Document:

Exhibit 10.16

 

COLLATERAL AGENT
AGREEMENT

 

COLLATERAL AGENT AGREEMENT (this “Agreement”)
dated as of February 16, 2006, among Barbara R. Mittman (the “Collateral
Agent”), and the parties identified on Schedule A hereto (each,
individually, a “Lender” and collectively, the “Lenders”), who
hold or will acquire convertible promissory notes issued or to be issued by Aegis
Assessments, Inc. (“Debtor”), a Delaware corporation, at or about the date
of this Agreement as described in the Security Agreement referred to in Section 1(a) below
(collectively herein the “Notes”).

 

WHEREAS, the Lenders have made, are making
and will be making loans to Debtor to be secured by certain collateral; and

 

WHEREAS, it is desirable to provide for
the orderly administration of such collateral by requiring each Lender to
appoint the Collateral Agent, and the Collateral Agent has agreed to accept
such appointment and to receive, hold and deliver such collateral, all upon the
terms and subject to the conditions hereinafter set forth; and

 

WHEREAS, it is desirable to allocate the
enforcement of certain rights of the Lenders under the Notes for the orderly
administration thereof.

 

NOW, THEREFORE, in consideration of the
premises set forth herein and for other good and valuable consideration, the
parties hereto agree as follows:

 

1.                                       Collateral.

 

(a)                                  Contemporaneously
with the execution and delivery of this Agreement by the Collateral Agent and
the Lenders, (i) the Collateral Agent has or will have entered into a
Security Agreement among the Collateral Agent and Debtor (“Security
Agreement”), regarding the grant of a security interest in assets owned by
Debtor (such assets are referred to herein and in the Security Agreement as the
“Collateral”) to the Collateral Agent, for the benefit of the Lenders, [(ii) Debtor
is issuing the Notes to the Lenders pursuant to a “Subscription Agreement”
dated at or about the date of this Agreement. Collectively, the Security
Agreement and may issue additional Notes pursuant to the Subscription
Agreement, the Notes and Subscription Agreement and other agreements referred
to therein are referred to herein as “Borrower Documents”.][SOMETHING
GOT DROPPED HERE]

 

(b)                                 The
Collateral Agent hereby acknowledges that any Collateral held by the Collateral
Agent is held for the benefit of the Lenders in accordance with this Agreement
and the Borrower Documents.  No reference
to the Borrower Documents or any other instrument or document shall be deemed
to incorporate any term or provision thereof into this Agreement unless expressly
so provided.

 

(c)                                  The
Collateral Agent is to distribute in accordance with the Borrower Documents any
proceeds received from the Collateral which are distributable to the Lenders in
proportion to their respective interests in the Obligations as defined in the Borrower
Documents.

 

2.                                       Appointment
of the Collateral Agent.

 

The Lenders hereby appoint the Collateral
Agent (and the Collateral Agent hereby accepts such appointment) to take any
action including, without limitation, the registration of any Collateral in the
name of the Collateral Agent or its nominees prior to or during the continuance
of an Event of Default (as defined in the Borrower Documents), the exercise of
voting rights upon the occurrence and during the

 

1

 

continuance of an Event of Default, the
application of any cash collateral received by the Collateral Agent to the
payment of the Obligations, the making of any demand under the Borrower
Documents, the exercise of any remedies given to the Collateral Agent pursuant
to the Borrower Documents and the exercise of any authority pursuant to the
appointment of the Collateral Agent as an attorney-in-fact pursuant to the
Security Agreement that the Collateral Agent deems necessary or proper for the
administration of the Collateral pursuant to the Security Agreements.  Upon disposition of the Collateral in
accordance with the Borrower Documents, the Collateral Agent shall promptly
distribute any cash or Collateral in accordance with Section 10.4 of the
Security Agreement.  Lenders must notify
Collateral Agent in writing of the issuance of Notes to Lenders by Debtor.  The Collateral Agent will not be required to
act hereunder in connection with Notes the issuance of which was not disclosed
in writing to the Collateral Agent nor will the Collateral Agent be required to
act on behalf of any assignee of Notes without the written consent of
Collateral Agent.

 

3.                                       Action by
the Majority in Interest.

 

(a)                                  Certain
Actions.  Each of the Lenders
covenants and agrees that only a Majority in Interest shall have the right, but
not the obligation, to undertake the following actions (it being expressly
understood that less than a Majority in Interest hereby expressly waive the
following rights that they may otherwise have under the Borrower Documents):

 

(i)                                     Acceleration.  If an Event of Default occurs, after the
applicable cure period, if any, a Majority in Interest may, on behalf of all
the Lenders, instruct the Collateral Agent to provide to Debtors notice to cure
such default and/or declare the unpaid principal amount of the Notes to be due
and payable, together with any and all accrued interest thereon and all costs
payable pursuant to such Notes;

 

(ii)                                  Enforcement.  Upon the occurrence of any Event of Default
after the applicable cure period, if any, a Majority in Interest may instruct
the Collateral Agent to proceed to protect, exercise and enforce, on behalf of
all the Lenders, their rights and remedies under the Borrower Documents against
Debtors, and such other rights and remedies as are provided by law or equity;

 

(iii)                               Waiver of
Past Defaults.  A Majority in Interest
may instruct the Collateral Agent to waive any Event of Default by written
notice to Debtors, and the other Lenders; and

 

(iv)                              Amendment.  A Majority in Interest may instruct the
Collateral Agent to waive, amend, supplement or modify any term, condition or
other provision in the Notes or Borrower Documents in accordance with the terms
of the Notes or Borrower Documents so long as such waiver, amendment,
supplement or modification is made with respect to all of the Notes and with
the same force and effect with respect to each of the Lenders.

 

(b)                                 Permitted
Subordination.  A Majority in Interest
may instruct the Collateral Agent to agree to subordinate any Collateral to any
claim and may enter into any agreement with Debtors to evidence such
subordination; provided, however, that subsequent to any such
subordination, each Note shall remain pari  passu with the other
Notes held by the Lenders.

 

(c)                                  Further
Actions.  A Majority in Interest
may instruct the Collateral Agent to take any action that it may take under
this Agreement by instructing the Collateral Agent in writing to take such
action on behalf of all the Lenders.

 

2

 

(d)                                 Majority
in Interest.  For so long as any
obligations remain outstanding on the Notes, Majority in Interest for the
purposes of this Agreement and the Security Agreement shall mean Lenders who
hold not less than sixty-five percent (65%) of the outstanding principal amount
of the Notes.

