to Section 2.2.

     

    “Hedging
      Obligations”
means,
      with respect to any specified Person, the obligations of such Person
      under:

     

    
      	 	
              (1)

            	
              interest
                rate swap agreements, interest rate cap agreements and interest rate
                collar agreements; and

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
 

    
      	 	
              (2)

            	
              other
                agreements or arrangements in respect of such Person’s exposure to
                fluctuations in commodity prices, currency exchange rates or interest
                rates and, in each case, not entered into for speculative
                purposes.

            

    

     

    “Holder”
means
      a
      Person in whose name a Note is registered.

     

    “Indebtedness”
means,
      with respect to any specified Person, any indebtedness of such Person, whether
      or not contingent:

     

    
      	 	
              (1)

            	
              in
                respect of borrowed money;

            

    

     

    
      	 	
              (2)

            	
              evidenced
                by bonds, notes, debentures or similar instruments or letters of
                credit,
                or reimbursement agreements in respect
                thereof;

            

    

     

    
      	 	
              (3)

            	
              in
                respect of banker’s acceptances;

            

    

     

    
      	 	
              (4)

            	
              representing
                Capital Lease Obligations;

            

    

     

    
      	 	
              (5)

            	
              representing
                the balance deferred and unpaid of the purchase price of any property,
                except any such balance that constitutes an accrued expense or trade
                payable; or

            

    

     

    
      	 	
              (6)

            	
              representing
                any Hedging Obligations,

            

    

     

    if
      and to
      the extent any of the preceding items, other than letters of credit and Hedging
      Obligations, would appear as a liability upon a balance sheet of the specified
      Person prepared in accordance with GAAP. In addition, the term “Indebtedness”
includes all Indebtedness of others secured by a Lien on any asset of the
      specified Person, whether or not such Indebtedness is assumed by the specified
      Person, and, to the extent not otherwise included, the Guarantee by the
      specified Person of any Indebtedness of any other Person or any liability of
      any
      person, whether or not contingent and whether or not it appears on the balance
      sheet of such Person.

     

    The
      amount of any Indebtedness outstanding as of any date shall be:

     

    
      	 	
              (1)

            	
              the
                accreted value of the Indebtedness, in the case of any Indebtedness
                that
                does not require the current payment of interest;
                and

            

    

     

    
      	 	
              (2)

            	
              principal
                amount of the Indebtedness, together with any interest on the Indebtedness
                that is more than 30 days past due, in the case of any other
                Indebtedness.

            

    

     

    “Indenture”
means
      this Indenture, as amended, supplemented or restated from time to time and
      shall
      include the form and terms of particular Series of Notes established as
      contemplated hereunder.

     

    “Legal
      Holiday”
means
      a
      Saturday, a Sunday or a day on which banking institutions in the City of New
      York, the city in which the principal office of the Trustee is located or at
      a
      place of payment are authorized by law, regulation or executive order to remain
      closed. If a payment

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    date
      is a
      Legal Holiday at a place of payment, payment may be made at that place on the
      next succeeding day that is not a Legal Holiday, and no interest shall accrue
      on
      such payment for the intervening period.

     

    “Lien”
means,
      with respect to any asset, any mortgage, lien, pledge, charge, security interest
      or encumbrance of any
      kind in
      respect of such asset, whether or not filed, recorded or otherwise perfected
      under applicable law, including any conditional sale or other title retention
      agreement or any lease in the nature thereof; provided
      that in
      no event shall an operating lease be deemed to constitute a Lien.

     

    “Notes”
means
      notes or other debt instruments of the Company of any Series issued under this
      Indenture.

     

    “Officer”
means,
      with respect to any Person, the Chairman of the Board, the Chief Executive
      Officer, the President, the Chief Operating Officer, the Chief Financial
      Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary
      or any Vice-President of such Person.

     

    “Officer’s
      Certificate”
means
      a
      certificate signed on behalf of the Company by an Officer of the Company that
      meets the requirements of Sections 11.04 and 11.05 hereof.

     

    “Opinion
      of Counsel”
means
      an opinion from legal counsel who is acceptable to the Trustee, that meets
      the
      requirements of Sections 11.04 and 11.05 hereof. The counsel may be an employee
      of or counsel to the Company, any Subsidiary of the Company or the
      Trustee.

     

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

     

    “Responsible
      Officer”
when
      used with respect to the Trustee, means any officer within the corporate trust
      department of the Trustee, including any vice president, assistant vice
      president, assistant secretary, assistant treasurer, trust officer or any other
      officer of the Trustee who customarily performs functions similar to those
      performed by the persons who at the time shall be such officers, respectively,
      or to whom any corporate trust matter is referred because of such person’s
      knowledge of and familiarity with the particular subject and who shall have
      direct responsibility for the administration of this Indenture.

     

    “SEC”
means
      the Securities and Exchange Commission.

     

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

     

    “Series”
or
      “Series
      of Notes”
means
      each series of debentures, notes or other debt instruments of the Company
      created pursuant to Sections 2.01 and 2.02 hereof.

     

    “Stated
      Maturity”
means,
      with respect to any installment of interest or principal on any series of
      Indebtedness, the date on which the payment of interest or principal was
      scheduled to be paid in the original documentation governing such Indebtedness,
      and shall not include any

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    contingent
      obligations to repay, redeem or repurchase any such interest or principal prior
      to the date originally scheduled for the payment thereof.

     

    “Subsidiary”
means,
      with respect to any specified Person:

     

    
      	 	
              (1)

            	
              any
                corporation, association or other business entity of which more than
                50%
                of the total voting power of shares of Capital Stock entitled, without
                regard to the occurrence of any contingency, to vote in the election of
                directors, managers or trustees thereof is at the time owned or
                controlled, directly or indirectly, by such Person;
                and

            

    

     

    
      	 	
              (2)

            	
              partnership
                (a) the sole general partner or the managing general partner of which
                is
                such Person or an entity described in clause (1) and related to such
                Person or (b) the only general partners of which are such Person
                or one or
                more entities described in clause (1) and related to such Person,
                or any
                combination thereof.

            

    

     

    “TIA”
means
      the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in effect
      on the date of this Indenture; provided,
      however,
      that in
      the event the Trust Indenture Act of 1939 is amended after such date, “TIA”
means, to the extent required by any such amendment, the Trust Indenture Act
      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 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 Notes of any Series shall mean the
      Trustee with respect to Notes of that Series.

     

    “Voting
      Stock”
of
      any
      Person as of any date means the Capital Stock of such Person that is at the
      time
      entitled to vote in the election of the Board of Directors of such
      Person.

     

    Section
      1.02 Other
      Definitions

     

    
      	
              Term

            	 	
              Defined
                in

              Section

            
	
              “Authentication
                Order”

            	 	
              2.03

            
	
              “Covenant
                Defeasance”

            	 	
              8.03

            
	
              “Event
                of Default”

            	 	
              6.01

            
	
              “Legal
                Defeasance”

            	 	
              8.02

            
	
              “Mandatory
                Sinking Fund Payment”

            	 	
              12.01

            
	
              “Optional
                Sinking Fund Payment”

            	 	
              12.01

            
	
              “Paying
                Agent”

            	 	
              2.04

            
	
              “Registrar”

            	 	
              2.04

            
	 	 	 

    

    Section
      1.03 Incorporation
      by Reference of Trust Indenture Act

     

    Whenever
      this Indenture refers to a provision of the TIA, the provision is incorporated
      by reference in and made a part of this Indenture.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

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

     

    “Commission”
means
      the SEC;

     

    “indenture
      securities”
means
      the Notes;

     

    “indenture
      security holder”
means
      a
      Holder of a Note;

     

    “indenture
      to be qualified”
means
      this Indenture;

     

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

     

    “obligor”
on
      the
      indenture securities means the Company, and any successor obligor upon the
      Notes.

     

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

     

    Section
      1.04 Rules
      of Construction.

     

    Unless
      the context otherwise requires:

     

    
      	 	
              (1)

            	
              a
                term has the meaning assigned to
                it;

            

    

     

    
      	 	
              (2)

            	
              an
                accounting term not otherwise defined herein has the meaning assigned
                to
                it in accordance with GAAP;

            

    

     

    
      	 	
              (3)

            	
              “or”
                is not exclusive;

            

    

     

    
      	 	
              (4)

            	
              words
                in the singular include the plural, and in the plural include the
                singular;

            

    

     

    
      	 	
              (5)

            	
              apply
                to successive events and transactions;
                and

            

    

     

    
      	 	
              (6)

            	
              references
                to sections of or rules under the Securities Act shall be deemed
                to
                include substitute, replacement or successor sections or rules adopted
                by
                the SEC from time to time.

            

    

     

    ARTICLE
      2.

    THE
      NOTES

     

    Section
      2.01 Issuable
      in Series.
      The
      aggregate principal amount of Notes that may be authenticated and delivered
      under this Indenture is unlimited. The Notes may be issued in one or more
      Series. All Notes of a Series shall be identical except as may be set forth
      in a
      Board Resolution, a supplemental indenture or an Officer’s Certificate detailing
      the adoption of the terms thereof pursuant to the authority granted under a
      Board Resolution. In the case of Notes of a Series to be issued from time to
      time, the Board Resolution, Officer’s Certificate or supplemental indenture
      detailing the adoption of the terms thereof pursuant to authority granted under
      a Board Resolution may provide for the method by which specified terms (such
      as
      interest

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    rate,
      maturity date, record date or date from which interest shall accrue) are to
      be
      determined. Notes may differ between Series in respect of any matters,
provided
      that all
      Series of Notes shall be equally and ratably entitled to the benefits of the
      Indenture.

     

    Section
      2.02 Establishment
      of Terms of Series of Notes.

     

    At
      or
      prior to the issuance of any Notes within a Series, the following shall be
      established (as to the Series generally, in the case of Subsection 2.02(a)
      and
      either as to such Notes within the Series or as to the Series generally in
      the
      case of Subsections 2.02(b) through 2.02(v)) by or pursuant to a Board
      Resolution, and set forth or determined in the manner provided in a Board
      Resolution, supplemental indenture or an Officer’s Certificate pursuant to
      authority granted under a Board Resolution:

     

    (a) the
      title
      of the Series (which shall distinguish the Notes of that particular Series
      from
      the Notes of any other Series);

     

    (b) the
      price
      or prices (expressed as a percentage of the principal amount thereof) at which
      the Notes of the Series will be issued;

     

    (c) any
      limit
      upon the aggregate principal amount of the Notes of the Series which may be
      authenticated and delivered under this Indenture (except for Notes authenticated
      and delivered upon registration of transfer of, or in exchange for, or in lieu
      of, other Notes of the Series pursuant to Sections 2.07, 2.08, 2.11, 3.06 or
      9.05);

     

    (d) the
      date
      or dates on which the principal of the Notes of the Series is
      payable;

     

    (e) the
      rate
      or rates (which may be fixed or variable) per
      annum
      or, if
      applicable, the method used to determine such rate or rates (including, but
      not
      limited to, any commodity, commodity index, stock exchange index or financial
      index) at which the Notes of the Series shall bear interest, if any, the date
      or
      dates from which such interest, if any, shall accrue, the date or dates on
      which
      such interest, if any, shall commence and be payable and any regular record
      date
      for the interest payable on any interest payment date;

     

    (f) the
      place
      or places where the principal of and interest, if any, on the Notes of the
      Series shall be payable, where the Notes of such Series may be surrendered
      for
      registration of transfer or exchange and where notices and demands to or upon
      the Company in respect of the Notes of such Series and this Indenture may be
      served, and the method of such payment, if by wire transfer, mail or other
      means;

     

    (g) if
      applicable, the period or periods within which, the price or prices at which
      and
      the terms and conditions upon which the Notes of the Series may be redeemed,
      in
      whole or in part, at the option of the Company;

     

    (h) the
      obligation, if any, of the Company to redeem or purchase the Notes of the Series
      pursuant to any sinking fund or analogous provisions 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 Notes of the Series shall be
      redeemed or purchased, in whole or in part, pursuant to such
      obligation;

     

    (i)
      the
      dates, if any, on which and the price or prices at which the Notes of the Series
      will be repurchased by the Company at the option of the Holders thereof and
      other detailed terms and provisions of such repurchase
      obligations;

     

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    (j) if
      other
      than denominations of $1,000 and any integral multiple thereof, the
      denominations in which the Notes of the Series shall be issuable;

     

    (k) the
      forms
      of the Notes of the Series in bearer or fully registered form (and, if in fully
      registered form, whether the Notes will be issuable as Global
      Notes);

