Document:

Exhibit 4.1

 

 

SERIES
2006-A SUPPLEMENT

Dated as of April 19, 2006

 

among

 

TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST,

as Issuer

 

TEXTRON
FINANCIAL CORPORATION,

as Servicer

 

and

 

THE
BANK OF NEW YORK,

as Indenture Trustee

 

to

 

AMENDED
AND RESTATED INDENTURE

Dated
as of May 26, 2005

 

between

 

TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST,

as
Issuer

 

and

 

THE
BANK OF NEW YORK,

as
Indenture Trustee

 

 

TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST

SERIES 2006-A NOTES

 

 

 

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  Definitions

  	
  1

  
	
  Section 1.01 

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  	
   

  
	
  Creation of the Series 2006-A Notes

  	
  10

  
	
   

  	
   

  
	
  Section 2.01 

  	
  Designation

  	
  10

  
	
  Section 2.02 

  	
  Form, Execution, Authentication and Delivery of Series 2006-A Notes

  	
  10

  
	
  Section 2.03 

  	
  Regulation S Permanent Book-Entry Notes

  	
  11

  
	
  Section 2.04 

  	
  Class C Notes; Transfer Restrictions

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  	
   

  
	
  Servicing Fee

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 3.01 

  	
  Servicing Compensation

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  	
   

  
	
  Rights of Series 2006-A Noteholders and Allocation and Application of
  Collections

  	
  12

  
	
   

  	
   

  
	
  Section 4.01 

  	
  Daily Allocations; Payments to Residual Interestholder

  	
  12

  
	
  Section 4.02 

  	
  Monthly Interest

  	
  13

  
	
  Section 4.03 

  	
  Determination of Monthly Principal

  	
  14

  
	
  Section 4.04 

  	
  Establishment of Accounts

  	
  15

  
	
  Section 4.05 

  	
  Application of Collections

  	
  15

  
	
  Section 4.06 

  	
  Distributions to Series 2006-A Noteholders

  	
  17

  
	
  Section 4.07 

  	
  Investor Charge-Offs

  	
  17

  
	
  Section 4.08 

  	
  Excess Funding Account

  	
  17

  
	
  Section 4.09 

  	
  Reallocated Principal Collections

  	
  17

  
	
  Section 4.10 

  	
  Excess Non-Principal Collections

  	
  18

  
	
  Section 4.11 

  	
  Excess Principal Collections

  	
  18

  
	
  Section 4.12 

  	
  Reserve Account

  	
  18

  
	
  Section 4.13 

  	
  Investment of Amounts on Deposit in Series Accounts

  	
  19

  
	
  Section 4.14 

  	
  Controlled Accumulation Period

  	
  19

  
	
  Section 4.15 

  	
  Determination of LIBOR

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  	
   

  
	
  Distributions and Reports to Series 2006-A Noteholders

  	
  20

  
	
   

  	
   

  
	
  Section 5.01 

  	
  Distributions

  	
  20

  

 

i

 

	
  Section 5.02 

  	
  Reports and Statements to Series 2006-A Noteholders

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  	
   

  
	
  Early Amortization Events

  	
  21

  
	
   

  	
   

  
	
  Section 6.01 

  	
  Additional Early Amortization Events

  	
  21

  
	
  Section 6.02 

  	
  Recommencement of the Revolving Period

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  	
   

  
	
  Optional Purchase

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  Section 7.01 

  	
  Optional Purchase

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  	
   

  
	
  Final Distributions

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 8.01 

  	
  Acquisition of Notes
  Pursuant to Section 10.1 of the Indenture; Distributions pursuant to
  Section 7.01 of this Series Supplement or Section 5.4 of the
  Indenture

  	
  23

  
	
  Section 8.02 

  	
  Series Termination

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
   

  	
   

  	
   

  
	
  Other Series Provisions

  	
  24

  
	
   

  	
   

  
	
  Section 9.01 

  	
  Additional Covenants

  	
  24

  
	
  Section 9.02 

  	
  Tax Treatment of the Series 2006-A Notes

  	
  24

  
	
  Section 9.03 

  	
  Supplemental Indentures

  	
  24

  
	
  Section 9.04 

  	
  Waiver of Past Defaults

  	
  24

  
	
  Section 9.05 

  	
  Restrictions on Transfer

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
   

  	
   

  	
   

  
	
  Miscellaneous Provisions

  	
  26

  
	
   

  	
   

  
	
  Section 10.01 

  	
  Ratification of Agreement

  	
  26

  
	
  Section 10.02 

  	
  Counterparts

  	
  26

  
	
  Section 10.03 

  	
  GOVERNING LAW

  	
  26

  

 

ii

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A-1

  	
  Form of Class A Note

  	
   

  
	
  Exhibit A-2

  	
  Form of Class B Note

  	
   

  
	
  Exhibit A-3

  	
  Form of Class C Note

  	
   

  
	
  Exhibit B

  	
  [Reserved]

  	
   

  
	
  Exhibit C

  	
  Form of Regulation S
  Certificate

  	
   

  
	
  Exhibit D

  	
  Form of Regulation S
  Book-Entry Note to U.S. Restricted Book-Entry Note Transfer Certificate

  	
   

  
	
  Exhibit E

  	
  Form of U.S. Restricted Book-Entry Note to Regulation S Book-Entry
  Note Transfer Certificate

  	
   

  

 

iii

 

SERIES SUPPLEMENT, dated as
of April 19, 2006 (as amended from time to time, this “Series Supplement”)
between TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST (the “Issuer” or
the “Trust”), TEXTRON FINANCIAL CORPORATION (the “Servicer”) and
THE BANK OF NEW YORK, as Indenture Trustee (as indenture trustee and not in its
individual capacity, the “Indenture Trustee”) to the Amended and
Restated Indenture, dated as of the date hereof, between the Issuer and the
Indenture Trustee (as amended, restated, supplemented or otherwise modified
from time to time, the “Indenture”).

 

Section 2.1 of the
Indenture provides that the Issuer may from time to time issue one or more new
Series of Investor Interests.  The
Principal Terms of any new Series of Investor Interests are to be set forth in
a Series Supplement.  Pursuant to this
Series Supplement, the Issuer and the Indenture Trustee shall create the Series
2006-A Notes and specify the Principal Terms thereof.  The Servicer is acknowledging this Series
Supplement to agree to the terms hereof applicable to the Servicer.  The parties hereto acknowledge that the
Issuer is not a separate entity for tax purposes and that the overall
transaction is being structured so that the Class A Notes and Class B Notes, if
held by Persons other than the Seller, will be characterized as debt for
federal income tax purposes.

 

ARTICLE I

 

Definitions

 

Section 1.01  Definitions.  (a) 
Whenever used in this Series Supplement, the following words and phrases
have the following meanings.

 

“Agreement” means the
Amended and Restated Sale and Servicing Agreement, dated as of May 26, 2005,
among Textron Financial Corporation, as Servicer, Textron Receivables
Corporation III, as Seller, the Indenture Trustee and Textron Financial
Floorplan Master Note Trust, as amended, restated, supplemented or otherwise
modified from time to time.

 

“Allocable Defaulted
Amount” means for any Collection Period, the product of (a) the
average daily Series 2006-A Allocation Percentage for that Collection
Period and (b) the Defaulted Amount for that Collection Period (after
giving effect to any allocation of a portion of the Defaulted Amount to the Residual
Interestholder pursuant to Section 4.2 of the Agreement).

 

“Allocable Miscellaneous
Payments” means, with respect to any day, an amount equal to the product of
(i) the Series 2006-A Allocation Percentage for such day and
(ii) Miscellaneous Payments on such day.

 

“Allocable Non-Principal
Collections” means, with respect to any day, an amount equal to the product
of (i) the Series 2006-A Allocation Percentage for such day and
(ii) the aggregate amount of Non-Principal Collections deposited in
the Collection Account on such day (after giving effect to any allocation of a
portion of Non-Principal Collections to the Residual Interestholder pursuant to
Section 4.2 of the Agreement).

 

“Allocable Principal
Collections” means, with respect to any day, an amount equal to the product
of (i) the Series 2006-A Allocation Percentage for such day and
(ii) the aggregate amount of Principal Collections deposited in the
Collection Account on such day (after giving effect to any allocation of a
portion of Principal Collections to the Residual Interestholder pursuant to
Section 4.2 of the Agreement).

 

“Available Investor Non-Principal
Collections” means, with respect to any Payment Date, the Investor
Non-Principal Collections for the related Collection Period.

 

 

“Available Investor
Principal Collections” means, with respect to any Payment Date, the sum of
the Investor Principal Collections for the related Collection Period and the
amount, if any, of Available Investor Non-Principal Collections and Investment
Proceeds allocated to cover the Investor Defaulted Amount, Investor Dilution
Amount or to reverse Investor Charge-Offs on such Payment Date.

 

“Available Reserve
Account Amount” means, with respect to any Payment Date, an amount equal to
the lesser of (a) the amount on deposit in the Reserve Account (exclusive of
Investment Proceeds on such date and before giving effect to any deposit to, or
withdrawal from, the Reserve Account made or to be made with respect to such
date) and (b) the Required Reserve Account Amount, in each case on such Payment
Date.

 

“Base Rate” means,
with respect to any Determination Date, a fraction (expressed as a percentage
(annualized)), the numerator of which is the sum of (a) the amount of interest
on the Class A Notes and the Class B Notes due on the related Payment Date plus
(b) the Investor Monthly Servicing Fee due on the related Payment Date, and the
denominator of which is the Outstanding Amount of the Series 2006-A Notes as of
the beginning of the related Collection Period.

 

“Calculation Agent”
means the Indenture Trustee or any other Calculation Agent selected by the
Residual Interestholder which is reasonably acceptable to the Indenture
Trustee.

 

“Class A Additional
Interest” has the meaning specified in Section 4.02(a).

 

“Class A Interest Rate”
means, with respect to any Interest Period, LIBOR as determined on the LIBOR
Determination Date plus 0.07% per annum; provided that with respect to the
first Interest Period following the Closing Date, the Class A Interest Rate
shall be 4.98000%.

 

“Class A Interest
Shortfall” has the meaning specified in Section 4.02(a).

 

“Class A Monthly
Interest” has the meaning specified in Section 4.02(a).

 

“Class A Note” has
the meaning specified in Section 2.01(a).

 

“Class A Noteholder”
means any Holder of a Class A Note, and “Class A Noteholders” means the
Holders of the Class A Notes.

 

“Class A Note Principal
Balance” means, on any date of determination, an amount equal to (a)
$574,300,000, minus (b) the aggregate amount of principal payments made to the
Class A Noteholders on or prior to such date.

 

“Class B Additional
Interest” has the meaning specified in Section 4.02(b).

 

“Class B Interest Rate”
means, with respect to any Interest Period, LIBOR as determined on the LIBOR
Determination Date plus 0.24% per annum; provided that with respect to the
first Interest Period following the Closing Date, the Class B Interest Rate
shall be 5.15000%.

 

“Class B Interest
Shortfall” has the meaning specified in Section 4.02(b).

 

“Class B Monthly Interest”
has the meaning specified in Section 4.02(b).

 

“Class B Note” has
the meaning specified in Section 2.01(a).

 

2

 

“Class B Noteholder”
means any Holder of a Class B Note, and “Class B Noteholders” means the
Holders of the Class B Notes.

 

“Class B Note Principal
Balance” means, on any date of determination, an amount equal to (a)
$25,700,000, minus (b) the aggregate amount of principal payments made to the
Class B Noteholders on or prior to such date.

 

“Class C Note” has
the meaning specified in Section 2.01(a).

 

“Class C Noteholder”
means any Holder of a Class C Note, and “Class C Noteholders” means the
Holders of the Class C Notes.

 

“Class C Note Principal
Balance” means, on any date of determination, an amount equal to (a) $41,700,000,
minus (b) the aggregate amount of principal payments made to the Class C
Noteholders on or prior to such date.

 

“Clearstream, Luxembourg”
means Clearstream Banking, société anonyme.

 

“Closing Date” means
April 19, 2006.

 

“Control Investors”
means (i) Class A Noteholders and Class B Noteholders representing at least a
majority of the Outstanding Amount of the Class A Notes and Class B Notes,
voting together, and (ii) from and after the payment in full of the Class A
Notes and the Class B Notes, Class C Noteholders representing at least a
majority of the Outstanding Amount of the Class C Notes.  For purposes of clause (i) above, any Class A
Notes or Class B Notes owned or beneficially owned by the Seller or its
Affiliates will be disregarded and deemed not Outstanding.

 

“Controlled Accumulation
Date” means September 1, 2008, subject to adjustment pursuant to Section
4.14.

 

“Controlled Accumulation
Period” means, unless an Early Amortization Event shall have occurred prior
thereto, the period commencing at the opening of business on the Controlled
Accumulation Date and ending on the earliest to occur of (a) the commencement
of the Early Amortization Period, (b) the Series 2006-A Stated Maturity Date,
and (c) the date on which the Outstanding Amount of the Series 2006-A Notes has
been reduced to zero.

 

“Controlled Accumulation
Period Length” is defined in Section 4.14.

 

“Distribution Compliance
Period” has the meaning specified in Section 2.03.

 

“Early Amortization Event”
means any Early Amortization Event specified in Section 5.17 of the
Indenture, together with any additional Early Amortization Event specified in Section 6.01
of this Series Supplement.

 

“Early Amortization
Period” means a period beginning on the date on which an Early Amortization
Event specified in Section 5.17 of the Indenture or Section 6.01
of this Series Supplement shall have occurred with respect to the Series 2006-A
Notes and terminating on the earliest of: (a) the payment in full of the
outstanding principal amount of and all accrued and unpaid interest on the
Series 2006-A Notes; and (b) the Series 2006-A Stated Maturity
Date.  Notwithstanding anything to the
contrary in this Series Supplement, an Early Amortization Period that commences
before the scheduled end of the

 

3

 

Revolving Period shall be
terminated, and the Revolving Period may recommence, if the Rating Agency
Condition is satisfied and the Control Investors consent thereto.

 

“Enhancement Trigger
Event” means the occurrence of any of the following event(s): (a)(i) on any
Determination Date, the average of the Monthly Payment Rates for the three
preceding Collection Periods is less than 14% for the Determination Dates
falling in February through May, less than 16% for the Determination Date
falling in June, less than 18% for the Determination Dates falling in July
through October or less than 16% for the Determination Dates falling in
November through January or (ii) on any Determination Date, the Portfolio Yield
is less than the sum of the Base Rate plus 1.00% or (b) on any Determination
Date, the average of the Monthly Payment Rates for the three preceding
Collection Periods is less than 13% for the Determination Dates falling in
February through May, less than 15% for the Determination Date falling in June,
less than 17% for the Determination Dates falling in July through October or
less than 15% for the Determination Dates falling in November through January.

 

“Enhancement Trigger
Period” means a period beginning on the date on which an Enhancement
Trigger Event shall have occurred and terminating on the date on which no
Enhancement Trigger Event shall be continuing; provided that if the
Early Amortization Period has commenced during the continuance of an
Enhancement Trigger Period, such Enhancement Trigger Period shall be deemed to
be continuing during the Early Amortization Period.

 

“Euroclear” means
Euroclear Bank S.A./N.V., as operator of the Euroclear System.

 

“Expected Principal
Payment Date” means the Payment Date in April 2009.

 

“Final Payment Date”
means the earlier of (i) the Series 2006-A Stated Maturity Date and
(ii) the first Payment Date on which, after giving effect to all payments
to be made on that Payment Date, the outstanding principal amount of the Series
2006-A Notes will be paid in full.

 

“Fixed Allocation
Percentage” means, with respect to any day, the percentage equivalent
(which percentage shall never exceed 100%) of a fraction, the numerator of
which is the Invested Amount as of the last day of the Revolving Period, and
the denominator of which is the product of the Series 2006-A Allocation
Percentage for the day for which the Fixed Allocation Percentage is being
calculated times the greater of (A) the sum of (x) the Net Pool Balance as
of the most recent Reset Date and (y) the Series 2006-A Excess Funding Amount
at the end of such most recent Reset Date and (B) the sum of the numerators
used to calculate the allocation percentage for all outstanding Series of
Investor Interests as of the date of determination.

 

“Floating Allocation
Percentage” means, with respect to any day, the percentage equivalent
(which percentage shall never exceed 100%) of a fraction, the numerator of
which is the Invested Amount as of the most recent Reset Date and the
denominator of which is the product of the Series 2006-A Allocation
Percentage for the day for which the Floating Allocation Percentage is being
calculated times the greater of (A) the sum of (x) the Net Pool Balance as
of the most recent Reset Date and (y) the Excess Funding Amount at the end of
such most recent Reset Date and (B) the sum of the numerators used to calculate
the allocation percentage for all outstanding Series of Investor Interests as
of the date of determination.

 

“Group One” means
Series 2005-A, Series 2006-A and each other outstanding Series hereafter
specified in the related Series Supplement to be included in Group One.

 

“Indenture” has the
meaning set forth in the recitals to this Series Supplement.

 

4

 

“Indenture Trustee”
has the meaning set forth in the recitals to this Series Supplement.

 

“Initial Invested Amount”
means, with respect to the Series 2006-A Notes, $641,700,000, $574,300,000 of
which is the Initial Invested Amount of the Class A Notes, $25,700,000 of which
is the Initial Invested Amount of the Class B Notes and $41,700,000 of which is
the Initial Invested Amount of the Class C Notes.

 

“Initial Payment Date”
means May 15, 2006.

 

“Initial Purchasers”
means, collectively, Citigroup Global Markets Inc. and Merrill Lynch, Pierce
Fenner & Smith Incorporated.

 

“Interest Period”
means, for any Payment Date, the period from and including the Payment Date
preceding such Payment Date to but excluding such Payment Date (or in the case
of the Initial Payment Date, the period from and including the Closing Date to
but excluding the Initial Payment Date).

 

“Interest Rate”
means, with respect to the Class A Notes, the Class A Interest Rate and with
respect to the Class B Notes, the Class B Interest Rate.

 

“Invested Amount”
means, when used with respect to any date, an amount equal to (a) the
Initial Invested Amount of the Series 2006-A Notes, minus (b) the
amount, without duplication, of principal payments made to Series 2006-A
Noteholders prior to such date, minus (c) the excess, if any, of
the aggregate amount of Investor Charge-Offs prior to such date over
Investor Charge-Offs reimbursed pursuant to Section 4.05
prior to such date, provided that the Invested Amount shall in no event be less
than zero.

 

“Investment Proceeds”
means, with respect to any Determination Date and any Payment Date, an amount
equal to all interest and other investment earnings (net of losses and
investment expenses) on funds held in the Principal Account and the Reserve
Account and the Series 2006-A Allocation Percentage of the interest and
other investment earnings (net of losses and investment expenses) on funds held
in the Collection Account and the Excess Funding Account credited to the
Collection Account pursuant to Section 4.1 of the Agreement.

 

“Investor Charge-Offs”
has the meaning specified in Section 4.07.

 

“Investor Defaulted
Amount” means, with respect to any Payment Date, an amount equal to the
product of (a) the Allocable Defaulted Amount for the related Collection Period
and (b) the average daily Floating Allocation Percentage for the related
Collection Period.

 

“Investor Dilution Amount”
means, with respect to any Payment Date, an amount equal to the average daily
Series 2006-A Allocation Percentage for the related Collection Period of any
Dilution Amount.

 

“Investor Monthly
Servicing Fee” has the meaning specified in Section 3.01.

 

“Investor Non-Principal
Collections” means, with respect to any Deposit Date, an amount equal to
the sum of (a) the product of the Floating Allocation Percentage and Allocable
Non-Principal Collections for such day plus (b) any Allocable Miscellaneous
Payments that are treated as Investor Non-Principal Collections pursuant
to Section 4.01(e).

 

5

 

“Investor Principal
Collections” means, with respect to any Deposit Date, (i) falling in
the Revolving Period, the sum of (a) the product of the Floating
Allocation Percentage and Allocable Principal Collections for such day plus
(b) any Allocable Miscellaneous Payments that are treated as Investor
Principal Collections for such day and (ii) occurring after the last day
of the Revolving Period, the sum of (a) the product of the Fixed
Allocation Percentage and Allocable Principal Collections for such day plus
(b) any Allocable Miscellaneous Payments that are treated as Investor
Principal Collections for such day.

 

“Issuer” has the
meaning set forth in the recitals to this Series Supplement.

 

“LIBOR” means, for
any Interest Period, the London interbank offered rate for one-month United
States dollar deposits determined by The Bank of New York, as Paying Agent, for
each Interest Period in accordance with the provisions of Section 4.15.

 

“LIBOR Determination Date”
means (i) with respect to the first Interest Period, the second London Business
Day prior to the Closing Date, and (ii) with respect to any Interest Period
thereafter, the second London Business Day prior to the commencement of such
Interest Period.

 

“London Business Day”
means any day on which dealings in deposits in United States dollars are
transacted in the London interbank market.

 

“Monthly Payment Rate”
means, for any Collection Period, the percentage derived from dividing (a)
Principal Collections for such Collection Period minus Principal Collections
allocated to the Residual Interestholder pursuant to Sections 4.2(f), (g) and
(h) of the Agreement by (b) the beginning Net Pool Balance for such Collection
Period.

 

“Monthly Principal”
has the meaning specified in Section 4.03.

 

“Monthly Principal
Reallocation Amount” means, for any Collection Period, an amount equal to
the sum of:

 

(A) the lesser of (i) the
excess of (x) the amount needed to make the payments described in Sections
4.05(a)(i) and (ii) over (y) the amount of Non-Principal Collections,
Investment Proceeds and amounts withdrawn from the Reserve Account that are
available to cover the payments described in Sections 4.05(a)(i) and (ii),
and (ii) the excess, if any, of (x) $67,400,000 over (y) the amount of
unreimbursed Investor Charge-Offs after giving effect to Investor Charge-Offs
for the related Collection Period; and

 

(B) the lesser of (i) the
excess of (x) the amount needed to make the payments described in Section
4.05(a)(iii) over (y) the amount of Non-Principal Collections, Investment
Proceeds and amounts withdrawn from the Reserve Account that are available to
cover the payments described in Section 4.05(a)(iii) and (ii) the
excess, if any, of (x) $41,700,000 over (y) the amount of unreimbursed Investor
Charge-Offs after giving effect to Investor Charge-Offs for the related
Collection Period and after giving effect to the reallocation of Principal
Collections to make the payments described in Sections 4.05(a)(i) and (ii)
in respect of the then-current Payment Date.

 

“Monthly Servicing Fee”
has the meaning specified in Section 3.2 of the Agreement.

 

“Note Purchase Agreement”
means the Purchase Agreement, dated as of April 11, 2006, by and among the
Issuer, TFC and the Initial Purchasers.

 

6

 

“Offering Memorandum”
means the confidential Offering Memorandum dated April 11, 2006 (including any
exhibits, amendments or supplements thereto) relating to the Series 2006-A
Notes.

 

“Payment Date Statement”
has the meaning specified in Section 5.02.

 

“Portfolio Yield”
means, with respect to any Determination Date, a fraction (expressed as a
percentage (annualized)), the numerator of which is an amount equal to
Allocable Non-Principal Collections for the related Collection Period, and the
denominator of which is the Invested Amount less amounts on deposit in the
Principal Account and the Series 2006-A Excess Funding Amount, in each case as
of the beginning of the related Collection Period.

 

“Principal Account”
means the account designated as such, established and maintained pursuant to Section
4.04.

 

“Qualified Institutional
Buyer” has the meaning ascribed to that term in Rule 144A.

 

“Reallocated Principal
Collections” means, for any Payment Date, Investor Principal Collections
applied in accordance with Section 4.09 in an amount not to exceed the
Monthly Principal Reallocation Amount for the related Collection Period.

 

“Record Date” means,
with respect to any Payment Date, the close of business on the last day of the
Collection Period preceding such Payment Date.

