Document:

QuickLinks
 -- Click here to rapidly navigate through this document
Exhibit 4.7  

BAUSCH &
LOMB INCORPORATED 

Sixth
Supplemental Indenture 

Dated
as of December     , 2004 

Citibank,
N.A.,

Trustee 

2004
Senior Convertible Securities due 2023 

  

	 ARTICLE 1    2004 SENIOR CONVERTIBLE SECURITIES DUE 2023	 	1
	 	
 Section 1.01	
 	

Establishment	
 	

1
	 	Section 1.02	 	Definitions	 	2
	 	Section 1.03	 	Payment of Principal and Interest	 	7
	 	Section 1.04	 	Denominations	 	10
	 	Section 1.05	 	Global Securities	 	10
	 	Section 1.06	 	Redemption at the Option of the Company	 	10
	 	Section 1.07	 	Purchase at the Option of the Holder Upon a Fundamental Change	 	11
	 	Section 1.08	 	Purchase of Senior Convertible Notes at the Option of the Holder	 	12
	 	Section 1.09	 	Further Conditions and Procedures for Purchase Upon a Fundamental Change and Purchase at the Option of the Holder	 	12
	 	Section 1.10	 	Conversion of Senior Convertible Notes	 	16
	 	Section 1.11	 	Additional Events of Default; Withholding Notice; Rescission	 	26
	 	Section 1.12	 	Amendment; Supplement; and Waiver	 	26
	 	Section 1.13	 	Register of Securities; Paying Agent; Conversion Agent	 	27
	 	Section 1.14	 	Calculations in Respect of the 2004 Senior Convertible Notes	 	27
	 	Section 1.15	 	Tax Treatment	 	28
	 	Section 1.16	 	Transfer and Exchange	 	28
	
 ARTICLE 2    MISCELLANEOUS PROVISIONS	
 	

30
	 	
 Section 2.01	
 	

Recitals by the Company	
 	

30
	 	Section 2.02	 	Ratification and Incorporation of Original Indenture	 	30
	 	Section 2.03	 	Executed in Counterparts	 	30
	 	Section 2.04	 	Governing Law	 	30

	
 Exhibit A	
 	

Form of Floating Rate Convertible Senior Note
	Exhibit B	 	Certificate of Authentication of Floating Rate Convertible Senior Note
	Exhibit C	 	Projected Payment Schedule
	Exhibit D	 	Table of Additional Shares

	(1)
	This
Table of Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions. 

i

        THIS SIXTH SUPPLEMENTAL INDENTURE is made as of the    day of December 2004, by and between BAUSCH & LOMB INCORPORATED, a corporation duly organized and
existing under the laws of the State of New York (herein referred to as the "Company", which term includes any successor Person under the Indenture hereinafter referred to) having its principal office
at One Bausch & Lomb Place, Rochester, New York 14604 and CITIBANK, N.A., a national banking association duly organized and existing under the laws of the United States of America, as trustee
(hereinafter referred to as the "Trustee", which term includes any successor trustee under the Indenture). 

W
I T N E S S E T H: 

        WHEREAS,
the Company and the Trustee have heretofore entered into an Indenture, dated as of September 1, 1991, as amended by Supplemental Indenture No. 1, dated
May 13, 1998, Supplemental Indenture No. 2, dated July 29, 1998, Supplemental Indenture No. 3, dated November 21, 2002, Supplemental Indenture No. 4, dated
August 1, 2003, Supplemental Indenture No. 5, dated August 4, 2003 (the "Original Indenture"), with the Trustee; 

        WHEREAS,
the Original Indenture is incorporated herein by this reference and the Original Indenture, as may be amended and supplemented to the date hereof, including by this Sixth
Supplemental Indenture, is herein called the "Indenture"; 

        WHEREAS,
under the Indenture, a new series of Securities may at any time be established in accordance with the provisions of the Indenture and the terms of such series may be described
by a supplemental indenture executed by the Company and the Trustee; 

        WHEREAS,
the Company hereby proposes to create under the Indenture a new series of Securities; 

        WHEREAS,
additional Securities of other series hereafter established, except as may be limited in the Indenture as at the time supplemented and modified, may be issued from time to time
pursuant to the Indenture as at the time supplemented and modified; 

        WHEREAS,
the Company will offer to exchange all of its Floating Rate Convertible Senior Notes due 2023, issued pursuant to the Original Indenture, for the 2004 Senior Convertible Notes
issuable hereunder, together with an exchange fee of $2.50 per $1,000 of original principal amount, as described in the Registration Statement; and 

        WHEREAS,
all conditions necessary to authorize the execution and delivery of this Sixth Supplemental Indenture and to make it a valid and binding obligation of the Company have been done
or performed. 

        NOW,
THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows: 

 
 

ARTICLE 1    
    
    2004 SENIOR CONVERTIBLE SECURITIES DUE 2023    
    

        SECTION
1.01    Establishment.    There is hereby established a new series of Securities to be issued under the
Indenture, to be designated as the Company's 2004 Senior Convertible Securities due 2023 (the "2004 Senior Convertible Notes"). 

        There
are to be authenticated and delivered up to $160,000,000 principal amount of the 2004 Senior Convertible Notes, in an amount equal to the aggregate original principal amount of the
Company's Floating Rate Convertible Senior Notes due 2023 accepted for exchange in the Exchange Offer, and no further Senior Convertible Notes shall be authenticated and delivered except as provided
by Section 304, 305, 306, 906 or 1106 of the Original Indenture, the last paragraph of Section 301 thereof, Section 1.09(f) hereof and Section 1.10(c)(iv) hereof.
The 2004 Senior Convertible Notes shall be issued in fully registered form without coupons. 

 

        The
2004 Senior Convertible Notes shall be in substantially the form set out in Exhibit A hereto, and the form of the Trustee's Certificate of Authentication for the 2004 Senior
Convertible Notes shall be in substantially the form set forth in Exhibit B hereto. 

        Each
2004 Senior Convertible Note shall be dated the date of authentication thereof and shall bear interest from August 1, 2004 or from the most recent Interest Payment Date to
which interest has been paid or duly provided for. 

        The
2004 Senior Convertible Notes issued on the date hereof will be: (i) offered and issued by the Company in exchange for the Company's Floating Rate Convertible Senior Notes due
2023 issued pursuant to the Fifth Supplemental Indenture in accordance with the terms of an issuer tender offer filed with the Securities and Exchange Commission, and (ii) registered for such
exchange on a Registration Statement on Form S-4 filed with the Securities and Exchange Commission. 

        SECTION
1.02    Definitions.    The following defined terms used herein shall, unless the context otherwise requires,
have the meanings specified below for purposes of the 2004 Senior Convertible Notes. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the
Original Indenture. 

        "Accreted
Principal Amount" has the meaning provided in Section 1.03(c). 

        "Additional
Shares" means the additional shares of Common Stock increasing the Conversion Rate in the event of a Cash Take-Over Transaction as set forth in
Section 1.10(g)(vii). 

        "Business
Day" means, with respect to any security (including the 2004 Senior Convertible Notes), any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on
which commercial banks are authorized or required by law, regulation or executive order to close in The City of New York or a day on which the Corporate Trust Office of the Trustee is closed. 

        "Calculation
Agent" means Citibank, N.A. and any successor Calculation Agent hereunder. 

        "Cash
Take-Over Transaction" means a Change of Control described in clause (ii) of the definition of Change of Control where 10% or more of the consideration for the
Common Stock in the transaction consists of cash or securities or other property which are not Publicly Traded Securities. 

        "Change
of Control" will be deemed to have occurred when: 

        (i)    any
"person" or "group" within the meaning of Section 13(d) and 14(d) of the Exchange Act other than the Company, its subsidiaries or its or their employee
benefit plans, is or becomes the direct or indirect ultimate "beneficial owner," as defined in Rule 13d-3 and 13d-5 under the Exchange Act, of the Company's common
equity representing more than 50% of the combined voting power of the Company's then outstanding common equity entitled to vote generally in the election of directors; 

        (ii)   consummation
of any share exchange, consolidation or merger of the Company pursuant to which the Common Stock will be reclassified into or exchanged into cash,
securities or other property or any sale, assignment, conveyance, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of the
Company and its subsidiaries, taken as a whole, to any person other than the Company or one or more of its subsidiaries; provided, however, that a transaction where the Holders of the Company's common
equity immediately prior to such transaction have directly or indirectly, more than 50% of the combined voting power of all classes of common equity then outstanding of the continuing or surviving
corporation or transferee entitled to vote generally in the election of directors immediately after such event, in substantially the same respective proportions as immediately prior to such
transaction, shall not be a Change of Control; or 

2

 

        (iii)  any
time the Continuing Members of the Company's Board of Directors do not constitute a majority of the Company's Board of Directors (or any successor corporation
thereto) where a Continuing Member is, as of any date of determination, any member of the Company's Board of Directors who: (i) was a member of the Board of Directors as of the date of this
Sixth Supplemental Indenture, or (ii) was nominated for election or elected to the Board of Directors with the approval of a majority of the Continuing Members who were members of the Board of
Directors at the time of such nomination or election. 

        A
Change of Control will not be deemed to have occurred in respect of clauses (i) and (ii) above, however, if either: 

        (i)    the
Closing Sale Price of the Common Stock for any five Trading Days within the 10 consecutive Trading Days ending immediately after the later of the Change of Control
or the public announcement of a Change of Control (in the case of a Change of Control under clause (ii) above), equals or exceeds 110% of the accreted Conversion Price of the 2004 Senior
Convertible Notes in effect on the date of the Change of Control or the public announcement thereof, or 

        (ii)   at
least 90% of the consideration, excluding cash payments for fractional shares, in the transaction or transactions constituting the Change of Control consists of
Publicly Traded Securities and as a result of this transaction or transactions the 2004 Senior Convertible Notes become convertible into cash in
the amount of the Principal Return and such Publicly Traded Securities, excluding cash payments for fractional shares. 

        For
purposes of this Sixth Supplemental Indenture the term capital stock of any Person means any and all shares (including ordinary shares or American Depositary Shares), interests,
participations, or other equivalents, however designated, of corporate stock or other equity participations, including partnership interests, whether general or limited, of such Person and any rights
(other than debt securities convertible or exchangeable into an equity interest), warrants or options to acquire an equity interest in such Person. 

        "Clearstream"
means Clearstream Banking, societe anonyme, Luxembourg. 

        "Closing
Sale Price" of the Common Stock on any Trading Day means the last reported per share sale price (or if the last sale price is not reported, the average of the high and low sale
prices) on such date as reported on the New York Stock Exchange or, if the Common Stock is not then listed on the New York Stock Exchange, such other U.S. national or regional securities exchange on
which the Common Stock is then listed or, if the Common Stock is not listed on a U.S. national or regional securities exchange, as reported by the Nasdaq National Market. If the Common Stock is not
listed for trading on a U.S. national or regional securities exchange and not reported by the Nasdaq National Market on the relevant date, the "Closing Sale Price" will be the last quoted bid price
for the Common Stock in the over-the-counter market on the relevant date as reported by the National Quotation Bureau or similar organization. If the Common Stock is not so
quoted, the "Closing Sale Price" will be the average of the mid-point of the last bid and asked prices for the Common Stock on the relevant date quoted by each of at least three nationally
recognized independent investment banking firms selected by the Company for this purpose. 

        "Common
Stock" means the common stock, $0.40 par value, of the Company. 

        "Company
Purchase Notice" has the meaning provided in Section 1.09(a) hereof. 

        "Company
Purchase Notice Date" has the meaning provided in Section 1.09(a) hereof. 

        "Contingent
Interest" has the meaning provided in Section 1.03(e). 

        "Conversion
Agent" means the Trustee or such other office or agency designated by the Company where Senior Convertible Notes may be presented for conversion. 

3

 

        "Conversion
Date" has the meaning provided in Section 1.10(c)(i) hereof. 

        "Conversion
Price" means $1,000 divided by the Conversion Rate. 

        "Conversion
Rate" has the meaning provided in Section 1.10(b) hereof. 

        "Conversion
Settlement Reference Period" means the ten Trading Day period beginning on the third Trading Day immediately following the Conversion Date, or with respect to any 2004 Senior
Convertible Note which has previously selected for redemption by the Company pursuant to Section 1.06 hereof, the ten Trading Day period beginning on the third Trading Day immediately following
the related Redemption Date. 

        "Conversion
Value" means the product of: (x) the Conversion Rate and (y) the average Closing Sale Price of the Common Stock during the Conversion Settlement Reference
Period. 

        "Current
Market Price" per share of Common Stock on any day means the average of the daily Closing Sale Price per share for the ten consecutive Trading Days ending not later than the
earlier of: the day in question (including upon the occurrence of a Fundamental Change), and the day before the "ex date" with respect to the distribution requiring such computation. As used herein,
the term "ex date," when used with respect to any distribution, shall mean the first date on which the Common Stock trades regular way on the exchange or in the market in which the security trades
without the right to receive such distribution. 

        "Daily
Share Amount" means for each $1,000 Original Principal Amount of the 2004 Senior Convertible Notes on each Trading Day an amount equal to the greater of: (a) zero or
(b) the number of shares of Common Stock equal to (i) the difference of (x) the product of the Closing Sale Price on such Trading Day and the applicable Conversion Rate minus
(y) the Accreted Principal Amount, divided by (ii) the product of ten (10) and the Closing Sale Price on such Trading Day. 

        "Definitive
Securities" has the meaning provided in Section 1.05(a). 

        "Depository"
means DTC, ClearStream or Euroclear, as applicable. 

        "Determination
Date" means the second London Business Day immediately preceding the applicable Interest Reset Date. 

        "DTC"
means The Depository Trust Company, a limited-purpose trust company organized under the New York Banking Law. 

        "Effective
Date" means the date on which a Cash Take-Over Transaction becomes effective or is consummated. 

        "Euroclear"
means Euroclear Bank S.A./N.V., as operator of the Euroclear System. 

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

        "Exchange
Offer" means the offer of the Company to exchange its outstanding Senior Convertible Notes for an equal principal amount of 2004 Senior Convertibles Notes and an exchange fee
of $2.50 for each principal amount of validly tendered Senior Convertible Notes, as described in the Registration Statement. 

        "Expiration
Time" has the meaning provided in Section 1.10(g)(vi) hereof. 

        "Fifth
Supplemental Indenture" means the Original Indenture as amended through the Fifth Supplemental Indenture, dated August 4, 2003, pursuant to which the Senior Convertible
Notes were issued. 

        "Fundamental
Change" will be deemed to have occurred at any time after the Original Issue Date upon a Change of Control or a Termination of Trading. 

4

 

        "Fundamental
Change Purchase Date" has the meaning provided in Section 1.07(a) hereof. 

        "Fundamental
Change Purchase Notice" has the meaning provided in Section 1.07(b)(i) hereof. 

        "Fundamental
Change Purchase Price" has the meaning provided in Section 1.07(a) hereof. 

        "Interest
Payment Date" means each February 1 and August 1 of each year, commencing February 1, 2005. 

        "interest
period" means any six-month period from February 1 to July 31 and August 1 to January 31, as appropriate, commencing with the
six-month period beginning August 1, 2004. 

        "Interest
Reset Date" has the meaning provided in Section 1.03(a). 

        "LIBOR
Business Day" means any day other than Saturday or Sunday or a day on which banking institutions or trust companies in the City of New York are required or authorized to close and
that is also a London Business Day." 

        "London
Business Day" means any day on which dealings in deposits in U.S. dollars are transacted in the London Interbank market. 

        "Net
Share Amount" has the meaning provided in Section 1.10(b)(ii) hereof. 

        "Option
Exercise Date" has the meaning provided in Section 1.03(h) hereof. 

        "Original
Issue Date" means December    , 2004. 

        "Original
Principal Amount" shall mean up to $160,000,000, being the original principal amount of the 2004 Senior Convertible Notes exchanged for the Senior Convertible Notes pursuant to
the Exchange Offer. 

        "Principal
Return" has the meaning provided in Section 1.10(b)(i) hereof. 

        "Public
Acquirer Change of Control" means any event constituting a Cash Take-Over Transaction that would otherwise result in an increase of the Conversion Rate pursuant to
Section 1.10(g)(vii) where the acquirer has Public Acquirer Common Stock and an election is made pursuant to Section 1.10(g)(viii). 

        "Public
Acquirer Common Stock" means any class of common stock which constitute Publicly Traded Securities issued by the acquirer in a Public Acquirer Change of Control or by:
(a) a direct or indirect majority-owned subsidiary of the acquirer, or (b) a corporation that directly or indirectly is the majority owner of the acquirer. 

        "Publicly
Traded Securities" means shares of capital stock traded on a U.S. national securities exchange or quoted on the Nasdaq National Market or which will be so traded or quoted when
issued or exchanged in connection with a Change of Control. 

        "Purchase
Price" means an amount equal to the principal amount of the 2004 Senior Convertible Notes to be purchased plus any accrued and unpaid interest to but excluding the Repurchase
Date. 

        "Purchased
Shares" has the meaning provided in Section 1.10(g)(vi). 

        "Record
Date" means, with respect to any dividend, distribution or other transaction or event in which the Holders of Common Stock have the right to receive any cash, securities or other
property or in which the Common Stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of
shareholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute, contract or otherwise). 

        "Redemption
Date" has the meaning provided in Section 1.06(a) hereof. 

5

 

        "Redemption
Price" has the meaning provided in Section 1.06(a) hereof. 

        "Registration
Statement" means the Registration Statement of the Company on Form S-4 filed with the Securities and Exchange Commission and registering for exchange
pursuant to the Exchange Offer the 2004 Senior Convertible Notes. 

        "Regular
Record Date" means, with respect to each Interest Payment Date, the close of business on January 15 and July 15 immediately preceding such Interest Payment Date
(whether or not a Business Day). 

        "Repurchase
Date" has the meaning provided in Section 1.08(a) hereof. 

        "Repurchase
Notice" has the meaning provided in Section 1.08(b)(i) hereof. 

        "Restated
Principal Amount" has the meaning provided in Section 1.03(h) hereof. 

        "Securities
Act" means the Securities Act of 1933, as amended. 

        "Senior
Convertible Notes" means the Floating Rate Convertible Senior Notes due 2023 issued by the Company pursuant to the terms of the Fifth Supplemental Indenture. 

        "Six
Month LIBOR" has the meaning provided in Section 1.03(a) hereof. 

        "Spin-off
Market Price" per share of the capital stock of, or similar equity interest in, a subsidiary of the Company on any day means the average of the daily Closing Sale
Price for the 10 consecutive Trading Days commencing on and including the sixth Trading Day after the "ex date" with respect to the issuance or distribution requiring such computation. As used herein,
the term "ex date," when used with respect to any issuance or distribution, shall mean the first date on which such capital stock trades regular way on the exchange or in the market in which the
security trades without the right to receive such issuance or distribution. 

        "Stated
Maturity" means August 1, 2023. 

        "Stock
Price" means the price paid for each outstanding share of Common Stock in a Cash Take-Over Transaction if the consideration received by holders of Common Stock in the
Cash Take-Over Transaction consists solely of cash, or if the consideration received by such holders is paid in cash and other securities or property, the average of the Closing Sale Price
of the Common Stock for the five consecutive Trading Days immediately preceding, but not including, the Effective Date. 

