Document:

Exhibit
10.1

As
Amended through December 7, 2006

THE CHUBB CORPORATION

DEFERRED COMPENSATION PLAN

FOR DIRECTORS

Section 1. 
Effective Date

The
effective date of the Plan is July 1, 1987.

Section 2. 
Eligibility

Any
Director of The Chubb Corporation (the “Company”) or any Director of a
participating subsidiary of the Company who is also a Director of the Company,
who is not an officer or employee of the Company or a subsidiary thereof is
eligible to participate in the Plan.  A
subsidiary shall become a participating subsidiary upon adoption of this Plan
by the Board of Directors and by obtaining the consent to such adoption from
the Board of Directors of the Company.

Section 3. 
Deferred Compensation Accounts

There
shall be established for each participant a deferred compensation account or
accounts in the participant’s name.

Section 4. 
Amount of Deferral

A
participant may elect to defer receipt for any Plan Year of all compensation
payable to the participant in the form of stipends and/or meeting fees for serving
on the Board of Directors of the Company and Committees of the Board of
Directors as well as compensation payable to the participant in the form of
stipends and/or meeting fees for serving on the Board of Directors and
Committees of the Board of Directors of participating subsidiaries of the
Company.

Section 5. 
Investment of Deferred Amounts

(a)                                  General.  A participant may designate, in increments of
10%, the percentage of compensation to be deferred and specify whether such
deferred compensation should be allocated to a cash account, a market value
account, a shareholder’s equity account or any combination of such
accounts.  Deferral elections must be
made in the calendar year prior to the calendar year in which such compensation
would have been earned and paid but for the election to defer; provided,
however, that, upon first being elected to the Board of Directors, a
participant shall be permitted to make a deferral election hereunder with
respect to compensation that would be paid and earned in the calendar year of
election to the extent such election is permitted by, and complies with, the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended.

    
 

 

 

(b)                                 Cash
Account.  The amount, if any,
allocated to the participant’s deferred compensation cash account shall be
credited with interest, to be compounded quarterly, calculated prospectively at
a rate equal to the lesser of (i) the prime rate of Citibank, N.A., and (ii)
120% of the applicable long-term federal rate, in each case, in effect on the
first day of each January, April, July and October during the deferral period.  Any amount allocated to a cash account may
not thereafter be reallocated to any other account.

(c)                                  Market
Value Account.  The amount, if
any, allocated to the participant’s deferred compensation market value account
on each date compensation would have been paid in accordance with the Company’s
normal practice, or as applicable, the participating subsidiary’s normal
practice, but for the election to defer shall be expressed in units, the number
of which shall be equal to such amount divided by the closing price of shares
of the Company’s Common Stock on the New York Stock Exchange (hereinafter
referred to as “Market Value”) on such date or on the trading day next preceding
such date if such date is not a trading day. 
On each date that the Company pays a regular cash dividend on shares of
its Common Stock outstanding, the participant’s account shall be credited with
a number of units equal to the amount of such dividend per share multiplied by
the number of units in the participant’s account on such date divided by the
Market Value on such dividend date or on the trading day next preceding such
date if the dividend payment date is not a trading day.  The value of the units in the participant’s
market value account on any given date shall be determined by reference to the
Market Value on such date.  Any amount
allocated to a market value account may not thereafter be reallocated to any
other account.

(d)                                 Shareholder’s
Equity Account. At any time during the period commencing January 1 and
ending March 15 of any calendar year, the participant may elect to allocate on
April 1 of such year to a deferred compensation shareholder’s equity account
compensation payable on April 1 of such year which he has previously elected to
defer or amounts in the participant’s cash account on such date (in increments
of 10%) of such compensation or cash account balance.  The amounts so allocated shall be expressed
in units, the number of which shall be equal to such amount divided by the
shareholder’s equity per share as reported in the Company’s Annual Report to
Shareholders for the year just ended. Generally,  amounts allocated to a shareholder’s equity
account may not thereafter be reallocated to any other account; provided,
however, that amounts of compensation deferred by a participant into a
shareholder’s equity account on or prior to December 31, 2005 may be
reallocated to a cash account by sending written (including email) notice of such
reallocation to the Corporate Secretary on or before December 31, 2006;
provided, further, however, that the return on investment of such reallocated
compensation during the 2007 calendar year shall be the lesser of (i) the
interest earned under Section 5(b), and (ii) the amount that would have been
earned on such reallocated compensation had it remained in a shareholder’s
equity account.  For calendar years after
2007, returns on investment of amounts reallocated to a cash account in
accordance with the immediately preceding sentence shall be determined in
accordance with Section 5(b).

On each date that the
Company pays a regular cash dividend on shares of its Common Share outstanding,
the participant’s shareholder’s equity account shall be credited with a number
of units equal to the amount of such a dividend per share multiplied by the
number of units in the participant’s shareholder’s equity account on such date
divided by the Market Value on such dividend date or on the trading day next
preceding such date if the dividend payment date is not a trading day.  The value of the units in the participant’s 

 2
 

 

 

shareholder’s equity
account on any given date shall be determined by reference to the shareholder’s
equity at the close of the most recent fiscal year.

(e)                                  Recapitalization.  The number of units in the participant’s
market value and shareholder’s equity accounts shall be proportionally adjusted
for any increase or decrease in the number of issued shares of Common Stock of
the Company resulting from a subdivision or consolidation of shares or other
capital adjustment, or the payment of a stock dividend or other increase or
decrease in such shares effected without receipt of consideration by the
Company, or any distribution or spin-off of assets (other than cash) to the
shareholders of the Company.

Section 6. 
Period of Deferral

A
participant may elect to defer receipt of compensation either (a) until a
specified year in the future or (b) until the participant’s termination of
service as a Director of the Company.  If
alternative (a) is elected, actual payment will be made or will commence within
ninety days after the beginning of the year specified.  If alternative (b) is elected, payment will
be made or will commence within ninety days after termination of services as a
Director of the Company.

Section 7. 
Form of Payment

A
participant may elect to receive the compensation deferred under the plan in
either (a) a lump sum or (b) a number of annual installments as specified by
the participants.  All amounts shall be
paid in cash except that the market value account shall be paid in shares of
the Company’s Common Stock (other than any fractional share which shall be paid
in cash).

Section 8. 
Death or Disability Prior to Receipt

In
the event that a participant dies or becomes totally and permanently disabled
prior to receipt of any or all of the amounts payable to the participant
pursuant to the Plan, any amounts remaining in the participant’s deferred
compensation account shall be paid to his estate or personal representative in
a lump sum within ninety (90) days following the Company’s notification of the
participant’s death or disability.

Section 9. 
Time of Election of Deferral

The
Plan Year shall be the period from July 1, 1987 to December 31, 1987 and effective
January 1, 1988, the period commencing January 1 and ending December 31 of each
year.

An
election to defer compensation may be made by a nominee for election as a
Director prior to, or concurrently with the nominee’s election for, the term
for which the nominee is being elected, and may be made by a person then
currently serving as a Director for the next succeeding Plan Year no later than
the preceding December 15th (or June 15, 1987 for the Plan Year beginning July
1, 1987).

Section 10. 
Manner of Electing Deferral

A
participant may elect to defer stipend and/or meeting fee compensation by
giving written notice to the Secretary of the Company on a form provided by the
Company, which notice shall include the accounts to which such deferred amounts
are to be allocated and the percentage (in 

 3
 

 

 

increments
of 10%) of such amounts to be allocated to each account, the period of
deferral, and the form of payment, including the number of installments.

Section
11.  Effect of Election

An election to defer
compensation shall be irrevocable once the Plan Year to which it applies has
commenced.  An election covering more
than one Plan Year may be revoked or modified with respect to Plan Years not
yet begun by notifying the Secretary of the Company in writing at least fifteen
(15) days prior to the commencement of such Plan Year.  Notwithstanding anything in the Plan to the
contrary, a participant’s deferred compensation accounts may be reduced from
time to time in connection with the purchase of life insurance on the life of
the participant pursuant to the Company’s Estate Enhancement Program.  Such reduction shall be in accordance with
rules promulgated from time to time by the administrators identified in Section
15 and any such life insurance contract shall contain such terms as such
administrators shall determine.

Section 12. 
Participant’s Rights Unsecured

The
right of any participant to receive future payments under the provisions of the
Plan shall be an unsecured claim against the general assets of the Company, or
as applicable, the participating subsidiary.

Section 13. 
Statement of Accounts

Statements
will be sent to each participant by April 1st of each year as to the value of
the participant’s deferred compensation accounts as of the end of the preceding
December.

Section 14. 
Assignability

No
right to receive payments hereunder shall be transferable or assignable by a
participant, except by will or by the laws of descent and distribution.  The participant may not sell, assign,
transfer, pledge or otherwise encumber any interest in the participant’s
deferred compensation account and any attempt to do so shall be void against,
and shall not be recognized by, the Company or participating subsidiaries.

Section 15. 
Administration

The
Plan shall be administered by the Secretary and the General Counsel of the
Company, who together shall have the authority to adopt rules and regulations
for carrying out the Plan and interpret, construe and implement the provisions
of the Plan.

Section 16. 
Amendment

The
Plan may at any time or from time to time be amended, modified or terminated by
the Company.  No amendment, modification
or termination shall, without the consent of the participant, adversely affect
accruals in such participant’s deferred compensation account or accounts at the
time of such amendment, modification or termination.

 4Exhibit 4.15

 

COMBINATORX, INCORPORATED

and

                                                                                   ,
as Trustee

INDENTURE

Dated as of                                    ,                

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  PAGE

  
	
  ARTICLE 1

  	
   

  	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  	
  1

  
	
  1.1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
  1.2.

  	
   

  	
  OTHER DEFINITIONS

  	
   

  	
  5

  
	
  1.3.

  	
   

  	
  INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT

  	
   

  	
  6

  
	
  1.4.

  	
   

  	
  RULES OF CONSTRUCTION

  	
   

  	
  6

  
	
  ARTICLE 2

  	
   

  	
  THE SECURITIES

  	
   

  	
  7

  
	
  2.1.

  	
   

  	
  ISSUABLE IN SERIES

  	
   

  	
  7

  
	
  2.2.

  	
   

  	
  ESTABLISHMENT OF TERMS OF SERIES OF SECURITIES

  	
   

  	
  7

  
	
  2.3.

  	
   

  	
  EXECUTION AND AUTHENTICATION

  	
   

  	
  9

  
	
  2.4.

  	
   

  	
  REGISTRAR AND PAYING AGENT

  	
   

  	
  10

  
	
  2.5.

  	
   

  	
  PAYING AGENT TO HOLD ASSETS IN TRUST

  	
   

  	
  11

  
	
  2.6.

  	
   

  	
  SECURITYHOLDER LISTS

  	
   

  	
  11

  
	
  2.7.

  	
   

  	
  TRANSFER AND EXCHANGE

  	
   

  	
  12

  
	
  2.8.

  	
   

  	
  REPLACEMENT SECURITIES

  	
   

  	
  12

  
	
  2.9.

  	
   

  	
  OUTSTANDING SECURITIES

  	
   

  	
  13

  
	
  2.10.

  	
   

  	
  WHEN TREASURY SECURITIES DISREGARDED; DETERMINATION
  OF HOLDERS’ ACTION

  	
   

  	
  13

  
	
  2.11.

  	
   

  	
  TEMPORARY SECURITIES

  	
   

  	
  13

  
	
  2.12.

  	
   

  	
  CANCELLATION

  	
   

  	
  14

  
	
  2.13.

  	
   

  	
  PAYMENT OF INTEREST; DEFAULTED INTEREST; COMPUTATION
  OF INTEREST

  	
   

  	
  14

  
	
  2.14.

  	
   

  	
  CUSIP NUMBER

  	
   

  	
  15

  
	
  2.15.

  	
   

  	
  PROVISIONS FOR GLOBAL SECURITIES

  	
   

  	
  15

  
	
  2.16.

  	
   

  	
  PERSONS DEEMED OWNERS

  	
   

  	
  16

  
	
  ARTICLE 3

  	
   

  	
  REDEMPTION

  	
   

  	
  16

  
	
  3.1.

  	
   

  	
  NOTICES TO TRUSTEE

  	
   

  	
  16

  
	
  3.2.

  	
   

  	
  SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED

  	
   

  	
  17

  
	
  3.3.

  	
   

  	
  NOTICE OF REDEMPTION

  	
   

  	
  17

  
	
  3.4.

  	
   

  	
  EFFECT OF NOTICE OF REDEMPTION

  	
   

  	
  18

  
	
  3.5.

  	
   

  	
  DEPOSIT OF REDEMPTION PRICE

  	
   

  	
  18

  
	
  3.6.

  	
   

  	
  SECURITIES REDEEMED IN PART

  	
   

  	
  19

  

 

 i
 

 

 

TABLE OF CONTENTS

(continued)

	
  

  	
   

  	
   

  	
   

  	
  PAGE

  
	
  ARTICLE 4

  	
   

  	
  COVENANTS

  	
   

  	
  19

  
	
  4.1.

  	
   

  	
  PAYMENT OF SECURITIES

  	
   

  	
  19

  
	
  4.2.

  	
   

  	
  SEC REPORTS

  	
   

  	
  19

  
	
  4.3.

  	
   

  	
  WAIVER OF STAY, EXTENSION OR USURY LAWS

  	
   

  	
  19

  
	
  4.4.

