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Exhibit 10.3    
    
    Execution Copy    
    

 
 

GTC BIOTHERAPEUTICS, INC.    
    
    REGISTRATION RIGHTS AGREEMENT    
    
    dated as of July 30, 2003    
    

 
 

GTC BIOTHERAPEUTICS, INC.    
    
    REGISTRATION RIGHTS AGREEMENT    
    

        This Registration Rights Agreement (this "Agreement") is entered into as of July 30, 2003 by and among GTC
Biotherapeutics, Inc., a Massachusetts corporation (the "Company"), and the investors signatory hereto (each, a "Purchaser" and,
collectively, the "Purchasers"). 

 
 

RECITALS    
    

        A. The Company and the Purchasers entered into that certain Securities Purchase Agreement of even date herewith among the Company and the Purchasers (the
"Securities Purchase Agreement"), and, upon the terms and subject to the conditions of the Securities Purchase Agreement pursuant to exemptions from registration afforded
by Rule 506 promulgated under the Securities Act of 1933, as amended (the "Securities Act"), and Section 4(2) thereunder, the Purchasers have severally
agreed to purchase the respective number of shares (collectively, the "Shares") of the common stock, par value $0.01 per share, of the Company (the "Common
Stock") and Common Stock Purchase Warrants to purchase shares of Common Stock (collectively, the "Warrant Shares") as is set forth on the Schedule of
Purchasers attached hereto as Exhibit A (the Shares, the Common Stock Purchase Warrants and the Warrant Shares are herein referred to together as the
"Securities"). 

        B.
To induce the Purchasers to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration rights to the Purchasers under the Securities
Act, and applicable state securities laws. 

        NOW,
THEREFORE, in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and each of the Purchasers hereby agree as follows: 

        1.    Certain Definitions.    As used in this Agreement, the following terms shall have
the following meanings: 

        (a)   "Business
Day" means any day other than Saturday, Sunday or any other day on which commercial banks in The City of New York are required by
law to remain closed. 

        (b)   "Investor"
means each Purchaser and any transferee or assignee thereof to whom Placement Agent or a Purchaser assigns its rights under this
Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 of this Agreement, and any subsequent transferee or assignee thereof to whom a
transferee or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 of this Agreement. 

        (c)   "Person"
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
organization or association and governmental or any department or agency thereof. 

        (d)   "Prospectus"
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

        (e)   "register,"
"registered," and "registration" means a registration effected by
preparing and filing one or more Registration Statements (as defined below) in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act or any successor rule
providing for offering securities on a continuous or delayed basis ("Rule 415"), and the declaration or ordering of 

 

effectiveness
of such Registration Statements by the United States Securities and Exchange Commission (the "Commission"). 

        (f)    "Registrable
Securities" means (i) the Shares and the Warrant Shares and (ii) any shares of common stock of any entity issued
in respect of the Shares or Warrant Shares as a result of a merger, consolidation, sale of assets, sale or exchange of capital stock or other similar transaction, provided that shares of capital stock
that are Registrable Securities shall cease to be Registrable Securities upon (1) any sale pursuant to a Registration Statement or Rule 144 under the Securities Act or eligibility for
sale under Rule 144(k) or (2) any sale or transfer to any Person which by virtue of Section 9 of this Agreement is not entitled to the rights provided by this Agreement. 

        (g)   "Registration
Statement" means a registration statement or registration statements of the Company filed under the Securities Act and
covering Registrable Securities, including (in each case) the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement. 

        (h)   "Trading
Day" means (i) a day on which the Common Stock is traded on a Trading Market, or (ii) if the Common Stock is not
listed on a Trading Market, a day on which the Common Stock is traded on the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock
is not quoted on the OTC Bulletin Board, a day on which the Common Stock is quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or
any similar organization or agency succeeding its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) or
(iii) hereof, then Trading Day shall mean a Business Day. 

        (i)    "Trading
Market" means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the American Stock Exchange, the New York Stock Exchange, the Nasdaq National Market or the Nasdaq SmallCap Market. 

        (j)    Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. 

        2.    Registration    

        (a)    Mandatory Registration.    The Company shall use its reasonable efforts to prepare
and, as soon as practicable but in no event later than thirty (30) days after the Closing Date (the "Filing Deadline"), file with the Commission a Registration
Statement on Form S-3 covering the resale of all of the Registrable Securities. In the event that Form S-3 is unavailable for such a registration, the Company
shall use such other form as is available for such a registration, subject to the provisions of Section 2(c) of this Agreement. The Registration Statement and shall contain (except if otherwise
agreed by the holders of at least a majority of the Registrable Securities) the "Plan of Distribution" attached hereto as Annex A. The Company shall use reasonable efforts
to have the Registration Statement declared effective by the Commission as soon as practicable, but not later than ninety (90) days after the Closing Date (the "Effectiveness
Deadline"); provided, however, that if the
Commission reviews the Registration Statement and requires the Company to make modifications thereto, then the Effectiveness Deadline shall be extended to not later than one hundred twenty
(120) days after the Closing Date. 

        (b)    Allocation of Registrable Securities.    The number of Registrable Securities
included in any Registration Statement shall be allocated pro rata among the Investors based on the number of Registrable Securities held by each Investor at the time the Registration Statement
covering such initial number of Registrable Securities or increase thereof is declared effective by the Commission. In the event that an Investor sells or otherwise transfers any of such Investor's
Registrable Securities, each transferee shall be allocated the portion of the then remaining number of Registrable Securities 

2

 

included
in such Registration Statement allocable to the transferor. In no event shall the Company include any securities other than Registrable Securities on any Registration Statement without the
prior written consent of the Investors holding at least a majority of the Registrable Securities. The Company shall not file any registration statement other than the Registration Statement herein
required to be filed until after the date the initial Registration Statement required to be filed hereunder has been declared effective by the Commission. 

        (c)    Ineligibility for Form S-3.    If Form S-3
is not available for the registration of the resale of Registrable Securities hereunder or the Company is not permitted by the Securities Act or the Commission to use Form S-3, then
the Company shall (i) register the resale of the Registrable Securities on another appropriate form reasonably acceptable to the holders of at least a majority of the Registrable Securities and
(ii) undertake to register the Registrable Securities on Form S-3 as soon as such form is available; provided, however, that the Company shall maintain the effectiveness of
the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering all of the Registrable Securities has been declared effective by the
Commission. 

        (d)    Sufficient Number of Securities Registered.    In the event the number of shares
registered under a Registration Statement filed pursuant to Section 2(a) of this Agreement is for any reason insufficient to cover all of the Registrable Securities or all of an Investor's
allocated portion of the Registrable Securities pursuant to Section 2(b) of this Agreement, the Company shall amend the Registration Statement, or file a new Registration Statement (on
the short form available therefor, if applicable), or both, so as to cover all of the Registrable Securities, as soon as practicable, but in no event later than fifteen (15) days after the
necessity therefor arises. The Company shall use its reasonable efforts to cause such amendment or new Registration Statement to become effective as soon as practicable following the filing thereof. 

        (e)    Liquidated Damages.    If (i) the initial Registration Statement required
to be filed pursuant to Section 2(a) is not filed on or prior to the Filing Deadline, or (ii) the initial Registration Statement required to be filed pursuant to Section 2(a) is
not declared effective by the Commission on or before the Effectiveness Deadline, or (iii) after the date first declared effective by the Commission and prior to
the expiration of the Registration Period, the Company invokes Blackout Periods, as such term is defined in Section 3(m), that in the aggregate exceed Twenty Five (25) Trading Days (any
such failure or breach to be referred to as an "Event" and for the purposes of clauses (i) or (ii) the date on which such Event occurs, or for purposes of
clause (iii) the date on which such Twenty Five (25) Trading Day period is exceeded, being referred to as an "Event Date") then in addition to any other
rights available to the Investors: (x) on each such Event Date, the Company shall pay to each Investor an amount in cash as liquidated damages and not as a penalty, equal to 1.5% of the
aggregate purchase price paid by the original Investor pursuant to the Purchase Agreement for any Registrable Securities then held by such Investor; and (y) on each monthly anniversary of each
such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Investor an amount in cash as liquidated damages and
not as a penalty, equal to 1.5% of the aggregate purchase price paid by the original Investor pursuant to the Purchase Agreement for any Registrable Securities then held by such Investor. The
liquidated damages pursuant to the terms hereof shall apply on a pro rata basis for any portion of a month prior to the cure of an Event. 