        "Tax
Event" means that the Company shall have received an opinion from independent tax counsel experienced in such matters to the effect that as a result of: (a) any amendment to,
or change (including any announced prospective change) in, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein; or
(b) any amendment to, or change in, an interpretation or application of such laws or regulations by any legislative body, court, governmental agency or regulatory authority, in each case which
amendment or change is enacted, promulgated, issued or announced or which interpretation is issued or announced or which action is taken, on or after the date of this Sixth Supplemental Indenture,
there is more than an insubstantial risk that accruals of Accreted Principal Amount payable on the 2004 Senior Convertible Notes either: (x) would not be deductible on a current accrual basis;
or (y) would not be deductible under any other method, in either case in whole or in part, by the Company (by reason of deferral, disallowance, or otherwise) for U.S. federal income tax
purposes. 

        If
any legislative proposal were ever enacted and made applicable to the 2004 Senior Convertible Notes in a manner that would limit the Company's ability to either: (1) deduct the
interest, including the accruals of Accreted Principal Amount, payable on the 2004 Senior Convertible Notes on a current accrual basis; or (2) deduct the interest, including the accruals of
Accreted Principal Amount, payable on the notes under any other method for U.S. federal income tax purposes, such enactment would result in a Tax Event. 

        "Tax
Event Date" has the meaning provided in Section 1.03(h) hereof. 

        "Termination
of Trading" shall be deemed to have occurred if the Common Stock (or other capital stock into which the 2004 Senior Convertible Notes are then convertible for portions of
the Conversion Value in excess of the Accreted Principal Amount) is neither listed for trading on the New York Stock Exchange nor approved for trading on the Nasdaq National Market. 

6

   
        "Trading Day" means (a) if the applicable security is listed on the New York Stock Exchange or other U.S. national securities exchange or admitted for quotation on the Nasdaq
National Market, a day on which the New York Stock Exchange or other U.S. national securities exchange or the Nasdaq National Market, as applicable, is open for trading, or (b) if the
applicable security is not so listed, admitted for trading or quoted, any Business Day. 

        "Trading
Price" means, on any date, the average of the secondary market bid quotations for the 2004 Senior Convertible Notes obtained by the Trustee for $5,000,000 Original Principal
Amount of Senior Convertible Notes at approximately 3:30 p.m., New York City time, on such date from three independent nationally recognized securities dealers selected by the Company; provided
that if at least three such bids cannot reasonably be obtained by the Trustee, but two bids are obtained, then the average of the two bids shall be used, and if only one such bid can reasonably be
obtained by the Trustee, one bid shall be used; and provided further that if the Trustee cannot reasonably obtain at least one bid for $5,000,000 Original Principal Amount of Senior Convertible Notes
from a nationally recognized securities dealer or in the Company's reasonable judgment, the bid quotations are not indicative of the secondary market value of the 2004 Senior Convertible Notes, then
the Trading Price per $1,000 Original Principal Amount of Senior Convertible Notes shall be deemed to be less than 97% of the product of: (a) the applicable Conversion Rate of the Senior
Convertible Notes and (b) the Closing Sale Price on such date. 

        "Trustee"
has the meaning provided in the preamble hereof. 

        "2004
Senior Convertible Notes" has the meaning provided in Section 1.01 hereof. 

        "Yield
Reset Date" means each February 1 and August 1 of each year, commencing August 1, 2010. 

        SECTION
1.03    Payment of Principal and Interest.    (a) The Accreted Principal Amount of the 2004 Senior
Convertible Notes shall be due at Stated Maturity. The 2004 Senior Convertible Notes will bear cash interest on the Original Principal Amount at the annual rate of Six Month LIBOR plus 0.50% reset
semi-annually on each Interest Payment Date (such day being an "Interest Reset Date"); provided that such rate will never be less than 0%, from the August 1, 2004, or from the most
recent date to which interest has been paid or provided for, until August 1, 2010. During such period, the Company will pay cash interest semi-annually in arrears on each Interest
Payment Date to Holders of record at the close of business on each Regular Record Date immediately preceding such Interest Payment Date. The interest rate in effect for the 2004 Senior Convertible
Notes on any day will be (a) if that day is an Interest Reset Date, the interest determined as of the
Determination Date immediately preceding such Interest Reset Date, or (b) if that day is not an Interest Reset Date, the interest rate determined as of the Determination Date immediately
preceding the most recent Interest Reset Date. Each payment of cash interest on the 2004 Senior Convertible Notes will include interest (including Contingent Interest, if any) accrued through the day
immediately preceding the most recent Interest Payment Date (or the Repurchase Date, Redemption Date, Fundamental Change Purchase Date or, in certain circumstances, the Conversion Date, as the case
may be). Any payment required to be made on any day that is not a Business Day will be made on the next succeeding Business Day. 

        LIBOR
will be determined by the Calculation Agent as of the applicable determination date in accordance with the following provisions ("Six-Month LIBOR"): 

        (i)    the
rate for six-month deposits in US dollars commencing on the related Interest Reset Date, that appears on the Moneyline Telerate Page 3750 as of
11:00 A.M., London time, on the interest Determination Date; or 

        (ii)   if
no rate appears on the particular interest Determination Date on the Moneyline Telerate Page 3750, the rate calculated by the Calculation Agent as the arithmetic
mean of at least two offered quotations obtained by the Calculation Agent after requesting the principal London 

7

 

offices
of each of four major reference banks in the London interbank market to provide the Calculation Agent with its offered quotation for deposits in US dollars for the period of six months,
commencing on the related Interest Reset Date, to prime banks in the London interbank market at approximately 11:00 A.M., London time, on that interest Determination Date and in a principal
amount that is representative for a single transaction in US dollars in that market at that time; or 

        (iii)  if
fewer than two offered quotations referred to in clause (ii) are provided as requested, the rate calculated by the Calculation Agent as the arithmetic mean
of the rates quoted at approximately 11:00 A.M., New York time, on the particular interest Determination Date by three major banks in The City of New York selected by the Calculation Agent for
loans in US dollars to leading European banks for a period of six months and in a principal amount that is representative for a single transaction in US dollars in that market at that time; or 

        (iv)  if
the banks so selected by the Calculation Agent are not quoting as mentioned in clause (iii), six-month LIBOR determined on the preceding interest
Determination Date. 

        (v)   "Moneyline
Telerate Page 3750" means the display on Moneyline Telerate (or any successor service) on such page (or any other page as may replace such page on such
service) for the purpose of displaying the London interbank rates of major banks for US dollars. 

        (b)   If
the Stated Maturity date of the 2004 Senior Convertible Notes falls on a day that is not a LIBOR Business Day, the related payment of principal and interest will be
made on the next LIBOR Business Day as if it were made on the date such payment was due, and no interest will accrue on the amounts so payable for the period from and after such Stated Maturity date
to the next LIBOR Business Day. If any Interest Reset Date or Interest Payment Date (other than at the date of Stated Maturity) would otherwise be a day that is not a LIBOR Business Day, that Interest
Reset Date and Interest Payment Date will be postponed to the next date that is a LIBOR Business Day, except that if such LIBOR Business Day is in the next calendar month, such Interest Reset Date and
Interest Payment Date (other than at the date of Stated Maturity) shall be the immediately preceding LIBOR Business Day. 

        (c)   Until
August 1, 2010, the accreted principal amount (the "Accreted Principal Amount") of a 2004 Senior Convertible Note will be equal to the Original Principal
Amount of $1,000. Beginning August 1, 2010, the 2004 Senior Convertible Note shall not bear interest, except as specified in this paragraph. From such date, the Original Principal Amount shall
commence increasing daily by the annual rate of Six Month LIBOR plus 0.50% reset on each Interest Reset Date; provided that such rate will never be less than 0%, to produce the Accreted Principal
Amount. The Accreted Principal Amount will compound semi-annually, not daily. On Stated Maturity, the Holder of this 2004 Senior Convertible Note will receive the fully Accreted Principal
Amount of this 2004 Senior Convertible Note on such date, unless the 2004 Senior Convertible Note has been earlier redeemed, repurchased or converted. Unless cash interest is payable as provided in
Section 1.03(a) or (h) hereof, the accrued yield shall be added to the Accreted Principal Amount per Senior Convertible Note as of the day preceding the most recent Yield Reset Date. The
yield will be calculated using the actual number of days elapsed between the Yield Reset Dates divided by 360. 

        (d)   If
the Accreted Principal Amount hereof or any portion of such Accreted Principal Amount is not paid when due (whether upon acceleration pursuant to Section 502
of the Original Indenture, upon the date set for payment of the Redemption Price, upon the date set for payment of the Purchase Price or Fundamental Change Purchase Price or upon the Stated Maturity
of the 2004 Senior Convertible Notes) or if installments of cash interest due hereon as provided in Section 1.03(a) or (h) are not paid when due in accordance with this Section, then in
each such case, the overdue amount shall, to the extent permitted by law, bear interest at Six Month LIBOR plus 0.50% reset on each Interest Reset Date (provided that such rate will never be less than
0%) as such rate is in effect following the date 

8

 

such
overdue amount was originally due to the date payment of such amount, including interest thereon, has been made or duly provided for. All such interest shall be payable on demand. The accrual of
such interest on overdue amounts shall be in lieu of, and not in addition to, any subsequent increase in the Accreted Principal Amount. 

        (e)   The
Company will pay contingent interest ("Contingent Interest") to the Holders of the 2004 Senior Convertible Notes in respect of any six-month interest
period from February 1 to July 31 and from August 1 to January 31, commencing on or after August 1, 2010 for which the average Trading Price of a 2004 Senior
Convertible Note for the applicable five Trading Day reference period equals or exceeds 120% of the sum of the Accreted Principal Amount and accrued interest, if any, for a 2004 Senior Convertible
Note as of the day immediately preceding the first day of the applicable six-month interest period. The "five Trading Day reference period" means the five Trading Days ending on the third
Trading Day immediately preceding the relevant Interest Reset Date. For any six-month interest period in respect of which the Contingent Interest is payable, the Contingent Interest
payable on each $1,000 principal amount of Notes shall be equal to 0.30% of the average Trading Price of a 2004 Senior Convertible Note for the applicable five Trading Day reference period. No
Contingent Interest shall be payable on Senior Convertible Notes redeemed on August 1, 2010 (or, if August 1, 2010 is not a Business Day, on the next following Business Day). 

        Upon
determination that Holders will be entitled to receive Contingent Interest in respect of a six-month interest period, the Company shall notify the Holders. In connection
with providing such notice, the Company will issue a press release containing information regarding the Contingent Interest determination or publish such information on the Company's then existing
website or through such other public medium as the Company may use at that time. 

        (f)    Interest,
including Contingent Interest, if any, on any 2004 Senior Convertible Note that is payable, and is punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the person in whose name that Senior Convertible Note is registered at the close of business on the Regular Record Date for such interest or Contingent Interest, if any,
at the office or agency of the Company maintained for such purpose. Each installment of interest or Contingent Interest, if any, on any 2004 Senior Convertible Note shall be paid in
same-day funds by transfer to an account maintained by the payee located inside the United States. 

        (g)   The
amount of interest, including Contingent Interest, if any, payable for any period shall be computed on the basis of the actual number of days elapsed over a
360-day year. The amount of interest, including Contingent Interest, if any, payable for any partial period shall be computed on the basis of a 360-day year of twelve
30-day months and the actual number of days elapsed in any partial month. In the event that any Interest Payment Date on a 2004 Senior Convertible Note is not a Business Day, then a
payment of the interest, including Contingent Interest, if any, payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in
respect of any such delay) with the same force and effect as if made on the date of the payment was originally payable. 

        (h)   From
and after the date (the "Tax Event Date") of the occurrence of a Tax Event after August 1, 2010, the Company shall have the option to elect by notice to the
Trustee, in lieu of having Accreted Principal Amount increase, to have interest accrue and be paid in cash at the annual rate equal to Six Month LIBOR plus 0.50%, reset on each Interest Reset Date;
provided that such rate shall never be less than 0%, on a Restated Principal Amount per $1,000 Original Principal Amount (the "Restated Principal Amount") equal to the accrued Accreted Principal
Amount through the Tax Event Date or the date the Company exercises the option provided for in this section, whichever is later (the "Option Exercise Date"). Such interest shall be payable
semi-annually on February 1 and August 1 of each year to Holders of record at the close of business on January 15 and July 15 immediately preceding such
Interest Payment Date. Interest will accrue from the most recent date on 

9

 

which
interest has been paid or, if no interest has been paid, from the Option Exercise Date. The Trustee shall notify Holders of Senior Convertible Notes within 15 days after the Option
Exercise Date that the Company has exercised the option provided for in this Section. 

        SECTION
1.04    Denominations.    The 2004 Senior Convertible Notes shall be issued in denominations of $1,000 and any
integral multiple thereof. 

        SECTION
1.05    Global Securities.    (a) The 2004 Senior Convertible Notes shall initially be issued in the
form of one or more Global Securities registered in the name of the Depositary (which initially shall be The Depository Trust Company) or its nominee. Except under the limited circumstances described
below, Senior Convertible Notes represented by such Global Security or Global Securities shall not be exchangeable for, and shall not otherwise be issuable as, Senior Convertible Notes in definitive
form ("Definitive Securities"). The Global Securities described in this Article 1 may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee. 

        (b)   A
Global Security shall be exchangeable for Senior Convertible Notes registered in the names of Persons other than the Depositary or its nominee only if (i) the
Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by the Company within
90 days of receipt by the Company of such notification, or if at any time the Depositary ceases to be a clearing agency registered under the Exchange Act at a time when the Depositary is
required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Company within 90 days after it becomes aware of such cessation, or
(ii) the Company in its sole discretion determines that such Global Security shall be so exchangeable. Any Global Security that is exchangeable pursuant to the preceding sentence shall be
exchangeable for Senior Convertible Notes registered in such names as the Depositary shall direct. 

        (c)   Transfers,
exchanges and forms of the 2004 Senior Convertible Notes are further subject to the provisions of Section 1.16. 

        SECTION
1.06    Redemption at the Option of the Company.    (a) The 2004 Senior Convertible Notes are
redeemable for cash as a whole, or from time to time in part, on any date (a "Redemption Date") at the option of the Company at 100% of the Accreted Principal Amount of the 2004 Senior Convertible
Notes, plus any accrued and unpaid interest to the Redemption Date (the "Redemption Price"), provided that the 2004 Senior Convertible Notes are not redeemable prior to August 1, 2010. If the
2004 Senior Convertible Note has been converted to a semi-annual cash interest paying note following the occurrence of a Tax Event and an Option Exercise Date, the Redemption Price will be
equal to the Restated Principal Amount plus accrued and unpaid interest (including Contingent Interest, if any) from the date of such conversion to but not including the Redemption Date; but in no
event will the 2004 Senior Convertible Note be redeemable before August 1, 2010. 

        (b)   The
Company shall notify each Holder and the Trustee of the redemption pursuant to Section 1104 of the Original Indenture. 

        (c)   If
any 2004 Senior Convertible Notes selected for partial redemption are thereafter surrendered for conversion in part before termination of the conversion right with
respect to the portion of the 2004 Senior Convertible Notes so selected, the converted portion of such 2004 Senior Convertible Notes shall be deemed (so far as may be), solely for purposes of
determining the aggregate principal amount of 2004 Senior Convertible Notes to be redeemed by the Company, to be the portion selected for redemption. 2004 Senior Convertible Notes which have been
converted during a selection of 2004 Senior Convertible Notes to be redeemed may be treated by the Trustee as Outstanding for the purpose of such selection. Nothing in this Section 1.06(c)
shall affect the right of any Holder to convert any 2004 Senior Convertible Notes before the termination of the conversion right with respect thereto. 

10

 

If
the Company decides to redeem fewer than all of the outstanding 2004 Senior Convertible Notes then the Trustee will select the 2004 Senior Convertible Notes to be redeemed (in principal amount of
$1,000 or integral multiples thereof) by lot, or on a pro rata basis or by another method the Trustee considers fair and appropriate. 

        (d)   In
addition to those matters set forth in Section 1104 of the Indenture, a notice of redemption sent to the Holders of Senior Convertible Notes shall state: 

        (i)    the
name of the Paying Agent and Conversion Agent; 

        (ii)   the
then current Conversion Rate; 

        (iii)  that
the 2004 Senior Convertible Notes called for redemption may be converted at any time prior to the close of business on the second Business Day immediately
preceding the Redemption Date; and 

        (iv)  that
Holders who wish to convert 2004 Senior Convertible Notes must comply with the procedures in Section 1.10 hereof and paragraph 7 of the reverse of
the 2004 Senior Convertible Notes. 

        (e)   The
2004 Senior Convertible Notes shall not have a sinking fund. 

        SECTION
1.07    Purchase at the Option of the Holder Upon a Fundamental Change.    (a) Each Holder shall have
the right, at such Holder's option, to require the Company to purchase any or all of such Holder's 2004 Senior Convertible Notes for cash in integral multiples of $1,000 Original Principal Amount held
by such Holder by delivery to the Paying Agent (as hereinafter provided) of a Fundamental Change Purchase Notice no later than 60 Business Days after the occurrence of a Fundamental Change of the
Company (a "Fundamental Change Purchase Date") for a Fundamental Change purchase price (the "Fundamental Change Purchase Price") equal to 100% of the Accreted Principal Amount of such 2004 Senior
Convertible Notes plus accrued and unpaid interest, including Contingent Interest, if any, to but not including the Fundamental Change Purchase Price Date, which Fundamental Change Purchase Price
shall be paid in cash. No 2004 Senior Convertible Notes may be purchased at the option of the Holders due to a Fundamental Change if there has occurred and is continuing an Event of Default (other
than an Event of Default that is cured by the payment of the Fundamental Change Purchase Price of such 2004 Senior Convertible Notes). 

        (b)    Exercise of Fundamental Change Option.    For a 2004 Senior Convertible Note to be so purchased at the option
of the Holder pursuant to this Section 1.07, the Paying Agent must receive, no later than 60 Business Days after the occurrence of a Fundamental Change: 

        (i)    a
written notice of purchase (a "Fundamental Change Purchase Notice") substantially in the form entitled "Form of Fundamental Change Purchase Notice" on the reverse of
the 2004 Senior Convertible Note duly completed, on or before the close of business on the Business Day immediately preceding the Fundamental Change Purchase Date, subject to extension to comply with
applicable law. The Fundamental Change Purchase Notice shall state: 

        (1)   if
certificated, the certificate numbers of the 2004 Senior Convertible Notes which the Holder shall deliver to be purchased; 

        (2)   the
portion of the principal amount of the 2004 Senior Convertible Notes which the Holder shall deliver to be purchased, which portion must be $1,000 or an integral
multiple thereof; and 

        (3)   that
such 2004 Senior Convertible Notes shall be purchased as of the Fundamental Change Purchase Date pursuant to the terms and conditions specified in the 2004 Senior
Convertible Notes and in the Indenture; 

11

 

        (ii)   delivery
or book-entry transfer of such 2004 Senior Convertible Notes prior to, on or after the Fundamental Change Purchase Date (together with all
necessary endorsements) at the offices of the Paying Agent, such delivery or transfer being a condition to receipt by the Holder of the Fundamental Change Purchase Price therefor; provided, however,
that such Fundamental Change Purchase Price shall be so paid pursuant to this Section 1.07 only if the 2004 Senior Convertible Notes so delivered or transferred to the Paying Agent shall
conform in all respects to the description thereof in the related Fundamental Change Purchase Notice. 