  	
   

  	
  COMPLIANCE CERTIFICATE

  	
   

  	
  20

  
	
  4.5.

  	
   

  	
  CORPORATE EXISTENCE

  	
   

  	
  20

  
	
  ARTICLE 5

  	
   

  	
  SUCCESSOR CORPORATION

  	
   

  	
  20

  
	
  5.1.

  	
   

  	
  LIMITATION ON CONSOLIDATION, MERGER AND SALE OF
  ASSETS

  	
   

  	
  20

  
	
  5.2.

  	
   

  	
  SUCCESSOR PERSON SUBSTITUTED

  	
   

  	
  21

  
	
  ARTICLE 6

  	
   

  	
  DEFAULTS AND REMEDIES

  	
   

  	
  21

  
	
  6.1.

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  21

  
	
  6.2.

  	
   

  	
  ACCELERATION

  	
   

  	
  23

  
	
  6.3.

  	
   

  	
  REMEDIES

  	
   

  	
  23

  
	
  6.4.

  	
   

  	
  WAIVER OF PAST DEFAULTS AND EVENTS OF DEFAULT

  	
   

  	
  24

  
	
  6.5.

  	
   

  	
  CONTROL BY MAJORITY

  	
   

  	
  24

  
	
  6.6.

  	
   

  	
  LIMITATION ON SUITS

  	
   

  	
  24

  
	
  6.7.

  	
   

  	
  RIGHTS OF HOLDERS TO RECEIVE PAYMENT

  	
   

  	
  25

  
	
  6.8.

  	
   

  	
  COLLECTION SUIT BY TRUSTEE

  	
   

  	
  25

  
	
  6.9.

  	
   

  	
  TRUSTEE MAY FILE PROOFS OF CLAIM

  	
   

  	
  25

  
	
  6.10.

  	
   

  	
  PRIORITIES

  	
   

  	
  26

  
	
  6.11.

  	
   

  	
  UNDERTAKING FOR COSTS

  	
   

  	
  26

  
	
  ARTICLE 7

  	
   

  	
  TRUSTEE

  	
   

  	
  26

  
	
  7.1.

  	
   

  	
  DUTIES OF TRUSTEE

  	
   

  	
  26

  
	
  7.2.

  	
   

  	
  RIGHTS OF TRUSTEE

  	
   

  	
  27

  
	
  7.3.

  	
   

  	
  INDIVIDUAL RIGHTS OF TRUSTEE

  	
   

  	
  28

  
	
  7.4.

  	
   

  	
  TRUSTEE’S DISCLAIMER

  	
   

  	
  28

  
	
  7.5.

  	
   

  	
  NOTICE OF DEFAULT

  	
   

  	
  29

  
	
  7.6.

  	
   

  	
  REPORTS BY TRUSTEE TO HOLDERS

  	
   

  	
  29

  
	
  7.7.

  	
   

  	
  COMPENSATION AND INDEMNITY

  	
   

  	
  29

  
	
  7.8.

  	
   

  	
  REPLACEMENT OF TRUSTEE

  	
   

  	
  30

  

 

 ii
 

 

 

TABLE OF CONTENTS

(continued)

	
  

  	
   

  	
   

  	
   

  	
  PAGE

  
	
  7.9.

  	
   

  	
  SUCCESSOR TRUSTEE BY CONSOLIDATION, MERGER OR
  CONVERSION

  	
   

  	
  31

  
	
  7.10.

  	
   

  	
  ELIGIBILITY; DISQUALIFICATION

  	
   

  	
  31

  
	
  7.11.

  	
   

  	
  PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY

  	
   

  	
  31

  
	
  7.12.

  	
   

  	
  PAYING AGENTS

  	
   

  	
  31

  
	
  ARTICLE 8

  	
   

  	
  AMENDMENTS, SUPPLEMENTS AND WAIVERS

  	
   

  	
  32

  
	
  8.1.

  	
   

  	
  WITHOUT CONSENT OF HOLDERS

  	
   

  	
  32

  
	
  8.2.

  	
   

  	
  WITH CONSENT OF HOLDERS

  	
   

  	
  32

  
	
  8.3.

  	
   

  	
  COMPLIANCE WITH TRUST INDENTURE ACT

  	
   

  	
  34

  
	
  8.4.

  	
   

  	
  REVOCATION AND EFFECT OF CONSENTS

  	
   

  	
  34

  
	
  8.5.

  	
   

  	
  NOTATION ON OR EXCHANGE OF SECURITIES

  	
   

  	
  34

  
	
  8.6.

  	
   

  	
  TRUSTEE TO SIGN AMENDMENTS, ETC.

  	
   

  	
  35

  
	
  ARTICLE 9

  	
   

  	
  DISCHARGE OF INDENTURE; DEFEASANCE

  	
   

  	
  35

  
	
  9.1.

  	
   

  	
  DISCHARGE OF INDENTURE

  	
   

  	
  35

  
	
  9.2.

  	
   

  	
  LEGAL DEFEASANCE

  	
   

  	
  35

  
	
  9.3.

  	
   

  	
  COVENANT DEFEASANCE

  	
   

  	
  36

  
	
  9.4.

  	
   

  	
  CONDITIONS TO LEGAL DEFEASANCE OR COVENANT
  DEFEASANCE

  	
   

  	
  36

  
	
  9.5.

  	
   

  	
  DEPOSITED MONEY AND U.S. AND FOREIGN GOVERNMENT
  OBLIGATIONS TO BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS

  	
   

  	
  38

  
	
  9.6.

  	
   

  	
  REINSTATEMENT

  	
   

  	
  38

  
	
  9.7.

  	
   

  	
  MONEYS HELD BY PAYING AGENT

  	
   

  	
  38

  
	
  9.8.

  	
   

  	
  MONEYS HELD BY TRUSTEE

  	
   

  	
  39

  
	
  ARTICLE 10

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  39

  
	
  10.1.

  	
   

  	
  TRUST INDENTURE ACT CONTROLS

  	
   

  	
  39

  
	
  10.2.

  	
   

  	
  NOTICES

  	
   

  	
  39

  
	
  10.3.

  	
   

  	
  COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS

  	
   

  	
  41

  
	
  10.4.

  	
   

  	
  CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT

  	
   

  	
  41

  
	
  10.5.

  	
   

  	
  STATEMENT REQUIRED IN CERTIFICATE AND OPINION

  	
   

  	
  41

  
	
  10.6.

  	
   

  	
  RULES BY TRUSTEE AND AGENTS

  	
   

  	
  41

  
	
  10.7.

  	
   

  	
  BUSINESS DAYS; LEGAL HOLIDAYS; PLACE OF PAYMENT

  	
   

  	
  41

  
	
  10.8.

  	
   

  	
  GOVERNING LAW

  	
   

  	
  42

  

 

 iii
 

 

 

TABLE OF CONTENTS

(continued)

	
  

  	
   

  	
   

  	
   

  	
  PAGE

  
	
  10.9.

  	
   

  	
  NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS

  	
   

  	
  42

  
	
  10.10.

  	
   

  	
  NO RECOURSE AGAINST OTHERS

  	
   

  	
  42

  
	
  10.11.

  	
   

  	
  SUCCESSORS

  	
   

  	
  42

  
	
  10.12.

  	
   

  	
  MULTIPLE COUNTERPARTS

  	
   

  	
  42

  
	
  10.13.

  	
   

  	
  TABLE OF CONTENTS, HEADINGS, ETC.

  	
   

  	
  42

  
	
  10.14.

  	
   

  	
  SEVERABILITY

  	
   

  	
  43

  
	
  10.15.

  	
   

  	
  SECURITIES IN A FOREIGN CURRENCY OR IN EURO

  	
   

  	
  43

  
	
  10.16.

  	
   

  	
  JUDGMENT CURRENCY

  	
   

  	
  43

  

 

 iv

 

 

CROSS-REFERENCE TABLE

	
  TIA SECTION

  	
   

  	
  INDENTURE
  SECTION

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N/A

  
	
  (a)(4)

  	
   

  	
  N/A

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.8; 7.10; 10.4

  
	
  (b)(1)

  	
   

  	
  7.10

  
	
  (b)(9)

  	
   

  	
  7.10

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  312(a)

  	
   

  	
  2.6

  
	
  (b)

  	
   

  	
  10.3

  
	
  (c)

  	
   

  	
  10.3

  
	
  313(a)

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
  7.6

  
	
  (b)(2)

  	
   

  	
  7.6

  
	
  (c)

  	
   

  	
  7.6; 10.4

  
	
  (d)

  	
   

  	
  7.6

  
	
  314(a)

  	
   

  	
  4.2; 4.4; 10.4

  
	
  (b)

  	
   

  	
  N/A

  
	
  (c)(1)

  	
   

  	
  10.4; 10.5

  
	
  (c)(2)

  	
   

  	
  10.4; 10.5

  
	
  (c)(3)

  	
   

  	
  N/A

  
	
  (d)

  	
   

  	
  N/A

  
	
  (e)

  	
   

  	
  10.5

  
	
  (f)

  	
   

  	
  N/A

  
	
  315(a)

  	
   

  	
  7.1, 7.2

  
	
  (b)

  	
   

  	
  7.5; 10.2

  

 

 v
 

 

 

	
  TIA SECTION

  	
   

  	
  INDENTURE
  SECTION

  
	
  (c)

  	
   

  	
  7.1

  
	
  (d)

  	
   

  	
  6.5; 7.1; 7.2

  
	
  (e)

  	
   

  	
  6.11

  
	
  316(a)(last
  sentence)

  	
   

  	
  2.10

  
	
  (a)(1)(A)

  	
   

  	
  6.5

  
	
  (a)(1)(B)

  	
   

  	
  6.4

  
	
  (a)(2)

  	
   

  	
  8.2

  
	
  (b)

  	
   

  	
  6.7

  
	
  (c)

  	
   

  	
  8.4

  
	
  317(a)(1)

  	
   

  	
  6.8

  
	
  (a)(2)

  	
   

  	
  6.9

  
	
  (b)

  	
   

  	
  2.5; 7.12

  
	
  318(a)

  	
   

  	
  10.1

  

 

N/A means not
applicable

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

 vi

 

INDENTURE, dated as of                  ,
     , by and between CombinatoRx, Incorporated, a
Delaware corporation, as Issuer (the “Company”) and                             ,
a                            
organized under the laws of                                 ,
as Trustee (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
debentures, notes or other evidences of indebtedness to be issued in one or
more series (the “Securities”), as herein provided, up to such principal amount
as may from time to time be authorized in or pursuant to one or more
resolutions of the Board of Directors or by supplemental indenture.

All things necessary to make this Indenture a valid
agreement of the Company in accordance with its terms have been done, and the
execution and delivery thereof have been in all respects duly authorized by the
parties hereto.

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 of a
Series thereof, as follows:

ARTICLE 1

DEFINITIONS
AND INCORPORATION BY REFERENCE

1.1.                              DEFINITIONS.

“Affiliate” of any specified Person means any other
Person which directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such specified
Person.  For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by,” and “under common control with”), as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of such Person, whether
through the ownership of voting securities, by agreement or otherwise.

“Agent” means any Registrar, Paying Agent,
co-registrar or agent for service of notices and demands.

“Board of Directors” means the Board of Directors of
the Company or any committee duly authorized to act therefor.

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

“Capital Stock” means, with respect to any Person, any
and all shares or other equivalents 

 

(however designated) of
capital stock, partnership interests or any other participation, right or other
interest in the nature of an equity interest in such Person or any option,
warrant or other security convertible into any of the foregoing.

“Company” means the party named as such in the first
paragraph of this Indenture until a successor replaces such party pursuant to
Article 5 of this Indenture and thereafter means the successor and any other
primary obligor on the Securities.

“Company Order” means a written order signed in the
name of the Company by two Officers, one of whom must be its Chief Executive
Officer or its Chief Financial Officer.

“Company Request” means any written request signed in
the name of the Company by its Chief Executive Officer, its President, any Vice
President, its Chief Financial Officer or its Treasurer and attested to by the
Secretary or any Assistant Secretary of the Company.

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

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

“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
Global Securities, the Person designated as Depository for such Series by the
Company, which Depository shall be a clearing agency registered under the
Exchange Act, until a successor Depository shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter “Depository” shall
mean each Person who is then a Depository hereunder, and if at any time there
is more than one such Person, such Persons.

“Dollars” means the currency of the United States of
America.

“Euro” means the single currency to be introduced at
the start of the third stage of economic and monetary union pursuant to the
treaty establishing the European Economic Community, as amended by the Treaty
on European Union signed at Maastricht on February 7, 1992.

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

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

“Foreign Government Obligations” means with respect to
Securities of any Series that are denominated in a Foreign Currency, (i) direct
obligations of the government that issued or caused to be issued such currency
for the payment of which obligations its full faith and credit is pledged or
(ii) obligations of a Person controlled or supervised by or acting as an agency
or instrumentality of such government the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not callable
or redeemable at the option of the issuer thereof.

 2
 

 

 

“GAAP” means generally accepted accounting principles
consistently applied as in effect in the United States from time to time.

“Global Security” or “Global Securities” means a
Security or Securities, as the case may be, in the form established pursuant to
Section 2.2, 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, and bearing the legend set forth in Section 2.15(c) (or
such legend as may be specified as contemplated by Section 2.2 for such
Securities).

“Holder” or “Securityholder” means the Person in whose
name a Security is registered on the Registrar’s books.