 

4.                                       Power of
Attorney.

 

(a)                                  To
effectuate the terms and provisions hereof, the Lenders hereby appoint the
Collateral Agent as their attorney-in-fact (and the Collateral Agent hereby
accepts such appointment) for the purpose of carrying out the provisions of
this Agreement including, without limitation, taking any action on behalf of,
or at the instruction of, the Majority in Interest at the written direction of
the Majority in Interest and executing any consent authorized pursuant to this
Agreement and taking any action and executing any instrument that the
Collateral Agent may deem necessary or advisable (and lawful) to accomplish the
purposes hereof.

 

(b)                                 All acts
done under the foregoing authorization are hereby ratified and approved and
neither the Collateral Agent nor any designee nor agent thereof shall be liable
for any acts of commission or omission, for any error of judgment, for any
mistake of fact or law except for acts of gross negligence or willful
misconduct.

 

(c)                                  This
power of attorney, being coupled with an interest, is irrevocable while this
Agreement remains in effect.

 

5.                                       Expenses
of the Collateral Agent. 
The Lenders shall pay any and all reasonable costs and expenses incurred
by the Collateral Agent, including, without limitation, reasonable costs and
expenses relating to all waivers, releases, discharges, satisfactions,
modifications and amendments of this Agreement, the administration and holding
of the Collateral, insurance expenses, and the enforcement, protection and
adjudication of the parties’ rights hereunder by the Collateral Agent,
including, without limitation, the reasonable disbursements, expenses and fees
of the attorneys the Collateral Agent may retain, if any, each of the foregoing
in proportion to their holdings of the Notes.

 

6.                                       Reliance
on Documents and Experts. 
The Collateral Agent shall be entitled to rely upon any notice, consent,
certificate, affidavit, statement, paper, document, writing or communication
(which may be by telegram, cable, telex, telecopier, or telephone) reasonably
believed by it to be genuine and to have been signed, sent or made by the
proper person or persons, and upon opinions and advice of its own legal
counsel, independent public accountants and other experts selected by the
Collateral Agent.

 

7.                                       Duties of
the Collateral Agent; Standard of Care.

 

(a)                                  The
Collateral Agent’s only duties are those expressly set forth in this Agreement,
and the Collateral Agent hereby is authorized to perform those duties in
accordance with commercially reasonable practices.  The Collateral Agent may exercise or
otherwise enforce any of its rights, powers, privileges, remedies and interests
under this Agreement and applicable law or perform any of its duties under this
Agreement by or through its officers, employees, attorneys, or agents.

 

(b)                                 The
Collateral Agent shall act in good faith and with that degree of care that an
ordinarily prudent person in a like position would use under similar
circumstances.

 

(c)                                  Any funds
held by the Collateral Agent hereunder need not be segregated from other funds
except to the extent required by law. 
The Collateral Agent shall be under no liability for interest on any
funds received by it hereunder.

 

3

 

8.                                       Resignation.  The Collateral Agent may resign and be
discharged of its duties hereunder at any time by giving written notice of such
resignation to the other parties hereto, stating the date such resignation is
to take effect.  Within five (5) days
of the giving of such notice, a successor collateral agent shall be appointed
by the Majority in Interest; provided, however, that if the
Lenders are unable so to agree upon a successor within such time period, and
notify the Collateral Agent during such period of the identity of the successor
collateral agent, the successor collateral agent may be a person designated by
the Collateral Agent, and any and all fees of such successor collateral agent
shall be the joint and several obligation of the Lenders.  The Collateral Agent shall continue to serve
until the effective date of the resignation or until its successor accepts the
appointment and receives the Collateral held by the Collateral Agent but shall
not be obligated to take any action hereunder. 
The Collateral Agent may deposit any Collateral with the Supreme Court
of the State of New York for New York County or any such other court in New
York State that accepts such Collateral.

 

9.                                       Exculpation.  The Collateral Agent and its officers,
employees, attorneys and agents, shall not incur any liability whatsoever for
the holding or delivery of documents or the taking of any other action in
accordance with the terms and provisions of this Agreement, for any mistake or
error in judgment, for compliance with any applicable law or any attachment,
order or other directive of any court or other authority (irrespective of any
conflicting term or provision of this Agreement), or for any act or omission of
any other person engaged by the Collateral Agent in connection with this
Agreement, unless occasioned by the exculpated person’s own gross negligence or
willful misconduct; and each party hereto hereby waives any and all claims and
actions whatsoever against the Collateral Agent and its officers, employees,
attorneys and agents, arising out of or related directly or indirectly to any
or all of the foregoing acts, omissions and circumstances.

 

10.                                 Indemnification.  The Lenders hereby agree to indemnify,
reimburse and hold harmless the Collateral Agent and its directors, officers,
employees, attorneys and agents, jointly and severally, from and against any
and all claims, liabilities, losses and expenses that may be imposed upon,
incurred by, or asserted against any of them, arising out of or related directly
or indirectly to this Agreement or the Collateral, except such as are
occasioned by the indemnified person’s own gross negligence or willful
misconduct.

 

11.                                 Miscellaneous.

 

(a)                                  Rights
and Remedies Not Waived. 
No act, omission or delay by the Collateral Agent shall constitute a
waiver of the Collateral Agent’s rights and remedies hereunder or
otherwise.  No single or partial waiver
by the Collateral Agent of any default hereunder or right or remedy that it may
have shall operate as a waiver of any other default, right or remedy or of the
same default, right or remedy on a future occasion.

 

(b)                                 Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New
York  without regard to conflicts of laws
that would result in the application of the substantive laws of another
jurisdiction.

 

(c)                                  Waiver of
Jury Trial and Setoff; Consent to Jurisdiction; Etc.

 

(i)                                     In any
litigation in any court with respect to, in connection with, or arising out of
this Agreement or any instrument or document delivered pursuant to this
Agreement, or the validity, protection, interpretation, collection or
enforcement hereof or thereof, or any other claim or dispute howsoever arising,
between the Collateral Agent and the Lenders or any Lender, then each Lender,
to the

 

4

 

fullest extent it may legally do so, (A) waives
the right to interpose any setoff, recoupment, counterclaim or cross-claim in
connection with any such litigation, irrespective of the nature of such setoff,
recoupment, counterclaim or cross-claim, unless such setoff, recoupment,
counterclaim or cross-claim could not, by reason of any applicable federal or
state procedural laws, be interposed, pleaded or alleged in any other action;
and (B) WAIVES TRIAL BY JURY IN
CONNECTION WITH ANY SUCH LITIGATION AND ANY RIGHT IT MAY HAVE TO CLAIM OR
RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES.  EACH LENDER AGREES THAT THIS SECTION 11(c) IS
A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND ACKNOWLEDGE THAT THE
COLLATERAL AGENT WOULD NOT ENTER THIS AGREEMENT IF THIS SECTION 11(c) WERE
NOT PART OF THIS AGREEMENT.