        3.    Related Obligations.    At such time as the Company is obligated to file a
Registration Statement with the Commission pursuant to Section 2 of this Agreement, the Company will use reasonable efforts to effect the registration of all of the Registrable Securities in
accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations: 

        (a)   The
Company shall promptly prepare and file with the Commission a Registration Statement with respect to all of the Registrable Securities (but in no event later than
the applicable Filing 

3

 

Deadline)
and use its reasonable efforts to cause such Registration Statement relating to all of the Registrable Securities required to be covered thereby to become effective as soon as practicable
after such filing (but in no event later than the applicable Effectiveness Deadline). The Company shall, subject to the terms of this Agreement, keep each Registration Statement effective pursuant to
Rule 415 at all times until the earliest of (i) the date as of which all of the Investors (other than any Investors who are "affiliates" of the Company as such term is used in
Rule 144(k) promulgated under the Securities Act) may sell all of the Registrable Securities without restriction pursuant to Rule 144(k) (or the successor rule thereto) promulgated under
the Securities Act, (ii) the five (5) year anniversary of the Closing Date or (iii) the date on which all of the Investors shall have sold all of the Registrable Securities (the
"Registration Period"), which Registration Statement, as of its filing and effective dates and each day thereafter (including all amendments or supplements thereto, as of
their respective filing and effective dates and each day thereafter), shall 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 therein not misleading, and the prospectus contained in such Registration Statement, as of its filing date and each day thereafter (including all amendments and
supplements thereto, as of their respective filing dates and each day thereafter), shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated
thereon, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading. Not less than two Trading Days prior to the filing of a Registration
Statement or any related Prospectus or any amendment or supplement thereto that contains information that is inconsistent in any material respect with Annex A hereto, the
Company shall furnish to the Investors copies of all such documents proposed to be filed which documents will be subject to the review of such Investors. The Company shall not file the Registration
Statement or any such Prospectus or any amendments or supplements thereto to which the Investors holding a majority of the Registrable Securities shall reasonably object in good faith. 

        (b)   Subject
to Section 3(m) of this Agreement, the Company shall prepare and file with the Commission such amendments (including post-effective
amendments) and supplements to the Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424 (or any
successor rule thereto) promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective at all times during the Registration Period, and, during such period,
comply with the provisions of the Securities Act. In the case of amendments and supplements to a Registration Statement and the prospectus used in connection with such Registration Statement that are
required to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form 10-Q
or Form 8-K or any analogous report under the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, or any similar successor statute (the
"Exchange Act"), the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements
with the Commission on the same day on which the Exchange Act report is filed that created the requirement for the Company to amend or supplement such Registration Statement and prospectus. 

        (c)   The
Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge to such Investor, (i) upon the
effectiveness of each Registration Statement, such number of copies of the prospectus included in such Registration Statement and all amendments and supplements thereto as such Investor may reasonably
request, and (ii) such other documents, including copies of such Registration Statement and any preliminary or final prospectus, as such Investor may reasonably request from time to time in
order to facilitate the disposition of the Registrable Securities. 

        (d)   Subject
to Section 3(m) of this Agreement, the Company shall use reasonable efforts to (i) promptly register and qualify, unless an exemption from
registration and qualification applies, the resale of the Registrable Securities under such other securities or "blue sky" laws of all applicable 

4

 

jurisdictions
in the United States as any holder of Registrable Securities reasonably requests in writing, (ii) promptly prepare and file in those jurisdictions, such amendments (including
post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period,
(iii) promptly take such other actions as may be reasonably necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and
(iv) promptly take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to file a general consent to service of process in any such jurisdiction, except in such jurisdictions where the Company is then
subject to service of process. The Company shall promptly notify each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the
registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky" laws of any jurisdiction in the United States or its receipt of notice of the initiation
or threatening of any proceeding for such purpose. 

        (e)   Notwithstanding
anything to the contrary set forth herein, as promptly as practicable after becoming aware of such event, the Company shall notify each Investor in
writing of the happening of any event as a result of which (i) the Registration Statement or any amendment or supplement thereto, as then in effect, includes an untrue statement of a material
fact or omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) the prospectus related to such Registration Statement
or any amendment or supplement thereto includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, and, subject to Section 3(m) of this Agreement, promptly prepare a supplement or amendment to such Registration
Statement and prospectus to correct such untrue statement or omission, and deliver such number of copies of such supplement or amendment to each Investor as such Investor may reasonably request. The
Company shall also promptly notify each Investor in writing (1) when a prospectus and each prospectus supplement or amendment thereto has been filed, and when a Registration Statement and each
amendment (including post-effective amendments) and supplement thereto has been declared effective by the Commission, (2) of any request by the Commission for amendments or
supplements to a Registration Statement or related prospectus or related information, and (3) of the Company's reasonable determination that an amendment (including any
post-effective amendment) or supplement to a Registration Statement or prospectus (other than the filing of a report under the Exchange Act) would be appropriate (subject to
Section 3(m)) hereof). 

        (f)    Subject
to Section 3(m) of this Agreement, the Company shall use reasonable efforts to (i) prevent the issuance of any stop order or other suspension of
effectiveness of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction, and (ii) if such an order or suspension is
issued, obtain the withdrawal of such order or suspension at the earliest practicable moment and notify each holder of Registrable Securities of the issuance of such order and the resolution thereof
or its receipt of notice of the initiation or threat of any proceeding for such purpose. 

        (g)   Except
for the information set forth on Exhibit A to the Securities Purchase Agreement, the Company shall hold in confidence and not
make any disclosure of information concerning an Investor provided to the Company unless (i) disclosure of such information is necessary to comply with United States federal or state securities
laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, prospectus or any amendment or supplement thereto,
(iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or
(iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement. The Company agrees that it shall, upon
learning that disclosure of 

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such
information concerning an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, unless ordered or requested by the Commission or other
governmental authority not to do so, give prompt written notice to such Investor and allow such Investor, at the Investor's expense, to undertake appropriate action to prevent disclosure of, or to
obtain a protective order for, such information. 

        (h)   The
Company shall use its reasonable efforts to (i) cause all the Registrable Securities to be listed on each securities exchange or automated quotation system on
which securities of the same class or series issued by the Company are then listed, or (ii) if the Company is unsuccessful in satisfying the preceding clause (i) or clause (i)
does not apply because the securities of such class or series are not listed on any exchange or automated quotation system, to secure the inclusion for quotation on the Nasdaq SmallCap Market for such
Registrable Securities and, without limiting the generality of the foregoing, to arrange for at least two market makers to register with the National Association of Securities Dealers, Inc. as
such with respect to such Registrable Securities. In addition, the Company shall provide a transfer agent and registrar for all of the Registrable Securities not later than the effective date of the
Registration Statement. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(h). 

        (i)    In
connection with any sale or transfer of Registrable Securities pursuant to a Registration Statement, the Company shall cooperate with the Investors who hold
Registrable Securities being offered and, to the extent applicable, facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable
Securities to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the case may be, as the Investors may reasonably request, and,
registered in such names as the Investors may request. 

        (j)    If
requested by an Investor, the Company shall (i) as soon as practicable, incorporate in each prospectus supplement or post-effective amendment to
the Registration Statement such information as an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, (ii) as soon as
practicable, make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment, and (iii) as soon as practicable, supplement or make amendments to any Registration Statement and prospectus if reasonably requested by an Investor holding
any Registrable Securities. 

        (k)   The
Company shall comply with all applicable rules and regulations of the Commission in connection with any registration hereunder. 

        (l)    Within
two (2) Business Days after a Registration Statement is ordered effective by the Commission, the Company shall deliver to the transfer agent for the
Registrable Securities (with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such Registration Statement has been declared effective
by the Commission. 

6

   
        (m)  Notwithstanding anything to the contrary herein, at any time after a Registration Statement has been declared effective by the Commission, the Company may delay the
disclosure of material non-public information concerning the Company if the disclosure of such information at the time is not, in the good faith judgment of the Board of Directors of the
Company, in the best interests of the Company (a "Blackout Period"); provided, however, that the Company shall promptly (i) notify the Investors of the existence of
material non-public information giving rise to a Blackout Period (provided that the Company shall not disclose the content of such material non-public information to the
Investors) and the date on which the Blackout Period will begin, and (ii) notify the Investors of the date on which the Blackout Period ends; provided further, that no single Blackout Period
shall exceed thirty (30) consecutive calendar days, the aggregate of all of the Blackout Period during any three hundred sixty-five (365) day period shall not exceed an
aggregate of forty-five (45) days and the first day of any Blackout Period must be at least two (2) trading days after the last day of any prior Blackout Period (any Blackout
Period complying with the foregoing being an "Allowable Blackout Period"). For purposes of determining the length of a Blackout Period, the Blackout Period shall be deemed
to begin on and include the date the Investors receive the notice referred to in clause (i) and shall end on and include the later of the date the Investors receive the notice referred to in
clause (ii) and the date on which the Investors may again utilize the Registration Statement and the Prospectus thereunder to sell Registrable Securities; provided, however, that no Blackout
Period shall be longer than an Allowable Blackout Period. The provisions of Section 3(f) of this Agreement shall not be applicable during the period of any Allowable Blackout Period. Upon
expiration of the Blackout Period, the Company shall again be bound by the first sentence of Section 3(e) of this Agreement. Any Blackout Period that exceeds the limitation set forth in
Section 2(e) shall be subject to liquidated damages to the extent provided therein. 

