Document:

Exhibit 4.3

REGISTRATION
RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”)
is made and entered into as of June 28, 2006, by and between MedImmune, Inc.,
a Delaware corporation (the “Company”), and UBS Securities LLC and
Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives
of the several initial purchasers (the “Initial Purchasers”) named in
Schedule A to the Purchase Agreement dated as of June 22, 2006 (the “Purchase
Agreement”) between the Company and the Initial Purchasers.

In order to induce the Initial Purchasers to enter
into the Purchase Agreement, the Company has agreed to provide the registration
rights set forth in this Agreement. The execution of this Agreement is a
condition to the closing under the Purchase Agreement. The terms “herein,” “hereof,”
“hereto,” “hereinafter” and similar terms, as used in this Agreement, shall in
each case refer to this Agreement as a whole and not to any particular section,
paragraph, sentence or other subdivision of this Agreement.

The Company agrees with the Initial Purchasers (i) for
their benefit as Initial Purchasers and (ii) for the benefit of the
beneficial owners (including any Initial Purchaser) from time to time of the
Notes (as defined herein) and the beneficial owners from time to time of the
Underlying Common Stock (as defined herein) issued upon conversion of the Notes
(each of the foregoing a “Holder” and together the “Holders”), as
follows:

Section 1. Definitions. Capitalized
terms used herein without definition shall have their respective meanings set
forth in the Purchase Agreement. As used in this Agreement, the following terms
shall have the following meanings:

“2011 Indenture” means the Indenture, dated as
of June 28, 2006, between the Company and the Trustee, pursuant to which
the 2011 Notes are being issued.

“2011 Notes” means the 1.375% Convertible
Senior Notes due 2011 of the Company.

“2013 Indenture” means the Indenture, dated as
of June 28, 2006, between the Company and the Trustee, pursuant to which
the 2013 Notes are being issued.

“2013 Notes” means the 1.625% Convertible
Senior Notes due 2013 of the Company.

“Additional Filing Deadline Date” has the
meaning set forth in Section 2(e) hereof.

“additional interest” has the meaning set forth
in Section 2(e) hereof.

“Additional Interest Accrual Period”
has the meaning set forth in Section 2(e) hereof.

“Additional Interest Amount” has the meaning
set forth in Section 2(e) hereof.

 

“Additional Interest Payment Date” means each January 15
and July 15 of each year.

“Affiliate” means, with respect to any
specified person, an “affiliate,” as defined in Rule 144, of such person.

“Amendment Effectiveness Deadline Date” has the
meaning set forth in Section 2(d) hereof.

“Automatic Shelf Registration Statement”
has the meaning ascribed to it in Rule 405.

“Business Day” means each day on which
the New York Stock Exchange is open for trading.

“Common Stock” means the shares of
common stock, par value $.01 per share, of the Company, together with the
rights evidenced by such shares of common stock to the extent provided in the
Amended and Restated Rights Agreement dated as of October 31st, 1998 between the company and
American Stock Transfer & Trust Company, as Rights Agent and any other
shares of capital stock as may constitute “Common Stock” for purposes of
the Indentures, including the Underlying Common Stock.

“Covered Security” has the meaning set forth in
the definition of Registrable Securities herein.

 “Designated
Counsel” means one (1) counsel, if any, for the Holders in connection
with the Shelf Registration Statement, which Designated Counsel shall be
designated in writing to the Company by Holders of a majority of the
Registrable Securities.

“Effectiveness
Deadline Date” has the meaning set forth in Section 2(a) hereof.

“Effectiveness Period” means the period that
begins on the date of original issuance of the Notes and ends on the date there
are no outstanding Registrable Securities.

“Event” has the meaning set forth in Section 2(e) hereof.

“Event Date” has the meaning set forth in Section 2(e) hereof.

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations of the SEC
promulgated thereunder.

“Form S-1” means Form S-1
under the Securities Act.

“Form S-3” means Form S-3
under the Securities Act.

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“Holder” has the meaning set forth in the
preamble hereto.

“Indentures” means the 2011 Indenture and the
2013 Indenture. 

“Initial Purchasers” has the meaning set forth
in the preamble hereto.

“Initial Shelf Registration Statement” has the
meaning set forth in Section 2(a) hereof.

“Issue Date” means the first date of original
issuance of the Notes.

“Material Event” has the meaning set forth in Section 3(j) hereof.

“Notes” means the 2011 Notes and the 2013
Notes.

“Notice and Questionnaire” means a written
notice and questionnaire delivered to the Company containing substantially the
information called for by the Selling Securityholder Notice and Questionnaire
attached as Annex A to the Offering Memorandum of the Company dated June 22,
2006 relating to the Notes.

“Notice Holder” means, on any date, any Holder
that has delivered a Notice and Questionnaire to the Company on or prior to
such date, so long as all of such Holder’s Registrable Securities that have
been registered for resale pursuant to a Notice and Questionnaire have not been
sold in accordance with a Shelf Registration Statement.

“Proceeding” has the meaning set forth in Section 6(c) hereof.

“Prospectus” means any prospectus included in
any Shelf Registration Statement (including, without limitation, a preliminary
prospectus or a prospectus that discloses information previously omitted from a
prospectus filed as part of an effective registration statement in reliance
upon Rule 415 promulgated under the Securities Act), as amended or supplemented
by any amendment or prospectus supplement, including post-effective amendments,
and all materials incorporated by reference or deemed to be incorporated by
reference in such Prospectus.

“Purchase Agreement” has the meaning set forth
in the preamble hereof.

“Record Date” means, (i) January 1,
with respect to an Additional Interest Payment Date that occurs on January 15
and (ii) July 1, with respect to an Additional Interest Payment Date
that occurs on July 15.

“Record Holder” means with respect to an
Additional Interest Payment Date relating to any Notes as to which any
Additional Interest Amount has accrued, the holder of record of such Note at
the close of business on the record date with respect to the interest payment
date under the Indentures on which such Additional Interest Payment Date shall
occur.

“Registrable Securities” means the Notes until
such Notes have been converted into cash and, if applicable, Underlying Common
Stock and, at all times the Underlying Common Stock and any securities into or
for which such Underlying Common Stock has been converted or exchanged, and any
security issued with respect thereto upon any stock dividend,

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split or similar event
(each of the foregoing, a “Covered Security”) until, in the case of any
such security, the earliest of (a) the date on which such security has
been effectively registered under the Securities Act and disposed of in
accordance with the Registration Statement relating thereto, (b) the date
that is two (2) years after the Issue Date, or (c) the date on which
such security has been publicly sold pursuant to Rule 144 under the
Securities Act of 1933.

“Registration Expenses” has the meaning set
forth in Section 5 hereof.

“Registration Statement” means any registration
statement of the Company under the Securities Act that covers any of the
Registrable Securities pursuant to the provisions of this Agreement, including
amendments and supplements to such registration statement, and the information
deemed to form a part thereof by the rules of the SEC, and including all
post-effective amendments to, all exhibits of, and all materials incorporated
by reference or deemed to be incorporated by reference in such registration
statement, amendment or supplement.

“Repurchase Upon Fundamental Change”
has the meaning ascribed to it in the Indentures.

“Rule 144” means Rule 144 under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.

“Rule 144A” means Rule 144A under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.

“Rule 405” means Rule 405 under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.

“Rule 415” means Rule 415 under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.

“Rule 424” means Rule 424 under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.

“Rule 430B” means Rule 430B under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.

“Rule 456” means Rule 456 under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.

“Rule 457” means Rule 457 under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.

 “SEC”
means the Securities and Exchange Commission.

“Securities Act” means the Securities Act of
1933, as amended, and the rules and regulations promulgated by the SEC
thereunder.

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“Shelf Registration Statement” means the
Initial Shelf Registration Statement and any Subsequent Shelf Registration
Statement.

“Subsequent Shelf Registration Statement” has
the meaning set forth in Section 2(b) hereof.

“Subsequent Shelf Registration Statement
Effectiveness Deadline Date” has the meaning set forth in Section 2 (d) hereof.

“Suspension Notice” has the meaning set forth
in Section 3(j) hereof.

“Suspension Period” has the meaning set forth
in Section 3(j) hereof.

“TIA” means the Trust Indenture Act of 1939, as
amended.

“Trustee” means The Bank of New York, the
trustee under the Indentures.

“Underlying Common Stock” means the Common
Stock issuable upon the conversion of any Notes together with the rights, if
any, evidenced by such Common Stock to the extent provided in the Amended and
Restated Rights Agreement dated as of October 31, 1998 between the Company
and American Stock Transfer & Trust Company, as Rights Agent.

Section 2. Shelf Registration.

(a)      The
Company shall file or cause to be prepared and filed with the SEC a
Registration Statement for an offering to be made on a delayed or continuous
basis pursuant to Rule 415 of the Securities Act registering the resale
from time to time by Holders thereof of all of the Registrable Securities (or,
if registration of Registrable Securities not held by Notice Holders is not
permitted by the rules and regulations of the SEC, then registering all
Registrable Securities held by Notice Holders) (the “Initial Shelf
Registration Statement”). The Initial Shelf Registration Statement shall be
on Form S-1 or S-3 or another appropriate form permitting the
registration of such Registrable Securities for resale by such Holders in
accordance with the reasonable methods of distribution elected by the Holders,
approved by the Company, and set forth in the Initial Shelf Registration
Statement (provided, however, that in no event will such methods
of distribution take the form of an underwritten offering of Registrable
Securities without the Company’s prior agreement). The Company shall use
reasonable efforts to cause the Initial Shelf Registration Statement to become
effective under the Securities Act by the date (the “Effectiveness Deadline
Date”) that is one hundred eighty (180) days after the Issue Date, and to
keep the Initial Shelf Registration Statement (or any Subsequent Shelf
Registration Statement (as hereinafter defined)) continuously effective under
the Securities Act until the expiration of the Effectiveness Period. At the
time the Initial Shelf Registration Statement becomes effective under the
Securities Act, each Holder that became a Notice Holder on or before the fifth
Business Day before the date of such effectiveness shall be named as a selling
securityholder in the Initial Shelf Registration Statement and the related
Prospectus in such a manner as to permit such Holder to deliver such Prospectus
to purchasers of Registrable Securities in accordance with applicable law.
Notwithstanding anything herein to the contrary, in no event shall Registrable
Securities be offered and sold pursuant hereto through a Shelf Registration
Statement pursuant to an underwritten offering without the prior written
agreement of the Company.

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(b)           Subject to Section 3(j), if the
Initial Shelf Registration Statement or any Subsequent Shelf Registration
Statement ceases to be effective for any reason at any time during the
Effectiveness Period, the Company shall use reasonable efforts to promptly
cause such Shelf Registration Statement to become effective under the
Securities Act (including obtaining the prompt withdrawal of any order
suspending the effectiveness of such Shelf Registration Statement), and in any
event shall within thirty (30) days of such cessation of effectiveness, use
reasonable efforts to amend such Shelf Registration Statement in a manner
reasonably expected to obtain the withdrawal of the order suspending the
effectiveness thereof or file an additional Shelf Registration Statement
covering all of the securities that as of the date of such filing are
Registrable Securities (or, if registration of Registrable Securities not held
by Notice Holders is not permitted by the rules and regulations of the
SEC, then registering all Registrable Securities held by Notice Holders) (a “Subsequent
Shelf Registration Statement”). If a Subsequent Shelf Registration
Statement is filed, the Company shall use reasonable efforts to cause such
Subsequent Shelf Registration Statement to become effective under the
Securities Act as promptly as is reasonably practicable after such filing, but
in no event later than ninety 90 days after the date on which the Subsequent
Shelf Registration Statement was filed and to use reasonable efforts to keep
such Shelf Registration Statement (or subsequent Shelf Registration Statement)
continuously effective until the end of the Effectiveness Period. Each such
Subsequent Shelf Registration Statement, if any, shall provide for the
registration of such Registrable Securities for resale by such Holders in
accordance with the reasonable methods of distribution elected by the Holders,
approved by the Company, and set forth in such Subsequent Shelf Registration
Statement (provided, however, that in no event will such methods
of distribution take the form of an underwritten offering of Registrable
Securities without the Company’s prior agreement).

(c)           The Company shall supplement and
amend any Shelf Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such
Shelf Registration Statement, if required by the Securities Act or as
reasonably requested by any Initial Purchaser or by the Trustee on behalf of
the Holders of the Registrable Securities covered by such Shelf Registration
Statement.

(d)        (i) 
Each Holder of Registrable Securities agrees that if such Holder wishes to sell
Registrable Securities pursuant to a Shelf Registration Statement and related
Prospectus, it will do so only in accordance with this Section 2(d) and
Section 3(j). Each Holder of Registrable Securities wishing to sell
Registrable Securities pursuant to a Shelf Registration Statement and related
Prospectus agrees to deliver a completed and executed Notice and Questionnaire
to the Company prior to any attempted or actual distribution of Registrable
Securities under a Shelf Registration Statement. Notwithstanding anything
contained herein to the contrary, the Company shall be under no obligation to
name any Holder that is not a Notice Holder as a selling securityholder in any
Shelf Registration Statement or related Prospectus. With respect to any Holder
who delivers a completed and executed Notice and Questionnaire after the fifth
Business Day before the date the Initial Shelf Registration Statement becomes
effective, the Company shall, within thirty (30) days after the date such
Holder became a Notice Holder (or within such longer period permitted by clause
(E) below):

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(A)          file
with the SEC a supplement to the related Prospectus (or, if required by
applicable law, a post-effective amendment to the Shelf Registration Statement
or a Subsequent Shelf Registration Statement), and all other document(s), in
each case as is required under the Securities Act and the rules and
regulations of the SEC so that such Notice Holder is named as a selling
securityholder in a Shelf Registration Statement and the related Prospectus in
such a manner as to permit such Notice Holder to deliver a Prospectus to
purchasers of the Registrable Securities in accordance with the Securities Act;
provided, however, that, if a post-effective amendment or a
Subsequent Shelf Registration Statement is required by the rules and
regulations of the SEC in order to permit resales by such Notice Holder, the
Company shall not be required to file more than one (1) post-effective
amendment or Subsequent Shelf Registration Statement for such purpose in any
ninety (90) day period; provided  further, that in no event shall
the Company be obligated to file more than one (1) such supplement in any
thirty (30) day period;

(B)           if,
pursuant to Section 2(d)(i)(A), the Company shall have filed a
post-effective amendment to the Shelf Registration Statement or filed a
Subsequent Shelf Registration Statement, the Company shall use reasonable
efforts to cause such post-effective amendment or Subsequent Shelf Registration
Statement, as the case may be, to become effective under the Securities Act as
promptly as practicable, but in any event by the date (the “Amendment
Effectiveness Deadline Date,” in the case of a post-effective amendment,
and the “Subsequent Shelf Registration Statement Effectiveness Deadline Date,”
in the case of a Subsequent Shelf Registration Statement) that is ninety (90)
days after the date such post-effective amendment or Subsequent Shelf
Registration Statement, as the case may be, is required by this Section 2(d) to
be filed with the SEC;

(C)           the
Company shall provide such Notice Holder, upon request, with a reasonable
number of copies of any documents filed pursuant to clause (A) above;

(D)          the
Company shall notify such Notice Holder as promptly as practicable after the
effectiveness under the Securities Act of any post-effective amendment or
Subsequent Shelf Registration Statement filed pursuant to clause (A) above;

(E)           if
such Holder became a Notice Holder during a Suspension Period, or a Suspension
Period is put into effect within thirty (30) days after the date such Holder
became a Notice Holder, the Company shall so inform such Notice Holder and
shall, subject to the limitations of this Section 2(d), take the actions
set forth in clauses (A), (B) and (C) within thirty (30) days after
expiration of such Suspension Period in accordance with Section 3(j); and

(F)           if
under applicable law, the Company has more than one option as to the type or
manner of making any such filing, the Company shall make the required filing or
filings in the manner or of a type that it reasonably expects to result in the
earliest availability of a Prospectus for effecting resales of Registrable
Securities in accordance with the Securities Act.

