Document:

EXHIBIT 4.2

                   [Letterhead of Gottbetter & Partners, LLP]

October 14, 2003

Mr. Martin Nielson
Hy-Tech Technology Group, Inc.
1840 Boy Scout Drive
Fort Myers, FL 33907

         RE:      MODIFIED RETAINER AGREEMENT

Dear Mr. McNear:

         Please accept this letter as confirmation that Hy-Tech Technology
Group, Inc. (the "Company"), has agreed to modify the retainer agreement dated
May 15, 2003 (the "Retainer") between the Company and Kaplan Gottbetter &
Levenson, LLP. ("KGL"), the successor firm of which is Gottbetter & Parners,
LLP. ("G&P"). The modification is to take effect as of even date herewith. The
modification, which we understand was approved by the Company's Board of
Directors, is for the Company to pay part of its outstanding bill for legal
services with shares of the Company's common stock, $.001 par value.

         We understand that part of the outstanding bill will be satisfied by
the issuance of 2,200,000 shares valued at $95,700. The board of directors has
approved the filing of a registration on Form S-8 for these 2,200,000 shares.
The legal services for which these shares are being registered and subsequently
issued to Adam S. Gottbetter, a partner of G&P, did not include any services in
connection with the offer or sale of securities in a capital raising
transaction, and did not directly or indirectly promote or maintain a market for
the Company's securities.

         Please note that this letter may be filed as an exhibit to the Form
S-8. In order to effectuate the modification of the Retainer, please sign this
letter and return it to my office. If you have any questions, please call me.

Sincerely,

/S/ GOTTBETTER & PARTNERS, LLP

GOTTBETTER & PARTNERS, LLP

ACCEPTED AND AGREED:

HY-TECH TECHNOLOGY GROUP, INC.

By: /s/ Martin Nielson
   -------------------------
Name:    Martin Nielson
Title:   CEOEX-4.1 FORM OF COMMON STOCK CERTIFICATE

 

Exhibit 4.1

(Translation)

(Front)

SPECIMEN

SHARE CERTIFICATE

OF

ORIX CORPORATION

[Number of Shares Represented by the Certificate] Shares

1Z[E]No. OOOOO

	 	 	 	 
	 	Name of company:

Incorporation registered:	 	
ORIX CORPORATION

March 28, 1950.

This is to certify that the holder named herein is entitled to [number of
Shares represented by the certificate] Shares in the Capital
Stock of Orix Corporation.

	 	 	 	 
	 	 	 	ORIX CORPORATION

Yoshihiko Miyauchi (Seal)

Representative Executive Officer

 

 

(Reverse)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Name of Stockholder	 	Date of	 	Certification Seal	 	 	 	 	 	Name of Stockholder	 	Date of	 	Certification Seal
	 	 	 	 	Registration	 	of Register	 	 	 	 	 	 	 	Registration	 	of Register
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1	 	 	 	 	 	 	 	 	5	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2	 	 	 	 	 	 	 	 	6	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3	 	 	 	 	 	 	 	 	7	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4	 	 	 	 	 	 	 	 	8	 	 	 	 	 	 	 

ORIX CORPORATION

1Z[E]No. OOOOOEX-4.3 FORM OF SENIOR INDENTURE

 

EXHIBIT 4.3

ORIX CORPORATION

and

[_____________],

as Trustee

FORM OF

SENIOR INDENTURE

Dated as of ____________, _____________

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	ARTICLE 1

Definitions

	Section 1.01.	 	Certain Terms Defined
	 	 	1	 
	ARTICLE 2

Securities

	Section 2.01.	 	Forms Generally
	 	 	7	 
	Section 2.02.	 	Form of Trustee’s Certification of Authentication
	 	 	7	 
	Section 2.03.	 	Amount Unlimited; Issuable in Series
	 	 	8	 
	Section 2.04.	 	Authentication and Delivery of Securities
	 	 	11	 
	Section 2.05.	 	Execution of Securities
	 	 	12	 
	Section 2.06.	 	Certificate of Authentication
	 	 	12	 
	Section 2.07.	 	Denomination and Date of Securities; Payments of Interest
	 	 	12	 
	Section 2.08.	 	Registration, Transfer and Exchange
	 	 	13	 
	Section 2.09.	 	Mutilated, Defaced, Destroyed, Lost and Stolen Securities
	 	 	14	 
	Section 2.10.	 	Cancellation of Securities
	 	 	15	 
	Section 2.11.	 	Temporary Securities
	 	 	15	 
	Section 2.12.	 	Japanese Withholding Tax
	 	 	16	 
	Section 2.13.	 	CUSIP and ISIN Numbers
	 	 	17	 
	ARTICLE 3

Covenants of the Issuer and the Trustee

	Section 3.01.	 	Payment of Principal and Interest
	 	 	17	 
	Section 3.02.	 	Offices for Payments, etc.
	 	 	18	 
	Section 3.03.	 	Appointment to Fill a Vacancy in Office of Trustee
	 	 	18	 
	Section 3.04.	 	Paying Agents
	 	 	18	 
	Section 3.05.	 	Certificate of the Issuer
	 	 	19	 
	Section 3.06.	 	Securityholders Lists
	 	 	20	 
	Section 3.07.	 	Reports by the Issuer
	 	 	20	 
	Section 3.08.	 	Reports by the Trustee
	 	 	20	 
	Section 3.09.	 	Negative Pledge
	 	 	20	 
	Section 3.10.	 	Statement by Officers as to Default
	 	 	21	 
	Section 3.11.	 	Calculation of Original Issue Discount
	 	 	21	 
	ARTICLE 4

Remedies of the Trustee and Securityholders on Event of Default

	Section 4.01.	 	Event of Default, Acceleration of Maturity, Waiver of Default
	 	 	21	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	Section 4.02.	 	Collection of Indebtedness by Trustee; Trustee May Prove Debt
	 	 	24	 
	Section 4.03.	 	Application of Proceeds
	 	 	26	 
	Section 4.04.	 	Suits for Enforcement
	 	 	27	 
	Section 4.05.	 	Restoration of Rights on Abandonment of Proceeding
	 	 	28	 
	Section 4.06.	 	Limitations on Suits by Securityholder
	 	 	28	 
	Section 4.07.	 	Unconditional Right of Securityholders to Institute Certain Suits
	 	 	28	 
	Section 4.08.	 	Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default
	 	 	29	 
	Section 4.09.	 	Control by Securityholders
	 	 	29	 
	Section 4.10.	 	Waiver of Past Defaults
	 	 	30	 
	Section 4.11.	 	Trustee to Give Notice of Default, But May Withhold in Certain Circumstances
	 	 	30	 
	Section 4.12.	 	Right of Court to Require Filing of Undertaking to Pay Costs
	 	 	30	 
	Section 4.13.	 	Judgment Currency
	 	 	31	 
	ARTICLE 5

Concerning the Trustee

	Section 5.01.	 	Duties and Responsibilities of the Trustee; During Default; Prior to Default
	 	 	32	 
	Section 5.02.	 	Certain Rights of the Trustee
	 	 	33	 
	Section 5.03.	 	Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof
	 	 	35	 
	Section 5.04.	 	Trustee and Agents May Hold Securities; Collections, etc.
	 	 	35	 
	Section 5.05.	 	Moneys Held by Trustee
	 	 	35	 
	Section 5.06.	 	Compensation and Indemnification of Trustee and its Prior Claim
	 	 	35	 
	Section 5.07.	 	Right of Trustee to Rely on Officer’s Certificate, etc.
	 	 	36	 
	Section 5.08.	 	Persons Eligible for Appointment as Trustee
	 	 	36	 
	Section 5.09.	 	Resignation and Removal; Appointment of Successor Trustee
	 	 	36	 
	Section 5.10.	 	Acceptance of Appointment By Successor Trustee
	 	 	38	 
	Section 5.11.	 	Merger, Conversion, Consolidation or Succession to Business of Trustee
	 	 	39	 
	Section 5.12.	 	Conflicting Interests
	 	 	39	 
	ARTICLE 6

Concerning the Securityholders

	Section 6.01.	 	Evidence of Action Taken by Securityholders
	 	 	40	 
	Section 6.02.	 	Proof of Execution of Instruments and of Holding of Securities; Record Date
	 	 	40	 
	Section 6.03.	 	Holders to be Treated as Owners
	 	 	40	 
	Section 6.04.	 	Securities Owned by Issuer Deemed Not Outstanding
	 	 	41	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	Section 6.05.	 	Right of Revocation of Action Taken
	 	 	41	 
	Section 6.06.	 	Bearer Securities
	 	 	42	 
	ARTICLE 7

Supplemental Indentures

	Section 7.01.	 	Supplemental Indentures Without Consent of Securityholders
	 	 	42	 
	Section 7.02.	 	Supplemental Indentures With Consent of Securityholders
	 	 	44	 
	Section 7.03.	 	Effect of Supplemental Indenture
	 	 	45	 
	Section 7.04.	 	Documents to be Given to Trustee
	 	 	45	 
	Section 7.05.	 	Notation on Securities in Respect of Supplemental Indentures
	 	 	46	 
	Section 7.06.	 	Conformity with the Trust Indenture Act of 1939
	 	 	46	 
	ARTICLE 8

Consolidation, Merger, Sale Or Conveyance

	Section 8.01.	 	Issuer May Consolidate, etc.,
	 	 	46	 
	Section 8.02.	 	Successor Substituted
	 	 	47	 
	Section 8.03.	 	Opinion of Counsel to Trustee
	 	 	47	 
	ARTICLE 9

Satisfaction and Discharge of Indenture; Unclaimed Moneys

	Section 9.01.	 	Satisfaction and Discharge of Indenture
	 	 	47	 
	Section 9.02.	 	Application by Trustee of Funds Deposited for Payment of Securities
	 	 	52	 
	Section 9.03.	 	Repayment of Moneys Held by Paying Agent
	 	 	52	 
	Section 9.04.	 	Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two Years
	 	 	52	 
	ARTICLE 10

Miscellaneous Provisions

	Section 10.01.	 	Incorporators, Stockholders, Officers and Directors of Issuer Exempt from Individual Liability
	 	 	52	 
	Section 10.02.	 	Provisions of Indenture for the Sole Benefit of Parties and Securityholders
	 	 	53	 
	Section 10.03.	 	Successors and Assigns of Issuer Bound by Indenture
	 	 	53	 
	Section 10.04.	 	Notices and Demands on Issuer, Trustee and Securityholders
	 	 	53	 
	Section 10.05.	 	Officer’s Certificates and Opinions of Counsel; Statements to be Contained Therein
	 	 	54	 
	Section 10.06.	 	Payments Due on Saturdays, Sundays and Holidays
	 	 	55	 
	Section 10.07.	 	Conflict of any Provision of Indenture with Trust Indenture Act of 1939
	 	 	55	 
	Section 10.08.	 	New York Law to Govern
	 	 	55	 

iii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	Section 10.09.	 	Counterparts
	 	 	55	 
	Section 10.10.	 	Effect of Headings
	 	 	55	 
	Section 10.11.	 	Submission To Jurisdiction
	 	 	56	 
	Section 10.12.	 	Non-Business Day
	 	 	56	 
	Section 10.13.	 	Waiver of Jury Trial
	 	 	57	 
	ARTICLE 11

Redemption Of Securities And Sinking Funds

	Section 11.01.	 	Applicability of Article
	 	 	57	 
	Section 11.02.	 	Notice of Redemption; Partial Redemptions
	 	 	57	 
	Section 11.03.	 	Payment of Securities Called for Redemption
	 	 	58	 
	Section 11.04.	 	Exclusion of Certain Securities from Eligibility for Selection for Redemption
	 	 	59	 
	Section 11.05.	 	Mandatory and Optional Sinking Funds
	 	 	59	 

iv

 

CROSS REFERENCE SHEET

Cross-reference sheet of provisions of the Trust Indenture Act of 1939 and this
indenture:

	 	 	 	 	 
	Section of the Act	 	Section of Indenture
	
	 	

	310(a)(1) and (2)
	 	5.08
	310(a)(3) and (4)
	 	Inapplicable
	310(a)(5)
	 	Incorporated by Section 318(c)
	310(b)
	 	5.09
	310(c)
	 	Inapplicable
	311(a), (b) and (c)
	 	Incorporated by Section 318(c)
	312(a)
	 	3.06
	312(b)
	 	Incorporated by Section 318(c)
	312(c)
	 	Incorporated by Section 318(c)
	313(a)
	 	3.08
	313(b)(1)
	 	Inapplicable
	313(b)(2)
	 	Incorporated by Section 318(c)
	313(c)
	 	Incorporated by Section 318(c)
	313(d)
	 	Incorporated by Section 318(c)
	314(a)
	 	3.07
	314(b)
	 	Inapplicable
	314(c)(1) and (2)
	 	10.05
	314(c)(3)
	 	Inapplicable
	314(d)
	 	Inapplicable
	314(e)
	 	10.05
	315(a), (c) and (d)
	 	5.01
	315(b)
	 	4.11
	315(e)
	 	4.12
	316(a)(1)
	 	4.09
	316(a)(2)
	 	Inapplicable
	316(b)
	 	4.07
	316(c)
	 	Incorporated by Section 318(c)
	317(a)
	 	4.02
	317(b)
	 	3.04
	318(a)
	 	10.07

Notes:

This cross-reference sheet shall not, for any purpose, be deemed to be a part
of this indenture.

Attention should also be directed to Section 318(c) of the Trust Indenture Act
of 1939, which provides that the provisions of Sections 310 to and including
317 of the 1939 Act are a part of and govern every qualified indenture, whether
or not physically contained therein. Sections designated in the
cross-reference sheet above as “Incorporated by Section 318(c)” are not
physically contained herein but are incorporated in this indenture
automatically by Section 318(c) of the Trust Indenture Act of 1939.

v

 

     THIS INDENTURE, dated as of _____________, ___________ between ORIX Corporation, a
joint stock company (kabushiki kaisha) organized under the laws of Japan (the
“Issuer”), and [____________], (the “Trustee”),

W I T N E S S E T H:

     WHEREAS, the Issuer has duly authorized the issue from time to time of its
unsecured debentures, notes or other evidences of indebtedness to be issued in
one or more series (the “Securities”) up to such principal amount or amounts as
may from time to time be authorized in accordance with the terms of this
Indenture and to provide, among other things, for the authentication, delivery
and administration thereof, the Issuer has duly authorized the execution and
delivery of this Indenture; and

     WHEREAS, all things necessary to make this Indenture a valid indenture and
agreement according to its terms have been done;

     NOW, THEREFORE:

     In consideration of the premises and the purchases of the Securities by
the holders thereof, the Issuer and the Trustee mutually covenant and agree for
the equal and proportionate benefit of the respective holders from time to time
of the Securities as follows:

ARTICLE 1

Definitions

     Section 1.01. Certain Terms Defined. The following terms (except as
otherwise expressly provided herein or in any indenture supplemental hereto, or
unless the context otherwise clearly requires) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective
meanings specified in this Section. All other terms used in this Indenture
that are defined in the Trust Indenture Act of 1939 or the definitions of which
in the Securities Act of 1933 are referred to in the Trust Indenture Act of
1939, including terms defined therein by reference to the Securities Act of
1933 (except as herein otherwise expressly provided or unless the context
otherwise clearly requires), shall have the meanings assigned to such terms in
said Trust Indenture Act and in said Securities Act as in force at the date of
this Indenture. All accounting terms used herein and not expressly defined
shall have the meanings assigned to such terms in accordance with generally
accepted accounting principles, and the term “generally accepted accounting
principles” means such accounting principles as are generally accepted in the
United States at the time of any computation. 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

1

 

 other subdivision. The terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well as the
singular.

     “Authorized Agent” shall have the meaning set forth in Section 10.11.

     “Bearer Security” means any Security other than a Registered Security.

     “Board” means the Board of Directors of the Issuer or any committee of
such Board or an authorized executive officer (shikkou-yaku) duly authorized to
act hereunder.

     “Board Resolution” means one or more resolutions to have been duly adopted
or consented to by the Board or an authorized executive officer (shikkou-yaku)
and to be in full force and effect, and delivered to the Trustee.

     “Business Day” means, with respect to any Security, a day that in Tokyo,
Japan and in the city (or in any of the cities, if more than one) in which
amounts are payable, as specified in the form of such Security, and in any
other city specified in an indenture supplemental hereto or in the form of such
Security, is not a day on which banking institutions are authorized by law or
regulation to close.

     “Clearing Organization” means, with respect to the Securities of any
series issuable or issued in the form of one or more Registered Global
Securities, the Person designated as Clearing Organization by the Issuer
pursuant to Section 2.03 until a successor Clearing Organization shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter “Clearing Organization” shall mean or include each Person who is
then a Clearing Organization hereunder, and if at any time there is more than
one such Person, “Clearing Organization” as used with respect to the Securities
of any such series shall mean the Clearing Organization with respect to the
Registered Global Securities of that series.