 

“Redemption Price”
means, with respect to any Payment Date, the sum of (a) the aggregate
Outstanding Amount of the Series 2006-A Notes to be redeemed on the
Determination Date preceding the Payment Date on which such redemption is to be
made, (b) accrued and unpaid interest on the unpaid balance of the Series
2006-A Notes (calculated on the basis of the Outstanding Amount of each Class
of the Series 2006-A Notes at the Interest Rate as in effect during the
applicable Interest Periods through the day preceding such Payment Date), (c)
without duplication with respect to any amounts due under clause (b) of this
definition, any Class A Additional Interest with respect to the Class A Notes
to be repurchased and any Class B Additional Interest with respect to the Class
B Notes to be repurchased, (d) the aggregate amount of unreimbursed Investor
Charge-Offs and Investor Defaulted Amounts with respect to the Series 2006-A
Notes to be redeemed and (e) accrued and unpaid Investor Monthly Servicing
Fees.

 

“Regulation S” means
Regulation S under the Securities Act.

 

“Regulation S Book-Entry
Note” means, collectively, the Regulation S Permanent Book-Entry Note and
the Regulation S Temporary Book-Entry Note.

 

“Regulation S Permanent
Book-Entry Note” has the meaning specified in Section 2.03.

 

“Regulation S Temporary
Book-Entry Note” has the meaning specified in Section 2.02(e).

 

“Required Reserve Account
Amount” means, for any day, an amount equal to (a) the product of (i) the
Required Reserve Account Percentage and (ii) the Initial Invested Amount or (b)
any other amount designated by the Seller; provided, however, that if such
designation is of a lesser amount, the Seller shall (i) provide the Indenture
Trustee with evidence that the Rating Agency Condition shall have been
satisfied and (ii) deliver to the Indenture Trustee a certificate of an
Authorized Officer to the effect that, based on the facts known to such officer
at such time, in the reasonable belief of the Seller, such designation will not
cause an Early Amortization Event to occur with respect to Series 2006-A.

 

7

 

“Required Reserve Account
Percentage” means (i) 0% so long as an Enhancement Trigger Period has not
occurred and (ii) if an Enhancement Trigger Event has occurred, the Required
Reserve Account Percentage shall be the aggregate of (i) 0.75%, if an
Enhancement Trigger Event under clause (a)(i) of the definition thereof has
occurred, (ii) 1.00%, if an Enhancement Trigger Event under clause (a)(ii) of
the definition thereof has occurred, plus (iii) 1.00%, if an Enhancement
Trigger Event under clause (b) of the definition thereof has occurred.

 

“Required Residual
Percentage” means, with respect to Series 2006-A, 103%.

 

“Reserve Account”
means the account designated as such, established and maintained pursuant to Section
4.04.

 

“Reserve Account
Deficiency” means the excess, if any, of the Required Reserve Account
Amount over the Available Reserve Account Amount.

 

“Reset Date” means
(a) the last day of a Collection Period, (b) any Addition Date,
(c) any date of issuance of an additional Series of Investor Interests
(including the Closing Date) or any date of issuance of additional Investor
Interests of any outstanding Series occurs or (d) any Removal Commencement
Date.

 

“Residual Interestholder”
means the holder of the Residual Interest.

 

“Residual
Interestholder’s Percentage” means, with respect to any day, a percentage
(which percentage shall never be less than 0% nor more than 100%) equal to 100%
minus (a) the Floating Allocation Percentage on such day, when used with
respect to Allocable Non-Principal Collections and Allocable Defaulted
Amounts and with respect to Allocable Principal Collections during the
Revolving Period, and (b) the Fixed Allocation Percentage on such day,
when used with respect to Allocable Principal Collections during the Controlled
Accumulation Period or an Early Amortization Period.

 

“Revolving Period”
means the period beginning on the Closing Date and ending at the close of business
on the day immediately preceding the earlier of the day the Controlled
Accumulation Period commences or the day the Early Amortization Period
commences.

 

“Rule 144A” means
Rule 144A under the Securities Act.

 

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

 

“Series 2005-A”
means the Series 2005-A Notes, the Principal Terms of which are specified in
the Series Supplement dated as of May 26, 2005, by and among the Issuer, the
Servicer and the Indenture Trustee.

 

“Series 2006-A”
means the Series 2006-A Notes, the Principal Terms of which are specified in
this Series Supplement.

 

“Series 2006-A
Allocation Percentage” means the Series Allocation Percentage with respect
to Series 2006-A.

 

“Series 2006-A
Excess Funding Amount” means, with respect to the Series 2006-A Notes, for
any day, the product of (a) the Series 2006-A Allocation Percentage
on such day and (b) the amount on deposit in the Excess Funding Account (other
than Investment Proceeds) on such day.

 

8

 

“Series 2006-A Excess
Non-Principal Collections” means Excess Non-Principal Collections allocated
from other Series in Group One to Series 2006-A pursuant to Section 4.3 of the
Sale and Servicing Agreement.

 

“Series 2006-A Noteholder”
means the Person in whose name a Series 2006-A Note is registered in the Note
Register.

 

“Series 2006-A Notes”
has the meaning specified in Section 2.01(a).

 

“Series 2006-A
Non-Principal Shortfall” means, with respect to any Payment Date, an amount
equal to the excess, if any, of (a) the full amount required to be paid,
without duplication, pursuant to Sections 4.05(a)(i) through (vii)
on such Payment Date over (b) the Available Investor Non-Principal
Collections (excluding any portion thereof attributable to Excess Non-Principal
Collections) and Investment Proceeds with respect to such Payment Date.

 

“Series 2006-A
Principal Shortfall” means, with respect to any Payment Date prior to the
Expected Principal Payment Date, an amount equal to the excess, if any, of (a)
the full amount required to be paid, without duplication, pursuant to Sections 4.05(a)(i)
through (iii) on such Payment Date over (b) the Available
Investor Principal Collections with respect to such Payment Date (excluding any
portion thereof attributable to Reallocated Principal Collections) and, with
respect to any Payment Date thereafter, the Outstanding Amount of the Series
2006-A Notes.

 

“Series 2006-A
Stated Maturity Date” means the Payment Date in April 2011.

 

“Series Supplement”
has the meaning set forth in the recitals to this Series Supplement.

 

“Servicer” has the
meaning set forth in the recitals to this Series Supplement.

 

“Termination Date”
means, with respect to Series 2006-A, the day after the Payment Date falling in
the 2nd calendar month after the Series 2006-A Stated Maturity Date.

 

“Transferable Notes”
has the meaning specified in Section 9.05.

 

“Trust” has the
meaning set forth in the recitals to this Series Supplement.

 

“U.S. Person” has the
meaning specified in Regulation S.

 

“U.S. Resale Restriction
Termination Date” means (i) the date which is two years (or such shorter
period of time as permitted by Rule 144(k) under the Securities Act) after the
later of the date of original issue of the Class A Notes and Class B Notes and
the last date on which the Issuer or any affiliate of the Seller was the owner
of such Class A Notes or Class B Notes (or any predecessor thereto) or (ii)
such later date, if any, as may be required by any subsequent change in
applicable law.

 

“U.S. Restricted Book-Entry
Note” has the meaning specified in Section 2.02(d).

 

(b)           Notwithstanding anything to the
contrary in this Series Supplement or the other Documents, the term “Rating
Agency” whenever used in this Series Supplement or such other Basic
Documents shall mean with respect to the assignment of a rating, Moody’s and
Standard & Poor’s.  As used in this
Series Supplement and the other Basic Documents with respect to
Series 2006-A, “highest investment category” means (i) in the case of
Standard & Poor’s, A-1+ or AAA, as applicable, and (ii) in the case of
Moody’s, P-1 or Aaa, as applicable.

 

9

 

(c)           All capitalized terms used herein and
not otherwise defined herein have the meanings ascribed to them in the Agreement.  The definitions in this Section 1.01
are applicable to the singular as well as to the plural forms of such terms and
to the masculine as well as to the feminine and neuter genders of such terms.

 

(d)           The words “hereof”, “herein” and
“hereunder” and words of similar import when used in this Series Supplement
shall refer to this Series Supplement as a whole and not to any particular
provision of this Series Supplement; references to any Article, Section or
Exhibit are references to Articles, Sections and Exhibits in or to this Series
Supplement unless otherwise specified; and the term “including” means
“including without limitation”.

 

ARTICLE II

 

Creation of the Series
2006-A Notes

 

Section 2.01  Designation.  (a) 
There is hereby created a Series of Investor Interests to be issued
pursuant to the Indenture and this Series Supplement and shall be comprised of
three classes:  the Class A Floating
Rate Term Notes, Series 2006-A (the “Class A Notes”); the
Class B Floating Rate Term Notes, Series 2006-A (the “Class B
Notes”); and the Class C Principal Only Term Notes, Series 2006-A
(the “Class C Notes”; and together with the Class A Notes and
the Class B Notes, the “Series 2006-A Notes”).

 

(b)           If any term or provision contained
herein shall conflict with or be inconsistent with any term or provision
contained in the Indenture, the terms and provisions of this Series Supplement
shall govern.

 

(c)           As described in Section 2.15 of
the Indenture, the Series 2006-A Notes shall be Unregistered Interests.

 

(d)           Series 2006-A shall be included in
Group One and shall be a Principal Sharing Series.  Series 2006-A shall be an Excess Allocation
Series with respect to Group One only. Series 2006-A shall not be subordinated
to any other Series.

 

Section 2.02  Form,
Execution, Authentication and Delivery of Series 2006-A Notes.

 

(a)           The Issuer shall execute and issue
and the Indenture Trustee shall authenticate and deliver the Class A Note with
a principal amount of $574,300,000, the Class B Note with a principal amount of
$25,700,000, and the Class C Note with a principal amount of $41,700,000.  The terms of the Series 2006-A Notes set
forth on the Exhibits hereto are part of the terms of this Series Supplement
and the Indenture.

 

(b)           Each Class A Note and Class B Note
shall be issued in minimum denominations of $100,000 and integral multiples of
$1,000 in excess thereof and the Class C Notes shall be issued in minimum
denominations of $1,000.

 

(c)           The Class A Notes and the Class B
Notes shall be Book-Entry Interests, and shall be issued to Cede & Co., as
nominee of the Depository, pursuant to a Depository Agreement.  The Depository shall be the initial “Clearing
Agency” for purposes of the Indenture.

 

(d)           The Class A Notes and the Class B
Notes that are not sold in reliance on Regulation S shall be offered and sold
in reliance on the exemption from registration under Rule 144A to Qualified
Institutional Buyers or “QIBs”, and to subsequent transferees who are also

 

10

 

QIBs and, except as set forth in Section 2.12 of the
Indenture, shall be issued in the form of one or more permanent Book-Entry
Interests in definitive, fully registered form without interest coupons with
the applicable legends set forth in Exhibits A-1 and A-2 hereto,
respectively, added to the form of such Book-Entry Interests (each, a “U.S.
Restricted Book-Entry Note”), which shall be registered in the name of the
nominee of the Clearing Agency and deposited with Indenture Trustee, as
custodian for the Depository, duly executed by the Issuer and authenticated by
the Indenture Trustee as hereinafter provided. 
The aggregate principal amount of the U.S. Restricted Book-Entry Notes
may from time to time be increased or decreased by adjustments made on the
records of Indenture Trustee or the Depository or its nominee, as the case may
be, as hereinafter provided.

 

(e)           The Class A Notes and the Class B
Notes sold in offshore transactions in reliance on Regulation S, except as set
forth in Section 2.12 of the Indenture, shall be represented initially by one
or more temporary Book-Entry Interests in definitive, fully registered form
without interest coupons with the applicable legends set forth in Exhibits
A-1 and A-2 hereto, respectively, added to the form of such
Book-Entry Interests (each, a “Regulation S Temporary Book-Entry Note”)
to be held by the Clearing Agency and registered in the name of a nominee of
the Clearing Agency or its custodian for the respective accounts of Euroclear
and Clearstream, Luxembourg, duly executed by the Issuer and authenticated by
the Indenture Trustee as hereinafter provided. 
The aggregate principal amount of the Regulation S Temporary Book-Entry
Notes may from time to time be increased or decreased by adjustments made on
the records of Indenture Trustee or the Clearing Agency or its nominee, as the
case may be, as hereinafter provided.

 

Section 2.03  Regulation
S Permanent Book-Entry Notes.

 

Any interest in a Class A
Note or Class B Note evidenced by a Regulation S Temporary Book-Entry Note is
exchangeable for an interest in a permanent Book-Entry Interest in fully
registered, global form, without interest coupons (a “Regulation S Permanent
Book-Entry Note”), upon the later of (i) the expiration of the Distribution
Compliance Period and (ii) the furnishing of a certificate, substantially in
the form of Exhibit C attached hereto, certifying that the beneficial
owner of the Temporary Regulation S Book-Entry Note is a not a U.S. person or,
if such beneficial owner is a U.S. person, that it is a QIB.

 

The “Distribution
Compliance Period” will begin on the Closing Date and end 40 days later.

 

Until the later of the
expiration of the Distribution Compliance Period and the provision of the
certificate in the form of Exhibit C hereto, beneficial interests in a
Regulation S Temporary Book-Entry Note may be held only through Euroclear or
Clearstream, Luxembourg (as indirect participants in the Depository) or another
agent member of Euroclear or Clearstream, Luxembourg acting for or on behalf of
them.

 

Section 2.04  Class
C Notes; Transfer Restrictions.  The
Class C Notes shall be represented by notes in substantially the form set forth
in Exhibit A-3 hereto with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by the
Indenture.  Neither the Class C Notes nor
any interest therein may be sold, pledged, participated, transferred, disposed
of or otherwise alienated (each, a “Transfer”), and the Registrar will
not recognize any Transfer or purported Transfer of a Class C Note, unless
prior to such Transfer or purported Transfer the Indenture Trustee and the
Registrar have received an Opinion of Counsel to the effect that, for federal
income tax purposes, such Transfer will not cause the Issuer to be characterized
as an association or publicly traded partnership as a corporation.  Any 

 

11

 

Transfer or purported Transfer of a Class C
Note in violation of the preceding sentence shall be void ab initio and of no effect.

 

ARTICLE III

 

Servicing Fee

 

Section 3.01  Servicing
Compensation.  The Monthly Servicing
Fee with respect to Series 2006-A (the “Investor Monthly Servicing Fee”)
shall be payable to the Servicer, in arrears, on each Payment Date in respect
of any Collection Period (or portion thereof) occurring prior to the earlier of
the first Payment Date following the Series 2006-A Stated Maturity Date
and the first Payment Date on which the Invested Amount is permanently reduced
to zero, in an amount equal to the product of (a) the Servicing Fee Rate,
(b) the Invested Amount as of the last day of such Collection Period and (c) a
fraction, the numerator of which is the actual number of days elapsed in the
related Collection Period and the denominator of which is 360; provided,
however, that with respect to the first Payment Date, the Investor
Monthly Servicing Fee shall be equal to the product of (a) the Servicing Fee
Rate, (b) Invested Amount as of the Closing Date and (c) a fraction, the
numerator of which is the number of days from and including the Closing Date to
and including the last day of the Collection Period immediately preceding the
first Payment Date occurs and the denominator of which is 360.  The Investor Monthly Servicing Fee shall be
payable to the Servicer solely to the extent amounts are available for
distribution therefor in accordance with the terms of this Series Supplement.

 

ARTICLE IV

 

Rights of Series 2006-A
Noteholders and

Allocation and Application of Collections

 

Section 4.01  Daily
Allocations; Payments to Residual Interestholder.  On each Deposit Date, Non-Principal
Collections, Principal Collections and Miscellaneous Payments will be allocated
to Series 2006-A based on the Series 2006-A Allocation Percentage and
shall be further allocated and distributed as set forth in this Section 4.01.

 

(a)           Non-Principal Collections.  On each Deposit Date, the Servicer shall
allocate to Series 2006-A and retain in the Collection Account (until
applied as provided herein) an amount equal to the Floating Allocation
Percentage then in effect of Allocable Non-Principal Collections
deposited in the Collection Account for such Deposit Date.

 

(b)           Principal Collections — Revolving
Period.  On each Deposit Date during
the Revolving Period, the Servicer shall cause an amount equal to the Investor
Principal Collections for such Deposit Date to be allocated to
Series 2006-A and such amount shall be applied as provided in Section
4.05(b) and first, an amount equal to the Reallocated Principal Collections
for the related Payment Date shall be made available on that Payment Date for
application in accordance with Section 4.09, second, if any other
Principal Sharing Series is outstanding and in its accumulation period or
amortization period, shall be retained in the Principal Account for
application, to the extent necessary, as Excess Principal Collections to other
Principal Sharing Series on the related Payment Date, third, shall be deposited
in the Excess Funding Account to the extent necessary so that the Net Pool
Balance is not less than the Required Net Pool Balance, and fourth, shall be
released to the Residual Interestholder.

 

(c)           Principal Collections — Controlled
Accumulation Period.  On each Deposit
Date during the Controlled Accumulation Period, the Servicer shall cause an
amount equal to the

 

12

 

Investor Principal Collections for such Deposit Date
to be allocated to Series 2006-A for application as provided in Section
4.05(c) and first, an amount equal to the Reallocated Principal Collections
for the related Payment Date shall be made available on that Payment Date for
application in accordance with Section 4.09, second, if any other
Principal Sharing Series is outstanding and in its accumulation period or
amortization period, shall be retained in the Principal Account for
application, to the extent necessary, as Excess Principal Collections to other
Principal Sharing Series on the related Payment Date, third, shall be deposited
in the Excess Funding Account to the extent necessary so that the Net Pool
Balance is not less than the Required Net Pool Balance, and fourth, shall be
released to the Residual Interestholder.

 

(d)           Principal
Collections — Early Amortization Period. 
On each Deposit Date during the Early Amortization Period, the Servicer
shall cause an amount equal to the Investor Principal Collections for
such Deposit Date to be allocated to Series 2006-A for application as
provided in Section 4.05(c) and first, an amount equal to the
Reallocated Principal Collections for the related Payment Date shall be made
available on that Payment Date for application in accordance with Section
4.09, second, if any other Principal Sharing Series is outstanding and in
its accumulation period or amortization period, shall be retained in the
Principal Account for application, to the extent necessary, as Excess Principal
Collections to other Principal Sharing Series on the related Payment Date,
third, shall be deposited in the Excess Funding Account to the extent necessary
so that the Net Pool Balance is not less than the Required Net Pool Balance,
and fourth, shall be released to the Residual Interestholder.

 

(e)           Miscellaneous Payments.  On each Deposit Date, the Servicer shall
treat any Allocable Miscellaneous Payments as Investor Principal Collections
and apply them as provided in Section 4.01(b), 4.01(c) or 4.01(d),
as appropriate, except that any Allocable Miscellaneous Payments consisting of
(i) Adjustment Payments that were paid after their due date as per
Section 3.9(a) of the Agreement, if the amount of such overdue Adjustment
Payments has been included in the Investor Dilution Amount for any prior
Collection Period and (ii) the interest portion of Transfer Deposit Amounts
resulting from the Servicer’s purchase of Receivables pursuant to Section
3.3(d) of the Agreement, shall, in each case, be treated as Allocable Non-Principal
Collections and applied as provided in Section 4.01(a).

 

The withdrawals to be made
from the Collection Account pursuant to this Section 4.01 do not
apply to deposits into the Collection Account that do not represent
Collections, including payment of the Redemption Price for the Series 2006-A
Notes pursuant to Section 10.1(b) of the Indenture and Section 7.01
of this Series Supplement and proceeds from the sale, disposition or
liquidation of Conveyed Receivables pursuant to Section 5.4 of the
Indenture.

 

Section 4.02  Monthly Interest.

 

(a)           The amount of monthly interest (“Class
A Monthly Interest”) accrued during any Interest Period with respect to the
Class A Notes, shall be equal to the product of (A) the Class A Interest
Rate, (B) the Outstanding Amount of the Class A Notes as of the close of
business on the last day of the preceding Interest Period and (C) a
fraction, the numerator of which is the actual number of days elapsed in the
related Interest Period and the denominator of which is 360; provided, however
that with respect to the first such Payment Date, Class A Monthly
Interest shall be calculated based on the outstanding principal amount of the
Class A Notes on the Closing Date.

On the Determination Date
preceding each Payment Date, the Servicer shall determine the excess, if any
(the “Class A Interest Shortfall”), of (x) the aggregate Class A
Monthly Interest

 

13

 

for the Interest Period
applicable to such Payment Date over (y) the amount that will be available
to be distributed to Class A Noteholders on such Payment Date in respect
thereof pursuant to this Series Supplement. 
If the Class A Interest Shortfall with respect to any Payment Date is
greater than zero, an additional amount (“Class A Additional Interest”)
equal to the product of (A) the Class A Interest Rate for the Interest Period
commencing on such Payment Date (or, for subsequent Interest Periods, the Class
A Interest Rate for such subsequent Interest Period), (B) such Class A
Interest Shortfall (or the portion thereof that has not been paid to Class A
Noteholders) and (C) a fraction, the numerator of which is the amount of
days elapsed in such Interest Period (or in a subsequent Interest Period) and
the denominator of which is 360, shall be payable as provided herein with
respect to Class A Notes on each Payment Date following such Payment Date to
and including the Payment Date on which such Class A Interest Shortfall is paid
to Class A Noteholders.  Notwithstanding
anything to the contrary herein, Class A Additional Interest shall be payable
or distributed to Class A Noteholders only to the extent permitted by
applicable law.

 

(b)           The amount of monthly interest (“Class
B Monthly Interest”) accrued during any Interest Period with respect to the
Class B Notes, shall be equal to the product of (A) the Class B Interest
Rate, (B) the Outstanding Amount of the Class B Notes as of the close of
business on the last day of the preceding Interest Period and (C) a
fraction, the numerator of which is the actual number of days elapsed in the
related Interest Period and the denominator of which is 360; provided, however
that with respect to the first such Payment Date, Class B Monthly
Interest shall be calculated based on the outstanding principal amount of the
Class B Notes on the Closing Date.

 

On the Determination Date
preceding each Payment Date, the Servicer shall determine the excess, if any
(the “Class B Interest Shortfall”), of (x) the aggregate Class B
Monthly Interest for the Interest Period applicable to such Payment Date over
(y) the amount that will be available to be distributed to Class B
Noteholders on such Payment Date in respect thereof pursuant to this Series
Supplement.  If the Class B Interest
Shortfall with respect to any Payment Date is greater than zero, an additional
amount (“Class B Additional Interest”) equal to the product of (A) the
Class B Interest Rate for the Interest Period commencing on such Payment Date
(or, for subsequent Interest Periods, the Class B Interest Rate for such
subsequent Interest Period), (B) such Class B Interest Shortfall (or the
portion thereof that has not been paid to Class B Noteholders) and (C) a
fraction, the numerator of which is the amount of days elapsed in such Interest
Period (or in a subsequent Interest Period) and the denominator of which is
360, shall be payable as provided herein with respect to Class B Notes on each
Payment Date following such Payment Date to and including the Payment Date on
which such Class B Interest Shortfall is paid to Class B Noteholders.  Notwithstanding anything to the contrary
herein, Class B Additional Interest shall be payable or distributed to Class B
Noteholders only to the extent permitted by applicable law.

 

Section 4.03  Determination
of Monthly Principal.  Beginning with
the Payment Date in the month following the month in which the Controlled
Accumulation Period or the Early Amortization Period begins, the amount of
principal with respect to Series 2006-A on each Payment Date (the “Monthly
Principal”) shall be equal to the least of (i) the Outstanding Amount of
the Series 2006-A Notes on such Payment Date (minus, during the Controlled
Accumulation Period, any amount already in the Principal Account on such
Payment Date); (ii) during the Controlled Accumulation Period, the result of
(x) the Outstanding Amount of the Series 2006-A Notes as of the last day of the
Revolving Period, divided by (y) the Controlled Accumulation Period Length; and
(iii) during the Controlled Accumulation Period, the Invested Amount (after
taking into account any adjustments to be made to the Invested Amount on such
Payment Date pursuant to Section 4.07). 
Subject to Section 4.2(b) of the Agreement,

 

14

 

during the Controlled
Accumulation Period and the Early Amortization Period, Investor Principal
Collections shall be deposited into the Collection Account on a daily basis in
accordance with and subject to the provisions of Section 4.2 of the Agreement.