“Indebtedness” means (without duplication), with
respect to any Person, any indebtedness at any time outstanding, secured or
unsecured, contingent or otherwise, which is for borrowed money (whether or not
the recourse of the lender is to the whole of the assets of such Person or only
to a portion thereof), or evidenced by bonds, notes, debentures or similar
instruments or representing the balance deferred and unpaid of the purchase
price of any property (excluding any balances that constitute accounts payable
or trade payables, and other accrued liabilities arising in the ordinary course
of business) if and to the extent any of the foregoing indebtedness would
appear as a liability upon a balance sheet of such Person prepared in
accordance with GAAP.

“Indenture” means this Indenture as amended, restated
or supplemented from time to time.

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

“Lien” means, with respect to any property or assets
of any Person, any mortgage or deed of trust, pledge, hypothecation,
assignment, deposit arrangement, security interest, lien, charge, easement,
encumbrance, preference, priority, or other security agreement or preferential
arrangement of any kind or nature whatsoever on or with respect to such
property or assets (including, without limitation, any capitalized lease
obligation, conditional sales, or other title retention agreement having
substantially the same economic effect as any of the foregoing).

“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, notice
of option to elect payment or otherwise.

“Officer” means the Chief Executive Officer, the
President, any Vice President, the Chief Financial Officer, the Treasurer or
the Secretary of the Company or any other officer designated by the Board of
Directors, as the case may be.

“Officers’ Certificate” means, with respect to any
Person, a certificate signed by the Chairman, Chief Executive Officer, the
President or any Senior or Executive Vice President, and the Chief Financial
Officer or any Treasurer of such Person that shall comply with applicable
provisions of this Indenture.

 3
 

 

 

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

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

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

“Responsible Officer” when used with respect to the
Trustee, means any officer within the corporate trust department or division of
the Trustee (or any successor group of the Trustee) or any other officer of the
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his knowledge of and familiarity with the particular subject.

“SEC” means the United States Securities and Exchange
Commission as constituted from time to time or any successor performing
substantially the same functions.

“Securities” means the securities that are issued
under this Indenture, as amended or supplemented from time to time pursuant to
this Indenture.

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

“Series” or “Series of Securities” means each series
of debentures, notes or other debt instruments of the Company created pursuant
to Sections 2.1 or 2.2 hereof.

“Significant Subsidiary” means (i) any direct or
indirect Subsidiary of the Company that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the
Securities Act, as such regulation is in effect on the date hereof, or (ii) any
group of direct or indirect Subsidiaries of the Company that, taken together as
a group, would be a “significant subsidiary” as defined in Article 1, Rule 1-02
of Regulation S-X, promulgated pursuant to the Securities Act, as such
regulation is in effect on the date hereof.

“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,
and when used with respect to any other Indebtedness, means the date specified
in the instrument governing such Indebtedness as the fixed date on which the
principal of such Indebtedness, or any installment of interest thereon, is due
and payable.

“Subsidiary” of any specified Person means any
corporation, limited liability company, partnership, joint venture, association
or other business entity, whether now existing or hereafter organized or
acquired, (i) in the case of a corporation, of which more than 50% of the total
voting power of the Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors thereof is held, directly
or indirectly by such Person or any of 

 4
 

 

its Subsidiaries; or (ii)
in the case of a partnership, joint venture, association or other business
entity, with respect to which such Person or any of its Subsidiaries has the
power to direct or cause the direction of the management and policies of such
entity by contract or otherwise or if in accordance with GAAP such entity is
consolidated with such Person for financial statement purposes.

“TIA” means the Trust Indenture Act of 1939 (15 U.S.
Code Section 77aaa-77bbbb) as in effect on the date of this Indenture (except
as provided in Section 8.3 hereof).

“Trustee” means the party named as such in this
Indenture until a successor replaces it pursuant to this Indenture and
thereafter means the successor, 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.

“U.S. Government Obligations” means direct
non-callable obligations of, or non-callable obligations guaranteed by, the
United States of America for the payment of which obligation or guarantee the
full faith and credit of the United States of America is pledged.

1.2.                              OTHER
DEFINITIONS.

The definitions of the following terms may be found in
the sections indicated as follows: 

	
  TERM

  	
   

  	
  DEFINED IN
  SECTION

  
	
  “Bankruptcy Law”

  	
   

  	
  6.1

  
	
   

  	
   

  	
   

  
	
  “Business Day”

  	
   

  	
  10.7

  
	
   

  	
   

  	
   

  
	
  “Covenant
  Defeasance”

  	
   

  	
  9.3

  
	
   

  	
   

  	
   

  
	
  “Custodian”

  	
   

  	
  6.1

  
	
   

  	
   

  	
   

  
	
  “Event of
  Default”

  	
   

  	
  6.1

  
	
   

  	
   

  	
   

  
	
  “Journal”

  	
   

  	
  10.15

  
	
   

  	
   

  	
   

  
	
  “Judgment
  Currency”

  	
   

  	
  10.16

  
	
   

  	
   

  	
   

  
	
  “Legal
  Defeasance”

  	
   

  	
  9.2

  
	
   

  	
   

  	
   

  
	
  “Legal Holiday”

  	
   

  	
  10.7

  
	
   

  	
   

  	
   

  
	
  “Market Exchange
  Rate”

  	
   

  	
  10.15

  
	
   

  	
   

  	
   

  
	
  “New York
  Banking Day”

  	
   

  	
  10.16

  
	
   

  	
   

  	
   

  
	
  “New York Paying
  Agent”

  	
   

  	
  2.4

  
	
   

  	
   

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.4

  
	
   

  	
   

  	
   

  
	
  “Place of
  Payment”

  	
   

  	
  10.7

  
	
   

  	
   

  	
   

  
	
  “Registrar”

  	
   

  	
  2.4

  
	
   

  	
   

  	
   

  
	
  “Required
  Currency”

  	
   

  	
  10.16

  
	
   

  	
   

  	
   

  
	
  “Service Agent”

  	
   

  	
  2.4

  

 

 5
 

 

 

1.3.                              INCORPORATION
BY REFERENCE OF TRUST INDENTURE ACT.

Whenever this Indenture refers to a provision of the
TIA, the portion of such provision required to be incorporated herein in order
for this Indenture to be qualified under the TIA is incorporated by reference
in and made a part of this Indenture. 
The following TIA terms used in this Indenture have the following
meanings:

“Commission” means the SEC.

“indenture securities” means the Securities.

“indenture securityholder” means a Holder or
Securityholder.

“indenture to be qualified” means this Indenture.

“indenture trustee” or “institutional trustee” means
the Trustee.

“obligor on the indenture securities” means the
Company.

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

1.4.                              RULES
OF CONSTRUCTION.

Unless the context otherwise requires:

(1)           a term has the meaning assigned to it
herein, whether defined expressly or by reference;

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

(3)           “or” is not exclusive;

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

(5)           words used herein implying any gender
shall apply to each gender; and

(6)           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.

 6
 

 

 

ARTICLE 2

THE SECURITIES

2.1.                              ISSUABLE
IN SERIES.

The aggregate principal amount of Securities that may
be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more
Series. All Securities of a Series shall be identical except as may be set
forth in a Board Resolution, a supplemental indenture or an Officers’
Certificate detailing the adoption of the terms thereof pursuant to the
authority granted under a Board Resolution. 
In the case of Securities of a Series to be issued from time to time,
the Board Resolution, Officers’ Certificate or supplemental indenture may
provide for the method by which specified terms (such as interest rate, Stated
Maturity, record date or date from which interest shall accrue) are to be
determined. Securities may differ between Series in respect of any matters,
provided that all Series of Securities shall be equally and ratably entitled to
the benefits of the Indenture.

2.2.                              ESTABLISHMENT
OF TERMS OF SERIES OF SECURITIES.

At or prior to the issuance of any Securities within a
Series, the following shall be established (as to the Series generally, in the
case of Subsection 2.2(1) and either as to such Securities within the Series or
as to the Series generally in the case of Subsections 2.2(2) through 2.2(24) by
a Board Resolution, a supplemental indenture or an Officers’ Certificate, in
each case, pursuant to authority granted under a Board Resolution:

(1)           the title of the Series (which shall
distinguish the Securities of that particular Series from the 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 2.7, 2.8, 2.11, 3.6 or 8.5);

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

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

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

 7
 

 

 

(6)           the place or places where the
principal of and interest and premium, if any, on the Securities of the Series
shall be payable, or the method of such payment, if by wire transfer, mail or
other means;

(7)           if applicable, the period or periods
within which, the price or prices at which and the terms and conditions upon
which the 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 or purchase the 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 or
purchased, in whole or in part, pursuant to such obligation;

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

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

(11)         the forms of the Securities of the
Series in bearer (if to be issued outside of the United States) or fully
registered form (and, if in fully registered form, whether the Securities will
be issuable as Global Securities);

(12)         if other than the principal amount
thereof, the portion of the principal amount of the Securities of the Series
that shall be payable upon declaration of acceleration of the Maturity thereof
pursuant to Section 6.2;

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

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

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

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

 8
 

 

 

(17)         the provisions, if any, relating to any
collateral provided for the Securities of the Series;

(18)         any addition to or change in the
covenants set forth in Articles 4 or 5 that applies to Securities of the
Series;

(19)         any addition to or change in the Events
of Default which applies to any Securities of the Series and any change in the
right of the Trustee or the requisite Holders of such Securities to declare the
principal amount thereof due and payable pursuant to Section 6.2;

(20)         the terms and conditions, if any, for
conversion of the Securities into or exchange of the Securities for shares of
common stock or preferred stock of the Company that apply to Securities of the
Series;

(21)         any depositories, interest rate
calculation agents, exchange rate calculation agents or other agents with
respect to Securities of such Series if other than those appointed herein;

(22)         the terms and conditions, if any, upon
which the Securities shall be subordinated in right of payment to other
Indebtedness of the Company;

(23)         if applicable, that the Securities of
the Series, in whole or any specified part, shall be defeasible pursuant to
Article 9; and

(24)         any other terms of the Securities of
the Series (which terms shall not be inconsistent with the provisions of this
Indenture, except as permitted by Section 8.1, but which may modify or delete
any provision of this Indenture insofar as it applies to such Series).

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

2.3.                              EXECUTION
AND AUTHENTICATION.

The Securities shall be executed on behalf of the
Company by two Officers of the Company or an Officer and an Assistant Secretary
of the Company. Each such signature may be either manual or facsimile. The Company’s
seal may be impressed, affixed, imprinted or reproduced on the Securities and
may be in facsimile form.

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

A Security shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.  The signature shall be conclusive evidence
that the Security has been authenticated under this Indenture.  The Trustee shall at any time, and from time
to time, 

 9
 

 

authenticate Securities
for original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate, upon receipt by the
Trustee of a Company Order. Such Company Order may authorize authentication and
delivery pursuant to oral or electronic instructions from the Company or its
duly authorized agent or agents, which oral instructions shall be promptly
confirmed in writing.  Each Security
shall be dated the date of its authentication.

The aggregate principal amount of Securities of any
Series outstanding at any time may not exceed any limit upon the maximum
principal amount for such Series set forth in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate delivered pursuant to
Section 2.2, except as provided in Section 2.8.

Prior to the issuance of Securities of any Series, the
Trustee shall have received and (subject to Section 7.2) shall be fully
protected in relying on: (a) the Board Resolution, supplemental indenture
hereto or Officers’ Certificate establishing the form of the Securities of that
Series or of Securities within that Series and the terms of the Securities of
that Series or of Securities within that Series, (b) an Officers’ Certificate
complying with Section 10.4, and (c) an Opinion of Counsel complying with
Section 10.4.

The Trustee shall have the right to decline to
authenticate and deliver any Securities of such Series: (a) if the Trustee,
being advised in writing by outside counsel, determines that such action may
not lawfully be taken; or (b) if the Trustee in good faith by its board of
directors or trustees, executive committee or a trust committee of directors
and/or vice-presidents shall reasonably determine that such action would expose
the Trustee to personal liability, or cause it to have a conflict of interest
with respect to Holders of any then outstanding Series of Securities.

The Trustee may appoint an authenticating agent
acceptable to the Company to authenticate Securities. An authenticating agent
may authenticate Securities whenever the Trustee may do so.  Any appointment shall be evidenced by
instrument signed by an authorized officer of the Trustee, a copy of which
shall be furnished to the Company.  Each
reference in this Indenture to authentication by the Trustee includes
authentication by such agent.  An
authenticating agent has the same rights as an Agent to deal with the Company
or an Affiliate of the Company.

2.4.                              REGISTRAR
AND PAYING AGENT.

The Company shall maintain in each Place of Payment
for any Series of Securities (i) an office or agency where such Securities may
be presented for registration of transfer or for exchange (“Registrar”), (ii)
an office or agency where such Securities may be presented for payment (“Paying
Agent”) (PROVIDED that the Company shall at all times maintain a Paying Agent
in the Borough of Manhattan, The City of New York, State of New York (the “New
York Paying Agent”), and PROVIDED, FURTHER, 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 register for the
Securities maintained by the Registrar, and (iii) an office or agency where
notices and demands to or upon the Company in respect of the Securities and
this Indenture may be served (“Service Agent”). 
The Registrar shall keep a register of the Securities and of their
transfer and exchange.  The Company may
have one or more co-registrars 

 10
 

 

and one or more
additional paying agents.  The Company
shall give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. 
If at any time the Company shall fail to maintain any such required
office or to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the
Trustee as set forth in Section 10.2.  If
the Company acts as Paying Agent, it shall segregate the money held by it for
the payment of principal of and premium, if any, and interest on the Securities
and hold it as a separate trust fund. 
The Company may change any Paying Agent, Registrar or co-registrar
without notice to any Securityholder.