     “Commission” means the Securities and Exchange Commission, as from time to
time constituted, created under the Securities Exchange Act of 1934, or if at
any time after the execution and delivery of this Indenture such Commission is
not existing and performing the duties now assigned to it under the Trust
Indenture Act of 1939, then the body performing such duties on such date.

     “Corporate Trust Office” means the office of the Trustee at which the
corporate trust business of the Trustee in the United States shall, at any
particular time, be principally administered, which office is, at the date as
of which this Indenture is dated, located at [     ], or such other address
as the Trustee may designate from time to time by notice to the Holders and the
Issuer, or the principal corporate trust office of any successor trustee (or
such other address as

2

 

 such successor trustee may designate from time to time by notice to the
Holders and the Issuer).

     “Covenant Defeasance” shall have the meaning set forth in Section 9.01.

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

     “DTC” means the Depository Trust Corporation.

     “DTC Procedures” shall have the meaning set forth in Section 2.12.

     “External Indebtedness” means any indebtedness of the Issuer or any of its
consolidated subsidiaries (with a stated maturity of more than one year from
the creation thereof) which is represented by bonds, debentures, notes or any
other similar debt securities which are quoted, listed or ordinarily dealt in,
or are intended to be quoted, listed or ordinarily dealt in, on a stock
exchange or on any over-the-counter or any other similar securities market
outside Japan and which are by their terms repayable or confer a right to
receive repayment in any currency other than Yen or are denominated in Yen if a
majority of the aggregate nominal amount thereof is initially distributed
outside Japan by or with the authorization of the Issuer (or guarantees,
indemnities or other like obligations (in each case granted or undertaken for
the benefit of the holders of such securities to secure the payment of such
indebtedness) in respect of such indebtedness).

     “Event of Default” means any event or condition specified as such in
Section 4.01.

     “Holder”, “holder of Securities”, “Securityholder” or other similar terms
mean the holder of any Security.

     “Incorporated Provision” shall have the meaning set forth in Section
10.07.

     “Indenture” means this instrument as originally executed and delivered or,
if amended or supplemented as herein provided, as so amended or supplemented or
both, and shall include the forms and terms of particular series of Securities
established as contemplated hereunder.

     “interest” means, when used with respect to non-interest bearing
Securities, interest payable after maturity.

     “Issuer” means (except as otherwise provided in Article 5) ORIX
Corporation, a joint stock corporation incorporated under the laws of Japan,
and, subject to Article 8, its successors and assigns.

3

 

     “Judgment Currency” shall have the meaning set forth in Section 4.13.

     “London Trust Office” means the office of the Trustee at which the
corporate trust business of the Trustee in London shall, at any particular
time, be principally administered, which office is, at the date as of which
this Indenture is dated, located at [     ], or such other address as the
Trustee may designate from time to time by notice to the Holders and the
Issuer, or the principal corporate trust office of any successor trustee (or
such other address as such successor trustee may designate from time to time by
notice to the Holders and the Issuer).

     “Mandatory Sinking Fund Payment” shall have the meaning set forth in
Section 11.05.

     “New York Banking Day” shall have the meaning set forth in Section 4.13.

     “Notice of Default” shall have the meaning set forth in Section 4.01.

     “Officer’s Certificate” means a certificate (i) signed by any one
Responsible Officer of the Issuer authorized by the Board to execute any such
certificate and (ii) delivered to the Trustee. Each such certificate shall
comply with Section 314 of the Trust Indenture Act of 1939 and include the
statements provided for in Section 10.05.

     “Opinion of Counsel” means an opinion in writing signed by legal counsel
who may be an employee of or counsel to the Issuer and who shall be reasonably
satisfactory to the Trustee. Each such opinion shall comply with Section 314
of the Trust Indenture Act of 1939 and include the statements provided for in
Section 10.05, if and to the extent required hereby.

     “Optional Sinking Fund Payment” shall have the meaning set forth in
Section 11.05.

     “Original Issue Discount Security” means any Security that provides for an
amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the maturity thereof pursuant to Section 4.01.

     “Outstanding”, when used with reference to Securities, shall, subject to
the provisions of Section 6.04, mean, as of any particular time, all Securities
authenticated and delivered by the Trustee under this Indenture, except:

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

4

 

     (b)  Securities, or portions thereof, for the payment or redemption of
which moneys in the necessary amount shall have been deposited in trust with
the Trustee or with any paying agent (other than the Issuer) or shall have been
set aside, segregated and held in trust by the Issuer for the holders of such
Securities (if the Issuer shall act as its own paying agent), provided that if
such Securities, or portions thereof, are to be redeemed prior to the maturity
thereof, notice of such redemption shall have been given as herein provided, or
provision satisfactory to the Trustee shall have been made for giving such
notice; and

     (c)  Securities in substitution for which other Securities shall have been
authenticated and delivered, or which shall have been paid, pursuant to the
terms of Section 2.09 (except with respect to any such Security as to which
proof satisfactory to the Trustee is presented that such Security is held by a
Person in whose hands such Security is a legal, valid and binding obligation of
the Issuer).

     In determining whether the holders of the requisite principal amount of
Outstanding Securities of any or all series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a
declaration of acceleration of the maturity thereof pursuant to Section 4.01.

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

     “Place of Payment” when used with respect to the Securities of any
particular series, means the place or places where the principal of and
interest, if any, on the Securities of that series are payable, as contemplated
in Section 2.03.

     “principal” whenever used with reference to the Securities or any Security
or any portion thereof, shall be deemed to include “and premium, if any”. For
the avoidance of doubt, “premium” referred to in the previous sentence means
amounts exceeding the face value of a Security payable by the Issuer to the
Holders upon redemption or such other event provided for in a supplemental
indenture or in a form of Security.

     “Registered Global Security” means a Security evidencing all or a part of
a series of Registered Securities, issued to the Clearing Organization for such
series in accordance with Section 2.03, and bearing the legend prescribed by
the applicable supplemental indenture.

     “Registered Security” means any Security registered on the Security
register of the Issuer.

5

 

     “Required Currency” shall have the meaning set forth in Section 4.13.

     “Responsible Officer” when used with respect to the Trustee means any
officer within the corporate trust department of the Trustee, including any
vice president, any trust officer, any assistant trust officer, any assistant
vice president, any assistant secretary, any assistant treasurer, or any other
officer of the Trustee customarily performing functions similar to those
performed by the persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter is referred because of his knowledge of
and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture. When used with
respect to the Issuer, “Responsible Officer” means the chairman, representative
executive officer, daihyou shikkou-yaku, chief executive officer, president,
chief operating officer, vice chairman, deputy president, chief financial
officer, corporate executive vice president, corporate senior vice president,
executive officer, shikkou-yaku, group executive, general manager, manager,
vice president, or any other officer or assistant officer of the Issuer
customarily performing functions similar to those performed by the persons who
at the time shall be such officers.

     “Security” or “Securities” has the meaning stated in the first recital of
this Indenture, or, as the case may be, Securities that have been authenticated
and delivered under this Indenture. If the Securities of any series
incorporate stock acquisition rights, then the terms “Security” and
“Securities” shall be deemed to include such stock acquisition rights.

     “Sinking Fund Payment Date” shall have the meaning set forth in Section
11.05.

     “Tax Documentation” shall have the meaning set forth in Section 2.12.

     “Trustee” means the Person identified as “Trustee” in the first paragraph
hereof and, subject to the provisions of Article 5, shall also include any
successor trustee.

     “Trust Indenture Act of 1939” (except as otherwise provided in Article 7)
means the Trust Indenture Act of 1939 as in force at the date as of which this
Indenture was originally executed.

     “U.S. Government Obligations” shall have the meaning set forth in Section
9.01.

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

6

 

     “Yen” means the coin or currency of Japan that at the time of payment is
legal tender for the payment of public and private debts.

     “Yield to Maturity” means the yield to maturity on a series of securities,
calculated at the time of issuance of such series, or, if applicable, at the
most recent redetermination of interest on such series, and calculated in
accordance with accepted financial practice.

ARTICLE 2

Securities

     Section 2.01. Forms Generally. The Securities of each series shall be
substantially in such form (not inconsistent with this Indenture) as shall be
established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture and may have imprinted or otherwise reproduced thereon such legend or
legends, not inconsistent with the provisions of this Indenture, as may be
required to comply with any law or with any rules or regulations pursuant
thereto, or with any rules of any securities exchange or to conform to general
usage, all as may be determined by the officers executing such Securities, as
evidenced by their execution of the Securities.

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

     Section 2.02. Form of Trustee’s Certification of Authentication. The
Trustee’s certificate of authentication on all Securities shall be in
substantially the following form:

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

	 	 	 	 	 
	Dated: ______________________	 		 	________________________________________
	 	 	 	 	as Trustee
	 	 	 	 	 
	 	 	 	 	By:
_____________________________________
	 	 	 	 	Authorized Officer

7

 

     Section 2.03. Amount Unlimited; Issuable in Series. The aggregate
principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

     The Securities may be issued in one or more series and unless provided for
otherwise in the form of Security or in an indenture supplemental hereto, each
such series shall rank equally and pari passu with all other unsecured and
unsubordinated debt of the Issuer. There shall be established in or pursuant
to a Board Resolution and set forth in an Officer’s Certificate, or established
in one or more indentures supplemental hereto, prior to the issuance of
Securities of any series,

     (a)  the title of the Securities of the series (which shall distinguish the
Securities of the series from all other Securities);

     (b)  any limit upon the aggregate principal amount of the Securities of the
series that 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
2.08, 2.09, 2.11, 4.03 or 11.03);

     (c)  if other than Dollars, the coin or currency in which the Securities of
that series are denominated;

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

     (e)  the rate or rates at which the Securities of the series shall bear
interest, if any, or the method by which such rate shall be determined, the
date or dates from which such interest shall accrue, the interest payment dates
on which such interest shall be payable and the record dates (in the case of
Registered Securities) for the determination of Holders to whom interest is
payable and/or the method by which such rate or rates or date or dates shall be
determined;

     (f)  the place or places where the principal of and any interest on
Securities of the series shall be payable (subject to the provisions of Section
3.02);

     (g)  the price or prices at which, the period or periods within which and
the terms and conditions upon which Securities of the series may be redeemed,
in whole or in part, at the option of the Issuer, pursuant to any sinking fund
or otherwise;

     (h)  the obligation, if any, of the Issuer to redeem, purchase or repay
Securities of the series pursuant to any mandatory redemption sinking fund or
analogous provisions or at the option of a Holder thereof and the price or
prices at

8

 

 which and the period or periods within which and the terms and conditions
upon which Securities of the series shall be redeemed, purchased or repaid, in
whole or in part, pursuant to such obligation;

     (i)  the denominations in which Securities of the series shall be issuable;

     (j)  if other than the principal amount thereof, the portion of the
principal amount of Securities of the series which shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 4.01 or
provable in bankruptcy, civil rehabilitation, reorganization, insolvency or
similar proceedings pursuant to Section 4.02;

     (k)  if other than the coin or currency in which the Securities of that
series are denominated, the coin or currency in which payment of the principal
of or interest on the Securities of such series shall be payable;

     (l)  if the principal of or interest on the Securities of such series are
to be payable, at the election of the Issuer or a Holder thereof, in a coin or
currency other than that in which the Securities are denominated, the period or
periods within which, and the terms and conditions upon which, such election
may be made;

     (m)  if the amount of payments of principal of and interest on the
Securities of the series may be determined with reference to an index based on
a coin or currency other than that in which the Securities of the series are
denominated, or with reference to any currencies, securities or baskets of
securities, commodities or indices, the manner in which such amounts shall be
determined;

     (n)  if the Holders of the Securities of the series may convert or exchange
the Securities of the series into or for securities of the Issuer or of other
entities or other property (or the cash value thereof), the specific terms of
such conversion or exchange, the period during which such conversion or
exchange may be made and any applicable procedures for conversion and for
delivery of the Securities, other property or cash on conversion;

     (o)  whether the Securities of the series will be issuable as Registered
Securities (and if so, whether such Securities will be issuable as Registered
Global Securities) or Bearer Securities (with or without coupons), or any
combination of the foregoing, any restrictions applicable to the offer, sale,
transfer, exchange or delivery of Bearer Securities or Registered Securities or
the payment of interest thereon and, if other than as provided herein, the
terms, if any, upon which Bearer Securities of any series may be exchanged for
Registered Securities of such series and vice versa;

9

 

     (p)  if the Securities of such series will be issuable as Bearer
Securities, the terms of such Securities with respect to voting, consents,
manner of payment, and other matters as to which the Issuer in its sole
discretion may determine that the provisions of this Indenture are
inappropriate or inconvenient because the Securities of such series are not in
registered form;

     (q)  if the Securities of such series are to be issuable in definitive form
(whether upon original issue or upon exchange of a temporary Security of such
series) only upon receipt of certain certificates or other documents or
satisfaction of other conditions, the form and terms of such certificates,
documents or conditions;

     (r)  any trustees, authenticating or paying agents, transfer agents or
registrars or any other agents with respect to the Securities of such series;

     (s)  whether and under what circumstances the Issuer will pay additional
amounts on the Securities for any tax, assessment or governmental charge
withheld or deducted and, if so, whether it will have the option to redeem
those Securities rather than pay the additional amounts;

     (t)  whether certain payments on the Securities will be guaranteed under a
financial insurance guaranty policy and the terms of that guaranty;

     (u)  any applicable selling restrictions;

     (v)  any other events of default, modifications or elimination of any
acceleration rights, or covenants with respect to the Securities of such series
and any terms required by or advisable under applicable laws or regulations,
including laws and regulations relating attributes required for the Securities
to be afforded certain capital treatment for regulatory or other purposes;

     (w)  whether a series of Securities may be reopened in a manner consistent
with the terms of this Indenture, without the consent of the Holders of the
Securities of such series, for increases in the aggregate principal amount of
such series or for the establishment of additional terms with respect to the
Securities of such series;

     (x)  whether the Securities of a series shall be excluded from
participation with the Securities of other series or otherwise differentiated
from the Securities of other series in relation to any matter in respect of
which the Securities generally or Securities of more than one series are
contemplated by this Indenture to act together or otherwise be treated or
affected collectively; and

     (y)  any other terms of the series (which terms shall not be inconsistent
with the provisions of this Indenture).

10

 

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

     Section 2.04. Authentication and Delivery of Securities. At any time
and from time to time after the execution and delivery of this Indenture, the
Issuer may deliver Securities of any series executed by the Issuer to the
Trustee for authentication, and the Trustee shall thereupon authenticate and
deliver such Securities to or upon the written order of the Issuer, signed by
any one Responsible Officer of the Issuer authorized by the Board to execute
any such order, without any further action by the Issuer. In authenticating
such Securities and accepting the additional responsibilities under this
Indenture in relation to such Securities the Trustee shall be entitled to
receive, and (subject to Section 5.01) shall be fully protected in relying
upon:

     (a)  a copy of any Board Resolution relating to such series certified by a
Responsible Officer of the Issuer;

     (b)  an executed supplemental indenture, if any;

     (c)  an Officer’s Certificate setting forth the form and terms of the
Securities as required pursuant to Section 2.01 and 2.03, respectively and
prepared in accordance with Section 10.05;

     (d)  an Opinion of Counsel, prepared in accordance with Section 10.05, to
the effect that

		
	 	     (i) the form or forms and terms of such Securities have been
established by or pursuant to a resolution of the Board or by a
supplemental indenture as permitted by Section 2.01 and 2.03 in
conformity with the provisions of this Indenture;

		
	 	     (ii) such Securities, when authenticated and delivered by the
Trustee and issued by the Issuer in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid
and binding obligations of the Issuer;

		
	 	     (iii) all laws and requirements in respect of the execution and
delivery by the Issuer of the Securities have been complied with; and

		
	 	     (iv) covers such other matters as the Trustee may reasonably
request.

     The Trustee shall have the right to decline to authenticate and deliver
any Securities under this Section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken by the Issuer or if the
Trustee in good

11

 

 faith by its board of directors or board of trustees, executive committee,
or a trust committee of directors or trustees or Responsible Officers shall
determine that such action would expose the Trustee to personal liability to
existing Holders.

     Section 2.05. Execution of Securities. The Securities shall be signed
on behalf of the Issuer by one (or, if so specified in the indenture
supplemental hereto or Board Resolution establishing the terms thereof, more
than one) representative executive officer of the Issuer, which Securities may,
but need not, be attested. Such signatures may be the manual or facsimile
signatures of the present or any future such officers. Typographical and other
minor errors or defects in any such reproduction of any such signature shall
not affect the validity or enforceability of any Security that has been duly
authenticated and delivered by the Trustee.

