Document:

Exhibit 4.8

 

EXECUTION COPY

 

 

AGREEMENT AND PLAN OF MERGER

by and among

NOVARTIS CORPORATION,

NOVARTIS BIOTECH
PARTNERSHIP, INC.,

a subsidiary of Novartis Corporation,

CHIRON CORPORATION

 

 

and, for purposes of Section 10.14 only, NOVARTIS
AG

Dated as of October 30, 2005

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  The Merger; Closing; Effective Time

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1.

  	
  The Merger

  	
  1

  
	
   

  	
  1.2.

  	
  Closing

  	
  2

  
	
   

  	
  1.3.

  	
  Effective Time

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  Certificate of Incorporation and By-Laws of
  the Surviving Corporation

  	
  2

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1.

  	
  The Certificate of Incorporation

  	
  2

  
	
   

  	
  2.2.

  	
  The By-Laws

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  Officers and Directors of the Surviving
  Corporation

  	
  2

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1.

  	
  Directors

  	
  2

  
	
   

  	
  3.2.

  	
  Officers

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  Effect of the Merger on Capital Stock;
  Exchange of Certificates

  	
  3

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1.

  	
  Effect on Capital Stock

  	
  3

  
	
   

  	
  4.2.

  	
  Surrender of Certificates for Payment

  	
  3

  
	
   

  	
  4.3.

  	
  Dissenters’ Rights

  	
  5

  
	
   

  	
  4.4.

  	
  Adjustments to Prevent Dilution

  	
  5

  
	
   

  	
  4.5.

  	
  Treatment of Company Options/Other Equity Awards

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  Representations and Warranties of the
  Company

  	
  6

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1.

  	
  Organization, Good Standing and Qualification

  	
  6

  
	
   

  	
  5.2.

  	
  Capitalization of the Company and its Subsidiaries

  	
  7

  
	
   

  	
  5.3.

  	
  Corporate Authority; Approval and Fairness

  	
  9

  
	
   

  	
  5.4.

  	
  Consents and Approvals; No Violations

  	
  9

  
	
   

  	
  5.5.

  	
  Compliance with Laws; Licenses

  	
  10

  
	
   

  	
  5.6.

  	
  No Default

  	
  11

  
	
   

  	
  5.7.

  	
  Company Reports; Financial Statements

  	
  11

  
	
   

  	
  5.8.

  	
  No Undisclosed Material Liabilities

  	
  12

  
	
   

  	
  5.9.

  	
  Litigation

  	
  13

  
	
   

  	
  5.10.

  	
  Material Contracts

  	
  13

  
	
   

  	
  5.11.

  	
  Absence of Certain Changes or Events

  	
  13

  
	
   

  	
  5.12.

  	
  Employee Benefit Plans

  	
  13

  
	
   

  	
  5.13.

  	
  Intellectual Property

  	
  14

  
	
   

  	
  5.14.

  	
  Taxes

  	
  15

  
	
   

  	
  5.15.

  	
  Takeover Statutes; Charter Provisions

  	
  16

  
	
   

  	
  5.16.

  	
  Opinions of Financial Advisors

  	
  16

  
	
   

  	
  5.17.

  	
  Brokers

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  Representations and Warranties of Novartis
  and Merger Sub

  	
  16

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1.

  	
  Organization, Good Standing and Qualification

  	
  16

  
	
   

  	
  6.2.

  	
  Authority Relative to This Agreement

  	
  17

  
	
   

  	
  6.3.

  	
  Consents and Approvals; No Violations

  	
  17

  
	
   

  	
  6.4.

  	
  Merger Sub

  	
  17

  
	
   

  	
  6.5.

  	
  Financing

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  Covenants

  	
  18

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1.

  	
  Interim Operations

  	
  18

  
	
   

  	
  7.2.

  	
  Acquisition Proposals

  	
  20

  
	
   

  	
  7.3.

  	
  Stockholder Meeting; Proxy Material; Recommendation

  	
  22

  
	
   

  	
  7.4.

  	
  Commercially Reasonable Efforts; Cooperation

  	
  23

  
	
   

  	
  7.5.

  	
  Access

  	
  25

  
	
   

  	
  7.6.

  	
  Consents

  	
  26

  
	
   

  	
  7.7.

  	
  Public Announcements

  	
  26

  
	
   

  	
  7.8.

  	
  Employee Benefits

  	
  26

  
	
   

  	
  7.9.

  	
  Indemnification; Directors’ and Officers’ Insurance

  	
  28

  
	
   

  	
  7.10.

  	
  Takeover Statutes

  	
  29

  
	
   

  	
  7.11.

  	
  Retention of Shares; Voting of Shares at Stockholders Meeting

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  Conditions

  	
  29

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1.

  	
  Conditions to the Obligations of the Company, Novartis and Merger Sub
  to Effect the

  Merger

  	
  29

  
	
   

  	
  8.2.

  	
  Conditions to Obligations of Novartis and Merger Sub

  	
  30

  
	
   

  	
  8.3.

  	
  Conditions to Obligation of the Company

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  Termination

  	
  32

  
	
   

  	
   

  	
   

  
	
   

  	
  9.1.

  	
  Termination by Mutual Consent

  	
  32

  
	
   

  	
  9.2.

  	
  Termination by Either Novartis or the Company

  	
  32

  
	
   

  	
  9.3.

  	
  Termination by the Company

  	
  32

  
	
   

  	
  9.4.

  	
  Termination by Novartis

  	
  32

  
	
   

  	
  9.5.

  	
  Effect of Termination and Abandonment

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  Miscellaneous and General

  	
  33

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.

  	
  Non-Survival of Representations and Warranties and Agreements

  	
  33

  
	
   

  	
  10.2.

  	
  Modification or Amendment

  	
  33

  
	
   

  	
  10.3.

  	
  Waiver of Conditions

  	
  33

  
	
   

  	
  10.4.

  	
  Definitions

  	
  33

  
	
   

  	
  10.5.

  	
  Counterparts

  	
  33

  
	
   

  	
  10.6.

  	
  Governing Law and Venue; Waiver
  of Jury Trial

  	
  33

  
	
   

  	
  10.7.

  	
  Notices

  	
  34

  
	
   

  	
  10.8.

  	
  Entire Agreement

  	
  35

  
	
   

  	
  10.9.

  	
  No Third Party Beneficiaries

  	
  36

  
	
   

  	
  10.10.

  	
  Severability

  	
  36

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
   

  	
  10.11.

  	
  Interpretation; Absence of Presumption

  	
  36

  
	
   

  	
  10.12.

  	
  Expenses

  	
  36

  
	
   

  	
  10.13.

  	
  Assignment

  	
  37

  
	
   

  	
  10.14.

  	
  Parent Guarantee

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  ANNEX A

  	
  Defined Terms

  	
   

  

 

iii

 

AGREEMENT AND PLAN OF MERGER

 

AGREEMENT AND PLAN OF MERGER
(this “Agreement”), dated as of October 30, 2005, by and among Novartis Corporation, a New York corporation (“Novartis”)
and an indirect wholly owned subsidiary of Novartis AG, a stock corporation
organized under the laws of Switzerland (“Parent”), Novartis
Biotech Partnership, Inc., a Delaware corporation and a subsidiary of Novartis (“Merger
Sub”), Chiron Corporation, a Delaware corporation (the “Company”),
and, for purposes of Section 10.14 only, Parent.

 

RECITALS

 

WHEREAS, as of the date hereof, Parent, together with
certain of its direct and indirect Subsidiaries (as defined below), owns 79,320,078
shares of the common stock, par value $0.01 par share, of the Company (“Common
Stock”);

 

WHEREAS, the Independent Directors (as defined in the
Governance Agreement, dated as of November 20, 1994, as amended, by and
among Parent (as successor in interest to Ciba-Geigy Limited), Novartis, and
the Company (the “Governance Agreement”)) of the board of directors of
the Company (the “Company Board”) have recommended to the Company Board
that the Company Board adopt this Agreement;

 

WHEREAS, the Company Board has duly approved and
declared advisable this Agreement and the merger of Merger Sub with and into
the Company (the “Merger”) upon the terms and conditions set forth in
this Agreement;

 

WHEREAS, the boards of directors of each of Parent, Novartis
and Merger Sub have adopted this Agreement;

 

WHEREAS, Novartis, as the sole shareholder in Merger
Sub, has approved the Merger; and

 

WHEREAS, the Company, Parent, Novartis and Merger Sub desire
to make those representations, warranties, covenants and agreements specified
herein in connection with this Agreement.

 

NOW, THEREFORE, in consideration of the premises and
the representations, warranties, covenants and agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound hereby, Parent, Novartis,
Merger Sub and the Company agree as follows:

 

ARTICLE I

The Merger; Closing; Effective Time

 

1.1.                              The
Merger.  Upon the terms and subject
to the conditions set forth in this Agreement, at the Effective Time (as
defined below), Merger Sub shall be merged with and into the Company and the
separate corporate existence of Merger Sub shall thereupon cease.  The

 

 

Company shall be the surviving corporation in the Merger (sometimes
hereinafter referred to as the “Surviving
Corporation”), and the separate corporate existence of the Company
with all its rights, privileges, immunities, powers and franchises shall
continue unaffected by the Merger, except as set forth in Article II of
this Agreement.  The Merger shall have
the effects specified in the Delaware General Corporation Law, as amended (the “DGCL”).

 

1.2.                              Closing.  Unless otherwise mutually agreed in writing
between Novartis and the Company, the closing for the Merger (the “Closing”) shall take place at the
offices of Wachtell, Lipton, Rosen & Katz, 51 West 52nd Street, New
York, New York 10019, at 9:00 A.M. local time on the third Business Day
(the “Closing Date”)
following the day on which the last to be satisfied or waived of the conditions
set forth in Article VIII (other than
those conditions that by their nature are to be satisfied at the Closing, but
subject to the satisfaction or waiver of those conditions) shall be satisfied
or waived in accordance with this Agreement. 
For purposes of this Agreement, “Business Day” means any day
other than a Saturday, Sunday, Federal holiday or any other day on which
banking institutions in New York City are authorized or obligated by Law to be
closed.

 

1.3.                              Effective
Time.  As soon as practicable
following the Closing, Novartis and the Company will cause a Certificate of
Merger (the “Certificate of Merger”)
to be executed, acknowledged and filed with the Secretary of State of the State
of Delaware as provided in Section 251 of the DGCL.  The Merger shall become effective at the time
when the  Certificate of Merger has been
duly filed with the Secretary of State of the State of Delaware or at such
later time as may be agreed by the parties in writing and specified in the
Delaware Certificate of Merger (the “Effective
Time”).

 

ARTICLE II

Certificate of Incorporation and By-Laws

of the Surviving Corporation

 

2.1.                              The
Certificate of Incorporation.  The
certificate of incorporation of Merger Sub in effect at the Effective Time
shall be the certificate of incorporation of the Surviving Corporation (the “Charter”),
until thereafter amended as provided therein or by applicable Law.

 

2.2.                              The
By-Laws.  The by-laws of Merger Sub
in effect at the Effective Time shall be the by-laws of the Surviving
Corporation (the “By-Laws”),
until thereafter amended as provided therein or in accordance with the Charter
and applicable Law.

 

ARTICLE III

Officers and Directors

of the Surviving Corporation

 

3.1.                              Directors.  The directors of Merger Sub at the Effective
Time shall, from and after the Effective Time, be the directors of the
Surviving Corporation until their successors

 

2

 

have been duly elected or appointed and qualified or until their
earlier death, resignation or removal in accordance with the Charter and the
By-Laws.

 

3.2.                              Officers.  The officers of the Company at the Effective Time shall, from and after the
Effective Time, be the officers of the Surviving Corporation until their
successors have been duly elected or appointed and qualified or until their
earlier death, resignation or removal in accordance with the Charter and the
By-Laws.

 

ARTICLE IV

Effect of the Merger on Capital Stock;

Exchange of Certificates

 

4.1.                              Effect
on Capital Stock.  At the Effective
Time, as a result of the Merger and without any action on the part of the
holder of any capital stock of the Company:

 

(a)                                 Merger
Consideration.  Each share of Common
Stock issued and outstanding immediately prior to the Effective Time (other
than shares of Common Stock (i) owned by Parent or any direct or indirect
Subsidiary of Parent (collectively, the “Novartis Companies”), (ii) owned by the Company or any
direct or indirect Subsidiary of the Company (except, in the case of clauses (i) and
(ii), for any such shares held on behalf of third parties), or (iii) shares
of Common Stock (the “Dissenting
Shares”) that are owned by stockholders (the “Dissenting Stockholders”)
properly exercising appraisal rights pursuant to Section 262 of the DGCL
(each, an “Excluded Share”
and collectively, “Excluded Shares”))
shall be converted into the right to receive $45.00 in cash (the “Merger Consideration”).  At the Effective Time, all shares of Common
Stock shall no longer be outstanding and all shares of Common Stock shall be
cancelled and retired and shall cease to exist, and each certificate (a “Certificate”)
formerly representing any such shares of Common Stock (other than Excluded
Shares) shall thereafter represent only the right to the Merger Consideration
and any Dissenting Shares shall thereafter represent only the right to receive
the applicable payments set forth in Section 4.3.

 

(b)                                Cancellation
of Shares.  Each share of Common
Stock issued and outstanding immediately prior to the Effective Time and owned
by any of the Novartis Companies, the Company, or any direct or indirect
Subsidiary of the Company (in each case, other than such shares of Common Stock
that are held on behalf of third parties) shall, by virtue of the Merger and
without any action on the part of the holder thereof, cease to be outstanding,
shall be cancelled and retired without payment of any consideration therefor
and shall cease to exist.

 

(c)                                 Merger
Sub.  At the Effective Time, each
share of common stock, par value $0.01 per share, of Merger Sub issued and
outstanding immediately prior to the Effective Time shall be converted into one
share of common stock, par value $0.01 per share, of the Surviving Corporation.

 

4.2.                              Surrender
of Certificates for Payment.

 

(a)                                  Paying
Agent.  At or promptly after the
Effective Time but in no event more than 5 Business Days after the Effective
Time, Novartis shall deposit, or shall cause to be

 

3

 

deposited, with a paying agent appointed by Novartis and approved in
advance by the Company (such approval not to be unreasonably withheld or
delayed) (the “Paying Agent”),
for the benefit of the holders of shares of Common Stock, cash sufficient to
pay the aggregate Merger Consideration in exchange for shares of Common Stock
outstanding immediately prior to the Effective Time (other than Excluded
Shares), deliverable upon due surrender of the Certificates pursuant to the
provisions of this Article IV (such cash being hereinafter referred to as
the “Exchange Fund”).

 

(b)                                 Payment
Procedures.  Promptly after the
Effective Time, Novartis and the Surviving Corporation shall cause the Paying
Agent to mail to each holder of record of shares of Common Stock (i) a
letter of transmittal (which shall be in a form approved by Novartis and the
Company prior to the Effective Time) specifying that delivery shall be
effected, and risk of loss and title to Certificates shall pass, only upon
delivery of Certificates to the Paying Agent and (ii) instructions for use
in effecting the surrender of the Certificates in exchange for the Merger
Consideration.  Upon the surrender of a
Certificate to the Paying Agent in accordance with the terms of such letter of
transmittal, duly executed, the holder of such Certificate shall be entitled to
receive in exchange therefor a check in the amount (after giving effect to any
required tax withholdings) of (x) the number of shares of Common Stock
represented by such Certificate multiplied by (y) the Merger Consideration, and
the Certificate so surrendered shall forthwith be cancelled.  No interest will be paid or accrued on any
amount payable upon due surrender of the Certificates.  In the event of a transfer of ownership of shares
of Common Stock that is not registered in the transfer records of the Company,
a check for any cash to be paid upon due surrender of the Certificate may be
paid to such a transferee if the Certificate formerly representing such shares
of Common Stock is presented to the Paying Agent, accompanied by all documents
required to evidence and effect such transfer and to evidence that any
applicable stock transfer taxes have been paid or are not applicable.

 

(c)                                  Transfers.  At or after the Effective Time, there shall
be no transfers on the stock transfer books of the Company of the shares of
Common Stock that were outstanding immediately prior to the Effective
Time.  If, after the Effective Time,
Certificates are presented to the Surviving Corporation or Novartis for
transfer, they shall be cancelled and exchanged for a check in the proper
amount pursuant to this Article IV.

 

(d)                                 Termination
of Exchange Fund.  Any portion of the
Exchange Fund (including the proceeds of any investments thereof) that remains
unclaimed by the stockholders of the Company for 180 days after the Effective
Time shall be delivered to the Surviving Corporation.  Any holders of shares of Common Stock (other
than Excluded Shares) who have not theretofore complied with this Article IV
shall thereafter look only to the Surviving Corporation for payment of (after
giving effect to any required tax withholdings) the Merger Consideration, upon
due surrender of their Certificates, without any interest thereon.  Notwithstanding the foregoing, none of Novartis,
Merger Sub, the Surviving Corporation, the Company, the Paying Agent or any
other Person shall be liable to any former holder of shares of Common Stock for
any amount properly delivered to a public official pursuant to applicable
abandoned property, escheat or similar Laws. 
For the purposes of this Agreement, the term “Person” shall mean any individual, corporation (including
not-for-profit), general or limited partnership, limited liability company,
joint venture, estate, trust, association, organization, Governmental Entity or
other entity of any kind or nature.

 

4

 

(e)                                  Lost,
Stolen or Destroyed Certificates.  In
the event any Certificate shall have been lost, stolen or destroyed, upon the
making of an affidavit of that fact by the Person claiming such Certificate to
be lost, stolen or destroyed and the posting by such Person of a bond in such
amount and upon such terms as may be required by Novartis as indemnity against
any claim that may be made against it with respect to such Certificate, the
Paying Agent will issue a check in the amount (after giving effect to any
required tax withholdings) of the number of shares of Common Stock represented
by such lost, stolen or destroyed Certificate multiplied by the Merger
Consideration in exchange for such lost, stolen or destroyed Certificate.  Any affidavit of loss presented pursuant to
this Article IV, to be deemed effective, must be in form and substance
reasonably satisfactory to the Surviving Corporation.

 

4.3.                              Dissenters’
Rights.  Any Person who otherwise
would be deemed a Dissenting Stockholder shall not be entitled to receive the
Merger Consideration with respect to the shares of Common Stock owned by such
Person unless and until such Person shall have failed to perfect or shall have
effectively withdrawn or lost such holder’s right to dissent from the Merger
under the DGCL.  Each Dissenting
Stockholder shall be entitled to receive only the payment provided by Section 262
of the DGCL with respect to shares of Common Stock owned by such Dissenting
Stockholder and as to which dissenters’ rights have been properly perfected.  The Company shall give Novartis (i) prompt
notice of any written demands for appraisal, attempted withdrawals of such
demands, and any other instruments served pursuant to applicable Law received
by the Company relating to stockholders’ rights of appraisal, and (ii) the
opportunity to direct all negotiations and proceedings with respect to demand
for appraisal under the DGCL.  The
Company shall not, except with the prior written consent of Novartis,
voluntarily make any payment with respect to any demands for appraisals of
Dissenting Shares, offer to settle or settle any such demands or approve any
withdrawal of any such demands.

 

4.4.                              Adjustments
to Prevent Dilution.  In the event
that the Company changes the number of shares of Common Stock, or securities
convertible or exchangeable into or exercisable for shares of Common Stock,
issued and outstanding prior to the Effective Time as a result of a
reclassification, stock split (including a reverse stock split), stock dividend
or distribution, recapitalization, merger, subdivision, issuer tender or
exchange offer, or other similar transaction, the Merger Consideration shall be
equitably adjusted to reflect such change.

 

4.5.                              Treatment
of Company Options/Other Equity Awards.

 

(a)                                  Immediately
prior to the Effective Time, each stock option to purchase shares of Common
Stock then outstanding (each, a
“Company Option”) shall (i) if unvested, become
fully vested and (ii) be converted into the right to receive, upon the
exercise thereof, an amount in cash (without interest) equal to the Merger
Consideration multiplied by each share of Common Stock subject to such Company
Option.  Each outstanding Company Option
so converted shall, immediately following such conversion, be cancelled and the
holder thereof shall be entitled to receive, as soon as practicable thereafter
but in any event within 20 days after the Effective Time, an amount of
cash (without interest) equal to the product of (x) the total number of shares
of Common Stock subject to such Company Option multiplied by (y) the
excess, if any, of the amount of the Merger Consideration over the exercise
price per share of Common Stock under such Company Option (with the aggregate amount
of such payment

 

5

 

rounded to the nearest cent), less applicable Taxes, if any, required
to be withheld with respect to such payment.

 

(b)                                 Immediately
prior to the Effective Time, each outstanding restricted stock unit or restricted
share right (each outstanding restricted stock unit and restricted share right
hereinafter referred as a “Share Right”) shall become fully vested and
shall entitle the holder thereof to receive, as soon as practicable thereafter
but in any event within 20 days after the Effective Time, an amount in cash
(without interest) equal to the product of (x) the Merger Consideration and (y)
the total number of shares of Common Stock subject to such Share Right, subject
to any deferral election in effect immediately prior to the Effective Time made
by such holder under the Company’s deferred compensation plans, less applicable
Taxes, if any, required to be withheld with respect to such payment.

 

(c)                                  The
compensation committee of the Company Board shall make such adjustments and
amendments to or make such determinations with respect to the Company Options, restricted
stock units, and restricted share right and any other Benefit Plans to
implement the foregoing provisions of this Section 4.5 and Section 7.1(a).

 

ARTICLE V

Representations and Warranties of the Company

 

Except as set forth in (i) the Company Reports (as
defined below) filed prior to the date hereof or (ii) the applicable section of
the disclosure schedule delivered by the Company to Novartis on the date
hereof (the “Company Disclosure Schedule”) (it being understood that any
matter disclosed pursuant to any section or subsection of the Company
Disclosure Schedule shall be deemed to be disclosed for all purposes of
this Agreement and the Company Disclosure Schedule, as long as the relevance of
such disclosure is reasonably apparent), the Company hereby represents and
warrants to Novartis and Merger Sub as follows:

 

5.1.                              Organization,
Good Standing and Qualification.  Each
of the Company and its Subsidiaries is a corporation or other legal entity duly
organized, validly existing and in good standing under the Laws of the
jurisdiction of its incorporation or organization and has all requisite
corporate or other business entity power and authority to own, lease and
operate its properties and assets and to carry on its businesses as now being
conducted and is qualified to do business and is in good standing as a foreign
corporation or other business entity in each jurisdiction where the ownership,
leasing or operation of its properties or assets or conduct of its business
requires such qualification, except where the failure to be so qualified or in
good standing or to have such power or authority, would not, individually or in
the aggregate, reasonably be expected to have a Company Material Adverse Effect
(as defined below) or to prevent, impede or materially delay the ability of the
Company to consummate the transactions contemplated hereby or to perform its
obligations hereunder.  The Company has
heretofore made available to Novartis accurate and complete copies of the
certificate of incorporation and by-laws and other organizational documents, as
currently in effect, of the Company and each of its Significant Subsidiaries.

 

6

 

As used in this Agreement, “Subsidiary” shall
mean, with respect to any party, any corporation or other organization, whether
incorporated or unincorporated or domestic or foreign to the United States, of
which (x) such party or any other Subsidiary of such party is a general partner
or (y) at least a majority of the securities (or other interests having by
their terms ordinary voting power to elect a majority of the board of directors
or others performing similar functions with respect to such corporation or
other organization) is, directly or indirectly, owned or controlled by such
party or by any one or more of its Subsidiaries, or by such party and one or
more of its Subsidiaries.

 

As used in this Agreement, “Significant Subsidiary”
shall mean, with respect to any party, any corporation or other organization,
whether incorporated or unincorporated or domestic or foreign to the United
States, which is a “significant subsidiary” within the meaning of Regulation
S-X promulgated under the Securities Act.

 

As used in this Agreement, “Company Material
Adverse Effect” shall mean any material adverse effect on the business, financial
condition or results of operations of the Company and its Subsidiaries, taken
as a whole; provided, however, that Company Material Adverse
Effect shall not include any effect to the extent resulting from (1) any
change, development, circumstance, event, or occurrence generally affecting the
industries in which the Company or its Subsidiaries operate, except to the
extent the Company or its Subsidiaries are affected in a disproportionate
manner as compared to other similar companies in the industries in which the
Company or its Subsidiaries operate, (2) any change in general economic or
political conditions, (3) any change in Law or GAAP or interpretations
thereof, (4) the direct impact of the announcement or performance of this
Agreement and the transactions contemplated hereby (including the direct impact
of this Agreement on relationships with employees, customers, suppliers and distributors),
(5) any change, development, circumstance, event or occurrence relating to
the revenues to be derived from sales of Fluvirin for the 2005-2006 influenza
season, or (6) any change, development, circumstance, event or occurrence
relating to the research and development relating to Tifacogin.

 

As used in this Agreement, “Knowledge of the
Company” shall mean the knowledge, after reasonable inquiry, of the
following employees of the Company:  the Chief
Executive Officer, the Chief Financial Officer, the Chief Operating Officer, the
General Counsel, the heads of each of the blood testing segment, vaccines
segment and biopharmaceuticals segment of the Company, Chief Scientific Officer
of the Company, the Vice President, Head of Corporate Business Development, the
Vice President, Tax of the Company, and, solely for the purposes of Section 5.13,
Alisa Harbin.

 

5.2.                              Capitalization
of the Company and its Subsidiaries.

 

(a)                                  The
authorized stock of the Company consists of 5,000,000 shares of preferred
stock, par value $0.01 per share (“Preferred Stock”), and 500,000,000
shares of Common Stock, 500,000 of which are designated as restricted common
stock (“Restricted Common Stock”). 
As of September 30, 2005, 188,526,033 shares of Common Stock were
issued and outstanding and no shares of Preferred Stock or Restricted Common
Stock were outstanding.  All shares of
Common Stock have been duly authorized, validly issued, and are fully paid,
nonassessable and free of preemptive rights or other similar rights.  The Company has

 

7

 

no commitments to issue or deliver any shares of Common Stock, except
that, as of September 30, 2005, a total of 29,338,396 shares of Common
Stock are reserved for issuance pursuant to outstanding Company Options and 13,625,549
shares of Common Stock are issuable as of the date hereof upon conversion and
in accordance with the terms of the Company’s 1 5/8% Convertible Debentures due
2033, 2 3/4% Convertible Debentures due 2034 and Zero-Coupon Liquid Yield
Option Notes due 2031 (and without consideration of any change in control
provisions thereof) (collectively, the “Debentures”).  Since September 30, 2005, no shares of Common Stock or
Preferred Stock have been issued other than pursuant to Company Options granted
on or prior to such date, and no Company Options have been granted.  Each of the outstanding shares of capital
stock or other securities of each of the Company’s Subsidiaries is duly
authorized, validly issued, fully paid and nonassessable, and owned by the
Company or by a direct or indirect wholly-owned Subsidiary of the Company, free
and clear of any Lien; provided that certain Subsidiaries that are not
Significant Subsidiaries are not wholly owned by the Company and its
Subsidiaries.  Except as set forth above,
there are no shares of capital stock authorized, reserved, issued or
outstanding and there are no preemptive or other outstanding rights,
subscriptions, options, warrants, stock appreciation rights, redemption rights,
repurchase rights, convertible, exercisable, or exchangeable securities or
other agreements, arrangements or commitments of any character relating to the
issued or unissued share capital or other ownership interest of the Company or
any of its Subsidiaries or any other securities or obligations convertible or
exchangeable into or exercisable for, or giving any Person a right to subscribe
for or acquire, any securities of the Company or its Subsidiaries, and no
securities evidencing such rights are authorized, issued or outstanding.  Except as set forth above, the Company does
not have outstanding any bonds, debentures, notes or other obligations the
holders of which have the right to vote (or convertible or exchangeable into or
exercisable for securities having the right to vote) with the stockholders of
the Company on any matter.  For purposes
of this Agreement, “Lien” means, with respect to any asset (including
any security) any option, claim, mortgage, lien, pledge, charge, security interest
or encumbrance or restrictions of any kind in respect of such asset, other
than: (a) statutory Liens of landlords, statutory Liens of banks and statutory
rights of set-off of banks, statutory Liens of carriers, warehousemen,
mechanics, repairmen, workmen and materialmen, and other Liens imposed by law,
in each case incurred in the ordinary course of business (i) for amounts
not yet overdue or (ii) for amounts that are overdue and that (in the case
of such amounts overdue for a period in excess of 30 days) are being contested
in good faith by appropriate proceedings, so long as such reserves or other
appropriate provisions, if any, as shall be required by GAAP shall have been
made for any such contested amounts; (b) easements, rights-of-way,
restrictions, encroachments, and other minor defects or irregularities in
title, in each case which do not and will not interfere in any material respect
with the ordinary conduct of the business of the Company or any of its
Subsidiaries; (c) Liens in favor of customs and revenue authorities
arising as a matter of Law to secure payment of custom duties in connection
with the importation of goods (d) any zoning or similar law or right
reserved to or vested in any governmental office or agency to control or
regulate the use of any real property; and (e) Liens that do not either
adversely affect the value of the real property subject to such Lien or
prohibit or interfere with the operations of that real property or the business
of the Company or the Subsidiaries.

 

(b)                                 Section 5.2(b) of the Company
Disclosure Schedule sets forth the name of each Person (other than direct
and indirect wholly-owned Subsidiaries) that the Company considers material to
its business in which the Company or any of its Subsidiaries owns any

 

8

 

equity or similar interest in or any interest
convertible into or exchangeable or exercisable for any equity or similar
interest in, any corporation, partnership, joint venture or other business as
of the date of this Agreement, and the percentage interest owned.

 

(c)                                  There
are no voting trusts or other agreements or understandings to which the Company
or any of its Subsidiaries is a party with respect to the voting of any of the
capital stock of the Company.  None of the Company or any of its
Subsidiaries is obligated under any registration rights or similar agreements
to register any shares of capital stock of the Company or any of its
Subsidiaries on behalf of any Person.

 

5.3.                              Corporate
Authority; Approval and Fairness.

 

(a)                                  The
Company has all requisite corporate power and authority and has taken all
corporate action necessary in order to execute, deliver and perform its
obligations under this Agreement and, subject only to adoption of this
Agreement by its stockholders by the Company Requisite Vote, and to consummate
the Merger.  The affirmative vote of a
majority of the outstanding shares of Common Stock (such affirmative vote, the “Company
Requisite Vote”) is the only vote of the holders of any class or series of
capital stock of the Company necessary to adopt, approve or authorize this
Agreement and the Merger.  This Agreement
has been duly and validly executed and delivered by the Company and, assuming
due authorization, execution and delivery hereof by Novartis and Merger Sub,
constitutes a valid and binding agreement of the Company enforceable against
the Company in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to affecting creditors’ rights and to general equity
principles.

 

(b)                                 The
Company Board has (A) upon recommendation by the Independent Directors, duly
approved and declared advisable this Agreement and the Merger; (B) received
the opinions of its financial advisors, Credit Suisse First Boston Corporation and
Morgan Stanley & Co. Incorporated (the “Financial Advisors”),
to the effect that the Merger Consideration to be received by the holders of shares
of Common Stock (other than the Novartis Companies) is fair from a financial
point of view to such holders (it being agreed and understood that such
opinions are for the benefit of the Independent Directors and the Company Board
and may not be relied on by Novartis or Merger Sub); (C) resolved, as of
the date hereof, to recommend adoption of this Agreement, the Merger and the
other transactions contemplated hereby to the holders of shares of Common Stock
(such recommendations being the “Recommendation”); and (D) directed, as of
the date hereof, that this Agreement be submitted to the holders of shares of
Common Stock for their adoption.  All
actions necessary to satisfy the requirements set forth in Article Eleventh,
Section 1(b) of the Company’s Restated Certificate of Incorporation
have been satisfied.

