Document:

Exhibit 10.1

 

THIRD AMENDMENT TO THE

2001 INCENTIVE AWARD PLAN OF

WATSON PHARMACEUTICALS, INC.

 

This Third
Amendment (this “Amendment”) to the 2001 Incentive Award Plan of Watson
Pharmaceuticals, Inc., as amended (the “Plan”), is hereby adopted by Watson Pharmaceuticals,
Inc., a Nevada corporation (the “Company”), effective as of August 4,
2003.

 

RECITALS

 

I.                                         The
Plan was originally adopted by the Board of Directors of the Company on
February 2, 2001 and approved by the stockholders of the Company on
May 7, 2001.

 

II.                                     The
Plan was amended by the First Amendment to the Plan as of May 16, 2001 and
the Second Amendment as of May 19, 2003.

 

III.                                 On
August 4, 2003, the following Amendments were adopted by the Board of
Directors of the Company.

 

THE AMENDMENTS

 

A.                                   Option
Price.  Subsection 5.1(d) of
the Plan is hereby amended to read in its entirety as follows:

 

(d)                                 In
the case of Non-Qualified Stock Options, such price shall not be less than 100%
of the Fair Market Value of a share of Common Stock on the date the Option is
granted.

 

B.                                     Manner
of Exercise.  Subsection 6.2(d)
of the Plan is hereby amended to read in its entirety as follows:

 

(d)                                 Full
cash payment to the Secretary of the Company for the shares with respect to
which the Option, or portion thereof, is exercised.  However, the Administrator may, in its discretion (i) allow
payment, in whole or in part, through the delivery of shares of Common Stock
which have been owned by the Holder for at least six months, duly endorsed for
transfer to the Company with a Fair Market Value on the date of delivery equal
to the aggregate exercise price of the Option or exercised portion thereof;
(ii) allow payment, in whole or in part, through the surrender of shares of
Common Stock then issuable upon exercise of the Option having a Fair Market
Value on the date of Option exercise equal to the aggregate exercise price of
the Option or exercised portion thereof; (iii) allow payment, in whole or in
part, through the delivery of property of any kind which constitutes good and valuable
consideration; (iv) allow payment, in whole or in part, through the delivery of
a notice that the Holder has placed a market sell order with a broker with
respect to shares of Common Stock then issuable upon exercise of the Option,
and that the broker has been directed to pay a sufficient portion of the net
proceeds of the sale to the Company in satisfaction of the

 

 

Option
exercise price, provided that payment of such proceeds is then made to the
Company upon settlement of such sale; or (v) allow payment through any
combination of the consideration provided in the foregoing paragraphs (i),
(ii), (iii) and (iv); provided, however, that the payment in the manner
prescribed in the preceding paragraphs shall not be permitted to the extent
that the Administrator determines that payment in such manner shall result in
an extension or maintenance of credit, an arrangement for the extension of
credit, or a renewal or an extension of credit in the form of a personal loan
to or for any Director or executive officer of the Company that is prohibited
by Section 13(k) of the Exchange Act or other applicable law.

 

C.                                     Repricing
of Options.  Section 8.6 of the
Plan is hereby amended to read in its entirety as follows:

 

8.6  Repricing.  Subject to Section 8.3, the Administrator
shall not, without the approval of the stockholders of the Company, authorize
the amendment of any outstanding Award to reduce its price per share.  Furthermore, no Award shall be canceled and
replaced with the grant of an Award having a lesser price per share without the
further approval of stockholders of the Company.

 

* * * * *

 

The
undersigned, David A. Buchen, Senior Vice President, General Counsel and
Secretary of the Company, hereby certifies that the Board of Directors approved
this Amendment.

 

Executed at
Corona, California, this 30th day of September, 2003.

 

	
   

  	
  WATSON
  PHARMACEUTICALS, INC.

  
	
   

  	
  a Nevada
  corporation

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ David A. Buchen

  	
   

  
	
   

  	
  David A.
  Buchen

  
	
   

  	
  Senior Vice
  President, General Counsel

  and Secretary

  

 

2Exhibit
4.1

 

 

 

FIRST
REGIONAL BANCORP,

Issuer

 

 

 

WELLS
FARGO BANK, NATIONAL ASSOCIATION

Trustee

 

 

 

 

Indenture

 

Dated as of
October 30, 2003

 

 

 

$15,000,000

6% Convertible Subordinated Debentures Due 2023

 

 

 

 

FIRST
REGIONAL BANCORP

 

Certain Sections
of this Indenture relating to

Sections 310 through 318 of the

Trust Indenture Act of 1939:

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  
	
  (S) 310 (a) (1)

  	
   

  	
  609

  
	
               (a) (2)

  	
   

  	
  609

  
	
               (a) (3)

  	
   

  	
  Not Applicable

  
	
               (a) (4)

  	
   

  	
  Not Applicable

  
	
               (b)

  	
   

  	
  608

  
	
   

  	
   

  	
  610

  
	
  (S) 311 (a)

  	
   

  	
  613

  
	
               (b)

  	
   

  	
  613

  
	
  (S) 312 (a)

  	
   

  	
  701

  
	
   

  	
   

  	
  702(a)

  
	
               (b)

  	
   

  	
  702(b)

  
	
               (c)

  	
   

  	
  702(c)

  
	
  (S) 313 (a)

  	
   

  	
  703(a)

  
	
               (b)

  	
   

  	
  703(a)

  
	
               (c)

  	
   

  	
  703(a)

  
	
               (d)

  	
   

  	
  703(b)

  
	
  (S) 314 (a)

  	
   

  	
  704

  
	
              
  (b)

  	
   

  	
  Not Applicable

  
	
            (c) (1)

  	
   

  	
  102

  
	
            (c) (2)

  	
   

  	
  102

  
	
            (c) (3)

  	
   

  	
  Not Applicable

  
	
            (d)

  	
   

  	
  Not Applicable

  
	
            (e)

  	
   

  	
  102

  
	
  (S) 315 (a)

  	
   

  	
  601

  
	
            (b)

  	
   

  	
  602

  
	
            (c)

  	
   

  	
  601

  
	
            (d)

  	
   

  	
  601

  
	
            (e)

  	
   

  	
  514

  

 

i

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  
	
  (S) 316 (a)

  	
   

  	
  101

  
	
               (a) (1) (A)

  	
   

  	
  502

  
	
   

  	
   

  	
  512

  
	
               (a) (1) (B)

  	
   

  	
  513

  
	
               (a) (2)

  	
   

  	
  Not Applicable

  
	
               (b)

  	
   

  	
  508

  
	
               (c)

  	
   

  	
  104(c)

  
	
  (S) 317 (a) (1)

  	
   

  	
  503

  
	
               (a)
  (2)

  	
   

  	
  504

  
	
               (b)

  	
   

  	
  1003

  
	
  (S) 318 (a)

  	
   

  	
  107

  

 

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE DEFINITIONS AND OTHER
  PROVISIONS OF GENERAL APPLICATION

  
	
   

  	
   

  
	
  SECTION
  101.

  	
  Definitions

  
	
  SECTION
  102.

  	
  Compliance Certificates and Opinions

  
	
  SECTION
  103.

  	
  Form of Documents Delivered to Trustee

  
	
  SECTION
  104.

  	
  Acts of Holders; Record Dates

  
	
  SECTION
  105.

  	
  Notices, Etc., to Trustee and Company

  
	
  SECTION
  106.

  	
  Notice to Holders; Waiver

  
	
  SECTION
  107.

  	
  Conflict with Trust Indenture Act

  
	
  SECTION
  108.

  	
  Effect of Headings and Table of Contents

  
	
  SECTION
  109.

  	
  Successors and Assigns

  
	
  SECTION
  110.

  	
  Separability Clause

  
	
  SECTION
  111.

  	
  Benefits of Indenture

  
	
  SECTION
  112.

  	
  Governing Law

  
	
  SECTION
  113.

  	
  Legal Holidays

  
	
   

  	
   

  
	
  ARTICLE
  TWO SECURITY FORMS

  
	
   

  	
   

  
	
  SECTION
  201.

  	
  Forms Generally

  
	
  SECTION
  202.

  	
  Form of Face of Security

  
	
  SECTION
  203.

  	
  Form of Reverse of Security

  
	
  SECTION
  204.

  	
  Form of Trustee’s Certificate of
  Authentication

  
	
   

  	
   

  
	
  ARTICLE
  THREE THE SECURITIES

  
	
   

  	
   

  
	
  SECTION
  301.

  	
  Title and Terms

  
	
  SECTION
  302.

  	
  Denominations

  
	
  SECTION
  303.

  	
  Execution, Authentication, Delivery and
  Dating

  
	
  SECTION
  304.

  	
  Temporary Securities

  
	
  SECTION
  305.

  	
  Registration, Registration of Transfer and
  Exchange

  
	
  SECTION
  306.

  	
  Mutilated, Destroyed, Lost and Stolen
  Securities

  
	
  SECTION
  307.

  	
  Payment of Interest; Interest Rights
  Preserved

  
	
  SECTION
  308.

  	
  Persons Deemed Owners

  
	
  SECTION
  309.

  	
  Cancellation

  
	
  SECTION
  310.

  	
  Computation of Interest

  
	
   

  	
   

  
	
  ARTICLE
  FOUR SATISFACTION AND DISCHARGE

  
	
   

  	
   

  
	
  SECTION
  401.

  	
  Satisfaction and Discharge of Indenture

  
	
  SECTION
  402.

  	
  Application of Trust Money

  
	
   

  	
   

  
	
  ARTICLE
  FIVE REMEDIES

  
	
   

  	
   

  
	
  SECTION
  501.

  	
  Events of Default

  
	
  SECTION
  502.

  	
  Acceleration of Maturity; Rescission and
  Annulment

  
	
  SECTION
  503.

  	
  Collection of Indebtedness and Suits for
  Enforcement by Trustee

  
	
  SECTION
  504.

  	
  Trustee May File Proofs of Claim

  
	
  SECTION
  505.

  	
  Trustee May Enforce Claims Without
  Possession of Securities

  

 

 

	
  SECTION
  506.

  	
  Application of Money Collected

  
	
  SECTION
  507.

  	
  Limitation on Suits

  
	
  SECTION
  508.

  	
  Unconditional Right of Holders to Receive
  Principal, Premium and Interest and to Convert

  
	
  SECTION
  509.

  	
  Restoration of Rights and Remedies

  
	
  SECTION
  510.

  	
  Rights and Remedies Cumulative

  
	
  SECTION
  511.

  	
  Delay or Omission Not Waiver

  
	
  SECTION
  512.

  	
  Control by Holders

  
	
  SECTION
  513.

  	
  Waiver of Past Defaults

  
	
  SECTION
  514.

  	
  Undertaking for Costs

  
	
  SECTION
  515.

  	
  Waiver of Stay or Extension Laws

  
	
   

  	
   

  
	
  ARTICLE
  SIX THE TRUSTEE

  
	
   

  	
   

  
	
  SECTION
  601.

  	
  Certain Duties and Responsibilities

  
	
  SECTION
  602.

  	
  Notice of Defaults.

  
	
  SECTION
  603.

  	
  Certain Rights of Trustee.

  
	
  SECTION
  604.

  	
  Not Responsible for Recitals or Issuance of
  Securities.

  
	
  SECTION
  605.

  	
  May Hold Securities.

  
	
  SECTION
  606.

  	
  Money Held in Trust.

  
	
  SECTION
  607.

  	
  Compensation and Reimbursement.

  
	
  SECTION
  608.

  	
  Disqualification; Conflicting Interests.

  
	
  SECTION
  609.

  	
  Corporate Trustee Required; Eligibility.

  
	
  SECTION
  610.

  	
  Resignation and Removal; Appointment of
  Successor.

  
	
  SECTION
  611.

  	
  Acceptance of Appointment by Successor.

  
	
  SECTION
  612.

  	
  Merger, Conversion, Consolidation or
  Succession to Business.

  
	
  SECTION
  613.

  	
  Preferential Collection of Claims Against
  Company.

  
	
  SECTION
  614.

  	
  Appointment of Authenticating Agent.

  
	
   

  	
   

  
	
  ARTICLE
  SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

  
	
   

  	
   

  
	
  SECTION
  701.

  	
  Company to Furnish Trustee Names and
  Addresses of Holders.

  
	
  SECTION
  702.

  	
  Preservation of Information; Communications
  to Holders.

  
	
  SECTION
  703.

  	
  Reports by Trustee.

  
	
  SECTION
  704.

  	
  Reports by Company.

  
	
   

  	
   

  
	
  ARTICLE
  EIGHT CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

  
	
   

  	
   

  
	
  SECTION
  801.

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

  
	
  SECTION
  802.

  	
  Successor Substituted.

  
	
   

  	
   

  
	
  ARTICLE
  NINE SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  
	
  SECTION
  901.

  	
  Supplemental Indentures Without Consent of
  Holders.

  
	
  SECTION
  902.

  	
  Supplemental Indentures with Consent of
  Holders.

  
	
  SECTION
  903.

  	
  Execution of Supplemental Indentures.

  
	
  SECTION
  904.

  	
  Effect of Supplemental Indentures.

  
	
  SECTION
  905.

  	
  Conformity with Trust Indenture Act.

  
	
  SECTION
  906.

  	
  Reference in Securities to Supplemental
  Indentures.

  
	
  SECTION
  907.

  	
  Subordination Unimpaired.

  
	
   

  	
   

  
	
  ARTICLE
  TEN COVENANTS

  

 

 

	
  SECTION
  1001.

  	
  Payment of Principal, Premium and Interest.

  
	
  SECTION
  1002.

  	
  Maintenance of Office or Agency.

  
	
  SECTION
  1003.

  	
  Money for Security Payments to Be Held in
  Trust.

  
	
  SECTION
  1004.

  	
  Statement by Officers as to Default.

  
	
  SECTION
  1005.

  	
  Existence.

  
	
  SECTION
  1006.

  	
  Payment of Taxes and Other Claims.

  
	
  SECTION
  1007.

  	
  Waiver of Certain Covenants.

  
	
  SECTION
  1008.

  	
  Book-Entry System.

  
	
   

  	
   

  
	
  ARTICLE
  ELEVEN REDEMPTION OF SECURITIES

  
	
   

  	
   

  
	
  SECTION
  1101.

  	
  Right of Redemption.

  
	
  SECTION
  1102.

  	
  Applicability of Article.

  
	
  SECTION
  1103.

  	
  Election to Redeem; Notice to Trustee.

  
	
  SECTION
  1104.

  	
  Selection by Trustee of Securities to Be
  Redeemed.

  
	
  SECTION
  1105.

  	
  Notice of Redemption.

  
	
  SECTION
  1106.

  	
  Deposit of Redemption Price.

  
	
  SECTION
  1107.

  	
  Securities Payable on Redemption Date.

  
	
  SECTION
  1108.

  	
  Securities Redeemed in Part.

  
	
   

  	
   

  
	
  ARTICLE
  TWELVE SUBORDINATION OF SECURITIES

  
	
   

  	
   

  
	
  SECTION
  1201.

  	
  Securities Subordinate to Senior
  Indebtedness.

  
	
  SECTION
  1202.

  	
  Payment Over of Proceeds Upon Dissolution,
  Etc.

  
	
  SECTION
  1203.

  	
  Prior Payment to Senior Indebtedness Upon
  Acceleration of Securities.

  
	
  SECTION
  1204.

  	
  No Payment When Senior Indebtedness in
  Default.

  
	
  SECTION
  1205.

  	
  Payment Permitted If No Default.

  
	
  SECTION
  1206.

  	
  Subrogation to Rights of Holders of Senior
  Indebtedness.

  
	
  SECTION
  1207.

  	
  Provisions Solely to Define Relative
  Rights.

  
	
  SECTION
  1208.

  	
  Trustee to Effectuate Subordination.

  
	
  SECTION
  1209.

  	
  No Waiver of Subordination Provisions.

  
	
  SECTION
  1210.

  	
  Notice to Trustee.

  
	
  SECTION
  1211.

  	
  Reliance on Judicial Order or Certificate
  of Liquidating Agent.

  
	
  SECTION
  1212.

  	
  Trustee Not Fiduciary for Holders of Senior
  Indebtedness.

  
	
  SECTION
  1213.

  	
  Rights of Trustee as Holder of Senior
  Indebtedness; Preservation of Trustee’s Rights.

  
	
  SECTION
  1214.

  	
  Article Applicable to Paying Agents.

  
	
  SECTION
  1215.

  	
  Payment of Proceeds in Certain Cases.

  
	
  SECTION
  1216.

  	
  Certain Conversions Deemed Payment.

  
	
   

  	
   

  
	
  ARTICLE
  THIRTEEN CONVERSION OF SECURITIES

  
	
   

  	
   

  
	
  SECTION
  1301.

  	
  Conversion Privilege and Conversion Price.

  
	
  SECTION
  1302.

  	
  Exercise of Conversion Privilege.

  
	
  SECTION
  1303.

  	
  Fractions of Shares.

  
	
  SECTION
  1304.

  	
  Adjustment of Conversion Price.

  
	
  SECTION
  1305.

  	
  Notice of Adjustments of Conversion Price.

  
	
  SECTION
  1306.

  	
  Notice of Certain Corporate Actions.

  
	
  SECTION
  1307.

  	
  Company to Reserve Common Stock.

  
	
  SECTION
  1308.

  	
  Taxes on Conversions.

  

 

 

	
  SECTION
  1309.

  	
  Covenant as to Common Stock.

  
	
  SECTION
  1310.

  	
  Cancellation of Converted Securities.

  
	
  SECTION
  1311.

  	
  Provisions in Case of Consolidation, Merger
  or Sale of Assets.

  

 

 

INDENTURE, dated as of October 30, 2003
between FIRST REGIONAL BANCORP, a corporation duly organized and existing under
the laws of the State of California (herein called the “Company”), having its
principal office at 1801 Century Park East, Los Angeles, California, 90067, and
Wells Fargo Bank, National Association, a national banking association duly
organized and existing under the laws of The United States of America, as
Trustee (herein called the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company has duly authorized the creation
of an issue of its 6% Convertible Subordinated Debentures Due 2023 (herein
called the “Securities”) of substantially the tenor and amount hereinafter set
forth, and to provide therefor the Company has duly authorized the execution
and delivery of this Indenture.

 

All things necessary to make the Securities,
when executed by the Company and authenticated and delivered hereunder and duly
issued by the Company, the valid obligations of the Company, and to make this
Indenture a valid agreement of the Company, in accordance with their and its
terms, have been done.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE ONE

Definitions and Other Provisions

of General Application

 

SECTION 101.                                                                    Definitions.

 

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

 

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

 

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

 

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

 

1

 

(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.

 

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

 

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

 

“Agent Member” means any member of, or
participant in, the Depositary.

 

“Applicable Procedures” means, with respect
to any transfer or transaction involving a Global Note or beneficial interest
therein, the rules and procedures of the Depositary for such Global Note to the
extent applicable to such transaction and as in effect from time to time.

 

“Authenticating Agent” means any Person
authorized by the Trustee pursuant to Section 614 to act on behalf of the
Trustee to authenticate Securities.

 

“Bank” means First Regional Bank, a state
bank chartered under the laws of the State of California, and its successors
(whether by consolidation, merger, conversion, transfer of substantially all of
their assets and business or otherwise) so long as First Regional Bank or any
successor is a Subsidiary.

 

“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 each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which (i) banking
associations or national banking associations in Los Angeles, California are
authorized or obligated by law or executive order to close.

 

“Closing Price” means, with respect to the
Common Stock of the Company, for any day, the reported last sales price or, in
case no such reported sale takes place on such day, the average of the reported
closing bid and asked prices, in either case (i) on the Nasdaq National Market
or, if the Common Stock is not quoted on the Nasdaq National Market, on the
principal national securities exchange on which the Common Stock is listed or
admitted to trading, or (ii) if not quoted on the Nasdaq National Market or
listed or admitted to trading on any national securities exchange, the average
of the closing bid and asked prices in the over-the-counter

 

2

 

market as
furnished by any New York Stock Exchange member firm selected from time to time
by the Trustee for that purpose.

