Document:

Exhibit 10.24

[FORM OF
INDEMNIFICATION AGREEMENT]

TRAFFIC.COM, INC.

DIRECTOR AND OFFICER INDEMNIFICATION AGREEMENT

This Director and Officer
Indemnification Agreement, dated as of ______________, 2006 (this “Agreement”), is made by and between
Traffic.com, Inc., a Delaware corporation (the “Company”),
and __________________ (the “Indemnitee”).

RECITALS:

A.            Section 141 of the Delaware General Corporation Law
provides that the business and affairs of a corporation shall be managed by or
under the direction of its board of directors.

B.            By virtue of the managerial prerogatives vested in the
directors and officers of a Delaware corporation, directors and officers act as
fiduciaries of the corporation and its stockholders.

C.            Thus, it is critically important to the Company and its
stockholders that the Company be able to attract and retain the most capable
persons reasonably available to serve as directors and officers of the Company.

D.            In recognition of the need for corporations to be able to
induce capable and responsible persons to accept positions in corporate
management, Delaware law authorizes (and in some instances requires)
corporations to indemnify their directors and officers, and further authorizes
corporations to purchase and maintain insurance for the benefit of their
directors and officers.

E.             The Delaware courts have recognized that indemnification
by a corporation serves the dual policies of (1) allowing corporate
officials to resist unjustified lawsuits, secure in the knowledge that, if
vindicated, the corporation will bear the expense of litigation, and (2) encouraging
capable women and men to serve as corporate directors and officers, secure in
the knowledge that the corporation will absorb the costs of defending their
honesty and integrity.

F.             The number of lawsuits challenging the judgment and
actions of directors and officers of Delaware corporations, the costs of
defending those lawsuits and the threat to personal assets have all materially
increased over the past several years, chilling the willingness of capable
women and men to undertake the responsibilities imposed on corporate directors
and officers.

G.            Recent federal legislation and rules adopted by the
Securities and Exchange Commission and the national securities exchanges have
exposed such directors and officers to new and substantially broadened civil
liabilities.

H.            Under Delaware law, a director’s or officer’s right to be
reimbursed for the costs of defense of criminal actions, whether such claims
are asserted under state or federal law, does not depend upon the merits of the
claims asserted against the director or officer and is separate and distinct
from any right to indemnification the director may be able to establish.

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I.              Indemnitee is, or will be, a director and/or officer of
the Company and his or her willingness to serve in such capacity is predicated,
in substantial part, upon the Company’s willingness to indemnify him or her in
accordance with the principles reflected above, to the fullest extent permitted
by the laws of the State of Delaware, and upon the other undertakings set forth
in this Agreement.

J.             The Company’s Fifth Amended and Restated Certificate of
Incorporation provides the Company with the express authority to enter into
such agreements with the Company’s officers and directors as the Company’s
board of directors deems appropriate for the indemnification of such persons as
well as the advancement of expenses in connection therewith.

K.            Therefore, in recognition of the need to provide
Indemnitee with substantial protection against personal liability, in order to
procure Indemnitee’s continued service as a director and/or officer of the
Company and to enhance Indemnitee’s ability to serve the Company in an
effective manner, and in order to provide such protection pursuant to express
contract rights (intended to be enforceable irrespective of, among other
things, any amendment to the Company’s certificate of incorporation or bylaws
(collectively, the “Constituent
Documents”), any change in the composition of the Company’s
Board of Directors (the “Board”)
or any change-in-control or business combination transaction
relating to the Company), the Company wishes to provide in this Agreement for
the indemnification and advancement of Expenses to Indemnitee on the terms, and
subject to the conditions, set forth in this Agreement,

L.             In light of the considerations referred to in the
preceding recitals, it is the Company’s intention and desire that the
provisions of this Agreement be construed liberally, subject to their express
terms, to maximize the protections to be provided to Indemnitee hereunder.

AGREEMENT:

NOW, THEREFORE, the parties hereby agree as follows:

1.             Certain
Definitions. In addition to terms defined elsewhere herein, the following
terms have the following meanings when used in this Agreement with initial
capital letters:

(a)      “Change
in Control” shall have
occurred at such time, if any, as Incumbent Directors cease for any reason to
constitute a majority of Directors. For purposes of this Section 1(a), “Incumbent Directors” means
the individuals who, as of the date hereof, are Directors of the Company and
any individual becoming a Director subsequent to the date hereof whose
election, nomination for election by the Company’s stockholders, or
appointment, was approved by a vote of at least a majority of the then
Incumbent Directors (either by a specific vote or by approval of the proxy
statement of the Company in which such person is named as a nominee for
director, without objection to such nomination); provided, however,
that an individual shall not be an Incumbent Director if such
individual’s election or appointment to the Board occurs as a result of an
actual or threatened election contest (as described in Rule 14a-12(c) of
the Securities Exchange Act of 1934, as amended) with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board.

(b)      “Claim” means (i) any threatened, asserted, pending or
completed claim, demand, action, suit or proceeding, whether civil, criminal,
administrative, arbitrative, investigative or other, and whether made pursuant
to federal, state or other law; and (ii) any inquiry or 

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investigation, whether
made, instituted or conducted by the Company or any other Person, including,
without limitation, any federal, state or other governmental entity, that
Indemnitee reasonably determines might lead to the institution of any such
claim, demand, action, suit or proceeding. For the avoidance of doubt, the
Company intends indemnity to be provided hereunder
in respect of acts or failure to act prior to, on or after the date hereof.

(c)      “Controlled
Affiliate” means any
corporation, limited liability company, partnership, joint venture, trust or
other entity or enterprise, whether or not for profit, that is directly or
indirectly controlled by the Company. For purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of an entity or enterprise, whether
through the ownership of voting securities, through other voting rights, by
contract or otherwise; provided that
direct or indirect beneficial ownership of capital stock or other interests in
an entity or enterprise entitling the holder to cast 15% or more of the total
number of votes generally entitled to be cast in the election of directors (or
persons performing comparable functions) of such entity or enterprise shall be
deemed to constitute control for purposes of this definition.

(d)      “Disinterested
Director” means a
director of the Company who is not and was not a party to the Claim in respect
of which indemnification is sought by Indemnitee.

(e)      “Expenses” means verified attorneys’ and experts’ fees and expenses
and all other verified costs and expenses paid or payable in connection with
investigating, defending, being a witness in or participating in (including on
appeal), or preparing to investigate, defend, be a witness in or participate in
(including on appeal), any Claim.

(f)       “Indemnifiable
Claim” means any
Claim based upon, arising out of or resulting from (i) any actual, alleged
or suspected act or failure to act by Indemnitee in his or her capacity as a
director, officer, employee or agent of the Company or as a director, officer,
employee, member, manager, trustee or agent of any other corporation, limited
liability company, partnership, joint venture, trust or other entity or
enterprise, whether or not for profit, as to which Indemnitee is or was serving
at the request of the Company, (ii) any actual, alleged or suspected act
or failure to act by Indemnitee in respect of any business, transaction,
communication, filing, disclosure or other activity of the Company or any other
entity or enterprise referred to in clause (i) of this sentence, or (iii) Indemnitee’s
status as a current or former director, officer, employee or agent of the
Company or as a current or former director, officer, employee, member, manager,
trustee or agent of the Company or any other entity or enterprise referred to
in clause (i) of this sentence or any actual, alleged or suspected act or
failure to act by Indemnitee in connection with any obligation or restriction
imposed upon Indemnitee by reason of such status. In addition to any service at
the actual request of the Company, for purposes of this Agreement, Indemnitee
shall be deemed to be serving or to have served at the request of the Company
as a director, officer, employee, member, manager, trustee or agent of another
entity or enterprise if Indemnitee is or was serving as a director, officer,
employee, member, manager, agent, trustee or other fiduciary of such entity or
enterprise and (i) such entity or enterprise is or at the time of such
service was a Controlled Affiliate, (ii) such entity or enterprise is or
at the time of such service was an employee benefit plan (or related trust)
sponsored or maintained by the Company or a Controlled Affiliate, or (iii) the
Company or a Controlled Affiliate (by action of the Board, any committee
thereof or the Company’s Chief Executive Officer (“CEO”) (other than as the CEO
him or herself)) caused or authorized Indemnitee to be nominated, elected,
appointed, designated, employed, engaged or selected to serve in such capacity.

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(g)      “Indemnifiable
Losses” means any and
all Losses relating to, arising out of or resulting from any Indemnifiable
Claim; provided, however, that Indemnifiable
Losses shall not include Losses incurred by Indemnitee in respect of any
Indemnifiable Claim (or any matter or issue therein) as to which Indemnitee
shall have been adjudged liable to the Company, unless and only to the extent
that the Delaware Court of Chancery or the court in which such Indemnifiable
Claim was brought shall have determined upon application that, despite the
adjudication of liability but in view of all the circumstances of the case,
Indemnitee is fairly and reasonably entitled to indemnification for such
Expenses as the court shall deem proper.

(h)      “Independent
Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of Delaware corporate law and neither presently is, nor
in the past five years has been, retained to represent: (i) the Company
(or any subsidiary) or Indemnitee in any matter material to either such party
(other than with respect to matters concerning the Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements) or
(ii) any other named (or, as to a threatened matter, reasonably likely to
be named) party to the Indemnifiable Claim giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement.

(i)       “Losses” means any and all Expenses, damages, losses, liabilities,
judgments, fines, penalties (whether civil, criminal or other) and amounts paid
or payable in settlement, including, without limitation, all interest,
assessments and other charges paid or payable in connection with or in respect
of any of the foregoing.

(j)       “Person” means any individual, entity or group, within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
of 1934, as amended.

(k)       “Standard
of Conduct” means the
standard for conduct by Indemnitee that is a condition precedent to
indemnification of Indemnitee hereunder against Indemnifiable Losses relating
to, arising out of or resulting from an Indemnifable Claim. The Standard of
Conduct is (i) good faith and a reasonable belief by Indemnitee that his
action was in or not opposed to the best interests of the Company and, with
respect to any criminal action or proceeding, that Indemnitee had no reasonable
cause to believe that his conduct was unlawful, or (ii) any other
applicable standard of conduct that may hereafter be substituted under Section 145(a) or
(b) of the Delaware General Corporation Law or any successor to such
provision(s).

2.             Indemnification
Obligation. Subject only to Section 7 and to the proviso in this
Section, the Company shall indemnify, defend and hold harmless Indemnitee, to
the fullest extent permitted, required or not prohibited by the laws of the
State of Delaware in effect on the date hereof or as such laws may from time to
time hereafter be amended to increase the scope of such permitted
indemnification, against any and all Indemnifable Claims and Indemnifiable
Losses; provided, however, that,
except as provided in Section 5, Indemnitee shall not be entitled to
indemnification pursuant to this Agreement in connection with (i) any
Claim initiated by Indemnitee against the Company or any director or officer of
the Company unless the Company has joined in or consented to the initiation of
such Claim, or (ii) the purchase and sale by Indemnitee of securities in
violation of Section 16(b) of the Securities Exchange Act of 1934, as
amended. The Company acknowledges that the foregoing obligation may be broader
than that now provided by applicable law and the Company’s 

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Constituent Documents and intends that it be
interpreted consistently with this Section and the recitals to this
Agreement.

3.             Advancement of
Expenses. Indemnitee shall have the right to advancement by the Company
prior to the final disposition of any Indemnifiable Claim of any and all   Expenses relating to, arising out of or
resulting from any Indemnifiable Claim paid or incurred by Indemnitee. Without
limiting the generality or effect of any other provision hereof, Indemnitee’s
right to such advancement is not subject to the satisfaction of any Standard of
Conduct. Without limiting the generality or effect of the foregoing, within
five business days after any request by Indemnitee that is accompanied by
supporting documentation for specific  Expenses to be reimbursed or advanced, the
Company shall, in accordance with such request (but without duplication), (a) pay
such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in
an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for
such Expenses; provided that
Indemnitee shall repay, without interest, any amounts actually advanced to
Indemnitee that, at the final disposition of the Indemnifiable Claim to which
the advance related, were in excess of amounts paid or payable by Indemnitee in
respect of Expenses relating to, arising out of or resulting from such
Indemnifiable Claim. In connection with any such payment, advancement or
reimbursement, at the request of the Company, Indemnitee shall execute and
deliver to the Company an undertaking, which need not be secured and shall be
accepted without reference to Indemnitee’s ability to repay the Expenses, by or
on behalf of the Indemnitee, to repay any amounts paid, advanced or reimbursed
by the Company in respect of Expenses relating to, arising out of or resulting
from any Indemnifiable Claim in respect of which it shall have been determined,
following the final disposition of such Indemnifiable Claim and in accordance
with Section 7, that Indemnitee is not entitled to indemnification
hereunder. Notwithstanding anything to the contrary contained herein,
Indemnitee shall repay any amounts paid, advanced or reimbursed by the Company
if any portion of Expenses previously paid, advanced, or reimbursed by the
Company is ultimately deemed by a court of competent jurisdiction, after final
disposition of the subject Indemnifiable Claim, to be in excess of the amount
of Expenses that would have been reasonable with respect to the Indemnifiable
Claim.

4.             Indemnification
for Additional Expenses. Without limiting the generality or effect of the
foregoing, the Company shall indemnify and hold harmless Indemnitee against
and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to
Indemnitee, within five business days of such request accompanied by supporting
documentation for specific Expenses to be reimbursed or advanced, any and all
actual and Expenses paid or incurred by Indemnitee in connection with any Claim
made, instituted or conducted by Indemnitee for (a) indemnification or
reimbursement or advance payment of Expenses by the Company under any provision of this Agreement, or under
any other agreement or provision of the Constituent Documents now or hereafter
in effect relating to Indemnifiable Claims, and/or (b) recovery under any
directors’ and officers’ liability insurance policies maintained by the
Company; provided, however, if it
is ultimately determined that the Indemnitee is not entitled to such
indemnification, reimbursement, advance or insurance recovery, as the case may
be, then the Indemnitee shall be obligated to repay any such Expenses to the
Company; provided further, that,
regardless in each case of whether Indemnitee ultimately is determined to be
entitled to such indemnification, reimbursement, advance or insurance recovery,
as the case may be, Indemnitee shall return, without interest, any such advance
of Expenses (or portion thereof) which remains unspent at the final disposition
of the Claim to which the advance related.

5.             Partial
Indemnity. If Indemnitee is entitled under any provision of this Agreement
to indemnification by the Company for some or a portion of any Indemnifable
Loss but not for all of the 

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total amount thereof, the Company shall nevertheless
indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

6.             Procedure for
Notification. To obtain indemnification under this Agreement in respect of
an Indemnifiable Claim or Indemnifiable Loss, Indemnitee shall submit to the
Company a written request therefore, including a brief description (based upon
information then available to Indemnitee) of such Indemnifiable Claim or
Indemnifable Loss. If, at the time of the receipt of such request, the Company
has directors’ and officers’ liability insurance in effect under which coverage
for such Indemnifiable Claim or Indemnifable Loss is potentially available, the
Company shall give prompt written notice of such Indemnifable Claim or
Indemnifiable Loss to the applicable insurers in accordance with the procedures
set forth in the applicable policies. The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all Indemnifiable Claims and Indemnifiable Losses in accordance
with the terms of such policies. The Company shall provide to Indemnitee a copy
of such notice delivered to the applicable insurers, substantially concurrently
with the delivery thereof by the Company. The failure by Indemnitee to timely
notify the Company of any Indemnifable Claim or Indemnifiable Loss shall not
relieve the Company from any liability hereunder unless, and only to the extent
that, the Company did not otherwise learn of such Indemnifiable Claim or
Indemnifiable Loss and to the extent that such failure results in forfeiture by
the Company of substantial defenses, rights or insurance coverage.

7.             Determination of
Right to Indemnification.

(a)      To the extent that Indemnitee shall have
been successful on the merits or otherwise in defense of any Indemnifable Claim
or any portion thereof or in defense of any issue or matter therein, including,
without limitation, dismissal without prejudice, Indemnitee shall be
indemnified against all Indemnifable Losses relating to, arising out of or
resulting from such Indemnifiable Claim in accordance with Section 2 and
no Standard of Conduct Determination (as defined in Section 7(b)) shall be
required.

(b)      To the extent that the provisions of Section 7(a) are
inapplicable to an Indemnifiable Claim that shall have been finally disposed
of, any determination of whether Indemnitee has satisfied the applicable
Standard of Conduct (a “Standard of
Conduct Determination”) shall be made as follows: (i) if
a Change in Control shall not have occurred, or if a Change in Control shall
have occurred but Indemnitee shall have requested that the Standard of Conduct
Determination be made pursuant to this clause (i), (A) by a majority vote
of the Disinterested Directors, even if less than a quorum of the Board, (B) if
such Disinterested Directors so direct, by a majority vote of a committee of
Disinterested Directors designated by a majority vote of all Disinterested
Directors, or (C) if there are no such Disinterested Directors, or if a
majority of the Disinterested Directors so direct, by Independent Counsel in a
written opinion addressed to the Board, a copy of which shall be delivered to
Indemnitee; and (ii) if a Change in Control shall have occurred and
Indemnitee shall not have requested that the Standard of Conduct Determination
be made pursuant to clause (i) above, by Independent Counsel in a written
opinion addressed to the Board, a copy of which shall be delivered to
Indemnitee.

(c)      If (i) Indemnitee shall be entitled
to indemnification hereunder against any Indemnifiable Losses pursuant to Section 7(a),
(ii) no determination of whether Indemnitee has satisfied any applicable
standard of conduct under Delaware law is a legally required condition
precedent to indemnification of Indemnitee hereunder against any Indemnifiable
Losses, or (iii) Indemnitee has been determined or deemed pursuant to Section 7(h) to
have satisfied the applicable 

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Standard of Conduct, then
the Company shall pay to Indemnitee, within five business days after the later
of (x) the Notification Date in respect of the Indemnifiable Claim or
portion thereof to which such Indemnifiable Losses are related, out of which
such Indemnifiable Losses arose or from which such Indemnifiable Losses resulted,
and (y) the earliest date on which the applicable criterion specified in
clause (i), (ii) or (iii) above shall have been satisfied, an amount
equal to the amount of such Indemnifiable Losses, Nothing herein is intended to
mean or imply that the Company is intending to use Section 145(f) of
the Delaware General Corporation Law to dispense with a requirement that
Indemnitee meet the applicable Standard of Conduct where it is otherwise
required by such statute.

(d)      If a Standard of Conduct Determination is required
to be, but has not been, made by Independent Counsel pursuant to Section 7(b)(i),
the Independent Counsel shall be selected by the Board or a committee of the
Board, and the Company shall give written notice to Indemnitee advising him or
her of the identity
of the Independent Counsel so selected. If a Standard of Conduct Determination
is required to be, or to have been, made by Independent Counsel pursuant to Section 7(b)(ii),
the Independent Counsel shall be selected by Indemnitee, and Indemnitee shall
give written notice to the Company advising it of the identity of the
Independent Counsel so selected. In either case, Indemnitee or the Company, as
applicable, may, within five business days after receiving written notice of
selection from the other, deliver to the other a written objection to such
selection; provided, however, that such objection
may be asserted only on the ground that the Independent Counsel so selected
does not satisfy the criteria set forth in the definition of “Independent Counsel”
in Section 1(h), and the objection shall set forth with particularity the
factual basis of such assertion. Absent a proper and timely objection, the
Person so selected shall act as Independent Counsel. If such written objection
is properly and timely made and substantiated, (i) the Independent Counsel
so selected may not serve as Independent Counsel unless and until such
objection is withdrawn or a court has determined that such objection is without
merit and (ii) the non-objecting party may, at its option, select an
alternative Independent Counsel and give written notice to the other party
advising such other party of the identity of the alternative Independent
Counsel so selected, in which case the provisions of the two immediately
preceding sentences and clause (i) of this sentence shall apply to such
subsequent selection and notice. If applicable, the provisions of clause (ii) of
the immediately preceding sentence shall apply to successive alternative
selections. If no Independent Counsel that is permitted under the foregoing
provisions of this Section 7(d) to make the Standard of Conduct
Determination shall have been selected within 30 calendar days after the
Company gives its initial notice pursuant to the first sentence of this Section 7(d) or
Indemnitee gives its initial notice pursuant to the second sentence of this Section 7(d),
as the case may be, either the Company or Indemnitee may petition the Court of
Chancery of the State of Delaware for resolution of any objection which shall
have been made by the Company or Indemnitee to the other’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a
person or firm selected by the Court or by such other person as the Court shall
designate, and the person or firm with respect to whom all objections are so
resolved or the person or firm so appointed will act as Independent Counsel. In
all events, the Company shall pay all of the actual and reasonable fees and
expenses of the Independent Counsel incurred in connection with the Independent
Counsel’s determination pursuant to Section 7(b).

8.             Cooperation.
Indemnitee shall cooperate with reasonable requests of the Company in
connection with any Indemnifiable Claim and any individual or firm making such
Standard of Conduct Determination, including providing to such Person
documentation or information which is not privileged or otherwise protected
from disclosure and which is reasonably available to Indemnitee 

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and reasonably necessary to defend the Indemnifiable
Claim or make any Standard of Conduct Determination without incurring any
unreimbursed cost in connection therewith, The Company shall indemnify and hold
harmless Indemnitee against and, if requested by Indemnitee, shall reimburse
Indemnitee for, or advance to Indemnitee, within five business days of such
request accompanied by supporting documentation for specific costs and expenses
to be reimbursed or advanced, any and all costs and expenses (including
attorneys’ and experts’ fees and expenses) actually and reasonably incurred by
Indemnitee in so cooperating with the Person defending the Indemnifiable Claim
or making such Standard of Conduct Determination.

9.             Presumption of
Entitlement. Notwithstanding any other provision hereof, in making any
Standard of Conduct Determination, the Person making such determination shall
presume that Indemnitee has satisfied the applicable Standard of Conduct.

10.           No Other
Presumption. For purposes of this Agreement, the termination of any Claim
by judgment, order, settlement (whether with or without court approval) or
conviction, or upon a plea of nolo contendere or its equivalent, will not
create a presumption that Indemnitee did not meet any applicable Standard of
Conduct or that indemnification hereunder is otherwise not permitted.

11.           Non-Exclusivity.
The rights of Indemnitee hereunder will be in addition to any other rights
Indemnitee may have under the Constituent Documents, or the substantive laws of
the State of Delaware, any other contract or otherwise (collectively, “Other Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise
would have any greater right to indemnification under any Other Indemnity
Provision, Indemnitee will without further action be deemed to have such
greater right hereunder, and (b) to the extent that any change is made to
any Other Indemnity Provision which permits any greater right to
indemnification than that provided under this Agreement as of the date hereof,
Indemnitee will be deemed to have such greater right hereunder, The Company may
not, without the consent of Indemnitee, adopt any amendment to any of the
Constituent Documents the effect of which would be to deny, diminish or
encumber Indemnitee’s right to indemnification under this Agreement.

12.           Liability
Insurance and Funding. For the duration of Indemnitee’s service as a
director and/or officer of the Company and for a reasonable period of time
thereafter, which such period shall be determined by the Company in its sole
discretion, the Company shall use commercially reasonable efforts (taking into
account the scope and amount of coverage available relative to the cost
thereof) to cause to be maintained in effect policies of directors’ and
officers’ liability insurance providing coverage for directors and/or officers
of the Company, and, if applicable, that is, at least, substantially comparable
in scope and amount to that provided by the Company’s current policies of directors’ and officers’
liability insurance, Upon reasonable request, the Company shall provide Indemnitee
or his or her counsel with a copy of all directors’ and officers’ liability
insurance applications, binders, policies, declarations, endorsements and other
related materials. In all policies of directors’ and officers’ liability
insurance obtained by the Company, Indemnitee shall be named as an insured in
such a manner as to provide Indemnitee the same rights and benefits, subject to
the same limitations, as are accorded to the Company’s directors and officers
most favorably insured by such policy. Notwithstanding the foregoing, (i) the
Company may, but shall not be required to, create a trust fund, grant a
security interest or use other means, including, without limitation, a letter
of credit, to ensure the payment of such amounts as may be necessary to satisfy
its obligations to indemnify and advance expenses pursuant to this Agreement
and (ii) in renewing or seeking to renew any insurance hereunder, the
Company will not be required to expend more than 2.0 times the premium amount
of 

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the immediately preceding policy period (equitably
adjusted if necessary to reflect differences in policy periods).