     

    (l) if
      other
      than the principal amount thereof, the portion of the principal amount of the
      Notes of the Series that shall be payable upon declaration of acceleration
      of
      the maturity thereof pursuant to Section 6.02;

     

    (m) the
      currency of denomination of the Notes of the Series, which may be Dollars or
      any
      Foreign Currency, including, but not limited to, the ECU, and if such currency
      of denomination is a composite currency other than the ECU, the agency or
      organization, if any, responsible for overseeing such composite
      currency;

     

    (n) the
      designation of the currency, currencies or currency units in which payment
      of
      the principal of and interest, if any, on the Notes of the Series will be
      made;

     

    (o) if
      payments of principal of or interest, if any, on the Notes of the Series are
      to
      be made in one or more currencies or currency units other than that or those
      in
      which such Notes are denominated, the manner in which the exchange rate with
      respect to such payments will be determined;

     

    (p) the
      manner in which the amounts of payment of principal of or interest, if any,
      on
      the Notes of the Series will be determined, if such amounts may be determined
      by
      reference to an index based on a currency or currencies or by reference to
      a
      commodity, commodity index, stock exchange index or financial
      index;

     

    (q) the
      provisions, if any, relating to any security or guarantee provided for the
      Notes
      of the Series, and any subordination in right of payment, if any, of the Notes
      of the Series;

     

    (r) the
      provisions, if any, relating to any conversion or exchange right of the Notes
      of
      the Series;

     

    (s) any
      addition to or change in the Events of Default which applies to any Notes of
      the
      Series and any change in the right of the Trustee or the requisite Holders
      of
      such Notes to declare the principal amount thereof due and payable pursuant
      to
      Section 6.02;

     

    (t) any
      addition to or change in the covenants set forth in Articles 4 or 5 which
      applies to Notes of the Series;

     

    (u) any
      other
      terms of the Notes of the Series (which may modify or delete any provision
      of
      this Indenture insofar as it applies to such Series);

    (v)
      any
      depositories, authenticating agents, paying agents, registrars, calculation
      agents, exchange rate agents, conversion agents or other agents with respect
      to
      Notes of such Series if other than those appointed herein; and

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    (w) the
      conditions, if any, under which a default under any mortgage, indenture or
      instrument under which there may be issued or by which there may be secured
      or
      evidenced any Indebtedness for money borrowed by the Company or any of its
      Subsidiaries (or the payment of which is guaranteed by the Company or any of
      its
      Subsidiaries) will constitute an Event of Default with respect to Notes of
      the
      Series.

     

    All
      Notes
      of any one Series need not be issued at the same time and may be issued from
      time to time, consistent with the terms of this Indenture, if so provided by
      or
      pursuant to the Board Resolution, supplemental indenture hereto or Officer’s
      Certificate referred to above, and the authorized principal amount of any Series
      may not be increased to provide for issuances of additional Notes of such
      Series, unless otherwise provided in such Board Resolution, supplemental
      indenture or Officer’s Certificate.

     

    Section
      2.03 Execution
      and Authentication.

     

    One
      Officer shall sign the Notes for the Company by manual or facsimile signature.
      If an Officer whose signature is on a Note no longer holds that office at the
      time such Note is authenticated, such Note shall nevertheless be
      valid.

     

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

     

    The
      Trustee shall, upon a written order of the Company signed by one Officer (an
      “Authentication
      Order”),
      authenticate Notes for original issue in accordance with this
      Indenture.

     

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

     

    Section
      2.04 Registrar
      and Paying Agent.

     

    The
      Company shall maintain an office or agency where Notes may be presented for
      registration of transfer or for exchange (“Registrar”)
      and an
      office or agency where Notes may be presented for payment (“Paying
      Agent”).
      The
      Registrar shall keep a register with respect to each Series of the Notes and
      of
      their transfer and exchange. The Company may appoint one or more co-registrars
      and one or more additional paying agents. The term “Registrar” includes any
      co-registrar and the term “Paying Agent” includes any additional paying agent.
      The Company may change any Paying Agent or Registrar without notice to any
      Holder. The Company shall notify the Trustee in writing of the name and address
      of any Agent not a party to this Indenture. If the Company fails to appoint
      or
      maintain another entity as Registrar or Paying Agent, the

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Trustee
      shall act as such. The Company or any of its Subsidiaries may act as Paying
      Agent or Registrar.

     

    The
      Company initially appoints the Trustee to act as the Registrar and Paying Agent
      and to act as Custodian with respect to the Global Notes.

     

    Section
      2.05 Paying
      Agent to Hold Money in Trust.

     

    The
      Company shall require each Paying Agent other than the Trustee to agree in
      writing that the Paying Agent will hold in trust, for the benefit of Holders
      of
      any Series of Notes, or the Trustee, all money held by the Paying Agent for
      the
      payment of principal or interest on the Series of Notes, and shall notify the
      Trustee of any default by the Company in making any such payment. While any
      such
      default continues, the Trustee may require a Paying Agent to pay all money
      held
      by it to the Trustee. The Company at any time may require a Paying Agent to
      pay
      all money held by it to the Trustee. Upon payment over to the Trustee, the
      Paying Agent (if other than the Company or a Subsidiary) shall have no further
      liability for the money. If the Company or a Subsidiary acts as Paying Agent,
      it
      shall segregate and hold in a separate trust fund for the benefit of Holders
      of
      any Series of Notes all money held by it as Paying Agent. Upon any bankruptcy
      or
      reorganization proceedings relating to the Company, the Trustee shall serve
      as
      Paying Agent for the Notes.

     

    Section
      2.06 Holder
      Lists.

     

    The
      Trustee shall preserve in as current a form as is reasonably practicable the
      most recent list available to it of the names and addresses of Holders of each
      Series of Notes and shall otherwise comply with TIA Section 312(a). If the
      Trustee is not the Registrar, the Company shall furnish to the Trustee, at
      least
      by the record date for the interest payable on any interest payment date and
      at
      such other times as the Trustee may request in writing, a list in such form
      and
      as of such date as the Trustee may reasonably require of the names and addresses
      of Holders of each Series of Notes and the Company shall otherwise comply with
      TIA Section 312(a).

     

    Section
      2.07 Transfer
      and Exchange.

     

    Where
      Notes of a Series are presented to the Registrar or a co-registrar with a
      request to register a transfer or to exchange them for an equal principal amount
      of Notes of the same Series, the Registrar shall register the transfer or make
      the exchange if its requirements for such transactions are met. To permit
      registrations of transfers and exchanges, the Trustee shall authenticate Notes
      at the Registrar’s request. No service charge shall be made for any registration
      of transfer or exchange (except as otherwise expressly permitted herein), but
      the Company may require payment of a sum sufficient to cover any transfer tax
      or
      similar governmental charge payable in connection therewith (other than any
      such
      transfer tax or similar governmental charge payable upon exchanges pursuant
      to
      Sections 2.11, 3.06 or 9.05).

     

    Neither
      the Company nor the Registrar shall be required (a) to issue, register the
      transfer of, or exchange Notes of any Series for the period beginning at the
      opening of business fifteen days immediately preceding the mailing of a notice
      of redemption of Notes of that Series selected for redemption and ending at
      the
      close of business on the day of such mailing, or (b) to register the transfer
      of
      or exchange Notes of any Series selected, called or being called
      for

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    redemption
      as a whole or the portion being redeemed of any such Notes selected, called
      or
      being called for redemption in part.

     

    Section
      2.08 Replacement
      Notes.

     

    If
      any
      mutilated Note is surrendered to the Trustee or the Company and the Trustee
      receives evidence to its satisfaction of the destruction, loss or theft of
      any
      Note, the Company shall issue and the Trustee, upon receipt of an Authentication
      Order, shall authenticate a replacement Note of the same Series if the Trustee’s
      requirements are met. If required by the Trustee or the Company, an indemnity
      bond must be supplied by the Holder that is sufficient in the judgment of the
      Trustee and the Company to protect the Company, the Trustee, any Agent and
      any
      authenticating agent from any loss that any of them may suffer if a Note is
      replaced. The Company may charge for its expenses in replacing a
      Note.

     

    Every
      replacement Note of any Series is an additional obligation of the Company and
      shall be entitled to all of the benefits of this Indenture equally and
      proportionately with all other Notes of that Series duly issued
      hereunder.

     

    Section
      2.09 Outstanding
      Notes.

     

    The
      Notes
      outstanding at any time are all the Notes authenticated by the Trustee except
      for those canceled by it, those delivered to it for cancellation, those
      reductions in the interest in a Global Note effected by the Trustee in
      accordance with the provisions hereof, and those described in this Section
      as
      not outstanding. Except as set forth in Section 2.10 hereof, a Note does not
      cease to be outstanding because the Company or an Affiliate of the Company
      holds
      the Note.

     

    If
      a Note
      is replaced pursuant to Section 2.08 hereof, it ceases to be outstanding unless
      the Trustee receives proof satisfactory to it that the replaced Note is held
      by
      a bona fide purchaser.

     

    If
      the
      principal amount of any Note is considered paid under Section 4.01 hereof,
      it
      ceases to be outstanding and interest on it ceases to accrue.

     

    If
      the
      Paying Agent (other than the Company, a Subsidiary or an Affiliate of any
      thereof) holds, on a redemption date or maturity date, money sufficient to
      pay
      Notes payable on that date, then on and after that date such Notes shall be
      deemed to be no longer outstanding and shall cease to accrue
      interest.

     

    Section
      2.10 Treasury
      Notes.

     

    In
      determining whether the Holders of the required principal amount of Notes of
      a
      Series have concurred in any direction, waiver or consent, Notes owned by the
      Company, or by any Person directly or indirectly controlling or controlled
      by or
      under direct or indirect common control with the Company, shall be considered
      as
      though not outstanding, except that for the purposes of determining whether
      the
      Trustee shall be protected in relying on any such direction, waiver or consent,
      only Notes of a Series that a Responsible Officer of the Trustee actually knows
      are so owned shall be so disregarded.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Section
      2.11Temporary
      Notes.

     

    Until
      certificates representing Notes are ready for delivery, the Company may prepare
      and the Trustee, upon receipt of an Authentication Order, shall authenticate
      temporary Notes. Temporary Notes shall be substantially in the form of
      certificated Notes but may have variations that the Company considers
      appropriate for temporary Notes and as shall be reasonably acceptable to the
      Trustee. Without unreasonable delay, the Company shall prepare and the Trustee
      shall authenticate definitive Notes in exchange for temporary
      Notes.

     

    Holders
      of temporary Notes shall be entitled to all of the benefits of this
      Indenture.

     

    Section
      2.12 Cancellation.

     

    The
      Company at any time may deliver Notes to the Trustee for cancellation. The
      Registrar and Paying Agent shall forward to the Trustee any Notes surrendered
      to
      them for registration of transfer, exchange or payment. The Trustee and no
      one
      else shall cancel all Notes surrendered for registration of transfer, exchange,
      payment, replacement or cancellation and shall destroy canceled Notes (subject
      to the record retention requirement of the Exchange Act). The Company may not
      issue new Notes to replace Notes that it has paid or that have been delivered
      to
      the Trustee for cancellation.

     

    Section
      2.13 Defaulted
      Interest.

     

    If
      the
      Company defaults in a payment of interest on a Series of Notes, it shall pay
      the
      defaulted interest in any lawful manner plus,
      to the
      extent lawful, interest payable on the defaulted interest, to the Persons who
      are Holders of the Series on a subsequent special record date, in each case
      at
      the rate provided in the Notes and in Section 4.01 hereof. The Company shall
      notify the Trustee in writing of the amount of defaulted interest proposed
      to be
      paid on each Note and the date of the proposed payment. The Company shall fix
      or
      cause to be fixed each such special record date and payment date, provided
      that no
      such special record date shall be less than 10 days prior to the related payment
      date for such defaulted interest. At least 15 days before the special record
      date, the Company (or, upon the written request of the Company, the Trustee
      in
      the name and at the expense of the Company) shall mail or cause to be mailed
      to
      Holders of the Series a notice that states the special record date, the related
      payment date and the amount of such interest to be paid.

     

    Section
      2.14 Global
      Notes.

     

    (a) Terms
      of Notes.
      A Board
      Resolution, a supplemental indenture hereto or an Officer’s Certificate shall
      establish whether the Notes of a Series shall be issued in whole or in part
      in
      the form of one or more Global Notes and the Depositary for such Global Note
      or
      Notes.