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

The Company shall enter into an appropriate agency
agreement with any Registrar or Paying Agent not a party to this
Indenture.  The agreement shall implement
the provisions of this Indenture that relate to such Agent.  The Company shall notify the Trustee of the
name and address of any such Agent.  If
the Company fails to maintain a Registrar or Paying Agent, or agent for service
of notices and demands, or fails to give the foregoing notice, the Trustee
shall act as such.  The Company hereby
appoints the Trustee as the initial Registrar, Paying Agent and Service Agent
for each Series unless another Registrar, Paying Agent or Service Agent, as the
case may be, is appointed prior to the time Securities of that Series are first
issued.  The Company hereby initially
designates the Corporate Trust Office of the Trustee as such office of the
Company.  The Company further designates                                                         ,
as the New York Paying Agent, with offices at                                 .

2.5.                              PAYING
AGENT TO HOLD ASSETS IN TRUST.

The Trustee as Paying Agent shall, and the Company
shall require each Paying Agent other than the Trustee to agree in writing that
each Paying Agent shall hold in trust for the benefit of the Holders of any
Series of Securities or the Trustee all assets held by the Paying Agent for the
payment of principal of, or interest or premium (if any) on, such Series of
Securities (whether such assets have been distributed to it by the Company or
any other obligor on such Series of Securities), and the Company and the Paying
Agent shall notify the Trustee in writing of any Default by the Company (or any
other obligor on such Series of Securities) in making any such payment.  The Company at any time may require a Paying
Agent to distribute all assets held by it to the Trustee and account for any
assets disbursed and the Trustee may at any time during the continuance of any
payment default with respect to any Series of Securities, upon written request
to a Paying Agent, require such Paying Agent to distribute all assets held by
it to the Trustee and to account for any assets distributed. Upon distribution
to the Trustee of all assets that shall have been delivered by the Company to
the Paying Agent, the Paying Agent shall have no further liability for such
assets.

 11
 

 

 

2.6.                              SECURITYHOLDER
LISTS.

The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Securityholders of each Series of Securities.  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee as of each regular record date for the
payment of interest on the Securities of a Series and before each related
Interest Payment Date, and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Securityholders of each Series of
Securities.

2.7.                              TRANSFER
AND EXCHANGE.

When Securities of a Series are presented to the
Registrar with a request to register the transfer thereof, the Registrar shall
register the transfer as requested if the requirements of applicable law are
met, and when such Securities of a Series are presented to the Registrar with a
request to exchange them for an equal principal amount of other authorized
denominations of Securities of the same Series, the Registrar shall make the
exchange as requested. To permit transfers and exchanges, upon surrender of any
Security for registration of transfer at the office or agency maintained
pursuant to Section 2.4 hereof, the Company shall execute and the Trustee shall
authenticate Securities at the Registrar’s request.

If Securities are issued as Global Securities, the
provisions of Section 2.15 shall apply.

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 Registrar or a co-Registrar) be duly endorsed, or be accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Registrar or a co-Registrar, duly executed by the Holder thereof or his
attorney duly authorized in writing.

Any exchange or transfer shall be without charge,
except that the Company may require payment by the Holder of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation
to a transfer or exchange, but this provision shall not apply to any exchange
pursuant to Section 2.11, 3.6 or 8.5 hereof. 
The Trustee shall not be required to register transfers of Securities of
any Series or to exchange Securities of any Series for a period of 15 days
before the record date for selection for redemption of such Securities.  The Trustee shall not be required to exchange
or register transfers of Securities of any Series called or being called for
redemption in whole or in part, except the unredeemed portion of such Security
being redeemed in part.

2.8.                              REPLACEMENT
SECURITIES.

If a mutilated Security is surrendered to the Trustee
or if the Holder of a Security presents evidence to the satisfaction of the
Company and the Trustee that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Security of the same Series and of like tenor and principal amount
and bearing a number not contemporaneously outstanding. An indemnity bond may
be required by the 

 12
 

 

Company or the Trustee
that is sufficient in the reasonable judgment of the Company or the Trustee, as
the case may be, to protect the Company, the Trustee or any Agent from any loss
which any of them may suffer if a Security is replaced.  The Company may charge such Holder for its
out-of-pocket expenses in replacing a Security, including the fees and expenses
of the Trustee.  Every replacement
Security shall constitute an original additional 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.

2.9.                              OUTSTANDING
SECURITIES.

Securities outstanding at any time are all Securities
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, and those described in this Section 2.9 as not
outstanding.

If a Security is replaced pursuant to Section 2.8
(other than a mutilated Security surrendered for replacement), it ceases to be
outstanding until the Company and the Trustee receive proof satisfactory to
each of them that the replaced Security is held by a bona fide purchaser. A
mutilated Security ceases to be outstanding upon surrender of such Security and
replacement thereof pursuant to Section 2.8.

If a Paying Agent holds on a Redemption Date or the
Stated Maturity money sufficient to pay the principal of, premium, if any, and
accrued interest on Securities payable on that date and is not prohibited from
paying such money to the Holders thereof pursuant to the terms of this
Indenture (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), then on and after that date such
Securities cease to be outstanding and interest on them ceases to accrue.

A Security does not cease to be outstanding solely
because the Company or an Affiliate holds the Security.

2.10.                        WHEN
TREASURY SECURITIES DISREGARDED; DETERMINATION OF HOLDERS’ ACTION.

In determining whether the Holders of the required
aggregate principal amount of the Securities of any Series have concurred in
any direction, waiver or consent, the Securities of any Series owned by the
Company or any other obligor on such Securities or by any Affiliate of any of
them shall be disregarded, except that for the purposes of determining whether
the Trustee shall be protected in relying on any such direction, waiver or
consent, only Securities of such Series which the Trustee actually knows are so
owned shall be so disregarded. Securities of such Series so owned which have
been pledged in good faith shall not be disregarded if the pledgee establishes
to the satisfaction of the Trustee the pledgee’s right so to act with respect
to the Securities of such Series and that the pledgee is not the Company or any
other obligor upon the Securities of such Series or any Affiliate of any of
them.

 13
 

 

 

2.11.                        TEMPORARY
SECURITIES.

Until definitive Securities are ready for delivery,
the Company may prepare and execute and the Trustee shall authenticate
temporary Securities.  Temporary
Securities shall be substantially in the form, and shall carry all rights, of
definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. 
Without unreasonable delay, the Company shall prepare and execute and
the Trustee shall authenticate definitive Securities in exchange for temporary
Securities presented to it without charge to the Holder.

2.12.                        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 for cancellation. 
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.  The Registrar and the Paying
Agent shall forward to the Trustee any Securities surrendered to them for
transfer, exchange or payment.  The
Trustee or, at the direction of the Trustee, the Registrar or the Paying Agent,
and no one else, shall cancel and at the written request of the Company, shall
dispose of all Securities surrendered for transfer, exchange, payment or cancellation.  If the Company shall acquire any of the
Securities, such acquisition shall not operate as a redemption or satisfaction
of the Indebtedness represented by such Securities unless and until the same
are surrendered to the Trustee for cancellation pursuant to this Section
2.12.  No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as
provided in this Section 2.12, except as expressly permitted by this Indenture.

2.13.                        PAYMENT OF
INTEREST; DEFAULTED INTEREST; COMPUTATION OF INTEREST.

Except as otherwise provided as contemplated by
Section 2.2 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 is
registered at the close of business on the regular record date for such
interest, as provided in the Board Resolution, supplemental indenture hereto or
Officers’ Certificate establishing the terms of such Series.

If the Company defaults in a payment of interest on
the Securities, it shall pay the defaulted amounts, plus any interest payable
on defaulted amounts pursuant to Section 4.1 hereof, to the Persons who are
Securityholders on a subsequent special record date, which date shall be the
fifteenth day next preceding the date fixed by the Company for the payment of
defaulted interest or the next succeeding Business Day if such date is not a
Business Day. At least 15 days before the special record date, the Company
shall mail or cause to be mailed to each Securityholder, with a copy to the
Trustee, a notice that states the special record date, the payment date, and
the amount of defaulted interest, and interest payable on such defaulted
interest, if any, to be paid.

 14

 

 

Except as otherwise specified as contemplated by
Section 2.2 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.

2.14.                        CUSIP
NUMBER.

The Company in issuing the Securities may use one or
more “CUSIP” numbers, and if so, the Trustee shall use the CUSIP number(s) in
notices of redemption or exchange as a convenience to Holders, PROVIDED that
any such notice may state that no representation is made as to the correctness
or accuracy of the CUSIP number(s) printed in the notice or on the Securities,
and that reliance may be placed only on the other identification numbers
printed on the Securities and any such redemption shall not be affected by any
defect in or omission of any such numbers.

2.15.                        PROVISIONS
FOR GLOBAL SECURITIES.

(a)           A Board Resolution,
a supplemental indenture hereto or an Officers’ Certificate shall establish
whether the Securities of a Series shall be issued in whole or in part in the
form of one or more Global Securities and the Depository for such Global
Securities or Securities.

(b)           Notwithstanding any
provisions to the contrary contained in Section 2.7 of the Indenture and in
addition thereto, if, and only if the Depository (i) at any time is unwilling
or unable to continue as Depository for such Global Security or ceases to be a
clearing agency registered under the Exchange Act and (ii) a successor
Depository is not appointed by the Company within 90 days after the date the
Company is so informed in writing or becomes aware of the same, the Company
promptly will execute and deliver to the Trustee definitive Securities, and the
Trustee, upon receipt of a Company Request for the authentication and delivery
of such definitive Securities (which the Company will promptly execute and
deliver to the Trustee) and an Officers’ Certificate to the effect that such
Global Security shall be so exchangeable, will authenticate and deliver
definitive Securities, without charge, registered in such names and in such authorized
denominations as the Depository shall direct in writing (pursuant to
instructions from its direct and indirect participants or otherwise) in an
aggregate principal amount equal to the principal amount of the Global Security
with like tenor and terms.  Upon the
exchange of a Global Security for definitive Securities, such Global Security
shall be canceled by the Trustee.  Unless
and until it is exchanged in whole or in part for definitive Securities, as
provided in this Section 2.15(b), a Global Security may not be transferred
except as a whole by the Depository with respect to such Global Security to a
nominee of such Depository, by a nominee of such Depository to such Depository
or another nominee of such Depository or by the Depository or any such nominee
to a successor Depository or a nominee of such a successor Depository.

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

“This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of the Depository or a
nominee of the Depository. This Security is exchangeable for Securities
registered in the name of a Person 

 15
 

 

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, by a nominee of the
Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such a
successor Depository.”

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

(e)           Notwithstanding the
other provisions of this Indenture, unless otherwise specified as contemplated
by Section 2.2, payment of the principal of and interest and premium, if any,
on any Global Security shall be made to the Depository or its nominee in its
capacity as the Holder thereof.

(f)            Except as provided
in Section 2.15(e), the Company, the Trustee and any Agent shall treat a Person
as the Holder of such principal amount of outstanding Securities of any Series
represented by a Global Security as shall be specified in a written statement
of the Depository (which may be in the form of a participants’ list for such
Series) with respect to such Global Security, for purposes of obtaining any consents,
declarations, waivers or directions required to be given by the Holders
pursuant to this Indenture, PROVIDED that until the Trustee is so provided with
a written statement, it may treat the Depository or any other Person in whose
name a Global Security is registered as the owner of such Global Security for
the purpose of receiving payment of principal of and any premium and (subject
to Section 2.13) any interest on such Global Security and for all other
purposes whatsoever, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.

2.16.                        PERSONS
DEEMED OWNERS.

Prior to due presentment of a Security for
registration of transfer, the Company, the Trustee, the Registrar and any agent
of the Company, the Registrar 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 2.13)
any interest on such Security and for all other purposes whatsoever, and
neither the Company, the Trustee, the Registrar nor any agent of the Company,
the Registrar or the Trustee shall be affected by notice to the contrary.

ARTICLE 3

REDEMPTION

3.1.                              NOTICES
TO TRUSTEE.

The Company may, with respect to any Series of
Securities, reserve the right to redeem and pay the Series of Securities or may
covenant to redeem and pay the Series of Securities or any part thereof prior
to the Stated Maturity thereof at such time and on such terms as provided 

 16
 

 

for in such Securities or the related Board
Resolution, supplemental indenture or Officers’ Certificate.  If a Series of Securities is redeemable and
the Company elects to redeem such Securities of a Series, it shall notify the
Trustee of the Redemption Date and the principal amount of Securities to be
redeemed at least 45 days (unless a shorter notice shall be satisfactory to the
Trustee) before the Redemption Date.  Any
such notice may be canceled at any time prior to notice of such redemption
being mailed to any Holder and shall thereby be void and of no effect.

3.2.                              SELECTION
BY TRUSTEE OF SECURITIES TO BE REDEEMED.

Unless otherwise indicated for a particular Series of
Securities by a Board Resolution, a supplemental indenture or an Officers’
Certificate, if fewer than all of the Securities of a Series are to be
redeemed, the Trustee shall select the Securities of a Series to be redeemed
pro rata, by lot or by any other method that the Trustee considers fair and
appropriate (unless the Company specifically directs the Trustee otherwise)
and, if such Securities are listed on any securities exchange, by a method that
complies with the requirements of such exchange.