13.           Subrogation.
In the event of payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the related rights of recovery of
Indemnitee against other Persons (other than Indemnitee’s successors),
including any entity or enterprise referred to in clause (i) of the
definition of “Indemnifiable Claim” in Section 1(f). Indemnitee shall
execute all papers reasonably required to evidence such rights (all of
Indemnitee’s reasonable Expenses, including attorneys’ fees and charges,
related thereto to be reimbursed by or, at the option of Indemnitee, advanced
by the Company).

14.           No Duplication of
Payments. The Company shall not be liable under this Agreement to make any
payment to Indemnitee in respect of any Indemnifable Losses to the extent
Indemnitee has otherwise already actually received payment (net of Expenses
incurred in connection therewith) under any insurance policy, the Constituent
Documents and Other Indemnity Provisions or otherwise (including from any
entity or enterprise referred to in clause (i) of the definition of “Indemnifable
Claim” in Section 1(f)) in respect of such Indemnifiable Losses otherwise
indemnifiable hereunder.

15.           Defense of Claims.
Subject to the provisions of applicable policies of directors’ and officers’
liability insurance, if any, the Company shall be entitled to participate in
the defense of any Indemnifiable Claim or to assume or lead the defense thereof
with counsel reasonably satisfactory to the Indemnitee; provided that if Indemnitee determines,
after consultation with counsel selected by Indemnitee, that (a) the use
of counsel chosen by the Company to represent Indemnitee would present such
counsel with an actual or potential conflict, (b) the named parties in any
such Indemnifiable Claim (including any impleaded parties) include both the
Company and Indemnitee and Indemnitee shall conclude that there may be one or
more legal defenses available to him or her that are different from or in
addition to those available to the Company, (c) any such representation by
such counsel would be precluded under the applicable standards of professional
conduct then prevailing, or (d) Indemnitee has interests in the claim or
underlying subject matter that are different from or in addition to those of
other Persons against whom the Claim has been made or might reasonably be
expected to be made, then Indemnitee shall be entitled to retain separate counsel
(but not more than one law firm plus, if applicable, local counsel in respect
of any particular Indemnifiable Claim for all indemnitees in Indemnitee’s
circumstances) at the Company’s expense. The Company shall not be liable to
Indemnitee under this Agreement for any amounts paid in settlement of any
threatened or pending Indemnifiable Claim effected without the Company’s prior
written consent. The Company shall not, without the prior written consent of
the Indemnitee, effect any settlement of any threatened or pending
Indemnifiable Claim which the Indemnitee is or could have been a party unless
such settlement solely involves the payment of money and includes a complete
and unconditional release of the Indemnitee from all liability on any claims
that are the subject matter of such Indemnifiable Claim. Neither the Company
nor Indemnitee shall unreasonably withhold its consent to any proposed
settlement; provided that
Indemnitee may withhold consent to any settlement that does not provide a
complete and unconditional release of Indemnitee.

16.           Mutual
Acknowledgment. Both the Company and the Indemnitee acknowledge that in
certain instances, Federal law or applicable public policy may prohibit the
Company from indemnifying its directors and officers under this Agreement or
otherwise. Indemnitee understands and acknowledges that the Company may be
required in the future to provide an undertaking to the Securities and Exchange
Commission whereby the Company would be required to submit the question of
indemnification to a court of competent jurisdiction in certain circumstances
for a 

 9
 

 

determination of the Company’s right under public
policy to indemnify Indemnitee and, in that event, the Indemnitee’s rights and
the Company’s obligations hereunder shall be subject to that determination.

17.           Successors and
Binding Agreement.

(a)      This Agreement shall be binding upon and
inure to the benefit of the Company and any successor to the Company,
including, without limitation, any Person acquiring directly or indirectly all
or a substantial portion / majority?  of
the business or assets of the Company whether by purchase, merger,
consolidation, reorganization or otherwise (and such successor will thereafter
be deemed the “Company” for purposes of this Agreement), but shall not otherwise
be assignable or delegatable by the Company.

(b)      This Agreement shall inure to the benefit
of and be enforceable by the Indemnitee’s personal or legal representatives,
executors, administrators, heirs, distributees, legatees and other successors.

(c)      This Agreement is personal in nature and
neither of the parties hereto shall, without the consent of the other, assign
or delegate this Agreement or any rights or obligations hereunder except as
expressly provided in Sections 17(a) and 17(b). Without limiting the
generality or effect of the foregoing, Indemnitee’s right to receive payments
hereunder shall not be assignable, whether by pledge, creation of a security
interest or otherwise, other than by a transfer by the Indemnitee’s will or by
the laws of descent and distribution, and, in the event of any attempted
assignment or transfer contrary to this Section 17(c), the Company shall
have no liability to pay any amount so attempted to be assigned or transferred.

18.           Notices. For
all purposes of this Agreement, all communications, including without
limitation notices, consents, requests or approvals, required or permitted to
be given hereunder must be in writing and shall be deemed to have been duly
given when hand delivered or dispatched by electronic facsimile transmission
(with receipt thereof orally confirmed), or one business day after having been
sent for next-day delivery by a nationally recognized overnight courier
service, addressed to the Company (to the attention of the Secretary of the
Company) and to Indemnitee at the applicable address shown on the signature page hereto,
or to such other address as any party may have furnished to the other in
writing and in accordance herewith, except that notices of changes of address
will be effective only upon receipt.

19.           Governing Law.
The validity, interpretation, construction and performance of this Agreement
shall be governed by and construed in accordance with the substantive laws of
the State of Delaware, without giving effect to the principles of conflict of
laws of such State. The Company and Indemnitee each hereby irrevocably consent
to the jurisdiction of the Chancery Court of the State of Delaware for all
purposes in connection with any action or proceeding which arises out of or
relates to this Agreement, waive all procedural objections to suit in that
jurisdiction, including, without limitation, objections as to venue or
inconvenience, agree that service in any such action may be made by notice
given in accordance with Section 18 and also agree that any action
instituted under this Agreement shall be brought only in the Chancery Court of
the State of Delaware.

20.           Validity. If
any provision of this Agreement or the application of any provision hereof to
any Person or circumstance is held invalid, unenforceable or otherwise illegal,
the remainder of this Agreement and the application of such provision to any
other Person or circumstance shall not be 

 10
 

 

affected, and the provision so held to be invalid,
unenforceable or otherwise illegal shall be reformed to the extent, and only to
the extent, necessary to make it enforceable, valid or legal. In the event that
any court or other adjudicative body shall decline to reform any provision of
this Agreement held to be invalid, unenforceable or otherwise illegal as
contemplated by the immediately preceding sentence, the parties thereto shall
take all such action as may be necessary or appropriate to replace the
provision so held to be invalid, unenforceable or otherwise illegal with one or
more alternative provisions that effectuate the purpose and intent of the
original provisions of this Agreement as fully as possible without being
invalid, unenforceable or otherwise illegal.

21.           Miscellaneous.
No provision of this Agreement may be waived, modified or discharged unless
such waiver, modification or discharge is agreed to in writing signed by
Indemnitee and the Company. No waiver by either party hereto at any time of any
breach by the other party hereto or compliance with any condition or provision
of this Agreement to be performed by such other party shall be deemed a waiver
of similar or dissimilar provisions or conditions at the same or at any prior
or subsequent time. No agreements or representations, oral or otherwise,
expressed or implied with respect to the subject matter hereof have been made
by either party that are not set forth expressly in this Agreement.

22.           Certain
Interpretive Matters. Unless the context of this Agreement otherwise
requires, (1) “it” or “its” or words of any gender include each other
gender, (2) words using the singular or plural number also include the
plural or singular number, respectively, (3) the terms “hereof,” “herein,”
“hereby” and derivative or similar words refer to this entire Agreement, (4) the
terms “Article,” “Section,” “Annex” or “Exhibit” refer to the specified
Article, Section, Annex or Exhibit of or to this Agreement, (5) the
terms “include,” “includes” and “including” will be deemed to be followed by
the words “without limitation” (whether or not so expressed), and (6) the
word “or” is disjunctive but not exclusive, Whenever this Agreement refers to a
number of days, such number will refer to calendar days unless business days
are specified and whenever action must be taken (including the giving of notice
or the delivery of documents) under this Agreement during a certain period of
time or by a particular date that ends or occurs on a non-business day, then
such period or date will be extended until the immediately following business
day. As used herein, “business
day” means any day other than Saturday, Sunday or a United
States federal holiday.

23.           Entire Agreement.
This Agreement constitutes the entire agreement and supersedes all prior
agreements and understandings, both written and oral, between the parties hereto
with respect to the subject matter of this Agreement. Any prior agreements or
understandings between the parties hereto with respect to indemnification are
hereby terminated and of no further force or effect. This Agreement is not the
exclusive means of securing indemnification rights of Indemnitee and is in
addition to any rights Indemnitee may have under any Constituent Documents.

24.           Counterparts.
This Agreement may be executed in one or more counterparts, each of which will
be deemed to be an original but all of which together shall constitute one and
the same agreement.

 11
 

 

IN WITNESS WHEREOF, Indemnitee has executed and the Company has caused
its duly authorized representative to execute this Agreement as of the date
first above written.

	
  

  	
  TRAFFIC.COM, INC.

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Address:

  

 

Signature
Page to Director and Officer Indemnification Agreement

 12Exhibit 10.1
 

 

CHEMTURA CORPORATION,

 

as Issuer,

 

 

the GUARANTORS named herein

 

 

and

 

 

WELLS FARGO BANK, N.A.,

 

as Trustee

 

 

 

INDENTURE

 

Dated as of April 24, 2006

 

 

   
 

 

 

CROSS-REFERENCE
TABLE

Reconciliation and tie between Trust Indenture Act

of 1939 and Indenture, dated as of April 24, 2006

	
  TIA

  	
   

  	
   

  	
   

  	
  Indenture

  
	
  Section

  	
   

  	
   

  	
   

  	
  Section

  
	
  § 310

  	
   

  	
  (a)(1)

  	
   

  	
  608

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  608

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  613

  
	
   

  	
   

  	
  (b)

  	
   

  	
  609

  
	
  § 312

  	
   

  	
  (a)

  	
   

  	
  701

  
	
   

  	
   

  	
  (b)

  	
   

  	
  701

  
	
   

  	
   

  	
  (c)

  	
   

  	
  701

  
	
  § 313

  	
   

  	
  (a)

  	
   

  	
  702

  
	
   

  	
   

  	
  (b)

  	
   

  	
  702

  
	
   

  	
   

  	
  (c)

  	
   

  	
  602, 702, 703

  
	
  § 314

  	
   

  	
  (a)(1)-(3)

  	
   

  	
  703

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  1004

  
	
   

  	
   

  	
  (c)(1)

  	
   

  	
  102

  
	
   

  	
   

  	
  (c)(2)

  	
   

  	
  102

  
	
   

  	
   

  	
  (e)

  	
   

  	
  102

  
	
  § 315

  	
   

  	
  (b)

  	
   

  	
  602

  
	
  § 316

  	
   

  	
  (a)(last
  sentence)

  	
   

  	
  101 (“Outstanding”)

  
	
   

  	
   

  	
  (a)(1)(A)

  	
   

  	
  502, 512

  
	
   

  	
   

  	
  (a)(1)(B)

  	
   

  	
  513

  
	
   

  	
   

  	
  (b)

  	
   

  	
  508

  
	
   

  	
   

  	
  (c)

  	
   

  	
  104

  
	
  § 317

  	
   

  	
  (a)(1)

  	
   

  	
  503

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  504

  
	
   

  	
   

  	
  (b)

  	
   

  	
  1003

  
	
  § 318

  	
   

  	
  (a)

  	
   

  	
  112

  

 

 

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

 

 

TABLE OF
CONTENTS

	
   

  	
   

  	
  Page

  
	
  ARTICLE ONE

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND OTHER
  PROVISIONS

  
	
  OF GENERAL APPLICATION

  
	
   

  	
   

  	
   

  
	
  SECTION 101.

  	
  Definitions

  	
  1

  
	
  SECTION 102.

  	
  Compliance
  Certificates and Opinions

  	
  1

  
	
  SECTION 103.

  	
  Form of
  Documents Delivered to Trustee

  	
  1

  
	
  SECTION 104.

  	
  Acts of
  Holders

  	
  1

  
	
  SECTION 105.

  	
  Notices,
  Etc. to Trustee and Company

  	
  1

  
	
  SECTION 106.

  	
  Notice to
  Holders; Waiver

  	
  1

  
	
  SECTION 107.

  	
  Effect of
  Headings and Table of Contents

  	
  1

  
	
  SECTION 108.

  	
  Successors
  and Assigns

  	
  1

  
	
  SECTION 109.

  	
  Separability
  Clause

  	
  1

  
	
  SECTION 110.

  	
  Benefits of
  Indenture

  	
  1

  
	
  SECTION 111.

  	
  Governing
  Law

  	
  1

  
	
  SECTION 112.

  	
  Conflict
  with Trust Indenture Act

  	
  1

  
	
  SECTION 113.

  	
  Legal
  Holidays

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  
	
   

  	
   

  	
   

  
	
  SECURITY FORMS

  
	
   

  	
   

  	
   

  
	
  SECTION 201.

  	
  Forms
  Generally

  	
  1

  	 

	
  SECTION 202.

  	
  Form of
  Trustee’s Certificate of Authentication

  	
  1

  	 

	
  SECTION 203.

  	
  Securities
  Issuable in Global Form

  	
  1

  	 

	
  SECTION 204.

  	
  Book-Entry
  Provisions for Global Securities

  	
  1

  	 

	
  SECTION 205.

  	
  CUSIP Number

  	
  1

  	 

	
   

  	
   

  	
   

  	 

	
  ARTICLE THREE

  	 

	
   

  	
   

  	
   

  	 

	
  THE SECURITIES

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 301.

  	
  Amount
  Unlimited; Issuable in Series

  	
  1

  
	
  SECTION 302.

  	
  Denominations

  	
  1

  
	
  SECTION 303.

  	
  Execution,
  Authentication, Delivery and Dating

  	
  1

  
	
  SECTION 304.

  	
  Temporary
  Securities

  	
  1

  
	
  SECTION 305.

  	
  Registration
  of Transfer and Exchange

  	
  1

  
	
  SECTION 306.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  	
  1

  
	
  SECTION 307.

  	
  Payment of
  Interest; Interest Rights Preserved

  	
  1

  
	
  SECTION 308.

  	
  [Reserved].

  	
  1

  
	
  SECTION 309.

  	
  Persons
  Deemed Owners

  	
  1

  

 

 -i-
 

 

 

	
   

  	
   

  	
  Page

  
	
  SECTION 310.

  	
  Cancellation

  	
  1

  
	
  SECTION 311.

  	
  Computation
  of Interest

  	
  1

  
	
  SECTION 312.

  	
  [Reserved].

  	
  1

  
	
  SECTION 313.

  	
  [Reserved].

  	
  1

  
	
  SECTION 314.

  	
  Registrar
  and Paying Agent

  	
  1

  
	
  SECTION 315.

  	
  Paying Agent
  to Hold Money in Trust

  	
  1

  
	
  SECTION 316.

  	
  Noteholder
  Lists

  	
  1

  
	
  SECTION 317.

  	
  Transfer and
  Exchange

  	
  1

  
	
  SECTION 318.

  	
  Outstanding
  Securities

  	
  1

  
	
   

  	 

	
  ARTICLE FOUR

  	 

	
   

  	
   

  	
   

  	 

	
  SATISFACTION AND DISCHARGE

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 401.

  	
  Satisfaction
  and Discharge of Indenture

  	
  1

  	 

	
  SECTION 402.

  	
  Application
  of Trust Money

  	
  1

  	 

	
   

  	 

	
  ARTICLE FIVE

  	 

	
   

  	
   

  	
   

  	 

	
  REMEDIES

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 501.

  	
  Events of
  Default

  	
  1

  	 

	
  SECTION 502.

  	
  Acceleration
  of Maturity; Rescission and Annulment

  	
  1

  	 

	
  SECTION 503.

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
  1

  	 

	
  SECTION 504.

  	
  Trustee
  May File Proofs of Claim

  	
  1

  	 

	
  SECTION 505.

  	
  Trustee
  May Enforce Claims Without Possession of Securities

  	
  1

  	 

	
  SECTION 506.

  	
  Application
  of Money Collected

  	
  1

  	 

	
  SECTION 507.

  	
  Limitation
  on Suits

  	
  1

  	 

	
  SECTION 508.

  	
  Unconditional
  Right of Holders to Receive Principal, Premium and Interest

  	
  1

  	 

	
  SECTION 509.

  	
  Restoration
  of Rights and Remedies

  	
  1

  	 

	
  SECTION 510.

  	
  Rights and
  Remedies Cumulative

  	
  1

  	 

	
  SECTION 511.

  	
  Delay or
  Omission Not Waiver

  	
  1

  	 

	
  SECTION 512.

  	
  Control by
  Holders

  	
  1

  	 

	
  SECTION 513.

  	
  Waiver of
  Past Defaults

  	
  1

  	 

	
  SECTION 514.

  	
  Undertaking
  for Costs

  	
  1

  	 

	
  SECTION 515.

  	
  Waiver of
  Stay or Extension Laws

  	
  1

  	 

	
   

  	 

	
  ARTICLE SIX

  	 

	
   

  	
   

  	
   

  	 

	
  THE TRUSTEE

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 601.

  	
  Certain
  Duties and Responsibilities

  	
  1

  	 

	
  SECTION 602.

  	
  Notice of
  Defaults

  	
  1

  	 

	
  SECTION 603.

  	
  Certain
  Rights of Trustee

  	
  1

  	 

	
  SECTION 604.

  	
  Trustee Not
  Responsible for Recitals or Issuance of Securities

  	
  1

  	 

					

 

 -ii-
 

 

 

	
   

  	
   

  	
  Page

  
	
  SECTION 605.

  	
  May Hold
  Securities

  	
  1

  
	
  SECTION 606.

  	
  Money Held
  in Trust

  	
  1

  
	
  SECTION 607.

  	
  Compensation
  and Reimbursement

  	
  1

  
	
  SECTION 608.

  	
  Corporate
  Trustee Required; Eligibility; Conflicting Interests

  	
  1

  
	
  SECTION 609.

  	
  Resignation
  and Removal; Appointment of Successor

  	
  1

  
	
  SECTION 610.

  	
  Acceptance
  of Appointment by Successor

  	
  1

  
	
  SECTION 611.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
  1

  
	
  SECTION 612.

  	
  Appointment
  of Authenticating Agent

  	
  1

  
	
  SECTION 613.

  	
  Co-Trustee

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  	
   

  
	
  HOLDERS’ LISTS AND REPORTS
  BY TRUSTEE AND COMPANY

  
	
   

  	
   

  	
   

  
	
  SECTION 701.

  	
  Disclosure
  of Names and Addresses of Holders

  	
  1

  
	
  SECTION 702.

  	
  Reports by
  Trustee

  	
  1

  
	
  SECTION 703.

  	
  Reports by
  Company

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  	
   

  
	
  CONSOLIDATION, MERGER,
  CONVEYANCE, TRANSFER OR LEASE

  
	
   

  	
   

  	
   

  
	
  SECTION 801.

  	
  Company
  May Consolidate, Etc., Only on Certain Terms

  	
  1

  
	
  SECTION 802.

  	
  Successor
  Person Substituted

  	
  1

  
	
  SECTION 803.

  	
  Securities
  To Be Secured in Certain Events

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  
	
  SECTION 901.

  	
  Supplemental
  Indentures Without Consent of Holders

  	
  1

  
	
  SECTION 902.

  	
  Supplemental
  Indentures With Consent of Holders

  	
  1

  
	
  SECTION 903.

  	
  Execution of
  Supplemental Indentures

  	
  1

  
	
  SECTION 904.

  	
  Effect of
  Supplemental Indentures

  	
  1

  
	
  SECTION 905.

  	
  Conformity
  with Trust Indenture Act

  	
  1

  
	
  SECTION 906.

  	
  Reference in
  Securities to Supplemental Indentures

  	
  1

  
	
  SECTION 907.

  	
  Notice of
  Supplemental Indentures

  	
  1

  
	
   

  	
   

  	
   

  	 

	
  ARTICLE TEN

  	 

	
   

  	
   

  	
   

  	 

	
  COVENANTS

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 1001.

  	
  Payment of
  Principal, Premium, if any, and Interest

  	
  1

  	 

	
  SECTION 1002.

  	
  Maintenance
  of Office or Agency

  	
  1

  	 

	
  SECTION 1003.

  	
  Money for
  Securities Payments to Be Held in Trust

  	
  1

  	 

	
  SECTION 1004.

  	
  Statement as
  to Compliance

  	
  1

  	 

					

 

 -iii-
 

 

 

	
   

  	
   

  	
  Page

  	 

	
  SECTION 1005.

  	
  Corporate
  Existence

  	
  1

  	 

	
  SECTION 1006.

  	
  Negative
  Pledge

  	
  1

  	 

	
  SECTION 1007.

  	
  Limitation
  on Sale/Leaseback Transactions

  	
  1

  	 

	
  SECTION 1008.

  	
  Waiver of
  Certain Covenants

  	
  1

  	 

	
  SECTION 1009.

  	
  Change of
  Control Offer.

  	
  1

  	 

	
  SECTION 1010.

  	
  Limitation
  on Debt of Subsidiaries.

  	
  1

  	 

	
  SECTION 1011.

  	
  Additional
  Subsidiary Guarantees.

  	
  1

  	 

	
   

  	
   

  	
   

  	 

	
  ARTICLE ELEVEN

  	 

	
   

  	
   

  	
   

  	 

	
  REDEMPTION OF SECURITIES

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 1101.

  	
  Applicability
  of Article

  	
  1

  	 

	
  SECTION 1102.

  	
  Election to
  Redeem; Notice to Trustee

  	
  1

  	 

	
  SECTION 1103.

  	
  Selection by
  Trustee of Securities to Be Redeemed

  	
  1

  	 

	
  SECTION 1104.

  	
  Notice of
  Redemption

  	
  1

  	 

	
  SECTION 1105.

  	
  Deposit of
  Redemption Price

  	
  1

  	 

	
  SECTION 1106.

  	
  Securities
  Payable on Redemption Date

  	
  1

  	 

	
  SECTION 1107.

  	
  Securities
  Redeemed in Part

  	
  1

  	 

	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  
	
   

  	
   

  	
   

  
	
  [RESERVED]

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN

  
	
   

  	
   

  	
   

  
	
  REPAYMENT AT OPTION OF
  HOLDERS

  
	
   

  	
   

  	
   

  
	
  SECTION 1301.

  	
  Applicability
  of Article

  	
  1

  
	
  SECTION 1302.

  	
  Repayment of
  Securities

  	
  1

  
	
  SECTION 1303.

  	
  Exercise of
  Option

  	
  1

  
	
  SECTION 1304.

  	
  When
  Securities Presented for Repayment Become Due and Payable

  	
  1

  
	
  SECTION 1305.

  	
  Securities
  Repaid in Part

  	
  1

  
	
   

  	
   

  	
   

  	 

	
  ARTICLE FOURTEEN

  	 

	
   

  	
   

  	
   

  	 

	
  DEFEASANCE AND COVENANT
  DEFEASANCE

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 1401.

  	
  Company’s
  Option to Effect Defeasance or Covenant Defeasance

  	
  1

  	 

	
  SECTION 1402.

  	
  Defeasance
  and Discharge

  	
  1

  	 

	
  SECTION 1403.

  	
  Covenant
  Defeasance

  	
  1

  	 

	
  SECTION 1404.

  	
  Conditions
  to Defeasance or Covenant Defeasance

  	
  1

  	 

	
  SECTION 1405.