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(e)         The
parties hereto agree that the Holders of Notes will suffer damages, and that it
would not be feasible to ascertain the extent of such damages with precision,
if:

(i)  the
Initial Shelf Registration Statement has not become effective under the
Securities Act on or prior to the Effectiveness Deadline Date;

(ii)  either
a supplement to a Prospectus, a post-effective amendment or a Subsequent Shelf
Registration Statement is required to be filed with the SEC and fails to be
filed with the SEC within the prescribed period and in the manner set forth in Section 2(d) (the
date such filing is required to be made being an “Additional Filing Deadline
Date”) or, in the case of a post-effective amendment or a Subsequent Shelf
Registration Statement, such post-effective amendment or Subsequent Registration
Statement does not become effective under the Securities Act by the Amendment
Effectiveness Deadline Date or the Subsequent Shelf Registration Statement
Effectiveness Deadline Date, as the case may be;

(iii)  the
Initial Shelf Registration Statement or any Subsequent Registration Statement
is filed with the SEC and becomes effective under the Securities Act, but shall
thereafter cease to be effective (without being succeeded immediately by a new
Registration Statement that is filed and immediately becomes effective under
the Securities Act) or usable under the Securities Act for the offer and sale
of Registrable Securities in the manner contemplated by this Agreement for a
period of time (including any Suspension Period) which shall exceed forty five
(45) days in the aggregate in any three (3) month period or ninety (90)
days in the aggregate in any twelve (12) month period; or

(iv)  any
Registration Statement or amendment thereto, at the time it becomes effective
under the Securities Act, or any Prospectus relating thereto, at the time it is
filed with the SEC or, if later, at the time the Registration Statement to
which such Prospectus relates becomes effective under the Securities Act, shall
fail to name each Notice Holder as a selling securityholder in such a manner as
to permit such Notice Holder to sell its Registrable Securities pursuant to
such Registration Statement and Prospectus in accordance with the Securities
Act, which Notice Holder was required, pursuant to the terms of this Agreement,
to be so named (it being understood that, without limitation, naming such
Notice Holder in a manner that permits such Notice Holder to sell only a
portion of such Notice Holder’s Registrable Securities referenced in such
Notice Holder’s Notice and Questionnaire shall be deemed to be an “Event” (as
defined below) for purposes of this clause (iv)).

Each of the events of a type described in any of the foregoing clauses (i) through
(iv) are individually referred to herein as an “Event,” and

(W)         the
Effectiveness Deadline Date, in the case of clause (i) above,

(X)          the
Additional Filing Deadline Date, the Amendment Effectiveness Deadline Date or
the Subsequent Shelf Registration Statement Effectiveness Deadline Date, as the
case may be, in the case of clause (ii) above,

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(Y)           the
first date on which the duration of the ineffectiveness or unusability of the
Shelf Registration Statement exceeds the number of days permitted by clause (iii) above,
in the case of clause (iii) above, and

(Z)           the
date the applicable Registration Statement or amendment thereto shall become
effective under the Securities Act, or the date the applicable Prospectus is
filed with the SEC or, if later, the time the Registration Statement to which
such Prospectus relates becomes effective under the Securities Act, as the case
may be, in the case of clause (iv) above,

are each herein referred to as an “Event Date.”  Events shall be deemed to continue until the
following dates with respect to the respective types of Events:

(A)          the
date the Initial Shelf Registration Statement becomes effective under the
Securities Act, in the case of an Event of the type described in clause (i) above;

(B)           the
date a supplement to a Prospectus, a post-effective amendment or a Subsequent
Shelf Registration Statement, whichever is required, is filed with the SEC (in
the case of a supplement) or becomes effective under the Securities Act (in the
case of a post-effective amendment or a Subsequent Shelf Registration
Statement), in the case of an Event of the type described in clause (ii) above;

(C)           the
date the Initial Shelf Registration Statement or the Subsequent Shelf
Registration Statement, as the case may be, becomes effective and usable under
the Securities Act again, or the date another Subsequent Shelf Registration
Statement is filed with the SEC pursuant to Section 2(b) and becomes
effective, in the case of an Event of the type described in clause (iii) above;
or

(D)          the
date a supplement to the Prospectus is filed with the SEC, or the date a
post-effective amendment to the Registration Statement becomes effective under
the Securities Act, or the date a Subsequent Shelf Registration Statement
becomes effective under the Securities Act, which supplement, post-effective
amendment or Subsequent Shelf Registration Statement, as the case may be, names
as selling securityholders, in such a manner as to permit them to deliver the
related Prospectus to purchasers of Registrable Securities in the manner
contemplated by, and in accordance with, the Securities Act, all Notice Holders
required as herein provided to be so named, in the case of an Event of the type
described in clause (iv) above.

       Notwithstanding
anything herein to the contrary, Events described in clauses (i), (ii) and
(iv) above will be deemed to be suspended during any Suspension Period
unless the duration of such Suspension Period exceeds forty five (45) days in
the aggregate in any three (3) month period or ninety (90) days in the
aggregate in any twelve (12) month period.

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Accordingly, commencing on (and including) any Event Date with respect
to the 2011 Notes or the 2013 Notes, as applicable, and ending on (but
excluding) the next date on which there are no Events with respect to the 2011
Notes or the 2013 Notes, as applicable, that have occurred and are continuing (an
“Additional Interest Accrual Period”), the Company agrees to pay, as
additional interest (“additional interest”) and not as a penalty, an
amount (the “Additional Interest Amount”) at the rate described below,
payable semi-annually on each Additional Interest Payment Date to Record
Holders of the 2011 Notes or the 2013 Notes, as applicable, to the extent of,
for each such Additional Interest Payment Date, the unpaid Additional Interest
Amount that has accrued to (but excluding) such Additional Interest Payment
Date (or, if the Additional Interest Accrual Period shall have ended prior to
such Additional Interest Payment Date, to, but excluding, the day immediately
after the last day of such Additional Interest Accrual Period); provided,
however, that any unpaid Additional Interest Amount that has accrued
with respect to any Note, or portion thereof, purchased by the Company pursuant
to a Repurchase Upon Fundamental Change on a Repurchase Date that is after the
close of business on the Record Date relating to such Additional Interest
Payment Date and before such Additional Interest Payment Date shall, be instead
paid, on such Additional Interest Payment Date, to the Holder of record of such
Note at the close of business on such Record Date. In no event shall any
additional interest accrue on any shares of Underlying Common Stock.

The Additional Interest Amount shall accrue at a rate per annum equal
to one-eighth of one percent (0.125%) for the ninety (90) day period beginning
on, and including, the Event Date, and thereafter at a rate per annum equal to
one-quarter of one percent (0.25%) of the aggregate principal amount of the
Notes of which such Record Holders were holders of record at the close of
business on the applicable Record Date; provided, however, that:

(I)            no
Additional Interest Amounts shall accrue as to any Registrable Security from
and after the earlier of (x) the date such Registrable Security is no
longer a Registrable Security, (y) in the case of a Registrable Security
that is a Note, the date, and to the extent, such Note is converted into cash
and, if applicable, shares of Common Stock in accordance with the Indentures
and (z) the expiration of the Effectiveness Period;

(II)           only
those Holders (or their subsequent transferees) failing to be named as selling
securityholders in the manner prescribed in Section 2(e)(iv) above
shall be entitled to receive any Additional Interest Amounts that have accrued
solely with respect to an Event of the type described in Section 2(e)(iv) above
(it being understood that this clause (II) shall not impair any right of
any Holder to receive Additional Interest Amounts that have accrued with
respect to an Event other than an Event of the type described in Section 2(e)(iv) above);

(III)         only
those Holders (or their subsequent transferees) whose delivery of a Notice and
Questionnaire gave rise to the obligation of the Company, pursuant to Section 2(d)(i) to
file and, if applicable, make effective

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under the Securities Act the supplement, post-effective amendment or
Subsequent Shelf Registration Statement referred to in Section 2(e)(ii) above
shall be entitled to receive any Additional Interest Amounts that have accrued
solely with respect to an Event of the type described in Section 2(e)(ii) above
(it being understood that this clause (III) shall not impair any right of
any Holder to receive Additional Interest Amounts that have accrued with
respect to an Event other than an Event of the type described in Section 2(e)(ii)above);

(IV)         if a
Note ceases to be outstanding during an Additional Interest Accrual Period for
which an Additional Interest Amount would be payable with respect to such Note,
then the Additional Interest Amount payable hereunder with respect to such Note
shall be prorated on the basis of the number of full days such Note is
outstanding during such Additional Interest Accrual Period; and

(V)           no
additional interest shall be paid under this Section 2(e) on (a) the
2011 Notes for an Event that solely affects the 2013 Notes or (b) the 2013
Notes for an Event that solely affects the 2011 Notes. For avoidance of doubt,
if an Event occurs solely with respect to the 2011 Notes in respect of which
additional interest is payable pursuant hereto, such additional interest shall
be paid in accordance herewith to the applicable Holders of the 2011 Notes and
not to any Holders of 2013 Notes, and if an Event occurs solely with respect to
the 2013 Notes in respect of which additional interest is payable pursuant
hereto, such additional interest shall be paid in accordance herewith to the
applicable Holders of the 2013 Notes and not to any Holders of 2011 Notes.

Except as provided in the final paragraph of this Section 2(e), (i) the
rate of accrual of the Additional Interest Amount with respect to any period
shall not exceed the rate provided for in this Section 2(e) notwithstanding
the occurrence of multiple concurrent Events and (ii) following the cure
of all Events requiring the payment by the Company of Additional Interest
Amounts to the Holders pursuant to this Section, the accrual of Additional
Interest Amounts shall cease (without in any way limiting the effect of any
subsequent Event requiring the payment of Additional Interest Amounts by the
Company). All installments of additional interest shall be paid as
follows:  (i) in the case of a Note
that is in global form, by wire transfer of immediately available funds to the
account designated by the Depository Trust Company or its nominee; (ii) in
the case of a 2011 Note or a 2013 Note that is held, other than in global form,
by a Holder of more than five million dollars ($5,000,000) in aggregate
principal amount of the 2011 Notes or the 2013 Notes, as applicable, by wire
transfer of immediately available funds to the account specified by such Holder
or, if such Holder does not specify an account, by mailing a check to the
address of such Holder set forth in the register of the registrar for the 2011
Notes or the 2013 Notes, as applicable, and (iii) in the case of a 2011
Note or a 2013 Note that is held, other than in global form, by a Holder of
five million dollars ($5,000,000) or less in aggregate principal amount of the
2011 Notes or the 2013 Notes, as applicable, by mailing a check to the address
of such Holder set forth in the register of the registrar for the 2011 Notes or
the 2013 Notes, as applicable. Subject to any rights that may arise under Section 6,
the parties hereto agree that the additional interest provided for

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hereunder shall constitute the sole and exclusive remedy for an Event
that occurs with respect to any Registrable Securities.

All of the Company’s obligations set forth in this Section 2(e) that
are outstanding with respect to any Registrable Security at the time such
Registrable Security ceases to be a Registrable Security shall survive until
such time as all such obligations with respect to such security have been
satisfied in full (notwithstanding termination of this Agreement pursuant to Section 8(n)).

The parties hereto agree that the additional interest provided for in
this Section 2(e) constitutes a reasonable estimate of the damages in
respect of the Registrable Securities that may be incurred by Holders by reason
of an Event, including, without limitation, the failure of a Shelf Registration
Statement to be filed, become effective under the Securities Act, amended or
replaced to include the names of all Notice Holders or available for effecting
resales of Registrable Securities in accordance with the provisions hereof.

If any Additional Interest Amounts are not paid when due, then, to the
extent permitted by law, such overdue Additional Interest Amounts, if any,
shall bear interest, compounded semi-annually, until paid at the rate of
interest payable with respect to overdue amounts on the Notes pursuant to Section 2.12
of the Indentures.

(f) The Trustee shall be entitled, on
behalf of Holders, to seek any available 
remedy for the enforcement of this Agreement, including for the payment
of any Additional Interest Amount.

Section 3. Registration Procedures. In connection with the
registration obligations of the Company under Section 2 hereof, the
Company shall:

(a)           Prepare and file
with the SEC a Shelf Registration Statement or Shelf Registration Statements in
the manner provided in this Agreement, and use reasonable efforts to cause each
such Shelf Registration Statement to become effective and remain effective as
provided herein; provided that before filing any Shelf Registration
Statement or Prospectus or any amendments or supplements thereto with the SEC,
the Company shall furnish to the Initial Purchasers, Designated Counsel, if
any, and counsel for the Initial Purchasers copies of all such documents
proposed to be filed and use reasonable efforts to reflect in each such
document when so filed with the SEC such comments as the Initial Purchasers, Designated
Counsel, if any, or such counsel reasonably shall propose within two (2) Business
Days of the delivery of such copies to the Initial Purchasers and such counsel.
Each Registration Statement that is or is required by this Agreement to be
filed with the SEC shall be filed on Form S-3 if the Company is then
eligible to use Form S-3 for the purposes contemplated by this
Agreement, or, if the Company is not then so eligible to use Form S-3,
shall be on Form S-1 or another appropriate form that is then available
to the Company for the purposes contemplated by this Agreement. Each such
Registration Statement that is filed on Form S-3 shall constitute an
Automatic Shelf Registration Statement if the Company is then eligible to file
an Automatic Shelf Registration Statement on Form S-3 for the
purposes contemplated by this Agreement. If, at the time any Registration
Statement is filed with the SEC, the Company is eligible, pursuant to Rule 430B(b),

 12
 

 

to omit, from
the prospectus that is filed as part of such Registration Statement, the
identities of selling securityholders and amounts of securities to be
registered on their behalf, then the Company shall prepare and file such
Registration Statement in a manner as to permit such omission and to allow for
the subsequent filing of such information in a prospectus pursuant to Rule 424(b) in
the manner contemplated by Rule 430B(d);

(b)           Prepare and file
with the SEC such amendments and post-effective amendments to each Shelf
Registration Statement as may be reasonably necessary to keep such Shelf
Registration Statement continuously effective until the expiration of the
Effectiveness Period; cause the related Prospectus to be supplemented by any
required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424
(or any similar provisions then in force) under the Securities Act; and use
reasonable efforts to comply with the provisions of the Securities Act
applicable to it with respect to the disposition of all securities covered by
each Shelf Registration Statement during the Effectiveness Period in accordance
with the intended methods of disposition by the sellers thereof set forth in
such Shelf Registration Statement as so amended or such Prospectus as so
supplemented;

(c)           If, at any time
during the Effectiveness Period, any Registration Statement shall cease to
comply with the requirements of the Securities Act with respect to eligibility
for the use of the form on which such Registration Statement was filed with the
SEC (or if such Registration Statement constituted an Automatic Shelf
Registration Statement at the time it was filed with the SEC and shall
thereafter cease to constitute an Automatic Shelf Registration Statement, or if
the Company shall have received, from the SEC, a notice, pursuant to Rule 401(g)(2) under
the Securities Act, of objection to the use of the form on which such
Registration Statement was filed with the SEC), (i) promptly give notice
to the Notice Holders Designated Counsel, if any, and counsel for the Initial
Purchasers and to the Initial Purchasers and (ii) promptly file with the
SEC a new Registration Statement under the Securities Act, or a post-effective
amendment to such Registration Statement, to effect compliance with the
Securities Act. The Company shall use reasonable efforts to cause such new
Registration Statement or post-effective amendment to become effective under
the Securities Act as soon as practicable and shall promptly give notice of
such effectiveness to the Notice Holders, Designated Counsel, if any, and
counsel for the Initial Purchasers and to the Initial Purchasers. Each such new
Registration Statement, if any, shall be deemed, for purposes of this
Agreement, to be a Subsequent Shelf Registration Statement.