The Trustee shall make the selection from Securities
of a Series outstanding and not previously called for redemption and shall
promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Security selected for partial redemption,
the principal amount thereof to be redeemed at least 35 but not more than 60
days before the Redemption Date. Securities of a Series in denominations of
$1,000 may be redeemed only in whole. 
The Trustee may select for redemption portions of the principal of
Securities of a Series that have denominations larger than $1,000. Securities
of a Series and portions of them it selects shall be in amounts of $1,000 or,
with respect to Securities of any Series issuable in other denominations
pursuant to Section 2.2(10), the minimum principal denomination for each Series
and integral multiples thereof. Provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called
for redemption.

3.3.                              NOTICE
OF REDEMPTION.

Unless otherwise indicated for a particular Series by
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate,
at least 30 days, and no more than 60 days, before a Redemption Date, the
Company shall mail, or cause to be mailed, a notice of redemption by
first-class mail to each Holder of Securities to be redeemed at his or her last
address as the same appears on the registry books maintained by the
Registrar.  The notice shall identify the
Securities to be redeemed (including the CUSIP number(s) thereof, if any) and
shall state:

(1)           the Redemption Date;

(2)           the redemption price, and that such
redemption price shall become due and payable on the Redemption Date;

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

 17
 

 

 

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

(5)           that Securities of a Series called
for redemption must be surrendered to the Paying Agent to collect the
redemption price, and the place or places where each such Security is to be
surrendered for such payment;

(6)           that, unless the Company defaults in
making the redemption payment, interest on the Securities of a Series called
for redemption ceases to accrue on the Redemption Date, and the only remaining
right of the Holders of such Securities is to receive payment of the redemption
price upon surrender to the Paying Agent of the Securities redeemed;

(7)           if fewer than all the Securities of a
Series are to be redeemed, the identification of the particular Securities of a
Series (or portion thereof) to be redeemed, as well as the aggregate principal
amount of Securities of a Series to be redeemed and the aggregate principal
amount of Securities of a Series to be outstanding after such partial
redemption.

(8)           the CUSIP number, if any, printed on
the Securities being redeemed; and

(9)           that no representation is made as to
the correctness or accuracy of the CUSIP number, if any, listed in such notice
or printed on the Securities.

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

3.4.                              EFFECT
OF NOTICE OF REDEMPTION.

Once the notice of redemption described in Section 3.3
is mailed, Securities of a Series called for redemption become due and payable
on the Redemption Date and at the redemption price, plus interest, if any,
accrued to the Redemption Date.  Upon
surrender to the Trustee or Paying Agent, such Securities of a Series shall be
paid at the redemption price, plus accrued interest, if any, to the Redemption
Date, PROVIDED that if the Redemption Date is after a regular interest payment
record date and on or prior to the next Interest Payment Date, the accrued
interest shall be payable to the Holder of the redeemed Securities registered
on the relevant record date, as specified by the Company in the notice to the
Trustee pursuant to Section 3.1 hereof.

3.5.                              DEPOSIT
OF REDEMPTION PRICE.

On or prior to the Redemption Date (but no later than
11:00 A.M. Eastern Time on such date), the Company shall deposit with the
Paying Agent money sufficient to pay the redemption price of and accrued
interest, if any, on all Securities to be redeemed on that date other than
Securities or portions thereof called for redemption on that date which have
been delivered by the Company to the Trustee for cancellation.

On and after any Redemption Date, if money sufficient
to pay the redemption price of and accrued interest on Securities called for
redemption shall have been made available in accordance with the preceding
paragraph and the Company and the Paying Agent are not prohibited from paying
such moneys to Holders, the Securities called for redemption will cease 

 18
 

 

to accrue interest and the only right of the Holders
of such Securities will be to receive payment of the redemption price of and,
subject to the proviso in Section 3.4, accrued and unpaid interest on such
Securities to the Redemption Date.  If
any Security called for redemption shall not be so paid, interest will be paid,
from the Redemption Date until such redemption payment is made, on the unpaid
principal of the Security and any interest or premium (if any) not paid on such
unpaid principal, in each case, at the rate and in the manner provided in the
Securities.

3.6.                              SECURITIES
REDEEMED IN PART.

Upon surrender of a Security of a Series that is
redeemed in part, the Company shall execute and the Trustee shall authenticate
for a Holder a new Security of the same Series equal in principal amount to the
unredeemed portion of the Security surrendered.

ARTICLE 4

COVENANTS

4.1.                              PAYMENT
OF SECURITIES.

The Company shall pay the principal of and interest
and premium, if any, on each Series of Securities on the dates and in the
manner provided in such Securities and this Indenture.

An installment of principal or interest shall be
considered paid on the date it is due if the Trustee or Paying Agent holds on
that date money designated for and sufficient to pay such installment and is
not prohibited from paying such money to the Holders pursuant to the terms of
this Indenture or otherwise.

The Company shall pay interest on overdue principal,
and overdue interest, to the extent lawful, at the rate specified in the Series
of Securities.

4.2.                              SEC
REPORTS.

The Company will deliver to the Trustee within 15 days
after the filing of the same with the SEC, copies of the quarterly and annual
report and of the information documents and other reports, if any, which the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act.  Notwithstanding that the
Company may not be subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act, the Company will file with the SEC, to the extent
permitted, and provide the Trustee, with such quarterly and annual reports and
such information, documents and other reports specified in Section 13 and 15(d)
of the Exchange Act.  The Company will
also comply with the other provisions of TIA Section 314(a).

4.3.                              WAIVER
OF STAY, EXTENSION OR USURY LAWS.

The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead (as a
defense or otherwise) or in any manner whatsoever claim or take the benefit or
advantage of, any stay, extension, usury or other law which would prohibit or
forgive the Company from paying all or any portion of the principal of,
premium, if any, and/or interest on the Securities as contemplated herein,
wherever enacted, now or at any time hereafter 

 19
 

 

in force, or which may affect the covenants or the
performance of this Indenture; and (to the extent that they may lawfully do so)
the Company 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.

4.4.                              COMPLIANCE
CERTIFICATE.

(a)           The Company shall
deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company, an Officers’ Certificate which complies with TIA Section 314(a)(4)
stating that a review of the activities of the Company and its Subsidiaries
during such fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his or her knowledge the Company has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and that there is no
default in the performance or observance of any of the terms, provisions and
conditions hereof (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which he or she may have
knowledge and what action the Company is taking or proposes to take with
respect thereto) and that to the best of his or her knowledge no event has
occurred and remains in existence by reason of which payments on account of the
principal of or interest or premium, if any, on the Securities is prohibited or
if such event has occurred, a description of the event and what action the
Company is taking or proposes to take with respect thereto.

(b)           (i) If any Default
or Event of Default has occurred and is continuing or (ii) if any Holder seeks
to exercise any remedy hereunder with respect to a claimed Default under this
Indenture or the Securities, within five Business Days after its becoming aware
of such occurrence the Company shall deliver to the Trustee an Officers’
Certificate specifying such event, notice or other action and what action the
Company is taking or proposes to take with respect thereto.

4.5.                              CORPORATE
EXISTENCE.

Subject to Article 5 hereof, the Company shall do or
cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence, in accordance with the organizational documents
(as the same may be amended from time to time) of the Company and the rights
(charter and statutory), licenses and franchises of the Company; PROVIDED,
HOWEVER, that the Company shall not be required to preserve any such right,
license or franchise, or its corporate existence, 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 adverse
in any material respect to the Holders.

 20
 

 

 

ARTICLE 5

SUCCESSOR
CORPORATION

5.1.                              LIMITATION
ON CONSOLIDATION, MERGER AND SALE OF ASSETS.

(a)           The Company will
not, in any transaction or series of transactions, merge or consolidate with or
into, or sell, assign, convey, transfer, lease or otherwise dispose of all or
substantially all of its properties and assets (as an entirety or substantially
as an entirety in one transaction or a series of related transactions), to any
Person or Persons, unless at the time of and after giving effect thereto (i)
either (A) if the transaction or series of transactions is a merger or
consolidation, the Company shall be the surviving Person of such merger or
consolidation, or (B) the Person formed by such consolidation or into which the
Company is merged or to which the properties and assets of the Company are
transferred (any such surviving Person or transferee Person being the “Surviving
Entity”) shall be a corporation organized and existing under the laws of the
United States of America, any state thereof or the District of Columbia or a
corporation or comparable legal entity organized under the laws of a foreign
jurisdiction and shall expressly assume by a supplemental indenture executed
and delivered to the Trustee, in form reasonably satisfactory to the Trustee,
all of the obligations of the Company (including, without limitation, the
obligation to pay the principal of, and premium and interest, if any, on the
Securities and the performance of the other covenants) under the Securities of
each Series and this Indenture, and in each case, this Indenture shall remain
in full force and effect; and (ii) immediately before and immediately after
giving effect to such transaction or series of transactions on a pro forma
basis (including, without limitation, any Indebtedness incurred or anticipated
to be incurred in connection with or in respect of such transaction or series
of transactions), no Default or Event of Default shall have occurred and be
continuing.

(b)           In connection with
any consolidation, merger or transfer of assets contemplated by this Section
5.1, the Company shall deliver, or cause to be delivered, to the Trustee, in
form and substance reasonably satisfactory to the Trustee, an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger or transfer and the supplemental indenture in respect thereto comply
with this Section 5.1 and that all conditions precedent herein provided for
relating to such transaction or transactions have been complied with.

5.2.                              SUCCESSOR
PERSON SUBSTITUTED.

Upon any consolidation or merger, or any transfer of
all or substantially all of the assets of the Company in accordance with
Section 5.1 above, the successor corporation formed by such consolidation or
into which the Company is merged or to which such transfer is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
corporation had been named as the Company herein, and thereafter (except with
respect to any such transfer which is a lease) the predecessor corporation
shall be relieved of all obligations and covenants under this Indenture and the
Securities.

ARTICLE 6

DEFAULTS AND
REMEDIES

6.1.                              EVENTS
OF DEFAULT.

“Events of Default,” wherever used herein with respect
to Securities of any Series, means any one of the following events, unless in
the establishing Board Resolution, supplemental 

 21
 

 

indenture or Officers’ Certificate, it is provided
that such Series shall not have the benefit of said Event of Default:

(1)           there is a default in the payment of
any principal of, or premium, if any, on the Securities when the same becomes
due and payable at Maturity, upon acceleration, redemption or otherwise;

(2)           there is a default in the payment of
any interest on any Security of a Series when the same becomes due and payable
and the Default continues for a period of 30 days;

(3)           the Company defaults in the
observance or performance of any other covenant in the Securities of a Series or
this Indenture for 60 days after written notice from the Trustee or the Holders
of not less than 25% in the aggregate principal amount of the Securities of
such Series then outstanding which notice must specify the Default, demand that
it be remedied and state the notice is a “Notice of Default”;

(4)           the Company or any Significant
Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

(A)          commences a voluntary case,

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

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

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

(E)           generally is not paying its debts as
they become due;

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

(A)          is for relief against the Company or
any Significant Subsidiary in an involuntary case;

(B)           appoints a Custodian of the Company
or any Significant Subsidiary or for all or substantially all of the property
of the Company or any Significant Subsidiary; or

(C)           orders the liquidation of the Company
or any Significant Subsidiary, and the order or decree remains unstayed and in
effect for 90 consecutive days; or

(6)           any other Event of Default provided
with respect to Securities of that Series, which is specified in a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate, in
accordance with Section 2.2(19).

 22
 

 

 

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

The Trustee may withhold notice of any Default (except
in payment of principal or premium, if any, or interest on the Securities) to
the Holders of the Securities of any Series in accordance with Section 7.5.
When a Default is cured, it ceases to exist.

6.2.                              ACCELERATION.

If an Event of Default with respect to Securities of
any Series at the time outstanding (other than an Event of Default arising
under Section 6.1(4) or (5)) occurs and is continuing, the Trustee by written
notice to the Company, or the Holders of not less than 25% in aggregate
principal amount of the Securities of that Series then outstanding may by
written notice to the Company and the Trustee declare that the entire principal
amount of all the Securities of that Series then outstanding plus accrued and
unpaid interest to the date of acceleration are immediately due and payable, in
which case such amounts shall become immediately due and payable; PROVIDED,
HOWEVER, that after such acceleration but before a judgment or decree based on
such acceleration is obtained by the Trustee, the Holders of a majority in
aggregate principal amount of the outstanding Securities of that Series may
rescind and annul such acceleration and its consequences if (i) all existing
Events of Default, other than the nonpayment of accelerated principal, premium,
if any, or interest that has become due solely because of the acceleration,
have been cured or waived, (ii) to the extent the payment of such interest is
lawful, interest on overdue installments of interest and overdue principal,
which has become due otherwise than by such declaration of acceleration, has
been paid and (iii) the rescission would not conflict with any judgment or
decree.  No such rescission shall affect
any subsequent Default or impair any right consequent thereto.  In case an Event of Default specified in
Section 6.1(4) or (5) with respect to the Company occurs, such principal,
premium, if any, and interest amount with respect to all of the Securities of
that Series shall be due and payable immediately without any declaration or
other act on the part of the Trustee or the Holders of the Securities of that
Series.