 

“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 instrument such
Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.

 

“Common Stock” includes any stock of any
class of the Company which has no preference in respect of dividends or of
amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding-up of the Company and which is not subject to redemption
by the Company. However, subject to the provisions of Section 1311, shares
issuable on conversion of Securities shall include only shares of the class
designated as Common Stock of the Company at the date of this instrument or
shares of any class or classes resulting from any reclassification or
reclassifications thereof and which have no preference in respect of dividends
or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding-up of the Company and which are not subject to
redemption by the Company; provided that if at any time there shall be more
than one such resulting class, the shares of each such class then so issuable
shall be substantially in the proportion which the total number of shares of
such class resulting from all such reclassifications bears to the total number
of shares of all such classes resulting from all such reclassifications.

 

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

 

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

 

“Corporate Trust Office” means the principal
office of the Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of the execution of
this Indenture is located at 707 Wilshire Boulevard, 17th floor, Los
Angeles, California, 90017.

 

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

 

“Custodian” means Wells Fargo Bank, National
Association, as custodian with respect to any Global Note, or any successor
entity thereto.

 

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

 

“Definitive Note” means a certificated Note
registered in the name of the Holder thereof and issued in accordance with
Section 305 hereof, in the form specified in Article Two except that
such Note shall not bear the Global Note Legend and shall not have the
“Schedule of Exchanges of Interests in the Global Note” attached thereto.

 

3

 

“Depositary” means, with respect to any
Global Notes, a clearing agency that is registered as such under the Exchange
Act and is designated by the Company to act as Depositary for such Global Notes
(or any successor securities clearing agency so registered).

 

“DTC” means The Depository Trust Company, a
New York corporation.

 

“Entitled Persons” means any person entitled
to payment pursuant to the terms of Other Financial Obligations.

 

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

 

“Excess Proceeds” has the meaning specified
in Section 1215(a).

 

“Exchange Act” means the Securities Exchange Act
of 1934, as amended, or any successor statute or statutes thereto.

 

“Global Note”  means a Security that is registered in the Security Register in
the name of a Depositary or a nominee thereof.

 

“Global Note Legend” means the legend set
forth in Section 305(f)(2), which is required to be placed on all Global
Notes issued under this Indenture.

 

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

 

“indebtedness for money borrowed”, when used
with respect to the Company, means any obligation of, or any obligation
guaranteed by, the Company for the repayment of borrowed money, whether or not
evidenced by bonds, debentures, notes or other written instruments, and any
deferred obligation of, or any such obligation guaranteed by, the Company for
the payment of the purchase price of property or assets.

 

“Indenture” means this instrument as
originally executed or as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument
and any such supplemental indenture, the provisions of the Trust Indenture Act
that are deemed to be a part of and govern this instrument and any such
supplemental indenture, respectively.

 

“Indirect Participant” means a Person who
holds a beneficial interest in a Global Note through a Participant.

 

“Interest Payment Date” means the Stated
Maturity of an installment of interest on the Securities.

 

“Major Depository Institution Subsidiary”,
means a Subsidiary that is an insured depository institution and that is or
would be a direct or indirect major subsidiary (or other subsidiary deemed to
be the equivalent of a major subsidiary) as such term is defined by the Board of
Governors of the Federal Reserve System (or any successor thereof) from time to
time; provided, however, that any Subsidiary that had consolidated quarterly
average total assets that

 

4

 

were less than
20% of the Company’s consolidated quarterly average total assets for the most
recently available quarter shall not be deemed to be a Major Depository
Institution Subsidiary.

 

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

 

“Non-U.S.
Person” means a person who is not a U.S. Person.

 

“Officers’ Certificate” means a certificate
signed by the Chairman of the Board, a Vice Chairman of the Board, the
President or a Vice President, and by the Treasurer, an Assistant Treasurer,
the Secretary or an Assistant Secretary, of the Company, and delivered to the Trustee.
One of the officers signing an Officers’ Certificate given pursuant to
Section 1004 shall be the principal executive, financial or accounting
officer of the Company.

 

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

 

“Other Financial Obligations”  means all obligations to make payment
pursuant to the terms of financial instruments, such as (i) securities
contracts and foreign currency exchange contracts, (ii) derivative instruments,
such as swap agreements (including interest rate and foreign exchange rate swap
agreements), cap agreements, floor agreements, collar agreements, interest rate
agreements, foreign exchange rate agreements, options, commodity futures contracts
and commodity options contracts and (iii) in the case of both (i) and (ii)
above, similar financial instruments other than (A) obligations on account of
Senior Indebtedness and (B) obligations on account of indebtedness for money
borrowed ranking pari passu with or subordinate to the Securities.

 

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

 

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

 

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

 

(3)                                  Securities which have been paid
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;

 

5

 

provided, however, that in determining
whether the Holders of the requisite majority in principal amount of the
Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the Trustee knows to be so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee
the pledgee’s right so to act with respect to such Securities and that the
pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor.

 

“Participant” means, with respect to DTC,
Euroclear or Cedel, a Person who has an account with DTC, Euroclear or Cedel,
respectively (and, with respect to DTC, shall include Euroclear and Cedel).

 

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

 

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

 

“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.

 

“Private Placement Legend” means the legend
set forth in Section 305(f)(1) to be placed on all Securities issued under
this Indenture except where otherwise permitted by the provisions of this
Indenture.

 

“QIB” means a “Qualified Institutional Buyer”
as defined in Rule 144A of the Securities Act.

 

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

 

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

 

“Registration
Rights Agreement” means the Registration Rights Agreement dated the date hereof
among the Company and the purchasers of the Securities.

 

“Regular Record Date” for the interest
payable on any Interest Payment Date means the April 10 or October 10
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.

 

6

 

“Regulation D”
means Regulation D promulgated under the Securities Act (including any
successor regulation thereto) as in effect on the date hereof.

 

“Regulation S”
means Regulation S promulgated under the Securities Act (including any
successor regulation thereto) as in effect on the date hereof.

 

“Regulation D Global Note” means the Global
Note in the form specified in Article II bearing the Global Note Legend
and the Private Placement Legend and deposited with or on behalf of and
registered in the name of the Depositary or its nominee that will be issued in
a denomination equal to the outstanding principal amount of the Securities sold
in reliance on Regulation D.

 

“Regulation S
Global Note” means a Regulation S Temporary Global Note or Regulation S
Permanent Global Note, as appropriate.

 

“Regulation S
Permanent Global Note” means a permanent Global Note in the form specified in
Article II bearing the Global Note Legend and the Private Placement Legend
and deposited with or on behalf of and registered in the name of the Depositary
or its nominee, issued in a denomination equal to the outstanding principal
amount of the Regulation S Temporary Global Note upon expiration of the
Restricted Period.

 

“Regulation S Temporary Global Note” means a
temporary Global Note in the form specified in Article II bearing the
Global Note Legend, the Private Placement Legend and the legend set forth in
Section 305(f)(3) hereto, and deposited with or on behalf of and
registered in the name of the Depositary or its nominee, issued in a
denomination equal to the outstanding principal amount of the Securities
initially sold in reliance on Rule 903 of Regulation S.

 

“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 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 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.

 

“Restricted
Definitive Note” means a Definitive Note bearing the Private Placement Legend.

 

“Restricted
Global Note” means a Global Note bearing the Private Placement Legend.

 

“Restricted
Period” means the 40-day restricted period as defined in Regulation S.

 

“Securities” shall have the meaning assigned
to it in the preamble to this Indenture.

 

7

 

“Securities Act” shall mean the Securities
Act of 1933, as amended.

 

“Security Register” and “Security Registrar”
have the respective meanings specified in Section 305.

 

“Senior Indebtedness” means the principal of,
and premium, if any, and interest on (a) all indebtedness of the Company for
money borrowed, whether outstanding on the date of execution of this Indenture
or thereafter created, assumed or incurred, except (i) such indebtedness as is
by its terms expressly stated to be junior in right of payment to the
Securities and (ii) such indebtedness as is by its terms expressly stated to
rank pari passu in right of payment with the Securities, and (b) any deferrals,
renewals or extensions of any such Senior Indebtedness.

 

“Shelf
Registration Statement” shall have the meaning set forth in the Registration
Rights Agreement.

 

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

 

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

 

“Subsidiary” means a corporation more than
50% of the outstanding voting stock of which is owned, directly or indirectly,
by the Company or by one or more other Subsidiaries, or by the Company and one
or more other Subsidiaries. For the purposes of this definition, “voting stock”
means stock which ordinarily has voting power for the election of directors,
whether at all times or only so long as no senior class of stock has such
voting power by reason of any contingency.

 

“Trading Date” means each Monday, Tuesday,
Wednesday, Thursday and Friday, other than any day on which the Common Stock is
not traded on the principal exchange or market on which the Common Stock is
traded or quoted.

 

“Trading Day” means each Monday, Tuesday,
Wednesday, Thursday and Friday during which trading in securities generally
occurs on the Nasdaq National Market (or, if the Common Stock is not quoted on
the Nasdaq National Market, on the principal other market on which the Common
Stock is then traded), other than a day on which a material suspension of or
limitation on trading is imposed that affects either the Nasdaq National Market
(or, if applicable, such other market) in its entirety or only the shares of
the Common Stock (by reason of movements in price exceeding the limits
permitted by the relevant market on which the shares are traded or otherwise)
or on which the Nasdaq National Market (or, if applicable, such other market)
cannot clear the transfer of the Company’s shares due to an event beyond the
Company’s control.

 

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

 

8

 

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

 

“Unrestricted
Definitive Note” means one or more Definitive Notes that do not bear and are
not required to bear the Private Placement Legend.

 

“Unrestricted
Global Note” means a permanent Global Note in the form specified in
Article II that bears the Global Note Legend and that has the
“Schedule of Exchanges of Interests in the Global Note” attached thereto,
and that is deposited with or on behalf of and registered in the name of the
Depositary, but does not bear the Private Placement Legend.

 

“U.S. Person”
means (i) any individual resident in the United States, (ii) any partnership or
corporation organized or incorporated under the laws of the United States,
(iii) any estate of which an executor or administrator is a U.S. Person (other
than an estate governed by foreign law and of which at least one executor or
administrator is a Non-U.S. Person who has sole or shared investment which at
least one executor or administrator is a Non-U.S. Person who has sole or shared
investment discretion with respect to its assets), (iv) any trust of which any
trustee is a U.S. Person (other than a trust of which at least one trustee is a
Non-U.S. Person who has sole or shared investment discretion with respect to
its assets and no beneficiary of the trust (and no settler, if the trust is
revocable) is a U.S. Person), (v) any agency or branch of a foreign entity
located in the United States, (vi) any non-discretionary or similar account
(other than an estate or trust) held by a dealer or other fiduciary for the
benefit or account of a U.S. person, (vii) any discretionary or similar account
(other than an estate or trust) held by a dealer or other fiduciary organized,
incorporated or (if an individual) resident in the United States (other than
such an account held for the benefit or account of a Non-U.S. Person), (viii)
any partnership or corporation organized or incorporated under the laws of a
foreign jurisdiction and formed by a U.S. Person principally for the purpose of
investing in securities not registered under the Securities Act (unless it is
organized or incorporated and owned, by “accredited investors” within the
meaning of Rule 501(a) under the Securities Act who are not natural persons,
estates or trusts); provided, however, that the term “U.S.
Person” shall not include (A) a branch or agency of a U.S. Person that is
located and operating outside the United States for valid business purposes as
a locally regulated branch or agency engaged in the banking or insurance
business, (B) any employee benefit plan established and administered in
accordance with the law, customary practices and documentation of a foreign
country and (C) the international organizations set forth in
Section 902(o)(7) of Regulation S under the Securities Act and any other
similar international organizations, and their agencies, affiliates and pension
plans.

 

“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”.

 

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, the Company shall furnish to the Trustee such certificates

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

SECTION 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.

 

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.

 

10

 

SECTION 104.                                                                    Acts
of Holders; Record Dates.

 

(a)                                  Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or instruments. Proof of execution
of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 601)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

 

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

 

(c)                                  The Company may, in the
circumstances permitted by the Trust Indenture Act, fix any day as the record
date for the purpose of determining the Holders entitled to give or take any
request, demand, authorization, direction, notice, consent, waiver or other
action, or to vote on any action, authorized or permitted to be given or taken
by Holders. If not set by the Company prior to the first solicitation of a
Holder made by any Person in respect of any such action, or, in the case of any
such vote, prior to such vote, the record date for any such action or vote
shall be the 30th day (or, if later, the date of the most recent list of
Holders required to be provided pursuant to Section 701) prior to such
first solicitation or vote, as the case may be. With regard to any record date,
only the Holders on such date (or their duly designated proxies) shall be
entitled to give or take, or vote on, the relevant action.

 

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

 

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

 

11

 

SECTION 105.                                                                    Notices,
Etc., to Trustee and Company.

 

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

 

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

 

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

 

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

 

SECTION 107.                                                                    Conflict
with Trust Indenture Act.

 

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

 

SECTION 108.                                                                    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.

 

12

 

SECTION 109.                                                                    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 110.                                                                    Separability
Clause.

 

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

 

SECTION 111.                                                                    Benefits
of Indenture.

 

Nothing in this Indenture or in the Securities,
express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder, the holders of Senior Indebtedness, the Holders of
Securities, and subject to Section 907, Entitled Persons in respect of
Other Financial Obligations, any benefit or any legal or equitable right,
remedy or claim under this Indenture.

 

SECTION 112.                                                                    Governing
Law.

 

THIS INDENTURE AND THE SECURITIES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 113.                                                                    Legal
Holidays.

 

In any case where any Interest Payment Date,
Redemption Date or Stated Maturity of any Security or the last date on which a
Holder has the right to convert his Securities shall not be a Business Day,
then (notwithstanding any other provision of this Indenture or of the
Securities) payment of interest or principal (and premium, if any) or
conversion of the Securities need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as if made on
the Interest Payment Date or Redemption Date, or at the Stated Maturity, or on
such last day for conversion, provided that no interest shall accrue for the
period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be.

 

ARTICLE TWO

Security Forms

 

SECTION 201.                                                                    Forms
Generally.

 

The Securities and the Trustee’s certificates
of authentication shall be in substantially the forms set forth in this
Article, 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,

 

13

 

consistently
herewith, be determined by the officers executing such Securities, as evidenced
by their execution of the Securities.

 

Any definitive Securities shall be typed,
printed, lithographed or engraved or produced by any combination of these
methods on steel engraved borders or may be produced in any other manner
permitted by the rules of any automated quotation system or securities exchange
on which the Securities may be quoted or listed, as the case may be, all as
determined by the officers executing such Securities, as evidenced by their
execution of such Securities.

 

Securities
offered and sold in reliance on Regulation S shall be issued initially in the
form of the Regulation S Temporary Global Note, which shall be deposited on
behalf of the purchasers of the Securities represented thereby with the
Trustee, at its New York office, as custodian for the Depositary, and
registered in the name of the Depositary or the nominee of the Depositary for
the accounts of designated agents holding on behalf of Euroclear or Cedel, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided.  Within a reasonable time
after expiration of the Restricted Period the Regulation S Temporary Global
Notes will be exchanged for the Regulation S Permanent Global Notes upon the
receipt by the Trustee of (i) a written certificate from the Depositary,
together with copies of certificates from Euroclear and Cedel certifying that
they have received certification of non-United States beneficial ownership of
100% of the aggregate principal amount of the Regulation S Temporary Global
Note (except to the extent of any beneficial owners thereof who acquired an
interest therein during the Restricted Period pursuant to another exemption
from registration under the Securities Act and who will take delivery of a
beneficial ownership interest in a Regulation D Global Note or a Restricted
Global Note bearing a Private Placement Legend, all as contemplated by
Section 305 hereof), and (ii) an Officers’ Certificate from the
Company.  Following such period,
beneficial interests in the Regulation S Temporary Global Note shall be
exchanged for beneficial interests in Regulation S Permanent Global Notes
pursuant to the Applicable Procedures. 
Simultaneously with the authentication of Regulation S Permanent Global
Notes, the Trustee shall cancel the Regulation S Temporary Global Note.  The aggregate principal amount of the
Regulation S Temporary Global Note and the Regulation S Permanent Global Notes
may from time to time be increased or decreased by adjustments made on the
records of the Trustee and the Depositary or its nominee, as the case may be,
in connection with transfers of interest as hereinafter provided.

 

The provisions
of the “Operating Procedures of the Euroclear System” and “Terms and Conditions
Governing Use of Euroclear” and the “General Terms and Conditions of Cedel
Bank” and “Customer Handbook” of Cedel Bank shall be applicable to transfers of
beneficial interests in the Regulation S Temporary Global Note and the
Regulation S Permanent Global Note that are held by the agent members through
Euroclear or Cedel.

 

SECTION 202.                                                                    Form
of Face of Security.

 

The following legend shall appear on the face
of each Global Note:

 

THIS SECURITY IS A
GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH

 

14

 

MAY BE
TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER
OF THIS SECURITY FOR ALL PURPOSES.

 

THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.
THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER THIS SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS (OR SUCH
OTHER PERIOD THAT MAY HEREAFTER BE PROVIDED UNDER RULE 144(k) UNDER THE
SECURITIES ACT AS PERMITTING RESALES OF RESTRICTED SECURITIES BY NON-AFFILIATES
WITHOUT RESTRICTION) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF
THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) (THE “RESALE RESTRICTION
TERMINATION DATE”) ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR
SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A UNDER THE SECURITIES ACT, (D) OUTSIDE OF THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (E)
TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH
(a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING
THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
“ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR
OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND
THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSE (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN
EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON
THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE AND
IN EACH CASE IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF ANY U.S. STATE OR
ANY OTHER APPLICABLE JURISDICTION.

 

15

 

The following legend shall appear on the face
of each Global Note for which The Depository Trust Company is to be the
Depositary:

 

THIS GLOBAL NOTE IS
HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS
NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE
MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION
305 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
NOT IN PART PURSUANT TO SECTION 305(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE
MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 309
OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY 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 TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

 

UNLESS AND UNTIL IT
IS EXCHANGED IN WHOLE OR IN PART FOR REGISTERED SECURITIES IN DEFINITIVE
REGISTERED FORM IN THE LIMITED CIRCUMSTANCES REFERRED TO IN THE INDENTURE, THIS
GLOBAL NOTE MAY NOT BE TRANSFERRED EXCEPT 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 OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

16

 

FIRST REGIONAL BANCORP

 

6% Convertible
Subordinated Debentures Due 2023

 

THIS DEBENTURE IS NOT A DEPOSIT AND IS NOT INSURED

BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

OR ANY GOVERNMENT AGENCY

 

	
  No. 

  	
   

  	
  $

  

 

FIRST REGIONAL BANCORP, a corporation duly
organized and existing under the laws of the State of California (herein called
the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
                              ,
or registered assigns, the principal sum of
                              
Dollars on October 30, 2023, and to pay interest thereon from October 30,
2003 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semi-annually on April 30 and October 30
in each year, commencing April 30, 2004, at the rate of 6% per annum,
until the principal hereof is paid or made available for payment.  The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the April 10 or
October 10 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. 
Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities not less than
10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any automated quotation
system or securities exchange on which the Securities may be quoted or listed,
and upon such notice as may be required by such automated quotation system or
exchange, all as more fully provided in said Indenture.  Payment of the principal of (and premium, if
any) and interest on this Security will be made at the office or agency of the
Company maintained for that purpose, in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that at the option of the Company  payment of interest may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register.

 

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

 

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

 

17

 

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

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRST REGIONAL BANCORP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
						

 

18

 

SECTION 203.                                                                    Form
of Reverse of Security.