 

5.4.                              Consents
and Approvals; No Violations.  No
filing with or notice to, and no permit, authorization, registration, consent
or approval of, any court or tribunal or administrative, governmental or
regulatory body, agency, authority or other entity (a “Governmental Entity”)
is required on the part of the Company or any of its Subsidiaries for the
execution, delivery and performance by the Company of this Agreement or the
consummation by the Company of the transactions contemplated hereby, except (i) pursuant
to the applicable requirements of the Securities Act of 1933, as amended
(including the rules and regulations

 

9

 

promulgated thereunder the “Securities Act”) and the Securities
Exchange Act of 1934, as amended (including the rules and regulations
promulgated thereunder the “Exchange Act”), (ii) the filing of the
Certificate of Merger pursuant to the DGCL, (iii) compliance with Section 721
of the Defense Production Act of 1950, as amended (“Exon-Florio”), (iv) compliance
with any applicable requirements of the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended (the “HSR Act”), (v) compliance
with any applicable requirements of Council Regulation (EC) No. 139/2004
of 20 January 2004 on the control of concentrations between undertakings
(the “EC Merger Regulation”), (vi) compliance with any applicable
requirements of Laws in other foreign jurisdictions governing antitrust or
merger control matters, (vii) as may be required by the Nasdaq National
Market or (viii) where the failure to obtain such permits, authorizations,
consents or approvals or to make such filings or give such notice would not,
individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect or would not prevent, impair or materially delay the
consummation of the Merger and the transactions contemplated hereby.  Neither the execution, delivery and
performance of this Agreement by the Company nor the consummation by the Company
of the transactions contemplated hereby will (A) conflict with or result
in any breach, violation or infringement of any provision of the respective
certificate of incorporation or by-laws (or similar governing documents) of the
Company or of any its Subsidiaries, (B) result in a breach, violation or
infringement of, or constitute (with or without due notice or lapse of time or
both) a default (or give rise to the creation of any Lien or any right of
termination, amendment, cancellation or acceleration) under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, lease,
license, contract, agreement or other instrument or obligation, whether written
or oral (each a “Contract”), to which the Company or any of its
Subsidiaries is a party or by which any of them or any of their respective
properties or assets may be bound that is required to be described in, or filed
as an exhibit to, any Company Report (as defined below) (each, a “Material
Contract”), or (C) violate or infringe any order, writ, injunction,
judgment, arbitration award, agency requirement, decree, law, statute,
ordinance, rule or regulation, concession, franchise, permit, license or
other governmental authorization or approval (each a “Law”) applicable
to the Company or any of its Subsidiaries or any of their respective properties
or assets, except in the case of (B) or (C) for breaches, violations,
infringements, defaults or changes which would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect (excluding,
for purposes of this Section 5.4, clause (4) of the definition of
Company Material Adverse Effect) or to prevent, impede or materially delay the
ability of the Company to consummate the transactions contemplated hereby or to
perform its obligations hereunder.

 

5.5.                              Compliance
with Laws; Licenses.  The Company and
its Subsidiaries  operate their
respective businesses in substantial compliance with any federal, state, local
or foreign Laws applicable to such businesses (other than any Laws relating to the
subject matters covered in Section 5.12 or 5.14), except for such violations
that would not, individually or in the aggregate, reasonably be expected to
have a Company Material Adverse Effect or to prevent, impede or materially delay
the ability of the Company to consummate the transactions contemplated hereby
or to perform its obligations hereunder. 
No investigation or review by any Governmental Entity with respect to
the Company or any of its Subsidiaries is pending or, to the Knowledge of the
Company, threatened, nor has any Governmental Entity indicated an intention to
conduct the same, except for such investigations or reviews that would not,
individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect.  The

 

10

 

Company and its Subsidiaries each has all governmental permits,
licenses, franchises, variances, exemptions, orders issued or granted by a
Governmental Entity and all other authorizations, consents and approvals issued
or granted by a Governmental Entity necessary to conduct its business as
presently conducted, except those the absence of which would not, individually
or in the aggregate, reasonably be expected to have a Company Material Adverse
Effect.

 

5.6.                              No
Default.  Neither the Company nor any
of its Subsidiaries is in default or violation (and no event has occurred which
with notice or the lapse of time or both would constitute a default or
violation) of any term, condition or provision of (i) its certificate of
incorporation or by-laws (or similar governing documents) or (ii) any Material
Contract, except in the case of clause (ii) of this sentence for
violations, breaches or defaults that would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect.

 

5.7.                              Company
Reports; Financial Statements.

 

(a)                                  The
Company has made available to Novartis each registration statement, report,
proxy statement or information statement filed by it since December 31,
2004 (the “Audit Date”), including (x) the Company’s Annual Report on Form 10-K
for the year ended December 31, 2004, and (y) the Company’s Quarterly
Reports on Form 10-Q for the periods ended March 31, 2005 and June 30, 2005, each in the
form (including exhibits, annexes and any amendments thereto) filed with the
Securities and Exchange Commission (“SEC”), which, together with any
such reports filed subsequent to the date hereof, are referred to as the “Company
Reports”.  The Company has filed and
furnished all forms, statements, reports and documents required to be filed or
furnished by it with the SEC pursuant to applicable securities statutes,
regulations, policies and rules since January 1, 2004.  The Company Reports were prepared in all
material respects in accordance with the applicable requirements of the
Securities Act and the Exchange Act and complied in all material respects with
the then applicable accounting standards. 
As of their respective dates (and, if amended, as of the date of such
amendment) the Company Reports did not, and any Company Reports filed with the
SEC subsequent to the date of this Agreement will not, contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements made therein, in light of
the circumstances in which they were made, not misleading.  To the Knowledge of the Company, there are no
outstanding comment letters or requests for information from the SEC with
respect to any Company Report.

 

(b)                                 Each
of the consolidated balance sheets included in or incorporated by reference
into the Company Reports (including the related notes and schedules) filed on
or prior to the date of this Agreement fairly presents, and if filed after the
date of this Agreement, will fairly present, the consolidated financial
position of the Company and its Subsidiaries, as of its date, and each of the
consolidated statements of operations, cash flows and of changes in stockholders’
equity included in or incorporated by reference into the Company Reports
(including any related notes and schedules) fairly presents, and if filed on or
after the date of this Agreement, will fairly present, the results of
operations, retained earnings and changes in financial position, as the case
may be, of the Company and its Subsidiaries for the periods set forth therein
(subject, in the case of unaudited statements, to notes and normal year-end
audit adjustments), in each case in accordance with U.S. generally accepted accounting
principles

 

11

 

(“GAAP”) consistently applied during the periods involved,
except as may be noted therein.  The
Company has designed and maintains a system of internal controls over financial
reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the
Exchange Act) sufficient to provide reasonable assurances regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles.  The Company (A) has
designed and maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) of the Exchange Act) to ensure that material information
required to be disclosed by the Company in the reports that it files or submits
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the SEC’s rules and forms and is accumulated
and communicated to the Company’s management as appropriate to allow timely
decisions regarding required disclosure, and (B) has disclosed, based on
its most recent evaluation of such disclosure controls and procedures prior to
the date hereof, to the Company’s auditors and the audit committee of the
Company Board (1) any significant deficiencies and material weaknesses in
the design or operation of internal controls over financial reporting that are
reasonably likely to adversely affect in any material respect the Company’s
ability to record, process, summarize and report financial information and (2) any
fraud, whether or not material, that involves management or other employees who
have a significant role in the Company’s internal controls over financial
reporting.

 

(c)                                  Since
December 31, 2004, (x) through the date hereof, to the Knowledge of the
Company neither the Company nor any of its Subsidiaries nor any director,
officer, employee, auditor, accountant or representative of the Company or any
of its Subsidiaries has received or otherwise had or obtained knowledge of any
material complaint, allegation, assertion or claim, whether written or oral,
regarding the accounting or auditing practices, procedures, methodologies or
methods of the Company or any of its Subsidiaries or their respective internal
accounting controls, including any material complaint, allegation, assertion or
claim that the Company or any of its Subsidiaries has engaged in questionable
accounting or auditing practices, and (y) no attorney representing the Company
or any of its Subsidiaries, whether or not employed by the Company or any of
its Subsidiaries, has reported evidence of a material violation of securities
Laws, breach of fiduciary duty or similar violation by the Company or any of
its officers, directors, employees or agents to the Company Board or any
committee thereof or to the General Counsel or Chief Executive Officer of the
Company.

 

5.8.                              No
Undisclosed Material Liabilities. 
Except: (i) liabilities disclosed and provided for on the balance
sheets (including the notes thereto) included in the Company Reports filed by
the Company prior to the date hereof; (ii) liabilities or obligations
incurred in the ordinary course of business consistent with past practices
since December 31, 2004; (iii) liabilities and obligations incurred
under contracts to which the Company or any of its Subsidiaries is a party or
by which any of them or any of their respective properties or assets may be
bound, other than liabilities or obligations arising from a breach or default
under any such contract; or (iv) liabilities or obligations that would not
be reasonably expected, either individually or in the aggregate, to have a Company
Material Adverse Effect, there are no liabilities or obligations of the Company
or any of its Subsidiaries of any kind whatsoever, whether accrued, contingent,
fixed, matured or otherwise, and whether or not required to be disclosed.

 

12

 

5.9.                              Litigation.  There is no civil, criminal or administrative
suit, claim, hearing, inquiry, action, proceeding or investigation (each an “Action”)
pending to which the Company or any of its Subsidiaries is a party or, to the Knowledge
of the Company, threatened against the Company or any of its Subsidiaries,
except as would not, individually or in the aggregate, reasonably be expected
to have a Company Material Adverse Effect or to prevent, impede or materially
delay the ability of the Company to consummate the transactions contemplated
hereby or to perform its obligations hereunder. 
Neither the Company nor any of its Subsidiaries is subject to any
outstanding order, writ, injunction or decree, except as would not,
individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect or to prevent, impede or materially delay the ability
of the Company to consummate the transactions contemplated hereby or to perform
its obligations hereunder.

 

5.10.                        Material
Contracts.  To the Knowledge of the
Company and its Subsidiaries, all of the Material Contracts of the Company and
its Subsidiaries are in full force and effect, except as would not,
individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect.

 

5.11.                        Absence
of Certain Changes or Events.  Since September 30,
2005 and through the date hereof, there has not been any Company Material
Adverse Effect or any event, occurrence, discovery or development which would,
individually or in the aggregate, reasonably be expected to have or result in a
Company Material Adverse Effect or to prevent, impede or materially delay the
ability of the Company to consummate the transactions contemplated hereby or to
perform its obligations hereunder.

 

5.12.                        Employee
Benefit Plans.

 

(a)                                  Section 5.12(a) of
the Company Disclosure Schedule sets forth a list of all material Benefit
Plans.  “Benefit Plans” means each “employee
benefit plan,” as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), and other employee
benefit or compensation plans, policies, agreements, programs, and
arrangements, that are maintained by the Company, any Subsidiary of the Company
or to which the Company or any Subsidiary of the Company is party thereto or
obligated to contribute thereunder for current or former employees or directors
of the Company or any Subsidiary of the Company other than Benefit Plans
maintained outside of the United States primarily for the benefit of Employees (the
“non-U.S. Employees”) working outside of the United States (such plans
hereinafter referred to as “non-U.S. Benefit Plans”), a list of which
will be provided no later than thirty (30) days following the date of this
Agreement.  True, correct and complete
copies of the following documents, with respect to each Benefit Plan listed on Section 5.12(a) of
the Company Disclosure Schedule, have been delivered or made available to Novartis
by the Company:  (i) the Benefit
Plan and related trust documents, and amendments thereto; (ii) the most
recent Form 5500, if applicable and (iii) summary plan descriptions,
if applicable.  Following the date of
this Agreement, the Company will provide all other material documents relating
to Benefit Plans reasonably requested by Novartis, within ten (10) days
following such request, to the extent permitted by Law.

 

(b)                                 Except
as would not, individually or in the aggregate, reasonably be expected to have
a Company Material Adverse Effect (i) no Benefit Plan is subject to Title
IV of

 

13

 

ERISA, and no circumstances exist that could result in liability to the
Company or any Subsidiary of the Company under Title IV or Section 302 of
ERISA, and (ii) neither the Company nor any Subsidiary of the Company maintains,
is or will be required to provide, medical or other welfare benefits to
employees, directors, former employees, former directors, or retirees after
their termination of employment or service, other than pursuant to applicable
Law.

 

(c)                                  Except
as would not, individually or in the aggregate, reasonably be expected to have
a Company Material Adverse Effect, each Benefit Plan that is intended to
qualify under Section 401 of the Internal Revenue Code of 1986, as amended
(the “Code”), and each trust maintained pursuant thereto, has received a
favorable determination letter from the Internal Revenue Service, and nothing
has occurred with respect to the operation of any such Benefit Plan that could
cause the loss of such qualification.

 

(d)                                 Except
where a failure to comply would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, (i) all
Benefit Plans have been maintained and administered, in all material respects,
in accordance with their terms and in accordance with all applicable Laws, (ii) there
are no pending or, to the Knowledge of the Company, threatened claims against
the Benefit Plans, any related trusts, any Benefit Plan sponsor or plan
administrator, or any fiduciary of the Benefit Plans with respect to the
operation of such plans (other than routine benefit claims), and (iii) all
non-U.S. Benefit Plans (a) if they are intended to qualify for special tax
treatment meet all requirements for such treatment, and (b) if they are
intended to be funded and/or book-reserved are fully funded and/or book
reserved, as appropriate, based upon reasonable actuarial assumptions.

 

(e)                                  Except
as would not, individually or in the aggregate, reasonably be expected to have
a Company Material Adverse Effect, neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated hereby (either
alone of in conjunction with another event, such as a termination of
employment) will (i) result in any payment becoming due to any current or
former director or current or former employee of the Company or any of its
Subsidiaries under any Benefit Plan or otherwise, (ii) increase any
benefits otherwise payable under any Company Benefit Plan, (iii) result in
any acceleration of the time of payment or vesting of any such benefits, or (iv) result in an “excess parachute
payment” under Section 280G of the Code.

 

5.13.                        Intellectual
Property.

 

(a)                                  For
purposes of this Agreement, “Intellectual Property” means all U.S. and
foreign (i) trademarks, service marks, trade names, Internet domain names,
designs, slogans, and general intangibles of like nature, together with all
goodwill related to the foregoing and including any registrations, renewals and
applications for any of the foregoing ; (ii) patents (including any
registrations, renewals and applications therefor, (iii) copyrights
(including any registrations, renewals and applications therefor), and (iv) inventions,
trade secrets and other confidential information, know-how, proprietary
processes, formulae, algorithms, models, and methodologies (collectively, “Trade
Secrets”), in each case to the extent recognized as intellectual property
under applicable Law.

 

14

 

(b)                                 The
Intellectual Property owned by the Company and its Subsidiaries is free and
clear of all Liens except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect.

 

(c)                                  To
the Knowledge of the Company, the conduct of the business of the Company and
its Subsidiaries does not in any material respect infringe upon the Intellectual
Property of any third party.  There are
no claims pending or, to the Knowledge of the Company, threatened, and neither
the Company nor any of its Subsidiaries has received any written notice of a
material third-party claim, in each case alleging that the conduct of the
business of the Company and its Subsidiaries infringes upon the Intellectual
Property of any third party or challenging the ownership, use, validity or
enforceability of any Intellectual Property, except in each case as would not,
individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect.

 

(d)                                 To
the Knowledge of the Company, no third party is infringing or otherwise
violating any Intellectual Property owned by the Company or any of its
Subsidiaries, and no such claims have been brought against any third party by
the Company or any of its Subsidiaries, except for such infringements and
claims as would not, individually or in the aggregate, reasonably be expected
to have a Company Material Adverse Effect.

 

(e)                                  Except
as would not, individually or in the aggregate, reasonably be expected to have
a Company Material Adverse Effect, (i) the Company and its Subsidiaries
have taken reasonable steps to protect the confidentiality of material Trade
Secrets and (ii) to the Knowledge of the Company, there have been no
breaches of confidentiality or loss of trade secret rights with respect to any
material Intellectual Property.

 

5.14.                        Taxes.  Except as would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse
Effect:  (i) the Company and each of
its Subsidiaries have prepared in good faith and duly and timely filed (taking
into account any extension of time within which to file) all Tax Returns
required to be filed by any of them and all such filed Tax Returns are complete
and accurate in all respects; (ii) the Company and each of its
Subsidiaries have paid all Taxes that are required to be paid by any of them
and the Company and all of its Subsidiaries have withheld and paid all Taxes
required to have been withheld and paid in connection with any amounts paid or
owing to any employee, independent contractor, stockholder, creditor or other
third party; (iii) the Company and each of its Subsidiaries have not
waived any statute of limitations with respect to Taxes which has not since
expired or agreed to any extension of time with respect to a Tax assessment or
deficiency which has not since expired; (iv) the Tax Returns referred to
in clause (i) of this Section 5.14 have been examined by the IRS or
the appropriate state, local or foreign taxing authority or the period for
assessment of the Taxes in respect of which such Tax Returns were required to
be filed has expired, and all deficiencies asserted or assessments made as a
result of such examinations have been paid in full, settled, or adequately
provided for, in accordance with GAAP, in the financial statements contained in
the Company Reports filed on or prior to the date of this Agreement; and (v) as
of the date of this Agreement, there are not pending or, to the Knowledge of
the Company, threatened in writing, any audits, examinations, investigations or
other proceedings in respect of Taxes or Tax matters with respect to the Company
or any of its Subsidiaries.  For purposes
of this Agreement (i) the term “Tax” (including, with correlative
meaning, the term “Taxes”)

 

15

 

includes all federal, state, local and foreign income, profits,
franchise, gross receipts, environmental, customs duty, capital stock,
severances, stamp, payroll, sales, employment, unemployment, disability, use,
property, withholding, excise, production, value added, occupancy and other
taxes, duties or assessments of any nature whatsoever, together with all interest,
penalties and additions imposed with respect to such amounts and any interest
in respect of such penalties and additions, whether disputed or not and
including any obligations to indemnify or otherwise assume or succeed to the
Tax liability of any other Person and (ii) the term “Tax Return”
includes all returns and reports (including elections, declarations,
disclosures, schedules, estimates and information returns) required to be filed
with, or supplied to, any federal, state, local or foreign tax authority with
respect to Taxes.

 

5.15.                        Takeover
Statutes; Charter Provisions .  The Company
Board, upon recommendation by the Independent Directors, has
approved the Merger and this Agreement, and such approval is sufficient to
render inapplicable to the Merger and this Agreement the limitations on business
combinations contained in any restrictive provision of any “fair price,” “moratorium,”
“control share acquisition,” “interested stockholder” or other similar
anti-takeover statute or regulation (including, without limitation, Section 203
of the DGCL to the extent applicable) (“Takeover Statute”) or
restrictive provision of any applicable anti-takeover provision in the Company’s
certificate of incorporation or by-laws. 
No other state takeover statute or similar statute or regulation or
other comparable takeover provision of the Company’s certificate of incorporation
or by-laws applies to the Merger, this Agreement or any of the transactions
contemplated by this Agreement.

 

5.16.                        Opinions
of Financial Advisors.  The Financial
Advisors have delivered their written opinions (the “Fairness Opinions”)
to the Independent Directors and the Company Board to the effect that, as of
the date of such opinions, the Merger Consideration to be received by the
holders of shares of Common Stock (other than the Novartis Companies) pursuant
to the Merger pursuant to Article IV hereof is fair from a financial point
of view to such holders.  It is agreed
and understood that such opinions are for the benefit of the Independent Directors
and the Company Board and may not be relied on by Novartis or Merger Sub.

 

5.17.                        Brokers.  No broker, finder or investment banker (other
than the Financial Advisors) is entitled to any brokerage, finders’ or other
fee or commission in connection with the transactions contemplated hereby based
upon arrangements made by or on behalf of the Company.

 

ARTICLE VI

Representations and Warranties

of Novartis and Merger Sub

 

Novartis and Merger Sub hereby represent and warrant
to the Company as follows:

 

6.1.                              Organization,
Good Standing and Qualification. 
Each of Parent, Novartis and Merger Sub is a corporation or other legal
entity duly organized, validly existing and in good standing under the Laws of
the jurisdiction of its incorporation or organization and has all

 

16

 

requisite corporate or other business entity power and authority to
own, lease and operate its properties and assets and to carry on its businesses
as now being conducted and is qualified to do business and is in good standing
as a foreign corporation or other business entity in each jurisdiction where
the ownership, leasing or operation of its properties or assets or conduct of
its business requires such qualification, except where the failure to be so
qualified or in good standing or to have such power or authority, would not,
individually or in the aggregate, reasonably be expected to prevent or
materially delay or materially impair the ability of Novartis or Merger Sub to
consummate the Merger and the other transactions contemplated by this
Agreement.  Novartis has heretofore
delivered or made available to the Company accurate and complete copies of the
certificate of incorporation and by-laws (or similar governing documents), as
currently in effect, of Novartis and Merger Sub.

 

6.2.                              Authority
Relative to This Agreement.  Each of Parent,
Novartis and Merger Sub has all necessary corporate power and authority, and
has taken all action necessary, to execute, deliver and perform its obligations
under this Agreement and to consummate the transactions contemplated hereby in
accordance with the terms hereof.  This
Agreement has been duly and validly executed and delivered by each of Parent, Novartis
and Merger Sub and, assuming due authorization, execution and delivery hereof
by the Company, constitutes a valid and binding agreement of each of Parent, Novartis
and Merger Sub, enforceable against each of Parent, Novartis and Merger Sub in
accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to affecting creditors’ rights and to general equity principles.

 

6.3.                              Consents
and Approvals; No Violations.  No
filing with or notice to, and no permit, authorization, registration, consent
or approval of, any Governmental Entity is required on the part of Parent, Novartis
or Merger Sub or any of their Subsidiaries for the execution, delivery and
performance by Parent, Novartis and Merger Sub of this Agreement or the consummation
by Parent, Novartis or Merger Sub of the transactions contemplated hereby, other
than (i) as set forth in Schedule 6.3, (ii) pursuant to the
applicable requirements of the Securities Act and the Exchange Act, (iii) the
filing of the Certificate of Merger pursuant to the DGCL, (iv) compliance
with Exon-Florio, the HSR Act and the EC Merger Regulation, (v) compliance
with any applicable requirements of laws, rules and regulations in other
foreign jurisdictions governing antitrust or merger control matters or (vi) where
the failure to obtain such permits, authorizations, consents or approvals or to
make such filings or give such notice would not reasonably be expected to prevent,
impair or materially delay the consummation of the Merger and the transactions
contemplated hereby.

 

6.4.                              Merger
Sub.  All of the issued and
outstanding capital stock of Merger Sub is, and at the Effective Time will be,
owned by Novartis or a direct or indirect wholly-owned Subsidiary of Novartis.  Merger Sub has not conducted any business
prior to the date hereof and has no, and prior to the Effective Time will have
no, assets, liabilities or obligations of any nature other than those incident
to its formation and pursuant to this Agreement and the Merger and the other
transactions contemplated by this Agreement.

 

6.5.                              Financing.  The Novartis Companies have, as of the date
hereof, and will have, as of the Closing Date, available cash or other liquid
assets to pay the aggregate Merger Consideration in full.

 

17

 

ARTICLE VII

Covenants

 

7.1.                              Interim
Operations.

 

(a)                                  Except
as set forth in the corresponding section of the Company Disclosure Schedule or
otherwise as expressly contemplated hereby, subject to applicable Law, the
Company covenants and agrees as to itself and its Subsidiaries that, from the
date of this Agreement until the Effective Time, the business of it and its
Subsidiaries shall be conducted only in the ordinary course and, to the extent
consistent therewith, it and its Subsidiaries shall use their respective commercially
reasonable efforts to preserve its business organization intact and maintain
its existing relations and goodwill with customers, suppliers, distributors,
creditors, lessors, employees and business associates and keep available the
services of the present key employees and agents of the Company and its
Subsidiaries.  Without limiting the
generality of the foregoing and in furtherance thereof, except as set forth in
the corresponding section of the Company Disclosure Schedule or as
otherwise expressly contemplated hereby, from the date of this Agreement until
the Effective Time, the Company will not and will not permit its Subsidiaries
to (unless Novartis shall otherwise approve in writing, which approval shall
not be unreasonably withheld or delayed and shall be subject to the procedures
set forth on Schedule 7.1(a) of the Company Disclosure Schedule):

 

(i)                                     adopt
or propose any change in its certificate of incorporation or by-laws (or
similar governing documents);

 

(ii)                                  merge
or consolidate the Company or any of its Subsidiaries with any other Person,
except for any such transactions among wholly-owned Subsidiaries of the
Company;

 

(iii)                               acquire
assets outside of the ordinary course of business from any Person with a purchase price in the aggregate in
excess of $2,000,000 individually, other than acquisitions pursuant to any
Contract in effect as of the date of this Agreement and described in or filed
as an exhibit to the Company Reports filed prior to the date of this Agreement;

 

(iv)                              other
than in the ordinary course of business consistent with past practice (excluding
for this purpose the activities of the Company and its Subsidiaries in 2005) or
pursuant to Contracts in effect as of the date of this Agreement as set forth
on Section 7.1(a)(iv) of the Company Disclosure Schedule, and other
than the issuance of shares of Common Stock upon the exercise of outstanding
Company Options, pursuant to other equity-based awards granted under other Company equity-based compensation plans
prior to the date of this Agreement consistent with the terms thereof or pursuant
to the terms of the Debentures (to the extent required by such terms),
in each case, in accordance with their terms, issue, sell, pledge, dispose of,
grant, transfer, lease, license, guarantee, encumber, or authorize the
issuance, sale, pledge, disposition, grant, transfer, lease, license, guarantee
or encumbrance of, any shares of capital stock of the Company or any of its
Subsidiaries (other than the issuance of shares by a wholly-owned Subsidiary

 

18

 

of the Company to the
Company or another wholly-owned Subsidiary), or securities convertible or
exchangeable or exercisable for any shares of such capital stock, or any
options, warrants or other rights of any kind to acquire any shares of such
capital stock or such convertible or exchangeable securities;

 

(v)                                 other
than pursuant to Contracts in effect as of the date of this Agreement and
described in or filed as an exhibit to the Company Reports filed prior to the
date of this Agreement, make any loan, advance or capital contribution to or
investment in any Person (other than a wholly-owned Subsidiary of the Company) outside
the ordinary course of business (other than loans to employees not to exceed,
in the aggregate, $2,500,000 in principal amount);

 

(vi)                              declare,
set aside, make or pay any dividend or other distribution, payable in cash,
stock, property or otherwise, with respect to any of its capital stock (except
for dividends or other distributions by any direct or indirect wholly-owned
Subsidiary of the Company to the Company or to any other direct or indirect
wholly-owned Subsidiary of the Company and periodic dividends and other
periodic distributions by non-wholly-owned Subsidiaries in the ordinary course
of business);

 

(vii)                           reclassify,
combine, split, subdivide or redeem, purchase or otherwise acquire, directly or
indirectly, any of its capital stock or securities convertible or exchangeable
into or exercisable for any shares of its capital stock;

 

(viii)                        incur any third-party
indebtedness for borrowed money or guarantee such indebtedness of another
Person, except for unsecured indebtedness
for borrowed money incurred in the ordinary course of business repayable within
180 days without penalty;

 

(ix)                                except
as set forth in Section 7.1(a)(ix) of the Company Disclosure
Schedule, make or authorize any capital expenditure;

 

(x)                                   enter
into any Contract that would have been a Material Contract had it been entered
into prior to the execution of this Agreement, other than any Contract (A) for
the sale of products in the ordinary course of business or (B) providing
for any capital expenditure to the extent permitted by Section 7.1(a)(ix);

 

(xi)                                other
than in the ordinary course of business, amend or modify in any material
respect, or terminate or waive any material right or benefit under, any
Material Contract;

 

(xii)                             make
any significant changes with respect to accounting policies or practices,
except as required by changes in GAAP or by Law;

 

(xiii)                          settle
any litigation or other proceedings before or threatened to be brought before a
Governmental Entity or arbitral proceeding for an amount payable by or on
behalf of the Company or any Subsidiary in excess of $2,500,000 (exclusive of
any amounts to be received by the Company in reimbursement of such settlement
amount, whether under any insurance policy or indemnity, other than such
amounts that are

 

19

 

contested) or which would
be reasonably likely to have any adverse impact on the operations of the
Company or any of its Subsidiaries or on any current or future litigation or
other proceeding of the Company or any of its Subsidiaries;

 

(xiv)                         except as
required by Law, make any material Tax election or take any material position
on any material Tax Return filed on or after the date of this Agreement or
adopt any material method therefor that is inconsistent with elections made,
positions taken or methods used in preparing or filing similar Tax Returns in
prior periods;

 

(xv)                            sell,
lease, license or otherwise dispose of any assets of the Company or its
Subsidiaries except for (i) sales of (A) products or services
provided in the ordinary course of business or (B) other assets in
aggregate amount not to exceed $5,000,000, or (ii) licenses of
Intellectual Property of the Company or its Subsidiaries in the ordinary course
of business (but excluding (x) any licenses of programs, projects or products
or (y) any licenses with up-fronts or milestones in excess of $5,000,000 in the
aggregate), and other than pursuant to Contracts in effect as of the date of
this Agreement as set forth on Section 7.1(xv) of the Company Disclosure
Schedule;

 

(xvi)                         other
than pursuant to Contracts in effect as of the date of this Agreement as set
forth on Section 7.1(xvi) of the Company Disclosure Schedule, or as
otherwise required by Law, (i) enter into any new employment or
compensatory agreements with, or increase the compensation and employee
benefits of, any employee, consultant, or director of the Company or any of its
Subsidiaries (including entering into any bonus, severance, change of control,
termination, reduction-in-force or consulting agreement or other employee
benefits arrangement or agreement pursuant to which such person has the right
to any form of compensation from the Company or any of its Subsidiaries), (ii) hire
any employee to fill a position at the level of (A) executive committee
member or other executive officer or (B) vice president or above who reports
directly to an executive committee member, or (iii) adopt or amend in any
respect, or accelerate vesting or payment under, any Benefit Plan in the case
of clauses (i) and (iii) above other than in the ordinary course of
business consistent with past practice;

 

(xvii)                      engage in
the conduct of any new line of business, other than as expressly permitted by Section 7.1(a)(iii) of
the Company Disclosure Schedule; or

 

(xviii)                   agree, resolve
or commit to do any of the foregoing.

 

7.2.                              Acquisition
Proposals.

 

(a)                                  The
Company agrees that neither it nor any of its Subsidiaries nor any of the
officers and directors (other than any directors designated by any of the
Novartis Companies) of it or its Subsidiaries shall, and that it shall use its
commercially reasonable efforts to cause its and its Subsidiaries’ employees,
agents and representatives (including any investment banker, attorney,
consultant or accountant (collectively, “Representatives”) retained by
it) not to, directly or indirectly, initiate, solicit or knowingly encourage or
facilitate any inquiries or the making of any proposal or offer with respect to:
(i) a merger, reorganization, share exchange, consolidation

 

20

 

or similar transaction involving the Company; (ii) any purchase of
any material portion of the equity interest in the Company or of 30% or more of
the assets of the Company and its Subsidiaries, taken as a whole; (iii) the
adoption by the Company of a plan of liquidation or recapitalization; or (iv) any
combination of the foregoing  (any such
proposal or offer being hereinafter referred to as an “Acquisition Proposal”).  The Company further agrees that neither it
nor any of its Subsidiaries nor any of the officers and directors (other than
any directors designated by any of the Novartis Companies) of it or its
Subsidiaries shall, and that it shall use its commercially reasonable efforts
to cause its and its Subsidiaries’ Representatives not to, directly or indirectly,
engage in any negotiations concerning, or provide any confidential information
or data to, or have any discussions with, any Person relating to an Acquisition
Proposal, or otherwise knowingly encourage or facilitate any effort or attempt
to make or implement an Acquisition Proposal; provided, however, that
nothing contained in this Agreement shall prevent the Company or the Independent
Directors or the Company Board from (x) complying with its disclosure
obligations under Sections 14d-9 and 14e-2 of the Exchange Act with regard to
an Acquisition Proposal; provided that if such disclosure has the effect
of withdrawing, modifying or qualifying the Recommendation in a manner adverse
to Novartis or the approval of this Agreement by the Independent Directors or
the Company Board, Novartis shall have the right to terminate this Agreement to
the extent set forth in Section 9.4 of this Agreement; and (y) at any time
prior to, but not after, the conditions set forth in Section 8.1(a) have
been satisfied, (A) providing information in response to a request
therefor by a Person who has made an unsolicited bona fide written Acquisition
Proposal (provided, that for purposes of this Section 7.2(a)(y) an
Acquisition Proposal must involve the acquisition of in excess of 50% of the
shares of Common Stock) if the Company receives from the Person so requesting
such information an executed confidentiality agreement on customary terms; (B) engaging
in any negotiations or discussions with any Person who has made an unsolicited
bona fide written Acquisition Proposal if the Company receives from such Person
an executed confidentiality agreement as described in (A) above; or (C) withdrawing,
modifying or qualifying the Recommendation, or recommending such an Acquisition
Proposal, in each case if and only to the extent that (I) in each such
case referred to in clause (A), (B) or (C) above, the Company Board or
the Independent Directors, as applicable, determines in good faith after
consultation with outside legal counsel that such action is necessary in order
for its directors to comply with their fiduciary duties under applicable Law
and (II) in each case referred to in clause (B) or (C) above,
the Company Board or the Independent Directors, as applicable, determines in
good faith (after consultation with its financial advisor and counsel) that
such Acquisition Proposal, if accepted, is reasonably likely to be consummated,
taking into account all legal, financial, regulatory and other aspects of the
proposal, the likelihood of obtaining financing, and the Person making the
proposal and would, if consummated, result in a transaction more favorable to
the Company’s stockholders from a financial point of view than the transaction
contemplated by this Agreement taking into account any change in the proposal
proposed by Novartis; and (III) in the case of clause (C), Novartis shall have
had written notice of the Company Board’s or the Independent Directors’, as
applicable, intention to take the action referred to in clause (C) at
least three Business Days prior to the taking of such action by the Company
Board or the Independent Directors, as applicable (any such more favorable
Acquisition Proposal is referred to in this Agreement as a “Superior
Proposal”).

