Document:

Exhibit
10.17

DATED JUNE 16, 2006

Between

MONCEAU
DEELNEMINGEN I B.V.

(as
Purchaser)

BLYTH
HOLDING B.V.

(as
Seller)

and

BLYTH,
INC.

(as
Guarantor)

SHARE
SALE AND PURCHASE AGREEMENT

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THIS SHARE SALE AND PURCHASE
AGREEMENT is made on this 16th day of June 2006 (the “Agreement”)

Between:

(1)                                  MONCEAU DEELNEMINGEN I B.V., a private
limited liability company organized and existing under the laws of The
Netherlands with its registered office in ‘s-Gravenhage and its principal place
of business at Adriaan Pauwstraat 51, 2582 AP in ‘s-Gravenhage, The Netherlands
(the “Purchaser”); and

(2)                                  BLYTH HOLDING B.V., a private limited
liability company organized and existing under the laws of The Netherlands with
its registered office in Tilburg and its principal place of business at
Gesworenhoekseweg 8, 5047 TM in Tilburg, The Netherlands (the “Seller”);

(3)                                  BLYTH, INC., a corporation organized and
existing under the laws of the state of Delaware, United States of America,
with its principal place of business at One East Weaver Street, Greenwich, CT
06831, United States of America (“Blyth” or
the “Guarantor”);

WHEREAS :

(A)                              Seller
is the legal and beneficial owner of the entire issued share capital of (i)
Schothuis Holding Holland (S.H.H.) B.V., a private limited liability company
organized and existing under the laws of The Netherlands with its registered
office at Almere and its principal place of business at De Steiger 77, 1351 AE,
Almere, The Netherlands (“Schothuis”)
and (ii) Edelman B.V., a private limited liability company organized and
existing under the laws of The Netherlands with its registered office at
Reeuwijk and its principal place of business at Schinkeldijk 56, 2811 PB,
Reeuwijk, The Netherlands (“Edelman”).
Schothuis and Edelman will hereinafter be collectively referred to as the “Companies”.

(B)                                Schothuis
owns the total issued share capital of the Dutch Subsidiaries.

(C)                                Edelman
owns, directly or indirectly, the total issued share capital of the Foreign
Subsidiaries.

(D)                               The
Companies, the Dutch Subsidiaries and the Foreign Subsidiaries (collectively: “the Group” or “Group Companies”) are in the business of designing, developing
and importing products for interior and exterior decoration.

(E)                                 The
Seller and the Purchaser have agreed that the Seller shall sell and transfer to
the Purchaser and the Purchaser shall purchase and acquire from Seller 100% of
the total issued share capital of the Companies, consisting of 40 shares, par
value €453.78 per share, numbered 1 to 40 for Schothuis and 1000 shares,
nominal value €453.78 per share, numbered 1 to 1000 for Edelman (collectively:
the “Shares”), all for the
consideration and on the terms and subject to the conditions contained in this
Agreement.

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(F)                                 The
Parties have notified the administrator of the SER Merger Committee pursuant to
the SER Merger Code 2000.

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THEREFORE IT IS HEREBY AGREED as
follows:

ARTICLE 1 - DEFINITIONS AND
INTERPRETATION

1.1                                 Definitions.
In this Agreement, unless the context otherwise requires, the words and
expressions used in this Agreement shall have the meanings set out in Schedule
1.

1.2                                 Headings.
Headings are inserted for convenience only and shall not affect the
construction of this Agreement.

ARTICLE 2
- SALE AND PURCHASE OF THE SHARES

2.1                                 Sale and Purchase. The
Seller hereby, subject to the terms and conditions of the Agreement, sells (“verkoopt”) the Shares to Purchaser, and
Purchaser hereby, subject to the terms and conditions of this Agreement,
purchases (“koopt”) the Shares
from the Seller, together with all rights attaching to them, free of any
Encumbrances.

2.2                                 Transfers. At Closing,
the Seller agrees to transfer (“leveren”)
to Purchaser the Shares and the Purchaser agrees to accept the transfer from
Seller.

ARTICLE 3 –
CONSIDERATION, REPAYMENT AND ASSUMPTION OF INDEBTEDNESS 

3.1                                Purchase
Price. The consideration for the Shares shall be €30,500,0000 (Thirty
Million Five Hundred Thousand Euros) (the “Consideration”).

3.2                                 Tax
settlement

a.                             The Companies and the Dutch Subsidiaries form
part of the fiscal unity for corporate income tax purposes which is headed by
the Seller. The Parties have agreed to terminate the fiscal unity as per the
Completion Date.

b.                            The Seller undertakes to submit its tax
returns related to the period until the Completion Date in a manner consistent
with past practices (which includes the leading principle that valuation for
tax purposes is equal to valuation for commercial purposes) and to refrain from
submitting altered tax returns related to the period prior to Completion which
could have an adverse effect to the tax position of the Companies and the Dutch
Subsidiaries..

c.                             The Seller owes the Companies and the Dutch
Subsidiaries the difference between (i) the prepayments made by the Companies
and the Dutch Subsidiaries to the Seller in respect of corporate income tax
attributable to the Companies and the Dutch Subsidiaries for the financial year
2005 and (ii) the amount of corporate income tax

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attributable to the
Companies and the Dutch Subsidiaries in respect of the financial years 2005 as
apparent from the tax returns for the financial year 2005 as agreed between the
Parties; the receivable by the Companies and the Dutch Subsidiaries in this
respect is estimated to amount to €1,030,000 (the “2005 Tax  Receivable”).

d.                            The Companies and the Dutch Subsidiaries
estimate the income for corporate income tax purposes attributable to them for
the period between 1 January 2006 until the Completion Date (“2006 YTD”) to be negative as a result of
which the Seller owes to the Companies and the Dutch Subsidiaries the
prepayments made by the Companies and the Dutch Subsidiaries to the Seller in
respect of 2006 YTD being an amount of € 533,204 (the “2006 YTD Tax Receivable”).

e.                             In addition the Seller may be entitled to a
tax loss carry back in respect of the losses incurred by the Companies and the
Dutch Subsidiaries during the financial year 2006 until the Completion Date
(the “2006 YTD Carry Back”). The
Companies and the Dutch Subsidiaries expect the 2006 YTD Carry Back based upon
management information until May 2006 to amount to € 617,000. Seller confirms
that the fiscal result of the fiscal unity headed by the Seller is - without taking
into account the result of the Companies and the Dutch Subsidiaries - negative.

f.                               The Seller and the Purchaser hereby agree to
set off the estimated 2005 Tax Receivable of € 1,030,000 against the amount
outstanding under Seller’s loan to Edelman (this loan being an amount of €
1,847,984.38. For this purpose Schothuis and the Dutch Subsidiaries assign
their part of the 2005 Tax Receivable to Edelman against nominal value which
will remain due in current account by Edelman to Schothuis and the Dutch Subsidiaries.
The Companies and the Dutch Subsidiaries shall co-sign this Agreement for this
purpose. The Purchaser shall procure that the balance of the Seller’s loan to
Edelman and the 2005 Tax Receivable shall be repaid by Edelman to Seller upon
Completion. Upon set off, the Group is discharged from any and all obligations
vis-a-vis Blyth Holding and any of its Affiliates other than those which may
result from this Agreement.

g.                            The Parties shall jointly determine the
definitive amount of the 2005 Tax Receivable ultimately on 1 September 2006
based upon the tax returns. Upon such determination, the Seller shall pay to
the Companies and the Dutch Subsidiaries the 2006 YTD Tax Receivable to be
increased or decreased as the case may be by the difference between the final
amount of the 2005 Tax Receivable and the estimate of € 1,030,000. If such
amount shall be negative (i.e. payable to the Seller by the Companies and the
Dutch Subsidiaries), then such amount shall be paid to the Seller by the
Companies and the Dutch Subsidiaries.

h.                            In
respect of the 2006 YTD Carry Back, the Parties have agreed to co-operate and
use all reasonable efforts in order to transfer the tax loss responsible for
the 2006 YTD Carry

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Back onto the
Companies and the Dutch Subsidiaries in accordance with section 15af of the
Corporate Income Tax Act. The Parties shall file for a tax ruling on June 19,
2006 and agree that any changes (if any) to the financial statements shall be
in accordance with US GAAP and any changes (if any) to the tax accounts shall
be in accordance with Dutch fiscal law. Parties agree that each party shall
bear its own costs in relation to the tax ruling. Seller shall consult and
co-operate with Purchaser in relation to the preparation of its tax returns;
and

i.                                The Seller and the Purchaser hereby agree to
reimburse one another for payments made by the Seller for the benefit of the
Companies and/or the Dutch Subsidiaries as well as for payments made by the
Companies and the Dutch Subsidiaries for the benefit of the Seller and/or its
Affiliates. These payments consist of payments made with respect to insurances
by Seller and its Affiliates on behalf of the Group up to Closing, which have
not been billed to the Group prior to Closing. These amounts will not exceed
USD 85,000. The Parties shall jointly determine the definitive amount ultimately
on 1 September 2006.

ARTICLE 4 –
CLOSING

4.1                                Place
of Closing. Closing shall take place at the offices of Houthoff Buruma, in
Rotterdam, The Netherlands on June 16, 2006 at 10:00 a.m. or at such other
place and time as shall be mutually agreed between the Parties, where all (and
not some only) of the events described in this Article 4 shall occur.

4.2                                 Seller’s
Closing obligations. At Closing, the Seller shall:

(a)                        deliver
or cause to be delivered to the Purchaser:

(i)                            a
copy of either (i) the positive unconditional written advice of the works
councils of Edelman BV and Euro-Decor BV with respect to the transactions
contemplated hereby or (ii) a positive conditional written advice of the works
councils of Edelman BV and Euro-Decor BV with respect to such transactions,
with conditions acceptable to the Purchaser in its sole discretion;

(ii)                         the
original shareholders registers of the Companies and the Dutch Subsidiaries;

(iii)                      the
share certificates or similar proof of title to the Foreign Subsidiaries;

(iv)                     a
written opinion of Baker & McKenzie, New York confirming the authority of
the person(s) signing this Agreement and the Deed of Assignment on behalf of
Blyth;

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(b)                        execute:

(i)                            the
Notarial Transfer Deed, attached hereto as Schedule 4.2 (b(i);

(ii)                         the
Funds Flow Letter, attached hereto as Schedule 4.2 (b)(ii);

(iii)                      together
with Blyth, the deed of assignment between Seller, Blyth and Purchaser,
countersigned by CDX Group B.V. (the “Deed of
Assignment”) attached hereto as Schedule 8.12;

(c)                        cause
the Companies to execute the Notarial Transfer Deed;

(d)                       authorize
the civil law notary executing the Notarial Transfer Deed to make the relevant
entries in the shareholders registers of the Companies.

4.3         Purchaser’s
Closing Obligations. At Closing, and upon the delivery of the items set out
in Article 4.2 above, the Purchaser shall:

(a)                                  execute:

(i)                                     the
Notarial Transfer Deed;

(ii)                                  the
Funds Flow Letter;

(iii)                               the
Deed of Assignment, and

(b)                       pay:

(i)                           the
Consideration; and

(ii)                        the
amount owed pursuant to Article 3.2.

ARTICLE
5 – DELETED

ARTICLE 6
- REPRESENTATIONS AND WARRANTIES 

Warranties of the
Seller. The Seller represents, warrants and undertakes (“verklaart, staat er voor in en garandeert”)
to and with the Purchaser that each of the Warranties, as set out in Schedule
6, is at the date of this Agreement true, accurate and not misleading. The
Seller and the Purchaser explicitly agree that the Warranties shall constitute
an allocation of risks between the Purchaser and the Seller to the extent that
adverse consequences from incorrect and/or incomplete Warranties shall at all
times be for the full account and liability of the Seller.

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ARTICLE 7 - REMEDIES FOR BREACHES

7.1                           Breaches
and Infringements. In the event of a breach of any of the Warranties given
by the Seller (“Breach”), the
Seller shall reimburse and hold harmless (“schadeloos
stellen”) either the Purchaser or the pertinent Group Company (at
the option of the Purchaser) for all damages, losses, reasonable costs and
expenses (“Damages”) suffered by
the pertinent Group Company as a result of the Breach, without prejudice to
other statutory rights of the Purchaser. The Parties agree that the Damages
shall include the amount necessary to put the Purchaser -or at the option of
the Purchaser, the pertinent Group Company- in a position similar to the
position the Purchaser or the Group Company would have been in without the
relevant Breach.