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

  	
  1

  	 

						

 

 -iv-
 

 

 

	
   

  	
   

  	
  Page

  	 

	
  ARTICLE FIFTEEN

  	 

	
   

  	
   

  	
   

  	 

	
  GUARANTEE

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 1501.

  	
  Unconditional
  Guarantee.

  	
  1

  	 

	
  SECTION 1502.

  	
  Severability.

  	
  1

  	 

	
  SECTION 1503.

  	
  Limitation
  of Guarantor’s Liability.

  	
  1

  	 

	
  SECTION 1504.

  	
  Release of
  Guarantor.

  	
  1

  	 

	
  SECTION 1505.

  	
  Contribution.

  	
  1

  	 

	
  SECTION 1506.

  	
  Waiver of
  Subrogation.

  	
  1

  	 

	
  SECTION 1507.

  	
  Execution of
  Guarantee.

  	
  1

  	 

	
  SECTION 1508.

  	
  Waiver of
  Stay, Extension or Usury Laws.

  	
  1

  	 

	
   

  	
   

  	
   

  	 

	
  ARTICLE SIXTEEN

  	 

	
   

  	
   

  	
   

  	 

	
  IMMUNITY OF INCORPORATORS,
  STOCKHOLDERS,

  	 

	
  OFFICERS, DIRECTORS AND
  EMPLOYEES

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 1601.

  	
  Exemption
  from Individual Liability

  	
  1

  	 

	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
  Exhibit A

  	
  Form of Initial Security

  
	
  Exhibit B

  	
  Form of Global Security Legend

  
	
  Exhibit C

  	
  Form of Guarantee

  
						

 

 -v-

 

INDENTURE, dated as of April 24, 2006, among
Chemtura Corporation, a Delaware corporation (herein called the “Company”),
having its principal executive offices at 199 Benson Road, Middlebury, CT
06749, the Guarantors named herein, and Wells Fargo Bank, N.A., a national
banking association duly organized and existing under the laws of the United
States, as trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

The Company and each of the Guarantors has duly
authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of the Company’s unsecured debentures, notes or
other evidences of indebtedness (herein called the “Securities”), to be
issued in one or more series as in this Indenture provided. The Company is issuing
$500.0 million aggregate principal amount of its 6.875% Notes due 2016 (the “Initial
Securities”) hereunder concurrently with its execution and delivery of this
Indenture.

This Indenture is subject to the provisions of the
Trust Indenture Act of 1939, as amended, that are required to be part of this
Indenture and shall, to the extent applicable, be governed by such provisions.

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

DEFINITIONS AND OTHER
PROVISIONS

OF GENERAL APPLICATION

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

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

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

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

 

accounting
principles as are generally accepted in the United States at the date of such
computation; and

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

Certain terms, used principally in Articles Three, Six
and Fourteen are defined in those Articles.

“Act”, when used with respect to any Holder,
has the meaning specified in Section 104(a).

“Affiliate” means, with respect to any
specified Person, any other Person who directly or indirectly through one or
more intermediaries controls, or is controlled by, or is under common control
with, such specified Person. The term “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative of the foregoing.

“Agent Members” has the meaning specified in Section 204(a).

“Attributable Debt” in respect of a
Sale/Leaseback Transaction means, as at the time of determination, the lesser
of (i) the fair market value of the property being leased and (ii) the
present value (discounted at the interest rate set forth or implicit in the
terms of such transaction or, if not practicable to determine such rate, the
interest rate per annum borne by the Securities of each series outstanding
pursuant to this Indenture, compounded semi-annually, in either case as
determined by the principal accounting or financial officer of the Company) of
the total obligations of the lessee for rental payments during the remaining
term of the lease included in such Sale/Leaseback Transaction (including any
period for which such lease has been extended or may, at the option of the
lessor, be extended).

“Authenticating Agent” means any Person
authorized by the Trustee to act on behalf of the Trustee to authenticate
Securities.

“Authorized Newspaper” means a newspaper, in
the English language or in an official language of the country of publication,
customarily published on each Business Day, whether or not published on
Saturdays, Sundays or holidays, and of general circulation in each place in
connection with which the term is used or in the financial community of each
such place. Where successive publications are required to be made in Authorized
Newspapers, the successive publications may be made in the same or in different
newspapers in the same city meeting the foregoing requirements and in each case
on any Business Day.

“Bankruptcy Law” means Title 11 of the United
States Code, as amended, or any similar federal or state law for the relief of
debtors.

 2
 

 

 

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

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

“Business Day” means, unless otherwise
specified with respect to any Securities pursuant to Section 301, each
Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in New York, New York are authorized or obligated by law
or executive order to close.

“Capital Stock” means:

(1)                                  with
respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of Common Stock and Preferred
Stock of such Person, and all options, warrants or other rights to purchase or
acquire any of the foregoing; and

 (2)                               with
respect to any Person that is not a corporation, any and all partnership,
membership or other equity interests of such Person, and all options, warrants
or other rights to purchase or acquire any of the foregoing.

“Change of Control” means the occurrence of one
or more of the following events:

(1)                                  any
sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the assets of the Company
and its Subsidiaries taken as a whole to any Person or group of related Persons
for purposes of Section 13(d) of the Exchange Act (a “Group”),
together with any Affiliates thereof (whether or not otherwise in compliance
with the provisions of this Indenture);

(2)                                  the
approval by the holders of Capital Stock of the Company of any plan or proposal
for the liquidation or dissolution of the Company (whether or not otherwise in
compliance with the provisions of this Indenture);

(3)                                  any
Person or Group shall become the owner, directly or indirectly, beneficially or
of record, of shares representing more than 50% of the aggregate ordinary
voting power represented by the issued and outstanding Capital Stock of the
Company;

(4)                                  the
replacement of a majority of the Board of Directors of the Company over a
two-year period from the directors who constituted the Board of Directors of
the Company at the beginning of such period, and such replacement shall not
have been approved by a vote of at least a majority of

 3
 

 

                                                the
Board of Directors of the Company then still in office who either were members
of such Board of Directors at the beginning of such period or whose election as
a member of such Board of Directors was previously so approved; or

(5)                                  the
Company consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, the Company, in any such event
pursuant to a transaction in which any of the outstanding Voting Stock of the
Company or such other Person is converted into or exchanged for cash,
securities or other property, other than any such transaction where (A) the
Voting Stock of the Company outstanding immediately prior to such transaction
is converted into or exchanged for Voting Stock of the surviving or transferee
Person constituting a majority of the total voting power of the outstanding
shares of such Voting Stock of such surviving or transferee Person (immediately
after giving effect to such issuance) and (B) immediately after such
transaction, no Person or Group beneficially owns, directly or indirectly, 50%
or more of the voting power of the Voting Stock of the surviving or transferee
Person.

“Change of Control Offer” has the meaning
specified in Section 1009.

“Change of Control Payment Date” has the
meaning specified in Section 1009(b).

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

“Common Stock” of any Person means any and all
shares, interests or other participations in, and other equivalents (however
designated and whether voting or nonvoting) of such Person’s common stock,
whether outstanding on the Issue Date or issued after the Issue Date, and
includes, without limitation, all series and classes of such common stock.

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

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

“Consolidated Net Tangible Assets” means, as of
any particular time, the aggregate amount of assets (less applicable reserves
and other properly deductible items) after deducting therefrom: (a) all
current liabilities except for (1) notes and loans payable, (2) current
maturities of long-term debt and (3) current maturities of obligations
under capital leases; and (b) to the extent included in said aggregate
amount of assets, all goodwill, trade names, trademarks, 

 4
 

 

 

patents, organization expenses, unamortized debt
discount and expenses and all other intangible assets, to the extent included
in said aggregate amount of assets, all as set forth on the most recent
consolidated balance sheet of the Company and its consolidated subsidiaries and
computed in accordance with generally accepted accounting principles.

“Consolidated Shareholders’ Equity” means, at
any date, the aggregate of the dollar amount of the outstanding preferred and
common share capital of the Company, plus any outstanding warrants exercisable
into shares, plus any outstanding debentures or other Debt which are
convertible into shares at the option of the Company and which have no
significant retraction privilege, plus or minus the amount, without
duplication, of any reinvested earnings or deficit, plus any contributed
surplus, plus or minus any cumulative translation adjustment, all as set forth
in the most recent consolidated balance sheet of the Company.

“Corporate Trust Office” means the principal
corporate trust office of the Trustee, at which at any particular time its
corporate trust business shall be administered, which office on the date of
execution of this Indenture is located at Sixth St. and Marquette Ave., MAC
N9303-120, Minneapolis, Minnesota 55479, except that with respect to
presentation of Securities 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.

“covenant defeasance” has the meaning specified
in Section 1403.

“Debt” means notes, bonds, debentures or other
similar evidences of indebtedness for money borrowed. For the avoidance of
doubt, “Debt” shall not include Attributable Debt.

“Defaulted Interest” has the meaning specified
in Section 307(a).

“defeasance” has the meaning specified in Section 1402.

“Depositary” means The Depository Trust
Company, its nominees and their respective successors.

“Dollar” or “$” means a dollar or other
equivalent unit in such coin or currency of the United States of America as at
the time shall be legal tender for the payment of public and private debts.

“Domestic Subsidiary” means any wholly-owned
Subsidiary of the Company organized under the laws of any state of the United
States of America.

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

“Event of Default” has the meaning specified in
Section 501.

“Fall-Away Event” shall be deemed to have
occurred when:

(1)           all
Debt of the Company’s Subsidiaries then outstanding is permitted to be incurred
at such time under Section 1010 assuming that such covenant is in full
force and effect;

 5
 

 

 

(2)           no
default or Event of Default has occurred and is continuing;

(3)           all
of the Great Lakes Guarantees are released or 80% or more of the Great Lakes
Notes are no longer outstanding; and

(4)           the
Company has delivered an Officers’ Certificate to the Trustee certifying that
the conditions set forth in clauses (1), (2) and (3) above are
satisfied.

“Foreign Holding Company” means each of:
Crompton Europe Financial Services Company, Chemtura Holding Company, Inc.,
Crompton International Corporation, Crompton LLC, GLCC Mexico Holdings, Inc.,
Great Lakes Trading Company, Inc. and QO Chemicals, Inc.

“Global Security” has the meaning specified in Section 203.

“Government Obligations” means, unless
otherwise specified with respect to any series of Securities pursuant to Section 301,
securities which are (i) direct obligations of the government which issued
the currency in which the Securities of a particular series are payable or (ii) obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the government which issued the currency in which the
Securities of such series are payable, the payment of which is unconditionally
guaranteed by such government, which, in either case, are full faith and credit
obligations of such government payable in such currency and are not callable or
redeemable at the option of the issuer thereof and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such Government Obligation or a specific payment of interest on or
principal of any such Government Obligation held by such custodian for the account
of the holder of a depository receipt; provided, however, that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the Government Obligation or
the specific payment of interest or principal of the Government Obligation
evidenced by such depository receipt.

“Great Lakes Guarantees” means the guarantees
by the Company and certain of its Subsidiaries of the Great Lakes Notes.

“Great Lakes Notes” means the 7% Notes due 2009
issued by Great Lakes Chemical Corporation outstanding on the Issue Date.

“Guarantee” means a guarantee of the Securities
by a Guarantor.

“Guarantor” means, as of the date of this
Indenture, each Domestic Subsidiary as of such date other than the Foreign
Holding Companies, Crompton & Knowles Receivables Corporation and
Assured Insurance Company, and thereafter each additional Subsidiary of the Company
that has provided a Guarantee in accordance with the terms of this Indenture,
in each case until the Guarantee of any such Guarantor is released in
accordance with the terms of this Indenture.

 6
 

 

 

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

“Indenture” means this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof, and shall include the terms of particular series of
Securities established as contemplated by Section 301 other than with
respect to the Initial Securities (which are established herein (including Exhibit A hereto)); provided, however,
that, if at any time more than one Person is acting as Trustee under this
instrument, “Indenture” shall mean, with respect to any one or more series of
Securities for which such Person is Trustee, this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of particular series of
Securities for which such Person is Trustee established as contemplated by Section 301,
exclusive, however, of any provisions or terms which relate solely to other
series of Securities for which such Person is not Trustee, regardless of when
such terms or provisions were adopted, and exclusive of any provisions or terms
adopted by means of one or more indentures supplemental hereto executed and
delivered after such Person had become such Trustee but to which such Person,
as such Trustee, was not a party.

“Initial Securities” has the meaning specified
in the first recital of this Indenture.

“Interest,” when used with respect to an
Original Issue Discount Security which by its terms bears interest only after
Maturity, means interest payable after Maturity at the rate prescribed in such
Original Issue Discount Security.

“Interest Payment Date,” when used with respect
to an installment of interest on any Security, means the date specified in such
Security as the date on which the payment of such installment of interest is
due and payable.

“Issue Date,” with respect to the Initial
Securities, means April 24, 2006.

“Maturity,” when used with respect to any
Security, means the date on which the principal of such Security or an
installment of principal becomes due and payable as provided therein or in this
Indenture, whether at the Stated Maturity, on a Change of Control Payment Date,
or by declaration of acceleration, notice of redemption, notice of option to
elect repayment or otherwise.

“Maturity Date,” with respect to the Initial
Securities, means June 1, 2016.

“Officers’ Certificate” means a certificate
signed by any two of the Chairman, the Chief Executive Officer, the President,
a Senior Vice President or a Vice President, or by any one of the foregoing
together with the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
Secretary of the Company, and delivered to the Trustee.

“Opinion of Counsel” means a written opinion of
counsel, who may be counsel for the Company, including an employee of the
Company, and who shall be acceptable to the Trustee, whose acceptance shall not
be unreasonably withheld.

 7
 

 

 

“Original Issue Discount Security” means any
Security which provides for an amount less than the principal amount thereof to
be due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 502.

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

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

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

(iii)    Securities, except to the extent provided in
Sections 1402 and 1403, with respect to which the Company has effected
defeasance and/or covenant defeasance as provided in Article Fourteen; and

(iv)    Securities which have been replaced pursuant
to Section 306 or in exchange for or in lieu of which other Securities
have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the
Trustee proof satisfactory to it that such Securities are held by a bona fide
purchaser in whose hands such Securities are valid obligations of the Company;

provided, however, that in
determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or are present at a meeting of Holders
for quorum purposes, and for the purpose of making the calculations required by
TIA Section 316, (i) the principal amount of an Original Issue
Discount Security that may be counted in making such determination or calculation
and that shall be deemed to be Outstanding for such purpose shall be equal to
the amount of principal thereof that would be (or shall have been declared to
be) due and payable, at the time of such determination, upon a declaration of
acceleration of the maturity thereof pursuant to Section 502 and (ii) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be
protected in making such calculation or in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which the Trustee knows to be so owned shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right
so to act with respect to such Securities and that the pledgee is not the
Company or any other obligor upon the Securities or any Affiliate of the
Company or of such other obligor.

“Paying Agent” has the meaning set forth in Section 314.

 8
 

 

 

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

“Physical Securities” means certificated
Securities in registered form.

“Place of Payment” means, when used with
respect to the Securities of or within any series, the place or places where
the principal of (and premium, if any) and interest on such Securities are
payable as specified as contemplated by Sections 301 and 1002.

“Predecessor Security” of any particular
Security means every previous Security evidencing all or a portion of the same
debt as that evidenced by such particular Security; and, for the purposes of
this definition, any Security authenticated and delivered under Section 306
in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

“Preferred Stock” means, with respect to any
Person, any Capital Stock of such Person that has preferential rights to any
other Capital Stock of such Person with respect to dividends or redemptions
upon liquidation.

“Purchase Date” means, with respect to any
Security to be repurchased, the date fixed for such repurchase by or pursuant
to this Indenture.

 “Purchase
Price” means the amount payable for the repurchase of any Security on a
Purchase Date, exclusive of accrued and unpaid interest thereon to the Purchase
Date, unless otherwise specifically provided.

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

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

“Registrar” has the meaning set forth in Section 314.

“Regular Record Date” for the interest payable
on any Interest Payment Date on the Securities of or within any series means
the date specified for that purpose as contemplated by Section 301; provided
that with respect to the Initial Securities, “Regular Record Date” shall mean May 15
and November 15.

“Repayment Date” means, when used with respect
to any Security to be repaid at the option of the Holder, the date fixed for
such repayment by or pursuant to this Indenture.

“Repayment Price” means, when used with respect
to any Security to be repaid at the option of the Holder, the price at which it
is to be repaid pursuant to this Indenture.

“Responsible Officer,” when used with respect
to the Trustee, means the chairman or any vice-chairman of the board of
directors, the chairman or any vice-chairman of the 

 9
 

 

 

executive committee of the board of directors, the
chairman of the trust committee, the president, any vice president, the
secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer,
the controller or any assistant controller or any other officer in the
Corporate Trust Office of the Trustee customarily performing functions similar
to those performed by any of the above-designated officers, and also means,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his knowledge of and familiarity with the
particular subject, in each case located at the Corporate Trust Office of the
Trustee.

“Sale/Leaseback Transaction” means an
arrangement relating to property now owned or hereafter acquired whereby the
Company or a Subsidiary transfers such property to a Person and the Company or
a Subsidiary leases it from such Person, other than (i) leases between the
Company and a wholly-owned Subsidiary or between wholly-owned Subsidiaries and (ii) transactions
providing for a lease for a term, including any renewal thereof, of not more
than three years.

“Secured Projects” has the meaning specified in
Section 1006(a)(iv).

“Securities” has the meaning stated in the
first recital of this Indenture and more particularly means any Securities
authenticated and delivered under this Indenture, including the Initial
Securities; provided, however, that if at any time there is more
than one Person acting as Trustee under this Indenture, “Securities” with
respect to this Indenture as to which such Person is Trustee shall have the
meaning stated in the first recital of this Indenture and shall more particularly
mean Securities authenticated and delivered under this Indenture, exclusive, however,
of Securities of any series as to which such Person is not Trustee.

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

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

“Significant Guarantor” means one or more
Guarantors that, individually or in the aggregate, would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X
promulgated under the Securities Act of 1933, as amended, as such regulation is
in effect on the date hereof, substituting “5 percent” for “10 percent” each
place that it appears therein.

“Significant Subsidiary,” with respect to any
Person, means any Subsidiary of such Person that satisfies the criteria for a “significant
subsidiary” set forth in Rule 1.02(w) of Regulation S-X under the
Exchange Act.

“Special Record Date” for the payment of any
Defaulted Interest on the Securities of or within any series means a date fixed
by the Trustee pursuant to Section 307.

“Stated Maturity” means, with respect to any
security, the date specified in such security as the fixed date on which the
payment of principal of such security is due and payable,

 10
 

 

 

including pursuant to any mandatory redemption
provision (but excluding any provision providing for the repurchase of such security
at the option of the holder thereof upon the happening of any contingency beyond
the control of the issuer unless such contingency has occurred).

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

(1)                                any corporation of which
the outstanding Capital Stock having at least a majority of the votes entitled
to be cast in the election of directors under ordinary circumstances shall at
the time be owned, directly or indirectly, by such Person; or

(2)                                any other Person of
which at least a majority of the voting interest under ordinary circumstances
is at the time, directly or indirectly, owned by such Person.

Unless otherwise indicated in this Indenture, all
references to Subsidiaries shall mean Subsidiaries of the Company.

  “Trust
Indenture Act” means the provisions of the Trust Indenture Act of 1939, as
amended, and regulations thereunder.

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

“United States” means, unless otherwise
specified with respect to any Securities pursuant to Section 301, the
United States of America (including the states and the District of Columbia),
its territories, its possessions and other areas subject to its jurisdiction.

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

“Voting Stock” means stock of the class or
classes having general voting power under ordinary circumstances to elect at
least a majority of the board of directors, managers or trustees of a
corporation (irrespective of whether or not at the time stock of any other
class or classes shall have or might have voting power by reason of the
happening of any contingency).

“Yield to Maturity” means the yield to
maturity, computed at the time of issuance of a Security (or, if applicable, at
the most recent redetermination of interest on such Security) and as set forth
in such Security in accordance with generally accepted United States bond yield
computation principles.

 

 11

 

SECTION 102.       Compliance
Certificates and Opinions. Upon any application or request by the Company
to the Trustee to take any action under any provision of this Indenture (other
than the authentication of the Initial Securities), the Company shall furnish to
the Trustee an Officers’ Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate
or opinion need be furnished.

Every certificate or
opinion with respect to compliance with a covenant or condition provided for in
this Indenture (other than pursuant to Section 1004) shall include:

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

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

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

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

SECTION 103.       Form of
Documents Delivered to Trustee. In any case where several matters are required
to be certified by, or covered by an opinion of, any specified Person, it is
not necessary that all such matters be certified by, or covered by the opinion
of, only one such Person, or that they be so certified or covered by only one
document, but one such Person may certify or give an opinion with respect to
some matters and one or more other such Persons as to other matters, and any
such Person may certify or give an opinion as to such matters in one or several
documents.

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

 12
 

 

 

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

SECTION 104.       Acts
of Holders.

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

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

(c)           The
principal amount and serial numbers of Securities held by any Person, and the
date of holding the same, shall be proved by the Security Register.

(d)           If
the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company may, at its option,
by or pursuant to Board Resolution, fix in advance a record date for the
determination of Holders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act, but the Company shall have no
obligation to do so. Notwithstanding TIA Section 316(c), such record date
shall be the record date specified in or pursuant to such Board Resolution,
which shall be a date not earlier than the date 30 days prior to the first
solicitation of Holders generally in connection therewith and not later than
the date such solicitation is completed. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other Act
may be given before or after such record date, but only the Holders of record
at the close of business on such record date shall be deemed to be Holders for
the purposes of determining whether Holders of the requisite proportion of
Outstanding Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the Outstanding Securities shall be computed as of such record
date; provided, however, that no such authorization, agreement or
consent by the Holders on such

 13
 

 

record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than eleven months after
the record date, and that no such authorization, agreement or consent may be
amended, withdrawn or revoked once given by a Holder, unless the Company shall
provide for such amendment, withdrawal or revocation in conjunction with such
solicitation of authorizations, agreements or consents or unless and to the
extent required by applicable law. If the Company elects not to fix in advance
a record date, then the record date shall be 30 days prior to the first
solicitation of any such consent.

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

SECTION 105.       Notices,
Etc. to Trustee and Company. Any request, demand, authorization, direction,
notice, consent, waiver or Act of Holders or other documents provided or
permitted by this Indenture to be made upon, given or furnished to, or filed
with,

(1)           the Trustee by any Holder or by the
Company shall be sufficient for every purpose hereunder if in writing and
mailed (first class postage prepaid) or sent by facsimile to the Trustee at its
Corporate Trust Office, Attention: 
Chemtura Administrator, or

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

SECTION 106.       Notice
to Holders; Waiver. Where this Indenture provides for notice of any event
to Holders by the Company or the Trustee, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each such Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date,
and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the failure
to mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other
Holders. Any notice mailed to a Holder in the manner herein prescribed shall be
conclusively deemed to have been received by such Holder, whether or not such
Holder actually receives such notice.

In case, by reason of the suspension of or
irregularities in regular mail service or by reason of any other cause, it
shall be impractical to mail notice of any event to Holders when such notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Trustee shall be
deemed to be sufficient giving of such notice for every purpose hereunder.

 14
 

 

 

Any request, demand, authorization, direction, notice,
consent or waiver required or permitted under this Indenture shall be in the
English language, except that any published notice may be in an official
language of the country of publication.

Where this Indenture provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

SECTION 107.       Effect
of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

SECTION 108.       Successors
and Assigns. All covenants and agreements in this Indenture by the Company
shall bind its successors and assigns, whether so expressed or not.

SECTION 109.       Separability
Clause. In case any provision in this Indenture or in any Security shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

SECTION 110.       Benefits
of Indenture. Nothing in this Indenture or in the Securities, express or
implied, shall give to any Person, other than the parties hereto, any
Authenticating Agent, any Paying Agent, any Security Registrar and their
successors hereunder and the Holders, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

SECTION 111.       Governing
Law. This Indenture and the Securities shall be governed by and construed
in accordance with the laws of the State of New York, 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. This Indenture is subject
to the provisions of the Trust Indenture Act that are required to be part of
this Indenture and shall, to the extent applicable, be governed by such
provisions.