 

(ii)                                  Each
Lender irrevocably consents to the exclusive jurisdiction of any State or
Federal Court located within the County of New York, State of New York, in
connection with any action or proceeding arising out of or relating to this
Agreement or any document or instrument delivered pursuant to this Agreement or
otherwise.  In any such litigation, each
Lender waives, to the fullest extent it may effectively do so, personal service
of any summons, complaint or other process and agrees that the service thereof
may be made by certified or registered mail directed to such Lender at its
address for notice determined in accordance with Section 11(e) hereof.  Each Lender hereby waives, to the fullest
extent it may effectively do so, the defenses of forum non conveniens and
improper venue.

 

(d)                                 Admissibility
of this Agreement.  Each of the Lenders
agrees that any copy of this Agreement signed by it and transmitted by
telecopier for delivery to the Collateral Agent shall be admissible in evidence
as the original itself in any judicial or administrative proceeding, whether or
not the original is in existence.

 

(e)                                  Address
for Notices. Any notice or other communication under the provisions of this
Agreement shall be given in writing and delivered in person, by reputable
overnight courier or delivery service, by facsimile machine (receipt confirmed)
with a copy sent by first class mail on the date of transmissions, or by
registered or certified mail, return receipt requested, directed to such party’s
addresses set forth below (or to any new address of which any party hereto
shall have informed the others by the giving of notice in the manner provided
herein):

 

In the case of the Collateral Agent, to
her at:

 

Barbara R. Mittman, Esq.

Grushko & Mittman, P.C.

551 Fifth Avenue, Suite 1601

New York, NY 10176

Fax: (212) 697-3575

 

With a copy to:

 

Grushko & Mittman, P.C.

551 Fifth Avenue, Suite 1601

New York, New York 10176

Fax: (212) 697-3575

 

In the case of the Lenders, to:

 

5

 

To the address and telecopier number set
forth on

Schedule A hereto.

 

In the case of Debtor, to:

 

Aegis
Assessments, Inc.

7975
N. Hayden Road, Suite D363

Scottsdale, Arizona 85258

Attn: Eric D. Johnson, CEO

Fax: (480) 778-1310

 

With a copy by telecopier only to:

 

Rogers &
Theobald LLP

The Camelback Esplanade

2425 East Camelback Road, Suite 850

Phoenix, Arizona 85016

Attn: Daniel M. Mahoney, Esq.

Fax: (602) 852-5570

 

(f)                                    Amendments
and Modification; Additional Lender. 
No provision hereof shall be modified, altered, waived or limited except
by written instrument expressly referring to this Agreement and to such
provision, and executed by the parties hereto. 
Any transferee of a Note who acquires a Note after the date hereof will
become a party hereto by signing the signature page and sending an
executed copy of this Agreement to the Collateral Agent and receiving a signed
acknowledgement from the Collateral Agent.

 

(g)                                 Fee.  Upon the occurrence of an Event of Default,
the Lenders collectively shall pay the Collateral Agent the sum of $10,000 to
apply against an hourly fee of $350 to be paid to the Collateral Agent by the
Lenders for services rendered pursuant to this Agreement.  All payments due to the Collateral Agent
under this Agreement including reimbursements must be paid when billed.  The Collateral Agent may refuse to act on
behalf of or make a distribution to any Lender who is not current in payments
to the Collateral Agent.  Payments
required pursuant to this Agreement shall be pari  passu to the
Lenders’ interests in the Notes.  The
Collateral Agent is hereby authorized to deduct any sums due the Collateral
Agent from Collateral in the Collateral Agent’s possession.

 

(h)                                 Counterparts/Execution.  This Agreement may be executed in any number
of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument.  This Agreement may be executed by facsimile
signature and delivered by facsimile transmission.

 

(i)                                     Successors
and Assigns.  Whenever in this
Agreement reference is made to any party, such reference shall be deemed to
include the successors, assigns, heirs and legal representatives of such
party.  No party hereto may transfer any
rights under this Agreement, unless the transferee agrees to be bound by, and
comply with all of the terms and provisions of this Agreement, as if an
original signatory hereto on the date hereof.

 

6

 

(j)                                     Captions:
Certain Definitions. 
The captions of the various sections and paragraphs of this Agreement
have been inserted only for the purposes of convenience; such captions are not
a part of this Agreement and shall not be deemed in any manner to modify,
explain, enlarge or restrict any of the provisions of this Agreement.  As used in this Agreement the term “person”
shall mean and include an individual, a partnership, a joint venture, a
corporation, a limited liability company, a trust, an unincorporated
organization and a government or any department or agency thereof.

 

(k)                                  Severability.  In the event that any term or provision of
this Agreement shall be finally determined to be superseded, invalid, illegal
or otherwise unenforceable pursuant to applicable law by an authority having
jurisdiction and venue, that determination shall not impair or otherwise affect
the validity, legality or enforceability (i) by or before that authority
of the remaining terms and provisions of this Agreement, which shall be enforced
as if the unenforceable term or provision were deleted, or (ii) by or
before any other authority of any of the terms and provisions of this
Agreement.

 

(l)                                     Entire
Agreement.  This Agreement contains
the entire agreement of the parties and supersedes all other agreements and
understandings, oral or written, with respect to the matters contained herein.

 

(m)                               Schedules.  The Collateral Agent is authorized to annex
hereto any schedules referred to herein.

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

 

7

 

IN
WITNESS WHEREOF, the parties hereto have caused this Collateral Agent Agreement
to be signed, by their respective duly authorized officers or directly, as of
the date first written above.

 

	
  “LENDERS”

  
	
   

  	
   

  
	
   

  	
   

  
	
   /s/ Konrad Ackerman

  	
   

  	
   /s/ Harborview Master Fund LP

  	
   

  
	
  ALPHA CAPITAL AKTIENGESELLSCHAFT

  	
  HARBORVIEW
  MASTER FUND LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   /s/ DKR
  Soundshore Oasis Holding Fund Ltd.

  	
   

  	
   

  
	
  DKR
  SOUNDSHORE OASIS HOLDING FUND LTD.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Barbara Mittman

  	
   

  
	
   

  	
  BARBARA
  R. MITTMAN - Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged:

  	
   

  
	
   

  	
   

  
	
  AEGIS
  ASSESSMENT INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Richard Reincke

  	
   

  	
   

  
	
   

  	
  Name: Richard Reincke

  	
   

  	
   

  
	
   

  	
  Title: President

  	
   

  	
   

  
							

 

 

This Collateral Agent Agreement may be signed by
facsimile signature and delivered by confirmed facsimile transmission.