     In case any officer of the Issuer who shall have signed any of the
Securities shall cease to be such officer before the Security so signed shall
be authenticated and delivered by the Trustee or disposed of by the Issuer,
such Security nevertheless may be authenticated and delivered or disposed of as
though the person who signed such Security had not ceased to be such officer of
the Issuer; and any Security may be signed on behalf of the Issuer by such
persons as, at the actual date of the execution of such Security, shall be the
proper officers of the Issuer, although at the date of the execution and
delivery of this Indenture any such person was not such an officer.

     Section 2.06. Certificate of Authentication. Only such Securities as
shall bear thereon a certificate of authentication substantially in the form
hereinbefore recited, executed by the Trustee by the manual signature of one of
its authorized officers, shall be entitled to the benefits of this Indenture or
be valid or obligatory for any purpose. Such certificate by the Trustee upon
any Security executed by the Issuer shall be conclusive evidence that the
Security so authenticated has been duly authenticated and delivered hereunder
and that the holder is entitled to the benefits of this Indenture.

     Section 2.07. Denomination and Date of Securities; Payments of Interest.
The Securities shall be issuable as Registered Securities or, in the case the
Securities are convertible into or for securities of the Issuer or of other
entities or other property and so required by Japanese law, Bearer Securities
and in denominations as shall be specified as contemplated by Section 2.03.
The Securities of any series shall be issuable in denominations of U.S.$1,000,
1,000,000 Yen, or such other denominations as the Issuer may designate in an
indenture supplemental hereto or Board Resolution establishing the terms
thereof, and any multiple thereof. The Securities shall be numbered, lettered,
or otherwise distinguished in such manner or in accordance with such plan as
the officer or officers of the Issuer executing the same may determine with the
approval of the Trustee as evidenced by the execution and authentication
thereof.

12

 

     Each Security shall be dated the date of its authentication, shall bear
interest, if any, from the date and shall be payable on the dates, in each
case, which shall be specified as contemplated by Section 2.03.

     The person in whose name any Registered Security of any series is
registered at the close of business on any record date applicable to a
particular series with respect to any interest payment date for such series
shall be entitled to receive the interest, if any, payable on such interest
payment date notwithstanding any transfer or exchange of such Security
subsequent to the record date and prior to such interest payment date, except
if and to the extent the Issuer shall default in the payment of the interest
due on such interest payment date for such series, in which case such defaulted
interest shall be paid to the persons in whose names Outstanding Securities for
such series are registered at the close of business on a subsequent record date
(which shall be not less than five Business Days prior to the date of payment
of such defaulted interest) established by notice given by mail by or on behalf
of the Issuer to the holders of Securities not less than 15 days preceding such
subsequent record date. The term “record date” as used with respect to any
interest payment date (except a date for payment of defaulted interest) shall
mean the date specified as such in the terms of the Securities of any
particular series, or, if no such date is so specified, if such interest
payment date is the first day of a calendar month, the fifteenth day of the
next preceding calendar month or, if such interest payment date is the
fifteenth day of a calendar month, the first day of such calendar month,
whether or not such record date is a Business Day.

     Section 2.08. Registration, Transfer and Exchange. The Issuer will keep
or cause to be kept at each office or agency to be maintained for the purpose
as provided in Section 3.02 a register or registers in which, subject to such
reasonable regulations as it may prescribe, it will register, and will register
the transfer of, Registered Securities as in this Article provided. Such
register shall be in written form in the English language or in any other form
capable of being converted into such form within a reasonable time. At all
reasonable times such register or registers shall be open for inspection by the
Trustee.

     Upon due presentation for registration of transfer of any Registered
Security of any series at any such office or agency to be maintained for the
purpose as provided in Section 3.02, the Issuer shall execute and the Trustee
shall authenticate and deliver in the name of the transferee or transferees a
new Security or Securities of the same series in authorized denominations for a
like aggregate principal amount.

     Any Security or Securities of any series may be exchanged for a Security
or Securities of the same series in other authorized denominations, in an equal
aggregate principal amount. Securities of any series to be exchanged shall be
surrendered at any office or agency to be maintained by the Issuer for the
purpose

13

 

 as provided in Section 3.02, and the Issuer shall execute and the Trustee
shall authenticate and deliver in exchange therefor the Security or Securities
of the same series which the Securityholder making the exchange shall be
entitled to receive, bearing numbers not contemporaneously outstanding.

     All Securities presented for registration of transfer, exchange,
redemption or payment shall (if so required by the Issuer or the Trustee) be
duly endorsed by, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Issuer and the Trustee duly executed by,
the Holder or his attorney duly authorized in writing.

     The Issuer may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any exchange
or registration of transfer of Securities. No service charge shall be made for
any such transaction.

     The Issuer shall not be required to exchange or register a transfer of (a)
any Securities of any series for a period of 15 days next preceding the first
mailing of notice of redemption of Securities of such series to be redeemed, or
(b) any Securities selected, called or being called for redemption except, in
the case of any Security where public notice has been given that such Security
is to be redeemed in part, the portion thereof not so to be redeemed.

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

     Section 2.09. Mutilated, Defaced, Destroyed, Lost and Stolen Securities.
In case any temporary or definitive Security shall become mutilated, defaced
or be destroyed, lost or stolen, the Issuer in its discretion may execute, and
upon the written request of any officer of the Issuer, the Trustee shall
authenticate and deliver, a new Security of the same series, bearing a number
not contemporaneously outstanding, in exchange and substitution for the
mutilated or defaced Security, or in lieu of and substitution for the Security
so destroyed, lost or stolen. In every case the applicant for a substitute
Security shall furnish to the Issuer and to the Trustee and any agent of the
Issuer or the Trustee such security or indemnity as may be required by them to
indemnify and defend and to save each of them harmless and, in every case of
destruction, loss or theft, evidence to their satisfaction of the destruction,
loss or theft of such Security and of the ownership thereof and in the case of
mutilation or defacement the applicant shall surrender the Security to the
Trustee or such agent.

     Upon the issuance of any substitute Security, the Issuer may require the
payment of a sum sufficient to cover any tax or other governmental charge that

14

 

 may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee or its agent) connected therewith. In case
any Security which has matured or is about to mature or has been called for
redemption in full shall become mutilated or defaced or be destroyed, lost or
stolen, the Issuer may instead of issuing a substitute Security, pay or
authorize the payment of the same (without surrender thereof except in the case
of a mutilated or defaced Security), if the applicant for such payment shall
furnish to the Issuer and the Trustee and any agent of the Issuer or the
Trustee such security or indemnity as any of them may require to save each of
them harmless, and, in every case of destruction, loss or theft, the applicant
shall also furnish to the Issuer and the Trustee and any agent of the Issuer or
the Trustee evidence to their satisfaction of the destruction, loss or theft of
such Security and of the ownership thereof.

     Every substitute Security of any series issued pursuant to the provisions
of this section by virtue of the fact that any such Security is destroyed, lost
or stolen shall constitute an additional contractual obligation of the Issuer,
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 (but shall
be subject to all the limitations of rights set forth in) this Indenture
equally and proportionately with any and all other Securities of such series
duly authenticated and delivered hereunder. All Securities shall be held and
owned upon the express condition that, to the extent permitted by law, the
foregoing provisions are exclusive with respect to the replacement or payment
of mutilated, defaced or destroyed, lost or stolen Securities and shall
preclude any and all other rights or remedies notwithstanding any law or
statute existing or hereafter enacted to the contrary with respect to the
replacement or payment of negotiable instruments or other securities without
their surrender.

     Section 2.10. Cancellation of Securities. All Securities surrendered
for payment, redemption, registration of transfer or exchange, or for credit
against any payment in respect of a sinking or analogous fund, if surrendered
to the Issuer or any agent of the Issuer or the Trustee, shall be delivered to
the Trustee for cancellation or, if surrendered to the Trustee, shall be
cancelled by it; and no Securities shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Indenture. The Trustee
shall dispose of canceled Securities held by it in accordance with the
Trustee’s procedures for the disposition of cancelled securities in effect as
of the date of such disposition and deliver a certificate of disposition to the
Issuer. If the Issuer 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 delivered to the
Trustee for cancellation.

     Section 2.11. Temporary Securities. Pending the preparation of
definitive Securities for any series, the Issuer may execute and the Trustee
shall authenticate and deliver temporary Securities for such series (printed,
lithographed,

15

 

 typewritten or otherwise reproduced, in each case in form satisfactory to
the Trustee). Temporary Securities of any series shall be issuable as
registered Securities (or bearer Securities if definitive Securities are to be
issued in bearer form) without coupons, of any authorized denomination, and
substantially in the form of the definitive Securities of such series but with
such omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Issuer with the concurrence of the
Trustee. Temporary Securities may contain such reference to any provisions of
this Indenture as may be appropriate. Every temporary Security shall be
executed by the Issuer and be authenticated by the Trustee upon the same
conditions and in substantially the same manner, and with like effect, as the
definitive Securities. Without unreasonable delay the Issuer shall execute and
shall furnish definitive Securities of such series and thereupon temporary
Securities of such series may be surrendered in exchange therefor without
charge at each office or agency to be maintained by the Issuer for that purpose
pursuant to Section 3.02, and the Trustee shall authenticate and deliver in
exchange for such temporary Securities of such series a like aggregate
principal amount of definitive Securities of the same series of authorized
denominations. Until so exchanged, the temporary Securities of any series
shall be entitled to the same benefits under this Indenture as definitive
Securities of such series unless otherwise established pursuant to Section
2.03.

     Section 2.12. Japanese Withholding Tax

     (a)  In compliance with Japanese tax laws and the practices of tax
authorities in Japan, in respect of any interest payment on a series of
Securities issued in global or book-entry form pursuant to this Indenture or
any supplemental indenture hereto, any paying agent shall act in accordance
with the Compliance Procedures for International Securities Offerings by
Japanese Issuer-Securities Held Through DTC ( the “DTC Procedures”) if DTC is
acting as Clearing Organization with respect to such series or with respect to
depositary interests representing the Securities of such series, or in
accordance with such other similar procedures as may be established by another
Clearing Organization. Except as otherwise provided in this Indenture, any
such paying agent shall be responsible only for performing such services as are
specifically provided for in the DTC Procedures or such other procedures
actually known by the paying agent, as applicable and as may be amended or
modified and communicated to the paying agent from time to time. Any such
paying agent and the Issuer may rely on the information provided in the claim
for exemption and other documentation in the absence of actual knowledge to the
contrary. If any interest payment on a series of Securities is due to be made
hereunder and if and so long as payments of interest (if any) by the Issuer to
any paying agent may be made without deduction or withholding for or on account
of Japanese tax only upon receipt of certifications, claims for exemption,
notifications or other documentation in compliance with Japanese tax law
requirements (“Tax Documentation”), the

16

 

 relevant paying agent at the direction of the Issuer shall (i) collect the
required Tax Documentation from the Clearing Organization (or Holders of the
Securities if certificated notes representing such series have been issued);
(ii) provide any required confirmations of information available to it; and
(iii) promptly file the Tax Documentation so received with the relevant tax
office. Any such paying agent may rely on the information provided in Tax
Documentation (including where relevant, supporting documentation) in the
absence of actual knowledge that such information is incorrect.

     (b)  If a Holder of the Securities or the holder of a depositary interest
representing the Securities satisfies the requirements for claiming an
exemption from Japanese withholding tax after the date on which an amount in
respect of such tax is withheld and before the date on which the tax is
actually paid to the Japanese tax authorities, then the Issuer or the paying
agent acting at the direction of the Issuer may, to the extent reasonably
practicable, repay the amount withheld (after deduction of reasonable costs,
including amounts in respect of changes in foreign exchange rates) to the
Holder.

     Section 2.13. CUSIP and ISIN Numbers. The Issuer in issuing the
Securities may use CUSIP and ISIN numbers if then generally in use, and, if so,
the Trustee shall use CUSIP and ISIN numbers in notices of redemption as a
convenience to Holders; provided, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Issuer will promptly notify the Trustee in
writing of any change in the CUSIP or ISIN numbers.

ARTICLE 3

Covenants of the Issuer and the Trustee

     Section 3.01. Payment of Principal and Interest. The Issuer covenants
and agrees for the benefit of each series of Securities that it will duly and
punctually pay or cause to be paid the principal of, and interest on, each of
the Securities of such series (together with any additional amounts payable
pursuant to the terms of such Securities) at the place or places, at the
respective times and in the manner provided in such Securities. Subject to any
other provisions that may be established pursuant to Section 2.03, the interest
on Securities (together with any additional amounts payable pursuant to the
terms of such Securities) shall be payable only to or upon the written order of
the Holders thereof and, at the option of the Issuer, may be paid by wire
transfer or by mailing checks for such interest payable to or upon the written
order of such Holders at their last addresses as they appear on the registry
books of the Issuer (in the case of

17

 

 Registered Securities) or at such other addresses as may be specified in
the written orders of the Holders.

     Section 3.02. Offices for Payments, etc. So long as any of the
Securities remain outstanding, the Issuer will maintain in each Place of
Payment, the following for each series: an office or agency (a) where the
Securities may be presented for payment, (b) where Registered Securities may be
presented for registration of transfer and for exchange as in this Indenture
provided, (c) where Bearer Securities may be presented for exchange as in this
Indenture provided and (d) where Securities convertible into or for securities
of the Issuer or of other entities or other property, if any, may be presented
for conversion as in this Indenture provided or as provided in a supplemental
indenture hereto and (e) where notices and demands to or upon the Issuer in
respect of the Securities or of this Indenture may be served. The Issuer will
give to the Trustee written notice of the location of any such office or agency
and of any change of location thereof. Unless otherwise specified in
accordance with Section 2.03, the Issuer hereby initially designates the
Corporate Trust Office of the Trustee, as the office to be maintained by it for
each such purpose in relation to Registered Securities. In case the Issuer
shall fail to so designate or maintain any such office or agency or shall fail
to give such notice of the location or of any change in the location thereof,
presentations and demands other than for payment and exchange of Bearer
Securities may be made and notices may be served at the Corporate Trust Office
and presentation for payment and exchange of Bearer Securities may be made at
the London Trust Office.

     The Issuer may from time to time designate one or more additional offices
or agencies where the Securities of a series may be presented for payment,
where the Securities of that series may be presented for exchange as provided
in this Indenture and pursuant to Section 2.03 and where Registered Securities
of that series may be presented for registration of transfer as provided in
this Indenture, and the Issuer may from time to time rescind any such
designation, as the Issuer may deem desirable or expedient; provided, however,
that no such designation or rescission shall in any manner relieve the Issuer
of its obligation to maintain the agencies provided for in this Section. The
Issuer will give to the Trustee prompt written notice of any such designation
or rescission thereof.

     Section 3.03. Appointment to Fill a Vacancy in Office of Trustee. The
Issuer, whenever necessary to avoid or fill a vacancy in the office of Trustee,
will appoint, in the manner provided in Section 5.09, a Trustee, so that there
shall at all times be a Trustee with respect to each series of Securities
hereunder.

     Section 3.04. Paying Agents. Whenever the Issuer shall appoint a paying
agent other than the Trustee with respect to the Securities of any series, it
will cause such paying agent to execute and deliver to the Trustee an
instrument in

18

 

 which such agent shall agree with the Trustee, subject to the provisions
of this Section,

     (a)  that it will hold all sums received by it as such agent for the
payment of the principal of or interest on the Securities of such series
(whether such sums have been paid to it by the Issuer or by any other obligor
on the Securities of such series) in trust for the benefit of the Holders of
the Securities of such series or of the Trustee,

     (b)  that it will give the Trustee notice of any failure by the Issuer (or
by any other obligor on the Securities of such series) to make any payment of
the principal of or interest on the Securities of such series when the same
shall be due and payable, and

     (c)  that it will pay any such sums so held in trust by it to the Trustee
upon the Trustee’s written request at any time during the continuance of the
failure referred to in clause 3.04(b) above.

     The Issuer will, on or prior to each due date of the principal of or
interest on the Securities of such series, deposit with the paying agent a sum
sufficient to pay such principal or interest so becoming due, and (unless such
paying agent is the Trustee) the Issuer will promptly notify the Trustee of any
failure to take such action.

     If the Issuer shall act as its own paying agent with respect to the
Securities of any Series, it will, on or before each due date of the principal
of or interest on the Securities of such series, set aside, segregate and hold
in trust for the benefit of the Holders of the Securities of such series a sum
sufficient to pay such principal or interest so becoming due. The Issuer will
promptly notify the Trustee of any failure to take such action.

     Anything in this section to the contrary notwithstanding, the Issuer may
at any time, for the purpose of obtaining a satisfaction and discharge with
respect to one or more or all series of Securities hereunder, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust for any
such series by the Issuer or any paying agent hereunder, as required by this
Section, such sums to be held by the Trustee upon the trusts herein contained.