7.2.1                  Single
Claim under multiple Warranties. It is expressly understood that if and to
the extent an event gives rise to a Claim under more than one Warranty, the
Purchaser shall be entitled to file a Claim under any such breached Warranty as
it may deem fit, on its own behalf and/or on behalf of the pertinent Group
Company as third party beneficiary of the right to be reimbursed and held
harmless pursuant to this Article 7, provided, however, that it cannot claim
reimbursement of the same Damages twice. Also, for the avoidance of doubt it is
expressly confirmed and understood that where this Article 7 refers to “Damages
suffered by the Purchaser or a Group Company”, such damages shall not be deemed
to have been doubly incurred by both the Purchaser and the Group Company, which
means that any Damages suffered for which a Group Company is reimbursed cannot
be claimed twice by the Purchaser, and vice versa.

7.3                           Additional
Indemnity. In addition, and without prejudice to Article 7.1, the Seller
shall indemnify and hold the Purchaser and the Group harmless from any and all
Damages arising out of or in connection with:

(a)                                 any
liability of the Group for Taxes attributable to tax periods ending on or
before the Closing Date, it being clearly understood and acknowledged that this
indemnity will apply to any tax assessments or claims levied or imposed
subsequent to the Closing Date relating to tax periods ending on or before the
Closing Date;

(b)                                any
liability of the Group for Taxes up to and including the Closing for not having
applied the applicable VAT rate;

(c)                                 any
liability of the Group for obligations of Blyth and/or its affiliated companies
(other than the Group Companies);

(d)                                 all
losses, liabilities, damages, costs, claims and expenses which Edelman may
incur in relation to the payment obligations of Edelman for any salary, holiday
allowance, fringe benefits (including company car), expenses, wage and income
taxes and/or social

 8
 

 

security premiums
and other Taxes (including any related interest, fines or penalties), insurance
premiums (including contributions under the (collective) medical insurance),
bonuses (including 13th month salary and bonuses under the “Blyth Manager
Incentive Compensation Plan”), payment of overtime, (pre-)pension scheme and/or
any other pension scheme or pension fund obligations (including back-service
obligations) which Edelman must pay or is liable for as employer of Mrs H.A.A.
Lenferink-Van Dongen and all such other contributions to, or for the benefit
of, Mrs Lenferink-Van Dongen that must be paid by Edelman in its capacity as
employer of Mrs H.A.A. Lenferink-Van Dongen;

Parties have
agreed that the employment agreement of Mrs H.A.A. Lenferink-Van Dongen
(including all rights and obligations related thereto) shall be taken over by
Blyth or Blyth Holding on or before 1 July 2006. In terms of article 6:159 of
the Dutch Civil Code (contractsovername),
Edelman hereby assigns, transfers and sets over to Blyth, which hereby accepts
and takes over the employment agreement of Mrs H.A.A. Lenferink-Van Dongen,
including all rights and obligations related thereto. Parties shall procure
that Mrs H.A.A. Lenferink-Van Dongen shall give her consent as soon as
practically possible, but in any event before 1 July 2006. If the employment
agreement is not terminated or taken over on 1 July 2006, Blyth shall be liable
for and indemnify Edelman for all losses, liabilities, damages, costs, claims
and expenses (including the reasonable fees and disbursements of Edelman or
Purchaser’s counsel) which Edelman and/or Purchaser may incur pursuant to the
termination of Mrs H.A.A. Lenferink-Van Dongen’s employment agreement;

it being understood
and agreed that (i) the limitations of liability as set forth in 7.8 up to and
including 7.10 shall apply and (ii) the other limitations of liability as set
forth in this Article 7 shall not apply to this additional indemnity.

7.4                                 Limitation
of Liability. Subject to Article 7.7, the aggregate amount to which the
Seller shall be subject pursuant to this Article 7 shall be limited to the
Consideration.

7.5                                Survival.
Subject to Article 7.7, all Warranties shall survive the Closing Date until
June 16, 2011 provided, however,
that all such Warranties shall expire on such dates, except for Claims asserted
by the Purchaser prior to such dates.

7.6                                Threshold.

i)                                        The
Purchaser shall not be entitled to seek indemnification for any Claim for
Breach unless the total amount of Damages arising from such Breach exceeds €
10,000 (ten thousand Euro);

ii)                                     Subject
to Article 7.7, the Purchaser agrees not to enforce any Claim until the
aggregate amount of all Claims exceeds € 300,000 (Three Hundred Thousand Euro)

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and then the
Purchaser shall be entitled to recover all Claims (i.e., claims exceeding the
threshold as set forth in Article 7.6(i) from the first Euro).

7.7                                 Qualifications
to Limitations. If in any case a Claim has arisen by reason of:

(i)                                   fraud
or deliberate non-disclosure on the part of the Seller prior to the date of
this Agreement; or

(ii)                                  the
Seller not having title to any of the Shares to the same extent as received
pursuant to the Original Agreement;

(iii)                               breach
of any of the warranties set forth in Clause 2 under (h) and (s), 3 under (c)
and (d) and 4 under (a) of the Warranties.

then in any such case
none of the limitations set forth in Articles 7.4, 7.5 and 7.6 shall apply.

7.8                                Events
after Closing. No Claim by Purchaser for any Breach shall arise to the
extent that the Claim arises as a result of (i) any change in the accounting
principles applied by the Group subsequent to Closing, or of (ii) any changes
in applicable laws or regulations after Closing or of (iii) a new
interpretation of existing laws by a court or other public authority in a
judgement or decision published after Closing.

7.9                                Payments
received. If the Seller has made a payment for Damages and the Purchaser or
the Group simultaneously therewith or subsequently thereto receives any benefit
other than from the Seller which would not have been received but for the
circumstance giving rise to the Claim in respect of which the payment for
Damages was made by the Seller, the Purchaser shall, once it or the Group has
received the benefit, forthwith repay to the Seller an amount equal to the
lesser of the amount of such benefit and the amount paid by the Seller.

7.10                          Tax
Benefits. In assessing any Damages any corresponding Tax advantages,
savings by, or other Tax benefit to Purchaser or any Group Company shall be
taken into account when calculating the Damages, provided, however, that in the
event the Purchaser or any Group Company subsequently is not entitled to a Tax
advantage, saving or benefit determined on a stand alone basis, the amount of such
non-entitled advantage, benefit or saving shall be paid for by the Seller to
the Purchaser.

7.11                          Claim
Procedure.

(a)                                  The
Purchaser shall give the Seller written notice (the “Indemnification Notice”) of any facts and the circumstances
giving rise to a Claim within 30 days of the Purchaser’s becoming aware of the
facts and circumstances giving rise to such Claim. However, failure of the
Purchaser to give such notice within such 30-day period shall not relieve the
Seller of its liability with respect to such Claim except to the extent that
Purchaser’s

 10

 

failure to give notice within such period causes
damages to Seller (including any liability in the Seller’s ability to prevent
or mitigate Damages resulting from the Breach).

(b)                                 If
the Claim relates to a claim or the commencement of an action or proceeding by
a Third Party against (or otherwise requires any action by) the Group and/or
the Purchaser, then the Seller shall have, upon request within sixty (60) days
after receipt of the Indemnification Notice (but not in any event after the
settlement or compromise of such Claim), the right to defend, at its own
expense and by its own counsel, any such matter involving the asserted
liability of the Group and/or the Purchaser; provided, however, that if the
Group and/or the Purchaser determines that there is a reasonable probability
that a Claim may materially and adversely affect it, it shall at its own
discretion and at its own costs have the right to defend (without the
participation of the Seller), compromise or settle such claim or suit in which
event the Seller shall be timely informed of settlement negotiations, in which
event the Purchaser shall be deemed to have waived its right to seek recourse
against the Seller in relation to that particular Claim. The Party defending
the Claim shall make reasonable endeavours to strike a fair balance between the
interests of the Seller in keeping the compensation as low as possible and the
interests of the Purchaser and any of the Group Companies to maintain good
business relations with the Third Party concerned. If the Seller shall decide
that it will not defend, at its own expense and by its own counsel, any such
matter involving the asserted liability of the Group and/or the Purchaser and
the Group and/or the Purchaser shall incur Damages directly or indirectly relating
to this decision of the Seller, the Purchaser shall have full recourse against
the Seller as to the Damages incurred.

(c)                                  If
the Claim does not relate to a claim or the commencement of an action or
proceeding by a Third Party, the Seller shall have ninety (90) days after
receipt of the Indemnification Notice during which it shall have the right to
object to the subject matter and the amount of the Claim set forth in the
Indemnification Notice by delivering written notice thereof to the Purchaser.
If the Seller does not so object within such ninety-day period, it shall be
conclusively deemed to have agreed that it is obligated to indemnify Purchaser
for the matters set forth in the Indemnification Notice. If the Seller sends
notice to the Purchaser objecting to the matters set forth in the
Indemnification Notice, the Seller and the Purchaser shall use their best
efforts to settle the Claim. If the Seller and the Purchaser are unable to
settle the Claim, the matter shall be resolved in the manner set forth in
Article 12.2 of this Agreement.

(d)                                 The
Seller hereby covenants and agrees that it will (i) do its utmost effort to
withdraw any attachment on any assets of the Companies (including providing
(the necessary) securities (such as a bank guarantee)); (ii) compensate the
Purchaser and/or the Group Companies for and indemnify and hold the Purchaser
and/or the Group Companies harmless against costs (including but not limited to
the fees and disbursements of the counsel) and reimbursements pursuant to (the
withdrawal of) any

 11
 

 

attachment on any assets of the Group Companies
pursuant to a Third Party Claim, including costs with respect to the issue of a
bank guarantee, and (iii) to the extent that the Seller conducts the defence
against a claim, it shall do so to the best of its abilities and take the
Purchaser’s and the Group Companies’ interests into account.

7.12                          Repayment.
Any payment under this Article 7 shall be deemed to be a partial repayment of
the Consideration.

7.13                          Guarantor.
Blyth hereby absolutely irrevocably and unconditionally guarantees to Purchaser
and/or Group (i) the full and prompt payment when due, whether by
indemnification or otherwise, of all the payment obligations of Seller to
Purchaser and/or Group under this Agreement, and (ii) the full and prompt
payment and/or the due performance as the case may be, when due of all
warranties, indemnity obligations, covenants and agreements, both monetary and
non-monetary, by the Seller of its obligations under, and compliance by the
Seller with the terms of, the Closing Documents. The obligations of Blyth
hereunder shall constitute a direct, primary and unconditional liability to pay
on first demand to the Purchaser and/or Group any sum or sums which the Seller
may be or become liable to pay hereunder without the need for any claim or
recourse on the part of the Purchaser and/or Group against the Seller.

ARTICLE 8
- MISCELLANEOUS

8.1                                 Parties’
Costs. Each Party to this Agreement shall pay its own costs and
disbursements of and incidental to this Agreement and the sale and purchase of
the Shares, provided that all costs associated with the Notarial Transfer Deed
shall be borne by the Purchaser.

8.2                                 Notices.
Each notice, demand or other communication given or made under this Agreement
shall be in writing and delivered or sent to the relevant Party at its address
or fax number set out below (or such other address or fax number as the
addressee has by five (5) days’ prior written notice specified to the other
Parties):

	
  To the Seller and/or
  Guarantor:

  	
   

  	
  Blyth, Inc.

  
	
   

  	
   

  	
  One East Weaver
  Street

  
	
   

  	
   

  	
  Greenwich, CT
  06831-5118

  
	
   

  	
   

  	
  UNITED STATES OF
  AMERICA

  
	
   

  	
   

  	
  Telephone No:

  	
  +1 203 552 6617

  
	
   

  	
   

  	
  Facsimile No:

  	
  +1 203 661 1969

  
	
   

  	
   

  	
  Attention:

  	
  Marcia Pontius

  
	
   

  	
   

  	
   

  	
  Michael Novins

  

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  With a copy to:

  	
   

  	
  Baker & McKenzie, Attorneys at Law

  
	
   

  	
   

  	
  Postbus 2720

  
	
   

  	
   

  	
  1000 CS
  Amsterdam

  
	
   

  	
   

  	
  Telephone No:

  	
  +31 20 55 17 555

  
	
   

  	
   

  	
  Facsimile No:

  	
  +31 20 626 79 49

  
	
   

  	
   

  	
  Attention:

  	
  Jeroen Hoekstra

  
	
   

  	
   

  	
   

  	
   

  
	
  To the
  Purchaser:

  	
   

  	
  Monceau Deelnemingen I

  
	
   

  	
   

  	
  Adriaan
  Pauwstraat 51

  
	
   

  	
   

  	
  2582 AP Den Haag

  
	
   

  	
   

  	
  The Netherlands

  
	
   

  	
   

  	
  Telephone No:

  	
  +31 70 3559181

  
	
   

  	
   

  	
  Facsimile No:

  	
  +31 70 3515325

  
	
   

  	
   

  	
  Attention: 

  	
  J.H.M. Rijper

  
	
   

  	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Houthoff Buruma N.V.