 

This Security is one of a duly authorized
issue of Securities of the Company designated as its 6% Convertible
Subordinated Debentures Due 2023 (herein called the “Securities”), limited in
aggregate principal amount to $15,000,000, issued and to be issued under an
Indenture, dated as of October 30, 2003 (herein called the “Indenture”),
between the Company and Wells Fargo Bank, National Association, as Trustee
(herein called the “Trustee”, which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee, the
holders of Senior Indebtedness and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered.

 

Subject to and upon compliance with the
provisions of the Indenture, the Holder of this Security is entitled, at his
option, at any time on or before the close of business on October 30,
2023, or in case this Security or a portion hereof is called for redemption,
then in respect of this Security or such portion hereof until and including,
but (unless the Company defaults in making the payment due upon redemption) not
after, the close of business on the Redemption Date, to convert this Security (or
any portion of the principal amount hereof which is $1,000 or an integral
multiple thereof), at the principal amount hereof, or of such portion, into
fully paid and non-assessable shares (calculated as to each conversion to the
nearest 1/100 of a share) of Common Stock of the Company at a conversion price
equal to $27.50 aggregate principal amount of Securities for each share of
Common Stock (or at the current adjusted conversion price if an adjustment has
been made as provided in the Indenture) by surrender of this Security, duly
endorsed or assigned to the Company or in blank, to the Company at its office
or agency maintained for that purpose, accompanied by written notice to the
Company that the Holder hereof elects to convert this Security, or if less than
the entire principal amount hereof is to be converted, the portion hereof to be
converted, and, in case such surrender shall be made during the period from the
close of business on any Regular Record Date next preceding any Interest
Payment Date to the opening of business on such Interest Payment Date (unless
this Security or the portion thereof being converted has been called for
redemption on a Redemption Date within such period), also accompanied by
payment in New York Clearing House or other funds acceptable to the Company of
an amount equal to the interest payable on such Interest Payment Date on the
principal amount of this Security then being converted.  Subject to the aforesaid requirement for
payment and, in the case of a conversion after the Regular Record Date next
preceding any Interest Payment Date and on or before such Interest Payment
Date, to the right of the Holder of this Security (or any Predecessor Security)
of record at such Regular Record Date to receive an installment of interest (with
certain exceptions provided in the Indenture), no payment or adjustment is to
be made on conversion for interest accrued hereon or for dividends on the
Common Stock issued on conversion. No fractions of shares or scrip representing
fractions of shares will be issued on conversion, but instead of any fractional
interest the Company shall pay a cash adjustment as provided in the Indenture.
The conversion price is subject to adjustment as provided in the Indenture. In
addition, the Indenture provides that in case of certain consolidations or
mergers to which the Company is a party or the transfer of substantially all of
the assets of the Company, the Indenture shall be amended, without the consent
of any Holders of Securities, so that this Security, if then outstanding, will
be convertible thereafter, during the period this Security shall be convertible
as specified above, only into the

 

19

 

kind and
amount of securities, cash and other property receivable upon the
consolidation, merger or transfer by a holder of the number of shares of Common
Stock into which this Security might have been converted immediately prior to
such consolidation, merger or transfer (assuming such holder of Common Stock
failed to exercise any rights of election and received per share the kind and
amount received per share by a plurality of non-electing shares).

 

The Securities are subject to redemption upon
not less than 30 days’ notice by mail, at any time, as a whole or in part, at the
election of the Company, at the following Redemption Price (expressed as
percentages of the principal amount) if redeemed during the 12-month period
beginning October 30 of the year indicated:

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2006

  	
   

  	
  106.0

  	
  %

  

 

and thereafter at a Redemption Price equal to
100% of the principal amount, together in the case of any such redemption with
accrued interest to the Redemption Date; provided that interest installments
whose Stated Maturity is on or prior to such Redemption Date will be payable to
the Holders of such Securities, or one or more Predecessor Securities, of
record at the close of business on the relevant Record Dates referred to on the
face hereof, all as provided in the Indenture; and provided, further, that the
Securities may not be redeemed prior to October 30, 2006.  Notwithstanding the above, the Securities
are subject to redemption upon not less than 30 days’ notice by mail, at any
time prior to October 30, 2007, as a whole or in part, at the election of
the Company, at a Redemption Price equal to 100% of the principal amount,
together in the case of any such redemption with accrued interest to the
Redemption Date, if the average Closing Price of the Common Stock for at least
30 Consecutive Trading Days equals or exceeds 140% of the then effective
conversion price.

 

Any Securities called for redemption, unless
surrendered for conversion on or before the close of business on the Redemption
Date, are subject to purchase from the Holder of such Securities at the
Redemption Price by one or more investment bankers or other purchasers who may
agree with the Company to purchase such Securities and convert them into Common
Stock of the Company.

 

In the event of redemption or conversion of
this Security in part only, a new Security or Securities for the unredeemed or
unconverted portion hereof will be issued in the name of the Holder hereof upon
the cancellation hereof.

 

The indebtedness evidenced by this Security
is, to the extent provided in the Indenture, subordinate and subject in right
of payment to the prior payment in full of the principal of (and premium, if
any) and interest on all Senior Indebtedness, as defined in the Indenture, and
this Security is issued subject to the provisions of the Indenture with respect
thereto. Each Holder of this Security, by accepting the same, agrees that each
holder of Senior Indebtedness, whether created or acquired before or after the
issuance of the Securities, shall be deemed conclusively to have relied on such
provisions in acquiring and continuing to hold, or in continuing to hold, such
Senior Indebtedness. The Indenture also provides that if, upon the occurrence
of certain events of bankruptcy or insolvency relating to the Company, there
remains,

 

20

 

after giving
effect to such subordination provisions, any amount of cash, property or
securities available for payment or distribution in respect of Securities of
this series (as defined in the Indenture, “Excess Proceeds”), and if, at such
time, any Entitled Person (as defined in the Indenture) has not received
payment in full of all amounts due or to become due on or in respect of Other
Financial Obligations (as defined in the Indenture), then such Excess Proceeds
shall first be applied to pay or provide for the payment in full of such Other
Financial Obligations before any payment or distribution may be made in respect
of Securities of this series. This Security is also issued subject to the
provisions of the Indenture regarding payments to Entitled Persons in respect
of Other Financial Obligations. Each Holder of this Security, by accepting the
same, agrees to be bound by the provisions of the Indenture described herein
and authorizes and directs the Trustee to take such action on his behalf as may
be necessary or appropriate to acknowledge or effectuate the subordination of
this Security and payment of Excess Proceeds as provided in the Indenture and
appoints the Trustee his attorney-in-fact for any and all such purposes.

 

If an Event of Default shall occur and be
continuing, the principal of all the Securities may be declared due and payable
in the manner and with the effect provided in the Indenture.

 

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

 

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

 

As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Security is
registrable in the Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Company maintained for
that purpose, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or
transferees.

 

21

 

The Securities are issuable only in
registered form without coupons in denominations of $1,000 and any integral
multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, Securities are exchangeable for a like aggregate
principal amount of Securities of a different authorized denomination, as
requested by the Holder surrendering the same.

 

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

 

Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered
as the owner hereof for all purposes, whether or not this Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

 

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

 

22

 

[FORM OF CONVERSION NOTICE]

 

TO FIRST REGIONAL
BANCORP

 

The undersigned Holder of this Security
hereby irrevocably exercises the option to convert this Security or portion
hereof (which is $1,000 or an integral multiple thereof) below designated, into
shares of Common Stock of First Regional Bancorp in accordance with the terms
of the Indenture referred to in this Security, and directs that the shares
issuable and deliverable upon conversion, together with any check in payment
for fractional shares and any Securities representing any unconverted principal
amount hereof, be issued and delivered to the registered Holder hereof unless a
different name has been indicated below. If shares of Common Stock or
Securities are to be issued in the name of a Person other than the undersigned,
the undersigned will pay all transfer taxes payable with respect thereto. Any
amount required to be paid by the undersigned on account of interest
accompanies this Security.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fill in for registration of

  shares of Common Stock and

  Securities if to be issued

  otherwise than to the

  registered Holder. 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature(s) must be

  guaranteed by an Eligible

  Guarantor Institution with

  membership in an approved

  signature guarantee program

  pursuant to Rule 17Ad-15

  under the Securities

  Exchange Act of 1934.

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  
	
   

  
	
   

  
	
  Please print name and

  address (including zip

  code)

  
	
   

  	
   

  	
   

  
	
  SOCIAL SECURITY OR
  TAXPAYER

  IDENTIFICATION NUMBER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Portion of Security to be

  Converted (in an integral

  multiple of $1,000, if less

  than all):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
									

 

23

 

[FORM OF ASSIGNMENT]

 

For value received
                                                            
hereby sell(s), assign(s) and transfer(s) unto
                                                            
(please insert social security or other identifying number of assignee) the
within Security and hereby irrevocably constitutes and appoints                                                             
as attorney to transfer the said Security on the books of the Company, with
full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s) must be

  guaranteed by an Eligible

  Guarantor Institution with

  membership in an approved

  signature guarantee program

  pursuant to Rule 17Ad-15

  under the Securities

  Exchange Act of 1934.

  

 

NOTICE: The signature on the conversion
notice or the assignment must correspond with the name as written upon the face
of the Security in every particular without alteration or enlargement or any
change whatever.

 

SECTION 204.                                                                    Form
of Trustee’s Certificate of Authentication.

 

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

 

	
   

  	
  WELLS FARGO BANK,

  
	
   

  	
  NATIONAL ASSOCIATION,

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

24

 

ARTICLE THREE

The Securities

 

SECTION 301.                                                                    Title
and Terms.

 

The aggregate principal amount of Securities
which may be authenticated and delivered under this Indenture is limited to
$15,000,000, except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities pursuant to Sections 304, 305, 306, 906, 1108 or 1302.

 

The Securities shall be known and designated
as the “6% Convertible Subordinated Debentures Due 2023” of the Company.  Their Stated Maturity shall be
October 30, 2023, and they shall bear interest at the rate of 6% per
annum, from October 30, 2003 or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, as the case may be,
payable semi-annually on April 30 and October 30, commencing
April 30, 2004, until the principal thereof is paid or made available for
payment.

 

The principal of (and premium, if any) and
interest on the Securities shall be payable at the office or agency of the
Company maintained for such purpose; provided, however, that at the option of
the Company payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register.

 

The Securities shall be redeemable as
provided in Article Eleven.

 

The Securities shall be subordinated and
subject in right of payment to the prior payment of Senior Indebtedness as
provided in Article Twelve.

 

The Securities shall be convertible as
provided in Article Thirteen.

 

SECTION 302.                                                                    Denominations.

 

The Securities shall be issuable only in
registered form without coupons and only in denominations of $1,000 and any
integral multiple thereof.

 

SECTION 303.                                                                    Execution,
Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of
the Company by two authorized officers consisting of its Chairman of the Board,
its Vice Chairman of the Board, its President or one of its Vice Presidents.
The signature of any of these officers on the Securities may be manual or
facsimile.

 

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

 

25

 

At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities
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 such Company Order shall authenticate and deliver such
Securities as in this Indenture provided and not otherwise.

 

Each Security shall be dated the date of its
authentication.

 

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

 

SECTION 304.                                                                    Temporary
Securities.

 

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

 

If temporary Securities are issued, the
Company will cause definitive Securities to be prepared without unreasonable
delay. After the preparation of definitive Securities, the temporary Securities
shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to
Section 1002, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of authorized denominations. Until so
exchanged the temporary Securities shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities.

 

For purposes of this Section 304, each
Global Note shall be considered a Definitive Note.

 

SECTION 305.                                                                    Registration,
Registration of Transfer and Exchange.

 

The Company shall cause to be kept at the
Corporate Trust Office of the Trustee a register (the register maintained in
such office and in any other office or agency designated pursuant to
Section 1002 being herein sometimes collectively referred to as the
“Security Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Securities and of
transfers of Securities. The Trustee is hereby appointed “Security Registrar”
for the  purpose of registering
Securities and transfers of Securities as herein provided.

 

26

 

Upon surrender for registration of transfer
of any Security at an office or agency of the Company designated pursuant to
Section 1002 for such purpose, the Company shall execute, and the Trustee
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Securities of any authorized denominations and of
a like aggregate principal amount.

 

At the option of the Holder, Securities may
be exchanged for other Securities 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.

 

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

 

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

 

No service charge shall be made for any
registration of transfer or exchange of Securities, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1108 or
1302 not involving any transfer.

 

The Company shall not be required (i) to
issue, register the transfer of or exchange any Security during a period
beginning at the opening of business 15 days before the day of the mailing of a
notice of redemption of Securities selected for redemption under
Section 1104 and ending at the close of business on the day of such
mailing, or (ii) to register the transfer of or exchange any Security so
selected for redemption in whole or in part, except the unredeemed portion of
any Security being redeemed in part.

 

The provisions of Clauses (1), (2), (3), (4)
and (5) below shall apply only to Global Notes:

 

(1)                                  Each Global Note authenticated under
this Indenture shall be registered in the name of the Depositary designated for
such Global Note or a nominee thereof and delivered to such Depositary or a
nominee thereof or Custodian therefor, and each such Global Note shall
constitute a single Security for all purposes of this Indenture.

 

(2)                                  Notwithstanding any other provision
in this Indenture, no Global Note may be exchanged in whole or in part for
Securities registered, and no transfer of a Global Note in whole or in part may
be registered, in the name of any Person other than the Depositary for such
Global Note or a nominee thereof unless (A) such Depositary (i)

 

27

 

has
notified the Company that it is unwilling or unable to continue as Depositary
for such Global Note or (ii) has ceased to be a clearing agency registered
under the Exchange Act, or (B) there shall have occurred and be continuing an
Event of Default with respect to such Global Note.

 

(3)                                  Subject to Clause (2) above, any
exchange of a Global Note for other Securities may be made in whole or in part,
and all Securities issued in exchange for a Global Note or any portion thereof
shall be registered in such names as the Depositary for such Global Note shall
direct.

 

(4)                                  Every Security authenticated and
delivered upon registration of transfer of, or in exchange for or in lieu of, a
Global Note or any portion thereof, whether pursuant to this Article Three
or otherwise, shall be authenticated and delivered in the form of, and shall
be, a Global Note, unless such Security is registered in the name of a Person
other than the Depositary for such Global Note or a nominee thereof.

 

(5)                                  The Depositary or its nominee, as
registered owner of a Global Note, shall be the Holder of such Global Note for
all purposes under the Indenture and the Securities, and owners of beneficial
interests in a Global Note shall hold such interests pursuant to the Applicable
Procedures.  Accordingly, any such
owner’s beneficial interest in a Global Note will be shown only on, and the
transfer of such interest shall be effected only through, records maintained by
the Depositary or its nominee or its Agent Members and such owners of
beneficial interests in a Global Note will not be considered the owners or
holders thereof.

 

(a)                                  Transfer and Exchange of Global
Notes.  A Global Note may not be transferred except
as a whole by the Depositary to a nominee of the Depositary, by a nominee of
the Depositary to the Depositary or to another nominee of the Depositary, or by
the Depositary or any such nominee to a successor Depositary or a nominee of such
successor Depositary.  All Global Notes
will be exchanged by the Company for Definitive Notes if (i) the Company
delivers to the Trustee notice from the Depositary that (x) the Depositary
is unwilling or unable to continue to act as Depositary for the Global Notes
and the Company thereupon fails to appoint a successor Depositary within 90
days or (y) the Depositary is no longer a clearing agency registered under
the Exchange Act, (ii) the Company, in its sole discretion, determines
that the Global Notes (in whole but not in part) should be exchanged for
Definitive Notes and delivers a written notice to such effect to the Trustee or
(iii) upon request of the Trustee or Holders of a majority of the
aggregate principal amount of outstanding Notes if there shall have occurred
and be continuing a Default or Event of Default with respect to the Securities;
provided that in no event shall the Regulation S Temporary Global Note
be exchanged by the Company for Definitive Notes prior to (x) the expiration of
the Restricted Period and (y) the receipt by the Registrar of any certificates
determined by the Company to be required pursuant to Rule 903 under the
Securities Act.  Upon the occurrence of
any of the preceding events in (i), (ii) or (iii) above, Definitive Notes shall
be issued in such names as the Depositary shall instruct the Trustee.  Global Notes also may be exchanged or
replaced, in whole or in part, as provided in Sections 304 and 306.  Every Note authenticated and delivered in
exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to
this Section 305 or Sections 304 or 306, shall be authenticated and
delivered in the form of, and shall be, a Global Note.  A Global Note may not

 

28

 

be exchanged for another Note other than as
provided in this Section 305(a), however, beneficial interests in a Global
Note may be transferred and exchanged as provided in Section 305(b) or
(c).

 

(b)                                 Transfer and Exchange of Beneficial
Interests in the Global Notes.  The transfer
and exchange of beneficial interests in the Global Notes shall be effected
through the Depositary, in accordance with the provisions of this Indenture and
the Applicable Procedures.  Beneficial
interests in the Restricted Global Notes shall be subject to restrictions on
transfer comparable to those set forth herein to the extent required by the
Securities Act.  Transfers of beneficial
interests in the Global Notes also shall require compliance with either
subparagraph (1) or (2) below, as applicable, as well as one or more of
the other following subparagraphs, as applicable:

 

(1)                                  Transfer of Beneficial Interests in
the Same Global Note.  Beneficial interests in
any Restricted Global Note may be transferred to Persons who take delivery thereof
in the form of a beneficial interest in the same Restricted Global Note in
accordance with the transfer restrictions set forth in the Private Placement
Legend; provided, however, that prior to the expiration of the
Restricted Period transfers of beneficial interests in the Regulation S
Temporary Global Note may not be made to a U.S. Person or for the account or
benefit of a U.S. Person.  Beneficial
interests in any Unrestricted Global Note may be transferred to Persons who
take delivery thereof in the form of a beneficial interest in an Unrestricted
Global Note.  No written orders or
instructions shall be required to be delivered to the Registrar to effect the
transfers described in this Section 305(b)(1), but the Company or the
Trustee may request an Opinion of Counsel.

 

(2)                                  All Other Transfers and Exchanges of
Beneficial Interests in Global Notes (including for Definitive Notes). 
In connection with all transfers and exchanges of beneficial interests
that are not subject to Section 305(b)(1) above, the transferor of such
beneficial interest must deliver to the Registrar either (A) (1) an
order from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to credit or
cause to be credited a beneficial interest in another Global Note in an amount
equal to the beneficial interest to be transferred or exchanged and
(2) instructions given in accordance with the Applicable Procedures
containing information regarding the Participant account to be credited with
such increase or (B) (1) an order from a Participant or an Indirect
Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to cause to be issued a Definitive Note in an
amount equal to the beneficial interest to be transferred or exchanged and
(2) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Note shall be
registered to effect the transfer or exchange referred to in (B)(1) above; provided,
however, that prior to the expiration of the Restricted Period transfers
of beneficial interests in the Regulation S Temporary Global Note may not be
made to a U.S. Person or for the account or benefit of a U.S. Person. Upon
satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Global Notes contained in this Indenture and the Securities or
otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Note(s) pursuant to
Section 305(g).

 

29

 

(3)                                  Transfer of Beneficial Interests to
Another Restricted Global Note.  A beneficial
interest in any Restricted Global Note may be transferred to a Person who takes
delivery thereof in the form of a beneficial interest in another Restricted
Global Note if the transfer complies with the requirements of
Section 305(b)(2) above and the Registrar receives the following:

 

(A)                              if the transferee will take delivery
in the form of a beneficial interest in the Regulation S Temporary Global Note
or the Regulation S Global Note, then the transferor must deliver a certificate
in the form of Exhibit A hereto, including the certifications in item (3)(d)
thereof; or

 

(B)                                if the transferee will take delivery
in the form of a beneficial interest in the Regulation D Global Note, then the
transferor must deliver a certificate in the form of Exhibit A hereto,
including the certifications in item (3)(d) thereof.