     Anything in this section to the contrary notwithstanding, the agreement to
hold sums in trust as provided in this section is subject to the provisions of
Section 9.03 and 9.04.

     Section 3.05. Certificate of the Issuer. So long as any Securities are
Outstanding under this Indenture, the Issuer will furnish to the Trustee within
180 days of the end of the Issuer’s fiscal year each year (beginning with the
year

19

 

 following the first issuance of any Securities pursuant to this Indenture)
a brief certificate (which need not comply with Section 10.05) from the
principal executive, financial or accounting officer of the Issuer as to his or
her knowledge of the Issuer’s compliance with all conditions and covenants
under the Indenture (such compliance to be determined without regard to any
period of grace or requirement of notice provided under the Indenture).

     Section 3.06. Securityholders Lists. If and so long as the Trustee
shall not be the Security registrar for the Securities of any series, the
Issuer will furnish or cause to be furnished to the Trustee a list in such form
as the Trustee may reasonably require of the names and addresses of the holders
of the Securities of such series pursuant to Section 312 of the Trust Indenture
Act of 1939 (a) semi-annually not more than 15 days after each record date for
the payment of interest on such Securities, as hereinabove specified, as of
such record date and on dates to be determined pursuant to Section 2.03 for
non-interest bearing securities in each year, and (b) at such other times as
the Trustee may request in writing, within thirty days after receipt by the
Issuer of any such request as of a date not more than 15 days prior to the time
such information is furnished.

     Section 3.07. Reports by the Issuer. The Issuer covenants to file with
the Trustee, as soon as reasonably practicable after the Issuer is required to
file the same with the Commission, copies of the annual reports and of the
information, documents, and other reports that the Issuer may be required to
file with the Commission pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934. 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 Issuer’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officer’s Certificates).

     Section 3.08. Reports by the Trustee. Any Trustee’s report required
under Section 313(a) of the Trust Indenture Act of 1939 shall be transmitted on
or before July 15 in each year following the date hereof, so long as any
Securities are outstanding hereunder, and shall be dated as of a date
convenient to the Trustee no more than 60 nor less than 45 days prior thereto.

     Section 3.09. Negative Pledge. Unless otherwise established in
accordance with Section 2.03 or by any applicable supplemental indenture, so
long as any of the Securities remain outstanding the Issuer shall not create or
permit to subsist any pledge, lien or other charge upon the whole or any part
of its undertaking, assets or revenues present or future to secure, for the
benefit of the holders thereof, any External Indebtedness without according or
procuring to be accorded to the Securities (i) the same security as is granted
to such External Indebtedness or (ii) such other security or guarantee as shall
be satisfactory to

20

 

 Holders representing more than 50% of the outstanding principal amount of
the Securities of all series in respect of which this Section 3.09 is
applicable (treated as one class).

     Section 3.10. Statement by Officers as to Default. The Issuer shall
deliver to the Trustee, reasonably promptly after the Issuer becomes aware of
the occurrence of any Event of Default or an event which, with notice or the
lapse of time or both, would constitute an Event of Default, an Officer’s
Certificate setting forth the details of such Event of Default or default and
the action which the Issuer proposes to take with respect thereto.

     Section 3.11. Calculation of Original Issue Discount. The Issuer shall
provide to the Trustee upon receipt of written request from the Trustee such
information as the Trustee reasonably requires to enable the Trustee to prepare
and file any form required to be submitted by the Issuer with the Internal
Revenue Service and the Holders of the Securities relating to original issue
discount, including, without limitation, Form 1099-OID or any successor form.

ARTICLE 4

Remedies of the Trustee and Securityholders on Event of Default

     Section 4.01. Event of Default, Acceleration of Maturity, Waiver of
Default. Unless otherwise established in accordance with Section 2.03 or by
any applicable supplemental indenture, “Event of Default”, with respect to
Securities of any series wherever used herein, means each one of the following
events which shall have occurred and be continuing (whatever the reason for
such Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body):

     (a)  default shall be made for more than 15 days in the payment of
principal or for more than 30 days in the payment of interest in respect of any
of the Securities of such series; or

     (b)  the Issuer defaults in the performance or observance of any covenant,
condition or provision contained in the Securities of such series or in this
Indenture in respect of the Securities of such series for a period of 90 days
after written notification requesting such default to be remedied by the Issuer
shall first have been given to the Issuer (and to the Trustee in the case of
notice by the Holders referred to below) by the Trustee or the Holders of at
least 25% in principal amount of the then outstanding Securities of such series
(such notification must specify the Event of Default, demand that it be
remedied and state that the notification is a “Notice of Default” hereunder);
or

21

 

     (c)  the Issuer shall have become bound as a consequence of a default by it
in its obligations in respect of any indebtedness for borrowed moneys having a
total principal amount then outstanding of at least US$50,000,000 (or its
equivalent in any other currency or currencies) contracted or incurred by it
prematurely to repay the same, or the Issuer shall have defaulted in the
repayment of any such indebtedness contracted or incurred by it at the later of
the maturity thereof or the expiration of any applicable grace period therefor,
or the Issuer shall have failed to pay when properly called upon to do so, and
after the expiration of any applicable grace period, any guarantee contracted
or incurred by it of any such indebtedness in accordance with the terms of any
such guarantee, and in any such case any such acceleration, default or failure
to pay, as the case may be, is not being contested in good faith and not cured
or otherwise made good within 15 days after such acceleration, default or
failure to pay; or

     (d)  a final and non-appealable order of a court of competent jurisdiction
shall be made or an effective resolution of the Issuer shall be passed for the
winding-up or dissolution of the Issuer except for the purposes of or pursuant
to a consolidation, amalgamation, merger or reconstruction under which the
continuing corporation or the corporation formed as a result thereof
effectively assumes the entire obligations of the Issuer under this Indenture
in relation to the Securities of such series; or

     (e)  an encumbrancer shall have taken possession, or a trustee or receiver
shall have been appointed, in bankruptcy, civil rehabilitation, reorganization
or insolvency of the Issuer, of all or substantially all of its assets and
undertakings and such possession or appointment shall have continued
undischarged and unstayed for a period of 90 days; or

     (f)  the Issuer shall stop payment (within the meaning of the bankruptcy
law of Japan) or (otherwise than for the purposes of such a consolidation,
amalgamation, merger or reconstruction as is referred to in paragraph (d)
above) shall cease to carry on business or shall be unable to pay its debts
generally as and when they fall due; or

     (g)  a decree or order by any court having jurisdiction shall have been
issued adjudging the Issuer bankrupt or insolvent, or approving a petition
seeking with respect to the Issuer reorganization or liquidation under
bankruptcy, civil rehabilitation, reorganization or insolvency law of Japan,
and such decree or order shall have continued undischarged and unstayed for a
period of 90 days; or

     (h)  the Issuer shall initiate or consent to proceedings relating to itself
under bankruptcy, civil rehabilitation, reorganization or insolvency law of
Japan or shall make a conveyance or assignment for the benefit of, or shall
enter into any composition with, its creditors generally; or

22

 

     (i)  any other Event of Default provided in the supplemental indenture or
resolution of the Board under which such series of Securities is issued or in
the form of Security for such series.

     Unless otherwise set forth in any applicable supplemental indenture, if an
Event of Default described in clauses 4.01(a), 4.01(b), 4.01(c), 4.01(f) or
4.01(i) above occurs and is continuing with respect to a series, then, and in
each and every such case, unless the principal of all of the Securities of such
series has already become due and payable, either the Trustee or the holders of
not less than 25% in aggregate principal amount of the Securities of such
series then Outstanding hereunder by notice in writing to the Issuer (and to
the Trustee if given by Securityholders), may declare the entire principal (or,
if the Securities of any such affected series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of such series) of all Securities of such series, and the interest
accrued thereon, to be due and payable immediately, and upon any such
declaration the same shall become immediately due and payable.

     Unless otherwise set forth in any applicable supplemental indenture, if an
Event of Default described in clauses 4.01(d), 4.01(e), 4.01(g) or 4.01(h)
occurs and is continuing, then the principal and accrued and unpaid interest
with respect to any Securities then Outstanding shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder.

     The foregoing provisions, however, are subject to the condition that if,
at any time after the principal (or, if the Securities are Original Issue
Discount Securities, such portion of the principal as may be specified in the
terms thereof) of the Securities of any series shall have been so declared due
and payable, and before any judgment or decree for the payment of the moneys
due shall have been obtained or entered as hereinafter provided, the Issuer
shall pay or shall deposit with the Trustee a sum sufficient to pay all matured
installments of interest upon all the Securities of such series and the
principal of any and all Securities of such series which shall have become due
otherwise than by acceleration (with interest upon such principal and, to the
extent that payment of such interest is enforceable under applicable law, on
overdue installments of interest, at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) specified
in the Securities of such series to the date of such payment or deposit) and
such amount as shall be sufficient to cover reasonable compensation to the
Trustee, its agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Trustee except as a result
of negligence or bad faith, and if any and all Events of Default with respect
to such series, other than the non-payment of the principal of Securities which
shall have become due by acceleration, shall have been cured, waived or
otherwise remedied as provided herein—then and in every such case the holders
of a majority in

23

 

 aggregate principal amount of all the Securities of such series then
Outstanding, by written notice to the Issuer and to the Trustee, may waive all
defaults with respect to such series and rescind and annul such declaration and
its consequences, but no such waiver or rescission and annulment shall extend
to or shall affect any subsequent default or shall impair any right consequent
thereon.

     For all purposes under this Indenture, if a portion of the principal of
any Original Issue Discount Securities shall have been accelerated and declared
due and payable pursuant to the provisions hereof, then, from and after such
declaration, unless such declaration has been rescinded and annulled, the
principal amount of such Original Issue Discount Securities shall be deemed,
for all purposes hereunder, to be such portion of the principal thereof as
shall be due and payable as a result of such acceleration, and payment of such
portion of the principal thereof as shall be due and payable as a result of
such acceleration, together with interest, if any, thereon and all other
amounts owing thereunder, shall constitute payment in full of such Original
Issue Discount Securities.

     Section 4.02. Collection of Indebtedness by Trustee; Trustee May Prove
Debt. The Issuer covenants that (a) in case default shall be made in the
payment of any installment of interest on any of the Securities of any series
when such interest shall have become due and payable, and such default shall
have continued for a period of 30 days or (b) in case default shall be made in
the payment of all or any part of the principal of any of the Securities of any
series when the same shall have become due and payable, whether upon maturity
of the Securities of such series or upon any redemption or by declaration or
otherwise, then upon demand of the Trustee, the Issuer will pay to the Trustee
for the benefit of the Holders of the Securities of such series the whole
amount that then shall have become due and payable on all Securities of such
series for principal or interest, as the case may be (with interest to the date
of such payment upon the overdue principal and, to the extent that payment of
such interest is enforceable under applicable law, on overdue installments of
interest, at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in the Securities of such
series); and in addition thereto, such further amount as shall be sufficient to
cover the costs and expenses of collection, including reasonable compensation
to the Trustee and each predecessor trustee, their respective agents, attorneys
and counsel, and any expenses and liabilities incurred, and all advances made,
by the Trustee and each predecessor trustee except as a result of its
negligence or bad faith.

     Until such demand is made by the Trustee, the Issuer may pay the principal
of and interest on the Securities of any series to the Holders, whether or not
the principal of and interest on the Securities of such series be overdue.

     In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be

24

 

 entitled and empowered to institute any action or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceedings to judgment or final decree, and may enforce any
such judgment or final decree against the Issuer or other obligor upon such
Securities and collect in the manner provided by law out of the property of the
Issuer or other obligor upon such Securities, wherever situated, the moneys
adjudged or decreed to be payable.

     In case there shall be pending proceedings relative to the Issuer or any
other obligor upon the Securities under any applicable bankruptcy, civil
rehabilitation, reorganization, insolvency or other similar law, or in case a
receiver, assignee or trustee in bankruptcy, civil rehabilitation,
reorganization or insolvency, or a liquidator, sequestrator or similar official
shall have been appointed for or taken possession of the Issuer or its property
or such other obligor, or in case of any other comparable judicial proceedings
relative to the Issuer or other obligor upon the Securities of any series, or
to the creditors or property of the Issuer or such other obligor, the Trustee,
irrespective of whether the principal of any Securities shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand pursuant to the provisions of
this Section, shall be entitled and empowered, by intervention in such
proceedings or otherwise:

		
	 	     (a) to file and prove a claim or claims for the whole amount of
principal and interest (or, if the Securities of any series are
Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms of such series) owing and
unpaid in respect of the Securities of any series, and to file such
other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for reasonable
compensation to the Trustee and each predecessor trustee, and their
respective agents, attorneys and counsel, and for reimbursement of all
expenses and liabilities incurred, and all advances made, by the
Trustee and each predecessor trustee, except as a result of negligence
or bad faith) and of the Securityholders allowed in any judicial
proceedings relative to the Issuer or other obligor upon the
Securities of any series, or to the creditors or property of the
Issuer or such other obligor,

		
	 	     (b) unless prohibited by applicable law and regulations, to vote
on behalf of the holders of the Securities of any series in any
election of a trustee or a standby trustee or receiver or standby
receiver in arrangement, reorganization, liquidation or other
bankruptcy, civil rehabilitation, reorganization or insolvency
proceedings or person performing similar functions in comparable
proceedings, and

25

 

		
	 	     (c) to collect and receive any moneys or other property payable
or deliverable on any such claims, and to distribute all amounts
received with respect to the claims of the Securityholders and of the
Trustee on their behalf; and any trustee, receiver, or liquidator,
custodian or other similar official is hereby authorized by each of
the Securityholders to make payments to the Trustee, and, in the event
that the Trustee shall consent to the making of payments directly to
the Securityholders, to pay to the Trustee such amounts as shall be
sufficient to cover reasonable compensation to the Trustee, each
predecessor trustee and their respective agents, attorneys and
counsel, and all other expenses and liabilities incurred, and all
advances made, by the Trustee and each predecessor trustee except as a
result of negligence or bad faith.

     Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities of any 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 proceeding, except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar person.

     All rights of action and of asserting claims under this Indenture, or
under any of the Securities, may be enforced by the Trustee without the
possession of any of the Securities or the production thereof in any trial or
other proceedings relative thereto, and any such action or proceedings
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Trustee, each predecessor
trustee and their respective agents and attorneys, shall be for the ratable
benefit of the holders of the Securities in respect of which such action was
taken.

     In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the
holders of the Securities in respect to which such action was taken, and it
shall not be necessary to make any holders of such Securities parties to any
such proceedings.

     Section 4.03.
Application of Proceeds. Any moneys collected by the
Trustee pursuant to this Article in respect of any series shall be applied in
the following order at the date or dates fixed by the Trustee and, in case of
the distribution of such moneys on account of principal or interest, upon
presentation of the several Securities in respect of which monies have been
collected and stamping (or otherwise noting) thereon the payment, or issuing
Securities of such series in reduced principal amounts in exchange for the
presented Securities of like series if only partially paid, or upon surrender
thereof if fully paid:

26

 

		
	 	     FIRST: To the payment of costs and expenses applicable to such
series in respect of which monies have been collected, including
reasonable compensation to the Trustee and each predecessor trustee and
their respective agents and attorneys and of all expenses and
liabilities incurred, and all advances made, by the Trustee and each
predecessor trustee except as a result of negligence or bad faith;

		
	 	     SECOND: In case the principal of the Securities of such series in
respect of which moneys have been collected shall not have become and be
then due and payable, to the payment of interest on the Securities of
such series in default in the order of the maturity of the installments
of such interest, with interest (to the extent that such interest has
been collected by the Trustee) upon the overdue installments of interest
at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in such
Securities, such payments to be made ratably to the persons entitled
thereto, without discrimination or preference;

		
	 	     THIRD: In case the principal of the Securities of such series in
respect of which moneys have been collected shall have become and shall
be then due and payable, to the payment of the whole amount then owing
and unpaid upon all the Securities of such series for principal and
interest, with interest upon the overdue principal, and (to the extent
that such interest has been collected by the Trustee) upon overdue
installments of interest at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities)
specified in the Securities of such series; and in case such moneys
shall be insufficient to pay in full the whole amount so due and unpaid
upon the Securities of such series, then to the payment of such
principal and interest or Yield to Maturity, without preference or
priority of principal over interest or Yield to Maturity, or of interest
or Yield to Maturity over principal, or of any installment of interest
over any other installment of interest, or of any Security of such
series over any other Security of such series, ratably to the aggregate
of such principal and accrued and unpaid interest or Yield to Maturity;
and

		
	 	     FOURTH: To the payment of the remainder, if any, to the Issuer or
any other person lawfully entitled thereto.

     Section 4.04. Suits for Enforcement. In case an Event of Default has
occurred, has not been waived and is continuing, the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in this Indenture or in aid of the exercise
of any power granted in this

27

 

 Indenture or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.