 

(b)                                 The
Company agrees that it will immediately cease and cause to be terminated any
existing activities, discussions or negotiations with any Person conducted

 

21

 

heretofore with respect to any Acquisition Proposal.  The Company agrees that it will take the
necessary steps to promptly inform its and its Subsidiaries’ officers and
directors (other than any directors designated by any of the Novartis
Companies) and their respective Representatives of the obligations undertaken
in this Section 7.2.  The Company
agrees that it will notify Novartis promptly, but in any event within 24 hours,
if any such inquiries, proposals or offers are received by, any such
information is requested from, or any such discussions or negotiations are
sought to be initiated or continued with, it or any of its Representatives
indicating, in connection with such notice, the name of such Person and the
material terms and conditions of any proposals or offers, and thereafter shall
keep Novartis informed, on a current basis, of any significant changes in the status
and terms of any such proposals or offers. 
The Company agrees promptly to request the return or destruction of all
information and materials provided prior to the date of this Agreement by it,
its affiliates (other than the Novartis Companies) or their respective
Representatives with respect to the consideration or making of any Acquisition
Proposal.

 

7.3.                              Stockholder
Meeting; Proxy Material; Recommendation.

 

(a)                                  The
Company shall duly call and hold a meeting of its stockholders (the “Stockholders Meeting”) for the
purpose of obtaining the adoption of this Agreement by the Company stockholders
required to satisfy the conditions set forth in Section 8.1(a) as
promptly as practicable after the SEC clears the Company Proxy Statement and
the Schedule 13E-3.  In connection
with the Stockholders Meeting, the Company will (i) as promptly as
practicable, prepare and file with the SEC the proxy statement (the “Company
Proxy Statement”) relating to the Merger and the other transactions
contemplated hereby, (ii) respond as promptly as reasonably practicable to
any comments received from the SEC with respect to such filing and will provide
copies of such comments to Novartis and Merger Sub promptly upon receipt, (iii) as
promptly as reasonable practicable, prepare and file (after Novartis and Merger
Sub have had a reasonable opportunity to review and comment on) any amendments
or supplements necessary to be filed in response to any SEC comments or as
required by Law, (iv) use its commercially reasonable efforts to have
cleared by the SEC, and will thereafter mail to its stockholders as promptly as
reasonably practicable, the Company Proxy Statement and all other customary
proxy or other materials for meetings such as the Stockholders Meeting, (v) to
the extent required by applicable Law, as promptly as reasonably practicable
prepare, file and distribute to the Company stockholders any supplement or
amendment to the Company Proxy Statement if any event shall occur which
requires such action at any time prior to the Stockholders Meeting and (vi) otherwise
use commercially reasonable efforts to comply with all requirements of Law
applicable to the Stockholders Meeting and the Merger.  Novartis and Merger Sub shall cooperate with
the Company in connection with the preparation and filing of the Company Proxy
Statement, including furnishing the Company upon request with any and all
information regarding Novartis, Merger Sub or their respective affiliates, the
plans of such Persons for the Surviving Corporation after the Effective Time,
and all other matters and information as may be required to be set forth in the
Company Proxy Statement under the Exchange Act or the rules and
regulations promulgated thereunder.  The Company
will provide Novartis and Merger Sub a reasonable opportunity to review and
comment upon the Company Proxy Statement, or any amendments or supplements
thereto, or any SEC comments received with respect thereto, prior to filing the
same with the SEC.  In connection with the
filing of the Company Proxy Statement, the Company, Novartis and Merger Sub will
cooperate to (i) concurrently with the preparation and filing of the Company
Proxy Statement, jointly prepare and file with the SEC the Schedule

 

22

 

13E-3 (the “Schedule 13E-3”) relating to the Merger and the
other transactions contemplated hereby and furnish to each other all
information concerning such party as may be reasonably requested in connection
with the preparation of the Schedule 13E-3, (ii) respond as promptly
as reasonably practicable to any comments received from the SEC with respect to
such filings and will consult with each other prior to providing such response,
(iii) as promptly as reasonable practicable after consulting with each
other, prepare and file any amendments or supplements necessary to be filed in
response to any SEC comments or as required by Law, (iv) to have cleared
by the SEC the Schedule 13E-3 and (v) to the extent required by
applicable Law, as promptly as reasonably practicable prepare, file and
distribute to the Company stockholders any supplement or amendment to the Schedule 13E-3
if any event shall occur which requires such action at any time prior to the
Stockholders Meeting.

 

(b)                                 Subject
to Sections 7.2 and 7.3(c), the Company Board shall recommend adoption of this
Agreement to the holders of shares of Common Stock (such recommendation being
the “Recommendation”), the Recommendation shall be included in the
Company Proxy Statement and the Schedule 13E-3, and the Company Board
shall take all lawful action to solicit the adoption of this Agreement by the
holders of shares of Common Stock.  The
Company shall call the Stockholders Meeting and submit the Agreement and the
transactions contemplated hereby to the holders of shares of Common Stock for
adoption even in the event that the Company Board or the Independent Directors
shall have withdrawn, modified or qualified the Recommendation.

 

(c)                                  Notwithstanding
Section 7.3(a) or (b), (i) the Company Board may withdraw or
modify the Recommendation and (ii) the Company shall not be required to
include the Recommendation in the Company Proxy Statement or the Schedule 13E-3,
in each case to the extent that the Company Board, based on the recommendation
of the Independent Directors, determines in good faith, after receiving the
advice of outside counsel, that making the Recommendation would no longer be
consistent with its fiduciary duties to the Company’s stockholders under
applicable Law.

 

7.4.                              Commercially
Reasonable Efforts; Cooperation.

 

(a)                                  Upon
the terms and subject to the conditions of this Agreement, each of Novartis, Merger
Sub and the Company agrees to use its commercially reasonable efforts to take,
or cause to be taken, all actions, and to do, or cause to be done, all things
necessary, proper or advisable on its part under this Agreement and any
applicable Laws to consummate and make effective the transactions contemplated
hereby as promptly as practicable including, but not limited to, (i) the preparation
and filing of all forms, registrations, notifications and notices required to
be filed to consummate the transactions contemplated hereby (including making
or causing to be made the filings required under the HSR Act, the EC Merger
Regulation or any applicable Laws in other foreign jurisdictions governing
antitrust or merger control matters as promptly as practicable and in any event,
with respect to the filings required under the HSR Act, within ten Business Days
after the date of this Agreement) and the taking of such actions as are
necessary to obtain any requisite approvals, consents, orders, exemptions or
waivers by any third party or Governmental Entity, (ii) cooperating with
the other in connection with the preparation and filing of any such forms,
registrations and notices (including, with respect to the party hereto making a
filing, providing copies of all such documents to the non-filing party and its
advisors

 

23

 

prior to filing and, if requested, to accept all reasonable additions,
deletions or changes suggested in connection therewith) and in connection with
obtaining any requisite approvals, consents, orders, exemptions or waivers by
any third party or Governmental Entity, (iii) the satisfaction of the
conditions to the consummation of the Merger set forth in Article VIII,
and (iv) the execution of any additional instruments, including the Certificate
of Merger, necessary to consummate the transactions contemplated hereby.  Subject to the terms and conditions of this
Agreement and the applicable provisions of the DGCL, each party hereto agrees
to use commercially reasonable efforts to cause the Effective Time to occur as
soon as practicable after the adoption by the stockholders of the Company of this
Agreement at the Stockholders Meeting. 
In case at any time after the Effective Time any further action is necessary
to carry out the purposes of this Agreement, the proper officers and directors
of each party hereto shall use commercially reasonable efforts to take all such
necessary action.

 

(b)                                 The
Company and Novartis each shall, upon request by the other, furnish the other
with all information concerning itself, its Subsidiaries, directors, officers
and stockholders and such other matters as may be reasonably necessary or
advisable in connection with the Company Proxy Statement, the Schedule 13E-3
or any other statement, filing, notice or application made by or on behalf of Novartis,
the Company or any of their respective Subsidiaries to any third party and/or
any Governmental Entity in connection with the Merger and the transactions
contemplated by this Agreement.

 

(c)                                  Subject
to applicable Law, the Company and Novartis each shall keep the other apprised
of the status of matters relating to completion of the transactions
contemplated hereby, including promptly furnishing the other with copies of
notices or other communications between Novartis or the Company, as the case
may be, or any of their respective Subsidiaries, and any third party and/or any
Governmental Entity with respect to such transactions.  The Company shall give prompt notice to Novartis
of any change, fact or condition, that would be reasonably likely to result in
a Company Material Adverse Effect or of any failure of any condition to Novartis’
obligations to effect the Merger, and Novartis shall give prompt notice to the
Company of any change, fact or condition, that would be reasonably likely to result
in a failure of any condition to the Company’s obligations to effect the Merger.  No party hereto shall independently
participate in any meeting, or engage in any substantive conversation, with any
Governmental Entity with respect to the transactions contemplated hereby
without giving the other party hereto prior notice of the meeting and, to the
extent permitted by such Governmental Entity, the opportunity to attend and/or
participate.  The parties hereto shall
consult and cooperate with one another in connection with any analyses,
appearances, presentations, memoranda, briefs, arguments, opinions and
proposals made or submitted to any Governmental Entity by or on behalf of any
party hereto in connection with the transactions contemplated hereby.  The Company and Novartis may, as each deems
advisable and necessary, reasonably designate any competitively sensitive
material provided to the other under this Section 7.4 as “outside counsel
only.”  Such materials and the
information contained therein shall be given only to the outside legal counsel
of the recipient and will not be disclosed by such outside counsel to
employees, officers or directors of the recipient unless express permission is
obtained in advance from the source of the materials (the Company or Novartis,
as the case may be) or its legal counsel. 
Notwithstanding anything to the contrary in this Section 7.4,
materials provided to the other party or its counsel may be redacted to remove
references concerning the valuation of the Company and its Subsidiaries.

 

24

 

(d)                                 Without
limiting the generality of, and notwithstanding any qualifications, other than
those in this Section 7.4(d), affecting, the undertakings pursuant to this
Section 7.4, each of the Company (in the case of clause (i) only) and
Novartis (in all cases set forth below) agrees to take or cause to be taken the
following actions:  (i) provide
promptly to any and all federal, state, local or foreign court or Government
Entity with jurisdiction over enforcement of any applicable antitrust and
merger control laws (“Government
Antitrust Entity”) information and documents requested by any
Government Antitrust Entity or necessary, proper or advisable to permit
consummation of the Merger and the transactions contemplated by this Agreement;
(ii) use its commercially reasonable efforts to avoid the entry of any
permanent or preliminary injunction or other order, decision, decree or
judgment that would restrain, prevent or delay consummation of the Merger or
the other transactions contemplated by this Agreement, including, without
limitation, defending through litigation on the merits any claim asserted in
any court or other proceeding by any party and the commercially reasonable good
faith proffer by the Novartis Companies of their willingness to sell, license or
otherwise dispose of, or hold separate and agree to sell, license or otherwise
dispose of, such assets, categories of assets or businesses of the Company or its Subsidiaries (and to offer
undertakings and enter into agreements with the relevant Government Antitrust
Entity giving effect thereto); and (iii) use commercially reasonable
efforts to take promptly, in the event that any permanent or preliminary
injunction or other order is entered or decision is adopted in any proceeding
that would make consummation of the Merger in accordance with the terms of this
Agreement unlawful or that would restrain, prevent or materially delay
consummation of the Merger or the other transactions contemplated by this
Agreement, any and all steps (including
the appeal thereof, the posting of a bond or the taking of the steps
contemplated by clause (ii) of this paragraph) necessary to vacate, modify, annul and, if necessary, suspend
such injunction or order so as to permit such consummation on a schedule as
close as possible to that contemplated by this Agreement.  The Company shall cooperate with the efforts
of the Novartis Companies in accordance with this Section 7.4(d).  Notwithstanding anything to the contrary in
this Agreement, the Novartis Companies shall not be obligated to take or proffer
to take any action that would, individually or in the aggregate, reasonably be
expected to have or result in a Company Material Adverse Effect; provided that
for purposes of this Section 7.4(d), the exclusion in clause (4) from
the definition of a “Company Material Adverse Effect” does not apply.

 

7.5.                              Access.  Subject to applicable Laws relating to the
sharing of information, upon reasonable notice, the Company shall, and shall
cause its Subsidiaries to, afford Novartis, and its officers, employees,
counsel, accountants and other authorized Representatives, reasonable access,
during normal business hours throughout the period prior to the Effective Time,
to its properties, books, contracts and records and, during such period, the
Company shall, and shall cause its Subsidiaries to, furnish promptly to
Novartis all information concerning its business, properties and personnel as
may reasonably be requested (including by taking the actions set forth on Section 7.5
of the Company Disclosure Schedule); provided, however, that no
investigation pursuant to this Section 7.5 shall affect or be deemed to
modify any representation or warranty made by the Company; provided, further,
that the foregoing shall not require the Company to permit any inspection, or
to disclose any information, that in the reasonable judgment of the Company
would result in the disclosure of any trade secrets of third parties or violate
any of its obligations with respect to confidentiality.  At the request of Novartis, throughout the
period prior to the Effective Time, the Company shall use its commercially
reasonable efforts to obtain waivers from Persons who are parties to Contracts
with the Company

 

25

 

or its Subsidiaries that contain confidentiality provisions in order
for Novartis to be provided reasonable access to such Contracts.  All such information shall be governed by the
terms of the Confidentiality Agreement referred to in Section 10.8.

 

7.6.                              Consents.  Subject to other provisions contained in this
Agreement, Novartis, Merger Sub and the Company each will use commercially
reasonable efforts to obtain consents of all third parties and Governmental
Entities necessary, proper or advisable for the consummation of the transactions
contemplated hereby.

 

7.7.                              Public
Announcements.  The initial press
release regarding this Agreement shall be a joint press release mutually agreed
upon, and thereafter Novartis and the Company will consult with one another
before issuing any press release or otherwise making any public statements with
respect to the transactions contemplated hereby, including the Merger, and
shall not issue any such press release or make any such public statement prior
to such consultation, except as may be required by applicable Law or by
obligations pursuant to any listing agreement with any national securities
exchange, as determined in good faith by such party.

 

7.8.                              Employee
Benefits.

 

(a)                                  Novartis
agrees that it shall honor and cause the Surviving Corporation to honor, fulfill
and discharge the Company’s obligations under each Benefit Plan in accordance
with its terms as in effect immediately before the Effective Time, subject to
any amendment or termination thereof that may be permitted by such terms.  For a
period from the Effective Time through at least December 31, 2006, Novartis
shall provide, or shall cause to be provided, to those individuals who as of
the Effective Time were employees (other than employees subject to collective
bargaining agreements) of the Company and its Subsidiaries (the “Affected
Employees”) benefits under employee benefit plans, programs, policies and
arrangements, and compensation (including base salary, bonus and other
incentive compensation, other than equity compensation (provided that Novartis
shall provide value substantially equivalent to the Company’s proposed equity
compensation for 2006 (the “Equity Replacement”) if the Effective Time
occurs prior  to the grant of such equity
compensation)) that are no less favorable in the aggregate than the benefits
and compensation provided to the Affected Employees immediately before the
Effective Time.  Notwithstanding
the foregoing, nothing contained herein shall obligate Novartis, the Surviving
Corporation or any of their affiliates to maintain any particular Benefit Plan (other
than the severance plans and agreements referred to in Section 7.8(c)) or
retain the employment of any Affected Employee.

 

(b)                                 Each Affected Employee shall receive credit
for his or her service with the Company and its Subsidiaries before the
Effective Time under the employee benefit plans, programs, policies and
arrangements of Novartis and its affiliates  providing benefits to any Affected Employees
after the Effective Time (the “New Plans”) for purposes of eligibility,
vesting and benefit accrual (but not for purposes of benefit accrual under
defined benefit pension plans or for any new program for which credit for
service prior to the effective date of such program is not given to similarly
situated employees of Novartis other than the Affected Employees) to the same
extent as such Affected Employee was entitled, before the Effective Time, to
credit for such service under any parallel Benefit Plans (except to the extent
such credit would result in a duplication of accrual of benefits).  In addition, and without limiting the

 

26

 

generality of the foregoing:  (i) at the Effective Time, each Affected
Employee immediately shall be eligible to participate, without any waiting time,
in any and all New Plans to the extent coverage under such New Plan replaces
coverage under a similar or comparable Company Compensation and Benefit Plans
in which such Affected Employee participated immediately before the Effective
Time (each such plan, an “Old Plan”); and (ii) for purposes of each
New Plan providing welfare benefits to any Affected Employee (a) Novartis
shall cause all pre-existing condition exclusions of such New Plan to be waived
for such Affected Employee and his or her covered dependents to the extent such
pre-existing condition exclusions were inapplicable to or had been satisfied by
such Affected Employee and his or her covered dependants immediately prior to
the Effective Time under the relevant Old Plan and (b) Novartis shall cause
the Surviving Corporation and any successor thereto to give full credit for
deductibles satisfied under the Company’s and its Subsidiaries’ Benefit Plans
with respect to the current plan year toward any deductibles for the remainder
of the plan year during which the Closing occurs.

 

(c)                                  For a period of one year from the Effective
Time, Novartis shall honor and cause the Surviving Corporation and any successor
thereto to continue in effect, and honor, fulfill and discharge the Company’s
obligations under, all severance plans and agreements and employment agreements
which are listed on Section 7.8(c) of the Company Disclosure Schedule without
any change that is adverse to the Affected Employees.  During the period specified above, severance
benefits offered to Affected Employees shall be determined without taking into
account any reduction after the Effective Time in the compensation paid to
Affected Employees and used to determine severance benefits.

 

(d)                                 Novartis acknowledges that consummation of the
Merger constitutes a “change in control” for purposes of the plans and
agreements listed on Section 7.8(d) of the Company Disclosure
Schedule.  The Company agrees to the
adoption of a resolution substantially in the form described on Section 7.8(d) of
the Company Disclosure Schedule.

 

(e)                                  Novartis shall cause the Surviving
Corporation to honor (i) all determinations with respect to bonus payments
for the 2005 calendar year (provided, that the aggregate amount of such
bonuses shall not exceed $60,000,000) made by the Company’s compensation
committee in the ordinary course of business consistent with past practice, to
the extent such bonus amounts are based on performance meeting previously set
targets, and (ii) to the extent permitted by Section 7.1, all salary
increases based on merit reviews for the 2006 calendar year made by the Company
in the ordinary course of business consistent with past practice, to the extent
not in effect at the Effective Time.

 

(f)                                    Without limiting the generality of Section 10.9,
nothing herein expressed or implied shall confer upon any current or former
employee of the Company or any of its Subsidiaries or upon any representative
of any such person, or upon any collective bargaining agent, any rights or
remedies, including any third party beneficiary rights or any right to
employment or continued employment for any specified period, of any nature or kind
whatsoever under or by reason of this Agreement.

 

(g)                                 Except with respect to employees whose
primary place of employment is located in the United Kingdom or the United
States, the provisions of Sections 7.8(a) – (c) (other than the first
sentence of Section 7.8(a) and provided that Novartis shall provide
the Equity

 

27

 

Replacement to all employees of the Company)
shall not apply with respect to any jurisdiction providing statutory severance
and benefits.

 

7.9.                              Indemnification;
Directors’ and Officers’ Insurance.

 

(a)                                  From and after the Effective Time, Novartis and
the Surviving Corporation shall jointly and severally, to the fullest extent
permitted by applicable Law, indemnify, defend and hold harmless all individuals
who at the Effective Time were directors or officers of the Company (each, an “Indemnified
Person” and, collectively, the “Indemnified Persons”) against any costs or expenses (including
reasonable attorneys’ fees and expenses), judgments, fines, losses, claims,
damages, liabilities and amounts paid in settlement in connection with any
actual or threatened claim, action, suit, proceeding or investigation, whether
civil, criminal, administrative or investigative, arising out of, relating to
or in connection with (i) any acts or omissions occurring or alleged to
occur prior to the Effective Time in their capacities as officers or directors
of the Company or any of its Subsidiaries or taken by them at the request of
the Company or any of its Subsidiaries (including, without limitation, acts or
omissions in connection with such persons serving as an officer, director or
other fiduciary in any entity if such service was at the request or for the
benefit of the Company or any of its Subsidiaries) or (ii) the adoption
and approval of this Agreement, the Merger or the other transactions
contemplated by this Agreement or arising out of or pertaining to the
transactions contemplated by this Agreement. 
Without limiting the foregoing, Novartis and the Surviving Corporation shall
(A) cause the certificate of incorporation and by-laws of the Surviving
Corporation to include for a period of six years, at a minimum, the
indemnification and exculpation provisions of the certificate of incorporation
and by-laws of the Company as in effect at the Effective Time and shall cause
such provisions not to be amended, repealed or otherwise modified for a period
of six years from the Effective Time in any manner that would adversely affect
the rights thereunder of any Indemnified Person who was entitled to rights
thereunder as of the Effective Time and (B) for a period of six years after the Effective Time, honor, continue in effect and discharge the Company’s
obligations under all indemnification agreements of the Company and its Subsidiaries
with any Indemnified Persons in effect as of the date hereof without any change that is adverse to such
Indemnified Persons.

 

(b)                                 The
Surviving Corporation shall, and Novartis shall cause the Surviving Corporation
to, maintain the Company’s and its Subsidiaries’ existing directors’ and officers’
liability insurance (“D&O Insurance”) (including for acts or
omissions described in clauses (i) and (ii) in Section 7.9(a))
covering each such Indemnified Person covered immediately prior to the
Effective Time by the Company’s officers’ and directors’ liability insurance
policy on terms with respect to coverage and amount no less favorable than
those of such policy in effect on the date hereof for a period of six years
after the Effective Time; provided, however, that in no event
shall the Surviving Corporation be required to expend in any one year an amount
in excess of 250% of the current annual premium paid by the Company for such
insurance (such 250% amount, the “Maximum Annual Premium”); provided,
further, that if the annual premiums of such insurance coverage exceed
such amount, the Surviving Corporation shall be obligated to obtain a policy
with the greatest coverage available for a cost not exceeding the Maximum
Annual Premium.  For the avoidance of
doubt, Novartis and the Surviving Corporation may satisfy their foregoing
obligations under this Section 7.9(b) by including the coverage required
by the foregoing sentence in Parent’s or Novartis’ existing group insurance
policies.  In addition,

 

28

 

at Novartis’ request and sole expense, the Company will purchase a
six-year “tail” prepaid policy to take effect as of the Effective Time on terms
and conditions no less favorable to the Indemnified Persons than those of the
existing directors’ and officers’ liability insurance maintained by the Company
as of the date hereof.  If such “tail”
prepaid policies have been obtained by the Company prior to the Closing, the
Surviving Corporation shall, and Novartis shall cause the Surviving Corporation
to, maintain such policies in full force and effect for a period of six years
after the Effective Time, and continue to honor the respective obligations
thereunder, and all other obligations under this Section 7.9(b) shall
be deemed satisfied.

 

(c)                                  If
the Surviving Corporation or any of its successors or assigns (i) shall
consolidate with or merge into any other corporation or entity and shall not be
the continuing or surviving corporation or entity of such consideration or
merger or (ii) shall transfer all or substantially all of its properties
and assets to any individual, corporation or other entity, then, and in each
such case, proper provisions shall be made so that the successors and assigns of
the Surviving Corporation shall assume all of the obligations set forth in this
Section 7.9.

 

(d)                                 The
provisions of this Section 7.9 are intended to be for the benefit of, and
shall be enforceable by, each of the Indemnified Parties and their heirs and
legal representatives.

 

7.10.                        Takeover
Statutes.  If any Takeover Statute is
or may become applicable to the Merger or the other transactions contemplated
by this Agreement, the Company and the Company Board (or the Independent
Directors or any other appropriate committee of the Company Board) shall grant
all approvals and take all actions as are necessary so that such transactions
may be consummated as promptly as practicable on the terms contemplated by this
Agreement and otherwise act to eliminate or minimize the effects of such
Takeover Statute on such transactions.

 

7.11.                        Retention
of Shares; Voting of Shares at Stockholders Meeting.  Other than as contemplated herein, none of the
Novartis Companies have any intention of disposing of, nor will any of the
Novartis Companies dispose of, any shares of Common Stock owned by any of them
as of the date hereof.  Novartis shall,
and shall cause the other Novartis Companies, to vote all shares of Common
Stock owned by each of them in favor of adopting this Agreement at the
Stockholders Meeting.

 

ARTICLE VIII

Conditions

 

8.1.                              Conditions
to the Obligations of the Company, Novartis and Merger Sub to Effect the Merger.  The respective obligation of each of the
Company, Novartis and Merger Sub to effect the Merger is subject to the
satisfaction or waiver at or prior to the Closing of each of the following
conditions:

 

(a)                                  Stockholder Approval.  This Agreement shall have been duly adopted by
holders of shares of Common Stock constituting (i) the Company Requisite
Vote in accordance with applicable Law and the Company’s certificate of incorporation
and by-laws

 

29

 

and (ii) the affirmative
vote of a majority of the outstanding shares of Common Stock excluding shares of
Common Stock owned by the Novartis Companies.

 

(b)                                 Regulatory
Consents.  (i) The waiting
period applicable to the consummation of the Merger under the HSR Act shall
have expired or been earlier terminated, 
(ii) if applicable, the European Commission shall have issued a
decision under the EC Merger Regulation declaring the Merger compatible with
the Common Market, and (iii) all other Governmental Consents shall have been
made or obtained other than those as would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect.  For purposes of this Agreement, the term “Governmental
Consents” shall mean all notices, reports, and other filings required to be
made prior to the Effective Time by the Company or Novartis or any of their
respective Subsidiaries with, and all consents, registrations, approvals,
permits, clearances and authorizations required to be obtained prior to the Effective
Time by the Company or Novartis or any of their respective Subsidiaries from,
any Governmental Entity in connection with the execution and delivery of this
Agreement and the consummation of the Merger and the other transactions
contemplated hereby.

 

(c)                                  No
Injunction.  No Governmental Entity
of competent jurisdiction shall have enacted, issued, promulgated, enforced or
entered any Law, rule, regulation, judgment, determination, decree, injunction
or other order (whether temporary, preliminary or permanent) that is in effect
and restrains, enjoins or otherwise prohibits the consummation of the Merger or
the other transactions contemplated by this Agreement (collectively, an “Injunction”).

 

8.2.                              Conditions
to Obligations of Novartis and Merger Sub. 
The obligation of Novartis and Merger Sub to effect the Merger is also
subject to the satisfaction or waiver by Novartis at or prior to the Closing of
the following conditions:

 

(a)                                  Representations
and Warranties.  (i) The
representations and warranties of the Company set forth in Section 5.2 and
Section 5.15 of this Agreement shall be true and correct in all material
respects (A) on the date of this Agreement and (B) on the Closing
Date with the same effect as though such representations and warranties had been
made on and as of the Closing Date (except to the extent that any such
representation and warranty expressly speaks as of an earlier date, in which
case such representation and warranty shall be true and correct as of such
earlier date); (ii) all other representations and warranties of the
Company set forth in this Agreement shall be true and correct (A) on the
date of this Agreement and (B) on the Closing Date with the same effect as
though such representations and warranties had been made on and as of the
Closing Date (except to the extent that such representation and warranty
expressly speaks as of an earlier date, in which case such representation and
warranty shall be true and correct as of such earlier date); provided, however,
that notwithstanding anything herein to the contrary, the condition set forth
in this Section 8.2(a)(ii) shall be deemed to have been satisfied
even if any of the applicable representations and warranties of the Company are
not true and correct unless the failure of such representations and warranties
of the Company to be true and correct (read for purposes of this Section 8.2(a)(ii) only
without any materiality or Company Material Adverse Effect or similar qualification),
individually or in the aggregate, has had or is reasonably expected to have a Company
Material Adverse Effect; and (iii) Novartis shall have received at the
Closing a certificate signed on behalf of the Company

 

30

 

by the Chief Executive
Officer or Chief Financial Officer of the Company to the effect that the
condition set forth in this Section 8.2(a) has been satisfied.

 

(b)                                 Performance
of Obligations of the Company.  The
Company shall have performed in all material respects all agreements and
obligations required to be performed by it under this Agreement at or prior to
the Closing Date, and Novartis shall have received a certificate signed on
behalf of the Company by the Chief Executive Officer or Chief Financial Officer
of the Company to the effect that the condition set forth in this Section 8.2(b) has
been satisfied.

 

(c)                                  Governmental
Consents.  All Governmental Consents
that have been obtained shall have been obtained without the imposition of any
term, condition or consequence that would, individually or in the aggregate,
reasonably be expected to have or result in a Company Material Adverse Effect
or a material adverse effect on Novartis’ ability to operate the business of
the Company and its Subsidiaries as currently operated.  For purposes of this Section 8.2(c), the
exclusion in clause (4) from the definition of a “Company Material Adverse
Effect” does not apply and “Company Material Adverse Effect” includes any
effect on Novartis, which, if aggregated with any effect on the Company and its
Subsidiaries, would be of such magnitude that it would constitute a Company
Material Adverse Effect if it had occurred with respect to the Company and its
Subsidiaries only.

 

(d)                                 No
Company Material Adverse Effect.  No
Company Material Adverse Effect shall have occurred on or after the date
hereof.

 

(e)                                  Exon-Florio
Clearance.  The United States
Government shall have (i) completed its national security review and, if
necessary, investigation, under Exon-Florio, and (ii) concluded that no
adverse action with respect to the transactions contemplated hereby, including
any action to suspend or prohibit the transactions contemplated hereby, is
warranted.

 

8.3.                              Conditions
to Obligation of the Company.  The
obligation of the Company to effect the Merger is also subject to the satisfaction
or waiver by the Company at or prior to the Effective Time of the following
conditions:

 

(a)                                  Representations
and Warranties.  (i) The
representations and warranties of Novartis and Merger Sub set forth in this
Agreement shall be true and correct in all material respects (A) on the
date of this Agreement and (B) on the Closing Date with the same effect as
though such representations and warranties had been made on and as of the
Closing Date (except to the extent that any such representation and warranty
expressly speaks as of an earlier date, in which case such representation and
warranty shall be true and correct as of such earlier date) and (ii) the
Company shall have received at the Closing a certificate signed on behalf of each
of Novartis and Merger Sub by a senior executive officer of each to the effect
that the condition set forth in this Section 8.3(a) as applicable has
been satisfied.

 

(b)                                 Performance
of Obligations of Novartis and Merger Sub. 
Each of Novartis and Merger Sub shall have performed in all material
respects all agreements and obligations required to be performed by it under
this Agreement at or prior to the Closing Date, and the Company shall have
received a certificate signed on behalf of each of Novartis and

 

31

 

Merger Sub by a senior executive officer of each to the effect that the
condition set forth in this Section 8.3(b) as applicable has been
satisfied.