 

Section 4.04  Establishment
of Accounts.  The Issuer has
previously caused to be established and covenants to hereafter maintain the
Collection Account and the Excess Funding Account.  The Issuer hereby establishes and covenants
to hereafter maintain the Principal Account and the Reserve Account which shall
be Trust Accounts and Eligible Deposit Accounts in accordance with Section 4.1
of the Agreement under the sole dominion and control of the Indenture Trustee
for the benefit of the Series 2006-A Noteholders and the Residual
Interestholder.

 

Section 4.05  Application
of Collections.

 

(a)           Available Investor Non-Principal
Collections and Investment Proceeds. 
On each Payment Date, the Servicer shall direct the Indenture Trustee in
writing to apply an amount equal to the sum of Available Investor Non-Principal
Collections, any Investment Proceeds deposited in the Collection Account for
the related Collection Period, any amounts on deposit in the Reserve Account
and Excess Non-Principal Collections allocated to Series 2006-A in accordance
with Section 4.10 for distribution, to the extent of funds available
therefor, in the following priority:

 

(i)            first, an amount equal to the
Investor Monthly Servicing Fee for such Payment Date (to the extent not
previously paid), plus any unpaid Servicer Advances and accrued and unpaid
interest thereon, shall be distributed to the Servicer;

 

(ii)           second, an amount equal to
Class A Monthly Interest for such Payment Date, plus the amount of
any Class A Monthly Interest previously due but not distributed to the
Class A Noteholders on a prior Payment Date, plus the amount of any
Class A Additional Interest for such Payment Date and any Class A
Additional Interest previously due but not distributed to the Class A
Noteholders on a prior Payment Date, shall be paid to the Class A Noteholders,
pro rata;

(iii)          third, an amount equal to
Class B Monthly Interest for such Payment Date, plus the amount of
any Class B Monthly Interest previously due but not distributed to the
Class B Noteholders on a prior Payment Date, plus the amount of any
Class B Additional Interest for such Payment Date and any Class B
Additional Interest previously due but not distributed to the Class B Noteholders
on a prior Payment Date, shall be paid to the Class B Noteholders, pro rata;

 

(iv)          fourth, an amount equal to the
Investor Defaulted Amount and the Investor Dilution Amount, if any, for such
Payment Date shall be treated as a portion of Available Investor Principal
Collections for such day and, during the Controlled Accumulation Period or the
Early Amortization Period, shall be deposited into the Principal Account;

 

(v)           fifth, an amount equal to the
aggregate amount of Investor Charge-Offs that have not been previously
reimbursed as provided in Section 4.07 and this Section 4.05(a)(v)
shall be treated as Available Investor Principal Collections with respect to
such day and shall increase the Invested Amount and, during the Controlled
Accumulation Period or the Early Amortization Period, shall be deposited into
the Principal Account;

 

(vi)          sixth, an amount, if any, equal
to the amount required to be deposited in the Reserve Account pursuant to Section
4.12 shall be deposited into the Reserve Account during the Revolving
Period and the Controlled Accumulation Period;

 

15

 

(vii)         seventh, to deposit into the
Principal Account, during the Controlled Accumulation Period, any deficiency in
the amount otherwise required to be deposited into the Principal Account at
that time;

 

(viii)        eighth, if the Early Amortization
Period has not occurred and is not continuing, the balance, if any, will
constitute a portion of Excess Non-Principal Collections for such Payment Date
and will be applied in accordance with Section 4.3 of the Agreement; and

 

(ix)           ninth, during the Early
Amortization Period, the remaining balance, if any, will be used to make
principal payments first, to the Class A Notes until the Class A Note Principal
Balance is paid in full, second, to the Class B Notes until the Class B Note
Principal Balance is paid in full, and, third, to the Class C Notes until the
Class C Note Principal Balance is paid in full.

 

On each Payment Date, to
the extent that there is a shortfall (a “Payment Date Shortfall”) in the
amounts to be paid or deposited pursuant to clauses(a)(ii) and (a)(iii)
of this Section 4.05, the Paying Agent on behalf of the Issuer, shall
withdraw from the Collection Account, from any Servicer Advance on deposit
therein, an amount equal to the lesser of (i) the Payment Date Shortfall for
such Payment Date and (ii) the product of (x) such Servicer Advance and (y) the
Floating Allocation Percentage for the previous Collection Period, and apply
such withdrawn amount to make the payments and deposits contemplated by such
clauses of this Section 4.05.

 

(b)           Available Investor Principal
Collections — Revolving Period.  On
each Payment Date during the Revolving Period, an amount equal to the Available
Investor Principal Collections deposited into the Collection Account for the
related Collection Period shall be treated as Excess Principal Collections and
applied in accordance with Section 4.3 of the Agreement.

 

(c)           Available Investor Principal
Collections — Controlled Accumulation Period or Early Amortization Period.  On each Payment Date during the Controlled
Accumulation Period or the Early Amortization Period, an amount equal to
Available Investor Principal Collections deposited in the Collection Account
for the related Collection Period shall be applied as follows:

 

(i)            during the Controlled Accumulation
Period, an amount equal to the least of (a) the Available Investor Principal
Collections on deposit in the Collection Account for the related Collection
Period and (b) the Monthly Principal for each Payment Date shall be deposited
into the Principal Account on such Payment Date;

 

(ii)           during the Early Amortization Period,
an amount equal to the least of (a) the Available Investor Principal
Collections on deposit in the Collection Account for the related Collection
Period and (b) the Monthly Principal for such Payment Date shall be distributed
on each Payment Date and on the related Payment Date, first, to the Class A
Noteholders on the related Payment Date until the Class A Note Principal
Balance has been paid in full; second, to the Class B Noteholders until the
Class B Note Principal Balance has been paid in full; and third, to the Class C
Noteholders until the Class C Note Principal Balance has been paid in full; and

 

(iii)          in the case of each of the Controlled
Accumulation Period and the Early Amortization Period, the balance of such
Available Investor Principal Collections remaining after application in
accordance with clauses (i) and (ii) above shall be treated as Excess Principal
Collections and applied in accordance with Section 4.3 of the Agreement.

 

16

 

(d)           Payment of Available Investor
Principal Collections.  On the
earlier to occur of (i) the first Payment Date during the Early Amortization
Period and (ii) the Expected Principal Payment Date, the Servicer shall pay the
amount determined under Section 4.05(c)(i) and (c)(ii) first, to
the Class A Noteholders, until the Class A Note Principal Balance is paid in
full, second to the Class B Noteholders until the Class B Note Principal
Balance is paid in full, and third, to the Class C Noteholders until the Class
C Note Principal Balance is paid in full.

 

Section 4.06  Distributions
to Series 2006-A Noteholders. 
 On each Payment Date, the Servicer shall direct the Indenture
Trustee in writing to make the following distributions at the following times
from the Collection Account, the Reserve Account, the Principal Account and the
Excess Funding Account, as applicable:

 

(a)           on each Payment Date, all amounts on
deposit in such Trust Accounts that are payable to the Class A Noteholders with
respect to accrued interest and principal shall be distributed to the Class A
Noteholders in accordance with Section 4.05;

 

(b)           on each Payment Date, all amounts on
deposit in such Trust Accounts that are payable to the Class B Noteholders with
respect to accrued interest and principal shall be distributed to the Class B
Noteholders in accordance with Section 4.05; and

 

(c)           on each Payment Date, all amounts on
deposit in such Trust Accounts that are payable to the Class C Noteholders with
respect to principal shall be distributed to the Class C Noteholders in
accordance with Section 4.05.

 

Section 4.07  Investor
Charge-Offs.  On each Determination
Date, the Servicer shall calculate the Investor Defaulted Amount and the
Investor Dilution Amount, if any, for the related Payment Date.  If, on any Payment Date, the sum of the
Investor Defaulted Amount, the Investor Dilution Amount and Reallocated
Principal Collections for such Payment Date exceeds the sum of Available
Investor Non-Principal Collections, amounts withdrawn from the Reserve Account
on such Payment Date and Investment Proceeds allocated with respect thereto
pursuant to Section 4.05(a)(iv) on such Payment Date (after giving
effect to the allocations, distributions, withdrawals and deposits to be made
on such Payment Date), the Invested Amount shall be reduced by the amount of
such excess, but not by more than the lesser of (i) the sum of the
Investor Defaulted Amount, the Investor Dilution Amount and Reallocated
Principal Collections for such Payment Date, and (ii) the Invested Amount
on such Payment Date (an “Investor Charge-Off”).  Investor Charge-Offs shall thereafter
be reimbursed and the Invested Amount increased (but not by an amount in excess
of the aggregate unreimbursed Investor Charge-Offs on any Payment Date) by the
amount of Available Investor Non-Principal Collection and Investment Proceeds
allocated and available for that purpose pursuant to Section 4.05(a)(v).

 

Section 4.08  Excess
Funding Account.  On the business day
after the last day of the Revolving Period, the Series 2006-A Excess
Funding Amount shall, pursuant to Servicer written instruction, be deposited in
the Collection Account on such date and distributed in accordance with Section 4.06.  Thereafter, the Series 2006-A Noteholders
shall not be entitled to any funds on deposit in the Excess Funding Account.

 

Section 4.09  Reallocated
Principal Collections.  On each
Payment Date, after giving effect to Section 4.12(a), the Servicer shall
apply Reallocated Principal Collections with respect to that Payment Date to
fund any deficiency pursuant to and in the priority set forth in Sections
4.05(a)(i) through (iii). On each Payment Date, the Invested Amount
shall be reduced by the amount of Reallocated Principal Collections for such
Payment Date.  Reallocated Principal
Collections shall become part of Investor Charge-Offs pursuant to Section
4.07.

 

17

 

Section 4.10  Excess
Non-Principal Collections.  Series
2006-A shall be an Excess Allocation Series with respect to Group One only.
Subject to Section 4.3 of the Agreement, Excess Non-Principal Collections with
respect to the Excess Allocation Series in Group One for any Payment Date will
be allocated to Series 2006-A in an amount equal to the product of (x) the aggregate
amount of Excess Non-Principal Collections with respect to all the Excess
Allocation Series in Group One for the related Payment Date and (y) a fraction,
the numerator of which is the Series 2006-A Non-Principal Shortfall for such
Payment Date and the denominator of which is the aggregate amount of
Non-Principal Shortfalls for all the Excess Allocation Series in Group One for
such Payment Date.

 

Section 4.11  Excess
Principal Collections.  Subject to
Section 4.3 of the Agreement, Excess Principal Collections allocable to Series
2006-A on any Payment Date will be equal to the product of (x) the aggregate
amount of Excess Principal Collections with respect to all Principal Sharing
Series for such Payment Date and (y) a fraction, the numerator of which is the
Series 2006-A Principal Shortfall for such Payment Date and the denominator of
which is the aggregate amount of Principal Shortfalls for all the Series which
are Principal Sharing Series for such Payment Date.

 

Section 4.12  Reserve
Account.

 

(a)           On each Payment Date, if the
aggregate amount of Available Investor Non-Principal Collections is less than
the aggregate amount required to be paid or deposited pursuant to clauses
(i) through (iv) of Section 4.05(a), the Issuer shall
withdraw from the Reserve Account the amount of such deficiency up to the
Available Reserve Account Amount and shall apply such amount in accordance with
such clauses of Section 4.05(a).

 

(b)           On the Series 2006-A Stated Maturity
Date, and on any day following the occurrence of an Event of Default with
respect to Series 2006-A that has resulted in the acceleration of the Series
2006-A Notes, the Servicer shall withdraw from the Reserve Account the
Available Reserve Account Amount for payment to the Series 2006-A Noteholders
to fund any shortfalls in amounts owed to the Series 2006-A Noteholders.

 

(c)           If on any Payment Date, after giving
effect to all withdrawals from the Reserve Account, the Available Reserve
Account Amount is less than the Required Reserve Account Amount then in effect,
Available Investor Non-Principal Collections shall be deposited into the
Reserve Account pursuant to Section 4.05(a)(vi) up to the amount of the
Reserve Account Deficiency.

 

(d)           If, after giving effect to all
deposits to and withdrawals from the Reserve Account with respect to any
Payment Date, the amount on deposit in the Reserve Account exceeds the Required
Reserve Account Amount, the Servicer shall withdraw an amount equal to such
excess from the Reserve Account and distribute such amount to the Residual
Interestholder on the related Payment Date. On the date on which the Reserve
Account has been terminated, after giving effect to any withdrawal on such date
pursuant to Section 4.12(a) and making any payments to the Series 2006-A
Noteholders required pursuant to this Series Supplement, all amounts then
remaining in the Reserve Account shall be released to the Residual
Interestholder.

 

(e)           The Reserve Account will terminate on
the earliest to occur of (i) the date on which the Outstanding Amount of the
Series 2006-A Notes has been reduced to zero and all other amounts payable to
the Series 2006-A Noteholders have been paid in full; (ii) the Series 2006-A
Stated Maturity Date; and (iii) the termination of the Issuer.

 

18

 

Section 4.13  Investment of Amounts on Deposit in Series
Accounts.

 

(a)           To the extent there are uninvested
amounts deposited in the Series Accounts, the Servicer shall cause such amounts
to be invested in Eligible Investments selected by the Servicer that mature no
later than the following Payment Date.

 

(b)           On each Payment Date, the Investment
Proceeds, if any, accrued since the preceding Payment Date on funds on deposit
in the Reserve Account or the Principal Account shall be treated as Available
Investor Non-Principal Collections and paid or deposited in accordance with Section
4.05(a).  Subject to the foregoing,
for purposes of determining the availability of funds or the balance in the
Reserve Account for any reason under this Series Supplement, all Investment
Proceeds shall be deemed not to be available or on deposit.

 

Section 4.14  Controlled
Accumulation Period.  The Controlled
Accumulation Period is scheduled to commence at the beginning of business on
the Controlled Accumulation Date. On each Determination Date until the
Controlled Accumulation Date, the Servicer shall review the amount of expected
Principal Collections and determine the Controlled Accumulation Period Length; provided,
that if the Controlled Accumulation Period Length (determined as described
below) on any Determination Date is less than or more than the number of months
in the scheduled Controlled Accumulation Period, upon written notice to the
Indenture Trustee, with a copy to each Rating Agency, the Servicer shall either
postpone or accelerate, as applicable, the date on which the Controlled
Accumulation Period actually commences, so that as a result, the number of
Collection Periods in the Controlled Accumulation Period will equal the
Controlled Accumulation Period Length; provided, that the length of the
Controlled Accumulation Period will not be less than one (1) month.  The “Controlled Accumulation Period Length”
will mean a number of whole months such that the amount available for payment of
principal on the Series 2006-A Notes on the Expected Principal Payment Date is
expected to equal or exceed the Outstanding Amount of the Series 2006-A Notes,
assuming for this purpose that (1) the Monthly Payment Rate will be no greater
than the lowest Monthly Payment Rate for the prior twelve (12) Collection
Periods, (2) the total amount of Principal Receivables held by the Issuer in
the Trust (and the principal amount on deposit in the Excess Funding Account,
if any) remain constant at the level on such date of determination, (3) no
Early Amortization Event with respect to any Series will subsequently occur and
(4) no additional Series (other than any Series being issued on such date of
determination) will be subsequently issued by the Issuer. Any notice by the
Servicer modifying the commencement of the Controlled Accumulation Period
pursuant to this Section 4.14 shall specify (i) the Controlled
Accumulation Period Length and (ii) the commencement date of the Controlled
Accumulation Period.

 

Section 4.15  Determination
of LIBOR.

 

(a)           On each LIBOR Determination Date in
respect of an Interest Period after the first Interest Period, The Bank of New
York, as Paying Agent, shall determine LIBOR on the basis of the rate per annum
displayed on page “US0001M <INDEX>“ in the Bloomberg Financial Markets
system as the composite offered rate for London interbank deposits for a
one-month period, as of 11:00 a.m., London time, on that date. If that rate
does not appear on that display page, LIBOR for that Interest Period will be
the rate per annum shown on page 3750 of the Bridge Telerate Services Report
screen or any successor page as the composite offered rate for London interbank
deposits for a one-month period, as shown under the heading “USD” as of 11:00
a.m., London time, on the LIBOR Determination Date. If no rate is shown as
described in the preceding two sentences, LIBOR for that Interest Period will
be the rate per annum based on the rates at which U.S. dollar deposits for a
one-month period are displayed on page “LIBOR” of the Reuters Monitor Money
Rates Service or such other page as may replace the LIBOR page on that service
for the purpose of displaying London interbank offered rates of major banks as
of

 

19

 

11:00 a.m., London time, on
the LIBOR Determination Date; provided, that if at least two rates
appear on that page, the rate will be the arithmetic mean of the displayed
rates and if fewer than two rates are displayed, or if no rate is relevant, the
rate for that Interest Period shall be determined on the basis of the rates at
which deposits in United States dollars are offered by the Reference Banks at
approximately 11:00 a.m., London time, on that day to prime banks in the London
interbank market for a one-month period. The Indenture Trustee shall request
the principal London office of each of the Reference Banks to provide a
quotation of its rate. If at least two (2) such quotations are provided, the
rate for that Interest Period shall be the arithmetic mean of all quotations provided.
If fewer than two (2) quotations are provided as requested, the rate for that
Interest Period will be the arithmetic mean of the rates quoted by major banks
in New York City, selected by the Servicer, at approximately 11:00 a.m., New
York City time, on that day for loans in United States dollars to leading
European banks for a one-month period. Notwithstanding the foregoing, LIBOR for
the first Interest Period will be determined by reference to straight line
interpolation between one-month and two-month LIBOR based on the actual number
of days in the first Interest Period.

 

(b)           The Class A Note Interest Rate and
Class B Note Interest Rate applicable to the then current and the immediately
preceding Interest Periods may be obtained by telephoning Bank of New York, as
Paying Agent, at its Corporate Trust Office or such other telephone number as
shall be designated by the Indenture Trustee for such purpose by prior written
notice by The Bank of New York, as Paying Agent, to each Series 2006-A
Noteholder from time to time.

 

(c)           On each LIBOR Determination Date, the
Indenture Trustee shall send to the Issuer, by facsimile transmission or
e-mail, notification of LIBOR for the following Interest Period.

 

ARTICLE V

 

Distributions and Reports
to Series 2006-A Noteholders

 

Section 5.01  Distributions.  (a)  On
each Payment Date, the Indenture Trustee shall distribute to each Series 2006-A
Noteholder of record on the preceding Record Date (other than as provided in
Section 2.7(c) of the Indenture with respect to a final distribution) such
Interestholder’s pro rata share of the amounts on deposit in the Collection
Account, the Excess Funding Account, the Principal Account or the Reserve
Account as is payable to the Series 2006-A Noteholders on such Payment Date according
to the written instructions of the Servicer given pursuant to Sections 4.05
and 4.06.

 

(b)           Except as provided in
Section 2.7(c) of the Indenture with respect to a final distribution,
distributions to Series 2006-A Noteholders hereunder shall be made in
immediately available funds wired to each Series 2006-A Interestholder in
accordance with such Interestholder’s wiring information appearing in the
Register without presentation or surrender of any Series 2006-A Notes or the
making of any notation thereon.

 

Section 5.02  Reports and Statements to Series 2006-A
Noteholders.  (a)  At least
two Business Days prior to each Payment Date, the Servicer will provide to the
Indenture Trustee, and on each such Payment Date, the Indenture Trustee shall
forward to each Series 2006-A Interestholder of record a statement (the “Payment
Date Statement”) prepared by the Servicer setting forth certain information
relating to the Issuer and the Series 2006-A Notes as set forth in the Offering
Memorandum and information in respect of the Required Net Pool Balance.

 

20

 

(b)           A copy of each statement provided
pursuant to paragraph (a) will be made available for inspection at the
Corporate Trust Office.

 

(c)           Within the prescribed period for tax
reporting purposes after the end of each calendar year, the Indenture Trustee
shall furnish or cause to be furnished to each Person who at any time during
the preceding calendar year was a Series 2006-A Noteholder and the Residual
Interestholder, a statement prepared by the Servicer containing such
information as may be required by the Code and applicable U.S. treasury
regulations to enable the Series 2006-A Noteholders or Residual Interestholder
to prepare their federal income tax returns. 
Such obligation of the Indenture Trustee shall be deemed to have been
satisfied to the extent that substantially comparable information shall be
provided by the Indenture Trustee pursuant to any requirements of the Code as
from time to time in effect.

 

ARTICLE VI

 

Early Amortization Events

 

Section 6.01  Additional
Early Amortization Events.  (a)  In addition to the Early Amortization Events
set forth in Section 5.17 of the Indenture and except as provided in Section 6.01(b),
the occurrence of any of the following events shall, immediately upon the
occurrence thereof without notice or other action on the part of the Indenture
Trustee or the Series 2006-A Noteholders, be deemed to be an Early Amortization
Event solely with respect to Series 2006-A:

 

(i)            on any Determination Date, the
average of the Monthly Payment Rates for the three preceding Collection Periods
is less than 12% for the Determination Dates falling in February through May,
less than 14% for the Determination Date falling in June, less than 16% for the
Determination Dates falling in July through October, or less than 14% for the
Determination Dates falling in November through January (or a lower percentage
if the Rating Agency Condition has been satisfied with respect to that lower
percentage);

 

(ii)           any Servicing Default occurs;

 

(iii)          the occurrence of an Event of Default
with respect to the Series 2006-A Notes and the declaration that the Series
2006-A Notes are due and payable pursuant to Section 5.2 of the
Indenture;

 

(iv)          on the Expected Principal Payment
Date, the Series 2006-A Notes are not paid in full;

 

(v)           the sum of all investments (other
than Receivables) held in Trust Accounts of the Issuer and, without
duplication, amounts held in the Excess Funding Account, represents more than
fifty percent (50%) of the dollar amount of the assets of the Issuer on each of
six (6) or more consecutive monthly Determination Dates, after giving effect to
all payments made or to be made on the Payment Dates relating to those
Determination Dates;

 

(vi)          on any Payment Date, there exists (a)
Investor Charge-Offs or (b) a withdrawal from the Reserve Account, in each case
relating to a shortfall in Non-Principal Collections on a prior Payment Date
that has not been reimbursed as of such Payment Date after application of all
Collections on such date or (ii) there exists (a) Investor Charge-Offs or (b) a
withdrawal from the Reserve Account, in an aggregate amount in excess of 0.25%
of the Initial Invested Amount, in each case relating to a shortfall in
Non-Principal Collections on such Payment Date;

 

21

 

(vii)         on any Payment Date after the
occurrence of an Enhancement Trigger Event under clause (b) of the definition
thereof, the Seller has not deposited an amount into the Reserve Account equal
to 1.0% of the Initial Invested Amount; or

 

(viii)        on any Payment Date, the amount on
deposit in the Reserve Account is less than the Required Reserve Account Amount
for such Payment Date after application of all Collections on such date and for
the two consecutive Payment Dates immediately preceding such Payment Date.

 

(b)           In the case of any event described in
Section 6.01(a)(ii) above or in Section 5.17(d) or (e) of the Indenture,
an Early Amortization Event with respect to Series 2006-A shall be deemed
to have occurred only if either (i) the Indenture Trustee or (ii) the
Control Investors, by written notice to the Issuer, the Seller and the Servicer
(and the Indenture Trustee, if such notice is given by Series 2006-A
Noteholders) declare that an Early Amortization Event has occurred as of the
date of such notice.  In the case of any
other event described above or in Section 5.17 of the Indenture, an Early
Amortization Event will occur without any notice or other action on the part of
the Indenture Trustee or the Series 2006-A Noteholders immediately upon the
occurrence of such event.