     Section 4.05. Restoration of Rights on Abandonment of Proceeding. In
case the Trustee shall have proceeded to enforce any right under this Indenture
and such proceedings shall have been discontinued or abandoned for any reason,
or shall have been determined adversely to the Trustee, then and in every such
case the Issuer and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the
Issuer, the Trustee and the Securityholders shall continue as though no such
proceedings had been taken.

     Section 4.06. Limitations on Suits by Securityholder. No Holder of any
Security of any series shall have any right by virtue or by availing of any
provision of this Indenture to institute any action or proceeding at law or in
equity or in bankruptcy or otherwise upon or under or with respect to this
Indenture, or for the appointment of a trustee, receiver, liquidator, custodian
or other similar official or for any other remedy hereunder, unless such Holder
previously shall have given to the Trustee written notice of default and of the
continuance thereof, as hereinbefore provided, and unless also the Holders of
not less than 25% in aggregate principal amount of the Securities of each
affected series then Outstanding (treated as a single class) shall have made
written request upon the Trustee to institute such action or proceedings in its
own name as trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby and the Trustee for 60 days after
its receipt of such notice, request and offer of indemnity shall have failed to
institute any such action or proceeding and no direction inconsistent with such
written request shall have been given to the Trustee pursuant to Section 4.09;
it being understood and intended, and being expressly covenanted by the taker
and Holder of every Security with every other taker and Holder and the Trustee,
that no one or more Holders of Securities of any series shall have any right in
any manner whatever by virtue or by availing of any provision of this Indenture
to affect, disturb or prejudice the rights of any other such Holder of
Securities, or to obtain or seek to obtain priority over or preference to any
other such Holder or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all
Holders of Securities of the applicable series. For the protection and
enforcement of the provisions of this Section, each and every Securityholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

     Section 4.07. Unconditional Right of Securityholders to Institute
Certain Suits. Notwithstanding any other provision in this Indenture and any
provision of any Security, the right of any Holder of any Security to receive
payment of the principal of and interest on such Security on or after the
respective due dates expressed in such Security, or to institute suit for the
enforcement of any such

28

 

 payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

     Section 4.08. Powers and Remedies Cumulative; Delay or Omission Not
Waiver of Default. Except as provided in Section 4.06, no right or remedy
herein conferred upon or reserved to the Trustee or to the Securityholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     No delay or omission of the Trustee or of any Securityholder to exercise
any right or power accruing upon any Event of Default occurring and continuing
as aforesaid shall impair any such right or power or shall be construed to be a
waiver of any such Event of Default or an acquiescence therein; and, subject to
Section 4.06, every power and remedy given by this Indenture or by law to the
Trustee or to the Securityholders may be exercised from time to time, and as
often as shall be deemed expedient, by the Trustee or by the Securityholders.

     Section 4.09. Control by Securityholders. The Holders of a majority in
aggregate principal amount of the Securities of each series affected (with all
such series voting as a single class) at the time Outstanding shall have the
right to direct the time, method, and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred
on the Trustee with respect to the Securities of such series by this Indenture;
provided that such direction shall not be otherwise than in accordance with law
and the provisions of this Indenture and provided further that (subject to the
provisions of Section 5.01) the Trustee shall have the right to decline to
follow any such direction if the Trustee, being advised by counsel, shall
determine that the action or proceeding so directed may not lawfully be taken
or if the Trustee in good faith by its board of directors, the executive
committee, or a trust committee of directors or Responsible Officers of the
Trustee shall determine that the action or proceedings so directed would
involve the Trustee in personal liability or if the Trustee in good faith shall
so determine that the actions or forebearances specified in or pursuant to such
direction would be unduly prejudicial to the interests of Holders of the
Securities of all series so affected not joining in the giving of said
direction, it being understood that (subject to Section 5.01) the Trustee shall
have no duty to ascertain whether or not such actions or forebearances are
unduly prejudicial to such Holders.

     Nothing in this Indenture shall impair the right of the Trustee in its
discretion to take any action deemed proper by the Trustee and which is not
inconsistent with such direction or directions by Securityholders.

29

 

     Section 4.10. Waiver of Past Defaults. Prior to the acceleration of the
maturity of any Securities as provided in Section 4.01, the Holders of a
majority in aggregate principal amount of the Securities of all series at the
time Outstanding with respect to which an Event of Default shall have occurred
and be continuing (voting as a single class) may on behalf of the Holders of
all such Securities waive any past default or Event of Default described in
Section 4.01 and its consequences, except a default in respect of a covenant or
provision hereof which cannot be modified or amended without the consent of the
Holder of each Security affected. In the case of any such waiver, the Issuer,
the Trustee and the Holders of all such Securities shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other default or impair any right consequent
thereon.

     Upon any such waiver, such default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured, and not to have occurred for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

     Section 4.11. Trustee to Give Notice of Default, But May Withhold in
Certain Circumstances. The Trustee shall give to the Securityholders of any
series, in the case of Registered Securities as the names and addresses of such
Holders appear on the registry books, notice by mail (or by other means
provided in a supplemental indenture hereto or the Board Resolution under which
such series of Securities is issued or in the form of Security for such series)
of all defaults known to the Trustee which have occurred with respect to such
series, such notice to be transmitted within 90 days after the occurrence
thereof, unless such defaults shall have been cured before the giving of such
notice (the term “default” or “defaults” for the purposes of this section being
hereby defined to mean any event or condition which is, or with notice or lapse
of time or both would become, an Event of Default); provided that, except in
the case of default in the payment of the principal of or interest on any of
the Securities of such series, or in the payment of any sinking or purchase
fund installment with respect to the Securities of such series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee, or a trust committee of directors or
trustees and/or Responsible Officers of the Trustee in good faith determines
that the withholding of such notice is in the interests of the Securityholders
of such series.

     Section 4.12. Right of Court to Require Filing of Undertaking to Pay
Costs. All parties to this Indenture agree, and each Holder of any Security by
his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an

30

 

 undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder or group of
Securityholders of any series holding in the aggregate more than 10% in
aggregate principal amount of the Securities of such series, or, in the case of
any suit relating to or arising under clauses 4.01(b) or 4.01(c) (if the suit
relates to Securities of more than one but less than all series), 10% in
aggregate principal amount of Securities Outstanding affected thereby, or in
the case of any suit relating to or arising under clauses 4.01(b) or 4.01(c)
(if the suit relates to all the Securities then Outstanding), 4.01(g) or
4.01(h), 10% in aggregate principal amount of all Securities Outstanding, or to
any suit instituted by any Securityholder for the enforcement of the payment of
the principal of or interest on any Security on or after the due date expressed
in such Security.

     Section 4.13. Judgment Currency. The Issuer 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 on the Securities of any series
(the “Required Currency”) into a currency in which a judgment will be 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, to the extent permitted by applicable law, 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, or 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 or a day on which banking institutions in
The City of New York are authorized or required by law or executive order to
close.

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ARTICLE 5

Concerning the Trustee

     Section 5.01. Duties and Responsibilities of the Trustee; During
Default; Prior to Default. With respect to the Holders of any series of
Securities issued hereunder, the Trustee, prior to the occurrence of an Event
of Default with respect to the Securities of a particular series and after the
curing or waiving of all Events of Default which may have occurred with respect
to such series, undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture. In case an Event of Default with
respect to the Securities of a series has occurred (which has not been cured or
waived) the Trustee shall exercise with respect to such series of Securities
such of the rights and powers vested in it by this Indenture, and use the same
degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of his or her own affairs.

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

     (a)  prior to the occurrence of an Event of Default with respect to the
Securities of any series and after the curing or waiving of all such Events of
Default with respect to such series which may have occurred:

		
	 	     (i) the duties and obligations of the Trustee with respect to the
Securities of such Series shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except
for the performance of such duties and obligations as are specifically
set forth in this Indenture, and no implied covenants or obligations
shall be read into this Indenture against the Trustee; and

		
	 	     (ii) in the absence of bad faith on the part of the Trustee, the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any statements,
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such statements,
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 (but need not confirm or investigate the
accuracy of the mathematical calculations therein);

     (b)  the Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer or Responsible Officers of the Trustee, unless

32

 

 it shall be proved that the Trustee was negligent in ascertaining the
pertinent facts; and

     (c)  the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders pursuant to Section 4.09 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture.

     None of the provisions contained in this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of
its rights or powers, if there shall be reasonable ground for believing that
the repayment of such funds or adequate indemnity against such liability is not
reasonably assured to it.

     The provisions of this Section 5.01 are in furtherance of and subject to
Sections 315 and 316 of the Trust Indenture Act of 1939.

     Section 5.02. Certain Rights of the Trustee. In furtherance of and
subject to the Trust Indenture Act of 1939, and subject to Section 5.01:

     (a)  in the absence of bad faith on its part, the Trustee may conclusively
rely and shall be protected in acting or refraining from acting upon any
resolution, Officer’s Certificate or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, bond, debenture,
note, coupon, security or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;

     (b)  any request, direction, order or demand of the Issuer mentioned herein
shall be sufficiently evidenced by an Officer’s Certificate (unless other
evidence in respect thereof be herein specifically prescribed); and any
resolution of the Board may be evidenced to the Trustee by a copy thereof
certified by a Responsible Officer of the Issuer;

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

     (d)  the Trustee shall be under no obligation to exercise any of the trusts
or powers vested in it by this Indenture at the request, order or direction of
any of the Securityholders pursuant to the provisions of this Indenture, unless
such Securityholders shall have offered to the Trustee reasonable security or
indemnity

33

 

 against the costs, expenses and liabilities which might be incurred
therein or thereby;

     (e)  the Trustee shall not be liable for any action taken or omitted by it
in good faith and believed by it to be authorized or within the discretion,
rights or powers conferred upon it by this Indenture;

     (f)  prior to the occurrence of an Event of Default hereunder and after the
curing or waiving of all Events of Default, the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, appraisal, bond, debenture, note, coupon, security, or other
paper or document unless requested in writing so to do by the Holders of not
less than a majority in aggregate principal amount of the Securities of all
series affected then outstanding; provided that, if the payment within a
reasonable time to the Trustee of the costs, expenses or liabilities likely to
be incurred by it in the making of such investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded to it
by the terms of this Indenture, the Trustee may require reasonable indemnity
against such expenses or liabilities as a condition to proceeding; the
reasonable expenses of every such investigation shall be paid by the Issuer or,
if paid by the Trustee or any predecessor trustee, shall be repaid by the
Issuer upon demand;

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

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

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

     (j)  the Trustee may request that the Issuer deliver an Officer’s
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officer’s Certificate may be signed by any person authorized to sign an
Officer’s

34

 

 Certificate, including any person specified as so authorized in any such
certificate previously delivered and not superseded.

     Section 5.03. Trustee Not Responsible for Recitals, Disposition of
Securities or Application of Proceeds Thereof. The recitals contained herein
and in the Securities, except the Trustee’s certificates of authentication,
shall be taken as the statements of the Issuer, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no
representation as to the validity or sufficiency of this Indenture or of the
Securities. The Trustee shall not be accountable for the use or application by
the Issuer of any of the Securities or of the proceeds thereof.

     Section 5.04. Trustee and Agents May Hold Securities; Collections, etc.
The Trustee or any agent of the Issuer or the Trustee, in its individual or any
other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not the Trustee or such agent and may otherwise
deal with the Issuer and receive, collect, hold and retain collections from the
Issuer with the same rights it would have if it were not the Trustee or such
agent.

     Section 5.05. Moneys Held by Trustee. Subject to the provisions of
Section 9.03 hereof, all moneys received by the Trustee shall, until used or
applied as herein provided, be held in trust for the purposes for which they
were received, but need not be segregated from other funds except to the extent
required by mandatory provisions of law. Neither the Trustee nor any agent of
the Issuer or the Trustee shall be under any liability for interest on any
moneys received by it hereunder, except as otherwise agreed in writing with the
Issuer.

     Section 5.06. Compensation and Indemnification of Trustee and its Prior
Claim. The Issuer covenants and agrees to pay to the Trustee from time to
time, and the Trustee shall be entitled to, such reasonable compensation as the
Issuer and the Trustee shall from time to time agree in writing (which shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust) and the Issuer covenants and agrees to pay or
reimburse the Trustee and each predecessor trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by or on
behalf of it in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of
its counsel and of all agents and other persons not regularly in its employ)
except to the extent any such expense, disbursement or advance may arise from
its negligence or bad faith. The Issuer also covenants to indemnify the
Trustee and each predecessor trustee for, and to hold it harmless against, any
loss, liability or expense (including taxes other than taxes based upon,
measured by or determined by the income of the Trustee) arising out of or in
connection with the acceptance or administration of this Indenture or the
trusts hereunder and the performance of its duties hereunder, including the
costs and expenses of defending itself against or investigating any

35

 

 claim of liability in the premises, except to the extent such loss,
liability or expense is due to the negligence or bad faith of the Trustee, its
agents or employees or such predecessor trustee. The obligations of the Issuer
under this section to compensate and indemnify the Trustee and each predecessor
trustee and to pay or reimburse the Trustee and each predecessor trustee for
expenses, disbursements and advances shall constitute additional indebtedness
hereunder and shall survive the satisfaction and discharge of this Indenture.
Such additional indebtedness shall be a senior claim to that of the Securities
upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the benefit of the holders of particular Securities,
and the Securities are hereby subordinated to such senior claim.

     When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 4.01(e), Section 4.01(f), Section 4.01(g)
or Section 4.01(h) the expenses (including the reasonable charges and expenses
of its counsel) and the compensation for the services are intended to
constitute expenses of administration under any applicable bankruptcy,
insolvency or other similar law.

     Section 5.07. Right of Trustee to Rely on Officer’s Certificate, etc.
Subject to Sections 5.01 and 5.02, whenever in the administration of the trusts
of this Indenture the Trustee shall deem it necessary or desirable that a
matter be proved or established prior to taking or suffering or omitting any
action hereunder, such matter (unless other evidence in respect thereof be
herein specifically prescribed) may, in the absence of negligence or bad faith
on the part of the Trustee, be deemed to be conclusively proved and established
by an Officer’s Certificate delivered to the Trustee, and such certificate, in
the absence of negligence or bad faith on the part of the Trustee, shall be
full warrant to the Trustee for any action taken, suffered or omitted by it
under the provisions of this Indenture upon the faith thereof.

     Section 5.08. Persons Eligible for Appointment as Trustee. The Trustee
for each series of Securities hereunder shall at all times be a corporation
having a combined capital and surplus of at least $150,000,000, and which is
eligible in accordance with the provisions of Section 310(a) of the Trust
Indenture Act of 1939. If such corporation publishes reports of condition at
least annually, pursuant to law or to the requirements of a Federal, State or
District of Columbia supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published.

     Section 5.09. Resignation and Removal; Appointment of Successor Trustee.
(a) The Trustee, or any trustee or trustees hereafter appointed, may at any
time resign with respect to one or more or all series of Securities by giving

36

 

 written notice of resignation to the Issuer and by mailing notice thereof
by first class mail to Holders of the applicable series of Securities at their
last addresses as they shall appear on the Security register or otherwise
providing notice to Holders in the manner applicable to the Securities of each
series. Upon receiving such notice of resignation, the Issuer shall promptly
appoint a successor trustee or trustees with respect to the applicable series
by written instrument in duplicate, executed by authority of the Board, one
copy of which instrument shall be delivered to the resigning Trustee and one
copy to the successor trustee or trustees. If no successor trustee shall have
been so appointed with respect to any series and have accepted appointment
within 30 days after the mailing of such notice of resignation, the resigning
trustee may petition any court of competent jurisdiction for the appointment of
a successor trustee, or any Securityholder who has been a bona fide Holder of a
Security or Securities of the applicable series for at least six months may,
subject to the provisions of Section 4.12, on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor
trustee. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.

     (b)  In case at any time any of the following shall occur:

		
	 	     (i) the Trustee shall fail to comply with the provisions of Section
310(b) of the Trust Indenture Act of 1939 with respect to any series of
Securities after written request therefor by the Issuer or by any
Securityholder who has been a bona fide Holder of a Security or
Securities of such series for at least six months; or

		
	 	     (ii) the Trustee shall cease to be eligible in accordance with the
provisions of Section 310(a) of the Trust Indenture Act of 1939 and
shall fail to resign after written request therefor by the Issuer or by
any Securityholder; or

		
	 	     (iii) the Trustee shall become incapable of acting with respect to
any series of Securities, or shall be adjudged a bankrupt or insolvent,
or a receiver or liquidator of the Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation;

then, in any such case, the Issuer may remove the Trustee with respect to the
applicable series of Securities and appoint a successor trustee for such series
by written instrument, in duplicate, executed by order of the Board of the
Issuer, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor trustee, or, subject to Section 315(e) of
the Trust Indenture Act of 1939, any Securityholder who has been a bona fide
Holder of a Security or Securities of such series for at least six months may,
on behalf of himself and all

37

 

others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee with respect
to such series. Such court may thereupon, after such notice, if any, as it may
deem proper and prescribe, remove the Trustee and appoint a successor trustee.