 

ARTICLE IX

Termination

 

9.1.                              Termination by Mutual Consent.  This Agreement may be terminated and the
Merger may be abandoned at any time prior to the Effective Time, whether before
or after the adoption by the stockholders of the Company referred to in Section 8.1(a),
by mutual written consent of the Company, by action of the Company Board
(approved by the Independent Directors), and Novartis, by action of its board
of directors.

 

9.2.                              Termination
by Either Novartis or the Company. 
This Agreement may be terminated and the Merger may be abandoned at any
time prior to the Effective Time by Novartis, by action of its board of
directors, or by the Company, by action of the Company Board (approved by the Independent
Directors), if (a) the Merger shall not have been consummated by the date
that is nine months from the date hereof, provided, however, that
if (x) the Effective Time has not occurred by such date by reason of
nonsatisfaction of any of the conditions set forth in Sections 8.1(b), 8.1(c), 8.2(c) or
8.2(e) and (y) all other conditions in Article 8 have theretofore
been satisfied or (to the extent legally permissible) waived or are then
capable of being satisfied, then the Company may extend the Termination Date to
a date not beyond twelve months from the date hereof (the “Termination Date”), (b) the adoption
by the Company’s stockholders required by Section 8.1(a) shall not
have been obtained at the Stockholders Meeting (after giving effect to all adjournments
or postponements thereof), or (c) any Injunction permanently restraining,
enjoining or otherwise prohibiting consummation of the Merger shall have become
final and non-appealable; provided, however, that the right to
terminate this Agreement pursuant to Section 9.2(a) or Section 9.2(c) shall
not be available to any party that has breached its obligations under this Agreement
in any manner that shall have proximately contributed to the occurrence of the
failure of the Merger to be consummated (in the case of Section 9.2(a), by
the Termination Date).

 

9.3.                              Termination
by the Company.  This Agreement may
be terminated and the Merger may be abandoned at any time prior to the
Effective Time, whether before or after the adoption by stockholders of the Company
referred to in Section 8.1(a), by action of the Company Board (approved by
the Independent Directors) if there has been a breach of any
representations, warranties, covenants or agreements made by Novartis or Merger
Sub in this Agreement, or any such representations, warranties, covenants or
agreements shall have become untrue or incorrect after the execution of this
Agreement, such that (i) the condition set forth in either Section 8.3(a) or
8.3(b) would not be satisfied and (ii) such breach or failure to be
true and correct is not curable by the Termination Date.

 

9.4.                              Termination
by Novartis.  This Agreement may be
terminated and the Merger may be abandoned at any time prior to the Effective
Time, by action of the board of directors of Novartis, if (a) the Company
Board or the Independent Directors shall have withdrawn or adversely qualified
or modified the Recommendation or (b) there has been a breach of any
representations, warranties, covenants or agreements made by the Company in
this

 

32

 

Agreement, or any such representations, warranties, covenants or
agreements shall have become untrue or incorrect after the execution of this
Agreement, such that (i) the condition set forth in either Section 8.2(a) or
8.2(b) would not be satisfied and (ii) such breach or failure to be
true or correct is not curable by the Termination Date.

 

9.5.                              Effect
of Termination and Abandonment.  In
the event of a termination of this Agreement and the abandonment of the Merger
pursuant to this Article IX, this Agreement (other than as set forth in Section 10.1)
shall become void and of no effect with no liability on the part of any party
hereto (or of any of its directors, officers, employees, agents, legal and
financial advisors or other representatives); provided, however, that,
except as otherwise provided herein, no such termination shall relieve any
party hereto of any liability or damages resulting from any willful or
intentional breach of this Agreement.

 

ARTICLE X

Miscellaneous and General

 

10.1.                        Non-Survival
of Representations and Warranties and Agreements.  None of the representations and warranties in
this Agreement or in any instrument delivered pursuant to this Agreement shall
survive the Effective Time or, except as set forth in Section 9.5 hereof,
the termination of this Agreement pursuant to the terms hereof.  This Section 10.1 shall not limit any
covenant or agreement of the parties which by its terms contemplates performance
after the Effective Time.

 

10.2.                        Modification
or Amendment.  Subject to the
provisions of applicable Law, at any time prior to the Effective Time, (i) this
Agreement may be amended, modified or supplemented only in writing executed by
each of the parties hereto by action of the board of directors of each such
party (in the case of the Company, approved by the Independent Directors), and (ii) any
provisions herein may be waived only in writing executed by the party or
parties against whom such waiver is asserted by action of such party or parties’
board of directors (in the case of the Company, approved by the Independent
Directors).

 

10.3.                        Waiver
of Conditions.  The conditions to
each of the parties’ obligations to consummate the Merger are for the sole
benefit of such party and may be waived by such party in whole or in part to
the extent permitted by applicable Law, in such party’s sole discretion.

 

10.4.                        Definitions.  Each of the terms set forth in Annex A
is defined in the Section of this Agreement set forth opposite such term.

 

10.5.                        Counterparts.  This Agreement may be executed in any number
of counterparts, each such counterpart being deemed to be an original
instrument, and all such counterparts shall together constitute the same
agreement.

 

10.6.                        GOVERNING LAW AND VENUE;
WAIVER OF JURY TRIAL.

 

(a)                                  THIS AGREEMENT SHALL BE DEEMED TO
BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND GOVERNED BY

 

33

 

AND IN ACCORDANCE WITH THE LAW OF
THE STATE OF DELAWARE WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF.  The parties hereto (other than,
for the avoidance of doubt, Parent) hereby irrevocably submit exclusively to
the jurisdiction of the courts of the State of Delaware and the Federal courts
of the United States of America located in the State of Delaware solely in
respect of the interpretation and enforcement of the provisions of this Agreement
and of the documents referred to in this Agreement, and in respect of the
transactions contemplated hereby, and hereby waive, and agree not to assert, as
a defense in any action, suit or proceeding for the interpretation or
enforcement hereof or of any such document, that it is not subject thereto or
that such action, suit or proceeding may not be brought or is not maintainable
in said courts or that the venue thereof may not be appropriate or that this
Agreement or any such document may not be enforced in or by such courts, and
the parties hereto irrevocably agree that all claims with respect to such
action or proceeding shall be heard and determined in such a Delaware State or
Federal court.  The parties hereto (other
than, for the avoidance of doubt, Parent) hereby consent to and grant any such
court jurisdiction over the person of such parties for purposes of the
foregoing.

 

(b)                                 EACH PARTY HERETO ACKNOWLEDGES AND AGREES
THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO
INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.  EACH PARTY CERTIFIES AND
ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH
PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III)
EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 10.6.

 

10.7.                        Notices.  Any notice, request, instruction or other
document to be given hereunder by any party to the others shall be in writing
and delivered personally or sent by registered or certified mail, postage
prepaid, facsimile or by overnight courier:

 

If to Parent, Novartis or Merger Sub:

Novartis Corporation

508 Fifth Avenue

New York, New York 10020

Attention:  General Counsel

Facsimile:  (212) 830-2416

 

34

 

with a copy, which will not constitute notice, to:

 

Novartis AG

WSJ-200.195

4002 Basel

Switzerland

Attention:  General Counsel

Facsimile:  011-41-61-324-7826

 

and to:

 

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, New York 
10019

Attention:                 Andrew
R. Brownstein, Esq.

Trevor S. Norwitz, Esq.

Facsimile:     (212) 403-2000

 

If to the Company:

 

Chiron Corporation

4560 Horton Street

Emeryville, CA  94608

Attention:  Vice President, Head of
Corporate Business Development 

Facsimile Number:  (510) 610-5360

 

with a copy, which will not constitute notice, to:

 

Sullivan & Cromwell LLP

1888 Century Park East, Suite 2100

Los Angeles, California 90067

Attention:                 Alison
S. Ressler, Esq.

Patrick S. Brown, Esq.

Facsimile:     (310) 712-8800

 

or to such other persons or addresses as may be
designated in writing by the Person to receive such notice as provided
above.  Any
notice, request, instruction or other document given as provided above shall be
deemed given to the receiving party upon actual receipt, if delivered
personally; three Business Days after deposit in the mail, if sent by
registered or certified mail; upon confirmation of successful transmission if
sent by facsimile (provided that if given by facsimile such notice, request,
instruction or other document shall be followed up within one Business Day by
delivery pursuant to one of the other methods described herein); or on the next
Business Day after deposit with an internationally recognized overnight
courier, if sent by such a courier.

 

10.8.                        Entire
Agreement.  This Agreement, together
with the schedules, Annex A hereto, and
the Confidentiality Agreement, dated as of May 26, 2005, by and between
the Company and Parent, constitute the entire agreement between the
parties hereto with respect to

 

35

 

the subject matter hereof and supersedes
all other prior agreements and understandings, both written and oral, between
the parties with respect to the subject matter hereof.

 

10.9.                        No
Third Party Beneficiaries.  Except as
expressly set forth in Section 7.9 (Indemnification;
Directors’ and Officers’ Insurance) of this Agreement, this Agreement is not intended to, and does not, confer upon any
Person other than the parties who are signatories hereto any rights or remedies
hereunder.

 

10.10.                  Severability.  The provisions of this Agreement shall be
deemed severable and the invalidity or unenforceability of any provision shall
not affect the validity or enforceability of the other provisions hereof.  If any provision of this Agreement, or the
application thereof to any Person or any circumstance is determined by a court
of competent jurisdiction to be invalid, void or unenforceable the remaining
provisions hereof, shall, subject to the following sentence, remain in full
force and effect and shall in no way be affected, impaired or invalidated
thereby, so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner adverse to either party.  Upon such determination, the parties shall
negotiate in good faith in an effort to agree upon such a suitable and
equitable provision to effect the original intent of the parties.

 

10.11.                  Interpretation;
Absence of Presumption.

 

(a)                                  For
the purposes hereof, (1) words in the singular shall be held to include
the plural and vice versa and words of one
gender shall be held to include the other gender as the context requires, (2) the
terms “hereof”, “herein”, and “herewith” and words of
similar import shall, unless otherwise stated, be construed to refer to this
Agreement as a whole (including the schedules and annexes hereto) and not to
any particular provision of this Agreement, and Article, Section, paragraph,
Schedule, and Annex references are to the Articles, Sections, paragraphs,
Schedules and Annexes to this Agreement unless otherwise specified, (3) the
word “including” and words of similar import when used in this Agreement
shall mean “including without limitation” unless the context otherwise
requires or unless otherwise specified, (4) the word “or” shall not
be exclusive, and (5) all references to any period of days shall be deemed
to be to the relevant number of calendar days unless otherwise specified.

 

(b)                                 The
parties have participated jointly in negotiating and drafting this
Agreement.  In the event that an
ambiguity or a question of intent or interpretation arises, this Agreement
shall be construed as if drafted jointly by the parties, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provision of this Agreement.

 

10.12.                  Expenses.  The Surviving Corporation shall pay all
charges and expenses, including those of the Paying Agent, in connection with
the transactions contemplated in Article IV.  Whether or not the Merger is consummated, all
costs and expenses incurred in connection with this Agreement and the Merger
and the other transactions contemplated by this Agreement shall be paid by the
party incurring such expense, except that expenses incurred in connection with
the filing fee for the Schedule 13E-3 and printing and mailing the Company
Proxy Statement and the Schedule 13E-3 shall be shared equally by Novartis
and the Company.

 

36

 

10.13.                  Assignment.  This Agreement shall not be assignable by any
party hereto; provided, however, that Novartis may designate, by
written notice to the Company, another Subsidiary of Novartis to be a
constituent corporation in lieu of Merger Sub, whereupon all references herein
to Merger Sub shall be deemed references to such other Subsidiary, except that
all representations and warranties with respect to Merger Sub as of the date of
this Agreement shall be deemed representations and warranties with respect to
such other Subsidiary as of the date of such designation.  Any purported assignment in violation of this
Agreement will be void ab initio.

 

10.14.                  Parent
Guarantee.  Whenever in this
Agreement performance of or compliance with a covenant or obligation is
expressed to be required by Novartis or Merger Sub, Parent shall cause Novartis
or Merger Sub to perform or comply with such covenant or obligation, such that
any failure of Novartis or Merger Sub to perform or comply with any such
covenant or obligation shall be deemed to be a breach of such covenant or
obligation by Parent.

 

37

 

IN WITNESS WHEREOF, this Agreement has been duly
executed and delivered by the duly authorized officers of the parties hereto as
of the date first written above.

 

	
   

  	
  CHIRON CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ HOWARD PIEN

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Howard Pien

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOVARTIS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MARTIN HENRICH

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Martin Henrich

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOVARTIS BIOTECH
  PARTNERSHIP,

  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MARTIN FRIEDMAN

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Martin Friedman

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOVARTIS AG, for purposes of Section

  10.14 only

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ FREDERIC KROHN

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Frederic Krohn

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
					

 

 

[Chiron Merger Agreement Signature page]

 

38

 

ANNEX A

 

DEFINED TERMS

 

	
  Terms

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  Acquisition
  Proposal

  	
   

  	
  7.2(a)

  
	
  Action

  	
   

  	
  5.8

  
	
  Affected Employees

  	
   

  	
  7.8(a)

  
	
  Agreement

  	
   

  	
  Preamble

  
	
  Audit Date

  	
   

  	
  5.6(a)

  
	
  Business Day

  	
   

  	
  1.2

  
	
  By-Laws

  	
   

  	
  2.2

  
	
  Certificate

  	
   

  	
  4.1(a)

  
	
  Certificate
  of Merger

  	
   

  	
  1.3

  
	
  Charter

  	
   

  	
  2.1

  
	
  Closing

  	
   

  	
  1.2

  
	
  Closing
  Date

  	
   

  	
  1.2

  
	
  Code

  	
   

  	
  5.11(c)

  
	
  Common Stock

  	
   

  	
  Recitals

  
	
  Company

  	
   

  	
  Preamble

  
	
  Company Board

  	
   

  	
  Recitals

  
	
  Company Disclosure Schedule

  	
   

  	
  Article V

  
	
  Company Material Adverse Effect

  	
   

  	
  5.1

  
	
  Company
  Option

  	
   

  	
  4.5(a)

  
	
  Company Requisite Vote

  	
   

  	
  5.3(a)

  
	
  Contract

  	
   

  	
  5.4

  
	
  D&O Insurance

  	
   

  	
  7.9(b)

  
	
  Debentures

  	
   

  	
  5.2(a)

  
	
  DGCL

  	
   

  	
  1.1

  
	
  Dissenting
  Shares

  	
   

  	
  4.1(a)

  
	
  Dissenting
  Stockholders

  	
   

  	
  4.1(a)

  
	
  EC Merger Regulation

  	
   

  	
  5.4

  
	
  Effective
  Time

  	
   

  	
  1.3

  
	
  ERISA

  	
   

  	
  5.11(a)

  
	
  Exchange Act

  	
   

  	
  5.4

  
	
  Exchange
  Fund

  	
   

  	
  4.2(a)

  
	
  Excluded
  Share

  	
   

  	
  4.1(a)

  
	
  Excluded
  Shares

  	
   

  	
  4.1(a)

  
	
  Exon-Florio

  	
   

  	
  5.4

  
	
  Fairness Opinions

  	
   

  	
  5.15

  
	
  Financial Advisors

  	
   

  	
  5.3(b)

  
	
  GAAP

  	
   

  	
  5.6(b)

  
	
  Governance Agreement

  	
   

  	
  Recitals

  
	
  Government
  Antitrust Entity

  	
   

  	
  7.4(d)

  
	
  Governmental Consents

  	
   

  	
  8.1(b)

  
	
  Governmental Entity

  	
   

  	
  5.4

  

 

 

	
  herein

  	
   

  	
  10.11(a)

  
	
  hereof

  	
   

  	
  10.11(a)

  
	
  herewith

  	
   

  	
  10.11(a)

  
	
  HSR Act

  	
   

  	
  5.4

  
	
  including

  	
   

  	
  10.11(a)

  
	
  including
  without limitation

  	
   

  	
  10.11(a)

  
	
  Indemnified Person

  	
   

  	
  7.9(a)

  
	
  Indemnified Persons

  	
   

  	
  7.9(a)

  
	
  Injunction

  	
   

  	
  8.1(c)

  
	
  Intellectual Property

  	
   

  	
  5.12(a)

  
	
  Knowledge
  of the Company

  	
   

  	
  5.1

  
	
  Law

  	
   

  	
  5.4

  
	
  Lien

  	
   

  	
  5.2(a)

  
	
  Maximum Annual Premium

  	
   

  	
  7.9(b)

  
	
  Merger

  	
   

  	
  Recitals

  
	
  Merger Consideration

  	
   

  	
  4.1(a)

  
	
  Merger Sub

  	
   

  	
  Preamble

  
	
  New Plans

  	
   

  	
  7.8(b)

  
	
  non-U.S.
  Benefit Plans

  	
   

  	
  5.11(a)

  
	
  non-U.S.
  Employees

  	
   

  	
  5.11(a)

  
	
  Novartis

  	
   

  	
  Preamble

  
	
  Novartis
  Companies

  	
   

  	
  4.1(a)

  
	
  Old Plan

  	
   

  	
  7.8(b)

  
	
  or

  	
   

  	
  10.11(a)

  
	
  Parent

  	
   

  	
  Preamble

  
	
  Paying Agent

  	
   

  	
  4.2(a)

  
	
  Person

  	
   

  	
  4.2(d)

  
	
  Preferred Stock

  	
   

  	
  5.2(a)

  
	
  Recommendation

  	
   

  	
  7.3(b)

  
	
  Representatives

  	
   

  	
  7.2(a)

  
	
  Restricted Common Stock

  	
   

  	
  5.2(a)

  
	
  SEC

  	
   

  	
  5.6(a)

  
	
  Securities Act

  	
   

  	
  5.4

  
	
  Share
  Right

  	
   

  	
  4.5(b)

  
	
  Significant Subsidiary

  	
   

  	
  5.1

  
	
  Stockholders
  Meeting

  	
   

  	
  7.3(a)

  
	
  Subsidiary

  	
   

  	
  5.1

  
	
  Superior
  Proposal

  	
   

  	
  7.2(a)

  
	
  Surviving
  Corporation

  	
   

  	
  1.1

  
	
  Takeover Statute

  	
   

  	
  5.14

  
	
  Tax

  	
   

  	
  5.13

  
	
  Tax Return

  	
   

  	
  5.13

  
	
  Taxes

  	
   

  	
  5.13

  
	
  Termination
  Date

  	
   

  	
  9.2

  
	
  Trade Secrets

  	
   

  	
  5.12(a)

  

 

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Exhibit 4.8    
    

        BILL BARRETT CORPORATION  

as Issuer, 

and 

DEUTSCHE BANK TRUST COMPANY AMERICAS,  

as Trustee 

Form of

Indenture  

Dated as of            

Senior
Debt Securities 

 
CROSS-REFERENCE TABLE  

	TIA SECTION
 
	 	INDENTURE SECTION
	 
	310 (a)	 	7.10	 
	 	(b)	 	7.10	 
	 	(c)	 	N.A.	 
	311 (a)	 	7.11	 
	 	(b)	 	7.11	 
	 	(c)	 	N.A.	 
	312 (a)	 	5.01	 
	 	(b)	 	5.02	 
	 	(c)	 	5.02	 
	313 (a)	 	5.03	 
	 	(b)	 	5.03	 
	 	(c)	 	12.03	 
	 	(d)	 	5.03	 
	314 (a)	 	4.05 & 4.06	 
	 	(b)	 	N.A.	 
	 	(c)(1)	 	12.05	 
	 	(c)(2)	 	12.05	 
	 	(c)(3)	 	N.A.	 
	 	(d)	 	N.A.	 
	 	(e)	 	12.05	 
	 	(f)	 	4.07	 
	315 (a)	 	7.01(b	)
	 	(b)	 	6.07 & 12.03	 
	 	(c)	 	7.01	 
	 	(d)	 	7.01	 
	 	(e)	 	6.08	 
	316 (a) (last sentence)	 	1.01	 
	 	(a)(1)	 	6.06	 
	 	(a)(2)	 	9.01(d	)
	 	(b)	 	6.04	 
	 	(c)	 	5.04	 
	317 (a)(1)	 	6.02	 
	 	(a)(2)	 	6.02	 
	 	(b)	 	4.04	 
	318 (a)	 	12.07	 

N.A.
means Not Applicable

NOTE: This Cross-Reference table shall not, for any purpose, be deemed part of this Indenture. 

i

 
TABLE OF CONTENTS  

	 
	 	 
	 	Page

	RECITALS OF THE COMPANY	 	1
	
ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE
	

Section 1.01.	
 	

Definitions	
 	

1
	Section 1.02.	 	Other Definitions	 	8
	Section 1.03.	 	Incorporation by Reference of TIA	 	8
	Section 1.04.	 	Rules of Construction	 	8
	
ARTICLE II

DEBT SECURITIES
	

Section 2.01.	
 	

Forms Generally	
 	

9
	Section 2.02.	 	Form of Face of Debt Security	 	9
	Section 2.03.	 	Form of Reverse of Debt Security	 	11
	Section 2.04.	 	Form of Trustee's Certificate of Authentication	 	14
	Section 2.05	 	Principal Amount; Issuable in Series	 	15
	Section 2.06.	 	Execution of Debt Securities	 	17
	Section 2.07.	 	Authentication and Delivery of Debt Securities	 	17
	Section 2.08.	 	Denomination of Debt Securities	 	18
	Section 2.09.	 	Registration of Transfer and Exchange	 	18
	Section 2.10.	 	Temporary Debt Securities	 	19
	Section 2.11.	 	Mutilated, Destroyed, Lost or Stolen Debt Securities	 	20
	Section 2.12.	 	Cancellation of Surrendered Debt Securities	 	20
	Section 2.13.	 	Provisions of the Indenture and Debt Securities for the Sole Benefit of the Parties and the Holders	 	21
	Section 2.14.	 	Payment of Interest; Interest Rights Preserved	 	21
	Section 2.15.	 	Wire Transfers	 	21
	Section 2.16.	 	Securities Issuable in the Form of a Global Security	 	21
	Section 2.17.	 	Medium Term Securities	 	24
	Section 2.18.	 	Defaulted Interest	 	24
	Section 2.19.	 	CUSIP Numbers	 	25
	
ARTICLE III

REDEMPTION OF DEBT SECURITIES
	

Section 3.01.	
 	

Applicability of Article	
 	

25
	Section 3.02.	 	Notice of Redemption; Selection of Debt Securities	 	25
	Section 3.03	 	Deposit of Redemption Price	 	26
	Section 3.04.	 	Payment of Debt Securities Called for Redemption	 	26
	Section 3.05.	 	Mandatory and Optional Sinking Fund	 	27
	Section 3.06.	 	Redemption of Debt Securities for Sinking Fund	 	27
	 	 	 	 	 

ii

 

	
ARTICLE IV

PARTICULAR COVENANTS OF THE COMPANY
	

Section 4.01.	
 	

Payment of Principal of, and Premium, if any, and Interest on, Debt Securities	
 	

29
	Section 4.02.	 	Maintenance of Offices or Agencies for Registration of Transfer, Exchange and Payment of Debt Securities	 	29
	Section 4.03.	 	Appointment to Fill a Vacancy in the Office of Trustee	 	30
	Section 4.04.	 	Duties of Paying Agents, etc	 	30
	Section 4.05	 	SEC Reports; Financial Statements	 	31
	Section 4.06	 	Compliance Certificate	 	31
	Section 4.07.	 	Further Instruments and Acts	 	32
	Section 4.08.	 	Corporate Existence	 	32
	Section 4.09.	 	Maintenance of Properties	 	32
	Section 4.10.	 	Payment of Taxes and Other Claims	 	32
	Section 4.11.	 	Limitation on Sale/Leaseback Transactions	 	32
	Section 4.12.	 	Limitation on Liens	 	33
	
ARTICLE V

HOLDERS' LISTS AND REPORTS BY THE TRUSTEE
	

Section 5.01.	
 	

Company to Furnish Trustee Information as to Names and Addresses of Holders; Preservation of Information	
 	

35
	Section 5.02.	 	Communications to Holders	 	35
	Section 5.03.	 	Reports by Trustee	 	35
	Section 5.04.	 	Record Dates for Action by Holders	 	35
	
ARTICLE VI

REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT
	

Section 6.01.	
 	

Events of Default	
 	

36
	Section 6.02.	 	Collection of Indebtedness by Trustee, etc	 	37
	Section 6.03.	 	Application of Monies Collected by Trustee	 	38
	Section 6.04.	 	Limitation on Suits by Holders	 	39
	Section 6.05.	 	Remedies Cumulative; Delay or Omission in Exercise of Rights Not a Waiver of Default	 	40
	Section 6.06.	 	Rights of Holders of Majority in Principal Amount of Debt Securities to Direct Trustee and to Waive Default	 	40
	Section 6.07.	 	Trustee to Give Notice of Defaults Known to It, but May Withhold Such Notice in Certain Circumstances	 	40
	Section 6.08.	 	Requirement of an Undertaking to Pay Costs in Certain Suits under the Indenture or Against the Trustee	 	41
	 	 	 	 	 

iii

 

	
ARTICLE VII

CONCERNING THE TRUSTEE
	

Section 7.01.	
 	

Certain Duties and Responsibilities	
 	

41
	Section 7.02.	 	Certain Rights of Trustee	 	42
	Section 7.03.	 	Trustee Not Liable for Recitals in Indenture or in Debt Securities	 	43
	Section 7.04.	 	Trustee, Paying Agent or Registrar May Own Debt Securities	 	43
	Section 7.05.	 	Monies Received by Trustee to Be Held in Trust	 	43
	Section 7.06.	 	Compensation and Reimbursement	 	43
	Section 7.07.	 	Right of Trustee to Rely on an Officers' Certificate Where No Other Evidence Specifically Prescribed	 	44
	Section 7.08.	 	Separate Trustee; Replacement of Trustee	 	44
	Section 7.09.	 	Successor Trustee by Merger	 	45
	Section 7.10.	 	Eligibility; Disqualification	 	46
	Section 7.11.	 	Preferential Collection of Claims Against Company	 	46
	Section 7.12.	 	Compliance with Tax Laws	 	46
	
ARTICLE VIII

CONCERNING THE HOLDERS
	

Section 8.01.	
 	

Evidence of Action by Holders	
 	

46
	Section 8.02.	 	Proof of Execution of Instruments and of Holding of Debt Securities	 	46
	Section 8.03.	 	Who May Be Deemed Owner of Debt Securities	 	46
	Section 8.04.	 	Instruments Executed by Holders Bind Future Holders	 	47
	
ARTICLE IX

SUPPLEMENTAL INDENTURES
	

Section 9.01.	
 	

Purposes for Which Supplemental Indenture May Be Entered into Without Consent of Holders	
 	

47
	Section 9.02.	 	Modification of Indenture with Consent of Holders of Debt Securities	 	49
	Section 9.03.	 	Effect of Supplemental Indentures	 	50
	Section 9.04.	 	Debt Securities May Bear Notation of Changes by Supplemental Indentures	 	50
	
ARTICLE X

CONSOLIDATION, MERGER, SALE OR CONVEYANCE
	

Section 10.01.	
 	

Consolidations and Mergers of the Company	
 	

50
	Section 10.02.	 	Rights and Duties of Successor Company	 	50
	
ARTICLE XI

SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE;

UNCLAIMED MONIES
	

Section 11.01.	
 	

Applicability of Article	
 	

51
	Section 11.02.	 	Satisfaction and Discharge of Indenture; Defeasance	 	51
	Section 11.03.	 	Conditions of Defeasance	 	52
	Section 11.04.	 	Application of Trust Money	 	53
	Section 11.05.	 	Repayment to Company	 	53
	Section 11.06.	 	Indemnity for U.S. Government Obligations	 	53
	Section 11.07.	 	Reinstatement	 	53
	 	 	 	 	 

iv

 

	
ARTICLE XII

MISCELLANEOUS PROVISIONS
	

Section 12.01.	
 	

Successors and Assigns of Company Bound by Indenture	
 	

53
	Section 12.02.	 	Acts of Board, Committee or Officer of Successor Company Valid	 	53
	Section 12.03.	 	Required Notices or Demands	 	53
	Section 12.04.	 	Indenture and Debt Securities to Be Construed in Accordance with the Laws of the State of New York	 	54
	Section 12.05.	 	Officers' Certificate and Opinion of Counsel to be Furnished upon Application or Demand by the Company	 	54
	Section 12.06.	 	Payments Due on Legal Holidays	 	55
	Section 12.07.	 	Provisions Required by TIA to Control	 	55
	Section 12.08.	 	Computation of Interest on Debt Securities	 	55
	Section 12.09.	 	Rules by Trustee, Paying Agent and Registrar	 	55
	Section 12.10.	 	No Recourse Against Others	 	55
	Section 12.11.	 	Severability	 	55
	Section 12.12.	 	Effect of Headings	 	55
	Section 12.13.	 	Indenture May Be Executed in Counterparts	 	55

v

   
        INDENTURE dated as of            among Bill Barrett Corporation., a Delaware corporation (the
"Company") and Deutsche Bank Trust Company Americas, a New York banking corporation, as trustee (the
"Trustee"). 

RECITALS OF THE COMPANY  

        The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its senior unsecured debentures,
notes, bonds or other evidences of indebtedness to be issued in one or more series unlimited as to principal amount (herein called the "Debt
Securities"), to bear such rates of interest, to mature at such time or times, to be issued in one or more series and to have such other provisions as shall be fixed as
hereinafter provided. 

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

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH  

        That in order to declare the terms and conditions upon which the Debt Securities are authenticated, issued and delivered, and in consideration of the premises,
and of the purchase and acceptance of the Debt Securities by the holders thereof, the Company and the Trustee covenant and agree with each other, for the benefit of the respective Holders from time to
time of the Debt Securities or any series thereof, as follows: 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE  

        Section 1.01.    Definitions.    

        The
terms defined in this Section (except as in this Indenture otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture, any Company
Order, any Board Resolution, and any indenture supplemental hereto shall have the respective meanings specified in this Section. All other terms used in this Indenture which are defined in the Trust
Indenture Act of 1939, as amended, or which are by reference in such Act defined in the Securities Act of 1933, as amended (except as herein otherwise expressly provided or unless the context
otherwise requires), shall have the meanings assigned to such terms in the TIA and in said Securities Act as in force at the date of the execution of this instrument. 

        "Affiliate" of any specified Person means any Person directly or indirectly controlling or controlled by, or under direct or indirect
common control with, such specified Person. For purposes of this definition, control of a Person shall mean the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise. The Trustee may request and may conclusively rely upon an Officers' Certificate to determine whether any Person is an
Affiliate of any specified Person. 

        "Agent" means any Registrar or paying agent. 

        "Attributable Indebtedness", when used with respect to any Sale/Leaseback Transaction, means, as at the time of determination, the present
value (discounted at a rate equivalent to the Company's then current weighted average cost of funds for borrowed money as at the time of determination, compounded on a semiannual basis) of the total
obligations of the lessee for rental payments during 

1

 

the
remaining term of the lease included in such Sale/Leaseback Transaction (including any period for which such lease can be extended). 

        "Authorized Newspaper" means a newspaper in an official language of the place of publication or in the English language, customarily
published at least once a day, and customarily published for at least five days in each calendar week whether or not published on days that are Legal Holidays in the place of publication, and of
general circulation in such city or cities specified pursuant to Section 2.05 with
respect to the Debt Securities of any series. Where successive publications are required to be made in Authorized Newspapers, the successive publications may be made in the same or in different
newspapers in the same city meeting the foregoing requirements and in each case on any Business Day in such city. 

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

        "Bank Indebtedness" means any and all amounts payable under or in respect of any note, loan or credit agreement with a banking
institution, including principal, premium (if any), interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company whether or
not a claim for post-filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement obligations, guarantees and all other amounts payable thereunder or in respect
thereof. 

        "Board of Directors" means, when used with reference to the Company, either the board of directors of the Company, or any authorized
committee of such board of directors of the Company. 