 

Section 6.02  Recommencement
of the Revolving Period.  If any
Early Amortization Event (other than an Early Amortization Event described in
Section 5.17(a) of the Indenture) occurs, the Revolving Period shall
recommence following satisfaction of the Rating Agency Condition and if the
Control Investors consent thereto; provided, however, that no
other Early Amortization Event that has not been cured or waived as described
herein has occurred and the scheduled termination of the Revolving Period has
not occurred.

 

ARTICLE VII

 

Optional Purchase

 

Section 7.01  Optional
Purchase.

 

(a)           On any Payment Date occurring after
the date on which the aggregate outstanding principal amount of the Series
2006-A Notes is reduced to an amount less than or equal to 10% of the initial
outstanding principal amount of the Series 2006-A Notes, the Servicer shall
have the option to purchase the Series 2006-A Notes in whole but not in part at
a purchase price equal to the Redemption Price for such Payment Date.

 

(b)           The Servicer shall give the Indenture
Trustee at least 20 days’ prior written notice of the Payment Date on which the
Servicer intends to exercise such purchase option.  Not later than 12:00 noon, New York City
time, on such Payment Date, the Servicer shall deposit an amount equal to the
sum of (i) the Series 2006-A Excess Funding Amount (in a maximum
amount not exceeding the Redemption Price), (ii) the Reserve Account Amount (in
a maximum amount not exceeding the Redemption Price), (iii) the amount on
deposit in the Principal Account (in a maximum amount not exceeding the
Redemption Price) and (iv) the excess, if any, of the Redemption Price
over the amounts calculated in clauses (i), (ii) and (iii) into the
Collection Account in immediately available funds.  Such purchase option is subject to payment in
full of the Redemption Price.  The
Redemption Price shall be distributed as set forth in Section 8.01.

 

22

 

ARTICLE VIII

 

Final Distributions

 

Section 8.01  Acquisition
of Notes Pursuant to Section 10.1 of the Indenture; Distributions pursuant
to Section 7.01 of this Series Supplement or Section 5.4 of the
Indenture.

 

(a)           The amount to be paid by the Seller
to the Collection Account with respect to Series 2006-A Notes in connection
with a redemption of the Series 2006-A Notes pursuant to Section 10.1(b)
of the Indenture shall equal the Redemption Price for the Payment Date on which
such redemption occurs.

 

(b)           With respect to the Redemption Price
deposited into the Collection Account pursuant to Section 7.01 or 8.01(a)
of this Series Supplement or any amount distributable to the Series 2006-A
Noteholders pursuant to Section 5.4(a)(iv) or 5.4(b) of the Indenture
following a sale of Receivables by the Issuer, the Indenture Trustee shall, not
later than 12:00 noon, New York City time, on the Payment Date on which
such amounts are deposited (or, if such date is not a Payment Date, on the
immediately following Payment Date), based upon information provided by the
Servicer (which shall include specific instructions with respect to the
following amounts), make distributions of the following amounts (in the
priority set forth below and, in each case, after giving effect to any deposits
and distributions otherwise to be made on such date) in immediately available
funds:

 

(i)            first, (x) an amount equal to the
Outstanding Amount of the Class A Notes shall be distributed to the Class A
Noteholders and (y) an amount equal to the sum of (A) Class A
Monthly Interest for such Payment Date, (B) any Class A Monthly
Interest previously due but not distributed on a prior Payment Date, and
(C) the amount of Class A Additional Interest, if any, for such
Payment Date and any Class A Additional Interest previously due but not
distributed on a prior Payment Date, shall be distributed to the Class A
Noteholders;

 

(ii)           second, (x) an amount equal to the
Outstanding Amount of the Class B Notes shall be distributed to the Class B
Noteholders and (y) an amount equal to the sum of (A) Class B
Monthly Interest for such Payment Date, (B) any Class B Monthly
Interest previously due but not distributed on a prior Payment Date, and (C) the
amount of Class B Additional Interest, if any, for such Payment Date and
any Class B Additional Interest previously due but not distributed on a
prior Payment Date, shall be distributed to the Class B Noteholders;

 

(iii)          third, an amount equal to the
Outstanding Amount of the Class C Notes shall be distributed to the Class C
Noteholders; and

 

(iv)          fourth, any excess will be released to
the Residual Interestholder.

 

(c)           Notwithstanding anything to the
contrary in this Series Supplement or the Indenture, any distribution made
pursuant to Section 8.01(b) shall be deemed to be a final
distribution pursuant to Section 2.7(c) of the Indenture with respect to
the Series 2006-A Notes.

 

Section
8.02  Series Termination.  On the Series 2006-A Stated Maturity
Date, if the Invested Amount is greater than zero (after giving effect to
deposits and distributions otherwise to be made on such Series 2006-A Stated
Maturity Date), the Indenture Trustee will sell or cause to be sold on such
Series 2006-A Stated Maturity Date in accordance with the Indenture an amount
of Principal Receivables (or interests therein) equal to 110% of the Invested
Amount on such Series 2006-A Stated Maturity Date

 

23

 

(after giving effect to such
deposits and distributions); provided, however, that in no event
shall the amount of Principal Receivables sold exceed the product of the Series
2006-A Allocation Percentage (for the Collection Period in which such Payment
Date occurs) and Principal Receivables on such Payment Date.  The proceeds from such sale shall be paid
first, to the Class A Noteholders until the outstanding principal amount and
unpaid interest on the Class A Notes is paid in full; second, to the Class B
Noteholders until the outstanding principal amount and unpaid interest on the
Class B Notes is paid in full; third, to the Class C Noteholders until the
outstanding principal amount and unpaid interest on the Class C Notes is paid
in full; and then any remaining proceeds shall be allocated and distributed as
Principal Collections in accordance with the terms of Section 4.06.  On and after the Termination Date, no
distributions will be made pursuant to this Supplement except as otherwise
expressly provided for in the Indenture.

 

ARTICLE IX

 

Other Series Provisions

 

Section 9.01  Additional
Covenants.  Except for the conveyance
hereunder to the Indenture Trustee, the Issuer shall not sell, pledge, assign
or transfer to any other Person any rights it might have to funds on deposit in
the Collection Account, the Principal Account, the Reserve Account or the
Excess Funding Account or Investment Proceeds with respect thereto.

 

Section 9.02  Tax
Treatment of the Series 2006-A Notes. 
The Issuer and the purchasers of the Class A Notes and Class B Notes
intend, and will take all actions consistent with and refrain from any action
inconsistent with the intention, that the Class A Notes and Class B Notes be
treated as indebtedness which is solely secured by the Collateral for all
federal, state, local, and foreign income and franchise tax purposes and that
the Issuer be disregarded as an entity separate from the Seller for federal
income tax purposes.  The Issuer, by
entering into this Series Supplement, and each Class A Noteholder and Class B Noteholder,
by its acceptance of its Class A Note or Class B Note, as applicable, agrees to
treat the Class A Notes and Class B Notes for federal, state and local income,
single business and franchise tax purposes as indebtedness of the Issuer.

 

Section 9.03  Supplemental
Indentures.  It is expressly
understood by the parties hereto that with respect to Series 2006-A, no action
may be taken under Section 9.1(b) of the Indenture unless the Rating Agency
Condition has been satisfied.

 

Section 9.04  Waiver
of Past Defaults.  Any default by the
Servicer as described in Section 7.4 of the Agreement may be waived by only by
the Control Investors.

 

Section 9.05  Restrictions
on Transfer.

 

(a)           No Class A Note or Class B Note (for
purposes of this Section 9.05, collectively, the “Transferable Notes”)
may be sold, transferred or otherwise disposed of except as follows:

 

(i)            prior to the U.S. Resale Restriction
Termination Date, to QIBs purchasing for their own account or for the account
of QIBs in reliance on the exemption from the registration requirements of the
Securities Act provided by Rule 144A; or

 

(ii)           to purchasers that are not U.S.
persons in “offshore transactions” (within the meaning of Regulation S) in
reliance on Regulation S;

 

24

 

and, in each case in
accordance with all applicable laws and regulations of the United States and
the States thereof, and (if applicable) foreign laws and regulations.

 

The Indenture Trustee
shall have no obligations or duties with respect to determining whether any
transfers of the Transferable Notes are made in accordance with the Securities
Act or any other law; provided that with respect to Definitive Notes,
the Indenture Trustee shall enforce such transfer restrictions in accordance
with the terms set forth on the related Transferable Note and the provisions of
this Series Supplement.

 

(b)           Notwithstanding any provision to the
contrary herein, so long as a Book-Entry Interest remains outstanding with
respect to Series 2006-A and is held by or on behalf of the Clearing Agency,
transfers of a Book-Entry Interest, in whole or in part, shall only be made in
accordance with this Section 9.05(b).

 

(i)            General.  Subject to clauses (ii) through (iv)
of this Section 9.05(b), transfers of a Book-Entry Interest shall be
limited to transfers of such Book-Entry Interest in whole, but not in part, to
a nominee of the Clearing Agency or to a successor of the Clearing Agency or
such successor’s nominee.

 

(ii)           Regulation S Book-Entry Note to U.S. Restricted Book-Entry Note. 
If a holder of a beneficial interest in a Regulation S Book-Entry Note
wishes to transfer all or a part of its beneficial interest in such Regulation
S Book-Entry Note to a Person who wishes to take delivery thereof in the form
of a U.S. Restricted Book-Entry Note, such holder may, subject to the terms
hereof and the rules and procedures of Euroclear, Clearstream, Luxembourg or
the Clearing Agency, as the case may be, exchange or cause the exchange of such
interest for an equivalent beneficial interest in a U.S. Restricted Book-Entry
Note of the same class of Transferable Notes. 
Upon receipt by the Registrar, of (A) instructions from Euroclear,
Clearstream, Luxembourg or the Clearing Agency, as the case may be, directing
the Registrar to cause such U.S. Restricted Book-Entry Note to be increased by
an amount equal to such beneficial interest in such Regulation S Book-Entry
Note but not less than the minimum denomination applicable to the related class
of Transferable Notes and (B) a certificate substantially in the form of Exhibit
D hereto stating, among other things, that the transferee acquiring such
beneficial interest in a U.S. Restricted Book-Entry Note is a Qualified
Institutional Buyer, is obtaining such beneficial interest in a transaction
pursuant to Rule 144A and in accordance with any applicable securities
laws of any state of the United States or any other applicable jurisdiction,
then Euroclear, Clearstream, Luxembourg or the Registrar, as the case may be,
shall instruct the Clearing Agency to reduce such Regulation S Book-Entry Note
by the aggregate principal amount of the beneficial interest in such
Regulation S Book-Entry Note to be transferred, increase the U.S.
Restricted Book-Entry Note specified in such instructions by an aggregate
principal amount equal to such reduction in such principal amount of the
Regulation S Book-Entry Note and make the corresponding adjustments to the
applicable participants’ accounts.

 

(iii)          U.S. Restricted Book-Entry Note to
Regulation S Book-Entry Note.  If a
holder of a beneficial interest in a U.S. Restricted Book-Entry Note wishes to
transfer all or a part of its beneficial interest in such U.S. Restricted
Book-Entry Note to a Person who wishes to take delivery thereof in the form of
a Regulation S Book-Entry Note, such holder may, subject to the terms hereof
and the rules and procedures of Euroclear, Clearstream, Luxembourg or the
Clearing Agency, as the case may be, exchange or cause the exchange of such
interest for an equivalent beneficial interest in a Regulation S Book-Entry
Note of the same class of Transferable Notes. 
Upon receipt by the Registrar of (A) instructions from Euroclear,
Clearstream, Luxembourg or the Clearing Agency, as the case may be, directing
as the Registrar, to cause such Regulation S

 

25

 

Book-Entry Note to be increased by an amount equal to
such beneficial interest in such U.S. Restricted Book-Entry Note but not less
than the minimum denomination applicable to the related class of Transferable
Notes to be exchanged and (B) a certificate substantially in the form of Exhibit
E hereto stating, among other
things, that the transferee acquiring such beneficial interest in a
Regulation S Book-Entry Note is not a U.S. Person (as defined in
Regulation S) and such transfer is being made pursuant to Rule 903 or 904 under
Regulation S of the Securities Act, then Euroclear, Clearstream, Luxembourg or
the Registrar, as the case may be, will instruct the Clearing Agency to reduce
such U.S. Restricted Book-Entry Note by the aggregate principal amount of the
beneficial interest in such U.S. Restricted Book-Entry Note to be transferred,
increase the Regulation S Book-Entry Note specified in such instructions by an
aggregate principal amount equal to such reduction in the principal amount of
the U.S. Restricted Book-Entry Note and make the corresponding adjustments to
the applicable participants’ accounts.

 

(iv)          Other Exchanges.  In the event that a Book-Entry Interest is
exchanged for one or more Definitive Notes pursuant to Section 2.12 of the
Indenture, such  Definitive Notes may be
exchanged for one another only in accordance with such procedures as are
substantially consistent with the provisions of clauses (i) through (iii) above
(including certification requirements intended to insure that such transfers
comply with Rule 144A or are not to U.S. Persons and or otherwise comply with
Regulation S, as the case may be) and as may be from time to time adopted by
the Issuer and the Indenture Trustee.

 

ARTICLE X

 

Miscellaneous Provisions

 

Section 10.01  Ratification
of Agreement.  As supplemented by
this Series Supplement, the Agreement is in all respects ratified and confirmed
and the Agreement as so supplemented by this Series Supplement shall be read,
taken and construed as one and the same instrument.

 

Section 10.02  Counterparts.  This Series Supplement may be executed by the
parties hereto in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one and the same instrument.

 

Section 10.03  GOVERNING
LAW.  THIS SERIES SUPPLEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
EFFECT TO THE CHOICE OF LAW PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

[signature
pages follow]

 

26

 

IN WITNESS WHEREOF, the
Issuer, the Servicer and the Indenture Trustee have caused this Series
Supplement to be duly executed by their respective officers as of the day and
year first above written.

 

	
   

  	
  TEXTRON FINANCIAL
  FLOORPLAN MASTER NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  SUNTRUST DELAWARE TRUST

  COMPANY, not in its individual capacity, but 

  solely as Owner Trustee on behalf of the Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Jack Ellerin

  
	
   

  	
   

  	
  Name: Jack Ellerin 

  
	
   

  	
   

  	
  Title: Trust Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TEXTRON FINANCIAL
  CORPORATION, as 

  
	
   

  	
   

  	
  Servicer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Eric J. Karlson

  
	
   

  	
   

  	
  Name: Eric J. Karlson 

  
	
   

  	
   

  	
  Title: Managing Director
  Capital Markets

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, not
  in its individual 

  
	
   

  	
   

  	
  capacity but solely as
  Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Ryan Bittner

  
	
   

  	
   

  	
  Name: Ryan Bittner

  Title: Assistant Treasurer

  

 

 

EXHIBIT A-1

 

FORM
OF CLASS A SERIES 2006-A FLOATING RATE TERM NOTE

[REGULATION S TEMPORARY BOOK-ENTRY NOTE]

[REGULATION S PERMANENT BOOK-ENTRY NOTE]

[U.S. RESTRICTED BOOK-ENTRY NOTE]

 

UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED UPON REGISTRATION OF
TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS NOTE IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

 

[Insert the following for U.S. Restricted Book-Entry Note]

 

[THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR THE
SECURITIES LAWS OF ANY OTHER JURISDICTION. NEITHER THIS NOTE NOR ANY BENEFICIAL
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ANY OTHER APPLICABLE JURISDICTION. BY
ITS ACCEPTANCE HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS EITHER A “QUALIFIED
INSTITUTIONAL BUYER” (A “QUALIFIED INSTITUTIONAL BUYER”) (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT (“RULE 144A”)), (2) AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER THIS NOTE OR ANY INTEREST OR PARTICIPATION HEREIN, PRIOR TO
THE DATE WHICH IS THE LATER OF (X) TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS
PERMITTED BY RULE 144(k) OF THE SECURITIES ACT) AFTER THE LATER OF THE ORIGINAL
ISSUE DATE HEREOF AND THE LAST DATE ON WHICH TEXTRON FINANCIAL FLOORPLAN MASTER
NOTE TRUST (THE “ISSUER”) OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS
NOTE (OR ANY PREDECESSOR OF THIS NOTE) OR SUCH INTEREST OR PARTICIPATION AND
(Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN
APPLICABLE LAW, ONLY (A) THE ISSUER OR ANY OF THE INITIAL PURCHASERS, (B) PURSUANT
TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER PURCHASING THIS NOTE OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM
NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, IN
EACH CASE IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000, (D) TO A PURCHASER
THAT IS NOT A U.S. PERSON IN AN “OFFSHORE TRANSACTION” WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT IN A PRINCIPAL AMOUNT OF NOT LESS THAN
$100,000 OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN A PRINCIPAL AMOUNT

 

 

OF NOT LESS THAN $100,000,
SUBJECT TO, IN EACH OF (A)-(E), ANY REQUIREMENT OF LAW THAT THE DISPOSITION OF
THIS NOTE OR SUCH INTEREST OR PARTICIPATION BE AT ALL TIMES WITHIN ITS CONTROL,
AND COMPLIANCE WITH THE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER
APPLICABLE JURISDICTION AND WITH THE PROCEDURES SPECIFIED IN THE INDENTURE AND
THE INDENTURE SUPPLEMENT.  ANY OFFER,
SALE, OR TRANSFER PURSUANT TO (E) IS SUBJECT TO TE RIGHT OF THE ISSUER AND THE
INDENTURE TRUSTEE TO REQUIRE THE DELIVERY OF ANY OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.]

 

THIS NOTE (OR A BENEFICIAL
INTEREST OR PARTICIPATION HEREIN) MAY NOT BE TRANSFERRED UNLESS, AFTER GIVING
EFFECT TO THE TRANSFER, THE TRANSFEREE IS HOLDING A PRINCIPAL AMOUNT WHICH IS
EQUAL TO U.S.$100,000 OR INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF.

 

THE HOLDER OF THIS NOTE, BY
ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST OR PARTICIPATION
HEREIN, AGREE TO TREAT THIS NOTE AS INDEBTEDNESS OF THE ISSUER FOR PURPOSES OF
APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR
PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY, INCOME.

 

THE HOLDER OF THIS NOTE (AND
EACH HOLDER OF A BENEFICIAL INTEREST OR PARTICIPATION HEREIN) SHALL BE DEEMED
TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THIS NOTE (OR ANY
BENEFICIAL INTEREST OR PARTICIPATION HEREIN) WITH THE PLAN ASSETS OF AN
“EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO TITLE I
OF ERISA, A “PLAN” AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO HOLD THE PLAN ASSETS OF ANY
OF THE FOREGOING BY REASON OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN
SUCH ENTITY, OR A GOVERNMENTAL PLAN SUBJECT TO APPLICABLE LAW THAT IS
SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA OR SECTION
4975 OF THE CODE; OR (II) THE ACQUISITION AND HOLDING OF THIS NOTE (OR ANY
BENEFICIAL INTEREST OR PARTICIPATION HEREIN) WILL NOT GIVE RISE TO A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
(OR, IN THE CASE OF A GOVERNMENTAL PLAN, ANY SUBSTANTIALLY SIMILAR APPLICABLE
LAW).

 

[Insert the following for Regulation S Temporary Book-Entry
Note]

 

[PRIOR TO THE EXPIRATION OF
THE 40-DAY ‘DISTRIBUTION COMPLIANCE PERIOD’ (AS DEFINED IN REGULATION S UNDER
THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”)), THIS NOTE OR ANY BENEFICIAL
INTEREST OR PARTICIPATION HEREIN MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, A
U.S. PERSON WITHIN THE MEANING OF REGULATION S, EXCEPT TO A PERSON REASONABLY
BELIEVED TO BE A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A AND THE INDENTURE AND THE INDENTURE SUPPLEMENT OR OTHERWISE IN
ACCORDANCE WITH REGULATION S.

 

 

THIS NOTE (OR A BENEFICIAL
INTEREST OR PARTICIPATION HEREIN) MAY NOT BE TRANSFERRED UNLESS, AFTER GIVING
EFFECT TO THE TRANSFER, THE TRANSFEREE IS HOLDING A PRINCIPAL AMOUNT WHICH IS
EQUAL TO U.S.$100,000 OR INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF.]

 

THE HOLDER OF THIS NOTE BY
ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME
INSTITUTE AGAINST THE ISSUER OR US OR SOLICIT OR JOIN OR COOPERATE WITH OR
ENCOURAGE ANY INSTITUTION IN INSTITUTING AGAINST US OR THE ISSUER, ANY
BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS,
OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR
SIMILAR LAW IN CONNECTION WITH ANY OBLIGATION RELATING TO THE NOTES, THE
INDENTURE OR ANY OF THE TRANSACTION DOCUMENTS UNLESS THE HOLDERS OF NOT LESS
THAN SIXTY-SIX AND TWO-THIRDS PERCENT (662/3%) OF THE
OUTSTANDING PRINCIPAL AMOUNT OF EACH CLASS AND EACH SERIES OF NOTES ISSUED BY
THE ISSUER HAVE APPROVED SUCH ACTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

 

	
  Note Number:

  	
   

  	
  $

  
	
  CUSIP Number:

  	
   

  	
   

  
	
  ISIN Number:

  	
   

  	
   

  

 

Textron Financial Floorplan
Master Note Trust (herein referred to as the “Issuer”), a Delaware
statutory trust, for value received, hereby promises to pay to Cede & Co.,
or registered assigns, subject to the following provisions, the principal sum
of [         ] ($[      ]),
or such greater or lesser amount as determined in accordance with the
Indenture, at such times and in such amounts provided below or in the
Indenture.

 

This Note is one of a duly
authorized issue of Class A Floating Rate Term Notes, Series 2006-A (the “Class
A Notes”) issued and to be issued under the Amended and Restated Indenture
dated as of May 26, 2005 (as supplemented by the Series 2006-A Supplement dated
as of April 19, 2006 (as such Series 2006-A Supplement may be amended,
restated, supplemented or otherwise modified from time to time, the “Supplement”)
and as it may be amended, restated, supplemented or otherwise modified from
time to time in accordance with its terms, the “Indenture”) among the
Issuer and The Bank of New York, a New York banking corporation, as Indenture
Trustee (the “Indenture Trustee”, which term includes any successor
trustee as permitted under the Indenture). 
Reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Issuer, the Indenture Trustee and the Holders of the Class A Notes and the
terms upon which the Class A Notes are, and are to be, authenticated and
delivered.  Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Indenture or
the Supplement, as the case may be.

 

The Issuer promises to pay
interest, if any, at the Class A Interest Rate from time to time, on each
Payment Date in each case on the outstanding principal balance hereunder until
such outstanding principal balance is paid or until the Termination Date as
provided in the Supplement.  To the
extent lawful and enforceable, interest on any Class A Interest Shortfall shall
accrue hereon to the extent provided in the Supplement.  The interest and other amounts so payable,
and punctually paid, on any Payment Date will, as provided in the Indenture, be
paid to the Person in whose name this Note (or one or more predecessor Notes)
is registered at the close of business on the Record Date for such interest,
which shall be the last day of the Collection Period preceding such Payment
Date.

 

The principal of this Note
shall be payable on each Payment Date on which funds are permitted or required
to be used for such purpose in accordance with the Supplement and the
Indenture.  The principal of this Note
shall be due and payable no later than the Series 2006-A Stated Maturity Date,
unless previously repaid prior thereto as described in the Indenture.

 

The obligations of the
Issuer under this Note and the Indenture are limited recourse obligations of
the Issuer as provided in the Indenture. 
The payments of principal of, and interest and other amounts with
respect to, this Note are subject to the priority of payments as provided in
the Indenture and Supplement.

 

Unless the certificate of
authentication hereon has been executed by the Indenture Trustee by the manual
signature of one of its Authorized Officers, this Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

 

 

If an Event of Default shall
occur and be continuing, this Note may become or be declared due and payable in
the manner and with the effect provided in the Indenture.