     (c)  The Holders of a majority in aggregate principal amount of the
Securities of each series at the time outstanding may at any time remove the
Trustee with respect to Securities of such series and appoint a successor
trustee with respect to the Securities of such series by delivering to the
Trustee so removed, to the successor trustee so appointed and to the Issuer the
evidence provided for in Section 6.01 of the action in that regard taken by the
Securityholders.

     (d)  Any resignation or removal of the Trustee with respect to any series
and any appointment of a successor trustee with respect to such series pursuant
to any of the provisions of this Section 5.09 shall become effective upon
acceptance of appointment by the successor trustee as provided in Section 5.10.

     Section 5.10. Acceptance of Appointment By Successor Trustee. Any
successor trustee appointed as provided in Section 5.09 shall execute and
deliver to the Issuer and to its predecessor trustee an instrument accepting
such appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee with respect to all or any applicable series shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all rights, powers, duties and obligations
with respect to such series of its predecessor hereunder, with like effect as
if originally named as trustee for such series hereunder; but, nevertheless, on
the written request of the Issuer or of the successor trustee, upon payment of
its charges then unpaid, the trustee ceasing to act shall, subject to Section
9.03, pay over to the successor trustee all moneys at the time held by it
hereunder and shall execute and deliver an instrument transferring to such
successor trustee all such rights, powers, duties and obligations. Upon
request of any such successor trustee, the Issuer shall execute any and all
instruments in writing for more fully and certainly vesting in and confirming
to such successor trustee all such rights and powers. Any trustee ceasing to
act shall, nevertheless, retain a prior claim upon all property or funds held
or collected by such trustee to secure any amounts then due it pursuant to the
provisions of Section 5.06.

     If a successor trustee is appointed with respect to the Securities of one
or more (but not all) series, the Issuer, the predecessor trustee and each
successor trustee with respect to the Securities of any applicable series shall
execute and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the predecessor trustee with respect to
the Securities of any series as to which the predecessor trustee is not
retiring shall continue to be vested

38

 

 in the predecessor trustee, and shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such trustees co-trustees of the same trust and that each such
trustee shall be trustee of a trust or trusts under separate indentures.

     Upon acceptance of appointment by any successor trustee as provided in
this Section 5.10, the Issuer shall mail notice thereof by first-class mail to
the Holders of Securities of any series for which such successor trustee is
acting as trustee at their last addresses as they shall appear in the Security
register or shall otherwise provide notice thereof to Holders in the manner
applicable to the Securities of each series. If the acceptance of appointment
is substantially contemporaneous with the resignation, then the notice called
for by the preceding sentence may be combined with the notice called for by
Section 5.09. If the Issuer fails to mail or provide such notice within ten
days after acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be mailed or provided at the expense of the
Issuer.

     Section 5.11. Merger, Conversion, Consolidation or Succession to
Business of Trustee. Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder, provided that such corporation shall be eligible under the
provisions of Section 5.08, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

     In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture and any of the Securities of any series shall
have been authenticated but not delivered, any such successor to the Trustee
may adopt the certificate of authentication of any predecessor trustee and
deliver such Securities so authenticated; and, in case at that time any of the
Securities of any series shall not have been authenticated, any successor to
the Trustee may authenticate such Securities either in the name of any
predecessor hereunder or in the name of the successor trustee; and in all such
cases such certificate shall have the full force which it is anywhere in the
Securities of such series or in this Indenture provided that the certificate of
the Trustee shall have; provided, that the right to adopt the certificate of
authentication of any predecessor trustee or to authenticate Securities of any
series in the name of any predecessor trustee shall apply only to its successor
or successors by merger, conversion or consolidation.

     Section 5.12. Conflicting Interests. The Trustee for the Securities
shall be subject to the provisions of Section 310(b) of the Trust Indenture Act
of 1939

39

 

 during the period of time required thereby. Nothing herein shall prevent
the Trustee from filing with the Commission the application referred to in the
penultimate paragraph of Section 310(b) of the Trust Indenture Act of 1939. In
determining whether the Trustee has a conflicting interest as defined in
Section 310(b) of the Trust Indenture Act of 1939 with respect to the
Securities of any series, there shall be excluded Securities of any particular
series of Securities other than that series.

ARTICLE 6

Concerning the Securityholders

     Section 6.01. Evidence of Action Taken by Securityholders. Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by a specified percentage in
principal amount of the Securityholders of any or all series may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such specified percentage of Securityholders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee. Proof of execution of any instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Sections 5.01 and 5.02) conclusive in favor of the Trustee and
the Issuer, if made in the manner provided in this Article.

     Section 6.02. Proof of Execution of Instruments and of Holding of
Securities; Record Date. Subject to Sections 5.01 and 5.02, the execution of
any instrument by a Securityholder or his agent or proxy may be proved in
accordance with such reasonable rules and regulations as may be prescribed by
the Trustee or in such manner as shall be satisfactory to the Trustee. The
holding of Securities shall be proved by the Security register or by a
certificate of the registrar thereof. The Issuer may set a record date for
purposes of determining the identity of holders of Securities of any series
entitled to vote or consent to any action referred to in Section 6.01, which
record date may be set at any time or from time to time by notice to the
Trustee, for any date or dates (in the case of any adjournment or
reconsideration) not more than 60 days nor less than five days prior to the
proposed date of such vote or consent, and thereafter, notwithstanding any
other provisions hereof, only holders of Securities of such series of record on
such record date shall be entitled to so vote or give such consent or revoke
such vote or consent.

     Section 6.03. Holders to be Treated as Owners. The Issuer, the Trustee
and any agent of the Issuer or the Trustee may deem and treat the person in
whose name any Security shall be registered upon the Security register for such
series as the absolute owner of such Security (whether or not such Security
shall be

40

 

 overdue and notwithstanding any notation of ownership or other writing
thereon) for the purpose of receiving payment of or on account of the principal
of and, subject to the provisions of this Indenture, interest on such Security
and for all other purposes; and neither the Issuer nor the Trustee nor any
agent of the Issuer or the Trustee shall be affected by any notice to the
contrary. All such payments so made to any such person, or upon his order,
shall be valid, and, to the extent of the sum or sums so paid, effectual to
satisfy and discharge the liability for moneys payable upon any such Security.

     Section 6.04. Securities Owned by Issuer Deemed Not Outstanding. In
determining whether the Holders of the requisite aggregate principal amount of
Outstanding Securities of any or all series have concurred in any direction,
consent or waiver under this Indenture, Securities which are owned by the
Issuer or any other obligor on the Securities with respect to which such
determination is being made or by any person directly or indirectly controlling
or controlled by or under direct or indirect common control with the Issuer or
any other obligor on the Securities with respect to which such determination is
being made shall be disregarded and deemed not to be Outstanding for the
purpose of any such determination, except that for the purpose of determining
whether the Trustee shall be protected in relying on any such direction,
consent or waiver only Securities which a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded. Securities held by any
depositary or other custodial arrangement established by or on behalf of the
Issuer shall be regarded as Outstanding if the beneficial interest therein is
not owned by the Issuer or any other obligor on such Securities or by any
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Issuer or any other obligor on such
Securities. Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Issuer or any other obligor upon the Securities or any
person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Issuer or any other obligor on the Securities.
In case of a dispute as to such right, the advice of counsel shall be full
protection in respect of any decision made by the Trustee in accordance with
such advice. Upon request of the Trustee, the Issuer shall furnish to the
Trustee promptly an Officer’s Certificate listing and identifying all
Securities, if any, known by the Issuer to be owned or held by or for the
account of any of the above-described persons; and, subject to Sections 5.01
and 5.02, the Trustee shall be entitled to accept such Officer’s Certificate as
conclusive evidence of the facts therein set forth and of the fact that all
Securities not listed therein are Outstanding for the purpose of any such
determination.

     Section 6.05. Right of Revocation of Action Taken. At any time prior to
(but not after) the evidencing to the Trustee, as provided in Section 6.01, of
the taking of any action by the Holders of the percentage in aggregate
principal

41

 

 amount of the Securities of any or all series, as the case may be,
specified in this Indenture in connection with such action, any Holder of a
Security the serial number of which is shown by the evidence to be included
among the serial numbers of the Securities the Holders of which have consented
to such action may, by filing written notice at the Corporate Trust Office and
upon proof of holding as provided in this Article, revoke such action so far as
concerns such Security. Except as aforesaid any such action taken by the
Holder of any Security shall be conclusive and binding upon such Holder and
upon all future Holders and owners of such Security and of any Securities
issued in exchange or substitution therefor or on registration of transfer
thereof, irrespective of whether or not any notation in regard thereto is made
upon any such Security. Any action taken by the Holders of the percentage in
aggregate principal amount of the Securities of any or all series, as the case
may be, specified in this Indenture in connection with such action shall be
conclusively binding upon the Issuer, the Trustee and the Holders of all the
Securities affected by such action.

     Section 6.06. Bearer Securities. Notwithstanding any other provision of
this Indenture, but subject to any applicable requirement of the Trust
Indenture Act of 1939, if the Securities of any series will be issuable as
Bearer Securities, the terms of such Securities with respect to voting,
consents, manner of payment and other matters may be established in or pursuant
to a Board Resolution or established in one or more indentures supplemental
hereto in a manner that supplements, modifies or replaces the provisions of
this Indenture if the Issuer determines that the provisions of the Indenture
are inappropriate or inconvenient because the Securities of such series are not
in registered form.

ARTICLE 7

Supplemental Indentures

     Section 7.01. Supplemental Indentures Without Consent of
Securityholders. The Issuer, when authorized by a resolution of its Board
(which resolution may provide general authorization for such action and may
provide that the specific terms of such action may be determined by officers of
the Issuer authorized thereby), and the Trustee may, from time to time, and at
any time enter into an indenture or indentures supplemental hereto for one or
more of the following purposes:

     (a)  to convey, transfer, assign, mortgage or pledge to the Trustee as
security for the Securities of one or more series any property or assets;

     (b)  to evidence the succession of another legal entity to the Issuer, or
successive successions, and the assumption by the successor legal entity of the
covenants, agreements and obligations of the Issuer pursuant to Article 8;

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     (c)  to add to the covenants of the Issuer such further covenants,
restrictions, conditions or provisions as the Issuer and the Trustee shall
consider to be for the protection of the Holders of Securities, and to make the
occurrence, or the occurrence and continuance, of a default in any such
additional covenants, restrictions, conditions or provisions an Event of
Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided, that in respect of
any such additional covenant, restriction, condition or provision such
supplemental indenture may provide for a particular period of grace after
default (which period may be shorter or longer than that allowed in the case of
other defaults) or may provide for an immediate enforcement upon such an Event
of Default or may limit the remedies available to the Trustee upon such an
Event of Default or may limit the right of the Holders of a majority in
aggregate principal amount of the Securities of such series to waive such an
Event of Default;

     (d)  to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture which may be defective or
inconsistent with any other provision contained herein or in any supplemental
indenture; or to make such other provisions in regard to matters or questions
arising under this Indenture or under any supplemental indenture as the Board
may deem necessary or desirable and which shall not adversely affect the
interests of the Holders of the Securities in any material respect;

     (e)  to establish the form or terms of Securities of any series as
permitted by Sections 2.01 and 2.03; and

     (f)  to evidence and provide for the acceptance of appointment hereunder by
a successor trustee with respect to the Securities of one or more series and to
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one trustee, pursuant to the requirements of Section 5.10.

     The Trustee is hereby authorized to join with the Issuer in the execution
of any such supplemental indenture, to make any further appropriate agreements
and stipulations which may be therein contained and to accept the conveyance,
transfer, assignment, mortgage or pledge of any property thereunder, but the
Trustee shall not be obligated to enter into any such supplemental indenture
which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

     Any supplemental indenture authorized by the provisions of this section
may be executed without the consent of the Holders of any of the Securities at
the time outstanding, notwithstanding any of the provisions of Section 7.02.

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     Section 7.02. Supplemental Indentures With Consent of Securityholders.
With the consent (evidenced as provided in Article 6) of the Holders of not
less than a majority in aggregate principal amount of the Securities at the
time Outstanding of all series affected by such supplemental indenture (voting
as one class), the Issuer, when authorized by a resolution of its Board (which
resolution may provide general authorization for such action and may provide
that the specific terms of such action may be determined by officers of the
Issuer authorized thereby), and the Trustee may, from time to time and at any
time, enter into an indenture or indentures supplemental hereto for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the Holders of the Securities of each such series;
provided, that no such supplemental indenture shall (a) (i) extend the final
maturity of any Security or of any installment of principal of any such
Security, (ii) reduce the principal amount thereof, (iii) reduce the rate or
extend the time of payment of interest thereon, (iv) reduce any amount payable
on redemption thereof, (v) make the principal thereof (including any amount in
respect of original issue discount), or interest thereon payable in any coin or
currency other than that provided in the Securities or in accordance with the
terms thereof, (vi) modify or amend any provisions for converting any currency
into any other currency as provided in the Securities or in accordance with the
terms of such Securities, (vii) change the Issuer’s obligations to pay
additional amounts established pursuant to Section 2.03(s) (if any), (viii)
reduce the amount of the principal of an Original Issue Discount Security that
would be due and payable upon an acceleration of the maturity of such Security
pursuant to Section 4.01 or the amount provable in bankruptcy pursuant to
Section 4.02, or impair or affect the right of any Securityholder to institute
suit for the payment thereof or, if the Securities provide therefor, impair or
affect any right of repayment at the option of the Securityholder, or (ix)
modify or amend any provisions relating to the conversion or exchange of the
Securities for securities of the Issuer of the Securities or of other entities
or other property (or the cash value thereof), including the determination of
the amount of securities or other property (or cash) into which the Securities
shall be converted or exchanged, other than as provided in the antidilution
provisions or other similar adjustment provisions of the Securities or
otherwise in accordance with the terms of such Securities, in each case without
the consent of the Holder of each Security so affected, or (b) reduce the
aforesaid percentage of Securities of any series, the consent of the Holders of
which is required for any such supplemental indenture, without the consent of
the Holders of each Security so affected.

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

44

 

 shall be deemed not to affect the rights under this Indenture of the
holders of Securities of any other series.

     Upon the request of the Issuer, accompanied by a copy of a resolution of
the Board (which resolution may provide general authorization for such action
and may provide that the specific terms of such action may be determined by
officers of the Issuer authorized thereby) certified by a Responsible Officer
of the Issuer authorizing the execution of any such supplemental indenture, and
upon the filing with the Trustee of evidence of the consent of Securityholders
as aforesaid and other documents, if any, required by Section 6.01, the Trustee
shall join with the Issuer in the execution of such supplemental indenture
unless such supplemental indenture affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such supplemental
indenture.

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

     Promptly after the execution by the Issuer and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall give notice thereof by (a) first class mail to the Holders of Securities
of each series affected thereby at their addresses as they shall appear on the
registry books of the Issuer or (b) by any other means set forth in such
supplemental indenture, setting forth in general terms the substance of such
supplemental indenture. Any failure of the Trustee to mail such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture.

     Section 7.03. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith and
the respective rights, limitations of rights, obligations, duties and
immunities under this Indenture of the Trustee, the Issuer and the Holders of
Securities of each series affected thereby shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

     Section 7.04. Documents to be Given to Trustee. The Trustee, subject to
the provisions of Sections 5.01 and 5.02, shall be entitled to receive an
Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant to this Article 7 complies with the
applicable provisions of this Indenture.

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     Section 7.05. Notation on Securities in Respect of Supplemental
Indentures. Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to the provisions of this
Article may bear a notation in form approved by the Trustee for such series as
to any matter provided for by such supplemental indenture or as to any action
taken by Securityholders. If the Issuer or the Trustee shall so determine, new
Securities of any series so modified as to conform, in the opinion of the
Trustee and the Board, to any modification of this Indenture contained in any
such supplemental indenture may be prepared by the Issuer, authenticated by the
Trustee and delivered in exchange for the Securities of such series then
Outstanding.

     Section 7.06. Conformity with the Trust Indenture Act of 1939. Every
supplemental indenture executed pursuant to this Article 7 shall conform to the
requirements of the Trust Indenture Act of 1939 as then in effect.