        SECTION
1.08    Purchase of 2004 Senior Convertible Notes at the Option of the Holder.    (a) On each of
August 1, 2010, August 1, 2013 and August 1, 2018 (each, a "Repurchase Date"), each Holder shall have the right, at such Holder's option, to require the Company to purchase for
cash any or all of such Holder's 2004 Senior Convertible Notes. The Company shall purchase such 2004 Senior Convertible Notes at a price equal to 100% of the Accreted Principal Amount of the 2004
Senior Convertible Notes to be purchased plus any accrued and unpaid interest, including Contingent Interest, if any, on the principal amount to be purchased to but excluding the Repurchase Date. 

        If
prior to a Repurchase Date the 2004 Senior Convertible Note has been converted to a semi-annual coupon note following the occurrence of a Tax Event, the Purchase Price
will be equal to the Restated Principal Amount plus accrued and unpaid cash interest, including Contingent Interest, if any, from the date of conversion to the Repurchase Date but not including the
Repurchase Date. 

        (b)    Exercise of Repurchase Option.    For a 2004 Senior Convertible Note to be so purchased at the option of the
Holder, the Paying Agent must receive: 

        (i)    a
written notice of purchase (a "Repurchase Notice") substantially in the form entitled "Form of Repurchase Notice" on the reverse of the 2004 Senior Convertible Note
duly completed, at any time from the opening of business on the date that is 20 Business Days prior to a Repurchase Date until the close of business on the third Business Day prior to such Repurchase
Date. The Repurchase Notice shall state: 

        (1)   if
certificated, the certificate numbers of the 2004 Senior Convertible Notes which the Holder shall deliver to be purchased; 

        (2)   the
portion of the principal amount of the 2004 Senior Convertible Notes which the Holder shall deliver to be purchased, which portion must be $1,000 or an integral
multiple thereof; and 

        (3)   that
such 2004 Senior Convertible Notes shall be purchased as of the Repurchase Date pursuant to the terms and conditions specified in the 2004 Senior Convertible Notes
and in the Indenture. 

        (ii)   delivery
or book-entry transfer of such 2004 Senior Convertible Notes to the Paying Agent prior to, on or after the Repurchase Date (together with all
necessary endorsements) at the offices of the Paying Agent, such delivery or transfer being a condition to receipt by the Holder of the Purchase Price therefor; provided, however, that such Purchase
Price shall be so paid pursuant to this Section 1.08 only if the 2004 Senior Convertible Notes so delivered or transferred to the Paying Agent shall conform in all respects to the description
thereof in the related Repurchase Notice. 

        SECTION
1.09    Further Conditions and Procedures for Purchase Upon a Fundamental Change and Purchase at the Option of the
Holder.    

        (a)    Notice of Repurchase Date or Fundamental Change.    The Company shall send notices (each, a "Company Purchase
Notice") to the Holders (and to beneficial owners as required by applicable law) at their addresses shown in the 2004 Senior Convertible Note register maintained by the Security Registrar, and shall
deliver a copy of each such notice to the Trustee and Paying Agent, not less than 

12

 

20
Business Days prior to each Repurchase Date, or on or before the 20th day after the occurrence of the Fundamental Change, as the case may be (each such date of delivery, a "Company Purchase Notice
Date"). Any such notice delivered to the Trustee and the Paying Agent with respect to a Fundamental Change shall be accompanied by an Officers' Certificate certifying that a Fundamental Change has
occurred and as to the date of the occurrence thereof, on which Certificate the Trustee and the Paying Agent may conclusively rely. Each Company Purchase Notice shall include a Form of Repurchase
Notice or Fundamental Change Purchase Notice to be completed by a Holder and shall state: 

        (i)    the
applicable Purchase Price or Fundamental Change Purchase Price, excluding accrued and unpaid interest, the applicable Conversion Rate at the time of such notice (and
any applicable adjustments to the Conversion Rate) and, to the extent known at the time of such notice, the amount of interest that will be payable with respect to the 2004 Senior Convertible Notes on
the applicable Repurchase Date or Fundamental Change Purchase Date; 

        (ii)   if
the notice relates to a Fundamental Change, the events causing the Fundamental Change and the date of the Fundamental Change; 

        (iii)  the
Repurchase Date or Fundamental Change Purchase Date; 

        (iv)  the
last date on which a Holder may exercise its purchase right; 

        (v)   the
name and address of the Paying Agent and the Conversion Agent; 

        (vi)  that
2004 Senior Convertible Notes must be surrendered to the Paying Agent to collect payment of the Purchase Price or Fundamental Change Purchase Price; 

        (vii)  that
2004 Senior Convertible Notes as to which a Repurchase Notice or Fundamental Change Purchase Notice has been given by the Holder to the Company may
be converted only if the applicable Repurchase Notice or Fundamental Change Purchase Notice has been withdrawn by the Holder in accordance with the terms of this Sixth Supplemental Indenture; provided
that the 2004 Senior Convertible Notes are otherwise convertible in accordance with paragraph 7 of the reverse of the 2004 Senior Convertible Notes; 

        (viii)   that
the Purchase Price or Fundamental Change Purchase Price for any 2004 Senior Convertible Notes as to which a Repurchase Notice or a Fundamental
Change Purchase Notice, as applicable, has been given and not withdrawn shall be paid by the Paying Agent promptly following the later of the Repurchase Date or Fundamental Change Purchase Date, as
applicable, or the time of book-entry transfer or delivery of such 2004 Senior Convertible Notes; 

        (ix)  the
procedures the Holder must follow under Sections 1.07 or 1.08, as applicable, and this Section 1.09; 

        (x)   briefly,
the conversion rights of the 2004 Senior Convertible Notes and whether, at the time of such notice, the Convertible Senior Notes are eligible for conversion; 

        (xi)  that,
unless the Company defaults in making payment of such Purchase Price or Fundamental Change Purchase Price on 2004 Senior Convertible Notes covered by any
Repurchase Notice or Fundamental Change Purchase Notice, as applicable, interest will cease to accrue on and after the Repurchase Date or Fundamental Change Purchase Date, as applicable; 

        (xii)  the
CUSIP and, if applicable, the ISIN number of the 2004 Senior Convertible Notes; and 

        (xiii)   the
procedures for withdrawing a Repurchase Notice or Fundamental Change Purchase Notice. 

        Simultaneously
with providing such Company Purchase Notice, the Company will publish a notice containing the information in such Company Purchase Notice in a newspaper of general
circulation in 

13

 

The
City of New York or publish such information on its then existing web site or through such other public medium as it may use at the time. 

        At
the Company's request, made at least five Business Days prior to the date upon which such notice is to be mailed, and at the Company's expense, the Paying Agent shall give the Company
Purchase Notice in the Company's name; provided, however, that, in all cases, the text of the Company Purchase Notice shall be prepared by the Company. 

        (b)    Effect of Repurchase Notice or Fundamental Change Purchase Notice.    Upon receipt by the Paying Agent on
behalf of the Company from the Holder of the Fundamental Change Purchase Notice or the Repurchase Notice specified in Section 1.07(b)(i) or Section 1.08(b)(i), as applicable, the
Holder of the 2004 Senior Convertible Notes in respect of which such Fundamental Change Purchase Notice or the Repurchase Notice, as the case may be, was given shall (unless such Fundamental Change
Purchase Notice or the Repurchase Notice is withdrawn as specified in the following two paragraphs) thereafter be entitled to receive solely the Fundamental Change Purchase Price or the Purchase Price
with respect to such 2004 Senior Convertible Notes. Such Fundamental Change Purchase Price or Purchase Price shall be paid by the Paying Agent to such Holder promptly following the later of
(x) the Fundamental Change Purchase Date or the Repurchase Date, as the case may be, with respect to such 2004 Senior Convertible Notes (provided the conditions in Section 1.07(b) or
Section 1.08(b), as applicable, have been satisfied), and (y) the time of delivery or book-entry transfer of such 2004 Senior Convertible Notes to the Paying Agent by the
Holder thereof in the manner required by Section 1.07(b)(ii) or Section 1.08(b)(ii), as applicable. The 2004 Senior Convertible Notes in respect of which a Fundamental Change
Purchase Notice or Repurchase Notice, as the case may be, has been given by the Holder thereof may not be converted on or after the date of the delivery of such Fundamental Change Purchase Notice or
Repurchase Notice, as the case may be, unless such Fundamental Change Purchase Notice or Repurchase Notice, as the case may be, has first been validly withdrawn or deemed to have been validly
withdrawn as specified in Section 1.09(c); provided that the 2004 Senior Convertible Notes are otherwise convertible in accordance with paragraph 7 of the reverse of the 2004 Senior
Convertible Notes. 

        On
or before 10:00 a.m. (New York City time) on the Fundamental Change Purchase Date or the Repurchase Date, as the case may be, the Company shall deposit with the Paying Agent
(or if the Company or an Affiliate of the Company is acting as the Paying Agent, shall segregate and hold in trust) the Purchase Price consideration sufficient to pay the aggregate Fundamental Change
Purchase Price or the aggregate Purchase Price, as the case may be, of the 2004 Senior Convertible Notes to be purchased pursuant to Section 1.07 or Section 1.08, as applicable. Payment
by the Paying Agent of such Fundamental Change Purchase Price or Purchase Price for such 2004 Senior Convertible Notes shall be made promptly following the later of the Fundamental Change Purchase
Date or the Repurchase Date, as the case may be, or the time of book-entry transfer or delivery of such 2004 Senior Convertible Notes. If the Paying Agent holds money sufficient to pay the
Fundamental Change Purchase Price or Purchase Price, as the case may be, of such 2004 Senior Convertible Notes on the Business Day following the Fundamental Change Purchase Date or the Repurchase
Date, as the case may be, then, on and after such date, such 2004 Senior Convertible Notes shall cease to be outstanding and interest on such 2004 Senior Convertible Notes shall cease to accrue,
whether or not book-entry transfer of such 2004 Senior Convertible Notes is made or such 2004 Senior Convertible Notes are delivered to the Paying Agent, and all other rights of the Holder
shall terminate (other than the right to receive the Fundamental Change Purchase Price or the Purchase Price, as the case may be, upon delivery or transfer of the 2004 Senior Convertible Notes).
Nothing herein shall preclude the Company withholding any tax required by law. 

        The
Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money
held by the Paying Agent for the payment of the Fundamental Change Purchase Price or the Purchase Price, as the case may be, and shall notify the Trustee of any default by the Company in making any
such payment. If the Company or an Affiliate of the Company acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company at any time
may require a Paying Agent to deliver all money held by it pursuant to this Section 1.09 to the Trustee and to account for any funds disbursed by the Paying Agent. Upon doing so, the Paying
Agent shall have no further liability for the money delivered to the Trustee. 

14

   
        All questions as to the validity, eligibility (including time of receipt) and acceptance of any 2004 Senior Convertible Notes for purchase shall be determined by the Company, whose
determination shall be final and binding, absent manifest error. 

        (c)    Withdrawal of a Repurchase Notice or Fundamental Change Purchase Notice.    A Repurchase Notice or Fundamental
Change Purchase Notice, as the case may be, may be withdrawn by means of a written notice of withdrawal delivered to the office of the Paying Agent at any time prior to 5:00 p.m. New York City
time on the Repurchase Date or the Fundamental Change Purchase Date, as the case may be, to which it relates specifying: 

        (i)    if
certificated, the certificate number of the 2004 Senior Convertible Notes in respect of which such notice of withdrawal is being submitted; 

        (ii)   the
principal amount of the 2004 Senior Convertible Notes with respect to which such notice of withdrawal is being submitted; and 

        (iii)  the
principal amount, if any, of such 2004 Senior Convertible Notes which remains subject to the Repurchase Notice or Fundamental Change Purchase Notice, as the case
may be, and which has been or shall be transferred or delivered for purchase by the Company. 

        The
Paying Agent shall promptly notify the Company of the receipt by it of any Repurchase Notice or Fundamental Change Purchase Notice or written notice of withdrawal thereof. 

        (d)   Notwithstanding
the requirements of Sections 1.07 or 1.08 and this Section 1.09, if the 2004 Senior Convertible Notes are represented by Global Securities in
book-entry form the appropriate procedures of the Depositary must be complied with for any purchase upon a Fundamental Change or Repurchase Option. 

        (e)    Effect of Event of Default.    There shall be no purchase of any 2004 Senior Convertible Notes pursuant to
Section 1.07 or Section 1.08 if an Event of Default has occurred and is continuing (other than a default that is cured by the payment of the Purchase Price or Fundamental Change Purchase
Price, as the case may be). The Paying Agent shall promptly return to the respective Holders thereof any 2004
Senior Convertible Notes: (x) with respect to which a Repurchase Notice or Fundamental Change Purchase Notice, as the case may be, has been withdrawn in compliance with this Sixth Supplemental
Indenture, or (y) held by it during the continuance of an Event of Default (other than a default that is cured by the payment of the Purchase Price or Fundamental Change Purchase Price, as the
case may be) in which case, upon such return, the Repurchase Notice or Fundamental Change Purchase Notice with respect thereto shall be deemed to have been withdrawn. 

        (f)    2004 Senior Convertible Notes Purchased in Part.    Any 2004 Senior Convertible Notes that are to be purchased
only in part shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or such Holder's attorney duly authorized in writing) and the Company shall execute and the Trustee or the Authenticating Agent, if
any, shall authenticate and deliver to the Holder of such 2004 Senior Convertible Notes, without service charge, a new 2004 Senior Convertible Note or 2004 Senior Convertible Notes, of any authorized
denomination, as requested by such Holder in aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the 2004 Senior Convertible Notes so surrendered which is
not purchased. 

        (g)    Covenant to Comply with Securities Laws Upon Purchase of 2004 Senior Convertible Notes.    In connection with
any offer to purchase 2004 Senior Convertible Notes under Sections 1.07 or 1.08 hereof, the Company shall, to the extent applicable, (i) comply with Rules 13e-4 and
14e-1 (and any successor provisions thereto) under the Exchange Act, if applicable, (ii) file the related Schedule TO (or any successor schedule, form or report) under the Exchange
Act, if applicable and (iii) otherwise 

15

 

comply
with all applicable federal and state securities laws so as to permit the rights and obligations under Sections 1.07, 1.08 or this Section 1.09 to be exercised in the manner specified in
Sections 1.07, 1.08 or this Section 1.09; provided, however, that the Company shall not take any action in violation of any applicable federal or state securities laws. 

        (h)    Repayment to the Company.    The Trustee and the Paying Agent shall return to the Company any cash or property
that remains unclaimed as provided in Section 1003 of the Original Indenture, together with any unclaimed interest, held by them for the payment of a Purchase Price or Fundamental Change
Purchase Price, as the case may be; provided, however, that to the extent that the aggregate amount of cash deposited by the Company pursuant to Section 1.09(b), as applicable, exceeds the
aggregate Purchase Price or Fundamental Change Purchase Price, as the case may be, of the 2004 Senior Convertible Notes or portions thereof which the Company is obligated to purchase as of the
Repurchase Date or Fundamental Change Purchase Date, as the case may be, then promptly on and after the Business Day following the Repurchase Date or Fundamental Change Purchase Date, as the case may
be, the Trustee or the Paying Agent, as the case may be, shall return any such excess to the Company together with any excess interest held by them for payment to Holders. 

        (i)    In
any case where a Repurchase Date or a Fundamental Change Purchase Date shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision
of the Indenture or the 2004 Senior Convertible Notes) payment of interest and the Purchase Price or the Fundamental Change Purchase Price, as the case may be, need not be made at such Place of
Payment on such date (provided that all other conditions therefor have been complied with), but may be made on the next succeeding Business Day at such Place of Payment (provided that such conditions
have been complied with) with the same force and effect as if made on the Repurchase Date or the Fundamental Change Purchase Date, as the case may be (and without any interest or payment in respect of
any such delay). 

        SECTION
1.10    Conversion of 2004 Senior Convertible Notes.    

        (a)    Right to Convert.    During the periods specified in paragraph 7 of the reverse of the 2004 Senior
Convertible Notes, a Holder may convert its 2004 Senior Convertible Notes for cash and, if applicable, shares of Common Stock. Each $1,000 of Original Principal Amount of 2004 Senior Convertible Notes
shall be convertible for cash equal the Principal Return and, if the Conversion Value exceeds the Accreted Principal Amount, the number of whole shares of Common Stock equal to the sum of the Daily
Share Amounts for each Trading Day in the applicable Conversion Settlement Reference Period, as determined by the Company and confirmed in writing to the Trustee and the Conversion Agent, payable as
set forth in Section 1.10(b). A Holder may convert a portion of the principal amount of 2004 Senior Convertible Notes if the portion is $1,000 or an integral multiple thereof. 

        (b)    The Conversion Rate; Payment for Converted New Securities.    The initial Conversion Rate is 16.2760 shares of
Common Stock for each $1,000 Original Principal Amount of a 2004 Senior Convertible Note, subject to adjustment as herein set forth (the "Conversion Rate"). The Company shall pay to holders of
converting 2004 Senior Convertible Notes as follows: 

        (i)    an
amount in cash (the "Principal Return") equal to the lesser of (A) the aggregate Conversion Value of the 2004 Senior Convertible Notes to be converted, and
(B) the aggregate Accreted Principal Amount of the 2004 Senior Convertible Notes to be converted; 

        (ii)   if
the aggregate Conversion Value of the 2004 Senior Convertible Notes to be converted is greater than aggregate Accreted Principal Amount, the number of whole shares
of Common Stock equal to the sum of the Daily Share Amounts for each Trading Day during the applicable Conversion Settlement Reference Period (the "Net Share Amount"); and 

        (iii)  an
amount in cash in lieu of any fractional shares which would otherwise be payable as a result of the calculation in subsection (ii) above, calculated as
provided in Section 1.10(d). 

16

 

The
Company shall determine the Conversion Value, the Principal Return and Net Share Amount promptly after the end of the applicable Conversion Settlement Reference Period. 

        (c)    Conversion Procedures.    To convert 2004 Senior Convertible Notes, the requirements set forth in this
Section 1.10(d) and in paragraph 7 of the reverse of the 2004 Senior Convertible Notes must be satisfied. 

        (i)    To
convert the 2004 Senior Convertible Notes, a Holder must: (1) complete and manually sign the irrevocable conversion notice on the back of the 2004 Senior
Convertible Notes (or complete and manually sign a facsimile of such notice) and deliver such notice to the Conversion Agent at the office maintained by the Conversion Agent for such purpose,
(2) with respect to 2004 Senior Convertible Notes in certificated form, surrender the 2004 Senior Convertible Notes to the Conversion Agent or with respect to 2004 Senior Convertible Notes
represented by Global Securities, cause the book-entry transfer thereof to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the
Conversion Agent, the Company or the Trustee and (4) pay any transfer or similar tax, if required. The date on which the Holder satisfies all such requirements is the conversion date (the
"Conversion Date"). As soon as practicable, but in no event later than the third Business Day following the determination of average Closing Sale Price during the Conversion Settlement Reference
Period, the Company shall deliver to the Holder, through the Conversion Agent: (A) cash equal to the Principal Return, (B) if the Conversion Value exceeds the Accreted Principal Amount,
a certificate (or credit the book-entry transfer of such shares of Common Stock) for the number of full shares of Common Stock issuable upon the conversion, and (C) cash in lieu of
any fractional share determined pursuant to Section 1.10(d). 