 

(4)                                  Transfer and Exchange of Beneficial
Interests in a Restricted Global Note for Beneficial Interests in an
Unrestricted Global Note.  A beneficial
interest in any Restricted Global Note may be exchanged by any holder thereof
for a beneficial interest in an Unrestricted Global Note or transferred to a
Person who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note if the exchange or transfer complies with the
requirements of Section 305(b)(2) above and:

 

(A)                              such transfer is effected pursuant
to the Shelf Registration Statement in accordance with the Registration Rights
Agreement and a certificate to the effect set forth in Exhibit A hereto,
including the certifications in item (3)(c) thereof, is delivered by
the transferor; or

 

(B)                                the Registrar receives the
following:  (1) if the holder of
such beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for a beneficial interest in an Unrestricted Global Note, a
certificate from such holder in the form of Exhibit B hereto, including
the certifications in item (1)(a) thereof; or (2) if the holder of
such beneficial interest in a Restricted Global Note proposes to transfer such
beneficial interest to a Person who shall take delivery thereof in the form of
a beneficial interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit A hereto, including the certifications in
item (4) thereof; and, in each such case set forth in this
subparagraph (D), an Opinion of Counsel in form, and from legal counsel,
reasonably acceptable to the Registrar and the Company to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

 

If any such
transfer is effected pursuant to subparagraph (A) or (B) above at a time
when an Unrestricted Global Note has not yet been issued, the Company shall
issue and, upon receipt of an Authentication Order in accordance with
Section 303, the Trustee shall authenticate one or more Unrestricted
Global Notes in an aggregate principal amount equal to the aggregate principal
amount of beneficial interests transferred pursuant to subparagraph (A) or
(B) above.  Beneficial interests in an
Unrestricted Global Note cannot be exchanged for, or

 

30

 

transferred to Persons who take delivery thereof in the form of, a beneficial
interest in a Restricted Global Note.

 

(c)                                  Transfer and Exchange of Beneficial
Interests for Definitive Notes.  Transfer and
exchange of beneficial interests in the Global Notes for Definitive Notes shall
be made subject to compliance with this Section 305(c), and the requesting
Holder shall provide any certifications, documents and information, as
applicable, required pursuant to the following provisions of this
Section 305(c).  Upon receipt of
such applicable documentation, the Trustee shall cause the aggregate principal
amount of the applicable Restricted Global Note or Unrestricted Global Note, as
applicable, to be reduced accordingly pursuant to Section 305(g), and the
Company shall execute and, upon receipt of an Authentication Order pursuant to
Section 303, the Trustee shall authenticate and deliver to the Person
designated in the instructions a Restricted Definitive Note or an Unrestricted
Definitive Note, as applicable, in the appropriate principal amount.  Any Definitive Note issued in exchange for a
beneficial interest in a Global Note pursuant to this Section 305(c) shall
be registered in such name or names and in such authorized denomination or
denominations as the Holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall
deliver such Definitive Notes to the Persons in whose names such Definitive
Notes are so registered.

 

(1)                                  Beneficial Interests in Restricted
Global Notes to Restricted Definitive Notes.  If any
holder of a beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Restricted Definitive Note or to
transfer such beneficial interest to a Person who takes delivery thereof in the
form of a Restricted Definitive Note, then, upon receipt by the Registrar of
the following documentation:

 

(A)                              if the holder of such beneficial
interest in a Restricted Global Note proposes to exchange such beneficial
interest for a Restricted Definitive Note, a certificate from such holder in
the form of Exhibit B hereto, including the certifications in item (2)(a)
thereof;

 

(B)                                if such beneficial interest is being
transferred to a QIB in accordance with Rule 144A under the Securities
Act, a certificate to the effect set forth in Exhibit A hereto, including the
certifications in item (1) thereof;

 

(C)                                if such beneficial interest is being
transferred to a Non-U.S. Person in an offshore transaction in accordance with
Rule 903 or Rule 904 under the Securities Act, a certificate to the effect set
forth in Exhibit A hereto, including the certifications in item (2)(a) thereof;

 

(D)                               if such beneficial interest is being
transferred to an Institutional Accredited Investor in reliance on an exemption
from the registration requirements of the Securities Act other than those
listed in subparagraph (B) above, a certificate to the effect set forth in
Exhibit A hereto, including the certifications, certificates and Opinion of
Counsel required by item (3)(d) thereof, if applicable;

 

31

 

(E)                                 if such beneficial interest is being
transferred to the Company or any of its Subsidiaries, a certificate to the
effect set forth in Exhibit A hereto, including the certifications in
item (3)(b) thereof; or

 

(F)                                 if such beneficial interest is being
transferred pursuant to an effective registration statement under the
Securities Act, a certificate to the effect set forth in Exhibit A hereto,
including the certifications in item 3(c) thereof,

 

Any Restricted
Definitive Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 305(c)(1) shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer contained
therein.

 

(2)                                  Beneficial Interests in Regulation S
Temporary Global Notes to Definitive Notes.  A holder of
a beneficial interest in the Regulation S Temporary Global Note may not (A)
exchange such beneficial interest for a Definitive Note prior to (x) the
expiration of the Restricted Period and (y) the receipt by the Registrar of any
certificates determined by the Company to be required pursuant to Rule
903(c)(3)(B) under the Securities Act or (B) transfer to a Person who takes
delivery thereof in the form of a Definitive Note prior to the conditions set
forth in clause (A) above or unless the transfer is pursuant to an exemption
from the registration requirements of the Securities Act other than Rule 903 or
Rule 904.

 

(3)                                  Beneficial Interests in Restricted
Global Notes to Unrestricted Definitive Notes. 
A holder of a beneficial interest in a Restricted Global Note may
exchange such beneficial interest for an Unrestricted Definitive Note or may
transfer such beneficial interest to a Person who takes delivery thereof in the
form of an Unrestricted Definitive Note only if:

 

(A)                              such transfer is effected pursuant
to the Shelf Registration Statement in accordance with the Registration Rights
Agreement and a certificate to the effect set forth in Exhibit A hereto,
including the certifications in item (3)(c) thereof, is delivered by the
transferor; or

 

(B)                                the Registrar receives the
following:  (1) if the holder of
such beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for an Unrestricted Definitive Note, a certificate from
such holder in the form of Exhibit B hereto, including the certifications in
item (1)(b) thereof; or (2) if the holder of such beneficial interest
in a Restricted Global Note proposes to transfer such beneficial interest to a
Person who shall take delivery thereof in the form of an Unrestricted
Definitive Note, a certificate from such holder in the form of Exhibit A
hereto, including the certifications in item (4) thereof; and, in each
such case set forth in this subparagraph (D), an Opinion of Counsel in
form, and from legal counsel, reasonably acceptable to the Registrar and the
Company to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in
the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act.

 

32

 

Beneficial
interests in an Unrestricted Global Note cannot be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a Restricted
Definitive Note.

 

(4)                                  Beneficial Interests in Unrestricted
Global Notes to Unrestricted Definitive Notes. 
If any holder of a beneficial interest in an Unrestricted Global Note
proposes to exchange such beneficial interest for an Unrestricted Definitive
Note or to transfer such beneficial interest to a Person who takes delivery
thereof in the form of an Unrestricted Definitive Note, then such holder shall
satisfy the applicable conditions set forth in Section 305(b)(2).  Any Unrestricted Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 305(c)(4)
shall not bear the Private Placement Legend.

 

(d)                                 Transfer and Exchange of Definitive
Notes for Beneficial Interests.  Transfer and
exchange of Definitive Notes for beneficial interests in the Global Notes shall
be made subject to compliance with this Section 305(d), and the requesting
Holder shall provide any certifications, documents and information, as
applicable, required pursuant to the following provisions of this
Section 305(d).  Upon receipt from
such Holder of such applicable documentation and the surrender to the Registrar
of the Definitive Notes duly endorsed or accompanied by a written instruction
of transfer in form satisfactory to the Registrar, duly executed by such Holder
or by its attorney, duly authorized in writing, the Registrar shall register
the transfer or exchange of the Definitive Notes.  The Trustee shall cancel such Definitive Notes so surrendered and
cause the aggregate principal amount of the applicable Restricted Global Note
or Unrestricted Global Note, as applicable, to be increased accordingly
pursuant to Section 305(g).

 

(1)                                  Restricted Definitive Notes to
Beneficial Interests in Restricted Global Notes. 
If any Holder of a Restricted Definitive Note proposes to exchange such
Note for a beneficial interest in a Restricted Global Note or to transfer such
Restricted Definitive Notes to a Person who takes delivery thereof in the form
of a beneficial interest in a Restricted Global Note, then, upon receipt by the
Registrar of the following documentation:

 

(A)                              if the Holder of such Restricted
Definitive Note proposes to exchange such Note for a beneficial interest in a
Restricted Global Note, a certificate from such Holder in the form of Exhibit B
hereto, including the certifications in item (2)(b) thereof;

 

(B)                                if such Restricted Definitive Note
is being transferred to a QIB in accordance with Rule 144A under the
Securities Act, a certificate to the effect set forth in Exhibit A hereto,
including the certifications in item (1) thereof;

 

(C)                                if such Restricted Definitive Note
is being transferred to a Non-U.S. Person in an offshore transaction in
accordance with Rule 903 or Rule 904 under the Securities Act, a certificate to
the effect set forth in Exhibit A hereto, including the certifications in item
(2) thereof; or

 

33

 

(D)                               if such Restricted Definitive Note
is being transferred to an Institutional Accredited Investor in accordance with
Regulation D under the Securities Act, a certificate to the effect set forth in
Exhibit A hereto, including the certifications in item (3)(d) thereof;

 

(E)                                 if such Restricted Definitive Note
is being transferred pursuant to an effective registration statement under the
Securities Act, a certificate to the effect set forth in Exhibit A hereto,
including the certifications in item 3(c) thereof;

 

the Trustee
shall cancel the Restricted Definitive Note and increase or cause to be
increased the aggregate principal amount of, in the case of clause (A)
above, the appropriate Restricted Global Note, in the case of clause (C)
above, the Regulation S Global Note, in the case of clause (D) above, the
Regulation D Global Note.

 

(2)                                  Restricted Definitive Notes to
Beneficial Interests in Unrestricted Global Notes. 
A Holder of a Restricted Definitive Note may exchange such Note for a
beneficial interest in an Unrestricted Global Note or transfer such Restricted
Definitive Note to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note only if:

 

(A)                              such transfer is effected pursuant
to the Shelf Registration Statement in accordance with the Registration Rights
Agreement and a certificate to the effect set forth in Exhibit A hereto,
including the certifications in item (3)(c) thereof, is delivered by the
transferor; or

 

(B)                                the Registrar receives the
following:  (1) if the Holder of
such Restricted Definitive Notes proposes to exchange such Notes for a
beneficial interest in the Unrestricted Global Note, a certificate from such
Holder in the form of Exhibit B hereto, including the certifications in
item (1)(c) thereof; or (2) if the Holder of such Restricted Definitive
Notes proposes to transfer such Notes to a Person who shall take delivery
thereof in the form of a beneficial interest in the Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit A hereto, including the
certifications in item (4) thereof; and, in each such case set forth in
this subparagraph (B), an Opinion of Counsel in form, and from legal
counsel, reasonably acceptable to the Registrar and the Company to the effect
that such exchange or transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the
Securities Act.

 

(3)                                  Unrestricted Definitive Notes to
Beneficial Interests in Unrestricted Global Notes. 
A Holder of an Unrestricted Definitive Note may exchange such Note for a
beneficial interest in an Unrestricted Global Note or transfer such Definitive
Notes to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note at any time.

 

If any such
exchange or transfer from a Definitive Note to a beneficial interest is
effected pursuant to subparagraphs (2)(A), (2)(B) or (3) of this
Section 305(d) at a time when an

 

34

 

Unrestricted
Global Note has not yet been issued, the Company shall issue and, upon receipt
of an Authentication Order in accordance with Section 303, the Trustee
shall authenticate one or more Unrestricted Global Notes in an aggregate
principal amount equal to the principal amount of Definitive Notes so
transferred.

 

(e)                                  Transfer and Exchange of Definitive
Notes for Definitive Notes.  Upon request
by a Holder of Definitive Notes and such Holder’s compliance with the
provisions of this Section 305(e), the Registrar shall register the
transfer or exchange of Definitive Notes. 
Prior to such registration of transfer or exchange, the requesting
Holder shall present or surrender to the Registrar the Definitive Notes duly
endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by its attorney,
duly authorized in writing.  The Trustee
shall cancel any such Definitive Notes so surrendered, and the Company shall
execute and, upon receipt of an Authentication Order pursuant to
Section 303, the Trustee shall authenticate and deliver to the Person
designated in the instructions a Restricted Definitive Note or an Unrestricted
Definitive Note, as applicable, in the appropriate principal amount.  Any Definitive Note issued pursuant to this
Section 305(e) shall be registered in such name or names and in such
authorized denomination or denominations as the Holder of such beneficial
interest shall instruct the Registrar through instructions from the Depositary
and the Participant or Indirect Participant. 
The Trustee shall deliver such Definitive Notes to the Persons in whose
names such Definitive Notes are so registered. 
In addition, the requesting Holder shall provide any additional certifications,
documents and information, as applicable, required pursuant to the following
provisions of this Section 305(e).

 

(1)                                  Restricted Definitive Notes to
Restricted Definitive Notes.  Any
Restricted Definitive Note may be transferred to and registered in the name of
Persons who take delivery thereof in the form of a Restricted Definitive Note
if the Registrar receives the following:

 

(A)                              if the transfer will be made to a
QIB pursuant to Rule 144A under the Securities Act, then the transferor
must deliver a certificate in the form of Exhibit A hereto, including the
certifications in item (1) thereof;

 

(B)                                if the transfer will be made
pursuant to Rule 903 or Rule 904 under the Securities Act, then the transferor
must deliver a certificate in the form of Exhibit A hereto, including the
certifications in item (2) thereof;

 

(C)                                if such beneficial interest is being
transferred to an Institutional Accredited Investor in reliance on an exemption
from the registration requirements of the Securities Act other than those
listed in subparagraphs (A) and (B) above, then the transferor must
deliver a certificate to the effect set forth in Exhibit A hereto, including
the certifications, certificates and Opinion of Counsel required by
item (3)(d) thereof, if applicable; or

 

(D)                               if such beneficial interest is being
transferred to the Company or any of its Subsidiaries, a certificate to the
effect set forth in Exhibit A hereto, including the certifications in
item (3)(b) thereof, must be delivered by the transferor.

 

35

 

(2)                                  Restricted Definitive Notes to
Unrestricted Definitive Notes.  Any
Restricted Definitive Note may be exchanged by the Holder thereof for an
Unrestricted Definitive Note or transferred to a Person or Persons who take
delivery thereof in the form of an Unrestricted Definitive Note if:

 

(A)                              any such transfer is effected
pursuant to the Shelf Registration Statement in accordance with the
Registration Rights Agreement and a certificate to the effect set forth in Exhibit
A hereto, including the certifications in item (3)(c) thereof, is
delivered by the transferor; or

 

(B)                                the Registrar receives the
following:  (1) if the Holder of
such Restricted Definitive Notes proposes to exchange such Notes for an
Unrestricted Definitive Note, a certificate from such Holder in the form of
Exhibit B hereto, including the certifications in
item (1)(d) thereof; or (2) if the Holder of such Restricted
Definitive Notes proposes to transfer such Notes to a Person who shall take
delivery thereof in the form of an Unrestricted Definitive Note, a certificate
from such Holder in the form of Exhibit A hereto, including the certifications
in item (4) thereof; and, in each such case set forth in this
subparagraph (B), an Opinion of Counsel in form, and from legal counsel,
reasonably acceptable to the Registrar and the Company to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

 

(3)                                  Unrestricted Definitive Notes to
Unrestricted Definitive Notes.  A Holder of
Unrestricted Definitive Notes may transfer such Notes to a Person who takes
delivery thereof in the form of an Unrestricted Definitive Note.  Upon receipt of a request to register such a
transfer, the Registrar shall register the Unrestricted Definitive Notes
pursuant to the instructions from the Holder thereof.

 

(f)                                    Legends. 
The following legends shall appear on the face of all Global Notes and
Definitive Notes issued under this Indenture unless specifically stated
otherwise in the applicable provisions of this Indenture.

 

(1)                                  Private Placement Legend.

 

(A)                              Except as permitted by subparagraph (B)
below, each Global Note and each Definitive Note (and all Notes issued in
exchange therefor or substitution thereof) shall bear the legend in
substantially the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, REGISTRATION. THE HOLDER OF THIS SECURITY BY ITS

 

36

 

ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS
SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS (OR SUCH OTHER PERIOD THAT
MAY HEREAFTER BE PROVIDED UNDER RULE 144(k) UNDER THE SECURITIES ACT AS
PERMITTING RESALES OF RESTRICTED SECURITIES BY NON-AFFILIATES WITHOUT
RESTRICTION) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST
DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) (THE “RESALE RESTRICTION
TERMINATION DATE”) ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR
SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A UNDER THE SECURITIES ACT, (D) OUTSIDE OF THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1),
(2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS
SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
“ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR
OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND
THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSE (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE
FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS
SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE AND IN
EACH CASE IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF ANY U.S. STATE OR
ANY OTHER APPLICABLE JURISDICTION.

 

(B)                                Notwithstanding the foregoing, any
Global Note or Definitive Note issued pursuant to subparagraphs (b)(4), (c)(2),
(c)(3), (d)(2), (d)(3), (e)(2) or (e)(3) to this Section 305 (and all
Notes issued in exchange therefor or substitution thereof) shall not bear the
Private Placement Legend.

 

37

 

(2)                                  Global Note Legend. 
To the extent required by the Depositary, each Global Note shall bear
legends in substantially the following forms:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 305 OF THE INDENTURE,
(II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT
TO SECTION 305(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE
MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
SECTION 309 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.”

 

“UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR TO ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR
ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.  UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE 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.”

 

(3)                                  Regulation S Temporary Global Note
Legend.  The Regulation S Temporary Global Note shall
bear a legend in substantially the following form:

 

“THE RIGHTS ATTACHING TO THIS REGULATION S
TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE
FOR CERTIFICATED SECURITIES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED
HEREIN).  NEITHER THE HOLDER NOR THE
BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON.”

 

38

 

(g)                                 Cancellation and/or Adjustment of
Global Notes.  At such time as all beneficial interests in
a particular Global Note have been exchanged for Definitive Notes or a
particular Global Note has been redeemed, repurchased or cancelled in whole and
not in part, each such Global Note shall be returned to or retained and
cancelled by the Trustee in accordance with Section 309.  At any time prior to such cancellation, if
any beneficial interest in a Global Note is exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes
represented by such Global Note shall be reduced accordingly and an endorsement
may be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such reduction; and if the beneficial
interest is being exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another Global Note,
such other Global Note shall be increased accordingly and an endorsement may be
made on such Global Note by the Trustee or by the Depositary at the direction
of the Trustee to reflect such increase.

 

(h)                                 General Provisions Relating to
Transfers and Exchanges.

 

(1)                                  To permit registrations of transfers
and exchanges, the Company shall execute and the Trustee shall authenticate
Global Notes and Definitive Notes upon receipt of an Authentication Order.

 

(2)                                  No service charge shall be made to a
holder of a beneficial interest in a Global Note or to a Holder of a Definitive
Note for any registration of transfer or exchange, but the Company may require
payment of a sum sufficient to cover any transfer tax or similar governmental
charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to
Sections 304, 1108, 1311 and Article Eight).

 

(3)                                  The Registrar shall not be required
to register the transfer of or exchange any Security selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

 

(4)                                  All Global Notes and Definitive
Notes issued upon any registration of transfer or exchange of Global Notes or
Definitive Notes shall be the valid obligations of the Company, evidencing the
same Indebtedness, and entitled to the same benefits under this Indenture, as
the Global Notes or Definitive Notes surrendered upon such registration of
transfer or exchange.

