Document:

kl03021_ex4-1.htm

 

Exhibit 4.1

 

 

 

 

 

 

 

 

 

GENCO SHIPPING & TRADING LIMITED

 

________________

INDENTURE

DATED AS OF [                  ], 201_

________________

[                                                      ],

as Trustee

________________

 

 

 

  

  

  

 

CROSS-REFERENCE TABLE*

 

	
Trust Indenture

Act Section

	  	
Indenture Section

	  	  	  
	
310(a)(1)

	  	
7.10

	 	 	 
	
(a)(2)

	  	
7.10

	 	 	 
	
(a)(3)

	  	
N.A.

	 	 	 
	
(a)(4)

	  	
N.A.

	 	 	 
	
(a)(5)

	  	
7.10

	 	 	 
	
(b)

	  	
7.10

	 	 	 
	
(c)

	  	
N.A.

	 	 	 
	
311(a)

	  	
7.11

	 	 	 
	
(b)

	  	
7.11

	 	 	 
	
(c)

	  	
N.A.

	 	 	 
	
312(a)

	  	
2.06

	 	 	 
	
(b)

	  	
11.03

	 	 	 
	
(c)

	  	
11.03

	 	 	 
	
313(a)

	  	
7.06

	 	 	 
	
(b)(2)

	  	
7.06; 7.07

	 	 	 
	
(c)

	  	
7.06; 11.02

	 	 	 
	
(d)

	  	
7.06

	 	 	 
	
314(a)

	  	
4.03; 11.02

	 	 	 
	
(b)

	  	
N.A.

	 	 	 
	
(c)(1)

	  	
11.04

	 	 	 
	
(c)(2)

	  	
11.04

	 	 	 
	
(c)(3)

	  	
N.A.

 

 

 

  

  

  

 

	
Trust Indenture

Act Section

	  	
Indenture Section

	 

	
(d)

	  	
N.A.

	 	 	 
	
(e)

	  	
11.05

	 	 	 
	
(f)

	  	
N.A.

	 	 	 
	
315(a)

	  	
7.01

	 	 	 
	
(b)

	  	
7.05; 11.02

	 	 	 
	
(c)

	  	
7.01

	 	 	 
	
(d)

	  	
7.01

	 	 	 
	
(e)

	  	
6.11

	 	 	 
	
316(a) (last sentence)

	  	
2.10

	 	 	 
	
(a)(1)(A)

	  	
6.05

	 	 	 
	
(a)(1)(B)

	  	
6.04

	 	 	 
	
(a)(2)

	  	
N.A.

	 	 	 
	
(b)

	  	
6.07

	 	 	 
	
(c)

	  	
2.13

	 	 	 
	
317(a)(1)

	  	
6.08

	 	 	 
	
(a)(2)

	  	
6.09

	 	 	 
	
(b)

	  	
2.05

	 	 	 
	
318(a)

	  	
11.01

	 	 	 
	
(b)

	  	
N.A.

	 	 	 
	
(c)

	  	
11.01

 

N.A. means not applicable.

	
*

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

  

  

  

 

TABLE OF CONTENTS

Page

 

	

ARTICLE 1. DEFINITIONS AND INCORPORATION BY REFERENCE

	
  1

	
  

	
Section 1.01

	
Definitions.

	
1

	
  

	
Section 1.02

	
Other Definitions

	
6

	
  

	
Section 1.03

	
Incorporation by Reference of Trust Indenture Act

	
6

	
  

	
Section 1.04

	
Rules of Construction.

	
7

 

	

ARTICLE 2. THE NOTES

	
7

	
  

	
Section 2.01

	
Issuable in Series.

	
7

	
  

	
Section 2.02

	
Establishment of Terms of Series of Notes.

	
8

	
  

	
Section 2.03

	
Execution and Authentication.

	
10

	
  

	
Section 2.04

	
Registrar and Paying Agent.

	
10

	
  

	
Section 2.05

	
Paying Agent to Hold Money in Trust.

	
11

	
  

	
Section 2.06

	
Holder Lists.

	
11

	
  

	
Section 2.07

	
Transfer and Exchange.

	
11

	
  

	
Section 2.08

	
Replacement Notes.

	
12

	
  

	
Section 2.09

	
Outstanding Notes.

	
12

	
  

	
Section 2.10

	
Treasury Notes.

	
12

	
  

	
Section 2.11

	
Temporary Notes.

	
13

	
  

	
Section 2.12

	
Cancellation.

	
13

	
  

	
Section 2.13

	
Defaulted Interest.

	
13

	
  

	
Section 2.14

	
Global Notes.

	
13

	
  

	
Section 2.15

	
CUSIP Number.

	
15

 

	

ARTICLE 3. REDEMPTION AND PREPAYMENT

	
15

	
  

	
Section 3.01

	
Notice to Trustee.

	
15

	
  

	
Section 3.02

	
Selection of Notes to Be Redeemed.

	
16

	
  

	
Section 3.03

	
Notice of Redemption.

	
16

	
  

	
Section 3.04

	
Effect of Notice of Redemption.

	
17

	
  

	
Section 3.05

	
Deposit of Redemption Price.

	
17

	
  

	
Section 3.06

	
Notes Redeemed in Part.

	
17

 

	

ARTICLE 4. COVENANTS

	
18

	
  

	
Section 4.01

	
Payment of Principal and Interest.

	
18

	
  

	
Section 4.02

	
Maintenance of Office or Agency.

	
18

	
  

	
Section 4.03

	
Reports.

	
18

	
  

	
Section 4.04

	
Compliance Certificate.

	
19

	
  

	
Section 4.05

	
Taxes.

	
19

	
  

	
Section 4.06

	
Stay, Extension and Usury Laws.

	
20

	
  

	
Section 4.07

	
Corporate Existence.

	
20

 

	

ARTICLE 5. SUCCESSORS

	
20

	
  

	
Section 5.01

	
Merger, Consolidation or Sale of Assets.

	
20

	
  

	
Section 5.02

	
Successor Person Substituted.

	
21

 

i

 

 

  

  

  

 

 

	

ARTICLE 6. DEFAULTS AND REMEDIES

	
21

	
  

	
Section 6.01

	
Events of Default.

	
21

	
  

	
Section 6.02

	
Acceleration.

	
22

	
  

	
Section 6.03

	
Other Remedies.

	
23

	
  

	
Section 6.04

	
Waiver of Past Defaults.

	
23

	
  

	
Section 6.05

	
Control by Majority.

	
24

	
  

	
Section 6.06

	
Limitation on Suits.

	
24

	
  

	
Section 6.07

	
Rights of Holders of Notes to Receive Payment.

	
24

	
  

	
Section 6.08

	
Collection Suit by Trustee.

	
24

	
  

	
Section 6.09

	
Trustee May File Proofs of Claim.

	
25

	
  

	
Section 6.10

	
Priorities.

	
25

	
  

	
Section 6.11

	
Undertaking for Costs.

	
26

 

	

ARTICLE 7. TRUSTEE

	
26

	
  

	
Section 7.01

	
Duties of Trustee.

	
26

	
  

	
Section 7.02

	
Rights of Trustee.

	
27

	
  

	
Section 7.03

	
Individual Rights of Trustee.

	
28

	
  

	
Section 7.04

	
Trustee’s Disclaimer.

	
29

	
  

	
Section 7.05

	
Notice of Defaults.

	
29

	
  

	
Section 7.06

	
Reports by Trustee to Holders of the Notes.

	
29

	
  

	
Section 7.07

	
Compensation and Indemnity.

	
29

	
  

	
Section 7.08

	
Replacement of Trustee.

	
31

	
  

	
Section 7.09

	
Successor Trustee by Merger, Etc.

	
32

	
  

	
Section 7.10

	
Eligibility; Disqualification.

	
32

	
  

	
Section 7.11

	
Preferential Collection of Claims Against Company.

	
32

	
  

	
Section 7.12

	
Trustee’s Application for Instructions from the Company.

	
32

 

	

ARTICLE 8. LEGAL DEFEASANCE AND COVENANT DEFEASANCE

	
 33

	
  

	
Section 8.01

	
Option to Effect Legal Defeasance or Covenant Defeasance.

	
33

	
  

	
Section 8.02

	
Legal Defeasance and Discharge.

	
 33

	
  

	
Section 8.03

	
Covenant Defeasance.

	
33

	
  

	
Section 8.04

	
Conditions to Legal or Covenant Defeasance.

	
34

	
  

	
Section 8.05

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

	
35

	
  

	
Section 8.06

	
Repayment to Company.

	
35

	
  

	
Section 8.07

	
Reinstatement.

	
36

 

	

ARTICLE 9. AMENDMENT, SUPPLEMENT AND WAIVER

	
36

	
  

	
Section 9.01

	
Without Consent of Holders of Notes.

	
36

	
  

	
Section 9.02

	
With Consent of Holders of Notes.

	
37

	
  

	
Section 9.03

	
Compliance with Trust Indenture Act.

	
38

	
  

	
Section 9.04

	
Revocation and Effect of Consents.

	
38

	
  

	
Section 9.05

	
Notation on or Exchange of Notes.

	
38

	
  

	
Section 9.06

	
Trustee Protected.

	
39

	
  

	
Section 9.07

	
Notice of Supplemental Indenture.

	
39

 

 

ii

 

  

  

  

 

 

	

ARTICLE 10. SATISFACTION AND DISCHARGE

	
 39

	
  

	
Section 10.01

	
Satisfaction and Discharge.

	
39

	
  

	
Section 10.02

	
Application of Trust Money.

	
40

 

	

ARTICLE 11. MISCELLANEOUS

	
40

	
  

	
Section 11.01

	
Trust Indenture Act Controls.

	
40

	
  

	
Section 11.02

	
Notices.

	
40

	

     Section 11.03

	

Communication by Holders of Notes with Other Holders of Notes.

	
41

	
  

	
Section 11.04

	
Certificate and Opinion as to Conditions Precedent.

	
42

	
  

	
Section 11.05

	
Statements Required in Certificate.

	
42

	
  

	
Section 11.06

	
Rules by Trustee and Agents.

	
42

	
  

	
Section 11.07

	
Calculation of Foreign Currency Amounts.

	
42

	
  

	
Section 11.08

	
Legal Holidays.

	
43

	
  

	
Section 11.09

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

	
43

	
  

	
Section 11.10

	
Governing Law.

	
43

	
  

	
Section 11.11

	
No Adverse Interpretation of Other Agreements.

	
43

	
  

	
Section 11.12

	
Successors.

	
43

	
  

	
Section 11.13

	
Severability.

	
43

	
  

	
Section 11.14

	
Counterpart Originals.

	
44

	
  

	
Section 11.15

	
Table of Contents, Headings, Etc.

	
44

 

	

ARTICLE 12. SINKING FUNDS

	
44

	
  

	
Section 12.01

	
Applicability of Article.

	
44

	
  

	
Section 12.02

	
Satisfaction of Sinking Fund Payments with Notes.

	
44

	
  

	
Section 12.03

	
Redemption of Notes for Sinking Fund.