(d)           As promptly as
reasonably practicable give notice to the Notice Holders, Initial Purchasers,
Designated Counsel, if any, and counsel for the Initial Purchasers (i) when
any Prospectus, Prospectus supplement, Shelf Registration Statement or
post-effective amendment to a Shelf Registration Statement has been filed with
the SEC and, with respect to a Shelf Registration Statement or any
post-effective amendment, when the same has become effective, (ii) of any
request, following the effectiveness of a Shelf Registration Statement under
the Securities Act, by the SEC or any other federal or state governmental
authority for amendments or supplements to such Shelf Registration Statement or
the related Prospectus or for additional information, (iii) of the
issuance by the SEC or any other federal or state governmental authority of any
stop order suspending the effectiveness of any Shelf Registration Statement or
the initiation or threatening of any proceedings for that purpose, (iv) of
the receipt

 13
 

 

by the Company
or its legal counsel of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose, (v) after the effective date of any Shelf
Registration Statement filed pursuant to this Agreement of the occurrence of
(but not the nature of or details concerning) a Material Event and (vi) of
the determination by the Company that a post-effective amendment to a Shelf
Registration Statement or a Subsequent Shelf Registration Statement will be
filed with the SEC, which notice may, at the discretion of the Company (or as
required pursuant to Section 3(j)), state that it constitutes a Suspension
Notice, in which event the provisions of Section 3(j) shall apply;

(e)           Use reasonable
efforts to prevent the issuance of, and, if issued, to obtain the withdrawal of
any order suspending the effectiveness of a Shelf Registration Statement or the
lifting of any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any
jurisdiction in which they have been qualified for sale, in either case at the
earliest reasonably practicable time, and provide prompt notice to each Notice
Holder, the Initial Purchasers, Designated Counsel, if any, and counsel for the
Initial Purchasers, of the withdrawal or lifting of any such order or
suspension;

(f)            If requested by any
Initial Purchaser or any Notice Holder, as promptly as reasonably practicable
incorporate in a prospectus supplement or a post-effective amendment to a Shelf
Registration Statement such information as such Initial Purchaser, such Notice
Holder, Designated Counsel, if any, or counsel for such Initial Purchaser shall
reasonably determine to be required to be included therein by applicable law
and make any required filings of such prospectus supplement or such
post-effective amendment; provided, however, that the Company shall not
be required to take any actions under this Section 3(g) that, in the
view of counsel for the Company, are not in compliance with applicable law;

(g)           As promptly as
reasonably practicable furnish to each Notice Holder, each Initial Purchaser,
Designated Counsel, if any, and counsel for the Initial Purchasers, without
charge, at least one (1) conformed copy of each Shelf Registration
Statement and any amendment thereto, including financial statements but
excluding schedules, all documents incorporated or deemed to be incorporated
therein by reference and all exhibits (unless requested in writing to the
Company by such Notice Holder, Designated Counsel, such counsel or the Initial
Purchasers);

(h)           During the
Effectiveness Period, deliver to each Notice Holder, each Initial Purchaser,
Designated Counsel, if any, and counsel for the Initial Purchasers, in
connection with any sale of Registrable Securities pursuant to a Shelf
Registration Statement, without charge, as many copies of the Prospectus or
Prospectuses relating to such Registrable Securities (including each
preliminary prospectus) and any amendment or supplement thereto as such Notice
Holder, such Initial Purchaser, such Designated Counsel, or such counsel may
reasonably request; and the Company hereby consents (except during such periods
that a Suspension Notice is outstanding and has not been revoked) to the use of
such Prospectus or each amendment or supplement thereto by each Notice Holder,
in connection with any offering and sale of the Registrable Securities covered
by such Prospectus or any amendment or supplement thereto in the manner set
forth therein;

 14

 

(i)            Prior to any public
offering of the Registrable Securities pursuant to a Shelf Registration
Statement, use reasonable efforts to cooperate with the Notice Holders in
connection with the registration or qualification (or exemption from such
registration or qualification) of such Registrable Securities for offer and
sale under the securities or Blue Sky laws of such jurisdictions within the
United States as any Notice Holder reasonably requests in writing (which
request may be included in the Notice and Questionnaire); prior to any public
offering of the Registrable Securities pursuant to a Shelf Registration
Statement, use reasonable  efforts to
keep each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period in connection with such Notice Holder’s offer
and sale of Registrable Securities pursuant to such registration or
qualification (or exemption therefrom) and do any and all other acts or things
reasonably necessary or advisable to enable the disposition in such
jurisdictions of such Registrable Securities in the manner set forth in the
relevant Shelf Registration Statement and the related Prospectus; provided,
however that the Company will not be required to (i) qualify as a
foreign corporation or as a dealer in securities in any jurisdiction where it
is not then so qualified or (ii) take any action that would subject it to
general service of process in suits or to taxation in any such jurisdiction
where it is not then so subject;

(j)            Upon (A) the
issuance by the SEC of a stop order suspending the effectiveness of any Shelf
Registration Statement or the initiation of proceedings with respect to any
Shelf Registration Statement under Section 8(d) or 8(e) of the
Securities Act, (B) the occurrence of any event or the existence of any
fact as a result of which any Shelf Registration Statement shall contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not misleading,
or any Prospectus shall contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading,
or (C) the occurrence or existence of any pending corporate development (a
“Material Event”) that, in the reasonable discretion of the Company,
makes it appropriate to suspend the availability of any Shelf Registration
Statement and the related Prospectus, (i) in the case of clause (B) or
(C) above, subject to the next sentence, as promptly as reasonably
practicable, prepare and file, if necessary pursuant to applicable law, a
post-effective amendment to such Shelf Registration Statement or a supplement
to the related Prospectus or any document incorporated therein by reference or
file any other required document that would be incorporated by reference into
such Shelf Registration Statement and Prospectus so that such Shelf
Registration Statement does not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading, and such Prospectus does not
contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading (it being understood
that the Company may rely on information provided by each Notice Holder with
respect to such Notice Holder), as thereafter delivered to the purchasers of
the Registrable Securities being sold thereunder, and, in the case of a
post-effective amendment to a Shelf Registration Statement, subject to the next
sentence, use reasonable efforts to cause it to become effective as promptly as
is reasonably practicable, and (ii) give notice to the Notice Holders, the
Initial Purchasers, Designated Counsel, if any, and counsel for the Initial
Purchasers that the availability of the Shelf Registration Statement is
suspended (a “Suspension Notice”) and, upon receipt of any Suspension
Notice, each Notice Holder agrees not to sell any Registrable Securities
pursuant to such Shelf Registration Statement until such Notice Holder’s
receipt of copies of the

 15
 

 

supplemented
or amended Prospectus provided for in clause (i) above, or until it is
advised in writing by the Company that the Prospectus may be used, and has
received copies of any additional or supplemental filings that are incorporated
or deemed incorporated by reference in such Prospectus. The Company will use
reasonable efforts to ensure that the use of the Prospectus may be resumed (x) in
the case of clause (A) above, as promptly as is reasonably practicable, (y) in
the case of clause (B) above, as soon as, in the judgment of the Company,
the Shelf Registration Statement does not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading and the Prospectus
does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading, and (z) in
the case of clause (C) above, as soon as, in the reasonable discretion of
the Company, such suspension is no longer appropriate. The period during which
the availability of the Shelf Registration Statement and any Prospectus may be
suspended (the “Suspension Period”) without the Company incurring any
obligation to pay additional interest pursuant to Section 2(e) shall
not exceed forty-five (45) consecutive days or in the aggregate in any three (3) month
period or ninety (90) days in the aggregate in any twelve (12) month period.

(k)           Make available for
inspection during normal business hours by representatives for the majority of
Notice Holders of such Registrable Securities and any underwriters
participating in any disposition pursuant to any Shelf Registration Statement
and any broker-dealers, attorneys and accountants retained by such Notice
Holders or any such underwriters, all relevant financial and other records and
pertinent corporate documents and properties of the Company and its
subsidiaries, and cause the appropriate officers, directors and employees of
the Company and its subsidiaries to make available for inspection during normal
business hours all relevant information reasonably requested by such
representatives for the majority of Notice Holders or any such underwriters,
broker-dealers, attorneys or accountants in connection with such disposition,
in each case as is customary for similar “due diligence” examinations; provided,
however, that such persons shall, at the Company’s request, first agree
in writing with the Company that any information that is reasonably and in good
faith designated by the Company in writing as confidential at the time of
delivery of such information shall be kept confidential by such persons and
shall be used solely for the purposes of exercising rights under this Agreement
unless (i) disclosure of such information is required by court or
administrative order or is necessary to respond to inquiries of governmental or
regulatory authorities, (ii) disclosure of such information is required by
law (including any disclosure requirements pursuant to federal securities laws
in connection with the filing of any Shelf Registration Statement or the use of
any Prospectus referred to in this Agreement) or necessary to defend or
prosecute a claim brought against or by any such persons (e.g., to establish a “due diligence”
defense), (iii) such information becomes generally available to the public
other than as a result of a disclosure or failure to safeguard by any such
person or (iv) such information becomes available to any such person from
a source other than the Company and such source is not bound by a
confidentiality agreement or is not otherwise under a duty of trust to the
Company, and provided that the foregoing inspection and information
gathering shall, to the greatest extent possible, be coordinated on behalf of
all the Notice Holders and the other parties entitled thereto by the Designated
Counsel, if any, and one other counsel representing such other parties entitled
thereto;

 16
 

 

(l)            Comply in all
material respects with all applicable rules and regulations of the SEC and
make generally available to its securityholders earnings statements (which need
not be audited) satisfying the provisions of Section 11(a) of the
Securities Act and Rule 158 thereunder (or any similar rule promulgated
under the Securities Act), which statements shall cover a period of twelve (12)
months commencing on the first day of the first fiscal quarter of the Company
commencing after the effective date of each Shelf Registration Statement,
(within the meaning of Rule 158(c) under the Securities Act), and
which statements shall be so made generally available to the Company’s
securityholders as follows: (i) with respect to an earnings statement
which will be contained in one report on Form 10-K (or any other
form as may then be available for such purpose), such earnings statement shall
be made so generally available no later than the due date by which the Company
is required, pursuant to the Exchange Act, to file such report with the SEC;
and (ii) with respect to an earnings statement which will be contained in
any combination of reports on Form 10-K or Form 10-Q (or
any other form(s) as may then be available for such purpose), such
earnings statement shall be made so generally available no later than the due
date by which the Company is required, pursuant to the Exchange Act, to file
the last of such reports which together constitute such earnings statement;

(m)          Cooperate with each
Notice Holder to facilitate the timely preparation and delivery of certificates
representing Registrable Securities sold pursuant to a Shelf Registration
Statement, which certificates shall not bear any restrictive legends, and cause
such Registrable Securities to be in such denominations as are permitted by the
Indentures and registered in such names as such Notice Holder may request in
writing at least two (2) Business Days prior to any sale of such
Registrable Securities;

(n)           Provide one or more
CUSIP numbers for all Registrable Securities covered by a Shelf Registration
Statement not later than the effective date of the Initial Shelf Registration
Statement and provide the Trustee and the transfer agent for the Common Stock
with certificates for the Registrable Securities that are in a form eligible for
deposit with The Depository Trust Company;

(o)           Cause the Indentures
to be qualified under the TIA not later than the effective date of the Initial
Shelf Registration Statement; and in connection therewith, cooperate with the
Trustee to effect such changes to the Indentures as may reasonably be required
for the Indentures to be so qualified in accordance with the terms of the TIA
and execute, and use reasonable efforts to cause the Trustee to execute, all
documents as may be required to effect such changes, and all other forms and
documents reasonably required to be filed with the SEC to enable the Indentures
to be so qualified in a timely manner;

(p)           Use reasonable
efforts to cause the Underlying Common Stock to be listed on the Nasdaq
National Market;

(q)           Cooperate and assist
in any filings required to be made with the National Association of Securities
Dealers, Inc.; and

(r)            Upon the filing of
the Initial Shelf Registration Statement, and upon the  effectiveness under the Securities Act of the
Initial Shelf Registration Statement, announce the same, in each case by
release through a reputable national newswire service.

 17
 

 

Section 4.
Holder’s Obligations. Each Holder agrees, by acquisition
of the Registrable Securities, that no Holder of Registrable Securities shall
be entitled to sell any of such Registrable Securities pursuant to a Shelf
Registration Statement or to receive a Prospectus relating thereto, unless such
Holder has furnished the Company with a Notice and Questionnaire as required
pursuant to Section 2(d) hereof (including the information required
to be included in such Notice and Questionnaire) and the information set forth
in the next sentence. Each Notice Holder agrees promptly to furnish to the
Company all information required to be disclosed in order to make the
information previously furnished to the Company by such Notice Holder not
misleading and any other information regarding such Notice Holder and the
distribution of such Registrable Securities as the Company may from time to
time reasonably request. Any sale of any Registrable Securities by any Holder
shall constitute a representation and warranty by such Holder that the
information relating to such Holder and its plan of distribution is as set
forth in the Prospectus delivered (or deemed to be delivered) by such Holder in
connection with such disposition, that such Prospectus does not as of the time
of such sale contain any untrue statement of a material fact relating to or
provided by such Holder or its plan of distribution and that such Prospectus
does not as of the time of such sale omit to state any material fact relating
to or provided by such Holder or its plan of distribution necessary in order to
make the statements in such Prospectus, in the light of the circumstances under
which they were made, not misleading.

Section 5.
Registration Expenses. The Company shall bear all fees and
expenses incurred by it in connection with the performance by the Company of
its obligations under Sections 2 and 3 of this Agreement whether or not any of the
Shelf Registration Statements are filed or become effective under the
Securities Act. Such fees and expenses (“Registration Expenses”) shall
include, without limitation, (i) all registration and filing fees and
expenses (including, without limitation, fees and expenses (x) with
respect to filings required to be made with the National Association of
Securities Dealers, Inc. and (y) of compliance with federal
securities laws and state securities or Blue Sky laws (including, without
limitation, reasonable fees and disbursements of Designated Counsel, if any, in
connection with Blue Sky qualifications of the Registrable Securities under the
laws of such jurisdictions as the Notice Holders of a majority of the
Registrable Securities being sold pursuant to a Shelf Registration Statement
may designate), (ii) all printing expenses (including, without limitation,
expenses of printing certificates for Registrable Securities in a form eligible
for deposit with The Depository Trust Company and printing Prospectuses), (iii) all
duplication and mailing expenses relating to copies of any Shelf Registration
Statement or Prospectus delivered to any Holders hereunder, (iv) all fees
and disbursements of counsel for the Company, (v) all reasonable fees and
disbursements of Designated Counsel, if any, (vi) all fees and
disbursements of the Trustee and its counsel and of the registrar and transfer
agent for the Common Stock and (vii) Securities Act liability insurance
obtained by the Company in its sole discretion. In addition, the Company shall
pay the internal expenses of the Company (including, without limitation, all
salaries and expenses of officers and employees performing legal or accounting
duties), the expense of any annual audit, the fees and expenses incurred in
connection with the listing by the Company of the Registrable Securities on any
securities exchange on which similar securities of the Company are then listed
and the fees and expenses of any person, including, without limitation, special
experts, retained by the Company. If the Company shall, pursuant to Rule 456(b),
defer payment of any registration fees due under the Securities Act with
respect to any Registration Statement, the Company agrees that it shall pay the
fees applicable to such Registration Statement within the time required by Rule 456(b)(1)(i) (without
reliance on the proviso to Rule 456(b)(1)(i)) and in compliance with Rule 456(b) and
Rule 457(r).