 

(5)                                  The Company shall not be required
(A) to issue, to register the transfer of or to exchange any Securities during
a period beginning at the opening of business 15 days before the day of any
selection of Notes for redemption under Article Eleven and ending at the
close of business on the day of selection, (B) to register the transfer of or
to exchange any Security so selected for redemption in whole or in part, except
the unredeemed portion of any Security being redeemed in part or (C) to
register the transfer of or to exchange a Note between an Interest Record Date
and the next succeeding Interest Payment Date.

 

39

 

(6)                                  Prior to due presentment for the
registration of a transfer of any Security, the Trustee, any Agent and the
Company may deem and treat the Person in whose name any Security is registered
as the absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and none of
the Trustee, any Agent or the Company shall be affected by notice to the
contrary.

 

(7)                                  The Trustee shall authenticate
Global Notes and Definitive Notes in accordance with the provisions of
Section 303.

 

(8)                                  All certifications, certificates and
Opinions of Counsel required to be submitted to the Registrar pursuant to this
Section 305 to effect a registration of transfer or exchange may be
submitted by facsimile.

 

Notwithstanding anything herein to the contrary, as to any certifications
and certificates delivered to the Registrar pursuant to this Section 305,
the Registrar’s duties shall be limited to confirming that any such
certifications and certificates delivered to it are in the form of
Exhibits A and B attached hereto.  The Registrar shall not be responsible for confirming the truth or
accuracy of representations made in any such certifications or certificates.

 

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 like tenor and principal amount
and bearing a number not contemporaneously outstanding.

 

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

 

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

 

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

 

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

 

40

 

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

 

SECTION 307.                                                                    Payment
of Interest; Interest Rights Preserved.

 

Interest on any Security which is payable,
and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.

 

Any interest on any Security 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
(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 and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this Clause provided.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment.  The
Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first-class postage prepaid, to each Holder at his address as it
appears in the Security Register, not less than 10 days prior to such Special
Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so mailed, such Defaulted Interest
shall be paid to the Persons in whose names the Securities (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 in any other lawful manner not inconsistent with the
requirements of any automated quotation system or securities exchange on which
the Securities may be quoted or listed, and upon such notice as may be required
by such automated quotation system or securities 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.

 

41

 

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

 

In the case of any Security which is
converted after any Regular Record Date and on or prior to the next succeeding
Interest Payment Date (other than any Security whose Maturity is prior to such
Interest Payment Date), interest whose Stated Maturity is on such Interest
Payment Date shall be payable on such Interest Payment Date notwithstanding
such conversion, and such interest (whether or not punctually paid or duly
provided for) shall be paid  to the Person
in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on such Regular Record Date. Except as
otherwise expressly provided in the immediately preceding sentence, in the case
of any Security which is converted, interest whose Stated Maturity is after the
date of conversion of such Security shall not be payable.

 

SECTION 308.                                                                    Persons
Deemed Owners.

 

Prior to due presentment of a Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name such Security is registered
as the owner of such Security for the purpose of receiving payment of principal
of (and premium, if any) and (subject to Section 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.

 

SECTION 309.                                                                    Cancellation.

 

All Securities surrendered for payment,
redemption, registration of transfer or exchange or conversion shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. The Company may at any time deliver to
the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner
whatsoever, and all Securities so delivered shall be promptly cancelled by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities cancelled as provided in this Section, except as expressly permitted
by this Indenture. All cancelled Securities held by the Trustee shall be
disposed of as directed by a Company Order.

 

SECTION 310.                                                                    Computation
of Interest.

 

Interest on the Securities shall be computed
on the basis of a 360-day year of twelve 30-day months.

 

42

 

ARTICLE FOUR

Satisfaction and Discharge

 

SECTION 401.                                                                    Satisfaction
and Discharge of Indenture.

 

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

 

(1)                                  either

 

(A)                              all Securities theretofore
authenticated and delivered (other than (i) Securities which have been
destroyed, lost or stolen and which have been replaced or paid as provided in
Section 306 and (ii) Securities for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as provided in
Section 1003) have been delivered to the Trustee for cancellation; or

 

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

 

(i)                                     have become due
and payable, or

 

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

 

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

 

and the Company, in the case of (i), (ii) or
(iii) above, has deposited or caused to be deposited with the Trustee as trust
funds in trust for the purpose an amount sufficient to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal (and 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 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 614 and, if money shall have been deposited with the
Trustee pursuant to

 

43

 

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. All moneys deposited with the
Trustee pursuant to Section 401 (and held by it or any Paying Agent) for
the payment of Securities subsequently converted shall be returned to the
Company upon Company Request.

 

ARTICLE FIVE

Remedies

 

SECTION 501.                                                                    Events
of Default.

 

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

 

(1)                                  the entry by a court having
jurisdiction in the premises of (A) a decree or order for relief in respect of
the Company in an involuntary case or proceeding under any applicable federal
or state bankruptcy, insolvency, reorganization or other similar law or (B) a
decree or order appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of
substantially all of its assets (other than the appointment of a conservator
with respect to the Bank or any other depository institution Subsidiary of the
Company insured by the Federal Deposit Insurance Corporation or any successor
agency), or ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such other decree or
order unstayed and in effect for a period of 60 consecutive days; or

 

(2)                                  the commencement by the Company of a
voluntary case or proceeding under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law, or the consent by it to the
filing of a decree or order for relief in respect of the Company in an
involuntary case or proceeding under any applicable federal or state
bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against it, or
the filing by it of a petition or answer or consent seeking reorganization or
relief under any applicable federal or state law, or the consent by it to
filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other

 

44

 

similar
official of the Company or substantially all of its assets (other than the
appointment of a conservator with respect to the Bank or any other depository
institution Subsidiary of the Company insured by the Federal Deposit Insurance
Corporation or any successor agency), or the making by it of an assignment for
the benefit of creditors.

 

SECTION 502.                                                                    Acceleration
of Maturity; Rescission and Annulment.

 

If an Event of Default occurs and is
continuing, then in every such case the Trustee or the Holders of not less than
25% in principal amount of the Outstanding Securities may declare the principal
amount of all the Securities 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 shall become immediately due and
payable, except that no such declaration shall be required upon the occurrence
of an Event of Default specified in Section 501(2).

 

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

 

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

 

(A)                              all overdue interest on all
Securities,

 

(B)                                the principal of (and premium, if
any, on) any Securities which have become due otherwise than by such
declaration of acceleration and interest thereon at the rate borne by the Securities,

 

(C)                                to the extent that payment of such
interest is lawful, interest upon overdue interest at the rate borne by the
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 have been
cured or waived as provided in Section 513.

 

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

 

45

 

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 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,
or

 

(3)                                  there shall occur the entry by a
court having jurisdiction in the premises of (A) a decree or order for relief
in respect of any Major Depository Institution Subsidiary in an involuntary
case or proceeding under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order appointing
a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of any Major Depository Institution Subsidiary or of any
substantial part of its property, or ordering the winding up or liquidation of
its affairs, and the continuance of any such decree or order for relief or any
such other decree or order unstayed and in effect for a period of 60
consecutive days, or

 

(4)                                  there shall occur the commencement
by any Major Depository Institution Subsidiary of a voluntary case or
proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or the consent by it to the filing of such
petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official of
the any Major Depository Institution Subsidiary or of any substantial part of
its property, or the making by it of an assignment for the benefit of
creditors, or the admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by the Company
or any Major Depository Institution Subsidiary in furtherance of any such
action;

 

the Company will, upon demand of the Trustee,
pay to it, for the benefit of the Holders of such Securities ((in the case of
an event referred to in subsections 503(1) and 503(2) above) or of all the
Securities (in the case of an event referred to in subsections 503(3) and
503(4) above)), the whole amount then due and payable on such Securities for
principal (and premium, if any) and interest, interest on any overdue principal
(and premium, if any) and on any overdue interest, at the rate borne by the
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 and as trustee of an
express trust, may institute a judicial proceeding for the 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
Security or 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 Security or Securities, wherever situated.

 

46

 

“Default” means any one of the following
events (whatever the reason for such Default and whether it shall be occasioned
by the provisions of Article Twelve or 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 or any administrative or
governmental body):

 

(A)                              an Event of Default specified in
Section 501; or

 

(B)                                the events referred to in
subsections 503(1) through (4) above; or

 

(C)                                default in performance, or breach,
of any covenant or warranty of the Company in this Indenture or any Security
(other than a covenant or warranty a default in whose performance or whose
breach is elsewhere in this Section specifically dealt with), and continuance
of such default or breach for a period of 60 days after there has been given,
by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of
Default” hereunder; or

 

(D)                               a default under any bond, debenture,
note or other evidence of indebtedness for money borrowed by the Company or
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any indebtedness for money borrowed
by the Company (including this Indenture) or any Major Depository Institution
Subsidiary, whether such indebtedness now exists or shall hereafter be created,
which default shall have resulted (i) in a failure to pay an aggregate
principal amount exceeding $500,000 of such debt at the later of final maturity
or upon the expiration of any applicable period of grace with respect to such
principal amount, or (ii) in such indebtedness in an aggregate principal amount
exceeding $500,000 becoming or being declared due and payable prior to the date
on which it would otherwise have become due and payable, without such
indebtedness having been discharged, or such acceleration having been rescinded
or annulled, within a period of 30 days after there shall have been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities a written notice specifying such default and requiring
the Company to cause such indebtedness to be discharged or cause such
acceleration to be rescinded or annulled and stating that such notice is a
“Notice of Default” hereunder; provided, however, that, subject to the
provisions of Sections 601 and 602,  the
Trustee shall not be deemed to have knowledge of such default unless either (A)

 

47

 

a
Responsible Officer of the Trustee shall have actual knowledge of such default
or (B) the Trustee shall have received written notice thereof from the Company,
from any Holder, from the holder of any such indebtedness or from the trustee
under any such mortgage, indenture or other instrument; and provided, further,  that any such event of default shall not
be deemed to have occurred if and so long as the Company shall contest the
validity thereof in good faith by appropriate proceedings.

 

If a Default occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the
rights of the Holders 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 or interest)
shall be entitled and empowered, by intervention in such proceeding or
otherwise,

 

(1)                                  to file and prove a claim for the
whole amount of principal (and premium, if any) and interest, if any, 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

 

(2)                                  to collect and receive 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.

 

No provision of this Indenture shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt
on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder

 

48

 

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 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.

 

Subject to Article Twelve, any money
collected by the Trustee pursuant to this Article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal (or premium, if any) 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;
and

 

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.

 

SECTION 507.                                                                    Limitation
on Suits.

 

No Holder of any Security 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 Default;

 

(2)                                  the Holders of not less than 25% in
principal amount of the 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

 

49

 

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

 

it being understood and intended that no one
or more 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, or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture,
except in the manner herein provided and for the equal and ratable benefit of
all the Holders.

 

SECTION 508.                                                                    Unconditional
Right of Holders to Receive Principal, Premium and Interest and to Convert.

 

Notwithstanding any other provision in this
Indenture, the Holder of any Security shall have the right, which is absolute
and unconditional, to receive payment of the principal of (and premium, if any)
and (subject to Section 307) interest on such Security on the respective
Stated Maturities expressed in such Security (or, in the case of redemption, on
the Redemption Date) and to convert such Security in accordance with
Article Thirteen and to institute suit for the enforcement of any such
payment and right to convert, 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 Security to exercise any right or remedy accruing upon any Default
shall impair any such right or remedy or constitute a waiver of any such
Default or an acquiescence therein. Every right and remedy given by this
Article or by law to the Trustee or to the Holders may be exercised from
time to

 

50

 

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.

 

The Holders of a majority in principal amount
of the 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, provided that

 

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

 

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

 

SECTION 513.                                                                    Waiver
of Past Defaults.

 

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

 

(1)                                  in 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 affected.

 

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

 

SECTION 514.                                                                    Undertaking
for Costs.

 

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

 

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,

 

51

 

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.

 

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

 

SECTION 602.                                                                    Notice
of Defaults.

 

Within 90 days after the occurrence of any
default hereunder known to the Trustee, the Trustee shall transmit by mail to
all Holders of Securities, as their names and addresses appear in the Security
Register, 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) or
interest on any Security, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interest of the
Holders of Securities; and provided, further, that in the case of any default
of the character specified in Section 503(C), no such notice to Holders
shall be given until at least 30 days after the occurrence thereof.  For the purpose of this Section, the term
“default” means any event which is, or after notice or lapse of time or both
would become, a Default.

 

SECTION 603.                                                                    Certain
Rights of Trustee.

 

Subject to the provisions of
Section 601:

 

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

 

52

 

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

 

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

 

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

 

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

 

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

 

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

 

SECTION 604.                                                                    Not
Responsible for Recitals or Issuance of Securities.

 

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

 

53

 

SECTION 605.                                                                    May Hold
Securities.

 

The Trustee, any Authenticating Agent, any
Paying Agent, any Security Registrar or any other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee of Securities
and, subject to Sections 608 and 613, 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,
including reasonable default fees of the Trustee upon the occurrence of an
Event or Default (which compensation shall not be limited by any provision of
law in regard to the compensation of a trustee of an express trust);

 

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

 

(3)                                  to indemnify the Trustee for, and to
hold it harmless against, any loss, liability or expense incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of this trust, 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.

 

As security for the performance of the
obligations of the Company under this Section, the Trustee shall have a lien
prior to the Securities upon all property and funds held or collected by the
Trustee as such, except for funds held in trust for the benefit of the Holders
of Securities.

 

SECTION 608.                                                                    Disqualification;
Conflicting Interests.

 

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

 

54

 

SECTION 609.                                                                    Corporate
Trustee Required; Eligibility.

 

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

 

SECTION 610.                                                                    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 under Section 611.

 

(b)                                 The Trustee may resign at any time
by giving written notice thereof to the Company. If an instrument of acceptance
by a successor Trustee 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.

 

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

 

(d)                                 If at any time:

 

(1)                                  the Trustee shall fail to comply
with Section 608 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 609 and shall fail to resign after written request
therefor by the Company or by any such Holder, or

 

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

 

then, in any
such case, (i) the Company by a Board Resolution may remove the Trustee, or
(ii) subject to Section 514, 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 and the appointment of a successor Trustee.

 

55

 

(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, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a successor
Trustee shall be appointed by Act of the Holders of a majority in principal
amount of the Outstanding Securities 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 and supersede the
successor Trustee appointed by the Company. If no successor Trustee 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 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.

 

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

 

SECTION 611.                                                                    Acceptance
of Appointment by Successor.

 

Every successor Trustee appointed hereunder
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
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. Upon request of
any such successor Trustee, the Company shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor Trustee
all such rights, powers and trusts.

 

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 612.                                                                    Merger,
Conversion, Consolidation or Succession to Business. 

 

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

 

56

 

Trustee may
adopt such authentication and deliver the Securities so authenticated with the
same effect as if such successor Trustee had itself authenticated such
Securities.

 

SECTION 613.                                                                    Preferential
Collection of Claims Against Company. 

 

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

 

SECTION 614.                                                                    Appointment
of Authenticating Agent. 

 

The Trustee may appoint an Authenticating
Agent or Agents which shall be authorized to act on behalf of the Trustee to
authenticate Securities issued upon original issue and upon exchange,
registration of transfer, partial conversion or partial redemption or pursuant
to Section 306, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes
as if authenticated by the Trustee hereunder. Wherever reference is made in
this Indenture to the authentication and delivery of Securities by the Trustee
or the Trustee’s certificate of authentication, such reference shall be deemed
to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any state
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by federal or state
authority. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

 

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

 

An Authenticating Agent may resign at any
time by giving written notice thereof to the Trustee and to the Company. The
Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or in
case at any time such Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, the Trustee may appoint a
successor Authenticating Agent which shall be

 

57

 

acceptable to
the Company and shall mail written notice of such appointment by first-class
mail, postage prepaid, to all Holders as their names and addresses appear in
the Security Register. Any successor Authenticating Agent upon acceptance of
its appointment hereunder shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

 

The 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 is made pursuant to this
Section, the Securities may have endorsed thereon, in addition to the Trustee’s
certificate of authentication, an alternative certificate of authentication in
the following form:

 

This is one of the Securities described in
the within-mentioned Indenture.

 

	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION,

  
	
   

  	
  As Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
  By [AUTHENTICATING AGENT],

  
	
   

  	
  As
  Authenticating Agent

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
						

 

ARTICLE SEVEN

Holders’ Lists and Reports by Trustee and Company

 

SECTION 701.                                                                    Company
to Furnish Trustee Names and Addresses of Holders.

 

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

 

(a)                                  semi-annually, not more than 15 days
after each Regular Record Date, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders as of such
Regular Record Date, and

 

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

 

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

 

58

 

SECTION 702.                                                                    Preservation
of Information; Communications to Holders.

 

(a)                                  The Trustee shall preserve, in as
current a form as is reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as provided in
Section 701 and the names and addresses of Holders received by the
Trustee, if acting as and in its capacity as Security Registrar. The Trustee
may destroy any list furnished to it as provided in Section 701 upon
receipt of a new list so furnished.

 

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

 

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

 

SECTION 703.                                                                    Reports
by Trustee.

 

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

 

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

 

SECTION 704.                                                                    Reports
by Company.

 

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

 

59

 

ARTICLE EIGHT

Consolidation, Merger, Conveyance, Transfer or Lease

 

SECTION 801.                                                                    Company
May Consolidate, Etc., Only on Certain Terms.

 

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

 

(1)                                  in case the Company shall
consolidate with or merge into another Person or convey, transfer or lease its
properties and assets substantially as an entirety to any Person, the Person
formed by such consolidation or into which the Company is merged or the Person
which acquires by conveyance or transfer, or which leases, the properties and
assets of the Company substantially as an entirety shall be a corporation,
partnership or trust, shall be organized and validly existing under the laws of
the United States of America, any state thereof or the District of Columbia and
shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the due and
punctual payment of the principal of (and premium, if any) and interest on all
the Securities and the performance or observance of every covenant of this
Indenture on the part of the Company to be performed or observed and shall have
provided for conversion rights in accordance with Section 1311;

 

(2)                                  immediately after giving effect to
such transaction, no Default, and no event which, after notice or lapse of time
or both, would become a 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 consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, such
supplemental indenture comply with this Article and that all conditions
precedent herein provided for relating to such transaction have been complied
with.

 

SECTION 802.                                                                    Successor
Substituted.

 

Upon any consolidation of the Company with,
or merger of the Company into, any other Person or any conveyance, transfer or
lease of the properties and assets of the Company substantially as an entirety
in accordance with Section 801, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and the
Securities.

 

60

 

ARTICLE NINE

Supplemental Indentures

 

SECTION 901.                                                                    Supplemental
Indentures Without Consent of Holders.

 

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

 

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

 

(2)                                  to add to the covenants of the
Company for the benefit of the Holders, or to surrender any right or power
herein conferred upon the Company; or

 

(3)                                  to secure the Securities; or

 

(4)                                  to make provision with respect to
the conversion rights of Holders pursuant to the requirements of
Section 1311; or

 

(5)                                  to add any additional Events of
Default or Defaults; or

 

(6)                                  to add to, change or eliminate any
of the provisions of this Indenture, provided that any such addition, change or
elimination shall not modify the rights of the Holder of any Security with
respect to such provision; or

 

(7)                                  subject to Section 907, to add
to, change or eliminate any of the provisions of Article Twelve, provided
that any such addition, change or elimination shall not adversely affect the
interests of the Holders of Outstanding Securities in any material respect; or

 

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

 

SECTION 902.                                                                    Supplemental
Indentures with Consent of Holders.

 

With the consent of the Holders of a majority
in principal amount of the Outstanding Securities, by Act of said Holders
delivered to the Company and the Trustee, the Company, when authorized by a
Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders 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 Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium payable
upon the redemption thereof, or change the place of payment where, or the coin
or currency in which, any Security or any premium or interest

 

61

 

thereon
is payable, or impair the right to institute suit for the enforcement of any
such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date), or adversely affect the right to
convert any Security as provided in Article Thirteen (except as permitted
by Section 901(4)), or modify the provisions of this Indenture with
respect to the subordination of the Securities in a manner adverse to the
Holders, or

 

(2)                                  reduce the percentage in principal
amount of the Outstanding Securities, 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 1007, 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.