ARTICLE 8

Consolidation, Merger, Sale Or Conveyance

     Section 8.01. Issuer May Consolidate, etc., on Certain Terms. The
Issuer covenants that it will not merge or consolidate with or merge into, or
sell, assign, transfer, lease or convey all or substantially all of its
properties or assets, in one or more related transactions, to another Person,
other than consolidation, merger, sale, assignment, transfer, lease or
conveyance which results in the Issuer being the surviving party, unless:

     (a)  the entity formed by such consolidation or into which the Issuer is
merged or the Person which acquires by conveyance or transfer the properties
and assets of the Issuer substantially as an entirety shall be a joint stock
company (kabushiki kaisha) organized and existing under the laws of Japan and
shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee for each series of Securities, in form satisfactory to
each such Trustee, the due and punctual payment of the principal of and
interest, if any, on all Securities and the performance of every covenant of
this Indenture on the part of the Issuer to be performed or observed; and

     (b)  immediately after giving effect to such transaction, no Event of
Default shall have occurred and be continuing.

     The Issuer shall deliver to the Trustee before the consummation of the
proposed transaction an Officer’s Certificate to the foregoing effect and an
Opinion of Counsel to the effect that (i) such merger, sale, assignment,
transfer, lease, conveyance or other disposition and such supplemental
indenture, comply with this Indenture, (ii) the surviving Person has duly
executed and delivered the supplemental indenture and (iii) such supplemental
indenture constitutes a valid

46

 

 and binding agreement of such Person, enforceable against such Person in
accordance with its terms. The Trustee shall be entitled to rely conclusively
upon such Officer’s Certificate and Opinion of Counsel.

     Section 8.02. Successor Substituted. In case of any such consolidation,
merger, sale or conveyance, and following such an assumption by the successor
legal entity, such successor legal entity shall succeed to and be substituted
for the Issuer, with the same effect as if it had been named herein. Such
successor legal entity may cause to be signed, and may issue either in its own
name or in the name of the Issuer prior to such succession, any or all of the
Securities issuable hereunder which theretofore shall not have been signed by
the Issuer and delivered to the Trustee; and, upon the order of such successor
legal entity instead of the Issuer and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee shall authenticate and
shall deliver any Securities which previously shall have been signed and
delivered by the officers of the Issuer to the Trustee for authentication, and
any Securities which such successor legal entity thereafter shall cause to be
signed and delivered to the Trustee for that purpose. All of the Securities so
issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities theretofore or thereafter issued in accordance with
the terms of this Indenture as though all of such Securities had been issued at
the date of the execution hereof.

     In case of any such consolidation, merger, sale, lease or conveyance such
changes in phrasing and form (but not in substance) may be made in the
Securities thereafter to be issued as may be appropriate.

     In the event of any such sale or conveyance (other than a conveyance by
way of lease) the Issuer or any successor legal entity which shall theretofore
have become such in the manner described in this Article shall be discharged
from all obligations and covenants under this Indenture and the Securities and
may be liquidated and dissolved.

     Section 8.03. Opinion of Counsel to Trustee. The Trustee, subject to
the provisions of Sections 5.01 and 5.02, shall be entitled to receive an
Opinion of Counsel, prepared in accordance with Section 10.05, as conclusive
evidence that any such consolidation, merger, sale, lease or conveyance, and
any such assumption, and any such liquidation or dissolution, complies with the
applicable provisions of this Indenture.

ARTICLE 9

Satisfaction and Discharge of Indenture; Unclaimed Moneys

     Section 9.01. Satisfaction and Discharge of Indenture. (a) If at any
time (i) the Issuer shall have paid or caused to be paid the principal of and
interest on

47

 

 all the Securities of any series outstanding hereunder (other than
Securities of such series which have been destroyed, lost or stolen and which
have been replaced or paid as provided in Section 2.09) as and when the same
shall have become due and payable, or (ii) the Issuer shall have delivered to
the Trustee for cancellation all Securities of any series theretofore
authenticated (other than any Securities of such series which shall have been
destroyed, lost or stolen and which shall have been replaced or paid as
provided in Section 2.09) or (iii) (A) all the securities of any series not
theretofore delivered to the Trustee for cancellation shall have become due and
payable, or are by their terms to become due and payable within one year or are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and (B) the Issuer shall
have irrevocably deposited or caused to be irrevocably deposited with the
Trustee as trust funds the entire amount in cash (other than moneys repaid by
the Trustee or any paying agent to the Issuer in accordance with Section 9.03)
or, in the case of any series of Securities the payments on which may only be
made in United States dollars, direct obligations of the United States of
America, backed by its full faith and credit (“U.S. Government Obligations”),
maturing as to principal and interest at such times and in such amounts as will
insure the availability of cash, or a combination thereof, sufficient to pay at
maturity or upon redemption all Securities of such series (other than any
Securities of such series which shall have been destroyed, lost or stolen and
which shall have been replaced or paid as provided in Section 2.09) not
theretofore delivered to the Trustee for cancellation, including principal and
interest due or to become due on or prior to such date of maturity as the case
may be, and if, in any such case, the Issuer shall also pay or cause to be paid
all other sums payable hereunder by the Issuer with respect to Securities of
such series, then this Indenture shall cease to be of further effect with
respect to Securities of such series (except as to (i) rights of registration
of transfer (in the case of Registered Securities) and exchange of Securities
of such series, and the Issuer’s right of optional redemption, if any, (ii)
substitution of mutilated, defaced, destroyed, lost or stolen Securities, (iii)
rights of Holders of Securities of such series to receive payments of principal
thereof and interest thereon upon the original stated due dates therefor (but
not upon acceleration), and remaining rights of the Holders to receive
Mandatory Sinking Fund Payments, if any, (iv) the rights, obligations, duties
and immunities of the Trustee hereunder, (v) the rights of Holders of
Securities of such series to convert such Securities into or for securities of
the Issuer or of other entities or other property on the terms of such
Securities, if any, and (vi) the rights of the Holders of Securities of such
series as beneficiaries hereof with respect to the property so deposited with
the Trustee payable to all or any of them), and the Trustee, on demand of the
Issuer accompanied by an Officer’s Certificate and an Opinion of Counsel and at
the cost and expense of the Issuer, shall execute proper instruments
acknowledging such satisfaction of and discharging this Indenture with respect
to such series; provided, that the rights of Holders of the Securities to
receive amounts in respect of principal of and interest

48

 

 on the Securities held by them shall not be delayed longer than required
by then-applicable mandatory rules or policies of any securities exchange upon
which the Securities are listed. The Issuer agrees to reimburse the Trustee
for any costs or expenses thereafter reasonably and properly incurred and to
compensate the Trustee for any services thereafter reasonably and properly
rendered by the Trustee in connection with this Indenture or the Securities of
such series.

     (b)  The following provisions shall apply to the Securities of each series
unless specifically otherwise provided in a Board Resolution, Officer’s
Certificate or indenture supplemental hereto provided pursuant to Section 2.03.
In addition to discharge of the Indenture pursuant to subsection 9.01(a), in
the case of any series of Securities the exact amounts (including the currency
of payment) of principal of and interest due on which can be determined at the
time of making the deposit referred to in clause 9.01(b)(i) below, the Issuer
shall be deemed to have paid and discharged the entire indebtedness on all the
Securities of such series on the 91st day after the date of the deposit
referred to in clause 9.01(b)(i) below, and the provisions of this Indenture
with respect to the Securities of such series shall no longer be in effect
(except as to (1) rights of registration of transfer (in the case of Registered
Securities) and exchange of Securities of such series, and the Issuer’s right
of optional redemption, if any, (2) substitution of mutilated, defaced,
destroyed, lost or stolen Securities, (3) rights of Holders of Securities of
such series to receive payments of principal thereof and interest thereon upon
the original stated due dates therefor (but not upon acceleration), and
remaining rights of the Holders to receive Mandatory Sinking Fund Payments, if
any, (4) the rights, obligations, duties and immunities of the Trustee
hereunder, (5) the rights of the Holders of Securities of such series as
beneficiaries hereof with respect to the property so deposited with the Trustee
payable to all or any of them and (6) the obligations of the Issuer under
Section 3.02) and the Trustee, at the expense of the Issuer of the Securities,
shall at the Issuer’s request, execute proper instruments acknowledging the
same, if

		
	 	     (i) with reference to this provision the Issuer has irrevocably
deposited or caused to be irrevocably deposited with the Trustee as
trust funds in trust, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of the Securities of
such series (A) cash in an amount, or (B) in the case of any series of
Securities the payments on which may only be made in Dollars, U.S.
Government Obligations, maturing as to principal and interest at such
times and in such amounts as will insure the availability of cash or (C)
a combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay (1) the principal
and interest on all Securities of such series and coupons appertaining
thereto on each date that such principal or interest is due and payable
and (2) any Mandatory Sinking Fund Payments

49

 

		
	 	on the dates on which such payments are due and payable in
accordance with the terms of the Indenture and the Securities of such
series;

		
	 	     (ii) such deposit will not result in a breach or violation of, or
constitute a default under, any agreement or instrument to which the
Issuer is a party or by which it is bound;

		
	 	     (iii) the Issuer has delivered to the Trustee an Opinion of Counsel
based on the fact that (x) the Issuer has received from, or there has
been published by, the Internal Revenue Service a ruling or (y) since
the date hereof, there has been a change in the applicable income tax
law, in either case to the effect that, and such opinion shall confirm
that, the Holders of the Securities of such series and coupons
appertaining thereto will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit, defeasance and
discharge and will be subject to Federal income tax on the same amount
and in the same manner and at the same times, as would have been the
case if such deposit, defeasance and discharge had not occurred; and

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

     (c)  The Issuer of the Securities shall be released from its obligations
under Article 3 and Section 8.01 with respect to the Securities of any Series
Outstanding on and after the date the conditions set forth below are satisfied
(hereinafter, “Covenant Defeasance”). For this purpose, such Covenant
Defeasance means that, with respect to the Outstanding Securities of any
Series, and under a guarantee in respect thereof, the Issuer of the Securities
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in such Sections, whether directly or
indirectly by reason of any reference elsewhere herein to such Sections or by
reason of any reference in such Sections to any other provision herein or in
any other document and such omission to comply shall not constitute an Event of
Default under Section 4.01, but the remainder of this Indenture and such
Securities and coupons and any guarantee shall be unaffected thereby. The
following shall be the conditions to application of this subsection (c) of this
Section 9.01:

		
	 	     (i) The Issuer has irrevocably deposited or caused to be deposited
with the Trustee as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the holders of the Securities of such series,
(A) cash in an amount, or (B) in the case of any series of Securities
the payments on which may only be made in Dollars, U.S. Government

50

 

		
	 	Obligations maturing as to principal and interest at such times and
in such amounts as will insure the availability of cash or (C) a
combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay (1) the principal
and interest on all Securities of such series and coupons appertaining
thereto and (2) any Mandatory Sinking Fund Payments on the day on which
such payments are due and payable in accordance with the terms of the
Indenture and the Securities of such series.

		
	 	     (ii) No Event of Default or event which with notice or lapse of
time or both would become an Event of Default with respect to the
Securities shall have occurred and be continuing on the date of such
deposit or, insofar as subsections 4.01(c) and 4.01(d) are concerned, at
any time during the period ending on the 91st day after the date of such
deposit (it being understood that this condition shall not be deemed
satisfied until the expiration of such period).

		
	 	     (iii) Such Covenant Defeasance shall not cause the Trustee to have
a conflicting interest for purposes of the Trust Indenture Act of 1939
with respect to any securities of the Issuer.

		
	 	     (iv) Such Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under, this Indenture or any other
agreement or instrument to which the Issuer is a party or by which
either of them is bound.

		
	 	     (v) Such Covenant Defeasance shall not cause any Securities then
listed on any registered national securities exchange under the
Securities Exchange Act of 1934, as amended, to be delisted.

		
	 	     (vi) The Issuer shall have delivered to the Trustee an Officer’s
Certificate and Opinion of Counsel to the effect that the Holders of the
Securities of such series will not recognize income, gain or loss for
Japanese or United States federal income tax purposes as a result of
such Covenant Defeasance and will be subject to Japanese or United
States 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.

		
	 	     (vii) The Issuer shall have delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the Covenant Defeasance contemplated
by this provision have been complied with.

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     Section 9.02. Application by Trustee of Funds Deposited for Payment of
Securities. Subject to Section 9.03 and any subordination provisions
applicable to the Securities, all moneys deposited with the Trustee pursuant to
Section 9.01 shall be held in trust and applied by it to the payment, either
directly or through any paying agent (including the Issuer acting as its own
paying agent), to the Holders of the particular Securities of such series for
the payment or redemption of which such moneys have been deposited with the
Trustee of all sums due and to become due thereon for principal and interest;
but such money need not be segregated from other funds except to the extent
required by law.

     Section 9.03. Repayment of Moneys Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to
Securities of any series, all moneys then held by any paying agent under the
provisions of this Indenture with respect to such series of Securities shall,
upon demand of the Issuer, be repaid to it or paid to the Trustee and thereupon
such paying agent shall be released from all further liability with respect to
such moneys.

     Section 9.04. Return of Moneys Held by Trustee and Paying Agent
Unclaimed for Two Years. Any moneys deposited with or paid to the Trustee or
any paying agent for the payment of the principal of or interest on any
Security of any series and not applied but remaining unclaimed for two years
after the date upon which such principal or interest shall have become due and
payable, shall, upon the written request of the Issuer and unless otherwise
required by mandatory provisions of applicable escheat or abandoned or
unclaimed property law, be repaid to the Issuer by the Trustee for such series
or such paying agent, and the Holder of the Security of such series shall,
unless otherwise required by mandatory provisions of applicable escheat or
abandoned or unclaimed property laws, thereafter look only to the Issuer for
any payment which such Holder may be entitled to collect, and all liability of
the Trustee or any paying agent with respect to such moneys shall thereupon
cease.

ARTICLE 10

Miscellaneous Provisions

     Section 10.01. Incorporators, Stockholders, Officers and Directors of
Issuer Exempt from Individual Liability. No recourse under or upon any
obligation, covenant or agreement contained in this Indenture, or in any
Security, or because of any indebtedness evidenced thereby, shall be had
against any incorporator, as such, or against any past, present or future
stockholder, member, officer or director, as such, of the Issuer or of any
successor, either directly or through the Issuer or any successor, under any
rule of law, statute or constitutional provision or by the enforcement of any
assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and

52

 

 released by the acceptance of the Securities by the holders thereof and as
part of the consideration for the issue of the Securities.

     Section 10.02. Provisions of Indenture for the Sole Benefit of Parties
and Securityholders. Nothing in this Indenture or in the Securities, expressed
or implied, shall give or be construed to give to any Person other than the
parties hereto and their successors and the Holders of the Securities, any
legal or equitable right, remedy or claim under this Indenture or under any
covenant or provision herein contained, all such covenants and provisions being
for the sole benefit of the parties hereto and their successors and of the
Holders of the Securities.

     Section 10.03. Successors and Assigns of Issuer Bound by Indenture. All
the covenants, stipulations, promises and agreements in this Indenture
contained by or on behalf of the Issuer shall bind its successors and assigns,
whether so expressed or not.

     Section 10.04. Notices and Demands on Issuer, Trustee and
Securityholders. Any notice or demand which by any provision of this Indenture
is required or permitted to be given or served by the Trustee or by the Holders
of Securities to or on the Issuer may be given or served by being deposited
postage prepaid, first-class or similar class mail (except as otherwise
specifically provided herein) addressed (until another address of the Issuer is
filed by the Issuer with the Trustee) to ORIX Corporation at the following
address:

     ORIX Corporation

     22-8, Shiba 3-chome

     Minato-ku

     Tokyo 105-8683

     Attention: Capital Markets, Treasury Department

     Fax: +813 5419 5905

     Any notice, direction, request or demand by the Issuer or any
Securityholder to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made to its Corporate Trust Office
at:

     [________________]

     Where this Indenture provides for notice to Holders of Registered
Securities, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder entitled thereto, at his last address as it appears in the Security
register. Where this Indenture provides for notice to Holders of Bearer
Securities, such notice shall be given in the manner provided in a supplemental
indenture hereto or Board Resolution under which such Securities are issued.
In any case where

53

 

 notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders. Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

     In case, by reason of the suspension of or irregularities in regular mail
service, it shall be impracticable to mail notice to the Issuer and Holders of
Registered Securities when such notice is required to be given pursuant to any
provision of this Indenture, then any manner of giving such notice as shall be
reasonably satisfactory to the Trustee shall be deemed to be a sufficient
giving of such notice.

     Section 10.05. Officer’s Certificates and Opinions of Counsel;
Statements to be Contained Therein. Upon any application or demand by the
Issuer to the Trustee to take any action under any of the provisions of this
Indenture, the Issuer shall furnish to the Trustee an Officer’s Certificate
stating that all conditions precedent provided for in this Indenture relating
to the proposed action have been complied with and an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent have
been complied with, except that in the case of any such application or demand
as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or demand,
no additional certificate or opinion need be furnished.