        (ii)   Holders
of 2004 Senior Convertible Notes at the close of business on a Regular Record Date will receive payment of interest payable on the corresponding Interest
Payment Date notwithstanding the conversion of such 2004 Senior Convertible Notes at any time after the close of business on such Regular Record Date. The 2004 Senior Convertible Notes surrendered for
conversion by a Holder during the period from the close of business on any Regular Record Date to the opening of business on the corresponding Interest Payment Date must be accompanied by payment of
an amount equal to the interest that the Holder is to receive on the 2004 Senior Convertible Notes; provided, however, that no such payment need be made with respect to 2004 Senior Convertible Notes
in respect of which a Redemption Date or Fundamental Change Purchase Date has been set that falls within this period or on such Interest Payment Date or to the extent any overdue interest exists at
the time of such conversion. Except as described above, no payment or adjustment will be made for accrued interest on converted 2004 Senior Convertible Notes. Upon conversion of 2004 Senior
Convertible Notes, a Holder will not receive any cash payment of interest (unless such conversion occurs between a Regular Record Date and the Interest Payment Date to which it relates) and the
Company will not adjust the Conversion Rate to account for accrued and unpaid interest. 

        (iii)  The
Person in whose name any certificate for shares of Common Stock is registered shall be treated as a stockholder of record on and after the Conversion Date;
provided, however, that no surrender of 2004 Senior Convertible Notes on any date when the stock transfer books of the Company shall be closed shall be effective to constitute the Person or Persons
entitled to receive the shares of Common Stock upon such conversion as the record Holder or Holders of such shares of Common Stock on such date, but such surrender shall be effective to constitute the
Person or Persons entitled to receive such shares of Common Stock as the record Holder or Holders thereof for all purposes at the close of business on the next succeeding day on which such stock
transfer books are open; such conversion shall be at the Conversion Rate in effect on the date that such 2004 Senior Convertible Notes shall have been surrendered for conversion, as if the stock
transfer 

17

 

books
of the Company had not been closed. Upon conversion of 2004 Senior Convertible Notes, such Person shall no longer be a Holder of such 2004 Senior Convertible Notes. 

        (iv)  No
payment or adjustment shall be made for dividends on or other distributions with respect to any Common Stock except as provided in Section 1.10(g). If a
Holder converts more than one 2004 Senior Convertible Note at the same time, the amount of cash and the number of shares of Common Stock deliverable upon the conversion shall be based on the total
principal amount of the 2004 Senior Convertible Notes converted. Upon surrender of a 2004 Senior Convertible Note that is converted in part, the Company shall execute, and the Trustee or the
Authenticating Agent shall authenticate and deliver to the Holder, a new 2004 Senior Convertible Note in an authorized denomination equal in principal amount to the unconverted portion of the 2004
Senior Convertible Note surrendered. If the last day on which 2004 Senior Convertible Notes may be converted is not a Business Day in a place where a Conversion Agent is located, the 2004 Senior
Convertible Notes may be surrendered to that Conversion Agent on the next succeeding day that is a Business Day. A Holder of 2004 Senior Convertible Notes is not entitled to any rights of a Holder of
Common Stock until such Holder has converted its Senior Convertible Notes to Common Stock, and only to the extent such 2004 Senior Convertible Notes are deemed to have been converted into Common Stock
pursuant to this Section 1.10. 

        (v)   In
the event the Company exercises its option pursuant to Section 1.03(h) to have, in lieu of having the Accreted Principal Amount increase, interest accrue on
the 2004 Senior Convertible Note following a Tax Event, the Holder will be entitled on conversion to receive the same amount upon conversion of such 2004 Senior Convertible Note as such Holder would
have received if the Company had not exercised such option. Increases in the Accreted Principal Amount and cash interest (including Contingent Interest, if any, and interest payable upon the
occurrence of a Tax Event, if any) will not be paid on 2004 Senior Convertible Notes that are converted, except accrued cash interest will be payable upon conversion of 2004 Senior Convertible Notes
made concurrently with or after acceleration of 2004 Senior Convertible Notes following the Event of Default. 

        (vi)  If
a Holder of 2004 Senior Convertible Notes has already delivered a Fundamental Change Purchase Notice or Repurchase Notice with respect to a 2004 Senior Convertible
Note, then the Holder may not surrender such 2004 Senior Convertible Note for conversion until the Holder has
withdrawn the applicable Fundamental Change Purchase Notice or Repurchase Notice in accordance with the provisions hereof. 

        (vii) On
conversion of a 2004 Senior Convertible Note, increases in the Accreted Principal Amount or cash interest (or interest if the Company has exercised its option
provided for in Section 1.03(h) hereof) attributable to the period from the Original Issue Date (or, if the Company has exercised the option provided for in Section 1.03(h) hereof, the
later of (x) the date of such exercise and (y) the date on which interest was last paid) through the Conversion Date shall not be cancelled, extinguished or forfeited, but rather shall
be deemed to be paid in full to the Holder thereof through the delivery of the cash and shares of Common Stock, if any, in exchange for the 2004 Senior Convertible Note being converted pursuant to the
terms of the 2004 Senior Convertible Notes, and the cash and shares of Common Stock shall be treated as issued, to the extent thereof, first in exchange for increases in the Accreted Principal Amount
or cash interest (or interest, if the Company has exercised its option provided for in Section 1.03(h) hereof) accrued through the Conversion Date, and the balance, if any, of shall be treated
as issued in exchange for the Original Principal Amount of the 2004 Senior Convertible Note being converted pursuant to the provisions of the 2004 Senior Convertible Notes. 

        (d)    Cash Payments in Lieu of Fractional Shares.    The Company shall not issue a fractional share of Common Stock
upon conversion of 2004 Senior Convertible Notes. Instead the Company shall 

18

 

deliver
cash for the current market value of the fractional share. The current market value of a fractional share shall be determined to the nearest 1/10,000th of a share by multiplying the average of
the Closing Sale Prices during the applicable Conversion Settlement Reference Period by the fractional amount and rounding the product to the nearest whole cent. 

        (e)    Taxes on Conversion.    If a Holder converts 2004 Senior Convertible Notes, the Company shall pay any
documentary, stamp or similar issue or transfer tax due on the issue of any shares of Common Stock upon the conversion. However, the Holder shall pay any such tax which is due because the Holder
requests the shares of Common Stock to be issued in a name other than the Holder's name. The Conversion Agent may refuse to deliver the certificates representing the Common Stock being issued in a
name other than the Holder's name until the Conversion Agent receives a sum sufficient to pay any tax which shall be due because the shares are to be issued in a name other than the Holder's name.
Nothing herein shall preclude the Company's withholding any tax required by law. 

        (f)    Covenants of the Company.    The Company shall, prior to issuance of any 2004 Senior Convertible Notes
hereunder, and from time to time as may be necessary, reserve out of its authorized but unissued Common Stock a sufficient number of shares of Common Stock to permit the payment of any Common Stock
portion of the amount payable upon conversion of the 2004 Senior Convertible Notes, as provided in Section 1.10(b)(ii), upon conversion of the 2004 Senior Convertible Notes. All shares of
Common Stock delivered upon conversion of the 2004 Senior Convertible Notes shall be newly issued shares or treasury shares, shall be duly and validly issued and fully paid and nonassessable and shall
be free from preemptive rights and free of any lien or adverse claim. The Company shall endeavor
promptly to comply with all federal and state securities laws regulating the order and delivery of shares of Common Stock upon the conversion of 2004 Senior Convertible Notes, if any, and shall cause
to have listed or quoted all such shares of Common Stock on the New York Stock Exchange, or, if not listed thereon, on each United States national securities exchange or
over-the-counter or other domestic market on which the Common Stock is then listed or quoted. 

        (g)    Adjustments to Conversion Rate.    The Conversion Rate shall be adjusted from time to time by the Company as
follows: 

        (i)    In
case the Company shall pay or make a dividend or other distribution on the Common Stock in Common Stock, the Conversion Rate, as in effect at the opening of business
on the day following the date fixed for the determination of stockholders entitled to receive such dividend or other distribution, shall be increased by dividing such Conversion Rate by a fraction of
which the numerator shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination and the denominator shall be the sum of such number of
shares and the total number of shares constituting such dividend or other distribution, such increase to become effective immediately after the opening of business on the day following the date fixed
for such determination. For the purposes of this Section 1.10(g)(i), the number of shares of Common Stock at any time outstanding shall not include shares held in treasury by the Company but
shall include any shares issuable in respect of any scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or make any distribution on shares
of Common Stock held in treasury by the Company. 

        (ii)   In
case the Company shall issue rights, options or warrants (other than pursuant to any dividend reinvestment or share purchase plans) to all Holders of its Common
Stock (not being available on an equivalent basis to Holders of the 2004 Senior Convertible Notes upon conversion of such 2004 Senior Convertible Notes) entitling them, for a period expiring within
60 days after the record date for the determination of stockholders entitled to receive such rights, options or warrants, to subscribe for or purchase shares of Common Stock at a price per
share less than the Current Market Price per share of the Common Stock on the date fixed for the determination of stockholders entitled to receive such rights, options or warrants (other than pursuant
to a dividend 

19

 

reinvestment
plan or share purchase plan), the Conversion Rate in effect at the opening of business on the day following the date fixed for such determination shall be increased by dividing such
Conversion Rate by a fraction of which the numerator shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination plus the number of
shares of Common Stock which the aggregate offering price of the total number of shares of Common Stock so offered for subscription or purchase would purchase at such Current Market Price and the
denominator shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination plus the number of shares of Common Stock so offered for
subscription or purchase at such below Current Market Price, such increase to become effective immediately after the opening of business on the day following the date fixed for such determination. For
the purposes of this Section 1.10(g)(ii), the number of shares of Common Stock at any time outstanding shall not include shares held in treasury by the Company but shall include any shares
issuable in respect of any scrip certificates issued in lieu of fractions of shares of Common Stock. The Company shall not issue any such rights, options or warrants in respect of shares of Common
Stock held in treasury by the Company. 

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

        (iv)  In
case the Company shall, by dividend or otherwise, distribute to all Holders of its Common Stock evidences of its indebtedness, shares of capital stock, securities,
cash or other property (but excluding any rights, options or warrants referred to in Section 1.10(g)(ii) of this Section, any dividend or distribution paid exclusively in cash and any
dividend or distribution referred to in Section 1.10(g)(i)), the Conversion Rate shall be adjusted by dividing the Conversion Rate in effect immediately prior to the close of business on the
date fixed for the determination of stockholders entitled to receive such distribution by a fraction of which the numerator shall be the Current Market Price per share of the Common Stock on the date
fixed for such determination less the then fair market value (as determined by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution) on such date of the
portion of the evidences of indebtedness, shares of capital stock, securities, cash or other property so distributed applicable to one share of Common Stock and the denominator shall be such Current
Market Price per share of the Common Stock, such adjustment to become effective immediately prior to the opening of business on the day following the date fixed for the determination of stockholders
entitled to receive such distribution; provided, however, that in the event that the Company makes a distribution to all Holders of its Common Stock consisting of capital stock of, or similar equity
interests in, a subsidiary of the Company, the Conversion Rate shall be adjusted by dividing the Conversion Rate in effect immediately prior to the close of business on the date fixed for the
determination of stockholders entitled to receive such distribution by a fraction of which the numerator shall be the Spin-off Market Price per share of the Common Stock on the date fixed
for such determination less the Spin-off Market Price per share or similar equity interest of the subsidiary of the Company on such date and the denominator shall be the
Spin-off Market Price per share of the Common Stock, such adjustment to become effective 10 trading days after the effective date of such distribution of capital stock of, or similar
equity interest in, a subsidiary or other business unit of the Company. In any case in which this Section 1.10(g)(iv) is applicable, Sections 1.10(g)(i) and (ii) shall not
be applicable. 

20

 

        (v)   In
case the Company shall, (I) by dividend or otherwise, distribute to all Holders of its Common Stock cash (excluding (i) any cash that is distributed in
an event to which Section 1.10(h)(iv) applies or (ii) cash that is distributed as part of a distribution referred to in Section 1.10(g)(iv)) in an aggregate amount that,
combined together with (II) the aggregate amount of any other distributions to all Holders of its Common Stock made exclusively in cash within the quarterly fiscal period containing the date of
payment of such distribution and in respect of which no adjustment pursuant to this Section 1.10(g)(v) or Section 1.10(g)(vi) has been made and (III) the aggregate
of any cash plus the fair market value of any securities or other property, as of the expiration of the applicable tender or exchange offer referred to below (as determined by the Board of Directors,
whose determination shall be conclusive and described in a Board Resolution), of consideration payable in respect of any tender or exchange offer (other than consideration payable in respect of any
odd-lot tender offer) by the Company or any of its subsidiaries for all or any portion of the Common Stock concluded within the quarterly fiscal period containing the date of payment of
the distribution described in clause (I) above and in respect of which no adjustment pursuant to this Section 1.10(g)(v) or Section 1.10(g)(vi) has been made,
exceeds the product of $0.13 (appropriately adjusted from time to time for any stock dividends on or subdivisions or combinations of Common Stock) multiplied by the number of shares of Common Stock
outstanding on such date, then, and in each such case, immediately after the close of business on such date for determination, the Conversion Rate shall be increased so that the same shall equal the
rate determined by dividing the Conversion Rate in effect immediately prior to the close of business on the date fixed for determination of the stockholders entitled to receive such distribution by a
fraction (i) the numerator of which shall be equal to the Current Market Price per share of the Common Stock on the
date fixed for such determination plus $0.13 (appropriately adjusted from time to time for any stock dividends on or subdivisions or combination of Common Stock) less an amount equal to the quotient
of (x) the combined amount distributed or payable in the transactions described in clauses (I), (II) and (III) above and (y) the number of shares of Common Stock
outstanding on such date for determination and (ii) the denominator of which shall be equal to the Current Market Price per share of the Common Stock on such date for determination. 

        (vi)  In
case (I) a tender or exchange offer made by the Company or any subsidiary of the Company for all or any portion of the Common Stock (other than consideration
payable in respect of any odd-lot tender offer) shall expire and such tender or exchange offer (as amended upon the expiration thereof) shall require the payment to stockholders (based on
the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of Purchased Shares) of an aggregate consideration having a fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a Board Resolution) that combined together with (II) the aggregate of the cash plus the fair market value (as determined by
the Board of Directors, whose determination shall be conclusive and described in a Board Resolution), as of the expiration of such tender or exchange offer, of consideration payable in respect of any
other tender or exchange offer (other than consideration payable in respect of any odd-lot tender offer) by the Company or any subsidiary of the Company for all or any portion of the
Common Stock expiring within the quarterly fiscal period containing the expiration of such tender or exchange offer and in respect of which no adjustment pursuant to
Section 1.10(g)(v) or this Section 1.10(g)(vi) has been made and (III) the aggregate amount of any distributions to all Holders of the Company's Common Stock made
exclusively in cash within the quarterly fiscal period containing the expiration of such tender or exchange offer and in respect of which no adjustment pursuant to Section 1.10(g)(v) or
this Section 1.10(g)(vi) has been made, exceeds the Current Market Price per share of Common Stock on the Trading Day next succeeding the last time (the "Expiration Time") tenders could
have been made pursuant to such tender or exchange offer (as it may be amended), then, and in each such case, immediately prior to the opening of 

21

 

business
on the day after the date of the Expiration Time, the Conversion Rate shall be adjusted so that the same shall equal the rate determined by dividing the Conversion Rate immediately prior to
the close of business as of the Expiration Time by a fraction (i) the numerator of which shall be equal to (A) the product of (1) the Current Market Price per share of the Common
Stock as of the Expiration Time and (2) the number of shares of Common Stock outstanding (including any tendered shares) as of the Expiration Time less (B) the amount of cash plus the
fair market value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the transactions described in clauses (I), (II) and (III) above (assuming in
the case of clause (I) the acceptance, up to any maximum specified in the terms of the tender or exchange offer, of Purchased Shares), and (ii) the denominator of which shall be equal to
the product of (A) the Current Market Price per share of the Common Stock as of the Expiration Time and (B) the number of shares of Common Stock outstanding (including any tendered
shares) as of the Expiration Time less the number of all shares validly tendered and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to
as the "Purchased Shares"). 

        (vii) If
a Cash Take-Over Transaction occurs prior to July 31, 2010, and except as provided in Section 1.10(g)(viii) below, for any
conversion of the 2004 Senior Convertible Notes in
connection with the Cash Take-Over Transaction, the Company will increase the number of shares of Common Stock payable upon conversion of the New Securities in connection with the Cash
Take-Over Transaction by a number of Additional Shares determined by the Effective Date of the Cash Take-Over Transaction and the applicable Stock Price (adjusted as set forth
below) as set forth on the table contained as Exhibit D to this Indenture. 

The
Stock Prices set forth on the table set forth on Exhibit D hereto will be adjusted as of any date on which the Conversion Rate is adjusted. On such date, the Stock Prices shall be adjusted
by multiplying: the Stock Prices applicable immediately prior to such adjustment, by a fraction, of which (x) the numerator is the Conversion Rate immediately prior to the adjustment giving
rise to the Stock Price adjustment, and (y) the denominator of which is the Conversion Rate so adjusted. 

        (viii)   In
the event of a Cash Take-Over Transaction which is also a Public Acquirer Change of Control, the Company may, in lieu of increasing the
Conversion Rate by the Additional Shares pursuant to Section 1.10(g)(vii) above, elect to adjust the Conversion Rate such that from and after the Effective Date of such Public Acquirer
Change of Control, Holders of the 2004 Senior Convertible Notes will be entitled to convert their Notes for an amount equal to the product of multiplying the Conversion Rate in effect immediately
before the Public Acquirer Change of Control by a fraction: 

        (1)   the
numerator of which will be (a) in the case of a share exchange, consolidation, merger, binding share exchange, or sale of all or substantially all of the
assets pursuant to which the outstanding shares of Common Stock are converted into cash, securities or other property, the fair market value of all cash and any other consideration (as determined by
the Board of Directors) paid or payable with respect to each share of Common Stock, or (b) in the case of any other Public Acquirer Change of Control, the average of the Closing Sale Price of
the Common Stock for the five consecutive Trading Days immediately preceding but excluding the Effective Date of such Public Acquirer Change of Control, and 

        (2)   the
denominator of which will be the average of the Closing Sale Price of the Public Acquirer Common Stock for the five consecutive Trading Days prior to but not
including the Effective Date of such Public Acquirer Change of Control. 

The
Company will notify Holders of its election by providing a public company acquisition notice at least five Trading Days prior to, but not including, the expected Effective Date of such Public
Acquirer Change of Control, as set forth in Paragraph 7 of the reverse of the 2004 Senior Convertible Notes. The amount payable upon conversion of 2004 Senior Convertible Notes upon an election
by the Company under this Section 1.10(g)(viii) shall be settled as provided in Section 1.10(b) provided that in lieu of the Common Stock payable under
Section 1.10(b)(ii) there shall be paid that number of whole shares of Public Acquirer Common Stock, calculated in the same manner. 