 18
 

 

Section 6. Indemnification; Contribution.
(a) The Company agrees to indemnify, defend and hold
harmless each Initial Purchaser, each Holder and each person, if any, who
controls any Initial Purchaser or Holder (a “Controlling Person”) within
the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act and the respective officers, directors, partners, employees,
representatives and agents of any Initial Purchaser, the Holders or any
Controlling Person (each, a “Holder Indemnified Party”), from and
against any loss, damage, expense, liability, claim or any action in respect
thereof (including the reasonable cost of investigation) which such Holder
Indemnified Party may incur or become subject to under the Securities Act, the
Exchange Act or otherwise, insofar as such loss, damage, expense, liability,
claim or action arises out of or is based upon any untrue statement or alleged
untrue statement of a material fact contained in any Shelf Registration
Statement or Prospectus, including any document incorporated by reference
therein, or in any amendment or supplement thereto or in any preliminary
prospectus, or arises out of or is based upon any omission or alleged omission
to state a material fact required to be stated in any Shelf Registration
Statement or in any amendment or supplement thereto or necessary to make the
statements therein not misleading, or arises out of or is based upon any
omission or alleged omission to state a material fact necessary in order to
make the statements made in any Prospectus or in any amendment or supplement
thereto or in any preliminary prospectus, in the light of the circumstances
under which such statements were made, not misleading, and the Company shall
reimburse, as incurred, the Holder Indemnified Parties for any legal or other
expenses reasonably incurred by them in connection with investigating or defending
any such loss, damage, expense, liability, claim or action in respect thereof; provided,
however, that the indemnity agreement contained in this subsection (a) shall
not inure to the benefit of any Holder Indemnified Party insofar as any such
loss, damage, expense, liability, claim or action arises out of or is based
upon any untrue statement or omission or alleged untrue statement or omission
of a material fact contained in, or omitted from, and in conformity with
information furnished in writing by or on behalf of such Holder Indemnified
Party to the Company expressly for use in connection with any Shelf
Registration Statement or Prospectus; provided  further, that no
Holder Indemnified Party shall be entitled to indemnity pursuant to this Section 6(a) to
the extent, and only to the extent, such loss, damage, expense, liability,
claim or action arises out of (1) a disposition, pursuant to a Shelf
Registration Statement, of Registrable Securities by such Holder Indemnified
Party during a Suspension Period, provided such Holder Indemnified Party
received, prior to such disposition, a Suspension Notice with respect to such
Suspension Period or (2) such Holder Indemnified Party’s failure to
deliver, if required pursuant to the Securities Act, the most recent applicable
Prospectus provided to such Holder by the Company or on file with the SEC. This
indemnity agreement will be in addition to any liability which the Company may
otherwise have to any Holder or any of its Controlling Persons.

(b)           Each Holder, severally
and not jointly, agrees to indemnify, defend and hold harmless the Company, its
directors, officers, employees, representatives, agents and any person who
controls the Company within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act (each, a “Company Indemnified
Party”) from and against any loss, damage, expense, liability, claim or any
actions in respect thereof (including the reasonable cost of investigation)
which such Company Indemnified Party may incur or become subject to

 19
 

 

under the
Securities Act, the Exchange Act or otherwise, insofar as such loss, damage,
expense, liability, claim or action arises out of or is based upon (A) any
untrue statement or alleged untrue statement of a material fact contained in,
and in conformity with information (the “Holder Information”) furnished
in writing by or on behalf of such Holder to the Company expressly for use in
any Shelf Registration Statement or Prospectus, or arises out of or is based
upon any omission or alleged omission to state a material fact in connection
with such Holder Information, which material fact was not contained in such
Holder Information, and which material fact was either required to be stated in
any Shelf Registration Statement or Prospectus or necessary to make such Holder
Information not misleading; (B) a sale, by such Holder, pursuant to a
Shelf Registration Statement, of Registrable Securities during a Suspension
Period, provided that the Company shall have theretofore provided such Holder
with a Suspension Notice; or (C) a public sale of Registrable Securities
by such Holder without delivery, if required by the Securities Act, of the most
recent applicable Prospectus provided to such Holder by the Company or on file
with the SEC; and, subject to the limitation set forth in the immediately
preceding clause, each Holder shall reimburse, as incurred, the Company for any
legal or other expenses reasonably incurred by the Company or any such other
person in connection with investigating or defending any loss, damage, expense,
liability, claim or action in respect thereof. This indemnity agreement will be
in addition to any liability which such Holder may otherwise have to the
Company or any Company Indemnified Party. In no event shall the liability of
any selling Holder of Registrable Securities hereunder be greater in amount
than the dollar amount of the proceeds received by such Holder upon the sale of
the Registrable Securities pursuant to the Shelf Registration Statement giving
rise to such indemnification obligation.

(c)           If any action, suit
or proceeding (each, a “Proceeding”) is brought against any person in
respect of which indemnity may be sought pursuant to either subsection (a) or
(b) of this Section 6, such person (the “Indemnified Party”)
shall promptly notify the person against whom such indemnity may be sought (the
“Indemnifying Party”) in writing of the institution of such Proceeding
and the Indemnifying Party shall assume the defense of such Proceeding; provided,
however, that the omission to notify such Indemnifying Party, or the
delay of such notification, shall not relieve such Indemnifying Party from any
liability which it may have to such Indemnified Party under this Section 6
except to the extent  such Indemnifying
Party is materially prejudiced by such omission or delay. Such Indemnified
Party shall have the right to employ its own counsel in any such case, but the
fees and expenses of such counsel shall be at the expense of such Indemnified
Party unless the employment of such counsel shall have been authorized in
writing by such Indemnifying Party in connection with the defense of such
Proceeding or such Indemnifying Party shall not have employed counsel to have
charge of the defense of such Proceeding within thirty (30) days of the receipt
of notice thereof or such Indemnified Party shall have reasonably concluded
upon the written advice of counsel that there may be one or more defenses
available to it that are different from, additional to or in conflict with
those available to such Indemnifying Party (in which case such Indemnifying
Party shall not have the right to direct that portion of the defense of such
Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may
employ counsel and participate in the defense thereof but the fees and expenses
of such counsel shall be at the expense of such Indemnifying Party), in any of
which events such reasonable fees and expenses shall be borne by such
Indemnifying Party and paid as incurred (it being understood, however, that such
Indemnifying Party shall not be liable for the expenses of more than one
separate counsel in any one Proceeding or series of related Proceedings
together with reasonably necessary local counsel

 20
 

 

representing
the Indemnified Parties who are parties to such action). An Indemnifying Party
shall not be liable for any settlement of such Proceeding effected without the
written consent of such Indemnifying Party, but if settled with the written
consent of such Indemnifying Party, such Indemnifying Party agrees to indemnify
and hold harmless an Indemnified Party from and against any loss or liability
by reason of such settlement. Notwithstanding the foregoing sentence, if at any
time an Indemnified Party shall have requested an Indemnifying Party to
reimburse such Indemnified Party for fees and expenses of counsel as
contemplated by the second sentence of this paragraph, then such Indemnifying
Party agrees that it shall be liable for any settlement of any Proceeding
effected without its written consent if (i) such settlement is entered
into more than sixty (60) Business Days after receipt by such Indemnifying
Party of the aforesaid request, (ii) such Indemnifying Party shall not
have reimbursed such Indemnified Party in accordance with such request prior to
the date of such settlement and (iii) such Indemnified Party shall have
given such Indemnifying Party at least forty-five (45) days prior notice of its
intention to settle. No Indemnifying Party shall, without the prior written
consent of any Indemnified Party, effect any settlement of any pending or
threatened Proceeding in respect of which such Indemnified Party is or could
have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the subject matter
of such Proceeding and does not include an admission of fault, culpability or a
failure to act, by or on behalf of such Indemnified Party.

(d)           If the
indemnification provided for in this Section 6 is unavailable to an
Indemnified Party under subsections (a) and (b) of this Section 6,
or insufficient to hold such Indemnified Party harmless, in respect of any
losses, damages, expenses, liabilities, claims or actions referred to therein,
then each applicable Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, damages, expenses, liabilities,
claims or actions in such proportion as is appropriate to reflect the relative
fault of the Company on the one hand and of the Holders or the Initial
Purchasers, on the other hand, in connection with the statements or omissions
which resulted in such losses, damages, expenses, liabilities, claims or
actions, as well as any other relevant equitable considerations. The relative
fault of the Company on the one hand and of the Holders or the Initial
Purchasers, on the other hand, shall be determined by reference to, among other
things, whether the untrue statement or alleged untrue statement of a material
fact or omission or alleged omission relates to information supplied by the
Company or by the Holders and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission.
The amount paid or payable by a party as a result of the losses, damages,
expenses, liabilities, claims and actions referred to above shall be deemed to
include any reasonable legal or other fees or expenses reasonably incurred by
such party in connection with investigating or defending any Proceeding.

(e)           The Company, the
Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 6 were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in subsection (d) above.
Notwithstanding the provisions of this Section 6, no Holder shall be
required to contribute any amount in excess of the amount by which the total
price at which the Registrable Securities giving rise to such contribution
obligation and sold by such Holder were offered to the public exceeds the amount
of any

 21
 

 

damages which
it has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The Holders’ respective
obligations to contribute pursuant to this Section 6 are several in
proportion to the respective amount of Registrable Securities they have sold
pursuant to a Shelf Registration Statement, and not joint. The remedies
provided for in this Section 6 are not exclusive and shall not limit any
rights or remedies which may otherwise be available to any indemnified party at
law or in equity.

(f)            The indemnity and
contribution provisions contained in this Section 6 shall remain operative
and in full force and effect regardless of (i) any termination of this
Agreement, (ii) any investigation made by or on behalf of any Holder or
the Initial Purchasers or any person controlling any Holder, or the Company or
the Company’s directors, officers, employees, representatives, agents or any
person controlling the Company and (iii) the sale of any Registrable
Security by any Holder.

Section 7.
Information Requirements.

(a)  The
Company covenants that, if at any time before the end of the Effectiveness
Period it is not subject to the reporting requirements of the Exchange Act, it
will cooperate with any Holder of Registrable Securities and take such further
action as any Holder of Registrable Securities may reasonably request in
writing (including, without limitation, making such representations as any such
Holder may reasonably request), all to the extent required from time to time to
enable such Holder to sell Registrable Securities without registration under
the Securities Act within the limitations of the exemptions provided by Rule 144,  Rule 144A, Regulation S under the
Securities Act and customarily taken in connection with sales pursuant to such
exemptions. Upon the written request of any Holder of Registrable Securities,
the Company shall deliver to such Holder a written statement as to whether the
Company has complied with the reporting requirements of the Exchange Act during
the preceding twelve (12) months, unless such a statement has been included in
the Company’s most recent report filed with the SEC pursuant to Section 13
or Section 15(d) of Exchange Act. Notwithstanding the foregoing,
nothing in this Section 7 shall be deemed to require the Company to
register any of its securities (other than the Common Stock) under any section
of the Exchange Act.

(b)           The
Company shall use its commercially reasonable efforts file the reports required
to be filed by it under the Exchange Act.

Section 8. Miscellaneous.

(a)  Remedies.
The Company acknowledges and agrees that any failure by the Company to comply
with its obligations under this Agreement may result in material irreparable
injury to the Initial Purchasers and the Holders for which there is no adequate
remedy at law, that it will not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, any Initial
Purchaser or Holder may obtain such relief as may be required to specifically
enforce the Company’s obligations under this Agreement. The Company further

 22
 

 

agrees to waive the defense in any action for specific performance that
a remedy at law would be adequate. Notwithstanding the foregoing two sentences,
this Section 9(a) shall not apply to the subject matter referred to
in and contemplated by Section 2(e).

(b)           No Conflicting Agreements. The Company is not, as of the
date hereof, a party to, nor shall it, on or after the date of this Agreement,
enter into, any agreement with respect to the Company’s securities that
conflicts with the rights granted to the Holders of Registrable Securities in
this Agreement. The Company represents and warrants that the rights granted to
the Holders of Registrable Securities hereunder do not in any way conflict with
the rights granted to the holders of the Company’s securities under any other
agreements. The Company represents and covenants that it has not granted, and
shall not grant, to any of its securityholders (other than the Holders in such
capacity) the right to include any of the Company’s securities in any Shelf
Registration Statement filed pursuant to this Agreement.

(c)           Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Company has obtained the written consent of (1) Holders
of a majority of outstanding Registrable Securities; provided  that,
this Agreement may be amended, modified or supplemented by written agreement
signed by the Company and the Initial Purchasers, without the consent of the
Holders, to cure any ambiguity, defect or inconsistency herein, or to make such
other provisions in regard to matters or questions arising under this Agreement
that shall not adversely affect the rights of any Holders. Notwithstanding the
foregoing, an amendment, modification, supplement, waiver or consent with
respect to a matter that relates exclusively to the rights of Holders of
Registrable Securities whose securities are being sold pursuant to a Shelf
Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable Securities may be given by Holders of at
least a majority of the Registrable Securities being sold by such Holders pursuant
to such Shelf Registration Statement; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the immediately preceding sentence.
Each Holder of Registrable Securities outstanding at the time of any such
amendment, modification, supplement, waiver or consent or thereafter shall be
bound by any such amendment, modification, supplement, waiver or consent
effected pursuant to this Section 9(c), whether or not any notice, writing
or marking indicating such amendment, modification, supplement, waiver or
consent appears on the Registrable Securities or is delivered to such Holder.

(d)           Notices. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand delivery, by
telecopier, by courier guaranteeing overnight delivery or by first-class mail,
return receipt requested, and shall be deemed given (i) when made, if made
by hand delivery, (ii) upon confirmation, if made by telecopier, (iii) one
(1) Business Day after being deposited with such courier, if made by
overnight courier or (iv) on the date indicated on the notice of receipt,
if made by first-class mail, to the parties as follows:

(x)      if to a Holder of Registrable Securities, at the most current
address given by such Holder to the Company in a Notice and Questionnaire or
any amendment thereto;

 23
 

 

(y)   if
to the Company, to:

MedImmune, Inc.

One
MedImmune Way

Gaithersburg,
Maryland 20878

Attention:
General Counsel

Telecopy No.: (301) 398-9625

(z)  if to the
Initial Purchasers, to:

UBS Securities LLC

299 Park Avenue

New York, New York 10171

Attention: Syndicate Department

Telecopy No.: (212) 713-3460

 

Merrill Lynch, Pierce,
Fenner & Smith Incorporated

4 World Financial Center

New York, New York 10080

Attention: Syndicate
Department

Telecopy No.: (212) 449-3886

or to such other address as such person may have
furnished to the other persons identified in this Section 9(d) in
writing in accordance herewith.

(e)           Majority of Registrable Securities.
For purposes of determining what constitutes holders of a majority of
Registrable Securities, as referred to in this Agreement, a majority shall
constitute a majority in aggregate principal amount of Registrable Securities,
treating each relevant holder of shares of Underlying Common Stock as a holder
of the aggregate principal amount of Notes in respect of which such Underlying
Common Stock was issued.

(f)            Approval
of Holders. Whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or its affiliates (as such term is
defined in Rule 405 under the Securities Act) (other than the Initial
Purchasers or subsequent Holders of Registrable Securities if the Initial
Purchasers or such subsequent Holders are deemed to be such affiliates solely
by reason of their holdings of such Registrable Securities) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

(g)           Third Party Beneficiaries.
The Holders shall be third party beneficiaries to the agreements made hereunder
between the Company, on the one hand, and the Initial Purchasers, on the other
hand, and shall have the right to enforce such agreements directly to the
extent they may deem such enforcement necessary or advisable to protect their
rights or the rights of Holders hereunder.