     

    (b) Transfer
      and Exchange.
      Notwithstanding any provisions to the contrary contained in Section 2.07 hereof
      and in addition thereto, any Global Note shall be exchangeable pursuant to
      Section 2.07 of the Indenture for Notes registered in the names of Holders
      other
      than the Depositary for such Note or its nominee only if (i) such Depositary
      notifies the Company that it is unwilling or unable to continue as Depositary
      for such Global Note or if at any time such Depositary ceases to be a clearing
      agency registered under the Exchange Act, and, in either case,

     

     

    
      
        
        

      

      
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    the
      Company fails to appoint a successor Depositary registered as a clearing agency
      under the Exchange Act within 90 days of such event, (ii) the Company executes
      and delivers to the Trustee an Officer’s Certificate to the effect that such
      Global Note shall be so exchangeable or (iii) an Event of Default with respect
      to the Notes represented by such Global Note shall have happened and be
      continuing. Any Global Note that is exchangeable pursuant to the preceding
      sentence shall be exchangeable for Notes registered in such names as the
      Depositary shall direct in writing in an aggregate principal amount equal to
      the
      principal amount of the Global Note with like tenor and terms.

     

    Except
      as
      provided in this Section 2.14(b), a Global Note may not be transferred except
      as
      a whole by the Depositary with respect to such Global Note to a nominee of
      such
      Depositary, by a nominee of such Depositary to such Depositary or another
      nominee of such Depositary or by the Depositary or any such nominee to a
      successor Depositary or a nominee of such a successor Depositary.

     

    (c) Legend.
      Any
      Global Note issued hereunder shall bear a legend in substantially the following
      form:

     

    “This
      Note is a Global Note within the meaning of the Indenture hereinafter referred
      to and is registered in the name of the Depositary or a nominee of the
      Depositary. This Note is exchangeable for Notes registered in the name of a
      person other than the Depositary or its nominee only in the limited
      circumstances described in the Indenture, and may not be transferred except
      as a
      whole by the Depositary to a nominee of the Depositary, by a nominee of the
      Depositary to the Depositary or another nominee of the Depositary or by the
      Depositary or any such nominee to a successor Depositary or a nominee of such
      a
      successor Depositary.”

     

    (d) Acts
      of Holders.
      The
      Depositary, as a Holder, may appoint agents and otherwise authorize participants
      to give or take any request, demand, authorization, direction, notice, consent,
      waiver or other action which a Holder is entitled to give or take under the
      Indenture.

     

    (e) Payments.
      Notwithstanding the other provisions of this Indenture, unless otherwise
      specified as contemplated by Section 2.02, payment of the principal of and
      interest, if any, on any Global Note shall be made to the Holder
      thereof.

     

    (f) Consents,
      Declaration and Directions.
      Except
      as provided in Section 2.14(e), the Company, the Trustee and any Agent shall
      treat a person as the Holder of such principal amount of outstanding Notes
      of
      such Series represented by a Global Note as shall be specified in a written
      statement of the Depositary with respect to such Global Note, for purposes
      of
      obtaining any consents, declarations, waivers or directions required to be
      given
      by the Holders pursuant to this Indenture.

     

    Section
      2.15 CUSIP
      Number.

     

    The
      Company in issuing the Notes may use “CUSIP” numbers (if then generally in use),
      and, if so, the Trustee shall use CUSIP numbers in notices of redemption as
      a
      convenience to Holders; provided
      that any
      such notice may state that no representation is made as to the correctness
      of
      such numbers either as printed on the Notes or as contained in any notice of
      a
      redemption and that reliance may be placed only on the other identification
      numbers printed on

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    the
      Notes, and any such redemption shall not be affected by any defect in or the
      omission of such numbers. The Company shall promptly notify the Trustee of
      any
      change in the CUSIP numbers.

     

    ARTICLE
      3.

    REDEMPTION
      AND PREPAYMENT

     

    Section
      3.01 Notice
      to Trustee.

     

    The
      Company may, with respect to any Series of Notes, reserve the right to redeem
      and pay the Series of Notes or may covenant to redeem and pay the Series of
      Notes or any part thereof prior to the Stated Maturity thereof at such time
      and
      on such terms as provided for in such Notes. If a Series of Notes is redeemable
      and the Company wants or is obligated to redeem prior to the Stated Maturity
      thereof all or part of the Series of Notes pursuant to the terms of such Notes,
      it shall notify the Trustee of the redemption date and the principal amount
      of
      Series of Notes to be redeemed. The Company shall give the notice at least
      45
      days but not more than 60 days before the redemption date (or such shorter
      notice as may be acceptable to the Trustee).

     

    Section
      3.02 Selection
      of Notes to Be Redeemed.

     

    If
      less
      than all of the Notes of a Series are to be redeemed or purchased in an offer
      to
      purchase at any time, the Trustee shall select the Notes of a Series to be
      redeemed or purchased among the Holders of such Notes (a) in compliance with
      the
      requirements of the principal national securities exchange, if any, on which
      such Notes are listed or, (b) if such Notes are not so listed, on a pro
      rata basis,
      by
      lot or in accordance with any other method the Trustee considers fair and
      appropriate. In the event of partial redemption or purchase by lot, the
      particular Notes to be redeemed shall be selected, unless otherwise provided
      herein, not less than 30 nor more than 60 days prior to the redemption date
      by
      the Trustee from the outstanding Notes of such Series not previously called
      for
      redemption or purchase. The Trustee may select for redemption or repurchase
      portions of the principal of Notes of such Series that have denominations larger
      than $1,000.

     

    The
      Trustee shall promptly notify the Company in writing of the Notes selected
      for
      redemption and, in the case of any Note selected for partial redemption, the
      principal amount thereof to be redeemed. Notes of a Series and portions of
      them
      selected shall be in amounts of $1,000 or whole multiples of $1,000 or, with
      respect to Notes of any Series issuable in other denominations pursuant to
      Section 2.02(j) hereof, the minimum principal denomination for each Series
      and
      integral multiples thereof. Except as provided in the preceding sentence,
      provisions of this Indenture that apply to Notes of a Series called for
      redemption or repurchase also apply to portions of Notes of a Series called
      for
      redemption or repurchase.

     

    Section
      3.03 Notice
      of Redemption.

     

    Unless
      otherwise indicated for a particular Series by Board Resolution, a supplemental
      indenture hereto or an Officer’s Certificate, at least 30 days but not more than
      60 days before a redemption date, the Company shall mail or cause to be mailed,
      by first class mail, a notice of redemption to each Holder whose Notes are
      to be
      redeemed at its registered address.

    The
      notice shall identify the Notes of the Series to be redeemed and shall
      state:

     

     

    
      
        
        

      

      
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              (1)

            	
              the
                redemption date;

            

    

     

    
      	 	
              (2)

            	
              the
                redemption price;

            

    

     

    
      	 	
              (3)

            	
              the
                name and address of the Paying
                Agent;

            

    

     

    
      	 	
              (4)

            	
              Notes
                of the Series called for redemption must be surrendered to the Paying
                Agent to collect the redemption
                price;

            

    

     

    
      	 	
              (5)

            	
              that,
                if applicable, interest on Notes of the Series called for redemption
                ceases to accrue on and after the redemption
                date;

            

    

     

    
      	 	
              (6)

            	
              the
                CUSIP number, if any;

            

    

     

    
      	 	
              (7)

            	
              that
                the redemption is for a sinking fund, if such is the case;
                and

            

    

     

    
      	 	
              (8)

            	
              any
                other information as may be required by the terms of the particular
                Series
                of the Notes or the Notes of a Series being
                redeemed.

            

    

     

    At
      the
      Company’s request, the Trustee shall give the notice of redemption in the
      Company’s name and at its expense, provided
      that the
      Company shall have delivered to the Trustee, at least 45 days prior to the
      redemption date (unless a shorter time period is acceptable to the Trustee),
      an
      Officer’s Certificate requesting that the Trustee give such notice and setting
      forth the information to be stated in such notice as provided in the preceding
      paragraph.

     

    Section
      3.04 Effect
      of Notice of Redemption.

     

    Once
      notice of redemption is mailed in accordance with Section 3.03 hereof, Notes
      called for redemption become irrevocably due and payable on the redemption
      date
      at the redemption price. A notice of redemption may not be
      conditional.

     

    Section
      3.05 Deposit
      of Redemption Price.

     

    On
      or
      before the redemption date, the Company shall deposit with the Trustee or with
      the Paying Agent money sufficient to pay the redemption price of and accrued
      interest on all Notes to be redeemed on that date. The Trustee or the Paying
      Agent shall promptly return to the Company any money deposited with the Trustee
      or the Paying Agent by the Company in excess of the amounts necessary to pay
      the
      redemption price of, and accrued interest on, all Notes to be
      redeemed.

     

    If
      the
      Company complies with the provisions of the preceding paragraph, on and after
      the redemption date, interest shall cease to accrue on the Notes or the portions
      of Notes called for redemption. If a Note is redeemed on or after an interest
      record date but on or prior to the related interest payment date, then any
      accrued and unpaid interest shall be paid to the Person in whose name such
      Note
      was registered at the close of business on such record date. If any Note called
      for redemption shall not be so paid upon surrender for redemption because of
      the
      failure of the Company
      to comply with the preceding paragraph, interest shall be paid on the unpaid
      principal, from the redemption date until such principal is paid, and to the
      extent lawful on any interest not

     

     

    
      
        
        

      

      
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    paid
      on
      such unpaid principal, in each case at the rate provided in the Notes and in
      Section 4.01 hereof.

     

    Section
      3.06 Notes
      Redeemed in Part.

     

    Upon
      surrender of a Note that is redeemed in part, the Company shall issue and,
      upon
      the Company’s written request, the Trustee shall authenticate for the Holder, at
      the expense of the Company, a new Note equal in principal amount to the
      unredeemed portion of the Note surrendered.

     

    No
      Notes
      of $1,000 or less can be redeemed in part.

     

    ARTICLE
      4.

    COVENANTS

     

    Section
      4.01 Payment
      of Principal and Interest.

     

    The
      Company covenants and agrees for the benefit of the Holders of each Series
      of
      Notes that it will pay or cause to be paid the principal of, premium, if any,
      and interest on the Notes on the dates and in the manner provided in such Notes.
      Principal, premium, if any, and interest on any Series of Notes will be
      considered paid on the date due if the Paying Agent, if other than the Company
      or a Subsidiary thereof, holds on the due date money deposited by the Company
      in
      immediately available funds and designated for and sufficient to pay all
      principal, premium, if any, and interest then due.

     

    Section
      4.02 Maintenance
      of Office or Agency.

     

    The
      Company will maintain an office or agency (which may be an office of the Trustee
      or an affiliate of the Trustee, Registrar or co-registrar) where Notes may
      be
      surrendered for registration of transfer or for exchange and where notices
      and
      demands to or upon the Company in respect of the Notes 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 fails to maintain any such required office or agency or fails
      to furnish the Trustee with the address thereof, such presentations, surrenders,
      notices and demands may be made or served at the Corporate Trust Office of
      the
      Trustee.

     

    The
      Company may also from time to time designate one or more other offices or
      agencies where the Notes 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 will in any manner relieve the Company of its
      obligation to maintain an office or agency 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.

     

    With
      respect to each Series of Notes, the Company hereby designates the Corporate
      Trust Office of the Trustee as one such office or agency of the Company in
      accordance with Section 2.04 hereof.

     

    
      
        
        

      

      
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    Section
      4.03 Reports.

     

    (a) Whether
      or not the Company is required by the SEC, so long as any Series of Notes are
      outstanding, the Company shall furnish to the Holders of such Notes, within
      the
      time periods (including any extensions thereof) specified in the SEC’s rules and
      regulations:

     

    
      	 	
              (1)

            	
              all
                quarterly and annual reports that would be required to be filed with
                the
                Commission on Forms 10-Q and 10-K if the Company were required to
                file
                such reports; and

            

    

     

    
      	 	
              (2)

            	
              all
                current reports that would be required to be filed with the SEC on
                Form
                8-K if the Company were required to file such
                reports.