	
45

 

iii

  

  

  

 

 

INDENTURE dated as of [              ], 201_ between GENCO SHIPPING & TRADING LIMITED, a Marshall Islands corporation (the “Company”), and [ ], as trustee (the “Trustee”).

 

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

 

ARTICLE 1.

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section 1.01   Definitions.

 

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

 

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

 

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

 

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

 

“Board of Directors” means:

 

	
  

	
(1)

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

 

	
  

	
(2)

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

 

	
  

	
(3)

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

 

	
  

	
(4)

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

 

 

  

  

  

 

 

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

 

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

 

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

 

“Capital Stock” means:

 

	
  

	
(1)

	
in the case of a corporation, corporate stock;

 

	
  

	
(2)

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

 

	
  

	
(3)

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

 

	
  

	
(4)

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

 

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

 

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

 

“Corporate Trust Office of the Trustee” means the office of the Trustee at which at any particular time its corporate trust business in [______________] shall be principally administered, which office as of the date of this instrument is located at [________________], except that with respect to presentation of Notes for payment or for registration of transfer or exchange, such term shall mean the office or agency of the Trustee at which at any particular time its corporate agency business shall be conducted, which office at the date of this instrument is located at [________________], or, in the case of any of such offices or agency, such other address as the Trustee may designate from time to time by notice to the Holders and the Company.

 

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

 

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

 

 

  

2

  

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	
  

	
(1)

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

 

 

 

  

3

  

 

 

	
  

	
(2)

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

 

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

 

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

 

	
  

	
(1)

	
in respect of borrowed money;

 

	
  

	
(2)

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

 

	
  

	
(3)

	
in respect of banker’s acceptances;

 

	
  

	
(4)

	
representing Capital Lease Obligations;

 

	
  

	
(5)

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

 

	
  

	
(6)

	
representing any Hedging Obligations,

 

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

 

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

 

	
  

	
(1)

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

 

	
  

	
(2)

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

 

“Indenture” means this Indenture, as amended, supplemented or restated from time to time and shall include the form and terms of particular Series of Notes established as contemplated by Section 2.02.

 

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

 

 

  

4

  

 

 

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

 

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

 

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

 

“Officer’s Certificate” means a certificate signed by an Officer of the Company that meets the requirements of Section 11.05 hereof and delivered to the Trustee.

 

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

 

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

 

“Responsible Officer” means, when used with respect to the Trustee, any officer assigned to the Corporate Trust Division – Corporate Finance Unit (or any successor division or unit of the Trustee or the corporate trust department of any successor Trustee) of the Trustee located at the Corporate Trust Office of the Trustee, who shall have direct responsibility for the administration of this Indenture, and for purposes of Section 7.1(c)(2) and the second sentence of Section 7.5 shall also include any officer of the Trustee to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject.

 

“SEC” means the Securities and Exchange Commission.

 

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

 

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

 

“Stated Maturity” means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the original documentation governing such Indebtedness, and shall not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof.

 

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

 

 

 

  

5

  

 

 

	
  

	
(1)

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

 

	
  

	
(2)

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

 

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

 

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

 

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

 

Section 1.02   Other Definitions

 

	
Term

	  	
Defined in

Section

	
“Authentication Order”

	  	
2.03

	
“Covenant Defeasance”

	  	
8.03

	
“Event of Default”

	  	
6.01

	
“Legal Defeasance”

	  	
8.02

	
“Mandatory Sinking Fund Payment”

	  	
12.01

	
“Optional Sinking Fund Payment”

	  	
12.01

	
“Paying Agent”

	  	
2.04

	
“Registrar”

	  	
2.04

	  	  	  

Section 1.03   Incorporation by Reference of Trust Indenture Act

 

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

 

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

 

“Commission” means the SEC;

 

“indenture securities” means the Notes;

 

 

  

6

  

 

 

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

 

“indenture to be qualified” means this Indenture;

 

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

 

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

 

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

 

Section 1.04   Rules of Construction.

 

Unless the context otherwise requires:

 

	
  

	
(1)

	
a term has the meaning assigned to it;

 

	
  

	
(2)

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

 

	
  

	
(3)

	
“or” is not exclusive;

 

	
  

	
(4)

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

 

	
  

	
(5)

	
the words “hereof,” “herein,” “hereunder” and similar words refer to this Indenture as a whole and not to any particular provisions of this Indenture; and any subsection, Section, Article and Exhibit references are to this Indenture unless otherwise specified;

 

	
  

	
(6)

	
“including” means including without limitation;

 

	
  

	
(7)

	
provisions apply to successive events and transactions; and

 

	
  

	
(8)

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

 

ARTICLE 2.

THE NOTES

 

Section 2.01   Issuable in Series.

 

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

 

 

  

7

  

 

 

the Board Resolution, Officer’s Certificate or supplemental indenture detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined. Notes may differ between Series in respect of any matters, provided that all Series of Notes shall be equally and ratably entitled to the benefits of the Indenture.

 

Section 2.02   Establishment of Terms of Series of Notes.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(h)   the obligation, if any, of the Company to redeem or purchase the Notes of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof

 

 

 

  

8

  

 

 

and the period or periods within which, the price or prices at which and the terms and conditions upon which Notes of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

  

9

  

 

 

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

 

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

 

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

 

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

 

Section 2.03   Execution and Authentication.

 

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

 

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

 

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

 

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

 

Section 2.04   Registrar and Paying Agent.

 

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

 

 

 

  

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

 

Section 2.05   Paying Agent to Hold Money in Trust.

 

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

 

Section 2.06   Holder Lists.

 

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

 

Section 2.07   Transfer and Exchange.

 

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

 

Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Notes of any Series for the period beginning at the opening of business fifteen days immediately preceding the mailing of a notice of redemption of Notes of that Series

 

 

  

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selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the transfer of or exchange Notes of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Notes selected, called or being called for redemption in part.

 

Section 2.08   Replacement Notes.

 

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

 

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

 

Section 2.09   Outstanding Notes.

 

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

 

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

 

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

 

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

 

Section 2.10   Treasury Notes.

 

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

 

 

 

  

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waiver or consent, only Notes of a Series that a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.

 

Section 2.11   Temporary Notes.

 

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

 

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

 

Section 2.12   Cancellation.

 

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

 

Section 2.13   Defaulted Interest.

 

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

 

Section 2.14   Global Notes.

 

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

 

(b) Transfer and Exchange.  Notwithstanding any provisions to the contrary contained in Section 2.07 hereof and in addition thereto, any Global Note shall be exchangeable pursuant to Section 2.07 of the Indenture for Notes registered in the names of Holders other than

 

 

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

None of the Trustee, the Paying Agent or the Registrar shall have any responsibility or obligation to any beneficial owner in a Global Note, an agent member or other Person with respect to the accuracy of the records of the Depositary or its nominee or of any agent member,

 

 

 

  

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with respect to any ownership interest in the Securities or with respect to the delivery to any agent member, beneficial owner or other Person (other than the Depositary) of any notice (including any notice of redemption) or the payment of any amount, under or with respect to such Securities.  All notices and communications to be given to the Holders and all payments to be made to Holders under the Securities and this Indenture shall be given or made only to or upon the order of the registered holders (which shall be the Depositary or its nominee in the case of the Global Note).  The rights of beneficial owners in the Global Note shall be exercised only through the Depositary subject to its applicable procedures.  The Trustee, the Paying Agent and the Registrar shall be entitled to rely and shall be fully protected in relying upon information furnished by the Depositary with respect to its members, participants and any beneficial owners.  The Trustee, the Paying Agent and the Registrar shall be entitled to deal with the Depositary, and any nominee thereof, that is the registered holder of any Global Note for all purposes of this Indenture relating to such Global Note (including the payment of principal, premium, if any, and interest and additional amounts, if any, and the giving of instructions or directions by or to the owner or holder of a beneficial ownership interest in such Global Note) as the sole holder of such Global Note and shall have no obligations to the beneficial owners thereof.  None of the Trustee, the Paying Agent or the Registrar shall have any responsibility or liability for any acts or omissions of the Depositary with respect to such Global Note, for the records of any such depositary, including records in respect of beneficial ownership interests in respect of any such Global Note, for any transactions between the Depositary and any agent member or between or among the Depositary, any such agent member and/or any holder or owner of a beneficial interest in such Global Note, or for any transfers of beneficial interests in any such Global Note.

 

Section 2.15   CUSIP Number.

 

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

 

ARTICLE 3.

REDEMPTION AND PREPAYMENT

 

Section 3.01   Notice to Trustee.

 

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

 

 

 

  

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Section 3.02   Selection of Notes to Be Redeemed.

 

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

 

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

 

Section 3.03   Notice of Redemption.

 

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

 

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

 

	
  

	
(1)

	
the redemption date;

 

	
  

	
(2)

	
the redemption price;

 

	
  

	
(3)

	
the name and address of the Paying Agent;

 

	
  

	
(4)

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

 

	
  

	
(5)

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

 

	
  

	
(6)

	
the “CUSIP”, “ISIN” or other similar number, if any;

 

	
  

	
(7)

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

 

 

 

  

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(8)

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

 

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

 

Section 3.04   Effect of Notice of Redemption.

 

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

 

Section 3.05   Deposit of Redemption Price.

 

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

 

If the Company complies with the provisions of the preceding paragraph, on and after the redemption date, interest shall cease to accrue on the Notes or the portions of Notes called for redemption. If a Note is redeemed on or after an interest record date but on or prior to the related interest payment date, then any accrued and unpaid interest shall be paid to the Person in whose name such Note was registered at the close of business on such record date. If any Note called for redemption shall not be so paid upon surrender for redemption because of the failure of the Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption date until such principal is paid, and to the extent lawful on any interest not paid on such unpaid principal, in each case at the rate provided in the Notes and in Section 4.01 hereof.

 

Section 3.06   Notes Redeemed in Part.

 

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

 

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

 

 

 

  

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ARTICLE 4.

COVENANTS

 

Section 4.01   Payment of Principal and Interest.

 

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

 

Section 4.02   Maintenance of Office or Agency.

 

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

 

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

 

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

 

Section 4.03   Reports.

 

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

 

	
  

	
(1)

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

 

	
  

	
(2)

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

 

 

 

  

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

 

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

 

Section 4.04   Compliance Certificate.

 

The Company shall deliver to the Trustee with respect to such Series, within 120 days after the end of each fiscal year, an Officer’s Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officer with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to such Officer signing such certificate, that to the best of his or her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto) and that to the best of his or her knowledge no event has occurred and remains in existence by reason of which payments on account of the principal of or interest, if any, on the Notes is prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.05   Taxes.

 

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

 

 

 

  

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Section 4.06   Stay, Extension and Usury Laws.

 

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

 

Section 4.07   Corporate Existence.

 

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

 

ARTICLE 5.

SUCCESSORS

 

Section 5.01   Merger, Consolidation or Sale of Assets.