6.3.                              REMEDIES.

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

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

 23
 

 

 

6.4.                              WAIVER
OF PAST DEFAULTS AND EVENTS OF DEFAULT.

Subject to Sections 6.2, 6.7 and 8.2 hereof, the
Holders of a majority in principal amount of the Securities of any Series then
outstanding have the right to waive any existing Default or Event of Default
with respect to such Series or compliance with any provision of this Indenture
(with respect to such Series) or the Securities of such Series.  Upon any such waiver, such Default with
respect to such Series shall cease to exist, and any Event of Default with
respect to such Series arising therefrom shall be deemed to have been cured for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereto.  This Section 6.4 shall be in
lieu of TIA Section 316(a)(1)(B), and TIA Section 316(a)(1)(B) is hereby
expressly excluded from this Indenture and Section as permitted by the TIA.

6.5.                              CONTROL
BY MAJORITY.

Subject to Sections 6.2, 6.7 and 8.2 hereof, the
Holders of a majority in principal amount of the Securities of any Series then
outstanding may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power
conferred on the Trustee by this Indenture with respect to such Series.  The Trustee, however, may refuse to follow
any direction that conflicts with law or this Indenture or that the Trustee
determines may be unduly prejudicial to the rights of another Securityholder or
that may involve the Trustee in personal liability; PROVIDED that the Trustee
may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.  This
Section 6.5 shall be in lieu of TIA Section 316(a)(1)(A), and TIA Section
316(a)(1)(A) is hereby expressly excluded from this Indenture and Section as
permitted by the TIA.

6.6.                              LIMITATION
ON SUITS.

Subject to Section 6.7 below, a Securityholder may not
institute any proceeding or pursue any remedy with respect to this Indenture or
the Securities of a Series unless:

(1)           the Holder gives to the Trustee
written notice of a continuing Event of Default with respect to the Securities
of that Series;

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

(3)           such Holder or Holders offer to the
Trustee indemnity reasonably satisfactory to the Trustee against any loss,
liability or expense to be incurred in compliance with such request;

(4)           the Trustee does not comply with the
request within 60 days after receipt of the request and the offer of indemnity;
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 aggregate principal amount of the Securities of such
Series then outstanding.

 24
 

 

 

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

6.7.                              RIGHTS
OF HOLDERS TO RECEIVE PAYMENT.

Notwithstanding any other provision of this Indenture,
the right of any Holder of a Security of a Series to receive payment of
principal of, and premium, if any, and interest of the Security of such Series
on or after the respective due dates expressed in the Security of such Series,
or to bring suit for the enforcement of any such payment on or after such
respective dates, is absolute and unconditional and shall not be impaired or
affected without the consent of the Holder.

6.8.                              COLLECTION
SUIT BY TRUSTEE.

If an Event of Default in payment of principal,
premium or interest specified in Section 6.1(1) or (2) hereof with respect to
Securities of any Series at the time outstanding occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Company (or any other obligor on the Securities of that Series) for
the whole amount of unpaid principal and premium, if any, and accrued interest
remaining unpaid, together with interest on overdue principal and premium, if
any, and, to the extent that payment of such interest is lawful, interest on
overdue installments of interest, in each case at the rate then borne by the
Securities of that Series, and such further amounts 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, as set forth in Section 7.7.

6.9.                              TRUSTEE
MAY FILE PROOFS OF CLAIM.

The Trustee may file such proofs of claim and other
papers or documents, and take other actions (including sitting on a committee
of creditors) as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Securityholders allowed in any judicial proceedings relative to the Company (or
any other obligor upon the Securities), any of their respective creditors or
any of their respective property and shall be entitled and empowered to collect
and receive any monies or other property payable or deliverable on any such
claims and to distribute the same after deduction of its charges and expenses
to the extent that any such charges and expenses are not paid out of the estate
in any such proceedings and any custodian in any such judicial proceeding is
hereby authorized by each Securityholder 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 Securityholders, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.7 hereof.

Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities of a Series or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Securityholder in any such proceedings.

 25
 

 

 

6.10.                        PRIORITIES.

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

FIRST:  to the Trustee for amounts due under Section
7.7 hereof;

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

THIRD:  to the Company.

The Trustee may
fix a record date and payment date for any payment to Securityholders pursuant
to this Section 6.10. At least 15 days before such record date, the Trustee
shall mail to each Securityholder a notice that states the record date, the
payment date and amount to be paid.

6.11.                        UNDERTAKING FOR COSTS.

In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or
omitted by it as Trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by
a Holder pursuant to Section 6.7 hereof or a suit by Holders of more than 10%
in principal amount of the Securities of a Series then outstanding.

ARTICLE 7

TRUSTEE

7.1.                              DUTIES
OF TRUSTEE.

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

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

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

 26
 

 

 

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

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

(1)           This paragraph does not limit the
effect of paragraph (b) of this Section 7.1.

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

(3)           The Trustee shall not be liable with
respect to any action it takes or omits to take in good faith in `accordance
with a direction received by it pursuant to Sections 6.2 and 6.5 hereof.

(d)           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 rights
or powers if it shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity satisfactory to it against such risk or
liability is not reasonably assured to it.

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

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

(g)           The Paying Agent,
the Registrar and any authenticating agent shall be entitled to the
protections, immunities and standard of care set forth in paragraphs (a), (b),
(c), (d) and (f) of this Section 7.1 and in Section 7.2 with respect to the
Trustee.

7.2.                              RIGHTS
OF TRUSTEE.

(a)           Subject to Section
7.1 hereof:

(1)           The Trustee may rely on and shall be
protected in acting or refraining from acting upon any document reasonably
believed by it to be genuine and to have been signed or presented by the proper
Person.  The Trustee need not investigate
any fact or matter stated in the document.

 27
 

 

 

(2)           Before the Trustee acts or refrains
from acting, it may require an Officers’ Certificate or an Opinion of Counsel,
or both, which shall conform to the provisions of Section 10.5 hereof.  The Trustee shall be protected and shall not
be liable for any action it takes or omits to take in good faith in reliance on
such certificate or opinion.

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

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

(5)           The Trustee may consult with counsel
reasonably acceptable to the Trustee, which may be counsel to the Company, and
the advice or opinion of such counsel as to matters of law shall be full and
complete authorization and protection from liability in respect of any action
taken, omitted or suffered by it hereunder in good faith and in accordance with
the advice or opinion of such counsel.

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

(7)           The Trustee shall not be deemed to
have knowledge of any fact or matter (including, without limitation, a Default
or Event of Default) unless such fact or matter is known to a Responsible
Officer of the Trustee.

(8)           Unless otherwise expressly provided
herein or in the Securities of a Series or the related Board Resolution,
supplemental indenture or Officers’ Certificate, the Trustee shall not have any
responsibility with respect to reports, notices, certificates or other
documents filed with it hereunder, except to make them available for
inspection, at reasonable times, by Securityholders, it being understood that
delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (except as set forth in Section
4.4).

7.3.                              INDIVIDUAL
RIGHTS OF TRUSTEE.

The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may make loans to, accept
deposits from, perform services for or otherwise deal with the Company, or any
Affiliate thereof, with the same rights it would have if it were not
Trustee.  Any Agent may do the same with
like rights.  The Trustee, however, shall
be subject to Sections 7.10 and 7.11 hereof.

7.4.                              TRUSTEE’S
DISCLAIMER.

The Trustee makes no representation as to the validity
or adequacy of this Indenture or 

 28
 

 

the Securities (except that the Trustee represents
that it is duly authorized to execute and deliver this Indenture and
authenticate the Securities and perform its obligations hereunder), it shall
not be accountable for the Company’s use of the proceeds from the sale of
Securities or any money paid to the Company pursuant to the terms of this
Indenture and it shall not be responsible for any statement in the Securities
other than its certificates of authentication.

7.5.                              NOTICE
OF DEFAULT.

If a Default or an Event of Default occurs and is
continuing with respect to the Securities of any Series and if it is known to
the Trustee, the Trustee shall mail to each Securityholder of the Securities of
that Series notice of the Default or the Event of Default, as the case may be,
within 90 days after it occurs or, if later, after a Responsible Officer of the
Trustee has knowledge of such Default or Event of Default (except if such
Default or Event of Default has been validly cured or waived before the giving
of such notice).  Except in the case of a
Default or an Event of Default in payment of the principal of, or premium, if
any, or interest on any Security of any Series, the Trustee may withhold the
notice if and so long as the Board of Directors of the Trustee, the executive
committee or any trust committee of such board and/or its Responsible Officers
in good faith determine(s) that withholding the notice is in the interests of
the Securityholders of that Series.

7.6.                              REPORTS
BY TRUSTEE TO HOLDERS.

If and to the extent required by the TIA, within 60
days after April 1 of each year, commencing the April 1 following the date of
this Indenture, the Trustee shall mail to each Securityholder a brief report
dated as of such April 1 that complies with TIA Section 313(a).  The Trustee also shall comply with TIA
Sections 313(b) and 313(c).

A copy of each report at the time of its mailing to
Securityholders shall be filed with the SEC and any stock exchange on which the
Securities of that Series are listed. 
The Company shall promptly notify the Trustee when the Securities of any
Series are listed on any stock exchange or any delisting thereof, and the
Trustee shall comply with TIA Section 313(d).

7.7.                              COMPENSATION
AND INDEMNITY.

The Company shall pay to the Trustee from time to time
reasonable compensation for its services. 
The Trustee’s compensation shall not be limited by any provision of law
on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee
within 45 days after receipt of request for all reasonable out-of-pocket
disbursements and expenses incurred or made by it in connection with its duties
under this Indenture, including the reasonable compensation, disbursements and
expenses of the Trustee’s agents and counsel.

The Company shall indemnify the Trustee for, and hold
it harmless against, any and all loss or liability incurred by it in connection
with the acceptance or performance of its duties under this Indenture including
the reasonable costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of any of its powers
or duties hereunder.  The Trustee shall
notify the Company promptly of any claim asserted against the Trustee for which
it may seek indemnity.

 29
 

 

 

The failure by the Trustee to so notify the Company
shall not however relieve the Company of its obligations.  Notwithstanding the foregoing, the Company
need not reimburse the Trustee for any expense or indemnify it against any loss
or liability incurred by the Trustee through its negligence or bad faith.  To secure the payment obligations of the
Company in this Section 7.7, the Trustee shall have a lien prior to the
Securities of any Series on all money or property held or collected by the
Trustee except such money or property held in trust to pay principal of and
interest and premium (if any) on particular Securities of that Series.

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

For purposes of this Section 7.7, the term “Trustee”
shall include any trustee appointed pursuant to Article 9.

7.8.                              REPLACEMENT
OF TRUSTEE.

The Trustee may resign with respect to the Securities
of one or more Series by so notifying the Company in writing at least 90 days
in advance of such resignation.

The Holders of a majority in principal amount of the
outstanding Securities of any Series may remove the Trustee with respect to
that Series by notifying the removed Trustee in writing and may appoint a
successor Trustee with respect to that Series with the consent of the Company,
which consent shall not be unreasonably withheld.  The Company may remove the Trustee with
respect to that Series at its election if:

(1)           the Trustee fails to comply with, or
ceases to be eligible under, Section 7.10 hereof;

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

(3)           a Custodian or other public officer
takes charge of the Trustee or its property; or

(4)           the Trustee otherwise becomes
incapable of acting.

(5)           If the Trustee resigns or is removed
or if a vacancy exists in the office of Trustee with respect to any Series of
Securities for any reason, the Company shall promptly appoint, by Board
Resolution, a successor Trustee.

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

If the Trustee with respect to the Securities of one
or more Series fails to comply with 

 30
 

 

Section 7.10 hereof, any Securityholder of the
applicable Series may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company.  Immediately following such delivery, (i) the
retiring Trustee with respect to one or more Series shall, subject to its
rights under Section 7.7 hereof, transfer all property held by it as Trustee
with respect to such Series to the successor Trustee, (ii) the resignation or
removal of the retiring Trustee shall become effective, and (iii) the successor
Trustee with respect to such Series shall have all the rights, powers and
duties of the Trustee under this Indenture. 
A successor Trustee with respect to the Securities of one or more Series
shall mail notice of its succession to each Securityholder of such Series.

7.9.                              SUCCESSOR
TRUSTEE BY CONSOLIDATION, MERGER OR CONVERSION.

If the Trustee, or
any Agent, consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust assets to, another corporation, subject to Section
7.10 hereof, the successor corporation without any further act shall be the
successor Trustee or Agent, as the case may be.

7.10.                        ELIGIBILITY;
DISQUALIFICATION.

This Indenture shall always have a Trustee who
satisfies the requirements of TIA Sections 310(a)(1), (2) and (5) in every
respect.  The Trustee (or in the case of
a Trustee that is a Person included in a bank holding company system, the
related bank holding company) shall have a combined capital and surplus of at
least $100,000,000 as set forth in its most recent published annual report of
condition.  The Trustee shall comply with
TIA Section 310(b), including the provision in Section 310(b)(1). In addition,
if the Trustee is a Person included in a bank holding company system, the
Trustee, independently of such bank holding company, shall meet the capital
requirements of TIA Section 310(a)(2). 
If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section 7.10, it shall resign immediately in the manner
and with the effect specified in this Article 7.