22

  

        (ix)  All
adjustments to the Conversion Rate, shall be calculated to the nearest 1/10,000th of a share of Common Stock (or if there is not a nearest 1/10,000th of a share to
the next lower 1/10,000th of a share). No adjustment in the Conversion Rate shall be required unless such adjustment would require an increase or decrease of at least one percent therein; provided,
however, that any adjustments which by reason of this subparagraph are not required to be made because they would have required an increase or decrease of less than one percent shall be carried
forward and taken into account in any subsequent adjustment. 

        (x)   Notwithstanding
the foregoing provisions of Section 1.10(g)(ii) or (iv), no adjustment shall be made thereunder, nor shall an adjustment be made to the
ability of a Holder of a Note to convert, for any distribution described therein if the Holder will otherwise participate in the distribution without conversion of such Holder's Senior Convertible
Notes. 

        (xi)  No
adjustment pursuant to the Conversion Rate or a Holder's ability to convert pursuant to this Section 1.10(g) shall be made in connection with the issuance of
rights, the distribution of separate certificates representing rights or the exercise, redemption, termination or invalidation of rights pursuant to any stockholder rights plan implemented by the
Company which provides that, upon conversion of the 2004 Senior Convertible Notes, the Holders shall receive, in addition to the Common Stock issuable upon such conversion, the rights issued under
such stockholder rights plan (notwithstanding the occurrence of an event causing such rights to separate from the Common Stock at or prior to the time of conversion). 

        (h)    Miscellaneous Provisions Relating to Conversion.    

        (i)    When No Adjustment Required.    No adjustment to the Conversion Rate need be made: 

        (1)   upon
the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on securities of
the Company and the investment of additional optional amounts in shares of Common Stock under any plan; 

        (2)   upon
the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or future employee, director or consultant benefit
plan or program of or assumed by the Company or any of its Subsidiaries; 

        (3)   upon
the issuance of any shares of Common Stock pursuant to any option, warrant, right, or exercisable, exchangeable or convertible security not described in
(2) above and outstanding as of the date the 2004 Senior Convertible Notes were first issued; 

        (4)   for
a change in the par value of the Common Stock; or 

        (5)   for
accrued and unpaid interest. 

To
the extent the 2004 Senior Convertible Notes become convertible into cash, assets or property (other than capital stock of the Company or securities to which
Section 1.10(h)(iv) applies), no adjustment shall be made thereafter as to the cash, assets or property. Interest shall not accrue on such cash, assets or property. 

        (ii)    Notice of Adjustment.    Whenever the Conversion Rate is adjusted, the Company shall promptly mail to Holders
a notice of the adjustment. The Company shall file with the Trustee and the Conversion Agent such notice. The certificate shall, absent manifest error, be conclusive evidence that the adjustment is
correct. Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with respect to any such certificate except to exhibit the same to any Holder desiring inspection
thereof. 

        (iii)    Voluntary Increase.    The Company may make such increases in the Conversion Rate, in addition to those
required by Section 1.10(g), as the Board of Directors considers to be advisable 

23

 

to
avoid or diminish any income tax to Holders of Common Stock or rights to purchase Common Stock resulting from any dividend or distribution of stock (or rights to acquire Common Stock) or from any
event treated as such for income tax purposes. To the extent permitted by applicable law, the Company may from time to time increase the Conversion Rate by any amount for any period of time if the
period is at least 20 days, the increase is irrevocable during the period and the Board of Directors shall have made a determination that such increase would be in the best interests of the
Company, which determination shall be conclusive. Whenever the Conversion Rate is so increased, the Company shall mail to Holders and file with the Trustee and the Conversion Agent a notice of such
increase. Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with respect to any such notice except to exhibit the same to any Holder desiring inspection thereof.
The Company shall mail the notice at least 15 days before the date the increased Conversion Rate takes affect. The notice shall state the increased Conversion Rate and the period it shall be in
effect. 

        (iv)    Effect of Reclassification, Consolidation, Merger, Binding Share Exchange or Sale.    If any of the following
events occur, namely (a) any reclassification or change of outstanding shares of Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par
value, or as a result of a subdivision or combination), (b) any consolidation, merger or binding share exchange of the Company with another corporation as a result of which Holders of Common
Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock or (c) any sale or conveyance of all or
substantially all of the assets of the Company to any other corporation as a result of which Holders of Common Stock shall be entitled to receive stock, securities or other property or assets
(including cash) with respect to or in exchange for such Common Stock, then the Conversion Rate will not be adjusted. If any of the events described in the preceding sentence occur, the Company or the
successor or purchasing corporation, as the case may be, shall execute with the Trustee a supplemental indenture or otherwise amend the terms of the 2004 Senior Convertible Notes, to provide that each
Senior Convertible Note shall be convertible into the kind and amount of shares of stock, other securities or property or assets (including cash) that the Holder of the 2004 Senior Convertible Note
would have received upon such reclassification, change, consolidation, merger, binding share exchange, sale or conveyance if such Holder had converted such 2004 Senior Convertible immediately prior to
such reclassification, change, consolidation, merger, combination, binding share exchange, sale or conveyance. Such supplemental indenture or other amendment to the 2004 Senior Convertible Notes shall
provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 1.10(h)(iv). The Company shall cause notice of the execution of
such supplemental indenture or amendment of the 2004 Senior Convertible Notes to be mailed to each Holder, at its address appearing on the 2004 Senior Convertible Note register, within 20 days
after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. The above provisions of this Section shall similarly apply to
successive reclassifications, changes, consolidations, mergers, combinations, binding share exchanges, sales and conveyances. If this Section 1.10(h)(iv) applies to any event or
occurrence, Section 1.10(g) shall not apply. 

        (v)    Responsibility of Trustee.    The Trustee and any other Conversion Agent shall not at any time be under any
duty or responsibility to any Holder to determine whether any facts exist which may require any adjustment of the Conversion Rate and shall be protected in relying upon an Officers' Certificate with
respect to the same. The Trustee and any other Conversion Agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any
securities or property, which may at any time be issued or delivered upon the conversion of any 2004 Senior Convertible Notes and the Trustee and any other Conversion Agent make no representations
with respect thereto. Neither the Trustee nor any 

24

 

Conversion
Agent shall be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the
surrender of any 2004 Senior Convertible Notes for the purpose of conversion or to comply with any of the duties, responsibilities or covenants of the Company contained in this Section 1.10.
Without limiting the generality of the foregoing, neither the Trustee nor any Conversion Agent shall be under any responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 1.10(h)(iv) relating either to the kind or amount of shares of stock or securities or other property or assets (including cash)
receivable by Holders upon the conversion of their Senior Convertible Notes after any event referred to in such Section 1.10(h)(iv) or to any adjustment to be made with respect thereto,
but, subject to the provisions of Article Six of the Indenture, may accept as conclusive evidence of the correctness of any such provisions, and shall be protected in relying upon, the Officers'
Certificate (which the Company shall be obligated to file with the Trustee prior to the execution of any such supplemental indenture) with respect thereto. Neither the Trustee nor the Conversion Agent
shall be responsible for determining whether any event contemplated by the paragraph 7 of the reverse of the 2004 Senior Convertible Notes has occurred which makes the 2004 Senior Convertible
Notes eligible for conversion or no longer eligible therefor until the Company has delivered to the Trustee and the Conversion Agent an Officers' Certificate stating that such event has occurred, on
which Certificate the Trustee and the Conversion Agent may conclusively rely, and the Company agrees to deliver such Officers' Certificate to the Trustee and the Conversion Agent immediately after the
occurrence of any such event. 

        In
no event shall the Trustee or the Conversion Agent be liable for any indirect, special, punitive or consequential loss or damage of any kind whatsoever, including, but not limited to,
lost profits, even if the Trustee or the Conversion Agent have been advised of the likelihood of such loss or damage and regardless of the form of action. 

        In
no event shall the Trustee or the Conversion Agent be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond its control,
including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo, government action, including any laws, ordinances, regulations, governmental
action or the like which delay, restrict or prohibit the providing of the services contemplated by this Indenture. 

        (vi)    Successive Adjustments.    After an adjustment to the Conversion Rate under Section 1.10(g), any
subsequent event requiring an adjustment under Section 1.10(g) shall cause an adjustment to the Conversion Rate as so adjusted. 

        (vii)    General Considerations.    Whenever successive adjustments to the Conversion Rate are called for pursuant to
Sections 1.10(g) or 1.10(h), such adjustments shall be made to the Current Market Price as may be necessary or appropriate to effectuate the intent of 1.10(g) or 1.10(h) and to avoid unjust or
inequitable results as determined in good faith by the Board of Directors. 

        (i)    On
conversion of a 2004 Senior Convertible Note, a Holder shall receive no payment for that portion of accrued and unpaid interest on the converted 2004 Senior
Convertible Note attributable to the period from the most recent Interest Payment Date (or, if no Interest Payment Date has occurred, from the Original Issue Date) through the Conversion Date with
respect to the converted 2004 Senior Convertible Note. 

25

 

        SECTION
1.11    Additional Events of Default; Withholding Notice; Rescission.    (a) In addition to those
matters set forth in Section 501 of the Original Indenture, an "Event of Default" with respect to the 2004 Senior Convertible Notes shall also mean any of the following events: 

        (i)    default
in the Company's obligation to repurchase 2004 Senior Convertible Notes upon the Company's exercise of its repurchase option pursuant to Section 1.06,
upon the occurrence of a Fundamental Change pursuant to Section 1.07 or upon the exercise by a Holder of its option to require the Company to repurchase such Holder's Senior Convertible Notes
pursuant to Section 1.08; or 

        (ii)   default
in the Company's obligation to convert the 2004 Senior Convertible Notes upon exercise of a Holder's conversion rights pursuant to Section 1.10 hereof;
or 

        (iii)  default
by the Company in its obligation to provide notice of a Fundamental Change. 

        (b)   The
Trustee may withhold from the Holders notice of any continuing default or Event of Default (except a default or Event of Default in the payment of principal of, or
interest on the 2004 Senior Convertible Notes) if it determines in good faith that withholding notice is in the Holders' interest. 

        (c)   The
Holders of a majority in aggregate principal amount of the 2004 Senior Convertible Notes then outstanding by notice to the Trustee may rescind any acceleration of
the 2004 Senior Convertible Notes and its consequences if all existing Events of Default (other than the nonpayment of principal of, interest, Contingent Interest, if any, on the 2004 Senior
Convertible Notes that has become due solely by virtue of such acceleration) have been cured or waived and if the rescission would not conflict with any judgment or decree of any court of competent
jurisdiction. No such rescission will affect any subsequent default or Event of Default or impair any right consequent thereto. 

        SECTION
1.12    Amendment; Supplement; and Waiver.    In addition to those matters set forth in Section 902 of
the Original Indenture, with respect to the 2004 Senior Convertible Notes, no amendment or supplemental indenture shall without the consent of the Holder of each Senior Convertible Note affected
thereby: 

        (a)   reduce
the percentage of the Original Principal Amount of 2004 Senior Convertible Notes whose Holders must consent to an amendment, supplement or waiver; 

        (b)   reduce
the principal of, or premium on, or change the fixed Stated Maturity of any 2004 Senior Convertible Note or, except as permitted pursuant to clause (s),
(v), (y) or (z) of the immediately following paragraph, alter the provisions with respect to the redemption or repurchase of the 2004 Senior Convertible Notes; 

        (c)   reduce
the rate of or change the time for payment of interest, including Contingent Interest, or defaulted interest on any 2004 Senior Convertible Notes; 

        (d)   waive
a Default or Event of Default in the payment of principal of or premium, if any, or interest (including Contingent Interest, if any) on the 2004 Senior Convertible
Notes (except a rescission of acceleration of the 2004 Senior Convertible Notes by the Holders of at least a majority in aggregate Accreted Principal Amount of the 2004 Senior Convertible Notes and a
waiver of the payment default that resulted from such acceleration); 

        (e)   make
the principal of, or premium, if any, or interest (including Contingent Interest, if any) on, any 2004 Senior Convertible Note payable in money other than as
provided for in the Indenture and in the 2004 Senior Convertible Notes; 

        (f)    make
any change in the provisions of the Indenture relating to waivers of past Defaults or the rights of Holders of 2004 Senior Convertible Notes to receive payments of
principal of, premium, if any, or interest (including Contingent Interest, if any) on the 2004 Senior Convertible Notes; 

26

 

        (g)   waive
a redemption or repurchase payment with respect to any 2004 Senior Convertible Note; 

        (h)   except
as permitted by the Indenture, increase the Conversion Price or modify the provisions of the Indenture relating to conversion of the 2004 Senior Convertible Notes
in a manner adverse to the Holders; 

        (i)    make
any change to the abilities of Holders of 2004 Senior Convertible Notes to enforce their rights under the Indenture or the foregoing provisions of this
Section 1.12 or this provision; 

        (j)    reduce
the Redemption Price, Purchase Price or Fundamental Change Purchase Price of the 2004 Senior Convertible Notes; or 

        (k)   make
any change that adversely affects the right to convert the 2004 Senior Convertible Notes. 

        Notwithstanding
the foregoing, without the consent of any Holder, the Company and the Trustee may amend or supplement the Indenture or the 2004 Senior Convertible Notes to: 

        (s)   cure
any ambiguity, defect or inconsistency or make any other changes in the provisions of the Indenture which they may deem necessary or desirable, provided such
amendment does not materially and adversely affect the 2004 Senior Convertible Notes; 

        (t)    provide
for uncertificated 2004 Senior Convertible Notes in addition to or in place of certificated Senior Convertible Notes; 

        (u)   provide
for the assumption of the Company's obligations to Holders of 2004 Senior Convertible Notes in the circumstances required under the Indenture; 

        (v)   provide
for exchange rights of Holders of 2004 Senior Convertible Notes in certain events; 

        (w)  reduce
the Conversion Price; 

        (x)   evidence
and provide for the acceptance of the appointment under the Indenture of a successor Trustee; 

        (y)   make
any change that would provide any additional rights or benefits to the Holders of Senior Convertible Notes or that does not adversely affect the legal rights under
the Indenture of any such Holder; or 

        (z)   comply
with requirements of the SEC in order to effect or maintain the qualification of the Indenture under the Trust Indenture Act of 1939. 

        In
addition, with respect to the 2004 Senior Convertible Notes, to the extent set forth in Section 513 of the Original Indenture, the Holders of at least a majority in aggregate
principal amount of the Outstanding 2004 Senior Convertible Notes may waive an existing default other than: (a) any default by the Company in any payment of the Redemption Price, Purchase Price
or Fundamental Change Purchase Price with respect to any 2004 Senior Convertible Notes, or (b) any default which constitutes a failure to convert any 2004 Senior Convertible Note in accordance
with its terms and the Indenture. 

        SECTION
1.13    Register of Securities; Paying Agent; Conversion Agent.    Initially, the Trustee shall act as Paying
Agent, Conversion Agent and Security Registrar with respect to the 2004 Senior Convertible Notes with the Place of Payment for the 2004 Senior Convertible Notes initially being the Corporate Trust
Office. The Company may appoint and change any Paying Agent, Conversion Agent, Security Registrar or co-registrar or approve a change in the office through which any Paying Agent acts
without notice, other than notice to the Trustee. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion Agent, Security Registrar or
co-registrar. 

        SECTION
1.14    Calculations in Respect of the 2004 Senior Convertible Notes.    The Trustee will act as Calculation
Agent and will, in consultation with the Company, make all calculations called for under 

27

 

the
2004 Senior Convertible Notes other than calculations of interest. These calculations include, but are not limited to, determination of the Trading Price, Current Market Price, Closing Sale Price,
interest rate on the 2004 Senior Convertible Notes, Conversion Rate, and Principal Return of the 2004 Senior Convertible Notes. The Trustee, in consultation with the Company, will make these
calculations in good faith and, absent manifest error, these calculations will be final and binding on the Holders. The Trustee will forward its calculations to any Holder upon the request of such
Holder. 

        SECTION
1.15    Tax Treatment.    The Company hereby agrees, and by purchasing a beneficial ownership interest in the
2004 Senior Convertible Notes each Holder, and any person (including an entity) that acquires a direct or indirect beneficial interest in the 2004 Senior Convertible Notes, will be deemed to have
agreed (i) for United States Federal income tax purposes to treat the 2004 Senior Convertible Notes as indebtedness of the Company that is subject to Treas. Reg. Sec. 1.1275-4 (the
"Contingent Payment Regulations"), (ii) for all tax purposes to treat the 2004 Senior Convertible Notes as indebtedness of the Company, (iii) for purposes of the Contingent Payment
Regulations to treat the cash and fair market value of any Common Stock beneficially received by a beneficial Holder upon any conversion of the 2004 Senior Convertible Notes (or cash in lieu of Common
Stock) as a contingent payment, and (iv) to be bound by the Company's projected payment schedule with respect to the 2004 Senior Convertible Notes. The provisions of this Indenture shall be
interpreted to further this intention and agreement of the parties. The comparable yield and the schedule of projected payments are not determined for any purpose other than for the determination of
interest accruals and adjustment thereof in respect of the 2004 Senior Convertible Notes for United States Federal income tax purposes. The comparable yield and the schedule of projected payments do
not constitute a projection or representation regarding the future stock price or the amounts payable on the 2004 Senior Convertible Notes. For purposes of the foregoing, the Company's determination
of the "comparable yield" is 8.28% per annum, compounded semiannually. A Holder of Senior Convertible Notes may obtain the Yield to Maturity, Issue Date, Comparable Yield and Projected Payment
Schedule (which Schedule is attached hereto as Exhibit C) by submitting a written request to Bausch & Lomb Incorporated, One Bausch & Lomb Place Rochester, New York 14604,
Attention: Chief Financial Officer. 

        SECTION
1.16    Transfer and Exchange.    

        (a)    Transfer and Exchange of Definitive Securities.    When Definitive Securities are presented to the Registrar
with a request: 

        (i)    to
register the transfer of such Definitive Securities; or 

        (ii)   to
exchange such Definitive Securities for an equal principal amount of Definitive Securities of other authorized denominations, the Registrar shall register the
transfer or make the exchange as requested if its reasonable requirements for such transaction are met; provided, however, that the Definitive Securities surrendered for transfer or exchange: 

        (A)  shall
be duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Registrar, duly executed by the Holder
thereof or his attorney duly authorized in writing; and 

        (B)  are
accompanied by the following additional information and documents, as applicable, if such Definitive Securities are Transfer Restricted Securities: 

        (x)   if
such Definitive Securities are being delivered to the Registrar by a Holder for registration in the name of such Holder, without transfer, a certification from such
Holder to that effect (in the form set forth on the reverse side of the Transfer Restricted Security); or 

28

 

        (y)   if
such Definitive Securities are being transferred to the Company, a certification to that effect (in the form set forth on the reverse side of the Transfer Restricted
Security); or 

        (C)  if
such Definitive Securities are being transferred pursuant to an exemption from registration in accordance with Rule 144 under the Securities Act or in reliance
upon another exemption from the registration requirements of the Securities Act, (i) a certification to that effect (in the form set forth on the reverse side of the Transfer Restricted
Security) and (ii) if the Company so requests, an opinion of counsel or other evidence reasonably satisfactory to it as to the compliance with the restrictions set forth in the legend set forth
in Section 1.16(e)(i). 