 

The Company shall not: (1) consolidate with, enter into a binding share exchange with, or merge with or into, another Person, or (2) sell, assign, convey, transfer, lease or otherwise dispose of the properties and assets of the Company substantially as an entirety to another Person, unless:

 

(a) either: (i) the Company is the surviving Person; or (ii) the Person surviving any such consolidation, share exchange or merger, if other than the Company, or to which such sale, assignment, transfer, conveyance, lease or other disposition shall have been made (the “Successor Person”) is a corporation organized or existing under the laws of the Republic of the Marshall Islands, the United States of America, any state of the United States or the District of Columbia, any member state of the European Union, Liberia, Malta, Bermuda, the Bahamas, Panama, the British Virgin Islands, the Cayman Islands, the Isle of Man, Norway, Hong Kong, Taiwan, Antigua and Barbuda, Barbados, Belize, Cyprus, Gibraltar (UK), Jamaica, Netherlands Antilles, St. Vincent, Singapore or any other country recognized by the United States of America with an investment grade sovereign debt rating from either Standard & Poor's Ratings Services or Moody's Investors Service, Inc.;

 

 

  

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(b) the Successor Person assumes all the obligations of the Company under the Securities and this Indenture pursuant to a supplemental indenture, executed and delivered to the Trustee;

 

(c) immediately after giving effect to the transaction, no Default or Event of Default shall have occurred and be continuing; and

 

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

 

Section 5.02   Successor Person Substituted.

 

Upon any consolidation or merger, or any sale, assignment, transfer, conveyance, lease or other disposition of the properties and assets of the Company substantially as an entirety in accordance with Section 5.01, the Successor Person formed by such consolidation or into or with which the Company is merged or to which such sale, assignment, transfer, conveyance, lease or other disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, assignment, conveyance, lease or other disposition, the provisions of this Indenture referring to the “Company” shall refer instead to the Successor Person and not to the Company), and may exercise every right and power of the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein and upon satisfaction of the requirements of Section 5.01, except in the case of a lease or other conditional or temporally limited assignment, conveyance or disposition, the predecessor Company shall be released from its liabilities as obligor and maker of the Securities and from its obligations under this Indenture.

 

ARTICLE 6.

DEFAULTS AND REMEDIES

 

Section 6.01   Events of Default.

 

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

 

	
(1)  

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

 

	
(2)  

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

 

	
(3)  

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

 

 

 

  

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(4)

	
default in the performance or breach of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty that has been included in this Indenture solely for the benefit of Series of Notes other than that Series), which default continues uncured for a period of 60 days after written notice given by the Trustees for Notes of that Series or Holders of not less than 25% in principal amount of the outstanding Notes of that Series; or

 

	
  

	
(5)

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

 

	
  

	
(6)

	
one or more judgments for the payment of money in an aggregate amount in excess of $50.0 million (excluding therefrom any amount reasonably expected to be covered by insurance) shall be rendered against the Company any Subsidiary or any combination thereof and the same shall not have been paid, discharged or stayed for a period of 60 days after such judgment became final and nonappealable; or

 

	
  

	
(7)

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

 

(a)   commences a voluntary case,

 

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

 

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

 

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

 

	
  

	
(8)

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

 

(a)   is for relief against the Company in an involuntary case,

 

(b)   appoints a Custodian of the Company or for all or substantially all of its property, or

 

(c)   orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days; or

 

	
  

	
(9)

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

 

Section 6.02   Acceleration.

 

If an Event of Default with respect to Notes of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred to in Sections 6.01(7) or (8) hereof) then in every such case the Trustee or the Holders of not less than 25% in principal amount of

 

 

  

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the outstanding Notes of that Series may declare the principal amount (or, if any Notes of that Series are Discount Notes, such portion of the principal amount as may be specified in the terms of such Notes) of and accrued and unpaid interest, if any, on all of the Notes of that Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable. If an Event of Default specified in Sections 6.01(7) or (8) hereof shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Notes shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

 

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

 

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

 

Section 6.03   Other Remedies.

 

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

 

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

 

Section 6.04   Waiver of Past Defaults.

 

The Holders of a majority in aggregate principal amount of the Notes of any Series then outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes of such Series waive any existing Default or Event of Default and its consequences under this Indenture except a continuing Default or Event of Default in the payment of interest on, or the principal of, such Notes (including in connection with an offer to purchase); provided, however, that the Holders of a majority in aggregate principal amount of the then outstanding Notes of any Series may rescind an acceleration of such Notes and its consequences, including any related payment default that resulted from such acceleration. Upon any such waiver, such Default or Event of Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon.

 

 

 

  

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Section 6.05   Control by Majority.

 

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

 

Section 6.06   Limitation on Suits.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 6.07   Rights of Holders of Notes to Receive Payment.

 

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

 

Section 6.08   Collection Suit by Trustee.

 

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

 

 

  

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remaining unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section 6.09   Trustee May File Proofs of Claim.

 

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

 

Section 6.10   Priorities.

 

Any money collected and any money or other property distributable in respect of the Company’s obligations under this Indenture after the occurrence of an Event of Default shall be applied in the following order:

 

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

 

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

 

Third:  to the Company.

 

 

 

  

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

 

Section 6.11   Undertaking for Costs.

 

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

 

ARTICLE 7.

TRUSTEE

 

Section 7.01   Duties of Trustee.

 

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

 

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

 

(i)   The Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

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

 

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

 

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

 

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

 

(iii)   the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05 hereof, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to any Series of Notes.

 

 

 

  

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

 

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

 

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

 

Section 7.02   Rights of Trustee.

 

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

 

(b)   Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel. The Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

 

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

 

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

 

(e)   Any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of the Company issuing such demand, request or notice.

 

(f)   The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction.

 

 

  

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

 

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

 

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

 

(j)   The Trustee may request that the Company deliver an Officer’s Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate may be signed by any person authorized to sign an Officer’s Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded.

 

(k)   The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document.

 

(l)   Anything in this Indenture notwithstanding, in no event shall the Trustee be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to loss of profit), even if the Trustee has been advised as to the likelihood of such loss or damage and regardless of the form of action.

 

(m)   The Trustee shall not be responsible or liable for any failure or delay in the performance of its obligations under this Indenture arising out of or caused, directly or indirectly, by circumstances beyond its control, including, without limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; interruptions; loss or malfunctions of utilities, computer (hardware or software) or communication services; accidents; labor disputes; acts of civil or military authority and governmental action.

 

Section 7.03   Individual Rights of Trustee.

 

The Trustee, Agent or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company or any Affiliate of the Company with the same rights it would have if it were not Trustee, Agent or such other agent. However, in the event the Trustee acquires any conflicting interest it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as Trustee, or

 

 

 

  

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resign. Any Agent may exercise the same rights, with the same duties, as the Trustee under this Section 7.03. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

 

Section 7.04   Trustee’s Disclaimer.

 

The Trustee (i) shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, (ii) shall not be accountable for the Company’s use of the proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any provision of this Indenture, (iii) shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee, and (iv) shall not be responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.  Subject to Section 7.01(a) hereof, the Trustee shall not be responsible to make any calculation with respect to any matter under this Indenture and shall have no duty to monitor or investigate the Issuers’ compliance with or the breach of, or cause to be performed or observed, any representation, warranty or covenant made in this Indenture.

 

Section 7.05   Notice of Defaults.

 

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

 

Section 7.06   Reports by Trustee to Holders of the Notes.

 

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

 

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

 

Section 7.07   Compensation and Indemnity.

 

The Company shall pay to the Trustee from time to time such compensation as agreed upon in writing for its acceptance of this Indenture and services hereunder. The Trustee’s compensation shall not be limited by any law on compensation of a Trustee of an express trust. The Company shall reimburse the Trustee promptly upon request for all reasonable

 

 

  

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disbursements, advances and expenses incurred or made by the Trustee in addition to the compensation for its services, except to the extent any such expense, advance or disbursement may be attributable to the Trustee’s negligence or willful misconduct. Such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel and of all Persons not regularly in its employ.

 

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

 

The obligations of the Company under this Section 7.07 shall survive the satisfaction and discharge of the Notes, the termination for any reason of this Indenture and the resignation or removal of the Trustee.

 

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

 

In addition to and without prejudice to its other rights hereunder, when the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(7) or (8) hereof occurs, the expenses (including the fees and expenses of its agents and counsel) and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

“Trustee” for purposes of this Section shall include any predecessor Trustee; provided, however, that the negligence, willful misconduct or bad faith of any Trustee hereunder shall not affect the rights of any other Trustee hereunder.

 

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

 

 

 

  

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Section 7.08   Replacement of Trustee.

 

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

 

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

 

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

 

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

 

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

 

(d)   the Trustee becomes incapable of acting.

 

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

 

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

 

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

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders of the Notes. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, provided all sums owing to the Trustee (including its agents and/or counsel) hereunder have been paid and subject to the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof shall continue for the benefit of the retiring Trustee.

 

 

 

  

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Section 7.09   Successor Trustee by Merger, Etc.

 

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

 

Section 7.10   Eligibility; Disqualification.

 

There shall at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of any state or territory thereof that is authorized under such laws to exercise corporate Trustee power, that is subject to supervision or examination by federal or state authorities and that has a combined capital and surplus of at least $50 million as set forth in its most recent published annual report of condition.

 

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

 

Section 7.11   Preferential Collection of Claims Against Company.

 

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

 

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

 

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

 

 

 

  

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ARTICLE 8.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.01   Option to Effect Legal Defeasance or Covenant Defeasance.

 

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

 

Section 8.02   Legal Defeasance and Discharge.

 

Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.02, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from its obligations with respect to all outstanding Notes of such Series (including the related guarantees, if any) on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes of such Series (including the related guarantees, if any), which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all of their other obligations under such Notes, such guarantees, if any, and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of outstanding Notes to receive solely from the trust fund described in Section 8.05 hereof, and as more fully set forth in such Section, payments in respect of the principal of, interest and premium, if any, on such Notes when such payments are due, (b) the Company’s obligations with respect to the Notes under Article 2 and Section 4.01 hereof, (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s obligations in connection therewith and (d) this Article 8. Subject to compliance with this Article 8, the Company may exercise its option under this Section 8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof.

 

Section 8.03   Covenant Defeasance.

 

Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the Company will, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from its obligations under the covenants contained in Section 4.03, 4.04 and 4.05 with respect to the outstanding Notes of the applicable Series on and after the date the conditions set forth in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes of such Series, the Company may omit to comply with and shall have no liability in respect of any term,

 

 

  

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condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(4) through 6.01(6) hereof shall not constitute Events of Default.

 

Section 8.04   Conditions to Legal or Covenant Defeasance.

 

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

 

In order to exercise either Legal Defeasance or Covenant Defeasance:

 

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

 

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

 

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

 

(d)   no Default or Event of Default shall have occurred and be continuing on the date of such deposit, other than a Default or Event of Default resulting from the incurrence of Indebtedness all or a portion of the proceeds of which will be used to defease the Notes of any Series pursuant to this Article 8 concurrently with such incurrence, or insofar as Sections 6.01(7)

 

 

 

  

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or 6.01(8) hereof is concerned, at any time in the period ending on the 91st day after the date of deposit;

 

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

 

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

 

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

 

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

 

Subject to Section 8.06 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the outstanding Notes of any Series shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

 

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

 

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

 

Section 8.06   Repayment to Company.