            

    

     

    In
      addition, whether or not required by the rules and regulations of the SEC,
      the
      Company shall file a copy of all such information and reports referred to in
      clauses (1) and (2) above with the SEC for public availability within the time
      periods specified in the SEC’s rules and regulations, unless the SEC will not
      accept such a filing, and make such information available to securities analysts
      and prospective investors upon request. It is understood that the Company’s
      compliance with the above filing requirement with the SEC will satisfy the
      Company’s obligation to “furnish” the Holders of Notes with the information
      described in clauses (1) and (2) of this Section 4.03(a). The Company shall
      at
      all times comply with TIA Section 314(a). Delivery of such reports, information
      and documents to the Trustee is for informational purposes only and the
      Trustee’s receipt of such shall not constitute constructive notice of any
      information contained therein or determinable from information contained
      therein, including the Company’s compliance with any of its covenants hereunder
      (as to which the Trustee is entitled to rely exclusively on Officer’s
      Certificates).

     

    (b) For
      so
      long as any Series of Notes remain outstanding, if at any time they are not
      required to file with the Commission the reports required by paragraphs (1)
      and
      (2) of this Section 4.03, the Company and any guarantors of such Notes will
      furnish to the Holders of such Notes and to securities analysts and prospective
      investors, upon their request, the information required to be delivered pursuant
      to Rule 144A(d)(4) under the Securities Act.

     

    Section
      4.04 Compliance
      Certificate.

     

    The
      Company and each guarantor of any Series of Notes (to the extent that such
      guarantor is so required under the TIA) shall deliver to the Trustee with
      respect to such Series, within 120 days after the end of each fiscal year,
      an
      Officer’s Certificate stating that a review of the activities of the Company and
      its Subsidiaries during the preceding fiscal year has been made under the
      supervision of the signing Officers with a view to determining whether the
      Company has kept, observed, performed and fulfilled its obligations under this
      Indenture, and further stating, as to each such Officer signing such
      certificate, that to the best of his or her knowledge the Company has kept,
      observed, performed and fulfilled each and every covenant contained in this
      Indenture and is not in default in the performance or observance of any of
      the
      terms, provisions and conditions of this Indenture (or, if a Default or Event
      of
      Default shall have occurred, describing all such Defaults or Events of Default
      of which he or she may have knowledge and what action the Company is taking
      or
      proposes to take with respect thereto) and

     

    
      
        
        

      

      
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    that
      to
      the best of his or her knowledge no event has occurred and remains in existence
      by reason of which payments on account of the principal of or interest, if
      any,
      on the Notes is prohibited or if such event has occurred, a description of
      the
      event and what action the Company is taking or proposes to take with respect
      thereto.

     

    Section
      4.05 Taxes.

     

    The
      Company shall pay, and shall cause each of its Subsidiaries to pay, prior to
      delinquency, all material taxes, assessments, and governmental levies except
      such as are contested in good faith and by appropriate proceedings or where
      the
      failure to effect such payment is not adverse in any material respect to the
      Holders of the Notes.

     

    Section
      4.06 Stay,
      Extension and Usury Laws.

     

    The
      Company covenants (to the extent that it may lawfully do so) that it shall
      not,
      and each guarantor of such Notes shall not, at any time, insist upon, plead,
      or
      in any manner whatsoever claim or take the benefit or advantage of, any stay,
      extension or usury law wherever enacted, now or at any time hereafter in force,
      that may affect the covenants or the performance of this Indenture; and the
      Company and each of such guarantors (to the extent that it may lawfully do
      so),
      as applicable, hereby expressly waives all benefit or advantage of any such
      law,
      and covenants that it shall not, by resort to any such law, hinder, delay or
      impede the execution of any power herein granted to the Trustee for such Notes,
      but shall suffer and permit the execution of every such power as though no
      such
      law has been enacted.

     

    Section
      4.07 Corporate
      Existence.

     

    Subject
      to Articles 5 and 10 hereof, the Company shall do or cause to be done all things
      necessary to preserve and keep in full force and effect (i) its corporate
      existence, and the corporate, partnership or other existence of each of its
      material Subsidiaries, in accordance with the respective organizational
      documents (as the same may be amended from time to time) of the Company and
      any
      such Subsidiary and (ii) the rights (charter and statutory), licenses and
      franchises of the Company and its material Subsidiaries; provided,
      however,
      that
      the Company shall not be required to preserve any such right, license or
      franchise, or the corporate, partnership or other existence of any of its
      Subsidiaries, if the Board of Directors shall determine that the preservation
      thereof is no longer desirable in the conduct of the business of the Company
      and
      its Subsidiaries, taken as a whole, and that the loss thereof is not adverse
      in
      any material respect to the Holders of the Notes.

     

    ARTICLE
      5.

    SUCCESSORS

     

    Section
      5.01 Merger,
      Consolidation or Sale of Assets.

     

    The
      Company shall not, directly or indirectly: (1) consolidate or merge with or
      into
      another person, whether or not the Company is the surviving corporation, or
      (2)
      sell, assign, transfer, convey or otherwise dispose of all or substantially
      all
      of the properties or assets of the Company and its Subsidiaries, taken as a
      whole, in one or more related transactions, to another Person
      unless:

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (i)
      either: (a) the Company is the surviving corporation; or (b) the Person formed
      by or surviving any such consolidation or merger, if other than the Company,
      or
      to which such sale, assignment, transfer, conveyance or other disposition shall
      have been made is a corporation organized or existing under the laws of the
      Republic of the Marshall Islands, the United States, any state of the United
      States or the District of Columbia;

     

    (ii) the
      Person formed by or surviving any such consolidation or merger, if other than
      the Company, or the Person to which such sale, assignment, transfer, conveyance
      or other disposition shall have been made assumes all the obligations of the
      Company under the Notes and this Indenture pursuant to a supplemental indenture
      (and other applicable documents), executed and delivered to the Trustee, in
      form
      reasonably satisfactory to the Trustee; 

     

    (iii) immediately
      after such transaction no Default or Event of Default exists; and

     

    (iv) the
      Company has delivered to the Trustee an Officer’s Certificate stating and an
      Opinion of Counsel stating in the opinion of such counsel that such transaction
      and, if applicable, the supplemental indenture required in connection with
      such
      transaction pursuant to Section 5.01(ii) complies with this Section 5.01 and
      that all conditions precedent herein provided for relating to such transaction
      have been complied with.

     

    The
      Company may not, directly or indirectly, lease all or substantially all of
      the
      properties or assets, in one or more related transactions, to any other Person.
      The provisions of this Section 5.01 shall not apply to (1) a merger of the
      Company with an Affiliate solely for the purpose of reincorporating the Company
      in another jurisdiction or forming a direct holding company of the Company
      or
      (2) to a sale, assignment, transfer, conveyance or other disposition of assets
      between or among the Company and its Subsidiaries.

     

    Section
      5.02 Successor
      Corporation Substituted.

     

    Upon
      any
      consolidation or merger, or any sale, assignment, transfer, lease, conveyance
      or
      other disposition of all or substantially all of the assets of the Company
      in
      accordance with Section 5.01 hereof, the successor person formed by such
      consolidation or into or with which the Company is merged or to which such
      sale,
      assignment, transfer, lease, conveyance or other disposition is made shall
      succeed to, and be substituted for (so that from and after the date of such
      consolidation, merger, sale, lease, conveyance or other disposition, the
      provisions of this Indenture referring to the “Company” shall refer instead to
      the successor corporation and not to the Company), 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; provided,
      however,
      that
      the predecessor Company shall not be relieved from the obligation to pay the
      principal of and interest on any Series of Notes except in the case of a sale
      of
      all of the Company’s assets that meets the requirements of Section 5.01
      hereof.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      6.

    DEFAULTS
      AND REMEDIES

     

    Section
      6.01 Events
      of Default.

     

    “Event
      of Default,”
      wherever used herein with respect to Notes of any Series, means any one of
      the
      following events, unless in the establishing Board Resolution, supplemental
      indenture or Officer’s Certificate, it is provided that such Series shall not
      have the benefit of said Event of Default:

     

    
      	 	
              (1)

            	
              default
                in the payment of any interest on any Note of that Series when it
                becomes
                due and payable, and continuance of such default for a period of
                30 days;
                or

            

    

     

    
      	 	
              (2)

            	
              default
                in payment when due of the principal of, or premium, if any, on any
                Note
                of that Series; or

            

    

     

    
      	 	
              (3)

            	
              default
                in the deposit of any sinking fund payment, when and as due in respect
                of
                any Note of that Series; or

            

    

     

    
      	 	
              (4)

            	
              default
                in the performance or breach of any covenant or warranty of the Company
                in
                this Indenture (other than a covenant or warranty that has been included
                in this Indenture solely for the benefit of Series of Notes other
                than
                that Series), which default continues uncured for a period of 30
                days
                after written notice given by the Trustees for Notes of that Series
                or
                Holders of not less than 25% in principal amount of the outstanding
                Notes
                of that Series; or 

            

    

     

    
      	 	
              (5)

            	
              default
                under a mortgage, indenture or instrument under such conditions as
                may be
                provided pursuant to Section
                2.02(w)
                in
                respect of Notes of that Series; or

            

    

     

    
      	 	
              (6)

            	
              one
                or more judgments for the payment of money in an aggregate amount
                in
                excess of $10.0 million (excluding therefrom any amount reasonably
                expected to be covered by insurance) shall be rendered against the
                Company
                any Subsidiary or any combination thereof and the same shall not
                have been
                paid, discharged or stayed for a period of 60 days after such judgment
                became final and nonappealable; or

            

    

     

    
      	 	
              (7)

            	
              the
                Company pursuant to or within the meaning of any Bankruptcy
                Law:

            

    

     

    (a)    commences
      a voluntary case,

     

    (b)    consents
      to the entry of an order for relief against it in an involuntary
      case,

     

    (c)    consents
      to the appointment of a Custodian of it or for all or substantially all of
      its
      property,

     

    (d)    makes
      a
      general assignment for the benefit of its creditors, or

     

    (e)    generally
      is unable to pay its debts as the same become due; or

     

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
 

    (8)   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 60 days; or

     

    
      	 	
              (9) 
                

            	
              any
                other Event of Default provided with respect to Notes of that Series,
                which is specified in a Board Resolution, a supplemental indenture
                hereto
                or an Officer’s Certificate, in accordance with Section
                2.02.

            

    

     

    Section
      6.02 Acceleration.

     

    If
      an
      Event of Default with respect to Notes of any Series at the time outstanding
      occurs and is continuing (other than an Event of Default referred to in Sections
      6.01(7) or (8) hereof) then in every such case the Trustee or the Holders of
      not
      less than 25% in principal amount of the outstanding Notes of that Series may
      declare the principal amount (or, if any Notes of that Series are Discount
      Notes, such portion of the principal amount as may be specified in the terms
      of
      such Notes) of and accrued and unpaid interest, if any, on all of the Notes
      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) and accrued and unpaid interest,
      if
      any, shall become immediately due and payable. If an Event of Default specified
      in Sections 6.01(7) or (8) hereof shall occur, the principal amount (or
      specified amount) of and accrued and unpaid interest, if any, on all outstanding
      Notes shall ipso
      facto
      become
      and be immediately due and payable without any declaration or other act on
      the
      part of the Trustee or any Holder.

     

    At
      any
      time after such a declaration of acceleration with respect to any Series has
      been made, the Holders of a majority in principal amount of the outstanding
      Notes of that Series, by written notice to the Company and the Trustee, may
      rescind and annul such declaration and its consequences if the rescission would
      not conflict with any judgment or decree and if all existing Events of Default
      (except nonpayment of principal, interest or premium that has become due solely
      because of the acceleration) have been cured or waived.

     

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

     

    Section
      6.03 Other
      Remedies.

     

    If
      an
      Event of Default with respect to Notes of any Series at the time outstanding
      occurs and is continuing, the Trustee may pursue any available remedy to collect
      the payment of principal, premium, if any, and interest on such Notes or to
      enforce the performance of any provision of such Notes or this
      Indenture.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    The
      Trustee may maintain a proceeding even if it does not possess any of the Notes
      or does not produce any of them in the proceeding. A delay or omission by the
      Trustee or any Holder of a Note in exercising any right or remedy accruing
      upon
      an Event of Default shall not impair the right or remedy or constitute a waiver
      of or acquiescence in the Event of Default. All remedies are cumulative to
      the
      extent permitted by law.

     

    Section
      6.04 Waiver
      of Past Defaults.

     

    The
      Holders of a majority in aggregate principal amount of the Notes of any Series
      then outstanding by notice to the Trustee may on behalf of the Holders of all
      of
      the Notes of such Series waive any existing Default or Event of Default and
      its
      consequences under this Indenture except a continuing Default or Event of
      Default in the payment of interest on, or the principal of, such Notes
      (including in connection with an offer to purchase); provided,
      however,
      that
      the Holders of a majority in aggregate principal amount of the then outstanding
      Notes of any Series may rescind an acceleration of such Notes and its
      consequences, including any related payment default that resulted from such
      acceleration. Upon any such waiver, such Default or Event of 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 Event of Default or impair any right
      consequent thereon.