  
	
   

  	
   

  	
  Postbus 1507

  
	
   

  	
   

  	
  3000 BM Rotterdam

  
	
   

  	
   

  	
  Telephone No:

  	
  +31 10 2172647

  
	
   

  	
   

  	
  Facsimile No:

  	
  +31 10 2172702

  
	
   

  	
   

  	
  Attention: 

  	
  M.F. Pannekoek

  

 

Any notice, demand
or other communication so addressed to the relevant Party shall be deemed to
have been delivered (a) if given or made by letter, when actually delivered to
the relevant address; and (b) if given or made by fax, when dispatched.

For the purpose of
serving any document (including notices and writ of summons), Blyth hereby
chooses domicile for the purposes of this Agreement at the offices of Baker
& McKenzie Amsterdam N.V. (“domicilie
keuze”).

Purchaser
acknowledges the proposed moving of Baker & McKenzie Amsterdam N.V. to
Claude Debussylaan 54, 1082 MD, Amsterdam, The Netherlands as per July 21,
2006.

8.3                                Waiver.
No failure or delay by any Party in exercising any right, power or remedy under
this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of the same preclude any further exercise thereof or the
exercise of any other right, power or remedy. Without limiting the foregoing,
no waiver by any Party of any breach by the other Party of any provision hereof
shall be deemed to be a waiver of any subsequent breach of that or any other
provision hereof.

8.4                                Assignment.
The benefit of this Agreement, or any agreement or document entered into
pursuant to this Agreement may not be assigned, unless with the prior written
consent of the other Party.

 13
 

 

8.5                                Entire
Agreement. This Agreement (together with any documents referred to herein
or executed contemporaneously or at Closing by the Parties in connection
herewith) constitutes the whole agreement between the Parties and supersedes
any previous agreements or arrangements between them relating to the subject
matter of this Agreement, including but not limited to the offer letter dated
May 10, 2006 and the acceptance letter dated May 18, 2006 and it is expressly
declared that no variations of this Agreement shall be effective unless made in
writing and executed by the Parties.

8.6                                Counterparts.
This Agreement may be executed on faxed or scanned copies and in any number of
counterparts by the parties to it on separate counterparts, each of which when
so executed and delivered shall be an original and so that all counterparts
shall together constitute one and the same instrument

8.7                                Continuity
of obligations. All the provisions of this Agreement shall remain in full
force and effect notwithstanding Closing (except insofar as they set out
obligations that have been fully performed at Closing).

8.8                                 Severability.
If any provision or part of a provision of this Agreement shall be, or be found
by any authority or court of competent jurisdiction to be, invalid or
unenforceable, such invalidity or unenforceability shall not affect the other
provisions or parts of such provisions of this Agreement, all of which shall
remain in full force and effect.

8.9                                Further
acts. The Parties agree that title 1 of Book 7 DCC is not applicable to
this Agreement.

8.10                          Rescission.
At the Closing Date Purchaser, Seller and Blyth shall be deemed to have waived
their right to rescind (“ontbinden”) this Agreement (without any specific
action being further required).

8.11                          Purchaser’s
Warranties.

The Purchaser
represents and warrants the following to the Seller:

(a)                                The
Purchaser has full power and
authority, corporate and otherwise, (i) to enter into the Agreement and each
other agreement, instrument or document referred to in the Agreement to which
the Purchaser is a party or which the Purchaser is otherwise required to
execute at or prior to the Closing pursuant to the Agreement (collectively the
“Closing Documents”), (ii) to
perform its respective obligations under the Closing Documents and (iii) to
consummate the transactions contemplated by the Closing Documents.

(b)                               The
execution by the Purchaser of the Closing Documents, the performance by the
Purchaser of its respective obligations thereunder and the consummation by
Purchaser

 14
 

 

of the
transactions contemplated thereby have been duly and validly authorized by all
necessary corporate action on the part of the Purchaser.

(c)                                The
Purchaser has duly executed the Agreement, and the Agreement constitutes, and
each of the other Closing Documents will upon execution thereof constitute, the
valid and legally binding agreement of the Purchaser, enforceable against the
Purchaser in accordance with its terms.

(d)                               The
execution of the Agreement by the Purchaser does not violate, conflict with or
result in a breach of any provision of, or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under,
or result in the termination of, or accelerate the performance required by, or
result in a right of termination or acceleration under, or result in the
creation of any Encumbrance upon any of the properties or assets of the Purchaser
under any of the terms, conditions or provisions of (i) the Articles of
Association or similar documents governing the Purchaser, (ii) any statute,
law, ordinance, rule, regulation, judgement, decree, order, injunction, writ,
permit or license of any court or governmental authority applicable to the
Purchaser or (iii) any note, bond, mortgage, indenture, deed of trust, license,
franchise, permit, concession, contract, lease or other instrument, obligation
or agreement of any kind to which the Purchaser is now a party or by which the
Purchaser may be bound.

(e)                                No
declaration, filing or registration with, notice to, authorisation or consent
or approval of, any court, governmental or regulatory body or authority or any
other person is necessary in connection with (i) the execution of any Closing
Document by the Purchaser or (ii) the consummation by the Purchaser of any of
the transactions contemplated thereby.

8.12                          Assignment
claim on CDX. As set out in Schedule 8.12, Seller and Blyth have
assigned and transferred to Purchaser, which therein accepted, all rights and
claims (together with all rights (e.g. accessory rights, right of priority and
enforcement) and actions attaching to them) which Blyth and/or Seller may have
against CDX Group B.V. pursuant to the share sale and purchase agreement (dated
10 September 2004) between Seller, Blyth and CDX Group B.V. By countersigning
such transfer agreement CDX Group B.V. approved of the transfer and assignment
of the claim(s) of Seller and Blyth to Purchaser.

ARTICLE 9
- RESTRICTION ON ANNOUNCEMENTS

The Parties hereto
undertake that prior to Closing and thereafter they will not (save as required
by law, including the regulations of the Securities and Exchange Commission
with respect to public disclosure of the entry into this agreement and the pro forma effect of this transaction on
the financial statements of Blyth) make any announcement in connection with

 15
 

 

this Agreement,
unless Seller and Purchaser hereto shall have given their written consent to
such announcement (which consent may not be unreasonably withheld and may be
given either generally or in a specific case or cases and may be subject to
conditions).

ARTICLE
10 - CONFIDENTIAL INFORMATION

10.1                           Non-disclosure.
The Parties undertake that they shall treat as strictly confidential all
Confidential Information received or obtained by them or their employees,
agents or advisers as a result of entering into or performing this Agreement
including information relating to the provisions of this Agreement, the negotiations
leading up to this Agreement, the subject matter of this Agreement or the
business or affairs of each of the Parties or any member of their group and
subject to the provisions of Article 10.2 that they will not at any time
hereafter make use of or disclose or divulge to any person any such
Confidential Information and shall use their best endeavours to prevent the
publication or disclosure of any such information.

10.2                           Exceptions.
The restrictions contained in Article 10.1 shall not apply so as to prevent the
Parties from making any disclosure required by law or by any securities
exchange (including the regulations of the Securities and Exchange Commission
with respect to public disclosure of the entry into this agreement and the pro forma effect of this transaction on
the financial statements of Blyth) or supervisory or regulatory or governmental
body pursuant to rules to which the relevant Party is subject or from making
any disclosure to any professional adviser for the purposes of obtaining advice
(provided always that the provisions of this Article shall apply to and the
Parties shall procure that they apply to, and are observed in relation to, the
use or disclosure by such professional adviser of the information provided to
him) nor shall the restrictions apply in respect of any information which comes
into the public domain otherwise than by a breach of this Article by the
Parties.

ARTICLE 11
– COOPERATION WITH RESPECT TO TAX AND FINANCIAL INFORMATION

11.1                          Cooperation.  Purchaser shall cooperate fully, as and to
the extent reasonably requested in writing by the Seller, in connection with
the preparation and filing of tax returns and any audit or other proceeding
with respect to taxes and the preparation of financial statements and any audit
thereof.

Such cooperation
shall include the prompt signing of any returns, amended returns, claims or
other documents necessary for the other party to accurately and timely satisfy
its United States, state and/or foreign tax reporting obligations.  Such cooperation shall also include the
prompt provision of financial records and information which are relevant to any
tax reporting obligations of the other party or preparation of financial
statements.  Purchaser shall make its and
the relevant group Company’s employees (or other delegates and advisors)
available on a mutually convenient basis to the other party in order to provide
additional information and explanation of

 16
 

 

any material
provided hereunder.  Moreover, Purchaser
shall use its best efforts to deliver a final set of closing financial
statements with respect to the Group by July 14, 2006, which shall under no
circumstances be delivered later than 5 working days after July 14, 2006.

11.2                          Expenses.
Notwithstanding any other provision hereof, each party will bear its own
expenses in complying with the foregoing provisions. However, Blyth and Seller
shall pay and/or reimburse the costs, disbursements and (out of pocket)
expenses charged by a third party (e.g. auditor/accountant/tax advisor) and
incurred by Purchaser and/or any of the Group Companies in relation to the
cooperation pursuant to this Article 11 and the preparation, execution and
carrying into effect of this Article 11.

ARTICLE 12 - GOVERNING LAW AND
ARBITRATION

12.1                          Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of The Netherlands.

12.2                          Arbitration.
All disputes arising in connection with this Agreement, or further agreements
or contracts resulting thereof, shall be finally settled in accordance with the
Arbitration Rules of the Netherlands Arbitration Institute (“Nederlands Arbitrage Instituut”). The
arbitral tribunal shall be composed of three arbitrators. The place of
arbitration shall be Amsterdam. The arbitral procedure shall be conducted in
the English language. The arbitral tribunal shall decide according to the rules
of law (“naar de regelen des rechts”).
Consolidation of the arbitral proceedings with other arbitral proceedings
pending in The Netherlands, as provided in art. 1046 of The Netherlands Code of
Civil Procedure is excluded.

 17

 

IN WITNESS WHEREOF this Agreement has been
executed on the day and year first above written.

 

	
  The Purchaser:

  	
   

  	
  The Companies and the Dutch Subsidiaries 

  
	
  MONCEAU
  DEELNEMINGEN I B.V. 

  	
   

  	
  SCHOTHUIS HOLDING HOLLAND (S.H.H)
  B.V. SC 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Joseph Hendrikus
  Maria Rijper

  	
   

  	
  By:

  	
  Ronald van Veen 

  
	
  Title:

  	
  Managing
  Director

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Seller:

  	
   

  	
   

  
	
  BLYTH
  HOLDING B.V.

  	
   

  	
  EDELMAN B.V.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Robert Jeffrey
  Carr 

  	
   

  	
  By:

  	
  Ronald van Veen

  
	
  Title:

  	
  Managing
  Director

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Guarantor:

  	
   

  	
   

  
	
  BLYTH,
  INC.

  	
   

  	
  EURO-DECOR B.V.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Robert Barghaus 

  	
   

  	
  By:

  	
  Ronald van Veen 

  
	
  Title:

  	
  Vice President
  and Chief Financial Officer

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SEMFAR
  B.V.

  	
   

  	
  SEMFAR B.V.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  Ronald van Veen 

  
	
  Title:

  	
  Managing
  Director

  	
   

  	
  Title:

  	
  Managing DirectorExhibit 4.4

FORM OF

VITAL IMAGES, INC.

INDENTURE

Dated as of

[Name of Trustee]

Trustee

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I

  	
   

  
	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Definitions

  	
  1

  
	
  Section 1.2.

  	
  Other Definitions

  	
  4

  
	
  Section 1.3.

  	
  Incorporation by Reference of Trust Indenture Act

  	
  4

  
	
  Section 1.4.

  	
  Rules of Construction

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
  THE SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Issuable in Series

  	
  5

  
	
  Section 2.2.

  	
  Establishment of Terms of Series of Securities

  	
  5

  
	
  Section 2.3.

  	
  Execution and Authentication

  	
  6

  
	
  Section 2.4.

  	
  Registrar and Paying Agent

  	
  7

  
	
  Section 2.5.

  	
  Paying Agent to Hold Money in Trust

  	
  7

  
	
  Section 2.6.

  	
  Securityholder Lists

  	
  8

  
	
  Section 2.7.

  	
  Transfer and Exchange

  	
  8

  
	
  Section 2.8.

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
  8

  
	
  Section 2.9.