 

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium, if any, or interest on any Series

 

 

 

  

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of Notes and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable shall be paid to the Company on its request or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the reasonable expense of the Company cause to be published once, in The New York Times and the Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining shall be repaid to the Company.

 

Section 8.07   Reinstatement.

 

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

 

ARTICLE 9.

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01   Without Consent of Holders of Notes.

 

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

 

	
(1)    

	
to cure any ambiguity, defect or inconsistency;

 

	
(2)    

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

 

	
(3)    

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

 

	
(4)    

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

 

 

 

  

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(5)    

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

 

	
(6)    

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

 

	
(7)    

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

 

	
(8)    

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

 

Upon the request of the Company accompanied by a Board Resolution authorizing the execution of any such amended or supplemental indenture, and upon receipt by the Trustee of the documents described in Sections 7.02 and 9.06 hereof, the Trustee will join with the Company in the execution of any amended or supplemental indenture authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee will not be obligated to enter into such amended or supplemental indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

 

Section 9.02   With Consent of Holders of Notes.

 

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

 

However, without the consent of each Holder affected, an amendment or waiver under this Section 9.02 may not:

 

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

 

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

 

 

  

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

 

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

 

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

 

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

 

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

 

It shall not be necessary for the consent of the Holders of Notes under this Section 9.02 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof. Upon the request of the Company accompanied by a Board Resolution authorizing the execution of any such amended or supplemental indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Sections 7.02 and 9.06 hereof, the Trustee will join with the Company in the execution of such amended or supplemental indenture unless such amended or supplemental indenture directly affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but will not be obligated to, enter into such amended or supplemental Indenture.

 

Section 9.03   Compliance with Trust Indenture Act.

 

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

 

Section 9.04   Revocation and Effect of Consents.

 

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

 

Section 9.05   Notation on or Exchange of Notes.

 

The Trustee may place an appropriate notation about an amendment or waiver on any Note of any Series thereafter authenticated. The Company in exchange for Notes of that Series

 

 

 

  

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may issue and the Trustee shall authenticate upon request new Notes of that Series that reflect the amendment or waiver.

 

Section 9.06   Trustee Protected.

 

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

 

Section 9.07   Notice of Supplemental Indenture.

 

After any supplemental indenture or waiver under this Article becomes effective, the Company shall mail to the Holders of Notes a notice briefly describing such supplemental indenture or waiver. Any failure by the Company to mail such notice to all Holders of Notes, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.

 

ARTICLE 10.

SATISFACTION AND DISCHARGE

 

Section 10.01   Satisfaction and Discharge.

 

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

 

	
  

	
(1)

	
either:

 

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

 

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

 

	
  

	
(2)

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

 

 

  

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(3)

	
the Company has paid or caused to be paid all sums payable by it under this Indenture; and

 

	
  

	
(4)

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

 

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

 

Section 10.02   Application of Trust Money.

 

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

 

If such Trustee or Paying Agent is unable to apply any money or Government Securities in accordance with Section 10.01 hereof by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the applicable Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 10.01 hereof; provided that if the Company has made any payment of principal of, premium, if any, or interest on, any Notes because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or Government Securities held by the Trustee or Paying Agent.

 

ARTICLE 11.

MISCELLANEOUS

 

Section 11.01   Trust Indenture Act Controls.

 

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

 

Section 11.02   Notices.

 

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

 

 

 

  

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If to the Company:

Genco Shipping & Trading Limited

299 Park Avenue, 20th Floor

New York, New York  10171

Facsimile: (646) 443-8551

Attention:  John C. Wobensmith

 

If to the Trustee:

 

[                      ]

Attention:  [                      ]

Facsimile:  [                       ]

 

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

 

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

 

Any notice or communication given to the Trustee shall be effective only upon actual receipt by the Trustee at the Corporate Trust Office of the Trustee

 

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

 

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

 

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

 

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

 

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

 

 

 

  

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Section 11.04   Certificate and Opinion as to Conditions Precedent.

 

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

 

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

 

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

 

Section 11.05   Statements Required in Certificate.

 

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

 

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

 

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

 

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

 

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

 

Section 11.06   Rules by Trustee and Agents.

 

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

 

Section 11.07   Calculation of Foreign Currency Amounts.

 

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

 

 

  

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Section 11.08   Legal Holidays.

 

If a payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such payment for the intervening period.  If a regular record date is a Legal Holiday, the record date shall not be affected.

 

Section 11.09   No Personal Liability of Directors, Officers, Employees and Stockholders.

 

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

 

Section 11.10   Governing Law.

 

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

 

EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS INDENTURE.

 

Section 11.11   No Adverse Interpretation of Other Agreements.

 

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

 

Section 11.12   Successors.

 

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

 

Section 11.13   Severability.

 

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

 

 

  

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Section 11.14   Counterpart Originals.

 

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

 

Section 11.15   Table of Contents, Headings, Etc.

 

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

 

ARTICLE 12.

SINKING FUNDS

 

Section 12.01   Applicability of Article.

 

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

 

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

 

Section 12.02   Satisfaction of Sinking Fund Payments with Notes.

 

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

 

 

  

44

  

 

 

Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Notes of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

 

Section 12.03   Redemption of Notes for Sinking Fund.

 

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

 

[Signatures on following page]

 

 

 

45

 

  

  

  

 

 

IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

 

GENCO SHIPPING & TRADING LIMITED

 

 

By:_____________________________

 

Name:

 

Title:

 

[                                       ], as Trustee

 

By:_____________________________

 

Name:

 

Title:Exhibit 4.1

TSINGDA EEDU CORPORATION 

2011 Equity Incentive Plan

ARTICLE I 

PURPOSE

          Section
1.1 GENERAL. The purpose of the Tsingda eEdu Corporation 2011 Equity
Incentive Plan (the “Plan”) is to provide additional incentive to selected
employees, officers, directors and consultants of Tsingda eEdu Corporation (the
“Company”) or its Affiliates, to attract and retain the best available
personnel for positions of substantial responsibility, and to promote the
long-term success of the Company’s business.  

ARTICLE II 

DEFINITIONS

          Section
2.1 DEFINITIONS. Whenever used herein, the following terms shall have
their respective meanings set forth below: 

                    (a)
“Administrator” means the Board or
any Committee or Officer as shall be administering the Plan, in accordance with
Article 4 of this Plan. 

                    (b)
“Affiliate” means: (i) any
Subsidiary or Parent, or (ii) an entity that directly or through one or more
intermediaries controls, is controlled by or is under common control with the
Company. 

                    (c)
“Award” means an Incentive Share
Option, Non-Qualified Share Option, Restricted Shares or other arrangement or
program granted to or covering a Participant pursuant to the provisions of this
Plan. 

                    (d)
“Award Agreement” means the
written or electronic agreement setting forth the terms and provisions
applicable to each Award granted under the Plan. Any Award Agreement is subject
in all instances to the terms and conditions of the Plan. 

                    (e)
“Board” means the Board of
Directors of the Company. If one or more Committees have been appointed by the
Board to administer the Plan, the term “Board” also means such Committee(s). 

                    (f)
“Cause” as a reason for a
Participant’s termination of employment shall mean, unless otherwise provided
in the employment, severance or similar agreement, if any, between such
Participant and the Company or its Affiliate: (i) acts of personal dishonesty,
gross negligence or willful misconduct on the part of a Participant in the
course of his or her employment or services, (ii) a Participant’s engagement in
conduct that results, or could reasonably be expected to result, in material
injury to the reputation or business of the Company or its Affiliates, (iii)
misappropriation by a Participant of the assets or business opportunities of
the Company or its Affiliates; (iv) embezzlement or fraud committed by a
Participant, at his or her direction, or with his or her personal knowledge;
(v) a Participant’s conviction by a court of competent jurisdiction of, or
pleading “guilty” or “no contest” to, (x) a felony, or (y) any other criminal
charge (other than minor traffic violations) that (in the case of this
subclause (y)) has, or could be reasonably expected to have, an adverse impact
on the performance of the Participant’s duties to the Company or its
Affiliates; or (vi) failure by a Participant to follow the lawful directions of
a superior officer or the Board. The determination of the Administrator as to
the existence of “Cause” shall be conclusive on the Participant and the
Company. 

A-1

                    (g)
“Change in Control” means and
includes the occurrence of any one of the following events but shall
specifically exclude a Public Offering: 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 individuals
 who, on the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any
 reason to constitute at least a majority of such Board, provided that any
 person becoming a director after the Effective Date and whose election or
 nomination for election was approved by a vote of at least a majority of the
 Incumbent Directors then on the Board shall be an Incumbent Director;
 provided, however, that no individual initially elected or nominated as a
 director of the Company as a result of an actual or threatened election
 contest with respect to the election or removal of directors (“Election Contest”) or other actual or
 threatened solicitation of proxies or consents by or on behalf of any Person
 other than the Board (“Proxy Contest”),
 including by reason of any agreement intended to avoid or settle any Election
 Contest or Proxy Contest, shall be deemed an Incumbent Director; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any
 individual or entity becomes a beneficial owner, directly or indirectly, of
 either (A) 25% or more of the then-outstanding shares of the Company (“Company Shares”) or (B) securities of the
 Company representing 25% or more of the combined voting power of the
 Company’s then outstanding securities eligible to vote for the election of
 directors (the “Company Voting Securities”);
 provided, however, that for
 purposes of this subsection (ii), the following acquisitions of Company
 Shares or [c1]Company
 Voting Securities shall not constitute a Change in Control: (w) an
 acquisition directly from the Company, (x) an acquisition by the Company or a
 Subsidiary, (y) an acquisition by any employee benefit plan (or related
 trust) sponsored or maintained by the Company or any Subsidiary, or (z) an
 acquisition pursuant to a Non-Qualifying Transaction (as defined in
 subsection (iii) below); or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 the
consummation of a reorganization, merger, consolidation, statutory share
exchange or similar form of corporate transaction involving the Company or a
Subsidiary (a “Reorganization”),
or the sale or other disposition of all or substantially all of the Company’s
assets (a “Sale”) or the
acquisition of assets or stock of another corporation or other entity (an “Acquisition”), unless immediately
following such Reorganization, Sale or Acquisition: (A) all or substantially
all of the individuals and entities who were the Beneficial Owners,
respectively, of the outstanding Company Shares and outstanding Company
Voting Securities immediately prior to such Reorganization, Sale or
Acquisition beneficially own, directly or indirectly, more than 25% of,
respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the entity resulting
from such Reorganization, Sale or Acquisition (including, without limitation,
an entity which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets or stock either directly or through
one or more subsidiaries, the “Surviving Entity”) in substantially the same
proportions as their ownership, immediately prior to such Reorganization,
Sale or Acquisition, of the outstanding Company Shares and the outstanding
Company Voting Securities, as the case may be, and (B) no person (other than
(x) the Company or any Subsidiary, (y) the Surviving Entity or its ultimate
parent entity, or (z) any employee benefit plan (or related  

 

A-2

	
  

 	
  

 
	
  

 	
 trust)
 sponsored or maintained by any of the foregoing) is the Beneficial Owner,
 directly or indirectly, of 25% or more of the total common stock or 25% or
 more of the total voting power of the outstanding voting securities eligible
 to elect directors of the Surviving Entity, and (C) at least a majority of
 the members of the board of directors of the Surviving Entity were Incumbent
 Directors at the time of the Board’s approval of the execution of the initial
 agreement providing for such Reorganization, Sale or Acquisition (any
 Reorganization, Sale or Acquisition which satisfies all of the criteria
 specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or approval
 by the shareholders of the Company of a complete liquidation or dissolution
 of the Company. 