 

8

 

SCHEDULE A TO COLLATERAL AGENT AGREEMENT

 

	
  LENDER

  	
   

  	
  PRINCIPAL AMOUNT OF NOTES

  	
   

  
	
  ALPHA CAPITAL
  AKTIENGESELLSCHAFT

  Pradafant 7

  9490 Furstentums

  Vaduz, Lichtenstein

  Fax: 011-42-32323196

  	
   

  	
  $

  	
  250,000.00

  	
   

  
	
  HARBORVIEW MASTER FUND
  LP

  850- Third Avenue Suite 1801

  New York, NY 10022

  Fax: (646) 218-1401

  	
   

  	
  $

  	
  125,000.00

  	
   

  
	
  DKR SOUNDSHORE OASIS
  HOLDING FUND LTD.

  C/o DKR Capital Partners, L.P.

  1281 East Main Street

  Stamford, CT 06902

  Fax: (203) 674-4737

  	
   

  	
  $

  	
  125,000.00

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  500,000.00

  	
   

  

 

9Exhibit 4.01

 

[FACE OF NOTE]

 

Unless this certificate is presented by an authorized
representative of The Depository Trust Company (55 Water Street, New York, New
York) to the issuer or its agent for registration of transfer, exchange or
payment, and any certificate issued is registered in the name of Cede &
Co. or such other name as requested by an authorized representative of The
Depository Trust Company and any payment is made to Cede & Co., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL since the registered owner hereof, Cede & Co., has an
interest herein.

 

	
  REGISTERED

  	
   

  	
  CUSIP: 225434 AK
  5

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NO. 1

  	
   

  	
  PRINCIPAL
  AMOUNT: $ 1,223,000

  

 

 

CREDIT SUISSE (USA), INC.

Reverse Convertible Securities Linked to the Performance of Diamond Offshore
Drilling, Inc.

due March 30, 2007

 

 

CREDIT SUISSE (USA), INC., a Delaware corporation
(the “Company”, which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to Cede & Co., or registered assigns, at the office or agency of the
Company in New York, New York, the Redemption Amount (as defined on the reverse
hereof) on the Maturity Date (as defined on the reverse hereof), in the coin or
currency of the United States and to pay a coupon of
9.75% per annum on the principal amount from March 31, 2006. The coupon
payment will be payable quarterly in arrears on June 30, 2006, September 29,
2006, December 29, 2006, and March 30, 2007.

 

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

 

This Note shall not be valid or become obligatory for
any purpose until the certificate of authentication hereon shall have been
manually signed by the Trustee under the Indenture referred to on the reverse
hereof.

 

F-1

 

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

 

	
   

  	
  CREDIT SUISSE (USA), INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  [SEAL]

  	
  By:

  	
   

  	
  /s/ Peter Feeney

  	
   

  
	
   

  	
   

  	
  Name: Peter Feeney

  
	
   

  	
   

  	
  Title: Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE (USA), INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Simon Yates

  	
   

  
	
   

  	
   

  	
  Name: Simon Yates

  
	
   

  	
   

  	
  Title: Authorized
  Signatory

  
						

 

 

CERTIFICATE OF
AUTHENTICATION

 

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

 

	
  Dated: March 31, 2006

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ignazio Tamburello

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

F-2

 

[REVERSE OF NOTE]

 

CREDIT SUISSE (USA), INC.

Reverse Convertible Securities Linked to the Diamond Offshore Drilling, Inc.

due March 30, 2007

 

This
Note is one of a duly authorized issue of debentures, notes, bonds or other
evidences of indebtedness of the Company (the “Securities”) of the series hereinafter
specified, all issued or to be issued under and pursuant to a senior indenture,
dated as of June 1, 2001 (the “Indenture”), between the Company and
JPMorgan Chase Bank, as trustee (the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties and immunities thereunder
of the Trustee, the Company, and the Holders of the Securities. The Securities may be
issued in one or more series, which different series may be issued in
various aggregate principal amounts, may mature at different times, may bear
interest (if any) at different rates, may be subject to different
redemption provisions (if any), may be subject to different sinking,
purchase or analogous funds (if any) and may otherwise vary as provided in
the Indenture. This Note is one of a series designated as the Reverse
Convertible Securities Linked to the Performance of Diamond Offshore Drilling, Inc.,
due March 30, 2007 (the “Note”).

 

A coupon will be payable on this Note of
9.75% per annum on the principal amount from March 31, 2006. The coupon
payment will be payable quarterly in arrears on June 30, 2006, September 29,
2006, December 29, 2006, and March 30, 2007.

 

This Note is payable in the manner, with the effect
and subject to the conditions provided in the Indenture.

 

If a payment date is not a business day as defined in
the Indenture at a place of payment, payment may be made at that place on
the next succeeding day that is a business day, and no interest shall accrue
for the intervening period.

 

The Indenture provides that, without prior notice to
any Holders, the Company and the Trustee may amend the Indenture and the
Securities of any series with the written consent of the Holders of a
majority in principal amount of the outstanding Securities of all series affected
by such amendment (all such series voting as one class), and the Holders
of a majority in principal amount of the outstanding Securities of all series affected
thereby (all such series voting as one class) may waive future
compliance by the Company with any provision of the Indenture or the Securities
of such series by written notice to the Trustee; provided that, without
the consent of each Holder of the Securities of each series affected
thereby, an amendment or waiver, including a waiver of past defaults, may not:
(i) extend the stated maturity of the Principal of, or any sinking fund
obligation or any installment of interest on, such Holder’s Security, or reduce
the principal amount thereof or the rate of interest thereon (including any
amount in respect of original issue discount), or any premium payable with
respect thereto, or adversely affect the rights of such Holder under any
mandatory redemption or repurchase provision or any right of redemption or
repurchase at the option of such Holder, or reduce the amount of the Principal
of an Original Issue Discount Security that would be due and payable upon an
acceleration of the maturity thereof or the amount thereof provable in
bankruptcy, or

 

R-1

 

change any place of
payment where, or the currency in which, any Security of such series or
any premium or the interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the due date
therefor; (ii) reduce the percentage in principal amount of outstanding
Securities of the relevant series the consent of whose Holders is required
for any such supplemental indenture, for any waiver of compliance with certain
provisions of the Indenture or certain Defaults and their consequences provided
for in the Indenture; (iii) waive a Default in the payment of Principal of
or interest on any Security of such Holder; or (iv) modify any of the
provisions of the Indenture governing supplemental indentures with the consent
of Securityholders except to increase any such percentage or to provide that
certain other provisions of the Indenture cannot be modified or waived without
the consent of the Holder of each outstanding Security affected thereby.