 

Title to Notes shall pass
solely by registration in the Register kept by the Registrar, which for the
Class A Notes initially shall be the Indenture Trustee.

 

No service charge shall be
made for any registration of transfer or exchange of this Note, but the
Indenture Trustee or any Registrar may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including all fees and expenses of
the Indenture Trustee) connected therewith.

 

The Issuer has structured
the Indenture and the Class A Notes with the intention that the Class A Notes
will qualify under applicable tax law as indebtedness, and the Issuer, the
Residual Interestholder, the Servicer and each Holder of a Class A Note or
holder of any interest in a Class A Note by acceptance of its Class A Note (or
interest therein), agrees to treat and to take no action inconsistent with the
treatment of the Class A Notes (or interest therein) for purposes of federal,
state, local and foreign income or franchise taxes and any other tax imposed on
or measure by income, as indebtedness. 
Each Holder of a Class A Note agrees that it will cause any holder of an
interest therein acquiring such interest through it to comply with the
Indenture as to treatment as indebtedness for certain tax purposes.

 

AS PROVIDED IN THE
INDENTURE, THE INDENTURE AND THE NOTES SHALL BE CONSTRUED IN ACCORDANCE WITH,
AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATION LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES).

 

 

IN WITNESS WHEREOF, the Issuer has caused this Note to be
executed by its officer thereunto duly authorized.

 

 

	
   

  	
  TEXTRON FINANCIAL
  FLOORPLAN MASTER NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By:
  SUNTRUST DELAWARE TRUST 

  COMPANY, not in its individual capacity but solely 

  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This
is one of the Notes designated above and referred to in the within-mentioned
Indenture.

 

Dated:  April 19, 2006

 

 

	
   

  	
  THE BANK OF NEW YORK, not
  in its individual

  capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

ASSIGNMENT

 

 

Social Security or other
identifying number of assignee                                  

 

FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto                                  
(name and address of assignee) the within certificate and all rights
thereunder, and hereby irrevocably constitutes and appoints                             
attorney, to transfer said certificate on the books kept for registration
thereof, with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  **

  
	
   

  	
   

  	
  Signature
  Guaranteed:

  

 

**                                  The
signature to this assignment must correspond with the name of the registered
owner as it appears on the face of the within Note in every particular, without
alteration, enlargement or any change whatsoever.

 

 

EXHIBIT A-2

 

FORM OF CLASS B SERIES 2006-A FLOATING RATE TERM NOTE

[REGULATION S TEMPORARY BOOK-ENTRY NOTE]

[REGULATION S PERMANENT BOOK-ENTRY NOTE]

[U.S. RESTRICTED BOOK-ENTRY NOTE]

 

UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED UPON REGISTRATION OF
TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS NOTE IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

 

[Insert the following for U.S. Restricted Book-Entry Note]

 

[THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR THE
SECURITIES LAWS OF ANY OTHER JURISDICTION. NEITHER THIS NOTE NOR ANY BENEFICIAL
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY OTHER APPLICABLE
JURISDICTION. BY ITS ACCEPTANCE HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS
EITHER A “QUALIFIED INSTITUTIONAL BUYER” (A “QUALIFIED INSTITUTIONAL BUYER”)
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)), (2) AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE OR ANY INTEREST OR PARTICIPATION
HEREIN, PRIOR TO THE DATE WHICH IS THE LATER OF (X) TWO YEARS (OR SUCH SHORTER
PERIOD OF TIME AS PERMITTED BY RULE 144(k) OF THE SECURITIES ACT) AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH TEXTRON
FINANCIAL FLOORPLAN MASTER NOTE TRUST (THE “ISSUER”) OR ANY AFFILIATE OF THE
ISSUER WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) OR SUCH
INTEREST OR PARTICIPATION AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED
BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) THE ISSUER OR ANY OF THE INITIAL
PURCHASERS, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THIS NOTE IS ELIGIBLE
FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER PURCHASING THIS NOTE OR SUCH INTEREST OR
PARTICIPATION FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED
INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE
IN RELIANCE ON RULE 144A, IN EACH CASE IN A PRINCIPAL AMOUNT OF NOT LESS THAN
$100,000, (D) TO A PURCHASER THAT IS NOT A U.S. PERSON IN AN “OFFSHORE
TRANSACTION” WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT IN A
PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 OR (E) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN A
PRINCIPAL AMOUNT

 

 

OF NOT LESS THAN $100,000,
SUBJECT TO, IN EACH OF (A)-(E), ANY REQUIREMENT OF LAW THAT THE DISPOSITION OF
THIS NOTE OR SUCH INTEREST OR PARTICIPATION BE AT ALL TIMES WITHIN ITS CONTROL,
AND COMPLIANCE WITH THE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER
APPLICABLE JURISDICTION AND WITH THE PROCEDURES SPECIFIED IN THE INDENTURE AND
THE INDENTURE SUPPLEMENT.  ANY OFFER, SALE,
OR TRANSFER PURSUANT TO (E) IS SUBJECT TO TE RIGHT OF THE ISSUER AND THE
INDENTURE TRUSTEE TO REQUIRE THE DELIVERY OF ANY OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.]

 

THIS NOTE (OR A BENEFICIAL
INTEREST OR PARTICIPATION HEREIN) MAY NOT BE TRANSFERRED UNLESS, AFTER GIVING
EFFECT TO THE TRANSFER, THE TRANSFEREE IS HOLDING A PRINCIPAL AMOUNT WHICH IS
EQUAL TO U.S.$100,000 OR INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF.

 

THE HOLDER OF THIS NOTE, BY
ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST OR
PARTICIPATION HEREIN, AGREE TO TREAT THIS NOTE AS INDEBTEDNESS OF THE ISSUER
FOR PURPOSES OF APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX
LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY, INCOME.

 

THE HOLDER OF THIS NOTE (AND
EACH HOLDER OF A BENEFICIAL INTEREST OR PARTICIPATION HEREIN) SHALL BE DEEMED
TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THIS NOTE (OR ANY
BENEFICIAL INTEREST OR PARTICIPATION HEREIN) WITH THE PLAN ASSETS OF AN “EMPLOYEE
BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO TITLE I OF
ERISA, A “PLAN” AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE “CODE”), AN ENTITY DEEMED TO HOLD THE PLAN ASSETS OF ANY
OF THE FOREGOING BY REASON OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN
SUCH ENTITY, OR A GOVERNMENTAL PLAN SUBJECT TO APPLICABLE LAW THAT IS
SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA OR
SECTION 4975 OF THE CODE; OR (II) THE ACQUISITION AND HOLDING OF THIS NOTE (OR
ANY BENEFICIAL INTEREST OR PARTICIPATION HEREIN) WILL NOT GIVE RISE TO A
NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE (OR, IN THE CASE OF A GOVERNMENTAL PLAN, ANY SUBSTANTIALLY SIMILAR
APPLICABLE LAW).

 

[Insert the following for Regulation S Temporary Book-Entry
Note]

 

[PRIOR TO THE EXPIRATION OF
THE 40-DAY ‘DISTRIBUTION COMPLIANCE PERIOD’ (AS DEFINED IN REGULATION S UNDER
THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”)), THIS NOTE OR ANY BENEFICIAL
INTEREST OR PARTICIPATION HEREIN MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, A
U.S. PERSON WITHIN THE MEANING OF REGULATION S, EXCEPT TO A PERSON REASONABLY
BELIEVED TO BE A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT (“RULE 144A”)) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A AND THE INDENTURE AND THE INDENTURE SUPPLEMENT OR OTHERWISE IN
ACCORDANCE WITH REGULATION S.

 

 

THIS NOTE (OR A BENEFICIAL
INTEREST OR PARTICIPATION HEREIN) MAY NOT BE TRANSFERRED UNLESS, AFTER GIVING
EFFECT TO THE TRANSFER, THE TRANSFEREE IS HOLDING A PRINCIPAL AMOUNT WHICH IS
EQUAL TO U.S.$100,000 OR INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF.]

 

THE HOLDER OF THIS NOTE BY
ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME
INSTITUTE AGAINST THE ISSUER OR US OR SOLICIT OR JOIN OR COOPERATE WITH OR
ENCOURAGE ANY INSTITUTION IN INSTITUTING AGAINST US OR THE ISSUER, ANY
BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS,
OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR
SIMILAR LAW IN CONNECTION WITH ANY OBLIGATION RELATING TO THE NOTES, THE
INDENTURE OR ANY OF THE TRANSACTION DOCUMENTS UNLESS THE HOLDERS OF NOT LESS
THAN SIXTY-SIX AND TWO-THIRDS PERCENT (662/3%) OF THE
OUTSTANDING PRINCIPAL AMOUNT OF EACH CLASS AND EACH SERIES OF NOTES ISSUED BY THE
ISSUER HAVE APPROVED SUCH ACTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

 

	
  Note Number:

  	
   

  	
  $            

  
	
  CUSIP Number:

  	
   

  	
   

  
	
  ISIN Number:

  	
   

  	
   

  

 

Textron Financial Floorplan
Master Note Trust (herein referred to as the “Issuer”), a Delaware
statutory trust, for value received, hereby promises to pay to Cede & Co.,
or registered assigns, subject to the following provisions, the principal sum
of [         ] ($[       ]),
or such greater or lesser amount as determined in accordance with the
Indenture, at such times and in such amounts provided below or in the
Indenture.

 

This Note is one of a duly
authorized issue of Class B Floating Rate Term Notes, Series 2006-A (the “Class
B Notes”) issued and to be issued under the Amended and Restated Indenture
dated as of May 26, 2005 (as supplemented by the Series 2006-A Supplement dated
as of April 19, 2006 (as such Series 2006-A Supplement may be amended,
restated, supplemented or otherwise modified from time to time, the “Supplement”)
and as it may be amended, restated, supplemented or otherwise modified from
time to time in accordance with its terms, the “Indenture”) among the
Issuer and The Bank of New York, a New York banking corporation, as Indenture
Trustee (the “Indenture Trustee”, which term includes any successor
trustee as permitted under the Indenture). 
Reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Issuer, the Indenture Trustee and the Holders of the Class B Notes and the
terms upon which the Class B Notes are, and are to be, authenticated and
delivered.  Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Indenture or
the Supplement, as the case may be.

 

The Issuer promises to pay
interest, if any, at the Class B Interest Rate from time to time, on each
Payment Date in each case on the outstanding principal balance hereunder until
such outstanding principal balance is paid or until the Termination Date as
provided in the Supplement.  To the
extent lawful and enforceable, interest on any Class B Interest Shortfall shall
accrue hereon to the extent provided in the Supplement.  The interest and other amounts so payable,
and punctually paid, on any Payment Date will, as provided in the Indenture, be
paid to the Person in whose name this Note (or one or more predecessor Notes)
is registered at the close of business on the Record Date for such interest,
which shall be the last day of the Collection Period preceding such Payment
Date.

 

The principal of this Note
shall be payable on each Payment Date on which funds are permitted or required
to be used for such purpose in accordance with the Supplement and the
Indenture.  The principal of this Note
shall be due and payable no later than the Series 2006-A Stated Maturity Date,
unless previously repaid prior thereto as described in the Indenture.

 

The obligations of the
Issuer under this Note and the Indenture are limited recourse obligations of
the Issuer as provided in the Indenture. 
The payments of principal of, and interest and other amounts with
respect to, this Note are subject to the priority of payments as provided in
the Indenture and Supplement.

 

Unless the certificate of
authentication hereon has been executed by the Indenture Trustee by the manual
signature of one of its Authorized Officers, this Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

 

If an Event of Default shall
occur and be continuing, this Note may become or be declared due and payable in
the manner and with the effect provided in the Indenture.

 

 

Title to Notes shall pass
solely by registration in the Register kept by the Registrar, which for the
Class B Notes initially shall be the Indenture Trustee.

 

No service charge shall be
made for any registration of transfer or exchange of this Note, but the
Indenture Trustee or any Registrar may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including all fees and expenses of
the Indenture Trustee) connected therewith.

 

The Issuer has structured
the Indenture and the Class B Notes with the intention that the Class B Notes
will qualify under applicable tax law as indebtedness, and the Issuer, the
Residual Interestholder, the Servicer and each Holder of a Class B Note or
holder of any interest in a Class B Note by acceptance of its Class B Note (or
interest therein), agrees to treat and to take no action inconsistent with the
treatment of the Class B Notes (or interest therein) for purposes of federal,
state, local and foreign income or franchise taxes and any other tax imposed on
or measure by income, as indebtedness. 
Each Holder of a Class B Note agrees that it will cause any holder of an
interest therein acquiring such interest through it to comply with the
Indenture as to treatment as indebtedness for certain tax purposes.

 

AS PROVIDED IN THE
INDENTURE, THE INDENTURE AND THE NOTES SHALL BE CONSTRUED IN ACCORDANCE WITH,
AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATION LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES).

 

 

IN WITNESS WHEREOF, the Issuer has caused this Note to be
executed by its officer thereunto duly authorized.

 

	
   

  	
  TEXTRON
  FINANCIAL FLOORPLAN MASTER

  NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By: SUNTRUST
  DELAWARE TRUST 

  COMPANY, not in its individual capacity but solely

  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This
is one of the Notes designated above and referred to in the within-mentioned
Indenture.

 

Dated:  April 19, 2006

 

 

	
   

  	
  THE BANK OF NEW YORK, not
  in its individual

  capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee
                                 

 

FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto                                  
(name and address of assignee) the within certificate and all rights
thereunder, and hereby irrevocably constitutes and appoints                             
attorney, to transfer said certificate on the books kept for registration
thereof, with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  ** 

  
	
   

  	
  Signature Guaranteed:

  

 

**                                  The
signature to this assignment must correspond with the name of the registered
owner as it appears on the face of the within Note in every particular, without
alteration, enlargement or any change whatsoever.

 

 

EXHIBIT A-3

 

FORM OF CLASS C SERIES 2006-A PRINCIPAL ONLY TERM NOTE

 

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR THE
SECURITIES LAWS OF ANY OTHER JURISDICTION. NEITHER THIS NOTE NOR ANY BENEFICIAL
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY OTHER APPLICABLE
JURISDICTION.

 

THE HOLDER OF THIS NOTE BY
ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME
INSTITUTE AGAINST THE ISSUER OR US OR SOLICIT OR JOIN OR COOPERATE WITH OR
ENCOURAGE ANY INSTITUTION IN INSTITUTING AGAINST US OR THE ISSUER, ANY
BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS,
OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR
SIMILAR LAW IN CONNECTION WITH ANY OBLIGATION RELATING TO THE NOTES, THE
INDENTURE OR ANY OF THE TRANSACTION DOCUMENTS UNLESS THE HOLDERS OF NOT LESS
THAN SIXTY-SIX AND TWO-THIRDS PERCENT (662/3%) OF THE
OUTSTANDING PRINCIPAL AMOUNT OF EACH CLASS AND EACH SERIES OF NOTES ISSUED BY
THE ISSUER HAVE APPROVED SUCH ACTION.

 

 

TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

 

	
  Note Number:

  	
   

  	
  $             

  
	
  CUSIP Number:

  	
   

  
	
  ISIN Number:

  	
   

  

 

Textron Financial Floorplan
Master Note Trust (herein referred to as the “Issuer”), a Delaware
statutory trust, for value received, hereby promises to pay to Cede & Co.,
or registered assigns, subject to the following provisions, the principal sum
of [         ] ($[         ]),
or such greater or lesser amount as determined in accordance with the
Indenture, at such times and in such amounts provided below or in the
Indenture.

 

This Note is one of a duly
authorized issue of Class C Principal Only Term Notes, Series 2006-A (the “Class
C Notes”) issued and to be issued under the Amended and Restated Indenture
dated as of May 26, 2005 (as supplemented by the Series 2006-A Supplement dated
as of April 19, 2006 (as such Series 2006-A Supplement may be amended,
restated, supplemented or otherwise modified from time to time, the “Supplement”)
and as it may be amended, restated, supplemented or otherwise modified from
time to time in accordance with its terms, the “Indenture”) among the
Issuer and The Bank of New York, a New York banking corporation, as Indenture
Trustee (the “Indenture Trustee”, which term includes any successor
trustee as permitted under the Indenture). 
Reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Issuer, the Indenture Trustee and the Holders of the Class C Notes and the
terms upon which the Class C Notes are, and are to be, authenticated and
delivered.  Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Indenture or
the Supplement, as the case may be.

 

This Note shall not bear
interest.

 

The principal of this Note
shall be payable on each Payment Date on which funds are permitted or required
to be used for such purpose in accordance with the Supplement and the
Indenture.  The principal of this Note shall
be due and payable no later than the Series 2006-A Stated Maturity Date, unless
previously repaid prior thereto as described in the Indenture.

 

The obligations of the
Issuer under this Note and the Indenture are limited recourse obligations of
the Issuer as provided in the Indenture. 
The payments of principal of, and other amounts with respect to, this
Note are subject to the priority of payments as provided in the Indenture and
Supplement.

 

Unless the certificate of
authentication hereon has been executed by the Indenture Trustee by the manual
signature of one of its Authorized Officers, this Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

 

If an Event of Default shall
occur and be continuing, this Note may become or be declared due and payable in
the manner and with the effect provided in the Indenture.

 

Title to Notes shall pass
solely by registration in the Register kept by the Registrar, which for the
Class C Notes initially shall be the Indenture Trustee.  Neither this Note nor any interest herein may
be sold, pledged, participated, transferred, disposed of or otherwise alienated
(each, a “Transfer”), and the Registrar will not recognize any Transfer
or purported Transfer of this Note, unless prior to such Transfer

 

 

or purported Transfer the
Indenture Trustee and the Registrar have received an Opinion of Counsel to the
effect that, for federal income tax purposes, such Transfer will not cause the
Issuer to be characterized as an association or publicly traded partnership as
a corporation.  Any Transfer or purported
Transfer of this Note in violation of the preceding sentence shall be void ab initio and of no effect.

 

No service charge shall be
made for any registration of transfer or exchange of this Note, but the
Indenture Trustee or any Registrar may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including all fees and expenses of
the Indenture Trustee) connected therewith.

 

AS PROVIDED IN THE
INDENTURE, THE INDENTURE AND THE NOTES SHALL BE CONSTRUED IN ACCORDANCE WITH,
AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATION LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES).

 

 

IN WITNESS WHEREOF, the Issuer has caused this Note to be
executed by its officer thereunto duly authorized.

 

	
   

  	
  TEXTRON FINANCIAL
  FLOORPLAN MASTER

  NOTE TRUST, as Issuer

  
	
   

  	
   

  
	
   

  	
  By:
  SUNTRUST DELAWARE TRUST

  COMPANY, not in its individual capacity but solely

  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This
is one of the Notes designated above and referred to in the within-mentioned
Indenture.

 

Dated:  April 19, 2006

 

	
   

  	
  THE BANK OF NEW YORK, not
  in its individual

  capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

ASSIGNMENT

 

Social Security or other
identifying number of assignee                                  

 

FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto                                  
(name and address of assignee) the within certificate and all rights
thereunder, and hereby irrevocably constitutes and appoints                             
attorney, to transfer said certificate on the books kept for registration
thereof, with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  **

  
	
   

  	
  Signature
  Guaranteed:

  

 

**                                  The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note in every particular, without alteration, enlargement or any
change whatsoever.

 

 

EXHIBIT B

 

[RESERVED]

 

 

EXHIBIT C

 

FORM
OF CERTIFICATE OF BENEFICIAL OWNERSHIP

 

[Euroclear Bank S.A./N.V., as operator of the
Euroclear System]

 

[Clearstream Banking, société anonyme]

 

Re:                               TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

$[                 ]

 

Reference is hereby made to
the Amended and Restated Indenture dated as of May 26, 2005 between The Bank of
New York (the “Indenture Trustee”) and Textron Financial Floorplan Master Note
Trust (the “Issuer”) (as supplemented by the Series 2006-A Supplement, dated as
of April 19, 2006, among the Company, Indenture Trustee and Textron Financial
Corporation, as servicer, the “Indenture”). 
Capitalized terms not defined in this Certificate shall have the
meanings given to them in the Indenture.

 

This is to certify that as
of the date hereof, and except as set forth below, the above-captioned [Class
A] [Class B] Notes (the “Securities”) held by you for our account are
beneficially owned by (a) persons that are not U.S. person(s) or (b) Qualified
Institutional Buyers.  As used in this
paragraph, the term “U.S. person” has the meaning given to it by Regulation S
under the Securities Act.

 

As used herein, “United
States” has the meaning given to it by Regulation S under the Securities Act.

 

We undertake to advise you
promptly by tested telex on or prior to the date on which you intend to submit
your certification relating to the Securities held by you for our account in
accordance with your operating procedures in any applicable statement herein is
not correct on such date, and in the absence of any such notification it may be
assumed that this certification applies as of such date.

 

This certification excepts
and does not relate to $              
of such interest in the above Securities in respect of which we are not able to
certify and as to which we understand exchange and delivery of definitive
Securities (or, if relevant, exercise of any rights or collection of any
interest) cannot be made until we do so certify.

 

We understand that this
certification is required in connection with certain securities laws of the
United States.  In connection therewith,
if administrative or legal proceedings are commenced or threatened in
connection with which this certification is or would be relevant, we
irrevocably authorize you to produce this certification to any party in such
proceedings.

 

Date:               ,      (1)

 

(1)                                  Not
earlier than 15 days prior to the certification event to which the
certification relates.

 

 

	
  By: 

  	
   

  	
   

  

 

As, or as agent for, the beneficial owner(s)
of the Securities to which this certificate relates.

 

 

EXHIBIT D

 

FORM
OF TRANSFER CERTIFICATE FOR TRANSFER OR

EXCHANGE
FROM REGULATION S BOOK-ENTRY NOTE

TO
U.S. RESTRICTED BOOK-ENTRY NOTE

 

[Indenture Trustee or Transfer Agent]

[Address]

 

Re:                             TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

$[                          ]

 

Reference is hereby made to
the Amended and Restated Indenture dated as of May 26, 2005 between The Bank of
New York (the “Indenture Trustee”) and Textron Financial Floorplan Master Note
Trust (the “Issuer”) (as supplemented by the Series 2006-A Supplement, dated as
of April 19, 2006, among the Company, Indenture Trustee and Textron Financial
Corporation, as servicer, the “Indenture”). 
Capitalized terms not defined in this Certificate shall have the
meanings given to them in the Indenture.

 

This letter relates to                  
principal amount of [Class A] [Class B] Notes (the “Securities”) which are held
in the form of the Regulation S [Temporary] [Permanent] Book-Entry Note (CUSIP
No.       ) (ISIN Code       )
[(Common Code       ) with [[Euroclear]
Clearstream, Luxembourg]] through The Depository Trust Company by or on behalf
of transferor as beneficial owner (the “Transferor”).  The Transferor has requested an exchange or
transfer of its interest in the Securities for a beneficial interest in the
U.S. Restricted Book-Entry Note (CUSIP No.     ).

 

In connection with such
request, and in respect of the 
Securities, the Transferor does hereby certify that such Securities are
being transferred in accordance with Rule 144A under the United States
Securities Act of 1933, as amended (the “Securities Act”), to a transferee that
the Transferor reasonably believes is purchasing the Securities for its own
account or an account with respect to which the transferee exercises sole
investment discretion and the transferee and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A, in each case in a
transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other
jurisdiction.

 

[REMAINDER
OF THIS PAGE LEFT BLANK INTENTIONALLY]

 

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company and the dealers of the Securities.