        In
case of redemption, the Registrar will not be required to register the transfer or exchange of any 2004 Senior Convertible Notes: (i) during a period of 15 days before
any selection of Senior Convertible Notes for redemption; (ii) if the 2004 Senior Convertible Notes have been called for redemption in whole or in part, except the unredeemed portion of any
2004 Senior Convertible Notes being redeemed in part; or (iii) in respect of which a Fundamental Change Purchase Notice or Repurchase Notice has been given and not withdrawn, except the portion
of the 2004 Senior Convertible Note not purchased of any 2004 Senior Convertible Note being purchased in part. 

        (iii)    Restrictions on Transfer of a Definitive Security for a Beneficial Interest in a Global Security.    A
Definitive Security may not be exchanged for a beneficial interest in a Global Security except upon satisfaction of the requirements set forth below. Upon receipt by the Trustee of a Definitive
Security, duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Registrar, together with written instructions directing the Trustee to
make, or to direct the securities custodian to make, an adjustment on its books and records with respect to such Global Security to reflect an increase in the aggregate principal amount of the
securities represented by the Global Security, such instructions to contain information regarding the Depositary account to be credited with such increase, then the Trustee shall cancel such
Definitive Security and cause, or direct the securities custodian to cause, in accordance with the standing instructions and procedures existing between the Depositary and the securities custodian,
the aggregate principal amount of securities represented by the Global Security to be increased by the aggregate principal amount of the Definitive Security to be exchanged and shall credit or cause
to be credited to the account of the Person specified in such instructions a beneficial interest in the Global Security equal to the principal amount of the Definitive Security so canceled. If no
Global Securities are then outstanding and the Global Security has not been previously exchanged for certificated securities pursuant to Section 1.05(b), the Company shall issue and the Trustee
shall authenticate, upon written order of the Company in the form of an Officers' Certificate, a new Global Security in the appropriate principal amount. 

        (b)    Transfer and Exchange of Global Securities.    

        (i)    The
transfer and exchange of Global Securities or beneficial interests therein shall be effected through the Depositary, in accordance with this Supplemental Indenture
(including applicable restrictions on transfer set forth herein, if any) and the procedures of the Depositary therefor. A transferor of a beneficial interest in a Global Security shall deliver a
written order given in accordance with the Depositary's procedures containing information regarding the participant account of the Depositary to be credited with a beneficial interest in such Global
Security or another Global Security and such account shall be credited in accordance with such order with a beneficial interest in the applicable Global Security and the account of the Person making
the transfer shall be debited by an amount equal to the beneficial interest in the Global Security being transferred. 

        (ii)   If
the proposed transfer is a transfer of a beneficial interest in one Global Security to a beneficial interest in another Global Security, the Registrar shall reflect
on its books and records 

29

 

the
date and an increase in the principal amount of the Global Security to which such interest is being transferred in an amount equal to the principal amount of the interest to be so transferred, and
the Registrar shall reflect on its books and records the date and a corresponding decrease in the principal amount of Global Security from which such interest is being transferred. 

        (iii)  Notwithstanding
any other provisions of this Sixth Supplemental Indenture (other than the provisions set forth in Section 1.05), a Global Security may not be
transferred as a whole except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. 

 
 

ARTICLE 2    
    
    MISCELLANEOUS PROVISIONS    
    

        SECTION
2.01    Recitals by the Company.    The recitals in this Sixth Supplemental Indenture are made by the Company
only and not by the Trustee, and all of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in
respect of the 2004 Senior Convertible Notes and of this Sixth Supplemental Indenture as fully and with like effect as if set forth herein in full. 

        SECTION
2.02    Ratification and Incorporation of Original Indenture.    As supplemented hereby, the Original
Indenture is in all respects ratified and confirmed, and the Original Indenture and this Sixth Supplemental Indenture shall be read, taken and construed as one and the same instrument. 

        SECTION
2.03    Executed in Counterparts.    This Sixth Supplemental Indenture may be executed in several
counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. 

        SECTION
2.04    Governing Law.    THIS SUPPLEMENTAL INDENTURE AND THE 2004 SENIOR CONVERTIBLE NOTES SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CHOICE OF LAW PRINCIPLES THEREOF. 

30

        IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name and behalf by its duly authorized officers, all as of the day and year first above written. 

	 	 	BAUSCH & LOMB INCORPORATED
	

 	
 	

By:	

	 	 	Name:

Title:
	

Attest:	
 	

 	

 
	

 Name:

Title:	
 	

 	

 
	

 	
 	

CITIBANK, N.A.,

as Trustee
	

 	
 	

By:	

	 	 	Name:

Title:
	

Attest:	
 	

 	

 
	

 Name:

Title:	
 	

 	

 

SIGNATURE
PAGE 

  

 
 

EXHIBIT A    
    

 
  FORM OF
  2004 FLOATING RATE SENIOR CONVERTIBLE NOTE DUE 2023    
    

FOR
PURPOSES OF SECTIONS 1272,1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, THIS SECURITY IS A CONTINGENT PAYMENT DEBT INSTRUMENT AND WILL ACCRUE ORIGINAL ISSUE DISCOUNT AT THE
ISSUER'S "COMPARABLE YIELD" FOR UNITED STATES FEDERAL INCOME TAX PURPOSES. PURSUANT TO SECTION 1.15 OF THE INDENTURE, THE COMPANY AGREES, AND BY PURCHASING A BENEFICIAL OWNERSHIP INTEREST IN THE 2004
SENIOR CONVERTIBLE NOTES EACH HOLDER, AND ANY PERSON (INCLUDING AN ENTITY) THAT ACQUIRES A DIRECT OR INDIRECT BENEFICIAL INTEREST IN THE 2004 SENIOR CONVERTIBLE NOTES, WILL BE DEEMED TO HAVE AGREED
(I) FOR UNITED STATES FEDERAL INCOME TAX PURPOSES TO TREAT THE 2004 SENIOR CONVERTIBLE NOTES AS INDEBTEDNESS OF THE COMPANY THAT IS SUBJECT TO TREAS. REG. SEC. 1.1275-4 (THE
"CONTINGENT PAYMENT REGULATIONS"), (II) FOR ALL TAX PURPOSES TO TREAT THE 2004 SENIOR CONVERTIBLE NOTES AS INDEBTEDNESS OF THE COMPANY, (III) FOR PURPOSES OF THE CONTINGENT PAYMENT
REGULATIONS, TO TREAT THE CASH AND THE FAIR MARKET VALUE OF ANY COMMON STOCK BENEFICIALLY RECEIVED BY A BENEFICIAL HOLDER UPON ANY CONVERSION OF THE 2004 SENIOR CONVERTIBLE NOTES AS A CONTINGENT
PAYMENT, AND (IV) TO BE BOUND BY THE COMPANY'S PROJECTED PAYMENT SCHEDULE WITH RESPECT TO THE 2004 SENIOR CONVERTIBLE NOTES. THE PROVISIONS OF THIS INDENTURE SHALL BE INTERPRETED TO FURTHER
THIS INTENTION AND AGREEMENT OF THE PARTIES. THE COMPARABLE YIELD AND THE SCHEDULE OF PROJECTED PAYMENTS ARE NOT DETERMINED FOR ANY PURPOSE OTHER THAN FOR THE DETERMINATION OF INTEREST ACCRUALS AND
ADJUSTMENT THEREOF IN RESPECT OF THE 2004 SENIOR CONVERTIBLE NOTES FOR UNITED STATES FEDERAL INCOME TAX PURPOSES. THE COMPARABLE YIELD AND THE SCHEDULE OF PROJECTED PAYMENTS DO NOT CONSTITUTE A
PROJECTION OR REPRESENTATION REGARDING THE FUTURE STOCK PRICE OR THE AMOUNTS PAYABLE ON THE 2004 SENIOR CONVERTIBLE NOTES. FOR PURPOSES OF THE FOREGOING, THE COMPANY'S DETERMINATION OF THE "COMPARABLE
YIELD" IS 8.28% PER ANNUM, COMPOUNDED SEMIANNUALLY. A
HOLDER OF 2004 SENIOR CONVERTIBLE NOTES MAY OBTAIN THE YIELD TO MATURITY, ISSUE DATE, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE (WHICH SCHEDULE IS ATTACHED AS EXHIBIT C TO THE INDENTURE) BY
SUBMITTING A WRITTEN REQUEST TO: BAUSCH & LOMB INCORPORATED, ONE BAUSCH & LOMB PLACE, ROCHESTER, NEW YORK 14604, ATTENTION: CHIEF FINANCIAL OFFICER. 

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

        UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE 

A-1

 

ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

 
 

BAUSCH & LOMB INCORPORATED
  2004 Floating Rate Senior Convertible Note due 2023    
    

	No. 1	 	CUSIP:             
	Issue Date: December    , 2004	 	Original Principal Amount: $                  

        BAUSCH &
LOMB INCORPORATED, a New York corporation (the "Company"), promises to pay to CEDE & CO. or registered assigns, on August 1, 2023, the Accreted Principal
Amount of this 2004 Senior Convertible Note on such date. This 2004 Senior Convertible Note is issued with an Original Principal Amount
of                        DOLLARS
($                        ). 

        This
2004 Senior Convertible Note shall not bear interest except as specified on the reverse side of this 2004 Senior Convertible Note. The Accreted Principal Amount of this 2004 Senior
Convertible Note will accrue as specified on the reverse of this 2004 Senior Convertible Note. This 2004 Senior Convertible Note may be called for redemption at the option of the Company as specified
on the reverse of this 2004 Senior Convertible Note. This 2004 Senior Convertible Note may be subject to repurchase by the Company at the option of the Holder as specified on the reverse of this 2004
Senior Convertible Note. This 2004 Senior Convertible Note is convertible as specified on the reverse of this 2004 Senior Convertible Note. 

        Additional
provisions of this 2004 Senior Convertible Note are set forth on the reverse of this 2004 Senior Convertible Note. 

        IN
WITNESS WHEREOF, the Company has caused this 2004 Senior Convertible Note to be duly executed. 

Dated:

	 	 	BAUSCH & LOMB INCORPORATED
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 

	

TRUSTEE'S CERTIFICATE OF AUTHENTICATION
	

CITIBANK, N.A.

as Trustee, certifies that this

is one of the 2004 Senior Convertible Notes referred

to in the within-mentioned Indenture.
	

By:	

 	

 
	 	
 Authorized Officer	 
	

Dated:	

 

A-2

  

 
 

(Reverse of Security)    
    
    BAUSCH & LOMB INCORPORATED    
    
    2004 SENIOR CONVERTIBLE NOTE DUE 2023    
    

	1.
	Interest
and Contingent Interest. 

        (a)   The
2004 Senior Convertible Notes will bear cash interest on the Original Principal Amount at the annual rate of Six Month LIBOR plus 0.50%, reset
semi-annually on each Interest Payment Date (such day being an "Interest Reset Date"); provided that such rate will never be less than 0%, from August 1, 2004, or from the most
recent date to which interest has been paid or provided for, until August 1, 2010. During such period, the Company will pay cash interest semi-annually in arrears on each Interest
Payment Date to Holders of record at the close of business on each Regular Record Date immediately preceding such Interest Payment Date. The interest rate in effect for the 2004 Senior Convertible
Notes on any day will be: (a) if that day is an Interest Reset Date, the interest determined as of the Determination Date immediately preceding such Interest Reset Date, or (b) if that
day is not an Interest Reset Date, the interest rate determined as of the Determination Date immediately preceding the most recent Interest Reset Date. Each payment of cash interest on the 2004 Senior
Convertible Notes will include interest (including Contingent Interest, if any) accrued through the day immediately preceding the most recent Interest Payment Date (or the Repurchase Date, Redemption
Date, Fundamental Change Date or, in certain circumstances, the Conversion Date, as the case may be). Any payment required to be made on any day that is not a Business Day will be made on the next
succeeding Business Day. 

        LIBOR
will be determined by the Calculation Agent as of the applicable determination date in accordance with the following provisions ("Six-Month LIBOR"): 

        (i)    the
rate for six-month deposits in US dollars commencing on the related Interest Reset Date, that appears on the Moneyline Telerate Page 3750 as of
11:00 A.M., London time, on the interest Determination Date; or 

        (ii)   if
no rate appears on the particular interest Determination Date on the Moneyline Telerate Page 3750, the rate calculated by the Calculation Agent as the arithmetic
mean of at least two offered quotations obtained by the Calculation Agent after requesting the principal London offices of each of four major reference banks in the London interbank market to provide
the Calculation Agent with its offered quotation for deposits in US dollars for the period of six months, commencing on the related Interest Reset Date, to prime banks in the London interbank market
at approximately 11:00 A.M., London time, on that interest Determination Date and in a principal amount that is representative for a single transaction in US dollars in that market at that
time; or 

        (iii)  if
fewer than two offered quotations referred to in clause (ii) are provided as requested, the rate calculated by the Calculation Agent as the arithmetic mean
of the rates quoted at approximately 11:00 A.M., New York time, on the particular interest Determination Date by three major banks in The City of New York selected by the Calculation Agent for
loans in US dollars to leading European banks for a period of six months and in a principal amount that is representative for a single transaction in US dollars in that market at that time; or 

        (iv)  if
the banks so selected by the Calculation Agent are not quoting as mentioned in clause (iii), six-month LIBOR determined on the preceding interest
Determination Date. 

        "Moneyline
Telerate Page 3750" means the display on Moneyline Telerate (or any successor service) on such page (or any other page as may replace such page on such service) for the
purpose of displaying the London interbank rates of major banks for US dollars. 

A-3

 

        If
the Stated Maturity date of the 2004 Senior Convertible Notes falls on a day that is not a LIBOR Business Day, the related payment of principal and interest will be made on the next
LIBOR Business Day as if it were made on the date such payment was due, and no interest will accrue on the amounts so payable for the period from and after such Stated Maturity date to the next LIBOR
Business Day. If any Interest Reset Date or Interest Payment Date (other than at the date of Stated Maturity) would otherwise be a day that is not a LIBOR Business Day, that Interest Reset Date and
Interest Payment Date will be postponed to the next date that is a LIBOR Business Day, except that if such LIBOR Business Day is in the next calendar month, such Interest Reset Date and Interest
Payment Date (other than at the date of Stated Maturity) shall be the immediately preceding LIBOR Business Day. 

        (b)   Until
August 1, 2010, the Accreted Principal Amount of a 2004 Senior Convertible Note will be equal to the Original Principal Amount of $1,000. Beginning
August 1, 2010, the 2004 Senior Convertible Note shall not bear interest, except as specified in this paragraph of the Indenture. From such date, the Original Principal Amount shall commence
increasing daily by the annual rate of Six Month LIBOR plus 0.50% reset on each Interest Reset Date; provided that such rate will never be less than 0%, to produce the Accreted Principal Amount. The
Accreted Principal Amount will compound semi-annually, not daily. On the Stated Maturity, the Holder of this 2004 Senior Convertible Note will receive the fully Accreted Principal Amount
of this 2004 Senior Convertible Note on such date, unless the 2004 Senior Convertible Note has been earlier redeemed, repurchased or converted. Unless cash interest is payable as provided in
paragraph 1(a) or 9 hereof, the accrued yield shall be added to the Accreted Principal Amount per Senior Convertible Note as of the day preceding the most recent Yield Reset Date. The yield
will be calculated using the actual number of days elapsed between the Yield Reset Dates divided by 360. 

        (c)   If
the Accreted Principal Amount hereof or any portion of such Accreted Principal Amount is not paid when due (whether upon acceleration pursuant to Section 502
of the Indenture, upon the date set for payment of the Redemption Price pursuant to paragraph 5 hereof, upon the date set for payment of the Purchase Price or Fundamental Change Purchase Price
pursuant to paragraph 6 hereof or upon the Stated Maturity of this 2004 Senior Convertible Note) or if installments of cash interest due hereon are not paid when due in accordance with this
paragraph, then in each such case the overdue amount shall, to the extent permitted by law, bear interest at Six Month LIBOR plus 0.50% reset on each Interest Reset Date (provided that such rate will
never be less than 0%) as such rate is in effect following the date such overdue amount was due, compounded quarterly, which interest shall accrue from the date such overdue amount was originally due
to the date payment of such amount, including interest thereon, has been made or duly provided for. All such interest shall be payable on demand. The accrual of such interest on overdue amounts shall
be in lieu of, and not in addition to, any subsequent increase in the Accreted Principal Amount. 

        (d)   The
Company will pay Contingent Interest to the Holders of the 2004 Senior Convertible Notes in respect of any six-month interest period from
February 1 to July 31 and August 1 to January 31, commencing on or after August 1, 2010 for which the average Trading Price of a 2004 Senior Convertible Note for the
applicable five Trading Day reference period equals or exceeds 120% of the sum of the Accreted Principal Amount and accrued interest, if any, for a 2004 Senior Convertible Note as of the day
immediately preceding the first day of the applicable six-month interest period. The "five Trading Day reference period" means the five Trading Days ending on the third Trading Day
immediately preceding the relevant six-month interest period. For any six-month interest period in respect of which Contingent Interest is payable, the Contingent Interest
payable on each $1,000 principal amount of Notes shall be equal to 0.30% of the average Trading Price of a 2004 Senior Convertible Note for the applicable five Trading Day reference period. No
Contingent Interest shall be payable on Senior Convertible Notes redeemed pursuant to this paragraph 6 on August 1, 2010 (or, if August 1, 2010 is not a Business Day, on the next
following Business Day). 

A-4

 

        Upon
determination that Holders will be entitled to receive Contingent Interest in respect of a six-month interest period, the Company shall notify the Holders. In connection
with providing such notice, the Company will issue a press release containing information regarding the Contingent Interest determination or publish such information on the Company's then existing
website or through such other public medium as the Company may use at that time. 

        (e)   Interest,
including Contingent Interest, if any, on any 2004 Senior Convertible Note that is payable, and is punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the person in whose name that Senior Convertible Note is registered at the close of business on the Regular Record Date for such interest or Contingent Interest, if any,
at the office or agency of the Company maintained for such purpose. Each installment of interest or Contingent Interest, if any, on any 2004 Senior Convertible Note shall be paid in
same-day funds by transfer to an account maintained by the payee located inside the United States. 

        (f)    The
amount of interest, including Contingent Interest, if any, payable for any partial period shall be computed on the basis of a 360-day year of twelve
30-day months and the actual number of days elapsed in any partial month. In the event that any Interest Payment Date on a 2004 Senior Convertible Note is not a Business Day, then a
payment of the interest, including Contingent Interest, if any, payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in
respect of any such delay) with the same force and effect as if made on the date the payment was originally payable. 

	2.
	Method
of Payment. 

        Subject
to the terms and conditions of the Indenture, the Company will make payments in respect of Accreted Principal Amount, Principal Return, Redemption Prices, Purchase Prices,
Fundamental Change Purchase Prices and on Stated Maturity to Holders who surrender Senior Convertible Notes to a Paying Agent to collect such payments in respect of the 2004 Senior Convertible Notes.
In addition, the Company will pay cash interest beginning November 1, 2003 until August 1, 2010, as more fully described in paragraph 1 hereof. The Company will pay any cash
amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts. However, the Company may make such cash payments by check payable in such
money. 