  	
  Outstanding Securities

  	
  8

  
	
  Section 2.10.

  	
  Treasury Securities

  	
  9

  
	
  Section 2.11.

  	
  Temporary Securities

  	
  9

  
	
  Section 2.12.

  	
  Cancellation

  	
  9

  
	
  Section 2.13.

  	
  Defaulted Interest

  	
  9

  
	
  Section 2.14.

  	
  Global Securities

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
  REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Notice to Trustee

  	
  10

  
	
  Section 3.2.

  	
  Selection of Securities to be Redeemed

  	
  10

  
	
  Section 3.3.

  	
  Notice of Redemption

  	
  11

  
	
  Section 3.4.

  	
  Effect of Notice of Redemption

  	
  11

  
	
  Section 3.5.

  	
  Deposit of Redemption Price

  	
  11

  
	
  Section 3.6.

  	
  Securities Redeemed in Part

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Payment of Principal and Interest

  	
  11

  
	
  Section 4.2.

  	
  SEC Reports

  	
  11

  
	
  Section 4.3.

  	
  Compliance Certificate

  	
  12

  
	
  Section 4.4.

  	
  Stay, Extension and Usury Laws

  	
  12

  
	
  Section 4.5.

  	
  Corporate Existence

  	
  12

  
	
  Section 4.6.

  	
  Taxes

  	
  12

  

 

 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
  SUCCESSORS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  When Company May Merge, Etc.

  	
  12

  
	
  Section 5.2.

  	
  Successor Corporation Substituted

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
  DEFAULTS AND
  REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  Events of Default

  	
  13

  
	
  Section 6.2.

  	
  Acceleration of Maturity; Rescission and Annulment

  	
  14

  
	
  Section 6.3.

  	
  Collection of Indebtedness and Suits for Enforcement
  by Trustee

  	
  14

  
	
  Section 6.4.

  	
  Trustee May File Proofs of Claim

  	
  15

  
	
  Section 6.5.

  	
  Trustee May Enforce Claims Without Possession of
  Securities

  	
  15

  
	
  Section 6.6.

  	
  Application of Money Collected

  	
  15

  
	
  Section 6.7.

  	
  Limitation on Suits

  	
  16

  
	
  Section 6.8.

  	
  Unconditional Right of Holders to Receive Principal
  and Interest

  	
  16

  
	
  Section 6.9.

  	
  Restoration of Rights and Remedies

  	
  16

  
	
  Section 6.10.

  	
  Rights and Remedies Cumulative

  	
  16

  
	
  Section 6.11.

  	
  Delay or Omission Not Waiver

  	
  16

  
	
  Section 6.12.

  	
  Control by Holders

  	
  16

  
	
  Section 6.13.

  	
  Waiver of Past Defaults

  	
  17

  
	
  Section 6.14.

  	
  Undertaking For Costs

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
  Duties of Trustee

  	
  17

  
	
  Section 7.2.

  	
  Rights of Trustee

  	
  18

  
	
  Section 7.3.

  	
  Individual Rights of Trustee

  	
  19

  
	
  Section 7.4.

  	
  Trustee’s Disclaimer

  	
  19

  
	
  Section 7.5.

  	
  Notice of Defaults

  	
  19

  
	
  Section 7.6.

  	
  Reports by Trustee to Holders

  	
  19

  
	
  Section 7.7.

  	
  Compensation and Indemnity

  	
  19

  
	
  Section 7.8.

  	
  Replacement of Trustee

  	
  20

  
	
  Section 7.9.

  	
  Successor Trustee by Merger, Etc.

  	
  20

  
	
  Section 7.10.

  	
  Eligibility; Disqualification

  	
  20

  
	
  Section 7.11.

  	
  Preferential Collection of Claims Against Company

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
  SATISFACTION AND
  DISCHARGE; DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
  Satisfaction and Discharge of Indenture

  	
  20

  
	
  Section 8.2.

  	
  Application of Trust Funds; Indemnification

  	
  21

  
	
  Section 8.3.

  	
  Legal Defeasance of Securities of Any Series

  	
  22

  
	
  Section 8.4.

  	
  Covenant Defeasance

  	
  23

  
	
  Section 8.5.

  	
  Repayment to Company

  	
  23

  

 

 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
  AMENDMENTS AND
  WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
  Without Consent of Holders

  	
  24

  
	
  Section 9.2.

  	
  With Consent of Holders

  	
  24

  
	
  Section 9.3.

  	
  Limitations

  	
  24

  
	
  Section 9.4.

  	
  Compliance with Trust Indenture Act

  	
  25

  
	
  Section 9.5.

  	
  Revocation and Effect of Consents

  	
  25

  
	
  Section 9.6.

  	
  Notation on or Exchange of Securities

  	
  25

  
	
  Section 9.7.

  	
  Trustee Protected

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
  Trust Indenture Act Controls

  	
  25

  
	
  Section 10.2.

  	
  Notices

  	
  25

  
	
  Section 10.3.

  	
  Communication by Holders with other Holders

  	
  26

  
	
  Section 10.4.

  	
  Certificate and Opinion as to Conditions Precedent

  	
  26

  
	
  Section 10.5.

  	
  Statements Required in Certificate or Opinion

  	
  26

  
	
  Section 10.6.

  	
  Rules by Trustee and Agents

  	
  27

  
	
  Section 10.7.

  	
  Legal Holidays

  	
  27

  
	
  Section 10.8.

  	
  No Recourse Against Others

  	
  27

  
	
  Section 10.9.

  	
  Counterparts

  	
  27

  
	
  Section 10.10.

  	
  Governing Laws

  	
  27

  
	
  Section 10.11.

  	
  No Adverse Interpretation of Other Agreements

  	
  27

  
	
  Section 10.12.

  	
  Successors

  	
  27

  
	
  Section 10.13.

  	
  Severability

  	
  27

  
	
  Section 10.14.

  	
  Table of Contents, Headings, Etc.

  	
  27

  
	
  Section 10.15.

  	
  Securities in a Foreign Currency or in ECU

  	
  27

  
	
  Section 10.16.

  	
  Judgment Currency

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  
	
  SINKING FUNDS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.1.

  	
  Applicability of Article

  	
  28

  
	
  Section 11.2.

  	
  Satisfaction of Sinking Fund Payments with
  Securities

  	
  28

  
	
  Section 11.3.

  	
  Redemption of Securities for Sinking Fund

  	
  29

  

 

 

VITAL IMAGES, INC.

Reconciliation and tie between Trust Indenture Act of
1939 and Indenture, dated as of                       

	
  Section. 310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.10

  
	
  Section. 311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  Not Applicable

  
	
  Section. 312(a)

  	
   

  	
  2.6

  
	
  (b)

  	
   

  	
  10.3

  
	
  (c)

  	
   

  	
  10.3

  
	
  Section. 313(a)

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
  7.6

  
	
  (b)(2)

  	
   

  	
  7.6

  
	
  (c)(1)

  	
   

  	
  7.6

  
	
  (d)

  	
   

  	
  7.6

  
	
  Section. 314(a)

  	
   

  	
  4.2, 10.5

  
	
  (b)

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
  10.4

  
	
  (c)(2)

  	
   

  	
  10.4

  
	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
  10.5

  
	
  (f)

  	
   

  	
  Not Applicable

  
	
  Section. 315(a)

  	
   

  	
  7.1

  
	
  (b)

  	
   

  	
  7.5

  
	
  (c)

  	
   

  	
  7.1

  
	
  (d)

  	
   

  	
  7.1

  
	
  (e)

  	
   

  	
  6.14

  
	
  Section. 316(a)

  	
   

  	
  2.10

  
	
  (a)(1)(A)

  	
   

  	
  6.12

  
	
  (a)(1)(B)

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
  6.8

  
	
  Section. 317(a)(1)

  	
   

  	
  6.3

  
	
  (a)(2)

  	
   

  	
  6.4

  
	
  (b)

  	
   

  	
  2.5

  
	
  Section. 318(a)

  	
   

  	
  10.1

  

 

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

 

INDENTURE

Indenture dated as of                         
between Vital Images, Inc., a Minnesota corporation (“Company”), and [Name of
Trustee], a                              
(“Trustee”).

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the
Securities issued under this Indenture.

ARTICLE I

DEFINITIONS
AND INCORPORATION BY REFERENCE

Section
1.1. Definitions.

“Additional Amounts” means any additional amounts
which are required hereby or by any Security, under circumstances specified
herein or therein, to be paid by the Company in respect of certain taxes
imposed on Holders specified therein and which are owing to such Holders.

“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” (including, with correlative meanings, the terms “controlled
by” and “under common control with”), as used with respect to any person, shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of such person, whether through the
ownership of voting securities or by agreement or otherwise.

“Agent” means any Registrar, Paying Agent or Service
Agent.

“Authorized Newspaper” means a newspaper in an
official language of the country of publication customarily published at least
once a day for at least five days in each calendar week and of general
circulation in the place in connection with which the term is used. If it shall
be impractical in the opinion of the Trustee to make any publication of any
notice required hereby in an Authorized Newspaper, any publication or other
notice in lieu thereof that is made or given by the Trustee shall constitute a
sufficient publication of such notice.

“Bearer” means anyone in possession from time to time
of a Bearer Security.

“Bearer Security” means any Security, including any
interest coupon appertaining thereto, that does not provide for the
identification of the Holder thereof.

“Board of Directors” means the Board of Directors of
the Company or any duly authorized committee thereof.

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

“Business Day” means, unless otherwise provided by
Board Resolution, Officers’ Certificate or supplemental indenture hereto for a
particular Series, any day except a Saturday, Sunday or a legal holiday in The
City of New York or The City of Minneapolis on which banking institutions are
authorized or required by law, regulation or executive order to close.

“Company” means the party named as such above until a
successor replaces it and thereafter means the successor.

“Company Order” means a written order signed in the
name of the Company by two Officers, one of whom must be the Company’s
principal executive officer, principal financial officer or principal
accounting officer.

“Company Request” means a written request signed in
the name of the Company by any Officer and delivered to the Trustee.

 1
 

 

 

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

“Default” means any event which is, or after notice or
passage of time or both would be, an Event of Default.

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

“Discount Security” means any Security that provides
for an amount less than the stated principal amount thereof to be due and
payable upon declaration of acceleration of the maturity thereof pursuant to
Section 6.2.

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

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

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

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

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

“Global Security” or “Global Securities” means a
Security or Securities, as the case may be, in the form established pursuant to
Section 2.2 evidencing all or part of a Series of Securities, issued to
the Depository for such Series or its nominee, and registered in the name of
such Depository or nominee.

“Holder” or “Securityholder” means a person in whose
name a Security is registered or the holder of a Bearer Security.

“Indenture” means this Indenture as amended or
supplemented from time to time and shall include the form and terms of particular
Series of Securities established as contemplated hereunder.

“interest” with respect to any Discount Security which
by its terms bears interest only after Maturity, means interest payable after
Maturity.

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

“Officer” means the Chairman of the Board, any
President, any Vice-President, the Chief Financial Officer, the Treasurer, the
Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

“Officers’ Certificate” means a certificate signed by
two Officers, one of whom must be the Company’s principal executive officer,
principal financial officer or principal accounting officer.

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

 2
 

 

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

“principal” of a Security means the principal of the
Security plus, when appropriate, the premium, if any, on, and any Additional
Amounts in respect of, the Security.

“Responsible Officer” means any officer of the Trustee
in its Corporate Trust Office and also means, with respect to a particular
corporate trust matter, any other officer to whom any corporate trust matter is
referred because of his or her knowledge of and familiarity with a particular
subject.

“SEC” means the Securities and Exchange Commission.

“Securities” means the debentures, notes or other debt
instruments of the Company of any Series authenticated and delivered under this
Indenture.

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

“Significant Subsidiary” means (i) any direct or
indirect Subsidiary of the Company that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act of 1933, as amended, as such regulation is in
effect on the date hereof, or (ii) any group of direct or indirect
Subsidiaries of the Company that, taken together as a group, would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of
Regulation S-X, promulgated pursuant to the Securities Act of 1933, as
amended, as such regulation is in effect on the date hereof.

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

“Subsidiary” of any specified person means any
corporation of which at least a majority of the outstanding stock having by the
terms thereof ordinary voting power for the election of directors of such
corporation (irrespective of whether or not at the time stock of any other
class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency) is at the time directly or
indirectly owned by such person, or by one or more other Subsidiaries, or by
such person and one or more other Subsidiaries.