 

	
   

  	
  [Insert Name of
  Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
						

 

The undersigned represents
and warrants that it is purchasing the Securities for its own account or an
account with respect to which it exercises sole investment discretion and that
it and any such account is a Qualified Institutional Buyer, and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it
has received such information regarding the Issuer as the undersigned has
requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

	
   

  	
  [Insert Name of
  Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
							

 

 

EXHIBIT E

 

FORM OF TRANSFER CERTIFICATE

FOR EXCHANGE OR TRANSFER FROM

U.S. RESTRICTED BOOK-ENTRY NOTE TO REGULATION S

BOOK-ENTRY NOTE

 

[Indenture Trustee or Transfer Agent]

[Address]

 

Re:                               TEXTRON FINANCIAL FLOORPLAN MASTER NOTE TRUST

$[                          ]

 

Reference is hereby made to
the Amended and Restated Indenture dated as of May 26, 2005 between The Bank Of
New York (the “Indenture Trustee”) and Textron Financial Floorplan Master Note
Trust (the “Issuer”) (as supplemented by the Series 2006-A Supplement, dated as
of April 19, 2006, among the Company, Indenture Trustee and Textron Financial
Corporation, as servicer, the “Indenture”). 
Capitalized terms not defined in this Certificate shall have the
meanings given to them in the Indenture.

 

This letter relates to               
principal amount of [Class A] [Class B] Notes (the “Securities”) represented by
a beneficial interest in the U.S. Restricted Book-Entry Note (CUSIP No.    )
held with The Depository Trust Company by or on behalf of [transferor] as
beneficial owner (the “Transferor”).  The
Transferor has requested an exchange or transfer of its beneficial interest for
an interest in the Regulation S [Temporary] [Permanent] Book-Entry Note (CUSIP
No.      ) (ISIN Code       )
(Common Code       ) to be held [with [Euroclear]
[Clearstream, Luxembourg]] through the Depository.

 

In
connection with such request and in respect of the Securities, the Transferor
does hereby certify that such exchange or transfer has been effected in
accordance with the transfer restrictions set forth in the Securities and
pursuant to and in accordance with Regulation S under the Securities Act, and
accordingly the Transferor does hereby certify that:

 

(1)                                  the offer of the Securities was not made to a
person in the United States;

 

(2)                                  (A)                              at the time the buy order was originated, the transferee was outside
the United States or the Transferor and any person acting on its behalf
reasonably believed that the transferee was outside the United States, or

 

(B)                                the transaction was executed in, on or through
the facilities of a designated offshore securities market and neither the
Transferor nor any person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States;

 

(3)                                  no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as
applicable;

 

(4)                                  the transaction is not part of a plan or
scheme to evade the registration requirements of the Securities Act.] [Include
if transfer is to the Regulation S Temporary Book-entry Note:]; and

 

 

(5)                                  upon completion of the transaction, the
beneficial interest being transferred as described above will be held with The
Depository Trust Company through Euroclear or Clearstream, Luxembourg or both
(Common Code     [(ISIN
Code          )]).]

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company and the dealers.

 

	
   

  	
  [Insert Name of
  Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
								

 

The undersigned represents
and warrants that it is purchasing the Securities for its own account or an
account with respect to which it exercises sole investment discretion and that
it and any such account is not a “U.S. Person” within the meaning of Regulation
S and is aware that the sale to it is being made in reliance on Rule 903
or 904 under Regulation S and that it is aware that the transferor is relying
upon the undersigned’s foregoing representations in order to claim the
exemption from registration provided by Regulation S.

 

	
   

  	
  [Insert Name of
  Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:EXHIBIT
4.3

 

FORM OF
INDENTURE

 

 

ALEXANDRIA REAL ESTATE EQUITIES, INC.

 

 

TO

 

 

 

Trustee

 

 

 

INDENTURE

 

 

Dated as of          ,
200  

 

 

Alexandria Real Estate Equities, Inc.

Certain Sections of this Indenture relating to

Sections 3.10 through 3.18, inclusive, of the

Trust Indenture Act of 1939, as amended:

 

	
  Provisions of Trust

  Indenture Act of 1939,

  as amended

  	
   

  	
  Indenture Section

  
	
  § 310(a)(1)

  	
   

  	
   

  	
  6.9

  
	
  (a)(2)

  	
   

  	
   

  	
  6.9

  
	
  (a)(3)

  	
   

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
   

  	
  Not Applicable

  
	
  (b)

  	
   

  	
   

  	
  6.8, 6.10

  
	
  (c)

  	
   

  	
   

  	
  Not Applicable

  
	
  § 311(a)

  	
   

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
   

  	
  6.13

  
	
  (c)

  	
   

  	
   

  	
  Not Applicable

  
	
  § 312(a)

  	
   

  	
   

  	
  7.1, 7.2(a)

  
	
  (b)

  	
   

  	
   

  	
  7.2(b)

  
	
  (c)

  	
   

  	
   

  	
  7.2(c)

  
	
  § 313(a)

  	
   

  	
   

  	
  7.3(a)

  
	
  (b)

  	
   

  	
   

  	
  7.3(a)

  
	
  (c)

  	
   

  	
   

  	
  7.3(a)

  
	
  (d)

  	
   

  	
   

  	
  7.3(b)

  
	
  § 314(a)

  	
   

  	
   

  	
  7.4

  
	
  (a)(4)

  	
   

  	
   

  	
  1.1, 10.4

  
	
  (b)

  	
   

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
   

  	
  1.2

  
	
  (c)(2)

  	
   

  	
   

  	
  1.2

  
	
  (c)(3)

  	
   

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
   

  	
  1.2

  
	
  § 315(a)

  	
   

  	
   

  	
  6.1

  
	
  (b)

  	
   

  	
   

  	
  6.2

  
	
  (c)

  	
   

  	
   

  	
  6.1

  
	
  (d)

  	
   

  	
   

  	
  6.1

  
	
  (e)

  	
   

  	
   

  	
  5.14

  
	
  § 316(a)

  	
   

  	
   

  	
  1.1

  
	
  (a)(1)(A)

  	
   

  	
   

  	
  5.2, 5.12

  
	
  (a)(1)(B)

  	
   

  	
   

  	
  5.13

  
	
  (a)(2)

  	
   

  	
   

  	
  Not Applicable

  
	
  (b)

  	
   

  	
   

  	
  5.8

  
	
  (c)

  	
   

  	
   

  	
  1.4(c)

  
	
  § 317(a)(1)

  	
   

  	
   

  	
  5.3

  
	
  (a)(2)

  	
   

  	
   

  	
  5.4

  
	
  (b)

  	
   

  	
   

  	
  10.3

  
	
  § 318(a)

  	
   

  	
   

  	
  1.7

  

 

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  DEFINITIONS AND OTHER PROVISIONS
  OF GENERAL APPLICATION

  	
  1

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
  1

  
	
  Section 1.2

  	
   

  	
  Compliance Certificates and Opinions

  	
  6

  
	
  Section 1.3

  	
   

  	
  Form of Documents Delivered to Trustee

  	
  6

  
	
  Section 1.4

  	
   

  	
  Acts of Holders; Record Dates

  	
  7

  
	
  Section 1.5

  	
   

  	
  Notices, Etc., to Trustee and Company

  	
  8

  
	
  Section 1.6

  	
   

  	
  Notice to Holders; Waiver

  	
  8

  
	
  Section 1.7

  	
   

  	
  Conflict with Trust Indenture Act

  	
  8

  
	
  Section 1.8

  	
   

  	
  Effect of Headings and Table of Contents

  	
  8

  
	
  Section 1.9

  	
   

  	
  Successors and Assigns

  	
  9

  
	
  Section 1.10

  	
   

  	
  Separability Clause

  	
  9

  
	
  Section 1.11

  	
   

  	
  Benefits of Indenture

  	
  9

  
	
  Section 1.12

  	
   

  	
  Governing Law

  	
  9

  
	
  Section 1.13

  	
   

  	
  Legal Holidays

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  SECURITY FORMS

  	
  9

  
	
  Section 2.1

  	
   

  	
  Forms Generally

  	
  9

  
	
  Section 2.2

  	
   

  	
  Form of Face of Security

  	
  10

  
	
  Section 2.3

  	
   

  	
  Form of Reverse of Security

  	
  11

  
	
  Section 2.4

  	
   

  	
  Additional Provisions Required in Book-Entry
  Security

  	
  15

  
	
  Section 2.5

  	
   

  	
  Form of Trustee’s Certificate of Authentication

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  THE SECURITIES

  	
  15

  
	
  Section 3.1

  	
   

  	
  Amount Unlimited; Issuable in Series

  	
  15

  
	
  Section 3.2

  	
   

  	
  Denominations

  	
  17

  
	
  Section 3.3

  	
   

  	
  Execution, Authentication, Delivery and Dating

  	
  18

  
	
  Section 3.4

  	
   

  	
  Temporary Securities

  	
  19

  
	
  Section 3.5

  	
   

  	
  Registration, Registration of Transfer and Exchange

  	
  19

  
	
  Section 3.6

  	
   

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
  21

  
	
  Section 3.7

  	
   

  	
  Payment of Interest; Interest Rights Preserved

  	
  21

  
	
  Section 3.8

  	
   

  	
  Persons Deemed Owners

  	
  23

  
	
  Section 3.9

  	
   

  	
  Cancellation

  	
  23

  
	
  Section 3.10

  	
   

  	
  Computation of Interest

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  SATISFACTION AND DISCHARGE

  	
  23

  
	
  Section 4.1

  	
   

  	
  Satisfaction and Discharge of Indenture

  	
  23

  
	
  Section 4.2

  	
   

  	
  Application of Trust Money

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  REMEDIES

  	
  25

  
	
  Section 5.1

  	
   

  	
  Events of Default

  	
  25

  
	
  Section 5.2

  	
   

  	
  Acceleration of Maturity; Rescission and Annulment

  	
  26

  
	
  Section 5.3

  	
   

  	
  Collection of Indebtedness and Suits for Enforcement
  by Trustee

  	
  27

  
						

 

i

 

	
  Section 5.4

  	
   

  	
  Trustee May File Proofs of Claim

  	
  27

  
	
  Section 5.5

  	
   

  	
  Trustee May Enforce Claims Without Possession of
  Securities

  	
  28

  
	
  Section 5.6

  	
   

  	
  Application of Money Collected

  	
  28

  
	
  Section 5.7

  	
   

  	
  Limitation on Suits

  	
  28

  
	
  Section 5.8

  	
   

  	
  Unconditional Right of Holders to Receive Principal,
  Premium and Interest

  	
  29

  
	
  Section 5.9

  	
   

  	
  Restoration of Rights and Remedies

  	
  29

  
	
  Section 5.10

  	
   

  	
  Rights and Remedies Cumulative

  	
  29

  
	
  Section 5.11

  	
   

  	
  Delay or Omission Not Waiver

  	
  29

  
	
  Section 5.12

  	
   

  	
  Control by Holders

  	
  30

  
	
  Section 5.13

  	
   

  	
  Waiver of Past Defaults

  	
  30

  
	
  Section 5.14

  	
   

  	
  Undertaking for Costs

  	
  30

  
	
  Section 5.15

  	
   

  	
  Waiver of Stay or Extension Laws

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  THE TRUSTEE

  	
  31

  
	
  Section 6.1

  	
   

  	
  Certain Duties and Responsibilities

  	
  31

  
	
  Section 6.2

  	
   

  	
  Notice of Defaults

  	
  31

  
	
  Section 6.3

  	
   

  	
  Certain Rights of Trustee

  	
  31

  
	
  Section 6.4

  	
   

  	
  Not Responsible for Recitals or Issuance of
  Securities

  	
  32

  
	
  Section 6.5

  	
   

  	
  May Hold Securities

  	
  32

  
	
  Section 6.6

  	
   

  	
  Money Held in Trust

  	
  33

  
	
  Section 6.7

  	
   

  	
  Compensation and Reimbursement

  	
  33

  
	
  Section 6.8

  	
   

  	
  Disqualification; Conflicting Interests

  	
  33

  
	
  Section 6.9

  	
   

  	
  Corporate Trustee Required; Eligibility

  	
  33

  
	
  Section 6.10

  	
   

  	
  Resignation and Removal; Appointment of Successor

  	
  34

  
	
  Section 6.11

  	
   

  	
  Acceptance of Appointment by Successor

  	
  35

  
	
  Section 6.12

  	
   

  	
  Merger, Conversion, Consolidation or Succession to
  Business

  	
  36

  
	
  Section 6.13

  	
   

  	
  Preferential Collection of Claims Against Company

  	
  36

  
	
  Section 6.14

  	
   

  	
  Appointment of Authenticating Agent

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  HOLDERS’ LISTS AND REPORTS BY
  TRUSTEE AND COMPANY

  	
  38

  
	
  Section 7.1

  	
   

  	
  Company to Furnish Trustee Names and Addresses of Holders

  	
  38

  
	
  Section 7.2

  	
   

  	
  Preservation of Information; Communications to
  Holders

  	
  38

  
	
  Section 7.3

  	
   

  	
  Reports by Trustee

  	
  38

  
	
  Section 7.4

  	
   

  	
  Reports by Company

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  CONSOLIDATION, MERGER,
  CONVEYANCE, TRANSFER OR LEASE

  	
  39

  
	
  Section 8.1

  	
   

  	
  Company May Consolidate, Etc., Only on Certain Terms

  	
  39

  
	
  Section 8.2

  	
   

  	
  Successor Substituted

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  SUPPLEMENTAL INDENTURES

  	
  40

  
	
  Section 9.1

  	
   

  	
  Supplemental Indentures Without Consent of Holders

  	
  40

  
					

 

ii

 

	
  Section 9.2

  	
   

  	
  Supplemental Indentures with Consent of Holders

  	
  41

  
	
  Section 9.3

  	
   

  	
  Execution of Supplemental Indentures

  	
  42

  
	
  Section 9.4

  	
   

  	
  Effect of Supplemental Indentures

  	
  42

  
	
  Section 9.5

  	
   

  	
  Conformity with Trust Indenture Act

  	
  42

  
	
  Section 9.6

  	
   

  	
  Reference in Securities to Supplemental Indentures

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  COVENANTS

  	
  43

  
	
  Section 10.1

  	
   

  	
  Payment of Principal, Premium and Interest

  	
  43

  
	
  Section 10.2

  	
   

  	
  Maintenance of Office or Agency

  	
  43

  
	
  Section 10.3

  	
   

  	
  Money for Securities Payments to Be Held in Trust

  	
  43

  
	
  Section 10.4

  	
   

  	
  Statement by Officers as to Default

  	
  44

  
	
  Section 10.5

  	
   

  	
  Existence

  	
  45

  
	
  Section 10.6

  	
   

  	
  Payment of Taxes and Other Claims

  	
  45

  
	
  Section 10.7

  	
   

  	
  Waiver of Certain Covenants

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  REDEMPTION OF SECURITIES

  	
  45

  
	
  Section 11.1

  	
   

  	
  Applicability of Article

  	
  45

  
	
  Section 11.2

  	
   

  	
  Election to Redeem; Notice to Trustee

  	
  45

  
	
  Section 11.3

  	
   

  	
  Selection by Trustee of Securities to Be Redeemed

  	
  46

  
	
  Section 11.4

  	
   

  	
  Notice of Redemption

  	
  46

  
	
  Section 11.5

  	
   

  	
  Deposit of Redemption Price

  	
  47

  
	
  Section 11.6

  	
   

  	
  Securities Payable on Redemption Date

  	
  47

  
	
  Section 11.7

  	
   

  	
  Securities Redeemed in Part

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  SINKING FUNDS

  	
  48

  
	
  Section 12.1

  	
   

  	
  Applicability of Article

  	
  48

  
	
  Section 12.2

  	
   

  	
  Satisfaction of Sinking Fund Payments with
  Securities

  	
  48

  
	
  Section 12.3

  	
   

  	
  Redemption of Securities for Sinking Fund

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  DEFEASANCE AND COVENANT
  DEFEASANCE

  	
  49

  
	
  Section 13.1

  	
   

  	
  Applicability of Article; Company’s Option to Effect
  Defeasance or Covenant Defeasance

  	
  49

  
	
  Section 13.2

  	
   

  	
  Defeasance and Discharge

  	
  49

  
	
  Section 13.3

  	
   

  	
  Covenant Defeasance

  	
  49

  
	
  Section 13.4

  	
   

  	
  Conditions to Defeasance or Covenant Defeasance

  	
  50

  
	
  Section 13.5

  	
   

  	
  Deposited Money and U.S. Government Obligations to
  be Held in Trust; Other Miscellaneous Provisions

  	
  52

  
	
  Section 13.6

  	
   

  	
  Reinstatement

  	
  52

  
					

 

iii

 

INDENTURE, dated as of                    ,
200   between Alexandria Real Estate Equities, Inc., a corporation
duly organized and existing under the laws of Maryland (herein called the “Company”),
having its principal office at 385 East Colorado Boulevard, Suite 299,
California 91101, and                 
a                 
duly organized and existing under the laws of                 ,
as Trustee (herein called the “Trustee”).

 

RECITALS OF THE COMPANY

 

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

 

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

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE
I

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

Section 1.1             Definitions.

 

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

 

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

 

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

 

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

 

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

 

1

 

“Act,” when used with respect to any Holder, has the
meaning specified in Section 1.4.

 

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

 

“Authenticating Agent” means any Person authorized by
the Trustee pursuant to Section 6.14 to act on behalf of the Trustee to
authenticate Securities of one or more series.

 

“Board of Directors” means either the board of
directors of the Company or any duly authorized committee of that board.

 

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

 

“Book-Entry Security” means a Security in the form
prescribed in Section 2.4 evidencing all or part of a series of Securities,
issued to the Depository for such series or its nominee, and registered in the
name of such Depository or nominee.

 

“Business Day,” when used with respect to any Place of
Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in that Place of Payment are authorized
or obligated by law or executive order to close.

 

“Commission” means the Securities and Exchange
Commission, as from time to time constituted, created under the Securities
Exchange Act of 1934, or, if at any time after the execution of this instrument
such Commission is not existing and performing the duties now assigned to it
under the Trust Indenture Act, then the body performing such duties at such
time.

 

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

 

“Company Request” or “Company Order” means a written
request or order signed in the name of the Company by its Chief Executive
Officer, its President, a Senior Vice President or a Vice President, and by its
Chief Financial Officer, its Treasurer, an Assistant Treasurer, its Secretary
or an Assistant Secretary, and delivered to the Trustee.

 

“Corporate Trust Office” means the principal office of
the Trustee in                 ,
                
at which at any particular time its corporate trust business shall be
administered.

 

“Corporation” means a corporation, association,
company, joint-stock company or business trust.

 

“Defaulted Interest” has the meaning specified in
Section 3.7.

 

2

 

“Depository” means, with respect to the Securities of
any series issuable or issued in whole or in part in the form of one or more
Book-Entry Securities, the Person designated as Depository for such series by
the Company pursuant to Section 3.1, which Person shall be a clearing agency
registered under the Securities Exchange Act of 1934, as amended.

 

“Event of Default” has the meaning specified in
Section 5.1.

 

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

 

“Indenture” means this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the Trust Indenture Act that are
deemed to be a part of and govern this instrument and any such supplemental
indenture, respectively. The term “Indenture” shall also include the terms of
particular series of Securities established as contemplated by Section 3.1.

 

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

 

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

 

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

 

“Mortgage” means any mortgage, pledge, lien, security
interest, conditional sale or other title retention agreement or other similar
encumbrance.

 

“Officers’ Certificate” means a certificate signed by
the Chief Executive Officer, the President, a Senior Vice President or a Vice
President, and by the Chief Financial Officer, the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Company, and
delivered to the Trustee. One of the officers signing an Officers’ Certificate
given pursuant to Section 10.4 shall be the principal executive, financial or
accounting officer of the Company.

 

“Opinion of Counsel” means a written opinion of
counsel, who may be counsel for the Company, and who shall be acceptable to the
Trustee.

 

“Original Issue Discount Security” means any Security
which provides for an amount less than the principal amount thereof to be due
and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 5.2.

 

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

 

3

 

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

 

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

 

(iii)          Securities
which have been paid pursuant to Section 3.6 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have
been presented to the Trustee proof satisfactory to it that such Securities are
held by a bona fide purchaser in whose hands such Securities are valid
obligations of the Company;

 

provided, however, that in
determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, (i) the principal amount of an
Original Issue Discount Security that shall be deemed to be Outstanding shall
be the amount of the principal thereof that would be due and payable as of the
date of such determination upon acceleration of the Maturity thereof pursuant
to Section 5.2, (ii) the principal amount of a Security denominated in one or
more foreign currencies or currency units shall be the U.S. dollar equivalent,
determined in the manner provided as contemplated by Section 3.1 on the date of
original issuance of such Security, of the principal amount (or, in the case of
an Original Issue Discount Security, the U.S. dollar equivalent on the date of
original issuance of such Security of the amount determined as provided in (i)
above) of such Security, and (iii) Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities which the Trustee knows to be so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to such Securities and that the pledgee
is not the Company or any other obligor upon the Securities or any Affiliate of
the Company or of such other obligor.

 

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

 

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

 

“Place of Payment,” when used with respect to the
Securities of any series, means the place or places where the principal of and
any premium and interest on the Securities of that series are payable as
specified as contemplated by Section 3.1.

 

4

 

“Predecessor Security” of any particular Security
means every previous Security evidencing all or a portion of the same debt as
that evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 3.6 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

 

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

 

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

 

“Regular Record Date” for the interest payable on any
Interest Payment Date on the Securities of any series means the date specified
for that purpose as contemplated by Section 3.1.

 

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

 

“Security Register” and “Security Registrar” have the
respective meanings specified in Section 3.5.

 

“Special Record Date” for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 3.7.

 

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

 

“Subsidiary” means any corporation or other entity of
which a majority of the voting power of the voting equity securities are owned
directly or indirectly by the Company.

 

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

 

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

 

“Vice President,” when used with respect to the
Company or the Trustee, means any vice president, whether or not designated by
a number or a word or words added before or after the title “vice president”.

 

5

 

Section 1.2             Compliance
Certificates and Opinions.

 

Upon any application or request by the Company to the
Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee such certificates and opinions as may be required
under the Trust Indenture Act. Each such certificate or opinion shall be given
in the form of an Officers’ Certificate, if to be given by an officer of the
Company, or an Opinion of Counsel, if to be given by counsel, and shall comply
with the requirements of the Trust Indenture Act and any other requirements set
forth in this Indenture.

 

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

 

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

 

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

 

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

 

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

 

Section 1.3             Form
of Documents Delivered to Trustee.

 

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

 

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

 

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

 

6

 

Section 1.4             Acts
of Holders; Record Dates.

 

(a)           Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.1) conclusive in favor of the Trustee and the
Company, if made in the manner provided in this Section.

 

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

 

(c)           The
Company may, in the circumstances permitted by the Trust Indenture Act, fix any
day as the record date for the purpose of determining the Holders of Securities
of any series entitled to give or take any request, demand, authorization,
direction, notice, consent, waiver or other action, or to vote on any action,
authorized or permitted to be given or taken by Holders of Securities of such
series. If not set by the Company prior to the first solicitation of a Holder
of Securities of such series made by any Person in respect of any such action,
or, in the case of any such vote, prior to such vote, the record date for any
such action or vote shall be the 30th day (or, if later, the date of the most
recent list of Holders required to be provided pursuant to Section 7.1) prior
to such first solicitation or vote, as the case may be. With regard to any
record date for action to be taken by the Holders of one or more series of Securities,
only the Holders of Securities of such series on such date (or their duly
designated proxies) shall be entitled to give or take, or vote on, the relevant
action.

 

(d)           The
ownership of Securities shall be proved by the Security Register.

 

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

 

7

 

Section 1.5             Notices,
Etc., to Trustee and Company.

 

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

 

(1)           the
Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee
at its Corporate Trust Office, Attention: 
                                      ,
or

 

(2)           the
Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and
mailed, first-class postage prepaid, to the Company addressed to it at the
address of its principal office specified in the first paragraph of this
instrument, Attention: General Counsel or at any other address previously
furnished in writing to the Trustee by the Company.

 

Section 1.6             Notice
to Holders; Waiver.