7.11.                        PREFERENTIAL
COLLECTION OF CLAIMS AGAINST COMPANY.

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

7.12.                        PAYING
AGENTS.

The Company shall cause each Paying Agent other than
the Trustee to execute and deliver to it and the Trustee an instrument in which
such agent shall agree with the Trustee, subject to the provisions of this
Section 7.12:

(1)           that it will hold all sums held by it
as agent for the payment of principal of, or premium, if any, or interest on,
the Securities (whether such sums have been paid to it by the Company or by any
obligor on the Securities) in trust for the benefit of Holders of the
Securities or the Trustee;

 

 31

 

 

(2)           that it will at any time during the
continuance of any Event of Default, upon written request from the Trustee,
deliver to the Trustee all sums so held in trust by it together with a full
accounting thereof; and

(3)           that it will give the Trustee written
notice within three (3) Business Days after any failure of the Company (or by
any obligor on the Securities) in the payment of any installment of the
principal of, premium, if any, or interest on, the Securities when the same
shall be due and payable.

ARTICLE 8

AMENDMENTS,
SUPPLEMENTS AND WAIVERS

8.1.                              WITHOUT
CONSENT OF HOLDERS.

The Company, when authorized by a Board Resolution,
and the Trustee may amend or supplement this Indenture or the Securities of one
or more Series without notice to or consent of any Securityholder:

(1)           to comply with Section 5.1 hereof;

(2)           to provide for certificated
Securities in addition to uncertificated Securities;

(3)           to comply with any requirements of
the SEC under the TIA;

(4)           to cure any ambiguity, defect or
inconsistency, or to make any other change herein or in the Securities that
does not materially and adversely affect the rights of any Securityholder;

(5)           to provide for the issuance of and
establish the form and terms and conditions of Securities of any Series as permitted
by this Indenture; or

(6)           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.

The Trustee is hereby authorized to join with the
Company in the execution of any supplemental indenture authorized or permitted
by the terms of this Indenture and to make any further appropriate agreements
and stipulations which may be therein contained, but the Trustee shall not be
obligated to enter into any such supplemental indenture which adversely affects
its own rights, duties or immunities under this Indenture.

8.2.                              WITH
CONSENT OF HOLDERS.

(a)           The
Company, when authorized by a Board Resolution, and the Trustee may amend or
supplement this Indenture or the Securities of one or more Series with the
written 

 32
 

 

consent of the Holders of not less than a majority in
aggregate principal amount of the outstanding Securities of such Series
affected by such amendment or supplement without notice to any
Securityholder.  The Holders of not less
than a majority in aggregate principal amount of the outstanding Securities of
each such Series affected by such amendment or supplement may waive compliance
in a particular instance by the Company with any provision of this Indenture or
the Securities of such Series without notice to any Securityholder. Subject to
Section 8.4, without the consent of each Securityholder affected, however, an
amendment, supplement or waiver may not:

(1)           reduce the amount of Securities whose
Holders must consent to an amendment, supplement or waiver to this Indenture or
the Securities;

(2)           reduce the rate of or change the time
for payment of interest on any Security;

(3)           reduce the principal or change the
Stated Maturity of any Security or reduce the amount of, or postpone the date
fixed for, the payment of any sinking fund or analogous obligation;

(4)           make any Security payable in money
other than that stated in the Security;

(5)           change the amount or time of any
payment required by the Securities or reduce the premium payable upon any
redemption of the Securities, or change the time before which no such
redemption may be made;

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

(7)           waive a redemption payment with
respect to any Security or change any of the provisions with respect to the
redemption of any Securities;

(8)           make any changes in Section 6.6
hereof or this Section 8.2; except to increase any percentage of Securities the
Holders of which must consent to any matter; or

(9)           take any other action otherwise
prohibited by this Indenture to be taken without the consent of each Holder
affected thereby.

(b)           Upon the request of
the Company, accompanied by a Board Resolution authorizing the execution of any
such supplemental indenture, and upon the receipt by the Trustee of evidence reasonably
satisfactory to the Trustee of the consent of the Securityholders as aforesaid
and upon receipt by the Trustee of the documents described in Section 8.6
hereof, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties or immunities under this Indenture, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into such
supplemental indenture.

 33
 

 

 

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

After an amendment or
supplement under this Section becomes effective, the Company shall mail to
Securityholders a notice briefly describing the amendment or supplement.  Any failure of the Company to mail any such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any supplemental indenture.

8.3.                              COMPLIANCE
WITH TRUST INDENTURE ACT.

Every amendment to or supplement of this Indenture or
the Securities shall comply with the TIA as then in effect.

8.4.                              REVOCATION
AND EFFECT OF CONSENTS.

Until an amendment, supplement, waiver or other action
becomes effective, a consent to it by a Holder of a Security is a continuing
consent conclusive and binding upon such Holder and every subsequent Holder of
the same Security or portion thereof, and of any Security issued upon the
transfer thereof or in exchange therefor or in place thereof, even if notation
of the consent is not made on any such Security.  Any such Holder or subsequent Holder,
however, may revoke the consent as to his Security or portion of a Security, if
the Trustee receives the notice of revocation before the date the amendment,
supplement, waiver or other action becomes effective.

The Company may, but shall not be obligated to, fix a
record date for the purpose of determining the Holders entitled to consent to
any amendment, supplement, or waiver which record date shall be at least 30
days prior to the first solicitation of such consent.  If a record date is fixed, then,
notwithstanding the preceding paragraph, those Persons who were Holders at such
record date (or their duly designated proxies), and only such Persons, shall be
entitled to consent to such amendment, supplement, or waiver or to revoke any
consent previously given, whether or not such Persons continue to be Holders
after such record date.

After an amendment, supplement, waiver or other action
becomes effective, it shall bind every Securityholder, unless it makes a change
described in any of clauses (1) through (9) of Section 8.2 hereof. In that case
the amendment, supplement, waiver or other action shall bind each Holder of a
Security who has consented to it and every subsequent Holder of a Security or
portion of a Security that evidences the same debt as the consenting Holder’s
Security; PROVIDED that any such waiver shall not impair or affect the right of
any Holder to receive payment of principal of and interest and premium (if any)
on a Security, on or after the respective due dates expressed in such Security,
or to bring suit for the enforcement of any such payment on or after such respective
dates without the consent of such Holder.

8.5.                              NOTATION
ON OR EXCHANGE OF SECURITIES.

If an amendment, supplement, or waiver changes the
terms of a Security of any Series, the Trustee may request the Holder of such
Security to deliver it to the Trustee. 
In such case, the Trustee shall place an appropriate notation on such
Security about the changed terms and return it to the Holder.  Alternatively, the Company in exchange for
such Security may issue and the 

 34
 

 

Trustee shall authenticate a new security that
reflects the changed terms.  Failure to
make the appropriate notation or issue a new Security shall not affect the
validity and effect of such amendment, supplement or waiver.

8.6.                              TRUSTEE
TO SIGN AMENDMENTS, ETC.

The Trustee shall sign any amendment, supplement or
waiver authorized pursuant to this Article 8 if the amendment, supplement or
waiver does not adversely affect the rights, duties, liabilities or immunities
of the Trustee.  If it does, the Trustee
may, but need not, sign it. In signing or refusing to sign such amendment,
supplement or waiver the Trustee shall be entitled to receive and, subject to
Section 7.1 hereof, shall be fully protected in relying upon an Officers’
Certificate and an Opinion of Counsel stating that such amendment, supplement
or waiver is authorized or permitted by this Indenture.  The Company may not sign an amendment or
supplement until the Board of Directors of the Company approves it.

ARTICLE 9

DISCHARGE OF
INDENTURE; DEFEASANCE

9.1.                              DISCHARGE
OF INDENTURE.

The Company may terminate its obligations under the
Securities of any Series and this Indenture with respect to such Series, except
the obligations referred to in the last paragraph of this Section 9.1, if there
shall have been canceled by the Trustee or delivered to the Trustee for
cancellation all Securities of such Series theretofore authenticated and
delivered (other than any Securities of such Series that are asserted to have
been destroyed, lost or stolen and that shall have been replaced as provided in
Section 2.8 hereof) and the Company has paid all sums payable by it hereunder
or deposited all required sums with the Trustee.

After such delivery the Trustee upon request shall
acknowledge in a writing prepared by or on behalf of the Company the discharge
of the Company’s obligations under the Securities of such Series and this
Indenture except for those surviving obligations specified below.

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company in Sections 7.7, 9.5 and 9.6 hereof
shall survive.

9.2.                              LEGAL
DEFEASANCE.

The Company may at its option, by Board Resolution, be
discharged from its obligations with respect to the Securities of any Series on
the date upon which  the conditions set
forth in Section 9.4 below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, such Legal Defeasance means
that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by the 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, subject to Section 9.6 hereof, execute proper instruments acknowledging
the same, as are delivered to it by the Company), except for the following
which shall survive until otherwise terminated or discharged hereunder: (A) the
rights of Holders of outstanding Securities of such Series to receive solely
from the trust funds 

 35
 

 

described in Section 9.4 hereof and as more fully set
forth in such section, payments in respect of the principal of, premium, if
any, and interest on the Securities of such Series when such payments are due,
(B) the Company’s obligations with respect to the Securities of such Series
under Sections 2.4, 2.5, 2.6, 2.7, 2.8 and 2.9 hereof, (C) the rights, powers,
trusts, duties, and immunities of the Trustee hereunder (including claims of,
or payments to, the Trustee under or pursuant to Section 7.7 hereof) and (D)
this Article 9.  Subject to compliance
with this Article 9, the Company may exercise its option under this Section 9.2
with respect to the Securities of any Series notwithstanding the prior exercise
of its option under Section 9.3 below with respect to the Securities of such
Series.

9.3.                              COVENANT
DEFEASANCE.

At the option of the Company, pursuant to a Board
Resolution, the Company shall be released from its obligations with respect to
the outstanding Securities of any Series under Sections 4.2 through 4.5 hereof,
inclusive, and Section 5.1 hereof, with respect to the outstanding Securities
of such Series, on and after the date the conditions set forth in Section 9.4
hereof are satisfied (hereinafter, “Covenant Defeasance”).  For this purpose, such Covenant Defeasance
means that 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 specified
section or portion thereof, whether directly or indirectly by reason of any
reference elsewhere herein to any such specified Section or portion thereof or
by reason of any reference in any such specified section or portion thereof to
any other provision herein or in any other document, but the remainder of this
Indenture and the Securities of any Series shall be unaffected thereby.

9.4.                              CONDITIONS
TO LEGAL DEFEASANCE OR COVENANT DEFEASANCE.

The following shall be the conditions to application
of Section 9.2 or Section 9.3 hereof to the outstanding Securities of a Series:

(1)           the Company shall
irrevocably have deposited or caused to be deposited with the Trustee (or
another trustee satisfying the requirements of Section 7.10 hereof who shall
agree to comply with the provisions of this Article 9 applicable to it) as
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
the Securities, (A) money in an amount, or (B) U.S. Government Obligations or
Foreign Government Obligations which through the scheduled payment of principal
and interest in respect thereof in accordance with their terms will provide,
not later than the due date of any payment, money in an amount, or (C) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by
the Trustee (or other qualifying trustee) to pay and discharge, the principal
of, premium, if any, and accrued interest on the outstanding Securities of such
Series at the Stated Maturity of such principal, premium, if any, or interest,
or on dates for payment and redemption of such principal, premium, if any, and
interest selected in accordance with the terms of this Indenture and of the
Securities of such Series;

(2)           no Event of Default
or Default with respect to the Securities of such Series shall have occurred
and be continuing on the date of such deposit, or shall have occurred and be 

 36
 

 

continuing at any time during the period ending on the
91st day after the date of such deposit or, if longer, ending on the day
following the expiration of the longest preference period under any Bankruptcy
Law applicable to the Company in respect of such deposit as specified in the
Opinion of Counsel identified in paragraph (8) below (it being understood that
this condition shall not be deemed satisfied until the expiration of such
period);

(3)           such Legal Defeasance or Covenant
Defeasance shall not cause the Trustee to have a conflicting interest for
purposes of the TIA with respect to any securities of the Company;

(4)           such Legal Defeasance or Covenant
Defeasance shall not result in a breach or violation of, or constitute default
under any other agreement or instrument to which the Company is a party or by
which it is bound;

(5)           the Company shall have delivered to
the Trustee an Opinion of Counsel stating that, as a result of such Legal
Defeasance or Covenant Defeasance, neither the trust nor the Trustee will be
required to register as an investment company under the Investment Company Act
of 1940, as amended;

(6)           in the case of an election under
Section 9.2 above, the Company shall have delivered to the Trustee an Opinion
of Counsel stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling to the effect that or (ii)
there has been a change in any applicable Federal income tax law with the
effect that, and such opinion shall confirm that, the Holders of the
outstanding Securities of such Series or Persons in their positions will not
recognize income, gain or loss for Federal income tax purposes solely as a
result of such Legal Defeasance and will be subject to Federal income tax on
the same amounts, in the same manner, including as a result of prepayment, and
at the same times as would have been the case if such Legal Defeasance had not
occurred;

(7)           in the case of an election under
Section 9.3 hereof, 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;

(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 in this Article 9 relating to either
the Legal Defeasance under Section 9.2 above or the Covenant Defeasance under
Section 9.3 hereof (as the case may be) have been complied with;

(9)           the Company shall have delivered to
the Trustee an Officers’ Certificate stating that the deposit under clause (1)
was not made by the Company with the intent of defeating, hindering, delaying
or defrauding any creditors of the Company or others; and

(10)         the Company shall have paid or duly
provided for payment under terms mutually satisfactory to the Company and the
Trustee all amounts then due to the Trustee pursuant to Section 7.7 hereof.