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

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

“U.S. Government Obligations” means securities which
are (i) direct obligations of the United States of America for the payment
of which its full faith and credit is pledged or (ii) obligations of a
person controlled or supervised by and acting as an agency or instrumentality
of the United States of America the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of
America, and which in the case of (i) and (ii) are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt, provided that (except as
required by law) such custodian is not authorized to make any deduction from
the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the U.S. Government Obligation
evidenced by such depository receipt.

 3
 

 

Section
1.2. Other Definitions.

	
  Term

  	
   

  	
  Defined in Section

  
	
  “Bankruptcy Law”

  	
   

  	
  6.1

  
	
  “Custodian”

  	
   

  	
  6.1

  
	
  “Event of Default”

  	
   

  	
  6.1

  
	
  “Journal”

  	
   

  	
  10.15

  
	
  “Judgment Currency”

  	
   

  	
  10.16

  
	
  “Legal Holiday”

  	
   

  	
  10.7

  
	
  “mandatory sinking fund payment”

  	
   

  	
  11.1

  
	
  “Market Exchange Rate”

  	
   

  	
  10.15

  
	
  “New York Banking Day”

  	
   

  	
  10.16

  
	
  “optional sinking fund payment”

  	
   

  	
  11.1

  
	
  “Paying Agent”

  	
   

  	
  2.4

  
	
  “Registrar”

  	
   

  	
  2.4

  
	
  “Required Currency”

  	
   

  	
  10.16

  
	
  “Service Agent”

  	
   

  	
  2.4

  
	
  “successor person”

  	
   

  	
  5.1

  

 

Section
1.3. Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

“Commission” means the SEC.

“indenture securities” means the Securities.

“indenture security holder” means a Securityholder.

“indenture to be qualified” means this Indenture.

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

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

All other terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by
SEC rule under the TIA and not otherwise defined herein are used herein as so
defined.

Section
1.4. Rules of Construction. Unless the context otherwise
requires:

(a) a term has the
meaning assigned to it;

(b) an accounting term
not otherwise defined has the meaning assigned to it in accordance with
generally accepted accounting principles;

(c) references to “generally
accepted accounting principles” shall mean generally accepted accounting
principles in effect as of the time when and for the period as to which such
accounting principles are to be applied;

(d) “or” is not
exclusive;

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

(f) provisions apply to
successive events and transactions.

 4
 

 

ARTICLE II

THE
SECURITIES

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

Section
2.2. Establishment of Terms of Series of Securities. At or
prior to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Subsection 2.2.1 and
either as to such Securities within the Series or as to the Series generally in
the case of Subsections 2.2.2 through 2.2.21) by a Board Resolution, a
supplemental indenture or an Officers’ Certificate pursuant to authority
granted under a Board Resolution:

2.2.1. the title of the Series
(which shall distinguish the Securities of that particular Series from the
Securities of any other Series);

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

2.2.3. any limit upon the
aggregate principal amount of the Securities of the Series which may be
authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the Series pursuant to
Section 2.7, 2.8, 2.11, 3.6 or 9.6);

2.2.4. the date or dates
on which the principal of the Securities of the Series is payable;

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

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

2.2.7. if applicable, the
period or periods within which, the price or prices at which and the terms and
conditions upon which the Securities of the Series may be redeemed, in whole or
in part, at the option of the Company;

2.2.8. the obligation, if
any, of the Company to redeem or purchase the Securities of the Series pursuant
to any sinking fund or analogous provisions or at the option of a Holder
thereof and the period or periods within which, the price or prices at which
and the terms and conditions upon which Securities of the Series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

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

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

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

 5
 

 

2.2.12. if other than the
principal amount thereof, the portion of the principal amount of the Securities
of the Series that shall be payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.2;

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

2.2.14. the designation
of the currency, currencies or currency units in which payment of the principal
of and interest, if any, on the Securities of the Series will be made;

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

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

2.2.17. the provisions,
if any, relating to any security provided for the Securities of the Series;

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

2.2.19. any addition to
or change in the covenants set forth in Articles IV or V which applies to
Securities of the Series;

2.2.20. any other terms
of the Securities of the Series (which terms shall not be inconsistent with the
provisions of this Indenture, except as permitted by Section 9.1, but
which may modify or delete any provision of this Indenture insofar as it
applies to such Series); and

2.2.21. any depositories,
interest rate calculation agents, exchange rate calculation agents or other
agents with respect to Securities of such Series if other than those appointed
herein.

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

Section
2.3. Execution and Authentication. Two Officers shall sign
the Securities for the Company by manual or facsimile signature.

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

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

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

 6
 

 

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

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

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

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

Section
2.4. Registrar and Paying Agent. The Company shall maintain,
with respect to each Series of Securities, at the place or places specified
with respect to such Series pursuant to Section 2.2, an office or agency
where Securities of such Series may be presented or surrendered for payment (“Paying
Agent”), where Securities of such Series may be surrendered for registration of
transfer or exchange (“Registrar”) and where notices and demands to or upon the
Company in respect of Securities of such Series and this Indenture may be
served (“Service Agent”). The Registrar shall keep a register with respect to
each Series of Securities and to their transfer and exchange. The Company will
give prompt written notice to the Trustee of the name and address, and any
change in the name or address, of each Registrar, Paying Agent or Service
Agent. If at any time the Company shall fail to maintain any such required
Registrar, Paying Agent or Service Agent or shall fail to furnish the Trustee
with the name and 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 co-registrars, additional paying agents or additional service agents
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
obligations to maintain a Registrar, Paying Agent and Service Agent in each
place so specified pursuant to Section 2.2 for Securities of any Series
for such purposes. The Company will give prompt written notice to the Trustee
of any such designation or rescission and of any change in the name or address
of any such co-registrar, additional paying agent or additional service agent.
The term “Registrar” includes any co-registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Service Agent” includes any
additional service agent.

The Company hereby appoints the Trustee the initial
Registrar, Paying Agent and Service Agent for each Series unless another
Registrar, Paying Agent or Service Agent, as the case may be, is appointed
prior to the time Securities of that Series are first issued.

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

 7
 

 

Section
2.6. Securityholder Lists. The Trustee shall preserve in as
current a form as is reasonably practicable the most recent list available to
it of the names and addresses of Securityholders of each Series of Securities
and shall otherwise comply with TIA Section 312(a). If the Trustee is not
the Registrar, the Company shall furnish to the Trustee at least ten days
before each interest payment date and at such other times as the Trustee may
request in writing a list, in such form and as of such date as the Trustee may
reasonably require, of the names and addresses of Securityholders of each
Series of Securities.

Section
2.7. Transfer and Exchange. Where Securities of a Series are
presented to the Registrar or a co-registrar with a request to register a
transfer or to exchange them for an equal principal amount of Securities of the
same Series, the Registrar shall register the transfer or make the exchange if
its requirements for such transactions are met. To permit registrations of
transfers and exchanges, the Trustee shall authenticate Securities at the
Registrar’s request. No service charge shall be made for any registration of
transfer or exchange (except as otherwise expressly permitted herein), but the
Company may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith (other than any
such transfer tax or similar governmental charge payable upon exchanges
pursuant to Sections 2.11, 3.6 or 9.6).

Neither the Company nor the Registrar shall be
required (a) to issue, register the transfer of, or exchange Securities of
any Series for the period beginning at the opening of business fifteen days
immediately preceding the mailing of a notice of redemption of Securities of
that Series selected for redemption and ending at the close of business on the
day of such mailing, or (b) to register the transfer of or exchange
Securities of any Series selected, called or being called for redemption as a
whole or the portion being redeemed of any such Securities selected, called or
being called for redemption in part.

Section
2.8. Mutilated, Destroyed, Lost and Stolen Securities. If any
mutilated Security is surrendered to the Trustee, the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a new Security
of the same Series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.

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 upon
its request the Trustee shall authenticate and make available for delivery, in
lieu of any such destroyed, lost or stolen Security, a new Security of the same
Series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

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 of any Series 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 of that Series duly issued
hereunder.

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
2.9.  Outstanding Securities.
The Securities outstanding at any time are all the Securities authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest on a Global Security effected by
the Trustee in accordance with the provisions hereof and those described in
this Section as not outstanding.

If a Security is replaced pursuant to
Section 2.8, it ceases to be outstanding until the Trustee receives proof
satisfactory to it that the replaced Security is held by a bona fide purchaser.

 8

 

If the Paying Agent (other than the Company, a
Subsidiary of the Company or an Affiliate of any thereof) holds on the Maturity
of Securities of a Series money sufficient to pay such Securities payable on
that date, then on and after that date such Securities of the Series cease to
be outstanding and interest on them ceases to accrue.

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

In determining whether the Holders of the requisite
principal amount of outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of a Discount Security that shall be deemed to be outstanding for such
purposes shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon a declaration of acceleration
of the Maturity thereof pursuant to Section 6.2.

Section
2.10. Treasury Securities. In determining whether the Holders
of the required principal amount of Securities of a Series have concurred in
any request, demand, authorization, direction, notice, consent or waiver
Securities of a Series owned by the Company or an Affiliate of the Company
shall be disregarded, except that for the purposes of determining whether the
Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver only Securities of a Series
that the Trustee knows are so owned shall be so disregarded.

Section
2.11.  Temporary Securities.
Until definitive Securities are ready for delivery, the Company may prepare and
the Trustee shall authenticate temporary Securities upon a Company Order.
Temporary Securities shall be substantially in the form of definitive
Securities but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and
the Trustee, upon request, shall authenticate definitive Securities of the same
Series and date of Maturity in exchange for temporary Securities. Until so
exchanged, temporary Securities shall have the same rights under this Indenture
as the definitive Securities.

Section
2.12.  Cancellation.
The Company at any time may deliver Securities to the Trustee for cancellation.
The Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment. The
Trustee shall cancel all Securities surrendered for transfer, exchange,
payment, replacement or cancellation and shall destroy such canceled Securities
(subject to the record retention requirement of the Exchange Act) and deliver a
certificate of such destruction to the Company, unless the Company otherwise
directs. The Company may not issue new Securities to replace Securities that it
has paid or delivered to the Trustee for cancellation.

Section
2.13.  Defaulted Interest.
If the Company defaults in a payment of interest on a Series of Securities, it
shall pay the defaulted interest, plus, to the extent permitted by law, any
interest payable on the defaulted interest, to the persons who are
Securityholders of the Series on a subsequent special record date. The Company
shall fix the record date and payment date. At least 30 days before the record
date, the Company shall mail to the Trustee and to each Securityholder of the
Series a notice that states the record date, the payment date and the amount of
interest to be paid. The Company may pay defaulted interest in any other lawful
manner.

Section
2.14.  Global Securities.

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

2.14.2. Transfer and
Exchange. Notwithstanding any provisions to the contrary contained in
Section 2.7 of the Indenture and in addition thereto, any Global Security
shall be exchangeable pursuant to Section 2.7 of the Indenture for
Securities registered in the names of Holders other than the Depository for
such Security or its nominee only if (i) such Depository notifies the
Company that it is unwilling or unable to continue as Depository for such Global
Security or if at any time such Depository ceases to be a clearing agency
registered under the Exchange Act, and, in either case, the Company fails to
appoint a successor Depository within 90 days of such event, (ii) the
Company executes and delivers to the Trustee an Officers’ Certificate to the
effect that such Global Security shall be so exchangeable or (iii) an
Event of Default with respect to the Securities represented by such Global
Security shall have happened and be continuing. Any Global Security

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that is exchangeable pursuant to the preceding
sentence shall be exchangeable for Securities registered in such names as the
Depository shall direct in writing in an aggregate principal amount equal to
the principal amount of the Global Security with like tenor and terms.

Except as provided in
this Section 2.14.2, a Global Security may not be transferred except as a
whole by the Depository with respect to such Global Security to a nominee of
such Depository, by a nominee of such Depository to such Depository or another
nominee of such Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such a successor Depository.

2.14.3. Legend.
Any Global Security issued hereunder shall bear a legend in substantially the
following form:

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

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

2.14.5. Payments.
Notwithstanding the other provisions of this Indenture, unless otherwise
specified as contemplated by Section 2.2, payment of the principal of and
interest, if any, on any Global Security shall be made to the Holder thereof.

2.14.6. Consents,
Declaration and Directions. Except as provided in Section 2.14.5, the
Company, the Trustee and any Agent shall treat a person as the Holder of such
principal amount of outstanding Securities of such Series represented by a
Global Security as shall be specified in a written statement of the Depository
with respect to such Global Security, for purposes of obtaining any consents,
declarations, waivers or directions required to be given by the Holders
pursuant to this Indenture.