	3.
	Paying
Agent, Conversion Agent and Registrar. 

        Initially,
Citibank, N.A. (the "Trustee") will act as Paying Agent, Conversion Agent and Registrar. The Company may appoint and change any Paying Agent, Conversion Agent and Registrar or
co-registrar without notice, other than notice to the Trustee except that the Company
will maintain at least one Paying Agent in the State of New York, The City of New York, Borough of Manhattan, which shall initially be an office or agency of the Trustee. The Company or any of its
Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion Agent, Registrar or co-registrar. 

	4.
	Indenture.

        The
Company issued the 2004 Senior Convertible Notes pursuant to an Indenture dated as of September 1, 1991, as subsequently supplemented including by the Sixth Supplemental
Indenture thereto dated December     , 2004 (the "Indenture"), between the Company and the Trustee. The terms of the 2004 Senior Convertible Notes include those stated in the
Indenture and those made part of the Indenture by reference to the 2004 Senior Convertible Notes themselves and the Trust Indenture Act of 1939, as in effect from time to time (the "TIA"). Capitalized
terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The 2004 Senior Convertible Notes are subject to all such terms, and 2004 Senior Convertible Note Holders
are referred to the Indenture and the TIA for a statement of those terms. In the event of any inconsistency between the terms hereof and the terms of the Indenture, the terms of the Indenture shall
prevail. 

A-5

 

        The
2004 Senior Convertible Notes are unsecured and unsubordinated obligations of the Company limited to $160,000,000 aggregate Original Principal Amount but not more than the original
principal amount of all of the Company's Floating Rate Senior Convertible Notes due 2023 surrendered in exchange for the 2004 Senior Convertible Notes. The Indenture does not limit other indebtedness
of the Company, secured or unsecured. 

	5.
	Redemption
at the Option of the Company. 

        No
sinking fund is provided for the 2004 Senior Convertible Notes. The 2004 Senior Convertible Notes are redeemable in cash as a whole, or from time to time in part, at any time at the
option of the Company in accordance with the Indenture at 100% of the Accreted Principal Amount of the 2004 Senior Convertible Notes, plus any accrued and unpaid interest to the Redemption Date,
provided that the 2004 Senior Convertible Notes are not redeemable prior to August 1, 2010. 

        If
less than all of the outstanding 2004 Senior Convertible Notes are to be redeemed, the Trustee will select the 2004 Senior Convertible Notes to be redeemed in Original Principal
Amounts of $1,000 or integral multiples of $1,000 Original Principal Amount. In this case, the Trustee may select the 2004 Senior Convertible Notes by lot, pro rata or by any other method the Trustee
considers fair and appropriate. If a portion of a Holder's Senior Convertible Notes is selected for partial redemption and the Holder converts a portion of the 2004 Senior Convertible Notes, the
converted portion will be deemed to be the portion selected for redemption. 

        If
this 2004 Senior Convertible Note has been converted to a semi-annual cash interest paying note following the occurrence of a Tax Event, the Redemption Price will be equal
to the Restated Principal Amount plus accrued and unpaid interest (including Contingent Interest, if any) from the date of such conversion to but not including the Redemption Date; but in no event
will this 2004 Senior Convertible Note be redeemable before August 1, 2010. 

        No
Contingent Interest shall be payable on 2004 Senior Convertible Notes redeemed pursuant to this paragraph 5 on August 1, 2010 (or if August 1, 2010 is not a
Business Day, on the following Business Day). 

	6.
	Purchase
by the Company at the Option of the Holder. 

        Subject
to the terms and conditions of the Indenture, the Company shall become obligated to purchase, at the option of the Holder, the 2004 Senior Convertible Notes held by such Holder
on August 1 of 2010, 2013 and 2018 at a Purchase Price in cash equal to 100% of the Accreted Principal Amount of such 2004 Senior Convertible Notes on the applicable Repurchase Date plus
accrued and unpaid interest, including Contingent Interest, if any, to but not including the Repurchase Date, upon delivery of a Repurchase Notice containing the information set forth in the
Indenture, at any time from the opening of business on the date that is 20 Business Days prior to such Repurchase Date until the close of business on the third Business Day prior to such Repurchase
Date and upon delivery of the 2004 Senior Convertible Notes to the Paying Agent by the Holder as set forth in the Indenture. 

        If
prior to a Repurchase Date this 2004 Senior Convertible Note has been converted to a semi-annual cash interest paying note following the occurrence of a Tax Event, the
Purchase Price will be equal to the Restated Principal Amount plus accrued and unpaid cash interest, including Contingent Interest, if any, from the date of conversion to the Repurchase Date but not
including the Repurchase Date as provided in the Indenture. 

        At
the option of the Holder and subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase in cash all or a portion of the 2004 Senior
Convertible Notes in integral multiples of $1,000 Original Principal Amount held by such Holder no later than 60 Business Days after the occurrence of a Fundamental Change of the Company for a
Fundamental Change Purchase Price equal to 100% of the Accreted Principal Amount of such 2004 Senior 

A-6

 

Convertible
Notes plus accrued and unpaid interest, including Contingent Interest, if any, to but not including the Fundamental Change Purchase Price Date, which Fundamental Change Purchase Price
shall be paid in cash. 

        Holders
have the right to withdraw any Repurchase Notice or Fundamental Change Purchase Notice, as the case may be, by delivering to the Paying Agent a written notice of withdrawal in
accordance with the provisions of the Indenture. 

        Payment
of the Purchase Price for a 2004 Senior Convertible Note for which a Repurchase Notice has been delivered and not withdrawn is conditioned upon book-entry transfer or
delivery of such 2004 Senior Convertible Note, together with any necessary endorsements, to the Paying Agent at its office in the Borough of Manhattan, The City of New York, or any other office or the
Paying Agent, at any time after delivery of the Repurchase Notice. 

        If
cash sufficient to pay the Purchase Price or Fundamental Change Purchase Price, as the case may be, of all 2004 Senior Convertible Notes or portions thereof to be purchased as of the
Repurchase Date or the Fundamental Change Purchase Price Date, as the case may be, is deposited with the Paying Agent on the Business Day immediately following to the Repurchase Date or on the
Fundamental Change Purchase Price Date, as the case may be, such 2004 Senior Convertible Notes (or portions thereof) will cease to be outstanding, the Accreted Principal Amount shall cease to
increase, and cash interest, including Contingent Interest, if any, shall cease to accrue on such 2004 Senior Convertible Notes (or portions thereof) on such Repurchase Date or Fundamental Change
Purchase Price Date, as the case may be, and the Holder thereof shall have no other rights as such (other than the right to receive the Purchase Price or Fundamental Change Purchase Price, as the case
may be, if any, upon surrender of such 2004 Senior Convertible Notes). This will be the case whether or not book-entry transfer of the 2004 Senior Convertible Note has been made or the
2004 Senior Convertible Note has been delivered to the Paying Agent. 

	7.
	Conversion.

        Conversion Based on Common Stock Price.    Subject to the provisions of this paragraph 7 including the settlement
provisions described below and notwithstanding the fact that any other condition to
conversion described below has not been satisfied, Holders may convert the 2004 Senior Convertible Notes on a Conversion Date at any time starting with the first day of any calendar quarter commencing
after December 31, 2004 if the Closing Sale Price of the Common Stock for at least 20 Trading Days in a period of 30 consecutive Trading Days ending on the last Trading Day of such preceding
calendar quarter is greater than the conversion trigger price per share. The "conversion trigger price" for any calendar quarter shall be 120% of the accreted Conversion Price per share (as defined
below) of Common Stock on the last Trading Day of such preceding calendar quarter. If the foregoing condition is satisfied, then the 2004 Senior Convertible Notes will be convertible at any time of
the option of the Holder, through their maturity. 

        The
"accreted Conversion Price" per share of Common Stock as of any day equals the quotient of: 

	•
	the
Accreted Principal Amount on that day, divided by

	•
	the
Conversion Rate on that day, subject to any adjustments to the Conversion Rate through that day. 

        Beginning
August 1, 2010, the accreted principal amount of a 2004 Senior Convertible Note will be equal to the Original Principal Amount of $1,000 increased daily by the annual
rate of Six Month LIBOR plus 0.50%, reset on each Interest Reset Date. 

A-7

  

        Conversion Based on Trading Price of 2004 Senior Convertible Notes.    Subject to the provisions of this paragraph 7
including the settlement provisions described below and notwithstanding the fact that any other condition to conversion described below has not been satisfied, Holders may convert the 2004 Senior
Convertible Notes, prior to August 1, 2020, during each of the five Business Day periods after any ten consecutive Trading Day period in which the Trading Price per $1,000 Original Principal
Amount of the 2004 Senior Convertible Notes was less than 97% of the product of (i) the average of Closing Sale Prices over the same ten day Trading Day period, and (ii) the applicable
Conversion Rate of the 2004 Senior Convertible Notes. Upon conversion, the Company shall pay the holder of the converted 2004 Senior Convertible Note cash and Common Stock as provided in the
Indenture. 

        The
"Trading Price" means, on any date, the average of the secondary market bid quotations for the 2004 Senior Convertible Notes obtained by the Trustee for $5,000,000 Original Principal
Amount of 2004 Senior Convertible Notes at approximately 3:30 p.m., New York City time, on such date from three independent nationally recognized securities dealers selected by the Company;
provided that if at least three such bids cannot reasonably be obtained by the Trustee, but two bids are obtained, then the average of the two bids shall be used, and if only one such bid can
reasonably be obtained by the Trustee, one bid shall be used; and provided further that if the Trustee cannot reasonably obtain at least one bid for $5,000,000 Original Principal Amount of 2004 Senior
Convertible Notes from a nationally recognized securities dealer or in the Company's reasonable judgment, the bid quotations are not indicative of the secondary market value of the 2004 Senior
Convertible Notes, then the Trading Price per $1,000 Original Principal Amount of 2004 Senior Convertible Notes shall be deemed to be less than 97% of the product of: (a) the applicable
Conversion Rate of the 2004 Senior Convertible Notes, and (b) the Closing Sale Price on such date. 

        The
Trustee (or other conversion agent appointed by the Company) shall have no obligation to determine the Trading Price unless the Company has requested such a determination; and the
Company shall have no obligation to make such request unless a Holder provides it with reasonable evidence that the Trading Price per $1,000 Original Principal Amount of 2004 Senior Convertible Notes
would be less than 97% of the product of the average Closing Sale Prices over the same ten Trading Day period and applicable Conversion Rate. If such evidence is provided, the Company shall instruct
the Trustee (or other conversion agent) to determine the Trading Price of the 2004 Senior Convertible Notes beginning on the next Trading Day and on each successive Trading Day until the Trading Price
per $1,000 Original Principal Amount of 2004 Senior Convertible Notes is greater than 97% of the product of the average Closing Sale Price and the applicable Conversion Rate of the 2004 Senior
Convertible Notes. 

        Conversion upon Redemption.    Subject to the provisions of this paragraph 7 including the settlement provisions
described below and notwithstanding the fact that any other condition described herein to conversion has not been satisfied, a Holder may convert a 2004 Senior Convertible Note or portion of a 2004
Senior Convertible Note which has been called for redemption pursuant to paragraph 5 hereof,
provided such 2004 Senior Convertible Notes are surrendered for conversion prior to the close of business on the Business Day immediately preceding the Redemption Date. 

        Conversion Upon Occurrence of Certain Corporate Transactions.    Subject to the provisions of this paragraph 7 including
the settlement provisions described below and notwithstanding the fact that any other condition described herein to conversion has not been satisfied, in the event the Company is a party to a
consolidation, merger or binding share exchange or a transfer of all or substantially all of the Company's assets pursuant to which the Common Stock would be converted into cash, securities or other
property as set forth in the Indenture, the 2004 Senior Convertible Notes may be surrendered for conversion at any time from and after the date which is 15 days prior to the date announced by
the Company as the anticipated effective time of such transaction until 15 days after the actual effective date of such transaction, and, unless the transactions is a Cash Take-Over
Transaction, as defined in the Indenture, at the effective time of such transaction the right to convert a 2004 Senior Convertible Note 

A-8

 

will
be deemed to have changed into a right to convert it into the kind and amount of cash, securities or other assets of the Company or another person which the Holder would have received if the
Holder had converted its 2004 Senior Convertible Note immediately prior to the transaction. If such transaction is a Cash Take-Over Transaction, the Additional Shares as provided in
Section 1.10(g)(vii) shall be added to the number of shares of Common Stock to be delivered upon conversion as provided in Section 1.10(b)(ii) of the Indenture, unless the
transaction is with an acquirer which has a class of publicly traded securities and the Company elects to treat the transaction as a Public Acquirer Change of Control under
Section 1.10(g)(viii) of the Indenture. If the Company elects to treat the transaction as a Public Acquirer Change of Control, the Company shall cause notice of such election to be
mailed to each Holder, at its address appearing on the 2004 Senior Note register, as soon as practicable and at least 5 trading days prior to the anticipated Effective Date of such transaction and, as
of the Effective Date of the Public Acquirer Change of Control, the 2004 Senior Convertible Notes shall be convertible as described in Section 1.10(g)(viii) of the Indenture. If any
transaction described in this paragraph also constitutes a Fundamental Change, a Holder will be able to require the Company to purchase all or a portion of such Holder's 2004 Senior Convertible Notes
pursuant to Paragraph 6 and of the Indenture. 

        Conversion Upon Other Events.    Subject to the provisions of this paragraph 7 including the settlement provisions
described below and notwithstanding the fact that any other condition to conversion has not been satisfied, in the event that the Company declares a dividend or distribution described in
Section 1.10(g)(ii) of the Indenture, or a dividend or a distribution described in Section 1.10(g)(iv) of the Indenture where, the fair market value, per share, of such
dividend or distribution per share of Common Stock, as determined in the Indenture, exceeds 10% of the Closing Sale Price of the Common Stock on the Business Day immediately preceding the date of
declaration for such dividend or distribution or a Fundamental Change occurs other than pursuant to a transaction described in clause entitled "Conversion Upon Occurrence of Certain Corporate
Transactions" above, the 2004 Senior Convertible Notes may be surrendered for conversion beginning on the date the Company gives notice to the Holders of such right, which shall not be less than
20 days prior to the Ex-Dividend Date for such dividend or distribution or which shall be within 20 days after the occurrence of such Fundamental Change, as the case may be,
and Senior Convertible Notes may be surrendered for conversion at any time thereafter until the earlier of the close of business on the
Business Day prior to the Ex-Dividend Date or until the Company announces that such dividend or distribution will not take place, with respect to a dividend or distribution, or within
30 days of such Fundamental Change Purchase Notice, in the case of such a Fundamental Change. No adjustment to the Conversion Rate or the ability of the Holders to convert this 2004 Senior
Convertible Note will be made if the Company provides, as permitted in the Indenture, for Holders to participate in the transaction without conversion or in other cases specified in the Indenture. 

        A
2004 Senior Convertible Note in respect of which a Holder has delivered a Repurchase Notice or Fundamental Change Purchase Notice exercising the option of such Holder to require the
Company to purchase such 2004 Senior Convertible Note may be converted only if such notice of exercise is withdrawn in accordance with the terms of the Indenture. 

        Conversion Generally.    The initial Conversion Rate is 16.2760 shares of Common Stock per $1,000 Original Principal Amount of
each 2004 Senior Convertible Note, subject to adjustment for certain events described in the Indenture. The Company will pay to the holder of any converted 2004 Senior Convertible Note cash and, if
the aggregate Conversion Value of the 2004 Senior Convertible Note to be converted exceeds the aggregate Accreted Principal Amount, shares of Common Stock as follows: (i) an amount in cash (the
"Principal Return") equal to the lesser of (A) the aggregate Conversion Value of the 2004 Senior Convertible Notes to be converted, and (B) the aggregate Accreted Principal Amount of the
2004 Senior Convertible Notes to be converted; (ii) if the aggregate Conversion Value of the 2004 Senior Convertible Notes to be converted is greater than the Accreted Principal Amount, 

A-9

 

the
number of whole shares of Common Stock equal to the sum of the Daily Share Amounts (as defined in the Indenture) for each Trading Day during the applicable Conversion Settlement Reference Period;
and (iii) an amount in cash in lieu of any fractional shares which would otherwise be payable as a result of the calculation in subsection (ii) above, calculated as provided in the
Indenture. The ability to surrender Senior Convertible Notes for conversion will expire at the close of business on July 31, 2023. 

        In
the event the Company exercises its option pursuant to Section 1.03(h) of the Indenture to have, in lieu of having the Accreted Principal Amount increase, interest accrue on
the 2004 Senior Convertible Note following a Tax Event, the Holder will be entitled on conversion to receive the same number of shares of Common Stock such Holder would have received if the Company
had not exercised such option. 

        Increases
in the Accreted Principal Amount and cash interest (including Contingent Interest, if any, and interest payable upon the occurrence of a Tax Event, if any) will not be paid on
2004 Senior Convertible Notes that are converted, except accrued cash interest will be payable upon conversion of Senior Convertible Notes made concurrently with or after acceleration of 2004 Senior
Convertible Notes following an Event of Default. Any 2004 Senior Convertible Notes surrendered for conversion during the period from the close of business on any Regular Record Date next preceding any
Interest Payment Date to the opening of business on such Interest Payment Date shall be entitled to receive
such interest payable on such 2004 Senior Convertible Notes on the corresponding Interest Payment Date and, except Senior Convertible Notes to be redeemed within this period, 2004 Senior Convertible
Notes surrendered for conversion during such periods must be accompanied by payment of an amount equal to the interest, including Contingent Interest, with respect thereto that the registered Holder
is to receive. 

        To
exercise its conversion right, a Holder must (1) complete and manually sign the conversion notice (or complete and manually sign a facsimile of such notice) and deliver such
notice to the Conversion Agent, (2) surrender the 2004 Senior Convertible Note to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the
Conversion Agent, the Company or the Trustee and (4) pay any transfer or similar taxes, if required. 

        A
Holder may convert a portion of a 2004 Senior Convertible Note if the Original Principal Amount of such portion is $1,000 or an integral multiple of $1,000. No payment or adjustment
will be made for dividends on the Common Stock except as provided in the Indenture. On conversion of a 2004 Senior Convertible Note, increases in the Accreted Principal Amount or cash interest (or
interest if the Company has exercised its option provided for in paragraph 9 hereof) attributable to the period from the Issue Date (or, if the Company has exercised the option referred to in
paragraph 9 hereof, the later of (x) the date of such exercise and (y) the date on which interest was last paid) through the Conversion Date shall not be cancelled, extinguished
or forfeited, but rather shall be deemed to be paid in full to the Holder thereof through the delivery of the cash and Common Stock, if any, as provided above in exchange for the 2004 Senior
Convertible Note being converted pursuant to the terms hereof, and the Principal Return and the fair market value of any shares of Common Stock issued, together with any such cash payment in lieu of
fractional shares, shall be treated as paid and issued, to the extent thereof, first in exchange for increases in the Accreted Principal Amount or cash interest (or interest, if the Company has
exercised its option provided for in paragraph 9 hereof) accrued through the Conversion Date, and the balance, if any, shall be treated as issued in exchange for the Issue Price of the 2004
Senior Convertible Note being converted pursuant to the provisions hereof. 