 

                    (h)
“Code” means the Internal Revenue
Code of 1986, as amended from time to time. 

                    (i)
“Company” means Tsingda eEdu
Corporation, a Cayman Islands exempted company incorporated with limited
liability, or any successor entity. 

                    (j)
“Consultant” means any person,
including an advisor, engaged by the Company or its Affiliates to render
services to such entity. 

                    (k)
“Continuous Status With the Company”
means that the director, employment or consulting relationship is not interrupted
or terminated by the Company or its Affiliates, as applicable. Continuous
Status With the Company shall not be considered interrupted in the case of: (i)
any leave of absence approved in writing by the Board, an Officer, or a person
designated in writing by the Board or an Officer as authorized to approve a
leave of absence, including sick leave, military leave, or any other personal
leave; provided, however, that for purposes of Incentive Share Options, any
such leave may not exceed 90 days, unless reemployment upon the expiration of
such leave is guaranteed by contract (including certain Company policies) or
statute, or (ii) transfers between locations of the Company or between the
Company, a Parent, a Subsidiary or successor of the Company; or (iii) a change
in the status of the Grantee from Employee to Consultant or from Consultant to
Employee. 

                    (l)
“Director” means a member of the
Board. 

                    (m)
“Disability” means total and
permanent disability as defined in Section 22(e)(3) of the Code, provided that
in the case of Awards other than Incentive Share Options, the Administrator in
its discretion may determine whether a permanent and total disability exists in
accordance with uniform and non-discriminatory standards adopted by the
Administrator from time to time. 

                    (n)
“Effective Date” has the meaning
assigned such term in Section 3.1. 

                    (o)
“Exchange” means any national
securities exchange on which the Share may from time to time be listed or
traded. 

                    (p)
“Fair Market Value” means, as of
any date, the value of Common Share determined as follows: 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 If the
 Common Share is listed on any established stock exchange or a national market
 system its Fair Market Value will be the closing sales price for such stock
 (or the closing bid, if no sales were reported) as quoted on such exchange or
 

 

A-3

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 system on
 the day of determination, as reported in The Wall Street Journal or such
 other source as the Administrator deems reliable;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 If the
 Common Share is regularly quoted by a recognized securities dealer but
 selling prices are not reported, the Fair Market Value of a Share will be the
 mean between the high bid and low asked prices for the Common Share on the
 day of determination, as reported in The Wall Street Journal or such other
 source as the Administrator deems reliable; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 In the
 absence of an established market for the Common Share, the Fair Market Value
 will be determined in good faith by the Administrator. 

 

                    (q)
“Grant Date” of an Award means the
first date on which all necessary corporate action has been taken to approve
the grant of the Award as provided in the Plan, or such later date as is
determined and specified as part of that authorization process. Notice of the
grant shall be provided to the grantee within a reasonable time after the Grant
Date. 

                    (r)
“Grantee” means an individual who
has been granted an Award. 

                    (s)
“Incentive Share Option” means an
Option that is intended to be an incentive share option and meets the
requirements of Section 422 of the Code or any successor provision.thereto. 

                    (t)
“Non-Qualified Share Option” means
a stock option that does not qualify as an incentive share option within the
meaning of Code Section 422. 

                    (u)
“Option” means a right granted
under the Plan to purchase Shares pursuant to the terms and conditions of the
Plan. An Option may be either an Incentive Share Option or a Non-Qualified
Share Option. 

                    (v)
“Other Share-Based Award”
means any other awards not specifically described in the Plan that are valued
in whole or in part by reference to, or are otherwise based on, Shares and are
created by the Administrator pursuant to Section 8. 

                    (w)
“Parent” means any entity which
holds directly or indirectly more than fifty percent of the voting equity of
the Company. Notwithstanding the above, with respect to an Incentive Share
Option, Parent shall have the meaning set forth in Section 424(e) of the Code. 

                    (x)
“Participant” means a person who,
as an employee, officer, director or consultant of the Company or any
Affiliate, has been granted an Award under the Plan; provided that in the case
of the death of a Participant, the term “Participant” refers to a beneficiary
designated pursuant to Section 9.2 or the legal guardian or other legal
representative acting in a fiduciary capacity on behalf of the Participant
under applicable state law and court supervision. 

                    (y)
“Plan” means this Tsingda eEdu
Corporation 2011 Incentive Plan, as amended from time to time. 

                    (z)
“Public Offering” shall occur on
the closing date of a public offering of any class or series of the Company’s
equity securities pursuant to a registration statement filed by the Company
under the 1933 Act. 

A-4

                    (aa)
“Restricted Shares” means Shares
awarded pursuant to a “Restricted Share
Agreement” between the Company and Participant setting forth the
terms, conditions or restrictions applicable to an Award of Shares under the
Plan. 

                    (bb)
“Shares” means ordinary shares of
the Company par value $0.000384 per share. If there has been an adjustment or
substitution pursuant to Section 10.1, the term “Shares” shall also include any
shares or other securities that are substituted for Shares or into which Shares
are adjusted pursuant to Section 10.1. 

                    (cc)
“Subsidiary” means any entity in
which the Company holds directly or indirectly more than fifty percent (50%) of
the voting equity. Notwithstanding the above, with respect to an Incentive
Share Option, Subsidiary shall have the meaning set forth in Section 424(f) of
the Code. 

                    (dd)
“1933 Act” means the U.S.
Securities Act of 1933 and the rules and regulations promulgated thereunder, as
amended from time to time. 

                    (ee)
“1934 Act” means the U.S.
Securities Exchange Act of 1934 and the rules and regulations promulgated
thereunder, as amended from time to time. 

          Section
2.2 CONSTRUCTION. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of the Plan. Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the singular.
Use of the term “or” is not intended to be exclusive, unless the context
clearly requires otherwise. 

ARTICLE III

EFFECTIVE TERM OF PLAN

          Section
3.1 EFFECTIVE DATE. The Plan shall be effective as of the date it is
approved by the Board (the “Effective Date”).  

          Section
3.2 TERMINATION OF PLAN. The Plan shall terminate on the tenth anniversary
of the Effective Date unless earlier terminated as provided herein. The
termination of the Plan on such date shall not affect the validity of any Award
outstanding on the date of termination, which shall continue to be governed by
the applicable terms and conditions of this Plan. Notwithstanding the
foregoing, no options may be granted more than ten years after the earlier of
(a) adoption of this Plan by the Board, or (b) the Effective Date. 

ARTICLE IV 

ADMINISTRATION

          Section
4.1 ADMINISTRATION BY THE BOARD. The Plan shall be administered by the
Board or other Administrator assigned by resolution of the Board. All questions
of interpretation of the Plan or of any Option or other right awarded hereunder
shall be determined by the Board, and such determinations shall be final and
binding upon all persons having an interest in the Plan or in such Option or
right. 

          Section
4.2 AUTHORITY OF OFFICERS. Any Officer shall have the authority to act
on behalf of the Company with respect to any matter, right, obligation,
determination or election which is the responsibility of, or which is allocated
to, the Company herein, provided the Officer has been delegated the authority
with respect to such matter, right, obligation, determination or election. 

A-5

          Section
4.3 POWERS OF THE BOARD. In addition to any other powers set forth in
the Plan and subject to the provisions of the Plan, the Board shall have the
full and final power and authority, in its discretion to: 

                    (a)
determine the persons to whom, and the time or times at which Awards shall be
granted, the types of Awards to be granted, and the number of Shares to be
subject to each Award; 

                    (b)
determine the terms, conditions and restrictions applicable to Awards; 

                    (c)
approve one or more forms of Option, or Restricted Share Agreements; 

                    (d)
amend, modify, extend, cancel or renew any Option or waive any restrictions or
conditions applicable to any Option or applicable to any Shares awarded or
acquired upon the exercise thereof; 

                    (e)
correct any defect, supply any omission, or reconcile any inconsistency in the
and take such other actions with respect to the Plan as the Board may deem advisable
to the extent not inconsistent with the provisions of the Plan or applicable
law. 

          Section
4.4 AWARD AGREEMENTS. To the extent not set forth in the Plan, the terms
and conditions of each Award, which need not be the same for each grant or for
each Grantee, shall be set forth in an Award Agreement. The Administrator, in
its sole and absolute discretion, may require as a condition to any Award
Agreement’s effectiveness that the Award Agreement be executed by the Grantee,
including by electronic signature or other electronic indication of acceptance,
and that the Grantee agree to such further terms and conditions as specified in
the Award Agreement. Except as otherwise provided in an Agreement, all
capitalized terms used in the Agreement shall have the same meaning as in the
Plan, and the Agreement shall be subject to all of the terms of the Plan. 

ARTICLE V

SHARES SUBJECT TO THE PLAN

          Section
5.1 NUMBER OF SHARES. Subject to adjustment as provided in Sections 5.2
and Section 10.1, the aggregate number of Shares reserved and available for
issuance pursuant to Awards granted under the Plan shall be ONE MILLION
(1,000,000) and shall consist of authorized but unissued or reacquired shares,
or any combination thereof. If an outstanding Option for any reason expires or
is terminated or canceled or if shares are acquired upon the exercise or Award
of an Option or Restricted Share Agreement subject to a Company repurchase
option and are repurchased by the Company, the shares allocable to the unexercised
portion of such Option or such repurchased shares of Share shall again be
available for issuance under the Plan. 

          Section
5.2 SHARE COUNTING. Shares covered by an Award shall be subtracted from
the Plan share reserve as of the date of grant, but shall be added back to the
Plan share reserve in accordance with this Section 5.2. 

                    (a)
To the extent that an Award is canceled, terminates, expires, is forfeited or
lapses for any reason, any unissued or forfeited Shares subject to the Award
will again be available for issuance pursuant to Awards granted under the Plan;

                    (b)
Shares subject to Awards settled in cash will again be available for issuance
pursuant to Awards granted under the Plan; 

A-6

                    (c)
Shares withheld from an Award or delivered by a Participant to satisfy minimum
tax withholding requirements will again be available for issuance pursuant to
Awards granted under the Plan; 

                    (d)
If the exercise price of an Option is satisfied by delivering Shares to the
Company (by either actual delivery or attestation), only the number of Shares
issued to the Participant in excess of the Shares tendered (by delivery or
attestation) shall be considered for purposes of determining the number of
Shares remaining available for issuance pursuant to Awards granted under the
Plan; 

                    (e)
To the extent that the full number of Shares subject to an Award is not issued
for any reason, including by reason of failure to achieve maximum performance
goals, only the number of Shares issued and delivered shall be considered for
purposes of determining the number of Shares remaining available for issuance
pursuant to Awards granted under the Plan; 

                    (f)
Substitute Awards granted pursuant to Section 9.12 of the Plan shall not count
against the Shares otherwise available for issuance under the Plan under
Section 5.1. 