     

    Section
      6.05 Control
      by Majority.

     

    Holders
      of a majority in principal amount of the then outstanding Notes of any Series
      may direct the time, method and place of conducting any proceeding for
      exercising any remedy available to the Trustee or exercising any trust or power
      conferred on it. However, the Trustee may refuse to follow any direction that
      conflicts with law or this Indenture that the Trustee determines may be unduly
      prejudicial to the rights of other Holders of Notes or that may involve the
      Trustee in personal liability.

     

    Section
      6.06 Limitation
      on Suits.

     

    A
      Holder
      of any Series of Notes may pursue a remedy with respect to this Indenture or
      the
      Notes only if:

     

    (a) such
      Holder has given to the Trustee written notice of a continuing Event of
      Default;

     

    (b) the
      Holders of at least 25% in principal amount of the then outstanding Notes of
      such Series make a written request to the Trustee to pursue the
      remedy;

     

    (c) such
      Holder of a Note of such Series or Holders of Notes of such Series offer and,
      if
      requested, provide to the Trustee indemnity satisfactory to the Trustee against
      any loss, liability or expense;

     

    (d) the
      Trustee does not comply with the request within 60 days after receipt of the
      request and the offer and, if requested, the provision of indemnity;
      and

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

     

    (e) during
      such 60-day period the Holders of a majority in principal amount of the then
      outstanding Notes of such Series do not give the Trustee a direction
      inconsistent with the request.

     

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

     

    Section
      6.07 Rights
      of Holders of Notes to Receive Payment.

     

    Notwithstanding
      any other provision of this Indenture, the right of any Holder of a Note to
      receive payment of principal, premium, if any, and interest on the Note, on
      or
      after the respective due dates expressed in the Note (including in connection
      with an offer to purchase), or to bring suit for the enforcement of any such
      payment on or after such respective dates, shall not be impaired or affected
      without the consent of such Holder.

     

    Section
      6.08 Collection
      Suit by Trustee.

     

    If
      an
      Event of Default specified in Sections 6.01(a) or (b) hereof occurs and is
      continuing, the Trustee is authorized to recover judgment in its own name and
      as
      Trustee of an express trust against the Company for the whole amount of
      principal of, premium, if any, and interest remaining unpaid on the Notes and
      interest on overdue principal and, to the extent lawful, interest and 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.

     

    Section
      6.09 Trustee
      May File Proofs of Claim.

     

    The
      Trustee for each Series of Notes is authorized to file such proofs of claim
      and
      other papers or documents as may be necessary or advisable in order to have
      the
      claims of the Trustee (including any claim for the reasonable compensation,
      expenses, disbursements and advances of the Trustee, its agents and counsel)
      and
      the Holders of the Notes allowed in any judicial proceedings relative to the
      Company (or any other obligor upon the Notes), its creditors or its property
      and
      shall be entitled and empowered to collect, receive and distribute any money
      or
      other property payable or deliverable on any such claims and any custodian
      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 the Holders, to pay to the Trustee any
      amount due to it for the reasonable compensation, expenses, disbursements and
      advances of the Trustee, its agents and counsel, and any other amounts due
      the
      Trustee under Section 7.07 hereof. To the extent that the payment of any such
      compensation, expenses, disbursements and advances of the Trustee, its agents
      and counsel, and any other amounts due the Trustee under Section 7.07 hereof
      out
      of the estate in any such proceeding, shall be denied for any reason, payment
      of
      the same shall be secured by a Lien on, and shall be paid out of, any and all
      distributions, dividends, money, securities and other properties that the
      Holders may be entitled to receive in such proceeding whether in liquidation
      or
      under any plan of reorganization or arrangement or otherwise. Nothing herein
      contained shall be deemed to authorize the Trustee to authorize or consent
      to or
      accept or adopt on behalf of any Holder any

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    plan
      of
      reorganization, arrangement, adjustment or composition affecting the Notes
      or
      the rights of any Holder, or to authorize the Trustee to vote in respect of
      the
      claim of any Holder in any such proceeding.

     

    Section
      6.10 Priorities.

     

    If
      the
      Trustee collects any money or property pursuant to this Article 6, it shall
      pay
      out the money in the following order:

     

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

     

    Second:
      to
      Holders of the Notes for amounts due and unpaid on the Notes for principal,
      premium, if any, and interest, ratably, without preference or priority of any
      kind, according to the amounts due and payable on the Notes for principal,
      premium, if any and interest, respectively; and

     

    Third:
      to the
      Company.

     

    The
      Trustee may fix a record date and payment date for any payment to Holders of
      Notes pursuant to this Section 6.10.

     

    Section
      6.11 Undertaking
      for Costs.

     

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

     

    ARTICLE
      7.

    TRUSTEE

     

    Section
      7.01 Duties
      of Trustee.

     

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

     

    (b) Except
      during the continuance of an Event of Default:

     

    (i) the
      duties of the Trustee shall be determined solely by the express provisions
      of
      this Indenture and the Trustee need perform only those duties that are
      specifically

     

     

    
      
        
        

      

      
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    set
      forth
      in this Indenture and no others, and no implied covenants or obligations shall
      be read into this Indenture against the Trustee; and

     

    (ii) in
      the
      absence of bad faith on its part, the Trustee may conclusively rely, as to
      the
      truth of the statements and the correctness of the opinions expressed therein,
      upon certificates or opinions furnished to the Trustee and conforming to the
      requirements of this Indenture, but in the case of any such certificates of
      opinions which by any provision hereof are specifically required to be furnished
      to the Trustee, the Trustee shall be under a duty to examine the same to
      determine whether or not they conform to the requirements of this Indenture
      (but
      need not confirm or investigate the accuracy of mathematical calculations or
      other facts stated therein).

     

    (c) The
      Trustee may not be relieved from liabilities for its own negligent action,
      its
      own negligent failure to act, or its own willful misconduct, except
      that:

     

    (i) this
      paragraph does not limit the effect of paragraph (b) of this
      Section;

     

    (ii) the
      Trustee shall not be liable for any error of judgment made in good faith by
      a
      Responsible Officer, unless it is proved that the Trustee was negligent in
      ascertaining the pertinent facts; and

     

    (iii) the
      Trustee shall not be liable with respect to any action it takes or omits to
      take
      in good faith in accordance with a direction received by it pursuant to Section
      6.05 hereof.

     

    (d) Whether
      or not therein expressly so provided, every provision of this Indenture that
      in
      any way relates to the Trustee is subject to paragraphs (a), (b), (c), (e)
      and
      (f) of this Section and Section 7.02.

     

    (e) No
      provision of this Indenture shall require the Trustee to expend or risk its
      own
      funds or incur any liability. The Trustee shall be under no obligation to
      exercise any of its rights and powers under this Indenture at the request of
      any
      Holders, unless such Holder shall have offered to the Trustee security and
      indemnity satisfactory to it against any loss, liability or
      expense.

     

    (f) The
      Trustee shall not be liable for interest on any money received by it except
      as
      the Trustee may agree in writing with the Company. Money held in trust by the
      Trustee need not be segregated from other funds except to the extent required
      by
      law.

     

    Section
      7.02 Rights
      of Trustee.

     

    (a) The
      Trustee may conclusively rely upon any document believed by it to be genuine
      and
      to have been signed or presented by the proper Person. The Trustee need not
      investigate any fact or matter stated in the document.

     

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

     

     

    
      
        
        

      

      
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    Counsel.
      The Trustee may consult with counsel of its selection and the advice of such
      counsel or any Opinion of Counsel shall be full and complete authorization
      and
      protection from liability in respect of any action taken, suffered or omitted
      by
      it hereunder in good faith and in reliance thereon.

     

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

     

    (d) The
      Trustee shall not be liable for any action it takes or omits to take in good
      faith that it believes to be authorized or within the rights or powers conferred
      upon it by this Indenture.

     

    (e) Unless
      otherwise specifically provided in this Indenture, any demand, request,
      direction or notice from the Company shall be sufficient if signed by an Officer
      of the Company issuing such demand, request or notice.

     

    (f) 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
      unless such Holders shall have offered to the Trustee reasonable security or
      indemnity satisfactory to it against the costs, expenses and liabilities that
      might be incurred by it in compliance with such request or
      direction.

     

    (g) 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, conclusively rely
      upon
      an Officer’s Certificate.

     

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

     

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

     

    (j) The
      Trustee may request that the Company deliver an Officer’s 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 Officer’s
      Certificate may be signed by any person authorized to sign an Officer’s
      Certificate, including any person as so authorized in any such certificate
      previously delivered and not superseded.

     

    Section
      7.03 Individual
      Rights of Trustee.

     

    The
      Trustee in its individual or any other capacity may become the owner or pledgee
      of Notes and may otherwise deal with the Company or any Affiliate of the Company
      with the same rights it would have if it were not Trustee. However, in the
      event
      the Trustee acquires any

     

    
      
        
        

      

      
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    conflicting
      interest it must eliminate such conflict within 90 days, apply to the SEC for
      permission to continue as Trustee or resign. Any Agent may exercise the same
      rights, with the same duties, as the Trustee under this Section 7.03. The
      Trustee is also subject to Sections 7.10 and 7.11 hereof.

     

    Section
      7.04 Trustee’s
      Disclaimer.

     

    The
      Trustee shall not be responsible for and makes no representation as to the
      validity or adequacy of this Indenture or the Notes, it shall not be accountable
      for the Company’s use of the proceeds from the Notes or any money paid to the
      Company or upon the Company’s direction under any provision of this Indenture,
      it shall not be responsible for the use or application of any money received
      by
      any Paying Agent other than the Trustee, and it shall not be responsible for
      any
      statement or recital herein or any statement in the Notes or any other document
      in connection with the sale of the Notes or pursuant to this Indenture other
      than its certificate of authentication.

     

    Section
      7.05 Notice
      of Defaults.

     

    If
      a
      Default or Event of Default occurs and is continuing and if it is actually
      known
      to a Responsible Officer of the Trustee, the Trustee shall mail to Holders
      of
      Notes a notice of the Default or Event of Default within 90 days after it
      occurs. Except in the case of a Default or Event of Default relating to the
      payment of principal of or interest on any Note, the Trustee may withhold the
      notice from Holders of the Notes if and so long as a Responsible Officer(s)
      in
      good faith determines that withholding the notice is in the interests of the
      Holders of the Notes.

     

    Section
      7.06 Reports
      by Trustee to Holders of the Notes.

     

    Within
      60
      days after each May 15 beginning with the May 15 following the first issuance
      of
      Notes under this Indenture, and for so long as Notes remain outstanding, the
      Trustee shall mail to the Holders of the Notes a brief report dated as of such
      reporting date that complies with TIA Section 313(a) (but if no event described
      in TIA Section 313(a) has occurred within the twelve months preceding the
      reporting date, no report need be transmitted). The Trustee also shall comply
      with TIA Section 313(b)(2). The Trustee shall also transmit by mail all reports
      as required by TIA Section 313(c).

     

    A
      copy of
      each report at the time of its mailing to the Holders of Notes shall be mailed
      to the Company and filed with the SEC and each stock exchange on which the
      Notes
      are listed in accordance with TIA Section 313(d). The Company shall promptly
      notify the Trustee when the Notes are listed on any stock exchange or delisted
      therefrom.

     

    Section
      7.07 Compensation
      and Indemnity.

     

    The
      Company shall pay to the Trustee from time to time such reasonable compensation
      as agreed upon in writing for its acceptance of this Indenture and services
      hereunder. The Trustee’s compensation shall not be limited by any law on
      compensation of a Trustee of an express trust. The Company shall reimburse
      the
      Trustee promptly upon request for all reasonable disbursements, advances and
      expenses incurred or made by it in addition to the compensation for its
      services, except to the extent any such expense, advance or disbursement may
      be
      attributable

     

    
      
        
        

      

      
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    to
      the
      Trustee’s negligence, willful misconduct or bad faith. Such expenses shall
      include the reasonable compensation, disbursements and expenses of the Trustee’s
      agents and counsel.