        "Board Resolution" means a copy of one or more resolutions, certified by the Secretary or an assistant Secretary of the Company, to have
been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification delivered to the Trustee. 

        "Business Day" means any day other than a Legal Holiday. 

        "Capital Stock" of any Person means and includes any and all shares, rights to purchase, warrants or options (whether or not currently
exercisable), participation or other equivalents of or interests in (however designated) the equity (which includes, but is not limited to, common stock, preferred stock and partnership and joint
venture interests) of such Person (excluding any debt securities that are convertible into, or exchangeable for, such equity). 

        "Capitalized Lease Obligation" of any Person means any obligation of such Person to pay rent or other amounts under a lease of property,
real or personal, that is required to be capitalized for financial reporting purposes in accordance with GAAP; and the amount of such obligation shall be the capitalized amount thereof determined in
accordance with GAAP. 

        "Common Equity" of any Person means and includes all Capital Stock of such Person that is generally entitled to (i) vote in the
election of directors of such Person, or (ii) if such Person is not a corporation,
vote or otherwise participate in the selection of the governing body, partners, managers or others that will control the management and policies of such Person. 

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

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

2

 

        "Consolidated Net Tangible Assets" means, for the Company and its Restricted Subsidiaries on a consolidated basis determined in accordance
with GAAP, the aggregate amounts of assets (less depreciation and valuation reserves and other reserves and items deductible from gross book value of specific asset accounts under GAAP) that would be
included on a balance sheet after deducting therefrom (a) all liability items except deferred income taxes, commercial paper, short term bank indebtedness, Funded Indebtedness, other
long-term liabilities and shareholders' equity and (b) all goodwill, trade names, trademarks, patents, unamortized debt discount and expense and other like intangibles. 

        "Currency Hedge Obligations" means, at any time as to any Person, the obligations of such Person at such time that were incurred in the
ordinary course of business pursuant to any foreign currency exchange agreement, option or futures contract or other similar agreement or arrangement designed to protect against or manage such
Person's or any of its Subsidiaries' exposure to fluctuations in foreign currency exchange rates. 

        "Custodian" means any receiver, trustee, assignee, liquidation or similar official under any Bankruptcy Law. 

        "Debt Security" or "Debt Securities" has the meaning stated in the first recital of this Indenture and more particularly means any debt
security or debt securities, as the case may be of any series authenticated and delivered under this Indenture. 

        "Default" means any event, act or condition that is, or after notice or the passage of time or both would be, an Event of Default. 

        "Depositary" means, unless otherwise specified by the Company pursuant to either Section 2.05 or 2.16, with respect to Debt
Securities of any series issuable or issued in whole or in part in the form of one or more Global Securities, The Depository Trust Company, New York, New York, another clearing agency or any successor
thereto registered as a clearing agency under the Exchange Act or other applicable statute or regulations. 

        "Dollar" or "$" means a dollar or other equivalent unit of legal tender as at the time for payment of public or private debts in the
United States. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and any successor statute. 

        "Floating Rate Security" means a Debt Security that provides for the payment of interest at a variable rate determined periodically by
reference to an interest rate index specified pursuant to Section 2.05. 

        "Funded Indebtedness" means all Indebtedness (including Indebtedness incurred under any revolving credit, letter of credit or working
capital facility) that matures by its terms, or that is renewable at the option of any obligor thereon to a date, more than one year after the date on which such Indebtedness is originally incurred. 

        "GAAP" means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved
by a significant segment of the accounting profession of the United States, as in effect on the date on which the Debt Securities of the applicable series are issued. 

        "Global Security" means with respect to any series of Debt Securities issued hereunder, a Debt Security which is executed by the Company
and authenticated and delivered by the Trustee to the Depositary or pursuant to the Depositary's instruction, all in accordance with this Indenture and any 

3

 

Indentures
supplemental hereto, or resolution of the Board of Directors and set forth in an Officers' Certificate, which shall be registered in the name of the Depositary or its nominee and which
shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all the Outstanding Debt Securities of such series or any portion thereof, in either case having the
same terms, including, without limitation, the same original issue date, date or dates on which principal is due and interest rate or method of determining interest. 

        "Hedging Obligations" of any Person means the obligations of such Person pursuant to any Currency Hedge Obligations, Interest Rate Hedging
Agreements or Oil and Gas Hedging Contracts. 

        "Holder," "Holder of Debt Securities" means a Person in whose name a Debt Security is registered in the Debt Security Register. 

        "Indebtedness" of any Person at any date means, without duplication, (i) all indebtedness of such Person for borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof), (ii) all obligations of such Person evidenced by bonds, debentures, notes
or other similar instruments, (iii) all obligations of such Person in respect of letters of credit or other similar instruments (or reimbursement obligations with respect thereto), other than
standby letters of credit incurred by such Person in the ordinary course of business, (iv) all obligations of such Person to pay the deferred and unpaid purchase price of property or services,
except trade payables and accrued expenses incurred in the ordinary course of business, (v) all Capitalized Lease Obligations of such Person, (vi) all Indebtedness of others secured by a
Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person, (vii) all Indebtedness of others guaranteed by such Person to the extent of such guarantee, and
(viii) all Hedging Obligations of such Person. 

        "Indenture" means this instrument as originally executed, or, if amended or supplemented as herein provided, as so amended or supplemented
and shall include the form and terms of particular series of Debt Securities as contemplated hereunder, whether or not a supplemental Indenture is entered into with respect thereto. 

        "Interest" (i) when used with respect to any Original Issue Discount Debt Security which by its terms bears interest only after
Stated Maturity, means interest payable after maturity (whether at Stated Maturity, upon acceleration or redemption or otherwise) or after the date, if any, on which the Company becomes obligated to
acquire a Debt Security, whether by purchase or otherwise; and (ii) when used with respect to any Debt Security, means the amount of all interest accruing on such
Debt Security, including any default interest and any interest accruing after any Event of Default that would have accrued but for the occurrence of such Event of Default, whether or not a claim for
such interest would be otherwise allowable under applicable law. 

        "Interest Rate Hedging Agreements" means, with respect to any Person, the obligations of such Person under (i) interest rate swap
agreements, interest rate cap agreements and interest rate collar agreements and (ii) other agreements or arrangements designed to protect such Person or any of its Subsidiaries against
fluctuations in interest rates. 

        "Legal Holiday" means a Saturday, Sunday or a day on which banking institutions in the Place of Payment are not authorized or obligated to
be open. 

        "Lien" means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of
such asset (including, without limitation, any production payment, advance payment or similar arrangement with respect to minerals in place), whether or not filed, recorded or otherwise perfected
under applicable law. For the purposes of this Indenture, the Company or any Restricted Subsidiary shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, Capitalized Lease Obligation (other than any Capitalized Lease Obligation relating to any building, 

4

 

structure,
equipment or other property used or to be used in the ordinary course of business of the Company and the Restricted Subsidiaries) or other title retention agreement relating to such asset.
The right of set-off, whether by operation of law or by contract, does not constitute a Lien unless there is a related obligation to maintain a deposit of cash or other assets in respect
of which such right of set-off may be exercised. 

        "Net Proceeds" means, with respect to any Sale/Leaseback Transaction entered into by the Company or any Restricted Subsidiary, the
aggregate net proceeds received by the Company or such Restricted Subsidiary from such Sale/Leaseback Transaction after payment of expenses, taxes, commissions and similar amounts incurred in
connection therewith, whether such proceeds are in cash or in property (valued at the fair market value thereof at the time of receipt, as determined by the Board of Directors). 

        "Officer" means the Chairman of the Board, President, the Treasurer, any Assistant Treasurer, Controller, any Vice President or Assistant
Vice President of a Person. 

        "Officers' Certificate" means a certificate signed by an Officer and by the Secretary or Assistant or Attesting Secretary of the Company.
Each such certificate shall include the statements provided for in Section 12.05, if and to the extent required by the provisions thereof. 

        "Oil and Gas Hedging Contracts" means any oil and gas purchase or hedging agreement, and other agreement or arrangement, in each case,
that is designed to provide protection against oil and gas price fluctuations. 

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

        "Ordinary Course Lien" means: 

        (a)   Liens
for taxes, assessments or governmental charges or levies on the property of the Company or any Restricted Subsidiary if the same shall not at the time be
delinquent or thereafter can be paid without penalty, or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside
on the books of the Company; 

        (b)   Liens
imposed by law, such as carriers', warehousemen's, landlords' and mechanics' liens and other similar liens arising in the ordinary course of business which secure
obligations not more than 60 days past due or which are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set
aside on the books of the Company; 

        (c)   Liens
arising out of pledges or deposits under worker's compensation laws, unemployment insurance, old age pensions, or other social security or retirement benefits, or
similar legislation; 

        (d)   Utility
easements, building restrictions and such other encumbrances or charges against real property as are of a nature generally existing with respect to properties of
a similar character and which do not in any material way affect the marketability of the same or interfere with the use thereof in the ordinary course of business of the Company and the Restricted
Subsidiaries, as the case may be; 

        (e)   Liens
arising under operating agreements or similar agreements in respect of obligations which are not yet due or which are being contested in good faith by appropriate
proceedings; 

        (f)    Liens
reserved in oil, gas and/or mineral leases, production sharing contracts and petroleum concession agreements and licenses for bonus or rental payments and for
compliance with the terms of such leases, contracts, agreements and licenses; 

5

 

        (g)   Liens
pursuant to partnership agreements, oil, gas and/or mineral leases, production sharing contracts, petroleum concession agreements and licenses,
farm-out agreements, division orders, contracts for the sale, purchase, exchange, processing or transportation of oil, gas and/or other hydrocarbons, unitization and pooling declarations
and agreements, operating agreements, development agreements, area of mutual interest agreements, and other agreements which are customary in the oil, gas and other mineral exploration, development
and production business and in the business of processing of gas and gas condensate production for the extraction of products therefrom; 

        (h)   Liens
on personal property (excluding the Capital Stock of any Restricted Subsidiary) securing Indebtedness of the Company or any Restricted Subsidiary other than Funded
Indebtedness; and 

        (i)    Liens
imposed by law or order as a result of any proceeding before any court or regulatory body that is being contested in good faith, and Liens which secure a judgment
or other court-ordered award or settlement as to which the Company has not exhausted its appellate rights. 

        "Original Issue Discount Debt Security" means any Debt Security which provides for an amount less than the principal amount thereof to be
due and payable upon a declaration of acceleration of the maturity thereof pursuant to Section 6.01. 

        "Outstanding", when used with respect to any series of Debt Securities, means, as of the date of determination, all Debt Securities of
that series theretofore authenticated and delivered under this Indenture, except: 

        (a)   Debt
Securities of that series theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 

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

        (c)   Debt
Securities of that series which have been paid pursuant to Section 2.11 or in exchange for or in lieu of which other Debt Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Debt Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Debt Securities are
held by a bona fide purchaser in whose hands such Debt Securities are valid obligations of the Company; provided, however, that in determining whether
the Holders of the requisite principal amount of the Outstanding Debt Securities of any series have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Debt
Securities owned by the Company or any other obligor upon the Debt Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Debt Securities which a Trust Officer of
the Trustee actually knows to be so owned shall be so disregarded. Debt Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to such Debt Securities and that the pledgee is not the Company or any other obligor upon the Debt Securities or an Affiliate of
the Company or of such other obligor. In determining whether the Holders of the requisite principal amount of Outstanding Debt Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, the principal amount of an Original Issue Discount Debt Security 

6

 

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 6.01. 

        "Pari Passu" as applied to the ranking of any Indebtedness of a Person in relation to other Indebtedness of such Person, means that each
such Indebtedness either (a) is not subordinate in right of payment to any Indebtedness or (b) is subordinate in right of payment to the same Indebtedness as is the other, and is so
subordinate to the same extent, and is not subordinate in right of payment to each other or to any Indebtedness as to which the other is not so subordinate. 

        "Person" means any individual, corporation, partnership, joint venture, incorporated or unincorporated association, joint-stock company,
trust, unincorporated organization or government or other agency or political subdivision thereof or other entity of any kind. 

        "Place of Payment" means, when used with respect to the Debt Securities of any series, the place or places where the principal of, and
premium, if any, and interest on, the Debt Securities of that series are payable as specified pursuant to Section 2.05. 

        "Predecessor Debt Security", when used with respect to any particular Debt Security means every previous Debt Security evidencing all or a
portion of the same debt as that evidenced by such Debt Security; and, for the purposes of this definition, any Debt Security authenticated and delivered under Section 2.11 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Debt Security will be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Debt Security. 

        "Preferred Stock", as applied to the Capital Stock of any Person, means Capital Stock of any class or classes (however designated) which
is preferred as to the payment of dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Capital
Stock of any other class of such Person. 

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

        "Registrar" has the meaning set forth in Section 2.09(a). 

        "Representative" means the trustee, agent or representative (if any) for an issue of Senior Indebtedness. 

        "Restricted Subsidiary" means each of the existing Subsidiaries of the Company and any Subsidiary of the Company that is a successor
corporation of any of the existing Subsidiaries. The status of any Subsidiary of the Company as a Restricted Subsidiary shall continue, so long as it is a Subsidiary of the Company. 

        "Sale/Leaseback Transaction" means any arrangement with any Person providing for the leasing by the Company or any Restricted Subsidiary,
for a period of more than three years, of any real or tangible personal property, which property has been or is to be sold or transferred by the Company or such Restricted Subsidiary to such Person in
contemplation of such leasing. 

        "SEC" means the Securities and Exchange Commission. 

        "Securities Act" means the Securities Act of 1933, as amended, and any successor statute. 

        "Stated Maturity" means, with respect to any Debt Security, the date specified in such Debt Security as the fixed date on which the
payment of principal of such Debt Security is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase of such Debt Security
at the option of the holder thereof upon the happening of any contingency beyond the control of the issuer unless such contingency has occurred). 

7

 

        "Subsidiary" of any Person means any corporation of which at least a majority of the aggregate voting power of all classes of the Common
Equity is owned by such Person directly or through one or more other Subsidiaries of such Person, and any entity other than a corporation in which such Person, directly or indirectly, owns at least a
majority of the Common Equity of such entity. 

        "TIA" means the Trust Indenture Act of 1939, as amended, as in effect on the date of this Indenture as originally executed and, to the
extent required by law, as amended. 

        "Trustee" initially means Deutsche Bank Trust Company Americas and any other Person or Persons appointed as such from time to time
pursuant to Section 7.08, and, subject to the provisions of Article VII, includes its or their successors and assigns. If at any time there is more than one such Person, "Trustee" as
used with respect to the Debt Securities of any series shall mean the Trustee with respect to the Debt Securities of that series. 

        "Trust Officer" means any officer or assistant officer of the Trustee assigned by the Trustee to administer its corporate trust matters. 

        "United States" means the United States of America (including the States and the District of Columbia), its territories, its possessions
and other areas subject to its jurisdiction. 

        "United States Alien" means any Person who, for United States Federal income tax purposes, is a foreign corporation, a nonresident alien
individual, a nonresident alien fiduciary of a foreign estate or trust, or a foreign partnership one or more members of which is, for United States Federal income tax purposes, a foreign corporation,
a nonresident alien individual or a nonresident alien fiduciary of a foreign estate or trust. 

        "U.S. Government Obligations" means direct obligations of the United States, obligations on which the payment of principal and interest is
fully guaranteed by the United States or obligations or guarantees for the payment of which the full faith and credit of the United States is pledged. 

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

        Section 1.02.    Other Definitions.    

	Term
 
	 	Defined in Section

	"Debt Security Register"	 	2.09
	"Defaulted Interest"	 	2.18
	"Event of Default"	 	6.01
	"Registrar"	 	2.09
	"Successor Company"	 	10.01

        Section 1.03.    Incorporation by Reference of TIA.    Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this Indenture. 

        Section 1.04.    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 GAAP; 

        (c)   "or"
is not exclusive; 

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

        (e)   provisions
apply to successive events and transactions; and 

8

 

        (f)    the
principal amount of any noninterest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a balance sheet of
the issuer dated such date prepared in accordance with GAAP. 

ARTICLE II

DEBT SECURITIES  

        Section 2.01.    Forms Generally.    The Debt Securities of each series shall be in substantially the form set
forth in this Article, or in such other form or forms as shall be established by or pursuant to a Board Resolution or in one or more Indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as the Company may deem appropriate (and, if not contained in a supplemental Indenture entered into in accordance with Article IX, as are not prohibited by the
provisions of this Indenture) or as may be required or appropriate to comply with any law or with any rules made pursuant thereto or with any rules of any securities exchange on which such series of
Debt Securities may be listed, or to conform to general usage, or as may, consistently herewith, be determined by the officers executing such Debt Securities, as evidenced by their execution of the
Debt Securities. If the form or forms of Debt Securities of any series is established by action taken pursuant to a Board Resolution, either an Officers' Certificate of the Company shall certify that
such action shall have been duly taken or a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company, and, in either case, delivered to
the Trustee at or prior to the delivery of the Company Order contemplated by Section 2.07 for the authentication and delivery of such Debt Securities. 

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

        The
forms of Global Securities of any series shall have such provisions and legends as are customary for Debt Securities of such series in global form, including without limitation any
legend required by the Depositary for the Debt Securities of such series. 

        The
Trustee's Certificates of Authentication shall be in substantially the form set forth in this Article II. 

        Section 2.02.    Form of Face of Security.    

        [If
the Debt Security is an Original Issue Discount Debt Security, insert—FOR PURPOSES OF SECTION 1275 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS
AMENDED, THE AMOUNT OF THE ORIGINAL ISSUE DISCOUNT IS            , THE ISSUE DATE IS            , 20 [AND] [,] THE YIELD TO
MATURITY IS
[            ,] 

        [AND
THE ORIGINAL ISSUE DISCOUNT FOR THE SHORT ACCRUAL PERIOD IS            AND THE METHOD USED TO DETERMINE THE YIELD THEREFOR IS
            ]] 

        [Insert
any other legend required by the United States Internal Revenue Code or the regulations thereunder]. 

        [If
a Global Security,—insert legend required by Section 2.16 of the Indenture] [If applicable, insert—UNLESS THIS
SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO 

9

 

SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 

BILL BARRETT CORPORATION

	No.             	 	$            
	

 	
 	

CUSIP No.             

        BILL
BARRETT CORPORATION, a Delaware corporation (herein called the "Company", which term includes any successor corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay to            , or registered assigns, the principal sum of            Dollars
on            [If the Debt Security is to bear interest prior
to Stated Maturity, insert—, and to pay interest thereon from            or from the most recent Interest payment date to which interest has been paid or duly provided for,
semi-annually on            and            in each year,
commencing            , at the rate of    % per annum, until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest payment date will, as provided in such Indenture, be paid to the Person in whose name this
Debt Security (or one or more Predecessor Debt Securities) is registered at the close of business on the regular record date for such interest, which shall be
the            or            
(whether or not a Business Day), as the case may be, next preceding such Interest payment date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such regular record date and may either be paid to the Person in
whose name this Debt Security (or one or more Predecessor Debt Securities) is registered at the close of business on a special record date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Debt Securities of this series not less than 10 days prior to such special record date, or be paid at any time in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Debt Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture]. 

        [If
the Debt Security is not to bear interest prior to Maturity, insert—The principal of this Debt Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this Debt Security shall bear interest at the rate of    %
per annum (to the extent that the payment of such interest shall be legally enforceable), which shall accrue from the date of such default in payment to the date payment of such principal has been
made or duly provided for. Interest on any overdue principal shall be payable on demand. Any such interest on any overdue principal that is not so paid on demand shall bear interest at the rate of
    % per annum (to the extent that the payment of such interest shall be legally enforceable), which shall accrue from the date of such demand for payment to the date payment of such
interest has been made or duly provided for, and such interest shall also be payable on demand.] 

        [If
a Global Security, insert—Payment of the principal of (and premium, if any) and [if applicable, insert—any such] interest
on this Debt Security by transfer of immediately available funds to a bank account in            designated by the Holder in such coin or currency of the United States of America as at the
time of
payment is legal tender for payment of public and private debts.] 

        [If
a definitive Debt Security, insert—Payment of the principal of (and premium, if any) and [if applicable, insert—any such]
interest on this Debt Security will be made at the office or agency of the Company maintained for that purpose in            , in such coin or currency of the United States of America as at
the
time of payment is legal tender for payment of public and private debts] [or subject to any laws or regulations applicable thereto and to the right of the Company (as provided
in the 

10

 

Indenture)
to rescind the designation of any such Paying Agent, at the [main] offices
of            in            and            in    
        , or at such
other offices or agencies as the Company may designate, by United States Dollar check drawn on, or transfer to a United States Dollar account maintained by the payee with, a bank in The City of New
York (so long as the applicable Paying Agency has received proper transfer instructions in writing at least [            ] days prior to the payment date)]
[if applicable, insert—; provided, however, that payment of interest may be made at the option of the Company by United States
Dollar check mailed to the addresses of the Persons entitled thereto as such addresses shall appear in the Debt Security Register] [or by transfer to a United States Dollar
account maintained by the payee with a bank in The City of New York [state other Place of Payment] (so long as the applicable Paying Agent has received proper transfer
instructions in writing by the record date prior to the applicable Interest payment date)].] 

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

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

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

	Dated:	 	 	 	 
	

 	
 	

BILL BARRETT CORPORATION
	

 	
 	

By:	
 	

 
	

Attest:	
 	

 	
 	

 
	

 
	
 	

 	
 	

 

        Section 2.03.    Form of Reverse of Security.    

        This
Debt Security is one of a duly authorized issue of senior securities of the Company (herein called the "Debt Securities"), issued and to be issued in one or more series under an
Indenture, dated as of [            ] (herein called the "Indenture"), between the Company and Deutsche Bank Trust Company Americas (herein called the "Trustee," which term
includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement, of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Debt Securities and of the terms upon which the Debt Securities are, and are to be, authenticated and
delivered. This Debt Security is one of the series designated on the face hereof [, limited in aggregate principal amount to $            ]. 

        The
Securities are senior unsecured obligations of the Company. 

        [If
applicable, insert—The Debt Securities of this series are subject to redemption upon not less than            days' notice by mail, [if
applicable, insert,—(1) on            in any year commencing with the year            and ending with the
year            through operation of the sinking fund for this
series at a Redemption Price equal to 100% of the principal amount, and (2)] at any time [on or after            , 20    ], as a whole or in part, at
the election of the Company, at the following Redemption 

11

 

Prices
(expressed as percentages of the principal amount): If redeemed [on or before            ,    %, and if redeemed] during the 12-month period
beginning            of the years indicated, 

	Year
 
	 	Redemption

Price
	 	Year
	 	Redemption

Price

	 	 	 	 	 	 	 

and
thereafter at a Redemption Price equal to    % of the principal amount, together in the case of any such redemption [if applicable, insert—(whether through
operation of the sinking fund or otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such Redemption Date will be
payable to the Holders of such Debt Securities, or one or more Predecessor Debt Securities, of record at the close of business on the relevant record dates referred to on the face hereof, all as
provided in the Indenture.] 

        [If
applicable, insert—The Debt Securities of this series are subject to redemption upon not less than    nor more than            days' notice
by mail, (1) on            in any year commencing with the year            and ending with the
year            through operation of the sinking fund for this series at the
Redemption Prices for redemption through operation of the sinking fund (expressed as percentages of the principal amount) set forth in the table below, and (2) at anytime [on or
after            ], as a whole or in part, at the election of the Company, at the Redemption Prices for redemption otherwise than through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below: If redeemed during the 12-month period beginning            of the years indicated, 

	Year
 
	 	Redemption Price for Redemption Through

Operation of the Sinking Fund

	 	 	 

and
thereafter at a Redemption Price equal to    % of the principal amount, together in the case of any such redemption (whether through operation of the sinking fund or otherwise) with
accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such Debt Securities, or one or more
Predecessor Debt Securities, of record at the close of business on the relevant record dates referred to on the face hereof, all as provided in the Indenture.] 

        [If
applicable, insert—Notwithstanding the foregoing, the Company may not, prior to            , redeem any Debt Securities of this series as contemplated by
[Clause (2) of] the preceding paragraph as a part of, or in anticipation of, any refunding operation by the application, directly or indirectly, of monies borrowed
having an interest cost to the Company (calculated in accordance with generally accepted financial practice) of less than    % per annum.] 

        [If
applicable, insert—The sinking fund for this series provides for the redemption on            in each year beginning with the
year            and
ending with the year            of [not less than] $            [("mandatory sinking fund") and not more than
$            ] aggregate
principal amount of Debt Securities of this series. [Debt Securities of this series acquired or redeemed by the Company otherwise than through [mandatory] sinking
fund payments may be credited against subsequent [mandatory] sinking fund payments otherwise required to be made—in the inverse order in which they become
due.] 

        [If
the Debt Securities are subject to redemption in part of any kind, insert—In the event of redemption of this Debt Security in part only, a new Debt Security
or Debt Securities of this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.] 

        [If
applicable, insert—The Debt Securities of this series are not redeemable prior to Stated Maturity.] 

12

 

        [If
the Debt Security is not an Original Issue Discount Debt Security, insert—If an Event of Default with respect to Debt Securities of this series shall occur
and be continuing, the principal of the Debt Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.] 

        [If
the Debt Security is an Original Issue Discount Debt Security, insert—If an Event of Default with respect to Debt Securities of this series shall occur and be
continuing, an amount of principal of the Debt Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. Such amount shall be equal
to—insert formula for determining the amount. Upon payment (i) of the amount of principal so declared due and payable and (ii) of interest on any overdue principal and
overdue interest (in each case to the extent that the payment of such interest shall be legally enforceable), all of the Company's obligations in respect of the payment of the principal of and
interest, if any, on the Debt Securities of this series shall terminate.] 

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

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

        [If
a Global Security, insert—This Global Security or portion hereof may not be exchanged for definitive Debt Securities of this series except in the limited
circumstances provided in the Indenture. 

        The
holders of beneficial interests in this Global Security will not be entitled to receive physical delivery of definitive Debt Securities except as described in the Indenture and will
not be considered the Holders thereof for any purpose under the Indenture.] 

        [If
a definitive Debt Security, insert—As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Debt Security is
registerable in the Security Register, upon surrender of this Debt Security for registration of transfer at the office or agency of the Company in [if applicable, insert—any
place where the principal of and any premium and interest on this Debt Security are payable] [if applicable, insert—The City of New York[, or, subject
to any laws or regulations applicable thereto and to the right of the Company (limited as provided in the Indenture) to rescind the designation of any such transfer agent, at the
[main] offices of in and in or at such other offices or agencies as the Company may designate]], duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or his or her attorney duly authorized in writing, and thereupon one or more new Debt
Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.] 

13

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

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

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

        No
recourse under or upon any obligation, covenant or agreement of or contained in the Indenture or of or contained in any Debt Security, or for any claim based thereon or otherwise in
respect thereof, or in any Debt Security, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer or director, as such, past,
present or future, of the Company or of any successor Person, either directly or through the Company or any successor Person, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment, penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released by the acceptance hereof and as a condition of, and
as part of the consideration for, the Debt Securities and the execution of the Indenture. 

        The
Indenture provides that the Company (a) will be discharged from any and all obligations in respect of the Debt Securities (except for certain obligations described in the
Indenture), or (b) need not comply with certain restrictive covenants of the Indenture, in each case if the Company deposits, in trust, with the Trustee money or U.S. Government Obligations (or
a combination thereof) which through the payment of interest thereon and principal thereof in accordance with their terms will provide money, in an amount sufficient to pay all the principal of and
interest on the Debt Securities, but such money need not be segregated from other funds except to the extent required by law. 

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

        The
Debt Securities are governed by the laws of The State of New York. 

        Section 2.04.    Form of Trustee's Certificate of Authentication.    

        The
Trustee's Certificate of Authentication on all Debt Securities authenticated by the Trustee shall be in substantially the following form: 

        TRUSTEE'S
CERTIFICATE OF AUTHENTICATION 

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

	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Trustee
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Authorized Signature

14

 

        Section 2.05.    Principal Amount; Issuable in Series.    The aggregate principal amount of Debt Securities
which may be issued, executed, authenticated, delivered and outstanding under this Indenture is unlimited. 

        The
Debt Securities may be issued in one or more series. There shall be established, without the approval of any Holders, in or pursuant to a Board Resolution of the Company and set
forth in an Officers' Certificate of the Company, or established in one or more Indentures supplemental hereto, prior to the issuance of Debt Securities of any series any or all of the following: 

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

        (b)   any
limit upon the aggregate principal amount of the Debt Securities of the series which may be authenticated and delivered under this Indenture (except for Debt
Securities authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of, other Debt Securities of the series pursuant to this Article II); 

        (c)   the
date or dates or the method or methods, if any, by which such date or dates shall be determined, on which the principal and premium, if any, of the Debt Securities
of the series are payable; 

        (d)   the
rate or rates (which may be fixed or variable) at which the Debt Securities of the series shall bear interest, if any, or the method or methods, if any, of
determining such rate or rates, the date or dates from which such interest shall accrue, the Interest payment dates on which such interest shall be payable, or the method by which such date will be
determined, the record dates for the determination of Holders thereof to whom such interest is payable; the notice, if any, to Holders regarding the determination of interest on a floating rate Debt
Security and the manner of giving such notice, and the basis upon which interest will be calculated if other than that of a 360-day year of twelve thirty-day months; 

        (e)   the
right, if any, to extend the Interest payment periods and the duration of any such extension, including the maximum consecutive period, if any, during which Interest
payment periods may be extended; 

        (f)    the
place or places, if any, in addition to or instead of the corporate trust office of the Trustee, where the principal of, and premium, if any, and interest on, Debt
Securities of the series shall be payable; 

        (g)   the
price or prices at which, the period or periods within which and the terms and conditions upon which Debt Securities of the series may be redeemed, in whole or in
part, at the option of the Company or otherwise; 

        (h)   the
obligation, if any, of the Company to redeem, purchase or repay Debt Securities of the series pursuant to any sinking fund or analogous provisions or at the option
of a Holder thereof, and the price or prices at which and the period or periods within which and the terms and conditions upon which Debt Securities of the series shall be redeemed, purchased or
repaid, in whole or in part, pursuant to such obligations; 

        (i)    the
terms, if any, upon which the Debt Securities of the series may be convertible into or exchanged for Common Equity, Preferred Stock (which may be represented by
depositary shares), other Debt Securities or warrants for Common Equity, Preferred Stock or Indebtedness or other securities of any kind of the Company or any other obligor and the terms and
conditions upon which such conversion or exchange shall be effected, including the initial conversion or exchange price or rate, the conversion or exchange period and any other provision in addition
to or in lieu of those described herein; 

15

 

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

        (k)   if
the amount of principal of or any premium or interest on Debt Securities of the series may be determined with reference to an index or pursuant to a formula, the
manner in which such amounts will be determined and paid or payable; 

        (l)    if
the principal amount payable at the Stated Maturity of Debt Securities of the series will not be determinable as of any one or more dates prior to such Stated
Maturity, the amount which will be deemed to be such principal amount as of any such date for any purpose, including the principal amount thereof which will be due and payable upon any maturity other
than the Stated Maturity or which will be deemed to be Outstanding as of any such date (or, in any such case, the manner in which such deemed principal amount is to be determined); 

        (m)  any
changes or additions to Article XI, including the addition of additional covenants that may be subject to the covenant defeasance option pursuant to
Section 11.02(b); 

        (n)   if
other than the principal amount thereof, the portion of the principal amount of Debt Securities of the series which shall be payable upon declaration of acceleration
of the maturity thereof pursuant to Section 6.01 or provable in bankruptcy pursuant to Section 6.02; 

        (o)   whether
or not the Debt Securities of such series shall be issued as Original Issue Discount Debt Securities and the terms thereof, including the portion of the
principal amount thereof which shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.01; 

        (p)   any
addition to or change in the Events of Default with respect to the Debt Securities of the series and any change in the right of the Trustee or the Holders to declare
the principal of, and premium and interest on, such Debt Securities due and payable; 

        (q)   if
the Debt Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities, the terms and conditions, if any, upon which
such Global Security or Securities may be exchanged in whole or in part for other individual Debt Securities in definitive registered form; and the Depositary for such Global Security or Securities
and the form of any legend or legends to be borne by any such Global Security or Securities in addition to or in lieu of the legend referred to in Section 2.16(a); 

        (r)   any
trustees, authenticating or paying agents, transfer agents or registrars; 

        (s)   the
applicability of, and any addition to or change in the covenants and definitions currently set forth in this Indenture or in the terms currently set forth in
Article X, including conditioning any merger, conveyance, transfer or lease permitted by Article X upon the satisfaction of an Indebtedness coverage standard by the Company and Successor
Company (as defined in Article X); 

        (t)    whether
the Debt Securities will be issued pursuant to medium term note program; 

        (u)   with
regard to Debt Securities of the series that do not bear interest, the dates for certain required reports to the Trustee; and 

        (v)   any
other terms of the Debt Securities of the series (which terms shall not be prohibited by the provisions of this Indenture). 