          Section
5.3 ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE. In the event of any stock
dividend, stock split, reverse stock split, recapitalization, combination,
reclassification or similar change in the capital structure of the Company,
appropriate adjustments shall be made, as applicable, to the number and class
of shares subject to the Plan and to any outstanding Options or Restricted
Shares, in the Share issuance limit set forth in Section 5.1 and in the
exercise price per share of any outstanding Options. 

ARTICLE VI 

ELIGIBILITY

          Section
6.1 GENERAL. Every person who, at or as of the Grant Date, is: (a) a
full-time Employee of the Company, (b) a Director of the Company, (c) is an
executive officer or full-time employee of the Consultant or its Affiliates who
provides services to the Company and who does not have any beneficial ownership
of the Consultant and its Affiliates, or (d) someone whom the Administrator
designates as eligible for an Award (other than for Incentive Share Options)
because the person (i) performs bona fide consulting or advisory services for
the Company, the Consultant or any Affiliate of the Company pursuant to a
written agreement, and (ii) has a direct and significant effect on the
financial development of the Company or its Affiliate, shall be eligible to
receive Awards hereunder. Options intending to qualify as Incentive Share
Option may only be granted to employees of the Company or its Affiliate, as
selected by the Administrator. An Incentive Share Option awarded to a
prospective Employee upon the condition that such person become an Employee
shall be deemed granted effective on the date such person commences Service
with the Company or its Affiliates. 

A-7

ARTICLE VII

STOCK OPTIONS

          Section
7.1 LIMITATIONS. Each Option shall be designated in the Award Agreement
as either an Incentive Share Option or a Non-qualified Share Option. Any Option
designated as an Incentive Share Option: 

                    (a)
shall not have an aggregate Fair Market Value (determined for each Incentive
Share Option at the Grant Date) of Shares with respect to which Incentive Share
Options are exercisable for the first time by the Grantee during any calendar
year (under the Plan and any other employee stock option plan of the Company or
any Parent or Subsidiary (“Other Plans”)),
determined in accordance with the provisions of Section 422 of the Code,
that exceeds $100,000 (the “$100,000 Limit”);

                    (b)
shall, if the aggregate Fair Market Value of Shares (determined on the Grant
Date) with respect to the portion of such grant that is exercisable for the
first time during any calendar year (“Current
Grant”) and all Incentive Share Options previously granted under the
Plan and any Other Plans that are exercisable for the first time during a
calendar year (“Prior Grants”)
would exceed the $100,000 Limit, be exercisable as follows: 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 The portion
 of the Current Grant that would, when added to any Prior Grants, be
 exercisable with respect to Shares that would have an aggregate Fair Market
 Value (determined as of the respective Grant Date for such Options) in excess
 of the $100,000 Limit shall, notwithstanding the terms of the Current Grant,
 be exercisable for the first time by the Grantee in the first subsequent
 calendar year or years in which it could be exercisable for the first time by
 the Grantee when added to all Prior Grants without exceeding the $100,000
 Limit; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 If, viewed
 as of the date of the Current Grant, any portion of a Current Grant could not
 be exercised under the preceding provisions of this Section 7(a)(i)(B) during
 any calendar year commencing with the calendar year in which it is first
 exercisable through and including the last calendar year in which it may by
 its terms be exercised, such portion of the Current Grant shall not be an
 Incentive Share Option, but shall be exercisable as a separate Option at such
 date or dates as are provided in the Current Grant. 

 

          Section
7.2 TERM OF OPTION. The term of each Option shall be
stated in the Award Agreement; provided, however, that the term shall be
ten (10) years from the date of grant or such shorter term as may be
provided in the Award Agreement. Moreover, in the case of an Incentive Share
Option granted to a Grantee who, at the time the Incentive Share Option is
granted, owns stock representing more than ten (10) percent of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the term of
the Incentive Share Option shall be five (5) years from the date of grant or
such shorter term as may be provided in the Award Agreement. 

          Section
7.3 OPTION EXERCISE PRICE AND
CONSIDERATION.

                    (a)
The per share exercise price for the Shares to be issued pursuant to exercise
of an Option shall be determined by the Administrator and, except as otherwise
provided in this Section, shall be no less than one hundred
percent(100%) of the Fair Market Value per Share on the Grant Date. 

                    (b)
In the case of an Incentive Share Option granted to an Employee who on the
Grant Date owns stock representing more than ten percent (10%)of the
voting power of all classes of 

A-8

stock of the
Company or any Parent or Subsidiary, the per Share exercise price shall be no
less than one hundred and ten percent(110%) of the Fair Market Value per
Share on the Grant Date. 

                    (c)
Any Option that is (A) granted to a Grantee in connection with the
acquisition (“Acquisition”), however effected, by the Company of another
corporation or entity (“Acquired Entity”) or the assets thereof,
(B) associated with an option to purchase shares of stock or other equity
interest of the Acquired Entity or an affiliate thereof (“Acquired Entity
Option”) held by such Grantee immediately prior to such Acquisition, and
(C) intended to preserve for the Grantee the economic value of all or a
portion of such Acquired Entity Option, may be granted with such exercise price
as the Administrator determines to be necessary to achieve such preservation of
economic value.  

          Section
7.4 WAITING PERIOD AND EXERCISE DATES. At the time an Option is granted,
the Administrator shall fix the period within which the Option may be exercised
and shall determine any conditions that must be satisfied before the Option may
be exercised. An Option shall be exercisable only to the extent that it is
vested according to the terms of the Award Agreement. 

          Section
7.5 FORM OF CONSIDERATION. The Administrator will determine the
acceptable form of consideration for exercising an Option, including the method
of payment. In the case of an Incentive Share Option, the Administrator in its
sole discretion will determine the acceptable form of consideration at the time
of grant. Such consideration may consist entirely of: (1) cash;
(2) check; (3) promissory note, to the extent permitted by Applicable
Laws, (4) other Shares, provided that such Shares have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as
to which such Option will be exercised and provided further that accepting such
Shares will not result in any adverse accounting consequences to the Company,
as the Administrator determines in its sole discretion; (5) consideration
received by the Company under cashless exercise program (whether through a
broker or otherwise) implemented by the Company in connection with the Plan;
(6) by net exercise; (7) such other consideration and method of
payment for the issuance of Shares to the extent permitted by Applicable Laws;
or (8) any combination of the foregoing methods of payment. 

          Section
7.6 EXERCISE OF OPTION. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Procedure for Exercise; Rights as a Shareholder.
 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 Any Option
 granted hereunder shall be exercisable according to the terms of the Plan and
 at such times and under such conditions as determined by the Administrator
 and set forth in the Award Agreement. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 An Option
 may not be exercised for a fraction of a Share. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 An Option
 shall be deemed exercised when the Company receives: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (A)

 	
 written or
 electronic notice of exercise (in accordance with the Award Agreement and any
 action taken by the Administrator pursuant to Section 4 of the Plan or
 otherwise) from the person entitled to exercise the Option, and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (B)

 	
 full payment
 for the Shares with respect to which the Option is exercised. 

 

                    (b)
Shares issued upon exercise of an Option shall be issued in the name of the
Grantee or, if requested by the Grantee, in the name of the Grantee and his or
her spouse. Until the stock certificate evidencing such Shares is issued (as
evidenced by the appropriate entry on the books of the 

A-9

Company or of
a duly authorized transfer agent of the Company), no right to vote or receive
dividends or any other rights as a shareholder shall exist with respect to the
Optioned Share, notwithstanding the exercise of the Option. The Company shall
issue (or cause to be issued) such stock certificate promptly after the Option
is exercised. No adjustment will be made for a dividend or other right for
which the record date is prior to the date the stock certificate is issued,
except as provided in Section 10 of the Plan. 

                    (c)
Exercising an Option in any manner shall decrease the number of Shares
thereafter available, both for purposes of the Plan and for sale under the
Option, by the number of Shares as to which the Option is exercised, except as
provided in Section 5.2 of the Plan.

ARTICLE VIII

STOCK OR OTHER STOCK-BASED AWARDS

          Section
8.1 GRANT OF STOCK OR OTHER STOCK-BASED AWARDS. The Administrator is
authorized, subject to limitations under applicable law, to grant to
Participants Other Share-Based Awards that are payable in, valued in whole or
in part by reference to, or otherwise based on or related to Shares, as deemed
by the Administrator to be consistent with the purposes of the Plan, including,
without limitation: (a) Restricted Shares; (b) stock appreciation rights; (c)
performance Shares or stock performance units; (d) Shares awarded purely as a
bonus and not subject to any restrictions or conditions, (e) convertible or
exchangeable debt securities or other rights convertible or exchangeable into
Shares, and (f) Awards valued by reference to book value of Shares or the value
of securities of or the performance of specified Parents or Subsidiaries. The
Administrator shall determine the terms and conditions of such Awards. 

          Section
8.2 RESTRICTED SHARE AWARDS. Subject to and consistent with the
provisions of this Plan, each Restricted Share shall be evidenced by a written
Agreement setting forth the terms and conditions pertaining to such Award,
including the number of shares awarded. Unless otherwise required by statute, Restricted
Shares may be awarded with or without payment of consideration by the
Participant. Each Restricted Share Agreement shall include a vesting schedule
describing the date, event, or act upon which Restricted Shares shall vest, in
whole or in part, with respect to all or a specified portion of the Shares
covered by the Award. No Restricted Share not yet vested is assignable or
transferable and any attempt at transfer or assignment of such Share, and any
attempt by a creditor to attach such Share, shall be null and void. Until the
date a Share certificate is issued to a Participant, a Participant will have no
rights as a shareholder of the Company. No adjustments shall be made for
dividends of any kind or nature, distributions, or other rights for which the
record date is prior to the date such stock certificate is issued. Consistent
with the provisions of this Plan, the Administrator may in its discretion
modify, extend, or renew any Restricted Share Agreement, or accept cancellation
of same in exchange for the granting of a new Award. The preceding not
withstanding, no modification of a Restricted Share Agreement which is not
vested shall, absent the consent of the Participant, alter or impair any rights
or obligations with respect to such Agreement.

ARTICLE IX

PROVISIONS APPLICABLE TO AWARDS

          Section
9.1 LIMITS ON TRANSFER. No right or interest of a Participant in any
unexercised or restricted Award may be pledged, encumbered, or hypothecated to
or in favor of any party other than the Company or its Affiliates, or shall be
subject to any lien, obligation, or liability of such Participant to any other
party other than the Company or an Affiliate. No unexercised or restricted
Award shall be assignable or transferable by a Participant other than by will
or the laws of descent and distribution; provided, however, that the
Administrator may (but need not) permit other transfers (other than transfers
for value) where the Administrator concludes that such transferability
(a) does not result in 

A-10

accelerated
taxation, (b) does not cause any Option intended to be an Incentive Share
Option to fail to meet the conditions of Code Section 422(b), and
(c) is otherwise appropriate and desirable, taking into account any
factors deemed relevant, including without limitation, state or federal tax or
securities laws applicable to transferable Awards. 