     

    The
      Company shall indemnify the Trustee against any and all losses, liabilities,
      claims, damages or expenses (including taxes other than taxes based upon the
      income of the Trustee) incurred by it arising out of or in connection with
      the
      acceptance or administration of its duties under this Indenture, including
      the
      costs and expenses of enforcing this Indenture against the Company (including
      this Section 7.07) and defending itself against any claim (whether asserted
      by
      the Company or any Holder or any other person) or liability in connection with
      the exercise or performance of any of its powers or duties hereunder, except
      to
      the extent any such loss, liability or expense may be attributable to its
      negligence, bad faith or willful misconduct. The Trustee shall notify the
      Company promptly of any claim for which it may seek indemnity. Failure by the
      Trustee to so notify the Company shall not relieve the Company of its
      obligations hereunder. The Company shall defend the claim and the Trustee shall
      cooperate in the defense. The Trustee may have separate counsel and the Company
      shall pay the reasonable fees and expenses of such counsel. The Company need
      not
      pay for any settlement made without its consent, which consent shall not be
      unreasonably withheld.

     

    The
      obligations of the Company under this Section 7.07 shall survive the
      satisfaction and discharge of this Indenture.

     

    To
      secure
      the Company’s payment obligations in this Section, the Trustee shall have a Lien
      prior to the Notes on all money or property held or collected by the Trustee,
      except that held in trust to pay principal and interest on particular Notes.
      Such Lien shall survive the satisfaction and discharge of this
      Indenture.

     

    When
      the
      Trustee incurs expenses or renders services after an Event of Default specified
      in Section 6.01(7) or (8) hereof occurs, the expenses and the compensation
      for
      the services (including the fees and expenses of its agents and counsel) are
      intended to constitute expenses of administration under any Bankruptcy
      Law.

     

    The
      Trustee shall comply with the provisions of TIA Section 313(b)(2) to the extent
      applicable.

     

    Section
      7.08 Replacement
      of Trustee.

     

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

     

    The
      Trustee may resign in writing at any time and be discharged from the trust
      hereby created by so notifying the Company. The Holders of Notes of a majority
      in principal amount of the then outstanding Notes of a given Series may remove
      the Trustee with respect to the Notes of such Series by so notifying the Trustee
      and the Company in writing. The Company may remove the Trustee if:

     

    (a)    the
      Trustee fails to comply with Section 7.10 hereof;

     

     

    
      
        
        

      

      
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    (b)    the
      Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered
      with respect to the Trustee under any Bankruptcy Law;

     

    (c)    a
      custodian or public officer takes charge of the Trustee or its property;
      or

     

    (d)    the
      Trustee becomes incapable of acting.

     

    If
      the
      Trustee resigns or is removed or if a vacancy exists in the office of Trustee
      for any reason, the Company shall promptly appoint a successor Trustee. Within
      one year after the successor Trustee takes office, the Holders of a majority
      in
      principal amount of the then outstanding Notes may appoint a successor Trustee
      to replace the successor Trustee appointed by the Company.

     

    If
      a
      successor Trustee does not take office within 60 days after the retiring Trustee
      resigns or is removed, the retiring Trustee, the Company, or the Holders of
      Notes of at least 10% in principal amount of the then outstanding Notes of
      a
      given Series may petition at the expense of the Company any court of competent
      jurisdiction for the appointment of a successor Trustee with respect to the
      Notes of such Series.

     

    If
      the
      Trustee, after written request by any Holder of a Note of a given Series who
      has
      been a Holder of such Note for at least six months, fails to comply with Section
      7.10, such Holder of such Note may petition any court of competent jurisdiction
      for the removal of the Trustee and the appointment of a successor Trustee with
      respect to the Notes of such Series.

     

    A
      successor Trustee shall deliver a written acceptance of its appointment to
      the
      retiring Trustee and to the Company. Thereupon, the resignation or removal
      of
      the retiring Trustee shall become effective, and the successor Trustee shall
      have all the rights, powers and duties of the Trustee under this Indenture.
      The
      successor Trustee shall mail a notice of its succession to Holders of the Notes.
      The retiring Trustee shall promptly transfer all property held by it as Trustee
      to the successor Trustee, provided
      all sums
      owing to the Trustee (including its agents and/or counsel) hereunder have been
      paid and subject to the Lien provided for in Section 7.07 hereof.
      Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the
      Company’s obligations under Section 7.07 hereof shall continue for the benefit
      of the retiring Trustee.

     

    Section
      7.09 Successor
      Trustee by Merger, Etc.

     

    If
      the
      Trustee consolidates, merges or converts into, or transfers all or substantially
      all of its corporate trust business to, another corporation, the successor
      corporation without any further act shall be the successor Trustee.

     

    Section
      7.10 Eligibility;
      Disqualification.

     

    There
      shall at all times be a Trustee hereunder that is a corporation organized and
      doing business under the laws of the United States of America or of any state
      thereof that is authorized under such laws to exercise corporate Trustee power,
      that is subject to supervision or examination by federal or state authorities
      and that has a combined capital and surplus of at least $100 million as set
      forth in its most recent published annual report of condition.

     

    
      
        
        

      

      
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    This
      Indenture shall always have a Trustee who satisfies the requirements of TIA
      Section 310(a)(1), (2) and (5). The Trustee is subject to TIA Section
      310(b).

     

    Section
      7.11 Preferential
      Collection of Claims Against Company.

     

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

     

    Section
      7.12 Trustee’s
      Application for Instructions from the Company.

     

    Any
      application by the Trustee for written instructions from the Company may, at
      the
      option of the Trustee, set forth in writing any action proposed to be taken
      or
      omitted by the Trustee under this Indenture and the date on and/or after which
      such action shall be taken or such omission shall be effective. The Trustee
      shall not be liable for any action taken by, or omission of, the Trustee in
      accordance with a proposal included in such application on or after the date
      specified in such application (which date shall not be less than three Business
      Days after the date any officer of the Company actually receives such
      application, unless any such officer shall have consented in writing to any
      earlier date) unless prior to the taking of such action (or the effective date
      in the case of an omission), the Trustee shall have received written
      instructions in response to such application specifying the action to be taken
      or omitted.

     

    ARTICLE
      8.

    LEGAL
      DEFEASANCE AND COVENANT DEFEASANCE

     

    Section
      8.01 Option
      to Effect Legal Defeasance or Covenant Defeasance.

     

    The
      Company may, at the option of its Board of Directors evidenced by a resolution
      set forth in an Officer’s Certificate, at any time, elect to have either Section
      8.02 or 8.03 hereof be applied to any Series of outstanding Notes upon
      compliance with the conditions set forth below in this Article 8.

     

    Section
      8.02 Legal
      Defeasance and Discharge.

     

    Upon
      the
      Company’s exercise under Section 8.01 hereof of the option applicable to this
      Section 8.02, the Company and each of the guarantors, if any, shall, subject
      to
      the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed
      to have been discharged from their obligations with respect to all outstanding
      Notes of such Series (including the related guarantees, if any) on the date
      the
      conditions set forth below are satisfied (hereinafter, “Legal
      Defeasance”).
      For
      this purpose, Legal Defeasance means that the Company shall be deemed to have
      paid and discharged the entire Indebtedness represented by the outstanding
      Notes
      of such Series (including the related guarantees, if any), which shall
      thereafter be deemed to be “outstanding” only for the purposes of Section 8.05
      hereof and the other Sections of this Indenture referred to in (a) and (b)
      below, and to have satisfied all of their other obligations under such Notes,
      such guarantees, if any and this Indenture (and the Trustee, on demand of and
      at
      the expense of the Company, shall execute proper instruments acknowledging
      the
      same), except for the following provisions which shall survive until otherwise
      terminated or discharged hereunder: (a) the rights of Holders of outstanding
      Notes to receive solely from the trust fund described in Section
      8.05

     

    
      
        
        

      

      
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    hereof,
      and as more fully set forth in such Section, payments in respect of the
      principal of, interest and premium, if any, on such Notes when such payments
      are
      due, (b) the Company’s obligations with respect to the Notes under Article 2 and
      Section 4.01 hereof, (c) the rights, powers, trusts, duties and immunities
      of
      the Trustee hereunder and the Company’s obligations in connection therewith and
      (d) this Article 8. Subject to compliance with this Article 8, the Company
      may
      exercise its option under this Section 8.02 notwithstanding the prior exercise
      of its option under Section 8.03 hereof.

     

    Section
      8.03 Covenant
      Defeasance.

     

    Upon
      the
      Company’s exercise under Section 8.01 hereof of the option applicable to this
      Section 8.03, the Company and each of the guarantors, if any, will, subject
      to
      the satisfaction of the conditions set forth in Section 8.04 hereof, be released
      from their obligations under the covenants contained in Section 4.03, 4.04
      and
      4.05 with respect to the outstanding Notes of the applicable Series on and
      after
      the date the conditions set forth in Section 8.04 are satisfied (hereinafter,
      “Covenant
      Defeasance”),
      and
      the Notes shall thereafter be deemed not “outstanding” for the purposes of any
      direction, waiver, consent or declaration 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 (it being
      understood that such Notes shall not be deemed outstanding for accounting
      purposes). For this purpose, Covenant Defeasance means that, with respect to
      the
      outstanding Notes 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 covenant, whether directly or indirectly, by reason of any reference
      elsewhere herein to any such covenant or by reason of any reference in any
      such
      covenant 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 6.01 hereof, but, except as specified above, the remainder of this
      Indenture and such Notes shall be unaffected thereby. In addition, upon the
      Company’s exercise under Section 8.01 hereof of the option applicable to this
      Section 8.03, subject to the satisfaction of the conditions set forth in Section
      8.04 hereof, Sections 6.01(4) through 6.01(6) hereof shall not constitute Events
      of Default.

     

    Section
      8.04 Conditions
      to Legal or Covenant Defeasance.

     

    The
      following shall be the conditions to the application of either Sections 8.02
      or
      8.03 hereof to any outstanding Series of Notes:

     

    In
      order
      to exercise either Legal Defeasance or Covenant Defeasance:

     

    (a) the
      Company must irrevocably deposit with the Trustee, in trust, for the benefit
      of
      the Holders, cash in United States dollars, non-callable Government Securities,
      or a combination of cash in U.S. dollars and non-callable Government Securities
      in such amounts as will be sufficient, in the opinion of a nationally recognized
      firm of independent public accountants, to pay the principal of, interest and
      premium, if any, on the outstanding Notes of such Series on the stated maturity
      or on the applicable redemption date, as the case may be, and the Company must
      specify whether the Notes are being defeased to maturity or to a particular
      redemption date;

     

     

    
      
        
        

      

      
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    (b) in
      the
      case of an election under Section 8.02 hereof with respect to any Series of
      Notes, the Company shall have delivered to the Trustee an Opinion of Counsel
      reasonably acceptable to the Trustee confirming that (A) the Company has
      received from, or there has been published by, the Internal Revenue Service
      a
      ruling or (B) since the date of this Indenture, there has been a change in
      the
      applicable U.S. federal income tax law, in either case to the effect that,
      and
      based thereon such Opinion of Counsel shall confirm that, the Holders of the
      outstanding Notes of such Series will not recognize income, gain or loss for
      U.S. federal income tax purposes as a result of such Legal Defeasance and will
      be subject to U.S. federal income tax on the same amounts, in the same manner
      and at the same times as would have been the case if such Legal Defeasance
      had
      not occurred;

     

    (c) in
      the
      case of an election under Section 8.03 hereof with respect to any Series of
      Notes, the Company shall have delivered to the Trustee an Opinion of Counsel
      reasonably acceptable to the Trustee confirming that the Holders of the
      outstanding Notes of such Series will not recognize income, gain or loss for
      U.S. federal income tax purposes as a result of such Covenant Defeasance and
      will be subject to U.S. federal income tax on the same amounts, in the same
      manner and at the same times as would have been the case if such Covenant
      Defeasance had not occurred;

     

    (d) no
      Default or Event of Default shall have occurred and be continuing on the date
      of
      such deposit, other than a Default or Event of Default resulting from the
      incurrence of Indebtedness all or a portion of the proceeds of which will be
      used to defease the Notes of any Series pursuant to this Article 8 concurrently
      with such incurrence, or insofar as Sections 6.01(7) or 6.01(8) hereof is
      concerned, at any time in the period ending on the 91st day after the date
      of
      deposit;

     

    (e) such
      Legal Defeasance or Covenant Defeasance shall not result in a breach or
      violation of, or constitute a default under, any material agreement or
      instrument, other than this Indenture, to which the Company or any of its
      Subsidiaries is a party or by which the Company or any of its Subsidiaries
      is
      bound;

     

    (f) the
      Company shall have delivered to the Trustee an Officer’s Certificate stating
      that the deposit was not made by the Company with the intent of preferring
      the
      Holders of the Notes over the other creditors of the Company with the intent
      of
      defeating, hindering, delaying or defrauding creditors of the Company or others;
      and

     

    (g) the
      Company shall have delivered to the Trustee an Officer’s Certificate and an
      Opinion of Counsel, each stating that all conditions precedent relating to
      the
      Legal Defeasance or the Covenant Defeasance have been complied
      with.