The Company and each Guarantor hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Indenture or
the Securities in any Federal or State court in the State of New York, Borough
of Manhattan. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

SECTION 112.       Conflict
with Trust Indenture Act. If and to the extent that any provision hereof
limits, qualifies or conflicts with the duties imposed by any of
Sections 310 to 318, inclusive, of the Trust Indenture Act, through
operation of Section 318(c) thereof, such imposed duties shall control.

 15
 

 

SECTION 113.       Legal
Holidays. In any case where any Interest Payment Date, Redemption Date, or
Stated Maturity or Maturity of any Security shall not be a Business Day at any
Place of Payment, then (notwithstanding any other provision of this Indenture
or of any Security other than a provision in the Securities of any series which
specifically states that such provision shall apply in lieu of this Section)
payment of interest or principal (and premium, if any) need not be made at such
Place of Payment on such date, but may be made on the next succeeding Business
Day at such Place of Payment with the same force and effect as if made on the
Interest Payment Date or Redemption Date, or at the Stated Maturity or
Maturity; provided, however, that no interest shall accrue for
the period from and after such Interest Payment Date, Redemption Date, Stated
Maturity or Maturity, as the case may be.

ARTICLE TWO

SECURITY FORMS

SECTION 201.       Forms
Generally. The Securities of each series shall be in substantially the
forms as shall be established by or pursuant to a Board Resolution or in one or
more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may, consistently
herewith, be determined by the officers executing such Securities, as evidenced
by their execution of the Securities. The Initial Securities shall be in
substantially the form set forth in Exhibit A,
which is incorporated in and forms a part of this Indenture. If the forms of Securities
of any series are established by action taken pursuant to a Board Resolution, a
copy of an appropriate record of such action shall be certified by the
Secretary or an Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Company Order contemplated by Section 303
for the authentication and delivery of such Securities.

The Trustee’s certificate of authentication on all
Securities shall be in substantially the form set forth in this Article Two.

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

Each Security shall be dated the date of its authentication.

The terms and provisions contained in the Securities
shall constitute, and are expressly made, a part of this Indenture and, to the
extent applicable, the Company, and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and
agree to be bound thereby.

SECTION 202.       Form
of Trustee’s Certificate of Authentication. Subject to
Section 612, the Trustee’s certificate of authentication shall be in substantially
the following form or such other form as may be required by the Trustee:

 16
 

 

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

WELLS FARGO BANK, N.A.,

as Trustee

By:                                                                                          
                                Authorized
Signatory

 

SECTION 203.       Securities
Issuable in Global Form. If Securities of or within a
series are issuable in global form (a “Global Security”), as specified
as contemplated by Section 204 and Section 301, then, notwithstanding
clause (7) of Section 301, any such Security shall represent such of
the Outstanding Securities of such series as shall be specified therein and may
provide that it shall represent the aggregate amount of Outstanding Securities
of such series from time to time endorsed thereon and that the aggregate amount
of Outstanding Securities of such series represented thereby may from time to
time be increased or decreased to reflect exchanges.  Any endorsement of a Global Security to
reflect the amount, or any increase or decrease in the amount, of Outstanding
Securities represented thereby shall be made by the Trustee in such manner and
upon instructions given by such Person or Persons as shall be specified therein
or in the Company Order to be delivered to the Trustee pursuant to
Section 303 or Section 304. 
Subject to the provisions of Section 303 and, if applicable,
Section 304, the Trustee shall deliver and redeliver any Security in
permanent global form in the manner and upon instructions given by the Person
or Persons specified therein or in the applicable Company Order.  If a Company Order pursuant to
Section 303 or Section 304 has been, or simultaneously is, delivered,
any instructions by the Company with respect to endorsement or delivery or
redelivery of a Security in global form shall be in writing but need not comply
with Section 102 and need not be accompanied by an Opinion of Counsel.

Notwithstanding the provisions of Section 307,
unless otherwise specified as contemplated by Section 301, payment of
principal of and any premium and interest on any Global Security shall be made
to the Person or Persons specified therein.

Notwithstanding the provisions of Section 309 and
except as provided in the preceding paragraph, the Company, the Trustee and any
agent of the Company and the Trustee shall treat as the Holder of such
principal amount of Outstanding Securities represented by a permanent Global
Security the Holder of such permanent Global Security in registered form.

SECTION 204.       Book-Entry
Provisions for Global Securities.

(a)           Securities,
including without limitation the Initial Securities, shall be initially represented
by one or more Global Securities bearing legends as set forth in Exhibit B. 
The Global Securities initially shall (i) be registered in the name of
the Depositary or the nominee of such Depositary, in each case for credit to an
account of an Agent Member and (ii) be delivered to the Trustee as custodian
for such Depositary.

 17
 

 

Members of, or direct or indirect
participants in, the Depositary (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Security held on their behalf
by the Depositary, or the Trustee as its custodian, or under the Global
Securities, and the Depositary may be treated by the Company, the Trustee and
any agent of the Company or the Trustee as the absolute owner of the Global
Security for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the
Depositary or impair, as between the Depositary and its Agent Members, the
operation of customary practices governing the exercise of the rights of a
Holder of any Security.

(b)           Transfers
of Global Securities shall be limited to transfer in whole, but not in part, to
the Depositary, its successors or their respective nominees.  Interests of beneficial owners in the Global
Securities may be transferred or exchanged for Physical Securities in accordance
with the rules and procedures of the Depositary.  In addition, a Global Security shall be
exchangeable for Physical Securities if (i) the Depositary (x) notifies the
Company that it is unwilling or unable to continue as depository for such
Global Security and the Company thereupon fails to appoint a successor
depository within 90 days or (y) has ceased to be a clearing agency registered
under the Exchange Act or (ii) there shall have occurred and be continuing an
Event of Default with respect to the Securities and a Holder shall so request
(in accordance with the Depositary’s customary procedures).  In all cases, Physical Securities delivered
in exchange for any Global Security or beneficial interests therein shall be
registered in the names, and issued in any approved denominations, requested by
or on behalf of the Depositary (in accordance with its customary procedures).

(c)           In
connection with any transfer or exchange of a portion of the beneficial
interest in any Global Security to beneficial owners of Physical Securities
pursuant to paragraph (b), the Registrar shall reflect on its books and records
the date and a decrease in the principal amount of the Global Security in an
amount equal to the principal amount of the beneficial interest in the Global
Security to be transferred or exchanged, and the Company shall execute, and the
Trustee shall upon receipt of a written order from the Company authenticate and
make available for delivery, one or more Physical Securities of like tenor and
amount.

(d)           In
connection with the transfer of Global Securities as an entirety to beneficial
owners pursuant to paragraph (b), the Global Securities shall be deemed to be
surrendered to the Trustee for cancellation, and the Company shall execute, and
the Trustee shall authenticate and deliver, to each beneficial owner identified
by the Depositary in writing in exchange for its beneficial interest in the
Global Securities, an equal aggregate principal amount of Physical Securities
of authorized denominations.

(e)           Any beneficial
interest in one of the Global Securities that is transferred to a Person who
takes delivery in the form of an interest in another Global Security shall,
upon transfer, cease to be an interest in such Global Security and become an
interest in such other Global Security and, accordingly, shall thereafter be
subject to all transfer restrictions and other procedures applicable to
beneficial interests in such other Global Security for as long as it remains
such an interest.

 18
 

 

(f)            The
Holder of any Global Security may grant proxies and otherwise authorize any
Person, including Agent Members and Persons that may hold interests through
Agent Members, to take any action which a Holder is entitled to take under this
Indenture or the Securities. CUSIP Number.
The Company in issuing the Securities may use a “CUSIP” number, and if so, such
CUSIP number shall be included in notices of redemption or exchange as a
convenience to Holders; provided that any such notice may state that no representation
is made as to the correctness or accuracy of the CUSIP number printed in the
notice or on the Securities, and that reliance may be placed only on the other
identification numbers printed on the Securities.  The Company shall promptly notify the Trustee
of any such CUSIP number used by the Company in connection with the issuance of
the Securities and of any change in the CUSIP number.

ARTICLE Three

THE SECURITIES

 

SECTION 301.       Amount
Unlimited; Issuable in Series. The aggregate principal
amount of Securities which may be authenticated and delivered under this
Indenture is unlimited.

The Securities may be issued in one or more
series.  Except with respect to the
Initial Securities (which shall be in the form of Exhibit A
hereto), there shall be established in one or more Board Resolutions or pursuant
to authority granted by one or more Board Resolutions and, subject to
Section 303, set forth in, or determined in the manner provided in, an Officers’
Certificate, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series, any or all of the following,
as applicable (each of which (except for the matters set forth in clauses (1),
(2) and (14) below), if so provided, may be determined from time to time by the
Company with respect to unissued Securities of the series and set forth in such
Securities of the series when issued from time to time):

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

(2)           any limit upon the aggregate
principal amount of the Securities of the series that may be authenticated and
delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities of the series pursuant to Section 304, 305, 306, 906, 1107 or
1305);

(3)           the date or dates, or the method by
which such date or dates will be determined or extended, on which the principal
of the Securities of the series is payable;

(4)           the rate or rates at which the
Securities of the series shall bear interest, if any, or the method by which
such rate or rates shall be determined, the date or dates from which such
interest shall accrue, or the method by which such date or dates shall be determined,
the Interest Payment Dates on which such interest shall be payable and the
Regular Record Date, if any, for the interest payable on any Security on any
Interest Payment Date, or the method by which such date or dates shall be
determined, and the basis upon which interest shall be calculated if other than
on the basis of a 360-day year of twelve 30-day months;

 19
 

 

(5)           the place or places where the
principal of (and premium, if any) and any interest on Securities of the series
shall be payable, any Securities of the series may be surrendered for
registration of transfer, Securities of the series may be surrendered for
exchange and, if different than the location specified in Section 105, the
place or places where notices or demands to or upon the Company in respect of the
Securities of the series and this Indenture may be served;

(6)           the period or periods within which,
the price or prices at which, the currency in which, and other terms and
conditions upon which Securities of the series may be redeemed, in whole or in
part, at the option of the Company, if the Company is to have that option;

(7)           if other than minimum denominations
of $2,000 and any integral multiple of $1,000 thereof, the denominations in
which any Securities of the series shall be issuable;

(8)           if
other than the Trustee or the Company, the identity of each Security Registrar
and/or Paying Agent;

(9)           if other than the principal amount
thereof, the portion of the principal amount of Securities of the series that
shall be payable upon declaration of acceleration of the Maturity thereof
pursuant to Section 502 or the method by which such portion shall be determined;

(10)         if other than Dollars, the currency in
which payment of the principal of (and premium, if any) or interest, if any, on
the Securities of the series shall be payable or in which the Securities of the
series shall be denominated and the particular provisions applicable thereto;

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

(12)         any provisions in modification of, in
addition to or in lieu of the provisions of Article Fourteen that shall be
applicable to the Securities of the series;

(13)         provisions, if any, granting special
rights to the Holders of Securities of the series upon the occurrence of such
events as may be specified;

(14)         any deletions from, modifications of or
additions to the Events of Default or covenants of the Company with respect to
Securities of the series, whether or not such Events of Default or covenants
are consistent with the Events of Default or covenants set forth herein;

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

 20
 

 

interest and
the extent to which, or the manner in which, any interest payable on a temporary
global Security on an Interest Payment Date will be paid if other than in the
manner provided in Section 304;

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

(17)         if the Securities of the series are to
be issued upon the exercise of warrants, the time, manner and place for such
Securities to be authenticated and delivered;

(18)         whether and under what circumstances
the Company will pay additional amounts on the Securities of the series in
respect of certain taxes (and the terms of any such payment) and, if so,
whether the Company will have the option to redeem such Securities rather than
pay such additional amounts (and the terms of any such option); and

(19)         any other terms, conditions, rights and
preferences (or limitations on such rights and preferences) relating to the
series (which terms shall not be inconsistent with the requirements of the
Trust Indenture Act or the provisions of this Indenture).

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise
be provided in or pursuant to such Board Resolution (subject to
Section 303) and set forth in such Officers’ Certificate or in any such
indenture supplemental hereto.  Not all
Securities of any one series need be issued at the same time, and, unless
expressly provided for in such Securities, a series may not be reopened for
issuances of additional Securities of such series.

If any of the terms of the series are established by
action taken pursuant to one or more Board Resolutions, such Board Resolutions
shall be delivered to the Trustee at or prior to the delivery of the Officers’
Certificate setting forth the terms of the series.

SECTION 302.       Denominations.
All Securities shall be issuable in such denominations as shall be specified as
contemplated by Section 301.  With
respect to Securities of any series denominated in Dollars, in the absence of
any such provisions, the Securities of such series, other than Securities
issued in global form (which may be of any denomination), shall be issuable in
minimum denominations of $2,000 and any integral multiple of $1,000 thereof.

SECTION 303.       Execution,
Authentication, Delivery and Dating. The Securities shall
be executed on behalf of the Company by its Chairman of the Board, its Chief
Operating Officer, its President, any Senior Vice President or a Vice
President.  The signature of any of these
officers on the Securities may be the manual or facsimile signature of the
present or any future such authorized officer and may be imprinted or otherwise
reproduced on the Securities.

Securities bearing the manual or facsimile signatures
of individuals who were at any time the proper officers of the Company shall
bind the Company, notwithstanding that such

 21
 

 

individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.

At any time and from time to time after the execution
and delivery of this Indenture, the Company may deliver Securities of any
series, executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and delivery of such Securities,
and the Trustee in accordance with the Company Order shall authenticate and
deliver such Securities.  If not all the
Securities of any series are to be issued at one time and if the Board
Resolution or supplemental indenture establishing such series shall so permit,
such Company Order may set forth procedures acceptable to the Trustee for the
issuance of such Securities and determining terms of particular Securities of
such series such as interest rate, maturity date, date of issuance and date
from which interest shall accrue.

In authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive (except with respect to
the Initial Securities), and (subject to TIA Section 315(a) through 315(d))
shall be fully protected in relying upon, an Opinion of Counsel stating:

(a)           that the form or forms of such
Securities have been established in conformity with the provisions of this
Indenture;

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

(c)           that such Securities when completed
by appropriate insertions and executed and delivered by the Company to the
Trustee for authentication in accordance with this Indenture, authenticated and
delivered by the Trustee in accordance with this Indenture and issued by the
Company in the manner and subject to any conditions specified in such Opinion
of Counsel, will constitute the valid and binding obligations of the Company,
enforceable in accordance with their terms, subject to applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance and other similar laws of
general applicability relating to or affecting the enforcement of creditors’
rights, and to general equitable principles.

Notwithstanding the provisions of Section 301 and
of the preceding two paragraphs, if not all the Securities of any series are to
be issued at one time, it shall not be necessary to deliver the Officers’
Certificate otherwise required pursuant to Section 301 or the Company
Order and Opinion of Counsel otherwise required pursuant to the preceding two
paragraphs prior to or at the time of issuance of each Security, but such
documents shall be delivered prior to or at the time of issuance of the first
Security of such series.

The Trustee shall not be required to authenticate and
deliver any such Securities if the issue of such Securities pursuant to this
Indenture will affect the Trustee’s own rights, duties or immunities under the
Securities and this Indenture or otherwise in a manner which is not reasonably
acceptable to the Trustee.

 22

 

Each Security shall be dated the date of its
authentication.

No Security shall be entitled to any benefit under
this Indenture or be valid or obligatory for any purpose unless there appears
on such Security a certificate of authentication substantially in the form
provided for herein, duly executed by the Trustee by manual signature of an
authorized officer, and such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder and is entitled to the benefits of this Indenture.

Each Guarantor shall execute a Guarantee in the manner
set forth in Section 1507.

SECTION 304.       Temporary
Securities. Pending the preparation of definitive Securities of any series,
the Company may execute, and upon Company Order the Trustee shall authenticate
and deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities. In the case of Securities of
any series, such temporary Securities may be Global Securities.

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

SECTION 305        Registration
of Transfer and Exchange.

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

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

 23
 

 

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

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

No service charge shall be made for any registration
of transfer or exchange of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1107 or
1305 not involving any transfer.

The Company shall not be required (i) to issue,
register the transfer of or exchange Securities of any series during a period
beginning at the opening of business 15 Business Days before the day of
the selection for redemption of Securities of that series under Section 1103
or 1203 and ending at the close of business on the day of the mailing of the
relevant notice of redemption or (ii) to register the transfer of or
exchange any Security so selected for redemption in whole or in part, except
the unredeemed portion of any Security being redeemed in part, or (iii) to
issue, register the transfer of or exchange any Security which has been surrendered
for repayment at the option of the Holder, except the portion, if any, of such
Security not to be so repaid.

SECTION 306        Mutilated,
Destroyed, Lost and Stolen Securities. If any mutilated Security is
surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a new Security of the same series and of like
tenor and principal amount and bearing a number not contemporaneously
outstanding or, in case any such mutilated Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a
new Security, pay such Security.

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

Upon the issuance of any new Security under this Section 306,
the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may

 24
 

 

be imposed in relation thereto and any other expenses
(including the fees and expenses of the Trustee) connected therewith.

Every new Security of any series issued pursuant to
this Section 306 in lieu of any destroyed, lost or stolen Security shall
constitute a valid contractual obligation of the Company evidencing the same
debt as the Security in lieu of which it is issued, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall
be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that series.

The provisions of this Section 306 are exclusive
and shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities.

SECTION 307        Payment
of Interest; Interest Rights Preserved.

(a)           Unless
otherwise provided as contemplated by Section 301 with respect to any series
of Securities, interest on any Security which is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the
Person in whose name such Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest at the office or agency of the Company maintained for such purpose pursuant
to Section 1002; provided, however, that each installment of
interest on any Security may at the Company’s option be paid by (i) mailing
a check for such interest, payable to or upon the written order of the Person
entitled thereto pursuant to Section 309, to the address of such Person as
it appears on the Security Register or (ii) transferring such interest to
an account maintained by the payee located inside the United States.

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

(1)           The Company may elect to make payment
of any Defaulted Interest to the Persons in whose names the Securities of such
series (or their respective Predecessor Securities) are registered at the close
of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each Security of such series and the date of the proposed payment,
and at the same time the Company shall deposit with the Trustee an amount of
money in the currency in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities
of such series) equal to the aggregate amount proposed to be paid in respect of
such Defaulted Interest or shall make arrangements satisfactory to the Trustee
for such deposit on or prior to the date of the proposed payment, such money
when deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this clause provided. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not

 25
 

 

less than 10
days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date and, in the name
and at the expense of the Company, shall cause notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder of Securities of such series at his
address as it appears in the Security Register, not less than 10 days prior to
such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such Defaulted
Interest shall be paid to the Persons in whose name the Securities of such
series (or their respective Predecessor Securities) are registered at the close
of business on such Special Record Date and shall no longer be payable pursuant
to the following clause (2).

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

(b)           Subject
to the foregoing provisions of this Section and Section 305, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

SECTION 308.               [Reserved].

SECTION 309        Persons
Deemed Owners. Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Security is registered as the legal
owner of such Security for the purpose of receiving payment of principal of
(and premium, if any) and (subject to Sections 305 and 307) interest on
such Security and for all other purposes whatsoever, whether or not such Security
be overdue, and neither the Company, the Trustee nor any agent of the Company
or the Trustee shall be affected by notice to the contrary.

None of the Company, the Trustee, any Paying Agent, or
any Security Registrar will have any responsibility or liability for any aspect
of the records relating to or payments made on account of beneficial ownership
interests of a Global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

Notwithstanding the foregoing, with respect to any
Global Security, nothing herein shall prevent the Company, the Trustee, or any
agent of the Company or the Trustee, from giving effect to any written
certification, proxy or other authorization furnished by any depositary, as a
Holder, with respect to such Global Security or impair, as between such
depositary and owners of beneficial interests in such Global Security, the
operation of customary practices governing the exercise of the rights of such
depositary (or its nominee) as Holder of such Global Security.

 26
 

 

SECTION 310.       Cancellation.
All Securities surrendered for payment, redemption, repayment at the option of
the Holder, registration of transfer or exchange shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee. All Securities so
delivered to the Trustee shall be promptly cancelled by it. The Company may at
any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in
any manner whatsoever, and may deliver to the Trustee (or to any other Person
for delivery to the Trustee) for cancellation any Securities previously
authenticated hereunder, and all Securities so delivered, shall be promptly
cancelled by the Trustee. If the Company shall so acquire any of the Securities,
however, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation. No Securities shall be authenticated
in lieu of or in exchange for any Securities cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled
Securities shall be destroyed by the Trustee (subject to the record retention
requirement of the Exchange Act) and upon written request of the Company the
Trustee shall deliver its certificate of such destruction to the Company.

SECTION 311.       Computation
of Interest. Except as otherwise specified as contemplated by Section 301
with respect to any Securities, interest on the Securities of each series shall
be computed on the basis of a 360-day year of twelve 30-day months.

SECTION 312.               [Reserved].

SECTION 313.               [Reserved].

SECTION 314.       Registrar
and Paying Agent. The Company shall maintain an office or agency where
Securities may be presented for registration of transfer or for exchange (the “Registrar”),
and an office or agency where Securities may be presented for payment (the “Paying
Agent”) and an office or agency where notices and demands to or upon the Company,
if any, in respect of the Securities and this Indenture may be served. The
Registrar shall keep a register (the “Security Register”) of the
Securities and of their transfer and exchange. The Company may have one or more
additional Paying Agents. The term “Paying Agent” includes any additional
Paying Agent. Neither the Company nor any Affiliate thereof may act as a Paying
Agent.

The Company shall enter into an appropriate agency
agreement, which shall incorporate the provisions of the TIA, with any Agent
that is not a party to this Indenture. The agreement shall implement the
provisions of this Indenture that relate to such Agent. The Company shall
notify the Trustee of the name and address of any such Agent. If the Company
fails to maintain a Registrar or Paying Agent, or fails to give the foregoing
notice, the Trustee shall act as such and shall be entitled to appropriate
compensation in accordance with Section 607.

The Company initially appoints the Trustee as
Registrar, Paying Agent and Agent for service of notices and demands in
connection with the Securities and this Indenture.

SECTION 315.       Paying
Agent to Hold Money in Trust. Each Paying Agent shall hold in trust for the
benefit of the Holders or the Trustee all money held by the Paying Agent for
the payment of principal of or premium or interest on the Securities (whether
such

 27
 

 

money has been paid to it by the Company or any other
obligor on the Securities), and the Company and the Paying Agent shall notify
the Trustee of any default by the Company (or any other obligor on the Securities)
in making any such payment. Money held in trust by the Paying Agent need not be
segregated except as required by law. The Company at any time may require the
Paying Agent to pay all money held by it to the Trustee and account for any
funds disbursed and the Trustee may at any time during the continuance of any
Event of Default specified in Section 501(1) or (2), upon written
request to the Paying Agent, require such Paying Agent to pay forthwith all
money so held by it to the Trustee and to account for any funds disbursed. Upon
making such payment, the Paying Agent shall have no further liability for the
money delivered to the Trustee. The Paying Agent shall invest money held by it
only upon the written instructions of the Company.

SECTION 316.       Noteholder
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
the Holders. If the Trustee is not the Registrar, the Company shall furnish to
the Trustee at least five Business Days before each 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 the Holders.

SECTION 317.       Transfer
and Exchange. Subject to Section 204, when Securities are presented to
the Registrar with a request from the Holder of such Securities to register a
transfer or to exchange them for an equal principal amount of Securities of
other authorized denominations, the Registrar shall register the transfer as
requested. Every Security presented or surrendered for registration of transfer
or exchange shall be duly endorsed or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Registrar, duly executed
by the Holder thereof or his attorneys duly authorized in writing. To permit
registrations of transfers and exchanges, the Company shall issue and execute
and the Trustee shall authenticate new Securities evidencing such transfer or
exchange at the Registrar’s request. No service charge shall be made to the
Holder for any registration of transfer or exchange. The Company may require
from the Holder payment of a sum sufficient to cover any transfer taxes or
other governmental charge that may be imposed in relation to a transfer or
exchange, but this provision shall not apply to any exchange pursuant to Section 304
or 1107, (in which events the Company shall be responsible for the payment of
such taxes). The Registrar shall not be required to exchange or register a
transfer of any Security for a period of 15 days immediately preceding the
mailing of notice of redemption of Securities to be redeemed or of any Security
selected, called or being called for redemption except the unredeemed portion
of any Security being redeemed in part.