 

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
the modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 601) 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 of Securities 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.

 

SECTION 906.                                                                    Reference
in Securities to Supplemental Indentures. 

 

Securities 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

 

62

 

form approved
by the Trustee as to any matter provided for in such supplemental indenture. If
the Company shall so determine, new Securities 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.

 

SECTION 907.                                                                    Subordination
Unimpaired. 

 

No provision in any supplemental indenture
that affects the superior position of the holders of Senior Indebtedness shall
be effective against any holder of Senior Indebtedness, unless such holder
shall have consented thereto. Notwithstanding any provision in this Indenture
or otherwise, the rights of Entitled Persons in respect of Other Financial
Obligations under this Indenture and otherwise in respect of the Securities
may, at any time and from time to time, be modified in any respect or
eliminated without the consent of any Entitled Person in respect of Other
Financial Obligations.

 

ARTICLE TEN

Covenants

 

SECTION 1001.                                                              Payment
of Principal, Premium and Interest.

 

The Company will duly and punctually pay the
principal of (and premium, if any) and interest on the Securities in accordance
with the terms of the Securities and this Indenture.

 

SECTION 1002.                                                              Maintenance
of Office or Agency. 

 

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

 

The Company may also from time to time
designate one or more other offices or agencies (in or outside the Borough of
Manhattan, The City of New York) where the Securities may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall
in any manner relieve the Company of its obligation to maintain an office or
agency 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.

 

63

 

SECTION 1003.                                                              Money
for Security Payments to Be Held in Trust.

 

If the Company shall at any time act as its
own Paying Agent, it will, on or before each due date of the principal of (and
premium, if any) or interest on any of the Securities, segregate and hold in
trust for the benefit of the Persons entitled thereto a sum 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, it will, prior to each due date of the principal of (and
premium, if any) or interest on any Securities, deposit with a Paying Agent a
sum sufficient to pay such amount, such sum to be held as provided by the Trust
Indenture Act, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act.

 

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

 

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

 

Any money deposited with the Trustee or any
Paying Agent, or then held by the Company, in trust for the payment of the
principal of (and premium, if any) or interest on any Security 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 a newspaper published in the English
language, customarily published on each Business Day and of general circulation
in the Borough of Manhattan, the City of New York, and the City of Los Angeles,
State of California, 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.

 

64

 

SECTION 1004.                                                              Statement
by Officers as to Default.

 

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

 

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 for it and the Bank their existence, rights (charter and
statutory) and franchises; provided, however, that the Company shall not be
required to preserve any such right or franchise if the Board of Directors
shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and its Subsidiaries or the Bank and
that the loss thereof is not disadvantageous in any material respect to the
Holders.

 

SECTION 1006.                                                              Payment
of Taxes and Other Claims. 

 

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

 

SECTION 1007.                                                              Waiver
of Certain Covenants.

 

The Company may omit in any particular
instance to comply with any covenant or condition set forth in Sections 1005 to
1006, inclusive, if before the time for such compliance the Holders of a
majority in principal amount of the Outstanding Securities shall, by Act of
such Holders, either waive such compliance in such instance or generally waive
compliance with such covenant or condition, but no such waiver shall extend to
or affect such covenant 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 covenant or condition
shall remain in full force and effect.

 

SECTION 1008.                                                              Book-Entry
System. 

 

If the Securities cease to trade in DTC’s
book-entry settlement system, the Company covenants and agrees that it shall
use reasonable efforts to make such other book-entry arrangements that it
determines are reasonable for the Securities.

 

65

 

ARTICLE ELEVEN

Redemption of Securities

 

SECTION 1101.                                                              Right
of Redemption. 

 

The Securities may be redeemed at the
election of the Company, as a whole or from time to time in part, at any time,
under the conditions and at the Redemption Prices specified in the form of
Security hereinbefore set forth, together with accrued interest to the
Redemption Date. In the case of any such redemption prior to October 30,
2006, or a redemption at 100% of the principal amount during the 12-month
period beginning October 30, 2006, the Company shall, prior to giving
notice of such redemption pursuant to Section 1105, furnish the Trustee
with an Officers’ Certificate stating that the Company is entitled to redeem
the Securities pursuant to the provisions of the third paragraph in the reverse
of the form of Security hereinbefore set forth.

 

The Company will consult with the Board of
Governors of the Federal Reserve System prior to electing to redeem for cash
any of these Securities.

 

SECTION 1102.                                                              Applicability
of Article.

 

Redemption of Securities at the election of
the Company, as permitted by any provision of this Indenture, shall be made in
accordance with such provision and this Article.

 

SECTION 1103.                                                              Election
to Redeem; Notice to Trustee.

 

The election of the Company to redeem any
Securities pursuant to Section 1101 shall be evidenced by a Board
Resolution. In case of any redemption at the election of the Company of less
than all the Securities, 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 and of
the principal amount of Securities to be redeemed.

 

SECTION 1104.                                                              Selection
by Trustee of Securities to Be Redeemed.

 

If less than all the Securities 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 not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of portions (equal to $1,000 or any integral multiple thereof) of
the principal amount of Securities of a denomination larger than $1,000.

 

If any Security selected for partial
redemption is converted in part before termination of the conversion right with
respect to the portion of the Security so selected, the converted portion of
such Security shall be deemed (so far as may be) to be the portion selected for
redemption. Securities which have been converted during a selection of
Securities to be redeemed shall be treated by the Trustee as Outstanding for
the purpose of such selection.

 

66

 

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

 

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

 

SECTION 1105.                                                              Notice
of Redemption. 

 

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

 

All notices of redemption shall state:

 

(1)                                  the Redemption Date,

 

(2)                                  the Redemption Price,

 

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

 

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

 

(5)                                  the conversion price, the date on
which the right to convert the Securities to be redeemed will terminate and the
place or places where such Securities may be surrendered for conversion, and

 

(6)                                  the place or places where such
Securities are to be surrendered for payment of the Redemption Price.

 

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

 

SECTION 1106.                                                              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 sufficient to pay the Redemption Price
of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, all the Securities which are to be redeemed on that date
other than any Securities called for redemption on that date which have been
converted prior to the date of such deposit.

 

67

 

If any Security called for redemption is
converted, any money deposited with the Trustee or with any Paying Agent or so
segregated and held in trust for the redemption of such Security shall (subject
to any right of the Holder of such Security or any Predecessor Security to
receive interest as provided in the last paragraph of Section 307) be paid
to the Company upon Company Request or, if then held by the Company, shall be
discharged from such trust.

 

SECTION 1107.                                                              Securities
Payable on Redemption Date. 

 

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

 

SECTION 1108.                                                              Securities
Redeemed in Part. 

 

Any Security which is to be redeemed only in
part shall be surrendered at an office or agency of the Company designated for
that purpose pursuant to Section 1002 (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing), and the Company shall
execute, and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Security or Securities, of 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

Subordination of Securities

 

SECTION 1201.                                                              Securities
Subordinate to Senior Indebtedness. 

 

The Company covenants and agrees, and each
Holder of a Security, by his acceptance thereof, likewise covenants and agrees,
that, to the extent and in the manner hereinafter set forth in this Article,
the indebtedness represented by the Securities and the payment of the principal
of (and premium, if any) and interest on each and all of the Securities are
hereby expressly made subordinate and subject in right of payment to the prior
payment in full of all Senior Indebtedness.

 

68

 

SECTION 1202.                                                              Payment
Over of Proceeds Upon Dissolution, Etc. 

 

In the event of (a) any insolvency or
bankruptcy case or proceeding, or any receivership, liquidation, reorganization
or other similar case or proceeding in connection therewith, relative to the
Company or to its creditors, as such, or to its assets, or (b) any liquidation,
dissolution or other winding up of the Company, whether voluntary or
involuntary and whether or not involving insolvency or bankruptcy, or (c) any
assignment for the benefit of creditors or any other marshalling of assets and
liabilities of the Company, then and in any such event the holders of Senior
Indebtedness shall be entitled to receive payment in full of all amounts due or
to become due on or in respect of all Senior Indebtedness, or provision shall
be made for such payment in money or money’s worth, before the Holders of the
Securities are entitled to receive any payment on account of principal of (or
premium, if any) or interest on the Securities, and to that end the holders of
Senior Indebtedness shall be entitled to receive, for application to the
payment thereof, any payment or distribution of any kind or character, whether
in cash, property or securities, which may be payable or deliverable in respect
of the Securities in any such case, proceeding, dissolution, liquidation or
other winding up or event.

 

In the event that, notwithstanding the
foregoing provisions of this Section, the Trustee or the Holder of any Security
shall have received any payment or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, before all Senior
Indebtedness is paid in full or payment thereof provided for, and if such fact
shall, at or prior to the time of such payment or distribution, have been made
known to the Trustee or, as the case may be, such Holder, then and in such
event such payment or distribution shall be paid over or delivered forthwith to
the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee,
agent or other Person making payment or distribution of assets of the Company
for application to the payment of all Senior Indebtedness remaining unpaid, to
the extent necessary to pay all Senior Indebtedness in full, after giving
effect to any concurrent payment or distribution to or for the holders of
Senior Indebtedness.

 

For purposes of this Article only, the
words “cash, property or securities” shall not be deemed to include shares of
stock of the Company as reorganized or readjusted, or securities of the Company
or any other corporation provided for by a plan of reorganization or
readjustment which are subordinated in right of payment to all Senior
Indebtedness which may at the time be outstanding to substantially the same
extent as, or to a greater extent than, the Securities are so subordinated as
provided in this Article. The consolidation of the Company with, or the merger
of the Company into, another Person or the liquidation or dissolution of the
Company following the conveyance or transfer of its properties and assets
substantially as an entirety to another Person upon the terms and conditions
set forth in Article Eight shall not be deemed a dissolution, winding up,
liquidation, reorganization, assignment for the benefit of creditors or
marshalling of assets and liabilities of the Company for the purposes of this
Section if the Person formed by such consolidation or into which the
Company is merged or which acquires by conveyance or transfer such properties
and assets substantially as an entirety, as the case may be, shall, as a part
of such consolidation, merger, conveyance or transfer, comply with the
conditions set forth in Article Eight.

 

69

 

SECTION 1203.                                                              Prior
Payment to Senior Indebtedness Upon Acceleration of Securities. 

 

In the event that any Securities are declared
due and payable before their Stated Maturity, then and in such event the
holders of the Senior Indebtedness shall be entitled to receive payment in full
of all amounts due on or in respect of such Senior Indebtedness, or provision
shall be made for such payment in money or money’s worth, before the Holders of
the Securities are entitled to receive any payment of the principal of (or
premium, if any) or interest on the Securities or on account of the purchase or
other acquisition of Securities.

 

In the event that, notwithstanding the
foregoing, the Company shall make any payment to the Trustee or the Holder of
any Security prohibited by the foregoing provisions of this Section, and if
such fact shall, at or prior to the time of such payment, have been made known
to the Trustee or, as the case may be, such Holder, then and in such event such
payment shall be paid over and delivered forthwith to the Company.

 

The provisions of this Section shall not
apply to any payment with respect to which Section 1202 would be
applicable.

 

SECTION 1204.                                                              No
Payment When Senior Indebtedness in Default. 

 

(a)                                  In the event and during the
continuation of any default in the payment of principal of (or premium, if any)
or interest on any Senior Indebtedness beyond any applicable grace period with
respect thereto, or

 

(b)                                 in the event any judicial proceeding
shall be pending with respect to any such default, then no payment shall be
made by the Company on account of principal of (or premium, if any) or interest
on the Securities or on account of the purchase or other acquisition of
Securities.

 

In the event
that, notwithstanding the foregoing, the Company shall make any payment to the
Trustee or the Holder of any Security prohibited by the foregoing provisions of
this Section, and if such fact shall, at or prior to the time of such payment,
have been made known to the Trustee or, as the case may be, such Holder, then
and in such event such payment shall be paid over and delivered forthwith to
the Company.

 

The provisions of this Section shall not
apply to any payment with respect to which Section 1202 would be
applicable.

 

SECTION 1205.                                                              Payment
Permitted If No Default.

 

Nothing contained in this Article or
elsewhere in this Indenture or in any of the Securities shall prevent (a) the
Company, at any time except during the pendency of any case, proceeding,
dissolution, liquidation or other winding up, assignment for the benefit of creditors
or other marshalling of assets and liabilities of the Company referred to in
Section 1202 or under the conditions described in Section 1203 or
1204, from making payments at any time of principal of (and premium, if any) or
interest on the Securities, or (b) the application by the Trustee or any Paying
Agent of any money deposited with it hereunder to the payment of or on account
of the principal of (and premium, if any) or interest on the Securities or the
retention of such payment by the Holder of any moneys so received, if, at the
time of such application by the Trustee, it did

 

70

 

not have
knowledge that such payment would have been prohibited by the provisions of
this Article.

 

SECTION 1206.                                                              Subrogation
to Rights of Holders of Senior Indebtedness. 

 

Subject to the payment in full of all Senior
Indebtedness, the Holders of the Securities shall be subrogated (equally and
ratably with the holders of all indebtedness of the Company which by its express
terms is subordinated to indebtedness of the Company to substantially the same
extent as the Securities are subordinated and is entitled to like rights of
subrogation) to the rights of the holders of such Senior Indebtedness to
receive payments and distributions of cash, property and securities applicable
to the Senior Indebtedness until the principal of (and premium, if any) and
interest on the Securities shall be paid in full. For purposes of such
subrogation, no payments or distributions to the holders of the Senior
Indebtedness of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this
Article, and no payments over pursuant to the provisions of this
Article to the holders of Senior Indebtedness by Holders of the Securities
or the Trustee, shall, as among the Company, its creditors other than holders
of Senior Indebtedness and the Holders of the Securities, be deemed to be a
payment or distribution by the Company to or on account of the Senior
Indebtedness.

 

SECTION 1207.                                                              Provisions
Solely to Define Relative Rights.

 

The provisions of this Article are and
are intended solely for the purpose of defining the relative rights of the
Holders of the Securities on the one hand and the holders of Senior
Indebtedness (and, in the case of Section 1215, Entitled Persons in
respect of Other Financial Obligations) on the other hand. Nothing contained in
this Article or elsewhere in this Indenture or in the Securities is intended
to or shall (a) impair, as among the Company, its creditors other than holders
of Senior Indebtedness and the Holders of the Securities, the obligation of the
Company, which is absolute and unconditional (and which, subject to the rights
under this Article of the holders of Senior Indebtedness and the rights
under Section 1215 of Entitled Persons in respect of Other Financial
Obligations, is intended to rank equally with all other general obligations of
the Company), to pay to the Holders of the Securities the principal of (and
premium, if any) and interest on the Securities as and when the same shall
become due and payable in accordance with their terms; or (b) affect the
relative rights against the Company of the Holders of the Securities and
creditors of the Company other than the holders of Senior Indebtedness; or (c)
prevent the Trustee or the Holder of any Security from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article of the holders of Senior
Indebtedness, and under Section 1215 of Entitled Persons in respect of
Other Financial Obligations, to receive cash, property and securities otherwise
payable or deliverable to the Trustee or such Holder.

 

SECTION 1208.                                                              Trustee
to Effectuate Subordination. 

 

Each Holder of a Security by his acceptance
thereof authorizes and directs the Trustee on his behalf to take such action as
may be necessary or appropriate to effectuate the subordination provided in
this Article and appoints the Trustee his attorney-in-fact for any and all
such purposes.

 

71

 

SECTION 1209.                                                              No
Waiver of Subordination Provisions. 

 

No right of any present or future holder of
any Senior Indebtedness to enforce subordination as herein provided shall at
any time in any way be prejudiced or impaired by any act or failure to act on
the part of the Company or by any act or failure to act, in good faith, by any
such holder, or by any non-compliance by the Company with the terms, provisions
and covenants of this Indenture, regardless of any knowledge thereof any such
holder may have or be otherwise charged with.

 

Without in any way limiting the generality of
the foregoing paragraph, the holders of Senior Indebtedness may, at any time
and from time to time, without the consent of or notice to the Trustee or the
Holders of the Securities, without incurring responsibility to the Holders of
the Securities and without impairing or releasing the subordination provided in
this Article or the obligations hereunder of the Holders of the Securities
to the holders of Senior Indebtedness, do any one or more of the following: (i)
change the manner, place or terms of payment or extend the time of payment of,
or renew or alter, Senior Indebtedness, or otherwise amend or supplement in any
manner Senior Indebtedness or any instrument evidencing the same or any
agreement under which Senior Indebtedness is outstanding; (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing Senior Indebtedness; (iii) release any Person liable in any manner for
the collection of Senior Indebtedness; and (iv) exercise or refrain from
exercising any rights against the Company and any other Person.

 

SECTION 1210.                                                              Notice
to Trustee. 

 

The Company shall give prompt written notice
to the Trustee of any fact known to the Company which would prohibit the making
of any payment or distribution to or by the Trustee in respect of the
Securities. Notwithstanding the provisions of this Article or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts which would prohibit the making of any payment or
distribution to or by the Trustee in respect of the Securities, unless and
until the Trustee shall have received written notice thereof from the Company
or a holder of Senior Indebtedness or from any trustee therefor or from any
Entitled Persons in respect of Other Financial Obligations, and, prior to the
receipt of any such written notice, the Trustee shall be entitled in all
respects to assume that no such facts exist.

 

The Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a
holder of Senior Indebtedness (or a trustee therefor) or an Entitled Person in
respect of Other Financial Obligations to establish that such notice has been
given by a holder of Senior Indebtedness (or a trustee therefor) or an Entitled
Person in respect of Other Financial Obligations. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a holder of Senior Indebtedness or an Entitled Person in
respect of Other Financial Obligations to participate in any payment or
distribution pursuant to this Article, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of Senior Indebtedness or Other Financial Obligations held by such Person, the
extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under
this Article, and if such evidence is not furnished, the Trustee may defer any

 

72

 

payment or
distribution to such Person pending judicial determination as to the right of
such Person to receive such payment.

 

SECTION 1211.                                                              Reliance
on Judicial Order or Certificate of Liquidating Agent. 

 

Upon any payment or distribution of assets of
the Company referred to in this Article, the Trustee and the Holders of the
Securities shall be entitled to rely upon any order or decree entered by any
court of competent jurisdiction in which such insolvency, bankruptcy,
receivership, liquidation, reorganization, dissolution, winding up or similar
case or proceeding is pending, or a certificate of the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee for the benefit of
creditors, agent or other Person making such payment or distribution, delivered
to the Trustee or to the Holders of Securities, for the purpose of ascertaining
the Persons entitled to participate in such payment or distribution, the
holders of the Senior Indebtedness and other indebtedness of the Company and
the Entitled Persons in respect of Other Financial Obligations, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article.

 

SECTION 1212.                                                              Trustee
Not Fiduciary for Holders of Senior Indebtedness. 

 

The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness or Entitled Persons in
respect of Other Financial Obligations and shall not be liable to any such
holders or creditors if it shall in good faith mistakenly pay over or
distribute to Holders of Securities or to the Company or to any other Person
cash, property or securities to which any holders of Senior Indebtedness or
Entitled Persons in respect of Other Financial Obligations shall be entitled by
virtue of this Article or otherwise.

 

SECTION 1213.                                                              Rights
of Trustee as Holder of Senior Indebtedness; Preservation of Trustee’s Rights.

 

The Trustee in its individual capacity shall
be entitled to all the rights set forth in this Article with respect to
any Senior Indebtedness which may at any time be held by it, and with respect
to any Other Financial Obligations owed to the Trustee as an Entitled Person,
to the same extent as any other holder of Senior Indebtedness or Entitled
Persons in respect of Other Financial Obligations, as the case may be, and
nothing in this Indenture shall deprive the Trustee of any of its rights as
such holder or Entitled Person.