          Section
9.2 BENEFICIARIES. Notwithstanding Section 9.1, a Participant may,
in the manner determined by the Administrator in its discretion, designate a beneficiary
to exercise the rights of the Participant and to receive any distribution with
respect to any Award upon the Participant’s death. A beneficiary, legal
guardian, legal representative, or other person claiming any rights under the
Plan is subject to all terms and conditions of the Plan and any Award Agreement
applicable to the Participant, except to the extent the Plan and Award
Agreement otherwise provide, and to any additional restrictions deemed
necessary or appropriate by the Administrator. If no beneficiary has been
designated or survives the Participant, payment shall be made to the
Participant’s estate. Subject to the foregoing, a beneficiary designation may
be changed or revoked by a Participant at any time provided the change or
revocation is filed with the Administrator. 

          Section
9.3 STOCK TRADING RESTRICTIONS. All Share issuable under the Plan is
subject to any stop-transfer orders and other restrictions as the Administrator
deems necessary or advisable in its discretion to comply with federal or state
securities laws, rules and regulations and the rules of any national securities
exchange or automated quotation system on which the Share is listed, quoted, or
traded. The Administrator may place legends on any Share certificate or issue
instructions to the transfer agent to reference restrictions applicable to the
Share. 

          Section
9.4 TERMINATION OF EMPLOYMENT OR CONSULTING RELATIONSHIP. In the event
that a Grantee’s Continuous Status With the Company terminates (other than upon
the Grantee’s Retirement (defined below), death or Disability, then, unless
otherwise provided by the Award Agreement, and subject to Section 9 of the
Plan, the Grantee may exercise his or her unexercised Option, but only within
such period of time as is determined by the Administrator, and only to the
extent that the Grantee was entitled to exercise it at the Date of Termination
(but in no event later than the expiration of the term of such Option as set
forth in the Award Agreement). In the case of an Incentive Share Option, the
Administrator shall determine such period of time (in no event to exceed three
months from the Date of Termination) when the Option is granted. If, at the
Date of Termination, the Grantee is not entitled to exercise his or her entire
Option, the Shares covered by the unexercisable portion of the Option shall
revert to the Plan. If, after the Date of Termination, the Grantee does not
exercise his or her Option within the time specified by the Administrator, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

          Section
9.5 DISABILITY OF GRANTEE. In the event that a Grantee’s Continuous
Status With the Company terminates as a result of the Grantee’s Disability,
then, unless otherwise provided by the Award Agreement, such termination shall
have no effect on the Grantee’s outstanding Awards. The Grantee’s Awards shall
continue to vest and remain outstanding and exercisable until they expire by
their terms. In the case of an Incentive Share Option, any option not exercised
within 12 months of the date of termination of the Grantee’s Continuous Status
With the Company due to Disability will be treated as a Nonqualified Share
Option. 

          Section
9.6 DEATH OF GRANTEE. In the event of the death of a Grantee, then,
unless otherwise provided by the Award Agreement, such termination shall have
no effect on Grantee’s outstanding Awards. The Grantee’s Awards shall continue
to vest and remain outstanding and exercisable until they expire by their
terms. In the case of an Incentive Share Option, any option not exercised
within 12 months of the date of termination of Grantee’s Continuous Status With
the Company due to death will be treated as a Nonqualified Share Option. 

A-11

          Section
9.7 RETIREMENT OF GRANTEE. Except as otherwise provided in
Section 9.9 below, in the event that a Grantee’s Continuous Status With
the Company terminates after the Grantee’s attainment of age 62, provided such
Grantee’s Continuous Status With the Company has been ongoing in good standing
(as determined by the Administrator) for at least 24 months (hereinafter,
“Retirement”), then, unless otherwise provided by the Award Agreement, such
termination shall have no effect on Grantee’s outstanding Awards. The Grantee’s
Awards shall continue to vest and remain outstanding and exercisable until they
expire by their terms. In the case of an Incentive Share Option, any option not
exercised within three (3) months of the termination of Grantee’s Continuous
Status With the Company due to Retirement will be treated as a Nonqualified
Share Option.  

          Section
9.8 TERMINATION FOR CAUSE. Notwithstanding anything herein to the
contrary, if a Grantee is an Employee of the Company and is terminated for
Cause, as defined herein, or violates any of the terms of their employment
after they have become vested in any of their rights herein, the Grantee’s full
interest in such rights shall terminate on the date of such termination of
employment and all rights thereunder shall cease. Whether a Participant’s
employment is terminated for Cause shall be determined by the Administrator in
its discretion.

          Section
9.9 ACCELERATION. The Administrator may in its sole discretion at any
time determine that all or a portion of a Participant’s Options and other
Awards in the nature of rights that may be exercised shall become fully or
partially exercisable, that all or a part of the time-based vesting
restrictions on all or a portion of the outstanding Awards shall lapse, and/or
that any performance-based criteria with respect to any Awards shall be deemed
to be wholly or partially satisfied, in each case, as of such date as the
Administrator may, in its sole discretion, declare. The Administrator may
discriminate among Participants and among Awards granted to a Participant in
exercising its discretion pursuant to this Section 9.10. Notwithstanding
anything in the Plan, including this Section 9.10, the Administrator may
not accelerate the payment of any Award if such acceleration would violate
Section 409A (a) (3) of the Code. 

          Section
9.10 FORFEITURE EVENTS. The Administrator may specify in an Award
Agreement that the Participant’s rights, payments and benefits with respect to
an Award shall be subject to reduction, cancellation, forfeiture or recoupment
upon the occurrence of certain specified events, in addition to any otherwise
applicable vesting or performance conditions of an Award. Such events shall
include, but shall not be limited to, termination of employment for Cause,
violation of material Company or Affiliate policies, breach of noncompetition,
confidentiality or other restrictive covenants that may apply to the
Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Company or any Affiliate. 

          Section
9.11 SUBSTITUTE AWARDS. The Administrator may grant Awards under the
Plan in substitution for stock and stock-based awards held by employees of
another entity who become employees of the Company or an Affiliate as a result
of a merger or consolidation of the former employing entity with the Company or
an Affiliate or the acquisition by the Company or an Affiliate of property or
stock of the former employing corporation. The Administrator may direct that
the substitute awards be granted on such terms and conditions as the
Administrator considers appropriate in the circumstances. 

          Section
9.12 CERTAIN LIMITATIONS ON AWARDS TO ENSURE COMPLIANCE WITH CODE
SECTION 409A. For purposes of this Plan, references to an award term
or event (including any authority or right of the Company or a Grantee) being
“permitted” under Code Section 409A mean, for a “409A Award” (meaning an Award that
constitutes a deferral of compensation under Code Section 409A and regulations
thereunder), that the term or event will not cause the Grantee to be liable for
payment of 

A-12

interest or a
tax penalty under Code Section 409A and, for a Non-409A Award (meaning all
Awards other than 409A Awards), that the term or event will not cause the Award
to be treated as subject to Code Section 409A. Other provisions of the
Plan notwithstanding, the terms of any 409A Award and any Non-409A Award,
including any authority of the Company and rights of the Grantee with respect
to the Award, shall be limited to those terms permitted under Code
Section 409A, and any terms not permitted under Code Section 409A
shall be automatically modified and limited to the extent necessary to conform
with Code Section 409A. For this purpose, other provisions of the Plan
notwithstanding, the Company shall have no authority to accelerate
distributions relating to 409A Awards in excess of the authority permitted
under Code Section 409A, and any distribution subject to Code
Section 409A(a)(2)(A)(i) (separation from service) to a “key employee” as
defined under Code Section 409A(a)(2)(B)(i), shall not occur earlier than
the earliest time permitted under Code Section 409A(a)(2)(B)(i). 

          Section
9.13 ADDITIONAL PROVISIONS. Each Award Agreement may contain such other
terms and conditions as the Administrator may determine; provided that such
other terms and conditions are not inconsistent with the provisions of the
Plan. 

ARTICLE X

ADJUSTMENTS; DISSOLUTION OR LIQUIDATION; CHANGE IN CONTROL.

          Section
10.1 ADJUSTMENTS. In the event that any dividend or other distribution
(whether in the form of cash, Shares, other securities, or other property),
recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, or exchange of
Shares or other securities of the Company, or other change in the corporate
structure of the Company affecting the Shares occurs, the Administrator, in
order to prevent diminution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, will adjust the number
and class of Shares that may be delivered under the Plan and/or the number,
class, and price of Shares covered by each outstanding Award, subject to the
numerical Share limits in Section 5 of the Plan. 

          Section
10.2 DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Administrator will notify each
Participant as soon as practicable prior to the effective date of such proposed
transaction. To the extent it has not been previously exercised, an Award will
terminate immediately prior to the consummation of such proposed action. 

          Section
10.3 CHANGE IN CONTROL. 

                    (a)
In the event of a Change in Control, each outstanding Award will be treated as
the Administrator determines without a Participant’s consent, including,
without limitation, that: (i) Awards will be assumed, or substantially
equivalent Awards will be substituted, by the acquiring or succeeding
corporation (or an affiliate thereof) with appropriate adjustments as to the
number and kind of shares and prices; (ii) upon written notice to a
Participant, that the Participant’s Awards will terminate immediately prior to
the consummation of such merger or Change in Control; (iii) outstanding
Awards will vest and become exercisable, realizable, or payable, or
restrictions applicable to an Award will lapse, in whole or in part prior to or
upon consummation of such merger or Change in Control, and, to the extent the
Administrator determines, terminate upon the effectiveness of such merger of
Change in Control; (iv) (A) the termination of an Award in exchange
for an amount of cash and/or property, if any, equal to the amount that would
have been attained upon the exercise of such Award or realization of the
Participant’s rights as of the date of the occurrence of the transaction (and,
for the avoidance of doubt, if as of the date of the occurrence of the
transaction the Administrator determines in good faith that no amount would
have been attained upon the exercise of such Award or realization of the
Participant’s rights, then such Award may be terminated by the Company without
payment), or (B) the replacement of such Award with other rights or property
selected by the Administrator in its sole discretion; or (v) any 

A-13

combination of
the foregoing. In taking any of the actions permitted under this subsection
10.3, the Administrator will not be obligated to treat all Awards, all Awards
held by a Participant, or all Awards of the same type, similarly. 

                    (b)
In the event that the successor corporation does not assume or substitute for
the Award, the Participant will fully vest in and have the right to exercise
all of his or her outstanding Options and Share Appreciation Rights, including
Shares as to which such Awards would not otherwise be vested or exercisable,
all restrictions on Restricted Share and Restricted Share Units will lapse,
and, with respect to Awards with performance-based vesting, all performance
goals or other vesting criteria will be deemed achieved at one hundred percent
(100%) of target levels and all other terms and conditions met. In
addition, if an Option or Share Appreciation Right is not assumed or substituted
in the event of a Change in Control, the Administrator will notify the
Participant in writing or electronically that the Option or Share Appreciation
Right will be exercisable for a period of time determined by the Administrator
in its sole discretion, and the Option or Share Appreciation Right will
terminate upon the expiration of such period. 