 

The Indenture provides that, subject to certain
conditions, the Holders of at least a majority in principal amount (or, if any
Securities are Original Issue Discount Securities, such portion of the
Principal as is then accelerable) of the outstanding Securities of all series affected
(voting as a single class), by notice to the Trustee, may waive an
existing Default or Event of Default with respect to the Securities of such series and
its consequences, except a Default in the payment of Principal of or interest
on any Security or in respect of a covenant or provision of the Indenture which
cannot be modified or amended without the consent of the Holder of each
outstanding Security affected. Upon any such waiver, such Default shall cease
to exist, and any Event of Default with respect to the Securities of such series arising
therefrom shall be deemed to have been cured, for every purpose of the
Indenture; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereto.

 

The Indenture provides that a series of Securities
may include one or more tranches (each a “tranche”) of Securities,
including Securities issued in a Periodic Offering. The Securities of different
tranches may have one or more different terms, including authentication
dates and public offering prices, but all the Securities within each such
tranche shall have identical terms, including authentication date and public
offering price. Notwithstanding any other provision of the Indenture, subject
to certain exceptions, with respect to sections of the Indenture concerning the
execution, authentication and terms of the Securities, redemption of the
Securities, Events of Default of the Securities, defeasance of the Securities
and amendment of the Indenture, if any series of Securities includes more
than one tranche, all provisions of such sections applicable to any series of
Securities shall be deemed equally applicable to each tranche of any series of
Securities in the same manner as though originally designated a series unless
otherwise provided with respect to such series or tranche pursuant to a
board resolution or a supplemental indenture establishing such series or
tranche.

 

No reference herein to the Indenture and no provision
of this Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Redemption Amount of
this Note in the manner, at the place, at the time and in the coin or currency
herein prescribed.

 

The Securities are issuable initially only in
registered form without coupons in denominations of $5,000 and any
integral multiples of $1,000 in excess of that amount at the office or agency
of the Company in the Borough of Manhattan, The City of New York, and in the
manner and subject to the limitations provided in the Indenture.

 

R-2

 

The Securities will not be redeemable at the option of
the Company prior to maturity.

 

The Company will not be required to pay any Additional
Amounts on the Securities.

 

Maturity
Date

 

The Maturity Date of the Securities is March 30, 2007 (the “Maturity
Date”); however, if a market disruption event exists on the Valuation Date, as
determined by the Calculation Agent, the Maturity Date will be the later of March 30,
2007, and the third business day following the date on which the closing price
for the reference shares is calculated.

 

Redemption
Amount

 

The Company will redeem
the Securities at maturity for a redemption amount in cash that will be based
on the performance of the reference shares during the term of the Securities
(the “redemption amount”):

 

(1)          If the closing price of
the reference shares on the New York Stock Exchange (the “relevant exchange”)
is not less than the knock-in level, which is 70% of the Initial Share Price,
on any day from but not including March 28, 2006, which is the initial
setting date, to and including March 26, 2007 (the “Valuation Date”), the
redemption amount will equal a cash payment equal to 100% of the principal
amount of the Securities.

 

(2)          If (i) the closing
price of the reference shares on the relevant exchange is less than the
knock-in level on any day from but not including March 28, 2006, which is
the initial setting date, to and including the Valuation Date and (ii) the
closing price of the reference shares on the relevant exchange on the Valuation
Date, which we refer to as the final share price, is greater than or equal to
the Initial Share Price, the redemption amount will equal a cash payment equal
to 100% of the principal amount of the Securities.

 

(3)          Otherwise, the
redemption amount will be the physical delivery amount. The physical delivery
amount will be the number of reference shares per $1,000 principal amount of
Securities equal to $1,000 divided by the Initial Share Price. The market value
of the physical delivery amount will be less than the principal amount of the
Securities and may be zero.

 

The “Initial Share Price”
is $87.73.

 

A “business day” means a
day, other than a Saturday, Sunday or a day on which banking institutions in
New York, New York are generally authorized or obligated by law, regulation or
executive order to close and that is also a Trading Day.

 

A “trading day” means any
day, as determined by the Calculation Agent, on which trading is generally
conducted for reference shares (or, but for the occurrence of a market
disruption event, would have been generally conducted) on the relevant exchange
and for options

 

R-3

 

and other derivative instruments on the reference
shares on the Chicago Mercantile Exchange and the Chicago Board Options
Exchange, which we refer to collectively as the related exchanges, other than a
day on which the relevant exchange or the related exchanges are scheduled to
close prior to their regular weekday closing time.

 

Market
Disruption Events

 

If no final share price is available on the Valuation
Date because of a market disruption event, as determined by the Calculation
Agent in its sole discretion, the Calculation Agent may postpone the
calculation of the final share price until the earlier of the date such market
disruption event has ceased or three trading days after the Valuation Date, as
the case may be. On such third trading day, in the event there still
exists a market disruption event, the Calculation Agent will determine the
final share price using its good faith estimate of the value for the reference
shares as of the closing time on the relevant exchange on such date. If a
market disruption event exists on the Valuation Date, the Maturity Date of the
Securities will be the later of the original Maturity Date and the third
business day following the day on which the final share price is calculated. No
interest will accrue or other payment be payable because of any postponement of
the Maturity Date.

 

A “market disruption event” means the occurrence or
existence of any suspension of or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by any relevant exchange or
market or otherwise) of, or the unavailability, through a recognized system of
public dissemination of transaction information, of accurate price, volume or
related information in respect of (a) the reference shares or (b) any
options or futures contracts, or any options on such futures contracts,
relating to the reference shares if, in each case, in the determination of the
Calculation Agent, in its sole discretion, any such suspension, limitation or
unavailability is material.

 

For purposes of determining whether a market
disruption event has occurred:  (1) a
limitation on the hours or number of days of trading will not constitute a
market disruption event if it results from an announced change in the regular
business hours of the relevant exchange; (2) a decision permanently to
discontinue trading in the relevant options or futures contract will not
constitute a market disruption event; (3) limitations pursuant to New York
Stock Exchange Rule 80A—Index Arbitrage Trading Restrictions (or any
applicable rule or regulation enacted or promulgated by the New York Stock
Exchange, any other self-regulatory organization or the SEC of similar scope as
determined by the Calculation Agent) on trading during significant market
fluctuations will constitute a market disruption event; (4) a suspension
of trading in an options contract on the reference shares by the primary
securities market trading in such options, if available, by reason of (x) a
price change exceeding limits set by such securities exchange or market, (y) an
imbalance of orders relating to such contracts or (z) a disparity in bid and
ask quotes relating to such contracts will constitute a suspension or material
limitation of trading in options contracts related to the reference shares
notwithstanding that such suspension or material limitation is less than two
hours; (5) a suspension, absence or material limitation of trading on the
primary securities market on which options contracts related to the reference
shares are traded will not include any time when such securities market is
itself closed for trading under ordinary circumstances; and (6) a “suspension
or material limitation” on an exchange or in a market will include a suspension
or material limitation of trading by one class

 

R-4

 

of investors provided
that such suspension continues for more than two hours of trading or during the
last one-half hour period preceding the close of trading on the relevant
exchange or market (but will not include limitations imposed on certain types
of trading under New York Stock Exchange Rule 80A or any applicable rule or
regulation enacted or promulgated by the New York Stock Exchange, NASDAQ, any
other self-regulatory organization or the SEC of a similar scope or as a
replacement for Rule 80A, as determined by the Calculation Agent) and will
not include any time when such exchange or market is closed for trading as part of
such exchange’s or market’s regularly scheduled business hours.