Any Holder of the Global Security or a beneficial
interest in the Global Security shall, by acceptance of such Global Security or
beneficial interest, agree that transfers of the beneficial interests in such
Global Security may be effected only through a book entry system maintained by
the Holder of such Global Security (or its agent), and that ownership of a
beneficial interest in the Global Security shall be required to be reflected in
a book entry.

 28
 

 

Except as expressly provided herein, neither the
Trustee nor the Registrar shall have any duty to monitor the Company’s
compliance with or have any responsibility with respect to the Company’s
compliance with any Federal or state securities laws.

SECTION 318.       Outstanding
Securities. If a Security is replaced pursuant to Section 306, it
ceases to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced Security is held by a bona fide purchaser in whose hands such
Security is a legal, valid and binding obligation of the Company.

If the Paying Agent holds, in its capacity as such, on
the Maturity Date, money sufficient to pay all accrued interest and principal
with respect to the Securities payable on that date and is not prohibited from
paying such money to the Holders thereof pursuant to the terms of this
Indenture, then on and after that date such Securities cease to be outstanding
and interest on them ceases to accrue.

ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401.       Satisfaction
and Discharge of Indenture. This Indenture shall upon Company Request cease
to be of further effect with respect to any series of Securities (except as to
any surviving rights of registration of transfer or exchange of Securities of
such series herein expressly provided for) and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture as to such series when

(1)           either

(A)                              all
Securities of such series theretofore authenticated and delivered (other than (i) Securities
of such series which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 306 and (ii) Securities of
such series for whose payment money has theretofore been deposited with the
Trustee or any Paying Agent and thereafter repaid to the Company, as provided
in Section 1003) have been delivered to the Trustee for cancellation; or

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

(i)              have become due and payable, or

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

(iii)            if redeemable at the option of the
Company, are to be called for redemption within one year under

 29
 

 

arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company,

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

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

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

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 607,
the obligations of the Trustee to any Authenticating Agent under Section 612
and, if money shall have been deposited with the Trustee pursuant to subclause (B) of
clause (1) of this Section, the obligations of the Trustee under Section 402
and the last paragraph of Section 1003 shall survive.

SECTION 402.       Application
of Trust Money. Subject to the provisions of the last paragraph of Section 1003,
all money deposited with the Trustee pursuant to Section 401 shall be held
in trust and applied by it, in accordance with the provisions of the Securities
and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the Trustee;
but such money need not be segregated from other funds except to the extent
required by law.

ARTICLE FIVE

REMEDIES

SECTION 501.       Events
of Default. “Event of Default”, wherever used herein with respect to
Securities of any series, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

 30

 

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

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

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

(4)           (A) default under any indenture
or instrument evidencing or under which the Company or any Subsidiary has
outstanding any Debt (other than an obligation payable on demand or maturing
less than 12 months from the date such Debt is incurred) in any individual
instance in excess of an amount equal to the greater of (a) 5% of Consolidated
Shareholders’ Equity or (b) $35 million, shall occur and be continuing
and, if such Debt has not already matured in accordance with its terms, such
Debt shall have been accelerated so that the same shall be or become due and
payable prior to the date on which the same would otherwise have become due and
payable, and such acceleration shall not be rescinded or annulled within 30
days after notice thereof shall have been given to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of all Outstanding Securities or (B) default in any
payment when due at final maturity of any such Debt, including any applicable
grace period;

(5)           prior to a Fall-Away Event, a
defeasance or a covenant defeasance, the failure of a Guarantee by one or more
Guarantors that, individually or in the aggregate, constitute a Significant
Guarantor to be in full force and effect, or the denial or disaffirmance by
such entity or entities thereof;

(6)           failure to comply with Section 801;

(7)           failure to make a Change of Control
Offer pursuant to Section 1009;

(8)           the Company or any Significant
Guarantor:

(i)                                     commences
a voluntary case under any Bankruptcy Law,

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

(iii)                               consents to the
appointment of a custodian or receiver of it or for all or substantially all of
its property, or

 31
 

 

(iv)                              makes
a general assignment for the benefit of its creditors;

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

(i)                                     is
for relief in an involuntary case against the Company or any Significant
Guarantor,

(ii)                                  appoints
a custodian or receiver of the Company or any Significant Guarantor or for all
or substantially all of the property of any of the foregoing, or

(iii)                               orders the liquidation
of the Company or any Significant Guarantor,

and the order or decree remains unstayed and in effect
for 60 consecutive days; or

(10)         any other Event of Default provided
with respect to Securities of that series.

SECTION 502.   Acceleration of Maturity;
Rescission and Annulment. If an Event of Default described in clause (1), (2) or
(10) of Section 501 with respect to Securities of any series at the
time Outstanding occurs and is continuing, then in every such case the Trustee
or the Holders of not less than 25% in aggregate principal amount of the
Outstanding Securities of that series may declare the principal amount (or, if
the Securities of that series are Original Issue Discount Securities, such
portion of the principal amount as may be specified in the terms of that
series) of all of the Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
portion thereof) shall become immediately due and payable. If an Event of
Default described in clause (3), (4), (5), (6) or (7) of Section 501
occurs and is continuing, then in every such case the Trustee or the Holders of
not less than 25% in aggregate principal amount of all the Securities then
Outstanding may declare the principal amount (or, if any such Securities are
Original Issue Discount Securities, such portion of the principal amount as may
be specified in the terms of that series) of all of the Outstanding Securities
to be due and payable immediately, by a notice in writing to the Company (and
to the Trustee if given by the Holders) and upon any such declaration such
principal amount (or specified portion thereof) shall become immediately due
and payable. If an Event of Default described in clause (8) or (9) of
Section 501 occurs and is continuing, all Outstanding Securities shall
become immediately due and payable without any declaration or other act on the
part of the Trustee or the Holders.

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

 32
 

 

(1)           the Company has paid or deposited
with the Trustee a sum sufficient to pay in the currency in which the
Securities of such series are payable (except as otherwise specified pursuant
to Section 301 for the Securities of such series),

(A)          all
overdue interest on all Outstanding Securities of that series (or of all
series, as the case may be),

(B)           all
unpaid principal of (and premium, if any, on) any Outstanding Securities of
that series (or of all series, as the case may be) which has become due
otherwise than by such declaration of acceleration, and interest on such unpaid
principal at the rate or rates prescribed therefor in such Securities,

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

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

(2)           all Events of Default with respect to
Securities of that series (or of all series, as the case may be), other than
the non-payment of amounts of principal of (or premium, if any) or interest on
Securities of that series which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 513.

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

SECTION 503.   Collection of Indebtedness and
Suits for Enforcement by Trustee. The Company covenants that if

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

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

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

If the Company fails to pay such amounts forthwith
upon such demand, the Trustee, in its own name as trustee of an express trust,
may institute a judicial proceeding for the 

 33
 

 

collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon such Securities, wherever
situated.

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

SECTION 504.   Trustee May File Proofs of
Claim. In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition
or other judicial proceeding relative to the Company or any other obligor upon
the Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal, premium, if any, or interest)
shall be entitled and empowered, by intervention in such proceeding or
otherwise,

(i)      to file and prove a claim for the whole amount
of principal (and premium, if any), or such portion of the principal amount of
any series of Original Issue Discount Securities as may be specified in the
terms of such series, and interest owing and unpaid in respect of the
Securities and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders allowed in such judicial
proceeding, and

(ii)     to collect and receive any moneys or other
property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607.

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 Securities or the rights of any Holder thereof or to authorize
the Trustee to vote in respect of the claim of any Holder in any such proceeding.

SECTION 505.   Trustee May Enforce Claims
Without Possession of Securities. All rights of action and claims under
this Indenture or the Securities may be prosecuted and 

 34
 

 

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

SECTION 506.   Application of Money Collected.
Any money or property collected by the Trustee pursuant to this Article shall
be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal (or
premium, if any, on) or interest, upon presentation of the Securities, and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

First:  To the payment of all amounts due the Trustee
under Section 607;

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

Third:  The balance, if any, to the Company or any
other Person or Persons entitled thereto.

SECTION 507.   Limitation on Suits. No
Holder of any Security of any series shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless

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

(2)           the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series in the case of
any Event of Default described in clause (1), (2) or (10) of Section 501,
or, in the case of any Event of Default described in clause (3), (4), (5), (6) or
(7) of Section 501, the Holders of not less than 25% in principal
amount of all Outstanding Securities, 
shall have made written request to the Trustee to institute proceedings
in respect of such Event of Default in its own name as Trustee hereunder;

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

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

(5)           no direction inconsistent with such
written request has been given to the Trustee during such 60-day period
by the Holders of not less than a majority in principal amount of the
Outstanding Securities of that series in the case of any Event of Default 

 35
 

 

described in
clause (1), (2) or (10) of Section 501, or, in the case of any
Event of Default described in clause (3), (4), (5), (6) or (7) of Section 501,
the Holders of not less than 25% in principal amount of all Outstanding
Securities,;

it being understood and intended that no one or more
of such Holders shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other Holders of Securities of the same series, in the case
of any Event of Default described in clause (1), (2) or (10) of Section 501,
or, in the case of any Event of Default described in clause (3), (4), (5), (6) or
(7) of Section 501, the Holders of not less than 25% in principal
amount of all Outstanding Securities, or to obtain or to seek to obtain priority
or preference over any other of such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all Holders of Securities of the same series, in the case of any
Event of Default described in clause (1), (2) or (10) of Section 501,
or, in the case of any Event of Default described in clause (3), (4), (5), (6) or
(7) of Section 501, the Holders of not less than 25% in principal
amount of all Outstanding Securities,.

SECTION 508.   Unconditional Right of Holders
to Receive Principal, Premium and Interest. Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment, as provided herein (including,
if applicable, Article Fourteen) and in such Security, of the principal of
(and premium, if any), including Redemption Price and Repayment Price, and
(subject to Section 307) interest on, such Security on the respective due
dates therefor and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

SECTION 509.   Restoration of Rights and
Remedies. If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to the
Trustee or to such Holder, then and in every such case, subject to any determination
in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.

SECTION 510.   Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 306,
no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion
or employment of any other appropriate right or remedy.

SECTION 511.   Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any Securities to
exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article or
by law to 

 36
 

 

the Trustee or to the Holders may be exercised from
time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

SECTION 512.   Control by Holders. With
respect to the Securities of any series, the Holders of not less than a
majority in principal amount of the Outstanding Securities of such series shall
have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee, relating to or arising under clause (1), (2) or (10) of
Section 501, and, with respect to all Securities, the Holders of not less
than a majority in principal amount of all Outstanding Securities shall have
the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred
on the Trustee, not relating to or arising under clause (1), (2) or (10) of
Section 501, provided, however, that in each case

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

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

(3)           the Trustee need not take any action
which might involve it in personal liability or be unjustly prejudicial to the
Holders of Securities of such series not consenting.

SECTION 513.   Waiver of Past Defaults. Subject
to Section 502, the Holders of not less than a majority (in the case of
clauses (3), (4) or (5) of Section 501) or all (in the case of
clauses (6) and (7) of Section 501) in principal amount of the
Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series waive any past default described in Section 501
and its consequences, except a default

(1)           in respect of the payment of the
principal of (or premium, if any) or interest on any Security, or

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

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

SECTION 514.   Undertaking for Costs. All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and

 37
 

 

that such court may in its discretion assess reasonable
costs, including reasonable attorneys’ fees, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section shall not
apply to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the Outstanding Securities to which the suit relates, or to
any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any), including Redemption Price and Repayment
Price, or interest on any Security on or after the respective Stated Maturities
expressed in such Security (or, in the case of redemption or repayment, on or
after the Redemption Date or Repayment Date, as the case may be).

SECTION 515.   Waiver of Stay or Extension Laws.
The Company covenants (to the extent that it may lawfully do so) that it will
not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution
of every such power as though no such law had been enacted.

ARTICLE SIX

THE TRUSTEE

SECTION 601.   Certain Duties and
Responsibilities.

(a)           Except
during the continuance of an Event of Default,

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

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

(b)           In
case 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 their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.

 

 38

 

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

(1)           this subsection shall not be
construed to limit the effect of subsection (a) of this Section;

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

(3)           the Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders of a majority in principal amount
of the Outstanding Securities of any series, determined as provided in Section 512,
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture with respect to the Securities of such
series; and

(4)           no provision of this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.

(d)           Whether
or not herein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section.

SECTION 602.   Notice of Defaults. Within
90 days after the occurrence of any default or Event of Default hereunder with
respect to the Securities of any series, the Trustee shall transmit in the
manner and to the extent provided in TIA Section 313(c), notice of such default
hereunder known to the Trustee, unless such default shall have been cured or
waived; provided, however, that, except in the case of a default
in the payment of the principal of (or premium, if any), including Redemption
Price and Repayment Price, or interest on any Security of such series, the
Trustee shall be protected in withholding such notice if and so long as a Responsible
Officer of the Trustee in good faith determines that the withholding of such
notice is in the interest of the Holders of Securities of such series. For the
purpose of this Section, the term “default” means any event which is, or
after notice or lapse of time or both would become, an Event of Default with
respect to Securities of such series.

SECTION 603.   Certain Rights of Trustee. Subject
to the provisions of TIA Section 315(a) through 315(d):

(1)           the Trustee may rely and shall be
protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or

 39
 

 

other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

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

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

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

(5)           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 of Securities of
any series pursuant to this Indenture, unless such Holders shall have offered
to the Trustee reasonable security or indemnity against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction;

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

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

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

The Trustee shall not be required to expend or risk
its own funds or otherwise incur any financial liability in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers
if it shall have reasonable grounds for believing that repayment of such funds
or adequate indemnity against such risk or liability is not reasonably assured
to it.

SECTION 604.   Trustee Not Responsible for
Recitals or Issuance of Securities. The recitals contained herein and in
the Securities, except for the Trustee’s certificates of

 40
 

 

authentication, shall be taken as the statements of
the Company, and the Trustee or any Authenticating Agent assumes no
responsibility for their correctness. The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Securities, except
that the Trustee represents that it is duly authorized to execute and deliver
this Indenture, authenticate the Securities and perform its obligations
hereunder and that the statements made by it in a Statement of Eligibility and
Qualification on Form T-1 supplied to the Company are true and
accurate, subject to the qualifications set forth therein. The Trustee or any
Authenticating Agent shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof.

SECTION 605.   May Hold Securities. The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or
any other agent of the Company or of the Trustee, in its individual or any
other capacity, may become the owner or pledgee of Securities and, subject to
TIA Sections 310(b) and 311, may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Paying
Agent, Security Registrar or such other agent.

SECTION 606.   Money Held in Trust. Money
held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law. The Trustee shall be under no liability
for interest on any money received by it hereunder except as otherwise agreed
with the Company.

SECTION 607.   Compensation and Reimbursement.
The Company agrees:

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

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

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

The obligations of the Company under this Section to
compensate the Trustee, to pay or reimburse the Trustee for expenses,
disbursements and advances and to indemnify and hold harmless the Trustee shall
constitute additional indebtedness hereunder and shall survive the satisfaction
and discharge of this Indenture. As security for the performance of such obligations
of the Company, the Trustee shall have a claim prior to the Securities upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the payment of

 41
 

 

principal of (and premium, if any), including
Redemption Price and Repayment Price or interest on particular Securities.

SECTION 608.   Corporate Trustee Required;
Eligibility; Conflicting Interests. There shall at all times be a Trustee
hereunder which shall be eligible to act as Trustee under TIA Section 310(a)(1) and
shall have a combined capital and surplus of at least $50,000,000. If such
corporation or national banking association publishes reports of condition at
least annually, pursuant to law or to the requirements of Federal, State,
Territorial or District of Columbia supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
corporation or national banking association shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.

SECTION 609.   Resignation and Removal;
Appointment of Successor.

(a)           No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 610.

(b)           The
Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company. If the instrument of acceptance
by a successor Trustee required by Section 610 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities
of such series.

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

(d)           If
at any time:

(1)           the Trustee shall fail to comply with
the provisions of TIA Section 310(b) after written request therefor
by the Company or by any Holder who has been a bona fide Holder of a Security
for at least six months, or

(2)           the Trustee shall cease to be
eligible under Section 608 and shall fail to resign after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a
Security for at least six months, or

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

 42
 

 

then, in any such case, (i) the Company, by a
Board Resolution, may remove the Trustee with respect to all Securities, or (ii) subject
to TIA Section 315(e), any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee with respect to all Securities and the appointment of a successor
Trustee or Trustees.

(e)           If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee or Trustees with respect to the Securities
of that or those series (it being understood that any such successor Trustee
may be appointed with respect to the Securities of one or more or all of such
series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series). If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall forthwith upon its acceptance
of such appointment become the successor Trustee with respect to the Securities
of such series and to that extent supersede the successor Trustee appointed by
the Company. If no successor Trustee with respect to the Securities of any
series shall have been so appointed by the Company or the Holders and accepted
appointment in the manner hereinafter provided, any Holder who has been a bona
fide Holder of a Security of such series for at least six months may, on behalf
of himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

(f)            The
Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a successor
Trustee with respect to the Securities of any series to the Holders of
Securities of such series in the manner provided for in Section 106. Each
notice shall include the name of the successor Trustee with respect to the Securities
of such series and the address of its Corporate Trust Office.

SECTION 610.   Acceptance of Appointment by
Successor.

(a)           In
case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge
and deliver to the Company and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company
or the successor Trustee, such retiring Trustee shall, upon payment of its
charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder, subject nevertheless to its lien,
if any, provided for in Section 607.

(b)           In
case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring
Trustee and each

 43
 

 

successor Trustee with respect to the Securities of one or more series
shall execute and deliver an indenture supplemental hereto wherein each
successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall constitute
such Trustee co-trustees of the same trust and that each such Trustee shall be
trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such Trustee; and upon the execution
and delivery of such supplemental indenture to resignation or removal of the
retiring Trustee shall become effective to the extent provided therein and each
such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment
of such successor Trustee relates; but, on request of the Company or any
successor Trustee, such retiring Trustee shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates, subject nevertheless
to the lien, if any, provided for in Section 607. Whenever there is a
successor Trustee with respect to one or more (but less than all) series of
securities issued pursuant to this Indenture, the terms “Indenture” and “Securities”
shall have the meanings specified in the provisos to the respective definitions
of those terms in Section 101 which contemplate such situation.

(c)           Upon
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all rights, powers and trusts referred to in paragraph (a) or
(b) of this Section 610, as the case may be.

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

SECTION 611.   Merger, Conversion,
Consolidation or Succession to Business. Any corporation or national
banking association into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation or national banking
association resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation or national banking association
succeeding to all or substantially all the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such corporation
or national banking association shall be otherwise qualified and eligible under
this Article, without the execution or filing of any paper or any further act
on the part of any of the parties hereto. In case any Securities shall have
been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such

 44
 

 

authenticating Trustee may adopt such authentication
and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities; and in case at that
time any of the Securities shall not have been authenticated, any successor
Trustee may authenticate such Securities either in the name of any predecessor
hereunder or in the name of the successor Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Securities
or in this Indenture provided that the certificate of the Trustee shall have; provided,
however, that the right to adopt the certificate of authentication of
any predecessor Trustee or to authenticate Securities in the name of any
predecessor Trustee shall apply only to its successor or successors by merger,
conversion or consolidation.

SECTION 612.   Appointment of Authenticating
Agent. At any time when any of the Securities remain Outstanding, the
Trustee may appoint an Authenticating Agent or Agents with respect to one or
more series of Securities which shall be authorized to act on behalf of the Trustee
to authenticate Securities of such series and the Trustee shall give written
notice of such appointment to all Holders of Securities of the series with
respect to which such Authenticating Agent will serve, in the manner provided
for in Section 106. Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes
as if authenticated by the Trustee hereunder. Any such appointment shall be
evidenced by an instrument in writing signed by a Responsible Officer of the
Trustee, and a copy of such instrument shall be promptly furnished to the
Company. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of authentication,
such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation or national banking association organized and doing business
under the laws of the United States of America, any State thereof or the
District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authority. If such corporation
or national banking association publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation or national banking association shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect specified in this Section.

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

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An Authenticating Agent may resign at any time by
giving written notice thereof to the Trustee and to the Company. The Trustee
may at any time terminate the agency of an Authenticating Agent by giving
written notice thereof to such Authenticating Agent and to the Company. Upon
receiving such a notice of resignation or upon such a termination, or in case
at any time such Authenticating Agent shall cease to be eligible in accordance
with the provisions of this Section, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give
written notice of such appointment to all Holders of Securities of the series
with respect to which such Authenticating Agent will serve, in the manner provided
for in Section 106. Any successor Authenticating Agent upon acceptance of
its appointment hereunder shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

The Trustee agrees to pay to each Authenticating Agent
from time to time reasonable compensation for its services under this Section,
and the Trustee shall be entitled to be reimbursed for such payments, subject
to the provisions of Section 607.

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

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

	
  

  	
  WELLS FARGO
  BANK, N.A.,

  	
   

  
	
   

  	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  as Authenticating
  Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer

  	
   

  

 

SECTION 613.   Co-Trustee.

(a)           At
any time, only for the purpose of, and only to the extent required for, meeting
the legal requirements of any applicable jurisdiction, the Trustee shall have
the power to appoint one or more persons to act as co-trustee under this
Indenture, with such powers as may be provided in the instrument of
appointment, and to vest in such person or persons any property, title, right
or power deemed necessary or desirable, subject to the remaining provisions of
this Section. Before the appointment of any co-trustee the Trustee shall, if
the circumstances so permit, consult the Company and if any co-trustee so
appointed shall be a person to whose appointment the Company might reasonably
object by reason of any conflict of interest or other disability, a
determination made by the Trustee (after consulting its legal advisor in the
appropriate jurisdiction) 

 46
 

 

that in its opinion there is no such conflict of interest or other
disability in relation to any such co-trustee shall be conclusive and binding
upon the Company.

Should any written instrument from the Company be
required by any co-trustee so appointed for more fully confirming to such
co-trustee such property, title, right or power, any and all such instruments
shall, on request, be executed, acknowledged and delivered by the Company.

(b)           Each
co-trustee shall, to the extent permitted by applicable law, be appointed subject
to the following terms:

(1)           The rights, powers, duties and
obligations conferred or imposed upon any such co-trustee shall not be greater
than those conferred or imposed upon the Trustee, and such rights and powers
shall be exercisable only jointly with the Trustee, except to the extent that,
under any law of any jurisdiction in which any particular act or acts is to be
performed, the Trustee shall be incompetent or unqualified to perform such act
or acts, in which event such rights and powers shall be exercised by such
co-trustee subject to the provisions of Section 613(b)(4) below.

(2)           The Trustee may at any time, by an
instrument in writing executed by it, accept the resignation of or remove any
co-trustee appointed under this Section.

(3)           No co-trustee under this Indenture
shall be liable by reason of any act or omission of any other co-trustee
appointed under this Indenture.

(4)           No power given to such co-trustee
shall be separately exercised hereunder by such co-trustee except with the
consent in writing of the Trustee.

(c)           The
provisions of Section 607 hereof shall extend to any co-trustee, its officers,
employees, agents, successors and assigns appointed hereunder.

(d)           Any
Act of Holders delivered to the Trustee shall be deemed to have been delivered
to each such co-trustee.

ARTICLE SEVEN

HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND COMPANY

SECTION 701.   Disclosure of Names and
Addresses of Holders. Every Holder, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the
Trustee nor any agent of either of them shall be held accountable by reason of
the disclosure of any such information as to the names and addresses of the
Holders in accordance with TIA Section 312, regardless of the source from
which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
TIA Section 312(b).