(h)           Successors
and Assigns. Any person who purchases any Registrable Securities
from any Initial Purchaser or from any Holder shall be deemed, for purposes of
this Agreement, to be an assignee of such Initial Purchaser or such Holder, as
the case may be. This Agreement shall inure to the benefit of and be binding
upon the successors and assigns of each of the parties hereto and shall inure
to the benefit of and be binding upon each Holder of any Registrable
Securities.

 24
 

 

(i)            Counterparts.
This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be original and all of which taken together shall constitute one and the
same agreement.

(j)            Headings.
The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

(k)           Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES THEREOF.

(l)            Severability.
If any term, provision, covenant or restriction of this Agreement is held to be
invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated
thereby, and the parties hereto shall use reasonable efforts to find and employ
an alternative means to achieve the same or substantially the same result as
that contemplated by such term, provision, covenant or restriction, it being
intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

(m)          Entire
Agreement. This Agreement is intended by the parties as a final
expression of their agreement and is intended to be a complete and exclusive statement
of the agreement and understanding of the parties hereto in respect of the
subject matter contained herein and the registration rights granted by the
Company with respect to the Registrable Securities. Except as provided in the
Purchase Agreement, there are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein, with respect to
the registration rights granted by the Company with respect to the Registrable
Securities. This Agreement supersedes all prior agreements and undertakings
among the parties with respect to such registration rights. No party hereto
shall have any rights, duties or obligations other than those specifically set
forth in this Agreement.

(n)           Termination.
This Agreement and the obligations of the parties hereunder shall terminate
upon the end of the Effectiveness Period, except for any liabilities or
obligations under Sections 4, 5 or 6 hereof and the obligations to make
payments of and provide for additional interest under Section 2(e) hereof
to the extent such additional interest accrues prior to the end of the
Effectiveness Period, each of which shall remain in effect in accordance with
its terms.

(o)           Submission to Jurisdiction.
Except as set forth below, no claim, counterclaim or dispute of any kind or
nature whatsoever arising out of or in any way relating to this Agreement (“Claim”)
may be commenced, prosecuted or continued in any court other than the courts of
the State of New York located in the City and County of New York or in the
United States District Court for the Southern District of New York, which
courts shall have jurisdiction

 25
 

 

over the adjudication of such matters, and the Company
hereby consents to the jurisdiction of such courts and personal service with
respect thereto. The Company hereby consents to personal jurisdiction, service
and venue in any court in which any Claim arising out of or in any way relating
to this Agreement is brought by any third party against any Initial Purchaser. THE
COMPANY HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER
BASED UPON CONTRACT, TORT OR OTHERWISE) IN ANY WAY ARISING OUT OF OR RELATING
TO THIS AGREEMENT. The Company agrees that a final judgment in any such
Proceeding brought in any such court shall be conclusive and binding upon the
Company and may be enforced in any other courts in the jurisdiction of which
the Company is or may be subject, by suit upon such judgment.

 26
 

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.

	
  

  	
   

  	
  MEDIMMUNE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/: Lota Zoth

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Lota Zoth

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Senior Vice President and Chief Financial
  Officer

  

 

Confirmed and
accepted as of the date

first above written on behalf of themselves

and the other several Initial Purchasers:

	
  UBS SECURITIES LLC

  	
   

  	
  MERRILL LYNCH, PIERCE,

  
	
   

  	
   

  	
   

  	
   

  	
  FENNER & SMITH INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Chris Hite

  	
   

  	
  By:

  	
   

  	
  /s/ Christine Bergmann

  
	
   

  	
   

  	
  Name: Chris Hite

  	
   

  	
   

  	
   

  	
  Name: Christine Bergmann

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Peter F. Lang

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Peter F. Lang

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Director

  	
   

  	
   

  	
   

  	
   

  

 

 27EXHIBIT
4.1

CS
FINANCING CORPORATION

SUBORDINATED
5 YEAR NOTES

 

INDENTURE

DATED
AS OF NOVEMBER 7, 2005

 

U.S.
BANK NATIONAL ASSOCIATION

AS

TRUSTEE

 

 

TABLE OF CONTENTS

	
  ARTICLE 1

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  Section 1.1. Definitions.

  	
   

  	
  1

  
	
  Section 1.2. Other Definitions.

  	
   

  	
  2

  
	
  Section 1.3. Incorporation by Reference of TIA.

  	
   

  	
  3

  
	
  Section 1.4. Rules of Construction.

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2

  
	
  THE 5
  YEAR NOTES

  
	
   

  	
   

  	
   

  
	
  Section 2.1. Form and Dating.

  	
   

  	
  3

  
	
  Section 2.2. Terms.

  	
   

  	
  4

  
	
  Section 2.3. Execution.

  	
   

  	
  4

  
	
  Section 2.4. Registrar and Paying Agent.

  	
   

  	
  4

  
	
  Section 2.5. Paying Agent to Hold Money in
  Trust.

  	
   

  	
  4

  
	
  Section 2.6. Certificateholder Lists.

  	
   

  	
  6

  
	
  Section 2.7. Transfer and Exchange.

  	
   

  	
  5

  
	
  Section 2.8. Replacement 5 Year Notes.

  	
   

  	
  5

  
	
  Section 2.9. Outstanding 5 Year Notes.

  	
   

  	
  5

  
	
  Section 2.10. Treasury 5 Year Notes.

  	
   

  	
  6

  
	
  Section 2.11. Temporary 5 Year Notes.

  	
   

  	
  6

  
	
  Section 2.12. Cancellation.

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  
	
  REDEMPTION

  
	
   

  	
   

  	
   

  
	
  Section 3.1. Applicability of Article.

  	
   

  	
  6

  
	
  Section 3.2. Notices to Trustee.

  	
   

  	
  7

  
	
  Section 3.3. Selection of 5 Year Notes to be
  Redeemed.

  	
   

  	
  7

  
	
  Section 3.4. Notice of Redemption.

  	
   

  	
  7

  
	
  Section 3.5. Effect of Notice of Redemption.

  	
   

  	
  8

  
	
  Section 3.6. Deposit of Redemption Price.

  	
   

  	
  8

  
	
  Section 3.7. 5 Year Notes Redeemed in Part.

  	
   

  	
  8

  
	
  Section 3.8. Redemption if Balance Falls Below
  $5,000.

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 4.1. Payment of 5 Year Notes.

  	
   

  	
  8

  
	
  Section 4.2. SEC Reports.

  	
   

  	
  8

  
	
  Section 4.3. Compliance Certificate.

  	
   

  	
  9

  
	
  Section 4.4. Usury Laws.

  	
   

  	
  9

  
	
  Section 4.5. Money for 5 Year Note Payments to
  be Held in Trust.

  	
   

  	
  9

  
	
  Section 4.6. Continued Existence.

  	
   

  	
  10

  
	
   

  	
   

  	
   

  

 

 i
 

 

 

	
  ARTICLE 5

  
	
  SUCCESSORS

  
	
   

  	
   

  	
   

  
	
  Section 5.1. When Company May Merge, Etc.

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  
	
  DEFAULTS
  AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 6.1. Events of Default.

  	
   

  	
  10

  
	
  Section 6.2. Acceleration.

  	
   

  	
  12

  
	
  Section 6.3. Other Remedies.

  	
   

  	
  12

  
	
  Section 6.4. Waiver of Past Defaults.

  	
   

  	
  12

  
	
  Section 6.5. Control by Majority.

  	
   

  	
  12

  
	
  Section 6.6. Limitation on Suits.

  	
   

  	
  12

  
	
  Section 6.7. Rights of Holders to Receive
  Payment.

  	
   

  	
  13

  
	
  Section 6.8. Collection Suit by Trustee.

  	
   

  	
  13

  
	
  Section 6.9. Trustee May File Proofs of
  Claim.

  	
   

  	
  13

  
	
  Section 6.10. Priorities.

  	
   

  	
  14

  
	
  Section 6.11. Undertaking for Costs.

  	
   

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  7

  
	
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 7.1. Duties of Trustee.

  	
   

  	
  14

  
	
  Section 7.2. Rights of Trustee.

  	
   

  	
  15

  
	
  Section 7.3. Individual Rights of Trustee.

  	
   

  	
  16

  
	
  Section 7.4. Trustee’s Disclaimer.

  	
   

  	
  16

  
	
  Section 7.5. Notice of Defaults.

  	
   

  	
  16

  
	
  Section 7.6. Reports by Trustee to Holders.

  	
   

  	
  17

  
	
  Section 7.7. Compensation and Indemnity.

  	
   

  	
  17

  
	
  Section 7.8. Replacement of Trustee.

  	
   

  	
  18

  
	
  Section 7.9. Successor Trustee by Merger, Etc.

  	
   

  	
  18

  
	
  Section 7.10. Eligibility; Disqualification.

  	
   

  	
  19

  
	
  Section 7.11. Preferential Collection of Claims
  Against Company.

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  8

  
	
  DISCHARGE
  OF INDENTURE; DEFEASANCE

  
	
   

  	
   

  	
   

  
	
  Section 8.1. Termination of Company’s
  Obligations.

  	
   

  	
  19

  
	
  Section 8.2. Legal Defeasance and Covenant
  Defeasance.

  	
   

  	
  20

  
	
  Section 8.3. Conditions to Legal Defeasance or
  Covenant Defeasance.

  	
   

  	
  21

  
	
  Section 8.4. Application of Trust Money.

  	
   

  	
  22

  
	
  Section 8.5. Repayment to the Company.

  	
   

  	
  22

  
	
   

  	
   

  	
   

  

 

 ii
 

 

 

	
  ARTICLE 9

  
	
  AMENDMENTS

  
	
   

  	
   

  	
   

  
	
  Section 9.1. Without Consent of Holders.

  	
   

  	
  23

  
	
  Section 9.2. With Consent of Holders.

  	
   

  	
  23

  
	
  Section 9.3. Compliance with Trust Indenture
  Act.

  	
   

  	
  24

  
	
  Section 9.4. Revocation and Effect of Consents.

  	
   

  	
  24

  
	
  Section 9.5. Notation on or Exchange of 5 Year
  Notes.

  	
   

  	
  24

  
	
  Section 9.6. Trustee Protected.

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10

  
	
  SUBORDINATION

  
	
   

  	
   

  	
   

  
	
  Section 10.1. Agreement to Subordinate.

  	
   

  	
  25

  
	
  Section 10.2. Certain Definitions.

  	
   

  	
  25

  
	
  Section 10.3. Liquidation; Dissolution;
  Bankruptcy.

  	
   

  	
  25

  
	
  Section 10.4. Default on Senior Debt.

  	
   

  	
  26

  
	
  Section 10.5. Acceleration of 5 Year Notes.

  	
   

  	
  26

  
	
  Section 10.6. When Distribution Must Be Paid
  Over.

  	
   

  	
  26

  
	
  Section 10.7. Notice by Company.

  	
   

  	
  27

  
	
  Section 10.8. Subrogation.

  	
   

  	
  27

  
	
  Section 10.9. Relative Rights.

  	
   

  	
  27

  
	
  Section 10.10. Subordination may not be
  Impaired by Company.

  	
   

  	
  28

  
	
  Section 10.11. Distribution or Notice to
  Representative.

  	
   

  	
  28

  
	
  Section 10.12. Rights of Trustee and Paying
  Agent.

  	
   

  	
  28

  
	
  Section 10.13. Trust Moneys Not Subordinated.

  	
   

  	
  28

  
	
  Section 10.14. Trustee Not Fiduciary for
  Holders of Senior Debt.

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 11.1. TIA Controls.

  	
   

  	
  29

  
	
  Section 11.2. Notices.

  	
   

  	
  29

  
	
  Section 11.3. Communication by Holders With
  Other Holders.

  	
   

  	
  29

  
	
  Section 11.4. Certificate and Opinion as to
  Conditions Precedent.

  	
   

  	
  29

  
	
  Section 11.5. Statements Required in
  Certificate or Opinion.

  	
   

  	
  30

  
	
  Section 11.6. Rules by Trustee and Agents.

  	
   

  	
  30

  
	
  Section 11.7. Legal Holidays.

  	
   

  	
  30

  
	
  Section 11.8. No Recourse Against Others.

  	
   

  	
  30

  
	
  Section 11.9. Duplicate Originals.

  	
   

  	
  31

  
	
  Section 11.10. Variable Provisions.

  	
   

  	
  31

  
	
  Section 11.11. Governing Law.

  	
   

  	
  31

  
	
  Section 11.12. No Adverse Interpretation of
  Other Agreements.

  	
   

  	
  31

  
	
  Section 11.13. Successors.

  	
   

  	
  31

  
	
  Section 11.14. Severability.

  	
   

  	
  32

  

 

 iii

 

INDENTURE dated as
of November 7, 2005, between CS Financing Corporation, a Delaware
corporation (“Company”), and U.S. Bank National Association, a national banking
association (“Trustee”).

Each party agrees
as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s 5 Year Notes:

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.1.                                   Definitions.

“Affiliate” means any
person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company.

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

“Board of Directors” means
the Board of Directors of the Company or any authorized committee of the Board.

“Company” means the party
named as such above until a successor replaces it and thereafter means the
successor or any other obligor with respect to the 5 Year Notes.

“Company Order” means an
order signed in the name of the Company by its President or a Vice President,
and by its Treasurer or Secretary, and delivered to the Trustee.

“Date of Issue” means the
date that the Company receives proper documentation and the funds for the
purchase of a 5 Year Note if such funds are received prior to 3:00 p.m. on
a business day or the next business day if the Company receives such funds on a
non-business day or after 3:00 p.m. on a business day. For this purpose,
the Company’s business days will be deemed to be Monday through Friday, except
on Minnesota legal holidays.

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

“5 Year Notes” means the 5
Year Notes described herein issued under this Indenture.

“Holder” or “Certificateholder” means a person in whose
name a 5 Year Note is registered.

“Indenture” means this
Indenture as amended from time to time.

“Officers’ Certificate”
means a certificate signed by an officer of the Company.

 1
 

 

 

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

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

“Principal” of a debt
security means the principal of the security plus the premium, if any, on the
security.

“SEC” means the United
States Securities and Exchange Commission.

“Stated Maturity,” when
used with respect to a 5 Year Note, means the date specified in such 5 Year
Note as the fixed date on which the principal of such 5 Year Note and any
accrued but unpaid interest is due and payable.

“Subsidiary” means any
person of which at least a majority of capital stock having ordinary voting
power for the election of directors or other governing body of such person is
owned by the Company directly or through one or more subsidiaries.

“TIA” means the Trust
Indenture Act of 1939 as in effect on the date of execution of this Indenture.

“Trustee” means the party
named as such above until a successor replaces it and thereafter means the
successor.

“Trust Officer” means the
Chairman of the Board, the President or any other officer or assistant officer
of the Trustee assigned by the Trustee to administer its corporate trust matters.

Section 1.2.                                   Other
Definitions.

	
  

  	
   

  	
  Defined in

  
	
  Term

  	
   

  	
   

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  “Additional
  Interest”

  	
   

  	
  2.2(b)

  
	
  “Bankruptcy
  Law”

  	
   

  	
  6.1

  
	
  “Custodian”

  	
   

  	
  6.1

  
	
  “Debt”

  	
   

  	
  10.2

  
	
  “Event
  of Default”

  	
   

  	
  6.1

  
	
  “Legal
  Holiday”

  	
   

  	
  11.7

  
	
  “Officer”

  	
   

  	
  11.10

  
	
  “Representative”

  	
   

  	
  10.2

  
	
  “Senior
  Debt”

  	
   

  	
  10.2

  
	
  “U.S.
  Government Obligations”

  	
   

  	
  8.1

  
					

 

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Section 1.3.                                   Incorporation
by Reference of TIA.

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

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

“Indenture Securities”
means the 5 Year Notes;

“Indenture Security Holder”
means a Certificateholder;

“Indenture to be Qualified”
means this Indenture;

“Indenture Trustee”
or “Institutional Trustee” means
the Trustee; and

“Obligor” on the 5 Year
Notes means the Company.