     

    Section
      8.05 Deposited
      Money and Government Securities to Be Held in Trust; Other Miscellaneous
      Provisions.

     

    Subject
      to Section 8.06 hereof, all money and non-callable Government Securities
      (including the proceeds thereof) deposited with the Trustee (or other qualifying
      trustee, collectively for purposes of this Section 8.05, the “Trustee”)
      pursuant to Section 8.04 hereof in respect of the outstanding Notes of any
      Series shall be held in trust and applied by the Trustee, in

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    accordance
      with the provisions of such Notes and this Indenture, to the payment, either
      directly or through any Paying Agent (including the Company acting as Paying
      Agent) as the Trustee may determine, to the Holders of such Notes of all sums
      due and to become due thereon in respect of principal, premium, if any, and
      interest, but such money need not be segregated from other funds except to
      the
      extent required by law.

     

    The
      Company shall pay and indemnify the Trustee against any tax, fee or other charge
      imposed on or assessed against the cash or non-callable Government Securities
      deposited pursuant to Section 8.04 hereof or the principal and interest received
      in respect thereof other than any such tax, fee or other charge which by law
      is
      for the account of the Holders of the outstanding Notes of the applicable
      Series.

     

    Anything
      in this Article 8 to the contrary notwithstanding, the Trustee shall deliver
      or
      pay to the Company from time to time upon the request of the Company any money
      or non-callable Government Securities held by it as provided in Section 8.04
      hereof which, in the opinion of a nationally recognized firm of independent
      public accountants expressed in a written certification thereof delivered to
      the
      Trustee (which may be the opinion delivered under Section 8.04(a) hereof),
      are
      in excess of the amount thereof that would then be required to be deposited
      to
      effect an equivalent Legal Defeasance or Covenant Defeasance.

     

    Section
      8.06 Repayment
      to Company.

     

    Any
      money
      deposited with the Trustee or any Paying Agent, or then held by the Company,
      in
      trust for the payment of the principal of, premium, if any, or interest on
      any
      Series of Notes and remaining unclaimed for two years after such principal,
      and
      premium, if any, or interest has become due and payable shall be paid to the
      Company on its request or (if then held by the Company) shall be discharged
      from
      such trust; and the Holder of such Note shall thereafter look only to the
      Company 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
      repayment, may at the reasonable expense of the Company cause to be published
      once, in the New
      York Times
      and the
Wall
      Street Journal
      (national edition), 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 notification or publication, any unclaimed balance of such money then
      remaining shall be repaid to the Company.

     

    Section
      8.07 Reinstatement.

     

    If
      the
      Trustee or Paying Agent is unable to apply any United States dollars or
      non-callable Government Securities in accordance with Section 8.02 or 8.03
      hereof, as the case may be, by reason of any order or judgment of any court
      or
      governmental authority enjoining, restraining or otherwise prohibiting such
      application, then the Company’s and any applicable guarantors’ obligations under
      this Indenture and the applicable Notes and the guarantees shall be revived
      and
      reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03
      hereof until such time as the Trustee or Paying Agent is permitted to apply
      all
      such money in accordance with Section 8.02 or 8.03 hereof, as the case may
      be;
provided,
      however,
      that,
      if the Company makes any payment of principal of, premium, if any, or interest
      on any Note following

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    the
      reinstatement of its obligations, the Company shall be subrogated to the rights
      of the Holders of such Notes to receive such payment from the money held by
      the
      Trustee or Paying Agent.

     

    ARTICLE
      9.

    AMENDMENT,
      SUPPLEMENT AND WAIVER

     

    Section
      9.01 Without
      Consent of Holders of Notes.

     

    Notwithstanding
      Section 9.02 of this Indenture, the Company and the Trustee may amend or
      supplement this Indenture or the Notes of one or more Series without the consent
      of any Holder of a Note:

     

    
      	 	
              (1)

            	
              to
                cure any ambiguity, defect or
                inconsistency;

            

    

     

    
      	 	
              (2)

            	
              to
                provide for uncertificated Notes in addition to or in place of
                certificated Notes;

            

    

     

    
      	 	
              (3)

            	
              to
                provide for the assumption of the Company’s obligations to the Holders of
                the Notes of a given Series by a successor to the Company pursuant
                to
                Article 5 hereof;

            

    

     

    
      	 	
              (4)

            	
              to
                make any change that would provide any additional rights or benefits
                to
                the Holders of Notes of a given Series or that does not adversely
                affect
                the legal rights hereunder of any Holder of a Note of such
                Series;

            

    

     

    
      	 	
              (5)

            	
              to
                comply with requirements of the SEC in order to effect or maintain
                the
                qualification of this Indenture under the
                TIA;

            

    

     

    
      	 	
              (6)

            	
              to
                provide for the issuance of and establish the form and terms and
                conditions of Notes of any Series as permitted by this Indenture;
                

            

    

     

    
      	 	
              (7)

            	
              to
                evidence and provide for the acceptance of appointment hereunder
                by a
                successor Trustee with respect to the Notes of one or more Series
                and to
                add to or change any of the provisions of this Indenture as shall
                be
                necessary to provide for or facilitate the administration of the
                trusts
                hereunder by more than one Trustee;
                or

            

    

     

    
      	 	
              (8)

            	
              to
                comply with the rules of any securities exchange or automated quotation
                system on which the Notes of such Series may be listed or
                traded.

            

    

     

    Upon
      the
      request of the Company accompanied by a resolution of its Board of Directors
      authorizing the execution of any such amended or supplemental indenture, and
      upon receipt by the Trustee of the documents described in Section 7.02 hereof,
      the Trustee will join with the Company in the execution of any amended or
      supplemental indenture authorized or permitted by the terms of this Indenture
      and to make any further appropriate agreements and stipulations that may be
      therein contained, but the Trustee will not be obligated to enter into such
      amended or supplemental indenture that affects its own rights, duties or
      immunities under this Indenture or otherwise.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    Section
      9.02 With
      Consent of Holders of Notes.

     

    The
      Company and the Trustee may enter into a supplemental indenture with the written
      consent of the Holders of at least a majority in principal amount of the
      outstanding Notes of each Series affected by such supplemental indenture
      (including consents obtained in connection with a tender offer or exchange
      offer
      for the Notes of such Series), for the purpose of adding any provisions to
      or
      changing in any manner or eliminating any of the provisions of this Indenture
      or
      of any supplemental indenture or of modifying in any manner the rights of the
      Holders of Notes of each such Series. Except as otherwise provided herein,
      the
      Holders of at least a majority in principal amount of the outstanding Notes
      of
      each Series by notice to the Trustee (including consents obtained in connection
      with a tender offer or exchange offer for the Notes of such Series) may waive
      compliance by the Company with any provision of this Indenture or the Notes
      with
      respect to such Series.

     

    It
      shall
      not be necessary for the consent of the Holders of Notes under this Section
      9.02
      to approve the particular form of any proposed supplemental indenture or waiver,
      but it shall be sufficient if such consent approves the substance thereof.
      Upon
      the request of the Company accompanied by a resolution of its Board of Directors
      authorizing the execution of any such amended or supplemental indenture, and
      upon the filing with the Trustee of evidence satisfactory to the Trustee of
      the
      consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee
      of
      the documents described in Section 7.02 hereof, the Trustee will join with
      the
      Company in the execution of such amended or supplemental indenture unless such
      amended or supplemental indenture directly affects the Trustee’s own rights,
      duties or immunities under this Indenture or otherwise, in which case the
      Trustee may in its discretion, but will not be obligated to, enter into such
      amended or supplemental Indenture.

     

    After
      a
      supplemental indenture or waiver under this section becomes effective, the
      Company shall mail to the Holders of Notes affected thereby a notice briefly
      describing the supplemental indenture or waiver. Any failure by the Company
      to
      mail such notice, or any defect therein, shall not, however, in any way impair
      or affect the validity of any such supplemental indenture or waiver. However,
      without the consent of each Holder affected, an amendment or waiver under this
      Section 9.02 may not:

     

    (a) reduce
      the principal amount of Notes whose Holders must consent to an amendment or
      waiver;

     

    (b) reduce
      the principal of or change the fixed maturity of any Note or alter or waive
      any
      of the provisions with respect to the redemption of the Notes;

     

    (c) reduce
      the rate of or change the time for payment of interest, including default
      interest, on any Note;

     

    (d) waive
      a
      Default or Event of Default in the payment of principal of or premium, if any,
      or interest, if any, on the Notes of a given Series, except a rescission of
      acceleration of the Notes of such Series by the Holders of at least a majority
      in aggregate principal amount of the then outstanding Notes of such Series
      and a
      waiver of the payment default that resulted from such acceleration;

     

     

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

     

    (e) make
      any
      Note payable in money other than that stated in the Notes;

     

    (f) make
      any
      change in the provisions of this Indenture relating to waivers of past Defaults
      or the rights of Holders of the Notes to receive payments of principal of or
      premium, interest, if any, on the Notes; or

     

    (g) make
      any
      change in the foregoing amendment and waiver provisions.

     

    Section
      9.03 Compliance
      with Trust Indenture Act.

     

    Every
      amendment to this Indenture or the Notes of one or more Series shall be set
      forth in a supplemental indenture hereto that complies with the TIA as then
      in
      effect.

     

    Section
      9.04 Revocation
      and Effect of Consents.

     

    Until
      an
      amendment or waiver becomes effective, consent to it by a Holder of a Note
      is a
      continuing consent by the Holder and every subsequent Holder of a Note or
      portion of a Note that evidences the same debt as the consenting Holder’s Note,
      even if notation of the consent is not made on any Note. However, any such
      Holder or subsequent Holder may revoke the consent as to his Note or portion
      of
      a Note if the Trustee receives the notice of revocation before the date the
      amendment or waiver becomes effective. An amendment or waiver becomes effective
      in accordance with its terms and thereafter binds every Holder.

     

    Section
      9.05 Notation
      on or Exchange of Notes.

     

    The
      Trustee may place an appropriate notation about an amendment or waiver on any
      Note of any Series thereafter authenticated. The Company in exchange for Notes
      of that Series may issue and the Trustee shall authenticate upon request new
      Notes of that Series that reflect the amendment or waiver.

     

    Section
      9.06 Trustee
      Protected.

     

    In
      executing, or accepting the additional trusts created by, any supplemental
      indenture permitted by this Article 9 or the modifications thereby of the trusts
      created by this Indenture, the Trustee shall be entitled to receive, and
      (subject to Section 7.01) shall be fully protected in relying upon, an Opinion
      of Counsel stating that the execution of such supplemental indenture is
      authorized or permitted by this Indenture. The Trustee shall sign all
      supplemental indentures, except that the Trustee need not sign any supplemental
      indenture that adversely affects its rights.

     

    ARTICLE
      10.

    SATISFACTION
      AND DISCHARGE

     

    Section
      10.01 Satisfaction
      and Discharge.

     

    This
      Indenture will be discharged and will cease to be of further effect as to a
      Series of Notes issued hereunder, when:

     

    
      	 	
              (1)

            	
              either:

            

    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    (a) all
      such
      Notes that have been authenticated (except lost, stolen or destroyed Notes
      that
      have been replaced or paid and Notes for whose payment money has theretofore
      been deposited in trust and thereafter repaid to the Company) have been
      delivered to the Trustee for cancellation; or

     

    (b) all
      such
      Notes that have not been delivered to the Trustee for cancellation have become
      due and payable by reason of the mailing of a notice of redemption or otherwise
      or will become due and payable within one year and the Company has irrevocably
      deposited or caused to be deposited with the Trustee as trust funds in trust
      solely for the benefit of the Holders of such Notes, cash in U.S. dollars,
      non-callable Government Securities, or a combination of cash in U.S. dollars
      and
      non-callable Government Securities, in such amounts as will be sufficient
      without consideration of any reinvestment of interest, to pay and discharge
      the
      entire indebtedness on the Notes not delivered to the Trustee for cancellation
      for principal, premium, if any, and accrued interest to the date of maturity
      or
      redemption;

     

    
      	 	
              (2)

            	
              no
                Default or Event of Default has occurred and is continuing on the
                date of
                such deposit or will occur as a result of such deposit and such deposit
                will not result in a breach or violation of, or constitute a default
                under, any other instrument to which the Company or any guarantor,
                as
                applicable, is a party or by which the Company or any guarantor,
                as
                applicable, is bound;

            

    

     

    
      	 	
              (3)

            	
              the
                Company or any guarantor of such Notes has paid or caused to be paid
                all
                sums payable by it under this Indenture;
                and

            

    

     

    
      	 	
              (4)

            	
              the
                Company has delivered irrevocable instructions to the Trustee under
                this
                Indenture to apply the deposited money toward the payment of the
                Notes at
                maturity or the redemption date, as the case may
                be.