 

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SECTION 702.   Reports by Trustee. Within
60 days after May 15 of each year commencing with the first May 15
after the first issuance of Securities pursuant to this Indenture, the Trustee
shall transmit to the Holders, in the manner and to the extent provided in TIA Section 313(c),
a brief report dated as of such May 15 if required by TIA Section 313(a).

SECTION 703.   Reports by Company.

(a)           If
and for so long as the Company is subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act and any Securities under this Indenture are
outstanding, the Company shall file with the Commission and provide the Trustee
and holders of Securities under such Indenture with such annual reports and
such information, documents and other reports as are specified in Sections 13
and 15(d) of the Exchange Act and applicable to a U.S. person subject to
such Sections, such information, documents and reports to be so filed and
provided at the times specified for the filing of such information, documents
and reports under such Sections.

(b)           At
any time when the Company is not subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act and any Securities under this Indenture are
outstanding, the Company will provide to the Trustee and the holders of
Securities:

(i)      within 90 days after the end of the
Company’s fiscal year, financial statements and a Management’s Discussion and
Analysis of Financial Condition and Results of Operations substantially
equivalent to that which would be required to be included in an Annual Report
on Form 10-K of the Company were the Company subject to an obligation
to file such a report under the Exchange Act;

(ii)     within 40 days after the end of each of the
first three fiscal quarters in each fiscal year of the Company, financial
statements and a Management’s Discussion and Analysis of Financial Condition
and Results of Operations substantially equivalent to that which would be
required to be included in a Quarterly Report on Form 10-Q of the Company
were the Company subject to an obligation to file such a report under the
Exchange Act; and

(iii)    within the time periods required by the
Commission for issuers subject to the reporting requirements of Section 13(d) or
15(d) of the Exchange Act, the information that would be required to be
filed with the Commission in Current Reports in Form 8-K (other than
in respect of Items 1.01 (in the case of management compensation and similar
agreements only), 2.02, 3.01, 3.02, 3.03, 5.03, 5.04, 5.05, 7.01 and 8.01 (or
any successor items to such items) under Form 8-K) if the Company
were subject to such reporting requirements;

provided, however, that the
reports set forth in clauses (i), (ii) and (ii) above shall not be required
to: (a) contain any certification required by any such form or the
Sarbanes-Oxley Act of 2002, (b) include separate financial statements of
any Guarantor or (c) include any exhibit; provided, further,
that any exhibit that would be required to be filed pursuant to Item 9.01 under
Form 8-K (or any successor item to such item) if the Company were
subject to the reporting requirements of Section 13(d) or 15(d) of
the Exchange Act shall be made available to the Trustee and any

 48
 

 

holder of Securities upon request. Additionally,
substantially concurrently with the delivery to the Trustee and the holders of
the Securities of the reports specified in (i), (ii) and (iii) above,
the Company shall (A) post copies of such reports on its website and (B) in
the case of clauses (i) and (ii) above, hold a conference call with
holders of Securities covering such matters as are reasonably customary for
companies with publicly traded debt or equity securities.

(c)           The
Company also shall comply with the other provisions of Section 314(a) of
the TIA.

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE,
TRANSFER OR LEASE

SECTION 801.   Company May Consolidate,
Etc., Only on Certain Terms. The Company shall not amalgamate or
consolidate with or merge into any other Person or convey, transfer or lease
its properties and assets substantially as an entirety to any Person, unless:

(1)           the Person formed by such
consolidation or amalgamation or into which the Company is merged or the Person
which acquires by conveyance or transfer, or which leases, the properties and
assets of the Company substantially as an entirety shall be a corporation, partnership
or trust organized and existing under the laws of the United States of America
or any State thereof or the District of Columbia and shall expressly assume, by
an indenture supplemental hereto, executed and delivered to the Trustee, in
form satisfactory to the Trustee, the Company’s obligation for the due and
punctual payment of the principal of (and premium, if any), including
Redemption Price and Repayment Price, and interest on all the Securities and
the performance of every covenant of this Indenture and the Securities on the
part of the Company to be performed or observed;

(2)           immediately after giving effect to
such transaction, no Event of Default, and no event which, after notice or
lapse of time or both, would become an Event of Default, shall have happened
and be continuing; and

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

This Section shall only apply to a merger,
amalgamation or consolidation in which the Company  is not the surviving corporation and to
conveyances, leases and transfers by the Company as transferor or lessor.

Successor Person Substituted. Upon
any amalgamation or consolidation by the Company with or merger by the Company
into any other Person or any conveyance, transfer or lease of the properties
and assets of the Company substantially as an entirety in accordance with Section 801,
the successor Person formed by such amalgamation or consolidation or into which
the Company is merged or to which such conveyance, transfer or lease is made

 49
 

 

shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor corporation had been named as the Company
herein, and in the event of any such conveyance or transfer, the Company (which
term shall for this purpose mean the Person named as the “Company” in the first
paragraph of this Indenture or any successor corporation which shall
theretofore become such in the manner described in Section 801), except in
the case of a lease, shall be discharged of all obligations and covenants under
this Indenture and the Securities and may be dissolved and liquidated.

SECTION 803.   Securities To Be Secured in
Certain Events. If, as a result of any amalgamation or consolidation of the
Company with or merger of the Company with any other Person, or upon any
conveyance, lease or transfer of the property of the Company as an entirety or
substantially as an entirety to any other Person, any properties or assets of
the Company would become subject to a mortgage, pledge, charge, security
interest or other encumbrance securing Debt, then unless such mortgage, pledge,
charge, security interest or other encumbrance could be created without equally
and ratably securing the Securities under Section 1006, the Company or
such successor Person, as the case may be, prior to or simultaneously with such
amalgamation, consolidation, merger, conveyance, lease or transfer, will, with
respect to such properties or assets, secure the Securities Outstanding
hereunder (together with, if the Company shall so determine, any other Debt of
the Company now existing or hereafter created which is not subordinate to the
Securities) equally and ratably with (or prior to) all such Debt which upon
such amalgamation, consolidation, merger, conveyance, lease or transfer is to become
secured as to such properties or assets, or will cause such Securities to be so
secured; provided that for the purpose of providing such equal and
rateable or prior security, the principal amount of Original Issue Discount
Securities shall mean that amount which would at the time of making such
effective provision be due and payable pursuant to Section 502 and the
terms of such Original Issue Discount Securities upon a declaration of
acceleration of the Maturity thereof, and the extent of such equal and ratable
security shall be adjusted, to the extent permitted by law, as and when said
amount changes over time pursuant to the terms of such Original Issue Discount
Securities.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

SECTION 901.   Supplemental Indentures Without
Consent of Holders. Without the consent of any Holders, the Company and the
Guarantors, when authorized by or pursuant to a Board Resolution, and the
Trustee, at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the following
purposes:

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

(2)           to add to the covenants of the
Company or a Guarantor for the benefit of the Holders of all or any series of
Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are being included

 50
 

 

solely for the
benefit of such series) or to surrender any right or power herein conferred
upon the Company; or

(3)           to add any additional Events of
Default (and if such Events of Default are to be for the benefit of less than all
series of Securities, stating that such Events of Default are being included
solely for the benefit of such series); or

(4)           to secure the Securities pursuant to
the provisions of Section 803, 1006 or 1007 or otherwise; or

(5)           to establish the form or terms of
Securities of any series as permitted by Sections 201 and 301; or

(6)           to evidence and provide for the
acceptance of appointment hereunder by a successor Trustee with respect to the
Securities of one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to
the requirements of Section 610(b); or

(7)           to close this Indenture with respect
to the authentication and delivery of additional series of Securities, to cure
any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture; provided,
however, such action shall not adversely affect the interests of the
Holders of Securities of any particular series in any material respect; or

(8)           to comply with any requirements of
the Commission in order to effect and maintain the qualification of this
Indenture under the Trust Indenture Act; or

(9)           to supplement any of the provisions
of this Indenture to the extent necessary to permit or facilitate the
defeasance and discharge of any series of Securities pursuant to Sections 401,
1402 and 1403; provided, however, such action shall not
materially adversely affect the interests of any of the Holders of Securities,
taken as a whole; or

(10)         to reflect the release of a Guarantor
from its obligations with respect to its Guarantee pursuant to Section 1504
or to add a Guarantor pursuant to Section 1011; or

(11)         to cure any ambiguity, defect, mistake
or inconsistency in this Indenture or to conform this Indenture to the
provisions of the “Description of Notes” in the prospectus supplement pursuant
to which such Securities were issued that are intended to be a verbatim
recitation of the provisions of this Indenture; provided such action
does not materially adversely affect the interests of Holders, taken as a whole,
in the good faith determination of the Board of Directors.

SECTION 902.   Supplemental Indentures With
Consent of Holders. With the consent of the Holders of not less than a
majority in principal amount of all Outstanding Securities affected by such
supplemental indenture, by Act of said Holders delivered to the Company

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and the Trustee, the Company and the Guarantors, when
authorized by or pursuant to a Board Resolution, and the Trustee may enter into
an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture which affect such Securities or of modifying in any manner the
rights of the Holders of such Securities under this Indenture; provided,
however, that no such supplemental indenture shall, without the consent
of the Holder of each Outstanding Security affected thereby,

(1)           change the Stated Maturity of the
principal of, or any installment of interest on, any such Security, or change
the time at which any Security may or shall be redeemable or repayable or
reduce the principal amount thereof or the rate of interest thereon or any
premium, including Redemption Price and Repayment Price, payable upon the
redemption or repayment thereof, or change any obligation of the Company to pay
additional amounts provided for pursuant to Section 301, or reduce the
amount of the principal of an Original Issue Discount Security that would be
due and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 502 or the amount thereof provable in bankruptcy pursuant to Section 504,
or adversely affect any right of repayment at the option of any Holder of any
Security, or change any Place of Payment where, or the currency in which, any
Security or any premium or the interest thereon is payable, or modify Section 508,
or

(2)           reduce the percentage in principal
amount of the Outstanding Securities of any series, the consent of whose
Holders is required for any such supplemental indenture, or the consent of
whose Holders is required for any waiver of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences provided
for in this Indenture, or

(3)           modify any of the provisions of this
Section, Section 513 or Section 1008, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby, or

(4)           release any Guarantee other than as
provided for in this Indenture or modify any Guarantee in any manner adverse to
the Holders in any material respect.

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

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

SECTION 903.   Execution of Supplemental
Indentures. In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or

 52
 

 

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

SECTION 904.   Effect of Supplemental
Indentures. Upon the execution of any supplemental indenture under this
Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes;
and every Holder theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

SECTION 905.   Conformity with Trust Indenture
Act. Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.

SECTION 906.   Reference in Securities to
Supplemental Indentures. Securities of any series authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article may,
and shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Company, to any such
supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.

SECTION 907.   Notice of Supplemental
Indentures. Promptly after the execution by the Company and the Trustee of
any supplemental indenture pursuant to the provisions of Section 902, the
Company shall give notice thereof to the Holders of each Outstanding Security
so affected, pursuant to Section 106, setting forth in general terms the
substance of such supplemental indenture.

ARTICLE TEN

COVENANTS

SECTION 1001.   Payment of Principal, Premium,
if any, and Interest. The Company covenants and agrees for the benefit of
each series of Securities that it will duly and punctually pay the principal of
(and premium, if any), including Redemption Price and Repayment Price, and
interest on the Securities of that series in accordance with the terms of the
Securities and this Indenture.

SECTION 1002.   Maintenance of Office or Agency.
The Company will maintain in each Place of Payment for any series of Securities
an office or agency where Securities of that series may be presented or
surrendered for payment, where Securities of that series may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Securities of that series and this Indenture may
be served.

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The Company may also from time to time designate one
or more other offices or agencies where the Securities of one or more series
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided, however, that no
such designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in accordance with the requirements
set forth above for Securities of any series for such purposes. The Company
will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or agency.
Unless otherwise specified with respect to any Securities as contemplated by Section 301
with respect to a series of Securities, the Company hereby designates as a
Place of Payment for each series of Securities the Corporate Trust Office, and
initially appoints the Trustee at the Corporate Trust Office as Paying Agent in
such Place of Payment and as its agent to receive all presentations,
surrenders, notices and demands.

SECTION 1003.   Money for Securities Payments
to Be Held in Trust. If the Company shall at any time act as its own Paying
Agent with respect to any series of Securities, it will, on or before each due
date of the principal of (and premium, if any), including Redemption Price and
Repayment Price, or interest on any of the Securities of that series, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum in the
currency in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such
series) sufficient to pay the principal (and premium, if any) or interest so
becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act.

Whenever the Company shall have one or more Paying
Agents for any series of Securities, it will, prior to or on each due date of
the principal of (and premium, if any) or interest on any Securities of that
series, deposit with a Paying Agent a sum (in the currency described in the
preceding paragraph) sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or interest, and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of
its action or failure so to act.

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

(1)           hold all sums held by it for the
payment of the principal of (and premium, if any) and interest on Securities of
such series in trust for the benefit of the Persons entitled thereto until such
sums shall be paid to such Persons or otherwise disposed of as herein provided;

(2)           give the Trustee notice of any
default by the Company (or any other obligor upon the Securities of such
series) in the making of any payment of principal of (or premium, if any) or
interest on the Securities of such series; and

 54
 

 

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

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

Except as provided in the Securities of any series,
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 (and premium, if any) or
interest on any Security of any series 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 Company Request, or (if then held by
the Company) shall be discharged from such trust; and the Holder of such
Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that
the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in an
Authorized Newspaper, notice that such money remains unclaimed and that, after
a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

SECTION 1004.   Statement as to Compliance.
The Company will deliver to the Trustee, within 120 days after the end of
each fiscal year, a brief certificate from the principal executive officer, principal
financial officer or principal accounting officer as to his or her knowledge of
the Company’s compliance with all conditions and covenants under this Indenture.

SECTION 1005.   Existence. Subject to Article Eight,
the Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its existence and its rights (charter and
statutory) and franchises; provided, however, that the Company
shall not be required to preserve any such right or franchise if the Company shall
determine that the preservation thereof is no longer desirable in the conduct
of the business of the Company and its Subsidiaries as a whole and that the
loss thereof is not disadvantageous in any material respect to the Holders.

SECTION 1006.   Negative Pledge.

(a)           For
so long as any of the Securities are outstanding, the Company will not, and
will not permit any Subsidiary to, create any Security Interest on any of its
property or assets (including Capital Stock), whether owned on the date hereof
or hereafter acquired, to secure any Debt unless it shall secure equally and
ratably with such Debt all Securities then Outstanding for so long as such
obligation is so secured; provided that this covenant shall not hinder
or prevent

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the sale of any property or assets of the Company (except in the case
of a sale in connection with a transaction prohibited by Section 1007) or
hinder or prevent:

(i)      Security Interests existing on the date of
initial issuance of the Securities;

(ii)     Security Interests on any property, Capital
Stock, or other assets existing at the time of acquisition thereof by the
Company or any Subsidiary;

(iii)    Security Interests on property, Capital
Stock, or other assets of a corporation or other entity existing at the time
such corporation or other entity is merged into or consolidated with the
Company or any Subsidiary or at the time of a sale, lease or other disposition
of the properties of a corporation or other entity as an entirety or
substantially as an entirety to the Company or any Subsidiary;

(iv)    Security Interests on property, Capital
Stock or other assets (“Secured Projects”) acquired, constructed or
improved by the Company or any Subsidiary after the initial issuance of the
Securities which are created or assumed contemporaneously with, or within 270
days after, such acquisition (or, in the case of property or other assets constructed
or improved, within 270 days after the completion or commencement of commercial
operation of such property or other assets, whichever is later) to secure or provide
for the payment of any part of the purchase price of such property, Capital
Stock, or other assets or cost of such construction or improvement; provided
that if a commitment to so finance such a payment is obtained prior to or
within such 270-day period and the related Security Interest is created
within 90 days after the expiration of the 270-day period, the applicable
Security Interest shall be deemed to be included in this clause (iv);

(v)     Security Interests securing Debt issued pursuant
to a  receivables facility or similar
credit arrangement which provides for Debt issued by the Company or any
Subsidiary thereunder and interest thereon and related obligations to be
secured by a pledge of receivables of the Company or any Subsidiary in
accordance with an indenture or other agreement;

(vi)    the granting of any security, whether by way
of letter of credit, surety bond or otherwise, which is posted or granted
pursuant to a court order or agreement with a third Person in the context of a
dispute by the Company or any Subsidiary of the claims by a third Person
purportedly arising in the ordinary course of business of, or incident to
current construction by, the Company or any Subsidiary of the Company;

(vii)   the deposit of cash, letters of credit,
surety bonds, labor and material bonds, or any other security in connection
with contracts (other than for the payment of Debt) or tenders in the ordinary
course of business or to secure margin accounts in the ordinary course of
business, workmen’s compensation, surety or appeal bonds, costs of litigation
required by law, public and statutory obligations, liens or claims whether arising
at common law, equity or pursuant to statute whether incident to current
construction or otherwise, including but not limited to mechanics’, workmen’s,
carriers’ and other similar liens;

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(viii)  Security Interests securing Debt or other
obligations of a Subsidiary owing to the Company or a wholly-owned Subsidiary;

(ix)    Security Interests on or other conveyances
of property or other assets owned by the Company or any Subsidiary in favor of
the United States of America or any State, territory or possession thereof (or
the District of Columbia), the Government of Canada or any Province or
Territory thereof or any member country in the European Union, or any department,
agency, instrumentality or political subdivision of the United States of
America or any State, territory or possession thereof (or the District of Columbia),
the Government of Canada or any Province or Territory thereof or any member
country in the European Union, to secure partial, progress, advance or other
payments pursuant to any contract or statute or to secure any Debt incurred for
the purpose of financing all or any part of the purchase price or the cost of
construction or improvement of the property subject to such Security Interests;
or

(x)     any extension, renewal or replacement (or
successive extensions, renewals or replacements), in whole or in part, of any
Security Interest referred to in the foregoing clauses (i) to (ix),
inclusive, without increase of the principal of the Debt secured thereby (plus
the aggregate amount of premiums, costs and expenses paid or incurred in connection
with such extension, renewal or replacement); provided, however,
that such extension, renewal or replacement shall be limited to all or a part
of the property or other assets which secured the Security Interest so
extended, renewed or replaced (plus improvements on such property or other
assets); and provided, further, that any Security Interest permitted
by any of the foregoing clauses (i) to (ix), inclusive, of this Section 1006
shall not extend to or cover any property of the Company or any Subsidiary
other than the property specified in such clauses and improvements thereto.

(b)           Notwithstanding
the foregoing provisions or the provisions of Section 1007, the Company or
any Subsidiary may issue, incur, create, assume or guarantee Debt secured by
Security Interests which would otherwise be subject to the foregoing
restrictions and enter into any Sale/Leaseback Transaction that would otherwise
be prohibited by Section 1007 in an aggregate amount which, together (but
without duplication) with (x) all other outstanding Debt of the Company
and each Subsidiary or any of them which (if originally issued, incurred,
created, assumed or guaranteed at such time) would otherwise be subject to the
foregoing restrictions after giving effect to Sections 1006(a)(i) through
1006(a)(x) above, (y) the aggregate Attributable Debt of all such
Sale/Leaseback Transactions of the Company and each Subsidiary or any of them
at any one time outstanding (other than any Attributable Debt relating to
Sale/Leaseback Transactions pursuant to, and in compliance with, Section 1007(b))
and (z) following a Fall-Away Event, the aggregate Debt of Subsidiaries of
the Company pursuant to Section 1010(b), does not at the time exceed 15%
of Consolidated Net Tangible Assets of the Company.

SECTION 1007.   Limitation on Sale/Leaseback
Transactions.

(a)           The
Company shall not, and shall not permit any Subsidiary to, enter into any
Sale/Leaseback Transaction with respect to any property unless (i) the
Company or such Subsidiary would be entitled to create Security Interests on
such property securing the

 57
 

 

Attributable Debt relating to such Sale/Leaseback Transaction without
equally and ratably securing the Securities pursuant to Section 1006 or (ii) the
net cash proceeds received by the Company or any Subsidiary in connection with
such Sale/Leaseback Transaction are at least equal to the fair market value
(which fair market value, in the case of any such Sale/Leaseback Transaction
with net cash proceeds in excess of $10 million, shall be determined by the board
of directors (or any duly authorized committee thereof) of the Company or, as
the case may be, such Subsidiary) of such property, and the Company or such
Subsidiary shall apply or cause to be applied, in the case of a sale or
transfer for cash, an amount equal to the net proceeds thereof and, in the case
of a sale or transfer otherwise than for cash, an amount equal to the fair
market value of the property so leased, to the retirement, within 180 days
after the effective date of such Sale/Leaseback Transaction, of the Securities
or Debt of the Company ranking on a parity with the Securities and owing to a
Person other than the Company or any Affiliate of the Company or to the
construction or improvement of real property or personal property used in the
ordinary course of business.

(b)           The
restrictions in Section 1007(a) shall not apply to transactions between
the Company and a joint venture, partnership or other association or
affiliation in which the Company has at least a 50% interest, directly or indirectly
entered into for operational or strategic reasons; provided, however,
that the aggregate Attributable Debt of all Sale/Leaseback Transactions of the
Company and each Subsidiary or any of them incurred pursuant to this Section 1007(b) does
not at any one time in the aggregate exceed 15% of Consolidated Net Tangible
Assets of the Company.

SECTION 1008.   Waiver of Certain Covenants.
The Company may omit in any particular instance to comply with any term, provision
or condition set forth in Section 803, 1006 or 1007 if the Holders of at
least a majority in principal amount of all Outstanding Securities affected by
such term, provision or covenant by Act of such Holders, waive such compliance
in such instance with such term, provision or condition, but no such waiver
shall extend to or affect such term, provision or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

SECTION 1009.   Change of Control
Offer.

Upon the occurrence of a Change of Control, each
Holder will have the right to require that the Company purchase all or a
portion of such Holder’s Securities pursuant to the offer described below (the “Change
of Control Offer”) at a Purchase Price equal to 101% of the principal
amount thereof plus accrued interest to, but not including, the date of
purchase.

In the event that the Company shall be required to
commence a Change of Control Offer, it shall follow the procedures specified
below.

Within 30 days following the date upon which the
Change of Control occurred, the Company must send a notice to each Holder, with
a copy to the Trustee. The notice shall contain all instructions and materials
necessary to enable such Holders to tender Securities pursuant to the Change of
Control Offer. The Change of Control Offer shall be made to all Holders. The
notice, which shall govern the terms of the Change of Control Offer, shall
state:

 

 58

 

(a)           the
transaction or transactions that constitute the Change of Control, providing
information, to the extent publicly available, regarding the Person or Persons
acquiring control, and stating that the Change of Control Offer is being made
pursuant to this Section 1009 and that, to the extent lawful, all Securities
tendered will be accepted for payment;

(b)           the
Purchase Price and the Purchase Date, which must be no earlier than 30 days nor
later than 60 days from the date such notice is mailed, other than as may be
required by law (the “Change of Control Payment Date”);

(c)           that
any Security not properly tendered or otherwise not accepted for repurchase
will continue to accrue interest;

(d)           that,
unless the Company defaults in the payment of the amount due on the Change of
Control Payment Date, all Securities or portions thereof accepted for
repurchase pursuant to the Change of Control Offer shall cease to accrue
interest after the Change of Control Payment Date;

(e)           that
Holders electing to have a Security purchased pursuant to a Change of Control
Offer will be required to surrender the Security, with the form entitled “Option
of Holder to Elect Purchase” on the reverse of the Security completed, or
transfer by book-entry transfer, to the Company, a Depositary, if appointed by
the Company, or a Paying Agent at the address specified in the notice prior to
the close of business on the third Business Day prior to the Change of Control
Payment Date;

(f)            that
Holders will be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than
the Change of Control Offer Payment Date, a telegram, facsimile transmission or
letter setting forth the name of the Holder, the principal amount of Securities
delivered for repurchase, and a statement that such Holder is withdrawing his
election to have the Securities redeemed in whole or in part; and

(g)           that
Holders whose Securities are being repurchased only in part will be issued new
Securities in principal amount equal to the unpurchased portion of the
Securities surrendered; provided, however, that each Security Purchased
and each new Security issued shall be in a principal amount equal to $2,000 or
an integral multiple of $1,000 thereof.