        All
Debt Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such resolution of the Board of
Directors and as set forth in such Officers' Certificate or in any such Indenture supplemental hereto. 

16

 

        Section 2.06.    Execution of Debt Securities.    The Debt Securities shall be signed on behalf of the Company
by its Chairman of the Board, Chief Executive Officer, President, a Vice President, a Treasurer or an Assistant Treasurer and by its Secretary or an Assistant Secretary. Such signatures upon the Debt
Securities may be the manual or facsimile signatures of the present or any future such authorized officers and may be imprinted or otherwise reproduced on the Debt Securities. The seal of the Company,
if any, may be in the form of a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced on the Debt Securities. 

        Only
such Debt Securities as shall bear thereon a certificate of authentication substantially in the form hereinbefore recited, signed manually by the Trustee or by any authenticating
agent with respect to such Debt Securities, shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate executed by the Trustee, or by any
authenticating agent appointed by the Trustee with respect to such Debt Securities, upon any Debt Security executed by the Company shall be conclusive evidence that the Debt Security so authenticated
has been duly authenticated and delivered hereunder. 

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

        Section 2.07.    Authentication and Delivery of Debt Securities.    At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Debt Securities of any series executed by the Company to the Trustee for authentication, together with a Company Order for the
authentication, delivery of such Debt Securities and the Trustee, in accordance with such Company Order, shall thereupon authenticate and deliver said Debt Securities. In authenticating such Debt
Securities, and accepting the additional responsibilities under this Indenture in relation to such Debt Securities, the Trustee shall be entitled to receive, and (subject to Section 7.01) shall
be fully protected in relying upon: 

        (a)   a
copy of any resolution or resolutions of the Board of Directors, certified by the Secretary or Assistant Secretary of the Company, authorizing the terms of issuance of
any series of Debt Securities; 

        (b)   an
executed supplemental Indenture, if any; 

        (c)   an
Officers' Certificate; and 

        (d)   an
Opinion of Counsel prepared in accordance with Section 12.05 which shall also state: 

	(i)
	that
the form of such Debt Securities has been established by or pursuant to a Board Resolution of the Company or by a supplemental Indenture as permitted by
Section 2.01 in conformity with the provisions of this Indenture;

	(ii)
	that
the terms of such Debt Securities have been established by or pursuant to a Board Resolution of the Company or by a supplemental Indenture as permitted by
Section 2.05 in conformity with the provisions of this Indenture;

	(iii)
	that
such Debt Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of the Company, enforceable in accordance with their terms except as the enforceability 

17

 

thereof
may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally and rights of acceleration and the availability of equitable remedies may be
limited by equitable principles of general applicability and such counsel need express no opinion with regard to the enforceability of Section 7.06; 

	(iv)
	that
the Company has the corporate power to issue such Debt Securities and has duly taken all necessary corporate action with respect to such issuance;

	(v)
	that
authentication and delivery of such Debt Securities and the execution and delivery of any supplemental Indenture will not violate the terms of this Indenture; and

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

        Such
Opinion of Counsel need express no opinion as to whether a court in the United States would render a money judgment in a currency other than that of the United States. 

        The
Trustee shall have the right to decline to authenticate and deliver any Debt Securities under this Section 2.07 if the Trustee, being advised by counsel, determines that such
action may not lawfully be taken or if the Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of directors, trustees or vice presidents shall
determine that such action would expose the Trustee to personal liability to existing Holders. 

        The
Trustee may appoint an authenticating agent reasonably acceptable to the Company to authenticate Debt Securities of any series. Unless limited by the terms of such appointment, an
authenticating agent may authenticate Debt 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 any Registrar, paying agent or agent for service of notices and demands. 

        Unless
otherwise provided in the form of Debt Security for any series, each Debt Security shall be dated the date of its authentication. 

        Section 2.08.    Denomination of Debt Securities.    The Debt Securities of each series shall be issuable in
registered form without coupons in such denominations as shall be specified or contemplated by Section 2.05. In the absence of any such specification with respect to the Debt Securities of any
series, the Debt Securities of such series shall be issuable in denominations of $1,000 and any integral multiple thereof. 

        Section 2.09.    Registration of Transfer and Exchange.    

        (a)   The
Company shall keep or cause to be kept a register for each series of Debt Securities issued hereunder (hereinafter collectively referred to as the
"Debt Security Register"), in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Debt
Securities and the transfer of Debt Securities as in this Article II provided. At all reasonable times the Debt Security Register shall be open for inspection by the Trustee. Subject to
Section 2.16, upon due presentment for registration of transfer of any Debt Security at any office or agency to be maintained by the Company in accordance with the provisions of
Section 4.02, the Company shall execute and the Trustee shall authenticate and deliver in the name of the transferee or transferees a new Debt Security or Debt Securities of authorized
denominations for a like aggregate principal amount. 

        Unless
and until otherwise determined by the Company by resolution of the Board of Directors, the register of the Company for the purpose of registration, exchange or registration of 

18

 

transfer
of the Debt Securities shall be kept at the corporate trust office of the Trustee and, for this purpose, the Trustee shall be designated
"Registrar". 

        Debt
Securities of any series (other than a Global Security, except as set forth below) may be exchanged for a like aggregate principal amount of Debt Securities of the same series of
other authorized denominations. Subject to Section 2.16, Debt Securities to be exchanged shall be surrendered at the office or agency to be maintained by the Company as provided in
Section 4.02, and the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor the Debt Security or Debt Securities which the Holder making the exchange shall
be entitled to receive. 

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

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

        No
service charge shall be made for any exchange or registration of transfer of Debt Securities (except as provided by Section 2.11), but the Company may require payment of a sum
sufficient to cover any tax, fee, assessment or other governmental charge that may be imposed in relation thereto, other than those expressly provided in this Indenture to be made at the Company's own
expense or without expense or without charge to the Holders. 

        The
Company and Registrar shall not be required (i) to issue, register the transfer of or exchange any Debt Securities for a period of 15 days next preceding any mailing of
notice of redemption of Debt Securities of such series or (ii) to register the transfer of or exchange any Debt Securities selected, called or being called for redemption. 

        Prior
to the due presentation for registration of transfer of any Debt Security, the Company, the Trustee, any paying agent or any Registrar may deem and treat the Person in whose name a
Debt Security is registered as the absolute owner of such Debt Security for the purpose of receiving payment of principal of, and premium, if any, and interest on, such Debt Security and for all other
purposes
whatsoever, whether or not such Debt Security is overdue, and none of the Company, the Trustee, any paying agent or Registrar shall be affected by notice to the contrary. 

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

        Section 2.10.    Temporary Debt Securities.    Pending the preparation of definitive Debt Securities of any
series, the Company may execute and the Trustee shall authenticate and deliver temporary Debt Securities (printed, lithographed, photocopied, typewritten or otherwise produced) of any authorized
denomination, and substantially in the form of the definitive Debt Securities in lieu of which they are issued, in registered form and with such omissions, insertions and variations as may be
appropriate for temporary Debt Securities all as may be determined by the Company with the concurrence of the Trustee. Temporary Debt Securities may contain such reference to any provisions of this
Indenture as may be appropriate. Every temporary Debt Security shall be executed by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and
with like effect, as the definitive Debt Securities. 

19

 

        If
temporary Debt Securities of any series are issued, the Company will cause definitive Debt Securities of such series to be prepared without unreasonable delay. After the preparation
of definitive Debt Securities of such series, the temporary Debt Securities of such series shall be exchangeable for definitive Debt Securities of such series upon surrender of the temporary Debt
Securities of such series at the office or agency of the Company at a Place of Payment for such series, without charge to the Holder thereof, except as provided in Section 2.09 in connection
with a transfer, and upon surrender for cancellation of any one or more temporary Debt Securities of any series, the Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Debt Securities of the same series of authorized denominations and of like tenor. Until so exchanged, temporary Debt Securities of any series shall in
all respects be entitled to the same benefits under this Indenture as definitive Debt Securities of such series. 

        Upon
any exchange of a portion of a temporary Global Security for a definitive Global Security or for the individual Debt Securities represented thereby pursuant to Section 2.09
or this Section 2.10, the temporary Global Security shall be endorsed by the Trustee to reflect the reduction of the principal amount evidenced thereby, whereupon the principal amount of such
temporary Global Security shall be reduced for all purposes by the amount to be exchanged and endorsed. 

        Section 2.11.    Mutilated, Destroyed, Lost or Stolen Debt Securities.    

        If
(a) any mutilated Debt Security is surrendered to the Trustee at its corporate trust office or (b) the Company and the Trustee receive evidence to their satisfaction of
the destruction, loss or theft of any Debt Security, and there is delivered to the Company and the Trustee such security or indemnity as may be required by them to save each of them and any paying
agent harmless, and neither the Company nor the Trustee receives notice that such Debt Security has been acquired by a bona fide purchaser, then the
Company shall execute and, upon a Company Order, the Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Debt Security, a new Debt
Security of the same series of like tenor, form, terms and principal amount, bearing a number not contemporaneously Outstanding. Upon the issuance of any substituted Debt Security, the Company may
require the payment of a sum sufficient to cover any tax, fee, assessment 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. In case any Debt Security which has matured or is about to mature or which has been called for redemption shall become mutilated or be destroyed, lost or stolen,
the Company may, instead of issuing a substituted Debt Security, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Debt Security) if the applicant
for such payment shall furnish the Company and the Trustee with such security or indemnity as either may require to save it harmless from all risk, however remote, and, in case of destruction, loss or
theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Debt Security and of the ownership thereof. 

        Every
substituted Debt Security of any series, issued pursuant to the provisions of this Section 2.11 by virtue of the fact that any Debt Security is destroyed, lost or stolen
shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Debt Security shall be found at any time, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other Debt Securities of that series duly issued hereunder. All Debt Securities shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Debt Securities, and shall preclude any and all other rights or
remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their
surrender. 

        Section 2.12.    Cancellation of Surrendered Debt Securities.    All Debt Securities surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to the Company or any 

20

 

paying
agent or a Registrar, be delivered to the Trustee for cancellation by it, or if surrendered to the Trustee, shall be canceled by it, and no Debt Securities shall be issued in lieu thereof
except as expressly permitted by any of the provisions of this Indenture. All canceled Debt Securities held by the Trustee shall be destroyed (subject to the record retention requirements of the
Exchange Act) and certification of their destruction delivered to the Company, unless otherwise directed. On request of the Company, the Trustee shall deliver to the Company canceled Debt Securities
held by the Trustee. If the Company shall acquire any of the Debt Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented thereby unless
and until the same are delivered or surrendered to the Trustee for cancellation. The Company may not issue new Debt Securities to replace Debt Securities it has redeemed, paid or delivered to the
Trustee for cancellation. 

        Section 2.13.    Provisions of the Indenture and Debt Securities for the Sole Benefit of the Parties and the
Holders.    Nothing in this Indenture or in the Debt Securities, expressed or implied, shall give or be construed to give to any Person, other than the parties
hereto, the Holders or any Registrar or paying agent, any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein
contained; all its covenants, conditions and provisions being for the sole benefit of the parties hereto, the Holders and any Registrar and paying agents. 

        Section 2.14.    Payment of Interest; Interest Rights Preserved.    

        (a)   Interest
on any Debt Security that is payable and is punctually paid or duly provided for on any Interest payment date shall be paid to the Person in whose name such
Debt Security is registered at the close of business on the regular record date for such interest notwithstanding the cancellation of such Debt Security upon any transfer or exchange subsequent to the
regular record date. Payment of interest on Debt Securities shall be made at the corporate trust office of the Trustee (except as otherwise specified pursuant to Section 2.05), or at the option
of the Company, by check mailed to the address of the Person entitled thereto as such address shall appear in the Debt Security Register or, if provided pursuant to Section 2.05 and in
accordance with arrangements satisfactory to the Trustee, at the option of the Holder by wire transfer to an account designated by the Holder. 

        (b)   Subject
to the foregoing provisions of this Section 2.14 and Section 2.18, each Debt Security of a particular series delivered under this Indenture upon
registration of transfer of or in exchange for or in lieu of any other Debt Security of the same series shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Debt Security. 

        Section 2.15.    Wire Transfers.    Notwithstanding any other provision to the contrary in this Indenture, the
Company may make any payment of monies required to be deposited with the Trustee on account of principal of, or premium, if any, or interest on, the Debt Securities (whether pursuant to optional or
mandatory redemption payments, interest payments or otherwise) by wire transfer in immediately available funds to an account designated by the Trustee on or before the date such monies are to be paid
to the Holders of the Debt Securities in accordance with the terms hereof. 

        Section 2.16.    Securities Issuable in the Form of a Global Security.    

        (a)   If
the Company shall establish pursuant to Sections 2.01 and 2.05 that the Debt Securities of a particular series are to be issued in whole or in part in the form of one
or more Global Securities, then the Company shall execute and the Trustee or its agent shall, in accordance with Section 2.07, authenticate and deliver, such Global Security or Securities,
which shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, the Outstanding Debt Securities of such series to be represented by such Global Security or
Securities, or such portion thereof as the Company shall specify in an Officer's Certificate, shall be registered in the name of the Depositary for such Global Security or Securities or its nominee,
shall be 

21

 

delivered
by the Trustee or its agent to the Depositary or pursuant to the Depositary's instruction and shall bear a legend substantially to the following effect: 

        "THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT
BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL
SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES." 

        (b)   Notwithstanding
any other provision of this Section 2.16 or of Section 2.09 to the contrary, and subject to the provisions of paragraph (c) below,
unless the terms of a Global Security expressly permit such Global Security to be exchanged in whole or in part for definitive Debt Securities in registered form, a Global Security may be transferred,
in whole but not in part and in the manner provided in Section 2.09, only by the Depositary to a nominee of the Depositary for such Global Security, or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary, or by the Depositary or a nominee of the Depositary to a successor Depositary for such Global Security selected or approved by the Company, or to a
nominee of such successor Depositary. 

        (c)   (i)     If
at any time the Depositary for a Global Security or Securities notifies the Company that it is unwilling or unable to continue as Depositary
for such Global Security or Securities or if at any time the Depositary for the Debt Securities for such series shall no longer be eligible or in good standing under the Exchange Act or other
applicable statute, rule or regulation, the Company shall appoint a successor Depositary with respect to such Global Security or Securities. If a successor Depositary for such Global Security or
Securities is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, the Company shall execute, and the Trustee or its agent,
upon receipt of a Company Order for the authentication and delivery of such individual Debt Securities of such series in exchange for such Global Security, will authenticate and deliver, individual
Debt Securities of such series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of the Global Security in exchange for such Global Security or
Securities. 

         (ii)  The
Company may at any time and in its sole discretion determine that the Debt Securities of any series or portion thereof issued or issuable in the form of one or more
Global Securities shall no longer be represented by such Global Security or Securities. In such event the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication
and delivery of individual Debt Securities of such series in exchange in whole or in part for such Global Security, will authenticate and deliver individual Debt Securities of such series of like
tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of such series or portion thereof in exchange for such Global Security or Securities. 

        (iii)  If
specified by the Company pursuant to Sections 2.01 and 2.05 with respect to Debt Securities issued or issuable in the form of a Global Security, the Depositary for
such Global Security may surrender such Global Security in exchange in whole or in part for individual Debt Securities of such series of like tenor and terms in definitive form on such terms as are
acceptable to the Company, the Trustee and such Depositary. Thereupon, the Company shall 

22

 

execute,
and the Trustee or its agent upon receipt of a Company Order for the authentication and delivery of definitive Debt Securities of such series shall authenticate and deliver, without service
charge, to each Person specified by such Depositary a new Debt Security or Securities of the same series of like tenor and terms and of any authorized denomination as requested by such Person in
aggregate principal amount equal to and in exchange for such Person's beneficial interest in the Global Security; and to such Depositary a new Global Security of like tenor and terms and in an
authorized denomination equal to the difference, if any, between the principal amount of the surrendered Global Security and the aggregate principal amount of Debt Securities delivered to Holders
thereof. 

        (iv)  In
any exchange provided for in any of the preceding three paragraphs, the Company will execute and the Trustee or its agent will authenticate and deliver individual
Debt Securities. Upon the exchange of the entire principal amount of a Global Security for individual Debt Securities, such Global Security shall be canceled by the Trustee or its agent. Except as
provided in the preceding paragraph, Debt Securities issued in exchange for a Global Security pursuant to this Section 2.16 shall be registered in such names and in such authorized
denominations as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee or the Registrar. The Trustee or
the Registrar shall deliver such Debt Securities to the Persons in whose names such Debt Securities are so registered. 

         (v)  Payments
in respect of the principal of and interest on any Debt Securities registered in the name of the Depositary or its nominee will be payable to the Depositary or
such nominee in its capacity as the registered owner of such Global Security. The Company and the Trustee may treat the Person in whose name the Debt Securities, including the Global Security, are
registered as the owner thereof for the purpose of receiving such payments and for any and all other purposes whatsoever. None of the Company, the Trustee, any Registrar, the paying agent or any agent
of the Company or the Trustee will have any responsibility or liability for any aspect of the records relating to or payments made on account of the beneficial ownership interests of the Global
Security by the Depositary or its nominee or
any of the Depositary's direct or indirect participants, or for maintaining, supervising or reviewing any records of the Depositary, its nominee or any of its direct or indirect participants relating
to the beneficial ownership interests of the Global Security, the payments to the beneficial owners of the Global Security of amounts paid to the Depositary or its nominee, or any other matter
relating to the actions and practices of the Depositary, its nominee or any of its direct or indirect participants. None of the Company, the Trustee or any such agent will be liable for any delay by
the Depositary, its nominee, or any of its direct or indirect participants in identifying the beneficial owners of the Debt Securities, and the Company and the Trustee may conclusively rely on, and
will be protected in relying on, instructions from the Depositary or its nominee for all purposes (including with respect to the registration and delivery, and the respective principal amounts, of the
Debt Securities to be issued). 

23

   
        Section 2.17.    Medium Term Securities.    Notwithstanding any contrary provision herein, if all Debt
Securities of a series are not to be originally issued at one time, it shall not be necessary for the Company to deliver to the Trustee an Officers' Certificate, Board Resolutions, supplemental
Indenture, Opinion of Counsel or written order or any other document otherwise required pursuant to Section 2.01, 2.05, 2.07 or 12.05 at or prior to the time of authentication of each Debt
Security of such series if such documents are delivered to the Trustee or its agent at or prior to the authentication upon original issuance of the first such Debt Security of such series to be
issued; provided, that any subsequent request by the Company to the Trustee to authenticate Debt Securities of such series upon original issuance shall
constitute a representation and warranty by the Company that, as of the date of such request, the statements made in the Officers' Certificate delivered pursuant to Section 2.07 or 12.05 shall
be true and correct as if made on such date and that the Opinion of Counsel delivered at or prior to such time of authentication of an original issuance of Debt Securities shall specifically state
that it shall relate to all subsequent issuances of Debt Securities of such series that are identical to the Debt Securities issued in the first issuance of Debt Securities of such series. 

        A
Company Order delivered by the Company to the Trustee in the circumstances set forth in the preceding paragraph, may provide that Debt Securities which are the subject thereof will be
authenticated and delivered by the Trustee or its agent on original issue from time to time upon the telephonic or written order of Persons designated in such written order (any such telephonic
instructions to be promptly confirmed in writing by such Person) and that such Persons are authorized to determine, consistent with the Officers' Certificate, supplemental Indenture or resolution of
the Board of Directors relating to such written order, such terms and conditions of such Debt Securities as are specified in such Officers' Certificate, supplemental Indenture or such resolution. 

        Section 2.18.    Defaulted Interest.    Any interest on any Debt Security of a particular series which is
payable, but is not punctually paid or duly provided for, on the dates and in the manner provided in the Debt Securities of such series and in this Indenture (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holder thereof on the relevant record date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (i) or (ii) below: 

          (i)  The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Debt Securities of such series are registered at the close of business
on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each such Debt Security of such series and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money
when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon, the Trustee shall fix a special record date for the payment
of such Defaulted Interest, which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by
the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of
the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage pre-paid, to each Holder thereof at its address as it appears in the
Debt Security Register, not less than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Debt Securities of such series are registered at the close of business on such special record date. 

24

 

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

        Section 2.19.    CUSIP Numbers.    The Company in issuing the Debt Securities may use "CUSIP" numbers (in
addition to the other identification numbers printed on the Debt Securities), 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 accuracy of such numbers either as printed on the Debt Securities or as
contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Debt Securities, and any such redemption shall not be affected by any
defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the "CUSIP" numbers. 

ARTICLE III

REDEMPTION OF DEBT SECURITIES  

        Section 3.01.    Applicability of Article.    The provisions of this Article shall be applicable to the Debt
Securities of any series, which are redeemable before their Stated Maturity except as otherwise specified as contemplated by Section 2.05 for Debt Securities of such series. 

        Section 3.02.    Notice of Redemption; Selection of Debt Securities.    In case the Company shall desire to
exercise the right to redeem all or, as the case may be, any part of the Debt Securities of any series in accordance with their terms, a Board Resolution or a supplemental Indenture, the Company shall
fix a date for redemption and shall give notice of such redemption at least 30 and not more than 60 days prior to the date fixed for redemption to the Holders of Debt Securities of such series
so to be redeemed as a whole or in part, in the manner provided in Section 12.03. The notice if given in the manner herein provided shall be conclusively presumed to have been duly given,
whether or not the Holder receives such notice. In any case, failure to give such notice or any defect in the notice to the Holder of any Debt Security of a series designated for redemption as a whole
or in part shall not affect the validity of the proceedings for the redemption of any other Debt Security of such series. 

        Each
such notice of redemption shall specify: 

          (i)  the
date fixed for redemption; 

         (ii)  the
redemption price at which Debt Securities of such series are to be redeemed; 

        (iii)  the
Place or Places of Payment that payment will be made upon presentation and surrender of such Debt Securities; 

        (iv)  that
any interest accrued to the date fixed for redemption will be paid as specified in said notice; 

         (v)  that
the redemption is for a sinking fund payment (if applicable); 

        (vi)  that,
if the Company defaults in making such redemption payment, the paying agent is prohibited from making such payment pursuant to the terms of this Indenture; 

       (vii)  that
on and after said date any interest thereon or on the portions thereof to be redeemed will cease to accrue; 

      (viii)  that
in the case of Original Issue Discount Debt Securities original issue discount accrued after the date fixed for redemption will cease to accrue, the terms of the
Debt Securities of that series pursuant to which the Debt Securities of that series are being redeemed; and 

25

 

        (ix)  that
no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Debt Securities of that series. 

        If
less than all the Debt Securities of a series are to be redeemed the notice of redemption shall specify the CUSIP numbers of the Debt Securities of that series to be redeemed. In case
any Debt Security of a series is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that on and after the date
fixed for redemption, upon surrender of such Debt Security, a new Debt Security or Debt Securities of that series in principal amount equal to the unredeemed portion thereof. 

        At
least 45 days but not more than 60 days before the redemption date unless the Trustee consents to a shorter period, the Company shall give notice to the Trustee of the
redemption date, the principal amount of Debt Securities to be redeemed and the series and terms of the Debt Securities pursuant to which such redemption will occur. Such notice shall be accompanied
by an Officers' Certificate and an Opinion of Counsel from the Company to the effect that such redemption will comply with the conditions herein. If fewer than all the Debt Securities of a series are
to be redeemed, the record date relating to such redemption shall be selected by the Company and given to the Trustee, which record date shall be not less than 15 days after the date of notice
to the Trustee. 

        If
less than all the Debt Securities of like tenor and terms of a series are to be redeemed (other than pursuant to mandatory sinking fund redemptions) the Trustee shall select, on a pro
rata basis, by lot or by such other method as in its sole discretion it shall deem appropriate and fair, the Debt Securities of that series or portions thereof (in multiples of $1,000) to be redeemed.
In any case where more than one Debt Security of such series is registered in the same name, the Trustee in its discretion may treat the aggregate principal amount so registered as if it were
represented by one Debt Security of such series. The Trustee shall promptly notify the Company in writing of the Debt Securities selected for redemption and, in the case of any Debt Securities
selected for partial redemption, the principal amount thereof to be redeemed. If any Debt Security called for redemption shall not be so paid upon surrender thereof on such redemption date, the
principal, premium, if any, and interest shall bear interest until paid from the redemption date at the rate borne by the Debt Securities of that series. If less than all the Debt Securities of unlike
tenor and terms of a series are to be redeemed, the particular Debt Securities to be redeemed shall be selected by the Company. Provisions of this Indenture that apply to Debt Securities called for
redemption also apply to portions of Debt Securities called for redemption. 

        Section 3.03.    Deposit of Redemption Price.    On or prior to 10:00 a.m., New York City time, on any
redemption date for any Debt Securities, the Company shall deposit with the Trustee or with a paying agent (or, if the Company is acting as its own paying agent, segregate and hold in trust) an amount
of money sufficient to pay the redemption price of such Debt Securities or any portions thereof that are to be redeemed on that date. 

        Section 3.04.    Payment of Debt Securities Called for Redemption.    If notice of redemption has been given as
provided in Section 3.02, the Debt Securities or portions of Debt Securities of the series with respect to which such notice has been given shall become due and payable on the date and at the
Place or Places of Payment stated in such notice at the applicable redemption price, together with any interest accrued to the date fixed for redemption, and on and after said date (unless the Company
shall default in the payment of such Debt Securities at the applicable redemption price, together with any interest accrued to said date) any interest on the Debt Securities or portions of Debt
Securities of any series so called for redemption shall cease to accrue, any original issue discount in the case of Original Issue Discount Debt Securities shall cease to accrue, except to the extent
described below, shall be void. On presentation and surrender of such Debt Securities at the Place or Places of Payment in said notice specified, the said Debt Securities or the specified portions
thereof shall be paid and redeemed 

26

 

by
the Company at the applicable redemption price, together with any interest accrued thereon to the date fixed for redemption. 

        Any
Debt Security that is to be redeemed only in part shall be surrendered at the corporate trust office or such other office or agency of the Company as is specified pursuant to
Section 2.05 with, if the Company, the Registrar or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company, the Registrar and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing, and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Debt
Security without service charge, a new Debt Security or Debt Securities of the same series, of like tenor and form, of any authorized denomination as requested by such Holder in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of the Debt Security so surrendered; except that if a Global Security is so surrendered, the Company shall execute, and the
Trustee shall authenticate and deliver to the Depositary for such Global Security, without service charge, a new Global Security in a denomination equal to and in exchange for the unredeemed portion
of the principal of the Global Security so surrendered. In the case of a Debt Security providing appropriate space for such notation, at the option of the Holder thereof, the Trustee, in lieu of
delivering a new Debt Security or Debt Securities as aforesaid, may make a notation on such Debt Security of the payment of the redeemed portion thereof. 

        Section 3.05.    Mandatory and Optional Sinking Funds.    The minimum amount of any sinking fund payment
provided for by the terms of Debt Securities of any series, the Board Resolution or a supplemental Indenture is herein referred to as a "mandatory sinking fund payment", and any payment in excess of
such minimum amount provided for by the terms of Debt Securities of any series, the Board Resolution or a supplemental Indenture is herein referred to as an "optional sinking fund payment". 

        In
lieu of making all or any part of any mandatory sinking fund payment with respect to any Debt Securities of a series in cash, the Company may at its option (a) deliver to the
Trustee Debt Securities of that series theretofore purchased or otherwise acquired by the Company or (b) receive credit for the principal amount of Debt Securities of that series which have
been redeemed either at the election of the Company pursuant to the terms of such Debt Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such
Debt Securities, resolution or supplemental Indenture; provided, that such Debt Securities have not been previously so credited. Such Debt Securities
shall be received and credited for such purpose by the Trustee at the redemption price specified in such Debt Securities, resolution or supplemental Indenture for redemption through operation of the
sinking fund and the amount of such mandatory sinking fund payment shall be reduced accordingly. 

        Section 3.06.    Redemption of Debt Securities for Sinking Fund.    Not less than 45 days prior to each sinking
fund payment date for any series of Debt Securities, the Company will deliver to the Trustee an Officers' Certificate specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, any resolution or supplemental Indenture, and the portion thereof, if any, which is to be satisfied by delivering and crediting Debt Securities of that series
pursuant to this Section 3.06 (which Debt Securities, if not previously redeemed, will accompany such certificate) and whether the Company intends to exercise its right to make any permitted
optional sinking fund payment with respect to such series. Such certificate shall also state that no Event of Default has occurred and is continuing with respect to such series. Such certificate shall
be irrevocable and upon its delivery the Company shall be obligated to make the cash payment or payments therein referred to, if any, on or before the next succeeding sinking fund payment date.
Failure of the Company to deliver such certificate (or to deliver the Debt Securities specified in this paragraph) shall not constitute a Default, but such failure shall require that the sinking fund
payment due on the next succeeding sinking fund payment date for that series shall be paid entirely in cash and shall be 

27

 

sufficient
to redeem the principal amount of such Debt Securities subject to a mandatory sinking fund payment without the option to deliver or credit Debt Securities as provided in this
Section 3.06 and without the right to make any optional sinking fund payment, if any, with respect to such series. 

        Any
sinking fund payment or payments (mandatory or optional) made in cash plus any unused balance of any preceding sinking fund payments made in cash which shall equal or exceed $100,000
(or a lesser sum if the Company shall so request) with respect to the Debt Securities of any particular series shall be applied by the Trustee on the sinking fund payment date on which such payment is
made (or, if such payment is made before a sinking fund payment date, on the sinking fund payment date following the date of such payment) to the redemption of such Debt Securities at the Redemption
Price specified in such Debt Securities, resolution or supplemental Indenture for operation of the sinking fund together with any accrued interest to the date fixed for redemption. Any sinking fund
monies not so applied or allocated by the Trustee to the redemption of Debt Securities shall be added to the next cash sinking fund payment received by the Trustee for such series and, together with
such payment, shall be applied in accordance with the provisions of this Section 3.06. Any and all sinking fund monies with respect to the Debt Securities of any particular series held by the
Trustee on the last sinking fund payment date with respect to Debt Securities of such series and not held for the payment or
redemption of particular Debt Securities shall be applied by the Trustee, together with other monies, if necessary, to be deposited sufficient for the purpose, to the payment of the principal of the
Debt Securities of that series at its Stated Maturity. 

        The
Trustee shall select the Debt Securities to be redeemed upon such sinking fund payment date in the manner specified in the last paragraph of Section 3.02 and the Company shall
cause notice of the redemption thereof to be given in the manner provided in Section 3.02 except that the notice of redemption shall also state that the Debt Securities are being redeemed by
operation of the sinking fund. Such notice having been duly given, the redemption of such Debt Securities shall be made upon the terms and in the manner stated in Section 3.04. 

        At
least one business day before each sinking fund payment date, the Company shall pay to the Trustee (or, if the Company is acting as its own paying agent, the Company shall segregate
and hold in trust) in cash a sum equal to any interest accrued to the date fixed for redemption of Debt Securities or portions thereof to be redeemed on such sinking fund payment date pursuant to this
Section 3.06. 

        The
Trustee shall not redeem any Debt Securities of a series with sinking fund monies or mail any notice of redemption of such Debt Securities by operation of the sinking fund for such
series during the continuance of a Default in payment of interest on such Debt Securities or of any Event of Default (other than an Event of Default occurring as a consequence of this paragraph) with
respect to such Debt Securities, except that if the notice of redemption of any such Debt Securities shall theretofore have been mailed in accordance with the provisions hereof, the Trustee shall
redeem such Debt Securities if cash sufficient for that purpose shall be deposited with the Trustee for that purpose in accordance with the terms of this Article III. Except as aforesaid, any
monies in the sinking fund for such series at the time when any such Default or Event of Default shall occur and any monies thereafter paid into such sinking fund shall, during the continuance of such
Default or Event of Default, be held as security for the payment of such Debt Securities; provided, however, that in case such Event of Default or
Default shall have been cured or waived as provided herein, such monies shall thereafter be applied on the next sinking fund payment date for such Debt Securities on which such monies may be applied
pursuant to the provisions of this Section 3.06. 