 

Where this Indenture provides for notice to Holders of
any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder affected by such event, at his address as it appears in the
Security Register, not later than the latest date (if any), and not earlier
than the earliest date (if any), prescribed for the giving of such notice. In
any case where notice to Holders is given by mail, neither the failure to mail
such notice, nor any defect in any notice so mailed, to any particular Holder
shall affect the sufficiency of such notice with respect to other Holders. Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

 

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

 

Section 1.7             Conflict
with Trust Indenture Act.

 

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

 

Section 1.8             Effect
of Headings and Table of Contents.

 

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

 

8

 

Section 1.9             Successors
and Assigns.

 

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

 

Section 1.10           Separability
Clause.

 

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

 

Section 1.11           Benefits
of Indenture.

 

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

 

Section 1.12           Governing
Law.

 

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

 

Section 1.13           Legal
Holidays.

 

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

 

ARTICLE
II

SECURITY FORMS

 

Section 2.1             Forms
Generally.

 

The Securities of each series shall be in
substantially the form set forth in this Article, or in such other form as
shall be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution of the Securities. If the form of Securities of
any series is established by action 

 

9

 

taken pursuant to a Board Resolution, a copy of an appropriate record
of such action shall be certified by the Secretary or an Assistant Secretary of
the Company and delivered to the Trustee at or prior to the delivery of the
Company Order contemplated by Section 3.3 for the authentication and delivery
of such Securities.

 

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

 

Section 2.2             Form
of Face of Security.

 

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

 

Alexandria Real Estate Equities, Inc.

 

	
  No. 

  	
   

  	
  $

  

 

Alexandria Real Estate Equities, Inc., a corporation
duly organized and existing under the laws of Maryland (herein called the “Company,”
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to                                                                                                         ,
or registered assigns, the principal sum of                                                            Dollars
on                        
                       
[if the Security is to bear interest prior to Maturity, insert –, and to
pay interest thereon from                        or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semi-annually on                        and                       in
each year, commencing                       ,
at the rate of         % per annum,
until the principal hereof is paid or made available for payment [if
applicable, insert – , and (to the extent that the payment of such
interest shall be legally enforceable) at the rate of        %
per annum on any overdue principal and premium and on any overdue installment
of interest]. The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the        or        (whether
or not a Business Day), as the case may be, next preceding such Interest
Payment Date. Any such interest not so punctually paid or duly provided for
will forthwith cease to be payable to the Holder on such Regular Record Date
and may either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture].

 

[If the Security is not to bear interest prior to
Maturity, insert – The principal of this Security shall not bear
interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the
overdue principal of this 

 

10

 

Security shall bear interest at the rate of        %
per annum (to the extent that the payment of such interest shall be legally
enforceable), which shall accrue from the date of such default in payment to
the date payment of such principal has been made or duly provided for. Interest
on any overdue principal shall be payable on demand. Any such interest on any
overdue principal that is not so paid on demand shall bear interest at the rate
of        % per annum (to the extent
that the payment of such interest shall be legally enforceable), which shall
accrue from the date of such demand for payment to the date payment of such
interest has been made or duly provided for, and such interest shall also be
payable on demand.]

 

Payment of the principal of (and premium, if any) and
[if applicable insert – any such] interest on this Security will be
made at the office or agency of the Company maintained for that purpose in                   ,
                      ,
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts [if
applicable insert –; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register].

 

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

 

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

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed under its corporate seal.

 

Dated:

 

	
  ALEXANDRIA REAL ESTATE EQUITIES, INC.

  
	
   

  
	
   

  	
  By 

  	
   

  

 

Attest:

 

 

Section 2.3             Form
of Reverse of Security.

 

This Security is one of a duly authorized issue of
securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of                             
(herein called the “Indenture”), between the Company and                 ,
as Trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the 

 

11

 

Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof[, limited in
aggregate principal amount to $                  ].

 

[If applicable, insert – The Securities of
this series are subject to redemption upon not less than 30 days’ notice by
mail, [if applicable, insert – (1) on                 in
any year commencing with the year               and
ending with the year           through
operation of the sinking fund for this series at a Redemption Price equal to
100% of the principal amount, and (2)] at any time [on or after                             ,
20        ], as a whole or in part, at
the election of the Company, at the following Redemption Prices (expressed as
percentages of the principal amount): If redeemed [on or before                       ,     %,
and if redeemed] during the 12-month period beginning                        of
the years indicated,

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

[If applicable, insert –  The Securities of this series are subject to
redemption upon not less than 30 days’ notice by mail, (1) on               
in any year commencing with the year                
and ending with the year                
through operation of the sinking fund for this series at the Redemption Prices
for redemption through operation of the sinking fund (expressed as percentages
of the principal amount) set forth in the table below, and (2) at any time [on
or after                
], as a whole or in part, at the election of the Company, at the Redemption
Prices for redemption otherwise than through operation of the sinking fund
(expressed as percentages of the principal amount) set forth in the table
below:  If redeemed during the 12-month
period beginning                       
of the years indicated,

 

	
  Year

  	
   

  	
  Redemption Price

  For Redemption

  Through Operation

  of the

  Sinking Fund

  	
   

  	
  Redemption Price For

  Redemption Otherwise

  Than Through Operation

  of the Sinking Fund

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

12

 

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

 

[Notwithstanding the foregoing, the Company may not,
prior to                          ,
redeem any Securities of this series as contemplated by [Clause (2) of] the preceding
paragraph as a part of, or in anticipation of, any refunding operation by the
application, directly or indirectly, of moneys borrowed having an interest cost
to the Company (calculated in accordance with generally accepted financial
practice) of less than              %
per annum.]

 

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

 

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

 

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

 

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

 

13

 

[The Indenture contains provisions for defeasance at
any time of [the entire indebtedness of this Security or] certain restrictive
covenants and Events of Default with respect to this Security [, in each case]
upon compliance with certain conditions set forth therein.]

 

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

 

No reference herein to the Indenture and no provision
of this Security or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and
any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registerable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

 

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

 

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

 

Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered
as the owner hereof for all purposes, whether or not this Security be 

 

14

 

overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

 

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

 

Section 2.4             Additional
Provisions Required in Book-Entry Security.

 

Any Book-Entry Security issued hereunder shall, in
addition to the provisions contained in Sections 2.2 and 2.3, bear a legend in
substantially the following form:

 

“This Security is a
Book-Entry Security within the meaning of the Indenture hereinafter referred to
and is registered in the name of a Depository or a nominee of a Depository. This
Security is exchangeable for Securities registered in the name of a person
other than the Depository or its nominee only in the limited circumstances
described in the Indenture and may not be transferred except as a whole by the
Depository to a nominee of the Depository or by a nominee of the Depository to
the Depository or another nominee of the Depository.”

 

Section 2.5             Form
of Trustee’s Certificate of Authentication.

 

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

 

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

 

	
   

  	
   

  	
   

  
	
   

  	
  As Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  	
   

  
							

 

ARTICLE
III

THE SECURITIES

 

Section 3.1             Amount
Unlimited; Issuable in Series.

 

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

 

The Securities may be issued in one or more series. There
shall be established in or pursuant to a Board Resolution and, subject to
Section 3.3, set forth, or determined in the manner provided, in an Officers’
Certificate, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series,

 

15

 

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

 

(2)           any limit
upon the aggregate principal amount of the Securities of the series which may
be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to Section 3.4,
3.5, 3.6, 9.6 or 11.7 and except for any Securities which, pursuant to Section
3.3, are deemed never to have been authenticated and delivered hereunder);

 

(3)           the Person
to whom any interest on a Security of the series shall be payable, if other
than the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest;

 

(4)           the date
or dates on which the principal of the Securities of the series is payable;

 

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

 

(6)           the place
or places where the principal of and any premium and interest on Securities of
the series shall be payable;

 

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

 

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

 

(9)           if other
than denominations of $100,000 and any integral multiple of $1,000 in excess
thereof, the denominations in which Securities of the series shall be issuable;

 

(10)         the
currency, currencies or currency units in which payment of the principal of and
any premium and interest on any Securities of the series shall be payable if
other than the currency of the United States of America and the manner of
determining the equivalent thereof in the currency of the United States of
America for purposes of the definition of “Outstanding” in Section 1.1;

 

16

 

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

 

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

 

(13)         the
application, if any, of Section 13.2 or 13.3 to the Securities of any series;

 

(14)         whether the
Securities of the series shall be issued in whole or in part in the form of one
or more Book-Entry Securities and, in such case, the Depository with respect to
such Book-Entry Security or Securities and the circumstances under which any
Book-Entry Security may be registered for transfer or exchange, or
authenticated and delivered, in the name of a Person other than such Depository
or its nominee, if other than as set forth in Section 3.5;

 

(15)         if other
than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 5.2;

 

(16)         any
provisions relating to the conversion or exchange of the Securities into common
stock or other debt securities of the Company;

 

(17)         the status
and ranking of the Securities; and

 

(18)         any other
terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture, except as permitted by Section 9.1(5)).

 

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise
be provided in or pursuant to the Board Resolution referred to above and
(subject to Section 3.3) set forth, or determined in the manner provided, in
the Officers’ Certificate referred to above or in any such indenture
supplemental hereto.

 

If any of the terms of the series are established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Secretary or an Assistant Secretary of
the Company and delivered to the Trustee at or prior to the delivery of the
Officers’ Certificate setting forth the terms of the series.

 

Section 3.2             Denominations.

 

The Securities of each series shall be issuable in
registered form without coupons in such denominations as shall be specified as
contemplated by Section 3.1. In the absence of any such 

 

17

 

provisions with respect to the Securities of any series, the Securities
of such series shall be issuable in denominations of $1,000 and any integral
multiple thereof.

 

Section 3.3             Execution,
Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of the
Company by its Chief Executive Officer, its President, a Senior Vice President
or a Vice President of the Company, under its corporate seal reproduced thereon
attested by its Secretary or one of its Assistant Secretaries. The signature of
any of these officers on the Securities may be manual or facsimile.

 

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

 

At any time and from time to time after the execution
and delivery of this Indenture, the Company may deliver Securities of any
Series executed by the Company to the Trustee for authentication, together with
a Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver
such Securities. If the form or terms of the Securities of the series have been
established in or pursuant to one or more Board Resolutions as permitted by
Sections 2.1 and 3.1, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such Securities,
the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be
fully protected in relying upon, an Opinion of Counsel stating,

 

(a)           if
the form of such Securities has been established by or pursuant to Board
Resolution as permitted by Section 2.1, that such form has been established in
conformity with the provisions of this Indenture;

 

(b)           if
the terms of such Securities have been established by or pursuant to Board
Resolution as permitted by Section 3.1, that such terms have been established
in conformity with the provisions of this Indenture; and

 

(c)           that
such Securities, when authenticated and delivered by the Trustee and issued by
the Company in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of
the Company enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general
equity principles.

 

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

 

Notwithstanding the provisions of Section 3.1 and of
the preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officers’
Certificate otherwise required pursuant to Section 3.1 or the Company 

 

18

 

Order and Opinion of Counsel otherwise required pursuant to such
preceding paragraph at or prior to the time of authentication of each Security
of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to
be issued.

 

Each Security shall be dated the date of its
authentication.

 

No Security shall be entitled to any benefit under
this Indenture or be valid or obligatory for any purpose unless there appears
on such Security a certificate of authentication substantially in the form
provided for herein executed by the Trustee by manual signature, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 3.9, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.

 

Section 3.4             Temporary
Securities.

 

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

 

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

 

Section 3.5             Registration,
Registration of Transfer and Exchange.

 

The Company shall cause to be kept at the Corporate
Trust Office of the Trustee a register (the register maintained in such office
and in any other office or agency of the Company in a Place of Payment being
herein sometimes collectively referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Securities and of transfers of Securities. The
Trustee is hereby appointed 

 

19

 

“Security Registrar” for the purpose of registering Securities and
transfers of Securities as herein provided.

 

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

 

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

 

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

 

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

 

No service charge shall be made for any registration
of transfer or exchange of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 3.4, 9.6 or 11.7 not
involving any transfer.

 

The Company shall not be required (i) to issue,
register the transfer of or exchange Securities of any series during a period
beginning at the opening of business 15 days before the day of the mailing of a
notice of redemption of Securities of that series selected for redemption under
Section 11.3 and ending at the close of business on the day of such mailing, or
(ii) to register the transfer of or exchange any Security so selected for
redemption in whole or in part, except the unredeemed portion of any Security
being redeemed in part.

 

Notwithstanding the foregoing, any Book-Entry Security
shall be exchangeable pursuant to this Section 3.5 for Securities registered in
the name of Persons other than the Depository for such Security or its nominee
only if (i) such Depository notifies the Company that it is unwilling or unable
to continue as Depository for such Book-Entry Security or if at any time such
Depository ceases to be a clearing agency registered under the Securities
Exchange Act of 1934, as amended, (ii) the Company executes and delivers to the
Trustee a Company Order that such Book-Entry Security shall be so exchangeable
or (iii) there shall have occurred and be continuing an Event of Default with
respect to the Securities. Any Book-Entry Security that is exchangeable 

 

20

 

pursuant to the preceding sentence shall be exchangeable for Securities
registered in such names as such Depository shall direct.

 

Notwithstanding any other provision in this Indenture,
a Book-Entry Security may not be transferred except as a whole by the
Depository with respect to such Book-Entry Security to a nominee of such
Depository or by a nominee of such Depository to such a Depository or another
nominee of such Depository.

 

Section 3.6             Mutilated,
Destroyed, Lost and Stolen Securities.

 

If any mutilated Security is surrendered to the
Trustee, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of the same series and of like
tenor and principal amount and bearing a number not contemporaneously
outstanding.

 

If there shall be delivered to the Company and the
Trustee (i) evidence to their satisfaction of the destruction, loss or theft of
any Security and (ii) such security or indemnity as may be required by them to
save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute and the Trustee
shall authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

 

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

 

Upon the issuance of any new Security under this
Section, the Company may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and
any other expenses (including the fees and expenses of the Trustee) connected
therewith.

 

Every new Security of any series issued pursuant to
this Section in lieu of any destroyed, lost or stolen Security shall constitute
an original additional contractual obligation of the Company, whether or not
the destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series duly issued
hereunder.

 

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

 

Section 3.7             Payment
of Interest; Interest Rights Preserved.

 

Except as otherwise provided as contemplated by
Section 3.1 with respect to any series of Securities, interest on any Security
which is payable, and is punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Person in whose name that Security (or one or

 

21

 

more Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest.

 

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

 

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

 

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

 

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

 

22

 

Section 3.8             Persons
Deemed Owners.

 

Prior to due presentment of a Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name such Security is registered
as the owner of such Security for the purpose of receiving payment of principal
of and any premium and (subject to Section 3.7) any interest on such Security
and for all other purposes whatsoever, whether or not such Security be overdue,
and neither the Company, the Trustee nor any agent of the Company or the
Trustee shall be affected by notice to the contrary.

 

Section 3.9             Cancellation.

 

All Securities surrendered for payment, redemption, registration
of transfer or exchange or for credit against any sinking fund payment shall,
if surrendered to any Person other than the Trustee, be delivered to the
Trustee and shall be promptly cancelled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as
provided in this Section, except as expressly permitted by this Indenture. All
cancelled Securities held by the Trustee shall be disposed of as directed by a
Company Order.

 

Section 3.10           Computation
of Interest.

 

Except as otherwise specified as contemplated by
Section 3.1 for Securities of any series, interest on the Securities of each
series shall be computed on the basis of a 360-day year of twelve 30-day
months.

 

ARTICLE
IV

SATISFACTION AND DISCHARGE

 

Section 4.1             Satisfaction
and Discharge of Indenture.

 

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

 

(1)           either

 

(A)          all
Securities theretofore authenticated and delivered (other than
(i) Securities which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 3.6 and (ii) Securities for whose
payment money has theretofore been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the Company or discharged from
such trust, 

 

23

 

as
provided in Section 10.3) have been delivered to the Trustee for cancellation;
or

 

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

 

(i)            have
become due and payable, or

 

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

 

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

 

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

 

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

 

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

 

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 6.7, the
obligations of the Trustee to any Authenticating Agent under Section 6.14 and,
if money shall have been deposited with the Trustee pursuant to subclause (B)
of Clause (1) of this Section, the obligations of the Trustee under Section 4.2
and the last paragraph of Section 10.3 shall survive.

 

Section 4.2             Application
of Trust Money.

 

Subject to provisions of the last paragraph of Section
10.3, all money deposited with the Trustee pursuant to Section 4.1 shall be
held in trust and applied by it, in accordance with the provisions of the Securities
and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium
and interest for whose payment such money has been deposited with the Trustee.

 

24

 

ARTICLE
V

REMEDIES

 

Section 5.1             Events
of Default.

 

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

 

(1)           default in
the payment of any interest upon any Security of that series when it becomes
due and payable, and continuance of such default for a period of 30 days; or

 

(2)           default in
the payment of the principal of (or premium, if any, on) any Security of that
series at its Maturity; or

 

(3)           default in
the deposit of any sinking fund payment, when and as due by the terms of a
Security of that series; or

 

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

 

(5)           the entry
by a court having jurisdiction in the premises of (A) a decree or order for
relief in respect of the Company in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or (B) a decree or order adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company under
any applicable Federal or State law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the
Company or of any substantial part of its property, or ordering the winding up
or liquidation of its affairs, and the continuance of any such decree or order
for relief or any such other decree or order unstayed and in effect for a
period of 60 consecutive days; or

 

(6)           the
commencement by the Company of a voluntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree or order for relief in
respect of the Company 

 

25

 

in
an involuntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against it, or
the filing by it of a petition or answer or consent seeking reorganization or
relief under any applicable Federal or State law, or the consent by it to the
filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or of any substantial part of its property, or the
making by it of an assignment for the benefit of creditors, or the admission by
it in writing of its inability to pay its debts generally as they become due,
or the taking of corporate action by the Company in furtherance of any such
action; or

 

(7)           any event
which constitutes an “Event of Default” under the terms governing Securities of
that series established as provided in Section 3.1.

 

Section 5.2             Acceleration
of Maturity; Rescission and Annulment.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

and

 

26

 

(2)           all Events
of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due
solely by such declaration of acceleration, have been cured or waived as
provided in Section 5.13.

 

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

 

Section 5.3             Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that if

 

(1)           default is
made in the payment of any interest on any Security when such interest becomes
due and payable and such default continues for a period of 30 days, or

 

(2)           default is
made in the payment of the principal of (or premium, if any, on) any Security
at the Maturity thereof,

 

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

 

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

 

Section 5.4             Trustee
May File Proofs of Claim.

 

In case of any judicial proceeding relative to the
Company (or any other obligor upon the Securities), its property or its
creditors, the Trustee shall be entitled and empowered, by intervention in such
proceeding or otherwise, to take any and all actions authorized under the Trust
Indenture Act in order to have claims of the Holders and the Trustee allowed in
any such proceeding. In particular, the Trustee shall be authorized to collect
and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee and, in the event that the Trustee shall consent to the making
of such payments directly to the Holders, to pay to the Trustee any amount due
it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.7.

 

27

 

No provision of this Indenture shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

 

Section 5.5             Trustee
May Enforce Claims Without Possession of Securities.

 

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

 

Section 5.6             Application
of Money Collected.

 

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

 

FIRST:  To the payment of all amounts due the Trustee
under Section 6.7; and

 

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

 

Section 5.7             Limitation
on Suits.

 

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

 

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

 

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

 

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

 

28

 

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

 

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

 

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

 

Section 5.8             Unconditional
Right of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other provision in this Indenture,
the Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of and any premium and
(subject to Section 3.7) any interest on such Security on the Stated Maturity
or Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

 

Section 5.9             Restoration
of Rights and Remedies.

 

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

 

Section 5.10           Rights
and Remedies Cumulative.

 

Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in
the last paragraph of Section 3.6, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

 

Section 5.11           Delay
or Omission Not Waiver.

 

No delay or omission of the Trustee or of any Holder
of any Securities to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or 

 

29

 

constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section 5.12           Control
by Holders.

 

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

 

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

 

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

 

Section 5.13           Waiver
of Past Defaults.

 

The Holders of not less than a majority in principal
amount of the Outstanding Securities of any series may on behalf of the Holders
of all the Securities of such series waive any past default hereunder with
respect to such series and its consequences, except a default

 

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

 

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

 

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

 

Section 5.14           Undertaking
for Costs.

 

In any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, a court may require any party litigant in
such suit to file an undertaking to pay the costs of such suit, and may assess
costs against any such party litigant, in the manner and to the extent provided
in the Trust Indenture Act; provided that neither this Section nor the
Trust Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the Company
or the Trustee.

 

30

 

Section 5.15           Waiver
of Stay or Extension Laws.

 

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

 

ARTICLE
VI

THE TRUSTEE

 

Section 6.1             Certain
Duties and Responsibilities.

 

The duties and responsibilities of the Trustee shall
be as provided by the Trust Indenture Act. Notwithstanding the foregoing, no
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it. Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section.

 

Section 6.2             Notice
of Defaults.

 

If a default occurs hereunder with respect to
Securities of any series, the Trustee shall give the Holders of Securities of
such series notice of such default as and to the extent provided by the Trust
Indenture Act; provided, however, that in the case of any default
of the character specified in Section 5.1(4) with respect to Securities of such
series, no such notice to Holders shall be given until at least 30 days after
the occurrence thereof. For the purpose of this Section, the term “default”
means any event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to Securities of such series.

 

Section 6.3             Certain
Rights of Trustee.

 

Subject to the provisions of Section 6.1:

 

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

 

(b)           any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution;

 

31

 

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

 

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

 

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

 

(f)            the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney; and

 

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

 

Section 6.4             Not
Responsible for Recitals or Issuance of Securities.

 

The recitals contained herein and in the Securities,
except the Trustee’s certificates of authentication, shall be taken as the
statements of the Company, and the Trustee or any Authenticating Agent assumes
no responsibility for their correctness. The Trustee makes no representations
as to the validity or sufficiency of this Indenture or of the Securities. The
Trustee or any Authenticating Agent shall not be accountable for the use or
application by the Company of Securities or the proceeds thereof.

 

Section 6.5             May
Hold Securities.

 

The Trustee, any Authenticating Agent, any Paying
Agent, any Security Registrar or any other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee of Securities
and, subject to Sections 6.8 and 6.13, may otherwise deal with the Company with
the same rights it would have if it were not Trustee, Authenticating Agent,
Paying Agent, Security Registrar or such other agent.

 

32

 

Section 6.6             Money
Held in Trust.

 

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

 

Section 6.7             Compensation
and Reimbursement.

 

The Company agrees

 

(1)           to pay to
the Trustee from time to time reasonable compensation for all services
rendered by it hereunder (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust);

 

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

 

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

 

Section 6.8             Disqualification;
Conflicting Interests.

 

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

 

Section 6.9             Corporate
Trustee Required; Eligibility.

 

There shall at all times be a Trustee hereunder which
shall be a Person that is eligible pursuant to the Trust Indenture Act to act
as such and has a combined capital and surplus of at least $50,000,000 and its
Corporate Trust Office in                 ,
                  .
If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of said supervising or examining authority, then for
the purposes of this Section, the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article.

 

33

 

Section 6.10           Resignation
and Removal; Appointment of Successor.

 

(a)           No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 6.11.

 

(b)           The
Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company. If the instrument of
acceptance by a successor Trustee required by Section 6.11 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

 

(c)           The
Trustee may be removed at any time with respect to the Securities of any series
by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series, delivered to the Trustee and to the Company.

 

(d)           If
at any time:

 

(1)           the
Trustee shall fail to comply with Section 6.8 after written request therefor by
the Company or by any Holder who has been a bona fide Holder of a Security for
at least six months, or

 

(2)           the
Trustee shall cease to be eligible under Section 6.9 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

 

(3)           the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or
any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation,

 

then, in any such case, (i) the Company by a Board
Resolution may remove the Trustee with respect to all securities, or (ii)
subject to Section 5.14, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.