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 assigned to them.

Section 1.4.                                   Rules of
Construction.

Unless the context otherwise requires:

(1)                                  a
term has the meaning assigned to it;

(2)                                  an
accounting term not otherwise defined has the meaning assigned to it in
accordance with United States generally accepted accounting principles in
effect on the date of execution of this Indenture;

(3)                                  “or” is not exclusive;

(4)                                  words
in the singular include the plural, and in the plural include the singular; and

(5)                                  provisions
apply to successive events and transactions.

ARTICLE 2

THE 5 YEAR NOTES

Section 2.1.                                   Form and
Dating.

The 5 Year Notes shall be substantially in the form of EXHIBIT A, with
such appropriate insertions, omissions, substitutions and other variations
required or permitted by this Indenture. The 5 Year Notes may have notations,
legends or endorsements required by law, stock exchange rule or usage.

 3
 

 

 

Section 2.2.                                   Terms.

(a)                                  Amount Unlimited; Terms. The aggregate
principal amount of 5 Year Notes which may be delivered under this Indenture is
unlimited. 5 Year Notes may be issued in one or more series. The initial
aggregate principal amount of the 5 Year Notes to be delivered under this
Indenture shall be $100,000,000. The aggregate principal amount may be
increased, without the need for approval of any Holders or the Trustee by means
of Company Order, as set forth in Section 9.1.

(b)                                 Interest. The interest rate payable on any
5 Year Note shall be a fixed rate of 11% per annum.

(c)                                  Subordination. The 5 Year Notes shall be
subordinated and junior in right of payment to all Senior Debt of the Company
as provided in Article 10.

Section 2.3.                                   Execution.

Two Officers, consisting of the President or a Vice President and the
Treasurer or Secretary, shall sign the 5 Year Notes for the Company by manual
or facsimile signature.

If an Officer whose signature is on a 5 Year Note no longer holds that
office at the time the 5 Year Note is delivered, the 5 Year Note shall
nevertheless be valid.

Section 2.4.                                   Registrar
and Paying Agent.

The Company shall maintain an office or agency where 5 Year Notes may
be presented for registration of transfer or for exchange (“Registrar”) and an office or agency where 5
Year Notes may be presented for payment (“Paying
Agent”). The Registrar shall keep a register of the 5 Year Notes and
of their transfer and exchange. The Company may appoint one or more
co-registrars and one or more additional paying agents. The Company may change
any Paying Agent, Registrar or co-registrar without notice to any
Certificateholder. The term “Paying Agent”
includes any additional paying agent. The Company shall notify the Trustee of
the name and address of any agent not a party to this Indenture. The Company or
any of its subsidiaries may act as Paying Agent or Registrar. The Company
initially appoints itself as Paying Agent and Registrar.

Section 2.5.                                   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
Certificateholders or the Trustee all money held by the Paying Agent for the
payment of principal or interest on the 5 Year Notes, and will notify the
Trustee of any failure by the Company in making any such payment. While any
such failure continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. 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 shall have no further liability for the money. If the Company
acts as Paying 

 4
 

 

 

Agent, it shall segregate and hold in a separate bank account for the
benefit of the Certificateholders all money held by it as Paying Agent. The
Paying Agent may charge for its expenses in issuing a replacement interest check.

Section 2.6.                                   Certificateholder
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
Certificateholders. If the Trustee is not the Registrar, the Company shall
timely furnish to the Trustee the changes in this list and will furnish an
updated list of the names and addresses of Certificateholders in such form and
as of such date and at such other times as the Trustee may request in writing.

Section 2.7.                                   Transfer
and Exchange.

Where 5 Year Notes are presented to the Registrar or a co-registrar
with a request to register, transfer or to exchange them for an equal principal
amount of 5 Year Notes but of other denominations, the Registrar shall register
the transfer or make the exchange if its requirements for such transactions are
met. To permit registrations of transfer and exchanges, the Company shall issue
5 Year Notes at the Registrar’s request. The Company may charge for its
expenses in transferring or exchanging a 5 Year Note.

The Company shall not be required (i) to issue, transfer or
exchange any 5 Year Note during a period beginning at the opening of business
15 days before the day of the mailing of a notice of redemption of 5 Year Notes
selected for redemption pursuant to Section 3.3 and ending at the close of
business on the date of such redemption, or (ii) to transfer or exchange
any 5 Year Note selected for redemption in whole or in part.

Section 2.8.                                   Replacement
5 Year Notes.

If the Holder of a 5 Year Note claims that the 5 Year Note has been
lost, destroyed or wrongfully taken, the Company shall issue a replacement 5
Year Note if the Trustee’s requirements are met. If required by the Trustee or
the Company, an indemnity bond must be sufficient in the judgment of both the
Company and the Trustee to protect the Company, the Trustee or any Agent from
any loss which any of them may suffer if a 5 Year Note is replaced.

The Trustee may waive such indemnity bond if so instructed by the
Company. The Company may charge for its expenses in replacing a 5 Year Note.

Every replacement 5 Year Note is an additional obligation of the
Company.

Section 2.9.                                   Outstanding
5 Year Notes.

The 5 Year Notes outstanding at any time are all of the 5 Year Notes
delivered by the Company pursuant to this Indenture except for those canceled
by it, those 

 5
 

 

 

delivered to it for cancellation, and those described in this Section as
not outstanding.

If a 5 Year Note is replaced pursuant to Section 2.8, it ceases to
be outstanding unless the Trustee receives proof satisfactory to it that the
replaced 5 Year Note is held by a bona fide purchaser.

If 5 Year Notes are considered paid under Section 4.1, they cease
to be outstanding and interest on them ceases to accrue.

Section 2.10.                             Treasury
5 Year Notes.

In determining whether the Holders of the required principal amount of
the 5 Year Notes have concurred in any direction, waiver or consent, 5 Year
Notes owned by the Company or an Affiliate shall be disregarded, except that
for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only 5 Year Notes which the
Trustee knows are so owned shall be so disregarded.

Section 2.11.                             Temporary
5 Year Notes.

Until definitive 5 Year Notes are ready for delivery, the Company may
prepare temporary 5 Year Notes. Temporary 5 Year Notes shall be substantially
in the form of definitive 5 Year Notes but may have variations that the Company
considers appropriate. Without unreasonable delay, the Company shall prepare
definitive 5 Year Notes in exchange for temporary 5 Year Notes.

Section 2.12.                              Cancellation.

The Company at any time may deliver 5 Year Notes to the Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Trustee any 5
Year Notes surrendered to them for registration of transfer, exchange or
payment. The Trustee shall cancel all 5 Year Notes surrendered for registration
of transfer, exchange, payment, replacement or cancellation and shall dispose
of canceled 5 Year Notes as the Company directs. The Company may not issue new
5 Year Notes to replace 5 Year Notes that it has paid or that have been
delivered to the Trustee for cancellation.

ARTICLE 3

REDEMPTION

Section 3.1.                                   Applicability
of Article.

Redemption of 5 Year Notes at the election of the Company, as permitted
or required by any provision of this Indenture, shall be made in accordance
with such provision and this Article.

 6
 

 

 

Section 3.2.                                   Notices
to Trustee.

If the Company wants to redeem the 5 Year Notes pursuant to paragraph 2
of the 5 Year Notes, it shall notify the Trustee by Officers’ Certificate of
the redemption date and the principal amount of 5 Year Notes to be redeemed.
The Company shall give each notice provided for in this Section at least
fifty (50) days before the redemption date.

Section 3.3.                                   Selection
of 5 Year Notes to be Redeemed.

If fewer than all the 5 Year Notes are to be redeemed, the Company
shall select the 5 Year Notes to be redeemed by daily balance range, and so
inform the Trustee by Officers’ Certificate, subject to the remainder of this
Section. If less than all of a grouping of 5 Year Notes, as specified by
Officers’ Certificate, are to be redeemed, the portion thereof selected for
redemption shall be determined ratably or by lot. If fewer than all of such
grouping of 5 Year Notes as specified by Officers’ Certificate are to be
redeemed, the Trustee shall then make the selection not more than fifty (50)
days before the redemption date from 5 Year Notes outstanding not previously
called for redemption. The Trustee may select for redemption portions of the
principal of 5 Year Notes that have denominations greater than $5,000.
Provisions of this Indenture that apply to 5 Year Notes called for redemption
also apply to portions of 5 Year Notes called for redemption. The Trustee shall
notify the Company promptly of the 5 Year Notes or portions of 5 Year Notes to
be called for redemption.

Section 3.4.                                   Notice
of Redemption.

At least thirty (30) days but not more than sixty (60) days before a
redemption date, the Company shall mail a notice of redemption by first-class
mail to each Holder of 5 Year Notes whose 5 Year Notes are to be redeemed.

The notice shall identify the 5 Year Notes to be redeemed and shall
state:

(1)                                  the
redemption date;

(2)                                  the
redemption price, which shall be equal to 100% of the principal amount of the 5
Year Note plus accrued interest on a daily basis to the redemption date;

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

(4)                                  that
5 Year Notes called for redemption must be surrendered to the Paying Agent to
collect the redemption price; and

(5)                                  that
interest on 5 Year Notes called for redemption ceases to accrue on and after
the redemption date.

At the Company’s request, the Trustee shall give the notice of
redemption in the Company’s name and at its expense.

 7
 

 

 

Section 3.5.                                   Effect
of Notice of Redemption.

Once notice of redemption is mailed, 5 Year Notes called for redemption
become due and payable on the redemption date at the redemption price.

Section 3.6.                                   Deposit
of Redemption Price.

On or before the redemption date, the Company shall deposit with the
Paying Agent, or if the Company is acting as Paying Agent it shall deposit into
a separate bank account pursuant to Section 2.5 hereof, money sufficient
to pay the redemption price of and accrued interest on all 5 Year Notes to be
redeemed on that date.

Section 3.7.                                   5
Year Notes Redeemed in Part.

Upon surrender of a 5 Year Note that is redeemed in part, the Company
shall issue for the Holder a new 5 Year Note equal in principal amount to the
unredeemed portion of the 5 Year Note surrendered.

Section 3.8.                                   Redemption
if Balance Falls Below $25,000.

The Company may, in its sole discretion, redeem any 5 Year Note in full
if the principal balance of such 5 Year Note falls below $25,000 at any time.
The redemption price shall be equal to 100% of the principal amount of the 5
Year Note plus accrued interest on a daily basis to the redemption date. This
redemption right of the Company shall be automatic and no advance notice is
required.

ARTICLE 4

COVENANTS

Section 4.1.                                   Payment
of 5 Year Notes.

The Company shall pay the principal of and interest on the 5 Year Notes
upon demand of the Holder in the manner provided in the 5 Year Notes. Principal
and interest shall be considered paid on the date due if the Paying Agent holds
on that date money designated for and sufficient to pay all principal and
interest then due.

Section 4.2.                                   SEC
Reports.

The Company shall file with the Trustee within fifteen (15) days after
it files them with the SEC copies of the annual reports and quarterly reports
and of the information, documents, and other reports (or copies of such
portions of any of the foregoing as the SEC may by rules and regulations
prescribe) for the 5 Year Notes which the Company may be required to file with
the SEC pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934, as amended. The Company also shall comply with
the other provisions of TIA Section 314(a).

 8
 

 

 

Section 4.3.                                   Compliance
Certificate.

The Company shall deliver to the Trustee, within one hundred twenty
(120) days after the end of each fiscal year of the Company, an Officers’
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 hereof (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 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 5 Year Notes are prohibited. See Section 11.10.

Section 4.4.                                   Usury
Laws.

The Company will not voluntarily claim and will actively resist any
attempts to claim the benefit of any usury laws against the Holders of the 5
Year Notes.

Section 4.5.                                   Money
for 5 Year Note Payments to be Held in Trust.

Whenever the Company shall have one or more Paying Agents, it will, on
or prior to each date for the payment of the principal of or interest on the 5
Year Notes, deposit with a Paying Agent a sum sufficient to pay the principal
and interest so becoming due, such sum to be held in trust for the benefit of
the persons entitled to such payments; and, unless such Paying Agent is the
Trustee, the Company will promptly notify the Trustee of its action or failure
so to act.

The Company will cause each Paying Agent other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section, that
such Paying Agent will:

(1)                                  hold
all sums held by it for the payment of the principal of and interest on the 5
Year Notes in trust for the benefit of the persons entitled thereto until such
sums shall be paid to such persons or otherwise disposed of as herein provided;

(2)                                  give
the Trustee notice of any default by the Company (or any other obligor upon the
5 Year Notes) in the making of any payment of principal and interest; and

(3)                                  at
any time during the continuance of any such default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent.

 9
 

 

 

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

Section 4.6.                                   Continued
Existence.

Subject to Article 5, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its existence as
a corporation.

ARTICLE 5

SUCCESSORS

Section 5.1.                                   When
Company May Merge, Etc.

The Company shall not consolidate or merge with or into, or transfer or
lease all or substantially all of its assets to, any Person unless the
corporation formed by or surviving any such consolidation or merger (if other
than the Company), or to which such sale or conveyance shall have been made,
assumes by supplemental indenture all the obligations of the Company under the
5 Year Notes then outstanding and this Indenture.

The Company shall deliver to the Trustee prior to the proposed
transaction an Officers’ Certificate to the foregoing effect and an Opinion of
Counsel stating that the proposed transaction and such supplemental indenture
comply with this Indenture.

The surviving corporation shall be the successor Company, but the
predecessor Company in the case of a transfer or lease shall not be released
from the obligation to pay the principal of and interest on the 5 Year Notes.

ARTICLE 6

DEFAULTS AND REMEDIES

Section 6.1.                                   Events
of Default.

An “Event Of Default”
occurs if:

(1)                                  the
Company defaults in the payment of the principal and interest of any 5 Year
Note when the same is presented for payment, upon redemption or otherwise,
which default has not been cured for a period of thirty (30) days;

 10
 

 

 

(2)                                  the
Company fails to comply with any of its other agreements or covenants in, or
provisions of, the 5 Year Notes or this Indenture and the Default continues for
the period and after the notice specified below;

(3)                                  the
Company or any material subsidiary pursuant to or within the meaning of any
Bankruptcy Law now or hereafter in effect:

(A)                              commences
a voluntary proceeding under any such Bankruptcy Law;

(B)                                consents
to the entry of an order for relief against it in an involuntary Bankruptcy
proceeding;

(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;

(4)                                  a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

(A)                              is
for relief against the Company or any material subsidiary in an involuntary
Bankruptcy proceeding;

(B)                                appoints
a Custodian of the Company or any material subsidiary or for all or
substantially all of its property; or

(C)                                orders
the winding up or liquidation of the Company or any material subsidiary, and the
order or decree remains unstayed and in effect for 60 days.

The term “Bankruptcy Law”
means Title 11 of the United States Code or any similar Federal or State Law
for the relief of debtors. The term “Custodian”
means any receiver, trustee, assignee, liquidator, sequestrator or similar
official under any Bankruptcy Law.

A Default under clause (3) is not an Event of Default until the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding 5 Year Notes notify the Company of the Default and the Company does
not cure the Default within sixty (60) days after receipt of the notice. The
notice must specify the Default, demand that it be remedied and state that the
notice is a “Notice of Default.”

 11
 

 

 

Section 6.2.                                   Acceleration.

If an Event of Default occurs and is continuing, the Trustee by notice
to the Company, or the Holders of at least 25% in principal amount of the then
outstanding 5 Year Notes, by notice to the Company and the Trustee, may declare
the principal of and accrued interest on all the 5 Year Notes to be due and
payable. Upon such declaration the principal and interest owing on the then
outstanding 5 Year Notes shall be due and payable immediately The Holders of a
majority in principal amount of the then outstanding 5 Year Notes, by notice to
the Trustee, may rescind an acceleration and its consequences if the rescission
would not conflict with any judgment or decree and if all existing Events of
Default have been cured or waived, except nonpayment of principal or interest that
has become due solely because of the acceleration.