28

 

ARTICLE IV

PARTICULAR COVENANTS OF THE COMPANY  

        Section 4.01.    Payment of Principal of, and Premium, if any, and Interest on, Debt Securities.    

        (a)   The
Company, for the benefit of each series of Debt Securities, will duly and punctually pay or cause to be paid the principal of, and premium, if any, and interest on,
each of the Debt Securities at the place, at the respective times and in the manner provided herein, in the Debt Securities. Each installment of interest on the Debt Securities may at the Company's
option be paid by mailing checks for such interest payable to the Person entitled thereto pursuant to Section 2.09(a) to the address of such Person as it appears on the Debt Security Register. 

        Principal,
premium and interest of Debt Securities of any series shall be considered paid on the date due if on such date the Trustee or any paying agent holds in accordance with this
Indenture money sufficient to pay all principal, premium and interest then due. 

        The
Company shall pay interest on overdue principal at the rate specified therefor in the Debt Securities and it shall pay interest on overdue installments of interest at the same rate
to the extent lawful. 

        (b)   Notwithstanding
the provisions of Section 4.01(a) or any other provision herein to the contrary, the Company shall have the right, as provided in an Officer's
Certificate or supplemental indenture issued pursuant to Article IX, in its sole and absolute discretion at any time and from time to time while the Debt Securities of any series are
outstanding, so long as no Event of Default with respect to such series of Debt Securities has occurred and is continuing, to defer payments of Interest by extending the Interest payment period for
such series of Debt Securities for the maximum consecutive period, if any, specified for such series of Debt Securities, provided that such extension
period must end on an Interest payment date and shall not extend beyond the Stated Maturity or Redemption Date of any Debt Security of such series, and provided
further that at the end of each extension period the Company shall pay all Interest then accrued and unpaid (together with Interest thereon to the extent permitted by
applicable law at the rate accruing on such Debt Securities). Prior to the termination of an extension period, the Company may shorten or may further extend the Interest payment period for such series
of Debt Securities, provided that such extension period together with all such previous and further extensions may not exceed the maximum consecutive
period specified for such series of Debt Securities, end on a date other than an Interest payment date or extend beyond the Stated Maturity or Redemption Date of any Debt Security of such series. The
Company shall give the Trustee notice of the Company's election to begin an extension period for any series of Debt Securities and any shortening or extension thereof at least five Business Days prior
to: (i) the date notice of payment of Interest on such Debt Securities is required to be given to any national securities exchange on which the Debt Securities are then listed or other
applicable self-regulatory organization, or (ii) the date of the notice of the record or payment date of the related distribution on the Debt Securities, but in any event not less
than five Business Days prior to the record date fixed by the Company for the payment of such Interest. The Company shall give or cause the Trustee to give notice (a form of which shall be provided by
the Company to the Trustee) of the Company's election to begin an extension period to the Holders by first class mail, postage prepaid. 

        Section 4.02.    Maintenance of Offices or Agencies for Registration of Transfer, Exchange and Payment of Debt
Securities.    The Company will maintain in each Place of Payment for any series of Debt Securities, an office or agency where Debt Securities of such series may be
presented or surrendered for payment, where Debt Securities of such series may be surrendered for transfer or exchange and where notices and demands to or upon the Company in respect of the Debt
Securities of such series and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at
any time the 

29

 

Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or
served at the corporate trust office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all presentations, surrenders, notices and demands. 

        The
Company may also from time to time designate different or additional offices or agencies to be maintained for such purposes (in or outside of such Place of Payment), and may from
time to time rescind any such designation; provided, however, that no such designation or rescission shall in any manner relieve the Company of its
obligations described in the preceding paragraph. The Company will give prompt written notice to the Trustee of any such additional designation or rescission of designation and any change in the
location of any such different or additional office or agency. 

        Section 4.03.    Appointment to Fill a Vacancy in the Office of Trustee.    The Company, whenever necessary to
avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.08, a Trustee, so that there shall at all times be a Trustee hereunder with respect to each
series of Debt Securities. 

        Section 4.04.    Duties of Paying Agents, Etc.    

        (a)   The
Company shall cause each paying agent, if any, other than the Trustee, to execute and deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section 4.04, 

	(i)
	that
it will hold all sums held by it as such agent for the payment of the principal of, and premium, if any, or interest on, the Debt Securities of any series (whether
such sums have been paid to it by the Company or by any other obligor on the Debt Securities or Coupons of such series) in trust for the benefit of the Holders of the Debt Securities of such series;

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

	(iii)
	that
it will at any time during the continuance of an Event of Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held by it as
such agent. 

        (b)   If
the Company shall act as its own paying agent, with respect to any series of Debt Securities, it will, on or before each due date of the principal of, and premium, if
any, or interest on, the Debt Securities, of any series, set aside, segregate and hold in trust for the benefit of the Holders of the Debt Securities of such series a sum sufficient to pay such
principal, premium, if any, or interest so becoming due. The Company will promptly notify the Trustee of any failure by the Company to take such action or the failure by any other obligor on such Debt
Securities to make any payment of the principal of, and premium, if any, or interest on, such Debt Securities when the same shall be due and payable. 

        (c)   Anything
in this Section 4.04 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction and discharge of this
Indenture, or for any other reason, pay or by Company Order direct any paying agent to pay, to the Trustee all sums held in trust by the Company, or any paying agent, as required by this
Section 4.04, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such paying agent, and upon such payment by any paying agent to
the Trustee, such paying agent shall be released from all further liability with respect to such money. 

30

 

        (d)   Whenever
the Company shall have one or more paying agents with respect to any series of Debt Securities, it will, prior to each due date of the principal of, and
premium, if any, or interest on, any Debt Securities of such series, deposit with any such paying agent a sum sufficient to pay the principal, premium or interest so becoming due, such sum to be held
in trust for the benefit of the Persons entitled thereto, and (unless any such paying agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act. 

        (e)   Anything
in this Section 4.04 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 4.04 is subject to the
provisions of Section 11.05. 

        Section 4.05.    SEC Reports; Financial Statements.    

        (a)   The
Company shall, so long as any of the Debt Securities are outstanding, file with the Trustee, within 15 days after it files the same with the SEC, copies of
the annual reports and 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) that the Company is required
to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. If the Company is not subject to the requirements of such Section 13 or 15(d), the Company shall file with the
Trustee, within 15 days after it would have been required to file the same with the SEC, financial statements, including any notes thereto (and with respect to annual reports, an auditors'
report by a firm of established national reputation), and a "Management's Discussion and Analysis of Financial Condition and Results of Operations," both comparable to that which the Company would
have been required to include in such annual reports, information, documents or other reports if the Company had been subject to the requirements of such Section 13 or 15(d). The Company shall
also comply with the provisions of TIA Section 314(a). 

        (b)   The
Company shall provide the Trustee with a sufficient number of copies of all reports and other documents and information that the Trustee may be required to deliver
to Holders under this Section. 

        Section 4.06.    Compliance Certificate.    

        (a)   The
Company shall, so long as any of the Debt Securities are Outstanding, deliver to the Trustee, within 120 days after the end of each fiscal year, an Officers'
Certificate stating that a review of the activities of the Company during the preceding fiscal year has been made under the supervision of the signing Officers of the Company 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 his or her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any
of the terms, provisions and conditions hereof, without regard to any grace period or requirement of notice required by this Indenture (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 and what action the Company, is taking or proposes to take with respect thereto) and that to the best of his
or her knowledge no event has occurred and remains in existence by reason of which payments on account of the principal of, or premium, if any, or interest, if any, on the Debt Securities are
prohibited or, if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect thereto. 

        (b)   So
long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants, the year-end financial statements
delivered pursuant to Section 4.05 shall be accompanied by a written statement of the Company's independent public accountants that in making the examination necessary for certification of such
financial statements nothing has come to their attention that would lead them to believe that the Company has violated any 

31

 

provisions
of Articles 4 or 5 of this Indenture (to the extent such provisions relate to accounting matters) or, if any such violation has occurred, specifying the nature and period of existence
thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person for any failure to obtain knowledge of any such violation. 

        (c)   The
Company shall, so long as any of the Debt Securities are outstanding, deliver to the Trustee, forthwith upon any Officer of the Company's becoming aware of any
Default or Event of Default under this Indenture, 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 4.07.    Further Instruments and Acts.    The Company will, upon request of the Trustee, execute and
deliver such further instruments and do such further acts as may reasonably be necessary or proper to carry out more effectually the purposes of this Indenture. 

        Section 4.08.    Corporate Existence.    The Company shall 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 and other existence of each of its Subsidiaries and all rights (charter and statutory) and franchises
of the Company and its Subsidiaries, provided that the Company shall not be required to preserve the corporate existence of any Subsidiary of the Company or any such right or franchise if the Board of
Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and the Restricted Subsidiaries and that the loss thereof would not have a
material adverse effect on the business, prospects, assets or financial condition of the Company and its Subsidiaries taken as a whole and would not have any material adverse effect on the payment and
performance of the obligations of the Company under the Debt Securities and this Indenture. 

        Section 4.09.    Maintenance of Properties.    The Company shall cause all properties owned by the Company or
any of its Subsidiaries or used or held for use in the conduct of its business or the business of any such Subsidiary to be maintained and kept in good condition, repair and working order (reasonable
wear and tear excepted) and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment
of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided that nothing in this Section shall prevent
the Company from discontinuing the operation or maintenance of any of such properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business or the
business of any such Subsidiary and not disadvantageous in any material respect to the Holders. 

        Section 4.10.    Payment of Taxes and Other Claims.    The Company will pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (i) all taxes, assessments and governmental charges levied or imposed upon the Company or any of its Subsidiaries or upon the income,
profits or property of the Company or any of its Subsidiaries, and (ii) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a Lien upon the property of the
Company or any of its Subsidiaries; provided that the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings. 

        Section 4.11.    Limitation on Sale/Leaseback Transactions.    None of the Company or any other Restricted
Subsidiary, so long as any of the Debt Securities are Outstanding, will enter into any Sale/Leaseback Transaction with any Person (other than the Company or a Restricted Subsidiary) unless: 

        (a)   the
Company or such Restricted Subsidiary would be entitled to incur Indebtedness, in a principal amount equal to the Attributable Indebtedness with respect to such
Sale/Leaseback Transaction, secured by a Lien on the property subject to such Sale/Leaseback Transaction pursuant to Section 4.12 without equally and ratably securing the Debt Securities
pursuant to such Section; or 

32

 

        (b)   within
a period commencing six months prior to the consummation of such Sale/Leaseback Transaction and ending six months after the consummation thereof, the Company or
such Restricted Subsidiary shall have expended for property used or to be used in the ordinary course of business of the Company and the Restricted Subsidiaries (including amounts expended for the
exploration, drilling or development thereof, and for additions, alterations, repairs and improvements thereto) an amount equal to all or a portion of the Net Proceeds of such Sale/Leaseback
Transaction and the Company shall have elected to designate such amount as a credit against such Sale/Leaseback Transaction (with any such amount not being so designated to be applied as set forth in
clause (c) below); or 

        (c)   the
Company, during the 12-month period after the effective date of such Sale/Leaseback Transaction, shall have applied to the voluntary defeasance or
retirement of Debt Securities or any Pari Passu Indebtedness an amount equal to the greater of the Net Proceeds of the sale or transfer of the property leased in such Sale/Leaseback Transaction and
the fair value, as determined by the Board of Directors of the Company of such property at the time of entering into such Sale/Leaseback Transaction (in either case adjusted to reflect the remaining
term of the lease and any amount expended by the Company as set forth in clause (b) above), less an amount equal to the principal amount of Debt Securities and Pari Passu Indebtedness
voluntarily defeased or retired by the Company within such 12-month period and not designated as a credit against any other Sale/Leaseback Transaction entered into by the Company or any
Restricted Subsidiary during such period. 

        Section 4.12.    Limitation on Liens.    No provision of this Indenture or the Debt Securities shall in any way
restrict or prevent the Company or any Restricted Subsidiary from issuing, assuming, guaranteeing or otherwise incurring any indebtedness; provided,
however, that neither the Company nor any other Restricted Subsidiary shall issue, assume or guarantee any Indebtedness for borrowed money secured by any Lien on any property
or asset now owned or hereafter acquired by the Company or such Restricted Subsidiary without making effective provision whereby any and all Debt Securities then or thereafter outstanding will be
secured by a Lien equally and ratably with any and all other obligations thereby secured for so long as any such obligations shall be so secured. Notwithstanding the foregoing, the Company or any
Restricted Subsidiary may, without so securing the Debt Securities, issue, assume or guarantee Indebtedness secured by the following Liens: 

        (a)   Liens
existing on the date of this Indenture or provided for under the terms of agreements existing on such date (including, without limitation, the Lien provided for
pursuant to Section 7.06); 

        (b)   Liens
on property securing (i) all or any portion of the cost of exploration, production, gathering, processing, marketing, drilling or development of such
property, (ii) all or any portion of the cost of acquiring, constructing, altering, improving or repairing any property or assets, real or personal, or improvements used or to be used in
connection with such property or (iii) Indebtedness incurred by the Company or any Restricted Subsidiary to provide funds for the activities set forth in clauses (i) and
(ii) above; 

        (c)   Liens
securing Indebtedness owed by a Restricted Subsidiary to the Company or to any other Restricted Subsidiary; 

        (d)   Liens
on property existing at the time of acquisition of such property by the Company or a Subsidiary or Liens on the property of any Person existing at the time such
Person becomes a Restricted Subsidiary of the Company or is merged with the Company in compliance with Article X hereof and in either case not incurred as a result of (or in connection with or
in anticipation of) the acquisition of such property or such Person becoming a Restricted Subsidiary of the Company or being merged with the Company,  provided that such Liens do not extend to or

33

 

cover
any property or assets of the Company or any of its Restricted Subsidiaries other than the property so acquired; 

        (e)   Liens
on any property securing (i) Indebtedness incurred in connection with the construction, installation or financing of pollution control or abatement
facilities or other forms of industrial revenue bond financing, (ii) Indebtedness issued or guaranteed by the United States or any State thereof or any department, agency or instrumentality of
either or (iii) Indebtedness issued or guaranteed by (Y) a foreign government, any state or any department, agency or instrumentality of either or (Z) an
international finance agency or any division or department thereof, including the World Bank, the International Finance Corp. and the Multilateral Investment Guarantee Agency; 

        (f)    any
Lien extending, renewing or replacing (or successive extensions, renewals or replacements of) any Lien of any type permitted under clauses (a) through
(e) above, provided that such Lien extends to or covers only the property that is subject to the Lien being extended, renewed or replaced; 

        (g)   any
Ordinary Course Lien arising, but only so long as continuing, in the ordinary course of business of the Company and the Restricted Subsidiaries; 

        (h)   any
Lien resulting from the deposit of monies or evidences of Indebtedness in trust for the purpose of defeasing Indebtedness of the Company or any Subsidiary; or 

        (i)    Liens
(exclusive of any Lien of any type otherwise permitted under clauses (a) through (h) above) securing Indebtedness of the Company or any Restricted
Subsidiary in an aggregate principal amount which, together with the aggregate amount of Attributable Indebtedness deemed to be outstanding in respect of all Sale/Leaseback Transactions entered into
pursuant to clause (a) of Section 4.11 (exclusive of any such Sale/Leaseback Transactions otherwise permitted under clauses (a) through (h) above), does not at the time
such Indebtedness is incurred exceed 10% of the Consolidated Net Tangible Assets of the Company and its Restricted Subsidiaries (as derived from the most recent audited consolidated balance sheet of
the Company and its Subsidiaries). 

        Notwithstanding
the foregoing, nothing in this Section 4.12 shall be deemed to prohibit or otherwise limit the following types of transactions: 

	(1)
	the
sale, granting of Liens with respect to, or other transfer of, crude oil, natural gas or other petroleum hydrocarbons in place for a period of time until, or in an amount such
that, the transferee will realize therefrom a specified amount (however determined) of money or of such crude oil, natural gas or other petroleum hydrocarbons;

	(2)
	the
sale or other transfer of any other interest in property of the character commonly referred to as a production payment, overriding royalty, forward sale or similar interest;

	(3)
	the
entering into of Hedging Obligations although Liens securing any Indebtedness for borrowed money that is the subject of any Hedging Obligations shall not be permitted hereby
unless permitted under clauses (a) through (i) above; or

	(4)
	the
granting of Liens required by any contract or statute in order to permit the Company or any Restricted Subsidiary to perform any contract or subcontract made by it with or at the
request of the United States or any State thereof or any department, agency or instrumentality of either, or to secure partial, progress, advance or other payments to the Company or any Restricted
Subsidiary by such governmental unit pursuant to the provisions of any contract or statute. 

34

   ARTICLE V

HOLDERS' LISTS AND REPORTS

BY THE TRUSTEE  

        Section 5.01.    Company to Furnish Trustee Information as to Names and Addresses of Holders; Preservation of
Information.    The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee with respect to the Debt Securities of each series: 

        (a)   not
more than 15 days after each record date with respect to the payment of interest, if any, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders as of such record date, and 

        (b)   at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and
contents as of a date not more than 15 days prior to the time such list is furnished; provided, however, that so long as the Trustee shall be the
Registrar, such lists shall not be required to be furnished. 

        The
Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the Holders (i) contained in the most recent list
furnished to it as provided in this Section 5.01 or (ii) received by it in the capacity of paying agent or Registrar (if so acting) hereunder. 

        The
Trustee may destroy any list furnished to it as provided in this Section 5.01 upon receipt of a new list so furnished. 

        Section 5.02.    Communications to Holders.    Holders may communicate pursuant to Section 312(b) of the
TIA with other Holders with respect to their rights under this Indenture or the Debt Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection of
Section 312(c) of the TIA. 

        Section 5.03.    Reports by Trustee.    Within 60 days after each January 31, beginning with the
first January 31 following the first issuance of Debt Securities pursuant to Section 2.05, and in any event on or before April 1 in each year, the Trustee shall mail to Holders a
brief report dated as of such January 31 that complies with TIA Section 313(a); provided, however, that if no event described in TIA
Section 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted. The Trustee also shall comply with TIA Section 313(b). 

        Reports
pursuant to this Section 5.03 shall be transmitted by mail: 

        (a)   to
all Holders, as the names and addresses of such Holders appear in the Debt Security Register; 

        (b)   except
in the cases of reports under Section 313(b)(2) of the TIA, to each Holder of a Debt Security of any series whose name and address appear in the
information preserved at the time by the Trustee in accordance with Section 5.01. 

        A
copy of each report at the time of its mailing to Holders shall be filed with the Securities and Exchange Commission and each stock exchange (if any) on which the Debt Securities of
any series are listed. The Company agrees to notify promptly the Trustee whenever the Debt Securities of any series become listed on any stock exchange and of any delisting thereof. 

        Section 5.04.    Record Dates for Action by Holders.    If the Company shall solicit from the holders of Debt
Securities of any series any action (including the making of any demand or request, the giving of any direction, notice, consent or waiver or the taking of any other action), the Company may, at its
option, by resolution of the Board of Directors, fix in advance a record date for the determination of Holders of Debt Securities entitled to take such action, but the Company shall have no obligation
to do so. Any such record date shall be fixed at the Company's discretion. If such a record date is fixed, such 

35

 

action
may be sought or given before or after the record date, but only the Holders of Debt Securities of record at the close of business on such record date shall be deemed to be Holders of Debt
Securities for the purpose of determining whether Holders of the requisite proportion of Debt Securities of such series Outstanding have authorized or agreed or consented to such action, and for that
purpose the Debt Securities of such series Outstanding shall be computed as of such record date. 

ARTICLE VI

REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT  

        Section 6.01.    Events of Default.    If any one or more of the following shall have occurred and be
continuing with respect to Debt Securities of any series (each of the following, an "Event of Default"): 

        (a)   default
in the payment of any installment of interest upon any Debt Securities of that series, as and when the same shall become due and payable, and continuance of such
default for a period of 30 days; or 

        (b)   default
in the payment of the principal of or premium, if any, on any Debt Securities of that series as and when the same shall become due and payable, whether at
maturity, upon redemption, by declaration, upon required repurchase or otherwise; or 

        (c)   if
applicable, failure by the Company to deliver the required securities or other rights upon an appropriate conversion or exchange election by Holders of the Debt
Securities; or 

        (d)   default
in the payment of any sinking fund payment with respect to any Debt Securities of that series as and when the same shall become due and payable; or 

        (e)   failure
on the part of the Company duly to observe or perform any other of the covenants or agreements on the part of the Company in the Debt Securities of that series,
in any Board Resolution authorizing the issuance of that series of Debt Securities, in this Indenture with respect to such series or in any supplemental Indenture with respect to such series (other
than a covenant a default in the performance of which is elsewhere in this Section specifically dealt with), continuing for a period of 60 days after the date on which written notice specifying
such failure and requiring the Company to remedy the same shall have been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in aggregate principal amount of the Debt Securities of that series at the time Outstanding; or 

        (f)    any
default shall occur which results in the acceleration of the maturity of any Indebtedness of the Company or any Restricted Subsidiary (other than the series of Debt
Securities) having an outstanding principal amount of $5 million or more individually or, taken together with all other such Indebtedness that has been so accelerated, in the aggregate; or any
default shall occur in the payment of any principal or interest in respect of any Indebtedness of the Company or any Restricted Subsidiary (other than the series of Debt Securities) having an
outstanding principal amount of $5 million or more individually or, taken together with all other such Indebtedness with respect to which any such payment
has not been made in the aggregate and such default shall be continuing for a period of 30 days without the Company or such Restricted Subsidiary, as the case may be, effecting a cure of such
default; 

        (g)   failure
by the Company or any Restricted Subsidiary to pay final, non-appealable judgments aggregating in excess of $20 million, which judgments are
not paid, discharged or stayed for a period of 60 days after the judgment becomes final and non-appealable; 

        (h)   the
Company or any Restricted Subsidiary pursuant to or within the meaning of any Bankruptcy Law, 

	(i)
	commences
a voluntary case, 

36

 

	(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; or

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

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

	(i)
	is
for relief against the Company or any Restricted Subsidiary as debtor in an involuntary case and such decree or order shall remain unstayed and in effect for a period
of 60 consecutive days,

	(ii)
	appoints
a Custodian of the Company or any Restricted Subsidiary or a Custodian for all or substantially all of the property of the Company or any Restricted
Subsidiary, or

	(iii)
	orders
the liquidation of the Company or any Restricted Subsidiary, and the order or decree shall remain unstayed and in effect for a period of 60 consecutive days; or 

        (j)    any
other Event of Default provided with respect to Debt Securities of that series; 

then
and in each and every case that an Event of Default described in clause (a), (b), (c), (d), (e), (f), (g), or (j) with respect to Debt Securities of that series at the time
Outstanding occurs and is continuing, unless the principal of and interest on all the Debt Securities of that series shall have already become due and payable, either the Trustee or the Holders of not
less than 25% in aggregate principal amount of the Debt Securities of that series then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by Holders), may declare
the principal of (or, if the Debt Securities of that series are Original Issue Discount Debt Securities, such portion of the principal amount as may be specified in the terms of that series) and
interest on all the Debt Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this
Indenture or in the Debt Securities of that series contained to the contrary notwithstanding. If an Event of Default described in clause (h) or (i) occurs, then and in each and every
such case, unless the principal of and interest on all the Debt Securities shall have become due and payable, the principal of (or, if any Debt Securities are Original Issue Discount Debt Securities,
such portion of the principal amount as may be specified in the terms thereto) and interest on all the Debt Securities then Outstanding hereunder shall ipso
facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders, anything in this Indenture or in the Debt
Securities contained to the contrary notwithstanding. 

        The
Holders of a majority in aggregate principal amount of the Debt Securities of a particular series by notice to the Trustee may rescind an acceleration and its consequences if the
rescission would not conflict with any judgment or decree already rendered and if all existing Events of Default have been cured or waived except nonpayment of principal or interest that has become
due solely because of acceleration. Upon any such rescission, the parties hereto shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of
the parties hereto shall continue as though no such proceeding had been taken. 

        Section 6.02.    Collection of Indebtedness by Trustee, Etc.    If an Event of Default occurs and is
continuing, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums
so due and unpaid or enforce the performance of any provision of the Debt Securities of the affected series or this Indenture, and may prosecute any such action or proceedings to judgment or final
decree, and may enforce any such judgment or final decree against the Company or any other obligor upon the 

37

 

Debt
Securities of such series (and collect in the manner provided by law out of the property of the Company or any other obligor upon the Debt Securities of such series wherever situated the monies
adjudged or decreed to be payable). 

        In
case there shall be pending proceedings for the bankruptcy or for the reorganization of the Company or any other obligor upon the Debt Securities of any series under Title 11 of the
United States Code or any other Federal or State bankruptcy, insolvency or similar law, or in case a receiver, trustee or other similar official shall have been appointed for its property, or in case
of any other similar judicial proceedings relative to the Company or any other obligor upon the Debt Securities of any series, its creditors or its property, the Trustee, irrespective of whether the
principal of Debt Securities of any series shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant
to the provisions of this Section 6.02, shall be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal,
premium, if any, and interest (or, if the Debt Securities of such series are Original Issue Discount Debt Securities, such portion of the principal amount as may be specified in the terms of such
series) owing and unpaid in respect of the Debt Securities of such series, and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for reasonable compensation to the Trustee, its agents, attorneys and counsel, and for reimbursement of all expenses and liabilities Incurred, and all advances made, by the
Trustee except as a result of its negligence or bad faith) and of the Holders thereof allowed in any such judicial proceedings relative to the Company, or any other obligor upon the Debt Securities of
such series, its creditors or its property, and to collect and receive any monies or other property payable or deliverable on any such claims, and to distribute all amounts received with respect to
the claims of such Holders and of the Trustee on their behalf, and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of such Holders to make payments to
the Trustee, and, in the event that the Trustee shall consent to the making of payments directly to such Holders, to pay to the Trustee such amount as shall be sufficient to cover reasonable
compensation to the Trustee, its agents, attorneys and counsel, and all other reasonable expenses and liabilities Incurred, and all advances made, by the Trustee except as a result of its negligence
or bad faith. 

        All
rights of action and of asserting claims under this Indenture, or under any of the Debt Securities, of any series, may be enforced by the Trustee without the possession of any such
Debt Securities, or the production thereof in any trial or other proceedings relative thereto, and any such action or proceedings instituted by the Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment (except for any amounts payable to the Trustee pursuant to Section 7.06) shall be for the ratable benefit of the Holders of all the Debt
Securities in respect of which such action was taken. 

        In
case of an Event of Default hereunder the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any
covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law. 

        Section 6.03.    Application of Monies Collected by Trustee.    Any monies or other property collected by the
Trustee pursuant to Section 6.02 with respect to Debt Securities of any series shall be applied, in the order following, at the date or dates fixed by the Trustee for the distribution of such
monies or other property, upon presentation of the several Debt Securities of such series in respect of 

38

 

which
monies or other property have been collected, and the notation thereon of the payment, if only partially paid, and upon surrender thereof if fully paid: 

        FIRST:
To the payment of all money due the Trustee pursuant to Section 7.06; 

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

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

        FOURTH:
The remainder, if any, shall be paid to the Company, its successors or assigns, or to whomsoever may be lawfully entitled to receive the same, or as a court of competent
jurisdiction may direct. 

        The
Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 6.03. At least 15 days before such record date, the Company shall
mail to each Holder and the Trustee a notice that states the record date, the payment date and amount to be paid. 

        Section 6.04.    Limitation on Suits by Holders.    No Holder of any Debt Security of any series shall have any
right by virtue or by availing of any provision of this Indenture to institute any action or proceeding at law or in equity or in bankruptcy or otherwise, upon or under or with respect to this
Indenture, the Debt Securities of any series or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless such Holder previously shall have given to the Trustee written
notice of an Event of Default with respect to Debt Securities of that same series and of the continuance thereof and unless the Holders of not less than 25% in aggregate principal amount of the
Outstanding Debt Securities of that series shall have made written request upon the Trustee to institute such action or proceedings in respect of such Event of Default in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be Incurred therein or thereby, and the Trustee, for
60 days after its receipt of such notice, request and offer of indemnity shall have failed to institute any such action or proceedings and no direction inconsistent with such written request
shall have been given to the Trustee pursuant to Section 6.06; it being understood and intended, and being expressly covenanted by the Holder of every Debt Security with every other Holder and
the Trustee, that no one or more Holders shall have any right in any manner whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any
Holders, or to obtain or seek to obtain priority over or preference to any other such Holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all such Holders. For the protection and 

39

 

enforcement
of the provisions of this Section 6.04, each and every Holder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 

        Notwithstanding
any other provision in this Indenture, however, the right of any Holder of any Debt Security to receive payment of the principal of, and premium, if any, and (subject to
Section 2.14) interest on, such Debt Security, on or after the respective due dates expressed in such Debt Security, and to institute suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of such Holder. 

        Section 6.05.    Remedies Cumulative; Delay or Omission in Exercise of Rights Not a Waiver of Default.    All
powers and remedies given by this Article VI to the Trustee or to the Holders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers
and remedies available to the Trustee or the Holders, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no
delay
or omission of the Trustee or of any Holder to exercise any right or power accruing upon any Default occurring and continuing as aforesaid, shall impair any such right or power, or shall be construed
to be a waiver of any such Default or an acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article VI or by law to the Trustee or
to the Holders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders. 

        Section 6.06.    Rights of Holders of Majority in Principal Amount of Debt Securities to Direct Trustee and to Waive
Default.    The Holders of a majority in aggregate principal amount of the Debt Securities of any series at the time Outstanding shall have the right to direct the
time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Debt Securities of such
series; provided, however, that such direction shall not be otherwise than in accordance with law and the provisions of this Indenture, and that subject
to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee being advised by counsel shall determine that the action so directed
may not lawfully be taken, or if the Trustee shall by a responsible officer or officers determine that the action so directed would involve it in personal liability or would be unjustly prejudicial to
Holders of Debt Securities of such series not taking part in such direction; and provided, further, however, that nothing in this Indenture contained
shall impair the right of the Trustee to take any action deemed proper by the Trustee and which is not inconsistent with such direction by such Holders. Prior to the acceleration of the maturity of
the Debt Securities of any series, as provided in Section 6.01, the Holders of a majority in aggregate principal amount of the Debt Securities of that series at the time Outstanding may on
behalf of the Holders of all the Debt Securities of that series waive any past Default or Event of Default and its consequences for that series specified in the terms thereof as contemplated by
Section 2.05, except a Default in the payment of the principal of, and premium, if any, or interest on, any of the Debt Securities and a Default in respect of a provision that under
Section 9.02 cannot be amended without the consent of each Holder affected thereby. In case of any such waiver, such Default shall cease to exist, any Event of Default arising therefrom shall
be deemed to have been cured for every purpose of this Indenture, and the Company, the Trustee and the Holders of the Debt Securities of that series shall be restored to their former positions and
rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon. 

        Section 6.07.    Trustee to Give Notice of Defaults Known to It, But May Withhold Such Notice in Certain
Circumstances.    The Trustee shall, within 90 days after the occurrence of a Default known to it with respect to a series of Debt Securities, give to the
Holders thereof, in the manner provided in Section 12.03, notice of all Defaults with respect to such series known to the Trustee, unless such Defaults shall have been cured or waived before
the giving of such notice; provided, that, except in the case of Default in the payment of the principal of, or premium, if any, or interest on, any of
the Debt 

40

 

Securities
of such series or in the making of any sinking fund payment with respect to the Debt Securities of such series, the Trustee shall be protected in withholding such notice if and so long as
the board of directors, the executive committee or a committee of directors or responsible officers of the Trustee in good faith determine that the withholding of such notice is in the interests of
the Holders thereof. 