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

ARTICLE III

REDEMPTION

Section
3.1.  Notice to Trustee.
The Company may, with respect to any Series of Securities, reserve the right to
redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof
at such time and on such terms as provided for in such Securities. If a Series
of Securities is redeemable and the Company wants or is obligated to redeem
prior to the Stated Maturity thereof all or part of the Series of Securities
pursuant to the terms of such Securities, it shall notify the Trustee of the
redemption date and the principal amount of Series of Securities to be
redeemed. The Company shall give the notice at least 45 days before the
redemption date (or such shorter notice as may be acceptable to the Trustee).

Section
3.2.  Selection of
Securities to be Redeemed. Unless otherwise indicated for a
particular Series by a Board Resolution, a supplemental indenture or an
Officers’ Certificate, if less than all the Securities of a Series are to be
redeemed, the Trustee shall select Securities of the Series to be redeemed in
any manner that the Trustee deems fair and appropriate. The Trustee shall make
the selection from Securities of the Series outstanding not previously called
for redemption. The Trustee may select for redemption portions of the principal
of Securities of the Series that

 10
 

 

have denominations larger than $1,000. Securities of
the Series and portions of them it selects shall be in amounts of $1,000 or
whole multiples of $1,000 or, with respect to Securities of any Series issuable
in other denominations pursuant to Section 2.2.10, the minimum principal
denomination for each Series and integral multiples thereof. Provisions of this
Indenture that apply to Securities of a Series called for redemption also apply
to portions of Securities of that Series called for redemption.

Section
3.3.  Notice of Redemption.
Unless otherwise indicated for a particular Series by a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate, at least 30 days but
not more than 60 days before a redemption date, the Company shall mail a notice
of redemption by first-class mail to each Holder whose Securities are to be
redeemed and if any Bearer Securities are outstanding, publish on one occasion
a notice in an Authorized Newspaper.

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

(a) the redemption date;

(b) the redemption price;

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

(d) that Securities of
the Series called for redemption must be surrendered to the Paying Agent to
collect the redemption price;

(e) that interest on
Securities of the Series called for redemption ceases to accrue on and after
the redemption date; and

(f) any other information
as may be required by the terms of the particular Series or Securities of a
Series being redeemed.

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

Section
3.4.  Effect of Notice of
Redemption. Once notice of redemption is mailed or published as
provided in Section 3.3, Securities of a Series called for redemption
become due and payable on the redemption date and at the redemption price. A
notice of redemption may not be conditional. Upon surrender to the Paying
Agent, such Securities shall be paid at the redemption price plus accrued
interest to the redemption date.

Section
3.5.  Deposit of Redemption
Price. On or before the redemption date, the Company shall deposit
with the Paying Agent money sufficient to pay the redemption price of and
accrued interest, if any, on all Securities to be redeemed on that date.

Section
3.6. Securities Redeemed in Part. Upon surrender of a
Security that is redeemed in part, the Trustee shall authenticate for the
Holder a new Security of the same Series and the same Maturity equal in
principal amount to the unredeemed portion of the Security surrendered.

ARTICLE IV

COVENANTS

Section
4.1.  Payment of Principal
and Interest. The Company covenants and agrees for the benefit of
the Holders of each Series of Securities that it will duly and punctually pay
the principal of and interest, if any, on Securities of that Series in
accordance with the terms of such Securities and this Indenture.

Section
4.2.  SEC Reports.
The Company shall deliver to the Trustee, within 15 days after it files them
with the SEC, copies of the annual reports and of the information, documents,
and other reports (or copies of such portions of any of the foregoing as the
SEC may by rules and regulations prescribe) which the Company is required to
file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The
Company also shall comply with the other provisions of TIA Section 314(a).

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Section
4.3.  Compliance Certificate.
The Company shall deliver to the Trustee, within 90 days after the end of each
fiscal year of the Company, an Officers’ Certificate stating that a review of
the activities of the Company and its Subsidiaries during the preceding fiscal
year has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of such Officer’s knowledge the
Company has kept, observed, performed and fulfilled each and every covenant
contained in this Indenture and is not in default in the performance or
observance of any of the terms, provisions and conditions hereof (or, if a
Default or Event of Default shall have occurred, describing all such Defaults
or Events of Default of which such Officer may have knowledge).

The Company will, so long as any of the Securities are
outstanding, deliver to the Trustee, forthwith upon becoming aware of any Default
or Event of Default, an Officers’ Certificate specifying such Default or Event
of Default and what action the Company is taking or proposes to take with
respect thereto.

Section
4.4.  Stay, Extension and
Usury Laws. The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in force,
which may affect the covenants or the performance of this Indenture or the
Securities; and the Company (to the extent it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law and covenants that it
will not, by resort to any such law, 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 has been enacted.

Section
4.5.  Corporate Existence.
Subject to Article V, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence
and the corporate, partnership or other existence of each Significant
Subsidiary in accordance with the respective organizational documents of each
Significant Subsidiary and the rights (charter and statutory), licenses and
franchises of the Company and its Significant Subsidiaries; provided, however,
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any Significant
Subsidiary, if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company
and its Subsidiaries taken as a whole and that the loss thereof is not adverse
in any material respect to the Holders.

Section
4.6.  Taxes. The
Company shall, and shall cause each of its Significant Subsidiaries to, pay
prior to delinquency all taxes, assessments and governmental levies, except as
contested in good faith and by appropriate proceedings.

ARTICLE V

SUCCESSORS

Section
5.1.  When Company May
Merge, Etc. The Company shall not consolidate with or merge into, or
convey, transfer or lease all or substantially all of its properties and assets
to, any person (a “successor person”), and may not permit any person to merge
into, or convey, transfer or lease its properties and assets substantially as
an entirety to, the Company, unless:

(a) the successor person
(if any) is a corporation, partnership, trust or other entity organized and
validly existing under the laws of any U.S. domestic jurisdiction and expressly
assumes the Company’s obligations on the Securities and under this Indenture
and

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

The Company shall deliver to the Trustee, prior to the
consummation of the proposed transaction, an Officers’ Certificate to the
foregoing effect and an Opinion of Counsel stating that the proposed
transaction and such supplemental indenture comply with this Indenture.

Section
5.2.  Successor Corporation
Substituted. Upon any consolidation or merger, or any sale, lease,
conveyance or other disposition of all or substantially all of the assets of
the Company in accordance with

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Section 5.1, the successor corporation formed by
such consolidation or into or with which the Company is merged or to which such
sale, lease, conveyance or other disposition 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 has been named
as the Company herein; provided, however, that the predecessor Company in the
case of a sale, lease, conveyance or other disposition shall not be released
from the obligation to pay the principal of and interest, if any, on the
Securities.

ARTICLE VI

DEFAULTS
AND REMEDIES

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

(a) default in the payment
of any interest on any Security of that Series when it becomes due and payable,
and continuance of such default for a period of 30 days (unless the entire
amount of such payment is deposited by the Company with the Trustee or with a
Paying Agent prior to the expiration of such period of 30 days); or

(b) default in the
payment of the principal of any Security of that Series at its Maturity; or

(c) default in the
deposit of any sinking fund payment, when and as due in respect of any Security
of that Series; or

(d) default in the
performance or breach of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty that has been included in this
Indenture solely for the benefit of Series of Securities other than that Series),
which default continues uncured 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 of that Series 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

(e) the Company or any of
its Significant Subsidiaries pursuant to or within the meaning of any
Bankruptcy Law:

(i) commences a voluntary
case,

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

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

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

(v) generally is unable
to pay its debts as the same become due; or

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

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

(ii) appoints a Custodian
of the Company or any of its Significant Subsidiaries or for all or
substantially all of its property, or

(iii) orders the
liquidation of the Company or any of its Significant Subsidiaries, and the
order or decree remains unstayed and in effect for 60 days; or

(g) any other Event of
Default provided with respect to Securities of that Series, which is specified
in a Board Resolution, a supplemental indenture hereto or an Officers’
Certificate, in accordance with Section 2.2.18.

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

Section
6.2. Acceleration of Maturity; Rescission and Annulment. If
an Event of Default with respect to Securities of any Series at the time
outstanding occurs and is continuing (other than an Event of Default referred
to in Section 6.1(e) or (f)) then in every such case the Trustee or the
Holders of not less than 25% in principal amount of the outstanding Securities
of that Series may declare the principal amount (or, if any Securities of that
Series are Discount Securities, such portion of the principal amount as may be
specified in the terms of such Securities) of and accrued and unpaid interest,
if any, on all of the Securities of that Series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) and accrued and unpaid interest, if any, shall become immediately due
and payable. If an Event of Default specified in Section 6.1(e) or
(f) shall occur, the principal amount (or specified amount) of and accrued
and unpaid interest, if any, on all outstanding Securities shall ipso facto
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holder.

At any time after such a declaration of acceleration
with respect to any Series has been made 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 of that Series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if:

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

(i) all overdue interest,
if any, on all Securities of that Series,

(ii) the principal of any
Securities of that Series which have become due otherwise than by such
declaration of acceleration and interest thereon at the rate or rates
prescribed therefor in such Securities,

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

(iv) 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

(b) all Events of Default
with respect to Securities of that Series, other than the non-payment of the
principal of Securities of that Series which have become due solely by such
declaration of acceleration, have been cured or waived as provided in
Section 6.13.

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

Section
6.3.  Collection of
Indebtedness and Suits for Enforcement by Trustee. The Company
covenants that if

(a) 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

(b) default is made in
the payment of principal of any Security at the Maturity thereof, or

(c) default is made in
the deposit of any sinking fund payment when and as due by the terms of a
Security,

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

 14
 

 

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
Securities and collect the moneys adjudged or deemed to be payable in the
manner provided by law out of the property of the Company or any other obligor
upon such Securities, wherever situated.

If an Event of Default with respect to any Securities
of any Series occurs and is continuing, the Trustee may in its discretion
proceed to protect and enforce its rights and the rights of the Holders of
Securities of such Series 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
6.4.  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,

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

(b) to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same, and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.7.

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

Section
6.5. 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
6.6.  Application of Money
Collected. 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 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 7.7; and

Second: To the payment of the amounts then due and
unpaid for principal of 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 interest, respectively; and

Third: To the Company.

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

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

(b) the Holders of not
less than 25% in principal amount of the outstanding Securities of that Series
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;

(c) 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;

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

(e) 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 of that Series;

it being understood and intended that no one or more
of such Holders shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other of such Holders, or to obtain or to seek to obtain
priority or preference over any other of such Holders or to enforce any right
under this Indenture, except in the manner herein provided and for the equal
and ratable benefit of all such Holders.

Section
6.8.  Unconditional Right of
Holders to Receive Principal and Interest. Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of,
premium and interest, if any, on such Security on the Stated Maturity or Stated
Maturities expressed in such Security (or, in the case of redemption, on the
redemption date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

Section
6.9.  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
6.10.  Rights and Remedies
Cumulative. Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in
Section 2.8, 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
6.11.  Delay or Omission Not
Waiver. No delay or omission of the Trustee or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article or by law to the Trustee or to the Holders may be exercised from time
to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

Section
6.12.  Control by Holders.
The Holders of a majority in principal amount of the outstanding Securities of
any Series shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee, with respect to the Securities of
such Series, provided that

 16

 

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

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

(c) subject to the
provisions of Section 6.1, the Trustee shall have the right to decline to
follow any such direction if the Trustee in good faith shall, by a Responsible
Officer of the Trustee, determine that the proceeding so directed would involve
the Trustee in personal liability.

Section
6.13.  Waiver of Past
Defaults. The Holders of not less than a majority in principal
amount of the outstanding Securities of any Series may on behalf of the Holders
of all the Securities of such Series waive any past Default hereunder with
respect to such Series and its consequences, except a Default (i) in the
payment of the principal of or interest on any Security of such Series
(provided, however, that the Holders of a majority in principal amount of the
outstanding Securities of any Series may rescind an acceleration and its
consequences, including any related payment default that resulted from such
acceleration) and (ii) in respect of a covenant or provision hereof which
cannot be modified or amended without the consent of the Holder of each
outstanding Security of such Series affected. Upon any such waiver, such
Default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

Section
6.14. Undertaking For Costs. All parties to this Indenture
agree, and each Holder of any Security by his acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture, or in any
suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to any suit instituted by the Company, to any suit
instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the
outstanding Securities of any Series, or to any suit instituted by any Holder
for the enforcement of the payment of the principal of or interest on any
Security on or after the Stated Maturity or Stated Maturities expressed in such
Security (or, in the case of redemption, on the redemption date).

ARTICLE VII

TRUSTEE

Section
7.1.  Duties of Trustee.

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

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

(i) The Trustee need
perform only those duties that are specifically set forth in this Indenture and
no others.