        4.    Obligations of the Investors.    

        (a)   A
reasonable time prior to the first anticipated filing date of a Registration Statement, the Company shall notify each Investor of the information the Company requires
from each such Investor if such Investor elects to have any of such Investor's Registrable Securities included in such Registration Statement for disposition by such Investor. It shall be a condition
precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that such Investor shall furnish
to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required
to effect the effectiveness of the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request. Each
Investor shall promptly notify the Company of any material change with respect to such information previously provided to the Company by such Investor. 

        (b)   Each
Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any Registration Statement
hereunder, unless such Investor has notified the Company in writing of such Investor's election to exclude all of such Investor's Registrable Securities from such Registration Statement, in which
case, such Investor does not need to cooperate with the Company until it notifies the Company of its desire to include one or more share of the Registrable Securities in such Registration Statement. 

        (c)   Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Sections 3(f) or 3(m) of this Agreement or
the first sentence of Section 3(e) of this Agreement, such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statements covering such
Registrable Securities until such Investor's receipt of the copies of the amended or supplemented prospectus contemplated by Section 3(f) of this Agreement or the first sentence of
Section 3(e)of this Agreement or receipt of notice that no amendment or supplement is required and, if so directed by the Company, such Investor 

7

 

shall
deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies of the prospectus covering such Registrable Securities
current at the time of receipt of such notice in such Investor's possession. Notwithstanding anything to the contrary in this Agreement, the Company shall cause its transfer agent to deliver
unlegended shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect to
which an Investor has entered into a contract for sale prior to the Investor's receipt of a notice from the Company of the happening of any event of the kind described in Section 3(f) of this
Agreement or the first sentence of Section 3(e) of this Agreement and for which the Investor has not yet settled. 

        5.    Expenses of Registration.    All expenses incurred by the Company in connection
with registrations, filings or qualifications pursuant to Sections 2 and 3 of this Agreement, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, and fees and disbursements of counsel for the Company, shall be paid by the Company. 

        6.    Indemnification.    In the event any Registrable Securities are included in a
Registration Statement under this Agreement: 

        (a)   To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor, the directors, officers, members, partners,
employees, agents, representatives of, and each Person, if any, who controls any Investor within the meaning of the Securities Act or the Exchange Act (each, an "Indemnified
Person"), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid in settlement or expenses, joint or
several (collectively, "Claims"), incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing by or before any court or governmental, administrative or other regulatory agency, body or the Commission, whether pending or threatened, whether or not an indemnified party is or may be a
party thereto ("Indemnified Damages"), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any amendment (including
post-effective amendments) or supplement thereto or in any filing made in connection with the qualification of the offering under the securities or other "blue sky" laws of any
jurisdiction in which Registrable Securities are offered ("Blue Sky Filing"), or the omission or alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the
effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if any), or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading, or (iii) any violation or alleged violation caused by
the Company, or its directors, officers, employees, agents or representatives acting on its behalf, of the Securities Act, the Exchange Act, any other law, including, without limitation, any state
securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses
(i) through (iii) being, collectively, "Violations"). Subject to Section 6(c) of this Agreement, the Company shall reimburse the Indemnified Persons,
promptly as such expenses are incurred and are due and payable, for any legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by such Indemnified Person for such Indemnified Person expressly
for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto; 

8

 

(ii) shall
not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company, including a
corrected prospectus, if such prospectus or corrected prospectus was timely made available by the Company pursuant to Section 3(c) of this Agreement and such correct prospectus would have
corrected the Claim to which such Violation pertains; and (iii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of
the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9 of this Agreement. 

        (b)   In
connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not jointly indemnify, hold harmless and
defend, to the same extent and in the same manner as is set forth in Section 6(a) of this Agreement, the Company, each of its directors, each of its officers who signs the Registration
Statement and each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act (each, an "Indemnified Party"), against any Claims
or Indemnified Damages to which any of them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claims or Indemnified Damages arise out of or are based upon
any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor
expressly for use in connection with such Registration Statement and, subject to Section 6(c) of this Agreement, such Investor will reimburse any legal or other expenses reasonably incurred by
an Indemnified Party in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect
to contribution contained in Section 7 of this Agreement shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of such
Investor, which consent shall not be unreasonably withheld or delayed; provided, further, that the Investor shall be liable under this Section 6(b) for only that amount of the Claims and
Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities giving rise to such Violation pursuant to such Registration Statement. Such
indemnification agreement shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable
Securities by the Investors pursuant to Section 9 of this Agreement. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this
Section 6(b) shall not inure to the benefit of any Indemnified Party if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected on a timely basis
in the prospectus, as then amended or supplemented. 

        (c)   Promptly
after an Indemnified Person or Indemnified Party under this Section 6 has knowledge of any Claim as to which such Indemnified Person reasonably believes
indemnity may be sought or promptly after such Indemnified Person or Indemnified Party receives notice of the commencement of any action or proceeding (including any governmental action or proceeding)
involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the
indemnifying party a written notice of such Claim, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding; provided, further, that the indemnifying party shall not be responsible for the reasonable
fees and expense of more than one (1) separate legal 

9

 

counsel
for such Indemnified Person or Indemnified Party. In the case of an Indemnified Person, the legal counsel referred to in the immediately preceding sentence shall be selected by the Investors
holding at least a majority of the Registrable Securities included in the Registration Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall cooperate fully with the
indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available
to the Indemnified Party or Indemnified Person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to
the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior
written consent; provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the
Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party or Indemnified Person of a full release from all liability in respect to such Claim and action and proceeding. After indemnification as provided for
under this Agreement, the rights of the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party as provided in this Agreement shall not relieve such indemnifying party
of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action. 

        (d)   The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and
when bills are received or Indemnified Damages are incurred. 

        (e)   The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified Person against
the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law. 

        7.    Contribution.    To the extent any indemnification by an indemnifying party is
prohibited or limited by law, then, in order to provide for just and equitable contribution, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it
would otherwise be liable under Section 6 of this Agreement to the fullest extent permitted by law; provided, however, that (i) no contribution shall be made under circumstances where
the maker would not have been liable for indemnification under the fault standards set forth in Section 6 of this Agreement, (ii) no Person involved in the sale of Registrable Securities
which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to contribution from any Person
involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation, and (iii) contribution by any seller of Registrable Securities shall be limited in amount to
the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Registration Statement. Any party entitled to contribution will, promptly after receipt
of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 7,
notify such party or parties from whom contribution may be sought, but the omission so to notify such party or parties from whom contribution may be sought shall not relieve such party from any other
obligation it or they may have thereunder or otherwise under this Section 7. No party shall be liable for contribution with respect to any action, suit, proceeding or claim settled without its
prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. The provisions of this Section 7 shall remain in full force and effect, regardless of the
investigation made by 

10

 

or
on behalf of the beneficiaries of this Section 7 and shall survive the transfer of Registrable Securities by the Investors pursuant to Section 9 of this Agreement. 

        8.    Reporting.    

        (a)    Reports under the Exchange Act.    With a view to making available to the
Investors the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation of the Commission that may at any time permit the Investors to sell securities of
the Company to the public without registration ("Rule 144"), the Company shall use its reasonable efforts to: 

        (1)   make
and keep public information available, as those terms are understood and defined in Rule 144; 

        (2)   file
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; and 

        (3)   furnish
to each Investor, so long as such Investor owns Registrable Securities, promptly upon request, (A) a written statement by the Company, if true, that it
has complied with the applicable reporting requirements of Rule 144, the Securities Act and the Exchange Act, (B) a copy of the most recent annual or quarterly report of the Company and
copies of such other reports and documents so filed by the Company, and (C) such other information as may be reasonably requested to permit the Investors to sell such securities pursuant to
Rule 144 without registration. 

        (b)    Rule 144A Information.    The Company shall, upon request of any Investor,
make available to such Investor the information required by Rule 144A(d)(4) (or any successor rule) under the Securities Act. 