 

(e)           If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee or Trustees with respect to the Securities
of that or those series (it being understood that any such successor Trustee
may be appointed with respect to the Securities of one or more or all of such
series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable
requirements of Section 6.11. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any Series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon 

 

34

 

its
acceptance of such appointment in accordance with the applicable requirements
of Section 6.11, become the successor Trustee with respect to the Securities of
such series and to that extent supersede the successor Trustee appointed by the
Company. If no successor Trustee with respect to the Securities of any Series
shall have been so appointed by the Company or the Holders and accepted
appointment in the manner required by Section 6.11, any Holder who has been a
bona fide Holder of a Security of such series for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.

 

(f)            The
Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series to all Holders
of Securities of such series in the manner provided in Section 1.6. Each notice
shall include the name of the successor Trustee with respect to the Securities
of such series and the address of its Corporate Trust Office.

 

Section 6.11           Acceptance
of Appointment by Successor.

 

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

 

(b)           In
case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring
Trustee and each successor Trustee with respect to the Securities of one or
more series shall execute and deliver an indenture supplemental hereto wherein
each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall 

 

35

 

become vested with all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which
the appointment of such successor Trustee relates.

 

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

 

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

 

Section 6.12           Merger,
Conversion, Consolidation or Succession to Business.

 

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

 

Section 6.13           Preferential
Collection of Claims Against Company.

 

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

 

Section 6.14           Appointment
of Authenticating Agent.

 

The Trustee may appoint an Authenticating Agent
or Agents with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of such series issued
upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 3.6, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Company and shall at all
times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia,
authorized under

 

36

 

such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by Federal or State
authority. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

 

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

 

An Authenticating Agent may resign at any time by
giving written notice thereof to the Trustee and to the Company. The Trustee may at
any time terminate the agency of an Authenticating Agent by giving written
notice thereof to such Authenticating Agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
such Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid,
to all Holders of Securities of the series with respect to which such
Authenticating Agent will serve, as their names and addresses appear in the
Security Register. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

 

The Company agrees to pay to each Authenticating Agent
from time to time reasonable compensation for its services under this Section.

 

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

 

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

 

	
   

  	
   

  	
   

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  ,

  
	
   

  	
  As Authenticating Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  ,

  
	
   

  	
  Authorized Officer

  

 

37

 

ARTICLE VII

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

Section 7.1             Company to Furnish
Trustee Names and Addresses of Holders.

 

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

 

(a)           semi-annually,
not later than 15 days after the Regular Record Date for interest for each series of
Securities, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders of Registered Securities of
such series as of such Regular Record Date, or if there is no Regular
Record Date for interest for such series of Securities, semi-annually,
upon such dates as are set forth in the Board Resolution or indenture
supplemental hereto authorizing such series, and

 

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

 

excluding from any such list names
and addresses received by the Trustee in its capacity as Security Registrar.

 

Section 7.2             Preservation of
Information; Communications to Holders.

 

(a)           The
Trustee shall preserve, in as current a form as is reasonably practicable,
the names and addresses of Holders contained in the most recent list furnished
to the Trustee as provided in Section 7.1 and the names and addresses of
Holders received by the Trustee in its capacity as Security Registrar. The
Trustee may destroy any list furnished to it as provided in Section 7.1
upon receipt of a new list so furnished.

 

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

 

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

 

Section 7.3             Reports by Trustee.

 

(a)           The
Trustee shall transmit to Holders such reports concerning the Trustee and its
actions under this Indenture as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant thereto.

 

38

 

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

 

Section 7.4             Reports by Company.

 

The Company shall file with the Trustee and the
Commission, and transmit to Holders, such information, documents and other
reports, and such summaries thereof, as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant to such
Act; provided that any such information, documents or reports required
to be filed with the Commission pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 shall be filed with the Trustee within 15
days after the same is so required to be filed with the Commission.

 

ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 

Section 8.1             Company May Consolidate,
Etc., Only on Certain Terms.

 

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

 

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

 

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

 

(3)           if,
as a result of any such consolidation or merger or such conveyance, transfer or
lease, properties or assets of the Company would become subject to a mortgage,
pledge, lien, security interest or other encumbrance which would not be
permitted by this Indenture, the Company or such successor Person, as the case may be,

 

39

 

shall take such steps as shall be necessary
effectively to secure the Securities equally and ratably with (or prior to) all
indebtedness secured thereby; and

 

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

 

Section 8.2             Successor
Substituted.

 

Upon any consolidation of the Company with, or merger
of the Company into, any other Person or any conveyance, transfer or lease of
the properties and assets of the Company substantially as an entirety in
accordance with Section 8.1, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect
as if such successor Person had been named as the Company herein, and thereafter,
except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

 

ARTICLE IX

SUPPLEMENTAL INDENTURES

 

Section 9.1             Supplemental
Indentures Without Consent of Holders.

 

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

 

(1)           to
evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants of the Company herein and in the
Securities; or

 

(2)           to
add to the covenants of the Company for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the benefit
of less than all series of Securities, stating that such covenants are
expressly being included solely for the benefit of such series) or to surrender
any right or power herein conferred upon the Company; or

 

(3)           to
add any additional Events of Default; or

 

(4)           to
add to or change any of the provisions of this Indenture to such extent as
shall be necessary to permit or facilitate the issuance of Securities in bearer
form, registrable or not registrable as to principal, and with or without
interest coupons, or to permit or facilitate the issuance of Securities in
uncertificated form; or

 

40

 

(5)           to
add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities, provided that any such
addition, change or elimination (i) shall neither (A) apply to any
Security of any series created prior to the execution of such supplemental
indenture and entitled to the benefit of such provision nor (B) modify the
rights of the Holder of any such Security with respect to such provision or (ii) shall
become effective only when there is no such Security Outstanding; or

 

(6)           to
establish the form or terms of Securities of any series as permitted
by Sections 2.1 and 3.1, including any subordination provisions; or

 

(7)           to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to
or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, pursuant to the requirements of Section 6.11(b); or

 

(8)           to
cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Indenture, provided
that such action pursuant to this clause (8) shall not adversely affect
the interests of the Holders of Securities of any series in any material
respect.

 

Section 9.2             Supplemental
Indentures with Consent of Holders.

 

With the consent of the Holders of not less than a
majority in principal amount of the Outstanding Securities of each series affected
by such supplemental indenture, by Act of said Holders delivered to the Company
and the Trustee, the Company, when authorized by a Board Resolution, and the
Trustee may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of the Holders of Securities of such series under this
Indenture; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Security affected
thereby,

 

(1)           change
the Stated Maturity of the principal of, or any installment of principal of or
interest on, any Security, or reduce the principal amount thereof or the rate
of interest thereon or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue Discount Security that
would be due and payable upon a declaration of acceleration of the Maturity
thereof pursuant to Section 5.2, or change any Place of Payment where, or
the coin or currency in which, any Security or any premium or interest thereon
is payable, or impair the right to institute suit for the enforcement of any
such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date), or modify the conversion
provisions, if any, of any Security in a manner adverse to the holder of the
Security, or

 

(2)           reduce
the percentage in principal amount of the Outstanding Securities of any series,
the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver (of compliance with
certain

 

41

 

provisions of this Indenture or certain defaults
hereunder and their consequences) provided for in this Indenture, or

 

(3)           modify
any of the provisions of this Section, Section 5.13 or Section 10.7,
except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Outstanding Security affected thereby, provided, however,
that this clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the Trustee” and concomitant changes
in this Section and Section 10.7, or the deletion of this proviso, in
accordance with the requirements of Sections 6.11(b) and 9.1(8).

 

A supplemental indenture which changes or eliminates
any covenant or other provision of this Indenture which has expressly been
included solely for the benefit of one or more particular series of
Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the
rights under this Indenture of the Holders of Securities of any other series.

 

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

 

Section 9.3             Execution of
Supplemental Indentures.

 

In executing, or accepting the additional trusts created
by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 6.1) shall be fully
protected in relying upon, an Officer’s Certificate and an Opinion of Counsel
each stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

 

Section 9.4             Effect of
Supplemental Indentures.

 

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

 

Section 9.5             Conformity with
Trust Indenture Act.

 

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

 

Section 9.6             Reference in
Securities to Supplemental Indentures.

 

Securities of any series authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article may,
and shall if required by the Trustee, bear a notation in form approved by
the Trustee as to any matter provided for in such supplemental

 

42

 

indenture. If the Company
shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Company, to any such
supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding
Securities of such series.

 

ARTICLE X

COVENANTS

 

Section 10.1           Payment
of Principal, Premium and Interest.

 

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

 

Section 10.2           Maintenance
of Office or Agency.

 

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

 

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

 

Section 10.3           Money for
Securities Payments to Be Held in Trust.

 

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

 

Whenever the Company shall have one or more Paying
Agents for any series of Securities, it will, prior to each due date of
the principal of or any premium or interest on any Securities of that series,
deposit with a Paying Agent a sum sufficient to pay such amount, such

 

43

 

sum to be held as
provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
so to act.

 

The Company will cause each Paying Agent for any series of
Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section, that such Paying Agent will (i) comply
with the provisions of the Trust Indenture Act applicable to it as a Paying
Agent and (ii) during the continuance of any default by the Company (or any
other obligor upon the Securities of that series) in the making of any payment
in respect of the Securities of that series, and upon the written request of
the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying
Agent for payment in respect of the Securities of that series.

 

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

 

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal
of or any premium or interest on any Security of any series and remaining
unclaimed for two years after such principal, premium or interest has become
due and payable shall be paid to the Company on Company Request, or (if then
held by the Company) shall be discharged from such trust; and the Holder of
such Security shall thereafter, as an unsecured general creditor, look only to
the Company for payment thereof, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once,
in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in the City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

 

Section 10.4           Statement
by Officers as to Default.

 

The Company will deliver to the Trustee, within 120
days after the end of each fiscal year of the Company ending after the date
hereof, an Officers’ Certificate, stating whether or not to the best knowledge
of the signers thereof the Company is in default in the performance and
observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided
hereunder) and, if the Company shall be in default, specifying all such
defaults and the nature and status thereof of which they may have
knowledge.

 

44

 

Section 10.5           Existence.

 

Subject to Article Eight, the Company will do or
cause to be done all things necessary to preserve and keep in full force and
effect its existence, rights (charter and statutory) and franchises; provided,
however, that the Company shall not be required to preserve any such
right or franchise if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and that the loss thereof is not disadvantageous in any material
respect to the Holders.

 

Section 10.6           Payment
of Taxes and Other Claims.

 

The Company will pay or discharge or cause to be paid
or discharged, before the same shall become delinquent, (1) all taxes,
assessments and governmental charges levied or imposed upon the Company or any
Subsidiary or upon the income, profits or property of the Company or any
Subsidiary, and (2) all lawful claims for labor, materials and supplies
which, if unpaid, might by law become a lien upon the property of the Company
or any Subsidiary; provided, however, that the Company shall not
be required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being
contested in good faith by appropriate proceedings.

 

Section 10.7           Waiver
of Certain Covenants.

 

The Company may omit in any particular instance
to comply with any term, provision or condition set forth in Sections 10.5 and
10.6, inclusive, with respect to the Securities of any series if before
the time for such compliance the Holders of at least a majority in principal
amount of the Outstanding Securities of such series shall, by Act of such
Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

 

ARTICLE XI

REDEMPTION OF SECURITIES

 

Section 11.1           Applicability
of Article.

 

Securities of any series which are redeemable
before their Stated Maturity shall be redeemable in accordance with their terms
and (except as otherwise specified as contemplated by Section 3.1 for
Securities of any series) in accordance with this Article.

 

Section 11.2           Election
to Redeem; Notice to Trustee.

 

The election of the Company to redeem any Securities
shall be evidenced by a Board Resolution. In case of any redemption at the
election of the Company of less than all the Securities of any series, the
Company shall, at least 60 days prior to the Redemption Date fixed by the
Company (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee

 

45

 

of such Redemption Date,
of the principal amount of Securities of such series to be redeemed and,
if applicable, of the tenor of the Securities to be redeemed. In the case of
any redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers’ Certificate
evidencing compliance with such restriction.

 

Section 11.3           Selection
by Trustee of Securities to Be Redeemed.

 

If less than all the Securities of any series are
to be redeemed (unless all of the Securities of such series and of a
specified tenor are to be redeemed), the particular Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the Outstanding Securities of such series not previously
called for redemption, by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of
portions (equal to the minimum authorized denomination for Securities of that series or
any integral multiple thereof) of the principal amount of Securities of such series of
a denomination larger than the minimum authorized denomination for Securities
of that series. If less than all of the Securities of such series and of a
specified tenor are to be redeemed, the particular Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the Outstanding Securities of such series and specified
tenor not previously called for redemption in accordance with the preceding
sentence.

 

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

 

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

 

Section 11.4           Notice
of Redemption.

 

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

 

All notices of redemption shall state:

 

(1)           the
Redemption Date,

 

(2)           the
Redemption Price,

 

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

 

46

 

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

 

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

 

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

 

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

 

Section 11.5           Deposit
of Redemption Price.

 

Prior to any Redemption Date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section 10.3)
an amount of money sufficient to pay the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date) accrued interest on, all
the Securities which are to be redeemed on that date.

 

Section 11.6           Securities
Payable on Redemption Date.

 

Notice of redemption having been given as aforesaid, the
Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified, and from and after such date
(unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender
of any such Security for redemption in accordance with said notice, such
Security shall be paid by the Company at the Redemption Price, together with
accrued interest to the Redemption Date; provided, however, that,
unless otherwise specified as contemplated by Section 3.1, installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant record
dates according to their terms and the provisions of Section 3.7.

 

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

 

Section 11.7           Securities
Redeemed in Part.

 

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

 

47

 

and in exchange for the
unredeemed portion of the principal of the Security so surrendered. If a
Book-Entry Security is so surrendered, such new Security so issued shall be a new
Book-Entry Security.

 

ARTICLE XII

SINKING FUNDS

 

Section 12.1           Applicability
of Article.

 

The provisions of this Article shall be
applicable to any sinking fund for the retirement of Securities of a series except
as otherwise specified as contemplated by Section 3.1 for Securities of
such series.

 

The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series is herein referred
to as a “mandatory sinking fund payment,” and any payment in excess of such
minimum amount provided for by the terms of Securities of any series is
herein referred to as an “optional sinking fund payment.” If provided for by
the terms of Securities of any series, the cash amount of any sinking fund
payment may be subject to reduction as provided in Section 12.2. Each
sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

 

Section 12.2           Satisfaction
of Sinking Fund Payments with Securities.

 

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

 

Section 12.3           Redemption
of Securities for Sinking Fund.

 

Not less than 60 days prior to each sinking fund
payment date for any series of Securities, the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing
sinking fund payment for that series pursuant to the terms of that series,
the portion thereof, if any, which is to be satisfied by payment of cash and
the portion thereof, if any, which is to be satisfied by delivering and
crediting Securities of that series pursuant to Section 12.2 and will
also deliver to the Trustee any Securities to be so delivered. Not less than 45
days before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner specified
in Section 11.3 and cause notice of the redemption thereof to be given in
the name of and at the expense of the Company in the manner

 

48

 

provided in Section 11.4.
Such notice having been duly given, the redemption of such Securities shall be
made upon the terms and in the manner stated in Sections 11.6 and 11.7.

 

ARTICLE XIII

DEFEASANCE AND COVENANT DEFEASANCE

 

Section 13.1           Applicability
of Article; Company’s Option to Effect Defeasance or Covenant Defeasance.

 

If pursuant to Section 3.1 provision is made for
either or both of (a) defeasance of the Securities of a series under Section 13.2
or (b) covenant defeasance of the Securities of a series under Section 13.3,
then the provisions of such Section or Sections, as the case may be,
together with the other provisions of this Article Thirteen, shall be
applicable to the Securities of such series, and the Company may at its
option by Board Resolution, at any time, with respect to the Securities of such
series, elect to have either Section 13.2 (if applicable) or Section 13.3
(if applicable) be applied to the Outstanding Securities of such series upon
compliance with the conditions set forth below in this Article Thirteen.

 

Section 13.2           Defeasance
and Discharge.

 

Upon the Company’s exercise of the above option
applicable to this Section, the Company shall be deemed to have been discharged
from its obligations with respect to the Outstanding Securities of such series on
and after the date the conditions precedent set forth below are satisfied
(hereinafter, “defeasance”). For this purpose, such defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Outstanding Securities of such series and to have
satisfied all its other obligations under such Securities and this Indenture
insofar as such Securities are concerned (and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging the same), except
for the following which shall survive until otherwise terminated or discharged
thereunder: (A) the rights of Holders of Outstanding Securities of such series to
receive, solely from the trust fund described in Section 13.4 as more
fully set forth in such Section, payments of the principal of (and premium and
interest, if any, on) such Securities when such payments are due, (B) the
Company’s obligations with respect to such Securities under Sections 3.4, 3.5,
3.6, 10.2 and 10.3 and such obligations as shall be ancillary thereto, (C) the
rights, powers, trusts, duties, immunities and other provisions in respect of
the Trustee hereunder and (D) this Article Thirteen. Subject to
compliance with this Article Thirteen, the Company may exercise its
option under this Section 13.2 notwithstanding the prior exercise of its
option under Section 13.3 with respect to the Securities of such series.

 

Section 13.3           Covenant
Defeasance.

 

Upon the Company’s exercise of the above option
applicable to this Section, the Company shall be released from its obligations
under Sections 8.1, 10.5 and 10.6 (and any covenant applicable to such
Securities that are determined pursuant to Section 3.1 to be subject to
this provision) and the occurrence of an event specified in Section 5.1(4) (with
respect to any of Sections 8.1, 10.5 or 10.6) (and any other Event of Default
applicable to such Securities that

 

49

 

are determined pursuant
to Section 3.1 to be subject to this provision) shall not be deemed to be
an Event of Default with respect to the Outstanding Securities of such series on
and after the date the conditions set forth below are satisfied (hereinafter, “covenant
defeasance”). For this purpose, such covenant defeasance means that, with
respect to the Outstanding Securities of such series, the Company may omit
to comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such Section or clause whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or
clause or by reason of any reference in any such Section or clause to any
other provision herein or in any other document, but the remainder of this
Indenture and such Securities shall be unaffected thereby.

 

Section 13.4           Conditions
to Defeasance or Covenant Defeasance.

 

The following shall be the conditions precedent to
application of either Section 13.2 or Section 13.3 to the Outstanding
Securities of such series:

 

(1)           The
Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 6.9 who
shall agree to comply with the provisions of this Article Thirteen
applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities, (A) money in an amount,
or (B) U.S. Government Obligations which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment, money in an
amount, or (C) a combination thereof, sufficient, without reinvestment, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge, and which shall be applied by the Trustee (or other qualifying
trustee) to pay and discharge, the principal of (and premium and interest, if
any on) the Outstanding Securities of such series on the Maturity of such
principal, or premium and interest, if any. Before such a deposit the Company may make
arrangements satisfactory to the Trustee for the redemption of Securities at a
future date or dates in accordance with Article Eleven, which shall be
given effect in applying the foregoing. For this purpose, “U.S. Government
Obligations” means securities that are (x) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged
or (y) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America the payment of which
is unconditionally guaranteed as a full faith and credit obligation by the
United States of America, which, in either case, are not callable or redeemable
at the option of the issuer thereof, and shall also include a depository
receipt issued by a bank (as defined in section 3(a)(2) of the
Securities Act of 1933, as amended) as custodian with respect to any such U.S.
Government Obligation or a specific payment of principal of or interest on any
such U.S. Government Obligation held by such custodian for the account of the
holder of such depository receipt, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depositary receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of principal of or interest on the U.S. Government Obligation evidenced by such
depositary receipt.

 

50

 

(2)           No
Event of Default or event which with notice or lapse of time or both would
become an Event of Default with respect to the Securities of such series shall
have occurred and be continuing (A) on the date of such deposit or (B) insofar
as subsections 501(5) and (6) are concerned, at any time during the
period ending on the 121st day after the date of such deposit or, if longer,
ending on the day following the expiration of the longest preference period
applicable to the Company in respect of such deposit (it being understood that
the condition in this condition shall not be deemed satisfied until the
expiration of such period).

 

(3)           Such
defeasance or covenant defeasance shall not (A) cause the Trustee for the
Securities of such series to have a conflicting interest as defined in Section 6.8
or for purposes of the Trust Indenture Act with respect to any securities of
the Company or (B) result in the trust arising from such deposit to
constitute, unless it is qualified as, a regulated investment company under the
Investment Company Act of 1940, as amended.

 

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

 

(5)           In
the case of an election under Section 13.2, the Company shall have
delivered to the Trustee an Opinion of Counsel stating that (x) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling, or (y) since the date of this Indenture there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based
thereon such opinion shall confirm that, the Holders of the Outstanding
Securities of such series will not recognize income, gain or loss for
Federal income tax purposes as a result of such defeasance and will be subject
to Federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such defeasance had not occurred.

 

(6)           In
the case of an election under Section 13.3, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders
of the Outstanding Securities of such series will not recognize income,
gain or loss for Federal income tax purposes as a result of such covenant
defeasance and will be subject to Federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such
covenant defeasance had not occurred.

 

(7)           Such
defeasance or covenant defeasance shall be effected in compliance with any
additional terms, conditions or limitations which may be imposed on the
Company in connection therewith pursuant to Section 3.1.

 

(8)           The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for
relating to either the defeasance under Section 13.2 or the covenant
defeasance under Section 13.3 (as the case may be) have been complied
with.

 

51

 

Section 13.5           Deposited
Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous
Provisions.

 

Subject to the provisions of the last paragraph of Section 10.3,
all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee – collectively, for
purposes of this Section 13.5, the “Trustee”) pursuant to Section 13.4
in respect of the Outstanding Securities of such series shall be held in
trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any
Paying Agent (but not including the Company acting as its own Paying Agent) as
the Trustee may determine, to the Holders of such Securities, of all sums
due and to become due thereon in respect of principal (and premium, if any) and
interest, but such money need not be segregated from other funds except to the
extent required by law.

 

The Company shall pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the money
or U.S. Government Obligations deposited pursuant to Section 13.4 or the
principal and interest received in respect thereof.

 

Anything herein to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in Section 13.4
which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect an equivalent defeasance or covenant defeasance.

 

Section 13.6           Reinstatement.

 

If the Trustee or the Paying Agent is unable to apply
any money in accordance with Section 13.2 or 13.3 by reason of any order
or judgment or any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Company’s obligations under
the Securities of such series shall be revived and reinstated as though no
deposit had occurred pursuant to this Article Thirteen until such time as
the Trustee or Paying Agent is permitted to apply all such money in accordance
with Section 13.2 or 13.3; provided, however, that if the
Company makes any payment of principal of (and premium, if any) or interest on
any such Security following the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Securities to receive
such payment from the money held by the Trustee or the Paying Agent.

 

This instrument may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same
instrument.

 

52

 

IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.

 

	
   

  	
  ALEXANDRIA
  REAL ESTATE EQUITIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

53

 

	
  STATE OF CALIFORNIA

  	
  )

  
	
   

  	
  ) SS.

  
	
  COUNTY OF LOS ANGELES

  	
  )

  

 

On                 ,
200   , before me,                                  ,
a Notary Public, personally appeared                                                  ,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument the person, or the
entity upon behalf of which the person acted, executed the instrument.

 

 

	
  STATE OF

  	
  )

  
	
   

  	
  ) ss:

  
	
  COUNTY OF

  	
  )

  

 

On the     th day of                   ,
200   , before me personally came                       ,
to me known, who, being by me duly sworn, did depose and say that he is                                   
of                              ,
one of the corporations described in and which executed the foregoing
instrument; that he knows the seal of said corporation; that the seal affixed
to said instrument is such corporate seal; that it was so affixed by authority
of the Board of Directors of said corporation, and that he signed his name
thereto by like authority.

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