(ii) In the absence of
bad faith on its part, the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon
Officers’ Certificates or Opinions of Counsel furnished to the Trustee and
conforming to the requirements of this Indenture; however, in the case of any
such Officers’ Certificates or Opinions of Counsel which by any provisions
hereof are specifically required to be furnished to the Trustee, the Trustee
shall examine such Officers’ Certificates and Opinions of Counsel to determine
whether or not they conform to the requirements of this Indenture.

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

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

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

(iii) The Trustee shall
not be liable with respect to any action taken, suffered or omitted to be taken
by it with respect to Securities of any Series in good faith in accordance with
the direction of the Holders of a majority in principal amount of the
outstanding Securities of such Series relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture
with respect to the Securities of such Series.

(d) Every provision of
this Indenture that in any way relates to the Trustee is subject to paragraph
(a), (b) and (c) of this Section.

(e) The Trustee may
refuse to perform any duty or exercise any right or power unless it receives
indemnity satisfactory to it against any loss, liability or expense.

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

(g) No provision of this
Indenture shall require the Trustee to risk its own funds or otherwise incur
any financial liability in the performance of any of its duties, 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 is not reasonably assured to it.

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

Section
7.2.  Rights of Trustee.

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

(b) Before the Trustee
acts or refrains from acting, it may require an Officers’ Certificate or an
Opinion of Counsel. The Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on such Officers’ Certificate or
Opinion of Counsel.

(c) The Trustee may act
through agents and shall not be responsible for the misconduct or negligence of
any agent appointed with due care. No Depository shall be deemed an agent of
the Trustee and the Trustee shall not be responsible for any act or omission by
any Depository.

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

(e) The Trustee may
consult with counsel and the 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.

(f) The Trustee shall be
under no obligation to exercise any of the rights or powers vested in it by
this Indenture at the request or direction of any of the Holders of Securities
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.

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Section
7.3.  Individual Rights of
Trustee. The Trustee in its individual or any other capacity may
become the owner or pledgee of Securities and may otherwise deal with the
Company or an Affiliate of the Company with the same rights it would have if it
were not Trustee. Any Agent may do the same with like rights. The Trustee is
also subject to Sections 7.10 and 7.11.

Section
7.4.  Trustee’s Disclaimer.
The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities, it shall not be accountable for the Company’s use
of the proceeds from the Securities, and it shall not be responsible for any
statement in the Securities other than its authentication.

Section
7.5.  Notice of Defaults.
If a Default or Event of Default occurs and is continuing with respect to the
Securities of any Series and if it is known to a Responsible Officer of the
Trustee, the Trustee shall mail to each Securityholder of the Securities of
that Series and, if any Bearer Securities are outstanding, publish on one
occasion in an Authorized Newspaper, notice of a Default or Event of Default
within 90 days after it occurs or, if later, after a Responsible Officer of the
Trustee has knowledge of such Default or Event of Default. Except in the case
of a Default or Event of Default in payment of principal of or interest on any
Security of any Series, the Trustee may withhold the notice if and so long as
its corporate trust committee or a committee of its Responsible Officers in
good faith determines that withholding the notice is in the interests of
Securityholders of that Series.

Section
7.6.  Reports by Trustee to
Holders. Within 60 days after May 15 in each year, the Trustee
shall transmit by mail to all Securityholders, as their names and addresses
appear on the register kept by the Registrar and, if any Bearer Securities are
outstanding, publish in an Authorized Newspaper, a brief report dated as of
such May 15, in accordance with, and to the extent required under, TIA
Section 313.

A copy of each report at the time of its mailing to
Securityholders of any Series shall be filed with the SEC and each stock
exchange on which the Securities of that Series are listed. The Company shall
promptly notify the Trustee when Securities of any Series are listed on any
stock exchange.

Section
7.7.  Compensation and
Indemnity. The Company shall pay to the Trustee from time to time
reasonable compensation for its services. The Trustee’s compensation shall not
be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred by it. Such expenses shall include the
reasonable compensation and expenses of the Trustee’s agents and counsel.

The Company shall indemnify the Trustee (including the
cost of defending itself) against any loss, liability or expense incurred by it
except as set forth in the next paragraph in the performance of its duties
under this Indenture as Trustee or Agent. The Trustee shall notify the Company
promptly of any claim for which it may seek indemnity. The Company shall defend
the claim and the Trustee shall cooperate in the defense. The Trustee may have
separate counsel and the Company shall pay the reasonable fees and expenses of
such counsel. The Company need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld. This indemnification
shall apply to officers, directors, employees, shareholders and agents of the
Trustee.

The Company need not reimburse any expense or
indemnify against any loss or liability incurred by the Trustee or by any
officer, director, employee, shareholder or agent of the Trustee through negligence
or bad faith.

To secure the Company’s payment obligations in this
Section, the Trustee shall have a lien prior to the Securities of any Series on
all money or property held or collected by the Trustee, except that held in
trust to pay principal and interest on particular Securities of that Series.

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

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

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The Trustee may resign with respect to the Securities
of one or more Series by so notifying the Company at least 30 days prior to the
date of the proposed resignation. The Holders of a majority in principal amount
of the Securities of any Series may remove the Trustee with respect to that
Series by so notifying the Trustee and the Company. The Company may remove the
Trustee with respect to Securities of one or more Series if:

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

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

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

(d) the Trustee becomes
incapable of acting.

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

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

If the Trustee with respect to the Securities of any
one or more Series fails to comply with Section 7.10, any Securityholder
of the applicable Series may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company. Immediately
after that, the retiring Trustee shall transfer all property held by it as
Trustee to the successor Trustee subject to the lien provided for in
Section 7.7, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers
and duties of the Trustee with respect to each Series of Securities for which
it is acting as Trustee under this Indenture. A successor Trustee shall mail a
notice of its succession to each Securityholder of each such Series and, if any
Bearer Securities are outstanding, publish such notice on one occasion in an Authorized
Newspaper. Notwithstanding replacement of the Trustee pursuant to this
Section 7.8, the Company’s obligations under Section 7.7 hereof shall
continue for the benefit of the retiring trustee with respect to expenses and
liabilities incurred by it prior to such replacement.

Section
7.9. Successor Trustee by Merger, Etc. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the successor
corporation without any further act shall be the successor Trustee.

Section
7.10. Eligibility; Disqualification. This Indenture shall
always have a Trustee who satisfies the requirements of TIA
Section 310(a)(1), (2) and (5). The Trustee shall always have a
combined capital and surplus of at least $25,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA
Section 310(b).

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

ARTICLE VIII

SATISFACTION
AND DISCHARGE; DEFEASANCE

Section
8.1. Satisfaction and Discharge of Indenture. This Indenture
shall upon Company Order cease to be of further effect (except as hereinafter
provided in this Section 8.1), and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

 20
 

 

(a) either

(i) all Securities
theretofore authenticated and delivered (other than Securities that have been
destroyed, lost or stolen and that have been replaced or paid) have been
delivered to the Trustee for cancellation; or

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

(1) have become due and
payable, or

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

(3) 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, or

(4) are deemed paid and
discharged pursuant to Section 8.3, as applicable;

and the Company, in the case of (1), (2) or
(3) above, has irrevocably deposited or caused to be deposited with the
Trustee as trust funds in trust an amount sufficient for the purpose of paying
and discharging the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for principal and interest to the
date of such deposit (in the case of Securities which have become due and
payable on or prior to the date of such deposit) or to the Stated Maturity or
redemption date, as the case may be;

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

(c) 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 7.7, and, if money shall have been deposited with the Trustee
pursuant to clause (a) of this Section, the provisions of
Sections 2.4, 2.7, 2.8, 8.1 8.2 and 8.5 shall survive.

Section
8.2. Application of Trust Funds; Indemnification.

(a) Subject to the
provisions of Section 8.5, all money deposited with the Trustee pursuant
to Section 8.1, all money and U.S. Government Obligations or Foreign
Government Obligations deposited with the Trustee pursuant to Section 8.3
or 8.4 and all money received by the Trustee in respect of U.S. Government
Obligations or Foreign Government Obligations deposited with the Trustee
pursuant to Section 8.3 or 8.4, 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 interest for whose payment such money
has been deposited with or received by the Trustee or to make mandatory sinking
fund payments or analogous payments as contemplated by Sections 8.3 or
8.4.

(b) The Company shall pay
and shall indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against U.S. Government Obligations or Foreign Government
Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest and
principal received in respect of such obligations other than any payable by or
on behalf of Holders.

(c) The Trustee shall
deliver or pay to the Company from time to time upon Company Request any U.S.
Government Obligations or Foreign Government Obligations or money held by it as
provided in Sections 8.3 or 8.4 which, in the opinion of a nationally
recognized firm of independent certified public accountants expressed in a
written certification thereof delivered to the Trustee, are then in excess of
the amount thereof which then would have been required to be deposited for the
purpose for which such U.S. Government Obligations or Foreign Government
Obligations or money were deposited or received. This provision shall not

 21
 

 

authorize the sale by the Trustee of any U.S.
Government Obligations or Foreign Government Obligations held under this
Indenture.

Section
8.3. Legal Defeasance of Securities of Any Series. Unless this
Section 8.3 is otherwise specified, pursuant to Section 2.2.20, to be
inapplicable to Securities of any Series, the Company shall be deemed to have
paid and discharged the entire indebtedness on all the outstanding Securities
of such Series on the 91st day after the date of the deposit referred to in
subparagraph (d) hereof, and the provisions of this Indenture, as it
relates to such outstanding Securities of such Series, shall no longer be in
effect (and the Trustee, at the expense of the Company, shall, at Company
Request, execute proper instruments acknowledging the same), except as to:

(a) the rights of Holders
of Securities of such Series to receive, from the trust funds described in
subparagraph (d) hereof, (i) payment of the principal of and each
installment of principal of and interest on the outstanding Securities of such
Series on the Stated Maturity of such principal or installment of principal or
interest and (ii) the benefit of any mandatory sinking fund payments
applicable to the Securities of such Series on the day on which such payments
are due and payable in accordance with the terms of this Indenture and the
Securities of such Series;

(b) the provisions of
Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

(c) the rights, powers,
trust and immunities of the Trustee hereunder; provided that, the following
conditions shall have been satisfied:

(d) the Company shall
have deposited or caused to be deposited irrevocably with the Trustee as trust
funds in trust for the purpose of making the following payments, specifically
pledged as security for and dedicated solely to the benefit of the Holders of
such Securities (i) in the case of Securities of such Series denominated
in Dollars, cash in Dollars (or such other money or currencies as shall then be
legal tender in the United States) and/or U.S. Government Obligations, or
(ii) in the case of Securities of such Series denominated in a Foreign
Currency (other than a composite currency), money and/or Foreign Government
Obligations, which through the payment of interest and principal in respect
thereof, in accordance with their terms, will provide (and without reinvestment
and assuming no tax liability will be imposed on such Trustee), not later than
one day before the due date of any payment of money, an amount in cash,
sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge each installment of principal (including
mandatory sinking fund or analogous payments) of and interest, if any, on all
the Securities of such Series on the dates such installments of interest or
principal are due;

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

(f) no Default or Event
of Default with respect to the Securities of such Series shall have occurred
and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

(g) the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel to the effect that (i) the Company has received from, or there has
been published by, the Internal Revenue Service a ruling, or (ii) since
the date of execution of this Indenture, there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Holders of the
Securities of such Series will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit, defeasance and discharge and
will be subject to Federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit, defeasance
and discharge had not occurred;

(h) the Company shall
have delivered to the Trustee an Officers’ Certificate stating that the deposit
was not made by the Company with the intent of preferring the Holders of the
Securities of such Series over any other creditors of the company or with the
intent of defeating, hindering, delaying or defrauding any other creditors of
the Company;

 22
 

 

(i) such deposit shall
not result in the trust arising from such deposit constituting an investment
company (as defined in the Investment Company Act of 1940, as amended), or such
trust shall be qualified under such Act or exempt from regulation thereunder;
and

(j) the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to
the defeasance contemplated by this Section have been complied with.