 

Nothing in this Article shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 607.

 

SECTION 1214.                                                              Article Applicable
to Paying Agents.

 

In case at any time any Paying Agent other
than the Trustee shall have been appointed by the Company and be then acting
hereunder, the term “Trustee” as used in this Article shall in such case
(unless the context otherwise requires) be construed as extending to and
including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article in addition to
or in place of the Trustee; provided, however, that Section 1213 shall not
apply to the Company or any Affiliate of the Company if it or such Affiliate
acts as Paying Agent.

 

73

 

SECTION 1215.                                                              Payment
of Proceeds in Certain Cases. 

 

(a)                                  If, after giving effect to the
provisions of Section 1202 and Section 1206, any amount of cash,
property or securities shall be available for payment or distribution in
respect of the Securities (“Excess Proceeds”), and any Entitled Persons in
respect of Other Financial Obligations shall not have received payment in full
of all amounts due or to become due on or in respect of such Other Financial
Obligations (and provision shall not have been made for such payment in money
or money’s worth), then such Excess Proceeds shall first be applied (ratably
with any amount of cash, property or securities available for payment or
distribution in respect of any other indebtedness of the Company that by its
express terms provides for the payment over of amounts corresponding to Excess
Proceeds to Entitled Persons in respect of Other Financial Obligations) to pay
or provide for the payment of the Other Financial Obligations remaining unpaid,
to the extent necessary to pay all Other Financial Obligations in full, after
giving effect to any concurrent payment or distribution to or for Entitled
Persons in respect of Other Financial Obligations. Any Excess Proceeds
remaining after the payment (or provision for payment) in full of all Other
Financial Obligations shall be available for payment or distribution in respect
of the Securities.

 

(b)                                 In the event that, notwithstanding
the foregoing provisions of subsection (a) of this Section, the Trustee or
Holder of any Security shall have received any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, before all Other Financial Obligations are paid in full or payment
thereof duly provided for, and if such fact shall, at or prior to the time of
such payment or distribution have been made known to the Trustee or, as the
case may be, such Holder, then and in such event, subject to any obligation
that the Trustee or such Holder may have pursuant to Section 1202, such
payment or distribution shall be paid over or delivered forthwith to the
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee,
agent or other Person making payment or distribution of assets of the Company
for payment in accordance with subsection (a).

 

(c)                                  Subject to the payment in full of
all Other Financial Obligations, the Holders of the Securities shall be
subrogated (equally and ratably with the holders of all indebtedness of the
Company that by its express terms provides for the payment over of amounts
corresponding to Excess Proceeds to Entitled Persons in respect of Other
Financial Obligations and is entitled to like rights of subrogation) to the
rights of the Entitled Persons in respect of Other Financial Obligations to
receive payments and distributions of cash, property and securities applicable
to the Other Financial Obligations until the principal of and interest on the
Securities shall be paid in full. For purposes of such subrogation, no payments
or distributions to Entitled Persons in respect of Other Financial Obligations
of any cash, property or securities to which Holders of the Securities or the
Trustee would be entitled except for the provisions of this Section, and no
payments over pursuant to the provisions of this Section to Entitled
Persons in respect of Other Financial Obligations by Holders of Securities or
the Trustee, shall, as among the

 

74

 

Company,
its creditors other than Entitled Persons in respect of Other Financial
Obligations and the Holders of Securities be deemed to be a payment or
distribution by the Company to or on account of the Other Financial
Obligations.

 

(d)                                 The provisions of subsections (a),
(b) and (c) of this Section are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities, on the one hand,
and the Entitled Persons in respect of Other Financial Obligations, on the
other hand, after giving effect to the rights of the holders of Senior
Indebtedness, as provided in this Article. Nothing contained in subsections
(a), (b) and (c) of this Section is intended to or shall affect the
relative rights against the Company of the Holders of the Securities and (1)
the holders of Senior Indebtedness or (2) other creditors of the Company other than
Entitled Persons in respect of Other Financial Obligations.

 

SECTION 1216.                                                              Certain
Conversions Deemed Payment. 

 

For the purposes of this Article only,
(1) the issuance and delivery of junior securities upon conversion of
Securities in accordance with Article Thirteen shall not be deemed to
constitute a payment or distribution on account of the principal of or premium
or interest on Securities or on account of the purchase or other acquisition of
Securities, and (2) the payment, issuance or delivery of cash, property or
securities (other than junior securities) upon conversion of a Security shall
be deemed to constitute payment on account of the principal of such Security.
For the purposes of this Section, the term “junior securities” means (a) shares
of any stock of any class of the Company and (b) securities of the Company
which are subordinated in right of payment to all Senior Indebtedness which may
be outstanding at the time of issuance or delivery of such securities to
substantially the same extent as, or to a greater extent than, the Securities
are so subordinated as provided in this Article. Nothing contained in this
Article or elsewhere in this Indenture or in the Securities is intended to
or shall impair, as among the Company, its creditors other than holders of
Senior Indebtedness and the Holders of the Securities, the right, which is
absolute and unconditional, of the Holder of any Security to convert such
Security in accordance with Article Thirteen.

 

ARTICLE THIRTEEN

Conversion of Securities

 

SECTION 1301.                                                              Conversion
Privilege and Conversion Price. 

 

Subject to and upon compliance with the
provisions of this Article, at the option of the Holder thereof, the principal
amount of any Security which is payable at Stated Maturity or any portion
thereof which is $1,000 or an integral multiple of $1,000 may be converted into
fully paid and non-assessable shares (calculated as to each conversion to the
nearest 1/100 of a share) of Common Stock of the Company, at the conversion
price, determined as hereinafter provided, in effect at the time of conversion.
Such conversion right shall expire at the close of business on October 30,
2023, subject, in the case of conversion of any Global Note, to any Applicable
Procedures. In case a Security or portion thereof is called for redemption,
such conversion right in respect of the Security or portion so called shall
expire at the close of

 

75

 

business on
the Redemption Date unless the Company defaults in making the payment due upon
redemption, subject as aforesaid to any Applicable Procedures with respect to
any Global Note.

 

The price at which shares of Common Stock
shall be delivered upon conversion (herein called the “conversion price”) shall
be initially $27.50 per share of Common Stock. The conversion price shall be
adjusted in certain instances as provided in this Article.

 

SECTION 1302.                                                              Exercise
of Conversion Privilege. 

 

In order to exercise the conversion
privilege, the Holder of any Security to be converted shall surrender such
Security, duly endorsed or assigned to the Company or in blank, at any office
or agency of the Company maintained for that purpose pursuant to
Section 1002, accompanied by written notice to the Company substantially
in the form set forth in the form of reverse of Security in Section 203 at
such office or agency that the Holder elects to convert such Security or, if
less than the entire principal amount thereof is to be converted, the portion
thereof to be converted. Securities surrendered for conversion during the
period from the close of business on any Regular Record Date next preceding any
Interest Payment Date to the opening of business on such Interest Payment Date
shall (except in the case of Securities or portions thereof which have been
called for redemption on a Redemption Date within such period) be accompanied
by payment in New York Clearing House funds, as the case may be, or other funds
acceptable to the Company of an amount equal to the interest payable on such
Interest Payment Date on the principal amount of Securities being surrendered
for conversion. Subject to the provisions of Section 307 relating to the
payment of Defaulted Interest by the Company, in the case of a Security which
is converted after any Regular Record Date and on or prior to the next
succeeding Interest Payment Date (other than any Securities or portions thereof
which have been called for redemption on a Redemption Date within such period),
the interest whose Stated Maturity is on such Interest Payment Date shall be
payable on such Interest Payment Date to the Holder of such Security at the
close of business on such Regular Record Date notwithstanding the conversion of
such Security after such Regular Record Date and prior to such Interest Payment
Date. Except as set forth above and subject to the final paragraph of
Section 307, no payment or adjustment shall be made upon any conversion on
account of any interest accrued on the Securities surrendered for conversion or
on account of any dividends on the Common Stock issued upon conversion.

 

Securities shall be deemed to have been
converted immediately prior to the close of business on the day of surrender of
such Securities for conversion in accordance with the foregoing provisions, and
at such time the rights of the Holders of such Securities as Holders shall
cease, and the Person or Persons entitled to receive the Common Stock issuable
upon conversion shall be treated for all purposes as the record holder or
holders of such Common Stock at such time. As promptly as practicable on or
after the conversion date, the Company shall issue and shall deliver at such
office or agency a certificate or certificates for the number of full shares of
Common Stock issuable upon conversion, together with payment in lieu of any fraction
of a share, as provided in Section 1303.

 

In the case of any Security which is
converted in part only, upon such conversion the Company shall execute and the
Trustee shall authenticate and deliver to the Holder thereof, at

 

76

 

the expense of
the Company, a new Security or Securities of authorized denominations in
aggregate principal amount equal to the unconverted portion of the principal
amount of such Security.

 

SECTION 1303.                                                              Fractions
of Shares.

 

No fractional shares of Common Stock shall be
issued upon conversion of Securities. If more than one Security shall be
surrendered for conversion at one time by the same Holder, the number of full
shares which shall be issuable upon conversion thereof shall be computed on the
basis of the aggregate principal amount of the Securities (or specified
portions thereof) so surrendered. Instead of any fractional share of Common
Stock which would otherwise be issuable upon conversion of any Security or
Securities (or specified portions thereof), the Company shall pay a cash
adjustment in respect of such fraction in an amount equal to the same fraction
of the Closing Price at the close of business on the day of conversion (or, if
such day is not a Trading Date, on the Trading Date immediately preceding such
day).

 

SECTION 1304.                                                              Adjustment
of Conversion Price.

 

(a)                                  In case the Company shall pay or
make a dividend or other distribution on any class of capital stock of the
Company in shares of Common Stock, the conversion price in effect at the
opening of business on the day following the date fixed for the determination
of shareholders entitled to receive such dividend or other distribution shall
be reduced by multiplying such conversion price by a fraction of which the numerator
shall be the number of shares of Common Stock outstanding at the close of
business on the date fixed for such determination and the denominator shall be
the sum of such number of shares and the total number of shares constituting
such dividend or other distribution, such reduction to become effective
immediately after the opening of business on the day following the date fixed
for such determination. For the purposes of this paragraph (a), the number of
shares of Common Stock at any time outstanding shall not include shares held in
the treasury of the Company or which shall have been otherwise acquired by the
Company but shall include shares issuable in respect of scrip certificates
issued in lieu of fractions of shares of Common Stock. The Company will not pay
any dividend or make any distribution on shares of Common Stock held in the
treasury of the Company.

 

(b)                                 Subject to the last sentence of
paragraph (g) of this Section, in case the Company shall issue rights or
warrants to all holders of its Common Stock entitling them to subscribe for or
purchase shares of Common Stock at a price per share less than the current
market price per share (determined as provided in paragraph (h) of this
Section) of the Common Stock on the date fixed for the determination of the
shareholders entitled to receive such rights or warrants, the conversion price
in effect at the opening of business on the day following the date fixed for
such determination shall be reduced by multiplying such conversion price by a
fraction of which the numerator shall be the number of shares of Common Stock
outstanding at the close of business on the date fixed for such determination
plus the number of shares of Common Stock which the aggregate

 

77

 

of
the offering price of the total number of shares of Common Stock so offered for
subscription or purchase would purchase at such current market price and the
denominator shall be the number of shares of Common Stock outstanding at the
close of business on the date fixed for such determination plus the number of
shares of Common Stock so offered for subscription or purchase, such reduction
to become effective immediately after the opening of business on the day
following the date fixed for such determination. For the purposes of this
paragraph (b), the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Company but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of
shares of Common Stock. The Company will not issue any rights or warrants in
respect of shares of Common Stock held in the treasury of the Company.

 

(c)                                  In case outstanding shares of Common
Stock shall be subdivided into a greater number of shares of Common Stock, the
conversion price in effect at the opening of business on the day following the
day upon which such subdivision becomes effective shall be proportionately
reduced, and, conversely, in case outstanding shares of Common Stock shall each
be combined into a smaller number of shares of Common Stock, the conversion
price in effect at the opening of business on the day following the day upon
which such combination becomes effective shall be proportionately increased,
such reduction or increase, as the case may be, to become effective immediately
after the opening of business on the day following the day upon which such
subdivision or combination becomes effective.

 

(d)                                 Subject to the last sentence of this
paragraph (d) and the last sentence of paragraph (g) of this Section, in case
the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock evidences of its indebtedness, shares of any class of capital
stock, cash or assets (including securities, but excluding those rights or
warrants referred to in paragraph (b) of this Section, any dividend or
distribution paid exclusively in cash and any dividend or distribution referred
to in paragraph (a) of this Section), the conversion price shall be adjusted so
that the same shall equal the price determined by multiplying the conversion
price in effect immediately prior to the close of business on the date fixed
for the determination of shareholders entitled to receive such distribution by
a fraction of which the numerator shall be the current market price per share
(determined as provided in paragraph (h) of this Section) of the Common Stock
on the date fixed for such determination less the then fair market value (as
determined by the Board of Directors, whose determination shall be conclusive
and described in a Board Resolution filed with the Trustee) of the portion of
the assets, securities or evidences of indebtedness so distributed applicable
to one share of Common Stock and the denominator shall be such current market
price per share of the Common Stock, such adjustment to become effective
immediately prior to the opening of business on the day following the date
fixed for the determination of shareholders entitled to receive such
distribution. If the Board of Directors determines the fair market value of any
distribution for purposes of this paragraph (d) by reference to the actual or

 

78

 

when
issued trading market for any securities comprising such distribution, it must
in doing so consider the prices in such market over the same period used in
computing the current market price per share pursuant to paragraph (h) of this
Section. Notwithstanding the foregoing, in the event that the Company shall
distribute rights or warrants (other than those referred to in paragraph (b) of
this Section) (“Rights”) pro rata to holders of Common Stock, the Company shall
make proper provision so that each Holder of a Security who converts such
Security (or any portion thereof) after the record date for such distribution
and prior to the expiration or redemption of the Rights shall be entitled to
receive upon such conversion, in addition to the shares of Common Stock
issuable upon such conversion (the “Conversion Shares”), a number of Rights to
be determined as follows: (i) if such conversion occurs on or prior to the date
for the distribution to the holders of Rights of separate certificates
evidencing such Rights (the “Distribution Date”), the same number of Rights to
which a holder of a number of shares of Common Stock equal to the number of
Conversion Shares is entitled at the time of such conversion in accordance with
the terms and provisions of and applicable to the Rights; and (ii) if such
conversion occurs after the Distribution Date, the same number of Rights to
which a holder of the number of shares of Common Stock into which the principal
amount of the Security so converted was convertible immediately prior to the
Distribution Date would have been entitled on the Distribution Date in
accordance with the terms and provisions of and applicable to the Rights.

 

(e)                                  In case the Company shall, by
dividend or otherwise, at any time distribute to all holders of its Common
Stock cash (excluding any cash that is distributed as part of a distribution
referred to in paragraph (d) of this Section) in an aggregate amount that,
together with (i) the aggregate amount of any other distributions to all
holders of its Common Stock made exclusively in cash with the 12 months
preceding the date of payment of such distribution and in respect of which no
conversion price adjustment pursuant to this paragraph (e) has been made and
(ii) the aggregate of any cash plus the fair market value (as determined by the
Board of Directors, whose determination shall be conclusive and described in a
Board Resolution) of consideration payable in respect of any tender offer by
the Company or a Subsidiary for all or any portion of the Company’s Common
Stock concluded within the 12 months preceding the date of payment of such
distribution and in respect of which no conversion price adjustment pursuant to
paragraph (f) of this Section has been made, exceeds 12.5% of the product
of the current market price per share (determined as provided in paragraph (h)
of this Section) of the Common Stock on the date fixed for the determination of
shareholders entitled to receive such distribution times the number of shares
of Common Stock outstanding on such date, the conversion price shall be reduced
so that the same shall equal the price determined by multiplying the conversion
price in effect immediately prior to the effectiveness of the conversion price
reduction contemplated by this paragraph (e) by a fraction of which the
numerator shall be the current market price per share (determined as provided
in paragraph (h) of this Section) of the Common Stock on such date less the
amount of cash so distributed applicable to one share of Common Stock and the
denominator shall be such

 

79

 

current
market price per share of the Common Stock, such reduction to become effective
immediately prior to the opening of business on the later of (a) the date
following the date fixed for the payment of such distribution and (b) the date
20 days after the notice relating to such distribution is given pursuant to
Section 1306(a).

 

(f)                                    In case a tender offer made by the
Company or any Subsidiary for all or any portion of the Company’s Common Stock
shall be consummated and such tender offer shall involve an aggregate
consideration having a fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a Board
Resolution) on the last time (the “Expiration Time”) tenders may be made
pursuant to such tender offer (as it may be amended) that, together with (i)
the aggregate of the cash plus the fair market value (as determined by the
Board of Directors, whose determination shall be conclusive and described in a
Board Resolution), as of the Expiration Time, of consideration payable in
respect of any tender offer by the Company or a Subsidiary for all or any
portion of the Company’s Common Stock consummated within 12 months preceding
the Expiration Time and in respect of which no conversion price adjustment
pursuant to this paragraph (f) has been made and (ii) the aggregate amount of
any distributions to all holders of the Company’s Common Stock made exclusively
in cash within the 12 months preceding the Expiration Time and in respect of
which no conversion price adjustment pursuant to paragraph (e) of this
Section has been made, exceeds 12.5% of the product of the current market
price per share (determined as provided in paragraph (h) of this Section) of
the Common Stock on the Expiration Time times the number of shares of Common
Stock outstanding (including any tendered shares) on the Expiration Time, the
conversion price shall be reduced so that the same shall equal the price
determined by multiplying the conversion price in effect immediately prior to
the Expiration Time by a fraction of which the numerator shall be (i) the
product of the current market price per share (determined as provided in
paragraph (h) of this Section) of the Common Stock on the Expiration Time times
the number of shares of Common Stock outstanding (including any tendered
shares) on the Expiration Time minus (ii) the fair market value (determined as
aforesaid) of the aggregate consideration payable to stockholders based on the
acceptance (up to any maximum specified in the terms of the tender offer) of
all shares validly tendered and not withdrawn as of the Expiration Time (the
shares deemed so accepted, up to any such maximum, being referred to as the
“Purchased Shares”) and the denominator shall be the product of (i) such
current market price per share on the Expiration Time times (ii) such number of
outstanding shares on the Expiration Time minus the number of Purchased Shares,
such reduction to become effective immediately prior to the opening of business
on the day following the Expiration Time.

 

(g)                                 The reclassification of Common Stock
into securities other than Common Stock (other than any reclassification upon a
consolidation or merger to which Section 1311 applies) shall be deemed to
involve (i) a distribution of such securities other than Common Stock to all
holders of Common Stock (and the

 

80

 

effective
date of such reclassification shall be deemed to be “the date fixed for the
determination of shareholders entitled to receive such distribution” within the
meaning of paragraph (d) of this Section), and (ii) a subdivision or
combination, as the case may be, of the number of shares of Common Stock
outstanding immediately prior to such reclassification into the number of
shares of Common Stock outstanding immediately thereafter (and the effective
date of such reclassification shall be deemed to be “the day upon which such
subdivision becomes effective” or “the day upon which such combination becomes
effective”, as the case may be, and “the day upon which such subdivision or
combination becomes effective” within the meaning of paragraph (c) of this
Section). Rights or warrants issued by the Company to all holders of its Common
Stock entitling the holders thereof to subscribe for or purchase shares of Common
Stock, which rights or warrants (i) are deemed to be transferred with such
shares of Common Stock, (ii) are not exercisable and (iii) are also issued in
respect of future issuances of Common Stock, in each case in clauses (i)
through (iii) until the occurrence of a specified event or events (“Trigger
Event”), shall for purposes of this Section 1304 not be deemed issued
until the occurrence of the earliest Trigger Event.