On or before the Change of Control Payment Date, the
Company shall to the extent lawful, (i) accept for payment all Securities
or portions thereof properly tendered pursuant to the Change of Control Offer, (ii) deposit
with the Paying Agent an amount equal to the Purchase Price, together with
accrued and unpaid interest thereon to the Change of Control Payment Date in
respect of all Securities or portions thereof so tendered and accepted for
repurchase and (iii) deliver or cause to be delivered to the Trustee the
Securities so accepted together with an Officers’ Certificate stating the
aggregate principal amount of Securities or portions thereof being repurchased
by the Company. The Paying Agent shall promptly (but in any case not later than
five days after the Change of Control Payment Date) mail to each Holder of
Securities so repurchased the amount due in connection with such Securities,
and the Company shall promptly issue a new Security, and the Trustee, upon
written request from the Company in the form of an Officers’ Certificate shall
authenticate and mail or deliver (or cause to transfer by book entry) to each

 59
 

 

relevant Holder a new Security, in a principal amount
equal to any unpurchased portion of the Securities surrendered to the Holder
thereof; provided that each such new Security shall be in a principal
amount of $2,000 or an integral multiple of $1,000 thereof. The Company shall
publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.

Notwithstanding the foregoing, the Company will not be
required to make a Change of Control Offer upon a Change of Control if a third
party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Indenture
applicable to a Change of Control Offer made by the Company and purchases all
Securities validly tendered and not withdrawn under such Change of Control
Offer.

If the Change of Control Payment Date is on or after
an interest record date and on or before the related interest payment date, any
accrued and unpaid interest to the Change of Control Payment Date shall be paid
to the Person in whose name a Security is registered at the close of business
on such record date, and no additional interest shall be payable to Holders pursuant
to the Change of Control Offer.

To the extent that the provisions of any securities
laws or regulations conflict with this Section 1009, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations under this Section 1009 by virtue
thereof.

SECTION 1010.             Limitation on Debt of Subsidiaries.

(a)           At
all times following the occurrence of a Fall-Away Event, the Company shall not
permit any Subsidiary of the Company to issue, incur, create, assume, or
guarantee any Debt except for:

(1)           Debt
secured by a Security Interest permitted by Section 1006;

(2)           Debt
of a corporation or other entity existing at the time such corporation or other
entity is merged into or consolidated with any Subsidiary or at the time of a
sale, lease or other disposition of the properties of such corporation or other
entity as an entirety or substantially as an entirety to any Subsidiary of the
Company;

(3)           Debt
of a Subsidiary of the Company with respect to which the proceeds are applied
by such Subsidiary to acquire, construct or improve property, the majority of
the Capital Stock of a Person, or other assets incurred after the initial
issuance of the Securities and contemporaneously with, or within 270 days
after, such acquisition (or, in the case of property or other assets
constructed or improved, within 270 days after the completion or commencement
of commercial operation of such property or other assets, whichever is later);

(4)           Debt
of a Subsidiary of the Company owing to the Company or a wholly-owned
Subsidiary of the Company; provided that if any person other than the
Company or a wholly-owned Subsidiary of the Company owns or holds any such
Debt, such Debt shall be

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deemed to be incurred as of the date such Debt becomes
owned or held by such person and such incurrence shall not be permitted
pursuant to this clause (4);

(5)           Debt
of a non-Domestic Subsidiary with respect to which neither the Company nor any
of its Domestic Subsidiaries has provided any guarantee or other credit support;
and

(6)           the
extension, renewal or replacement (or successive extensions, renewals or
replacements) by a Subsidiary of the Company, in whole or in part, of any Debt
of such Subsidiary referred to in the foregoing clauses (1) to (5),
inclusive, or the next sentence without increase of the principal of such Debt
or change of the obligor or obligors with respect to such Debt (plus the
aggregate amount of premiums, costs and expenses paid or incurred in connection
with such extension, renewal or replacement).

(b)           Notwithstanding
the provisions of Section 1010(a), any Subsidiary of the Company may
issue, incur, create, assume, or guarantee Debt that would otherwise be subject
to the restrictions in Section 1010(a) in an aggregate principal
amount that, together (but without duplication) with (A) all other Debt of
the Company’s Subsidiaries that would otherwise be subject to the restrictions
in Section 1010(a) after giving effect to the provisions of Section 1010(a)(1) through
1010(a)(6) above and (B) the aggregate Debt and Attributable Debt of
the Company and its Subsidiaries outstanding pursuant to Section 1006(b) (other
than any Attributable Debt relating to Sale/Leaseback Transactions pursuant to,
and in compliance with, Section 1007(b)), does not at any one time exceed
15% of Consolidated Net Tangible Assets of the Company.

SECTION 1011.             Additional Subsidiary Guarantees.

(a)           At
all times prior to the occurrence of a Fall-Away Event, if the Company or any
of its Subsidiaries transfers or causes to be transferred any property, in one
transaction or a series of related transactions, in excess of $500,000 to any
Domestic Subsidiary that is not a Guarantor, or if the Company or any of its
Subsidiaries shall organize, acquire or otherwise invest in a Domestic
Subsidiary having total assets with a fair market value in excess of $500,000,
then such transferee or acquired or other Domestic Subsidiary shall:

(i)      execute and deliver, within 30 Business
Days, to the Trustee a supplemental indenture in form reasonably satisfactory
to the Trustee pursuant to which such Domestic Subsidiary shall unconditionally
guarantee all of the Company’s obligations under the Securities and this
Indenture on the terms set forth in this Indenture; and

(ii)     deliver to the Trustee an Opinion of
Counsel that such supplemental indenture has been duly authorized, executed and
delivered by such Domestic Subsidiary and constitutes a legal, valid, binding
and enforceable obligation of such Domestic Subsidiary.

(b)           Thereafter,
such Subsidiary shall be a Guarantor for all purposes of this Indenture.

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(c)           Notwithstanding any other provision of this Section 1011,
none of the Foreign Holding Companies, Crompton & Knowles Receivables
Corporation and Assured Insurance Company will be a Guarantor unless such
entity (i) engages in any business other than acting as a holding company
for non-Domestic Subsidiaries of the Company (in the case of a Foreign Holding
Company), owns any material assets or has any material liabilities other than
in connection with its activities as a special purpose vehicle to facilitate a
receivables securitization program of the Company or its Subsidiaries (in the
case of Crompton & Knowles Receivables Corporation) or ceases to
transact substantially all of its business as an insurance entity (in the case
of Assured Insurance Company) or (ii) guarantees or otherwise becomes
obligated with respect to or provides collateral for any other Debt of the
Company or a Domestic Subsidiary of the Company.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

SECTION 1101.     Applicability
of Article. Securities of any series which are redeemable before their
Stated Maturity shall be redeemable in accordance with the terms of such
Securities and (except as otherwise specified as contemplated by Section 301
for Securities of any series) in accordance with this Article Eleven.

SECTION 1102.     Election
to Redeem; Notice to Trustee. The election of the Company to redeem any Securities
shall be evidenced by or pursuant to a Board Resolution. In case of any
redemption at the election of the Company of less than all the Securities of
any series, the Company shall, at least 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date, the Redemption Price, and
of the principal amount of Securities of such series to be redeemed and shall
deliver to the Trustee such documentation and records as shall enable the
Trustee to select the Securities to be redeemed pursuant to Section 1103. In
the case of any redemption of Securities prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers’ Certificate evidencing compliance with such restriction.

SECTION 1103.     Selection
by Trustee of Securities to Be Redeemed. If fewer than all the Securities
of any series are to be redeemed, the particular Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the Outstanding Securities of such series not previously called
for redemption, on a pro rata basis,
by lot or by such method as the Trustee shall deem fair and appropriate and
which may provide for the selection for redemption of portions of the principal
of Securities of such series; provided, however, that no
Securities of $1,000 or less shall be redeemed in part.

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

For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Securities redeemed

 62
 

 

or to be redeemed only in part, to the portion of the
principal amount of such Securities which has been or is to be redeemed.

SECTION 1104.     Notice
of Redemption. Except as otherwise specified as contemplated by Section 301,
notice of redemption shall be given in the manner provided in Section 106
not less than 30 nor more than 60 days prior to the Redemption Date, to each
Holder of Securities to be redeemed.

All notices of redemption
shall state:

(1)           the Redemption Date,

(2)           the Redemption Price,

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

(4)           that on the Redemption Date the
Redemption Price (together with accrued interest, if any, to, but not
including, the Redemption Date payable as provided in Section 1106) will
become due and payable upon each such Security, or the portion thereof, to be
redeemed and, if applicable, that interest thereon will cease to accrue on and
after said date,

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

(6)           the paragraph of the Securities and
or Section of this Indenture pursuant to which the Securities called for
redemption are being redeemed.

Notice of redemption of Securities to be redeemed at
the election of the Company shall be given by the Company or, at the Company’s
request, by the Trustee in the name and at the expense of the Company; provided,
however, that the Company has delivered to the Trustee at least 45 days
prior to the Redemption Date (or such shorter period as the Trustee may agree),
an Officers’ 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 1105.     Deposit
of Redemption Price. Prior to any Redemption Date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money in the currency in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the
Securities of such series) sufficient to pay the Redemption Price of, and
accrued interest on, all the Securities which are to be redeemed on that date.

SECTION 1106.     Securities
Payable on Redemption Date. Notice of redemption having been given as
aforesaid, the Securities so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified in the
currency in which the

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Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such
Series) (together with accrued interest, if any, to the Redemption Date), and
from and after such date (unless the Company shall default in the payment of
the Redemption Price and accrued interest) such Securities shall, if the same
were interest bearing, cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be
paid by the Company at the Redemption Price, together with accrued interest, if
any, to the Redemption Date; provided, however, that installments
of interest on Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable (but without interest thereon, unless the
Company shall default in the payment thereof) to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

If any Security called for redemption shall not be so
paid upon surrender thereof for redemption, the principal (and premium, if any)
shall, until paid, bear interest from the Redemption Date at the rate of
interest or Yield to Maturity (in the case of Original Issue Discount
Securities) set forth in the Security.

SECTION 1107.     Securities
Redeemed in Part. Any Security which is to be redeemed only in part
(pursuant to the provisions of this Article or of Article Twelve)
shall be surrendered at a Place of Payment therefor (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by,
the Holder thereof or such Holder’s attorney duly authorized in writing), and
the Company shall execute, and the Trustee shall authenticate and deliver to
the Holder of such Security without service charge, a new Security or
Securities of the same series, of any authorized denomination as requested by
such Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

ARTICLE TWELVE

[RESERVED]

 

ARTICLE THIRTEEN

REPAYMENT AT OPTION OF HOLDERS

SECTION 1301.     Applicability
of Article. Repayment of Securities of any series before their Stated Maturity
at the option of Holders thereof shall be made in accordance with the terms of
such Securities and (except as otherwise specified as contemplated by Section 301
for Securities of any series) in accordance with this Article. This Article shall
not be applicable to the Initial Securities.

SECTION 1302.     Repayment of Securities. Securities
of any series subject to repayment in whole or in part at the option of the
Holders thereof will, unless otherwise provided in the terms of such
Securities, be repaid at a price equal to the principal amount thereof, together
with interest, if any, thereon accrued to the Repayment Date specified in or
pursuant to the

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terms of such
Securities. The Company covenants that on or before the Repayment Date it will
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money in the currency in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the
Securities of such series) sufficient to pay the principal (or, if so provided
by the terms of the Securities of any series, a percentage of the principal)
of, and (except if the Repayment Date shall be an Interest Payment Date)
accrued interest on, all the Securities or portions thereof, as the case may
be, to be repaid on such date.

SECTION 1303.     Exercise
of Option. Securities of any series subject to repayment at the option of
the Holders thereof will contain an “Option to Elect Repayment” form on the
reverse of such Securities. To be repaid at the option of the Holder, any
Security so providing for such repayment, with the “Option to Elect Repayment”
form on the reverse of such Security duly completed by the Holder (or by the
Holder’s attorney duly authorized in writing), must be received by the Company
at the Place of Payment therefor specified in the terms of such Security (or at
such other place or places or which the Company shall from time to time notify
the Holders of such Securities) not earlier than 45 days nor later than 30 days
prior to the Repayment Date. If less than the entire principal amount of such
Security is to be repaid in accordance with the terms of such Security, the
principal amount of such Security to be repaid, in increments of the minimum denomination
for Securities of such series, and the denomination or denominations of the
Security or Securities to be issued to the Holder for the portion of the
principal amount of such Security surrendered that is not to be repaid, must be
specified. The principal amount of any Security providing for repayment at the
option of the Holder thereof may not be repaid in part if, following such
repayment, the unpaid principal amount of such Security would be less than the
minimum authorized denomination of Securities of the series of which such
Security to be repaid is a part. Except as otherwise may be provided by the
terms of any Security providing for repayment at the option of the Holder
thereof, exercise of the repayment option by the Holder shall be irrevocable
unless waived by the Company.

SECTION 1304.     When
Securities Presented for Repayment Become Due and Payable. If Securities of
any series providing for repayment at the option of the Holders thereof shall
have been surrendered as provided in this Article and as provided by or
pursuant to the terms of such Securities, such Securities or the portions
thereof, as the case may be, to be repaid shall become due and payable and
shall be paid by the Company on the Repayment Date therein specified, and on
and after such Repayment Date (unless the Company shall default in the payment
of such Securities on such Repayment Date) such Securities shall, if the same
were interest-bearing, cease to bear interest, except to the extent provided
below, shall be void. Upon surrender of any such Security for repayment in accordance
with such provisions, the principal amount of such Security so to be repaid
shall be paid by the Company, together with accrued interest, if any, to the Repayment
Date; provided, however, that installments of interest, if any,
whose Stated Maturity is on or prior to the Repayment Date shall be payable
(but without interest thereon, unless the Company shall default in the payment
thereof) to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307.

 65
 

 

If the principal amount of any Security surrendered
for repayment shall not be so repaid upon surrender thereof, such principal
amount (together with interest, if any, thereon accrued to such Repayment Date)
shall, until paid, bear interest from the Repayment Date at the rate of
interest or Yield to Maturity (in the case of Original Issue Discount
Securities) set forth in such Security.

SECTION 1305.     Securities
Repaid in Part. Upon surrender of any Security which is to be repaid in
part only, the Company shall execute and the Trustee shall authenticate and
deliver to the Holder of such Security, without service charge and at the
expense of the Company, a new Security or Securities of the same series, of any
authorized denomination specified by the Holder, in an aggregate principal
amount equal to and in exchange for the portion of the principal of such Security
so surrendered which is not to be repaid.

ARTICLE FOURTEEN

DEFEASANCE AND COVENANT
DEFEASANCE

SECTION 1401.     Company’s
Option to Effect Defeasance or Covenant Defeasance. Except as otherwise
specified as contemplated by Section 301 for Securities of any series, the
provisions of this Article shall be applicable to the Securities, and the
Company may at its option by Board Resolution, at any time, with respect to the
Securities of or within a series, elect to have either Section 1402 (if
applicable) or Section 1403 (if applicable) be applied to the Outstanding
Securities of or within a series upon compliance with the conditions set forth
below in this Article.

SECTION 1402.     Defeasance
and Discharge. Upon the Company’s exercise of the above option applicable
to this Section with respect to any Securities of or within a series, the
Company shall be deemed to have been discharged from its obligations with
respect to such Outstanding Securities on the date the conditions set forth in Section 1404
are satisfied (hereinafter, “defeasance”). For this purpose, such
defeasance means that the Company and the Guarantors shall be deemed to have
paid and discharged the entire indebtedness represented by such Outstanding
Securities, which shall thereafter be deemed to be “Outstanding” only for the
purposes of Section 1405 and the other Sections of this Indenture referred
to in (A) and (B) below, and to have satisfied all its other obligations
under such Securities and this Indenture insofar as such Securities are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder:  (A) the rights of Holders of such
Outstanding Securities to receive, solely from the trust fund described in Section 1404
and as more fully set forth in such Section, payments in respect of the
principal of (and premium, if any) and interest on such Securities when such
payments are due, (B) the Company’s obligations with respect to such Securities
under Sections 304, 305, 306, 1002 and 1003 and with respect to the payment of
additional amounts, if any, if provided for pursuant to Section 301, (C) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and (D) this
Article Fourteen. Subject to compliance with this Article Fourteen,
the Company may exercise its option under this Section 1402
notwithstanding the prior exercise of its option under Section 1403 with
respect to such Securities.

 66

 

SECTION 1403.     Covenant
Defeasance. Upon the Company’s exercise of the above option applicable to
this Section with respect to any Securities of or within a series, the
Company shall be released from its obligations under Sections 803, 1006, 1007,
1009, 1010 and 1011 and, if specified pursuant to Section 301, its
obligations under any other covenant, with respect to such Outstanding
Securities on and after the date the conditions set forth in Section 1404
are satisfied (hereinafter, “covenant defeasance”), and such Securities
shall thereafter be deemed to be 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 Section 803, 1006, 1007,
1009, 1010 or 1011, or such other covenant, but shall continue to be deemed “Outstanding”
for all other purposes hereunder. For this purpose, such covenant defeasance
means that, with respect to such Outstanding Securities, the Company and its
Subsidiaries may omit to comply with and shall have no liability in respect of
any term, condition or limitation set forth in any such Section or such
other covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such Section or such other covenant or by reason of
reference in any such Section or such other 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 501(3) or Section 501(10) or
otherwise, as the case may be, but, except as specified above, the remainder of
this Indenture and such Securities shall be unaffected thereby.

SECTION 1404.     Conditions
to Defeasance or Covenant Defeasance. The following shall be the conditions
to application of either Section 1402 or Section 1403 to any Outstanding
Securities of or within a series:

(1)           The
Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 608 who
shall agree to comply with the provisions of this Article Fourteen
applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities, (A) an amount (in such
currency in which such Securities are payable at Stated Maturity), or (B) Government
Obligations applicable to such Securities (determined on the basis of the
currency in which such Securities are then specified as payable at Stated
Maturity) which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than one
day before the due date of any payment of principal (including any premium) and
interest, if any, under such Securities, money in an amount, or (C) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by
the Trustee (or other qualifying trustee) to pay and discharge, the principal
of (and premium, if any), including Redemption Price and Repayment Price, and
interest on such Outstanding Securities on the Stated Maturity of such
principal or installment of principal or interest.

(2)           No
Event of Default or event which with notice or lapse of time or both would
become an Event of Default with respect to such Securities shall have occurred
and be continuing on the date of such deposit or, insofar as paragraphs (8) and
(9) of Section 501 are concerned, at any time during the period
ending on the 91st day after the date

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of such deposit (it being understood that
this condition shall not be deemed satisfied until the expiration of such
period).

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

(4)           In
the case of an election under Section 1402, the Company shall have delivered
to the Trustee an Opinion of Counsel in the United States stating that (x) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling, or (y) since the date of execution of this Indenture,
there has been a change in the applicable United States Federal income tax law,
in either case to the effect that, and based thereon such opinion shall confirm
that, the Holders of such Outstanding Securities will not recognize income,
gain or loss for United States Federal income tax purposes as a result of such
defeasance and will be subject to United States Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such defeasance had not occurred.

(5)           In
the case of an election under Section 1403, the Company shall have delivered
to the Trustee an Opinion of Counsel in the United States to the effect that
the Holders of such Outstanding Securities of such series will not recognize
income, gain or loss for United States Federal income tax purposes as a result
of such covenant defeasance and will be subject to United States Federal income
tax on the same amounts, in the same manner and at the same times as would have
been the case if such covenant defeasance had not occurred.

(6)           The
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit made by the Company pursuant to its election under Section 1402
or 1403 was not made by the Company with the intent of preferring the Holders
over other creditors of the Company or with the intent of defeating, hindering,
delaying or defrauding creditors of the Company or others.

(7)           The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for
relating to either the defeasance under Section 1402 or the covenant
defeasance under Section 1403 (as the case may be) have been complied with
and an Opinion of Counsel to the effect that either (i) as a result of a
deposit pursuant to paragraph (1) above and the related exercise of the
Company’s option under Section 1402 or Section 1403 (as the case may
be), registration is not required under the Investment Company Act of 1940, as
amended, by the Company, with respect to the trust funds representing such
deposit, or by the trustee for such trust funds or (ii) all necessary
registrations under said Act have been effected.

(8)           The
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that assuming no intervening bankruptcy of the Company between the date of
deposit and the 91st day following the date of deposit and that no Holder is an
insider of the Company, after the 91st day following the date of deposit, the
trust funds will not

 68
 

 

be subject to the effect of any applicable
bankruptcy, insolvency, reorganization or similar laws affecting creditors’
rights generally.

(9)           Notwithstanding
any other provisions of this Section, such defeasance or covenant defeasance
shall be effected in compliance with any additional or substitute terms,
conditions or limitations in connection therewith pursuant to Section 301.

SECTION 1405.     Deposited
Money and Government Obligations to Be Held in Trust; Other Miscellaneous
Provisions. Subject to the provisions of the last paragraph of Section 1003,
all money and Government Obligations (or other property as may be provided
pursuant to Section 301) (including the proceeds thereof) deposited with
the Trustee (or other qualifying trustee—collectively for purposes of this Section 1405,
the “Trustee”) pursuant to Section 1404 in respect of any
Outstanding Securities of such series shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities of all sums due and to become due
thereon in respect of principal (and premium, if any) and interest, but such
money need not be segregated from other funds except to the extent required by
law.

The Company shall pay and indemnify the Trustee on an
after-tax basis against any tax, fee or other charge imposed on or assessed
against the money or Government Obligations deposited pursuant to Section 1404
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 such
Outstanding Securities.

Anything in this Article Fourteen to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon Company Request any money or Government Obligations (or other
property and any proceeds therefrom) held by it as provided in Section 1404
which, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect an equivalent defeasance or covenant defeasance, as applicable, in accordance
with this Article.

ARTICLE
FIFTEEN

GUARANTEE

SECTION 1501.             Unconditional Guarantee.

Each Guarantor hereby unconditionally guarantees (such
guarantee to be referred to herein as a “Guarantee”), on a senior
unsecured basis jointly and severally, to each Holder of a Security
authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, the Securities or the obligations of the Company
hereunder or thereunder, that:  (i) the
principal of and interest on the Securities will be promptly paid in full when
due, subject to any applicable grace period, whether at maturity, by
acceleration or otherwise and interest on the overdue principal, if any, and
interest on any interest, to the extent lawful, of the Securities and all other
obligations of the Company to the Holders or the Trustee hereunder or
thereunder will

 69
 

 

be promptly paid in full or performed, all in accordance
with the terms hereof and thereof; and (ii) in case of any extension of
time of payment or renewal of any Securities or of any such other obligations,
the same will be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in
the case of clauses (i) and (ii) above, to the limitations set forth
in Section 1503. Each Guarantor hereby agrees that its obligations hereunder
shall be unconditional, irrespective of the validity, regularity or
enforceability of the Securities or this Indenture, the absence of any action
to enforce the same, any waiver or consent by any Holder of the Securities with
respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, and action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor. Each Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that this Guarantee
will not be discharged except by complete performance of the obligations contained
in the Securities, this Indenture and in this Guarantee. If any Holder or the
Trustee is required by any court or otherwise to return to the Company, any Guarantor,
or any custodian, trustee, liquidator or other similar official acting in
relation to the Company or any Guarantor, any amount paid by the Company or any
Guarantor to the Trustee or such Holder, this Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect. Each Guarantor
further agrees that, as between each Guarantor, on the one hand, and the
Holders and the Trustee, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article Five for the
purposes of this Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any acceleration of such
obligations as provided in Article Five, such obligations (whether or not
due and payable) shall forthwith become due and payable by each Guarantor for
the purpose of this Guarantee.

SECTION 1502.             Severability.