        9.    Assignment of Registration Rights.    The rights under this Agreement shall be
automatically assignable by the Investors to any transferee of at least 100,000 Registrable Securities (subject to proportionate adjustment for any stock split, reverse stock split, recapitalizations,
or similar event) if, (A) within three (3) Business Days of such transfer (i) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of
such agreement is furnished to the Company; (ii) the Company is furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities
with respect to which such rights are being transferred or assigned; (B) at or before the time the Company receives the written notice contemplated by clause A(ii) of this
sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the obligations of an Investor under this Agreement immediately following such transfer or assignment, the
further disposition of such securities by the transferee or assignee is restricted under the Securities Act and applicable state securities laws; (C) such transfer shall have been made in
accordance with the applicable requirements of the Securities Purchase Agreement; and (D) such transfer shall have been conducted in accordance with all applicable federal and state securities
laws. 

        10.    Amendment of Registration Rights.    Any provision of this Agreement may be
amended and the observance of any provision of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of
the Company and Investors who then hold at least a majority of the Registrable Securities. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon each
Investor and the Company. No such amendment shall be effective to the extent that it applies to less than all of the holders of the Registrable Securities. No consideration shall be offered or paid to
any Person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration also is offered to all of the parties to this Agreement. 

11

 

        11.    Miscellaneous.    

        (a)   If
at any time during the Registration Period there is not an effective Registration Statement covering all of the Registrable Securities and the Company shall determine
to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other
than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in
connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then the Company shall send to each Investor
written notice of such determination and, if within fifteen days after receipt of such notice, any such Investor shall so request in writing, the Company shall include in such registration statement
all or any part of such Registrable Securities such holder requests to be registered, subject to customary underwriter cutbacks applicable to all holders of registration rights. 

        (b)   A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities. If the Company receives
conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election
received from such record owner of such Registrable Securities. 

        (c)   Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have
been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated
and kept on file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party
to receive the same. The addresses and facsimile numbers for such communications shall be: 

        If
to the Company: 

GTC
Biotherapeutics, Inc.

175 Crossing Boulevard

Framingham, MA 01702

Telephone: (508) 270-2061

Facsimile: (508) 271-3491

Attention: Geoffrey F. Cox, Ph.D.

                  Chairman, President and Chief Executive Officer 

        with
a copy to: 

Palmer
& Dodge LLP

111 Huntington Avenue

Boston, MA 02199

Telephone: (617) 239-0100

Facsimile: (617) 227-4420

Attention: Nathaniel Gardiner, Esq. 

        If
to a Purchaser, to its address and facsimile number set forth on the Schedule of Purchasers attached to the Securities Purchase Agreement as
Exhibit A, with copies to such Purchaser's representatives as set forth on the Schedule of Purchasers, or to such other address and/or facsimile number and/or to
the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile machine containing
the time, date, recipient facsimile number and an image of the first page of such 

12

 

transmission,
or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight
delivery service in accordance with clause (i), (ii) or (iii) above, respectively. 

        (d)   Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a
waiver thereof. 

        (e)   All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York,
without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in the City of New York,
Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF
ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 

        (f)    This
Agreement, the Securities Purchase Agreement and the documents referenced herein and therein constitute the entire agreement among the parties hereto with respect
to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement, the Securities
Purchase Agreement and the documents referenced herein and therein supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof. 

        (g)   Subject
to the requirements of Section 9 `of this Agreement, this Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns
of each of the parties hereto. 

        (h)   The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 

        (i)    This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement. This
Agreement, once executed by a party, may be delivered to the other parties hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement. 

        (j)    Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby. 

13

 

        (k)   All
consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise specified in this Agreement, by
Investors holding at least a majority of the Registrable Securities. 

        (l)    The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be
applied against any party. 

        (m)  This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any
provision hereof be enforced by, any other Person. 

        (n)   The
obligations of each Investor hereunder is several and not joint with the obligations of any other Investor hereunder, and no Investor shall be responsible in any way
for the performance of the obligations of any other Investor hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Investor
pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in
any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement. Each Investor shall be entitled to protect and enforce its rights, including without
limitation the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. 

[Remainder
of page intentionally left blank.] 

14

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

	 	 	COMPANY:
	

 	
 	

GTC Biotherapeutics, Inc.
	

 	
 	

By:	

/s/  JOHN B. GREEN      
 John B. Green

Senior Vice President, Chief Financial Officer and Treasurer

[Signatures
of Purchasers on Following Page] 

	 	 	PURCHASER:
	

 	
 	

BAYSTAR CAPITAL II, LP, a Delaware limited partnership
	

 	
 	

By:	

BayStar Capital Management, LLC, its general partner
	

 	
 	

By:	

/s/  STEVEN M. LAMAR      

	 	 	Name:	Steven M. Lamar
	 	 	Title:	Managing Member
	

 	
 	

c/o BayStar Capital Management, LLC

80 E. Sir Francis Drake Blvd., Suite 2B

Larkspur, California 94939

Tel: (415) 834-4600

Fax: (415) 834-4601

Attn: Steven Lamar

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

CASTLE CREEK HEALTHCARE

PARTNERS LLC
	

 	
 	

By:	

/s/  THOMAS A. FREI      
 Name: Thomas A. Frei

Title: Managing Director of the Investment Manager

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

CLARION CAPITAL CORPORATION
	

 	
 	

By:	

/s/  MORTON COHEN      
 Name: Morton Cohen

Title: Chairman

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

DEEPHAVEN SMALL CAP GROWTH FUND LLC
	

 	
 	

By:	

/s/  BRUCE LIEBERMAN      
 Name: Bruce Lieberman

Title: Director of Private Placements

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

GRYPHON MASTER FUND, LP
	

 	
 	

By:	

/s/  E.B. LYON IV      
 Name: E.B. Lyon IV

Title: Authorized Agent

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

CAPITAL VENTURES INTERNATIONAL
	

 	
 	

By:	

Heights Capital Management, Inc., its authorized agent
	

 	
 	

By:	

/s/  MARTIN KOBINGER      
 Name: Martin Kobinger

Title: Investment Manager

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

SMITHFIELD FIDUCIARY LLC
	

 	
 	

By:	

/s/  ADAM J. CHILL      
 Name: Adam J. Chill

Title: Authorized Signatory

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

MIDSUMMER INVESTMENT, LTD.
	

 	
 	

By:	

/s/  MICHAEL A. AMSALEM      

	 	 	Name:	Michael A. Amsalem
	 	 	Title:	Director

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

ALL AMERICA – SMALL CAP GROWTH FUND
	

 	
 	

By:	

/s/  THOMAS P. LARSEN      

	 	 	Name:	Thomas P. Larsen
	 	 	Title:	EVP Mutual of America Capital Mgt.

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

INSTITUTIONAL AGGRESSIVE EQUITY GROWTH FUND
	

 	
 	

By:	

/s/  THOMAS P. LARSEN      

	 	 	Name:	Thomas P. Larsen
	 	 	Title:	EVP Mutual of America Capital Mgt.

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

AGGRESSIVE EQUITY GROWTH FUND
	

 	
 	

By:	

/s/  THOMAS P. LARSEN      

	 	 	Name:	Thomas P. Larsen
	 	 	Title:	EVP Mutual of America Capital Mgt.

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

INSTITUTIONAL ALL AMERICAN SMALL CAP GROWTH FUND
	

 	
 	

By:	

/s/  THOMAS P. LARSEN      

	 	 	Name:	Thomas P. Larsen
	 	 	Title:	EVP Mutual of America Capital Mgt.

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

OMICRON MASTER TRUST
	

 	
 	

By:	

Omicron Capital L.P. as investment advisor
	 	 	By:	Omicron Capital Inc., its general partner
	

 	
 	

By:	

/s/  OLIVIER MORALI      

	 	 	Name:	Olivier Morali
	 	 	Title:	President
	

 	
 	

c/o Omicron Capital L.P.

810 Seventh Avenue, 39th Floor

New York, New York 10019

Attn: Brian Daly

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

PORTSIDE GROWTH AND OPPORTUNITY FUND
	

 	
 	

By:	

/s/  JEFF SMITH      

	 	 	Name:	Jeff Smith
	 	 	Title:	Director

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

ROYAL BANK OF CANADA
	 	 	By:	Its Agent RBC Dominion Securities Corporation
	

 	
 	

By:	

/s/  STEVEN MILKE      

	 	 	Name:	Steven Milke
	 	 	Title:	Managing Director
	

 	
 	

By:	

/s/  RICHARD TAVOSO      

	 	 	Name:	Richard Tavoso
	 	 	Title:	Managing Director

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

	 	 	PURCHASER:
	

 	
 	

PANACEA FUND LLC
	

 	
 	

By:	

/s/  MICHAEL S. RESNICK      

	 	 	Name:	Michael S. Resnick
	 	 	Title:	Executive Vice President, William Harris Investors, Inc., as Manager

[Signature
Page of Registration Rights Agreement of GTC Biotherapeutics, Inc.] 