 

(h)                                 For the purpose of any calculation
under paragraphs (b), (d) and (e) of this Section, the current market price per
share of Common Stock on any date shall be deemed to be the average of the
Closing Prices for the 15 consecutive Trading Days selected by the Company
commencing not more than 20 Trading Days before, and ending not later than the
day in question, provided, however, that (i) if the “ex” date for any event
(other than the issuance or distribution requiring such computation) that
requires an adjustment to the conversion price pursuant to paragraph (a), (b),
(c), (d), (e) or (f) above occurs on or after the 20th Trading Day prior to the
day in question and prior to the “ex” date for the issuance or distribution
requiring such computation, the Closing Price for each Trading Day prior to the
“ex” date for such other event shall be adjusted by multiplying such Closing
Price by the same fraction by which the conversion price is so required to be
adjusted as a result of such other event, (ii) if the “ex” date for any event
(other than the issuance or distribution requiring such computation) that
requires an adjustment to the conversion price pursuant to paragraph (a), (b),
(c), (d), (e) or (f) above occurs on or after the “ex” date for the issuance or
distribution requiring such computation and on or prior to the day in question,
the Closing Price for each Trading Day on and after the “ex” date for such
other event shall be adjusted by multiplying such Closing Price by the
reciprocal of the fraction by which the conversion price is so required to be
adjusted as a result of such other event, and (iii) if the “ex” date for the
issuance or distribution requiring such computation is on or prior to the day
in question, after taking into account any adjustment required pursuant to
clause (ii) of this proviso, the Closing Price for each Trading Day on or after
such “ex” date shall be adjusted by adding thereto the amount of any cash and
the fair market value on the day in question (as determined by the Board
Directors in a manner consistent with any determination of such value for
purposes of paragraph (d) or (e) of this Section, whose determination shall be
conclusive and described in a Board Resolution) of the

 

81

 

evidences
of indebtedness, shares of capital stock or assets being distributed applicable
to one share of Common Stock as of the close of business on the day before such
“ex” date. For the purpose of any computation under paragraph (f) of this
Section, the current market price per share of Common Stock on any date shall
be deemed to be the average of the daily Closing Prices for the 15 consecutive
Trading Days selected by the Company commencing on or after the latest (the
“Commencement Date”) of (i) the date 20 Trading Days before the date in
question, (ii) the date of commencement of the tender offer requiring such
computation and (iii) the date of the last amendment, if any, of such tender
offer involving a change in the maximum number of shares for which tenders are
sought or a change in the consideration offered, and ending not later than the
Expiration Time of such tender offer; provided, however, that if the “ex” date
for any event (other than the tender offer requiring such computation) that
requires an adjustment to the conversion price pursuant to paragraph (a), (b),
(c), (d), (e) or (f) above occurs on or after the Commencement Date and prior
to the Expiration Time for the tender offer requiring such computation, the
Closing Price for each Trading Day prior to the “ex” date, for such other event
shall be adjusted by multiplying such Closing Price by the same fraction by
which the conversion price is so required to be adjusted as a result of such
other event. For purposes of this paragraph, the term “ex” date, (i) when used
with respect to any issuance or distribution, means the first date on which the
Common Stock trades regular way on the relevant exchange or in the relevant
market from which the Closing Price was obtained without the right to receive
such issuance or distribution, (ii) when used with respect to any subdivision
or combination of shares of Common Stock, means the first date on which the
Common Stock trades regular way on such exchange or in such market after the
time at which such subdivision or combination becomes effective, and (iii) when
used with respect to any tender offer means the first date on which the Common
Stock trades regular way on such exchange or in such market after the
Expiration Time of such tender offer.

 

(i)                                     No adjustment in the conversion
price shall be required unless such adjustment would require an increase or
decrease of at least 1% in such price; provided, however, that any adjustment
which by reason of this paragraph (i) is not required to be made shall be
carried forward and taken into account in any subsequent adjustment; and
provided, further that all such adjustments  shall
be made no later than the third anniversary of the earliest date on which an
adjustment would have been made but for this paragraph (i) and all calculations
under this paragraph (i) shall be made to the nearest cent.

 

(j)                                     In addition to the adjustments in
conversion price required by paragraphs (a), (b), (c), (d), (e) and (f), of
this Section, the Company may from time to time in its discretion make such
decreases in the conversion price as it considers to be advisable in order to
avoid or diminish any federal income tax to any holders of shares of Common
Stock resulting from any dividend or distribution of stock or issuance of
rights or warrants to purchase or subscribe for stock or from any event treated
as such for federal income tax purposes or for any other reasons.

 

82

 

SECTION 1305.                                                              Notice
of Adjustments of Conversion Price. 

 

Whenever the conversion price is adjusted as
herein provided:

 

(a)                                  the Company shall compute the
adjusted conversion price in accordance with Section 1304 and shall
prepare a certificate signed by the chief financial officer or the Treasurer of
the Company setting forth the adjusted conversion price and showing in
reasonable detail the facts upon which such adjustment is based, and such
certificate shall forthwith be filed at each office or agency maintained for
the purpose of conversion of Securities pursuant to Section 1002; and

 

(b)                                 a notice stating that the conversion
price has been adjusted and

setting forth the adjusted conversion price shall forthwith be required,

and as soon as practicable after it is required, such notice shall be mailed by
the Company to all Holders at their last addresses as they shall appear in the
Securities Register.

 

SECTION 1306.                                                              Notice
of Certain Corporate Actions. 

 

In case:

 

(a)                                  the Company shall declare a dividend
(or any other distribution) on its Common Stock payable otherwise than in cash
out of its retained earnings; or

 

(b)                                 the Company shall authorize the
granting to the holders of its Common Stock of rights or warrants to subscribe
for or purchase any shares of capital stock of any class or of any other
rights; or

 

(c)                                  of any reclassification of the
Common Stock of the Company (other than a subdivision or combination of its
outstanding shares of Common Stock, or of any consolidation, merger or share
exchange to which the Company is a party and for which approval of any
shareholders of the Company is required), or of the sale or transfer of all or
substantially all of the assets of the Company; or

 

(d)                                 of the voluntary or involuntary
dissolution, liquidation or winding up of the Company;

 

then the
Company shall cause to be filed with the Trustee, and shall cause to be mailed
to all Holders at their last addresses as they shall appear in the Securities
Register, at least 20 days (or 10 days in any case specified in clause (a) or
(b) above) prior to the applicable record date hereinafter specified, a notice
stating (i) the date on which a record is to be taken for the purpose of such
dividend, distribution, rights or warrants, or, if a record is not to be taken,
the date as of which the holders of Common Stock of record to be entitled to
such dividend, distribution, rights or warrants are to be determined, or (ii)
the date on which such reclassification, consolidation, merger, share exchange,
sale, transfer, dissolution, liquidation or winding up is expected to become
effective, and the date as of which it is expected that holders of Common Stock
of record

 

83

 

shall be
entitled to exchange their shares of Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, share
exchange, sale, transfer, dissolution, liquidation or winding up. If at any
time the Trustee shall not be the conversion agent, a copy of such notice shall
also forthwith be filed by the Company with the Trustee.

 

SECTION 1307.                                                              Company
to Reserve Common Stock.

 

The Company shall at all times reserve and
keep available, free from preemptive rights, out of its authorized but unissued
Common Stock, for the purpose of effecting the conversion of Securities, the
full number of shares of Common Stock then issuable upon the conversion of all
outstanding Securities.

 

SECTION 1308.                                                              Taxes
on Conversions.

 

The Company will pay any and all taxes that
may be payable in respect of the issue or delivery of shares of Common Stock on
conversion of Securities pursuant hereto. The Company shall not, however, be
required to pay any tax which may be payable in respect of any transfer
involved in the issue and delivery of shares of Common Stock in a name other
than that of the Holder of the Security or Securities to be converted, and no
such issue or delivery shall be made unless and until the person requesting
such issue has paid to the Company the amount of any such tax, or has
established to the satisfaction of the Company that such tax has been paid.

 

SECTION 1309.                                                              Covenant
as to Common Stock. 

 

The Company covenants that all shares of
Common Stock which may be issued upon conversion of Securities will upon issue
be fully paid and non- assessable and, except as provided in Section 1308,
the Company will pay all taxes, liens and charges with respect to the issue
thereof.

 

SECTION 1310.                                                              Cancellation
of Converted Securities. 

 

All Securities delivered for conversion shall
be delivered to the Trustee to be cancelled by or at the direction of the
Trustee, which shall dispose of the same as provided in Section 309.

 

SECTION 1311.                                                              Provisions
in Case of Consolidation, Merger or Sale of Assets.

 

In case of any consolidation of the Company
with, or merger of the Company into, any other Person, any merger or
consolidation of another Person into the Company (other than a merger which
does not result in any reclassification, conversion, exchange or cancellation
of outstanding shares of Common Stock of the Company), or any sale or transfer
of all or substantially all of the assets of the Company, the Person formed by
such consolidation or resulting from such merger or which acquires such assets
or the Company, as the case may be, shall execute and deliver to the Trustee a
supplemental indenture providing that the Holder of each Security then
outstanding shall have the right thereafter, during the period such Security
shall be convertible as specified in Section 1301, to convert such
Security only into the kind and amount of securities, cash and other property
receivable upon such consolidation, merger, sale or transfer by a holder of the
number of shares of Common Stock of the Company into which such

 

84

 

Security might
have been converted immediately prior to such consolidation, merger, sale or
transfer, assuming such holder of Common Stock of the Company is not a Person
with which the Company consolidated or into which the Company merged or which
merged into the Company, or to which such sale or transfer was made, as the
case may be (a “Constituent Person”), or an Affiliate of a Constituent Person,
and failed to exercise his right of election, if any, as to the kind or amount
of securities, cash or other property receivable upon such consolidation,
merger, sale or transfer (provided that if the kind or amount of securities,
cash and other property receivable upon such consolidation, merger, sale or
transfer is not the same for each share of Common Stock of the Company in
respect of which such rights of election shall not have been exercised
(“non-electing share”), then for the purpose of this Section the kind and
amount of securities, cash and other property receivable upon such
consolidation, merger, sale or transfer by each non-electing share shall be
deemed to be the kind and amount so receivable per share by a plurality of the
non-electing shares). Such supplemental indenture shall provide for adjustments
which, for events subsequent to the effective date of such supplemental
indenture, shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article. The above provisions of this
Section shall similarly apply to successive consolidations, mergers, sales
or transfers.

 

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

 

85

 

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

 

	
   

  	
  FIRST REGIONAL BANCORP

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jack A. Sweeney

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jack A. Sweeney

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Thomas E. McCullough

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas E. McCullough

  
	
   

  	
   

  	
  Title:

  	
  Corporate Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Jeanie Mar

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jeanie Mar

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
									

 

86

 

EXHIBIT A

 

FORM OF
CERTIFICATE OF TRANSFER

 

First Regional Bancorp

1801 Century Park East

Los Angeles, CA  90067

 

Wells Fargo Bank, National Association

707 Wilshire Boulevard, 17th floor

Los Angeles, CA  90017

 

Attention: Corporate Trust Division

 

Re: 6% CONVERTIBLE SUBORDINATED DEBENTURES DUE 2023 OF FIRST REGIONAL
BANCORP

 

Reference is
hereby made to the Indenture, dated as of October 30, 2003 (the
“INDENTURE”), between First Regional Bancorp, as issuer (the “COMPANY”), and
Wells Fargo Bank, National Association, as trustee.  Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

 

                                       
(the “TRANSFEROR”) owns and proposes to transfer the Security or Securities or
interest in such Security or Securities specified in Annex A hereto, in the
principal amount of
$               
in such Security or Securities or interests (the “TRANSFER”), to
                                
(the “TRANSFEREE”) as further specified in Annex A hereto.  In connection with the Transfer, the
Transferor hereby certifies that:

 

[CHECK ALL
THAT APPLY]

 

1. o
CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
REGULATION D GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO RULE 144A.  The Transfer is being effected pursuant to
and in accordance with Rule 144A under the United States Securities Act of
1933, as amended (the “SECURITIES ACT”), and, accordingly, the Transferor
hereby further certifies that the beneficial interest or Definitive Note is
being transferred to a Person that the Transferor reasonably believed and
believes is purchasing the beneficial interest or Definitive Note for its own
account, or for one or more accounts with respect to which such Person
exercises sole investment discretion, and such Person and each such account is
a “qualified institutional buyer” within the meaning of Rule 144A in a
transaction meeting the requirements of Rule 144A and such Transfer is in
compliance with any applicable blue sky securities laws of any state of the
United States.  Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Regulation D Global Note and/or the Definitive Note and in the Indenture
and the Securities Act.

 

1

 

2. o
CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
REGULATION S TEMPORARY GLOBAL NOTE, THE REGULATION S GLOBAL NOTE OR A
DEFINITIVE NOTE PURSUANT TO REGULATION S. 
The Transfer is being effected pursuant to and in accordance with Rule
903 or Rule 904 under the Securities Act and, accordingly, the Transferor
hereby further certifies that (i) the transfer is not being made to a person in
the United States and (x) at the time the buy order was originated, the
transferee was outside the United States or such Transferor and any Person
acting on its behalf reasonably believed and believes that the Transferee was
outside the United States or (y) the transaction was executed in, on or through
the facilities of a designated offshore securities market and neither such
Transferor nor any person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling efforts
have been made in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S under the Securities Act, (iii) the transaction is not
part of a plan or scheme to evade the registration requirements of the
Securities Act, and (iv) if the proposed transfer is being made prior to the
expiration of the Restricted Period, the transfer is not being made to a U.S.
Person or for the account or benefit of a U.S. Person (other than the Initial
Purchaser).  Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on Transfer enumerated in the Private Placement Legend printed on
the Regulation S Global Note, the Temporary Regulation S Global Note and/or the
Definitive Note and in the Indenture and the Securities Act.

 

3. o
CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
THE RESTRICTED GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO ANY PROVISION OF
THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S.  The Transfer is being effected in compliance
with the transfer restrictions applicable to beneficial interests in Restricted
Global Notes and Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act and any applicable blue sky securities laws of any
state of the United States, and accordingly the Transferor hereby further
certifies that (check one):

 

(a) o such Transfer
is being effected pursuant to and in accordance with Rule 144 under the
Securities Act; or

 

(b) o such Transfer
is being effected to the Company or a subsidiary thereof; or

 

(c) o such Transfer
is being effected pursuant to an exemption from registration under the
Securities Act; or

 

(c) o such Transfer
is being effected pursuant to an effective registration statement under the
Securities Act and in compliance with the prospectus delivery requirements of
the Securities Act.

 

4. o
CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN AN
UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

 

2

 

(a) o CHECK IF
TRANSFER IF PURSUANT TO RULE 144. 
(i)  The Transfer is being
effected pursuant to and in accordance with Rule 144 under the Securities Act
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any state of the United States and
(ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act.  Upon consummation of
the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not longer be subject
to the restrictions on transfer enumerated in the Private Placement Legend
printed on the Restricted Global Notes, on Restricted Definitive Notes and in
the Indenture.

 

(b)  CHECK IF TRANSFER IS
PURSUANT TO REGULATION S.  (i) The
Transfer is being effected pursuant to and in accordance with Rule 903 or rule
904 under the Securities Act and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in
the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will
no longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

 

(c)  CHECK IF TRANSFER IF
PURSUANT TO OTHER EXEMPTION.  (i) The
Transfer is being effected pursuant to and in compliance with an exemption from
the registration requirements of the Securities Act other than Rule 144, Rule
903 or Rule 904 and in compliance with the transfer restrictions in the Indenture
and any applicable blue sky securities laws of any State of the United States
and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act.  Upon consummation
of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Global Notes or Restricted Definitive Notes and in the
Indenture.

 

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

 

	
   

  	
   

  	
   

  
	
   

  	
  [Insert Name
  of Transferor]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
								

 

3

 

ANNEX A TO
CERTIFICATE OF TRANSFER

 

1.  The Transferor owns and
proposes to transfer the following:

[CHECK ONE OF
(a) OR (b)

 

(a)                                  o
a beneficial interest in the:

(i)                                     o
Regulation D Global Note (CUSIP
         ), or

 

(ii)                                  o
Regulation S Global Note (CUSIP
         ), or

 

(iii)                               o
Restricted Global Note (CUSIP
         ); or

 

(b)                                 o
a Restricted Definitive Note.

 

2.  After the Transfer the
Transferee will hold:

[CHECK ONE]

 

(a)                                  o
a beneficial interest in the:

(i)                                     o
Regulation D Global Note (CUSIP
         ), or

 

(ii)                                  o
Regulation S Global Note (CUSIP
         ), or

 

(iii)                               o
Restricted Global Note (CUSIP
         ); or

 

(iv)                              o
(CUSIP          ), or Unrestricted
Global Note (CUSIP          ); or

 

(b)                                 o
a Restricted Definitive Note; or

 

(c)                                  o
an Unrestricted Definitive Note.

 

in accordance with the terms of the Indenture.

 

4

 

EXHIBIT B

 

FORM OF
CERTIFICATE OF TRANSFER OR EXCHANGE

 

First Regional Bancorp

1801 Century Park East

Los Angeles, CA  90067

 

Wells Fargo Bank, National Association

707 Wilshire Boulevard, 17th floor

Los Angeles, CA  90017

 

Attention: Corporate Trust Division

 

Re: 6% CONVERTIBLE SUBORDINATED DEBENTURES DUE 2023 OF FIRST REGIONAL
BANCORP

 

Reference is
hereby made to the Indenture, dated as of October 30, 2003 (the
“INDENTURE”), between First Regional Bancorp, as issuer (the “COMPANY”), and
Wells Fargo Bank, National Association, as trustee.  Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

 

                               
(the “OWNER”) owns and proposed to exchange the Security or Securities
specified herein, in the principal amount of
$                       
in such Security or Securities or interests (the “EXCHANGE”).  In connection with the Exchange, the Owner
hereby certifies that:

 

1.  EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR
BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES
OR BENEFICIAL INTERESTS IN AN UNRESTRICTED GLOBAL NOTE

 

(a)  o
CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE.  In connection with the Exchange of the Owner’s beneficial interest
in a Restricted Global Note for a beneficial interest in an Unrestricted Global
Note in an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Global Notes and pursuant to and in accordance
with the United States Securities Act of 1933, as amended (the “SECURITIES
ACT”), (iii) the restriction on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the beneficial interest in an Unrestricted Global
Note is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States.

 

(b)  o
CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
UNRESTRICTED DEFINITIVE NOTE.  In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for an

 

 

Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the Definitive
Note is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States.

 

(c)  o
CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL INTEREST IN
AN UNRESTRICTED GLOBAL NOTE.  In
connection with the Owner’s Exchange of a Restricted Definitive Note for a
beneficial interest in an Unrestricted Global Note, the Owner hereby certifies
(i) the beneficial interest is being acquired for the Owner’s own account
without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to
and in accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act, and (iv) the beneficial
interest is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

(d)  o
CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO UNRESTRICTED DEFINITIVE
NOTE.  In connection with the Owner’s
Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note,
the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to restricted
Definitive Notes and pursuant to and in accordance with the Securities Act,
(iii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the Unrestricted Definitive Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.

 

2.  EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR
BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTE
OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTE

 

(a)  o
CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
RESTRICTED DEFINITIVE NOTE.  In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a Restricted Definitive Note with an equal principal amount,
the Owner hereby certifies that the Restricted Definitive Note is being
acquired for the Owner’s own account without transfer.  Upon consummation of the proposed Exchange
in accordance with the terms of the Indenture, the restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Definitive Note and
in the Indenture and the Securities Act.

 

(b)  o
CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL INTEREST ON
A RESTRICTED GLOBAL NOTE.  In connection
with the Exchange of the Owner’s Restricted Definitive Note for a beneficial
interest in the [CHECK

 

 

ONE] o Regulation D
Global Note, o Regulation S
Global Note, o Restricted
Global Note, with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued will be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

 

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

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [Insert Name
  of Owner]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  
	
  Dated:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]