Section 6.3.                                   Other
Remedies.

If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal and interest on the 5
Year Notes or to enforce the performance of any provision of the 5 Year Notes
or this Indenture.

The Trustee may maintain a proceeding even if it does not possess any
of the 5 Year Notes or does not produce any of them in the proceeding. A delay
or omission by the Trustee or any Holder of 5 Year Notes 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 6.4.                                   Waiver
of Past Defaults.

The Holders of a majority in principal amount of the then outstanding 5
Year Notes, by notice to the Trustee, may waive an existing Default or Event of
Default and its consequences except a continuing Default or Event of Default in
the payment of the principal of and interest on the 5 Year Notes.

Section 6.5.                                   Control
by Majority.

The Holders of a majority in principal amount of the then outstanding 5
Year Notes may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power
conferred on the Trustee. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, is unduly prejudicial to
the rights of other Holders of the 5 Year Notes, or would involve the Trustee
in personal liability.

Section 6.6.                                   Limitation
on Suits.

The Holder of 5 Year Notes may pursue a remedy with respect to this
Indenture or the 5 Year Notes only if:

(1)                                  the
Holder gives to the Trustee notice of a continuing Event of Default;

 12
 

 

 

(2)                                  the
Holders of at least 25% in principal amount of the then outstanding 5 Year
Notes make a request to the Trustee to pursue the remedy;

(3)                                  such
Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee
against any loss, liability or expense;

(4)                                  the
Trustee does not comply with the request within sixty (60) days after receipt
of the request and the offer of indemnity; and

(5)                                  during
such sixty (60)-day period the Holders of a majority of principal amount of the
then outstanding 5 Year Notes do not give the Trustee a direction inconsistent
with the request.

A Certificateholder may not use this Indenture to prejudice the rights
of another Holder of the 5 Year Notes or to obtain a preference or priority
over another Holder of the 5 Year Notes.

Section 6.7.                                   Rights
of Holders to Receive Payment.

Notwithstanding any other provision of this Indenture, the right of any
Holder of a 5 Year Note to receive payment of principal and interest on the 5
Year Note, on or after the date demand is made for payment therefor, or to
bring suit for the enforcement of any such payment on or after such demand
date, shall not be impaired or affected without the consent of the Holder.

Section 6.8.                                   Collection
Suit by Trustee.

If an Event of Default specified in Section 6.1(1) or Section 6.1(2) occurs
and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount of
principal and interest and fees remaining unpaid on the 5 Year Notes with
respect to which the Event of Default occurred in each case at the rate per
annum borne by the 5 Year Notes and such 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 6.9.                                   Trustee
May File Proofs of Claim.

The Trustee may file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and the Certificateholders allowed in
any judicial proceedings relative to the Company, its creditors or its
property. The Trustee shall be entitled to participate as a member of any
official committee of creditors in the matters as it deems necessary or
advisable.

 13
 

 

 

Section 6.10.                             Priorities.

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

First:                                                                     to
the Trustee for amounts due under Section 7.7;

Second:                                                     to
holders of Senior Debt to the extent required by Article 10;

Third:                                                                to
Holders of 5 Year Notes and holders of Debentures for amounts due and unpaid on
the 5 Year Notes and Debentures for principal and interest, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the 5 Year Notes and Debentures for principal and interest, respectively; and

Fourth:                                                         to
the Company.

The Trustee may fix a record date and payment date for any payment to
the Certificateholders 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 assess reasonable costs,
including reasonable attorneys’ fees, 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 pursuant to Section 6.7, or a suit by Holders
of more than 10% in principal amount of the then outstanding 5 Year Notes.

ARTICLE 7

TRUSTEE

Section 7.1.                                   Duties
of Trustee.

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

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

(A)                              The
Trustee need perform only those duties that are specifically set forth in this
Indenture and no duties, covenants, responsibilities or obligations shall be
implied in this Indenture against the Trustee; and

 

 14

 

(B)                                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 (including without limitation Officers’
Certificates and Opinions of Counsel) furnished to the Trustee and conforming
to the requirements of this Indenture. However, the Trustee shall examine the
certificates and opinions to determine whether or not they conform on their
face to the requirements of this Indenture.

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

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

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

(C)                                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 6.5.

(4)                                  Every
provision of this Indenture that in any way relates to the Trustee is subject
to paragraphs (a), (b) and (c) of this Section.

(5)                                  The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or expense.

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

Section 7.2.                                   Rights
of Trustee.

(1)                                  The
Trustee may conclusively rely on 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.

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

 15
 

 

 

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

(4)                                  The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers.

(5)                                  The
Trustee shall have no duty to inquire as to the performance of the Company with
respect to covenants contained in Article 4. In addition, delivery of
reports, information and documents to the Trustee under Section 4.2 is for
informational purposes only and the Trustee’s receipt of the foregoing shall
not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of their covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).

Section 7.3.                                   Individual
Rights of Trustee.

Subject to Section 7.1:

(a)                                  The
Trustee in its individual or any other capacity may become the owner or pledgee
of 5 Year Notes and may otherwise deal with the Company or an Affiliate with
the same rights it would have if it were not Trustee. Any Agent may do the same
with like rights.

(b)                                 The
Company shall notify the Trustee if the 5 Year Notes become listed on any
securities exchange or of any delisting thereof and the Trustee shall comply
with Section 313(d) of the TIA.

Section 7.4.                                   Trustee’s
Disclaimer.

The Trustee makes no representation at to the validity or adequacy of
this Indenture or the 5 Year Notes, it shall not be accountable for the Company’s
use of the proceeds from the 5 Year Notes, and it shall not be responsible for
any statement in the 5 Year Notes.

Section 7.5.                                   Notice
of Defaults.

If a Default or Event of Default occurs and is continuing and if it is
known to the Trustee, the Trustee shall mail to Holders of the 5 Year Notes a
notice of the Default or Event of Default within ninety (90) days after it
occurs. Except in the case of a Default or Event of Default in payment on a 5
Year Note, the Trustee may withhold the notice if and so long as a committee of
its Trust Officers in good faith determines that withholding the notice is in
the interests of Holders of the 5 Year Notes.

 16
 

 

 

Section 7.6.                                   Reports
by Trustee to Holders.

Within 60 days after the reporting date stated in Section 11.10,
the Trustee shall mail to Certificateholders a brief report dated as of such
reporting date that complies with Section 313(a) of the TIA. The
Trustee also shall comply with Section 313(b)(2) of the TIA.

A copy of each report at the time of its mailing to Certificateholders
shall be filed with the SEC and each stock exchange on which the 5 Year Notes
are listed. The Company shall notify the Trustee when the 5 Year Notes are
listed on any stock exchange.

Section 7.7.                                   Compensation
and Indemnity.

The Company shall pay to the Trustee from time to time reasonable
compensation for its services. 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 upon request for all reasonable out-of-pocket expenses
incurred by it. Such expenses shall include the reasonable compensation and
out-of-pocket expenses of the Trustee’s agents and counsel.

The Company shall indemnify the Trustee against any loss or liability
incurred by it except as set forth in the next two paragraphs. The Trustee
shall notify the Company promptly of any claim for which it may seek indemnity.
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 Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee through negligence or bad faith.

To secure the Company’s payment of obligations in this Section, the
Trustee shall have a lien prior to the 5 Year Notes on all money or property
held or collected by the Trustee, including that held in trust to pay principal
and interest on the 5 Year Notes.

When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.1(4) or (5) occurs, the expenses
and the compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

Section 7.8.                                   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.

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The Trustee may resign by so notifying the Company. The Trustee may be
removed with respect to the 5 Year Notes by the Holders of a majority in
principal amount of the then outstanding 5 Year Notes by so notifying the
Trustee and the Company. The Company may remove the Trustee if:

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

(b)                                 the
Trustee is adjudged a bankrupt or an insolvent or any 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;

(d)                                 the
Trustee becomes incapable of action; or

(e)                                  in
the judgment of the Company, comparable services are available from another
entity qualifying under Section 7.10 at a materially lower cost to the Company.

If the Trustee resigns or is removed or if a vacancy exists in the
office of the Trustee for any reason, the Company shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, a
successor Trustee may be appointed by act of the Holders of a majority in
principal amount of the then outstanding 5 Year Notes to replace the successor
Trustee appointed by the Company.

If a successor Trustee does not take office within sixty (60) days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company or the Holders of at least 10% in principal amount of the then
outstanding 5 Year Notes may petition any court of competent jurisdiction for
the appointment of a successor Trustee.

If the Trustee fails to comply with Section 7.10, any Holder of
the 5 Year Notes may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

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 the
Holders of 5 Year Notes. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien
provided for in Section 7.7.

Section 7.9.                                   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.

 18
 

 

 

Section 7.10.                             Eligibility;
Disqualification.

This Indenture shall always have a Trustee who satisfies the
requirements of Sections 310(a)(1), 310(a)(2) and 310(a)(5) of the
TIA. The Trustee shall always have a combined capital and surplus as stated in
the TIA. The Trustee is subject to Section 310(b) of the TIA. Section 11.10
lists any excluded indenture or trust agreement.

Section 7.11.                             Preferential
Collection of Claims Against Company.

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

ARTICLE 8

DISCHARGE OF INDENTURE; DEFEASANCE

Section 8.1.                                   Termination
of Company’s Obligations.

This Indenture shall cease to be of further effect (except that the
Company’s obligations under Sections 7.7 and 8.5 shall survive) when all
outstanding 5 Year Notes theretofore issued have been delivered to the Trustee
for cancellation. In addition, the Company may terminate its obligations under
this Indenture if:

(a)                                  The
5 Year Notes then outstanding are to be called for redemption within one year
under arrangements satisfactory to the Trustee for giving the notice of
redemption; and

(b)                                 The
Company irrevocably deposits in trust with the Trustee money or U.S. Government
Obligations sufficient to pay principal and interest on the 5 Year Notes then
outstanding to maturity or redemption, as the case may be. The Company may make
the deposit only during the one-year period and only if Article 11 permits
it.

However, the Company’s obligations in Sections 2.4, 2.5, 2.6, 2.7, 2.8,
4.1, 6.7, 6.8 and 8.5, and in Article 10, shall survive until no 5 Year
Notes are outstanding. Thereafter, only the Company’s obligations in Sections
7.7 and 8.5 shall survive.

If a deposit is made pursuant to this Section 8.1, the Trustee,
upon request, shall acknowledge in writing the discharge of the Company’s
obligations under this Indenture, except for those surviving obligations
specified above.

In order to have money available on a payment date to pay principal and
interest on the 5 Year Notes, the U.S. Government Obligations shall be payable
as to principal and interest on or before such payment date in such amounts as
will provide the necessary money. U.S. Government Obligations shall not be
callable at the issuer’s option.

 19
 

 

 

“U.S. Government Obligations”
means direct obligations of the United States of America for the payment of
which the full faith and credit of the United States of America is pledged.

Section 8.2.                                   Legal
Defeasance and Covenant Defeasance.

(1)                                  The
Company may, at its option and at any time, elect to have either paragraph (b) or
(c) below be applied to all outstanding 5 Year Notes upon compliance with
the conditions set forth in Section 8.3.

(2)                                  Upon
the Company’s exercise under Section 8.2(a) hereof of the option
applicable to this Section 8.2(b), the Company shall, subject to the
satisfaction of the conditions set forth in Section 83, be deemed to have
been discharged from their obligations with respect to all outstanding 5 Year
Notes 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 Debt represented by the outstanding 5 Year Notes, which shall
thereafter be deemed to be “outstanding” only for the purposes of Section 8.4
hereof and the other Sections of this Indenture referred to in (i) and (ii) below,
and to have satisfied all its other obligations under such 5 Year Notes 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 5 Year Notes to receive, solely from the trust
fund described in Section 8.4 hereof, and as more fully set forth in such Section 8.4,
payments in respect of the principal of and interest on such 5 Year Notes when
such payments are due;

(B)                                the
Company’s obligations with respect to such 5 Year Notes under Article 2
and Section 4.1 hereof;

(C)                                the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s obligations in connection therewith; and

(D)                               the
provisions of this Article 8 applicable to Legal Defeasance.

Subject to compliance with this Article 8, the Company may exercise
its option under this Section 8.2(b) notwithstanding the prior
exercise of its option under Section 8.2(c) hereof.

(3)                                  Upon
the Company’s exercise under paragraph (a) hereof of the option applicable
to this paragraph (c), the Company shall, subject to the satisfaction of the
conditions set forth in Section 8.3 hereof, be released 

 20
 

 

 

from their respective obligations under the
covenants contained in Sections 4.2 and 4.4 hereof with respect to the
outstanding 5 Year Notes on and after the date the conditions set forth in Section 8.3
are satisfied (hereinafter, “Covenant
Defeasance”), and the 5 Year 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 5 Year Notes shall not be deemed outstanding for
accounting purposes). For this purpose, Covenant Defeasance means that, with
respect to the outstanding 5 Year Notes, 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 an Event of Default under Section 6.1
hereof, but, except as specified above, the remainder of this Indenture and
such 5 Year Notes shall be unaffected thereby. In addition, upon the Company’s
exercise under paragraph (a) hereof of the option applicable to this
paragraph (c), subject to the satisfaction of the conditions set forth in Section 8.3
hereof, clause (3) of Section 6.1 hereof shall not constitute an
Event of Default.

Section 8.3.                                   Conditions
to Legal Defeasance or Covenant Defeasance.

The following shall be the conditions to the application of either Section 8.2(b) or
8.2(c) hereof to the outstanding 5 Year Notes:

(a)                                  the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders, money or U.S. Government Obligations, or a combination thereof, in
such amounts as will be sufficient (without reinvestment), in the opinion of a
nationally recognized firm of independent public accountants selected by the
Company, to pay the principal and interest on the 5 Year Notes on the stated
date for payment or on the redemption date;

(b)                                 in
the case of Legal Defeasance, the Company shall have delivered to the Trustee
an Opinion of Counsel in the United States confirming that:

(i)                                     the
Company has received from, or there has been published by the Internal Revenue
Service, a ruling, or

(ii)                                  since
the date of 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, the Holders will
not recognize income, gain or loss for U.S. federal income tax purposes as a 

 21
 

 

 

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 Covenant Defeasance, the Company shall have delivered to the
Trustee an Opinion of Counsel in the United States reasonably acceptable to the
Trustee confirming that the Holders 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 shall have occurred and be continuing on the date of such deposit;

(e)                                  the
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a Default under, this Indenture or a default under
any other material agreement or instrument 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 Officers’ Certificate stating
that the deposit was not made by it with the intent of preferring the Holders
over any other creditors of the Company or with the intent of defeating,
hindering, delaying or defrauding any other of its creditors; and

(g)                                 the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that the conditions provided for in clauses (1) through
(6) of this Section 8.3 (in the case of the Officers’ Certificate),
as applicable, and clauses (2), if applicable, and/or (3) and (5) of
this Section 8.3 (in the case of the Opinion of Counsel) have been
complied with.

Section 8.4.                                   Application
of Trust Money.

The Trustee shall hold in trust money or U.S. Government Obligations
deposited with it pursuant to Section 8.1. It shall apply the deposited
money and the money from U.S. Government Obligations through the Paying Agent
and in accordance with this Indenture to the payment of principal and interest
on the 5 Year Notes. Money and 5 Year Notes so held in trust are not subject to
Article 10.

Section 8.5.                                   Repayment
to the Company.

The Trustee and the Paying Agent shall promptly pay to the Company upon
request any money or 5 Year Notes held by them at any time in excess of amounts
required to be so held hereunder.