            

    

     

    In
      addition, the Company must deliver an Officer’s Certificate and an Opinion of
      Counsel to the Trustee stating that all conditions precedent to satisfaction
      and
      discharge have been satisfied.

     

    Section
      10.02 Application
      of Trust Money.

     

    Subject
      to the provisions of Section 8.06 hereof, all money deposited with a Trustee
      pursuant to Section 10.1 hereof shall be held in trust and applied by it, in
      accordance with the provisions of the Notes with respect to which such deposit
      was made and this Indenture, to the payment, either directly or through any
      Paying Agent (including the Company acting as its own Paying Agent) as such
      Trustee may determine, to the persons entitled thereto, of the principal (and
      premium, if any) and interest for whose payment such money has been deposited
      with such Trustee; but such money need not be segregated from other funds except
      to the extent required by law.

     

    If
      such
      Trustee or Paying Agent is unable to apply any money or Government Securities
      in
      accordance with Section 10.01 hereof 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 Company’s
      and any applicable guarantor’s obligations under this Indenture and the
      applicable Notes shall be revived and reinstated as though no deposit had
      occurred pursuant to Section 10.01 hereof; provided
      that if
      the Company has made any payment

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    of
      principal of, premium, if any, or interest on, any Notes because of the
      reinstatement of its obligations, the Company shall be subrogated to the rights
      of the Holders of such Notes to receive such payment from the money or
      Government Securities held by the Trustee or Paying Agent.

     

    ARTICLE
      11.

    MISCELLANEOUS

     

    Section
      11.01 Trust
      Indenture Act Controls.

     

    If
      any
      provision of this Indenture limits, qualifies or conflicts with the duties
      imposed by TIA Section 318(c), the imposed duties shall control.

     

    Section
      11.02 Notices.

     

    Any
      notice or communication by the Company or the Trustee to the others is duly
      given if in writing and delivered in Person or mailed by first class mail
      (registered or certified, return receipt requested), telecopier or overnight
      air
      courier guaranteeing next day delivery, to the others’ address.

     

    If
      to the
      Company:

    Genco
      Shipping & Trading Limited

    299
      Park
      Avenue, 20th Floor

    New
      York,
      New York 10171

    Facsimile:
      (646) 443-8551

    Attention:
      John C. Wobensmith

     

    If
      to the
      Trustee:

     

    [  ]

    Attention:
      [           
 ]

    Facsimile:
      [  ]

     

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

     

    All
      notices and communications (other than those sent to Holders) shall be deemed
      to
      have been duly given: at the time delivered by hand, if personally delivered;
      five Business Days after being deposited in the mail, postage prepaid, if
      mailed; when receipt acknowledged, if telecopied; and the next Business Day
      after timely delivery to the courier, if sent by overnight air courier
      guaranteeing next day delivery.

     

    Any
      notice or communication to a Holder shall be mailed by first class mail postage
      prepaid, certified or registered mail, return receipt requested, or by overnight
      air courier guaranteeing next day delivery to its address shown on the register
      kept by the Registrar. Any notice or communication shall also be so mailed
      to
      any Person described in TIA Section 313(c), to the extent required by the TIA.
      Failure to mail a notice or communication to a Holder or any defect in it shall
      not affect its sufficiency with respect to other Holders.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    If
      a
      notice or communication is mailed in the manner provided above within the time
      prescribed, it is duly given, whether or not the addressee receives
      it.

     

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

     

    Section
      11.03 Communication
      by Holders of Notes with Other Holders of Notes.

     

    Holders
      of any Series may communicate pursuant to TIA Section 312(b) with other Holders
      of the Series or any other Series with respect to their rights under this
      Indenture or the Notes of that Series or all Series. The Company, the Trustee,
      the Registrar and anyone else shall have the protection of TIA Section
      312(c).

     

    Section
      11.04 Certificate
      and Opinion as to Conditions Precedent.

     

    Upon
      any
      request or application by the Company to the Trustee to take any action under
      this Indenture, the Company shall furnish to the Trustee:

     

    (a) an
      Officer’s Certificate stating that all conditions precedent, if any, provided
      for in this Indenture relating to the proposed action have been complied with;
      and

     

    (b) an
      Opinion of Counsel stating that, in the opinion of such counsel, all such
      conditions precedent and covenants have been complied with.

     

    Section
      11.05 Statements
      Required in Certificate.

     

    Each
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture (other than a certificate provided pursuant
      to
      TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e)
      and shall include:

     

    (a) a
      statement that the Person signing such certificate or opinion has read such
      covenant or condition;

     

    (b) a
      brief
      statement as to the nature and scope of the examination or investigation upon
      which the statements or opinions contained in such certificate or opinion are
      based;

     

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

     

    (d) a
      statement as to whether or not, in the opinion of such Person, such condition
      or
      covenant has been complied with.

     

    Section
      11.06 Rules
      by Trustee and Agents.

     

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

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    Section
      11.07 Calculation
      of Foreign Currency Amounts.

     

    The
      calculation of the U.S. dollar equivalent amount for any amount denominated
      in a
      foreign currency shall be the noon buying rate in the City of New York as
      certified by the Federal Reserve Bank of New York on the date on which such
      determination is required to be made or, if such day is not a day on which
      such
      rate is published, the rate most recently published prior to such
      day.

     

    Section
      11.08 No
      Personal Liability of Directors, Officers, Employees and
      Stockholders.

     

    No
      past,
      present or future director, officer, employee, incorporator or stockholder
      of
      the Company, as such, shall have any liability for any obligations of the
      Company under the Notes, this Indenture or for any claim based on, in respect
      of, or by reason of, such obligations or their creation. Each Holder by
      accepting a Note waives and releases all such liability. The waiver and release
      are part of the consideration for issuance of the Notes. The waiver may not
      be
      effective to waive liabilities under the federal securities laws.

     

    Section
      11.09 Governing
      Law.

     

    THE
      INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE
      THIS
      INDENTURE, THE NOTES AND THE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE
      PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
      OF
      ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     

    Section
      11.10 No
      Adverse Interpretation of Other Agreements.

     

    This
      Indenture may not be used to interpret any other indenture, loan or debt
      agreement of the Company or its Subsidiaries or of any other Person. Any such
      indenture, loan or debt agreement may not be used to interpret this
      Indenture.

     

    Section
      11.11 Successors.

     

    All
      agreements of the Company in this Indenture and the Notes shall bind its
      successors. All agreements of the Trustee in this Indenture shall bind its
      successors.

     

    Section
      11.12 Severability.

     

    In
      case
      any provision in this Indenture or in the Notes 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
      11.13 Counterpart
      Originals.

     

    The
      parties may sign any number of copies of this Indenture. Each signed copy shall
      be an original, but all of them together represent the same
      agreement.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    Section
      11.14 Table
      of Contents, Headings, Etc.

     

    The
      Table
      of Contents, Cross-Reference Table and Headings of the Articles and Sections
      of
      this Indenture have been inserted for convenience of reference only, are not
      to
      be considered a part of this Indenture and shall in no way modify or restrict
      any of the terms or provisions hereof.

     

    ARTICLE
      12.

    SINKING
      FUNDS

     

    Section
      12.01 Applicability
      of Article.

     

    The
      provisions of this Article 12 shall be applicable to any sinking fund for the
      retirement of the Notes of a Series, except as otherwise permitted or required
      by any form of Notes of such Series issued pursuant to this
      Indenture.

     

    The
      minimum amount of any sinking fund payment provided for by the terms of the
      Notes of any Series is herein referred to as a “mandatory
      sinking fund payment”
and
      any
      other amount provided for by the terms of Notes of such Series is herein
      referred to as an “optional
      sinking fund payment.”
If
      provided for by the terms of Notes of any Series, the cash amount of any sinking
      fund payment may be subject to reduction as provided in Section 12.02 hereof.
      Each sinking fund payment shall be applied to the redemption of Notes of any
      Series as provided for by the terms of the Notes of such Series.

     

    Section
      12.02 Satisfaction
      of Sinking Fund Payments with Notes.

     

    The
      Company may, in satisfaction of all or any part of any sinking fund payment
      with
      respect to the Notes of any Series to be made pursuant to the terms of such
      Notes (1) deliver outstanding Notes of such Series to which such sinking fund
      payment is applicable (other than any of such Notes previously called for
      mandatory sinking fund redemption) and (2) apply as credit Notes of such Series
      to which such sinking fund payment is applicable and which have been repurchased
      by the Company or redeemed either at the election of the Company pursuant to
      the
      terms of such Series of Notes (except pursuant to any mandatory sinking fund)
      or
      through the application of permitted optional sinking fund payments or other
      optional redemptions pursuant to the terms of such Notes, provided
      that
      such Notes have not been previously so credited. Such Notes shall be received
      by
      the Trustee, together with an Officer’s Certificate with respect thereto, not
      later than 15 days prior to the date on which the Trustee begins the process
      of
      selecting Notes for redemption, and shall be credited for such purpose by the
      Trustee at the price specified in such Notes for redemption through operation
      of
      the sinking fund and the amount of such sinking fund payment shall be reduced
      accordingly. If as a result of the delivery or credit of Notes in lieu of cash
      payments pursuant to this Section 12.02, the principal amount of Notes of such
      Series to be redeemed in order to exhaust the aforesaid cash payment shall
      be
      less than $100,000, the Trustee need not call Notes of such Series for
      redemption, except upon receipt of a Company Order that such action be taken,
      and such cash payment shall be held by the Trustee or a Paying Agent and applied
      to the next succeeding sinking fund payment, provided,
      however,
      that
      the Trustee or such Paying Agent shall from time to time upon receipt of a
      Company Order pay over and deliver to the Company any cash payment so being
      held
      by the Trustee or such Paying Agent upon delivery by the Company to the Trustee
      of Notes of that Series purchased by the Company

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    
 

    having
      an
      unpaid principal amount equal to the cash payment required to be released to
      the
      Company.

     

    Section
      12.03 Redemption
      of Notes for Sinking Fund.

     

    Not
      less
      than 45 days (unless a shorter period is satisfactory to the Trustee) prior
      to
      each sinking fund payment date for any Series of Notes, the Company will deliver
      to the Trustee an Officer’s Certificate specifying the amount of the next
      ensuing mandatory 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 of Notes of that Series pursuant to Section 12.02 hereof, and the
      optional amount, if any, to be added in cash to the next ensuing mandatory
      sinking fund payment, and the Company shall thereupon be obligated to pay the
      amount therein specified. Not less than 15 days nor more than 45 days (unless
      otherwise indicated in the Board Resolution, Officer’s Certificate or
      supplemental indenture in respect of a particular Series of Notes) before each
      such sinking fund payment date the Trustee shall select the Notes to be redeemed
      upon such sinking fund payment date in the manner specified in Section 3.02
      hereof and cause notice of the redemption thereof to be given in the name of
      and
      at the expense of the Company in the manner provided in Section 3.03 hereof.
      Such notice having been duly given, the redemption of such Notes shall be made
      upon the terms and in the manner stated in Sections 3.04, 3.05 and 3.06
      hereof.

     

    ARTICLE
      13.

    GUARANTEES

     

    Section
      13.01 Guarantee.

     

    Securities
      of any Series may be guaranteed by one or more of the Guarantors. The terms
      and
      the form of any such Guarantee will be established in the manner contemplated
      by
      Section 2.02 hereof for those particular Notes, and pursuant to duly adopted
      resolutions of the board of directors (or similar governing body) or any
      authorized committee thereof of each such Guarantor.

     

    [Signatures
      on following page]

     

    
 

     

    43

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    SIGNATURES

     

    Dated
      as
      of  [  ],
      200_

     

    GENCO
      SHIPPING & TRADING LIMITED

    

     

    By:__________________________________  

     

    Name:

     

    Title:

    

     

    [  ],
      as
      Trustee

     

    By:________________________________  

     

    Name:

     

    Title:

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