Section
8.4. Covenant Defeasance. Unless this Section 8.4 is
otherwise specified pursuant to Section 2.2.20 to be inapplicable to
Securities of any Series, on and after the 91st day after the date of the
deposit referred to in subparagraph (a) hereof, the Company may omit to
comply with any term, provision or condition set forth under Sections 4.2,
4.3, 4.4, 4.5, 4.6, and 5.1 as well as any additional covenants contained in a
supplemental indenture hereto for a particular Series of Securities or a Board
Resolution or an Officers’ Certificate delivered pursuant to
Section 2.2.20 (and the failure to comply with any such covenants shall
not constitute a Default or Event of Default under Section 6.1) with
respect to the Securities of such Series, provided that the following
conditions shall have been satisfied:

(a) With reference to
this Section 8.4, the Company has deposited or caused to be irrevocably
deposited (except as provided in Section 8.2(c)) with the Trustee as trust
funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of such Securities (i) in the case of
Securities of such Series denominated in Dollars, cash in Dollars (or such
other money or currencies as shall then be legal tender in the United States)
and/or U.S. Government Obligations, or (ii) in the case of Securities of
such Series denominated in a Foreign Currency (other than a composite
currency), money and/or Foreign Government Obligations, which through the
payment of interest and principal in respect thereof, in accordance with their
terms, will provide (and without reinvestment and assuming no tax liability
will be imposed on such Trustee), not later than one day before the due date of
any payment of money, an amount in cash, sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
principal and interest, if any, on and any mandatory sinking fund in respect of
the Securities of such Series on the dates such installments of interest or principal
are due;

(b) Such deposit will not
result in a breach or violation of, or constitute a default under, this
Indenture or any other agreement or instrument to which the Company is a party
or by which it is bound;

(c) No Default or Event
of Default with respect to the Securities of such Series shall have occurred
and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

(d) the Company shall
have delivered to the Trustee an Opinion of Counsel confirming that Holders of
the Securities of such Series will not recognize income, gain or loss for
federal income tax purposes as a result of such deposit and defeasance and will
be subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such deposit and defeasance had
not occurred;

(e) the Company shall
have delivered to the Trustee an Officers’ Certificate stating the deposit was
not made by the Company with the intent of preferring the Holders of the
Securities of such Series over any other creditors of the Company or with the
intent of defeating, hindering, delaying or defrauding any other creditors of
the Company; and

(f) The Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for
relating to the defeasance contemplated by this Section have been complied
with.

Section
8.5. Repayment to Company. The Trustee and the Paying Agent
shall pay to the Company upon request any money held by them for the payment of
principal and interest that remains unclaimed for two years. After that,
Securityholders entitled to the money must look to the Company for payment as
general creditors unless an applicable abandoned property law designates
another person.

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ARTICLE IX

AMENDMENTS
AND WAIVERS

Section
9.1. Without Consent of Holders. The Company and the Trustee
may amend or supplement this Indenture or the Securities of one or more Series
without the consent of any Securityholder:

(a) to cure any
ambiguity, defect or inconsistency;

(b) to comply with
Article V;

(c) to provide for
uncertificated Securities in addition to or in place of certificated
Securities;

(d) to make any change
that does not adversely affect the rights of any Securityholder;

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

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

(g) to comply with
requirements of the SEC in order to effect or maintain the qualification of
this Indenture under the TIA.

Section
9.2. With Consent of Holders. The Company and the Trustee may
enter into a supplemental indenture with the written consent of the Holders of
at least a majority in principal amount of the outstanding Securities of each
Series affected by such supplemental indenture (including consents obtained in
connection with a tender offer or exchange offer for the Securities of such
Series), for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Securityholders of
each such Series. Except as provided in Section 6.13, the Holders of at
least a majority in principal amount of the outstanding Securities of each
Series affected by such waiver by notice to the Trustee (including consents
obtained in connection with a tender offer or exchange offer for the Securities
of such Series) may waive compliance by the Company with any provision of this
Indenture or the Securities with respect to such Series.

It shall not be necessary for the consent of the
Holders of Securities under this Section 9.2 to approve the particular
form of any proposed supplemental indenture or waiver, but it shall be
sufficient if such consent approves the substance thereof. After a supplemental
indenture or waiver under this section becomes effective, the Company shall
mail to the Holders of Securities affected thereby and, if any Bearer
Securities affected thereby are outstanding, publish on one occasion in an
Authorized Newspaper, a notice briefly describing the supplemental indenture or
waiver. Any failure by the Company to mail or publish such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture or waiver.

Section
9.3. Limitations. Without the consent of each Securityholder
affected, an amendment or waiver may not:

(a) change the amount of
Securities whose Holders must consent to an amendment, supplement or waiver;

(b) reduce the rate of or
extend the time for payment of interest (including default interest) on any
Security;

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

(d) reduce the principal
amount of Discount Securities payable upon acceleration of the maturity
thereof;

 24
 

 

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

(f) make the principal of
or interest, if any, on any Security payable in any currency other than that
stated in the Security;

(g) make any change in
Sections 6.8, 6.13 or 9.3 (this sentence); or

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

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

Section
9.5. Revocation and Effect of Consents. Until an amendment or
waiver becomes effective, a consent to it by a Holder of a Security is a
continuing consent by the Holder and every subsequent Holder of a Security or
portion of a Security that evidences the same debt as the consenting Holder’s
Security, even if notation of the consent is not made on any Security. However,
any such Holder or subsequent Holder may revoke the consent as to his Security
or portion of a Security if the Trustee receives the notice of revocation
before the date the amendment or waiver becomes effective.

Any amendment or waiver once effective shall bind
every Securityholder of each Series affected by such amendment or waiver unless
it is of the type described in any of clauses (a) through (h) of
Section 9.3. In that case, the amendment or waiver shall bind each Holder
of a Security who has consented to it and every subsequent Holder of a Security
or portion of a Security that evidences the same debt as the consenting Holder’s
Security.

Section
9.6. Notation on or Exchange of Securities. The Trustee may
place an appropriate notation about an amendment or waiver on any Security of
any Series thereafter authenticated. The Company in exchange for Securities of
that Series may issue and the Trustee shall authenticate upon request new
Securities of that Series that reflect the amendment or waiver.

Section 9.7.
Trustee Protected. 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 7.1) 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 shall sign all supplemental indentures, except that the Trustee need
not sign any supplemental indenture that adversely affects its rights.

ARTICLE X

MISCELLANEOUS

Section
10.1. Trust Indenture Act Controls. If any provision of this
Indenture limits, qualifies, or conflicts with another provision which is required
or deemed to be included in this Indenture by the TIA, such required or deemed
provision shall control.

Section
10.2. Notices. Unless otherwise provided herein, any notice
or communication by the Company or the Trustee to the other shall be in writing
and delivered in person or by courier, telegraphed, telexed or by facsimile
transmission or mailed by first-class mail as follows:

if to
the Company:                                                                   Vital
Images, Inc.

5850
Opus Parkway, Suite 300

Minnetonka,
Minnesota 55343

Attention:
Chief Financial Officer

Facsimile:
(952) 487-9510

 25
 

 

with a
copy to:                                                                                        Wintrhop
& Weinstine, P.A.

225 South Sixth
Street, Suite 3500

Minneapolis, MN
55402

Attention: Michele
D. Vaillancourt

Facsimile: (612) 604-6881

if to
the Trustee:                                                                               [Name
of Trustee]

[Address]

                                       

                                       

Attention:                       

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

Any notice or communication to a Securityholder shall
be mailed by first-class mail to his address shown on the register kept by the
Registrar and, if any Bearer Securities are outstanding, published in an
Authorized Newspaper. Failure to mail a notice or communication to a
Securityholder of any Series or any defect in it shall not affect its
sufficiency with respect to other Securityholders of that or any other Series.

If a notice or communication is mailed in the manner
provided above, within the time prescribed, it is duly given, whether or not
the Securityholder receives it. If a notice or communication is delivered in
person, by courier, telegraphed, telexed or by facsimile transmission (with
confirmation of receipt) within the time prescribed, it is duly given.

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

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

Section
10.4. Certificate and Opinion as to Conditions Precedent.
Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:

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

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

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

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

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

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

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

 26
 

 

Section
10.6. Rules by Trustee and Agents. The Trustee may make
reasonable rules for action by or a meeting of Securityholders of one or more
Series. Any Agent may make reasonable rules and set reasonable requirements for
its functions.

Section
10.7. Legal Holidays. Unless otherwise provided by Board
Resolution, Officers’ Certificate or supplemental indenture for a particular
Series, a “Legal Holiday” is any day that is not a Business Day. If a payment
date is a Legal Holiday at a place of payment, payment may be made at that place
on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period.

Section
10.8. No Recourse Against Others. A director, officer,
employee or stockholder, as such, of the Company shall not have any liability
for any obligations of the Company under the Securities or the Indenture or for
any claim based on, in respect of or by reason of such obligations or their
creation. Each Securityholder by accepting a Security waives and releases all
such liability. The waiver and release are part of the consideration for the
issue of the Securities.

Section
10.9. Counterparts. This Indenture may be executed in any
number of counterparts and by the parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.

Section
10.10. Governing Laws. THIS INDENTURE AND THE SECURITIES
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS
MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS
PROVISIONS THEREOF.

Section
10.11. No Adverse Interpretation of Other Agreements. This
Indenture may not be used to interpret another indenture, loan or debt
agreement of the Company or a Subsidiary. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

Section
10.12. Successors. All agreements of the Company in this
Indenture and the Securities shall bind its successor. All agreements of the
Trustee in this Indenture shall bind its successor.

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

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

 27
 

 

consultation with the Company, shall deem appropriate.
The provisions of this paragraph shall apply in determining the equivalent
principal amount in respect of Securities of a Series denominated in currency
other than Dollars in connection with any action taken by Holders of Securities
pursuant to the terms of this Indenture.

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

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

ARTICLE XI

SINKING
FUNDS

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

The minimum amount of any sinking fund payment
provided for by the terms of the Securities of any Series is herein referred to
as a “mandatory sinking fund payment” and any other amount provided for by the
terms of Securities of such Series is herein referred to as an “optional
sinking fund payment.” If provided for by the terms of Securities of any
Series, the cash amount of any sinking fund payment may be subject to reduction
as provided in Section 11.2. Each sinking fund payment shall be applied to
the redemption of Securities of any Series as provided for by the terms of the
Securities of such Series.

Section 11.2.
Satisfaction of Sinking Fund Payments with Securities. The
Company may, in satisfaction of all or any part of any sinking fund payment
with respect to the Securities of any Series to be made pursuant to the terms
of such Securities (1) deliver outstanding Securities of such Series to
which such sinking fund payment is applicable (other than any of such
Securities previously called for mandatory sinking fund redemption) and
(2) apply as credit Securities of such Series to which such sinking fund
payment is applicable and which have been redeemed either at the election of
the Company pursuant to the terms of such Series of Securities (except pursuant
to any mandatory sinking fund) or through the application of permitted optional
sinking fund payments or other optional redemptions pursuant to the terms of
such Securities, provided that such Securities have not been previously so
credited. Such Securities shall be received by the Trustee, together with an
Officers’ Certificate with respect thereto, not later than 15 days prior to the
date on which the Trustee begins the process of selecting Securities for
redemption, and shall be credited for such purpose by the Trustee at the price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.
If as a result of the delivery or credit of Securities in lieu of cash payments
pursuant to this Section 11.2, the principal amount of Securities of such
Series to be redeemed in order to exhaust the aforesaid cash

 28
 

 

payment shall be less than $100,000, the Trustee need
not call Securities of such Series for redemption, except upon receipt of a
Company Order that such action be taken, and such cash payment shall be held by
the Trustee or a Paying Agent and applied to the next succeeding sinking fund
payment, provided, however, that the Trustee or such Paying Agent shall from
time to time upon receipt of a Company Order pay over and deliver to the
Company any cash payment so being held by the Trustee or such Paying Agent upon
delivery by the Company to the Trustee of Securities of that Series purchased
by the Company having an unpaid principal amount equal to the cash payment
required to be released to the Company.

Section
11.3. Redemption of Securities for Sinking Fund. Not less
than 45 days (unless otherwise indicated in the Board Resolution, supplemental
indenture hereto or Officers’ Certificate in respect of a particular Series of
Securities) prior to each sinking fund payment date for any Series of
Securities, the Company will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing mandatory sinking fund payment for
that Series pursuant to the terms of that Series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting of Securities of that
Series pursuant to Section 11.2, and the optional amount, if any, to be
added in cash to the next ensuing mandatory sinking fund payment, and the
Company shall thereupon be obligated to pay the amount therein specified. Not
less than 30 days (unless otherwise indicated in the Board Resolution, Officers’
Certificate or supplemental indenture in respect of a particular Series of
Securities) before each such sinking fund payment date the Trustee shall select
the Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 3.2 and cause notice of the redemption thereof to be
given in the name of and at the expense of the Company in the manner provided
in Section 3.3. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in
Sections 3.4, 3.5 and 3.6.

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

	
  VITAL IMAGES, INC.

  
	
   

  
	
   

  
	
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  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  [NAME
  OF TRUSTEE]

  
	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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