 37
 

 

 

9.5.                              DEPOSITED
MONEY AND U.S. AND FOREIGN GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST; OTHER
MISCELLANEOUS PROVISIONS.

All money, U.S. Government Obligations and Foreign
Government Obligations (including the proceeds thereof) deposited with the
Trustee pursuant to Section 9.4 hereof in respect of the outstanding Securities
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 as the Trustee may determine, to the
Holders of such Securities, of all sums due and to become due thereon in
respect of principal, premium, if any, and accrued 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 U.S.
Government Obligations and Foreign Government Obligations deposited pursuant to
Section 9.4 hereof or the principal, premium, if any, and interest received in
respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of the outstanding Securities.

Anything in this Article 9 to the contrary
notwithstanding, but subject to payment of any of its outstanding fees and
expenses, the Trustee shall deliver or pay to the Company from time to time
upon Company Request any money, U.S. Government Obligations or Foreign
Government Obligations held by it as provided in Section 9.4 hereof 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 Legal Defeasance or Covenant Defeasance.

9.6.                              REINSTATEMENT.

If the Trustee or Paying Agent is unable to apply any
money, U.S. Government Obligations or Foreign Government Obligations in
accordance with Section 9.1, 9.2, 9.3 or 9.4 hereof by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and the Securities shall be revived
and reinstated as though no deposit had occurred pursuant to this Article 9
until such time as the Trustee or Paying Agent is permitted to apply all such
money, U.S. Government Obligations or Foreign Government Obligations, as the
case may be, in accordance with Section 9.1, 9.2, 9.3 or 9.4 hereof; PROVIDED,
HOWEVER, that if the Company has made any payment of principal of, premium, if
any, or accrued interest on any Securities because of the reinstatement of
their obligations, the Company shall be subrogated to the rights of the Holders
of such Securities to receive such payment from the money, U.S. Government
Obligations or Foreign Government Obligations held by the Trustee or Paying
Agent.

9.7.                              MONEYS
HELD BY PAYING AGENT.

In connection with the satisfaction and discharge of
this Indenture, all moneys then held by any Paying Agent under the provisions
of this Indenture shall, upon demand of the Company, be paid to the Trustee, or
if sufficient moneys have been deposited pursuant to Section 9.1 

 38
 

 

hereof, to the Company, and thereupon such Paying
Agent shall be released from all further liability with respect to such moneys.

9.8.                              MONEYS
HELD BY TRUSTEE.

Any moneys deposited with the Trustee or any Paying
Agent or then held by the Company in trust for the payment of the principal of,
or premium, if any, or interest on any Security that are not applied but remain
unclaimed by the Holder of such Security for two years after the date upon
which the principal of, or premium, if any, or interest on such Security shall
have respectively become due and payable shall be repaid to the Company upon
Company Request, or if such moneys are then held by the Company in trust, such
moneys shall be released from such trust; and the Holder of such Security
entitled to receive such payment shall thereafter, as an unsecured general
creditor, look only to the Company for the payment thereof, and all liability
of the Trustee or such Paying Agent with respect to such trust money shall
thereupon cease; PROVIDED, HOWEVER, that the Trustee or any such Paying Agent,
before being required to make any such repayment, may, at the expense of the
Company, either mail to each Securityholder affected, at the address shown in
the register of the Securities maintained by the Registrar or cause to be
published once a week for two successive weeks, in a newspaper published in the
English language, customarily published each Business Day and of general
circulation in the City of New York, New York, a 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 mailing or publication, any unclaimed
balance of such moneys then remaining will be repaid to the Company.  After payment to the Company or the release
of any money held in trust by the Company, Securityholders entitled to the
money must look only to the Company for payment as general creditors unless
applicable abandoned property law designates another Person.

ARTICLE 10

MISCELLANEOUS

10.1.                        TRUST
INDENTURE ACT CONTROLS.

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

10.2.                        NOTICES.

Any notice or communication shall be given in writing
and delivered in Person, sent by facsimile (and receipt confirmed by telephone
or electronic transmission report), delivered by commercial courier service or
mailed by first-class mail, postage prepaid, addressed as follows:

 39
 

 

 

If to the Company:

CombinatoRx, Incorporated

245 First Street, 16th Floor

Cambridge, MA 02142

Fax:  [                       ]

Attention:  General Counsel

Copy to:

Ropes & Gray LLP

One International Place

Boston, Massachusetts  02110

Fax: (617) 951-7050

Attention:  Marc Rubenstein, Esq.

If to
the Trustee:

                                                                                
                                                                                
                                                                                

The Company or the Trustee by written notice to the
other may designate additional or different addresses for subsequent notices or
communications. Any notice or communication to the Company or the Trustee shall
be deemed to have been given or made as of the date so delivered if personally
delivered; when receipt is confirmed by telephone or electronic transmission
report, if sent by facsimile; and three (3) Business Days after mailing if sent
by registered or certified mail, postage prepaid (except that a notice of
change of address shall not be deemed to have been given until actually
received by the addressee).

Any notice or communication mailed to a Securityholder
shall be mailed to such Securityholder by first-class mail, postage prepaid, at
such Securityholder’s address shown on the register kept by the Registrar.

Failure to mail a notice or communication to a
Securityholder or any defect in it shall not affect its sufficiency with
respect to other Securityholders.  If a
notice or communication to a Securityholder is mailed in the manner provided
above, it shall be deemed duly given, three Business Days after such mailing,
whether or not the addressee receives it.

In case by reason of the
suspension of regular mail service, or by reason of any other cause, it shall
be impossible to mail any notice as required by this Indenture, then such
method of notification as shall be made with the approval of the Trustee shall
constitute a sufficient mailing of such notice.

In the case of Global Securities, notices or
communications to be given to Securityholders shall be given to the Depository,
in accordance with its applicable policies as in effect from time to time.

In addition to the manner provided for in the
foregoing provisions, notices or communications to Securityholders shall be
given by the Company by release made to Reuters Economic Services and Bloomberg
Business News.

 40
 

 

 

10.3.                        COMMUNICATIONS
BY HOLDERS WITH OTHER HOLDERS.

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

10.4.                        CERTIFICATE
AND OPINION AS TO CONDITIONS PRECEDENT.

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

(1)           an Officers’ Certificate (which shall
include the statements set forth in Section 10.5 below) stating that, in the
opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

(2)           an Opinion of Counsel (which shall
include the statements set forth in Section 10.5 below) stating that, in the
opinion of such counsel, all such conditions precedent have been complied with.

10.5.                        STATEMENT
REQUIRED IN CERTIFICATE AND OPINION.

Each certificate and opinion with respect to
compliance with a condition or covenant provided for in this Indenture (other
than pursuant to Section 4.4 hereof) shall include:

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

(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
such Person, it or he has made such examination or investigation as is
necessary to enable it or 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 or not, in
the opinion of such Person, such covenant or condition has been complied with.

10.6.                        RULES BY
TRUSTEE AND AGENTS.

The Trustee may make reasonable rules for action by or
at meetings of Securityholders. The Registrar and Paying Agent may make
reasonable rules for their functions.

10.7.                        BUSINESS
DAYS; LEGAL HOLIDAYS; PLACE OF PAYMENT.

A “Business Day” is a day that is not a Legal Holiday.
A “Legal Holiday” is a Saturday, a 

 41
 

 

Sunday, a federally-recognized holiday or a day on
which banking institutions are not authorized or required by law or executive
order to be open in the Commonwealth of Massachusetts or the State of New York.

If a payment date is a Legal Holiday at a Place of
Payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period. “Place
of Payment” means the place or places where the principal of and any premium
and interest on the Securities of a Series are payable as specified as
contemplated by Section 2.2. If the regular record date is a Legal Holiday, the
record date shall not be affected.

10.8.                        GOVERNING
LAW.

THIS INDENTURE AND
THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE COMMONWEALTH OF MASSACHUSETTS, AS APPLIED TO CONTRACTS MADE AND
PERFORMED WITHIN THE COMMONWEALTH OF MASSACHUSETTS WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW.

10.9.                        NO ADVERSE
INTERPRETATION OF OTHER AGREEMENTS.

This Indenture may not be used to interpret another
indenture, loan, security or debt agreement of the Company or any Subsidiary
thereof.  No such indenture, loan,
security or debt agreement may be used to interpret this Indenture.

10.10.                  NO RECOURSE
AGAINST OTHERS.

A director, officer, employee, stockholder or
incorporator, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or the Indenture. Each
Securityholder by accepting a Security waives and releases all such liability.
Such waiver and release are part of the consideration for the issuance of the
Securities.

10.11.                  SUCCESSORS.

All covenants and agreements of the Company in this
Indenture and the Securities shall bind its successors and assigns, whether so
expressed or not.  All agreements of the
Trustee, any additional trustee and any Paying Agents in this Indenture shall
bind their respective successors and assigns.

10.12.                  MULTIPLE
COUNTERPARTS.

The parties may sign multiple counterparts of this
Indenture.  Each signed counterpart shall
be deemed an original, but all of them together represent one and the same
agreement.

10.13.                  TABLE OF
CONTENTS, HEADINGS, ETC.

The table of contents, cross-reference sheet and
headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof, and
shall in no way modify or restrict any of the terms or provisions hereof.

 42
 

 

 

10.14.                  SEVERABILITY.

Each provision of this Indenture shall be considered
separable and if for any reason any provision which is not essential to the
effectuation of the basic purpose of this Indenture or 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
and a Holder shall have no claim therefor against any party hereto.

10.15.                  SECURITIES IN A
FOREIGN CURRENCY OR IN EURO.

Unless otherwise specified in a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate delivered pursuant to
Section 2.2 of this Indenture with respect to a particular Series of
Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of
Securities of all Series or all Series affected by a particular action at the
time outstanding and, at such time, there are outstanding Securities of any
Series which are denominated in a coin or currency other than Dollars
(including Euros), then the principal amount of Securities of such Series which
shall be deemed to be outstanding for the purpose of taking such action shall
be that amount of Dollars that could be obtained for such amount at the Market
Exchange Rate at such time.  For purposes
of this Section 10.15, “Market Exchange Rate” shall mean the noon Dollar buying
rate in New York City for cable transfers of that currency as published by the
Federal Reserve Bank of New York; PROVIDED, HOWEVER, in the case of Euros,
Market Exchange Rate shall mean the rate of exchange determined by the
Commission of the European Union (or any successor thereto) as published in the
Official Journal of the European Union (such publication or any successor
publication, the “Journal”).  If such
Market Exchange Rate is not available for any reason with respect to such
currency, the Trustee shall use, in its sole discretion and without liability
on its part, such quotation of the Federal Reserve Bank of New York or, in the
case of Euros, the rate of exchange as published in the Journal, as of the most
recent available date, or quotations or, in the case of Euros, rates of
exchange from one or more major banks in The City of New York or in the country
of issue of the currency in question or, in the case of Euros, in Luxembourg or
such other quotations or, in the case of Euros, rates of exchange as the
Trustee, upon consultation with the Company, shall deem appropriate.  The provisions of this paragraph shall apply
in determining the equivalent principal amount in respect of Securities of a
Series denominated in currency other than Dollars in connection with any action
taken by Holders of Securities pursuant to the terms of this Indenture.

All decisions and determinations of the Trustee
regarding the Market Exchange Rate or any alternative determination provided
for in the preceding paragraph shall be in its sole discretion and shall, in
the absence of manifest error, be conclusive to the extent permitted by law for
all purposes and irrevocably binding upon the Company and all Holders.

10.16.                  JUDGMENT
CURRENCY.

The Company agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of
obtaining judgment in any court it is necessary to convert the sum due in respect
of the principal of or interest or premium (if any) or other amount on the
Securities of any Series (the “Required Currency”) into a currency in which a
judgment will be 

 43
 

 

rendered (the “Judgment Currency”), the rate of
exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required
Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a New York Banking Day, then, the
rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the New York Banking Day
preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i)
shall not be discharged or satisfied by any tender, any recovery pursuant to
any judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause of
action for the purpose of recovering in the Required Currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable, and (iii) shall not be affected
by judgment being obtained for any other sum due under this Indenture. For
purposes of the foregoing, “New York Banking Day” means any day except a
Saturday, Sunday or a legal holiday in The City of New York on which banking
institutions are authorized or required by law, regulation or executive order
to close.

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.

	
  

  	
  COMBINATORX, INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
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  [Name of Trustee]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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 44

 

 

COMMONWEALTH OF MASSACHUSETTS )

)  SS

COUNTY OF
_________________   )

On this, the ____ day of __________, ____, before me,
a Notary Public in and for said County and State, the undersigned officer,
personally appeared _______________________________, known to me (or
satisfactorily proven) to be the person whose name is subscribed to the within
instrument and acknowledged that he or she executed the same for the purposes
therein contained.

IN WITNESS WHEREOF, I hereunto set my hand and
official seal.

Notary Public                                                                                                                         

[SEAL]

My Commission Expires:

COMMONWEALTH
OF MASSACHUSETTS )

)  SS

COUNTY OF
_________________   )

On this, the ____
day of __________, ____, before me, a Notary Public in and for said County and
State, the undersigned officer, personally appeared
_______________________________, known to me (or satisfactorily proven) to be
the person whose name is subscribed to the within instrument and acknowledged
that he or she executed the same for the purposes therein contained.

IN WITNESS
WHEREOF, I hereunto set my hand and official seal.

Notary Public                                                                                                                         

[SEAL]

My Commission Expires:

 45

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