 

Based on the information currently available to us, on
October 27, 1997, the New York Stock Exchange suspended all trading during
the one-half hour period preceding the close of trading pursuant to New York
Stock Exchange Rule 80B and, on each of September 11, 12, 13 and 14,
2001, the New York Stock Exchange suspended all trading for the entire day due
to certain terrorist activity. If any such suspension of trading occurred
during the term of the Securities, it would constitute a market disruption
event. The existence or non-existence of these circumstances, however, is not
necessarily indicative of the likelihood of these circumstances arising or not
arising in the future.

 

Antidilution
Adjustments

 

General

 

The Calculation Agent will adjust
the Initial Share Price and the physical delivery amount if certain corporate
actions and other events described below (each of which, an “adjustment event”),
occur, and the Calculation Agent determines that such adjustment event has a
diluting or concentrative effect on the theoretical value of the reference
shares. Set forth below are examples of how adjustment events may lead to
adjustments to the Initial Share Price and the physical delivery amount.

 

Upon the occurrence of an
adjustment event that the Calculation Agent determines has a diluting or
concentrative effect on the theoretical value of the reference shares, for
purposes only of determining whether (i) the price of the reference shares
is less than or equal to the knock-in level and (ii) the final share price
is less than or equal to the Initial Share Price, the Calculation Agent will
typically adjust the Initial Share Price according to the following formula:

 

	
  adjusted initial share price = initial share price

  	
  X

  	
  prior physical delivery amount

  	
   

  
	
  adjusted physical delivery amount

  	
   

  

 

The physical delivery amount will
be adjusted by the Calculation Agent as set forth in the specific examples
below.

 

The adjustments described below do
not cover all events that could affect the value of the Securities.

 

R-5

 

Adjustments

 

If an adjustment event occurs and the Calculation Agent
determines that the event has a diluting or concentrative effect on the
theoretical value of the reference shares, the Calculation Agent will calculate
a corresponding adjustment to the Initial Share Price and the physical delivery
amount as the Calculation Agent determines appropriate to account for that
diluting or concentrative effect. The Calculation Agent will also determine the
effective date of that adjustment, and the replacement of the reference shares,
if applicable, in the event of consolidation or merger. Upon making any such
adjustment, the Calculation Agent will give notice as soon as practicable to
the Trustee, stating the adjustment of the Initial Share Price and physical
delivery amount.

 

If more than one adjustment event occurs, the Calculation
Agent will make an adjustment for each such adjustment event in the order in
which they occur, and on a cumulative basis. Accordingly, having adjusted the
Initial Share Price and the physical delivery amount for the first such
adjustment event, the Calculation Agent will adjust the Initial Share Price and
the physical delivery amount for the second adjustment event, applying the
required adjustment to the Initial Share Price and the physical delivery amount
as already adjusted for the first adjustment event, and so on for each
subsequent adjustment event.

 

The Calculation Agent will not have to adjust the Initial
Share Price and the physical delivery amount for any adjustment event unless the adjustment would result in a
change to the Initial Share Price or the physical delivery amount of at least
0.1% in the Initial Share Price or the physical delivery amount that would
apply without the adjustment. The Initial Share Price and the physical delivery
amount resulting from any adjustment would be rounded up or down, as
appropriate, to, in the case of the Initial Share Price, the nearest cent, and,
in the case of the physical delivery amount, the nearest thousandth, with
one-half cent and five ten-thousandths, respectively, being rounded upwards.

 

If an adjustment event requiring antidilution adjustment
occurs, the Calculation Agent will make any adjustments with a view to
offsetting, to the extent practical, any change in the Holders’ economic
position relative to the Securities that results solely from that event. The
Calculation Agent may, in its sole discretion, modify any antidilution
adjustments as necessary to ensure an equitable result.

 

The Calculation Agent has sole discretion in making all
determinations with respect to antidilution adjustments, including any
determination as to whether an adjustment event requiring an antidilution
adjustment has occurred, as to the nature of the adjustment required and how it
will be made. In the absence of manifest error, those determinations will be
conclusive for all purposes and will be binding on the Holders and the Company,
without any liability on the part of the Calculation Agent. Upon written
request, the Calculation Agent will provide information about any adjustments
it makes.

 

R-6

 

Events requiring an antidilution
adjustment

 

The following is a list of adjustment events that may require
an antidilution adjustment:

 

(a)                                  a subdivision, consolidation
or reclassification of the reference shares or a free distribution or dividend
of any reference shares to existing holders of reference shares by way of
bonus, capitalization or similar issue;

 

(b)                                 a dividend or other
distribution to existing holders of reference shares of (i) the reference
shares, (ii) other share capital or securities granting the right to
payment of dividends equally or proportionately with such payments to holders
of the reference shares or (iii) any other type of securities, rights or
warrants in any case for payment (in cash or otherwise) at less than the
prevailing market price as determined by the Calculation Agent;

 

(c)                                  the declaration by the
issuer of the reference shares of an extraordinary or special dividend or other
distribution whether in cash or reference shares or other assets;

 

(d)                                 a repurchase of its common
stock by the issuer of the reference shares whether out of profits or capital
and whether the consideration for such repurchase is cash, securities or
otherwise;

 

(e)                                  a consolidation of the
issuer of the reference shares with another company or merger of the issuer of
the reference shares with another company; and

 

(f)                                    any other similar event that
may have a diluting or concentrative effect on the theoretical value of
the reference shares.

 

Certain adjustment events are discussed in
greater detail below.

 

Stock splits

 

A stock split is an increase in the
number of a corporation’s outstanding shares of stock without any change in its
stockholders’ equity. As a result of a stock split, each outstanding share will
be worth less.

 

If the reference shares are subject to a stock split, the
Calculation Agent will adjust the physical delivery amount to equal the sum of
the prior physical delivery amount—i.e., the physical delivery amount before
that adjustment—and the product of (i) the number of additional shares
issued in the stock split with respect to each of the reference shares times (ii) the
prior physical delivery amount.

 

Reverse stock splits

 

A reverse stock split is a decrease in the number of a
corporation’s outstanding shares of stock without any change in its
stockholders’ equity. As a result of a reverse stock split, each outstanding
share will be worth more.