        Section 6.08.    Requirement of an Undertaking to Pay Costs in Certain Suits Under the Indenture or Against the
Trustee.    All parties to this Indenture agree, and each Holder of any Debt Security by his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by
any party litigant in such suit of an undertaking to pay the costs of such suit in the manner and to the extent provided in the TIA, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees and expenses, 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 6.08 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than ten
percent (10%) in principal amount of the Outstanding Debt Securities of that series or to any suit instituted by any Holder for the enforcement of the payment of the principal of, or premium, if any,
or interest on, any Debt Security on or after the due date for such payment expressed in such Debt Security. 

ARTICLE VII

CONCERNING THE TRUSTEE  

        Section 7.01.    Certain Duties and Responsibilities.    The Trustee, prior to the occurrence of an Event of
Default and after the curing or waiving of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In
case an Event of Default has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and
skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 

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

        (a)   this
subsection shall not be construed to limit the effect of the first paragraph of this Section 7.01; 

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

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

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

41

 

this
Indenture; but the Trustee shall examine the evidence furnished to it pursuant to Sections 4.05 and 4.06 to determine whether or not such evidence conforms to the requirement of this Indenture; 

        (iii)  the
Trustee shall not be liable for an error of judgment made in good faith by a responsible officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts; and 

        (iv)  the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it with respect to Debt Securities of any series in good faith in accordance
with the direction of the Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of that 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 Debt Securities of such series. 

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

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

        Section 7.02.    Certain Rights of Trustee.    Except as otherwise provided in Section 7.01: 

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

        (b)   any
request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by a Company Order (in each case, unless other evidence in
respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary
of the Company; 

        (c)   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 or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel; 

        (d)   the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders
of Debt Securities of any series pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and
liabilities which may be incurred therein or thereby; 

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

42

 

        (f)    prior
to the occurrence of an Event of Default and after the curing of all Events of Default which may have occurred, the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, approval or other paper or document,
unless requested in writing to do so by the Holders of a majority in aggregate principal amount of the then Outstanding Debt Securities of a series affected by such matter;  provided, however, that if
the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the
making of such investigation is not, in the opinion of the Trustee, reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable
indemnity against such costs, expenses or liabilities as a condition to so proceeding. The reasonable expense of every such investigation shall be paid by the Company or, if paid by the Trustee, shall
be repaid by the Company upon demand; 

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

        (h)   if
any property other than cash shall at any time be subject to a Lien in favor of the Holders, the Trustee, if and to the extent authorized by a receivership or
bankruptcy court of competent jurisdiction or by the supplemental instrument subjecting such property to such lien, shall be entitled to make advances for the purpose of preserving such property or of
discharging tax Liens or other prior Liens or encumbrances thereon. 

        Section 7.03.    Trustee Not Liable for Recitals in Indenture or in Debt Securities.    

        The
recitals contained herein, in the Debt Securities (except the Trustee's certificate of authentication) shall be taken as the statements of the Company and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Debt Securities of any series, except that the
Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Debt Securities and perform its obligations hereunder, and that the statements made by it or to be
made by it in a Statement of Eligibility and Qualification on Form T-1 supplied to the Company are true and accurate. The Trustee shall not be accountable for the use or application
by the Company of any of the Debt Securities or of the proceeds thereof. 

        Section 7.04.    Trustee, Paying Agent or Registrar May Own Debt Securities.    The Trustee or any paying agent
or Registrar, in its individual or any other capacity, may become the owner or pledgee of Debt Securities and subject to the provisions of the TIA relating to conflicts of interest and preferential
claims may otherwise deal with the Company with the same rights it would have if it were not Trustee, paying agent or Registrar. 

        Section 7.05.    Monies Received By Trustee to be Held in Trust.    Subject to the provisions of
Section 11.05, all monies received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated
from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any monies received by it hereunder. So long as no Event of Default shall have occurred
and be continuing, all interest allowed on any such monies shall be paid from time to time to the Company upon a Company Order. 

        Section 7.06.    Compensation and Reimbursement.    The Company covenants and agrees to pay in Dollars to the
Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it hereunder (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust), and, except as otherwise expressly provided 

43

 

herein,
the Company will pay or reimburse in Dollars the Trustee upon its request for all reasonable expenses, disbursements and advances Incurred or made by the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents, attorneys and counsel and of all Persons not regularly in its employ) except any
such expense, disbursement or advances as may arise from its negligence or bad faith. The Company also covenants to indemnify in Dollars the Trustee for, and to hold it harmless against, any loss,
liability or expense Incurred without negligence, willful misconduct or bad faith on the part of the Trustee, arising out of or in connection with the acceptance or administration of this trust or
trusts hereunder, including the reasonable costs and expenses of defending itself against any claim of liability in connection with the exercise or performance of any of its powers or duties
hereunder. The obligations of the Company under this Section 7.06 to compensate and indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall
constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of this Indenture. The Company and the Holders agree that such additional indebtedness shall be secured by
a Lien prior to that of the Debt Securities upon all property and funds held or collected by the Trustee, as such, except funds held in trust for the payment of principal of, and premium, if any, or
interest on, particular Debt Securities. 

        When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(h) or (i) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any bankruptcy, insolvency, reorganization or other similar law. 

        Section 7.07.    Right of Trustee to Rely on an Officers' Certificate Where No Other Evidence Specifically
Prescribed.    Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officers' Certificate delivered to the
Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under the
provisions of this Indenture upon the faith thereof. 

        Section 7.08.    Separate Trustee; Replacement of Trustee.    The Company may, but need not, appoint a separate
Trustee for any one or more series of Debt Securities. The Trustee may resign with respect to one or more or all series of Debt Securities at any time by giving notice to the Company. The Holders of a
majority in principal amount of the Debt Securities of a particular series may remove the Trustee
for such series and only such series by so notifying the Trustee and may appoint a successor Trustee. The Company shall remove the Trustee if: 

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

	(b)
	the
Trustee is adjudged bankrupt or insolvent;

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

	(d)
	the
Trustee otherwise becomes incapable of acting. 

        If
the Trustee resigns, is removed by the Company or by the Holders of a majority in principal amount of the Debt Securities of a particular series and such Holders do not reasonably
promptly appoint a successor Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Company shall
promptly appoint a successor Trustee. No resignation or removal of the Trustee and no appointment of a successor Trustee shall become effective until the acceptance of appointment by the successor
Trustee in accordance with the applicable requirements of this Section 7.08. 

44

 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders of
Debt Securities of each applicable series. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the Lien provided for in
Section 7.06. 

        If
a successor Trustee does not take office within 60 days after the retiring Trustee gives notice of resignation or is removed, the retiring Trustee or the Holders of 25% in
principal amount of the Debt Securities of any applicable series may petition any court of competent jurisdiction for the appointment of a successor Trustee for the Debt Securities of such series. 

        If
the Trustee fails to comply with Section 7.10, any Holder of Debt Securities of any applicable series may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee for the Debt Securities of such series. 

        Notwithstanding
the replacement of the Trustee pursuant to this Section 7.08, the Company's obligations under Section 7.06 shall continue for the benefit of the retiring
Trustee. 

        In
the case of the appointment hereunder of a separate or successor trustee with respect to the Debt Securities of one or more series, the Company, any retiring Trustee and each
successor or separate Trustee with respect to the Debt Securities of any applicable series shall execute and deliver an Indenture supplemental hereto (i) which shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of any retiring Trustee with respect to the Debt Securities of any series as to which any such retiring
Trustee is not retiring shall continue to be vested in such retiring Trustee and (ii) that shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one trustee, it being understood that nothing herein or in such supplemental Indenture shall constitute such Trustees
co-trustees of the same trust and that each such separate, retiring or successor Trustee shall be Trustee of a trust or trusts hereunder separate and apart from any trust or trusts
hereunder administered by any other such Trustee. 

        Section 7.09.    Successor Trustee by Merger.    If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation or banking association
without any further act shall be the successor Trustee. In case at the time such successor or successors by merger, conversion or consolidation to the Trustee shall succeed to the trusts created by
this Indenture any of the Debt Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee, and
deliver such Debt Securities so authenticated; and in case at that time any of the Debt Securities shall not have been authenticated, any successor to the Trustee may authenticate such Debt Securities
either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Debt
Securities or in this Indenture provided that the certificate of the Trustee shall have. 

45

   
        Section 7.10.    Eligibility; Disqualification.    The Trustee shall at all times satisfy the requirements of
Section 310(a) of the TIA. The Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. No obligor upon
the Debt Securities of a particular series or Person directly or indirectly controlling, controlled by or under common control with such obligor shall serve as Trustee upon the Debt Securities of such
series. The Trustee shall comply with Section 310(b) of the TIA; provided, however, that there shall be excluded from the operation of
Section 310(b)(1) of the TIA this Indenture or any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Company are
outstanding if the requirements for such exclusion set forth in Section 310(b)(1) of the TIA are met. 

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

        Section 7.12.    Compliance with Tax Laws.    The Trustee hereby agrees to comply with all U.S. Federal income
tax information reporting and withholding requirements applicable to it with respect to payments of premium (if any) and interest on the Debt Securities, whether acting as Trustee, Registrar, paying
agent or otherwise with respect to the Debt Securities. 

ARTICLE VIII

CONCERNING THE HOLDERS  

        Section 8.01.    Evidence of Action by Holders.    Whenever in this Indenture it is provided that the Holders
of a specified percentage in aggregate principal amount of the Debt Securities of any or all series may take action (including the making of any demand or request, the giving of any direction, notice,
consent or waiver or the taking of any other action) the fact that at the time of taking any such action the Holders of such specified percentage have joined therein may be evidenced by any instrument
or any number of instruments of similar tenor executed by Holders in Person or by agent or proxy appointed in writing, by the record of the Holders voting in favor thereof at any meeting of Holders
duly called and held in accordance with the provisions of Section 5.02 or by a combination of such instrument or instruments and any such record of such a meeting of Holders. 

        Section 8.02.    Proof of Execution of Instruments and of Holding of Debt Securities.    Subject to the
provisions of Sections 7.01, 7.02 and 12.11, proof of the execution of any instrument by a Holder or his agent or proxy shall be sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. 

        The
ownership of Debt Securities of any series shall be proved by the Debt Security Register or by a certificate of the Registrar for such series. 

        The
Trustee may require such additional proof of any matter referred to in this Section 8.02 as it shall deem necessary. 

        Section 8.03.    Who May Be Deemed Owner of Debt Securities.    Prior to due presentment for registration of
transfer of any Debt Security, the Company, the Trustee, any paying agent and any Registrar may deem and treat the Person in whose name any Debt Security shall be registered upon the books of the
Company as the absolute owner of such Debt Security (whether or not such Debt Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose of
receiving payment of or on account of the principal of and premium, if any, and (subject to Section 2.05) interest on such Debt Security and for all other purposes, and none of the Company, nor
the Trustee nor any paying agent nor any Registrar shall be affected by any notice to the contrary; and all such payments so made to any such Holder for the time being, or upon his order, 

46

 

shall
be valid and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such Debt Security. 

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

        Section 8.04.    Instruments Executed by Holders Bind Future Holders.    At any time prior to (but not after)
the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Debt Securities of any series
specified in this Indenture in connection with such action and subject to the following paragraph, any Holder of a Debt Security which is shown by the evidence to be included in the Debt Securities
the Holders of which have consented to such action may, by filing written notice with the Trustee at its corporate trust office and upon proof of holding as provided in Section 8.02, revoke
such action so far as concerns such Debt Security. Except as aforesaid any such action taken by the Holder of any Debt Security shall be conclusive and binding upon such Holder and upon all future
Holders and owners of such Debt Security, and of any Debt Security issued upon transfer thereof or in exchange or substitution therefor, irrespective of whether or not any notation in regard thereto
is made upon such Debt Security or such
other Debt Securities. Any action taken by the Holders of the percentage in aggregate principal amount of the Debt Securities of any series specified in this Indenture in connection with such action
shall be conclusively binding upon the Company, the Trustee and the Holders of all the Debt Securities of such series. 

        The
Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders of Debt Securities entitled to give their consent or take any other action
required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Holders of Debt Securities at
such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not
such Persons continue to be Holders of Debt Securities after such record date. No such consent shall be valid or effective for more than 120 days after such record date unless the consent of
the Holders of the percentage in aggregate principal amount of the Debt Securities of such series specified in this Indenture shall have been received within such 120-day period. 

ARTICLE IX

SUPPLEMENTAL INDENTURES  

        Section 9.01.    Purposes for Which Supplemental Indenture may be Entered into without Consent of
Holders.    The Company (when authorized by or pursuant to a Board Resolution) and the Trustee may from time to time and at any time, without the consent of Holders,
enter into an Indenture or Indentures supplemental hereto (which shall conform to the provisions of the TIA as in force at the date of the execution thereof) for one or more of the following purposes: 

        (a)   to
evidence the succession pursuant to Article X of another Person to the Company or successive successions, and the assumption by the Successor Company (as
defined in Section 10.01) of the covenants, agreements and obligations of the Company in this Indenture and in the Debt Securities; 

        (b)   to
surrender any right or power herein conferred upon the Company, to add to the covenants of the Company such further covenants, restrictions, conditions or provisions
for the protection of the Holders of all or any series of Debt Securities (and if such covenants are to be for the benefit of less than all series of Debt Securities, stating that such covenants are
expressly being included solely for the benefit of such series) as the Board of Directors of the Company 

47

 

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

        (c)   to
cure any ambiguity or omission or to correct or supplement any provision contained herein, in any supplemental Indenture or in any Debt Securities of any series that
may be defective or inconsistent with any other provision contained herein, in any supplemental Indenture or in the Debt Securities of such series; to convey, transfer, assign, mortgage or pledge any
property to or with the Trustee, or to make such other provisions in regard to matters or questions arising under this Indenture as shall not adversely affect the interests of any Holders of Debt
Securities of any series; 

        (d)   to
modify or amend this Indenture in such a manner as to permit the qualification of this Indenture or any Indenture supplemental hereto under the TIA as then in effect,
except that nothing herein contained shall permit or authorize the inclusion in any Indenture supplemental hereto of the provisions referred to in Section 316(a)(2) of the TIA; 

        (e)   to
comply with Article X; 

        (f)    to
secure any or all of the Debt Securities; 

        (g)   to
make provisions with respect to conversion or exchange rights of Holders of Debt Securities of any series; 

        (h)   to
make any change that does not adversely affect the rights of any Holder; 

        (i)    to
add to, change or eliminate any of the provisions of this Indenture in respect of one or more series of Debt Securities; provided,
however, that any such addition, change or elimination not otherwise permitted under this Section 9.01 shall neither apply to any Debt Security of any series created
prior to the execution of such supplemental Indenture and entitled to the benefit of such provision nor modify the rights of the Holder of any such Debt Security with respect to such provision or
shall become effective only when there is no such Debt Security Outstanding; 

        (j)    to
evidence and provide for the acceptance of appointment hereunder by a successor or separate Trustee with respect to the Debt 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; 

        (k)   to
establish the form or terms of Debt Securities of any series as permitted by Sections 2.01 and 2.05; and 

        (l)    to
provide for uncertificated Debt Securities in addition to or in place of certificated Debt Securities (provided that the uncertificated Debt Securities are issued in
registered form for purposes of Section 163(f) of the Internal Revenue Code of 1986, as amended, or in a manner such that the uncertificated Debt Securities are described in
Section 163(f)(2)(B) of the Internal Revenue Code of 1986, as amended). 

        The
Trustee is hereby authorized to join with the Company in the execution of any such supplemental Indenture, to make any further appropriate agreements and stipulations which may be 

48

 

therein
contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but the Trustee shall not be obligated to enter into any such supplemental
Indenture which affects the Trustee's own rights, duties or immunities under this Indenture or otherwise. 

        Any
supplemental Indenture authorized by the provisions of this Section 9.01 may be executed by the Company and the Trustee without the consent of the Holders of any of the Debt
Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02. 

        After
an amendment under this Section 9.01 becomes effective, the Company shall mail to Holders of Debt Securities of each series affected thereby a notice briefly describing such
amendment. The failure to give such notice to all such Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Section 9.01. 

        Section 9.02.    Modification of Indenture with Consent of Holders of Debt Securities.    Without notice to any
Holder but with the consent (evidenced as provided in Section 8.01) of the Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of each series
affected by such supplemental Indenture, the Company, (when authorized by or pursuant to a Board Resolution) and the Trustee may from time to time and at any time enter into an Indenture or Indentures
supplemental hereto (which shall conform to the provisions of the TIA as in force at the date of execution thereof) for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of any supplemental Indenture or of modifying in any manner the rights of the Holders of the Debt Securities of such series;  provided, that no such
supplemental Indenture, without the consent of the Holders of each Debt Security so affected, shall reduce the percentage in
principal amount of Debt Securities of any series whose Holders must consent to an amendment; reduce the rate of or extend the time for payment of interest on any Debt Security; reduce the principal
of or extend the Stated Maturity of any Debt Security; reduce the premium payable upon the redemption of any Debt Security or change the time at which any Debt Security may or shall be redeemed in
accordance with Article III; change the duration of the maximum consecutive period, if any, that payments of interest on such Debt Securities may be deferred, if applicable; release any
security that may have been granted in respect of the Debt Securities; make any change in Section 6.06 or this Section 9.02; or make any change that adversely affects the right to
convert or exchange any Debt Security into or for Common Equity or other securities, cash or property in accordance with its terms. 

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

        Upon
the request of the Company, accompanied by a copy of a resolution of the Board of Directors of the Company authorizing the execution of any such supplemental Indenture, and upon the
filing with the Trustee of evidence of the consent of Holders as aforesaid, the Trustee shall join with the Company in the execution of such supplemental Indenture unless such supplemental Indenture
affects the Trustee's own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental
Indenture. 

        It
shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed supplemental Indenture, but it shall be sufficient
if such consent shall approve the substance thereof. 

        After
an amendment under this Section 9.02 becomes effective, the Company shall mail to Holders of Debt Securities of each series affected thereby a notice briefly describing such
amendment. The 

49

 

failure
to give such notice to all such Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Section 9.02. 

        Section 9.03.    Effect of Supplemental Indentures.    Upon the execution of any supplemental Indenture
pursuant to the provisions of this Article IX, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the Company and the Holders shall thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such supplemental Indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes. 

        The
Trustee, subject to the provisions of Sections 7.01 and 7.02, may receive an Officers' Certificate and an Opinion of Counsel as conclusive evidence that any such supplemental
Indenture complies with the provisions of this Article IX. 

        Section 9.04.    Debt Securities May Bear Notation of Changes By Supplemental Indentures.    Debt Securities of
any series authenticated and delivered after the execution of any supplemental Indenture pursuant to the provisions of this Article IX may, and shall if required by the Trustee, bear a notation
in form approved by the Trustee as to any matter provided for in such supplemental Indenture. New Debt Securities of any series so modified as to conform, in the opinion of the Trustee and the Board
of Directors, to any modification of this Indenture contained in any such supplemental Indenture may be prepared and executed by the Company, authenticated by the Trustee and delivered in exchange for
the Debt Securities of such series then Outstanding. Failure to make the appropriate notation or to issue a new Debt Security of such series shall not affect the validity of such amendment. 

ARTICLE X

CONSOLIDATION, MERGER, SALE OR CONVEYANCE  

        Section 10.01.    Consolidations and Mergers of the Company.    The Company shall not consolidate with or merge
with or into any Person, or convey, transfer or lease all or substantially all its assets, unless: (a) either (i) the Company shall be the continuing Person in the case of a merger or
(ii) the resulting, surviving or transferee Person if other than the Company (the "Successor Company") shall be a corporation organized and
existing under the laws of the United States, any State thereof or the District of Columbia and the Successor Company shall expressly assume, by an Indenture supplemental
hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the Company under the Debt Securities according to their tenor, and this Indenture;
(b) immediately after giving effect to such transaction (and treating any Indebtedness which becomes an obligation of the Successor Company or any Subsidiary of the Company as a result of such
transaction as having been incurred by the Successor Company or such Subsidiary at the time of such transaction), no Default or Event of Default would occur or be continuing; and (c) the
Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental Indenture (if any)
complies with this Indenture. 

        Section 10.02.    Rights and Duties of Successor Company.    In case of any consolidation or merger, or
conveyance or transfer of the assets of the Company as an entirety or substantially as an entirety in accordance with Section 10.01, the Successor Company shall succeed to and be substituted
for the Company with the same effect as if it had been named herein as the party of the first part, and the predecessor corporation shall be relieved of any further obligation under the Indenture and
the Debt Securities. The Successor Company thereupon may cause to be signed, and may issue either in its own name or in the name of the Company, any or all the Debt Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of the Successor Company, instead of the Company, and subject to all the terms, conditions and 

50

 

limitations
in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Debt Securities which previously shall have been signed and delivered by the officers of the Company to
the Trustee for authentication, and any Debt Securities which the Successor Company thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Debt Securities so issued
shall in all respects have the same legal rank and benefit under this Indenture as the Debt Securities theretofore or thereafter issued in accordance with the terms of this Indenture as though all
such Debt Securities had been issued at the date of the execution hereof. 

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

ARTICLE XI

SATISFACTION AND DISCHARGE OF

INDENTURE; DEFEASANCE; UNCLAIMED MONIES  

        Section 11.01.    Applicability of Article.    If, pursuant to Section 2.05, provision is made for the
defeasance of Debt Securities of a series, then the provisions of this Article XI relating to defeasance of Debt
Securities shall be applicable except as otherwise specified pursuant to Section 2.05 for Debt Securities of such series. 

        Section 11.02.    Satisfaction and Discharge of Indenture; Defeasance.    

        (a)   If
at any time the Company shall have delivered to the Trustee for cancellation all Debt Securities of any series theretofore authenticated and delivered (other than any
Debt Securities of such series which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.11 and Debt Securities for whose payment money
has theretofore been deposited in trust and thereafter repaid to the Company as provided in Section 11.05) or all Debt Securities of such series not theretofore delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and the Company shall deposit with the Trustee as trust funds the entire amount sufficient to pay at maturity or upon redemption all Debt Securities
of such series not theretofore delivered to the Trustee for cancellation, including principal and premium, if any, and interest due or to become due on such date of maturity or redemption date, as the
case may be, and if in either case the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect (except as to
any surviving rights of registration of transfer or exchange of such Debt Securities herein expressly provided for and rights to receive payments of principal of, and premium, if any, and interest on,
such Debt Securities) with respect to the Debt Securities of such series, and the Trustee, on demand of the Company accompanied by an Officers' Certificate and an Opinion of Counsel and at the cost
and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture. 

        (b)   Subject
to Sections 11.02(c), 11.03 and 11.07, the Company at any time may terminate, with respect to Debt Securities of a particular series, all its obligations under
the Debt Securities of such series and this Indenture with respect to the Debt Securities of such series ("legal defeasance option") or the operation of Sections 6.01 (e), (f), (g) and
(j) ("covenant defeasance option"). The Company may exercise its legal defeasance option notwithstanding its prior exercise of its covenant defeasance option. 

        If
the Company exercises its legal defeasance option, payment of the Debt Securities of the defeased series may not be accelerated because of an Event of Default. If the Company
exercises its covenant defeasance option, payment of the Debt Securities of the defeased series may not be 

51

 

accelerated
because of an Event of Default specified in Sections 6.01 (e), (f), (g) and (j) (except to the extent covenants or agreements referenced in such Sections remain applicable). 

        Upon
satisfaction of the conditions set forth herein and upon request of the Company, the Trustee shall acknowledge in writing the discharge of those obligations that the Company
terminates. 

        (c)   Notwithstanding
clauses (a) and (b) above, the Company's obligations in Sections 2.09, 2.11, 4.02, 4.04, 5.01, 7.06, 7.10, 11.05, 11.06 and 11.07 shall
survive until the Debt Securities of the defeased series have been paid in full. Thereafter, the Company's obligations in Sections 7.06, 11.05 and 11.06 shall survive. 

        Section 11.03.    Conditions of Defeasance.    The Company may exercise its legal defeasance option or its
covenant defeasance option with respect to Debt Securities of a particular series only if: 

        (a)   the
Company irrevocably deposits in trust with the Trustee money or U.S. Government Obligations for the payment of principal of, and premium, if any, and interest on,
the Debt Securities of such series to maturity or redemption, as the case may be; 

        (b)   the
Company delivers to the Trustee a certificate from a nationally recognized firm of independent accountants expressing their opinion that the payments of principal
and interest when due and without reinvestment on the deposited U.S. Government Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be
sufficient to pay the principal, premium and interest when due on all the Debt Securities of such series to maturity or redemption, as the case may be; 

        (c)   123 days
pass after the deposit is made and during the 123-day period no Default specified in Section 6.01(h) or (i) with respect to the
Company occurs which is continuing at the end of the period; 

        (d)   no
Default has occurred and is continuing on the date of such deposit and after giving effect thereto; 

        (e)   the
deposit does not constitute a default under any other agreement binding on the Company; 

        (f)    the
Company delivers to the Trustee an Opinion of Counsel to the effect that the trust resulting from the deposit does not constitute, or is qualified as, a regulated
investment company under the Investment Company Act of 1940; 

        (g)   in
the event of the legal defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel stating that the Company has received from the
Internal Revenue Service a ruling, or since the date of this Indenture there has been a change in the applicable Federal income tax law, in either case of the effect that, and based thereon such
Opinion of Counsel shall confirm that, the Holders of Debt Securities of such series will not recognize income, gain or loss for Federal income tax
purposes as a result of such 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 defeasance had not
occurred; 

        (h)   in
the event of the covenant defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of Debt Securities
of such series will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant 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 covenant defeasance had not occurred; and 

52

 

        (i)    the
Company delivers to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent to the defeasance and discharge of the
Debt Securities of such series as contemplated by this Article XI have been complied with. 

        Before
or after a deposit, the Company may make arrangements satisfactory to the Trustee for the redemption of Debt Securities of such series at a future date in accordance with
Article III. 

        Section 11.04.    Application of Trust Money.    The Trustee shall hold in trust money or U.S. Government
Obligations deposited with it pursuant to this Article XI. It shall apply the deposited money and the money from U.S. Government Obligations through any paying agent and in accordance with this
Indenture to the payment of principal of, and premium, if any, and interest on, the Debt Securities of the defeased series. 

        Section 11.05.    Repayment to Company.    The Trustee and any paying agent shall promptly turn over to the
Company upon request any excess money or securities held by them at any time. Subject to any applicable abandoned property law, the Trustee and any paying agent shall pay to the Company upon request
any money held by them for the payment of principal, premium or interest that remains unclaimed for two years, and, thereafter, Holders entitled to such money must look to the Company for payment as
general creditors. 

        Section 11.06.    Indemnity for U.S. Government Obligations.    The Company shall pay and shall indemnify the
Trustee and the Holders against any tax, fee or other charge imposed on or assessed against deposited U.S. Government Obligations or the principal and interest received on such U.S. Government
Obligations. 

        Section 11.07.    Reinstatement.    If the Trustee or any paying agent is unable to apply any money or U.S.
Government Obligations in accordance with this Article XI by reason of any legal proceeding or by reason of any order or judgment of any court or government authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this Indenture and the Debt Securities of the defeased series shall be revived and reinstated as though no deposit had occurred
pursuant to this Article XI until such time as the Trustee or any paying agent is permitted to apply all such money or U.S. Government Obligations in accordance with this Article XI,  provided, however, that if the Company makes any payment of principal of, any premium or Interest on or with respect to any such Debt Security following
reinstatement of its obligations, the Company shall be subrogated to the rights (if any) of the Holders of such Debt Securities to receive such payment from the money so held in trust. 

ARTICLE XII

MISCELLANEOUS PROVISIONS  

        Section 12.01.    Successors and Assigns of Company Bound by Indenture.    All the covenants, stipulations,
promises and agreements in this Indenture contained by or in behalf of the Company or the Trustee shall bind its respective successors and assigns, whether so expressed or not. 

        Section 12.02.    Acts of Board, Committee or Officer of Successor Company Valid.    Any act or proceeding by
any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the
like board, committee or officer of any Successor Company. 

        Section 12.03.    Required Notices or Demands.    Any notice or communication by the Company or the Trustee to
the others is duly given if in writing and delivered in Person or mailed by registered or certified mail (return receipt requested), telex, telecopier or overnight air courier guaranteeing next day
delivery, to the other's address: 

53

 

If
to the Company: 

Bill
Barrett Corporation

1099 18th Street

Suite 2300

Denver, CO 80202

Attention: General Counsel 

If
to the Trustee: 

Deutsche
Bank Trust Company Americas

60 Wall Street

New York, NY 10005

Attention: Trust and Securities Services 

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

        All
notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; on the first Business Day on or after being sent, if telecopied and the sender receives confirmation of successful transmission; and the
next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery. 

        Any
notice required or permitted to a Holder pursuant to the provisions of this Indenture shall be deemed to be properly mailed by being deposited postage prepaid in a post office letter
box in the United States addressed to such Holder at the address of such Holder as shown on the Debt Security Register. Any report pursuant to Section 313 of the TIA shall be transmitted in
compliance with subsection (c) therein. 

        Notwithstanding
the foregoing, any notice to Holders of Floating Rate Debt Securities regarding the determination of a periodic rate of interest, if such notice is required pursuant to
Section 2.05, shall be sufficiently given if given in the manner specified pursuant to Section 2.05. 

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

        In
the event of suspension of publication of any Authorized Newspaper or by reason of any other cause it shall be impracticable to give notice by publication, then such notification as
shall be given with the approval of the Trustee shall constitute sufficient notice for every purpose hereunder. 

        Failure
to mail a notice or communication to a Holder or any defect in it or any defect in any notice by publication as to a Holder shall not affect the sufficiency of such notice with
respect to other Holders. If a notice or communication is mailed or published in the manner provided above, it is conclusively presumed duly given. 

        Section 12.04.    Indenture and Debt Securities to be Construed in accordance with the Laws of the State of New
York.    This Indenture, each Debt Security shall be deemed to be New York contracts, and for all purposes shall be construed in accordance with the laws of said
State (without reference to principles of conflicts of law). 

        Section 12.05.    Officers' Certificate and Opinion of Counsel to be Furnished upon Application or Demand by the
Company.    Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish
to the Trustee an Officers' Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating
that, in the opinion of 

54

 

such
counsel, all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such document is specifically required by
any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished. 

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

        Section 12.06.    Payments Due on Legal Holidays.    In any case where the date of maturity of interest on or
principal of and premium, if any, on the Debt Securities of a series or the date fixed for redemption or repayment of any Debt Security or the making of any sinking fund payment shall not be a
business day at any Place of Payment for the Debt Securities of such series, then payment of interest or principal and premium, if any, or the making of such sinking fund payment need not be made on
such date at
such Place of Payment, but may be made on the next succeeding business day at such Place of Payment with the same force and effect as if made on the date of maturity or the date fixed for redemption,
and no interest shall accrue for the period after such date. If a record date is not a business day, the record date shall not be affected. 

        Section 12.07.    Provisions Required by TIA to Control.    If and to the extent that any provision of this
Indenture limits, qualifies or conflicts with another provision included in this Indenture which is required to be included in this Indenture by any of Sections 310 to 318, inclusive, of the TIA, such
required provision shall control. 

        Section 12.08.    Computation of Interest on Debt Securities.    Interest, if any, on the Debt Securities shall
be computed on the basis of a 360-day year of twelve 30-day months, except as may otherwise be provided pursuant to Section 2.05. 

        Section 12.09.    Rules by Trustee, Paying Agent and Registrar.    The Trustee may make reasonable rules for
action by or a meeting of Holders. The Registrar and any paying agent may make reasonable rules for their functions. 

        Section 12.10.    No Recourse against Others.    An incorporator or any past, present or future director,
officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Debt Securities or this Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a Debt Security, each Holder shall waive and release all such liability. The waiver and release shall be part of the
consideration for the issue of the Debt Securities. 

        Section 12.11.    Severability.    In case any provision in this Indenture or the Debt 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 12.12.    Effect of Headings.    The article and section headings herein and in the Table of Contents
are for convenience only and shall not affect the construction hereof. 

        Section 12.13.    Indenture May Be Executed in Counterparts.    This Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. 

55

 

        The
Trustee hereby accepts the trusts in this Indenture upon the terms and conditions herein set forth. 

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

	 	 	BILL BARRETT CORPORATION
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:

Title:
	

 	
 	
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:

Title:

56

QuickLinks

Exhibit 4.8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]