ARTICLE XI

AMENDMENT, MODIFICATION AND TERMINATION

          Section
11.1 AMENDMENT, MODIFICATION AND TERMINATION. 

                    (a)
Amendment and Termination.
The Administrator may at any time amend, alter, suspend or terminate the Plan. 

                    (b)
Shareholder Approval.
The Company shall obtain shareholder approval of any Plan amendment to the
extent necessary and desirable to comply with Rule 16b-3 or with
Section 422 or Section 162(m) of the Code (or any successor rule or
statute) or other Applicable Law. Such shareholder approval, if required, shall
be obtained in such a manner and to such a degree as is required by the Applicable
Law. 

                    (c)
Effect of Amendment or Termination.
No amendment, alteration, suspension or termination of the Plan shall impair
the rights of any Grantee, unless mutually agreed otherwise between the Grantee
and the Administrator, which agreement must be in writing and signed by the
Grantee and the Company. 

          Section
11.2 AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the
Administrator may amend, modify or terminate any outstanding Award without
approval of the Participant; provided, however: 

                    (a)
Subject to the terms of the applicable Award Agreement, such amendment,
modification or termination shall not, without the Participant’s consent,
reduce or diminish the value of such Award determined as if the Award had been
exercised, vested, cashed in or otherwise settled on the date of such amendment
or termination; 

                    (b)
The original term of an Option may not be extended without the prior approval
of the shareholders of the Company; 

                    (c)
Except as otherwise provided in Section 10.1, the exercise price of an
Option may not be reduced, directly or indirectly, without the prior approval
of the shareholders of the Company; and 

A-14

                    (d)
No termination, amendment, or modification of the Plan shall adversely affect
any Award previously granted under the Plan, without the written consent of the
Participant affected thereby. An outstanding Award shall not be deemed to be
“adversely affected” by a Plan amendment if such amendment would not reduce or
diminish the value of such Award determined as if the Award had been exercised,
vested, cashed in or otherwise settled on the date of such amendment. 

          Section
11.3 COMPLIANCE AMENDMENTS. Notwithstanding anything in the Plan or in
any Award Agreement to the contrary, the Administrator may amend the Plan or an
Award Agreement, to take effect retroactively or otherwise, as deemed necessary
or advisable for the purpose of conforming the Plan or Award Agreement to any
present or future law relating to plans of this or similar nature (including,
but not limited to, Section 409A of the Code), and to the administrative
regulations and rulings promulgated thereunder. By accepting an Award under
this Plan, a Participant agrees to any amendment made pursuant to this
Section 11.3 to any Award granted under the Plan without further
consideration or action. 

ARTICLE XII

GENERAL PROVISIONS

          Section
12.1 RIGHTS OF PARTICIPANTS. 

                    (a)
No Participant or any eligible Participant shall have any claim to be granted
any Award under the Plan. Neither the Company, its Affiliates nor the
Administrator is obligated to treat Participants or eligible Participants
uniformly, and determinations made under the Plan may be made by the
Administrator selectively among eligible Participants who receive, or are
eligible to receive, Awards. 

                    (b)
Nothing in the Plan, any Award Agreement or any other document or statement
made with respect to the Plan, shall interfere with or limit in any way the
right of the Company or any Affiliate to terminate any Participant’s employment
or status as an officer, or any Participant’s service as a director or
Consultant, at any time, nor confer upon any Participant any right to continue
as an employee, officer, director or Consultant of the Company or its
Affiliates, whether for the duration of a Participant’s Award or otherwise. 

                    (c)
Neither an Award nor any benefits arising under this Plan shall constitute an
employment contract with the Company or its Affiliates and, accordingly,
subject to SECTION 11, this Plan and the benefits hereunder may be terminated
at any time in the sole and exclusive discretion of the Administrator without
giving rise to any liability on the part of the Company or any of its
Affiliates. 

                    (d)
No Award gives a Participant any of the rights of a shareholder of the Company
unless and until Shares are in fact issued to such person in connection with
such Award. 

          Section
12.2 NO LIMITATIONS ON RIGHTS OF COMPANY. The grant of any Award shall
not in any way affect the right or power of the Company to make adjustments,
reclassification or changes in its capital or business structure or to merge,
consolidate, dissolve, liquidate, sell or transfer all or any part of its
business or assets. The Plan shall not restrict the authority of the Company,
for proper corporate purposes, to draft or assume awards, other than under the
Plan, to or with respect to any person. If the Administrator so directs, the
Company may issue or transfer Shares to an Affiliate, for such lawful
consideration as the Administrator may specify, upon the condition or
understanding that the Affiliate will transfer such Shares to a Participant in
accordance with the terms of an Award granted to such Participant and specified
by the Administrator pursuant to the provisions of the Plan.

A-15

          Section
12.3 LIABILITY OF COMPANY. 

                    (a)
Inability to Obtain Authority.
The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been obtained. 

                    (b)
Grants Exceeding Allotted Shares.
If the Covered Share covered by an Award exceeds, as of the date of grant, the
number of Shares that may be issued under the Plan without additional
shareholder approval, such Award shall be void with respect to such excess
Covered Share, unless shareholder approval of an amendment sufficiently
increasing the number of Shares subject to the Plan is timely obtained in
accordance with Section 11 of the Plan. 

          Section
12.4 WITHHOLDING. The Company or its Affiliates shall have the authority
and the right to deduct or withhold, or require a Participant to remit to the
Company, an amount sufficient to satisfy federal, state, and local taxes
(including the Participant’s FICA obligation) required by law to be withheld
with respect to any exercise, lapse of restriction or other taxable event
arising as a result of the Plan. With respect to withholding required upon any
taxable event under the Plan, the Administrator may, at the time the Award is
granted or thereafter, require or permit that any such withholding requirement
be satisfied, in whole or in part, by withholding from the Award Shares having
a Fair Market Value on the date of withholding equal to the minimum amount (and
not any greater amount) required to be withheld for tax purposes, all in
accordance with such procedures as the Administrator establishes. 

          Section
12.5 GOVERNMENT AND OTHER REGULATIONS. 

                    (a)
Notwithstanding any other provision of the Plan, no Participant who acquires
Shares pursuant to the Plan may, during any period of time that such
Participant is an affiliate of the Company (within the meaning of the rules and
regulations of the Securities and Exchange Commission under the 1933 Act), sell
such Shares, unless such offer and sale is made (i) pursuant to an
effective registration statement under the 1933 Act, which is current and
includes the Shares to be sold, or (ii) pursuant to an appropriate
exemption from the registration requirement of the 1933 Act, such as that set
forth in Rule 144 promulgated under the 1933 Act. 

                    (b)
Notwithstanding any other provision of the Plan, if at any time the
Administrator shall determine that the registration, listing or qualification
of the Shares covered by an Award upon any Exchange or under any foreign,
federal, state or local law or practice, or the consent or approval of any
governmental regulatory body, is necessary or desirable as a condition of, or
in connection with, the granting of such Award or the purchase or receipt of
Shares thereunder, no Shares may be purchased, delivered or received pursuant
to such Award unless and until such registration, listing, qualification,
consent or approval shall have been effected or obtained free of any condition
not acceptable to the Administrator. Any Participant receiving or purchasing
Shares pursuant to an Award shall make such representations and agreements and
furnish such information as the Administrator may request to assure compliance
with the foregoing or any other applicable legal requirements. The Company
shall not be required to issue or deliver any certificate or certificates for
Shares under the Plan prior to the Administrator’s determination that all
related requirements have been fulfilled. The Company shall in no event be
obligated to register any securities pursuant to the 1933 Act or applicable
state or foreign law or to take any other action in order to cause the issuance
and delivery of such certificates to comply with any such law, regulation or
requirement. 

A-16

          Section
12.6 INDEMNIFICATION. Each person who is or shall have been a member of
the Administrator, or of the Board shall be indemnified and held harmless by
the Company against and from any loss, cost, liability, or expense that may be
imposed upon or reasonably incurred by him or her in connection with or
resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action taken or
failure to act under the Plan and against and from any and all amounts paid by
him or her in settlement thereof, with the Company’s approval, or paid by him
or her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity,
at its own expense, to handle and defend the same before he or she undertakes
to handle and defend it on his or her own behalf, unless such loss, cost,
liability, or expense is a result of his or her own willful misconduct or
except as expressly provided by statute. The foregoing right of indemnification
shall not be exclusive of any other rights of indemnification to which such
persons may be entitled under the Company’s Charter or bylaws, as a matter of
law, or otherwise, or any power that the Company may have to indemnify them or
hold them harmless.

          Section
12.7 RESERVATION OF SHARES. The Company, during the term of the Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. 

          Section
12.8 FRACTIONAL SHARES. No fractional Shares shall be issued and the
Administrator shall determine, in its discretion, whether cash shall be given
in lieu of fractional Shares or whether such fractional Shares shall be
eliminated by rounding up or down. 

          Section
12.9 SUB-PLANS FOR FOREIGN SUBSIDIARIES. The Board may adopt sub-plans
applicable to particular foreign Subsidiaries. All Awards granted under such
sub-plans shall be treated as grants under the Plan. The rules of such
sub-plans may take precedence over other provisions of the Plan, with the
exception of Section 5, but unless otherwise superseded by the terms of
such sub-plan, the provisions of the Plan shall govern the operation of such
sub-plan. 

          Section
12.10 GOVERNING LAW. To the extent not governed by federal law, the Plan
and all Award Agreements shall be construed in accordance with and governed by
the laws of the Cayman Islands, without reference to the principles of conflict
of laws.

          Section
12.11 RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be
taken into account in determining any benefits under any pension, retirement,
savings, profit sharing, group insurance, welfare or benefit plan of the
Company or its Affiliates unless provided otherwise in such other plan. 

          Section
12.12 EXPENSES. The expenses of administering the Plan shall be borne by
the Company and its Affiliates. 

          Section
12.13 TITLES AND HEADINGS. The titles and headings of the Sections in
the Plan are for convenience of reference only, and in the event of any
conflict, the text of the Plan, rather than such titles or headings, shall
control. 

          Section
12.14 GENDER AND NUMBER. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine; the plural
shall include the singular and the singular shall include the plural. 

          Section
12.15 NO GUARANTEE OF TAX CONSEQUENCES. No person connected with the
Plan in any capacity, including, but not limited to, the Company and its
directors, officers, agents and 

A-17

employees,
makes any representation, commitment, or guarantee that any tax treatment,
including, but not limited to, federal, state and local income, estate and gift
tax treatment, will be applicable with respect to the tax treatment of any
Award, any amounts deferred under the Plan, or paid to or for the benefit of a
Participant under the Plan, or that such tax treatment will apply to or be
available to a Participant on account of participation in the Plan.

A-18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]