 

If the reference shares are subject to a reverse stock
split, the Calculation Agent will adjust the physical delivery amount to equal
the product of the prior physical delivery amount and the quotient of (i) the
number of reference shares outstanding immediately after the reverse

 

R-7

 

stock split becomes effective divided by (ii) the
number of reference shares outstanding immediately before the reverse stock
split becomes effective.

 

Stock dividends

 

In a stock dividend, a corporation issues additional shares
of its stock to all holders of its outstanding stock in proportion to the
shares they own. As a result of a stock dividend, each outstanding share will
be worth less.

 

If the reference shares are subject to a stock dividend
payable in the reference shares, then the Calculation Agent will adjust the
physical delivery amount to equal the sum of the prior physical delivery amount
and the product of (i) the number of additional shares issued in the stock
dividend with respect to each of the reference shares times (ii) the prior
physical delivery amount.

 

Other dividends and distributions

 

If the issuer of the reference shares declares a dividend
to be distributed to holders of record of the reference shares as of a date
falling in the period that begins on the day immediately following the
Valuation Date and ends on the day immediately prior to the Maturity Date, any
such dividend will not be paid to Holders.

 

The physical delivery amount will not be adjusted to
reflect any dividends or distributions paid with respect to the reference
shares, other than (i) stock dividends described above; (ii) issuances
of transferable rights and warrants as described in “—Transferable rights and
warrants” below; and (iii) extraordinary dividends as described below.

 

A dividend or other distribution with respect to the
reference shares will be deemed to be an “extraordinary dividend” if its per
share value exceeds that of the immediately preceding non-extraordinary
dividend, if any, for the reference shares by an amount equal to at least
10.00% of the market price of the reference shares on the business day before
the extraordinary dividend date. The ex dividend date for any dividend or other
distribution is the first day on which the reference shares trade without the
right to receive that dividend or distribution. If an extraordinary dividend
occurs, the Calculation Agent will adjust the physical delivery amount to equal
the product of (1) the prior physical delivery amount times (2) a
fraction, the numerator of which is the market price of the reference shares on
the business day before the ex dividend date and the denominator of which is
the amount by which that market price exceeds the extraordinary dividend
adjustment amount. The “extraordinary dividend adjustment amount” with respect
to an extraordinary dividend for the reference shares equals:  (i) for an extraordinary dividend that
is paid in lieu of a regular quarterly dividend, the amount of the
extraordinary dividend per share of the reference shares minus the amount per
share of the immediately preceding dividend, if any, that was not an
extraordinary dividend for the reference shares, or (ii) for an
extraordinary dividend that is not paid in lieu of a regular quarterly
dividend, the amount per share of the extraordinary dividend.

 

To the extent an extraordinary dividend is not paid in
cash, the value of the non-cash component will be determined by the Calculation
Agent. A distribution on the reference shares that is a dividend payable in the
reference shares, an issuance of rights or warrants or a spin-off

 

R-8

 

event and that is also an extraordinary dividend will
result in an adjustment to the physical delivery amount only as described in “Stock
dividends” above, “Transferable rights and warrants” below or “Reorganization
events” below, as the case may be, and not as described here.

 

Transferable rights and warrants

 

If the issuer of the reference shares issues transferable
rights or warrants to all holders of the reference shares to subscribe for or
purchase the reference shares at an exercise price per share that is less than
the market price of the reference shares on the business day before the
extraordinary dividend date for the issuance, then the physical delivery amount
will be adjusted by multiplying the prior physical delivery amount by the
following fraction:  (i) the
numerator will be the sum of the number of reference shares outstanding at the
close of business on the day before that ex dividend date and the total number
of additional reference shares offered for subscription or purchase under those
transferable rights or warrants, and (ii) the denominator will be the sum
of the number of reference shares outstanding at the close of business on the
day before that ex dividend date and the product of (1) the total number
of additional reference shares offered for subscription or purchase under the
transferable rights or warrants times (2) the exercise price of those
transferable rights or warrants divided by the market price on the business day
before that extraordinary dividend date.

 

Reorganization events

 

Each of the following may be a reorganization
event:  (i) the reference shares are
reclassified or changed; (ii) the issuer of the reference shares has been
subject to a merger, consolidation or other combination and either is not the
surviving entity or is the surviving entity but all outstanding reference
shares are exchanged for or converted into other property; (iii) a
statutory share exchange involving outstanding reference shares and the
securities of another entity occurs, other than as part of an event
described above; (iv) the issuer of the reference shares effects a
spin-off (i.e., issues to all holders of reference shares common stock equity
securities of another issuer) other than as part of an event described
above; (v) the issuer of the reference shares sells or otherwise transfers
its property and assets as an entirety or substantially as an entirety to
another entity (each of the events in clauses (i) through (v) above,
a “merger event”); (vi) a takeover offer, tender offer, exchange offer,
solicitation, proposal or other event by any entity or person that results in
such entity or person purchasing, or otherwise obtaining or having the right to
obtain, by conversion or other means, not less than a majority of the
outstanding voting reference shares as determined by the Calculation Agent,
based upon the making of filings with governmental or self-regulatory agencies
or such other information as the Calculation Agent deems relevant, which we
refer to as a tender offer; (vii) the exchange on which the reference
shares trade announces that pursuant to the rules of such exchange, the
reference shares cease (or will cease) to be listed, traded or publicly quoted
on it for any reason (other than a merger event or tender offer) and are not
immediately re-listed, re-traded or re-quoted on another major U.S. exchange or
quotation system (a “delisting event”); and (viii) the issuer of the
reference shares is liquidated, dissolved or wound up or is subject to a
proceeding under any applicable bankruptcy, insolvency or other similar law
(each, an “insolvency event”).

 

R-9

 

Adjustments for reorganization events

 

If a merger event occurs and a holder of the reference
shares that makes no election, vote or decision in connection with such merger
event would receive as full or partial consideration ordinary or common shares
of any person (other than the issuer of the reference shares) that are publicly
quoted, traded or listed on any major U.S. exchange or quotation system (the “new
shares”), then the Calculation
Agent will adjust the physical delivery amount so as to consist of the amount
and type of property distributed in the reorganization event in respect of the
prior physical delivery amount. In this instance, if more than one type of
property is distributed, the physical delivery amount will be adjusted so as to
consist of each type of property distributed, in a proportionate amount, so
that the value of each type of property comprising the new physical delivery
amount as a percentage of the total value of the new physical delivery amount
equals the value of that type of property as a percentage of the total value of
all of the property distributed in the reorganization event.

 

If a tender offer occurs, and the holder of the reference
shares can elect to receive new shares as full or partial consideration in
respect of such tender offer, then the Calculation Agent will adjust the
physical delivery amount in accordance with the preceding paragraph.