     Each certificate or opinion provided for in this Indenture and delivered
to the Trustee with respect to compliance with a condition or covenant provided
for in this Indenture shall include (a) a statement that the person making such
certificate or opinion has read such covenant or condition, (b) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based, (c) a statement that, in the opinion of such person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with and (d) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

     Any certificate, statement or opinion of an officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of
or representations by counsel, unless such officer knows that the certificate
or opinion or representations with respect to the matters upon which his
certificate, statement or opinion may be based as aforesaid are erroneous, or
in the exercise

54

 

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

     Any certificate, statement or opinion of an officer of the Issuer or of
counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Issuer, unless such officer or counsel, as the
case may be, knows that the certificate or opinion or representations with
respect to the accounting matters upon which his certificate, statement or
opinion may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous.

     Section 10.06. Payments Due on Saturdays, Sundays and Holidays. If the
date of maturity of interest on or principal of the Securities of any series or
the date fixed for redemption or repayment of any such Security shall not be a
Business Day, then payment of interest or principal need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on the date of maturity or the date fixed for redemption,
and no interest shall accrue for the period after such date.

     Section 10.07. Conflict of any Provision of Indenture with Trust
Indenture Act of 1939. If and to the extent that any provision of this
Indenture limits, qualifies or conflicts with another provision included in
this Indenture by operation of Sections 310 to 317, inclusive, of the Trust
Indenture Act of 1939 (an “Incorporated Provision”), such Incorporated
Provision shall control.

     Section 10.08. New York Law to Govern. This Indenture and each Security
shall be deemed to be a contract under the laws of the State of New York, and
for all purposes shall be construed in accordance with the laws of such State,
except as may otherwise be required by mandatory provisions of law.

     Section 10.09. Counterparts. This Indenture may be executed in any
number of counterparts, each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.

     Section 10.10. Effect of Headings. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

55

 

     Section 10.11. Submission To Jurisdiction. To the fullest extent
permitted by applicable law, the Issuer irrevocably submits the non-exclusive
jurisdiction of any Federal or state court in the Borough of Manhattan in The
City of New York, Country and State of New York, United States of America, in
any suit or proceeding based on or arising under this Indenture and the
Securities, and irrevocably agrees that all claims in respect of such suit or
proceeding may be determined in any such court. The Issuer, to the fullest
extent permitted by applicable law, irrevocably and fully waives the defense of
an inconvenient forum to the maintenance of such suit or proceeding and hereby
irrevocably designates and appoints ORIX USA Corporation, 1177 Avenue of the
Americas, New York, New York 10036 (Attn: General Counsel) (the “Authorized
Agent”), as its authorized agent upon whom process may be served in any such
suit or proceeding. The Issuer represents that it has notified the Authorized
Agent of such designation and appointment and that the Authorized Agent has
accepted the same in writing. The Issuer hereby irrevocably authorizes and
directs its Authorized Agent to accept such service. The Issuer further agrees
that service of process upon its Authorized Agent and written notice of said
service to it mailed by first class mail or delivered to the Issuer shall be
deemed in every respect effective service of process upon it in any such suit
or proceeding. Nothing herein shall affect the right of any person to serve
process in any other manner permitted by law. The Issuer agrees that a final
action in any such suit or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other lawful manner.

     The Issuer hereby irrevocably waives, to the extent permitted by law, any
immunity to jurisdiction to which it may otherwise be entitled (including,
without limitation, immunity to pre-judgment attachment, post-judgment
attachment and execution) in any legal suit, action or proceeding against it
arising out of or based on this Indenture, the Securities or the transactions
contemplated hereby.

     The provisions of this Section 10.11 are intended to be effective upon the
execution of this Indenture without any further action by the Issuer or the
Trustee and the introduction of a true copy of this Indenture into evidence
shall be conclusive and final evidence as to such matters.

     Section 10.12. Non-Business Day. In any case where the date of payment
of interest, redemption or stated maturity of a Security established in
accordance with Section 2.03 shall not be a Business Day at any Place of
Payment with respect to Securities of that series, then (notwithstanding any
other provision of this Indenture or of the Securities) payment of principal of
and interest, if any, with respect to such Security need not be made at such
Place of Payment on such date, but may be made on the next succeeding Business
Day at such Place of Payment with the same force and effect as if made on the
date of payment of interest, redemption or stated maturity of a Security
established in accordance with Section 2.03, provided that no interest shall
accrue for the period from and

56

 

 after such date of payment of interest, redemption or stated maturity of a
Security, as the case may be.

     Section 10.13. Waiver of Jury Trial. EACH OF THE ISSUER AND THE TRUSTEE
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

ARTICLE 11

Redemption Of Securities And Sinking Funds

     Section 11.01. Applicability of Article. The provisions of this Article
shall be applicable to the Securities of any series which are redeemable before
their maturity or to any sinking fund for the retirement of Securities of a
series except as otherwise specified as contemplated by Section 2.03 for
Securities of such series.

     Section 11.02. Notice of Redemption; Partial Redemptions. Notice of
redemption to the Holders of Securities of any series to be redeemed as a whole
or in part at the option of the Issuer shall be given by mailing notice of such
redemption by first class mail, postage prepaid, at least 30 days and not more
than 60 days prior to the date fixed for redemption to such Holders of
Securities of such series at their last addresses as they shall appear upon the
registry books. Any notice which is mailed in the manner herein provided shall
be conclusively presumed to have been duly given, whether or not the Holder
receives the notice. Failure to give notice by mail, or any defect in the
notice to the Holder of any Security of a series designated for redemption as a
whole or in part shall not affect the validity of the proceedings for the
redemption of any other Security of such series.

     The notice of redemption to each such Holder shall specify the principal
amount and CUSIP or ISIN number (if any) of each Security of such series held
by such Holder to be redeemed, the date fixed for redemption, the redemption
price, the place or places of payment, that payment will be made upon
presentation and surrender of such Securities, that such redemption is pursuant
to the mandatory or optional sinking fund, or both, if such be the case, that
interest accrued to the date fixed for redemption will be paid as specified in
such notice and that on and after said date interest thereon or on the portions
thereof to be redeemed will cease to accrue. In case any Security of a series
is to be redeemed in part only the notice of redemption shall state the portion
of the principal amount thereof to be redeemed and shall state that on and
after the date fixed for

57

 

 redemption, upon surrender of such Security, a new Security or Securities
of such series in principal amount equal to the unredeemed portion thereof will
be issued.

     The notice of redemption of Securities of any series to be redeemed at the
option of the Issuer shall be given by the Issuer or, at the Issuer’s request,
by the Trustee in the name and at the expense of the Issuer.

     On or before the redemption date specified in the notice of redemption
given as provided in this Section, the Issuer will deposit with the Trustee or
with one or more paying agents (or, if the Issuer is acting as its own paying
agent, set aside, segregate and hold in trust as provided in Section 3.04) an
amount of money or other property sufficient to redeem on the redemption date
all the Securities of such series so called for redemption at the appropriate
redemption price, together with accrued interest to the date fixed for
redemption. If less than all the outstanding Securities of a series are to be
redeemed, the Issuer will deliver to the Trustee at least 70 days prior to the
date fixed for redemption an Officer’s Certificate stating the aggregate
principal amount of Securities to be redeemed.

     If less than all the Securities of a series are to be redeemed, the
Trustee shall select, in such manner as it shall deem appropriate and fair,
Securities of such Series to be redeemed in whole or in part. Securities may
be redeemed in part in multiples equal to the minimum authorized denomination
for Securities of such series or any multiple thereof. The Trustee shall
promptly notify the Issuer in writing of the Securities of such series selected
for redemption and, in the case of any Securities of such series selected for
partial redemption, the principal amount thereof to be redeemed. For all
purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities of any series shall relate,
in the case of any Security redeemed or to be redeemed only in part, to the
portion of the principal amount of such Security which has been or is to be
redeemed.

     Section 11.03. Payment of Securities Called for Redemption. If notice
of redemption has been given as above provided, the Securities or portions of
Securities specified in such notice shall become due and payable on the date
and at the place stated in such notice at the applicable redemption price,
together with interest accrued to the date fixed for redemption, and on and
after said date (unless the Issuer shall default in the payment of such
Securities at the redemption price, together with interest accrued to said
date) interest on the Securities or portions of Securities so called for
redemption shall cease to accrue and, except as provided in Sections 5.05 and
9.03, such Securities shall cease from and after the date fixed for redemption
to be entitled to any benefit or security under this Indenture, and the Holders
thereof shall have no right in respect of such Securities except the right to
receive the redemption price thereof and unpaid interest to the date fixed for
redemption. On presentation and surrender of such Securities at a place of
payment specified in said notice, said Securities or the specified portions

58

 

 thereof shall be paid and redeemed by the Issuer at the applicable
redemption price, together with interest accrued thereon to the date fixed for
redemption; provided that any semiannual payment of interest becoming due on
the date fixed for redemption shall be payable to the Holders of such
Securities registered as such on the relevant record date subject to the terms
and provisions of Sections 2.03 and 2.04 hereof.

     If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal shall, until paid or duly provided for,
bear interest from the date fixed for redemption at the rate of interest or
Yield to Maturity (in the case of an Original Issue Discount Security) borne by
such Security.

     Upon presentation of any Security redeemed in part only, the Issuer shall
execute and the Trustee shall authenticate and deliver to or on the order of
the Holder thereof, at the expense of the Issuer, a new Security or Securities
of such series, of authorized denominations, in principal amount equal to the
unredeemed portion of the Security so presented.

     Section 11.04. Exclusion of Certain Securities from Eligibility for
Selection for Redemption. Securities shall be excluded from eligibility for
selection for redemption if they are identified by registration and certificate
number in a written statement signed by an authorized officer of the Issuer and
delivered to the Trustee at least 40 days prior to the last date on which
notice of redemption may be given as being owned of record and beneficially by,
and not pledged or hypothecated by either (a) the Issuer or (b) an entity
specifically identified in such written statement as directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Issuer.

     Section 11.05. Mandatory and Optional Sinking Funds. The minimum amount
of any sinking fund payment provided for by the terms of the Securities of any
series is herein referred to as a “Mandatory Sinking Fund Payment”, and any
payment in excess of such minimum amount provided for by the terms of
Securities of any series is herein referred to as an “Optional Sinking Fund
Payment”. The date on which a sinking fund payment is to be made is herein
referred to as the “Sinking Fund Payment Date”.

     In lieu of making all or any part of any Mandatory Sinking Fund Payment
with respect to any series of Securities in cash, the Issuer may at its option
(a) deliver to the Trustee Securities of such series theretofore purchased or
otherwise acquired (except upon redemption pursuant to the mandatory sinking
fund) by the Issuer or receive credit for Securities of such series (not
previously so credited) theretofore purchased or otherwise acquired (except as
aforesaid) by the Issuer and delivered to the Trustee for cancellation pursuant
to Section 2.07, (b) receive credit for Optional Sinking Fund Payments (not
previously so credited) made

59

 

 pursuant to this Section, or (c) receive credit for Securities of such
series (not previously so credited) redeemed by the Issuer through any optional
redemption provision contained in the terms of such series. Securities so
delivered or credited shall be received or credited by the Trustee at the
sinking fund redemption price specified in such Securities.

     On or before the sixtieth day next preceding each Sinking Fund Payment
Date for any series, the Issuer will deliver to the Trustee a written statement
(which need not contain the statements required by Section 10.05) signed by an
authorized officer of the Issuer (a) specifying the portion of the Mandatory
Sinking Fund Payment to be satisfied by payment of cash and the portion to be
satisfied by credit of Securities of such series, (b) stating that none of the
Securities of such series has theretofore been so credited, (c) stating that no
defaults in the payment of interest or Events of Default with respect to such
series have occurred (which have not been waived or cured) and are continuing
and (d) stating whether or not the Issuer intends to exercise its right to make
an Optional Sinking Fund Payment with respect to such series and, if so,
specifying the amount of such Optional Sinking Fund Payment which the Issuer
intends to pay on or before the next succeeding Sinking Fund Payment Date. Any
Securities of such series to be credited and required to be delivered to the
Trustee in order for the Issuer to be entitled to credit therefor as aforesaid
which have not theretofore been delivered to the Trustee shall be delivered for
cancellation pursuant to Section 2.10 to the Trustee with such written
statement (or reasonably promptly thereafter if acceptable to the Trustee).
Such written statement shall be irrevocable and upon its receipt by the Trustee
the Issuer shall become unconditionally obligated to make all the cash payments
or payments therein referred to, if any, on or before the next succeeding
Sinking Fund Payment Date. Failure of the Issuer, on or before any such
sixtieth day, to deliver such written statement and Securities specified in
this paragraph, if any, shall not constitute a default but shall constitute, on
and as of such date, the irrevocable election of the Issuer (i) that the
Mandatory Sinking Fund Payment for such series due on the next succeeding
Sinking Fund Payment Date shall be paid entirely in cash without the option to
deliver or credit Securities of such series in respect thereof and (ii) that
the Issuer will make no Optional Sinking Fund Payment with respect to such
series as provided in this Section.

     If the sinking fund payment or payments (mandatory or optional or both) to
be made in cash on the next succeeding Sinking Fund Payment Date plus any
unused balance of any preceding sinking fund payments made in cash shall exceed
$50,000 (or a lesser sum if the Issuer shall so request) with respect to the
Securities of any particular series, such cash shall be applied on the next
succeeding Sinking Fund Payment Date to the redemption of Securities of such
series at the sinking fund redemption price together with accrued interest to
the date fixed for redemption. If such amount shall be $50,000 or less and the
Issuer makes no such request then it shall be carried over until a sum in
excess of

60

 

 $50,000 is available. The Trustee shall select, in the manner provided in
Section 11.02, for redemption on such Sinking Fund Payment Date a sufficient
principal amount of Securities of such series to absorb said cash, as nearly as
may be, and shall (if requested in writing by the Issuer) inform the Issuer of
the serial numbers of the Securities of such series (or portions thereof) so
selected. Securities of any series which are (a) owned by the Issuer or an
entity known by the Trustee to be directly or indirectly controlling or
controlled by or under direct or indirect common control with the Issuer, as
shown by the Security register, and not known to the Trustee to have been
pledged or hypothecated by the Issuer or any such entity or (b) identified in
an Officer’s Certificate at least 60 days prior to the Sinking Fund Payment
Date as being beneficially owned by, and not pledged or hypothecated by, the
Issuer or an entity directly or indirectly controlling or controlled by or
under direct or indirect common control with the Issuer shall be excluded from
Securities of such series eligible for selection for redemption. The Trustee,
in the name and at the expense of the Issuer (or the Issuer, if it shall so
request the Trustee in writing) shall cause notice of redemption of the
Securities of such series to be given in substantially the manner provided in
Section 11.02 (and with the effect provided in Section 11.03) for the
redemption of Securities of such series in part at the option of the Issuer.
The amount of any sinking fund payments not so applied or allocated to the
redemption of Securities of such series shall be added to the next cash sinking
fund payment for such series and, together with such payment, shall be applied
in accordance with the provisions of this Section. Any and all sinking fund
moneys held on the stated maturity date of the Securities of any particular
series (or earlier, if such maturity is accelerated), which are not held for
the payment or redemption of particular Securities of such series shall be
applied, together with other moneys, if necessary, sufficient for the purpose,
to the payment of the principal of, and interest on, the Securities of such
series at maturity.

     On or before each Sinking Fund Payment Date, the Issuer shall pay to the
Trustee in cash or shall otherwise provide for the payment of all interest
accrued to the date fixed for redemption on Securities to be redeemed on the
next following Sinking Fund Payment Date.

     The Trustee shall not redeem or cause to be redeemed any Securities of a
series with sinking fund moneys or give any notice of redemption of Securities
for such series by operation of the sinking fund during the continuance of a
default in payment of interest on such Securities or of any Event of Default
except that, where the mailing of notice of redemption of any Securities shall
theretofore have been made, the Trustee shall redeem or cause to be redeemed
such Securities, provided that it shall have received from the Issuer a sum
sufficient for such redemption. Except as aforesaid, any moneys in the sinking
fund for such series at the time when any such default or Event of Default
shall occur, and any moneys thereafter paid into the sinking fund, shall,
during the continuance of such default or Event of Default, be deemed to have
been collected under Article 4 and

61

 

 held for the payment of all such Securities. In case such Event of
Default shall have been waived as provided in Section 4.09 or the default cured
on or before the sixtieth day preceding the Sinking Fund Payment Date in any
year, such moneys shall thereafter be applied on the next succeeding Sinking
Fund Payment Date in accordance with this Section to the redemption of such
Securities.

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     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed as of ______________, _______________.

	 	 	 	 	 
	 	 	ORIX CORPORATION
	 	 	 	 	 
	 	 	
By:	 	___________________________________________
	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 
	 	 	[_______],

as Trustee
	 	 	 	 	 
	 	 	
By:	 	___________________________________________
	 	 	 	 	Name:
	 	 	 	 	Title:

63

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