 
 

Annex A    
    

Plan
of Distribution 

        The
Selling Stockholders and any of their pledgees, donees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of Common
Stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. The Selling Stockholders may use
any one or more of the following methods when selling shares: 

	•
	ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;

	•
	block
trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the
transaction;

	•
	purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;

	•
	an
exchange distribution in accordance with the rules of the applicable exchange;

	•
	privately
negotiated transactions;

	•
	short
sales

	•
	broker-dealers
may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share;

	•
	a
combination of any such methods of sale; and

	•
	any
other method permitted pursuant to applicable law. 

        The
Selling Stockholders may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus. 

        Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling
Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated. The Selling Stockholders do not expect these commissions and
discounts to exceed what is customary in the types of transactions involved. 

        The
Selling Stockholders may from time to time pledge or grant a security interest in some or all of the Shares or Warrant Shares owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell shares of Common Stock from time to time under this prospectus, or under an amendment to this prospectus under
Rule 424(b)(3) or other applicable provision of the Securities Act of 1933 amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as
selling stockholders under this prospectus. 

        The
Selling Stockholders also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus. 

        The
Selling Stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Securities Act in
connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. Each Selling Stockholder has informed the Company that: (i) it does not have any agreement or understanding, directly or indirectly, with any
person to distribute the Common Stock and (ii) it is not a registered broker dealer under the Securities Exchange Act of 1934. 

        The
Company is required to pay all fees and expenses incident to the registration of the shares. The Company has agreed to indemnify the Selling Stockholders against certain losses,
claims, damages and liabilities, including liabilities under the Securities Act. 

 
 

Exhibit A  
    

	 
	 	Number of Shares
	 	Number of Warrant Shares

	BayStar Capital II, LP	 	196,078	 	49,019
	Castle Creek Healthcare Partners LLC	 	294,117	 	73,529
	Clarion Capital Corporation	 	100,000	 	25,000
	Deephaven Small Cap Growth Fund LLC	 	392,157	 	98,039
	Gryphon Master Fund, LP	 	196,078	 	49,019
	Capital Ventures International	 	588,235	 	147,058
	Smithfield Fiduciary LLC	 	196,078	 	49,019
	Midsummer Investment, Ltd.	 	200,000	 	50,000
	All America — Small Cap Growth Fund	 	95,372	 	23,843
	Institutional Aggressive Equity Growth Fund	 	10,863	 	2,715
	Aggressive Equity Growth Fund	 	276,941	 	69,235
	Institutional All America Small Cap Growth Fund	 	8,980	 	2,245
	Omicron Master Trust	 	137,254	 	34,313
	Portside Growth and Opportunity Fund	 	392,156	 	98,039
	Royal Bank of Canada	 	392,156	 	37,500
	Panacea Fund LLC	 	150,000	 	37,500

QuickLinks

Exhibit 10.3 Execution Copy

GTC BIOTHERAPEUTICS, INC. REGISTRATION RIGHTS AGREEMENT dated as of July 30, 2003

GTC BIOTHERAPEUTICS, INC. REGISTRATION RIGHTS AGREEMENT

RECITALS

Annex A

Exhibit AQuickLinks
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Exhibit 4.1  

AMGEN INC.

INDENTURE

Dated as of August 4, 2003

JPMORGAN CHASE BANK,

as Trustee  

   TABLE OF CONTENTS  

	 
	 	 
	 	PAGE

	ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE	 	1
	 	Section 1.1	 	Definitions.	 	1
	 	Section 1.2	 	Other Definitions.	 	4
	 	Section 1.3	 	Incorporation by Reference of Trust Indenture Act.	 	4
	 	Section 1.4	 	Rules of Construction.	 	4
	ARTICLE II. THE SECURITIES	 	5
	 	Section 2.1	 	Issuable in Series.	 	5
	 	Section 2.2	 	Establishment of Terms of Series of Securities.	 	5
	 	Section 2.3	 	Execution and Authentication.	 	7
	 	Section 2.4	 	Registrar and Paying Agent.	 	8
	 	Section 2.5	 	Paying Agent to Hold Money in Trust.	 	8
	 	Section 2.6	 	Securityholder Lists.	 	9
	 	Section 2.7	 	Transfer and Exchange.	 	9
	 	Section 2.8	 	Mutilated, Destroyed, Lost and Stolen Securities.	 	9
	 	Section 2.9	 	Outstanding Securities.	 	10
	 	Section 2.10	 	Treasury Securities.	 	10
	 	Section 2.11	 	Temporary Securities.	 	10
	 	Section 2.12	 	Cancellation.	 	10
	 	Section 2.13	 	Defaulted Interest.	 	11
	 	Section 2.14	 	Global Securities.	 	11
	 	Section 2.15	 	CUSIP Numbers.	 	12
	ARTICLE III. REDEMPTION	 	12
	 	Section 3.1	 	Notice to Trustee.	 	12
	 	Section 3.2	 	Selection of Securities to be Redeemed.	 	12
	 	Section 3.3	 	Notice of Redemption.	 	13
	 	Section 3.4	 	Effect of Notice of Redemption.	 	13
	 	Section 3.5	 	Deposit of Redemption Price.	 	13
	 	Section 3.6	 	Securities Redeemed in Part.	 	13
	ARTICLE IV. COVENANTS	 	14
	 	Section 4.1	 	Payment of Principal and Interest.	 	14
	 	Section 4.2	 	SEC Reports.	 	14
	 	Section 4.3	 	Compliance Certificate.	 	14
	 	Section 4.4	 	Stay, Extension and Usury Laws.	 	14
	ARTICLE V. SUCCESSORS	 	15
	 	Section 5.1	 	When Company May Merge, Etc.	 	15
	 	Section 5.2	 	Successor Corporation Substituted.	 	15
	 	 	 	 	 

i

 

	ARTICLE VI. DEFAULTS AND REMEDIES	 	15
	 	Section 6.1	 	Events of Default.	 	15
	 	Section 6.2	 	Acceleration of Maturity; Rescission and Annulment.	 	16
	 	Section 6.3	 	Collection of Indebtedness and Suits for Enforcement by Trustee.	 	17
	 	Section 6.4	 	Trustee May File Proofs of Claim.	 	17
	 	Section 6.5	 	Trustee May Enforce Claims Without Possession of Securities.	 	18
	 	Section 6.6	 	Application of Money Collected.	 	18
	 	Section 6.7	 	Limitation on Suits.	 	18
	 	Section 6.8	 	Unconditional Right of Holders to Receive Principal and Interest.	 	19
	 	Section 6.9	 	Restoration of Rights and Remedies.	 	19
	 	Section 6.10	 	Rights and Remedies Cumulative.	 	19
	 	Section 6.11	 	Delay or Omission Not Waiver.	 	19
	 	Section 6.12	 	Control by Holders.	 	19
	 	Section 6.13	 	Waiver of Past Defaults.	 	19
	 	Section 6.14	 	Undertaking for Costs.	 	20
	ARTICLE VII. TRUSTEE	 	20
	 	Section 7.1	 	Duties of Trustee.	 	20
	 	Section 7.2	 	Rights of Trustee.	 	21
	 	Section 7.3	 	Individual Rights of Trustee.	 	22
	 	Section 7.4	 	Trustee's Disclaimer.	 	22
	 	Section 7.5	 	Notice of Defaults.	 	22
	 	Section 7.6	 	Reports by Trustee to Holders.	 	22
	 	Section 7.7	 	Compensation and Indemnity.	 	23
	 	Section 7.8	 	Replacement of Trustee.	 	23
	 	Section 7.9	 	Successor Trustee by Merger, etc.	 	24
	 	Section 7.10	 	Eligibility; Disqualification.	 	24
	 	Section 7.11	 	Preferential Collection of Claims Against Company.	 	24
	ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE	 	24
	 	Section 8.1	 	Satisfaction and Discharge of Indenture.	 	24
	 	Section 8.2	 	Application of Trust Funds; Indemnification.	 	25
	 	Section 8.3	 	Legal Defeasance of Securities of any Series.	 	26
	 	Section 8.4	 	Covenant Defeasance.	 	27
	 	Section 8.5	 	Repayment to Company.	 	28
	ARTICLE IX. AMENDMENTS AND WAIVERS	 	28
	 	Section 9.1	 	Without Consent of Holders.	 	28
	 	Section 9.2	 	With Consent of Holders.	 	29
	 	Section 9.3	 	Limitations.	 	29
	 	Section 9.4	 	Compliance with Trust Indenture Act.	 	29
	 	Section 9.5	 	Revocation and Effect of Consents.	 	30
	 	Section 9.6	 	Notation on or Exchange of Securities.	 	30
	 	Section 9.7	 	Trustee Protected.	 	30
	 	 	 	 	 

ii

 