 

If a merger event occurs, and the consideration in respect
of such event does not consist in full or in part of new shares (or in the
case of a tender offer, a holder of the reference shares would not be able to
elect to receive in full or in part any new shares as consideration in
respect of such tender offer), then the Calculation Agent will accelerate the
Maturity Date to the day which is four business days after the approval date
(as defined below). The amount payable at maturity will be determined as
described below under “Events of default and acceleration.”  The approval date is the closing date of a
merger event or, in the case of a tender offer, the date on which the person or
entity making the tender offer acquires or acquires the right to obtain the
relevant percentage of reference shares.

 

If a delisting event or an insolvency event occurs, the
Calculation Agent will accelerate the Maturity Date to the day which is four
business days after the announcement date (as defined below). On the Maturity
Date, the Company will pay to each Holder the physical delivery amount and for
the purposes of such calculation, the final share price will be deemed to be
the closing price of the reference shares on the business day immediately prior
to the announcement date. The announcement date means, in the case of a
delisting event, the day of the first public announcement by the relevant
exchange that the reference shares will cease to trade or be publicly quoted on
such exchange, or, in the case of an insolvency event, the day of the first
public announcement of the institution of a proceeding or presentation of a
petition or passing of a resolution (or other analogous procedure in any
jurisdiction) that leads to an insolvency event with respect to the issuer of
the reference shares.

 

If a merger event or tender offer occurs, coupon payment
amounts will accrue on the Securities through the approval date and be paid on
the accelerated Maturity Date. Such coupon payments will be calculated using a
360-day year comprised of twelve 30-day months. If a delisting event or an
insolvency event occurs, the Company will pay all remaining scheduled unpaid
coupon payments due to a Holder through the scheduled Maturity Date on the
accelerated Maturity Date.

 

R-10

 

For the purposes of making an adjustment required by a
reorganization event, the Calculation Agent will determine the value of each
type of property distributed in the distribution, in its sole discretion. For
any property distributed consisting of new shares, the Calculation Agent will
use the closing price of the new shares on the approval date. The Calculation
Agent may value other types of property in any manner it determines, in
its sole discretion, to be appropriate. If a holder of the common stock of the
issuer of the reference shares elects to receive different types or
combinations of types of property in the reorganization event, such property
will consist of the types and amounts of each type distributed to a holder that
makes no election, as determined by the Calculation Agent.

 

If a reorganization event occurs and the Calculation Agent
adjusts the physical delivery amount to consist of the property distributed in
the reorganization event as described above, the Calculation Agent will make
further antidilution adjustments for later events that affect such property, or
any component of such property, comprising the new physical delivery amount. The
Calculation Agent will do so to the same extent that it would make adjustments
if the common stock of the issuer of the reference shares was outstanding and
was affected by the same kinds of events. If a subsequent reorganization event
affects only a particular component of the physical delivery amount, the
required adjustment will be made with respect to that component, as if it alone
were the physical delivery amount. For example, if the issuer of the reference
shares merges into another company and each share of its common stock is
converted into the right to receive two new shares of the surviving company and
a specified amount of cash, the physical delivery amount will be adjusted to
consist of two new shares and the specified amount of cash per reference share.
The Calculation Agent will adjust the common share component of the new
physical delivery amount to reflect any later stock split or other event,
including any later reorganization event, that affects the new shares, to the
extent described in this section entitled “Antidilution adjustments” as if
the new shares were the common stock of the issuer of the reference shares. In
that event, the cash component will not be adjusted but will continue to be a
component of the physical delivery amount. Consequently, Holders who receive
reference shares at maturity will be entitled to receive, for each $1,000 of
the outstanding principal amount of the Securities being exchanged, all
components of the physical delivery amount in effect on the exchange date, with
each component having been adjusted on a sequential and cumulative basis for
all relevant events requiring adjustment on or before the exchange date.

 

If a reorganization event occurs,
the property distributed in the event will be substituted for the common stock
of the issuer of the reference shares as described above. Consequently,
references to the common stock of the issuer of the reference shares mean any
property that is distributed in a reorganization event and comprises the
adjusted physical delivery amount. Similarly, references to the issuer of the
reference shares mean any successor entity in a reorganization event.

 

Events
of Default and Acceleration

 

In case an Event of Default (as defined in the
Indenture) with respect to the Securities shall have occurred and be
continuing, the amount declared due and payable upon any acceleration of the
Securities (in accordance with the acceleration provisions set forth in the

 

R-11

 

prospectus) will be
determined by the Calculation Agent and will equal, for each security, the
arithmetic average, as determined by the Calculation Agent, of the fair market
value of the Securities as determined by at least three but not more than five
broker-dealers (which may include Credit Suisse Securities (USA) LLC or
any of the Company’s other subsidiaries or affiliates) as will make such fair
market value determinations available to the Calculation Agent.

 

The Company, the Trustee and any agent of the Company
or the Trustee may deem and treat the registered Holder hereof as the
absolute owner of this Note (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon) for the
purpose of receiving payment of, or on account of, the redemption amount
hereof, and for all other purposes, and neither the Company nor the Trustee nor
any agent of the Company or the Trustee shall be affected by any notice to the
contrary.

 

No recourse under or upon any obligation, covenant or
agreement contained in the Indenture or any indenture supplemental thereto or
in any Note, or because of any indebtedness evidenced thereby, shall be had
against any incorporator as such, or against any past, present or future
stockholder, officer, director or employee, as such, of the Company or of any
successor, either directly or through the Company or any successor, under any rule of
law, statute or constitutional provision or by the enforcement of any
assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance hereof and as part of
the consideration for the issue hereof.

 

The Calculation Agent for the Securities (the “Calculation
Agent”) is Credit Suisse International. The calculations and determinations of
the Calculation Agent will be final and binding upon all parties (except in the
case of manifest error). The Calculation Agent will have no responsibility for
good faith errors or omissions in its calculations and determinations, whether
caused by negligence or otherwise.

 

Terms used herein that are defined in the Indenture
and not otherwise defined herein shall have the respective meanings assigned
thereto in the Indenture.

 

The laws of the State of New York (without regard to
conflicts of laws principles thereof) shall govern this Note.

 

R-12

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

 

[PLEASE INSERT SOCIAL
SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

 

 

[PLEASE PRINT OR TYPE
NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

 

 

the within Note and all
rights thereunder, hereby irrevocably constituting and appointing

 

                                                                                                                                                                                                 Attorney
to transfer such Note on the books of the Issuer, with full power of
substitution in the premises.

 

	
   

  	
  Signature:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:The
  signature to this assignment must correspond

  with the name as written upon the face of the within Note in

  every particular without alteration or enlargement or any

  change whatsoever.

  
	
   

  	
   

  
	
   

  	
   

  
					

 

R-13

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