 22
 

 

 

The Trustee and the Paying Agent shall pay to the Company upon request
any money held by them for the payment of principal and interest that remains
unclaimed for two years. After payment to the Company, Certificateholders
entitled to the money must look to the Company for payment as general creditors
unless an applicable abandoned property law designates another person.

ARTICLE 9

AMENDMENTS

Section 9.1.                                   Without
Consent of Holders.

The Company and the Trustee may amend this Indenture or the 5 Year
Notes without the consent of the Holders of the 5 Year Notes by Company Order:

(a)                                  to
cure any ambiguity, defect or inconsistency;

(b)                                 to
comply with Section 5.1;

(c)                                  to
provide for uncertified 5 Year Notes in addition to certificated 5 Year Notes;

(d)                                 to
increase the aggregate principal amount of 5 Year Notes which may be delivered
under this Indenture;

(e)                                  to
make any change that does not adversely affect the legal rights hereunder of
the Holders of the 5 Year Notes; or

(f)                                    to
comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture with the TIA.

Section 9.2.                                   With
Consent of Holders.

The Company and the Trustee may amend this Indenture or the 5 Year
Notes with the written consent of the Holders of at least a majority in
principal amount of the then outstanding 5 Year Notes. However, without the
consent of each Certificateholder affected, an amendment under this Section may
not:

(a)                                  reduce
the amount of 5 Year Notes whose Holders must consent to an amendment;

(b)                                 reduce
the principal of or change the demand payment nature of any 5 Year Note;

(c)                                  make
any 5 Year Note payable in money other than that stated in such 5 Year Note;

(d)                                 make
any change in Section 6.4, Section 6.7 or Section 9.2(2); or

 

 23

 

(e)                                  make
any change in Article 10 that adversely affects the rights of any
Certificateholder.

An amendment under this Section may not make any change that
adversely affects the rights under Article 10 of any holder of an issue of
Senior Debt unless the holders of the issue pursuant to its terms consent to
the change or the change is otherwise permissible.

After an amendment under this Section becomes effective, the
Company shall mail to the Holders of the 5 Year Notes affected by such
amendment a notice briefly describing the amendment.

Section 9.3.                                   Compliance
with Trust Indenture Act.

Every amendment to this Indenture or the 5 Year Notes shall be set
forth in a supplemental indenture that complies with the TIA as then in effect.

Section 9.4.                                   Revocation
and Effect of Consents.

Until an amendment or waiver becomes effective, a consent to it by a
Holder of a 5 Year Note is a continuing consent by the Holder and every
subsequent Holder of a 5 Year Note or portion of a 5 Year Note that evidences
the same debt as the consenting Holder’s 5 Year Note, even if notification of
the consent is not made on any 5 Year Note. However, any such Holder or
subsequent Holder may revoke the consent as to his or her 5 Year Note or
portion of a 5 Year 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 of the 5 Year Notes.

Section 9.5.                                   Notation
on or Exchange of 5 Year Notes.

The Trustee may place an appropriate notation about an amendment or
waiver on any 5 Year Note thereafter authenticated. The Company in exchange for
all 5 Year Notes may issue and the Trustee shall authenticate new 5 Year Notes
that reflect the amendment or waiver.

Section 9.6.                                   Trustee
Protected.

The Trustee shall sign all supplemental indentures and shall be fully
protected in doing so, except that the Trustee need not sign any supplemental
indenture that adversely affects its rights. The Trustee shall be entitled to
receive, and shall be fully protected in relying on, an Opinion of Counsel and
an Officers’ Certificate, which shall be provided at the expense of the
Company.

 24
 

 

 

ARTICLE 10

SUBORDINATION

Section 10.1.                             Agreement
to Subordinate.

The Company agrees, and each Certificateholder by accepting a 5 Year
Note agrees, that the indebtedness evidenced by the 5 Year Note is subordinated
in right of payment, to the extent and in the manner provided in this Article,
to the prior payment in full of all Senior Debt, and that the subordination is
for the benefit of the holders of Senior Debt.

Section 10.2.                             Certain
Definitions.

“Debt” means any
indebtedness, contingent or otherwise, in respect of borrowed money (whether or
not the recourse of the lender is to the whole of the assets of the Company or
only to a portion thereof), or evidenced by bonds, notes, debentures or similar
instruments or letters of credit, or representing the balance deferred and
unpaid on the purchase price of any property or interest therein, except any
such balance that constitutes a trade payable, and shall include any guarantee
of any indebtedness described above.

“Representative” means the
indenture trustee or other trustee, agent or representative for an issue of
Senior Debt.

“Senior Debt” means all
Debt (present or future) created, incurred, assumed or guaranteed by the
Company (and all renewals, extensions or refundings thereof), except such Debt
that by its terms expressly provides that such Debt is not senior or superior
in right of payment to the 5 Year Notes. Senior Debt shall include without
limitation (i) the guarantee by the Company of any Debt of any other
person (including, without limitation, subordinated Debt of another person),
unless such Debt is expressly subordinated to any other Debt of the Company,
and (ii) all Debt of the Company currently maintained with banks and
finance companies and any line of credit to be obtained by the Company in the
future. Notwithstanding anything herein to the contrary, Senior Debt shall not
include Debt of the Company to any of its subsidiaries or under the 5 Year
Notes or Debentures.

Section 10.3.                             Liquidation;
Dissolution; Bankruptcy.

Upon any distribution to creditors of the Company in a liquidation or
dissolution of the Company or in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Company or its property:

(a)                                  holders
of Senior Debt shall be entitled to receive payment in full in cash of the
principal and interest (including interest accruing after the commencement of
any such proceeding) to the date of payment, on the Senior Debt before
Certificateholders shall be entitled to receive any payment of principal and
interest on 5 Year Notes; and

(b)                                 until
the Senior Debt is paid in full in cash, any distribution to which
Certificateholders would be entitled but for this Article shall be made to
holders of Senior Debt as their interest may appear, except that Holders of 

 25
 

 

 

5 Year Notes may receive 5 Year
Notes that are subordinated to Senior Debt to at least the same extent as such
5 Year Notes.

Section 10.4.                             Default
on Senior Debt.

Upon the maturity of any Senior Debt by lapse of time, acceleration or
otherwise, all such Senior Debt shall first be paid in full, or such payment
duly provided for in cash or in a manner satisfactory to the holders of such
Senior Debt, before any payment is made by the Company or any person acting on
behalf of the Company on account of the principal and interest on the 5 Year
Notes.

The Company may not pay principal and interest on the 5 Year Notes and
may not acquire 5 Year Notes for cash or property other than capital stock of
the Company if:

(a)                                  a
default on Senior Debt occurs and is continuing that permits holders of such
Senior Debt to accelerate its maturity, and

(b)                                 the
default is the subject of judicial proceedings or the Company receives a notice
of the default from a person who may give it pursuant to Section 10.12. If
the Company receives any such notice, a similar notice received within nine (9) months
thereafter relating to the same default on the same issue of Senior Debt shall
not be effective for purposes of this Section.

The Company may resume payments on the 5 Year Notes and may acquire
them when:

(c)                                  the
default is cured or waived, or

(d)                                 one
hundred twenty (120) days pass after the notice is given if the default is not
the subject of judicial proceedings, if this Article otherwise permits the
payment or acquisition at that time.

Section 10.5.                             Acceleration
of 5 Year Notes.

If payment of the 5 Year Notes is accelerated because of an Event of
Default, the Company shall promptly notify holders of Senior Debt of the
acceleration. The Company may pay Holders of the 5 Year Notes when one hundred
twenty (120) days pass after the acceleration occurs if this Article permits
the payment at that time.

Section 10.6.                             When
Distribution Must Be Paid Over.

In the event that, notwithstanding the provisions of Section 10.4,
the Company shall make any payment to the Trustee on account of the principal
and interest on the 5 Year Notes, two (2) business days after the
happening of a default in payment of the principal or interest on Senior Debt,
or two (2) business days after receipt by the Company and the Trustee of
written notice as provided in Sections 

 26
 

 

 

10.4 and 10.12 of an Event of Default or an event which, with the
passage of time or the giving of notice or both, would constitute an Event of
Default with respect to any Senior Debt, then, unless and until such Default or
Event of Default shall have been cured or waived or shall have ceased to exist,
such payment shall be held by the Trustee, in trust for the benefit of, and
shall be paid forthwith over and delivered to, the holders of Senior Debt (pro
rata as to each of such holders on the basis of the respective amounts of Senior
Debt held by them) or their representative or the trustee under the indenture
or other agreement (if any) pursuant to which Senior Debt may have been issued,
as their respective interests may appear, for application to the payment of all
Senior Debt remaining unpaid to the extent necessary to pay all Senior Debt in
full in accordance with its terms, after giving effect to any concurrent
payment or distribution to or for the holders of Senior Debt.

If a distribution is made to the Holders of 5 Year Notes that because
of this Article should not have been made to them, the Holders who receive
the distribution shall hold it in trust for holders of Senior Debt and pay it
over to them as their interests may appear.

Section 10.7.                             Notice
by Company.

The Company shall promptly notify the Trustee and the Paying Agent of
any facts known to the Company that would cause a payment of principal and
interest on the 5 Year Notes to violate this Article, but failure to give such
notice shall not affect the subordination of the 5 Year Notes to the Senior
Debt provided in this Article. Nothing in this Article 10 shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 6.7.

Section 10.8.                             Subrogation.

After all Senior Debt is paid in full and until the 5 Year Notes are
paid in full, Holders of the then outstanding 5 Year Notes shall be subrogated
to the rights of holders of Senior Debt to receive distributions applicable to
Senior Debt to the extent distributions otherwise payable to such Holders have
been applied to the payment of Senior Debt. A distribution made under this Article to
holders of Senior Debt which otherwise would have been made to
Certificateholders is not, as between the Company and Certificateholders, a
payment by the Company on Senior Debt.

Section 10.9.                             Relative
Rights.

This Article defines the relative rights of Certificateholders and
holders of Senior Debt. Nothing said in this indenture shall:

(1)                                  impair,
as between the Company and Certificateholders, the obligation of the Company,
which is absolute and unconditional, to pay principal of and interest on the 5
Year Notes in accordance with their terms;

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(2)                                  affect
the relative rights of Certificateholders and creditors of the Company other
than holders of Senior Debt; or

(3)                                  prevent
the Trustee or any Certificateholder from exercising its available remedies
upon a Default or Event of Default, subject to the rights of holders of Senior
Debt to receive distributions otherwise payable to Certificateholders.

If the Company fails because of this Article to pay principal and
interest on a 5 Year Note on the due date, the failure is still a Default or
Event of Default.

Section 10.10.                       Subordination
may not be Impaired by Company.

No right of any holder of Senior Debt to enforce the subordination of
the indebtedness evidenced by the 5 Year Notes shall be impaired by any act or
failure to act by the Company or by its failure to comply with this Indenture.

Section 10.11.                       Distribution
or Notice to Representative.

Whenever a distribution is to be made or a notice given to holders of
Senior Debt, the distribution may be made and the notice given to their
Representative.

Section 10.12.                       Rights
of Trustee and Paying Agent.

The Trustee or Paying Agent may continue to make payments on the 5 Year
Notes until it receives notice of facts that would cause a payment of principal
and interest on the 5 Year Notes to violate this Article. Only the Company, a
Representative or a holder of an issue of Senior Debt that has no
Representative may give the notice.

The Trustee in its individual or any other capacity may hold Senior
Debt with same rights it would have if it were not Trustee. Any Agent may do
the same with like rights.

Section 10.13.                       Trust
Moneys Not Subordinated.

Notwithstanding anything contained herein to the contrary, payments
from money or the proceeds of U.S. Government Obligations held in trust under Article 8
by the Trustee for the payment of principal of and interest on the 5 Year Notes
shall not be subordinated to the prior payment of any Senior Debt or subject to
the restrictions set forth in this Article 10, and none of the Holders of
the 5 Year Notes shall be obligated to pay over any such amount to the Company
or any holder of Senior Debt of the Company or any other creditor of the
Company.

Section 10.14.                       Trustee
Not Fiduciary for Holders of Senior Debt.

The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt and shall not be liable to any such holders if it shall
mistakenly pay 

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over or distribute to Holders of the 5 Year Notes or the Company or any
other person, money or assets to which any holders of Senior Debt of the
Company shall be entitled by virtue of this Article 10 or otherwise.

ARTICLE 11

MISCELLANEOUS

Section 11.1.                             TIA
Controls.

If any provision of this Indenture limits, qualifies, or conflicts with
another provision which is required to be included in this Indenture by the
TIA, the required provision shall control.

Section 11.2.                             Notices.

Any notice by the Company or the Trustee to the other is duly given if
in writing and delivered in person or mailed by first-class mail to the other’s
address stated in Section 11.10. The Company or the Trustee by notice to
the other may designate additional or different addresses for subsequent
notices or communications.

Any notice to a Certificateholder shall be mailed by first-class mail
to the address shown on the register kept by the Registrar or such other name
and addresses as provided to the Trustee pursuant to Sections 313(c)(2) and
(3) of the TIA. Failure to mail a notice or communication to a
Certificateholder or any defect in it shall not affect its sufficiency with
respect to other Certificateholders.

If a notice 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 to Certificateholders, it shall mail a
copy to the Trustee and each Agent at the same time.

All other notices shall be in writing.

Section 11.3.                             Communication
by Holders With Other Holders.

Certificateholders may communicate pursuant to Section 312(b) of
the TIA with other Certificateholders with respect to their rights under this
Indenture or the 5 Year Notes. The Company, the Trustee, the Registrar and
anyone else shall have the protection of Section 312(c) of the TIA.

Section 11.4.                             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:

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(a)                                  an
Officer’s Certificate stating that, in the opinion of the signers, 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 have been complied with.

Section 11.5.                             Statements
Required in Certificate or Opinion.

Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

(a)                                  a
statement that the person making such certificate or opinion has read such
covenant or condition;

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

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

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

Section 11.6.                             Rules by
Trustee and Agents.

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

Section 11.7.                             Legal
Holidays.

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

Section 11.8.                             No
Recourse Against Others.

All liability described in the 5 Year Notes of any director, officer,
employee or stockholder, as such, of the Company and the Trustee is waived and
released.

 30
 

 

 

Section 11.9.                             Duplicate
Originals.

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

Section 11.10.                       Variable
Provisions.

“Officer” means the
President, any Vice President, the Treasurer, the Secretary, any Assistant
Treasurer or any Assistant Secretary of the Company.

The Company initially appoints itself as Paying Agent and Registrar.

The first certificate pursuant to Section 4.3 shall be for the
fiscal year ending on December 31, 2005.

The reporting date for Section 7.6 is May 15 of each year.
The first reporting date is May 15, 2006.

The Company’s address is:

45 San Clemente Drive, Suite B210

Corte Madera, California 94925

The Trustee’s address is:

U.S. Bank National Association

60 Livingston Avenue

St. Paul, Minnesota 55107

Attention:  Corporate Trust
Administration

Section 11.11.                       Governing
Law.

The internal laws of the State of Minnesota shall govern this Indenture
and the 5 Year Notes.

Section 11.12.                       No
Adverse Interpretation of Other Agreements.

This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or a Subsidiary. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

Section 11.13.                       Successors.

All agreements of the Company in this Indenture and the 5 Year Notes
shall bind its successor. All agreements of the Trustee in this Indenture shall
bind its successor.

 31
 

 

 

Section 11.14.                       Severability.

In case any provision in this Indenture or the 5 Year 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.

 32
 

 

 

IN
WITNESS WHEREOF, the parties hereto hereby execute this Indenture as of the
date first written.

	
  

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
  CS FINANCING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy R. Redpath

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  TRUSTEE:

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rick Prokosch

  
	
   

  	
  Its:

  	
  Vice President

  

 

 33

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