	ARTICLE X. MISCELLANEOUS	 	30
	 	Section 10.1	 	Trust Indenture Act Controls.	 	30
	 	Section 10.2	 	Notices.	 	30
	 	Section 10.3	 	Communication by Holders with Other Holders.	 	31
	 	Section 10.4	 	Certificate and Opinion as to Conditions Precedent.	 	31
	 	Section 10.5	 	Statements Required in Certificate or Opinion.	 	31
	 	Section 10.6	 	Rules by Trustee and Agents.	 	32
	 	Section 10.7	 	Legal Holidays.	 	32
	 	Section 10.8	 	No Recourse Against Others.	 	32
	 	Section 10.9	 	Counterparts.	 	32
	 	Section 10.10	 	Governing Laws.	 	32
	 	Section 10.11	 	No Adverse Interpretation of Other Agreements.	 	32
	 	Section 10.12	 	Successors.	 	32
	 	Section 10.13	 	Severability.	 	32
	 	Section 10.14	 	Table of Contents, Headings, Etc.	 	33
	 	Section 10.15	 	Securities in a Foreign Currency.	 	33
	 	Section 10.16	 	Judgment Currency.	 	33
	ARTICLE XI. SINKING FUNDS	 	34
	 	Section 11.1	 	Applicability of Article.	 	34
	 	Section 11.2	 	Satisfaction of Sinking Fund Payments with Securities.	 	34
	 	Section 11.3	 	Redemption of Securities for Sinking Fund.	 	34

iii

 
AMGEN INC.

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of August 4, 2003  

	Section 310	 	(a)(1)	 	7.10
	 	 	(a)(2)	 	7.10
	 	 	(a)(3)	 	NOT APPLICABLE
	 	 	(a)(4)	 	NOT APPLICABLE
	 	 	(a)(5)	 	7.10
	 	 	(b)	 	7.10
	Section 311	 	(a)	 	7.11
	 	 	(b)	 	7.11
	 	 	(c)	 	NOT APPLICABLE
	Section 312	 	(a)	 	2.6
	 	 	(b)	 	10.3
	 	 	(c)	 	10.3
	Section 313	 	(a)	 	7.6
	 	 	(b)(1)	 	7.6
	 	 	(b)(2)	 	7.6
	 	 	(c)(1)	 	7.6
	 	 	(d)	 	7.6
	Section 314	 	(a)	 	4.2, 10.5
	 	 	(b)	 	NOT APPLICABLE
	 	 	(c)(1)	 	10.4
	 	 	(c)(2)	 	10.4
	 	 	(c)(3)	 	NOT APPLICABLE
	 	 	(d)	 	NOT APPLICABLE
	 	 	(e)	 	10.5
	 	 	(f)	 	NOT APPLICABLE
	Section 315	 	(a)	 	7.1
	 	 	(b)	 	7.5
	 	 	(c)	 	7.1
	 	 	(d)	 	7.1
	 	 	(e)	 	6.14
	Section 316	 	(a)	 	2.10
	 	 	(a)(1)(a)	 	6.12
	 	 	(a)(1)(b)	 	6.13
	 	 	(b)	 	6.8
	Section 317	 	(a)(1)	 	6.3
	 	 	(a)(2)	 	6.4
	 	 	(b)	 	2.5
	Section 318	 	(a)	 	10.1

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

iv

        Indenture dated as of August 4, 2003 between Amgen Inc., a Delaware corporation ("Company"), and JPMorgan Chase Bank, a New York
banking corporation, as trustee ("Trustee"). 

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

 
 

ARTICLE I.
  DEFINITIONS AND INCORPORATION BY REFERENCE    
    

 Section 1.1 Definitions.  

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

        "Affiliate" of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified person. For the purposes of this definition, "control" (including, with correlative meanings, the terms "controlled by" and "under common control with"), as used
with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership
of voting securities or by agreement or otherwise. 

        "Agent" means any Registrar, Paying Agent or Service Agent. 

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

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

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

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

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

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

        "Capital Stock" means any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock. 

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

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

 

        "Company Request" means a written request signed in the name of the Company by its Chief Executive Officer, the President or a Vice
President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 

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

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

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

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

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

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

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

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

        "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 have been
approved by a significant segment of the accounting profession, which are in effect as of the date of determination. 

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

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

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

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

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

2

 

        "Officer" means the Chief Executive Officer, the President, any Vice-President, the Treasurer, the Secretary, any Assistant
Treasurer or any Assistant Secretary of the Company. 

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

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

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

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

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

        "SEC" means the Securities and Exchange Commission. 

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

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

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

        "Subsidiary" of any specified person means any corporation, association or other business entity of which more than 50% of the total
voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by such person or one or more of the other Subsidiaries of that person or a combination thereof. 

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

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

        "U.S. Government Obligations" means securities which are (i) direct obligations of The United States of America for the payment of
which its full faith and credit is pledged or (ii) obligations of a person controlled or supervised by and acting as an agency or instrumentality of The United States of America the payment of
which is unconditionally guaranteed as a full faith and credit obligation by The United States of America, and which are not callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such 

3

 

U.S.
Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt. 

 Section 1.2 Other Definitions.  

	TERM
 
	 	DEFINED IN

SECTION

	"Bankruptcy Law"	 	6.1
	"Custodian"	 	6.1
	"Event of Default"	 	6.1
	"Judgment Currency"	 	10.16
	"Legal Holiday"	 	10.7
	"mandatory sinking fund payment"	 	11.1
	"Market Exchange Rate"	 	10.15
	"New York Banking Day"	 	10.16
	"optional sinking fund payment"	 	11.1
	"Paying Agent"	 	2.4
	"Registrar"	 	2.4
	"Required Currency"	 	10.16
	"Service Agent"	 	2.4
	"successor person"	 	5.1

 Section 1.3 Incorporation by Reference of Trust Indenture Act.  

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

        "Commission" means the SEC. 

        "indenture securities" means the Securities. 

        "indenture security holder" means a Securityholder. 

        "indenture to be qualified" means this Indenture. 

        "indenture trustee" or "institutional trustee" means the Trustee. 

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

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

 Section 1.4 Rules of Construction.  

        Unless the context otherwise requires: 

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

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

4

 

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

        (d)   "or"
is not exclusive; 

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

        (f)    provisions
apply to successive events and transactions. 

 
 

ARTICLE II.
  THE SECURITIES    
    

 Section 2.1 Issuable in Series.  

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

 Section 2.2 Establishment of Terms of Series of Securities.  

        At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection 2.2.1 and
either as to such Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through 2.2.23) by or pursuant to a Board Resolution, and set forth or determined in the
manner provided in a Board Resolution, supplemental indenture or an Officers' Certificate: 

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

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

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

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

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

        2.2.6  the
place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities of such Series may be
surrendered for registration of transfer or 

5

 

exchange
and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served, and the method of such payment, if by wire transfer, mail or
other means; 

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

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

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

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

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

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

        2.2.13  the
currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency, and the agency or organization, if any, responsible for
overseeing such composite currency; 

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

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

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

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

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

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

        2.2.20  the
provisions, if any, relating to conversion of any Securities of such Series, including, if applicable, the conversion price, the conversion period, provisions as
to whether conversion will be mandatory, at the option of the Holders or at the option of the Company, the events requiring an adjustment of the conversion price and provisions affecting conversion if
such Series of Securities are redeemed; 

6

 

        2.2.21  whether
the Securities of such Series will be senior debt securities or subordinated debt securities and, if applicable, a description of the subordination terms
thereof; 

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

        2.2.23  any
other terms of the Securities of the Series (which may modify or delete any provision of this Indenture insofar as it applies to such Series). 

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

 Section 2.3 Execution and Authentication.  

        Two Officers shall sign the Securities for the Company by manual or facsimile signature. 

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

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

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

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

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

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

        The
Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An 

7

 

authenticating
agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company. 

 Section 2.4 Registrar and Paying Agent.  

        The Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to
Section 2.2, an office or agency where Securities of such Series may be presented or surrendered for payment ("Paying Agent"), where Securities
of such Series may be surrendered for registration of transfer or exchange ("Registrar") and where notices and demands to or upon the Company in respect
of the Securities of such Series and this Indenture may be served ("Service Agent"). The Registrar shall keep a register with respect to each Series of
Securities and to their transfer and exchange. The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying
Agent or Service Agent. If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent or shall fail to furnish the Trustee with the name and address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all
such presentations, surrenders, notices and demands. 

        The
Company may also from time to time designate one or more co-registrars, additional paying agents or additional service agents and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Service Agent in each place
so specified pursuant to Section 2.2 for Securities of any Series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any
change in the name or address of any such co-registrar, additional paying agent or additional service agent. The term "Registrar" includes any co-registrar; the term "Paying
Agent" includes any additional paying agent; and the term "Service Agent" includes any additional service agent. 