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

SECTION 1503.             Limitation of Guarantor’s
Liability.

Each Guarantor and by its acceptance hereof each
Holder hereby confirms that it is the intention of all such parties that the
guarantee by such Guarantor pursuant to its Guarantee not constitute a
fraudulent transfer or conveyance for purposes of any Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
Federal or state law. To effectuate the foregoing intention, the Holders and
such Guarantor hereby irrevocably agree that the obligations of such Guarantor
under its Guarantee shall be limited to the maximum amount as will, after
giving effect to all other contingent and fixed liabilities of such Guarantor
and after giving effect to any collections from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other
Guarantor under its Guarantee or

 70
 

 

pursuant to Section 1505, result in the
obligations of such Guarantor under the Guarantee not constituting such
fraudulent transfer or conveyance.

SECTION 1504.             Release of Guarantor.

(a)           The
Guarantee of a Guarantor will be automatically and unconditionally released and
discharged without any action on the part of the Trustee or the Holders of the
Securities:  (1) in the event all of
the Capital Stock of a Guarantor is sold by the Company or a Subsidiary of the
Company or a Guarantor is merged into another entity; (2) upon the legal
or covenant defeasance of the Securities pursuant to Article Fourteen; (3) upon
the sale or other disposition of all or substantially all of the assets of such
Guarantor; (4) if such Guarantor ceases to be a Subsidiary of the Company;
or (5) upon the occurrence of the Fall-Away Event.

(b)           The
Trustee shall deliver an appropriate instrument evidencing such release upon
receipt of a request by the Company accompanied by an Officers’ Certificate and
Opinion of Counsel certifying as to the compliance with this Section 1504.

SECTION 1505.             Contribution.

In order to provide for just and equitable
contribution among the Guarantors, the Guarantors agree, inter se, that in the
event any payment or distribution is made by any Guarantor (a “Funding
Guarantor”) under its Guarantee, such Funding Guarantor shall be entitled
to a contribution from all other Guarantors in a pro rata amount based on the
Adjusted Net Assets (as defined below) of each Guarantor (including the Funding
Guarantor) for all payments, damages and expenses incurred by that Funding
Guarantor in discharging the Company’s obligations with respect to the
Securities or any other Guarantor’s obligations with respect to its Guarantee. “Adjusted
Net Assets” of such Guarantor at any date shall mean the lesser of the
amount by which (x) the fair value of the property of such Guarantor
exceeds the total amount of liabilities, including, without limitation,
contingent liabilities (after giving effect to all other fixed and contingent
liabilities incurred or assumed on such date), but excluding liabilities under
its Guarantee, of such Guarantor at such date and (y) the present fair
salable value of the assets of such Guarantor at such date exceeds the amount
that will be required to pay the probable liability of such Guarantor on its
debts (after giving effect to all other fixed and contingent liabilities
incurred or assumed on such date), excluding debt in respect of the Guarantee
of such Guarantor, as they become absolute and matured.

SECTION 1506.             Waiver of Subrogation.

Until all Obligations are paid in full, each Guarantor
hereby irrevocably waives any claims or other rights which it may now or
hereafter acquire against the Company that arise from the existence, payment,
performance or enforcement of such Guarantor’s obligations under its Guarantee
and this Indenture, including, without limitation, any right of subrogation,
reimbursement, exoneration, indemnification, and any right to participate in
any claim or remedy of any Holder against the Company, whether or not such
claim, remedy or right arises in equity, or under contract, statute or common
law, including, without limitation, the right to take or receive from the
Company, directly or indirectly, in cash or other property or by set-off
or in any other manner, payment or security on account of such claim or other
rights. If any amount shall be

 71
 

 

paid to any Guarantor in violation of the preceding
sentence and the Securities shall not have been paid in full, such amount shall
have been deemed to have been paid to such Guarantor for the benefit of, and
held in trust for the benefit of, the Holders, and shall, forthwith be paid to
the Trustee for the benefit of such Holders to be credited and applied upon the
Securities, whether matured or unmatured, in accordance with the terms of this
Indenture. Each Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by this Indenture and that
the waiver set forth in this Section 1506 is knowingly made in
contemplation of such benefits.

SECTION 1507.             Execution of Guarantee.

To evidence their guarantee to the Holders set forth
in this Article Fifteen, the Guarantors hereby agree to execute the Guarantee
in substantially the form attached hereto as Exhibit C,
which shall be endorsed on each Security ordered to be authenticated and
delivered by the Trustee. Each Guarantor hereby agrees that its Guarantee set
forth in this Article Fifteen shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation of such
Guarantee. Each such Guarantee shall be signed on behalf of each Guarantor by
one of its authorized Officers prior to the authentication of the Security on
which it is endorsed, and the delivery of such Security by the Trustee, after
the authentication thereof hereunder, shall constitute due delivery of such
Guarantee on behalf of such Guarantor. Such signatures upon the Guarantee may
be by manual or facsimile signature of such officers and may be imprinted or
otherwise reproduced on the Guarantee, and in case any such officer who shall
have signed the Guarantee shall cease to be such officer before the Security on
which such Guarantee is endorsed shall have been authenticated and delivered by
the Trustee or disposed of by the Company, such Security nevertheless may be
authenticated and delivered or disposed of as though the Person who signed the
Guarantee had not ceased to be such officer of the Guarantor.

SECTION 1508.             Waiver of Stay, Extension or
Usury Laws.

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

ARTICLE
SIXTEEN

IMMUNITY
OF INCORPORATORS, STOCKHOLDERS,

OFFICERS, DIRECTORS AND EMPLOYEES

SECTION 1601.     Exemption
from Individual Liability. No recourse under or upon any obligation,
covenant or agreement of this Indenture, or of any Security, or for any

 72
 

 

claim based thereon or otherwise in respect thereof,
shall be had against any incorporator, stockholder, officer, director or
employee, as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that this
Indenture and the obligations issued hereunder are solely corporate obligations
of the Company, and that no such personal liability whatever shall attach to,
or is or shall be incurred by, the incorporators, stockholders, officers,
directors or employees, as such, of the Company or of any successor
corporation, or any of them, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements
contained in this Indenture or in any of the Securities or implied therefrom;
and that any and all such personal liability, either at common law or in equity
or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, stockholder, officer, director or employee,
as such, because of the creation of the indebtedness hereby authorized, or
under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any of the Securities or implied therefrom, are hereby expressly
waived and released as a condition of, and as a consideration for, the
execution of this Indenture and the issue of such Securities.

*     *     *     *

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

[Signature pages follow.]

 73

 

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

	
   

  	
  CHEMTURA CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  A & M CLEANING PRODUCTS, LLC

  
	
   

  	
  AQUA CLEAR INDUSTRIES, LLC

  
	
   

  	
  ASCK, INC.

  
	
   

  	
  ASEPSIS, INC.

  
	
   

  	
  BIOLAB TEXTILE ADDITIVES, LLC

  
	
   

  	
  BIO-LAB, INC.

  
	
   

  	
  CHEMTURA USA CORPORATION

  
	
   

  	
  CNK CHEMICAL REALTY CORPORATION

  
	
   

  	
  CROMPTON COLORS INCORPORATED

  
	
   

  	
  CROMPTON HOLDING CORPORATION

  
	
   

  	
  CROMPTON MONOCHEM, INC.

  
	
   

  	
  ENENCO, INCORPORATED

  
	
   

  	
  GREAT LAKES CHEMICAL CORPORATION

  
	
   

  	
  GREAT LAKES CHEMICAL GLOBAL, INC.

  
	
   

  	
  GT SEED TREATMENT, INC.

  
	
   

  	
  HOMECARE LABS, INC.

  
	
   

  	
  ISCI, INC.

  
	
   

  	
  KEM MANUFACTURING CORPORATION

  
	
   

  	
  MONOCHEM, INC.

  
	
   

  	
  NAUGATUCK TREATMENT COMPANY

  
	
   

  	
  RECREATIONAL WATER PRODUCTS, INC.

  
	
   

  	
  UNIROYAL CHEMICAL COMPANY LIMITED (DELAWARE)

  
	
   

  	
  WEBER CITY ROAD LLC

  
	
   

  	
  WRL OF INDIANA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 S-1
 

 

 

	
   

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 S-2

 

EXHIBIT A

[FORM OF INITIAL SECURITY]

CHEMTURA
CORPORATION

	
  CUSIP No. 163893 AA 8

  	
  $500,000,000

  

No. 1

6.875% NOTES DUE
2016

CHEMTURA CORPORATION, a Delaware corporation, as
issuer (the “Company”), for value received, promises to pay to CEDE &
CO. or registered assigns the principal sum of FIVE HUNDRED MILLION DOLLARS
($500,000,000) on June 1, 2016.

Interest Payment Dates:  June 1 and December 1.

Record Dates:  May 15
and November 15.

Reference is made to the further provisions of this
Security contained herein, which will for all purposes have the same effect as
if set forth at this place.

 A-1
 

 

IN WITNESS WHEREOF, the Company has caused this
Security to be signed manually or by facsimile by one of its duly authorized
officers.

	
   

  	
  CHEMTURA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Certificate of
Authentication

This is one of the 6.875% Notes due 2016 referred to
in the within-mentioned Indenture.

	
   

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:  April 24, 2006

 A-2
 

 

[FORM OF
REVERSE OF SECURITY]

CHEMTURA
CORPORATION

6.875% NOTES DUE
2016

1.             Interest.
CHEMTURA CORPORATION, a Delaware corporation, as issuer (the “Company”),
promises to pay, until the principal hereof is paid or made available for
payment, interest on the principal amount set forth on the face hereof at a
rate of 6.875% per annum. Interest shall be payable semi-annually in
arrears on June 1 and December 1, commencing on December 1, 2006.
Interest hereon will accrue from the most recent date to which interest has
been paid or, if no interest has been paid, from and including the Issue Date
and will be computed on the basis of a 360-day year comprised of twelve
30-day months. The Company shall pay interest on overdue principal and on
overdue interest (to the full extent permitted by law) at the rate borne by the
Securities.

2.             Method
of Payment. The Company will pay interest hereon (except Defaulted
Interest) to the Persons who are Holders at the close of business on the May 15
or November 15 next preceding the interest payment date (whether or not a
Business Day). Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the
United States of America that at the time of payment is legal tender for
payment of public and private debts. Principal, premium, if any, and interest,
if any, on Securities are payable at an office or agency of the Trustee, except
that at the option of the Company interest may be paid (i) by check mailed
to the address of the Person entitled thereto as such address shall appear in
the Security Register or (ii) by wire transfer to an account located in
the United States maintained by the Person entitled thereto as specified in the
Security Register.

3.             Paying
Agent and Registrar. Initially, Wells Fargo Bank, N.A. (the “Trustee”)
will act as a Paying Agent and Registrar. The Company may change any Paying
Agent or Registrar without notice. Neither the Company nor any of its
Affiliates may act as Paying Agent or Registrar.

4.             Indenture.
The Company issued the Securities under an Indenture dated as of April 24,
2006 (the “Indenture”) among the Company and the Trustee. This is one of
an issue of Securities of the Company issued, or to be issued, under the
Indenture. The terms of the Securities include those stated in the Indenture
and those made part of the Indenture by reference to the Trust Indenture Act of
1939 (15 U.S. Code §§ 77aaa-77bbbb), as amended from time to time. The
Securities are subject to all such terms, and Holders are referred to the
Indenture and such Act for a statement of them. Capitalized and certain other
terms used herein and not otherwise defined have the meanings set forth in the
Indenture.

5.             Redemption.
At any time and from time to time prior to the Maturity Date, the Company may,
at its option, redeem all or any portion of the Securities at the Make-Whole
Price plus accrued and unpaid interest to the date of redemption.

 A-3
 

 

“Make-Whole Amount” with respect to a Security
means an amount equal to the excess, if any, of (a) the present value of
the remaining interest and principal payments due on such Security (excluding
any portion of such payments of interest accrued as of the redemption date) as
if such Security were redeemed on the Maturity Date, computed using a discount
rate equal to the Treasury Rate plus 50 basis points, over (b) the
outstanding principal amount of such Security. “Treasury Rate” with
respect to a Security means the yield to maturity (calculated on a semi-annual
bond equivalent basis) at the time of the computation of United States Treasury
securities with a constant maturity (as compiled by and published in the most
recent Federal Reserve Statistical Release H.15(519), which has become publicly
available at least two Business Days prior to the date of the redemption notice
or, if such Statistical Release is no longer published, any publicly available
source of similar market data) most nearly equal to the then remaining maturity
of such Security assuming that such Security will be redeemed on the Maturity
Date; provided, however, that if the Make-Whole Average Life of a
Security is not equal to the constant maturity of the United States Treasury
security for which a weekly average yield is given, the Treasury Rate shall be
obtained by linear interpolation (calculated to the nearest one-twelfth of a
year) from the weekly average yields of United States Treasury securities for
which such yields are given, except that if the Make-Whole Average Life of such
Security is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity of one year
shall be used.

“Make-Whole Average Life” means, with respect
to a Security, the number of years (calculated to the nearest one-twelfth of a
year) between the date of redemption of such Security and the Maturity Date.

“Make-Whole Price” means the sum of the
outstanding principal amount of the Securities to be redeemed plus the Make-Whole
Amount of such Securities.

“Maturity Date” means June 1, 2016.

6.             Notice
of Redemption. Notices of redemption shall be mailed at least 30 but not
more than 60 days before the Redemption Date to each Holder of Securities to be
redeemed at its registered address. Notices of redemption may not be
conditional. If any Security is to be redeemed in part only, the notice of
redemption that relates to such Security shall state the portion of the principal
amount thereof to be redeemed.

7.             Sinking
Fund. There will be no mandatory sinking fund payment for the Securities.

8.             Guarantees.
The obligations of the Company hereunder are fully and unconditionally
guaranteed, jointly and severally, on a senior unsecured basis by the
Guarantors. The Guarantors’ guarantees of the obligations of the Company
hereunder will be unconditionally released upon, among other things, a
Fall-Away Event.

9.             Denominations,
Transfer, Exchange. The Securities are in registered form without coupons
in minimum denominations of $2,000 and integral multiples of $1,000 thereof. A
Holder may transfer or exchange Securities in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer

 A-4
 

 

documents and to pay to it any taxes and fees required
by law or permitted by the Indenture. The Registrar need not register the
transfer of or exchange any Securities or portion of a Security selected for redemption,
or register the transfer of or exchange any Securities for a period of 15 days
before a mailing of notice of redemption.

10.           Persons
Deemed Owners. The registered Holder of this Security may be treated as the
owner of this Security for all purposes.

11.           Unclaimed
Money. If money for the payment of principal or interest remains unclaimed
for two years, the Trustee will pay the money back to the Company at its written
request. After that, Holders entitled to the money must look to the Company for
payment as general creditors unless an “abandoned property” law designates
another Person.

12.           Amendment,
Supplement, Waiver, Etc. The Company and the Trustee (if a party thereto)
may, without the consent of the Holders of any outstanding Securities, amend,
waive or supplement the Indenture or the Securities for certain specified
purposes, including, among other things, curing ambiguities, defects or
inconsistencies, maintaining the qualification of the Indenture under the TIA,
providing for the assumption by a successor to the Company of its obligations
under the Indenture and making any change that does not materially and
adversely affect the rights of any Holder. Other amendments and modifications
of the Indenture or the Securities may be made by the Company and the Trustee
with the consent of the Holders of not less than a majority of the aggregate
principal amount of the outstanding Securities, subject to certain exceptions
requiring the consent of the Holders of the particular Securities to be affected.

13.           Restrictive
Covenants. The Indenture imposes certain limitations on the ability of the
Company and its Subsidiaries to, among other things, create liens, enter into
sale and leaseback transactions or consolidate, merge or sell all or
substantially all of the assets of the Company and its Subsidiaries and
requires the Company to provide reports to Holders of the Securities. Such
limitations are subject to a number of important qualifications and exceptions.
Pursuant to Section 1004 of the Indenture, the Company must annually
report to the Trustee on compliance with such limitations.

14.           Successor
Corporation. When a successor corporation assumes all the obligations of
its predecessor under the Securities and the Indenture and the transaction
complies with the terms of Article Eight of the Indenture, the predecessor
corporation will, except as provided in Article Eight, be released from
those obligations.

15.           Defaults
and Remedies. Events of Default are set forth in the Indenture. Subject to
certain limitations in the Indenture, if an Event of Default with respect to
Securities of this series occurs and is continuing, then, and in each and every
such case, either the Trustee, by notice in writing to the Company, or the
Holders of not less than 25% of the principal amount of the Securities of this
series then outstanding (in the case of any Event of Default described in
clause (1), (2) or (10) of Section 501 of the Indenture) or the
Holders of not less than 25% of the principal amount of all Outstanding
Securities (in the case of any Event of Default described in clause (3), (4),
(5), (6) or (7) of Section 501), by notice in writing to the
Company and the Trustee, may, and the Trustee at the request of such Holders
shall, declare due and payable, if not already due and payable, the principal
of and any accrued and unpaid interest on all of the

 A-5
 

 

Securities of this series; and upon any such
declaration all such amounts upon such Securities shall become and be
immediately due and payable, anything in the Indenture or in the Securities to
the contrary notwithstanding. If an Event of Default specified in clause (8) or
(9) of Section 501 of the Indenture occurs with respect to the
Company, then the principal of and any accrued and unpaid interest on all of
the Securities shall immediately become due and payable without any declaration
or other act on the part of the Trustee or any Holder. Holders may not enforce
the Indenture or the Securities except as provided in the Indenture. The
Trustee may require indemnity satisfactory to it before it enforces the
Indenture or the Securities. Subject to certain limitations, Holders of a
majority in principal amount of the then outstanding Securities of this series
may direct the Trustee in its exercise of any trust or power.

16.           Trustee
Dealings with Company. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not Trustee.

17.           No
Recourse Against Others. No director, officer, employee, incorporator,
member of the Board of Directors or holder of Capital Stock of the Company, as
such, will have any liability for any obligations of the Company under this
Security or the Indenture or for any claim based on, in respect of, or by
reason of, such obligations. Each Holder of this Security by accepting this
Security waives and releases all such liability. The waiver and release are
part of the consideration for issuance of this Security.

18.           Discharge.
The Company’s obligations pursuant to the Indenture will be discharged, except
for obligations pursuant to certain sections thereof, subject to the terms of
the Indenture, upon the payment of all the Securities or upon the irrevocable
deposit with the Trustee of United States dollars or U.S. Government Obligations
sufficient to pay when due principal of and interest on the Securities to
maturity or redemption, as the case may be.

19.           Authentication.
This Security shall not be valid until the Trustee signs the certificate of
authentication on the other side of this Security.

20.           Governing
Law. THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK. The Trustee and the Company agree to submit
to the non-exclusive jurisdiction of the courts of the State of New York and of
the United States located in New York County in any action or proceeding
arising out of or relating to the Indenture or the Securities.

21.           Abbreviations.
Customary abbreviations may be used in the name of a Holder or an assignee,
such as:  TEN COM (=  tenants in common), TENANT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

22.           CUSIP
Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP
numbers to be printed on the Securities and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such

 A-6
 

 

numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

The Company will furnish to any Holder upon written
request and without charge a copy of the Indenture. Requests may be made to:

Chemtura Corporation

199 Benson Road

Middlebury, CT 06749

Attn:  Investor Relations

Telephone:      (203) 573-2000

With a copy to:

Skadden, Arps, Slate Meagher & Flom LLP

4 Times Square

New York, NY 10036-6518

Attn:  Phyllis Korff

Telephone:      (212) 735-3000

 A-7
 

 

ASSIGNMENT

I or we assign and transfer this Security to:

(Insert assignee’s
social security or tax I.D. number)

 

(Print or type
name, address and zip code of assignee)

and irrevocably appoint:

Agent to transfer this Security on the books of the
Company. The Agent may substitute another to act for him.

	
  Date:

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on

  the other side of this Security)

  

 

	
  Signature Guarantee:

  	
   

  	
   

  

 

SIGNATURE
GUARANTEE

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”)
or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

 A-8
 

 

OPTION OF
HOLDER TO ELECT PURCHASE

If you wish to elect to have all or any portion of
this Security purchased by the Company pursuant to Section 1009 (“Change
of Control Offer”) of the Indenture, check the applicable box:

	
  

  	
  in whole

  	
  o

  	
   

  
	
   

  	
  in part

  	
  o

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  Amount to be

  	
   

  
	
   

  	
  purchased: $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on the other side
  of this Note)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  	
  (Participant in recognized signature guarantee
  medallion program)

  
	
   

  	
   

  	
   

  
	
   

  	
  Social Security Number or

  
	
   

  	
  Taxpayer Identification Number:

  	
   

  
											

 

 A-9

 

EXHIBIT B

 [FORM OF
LEGEND FOR GLOBAL SECURITY]

Any Global Security authenticated and delivered
hereunder shall bear a legend in substantially the following form:

This Security is a Global Security within the
meaning of the Indenture hereinafter referred to and is registered in the name
of a Depositary or a nominee of a Depositary. This Security is not exchangeable
for Securities registered in the name of a person other than the Depositary or
its nominee except in the limited circumstances described in the Indenture, and
no transfer of this Security (other than a transfer of this Security as a whole
by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary) may be registered
except in the limited circumstances described in the Indenture.

Unless this Certificate is presented by an
authorized representative of The Depository Trust Company (a New York
corporation) (“DTC”) to the issuer or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede &
Co. or such other entity as is requested by an authorized representative of
DTC), any transfer, pledge or other use hereof for value or otherwise by or to
any person is wrongful inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

 

 B-1

 

EXHIBIT C

GUARANTEE

For value received, the undersigned hereby
unconditionally guarantees, as principal obligor and not only as a surety, to
the Holder of this Security the cash payments in United States dollars of
principal of, premium, if any, and interest on this Security in the amounts and
at the times when due and interest on the overdue principal, premium, if any,
and interest, if any, of this Security, if lawful, and the payment or
performance of all other obligations of the Company under the Indenture (as
defined below) or the Security, to the Holder of this Security and the Trustee,
all in accordance with and subject to the terms and limitations of this
Security, Article Fifteen of the Indenture and this Guarantee. This
Guarantee will become effective in accordance with Article Fifteen of the
Indenture and its terms shall be evidenced therein. The validity and
enforceability of this Guarantee shall not be affected by the fact that it is
not affixed to any particular Security. Capitalized terms used but not defined
herein shall have the meanings ascribed to them in the Indenture dated as of April 24,
2006, among Chemtura Corporation, a Delaware corporation, as issuer (the “Company”),
each of the Guarantors named therein and Wells Fargo Bank, N.A., as trustee
(the “Trustee”) (as amended or supplemented, the “Indenture”).

THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT
TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION
OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
Each Guarantor hereby agrees to submit to the jurisdiction of the courts of the
State of New York in any action or proceeding arising out of or relating
to this Guarantee.

 C-1
 

 

This Guarantee is subject to release upon the terms
set forth in the Indenture.

A & M CLEANING PRODUCTS, LLC

AQUA CLEAR INDUSTRIES, LLC

ASCK, INC.

ASEPSIS, INC.

BIOLAB TEXTILE ADDITIVES, LLC

BIO-LAB, INC.

CHEMTURA USA CORPORATION

CNK CHEMICAL REALTY CORPORATION

CROMPTON COLORS INCORPORATED

CROMPTON HOLDING CORPORATION

CROMPTON MONOCHEM, INC.

ENENCO, INCORPORATED

GREAT LAKES CHEMICAL CORPORATION

GREAT LAKES CHEMICAL GLOBAL, INC.

GT SEED TREATMENT, INC.

HOMECARE LABS, INC.

ISCI, INC.

KEM MANUFACTURING CORPORATION

MONOCHEM, INC.

NAUGATUCK TREATMENT COMPANY

RECREATIONAL WATER PRODUCTS, INC.

UNIROYAL CHEMICAL COMPANY LIMITED (DELAWARE)

WEBER CITY ROAD LLC

WRL OF INDIANA, INC.

By:                                                                                                                                 

Name:  

Title:

 

 C-2

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