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

 Section 2.5 Paying Agent to Hold Money in Trust.  

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

8

  

 Section 2.6 Securityholder Lists.  

        The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of
each Series of Securities and shall otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten (10) days before
each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of
Securityholders of each Series of Securities. 

 Section 2.7 Transfer and Exchange.  

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

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

 Section 2.8 Mutilated, Destroyed, Lost and Stolen Securities.  

        If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and make available for delivery in exchange
therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 

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

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

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

        Every
new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be 

9

 

entitled
to all the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder. 

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

 Section 2.9 Outstanding Securities.  

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

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

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

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

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

 Section 2.10 Treasury Securities.  

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

 Section 2.11 Temporary Securities.  

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

 Section 2.12 Cancellation.  

        The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all Securities surrendered for registration of 

10

 

transfer,
exchange, payment, replacement or cancellation in accordance with its customary procedures and deliver such canceled Securities to the Company, unless the Company otherwise directs; provided
that the Trustee shall not be required to destroy Securities. The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation. 

 Section 2.13 Defaulted Interest.  

        If the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any
interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date. The Company shall fix the record date and payment date. At least
ten (10) days before the record date, the Company shall mail to the Trustee and to each Securityholder of the Series a notice that states the record date, the payment date and the amount
of interest to be paid. The Company may pay defaulted interest in any other lawful manner. 

 Section 2.14 Global Securities.  

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

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

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

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

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

11

 

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

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

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

 Section 2.15 CUSIP Numbers.  

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

 
 

ARTICLE III.
  REDEMPTION    
    

 Section 3.1 Notice to Trustee.  

        The Company may, with respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities. If a Series of Securities is redeemable and the Company
wants or is obligated to redeem prior to the
Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of the redemption date and the principal amount of Series of
Securities to be redeemed. The Company shall give the notice at least 40 days before the redemption date (or such shorter notice as may be acceptable to the Trustee). 

 Section 3.2 Selection of Securities to be Redeemed.  

        Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture or an Officers' Certificate, if less than all the Securities of
a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that the Trustee deems fair and appropriate. The Trustee shall make the selection from
Securities of the Series outstanding not previously called for redemption. The Trustee may select for redemption portions of the principal of Securities of the Series that have denominations larger
than $1,000. Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other
denominations pursuant to Section 2.2.10, the minimum principal denomination for each Series and integral multiples thereof. Provisions of this Indenture that apply to Securities of a Series
called for redemption also apply to portions of Securities of that Series called for redemption. 

12

 

 Section 3.3 Notice of Redemption.  

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

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

        (a)   the
redemption date; 

        (b)   the
redemption price; 

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

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

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

        (f)    the
CUSIP number, if any; and 

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

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

 Section 3.4 Effect of Notice of Redemption.  

        Once notice of redemption is mailed or published as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price. A notice of redemption may not be conditional. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued
interest to the redemption date; provided that installments of interest whose Stated Maturity is on or prior to the redemption date shall be payable to the Holders of such Securities (or one or more
predecessor Securities) registered at the close of business on the relevant record date therefor according to their terms and the terms of this Indenture. 

 Section 3.5 Deposit of Redemption Price.  

        On or before 10:00 a.m., New York City time, on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption
price of and accrued interest, if any, on all Securities to be redeemed on that date. 

 Section 3.6 Securities Redeemed in Part.  

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

13

 
 
 

ARTICLE IV.
  COVENANTS    
    

 Section 4.1 Payment of Principal and Interest.  

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

 Section 4.2 SEC Reports.  

        The Company shall, so long as any of the Securities are outstanding, deliver to the Trustee within 15 days after it files them with the SEC copies of the
annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required
to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also shall comply with the other provisions of TIA Section 314(a). Delivery of such reports,
information and documents to the Trustee is for informational purposes only and the Trustee's receipt of such shall not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officers'
Certificate). 

 Section 4.3 Compliance Certificate.  

        The Company shall, so long as any of the Securities are outstanding, deliver to the Trustee, within 120 days after the end of each fiscal year of the
Company, an Officers' Certificate stating whether or not to the knowledge of the signers thereof the Company is in default in the performance and observance of any of the terms, provisions and
conditions hereof (without regard to any period of grace or requirement of notice provided hereunder), and if a Default or Event of Default shall have occurred, specifying all such Defaults or Events
of Default and the nature and status thereof of which they may have knowledge. 

        The
Company shall, so long as any of the Securities are outstanding, deliver to the Trustee, within thirty (30) days after becoming aware of any Default or Event of Default, an
Officers' Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto. 

 Section 4.4 Stay, Extension and Usury Laws.  

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

14

 
 
 

ARTICLE V.
  SUCCESSORS    
    

 Section 5.1 When Company May Merge, Etc.  

        The Company shall not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, any person (a
"successor person") unless: 

        (a)   the
Company is the surviving corporation or the successor person (if other than the Company) is organized and validly existing under the laws of any U.S. domestic
jurisdiction and expressly assumes the Company's obligations on the Securities and under this Indenture; and 

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

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

 Section 5.2 Successor Corporation Substituted.  

        Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with
Section 5.1, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor person has been named as the Company herein;
provided, however, that the predecessor Company in the case of a sale, conveyance or other disposition (other than a lease) shall be released from all obligations and covenants under this Indenture
and the Securities. 

 
 

ARTICLE VI.
  DEFAULTS AND REMEDIES    
    

 Section 6.1 Events of Default.  

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

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

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

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

        (d)   default
in the performance or breach of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty for which the consequences of
nonperformance or breach are addressed elsewhere in this Section 6.1 and other than a covenant or warranty that has been included in this Indenture solely for the benefit of Series of
Securities other than that Series), which default continues uncured for a period of 90 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of not less than a majority in principal amount of the outstanding Securities of that Series a written notice 

15

 

specifying
such default or breach and requiring it to be remedied and stating that such notice is a "Notice of Default" hereunder; or 

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

        (i)    commences
a voluntary case, 

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

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

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

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

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

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

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

        (iii)  orders
the liquidation of the Company, 

and
the order or decree remains unstayed and in effect for 90 days; or 

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

        The
term "Bankruptcy Law" means Title 11 of the U.S. Code or any similar federal or state law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 

 Section 6.2 Acceleration of Maturity; Rescission and Annulment.  

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

        At
any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding Securities of that Series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal and interest, if
any, of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13. 

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

16

 

 Section 6.3 Collection of Indebtedness and Suits for Enforcement by Trustee.  

        The Company covenants that if 

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

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

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

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

        If
the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect
the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated. 

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

 Section 6.4 Trustee May File Proofs of Claim.  

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

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

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

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

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

17

  

 Section 6.5 Trustee May Enforce Claims Without Possession of Securities.  

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

 Section 6.6 Application of Money Collected.  

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

        First:
To the payment of all amounts due the Trustee under Section 7.7; and 

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

        Third:
To the Company. 

 Section 6.7 Limitation on Suits.  

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

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

        (b)   the
Holders of at least a majority in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder; 

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

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

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

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

18

 

 Section 6.8 Unconditional Right of Holders to Receive Principal and Interest.  

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

 Section 6.9 Restoration of Rights and Remedies.  

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

 Section 6.10 Rights and Remedies Cumulative.  

        Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder,
or otherwise, shall not, to the extent permitted by law, prevent the concurrent assertion or employment of any other appropriate right or remedy. 

 Section 6.11 Delay or Omission Not Waiver.  

        No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised
from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be. 

 Section 6.12 Control by Holders.  

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

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

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

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

 Section 6.13 Waiver of Past Defaults.  

        The Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such
Series waive any past Default 

19

 

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

 Section 6.14 Undertaking for Costs.  

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

 
 

ARTICLE VII.
  TRUSTEE    
    

 Section 7.1 Duties of Trustee.  

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

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

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

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

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

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

20

 

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

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

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

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

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

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

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

 Section 7.2 Rights of Trustee.  

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

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

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

        (d)   The
Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers, provided that
the Trustee's conduct does not constitute negligence or bad faith. 

        (e)   The
Trustee may consult with counsel, and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder without negligence and in good faith and in reliance thereon. 

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

21

 

        (g)   The
Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder without negligence and in good faith and in reliance thereon. 

        (h)   The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit. 

        (i)    The
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or the
Securities of a particular Series and this Indenture. 

        (j)    The
permissive rights of the Trustee enumerated herein shall not be construed as duties. 

 Section 7.3 Individual Rights of Trustee.  

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

 Section 7.4 Trustee's Disclaimer.  

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

 Section 7.5 Notice of Defaults.  

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

 Section 7.6 Reports by Trustee to Holders.  

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

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

22

 

 Section 7.7 Compensation and Indemnity.  

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

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

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

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

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

        The
provisions of this Section shall survive the resignation or removal of the Trustee and the termination of this Indenture. 

 Section 7.8 Replacement of Trustee.  

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

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

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

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

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

        (d)   the
Trustee becomes incapable of acting. 

        If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee 

23

 

takes
office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company. 

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

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

 Section 7.9 Successor Trustee by Merger, etc.  

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

 Section 7.10 Eligibility; Disqualification.  

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

 Section 7.11 Preferential Collection of Claims Against Company.  

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

 
 

ARTICLE VIII.
  SATISFACTION AND DISCHARGE; DEFEASANCE    
    

 Section 8.1 Satisfaction and Discharge of Indenture.  

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

        (a)   any
of the following shall have occurred: 

        (i)    no
Securities have been issued hereunder; 

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

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

24

 

        (1)   have
become due and payable, or 

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

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

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

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

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

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7 and, if money shall have been deposited with the Trustee
pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1, 8.2 and 8.5 shall survive. 

 Section 8.2 Application of Trust Funds; Indemnification.  

        (a)   Subject
to the provisions of Section 8.5, all money deposited with the Trustee pursuant to Section 8.1, all money and U.S. Government Obligations or
Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received by the Trustee in respect of U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (other than the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and
interest for whose payment such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Sections 8.3 or 8.4. 

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

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

25

  

 Section 8.3 Legal Defeasance of Securities of any Series.  

        Unless this Section 8.3 is otherwise specified, pursuant to Section 2.2.23, to be inapplicable to Securities of any Series, the Company shall be
deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof,
and the provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, at Company
Request, execute proper instruments acknowledging the same), except as to: 

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

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

        (c)   the
rights, powers, trust and immunities of the Trustee hereunder; 

provided
that, the following conditions shall have been satisfied: 

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

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

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

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

26

 

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

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

 Section 8.4 Covenant Defeasance.  

        Unless this Section 8.4 is otherwise specified pursuant to Section 2.2.23 to be inapplicable to Securities of any Series, on and after the 91st day
after the date of the deposit referred to in subparagraph (a) hereof, the Company may omit to comply with respect to the Securities of any Series with any term, provision or condition set forth
under Sections 4.2, 4.3, 4.4, 4.6 and 5.1 as well as any additional covenants specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officers' Certificate
delivered pursuant to Section 2.2.23 (and the failure to comply with any such covenants shall not constitute a Default or Event of Default with respect to such Series under Section 6.1)
and the occurrence of any event specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officers' Certificate delivered pursuant to Section 2.2.18 and
designated as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect to the Securities of such Series, provided that the following conditions shall have been
satisfied: 

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

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

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

        (d)   The
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such Series will not recognize income, gain or loss
for federal income tax purposes as a result of such deposit and 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 deposit and covenant defeasance had not occurred; and 

27

 

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

 Section 8.5 Repayment to Company.  

        The Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal and interest that remains
unclaimed for two years; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense
of the Company cause to be published once, in the New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein,
which will not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Company. After that,
Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person. 

 Section 8.6 Reinstatement.  

        If the Trustee or the Paying Agent is unable to apply any money deposited with respect to Securities of any series in accordance with Section 8.1 by reason
of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the obligations of the Company
under this Indenture with respect to the Securities of such series and under the Securities of such series shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.1 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with Section 8.1; provided,
however, that if the Company has made any payment of principal of, premium (if any) or interest on any Additional Amounts with respect to any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or the Paying Agent. 

 
 

ARTICLE IX.
  AMENDMENTS AND WAIVERS    
    

 Section 9.1 Without Consent of Holders.  

        The Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder: 

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

        (b)   to
comply with Article V; 

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

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

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

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

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

28

 

 Section 9.2 With Consent of Holders.  

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

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

 Section 9.3 Limitations.  

        Without the consent of each Securityholder affected, an amendment or waiver may not: 

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

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

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

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

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

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

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

        (h)   waive
a redemption payment with respect to any Security. 

 Section 9.4 Compliance with Trust Indenture Act.  

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

29

 

 Section 9.5 Revocation and Effect of Consents.  

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

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

 Section 9.6 Notation on or Exchange of Securities.  

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

 Section 9.7 Trustee Protected.  

        In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, in addition to the documents required by Section 10.4, and (subject to Section 7.1) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. The Trustee shall sign all supplemental indentures, except
that the Trustee need not sign any supplemental indenture that adversely affects its rights. 

 
 

ARTICLE X.
  MISCELLANEOUS    
    

 Section 10.1 Trust Indenture Act Controls.  

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

 Section 10.2 Notices.  

        Any notice or communication by the Company or the Trustee to the other, or by a Holder to the Company or the Trustee, is duly given if in writing and delivered in
person or mailed by first-class mail: 

if
to the Company: 

Amgen Inc.

One Amgen Center Drive

Thousand Oaks, California 91320

Attention: Corporate Secretary

Telephone: (805) 447-1000

Facsimile: (805) 447-1010 

30

 

if
to the Trustee: 

JPMorgan
Chase Bank

4 New York Plaza, 15th Floor

New York, New York 10004

Attention: Institutional Trust Services

Telephone: (212) 623-5233

Facsimile: (212) 623-6215 

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

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

        If
a notice or communication is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it. 

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

 Section 10.3 Communication by Holders with Other Holders.  

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

 Section 10.4 Certificate and Opinion as to Conditions Precedent.  

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

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

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

 Section 10.5 Statements Required in Certificate or Opinion.  

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

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

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

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

31

 

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

 Section 10.6 Rules by Trustee and Agents.  

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

 Section 10.7 Legal Holidays.  

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

 Section 10.8 No Recourse Against Others.  

        A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Securityholder by accepting a Security waives and releases all such liability. The waiver
and release are part of the consideration for the issue of the Securities. 

 Section 10.9 Counterparts.  

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

 Section 10.10 Governing Laws.  

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

 Section 10.11 No Adverse Interpretation of Other Agreements.  

        This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture, loan or
debt agreement may not be used to interpret this Indenture. 

 Section 10.12 Successors.  

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

 Section 10.13 Severability.  

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

32

 

 Section 10.14 Table of Contents, Headings, Etc.  

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

 Section 10.15 Securities in a Foreign Currency.  

        Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officers' Certificate delivered pursuant to Section 2.2 of this
Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of
Securities of all Series or all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in a coin or
currency other than Dollars, then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be that amount of Dollars that
could be obtained for such amount at the Market Exchange Rate at such time. For purposes of this Section 10.15, "Market Exchange Rate" shall mean
the noon Dollar buying rate in New York City for cable transfers of that currency as published by the Federal Reserve Bank of New York. If such Market Exchange Rate is not available for any reason
with respect to such currency, the Trustee shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of New York as of the most recent available
date, or quotations from one or more major banks in The City of New York or in the country of issue of the currency in question or such other quotations as the Trustee, upon consultation with the
Company, shall deem appropriate. The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in currency other than
Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture. 

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

 Section 10.16 Judgment Currency.  

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

33

 

"New York Banking Day" means any day except a Saturday, Sunday or a legal holiday in The City of New York on which banking institutions are authorized
or required by law, regulation or executive order to close. 

 
 

ARTICLE XI.
  SINKING FUNDS    
    

 Section 11.1 Applicability of Article.  

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

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

 Section 11.2 Satisfaction of Sinking Fund Payments with Securities.  

        The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of
such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking
fund redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either at the
election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or
other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited. Such Securities shall be received by the Trustee, together with
an Officers' Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for
such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. If
as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the principal amount of Securities of such Series to be redeemed in order to exhaust
the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such
cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time
upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that
Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company. 

 Section 11.3 Redemption of Securities for Sinking Fund.  

        Not less than 45 days (unless otherwise indicated in the Board Resolution, supplemental indenture or Officers' Certificate in respect of a particular
Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officers' Certificate specifying the amount of the next ensuing
mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of 

34

 

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

35

 

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

	 	 	Amgen Inc.
	

 	
 	

By:	
 	

/s/  RICHARD D. NANULA       
 Name: Richard D. Nanula

Its: Executive Vice President, Finance, Strategy and Communications, and Chief Financial Officer
	

 	
 	

JPMorgan Chase Bank, as Trustee
	

 	
 	

By:	
 	

/s/  CAROL NG       
 Name: Carol Ng

Its: Vice President

36

QuickLinks

ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE

ARTICLE II. THE SECURITIES

ARTICLE III. REDEMPTION

ARTICLE IV. COVENANTS

ARTICLE V. SUCCESSORS

ARTICLE VI. DEFAULTS AND REMEDIES

ARTICLE VII. TRUSTEE

ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE

ARTICLE IX. AMENDMENTS AND WAIVERS

ARTICLE X. MISCELLANEOUS

ARTICLE XI. SINKING FUNDS

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