        The
Conversion Rate will be adjusted for dividends or distributions on Common Stock payable in Common Stock or other Capital Stock of the Company; subdivisions, combinations or certain
reclassifications of Common Stock; distributions to all Holders of Common Stock of certain rights to 

A-10

 

purchase
Common Stock for a period expiring within 60 days of the record date for such distribution at less than the current market price of the Common Stock at the time of the announcement of
the distribution, distributions to such Holders of assets or debt securities of the Company or certain rights to purchase securities of the Company (including cash dividends or distributions) and
payments in respect of a tender offer or exchange offer for Common Stock by the Company or by a person other than the Company or one of its subsidiaries to the extent that the cash and value of any
other consideration included in the payment per share of Common Stock exceed the current market price per share of Common Stock on the Trading Day next succeeding the last date on which tenders or
exchanges may be made pursuant to such tender or exchange offer, as provided in the Indenture. However, no adjustment need be made if 2004 Senior Convertible Note Holders may participate in the
transaction or in certain other cases. The Company from time to time may voluntarily increase the Conversion Rate. 

        If
the Company is a party to a consolidation, merger or binding share exchange or a transfer of all or substantially all of its assets, or upon certain distributions described in the
Indenture, the right to convert a 2004 Senior Convertible Note into Common Stock may be changed into a right to convert it into securities, cash or other assets of the Company or another person. 

        The
Conversion Rate will not be adjusted for increases in the Accreted Principal Amount or accrued cash interest, and Contingent Interest, if any. 

	8.
	Conversion
Arrangement on Call for Redemption. 

        Any
2004 Senior Convertible Notes called for redemption, unless surrendered for conversion before the close of business on the Redemption Date, may be deemed to be purchased from the
Holders of such 2004 Senior Convertible Notes at an amount not less than the Redemption Price, by one or more investment bankers or other purchasers who may agree with the Company to purchase such
2004 Senior Convertible Notes from the Holders, to convert them into Common Stock of the Company and to make payment for such 2004 Senior Convertible Notes to the Trustee in trust for such Holders. 

	9.
	Tax
Event. 

        From
and after the date (the "Tax Event Date") of the occurrence of a Tax Event after August 1, 2010, the Company shall have the option to elect, by notice to the Trustee, in lieu
of having Accreted Principal Amount increase, to have interest accrue and be paid in cash at the annual rate equal to Six Month LIBOR plus 0.50% reset on each Interest Reset Date; provided that such
rate shall never be less than 0%, on a Restated Principal Amount per $1,000 Original Principal Amount (the "Restated Principal Amount") equal to the accrued Accreted Principal Amount through the Tax
Event Date or the date the Company exercises the option provided for in this paragraph 9, whichever is later (the "Option Exercise Date"). Such interest shall be payable
semi-annually on February 1 and August 1 of each year to Holders of record at the close of business on January 15 and July 15 immediately preceding such
interest payment date. Interest will accrue from the most recent date on which interest has been paid or, if no interest has been paid, from the Option Exercise Date. 

        The
Trustee shall notify Holders of Senior Convertible Notes within 15 days after the Option Exercise Date that the Company has exercised the option provided for in this
paragraph. 

	10.
	Defaulted
Interest. 

        Except
as otherwise specified with respect to the 2004 Senior Convertible Notes, any defaulted interest on any 2004 Senior Convertible Note shall forthwith cease to be payable to the
registered Holder thereof on the relevant Regular Record Date or accrual date, as the case may be, by virtue of having been such Holder, and such defaulted interest may be paid by the Company as
provided for in the Indenture. 

A-11

 

	11.
	Denominations;
Transfer; Exchange. 

        The
2004 Senior Convertible Notes are in fully registered form, without coupons, in denominations of $1,000 of Original Principal Amount and integral multiples of $1,000. A Holder may
transfer or exchange 2004 Senior Convertible Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents
and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not transfer or exchange any 2004 Senior Convertible Notes selected for redemption (except, in the case
of a 2004 Senior Convertible Note to be redeemed in part, the portion of the 2004 Senior Convertible Note not to be redeemed) or any 2004 Senior Convertible Notes in respect of which a Repurchase
Notice or Designated Event notice has been given and not withdrawn (except, in the case of a 2004 Senior Convertible Note to be purchased in part, the portion of the 2004 Senior Convertible Note not
to be
purchased) or any 2004 Senior Convertible Notes for a period of 15 days before the mailing of a notice of redemption of Senior Convertible Notes to be redeemed. 

	12.
	Persons
Deemed Owners. 

        The
registered Holder of this 2004 Senior Convertible Note may be treated as the owner of this 2004 Senior Convertible Note for all purposes. 

	13.
	Unclaimed
Money or Securities. 

        The
Trustee and the Paying Agent shall return to the Company, upon written request any money or securities held by them for the payment of any amount with respect to the 2004 Senior
Convertible Notes that remains unclaimed for two years, subject to applicable unclaimed property laws. After return to the Company Holders entitled to the money or securities must look to the Company
for payment as general creditors unless an applicable abandoned property law designates another person. 

	14.
	Amendment;
Waiver. 

        Subject
to certain exceptions, the Indenture or the 2004 Senior Convertible Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal
amount of the then outstanding Senior Convertible Notes, and any existing default may be waived with the consent of the Holders of a majority in aggregate Accreted Principal Amount of the then
outstanding Senior Convertible Notes. 

        Without
the consent of any Holder, the Indenture or the 2004 Senior Convertible Notes may be amended to: (s) cure any ambiguity or correct or supplement any defective or
inconsistent provision contained in the Indenture, or make any other changes in the provisions of the Indenture which the Company and the Trustee may deem necessary or desirable provided such
amendment does not materially and adversely affect the legal rights under the Indenture of the Holders of 2004 Senior Convertible Notes; (t) provide for uncertificated 2004 Senior Convertible
Notes in addition to or in place of certificated 2004 Senior Convertible Notes; (u) provide for the assumption of the Company's obligations to Holders of 2004 Senior Convertible Notes in
circumstances required under the Indenture; (v) provide for exchange rights of Holders of 2004 Senior Convertible Notes in certain circumstances; (w) reduce the Conversion Price;
(x) evidence and provide for the acceptance of the
appointment under the Indenture of a successor Trustee; (y) make any change that would provide any additional rights or benefits to the Holders of 2004 Senior Convertible Notes or that does not
adversely affect the legal rights under the Indenture of any such Holder; or (z) comply with the requirements of the Commission in order to effect or maintain the qualification of the Indenture
under the TIA. 

        Without
the consent of each Holder affected, an amendment or waiver may not (with respect to any 2004 Senior Convertible Notes held by a non-consenting Holder):
(a) reduce the percentage of Original Principal Amount of 2004 Senior Convertible Notes whose Holders must consent to an amendment, supplement or waiver; (b) reduce the principal of, or
premium on, or change the Stated 

A-12

 

Maturity
of any 2004 Senior Convertible Note or, except as permitted pursuant to clause (s), (v), (y) or (z) of the immediately preceding paragraph, alter the provisions with
respect to the redemption or repurchase of the 2004 Senior Convertible Notes; (c) reduce the rate of or change the time for payment of interest, including Contingent Interest, or defaulted
interest, on any 2004 Senior Convertible Notes; (d) waive a Default or Event of Default in the payment of principal of or premium, if any, or interest (including Contingent Interest, if any) on
the 2004 Senior Convertible Notes (except a rescission of acceleration of the 2004 Senior Convertible Notes by the Holders of at least a majority in aggregate Accreted Principal Amount of the 2004
Senior Convertible Notes and a waiver of the payment default that resulted from such acceleration); (e) make the principal of, or premium, if any, or interest (including Contingent Interest, if
any) on, any 2004 Senior Convertible Note payable in money other than as provided for in the Indenture and in the 2004 Senior Convertible Notes; (f) make any change in the provisions of the
Indenture relating to waivers of past Defaults or the rights of Holders of Senior Convertible Notes to receive payments of principal of, premium, if any, or interest (including Contingent Interest, if
any) on the 2004 Senior Convertible Notes; (g) waive a redemption or repurchase payment with respect to any 2004 Senior Convertible Note; (h) except as permitted by the Indenture,
increase the Conversion Price or modify the provisions of the Indenture relating to conversion of the 2004 Senior Convertible Notes in a manner adverse to the Holders; (i) make any change to
the abilities of Holders of Senior Convertible Notes to enforce their rights under the Indenture or the foregoing provisions of this paragraph 14 or this provision; (j) reduce the
Redemption Price, Purchase Price or Fundamental Change Purchase Price of the 2004 Senior Convertible Notes; or (k) make any change that adversely affects the right to convert the 2004 Senior
Convertible Notes. 

	15.
	Defaults
and Remedies. 

        An
Event of Default is: (a) default for 30 days or more in payment of any installment of interest (including contingent interest, if any) on the 2004 Senior Convertible
Notes; (b) default in payment of the principal of, or premium, if any, on the 2004 Senior Convertible Notes, when due at maturity, upon repurchase, upon acceleration or otherwise;
(c) default in the Company's obligation to repurchase Senior Convertible Notes upon the Company's exercise of its repurchase option pursuant to Section 1.06 of the Indenture, upon the
occurrence of a Fundamental Change pursuant to Section 1.07 of the Indenture or upon the exercise by a Holder of its option to require the Company to repurchase such Holder's Senior Convertible
Notes pursuant to Section 1.08 of the Indenture; (d) default by the Company in its obligation to provide notice of a Fundamental Change.; (e) default in the Company's obligation
to convert the 2004 Senior Convertible Notes upon exercise of a Holder's conversion rights pursuant to Section 1.10 of the Indenture; (f) default by the Company for 60 days or
more after notice as provided in the Indenture in the observance or performance of any other covenants in the Indenture; (g) default by the Company under any mortgage, indenture or instrument
under which there may be issued, or by which there may be secured or evidenced, any indebtedness of the Company for money borrowed which and shall result in more than $20,000,000 in principal amount
of such indebtedness becoming declared due and payable, and such acceleration shall not have been rescinded, annulled or discharged within 30 days after notice is given as specified in the
Indenture; or (h) certain events involving bankruptcy, insolvency or reorganization of the Company or any Material Subsidiary. 

        If
an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate Accreted Principal Amount of the then outstanding Senior Convertible Notes may
declare the unpaid principal of, premium, if any, and accrued and unpaid interest (including Contingent Interest, if any) on all Senior Convertible Notes then outstanding to be due and payable
immediately, except that in the case of an Event of Default arising from certain events of bankruptcy, insolvency, or reorganization with respect to the Company or any of its Material Subsidiaries,
all outstanding Senior Convertible Notes become due and payable without further action or notice. Holders of Senior Convertible Notes may not enforce the Indenture or the 2004 Senior Convertible Notes
except as provided in the Indenture. The Trustee may require an indemnity satisfactory to it before it enforces the Indenture or the 2004 Senior Convertible Notes. Subject to certain limitations,
Holders of a 

A-13

 

majority
in principal amount of the then outstanding Senior Convertible Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders notice of any
continuing default (except a default in payment of principal, premium, if any, or interest (including Contingent Interest, if any) if it determines that withholding notice is in their interests. The
Company must furnish annual compliance certificates to the Trustee. 

	16.
	Trustee
Dealings with the Company. 

        Subject
to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Senior Convertible Notes
and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were
not Trustee. 

	17.
	No
Recourse Against Others. 

        A
director, officer, employee, agent, representative, stockholder or equity Holder, as such, of the Company shall not have any liability for any obligations of the Company under the 2004
Senior Convertible Notes or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a 2004 Senior Convertible Note, each 2004Senior
Convertible Note Holder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the 2004 Senior Convertible Notes. 

	18.
	Authentication.

        This
2004 Senior Convertible Note shall not be valid until an authorized signatory of the Trustee manually signs the Trustee's Certificate of Authentication on the other side of this
2004 Senior Convertible Note. 

	19.
	Abbreviations.

        Customary
abbreviations may be used in the name of a 2004 Senior Convertible Note Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT
TEN (=joint tenants with right of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act). 

	20.
	GOVERNING
LAW. 

        THIS
2004 SENIOR CONVERTIBLE NOTE AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CHOICE OF LAW PRINCIPLES
THEREOF. 

        The
Company will furnish to any 2004 Senior Convertible Note Holder upon written request and without charge a copy of the Indenture that has in it the text of this 2004 Senior
Convertible Note in larger type. Requests may be made to: 

Bausch &
Lomb Incorporated

One Bausch & Lomb Place

Rochester, New York 14604

Attention: Chief Financial Officer 

A-14

 

 
 

ABBREVIATIONS    
    

        The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to
applicable laws or regulations: 

	TEN COM—	 	as tenants in common
	

UNIF GIFT MIN ACT—	
 	

             Custodian             
	 	 	(Cust)                    (Minor)
	

 	
 	

under Uniform Gifts to Minors Act
	

TEN ENT—	
 	

as tenants by the entireties
	

JT TEN—	
 	

as joint tenants with rights of survivorship and not as

tenants in common                      (State)

Additional
abbreviations may also be used though not on the above list. 

A-15

  

 
 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE
  OR REGISTRATION OF TRANSFER OF SECURITIES    
    

        This Certificate relates to $                principal amount of securities held in (check applicable
space)    book-entry or
    definitive form by                        (the "Transferor"). 

The
Transferor (check one box below): 

	o
	has
requested the Trustee by written order to deliver, in exchange for its beneficial interest in the Global Security held by the
Depositary, a security or securities in definitive, registered form of authorized denominations in an aggregate principal amount equal to its beneficial interest in such Global Security (or the
portion thereof indicated above); or

	o
	has
requested the Trustee by written order to exchange or register the transfer of a security or securities. 

	 	 	
 [INSERT NAME OF TRANSFEROR]

	

Dated:	
 	

	
 	

 
	By:	 	
	 	 

 
 

SIGNATURE GUARANTEE    
    

        Signatures must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Security Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such other "signature guarantee program" as may be determined by the Security Registrar in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

A-16

 
[TO
BE ATTACHED TO GLOBAL SECURITIES] 

 
 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY    
    

        The following increases or decreases in Principal Amount represented by this Global Security have been made: 

	Date
	 	Amount of decrease in

Principal Amount of

this Global Security
	 	Amount of increase in

Principal Amount of

this Global Security
	 	Principal Amount of

this Global Security

following such decrease

or increase
	 	Signature of

authorized signatory

of Trustee or

Securities Custodian

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

A-17

 
 
 

ASSIGNMENT FORM    
    

To
assign this security, fill in the form below:

I or we assign and transfer this security to 

	
 (Print or type assignee's name, address and zip code)
	

 (Insert assignee's social security or tax I.D. No.)

and
irrevocably appoint                        agent to transfer this security on the books of the Company. The agent may substitute
another to act for him. 

	Date:	 	
	 	Your Signature:	 	

	

 Sign exactly as your name appears on the other side of this security.

A-18

  

 
 

FORM OF CONVERSION NOTICE    
    

To:
Bausch & Lomb Incorporated 

        The
undersigned registered Holder of this security hereby exercises the option to convert this security, or portion hereof (which is $1,000 principal amount or an integral multiple
thereof) designated below, for shares of Common Stock of Bausch & Lomb Incorporated in accordance with the terms of the Indenture referred to in this security, and directs that the Principal
Return, shares of Common Stock, if any, issuable and deliverable upon such conversion, together with any check for cash deliverable upon such conversion in lieu of fractional shares, and any
securities representing any unconverted principal amount hereof, be issued and delivered to the registered Holder hereof unless a different name has been indicated below. If the Principal Return, any
shares of Common Stock, or any portion of this security not converted are to be issued in the name of a Person other than the undersigned, the undersigned shall pay all transfer taxes payable with
respect thereto. 

        This
notice shall be deemed to be an irrevocable exercise of the option to convert this security. 

	Dated:	 	 
	

 	
 	

	

 	
 	

 Signature(s)
	 	 	Signature(s) must be guaranteed by a commercial bank or trust company or a member firm of a major stock exchange if shares of Common Stock are to be issued, or securities to be delivered, other than to or in the name of
the registered Holder.
	

 	
 	

 Signature Guarantee
	

Fill in for registration of shares if to be delivered, and securities if to be issued other than to and in the name of registered Holder:	
 	

 
	

 (Name)	
 	

Certificate No(s) of securities (not required for Global Securities)                       
	

 (Street Address)	
 	

Principal amount to be converted

(if less than all): $        ,000
	

 (City state and zip code)

Please print name and address	
 	

 Social Security or Other Taxpayer I.D. Number

A-19

 
 
 

FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE    
    

To:
Bausch & Lomb Incorporated 

        The
undersigned registered Holder of this security hereby acknowledges receipt of a notice from Bausch & Lomb Incorporated (the "Company") as to the occurrence of a Fundamental
Change with respect to the Company and requests and instructs the Company to repurchase this security, or the portion hereof (which is $1,000 principal amount or a integral multiple thereof)
designated below, in accordance with the terms and conditions specified in this security and the Indenture referred to in this security and directs that the check in payment for this security or the
portion thereof and any securities representing any unrepurchased principal amount hereof, be issued and delivered to the registered Holder hereof unless a different name has been indicated below. If
any portion of this security not repurchased is to be issued in the name of a Person other than the undersigned, the undersigned shall pay all transfer taxes payable with respect thereto. 

	Dated:	 	 
	

 	
 	

	

 	
 	

 Signature(s) must be guaranteed by a commercial bank or trust company or a member firm of a major stock exchange if securities are to be delivered, other than to or in the name of the registered
Holder.
	

 	
 	

 Signature Guarantee

Fill
in for registration of shares if to be delivered, and securities if to be issued other than to and in the name of registered Holder: 

	
 (Name)	 	Certificate No(s) of securities (not required for Global Securities)                     
	

 (Street Address)	
 	

Principal amount to be purchased

(if less than all): $        ,000
	

 (City state and zip code)

Please print name and address	
 	

 Social Security or Other Taxpayer Number

A-20

 
 
 

FORM OF REPURCHASE NOTICE    
    

To:
Bausch & Lomb Incorporated 

        The
undersigned registered Holder of this security hereby acknowledges receipt of a notice from Bausch & Lomb Incorporated (the "Company") as to the Holder's option to require the
Company to repurchase this security and requests and instructs the Company to repurchase this security, or the portion hereof (which is $1,000 principal amount or a integral multiple thereof)
designated below, in accordance with the terms and conditions specified in this security and the Indenture referred to in this security and directs that the consideration in payment for this security
or the portion thereof and any securities representing any unrepurchased principal amount hereof, be issued and delivered to the registered Holder hereof unless a different name has been indicated
below. The 2004 Senior Convertible Notes shall be purchased as of the Repurchase Date pursuant to the terms and conditions specified in the 2004 Senior Convertible Notes and in the Indenture. In the
event the Company elected, pursuant to the notice that it is required to give, to pay the Purchase Price in shares of Common Stock, but the Purchase Price is ultimately paid to the Holder entirely in
cash because any of the conditions to payment of the Purchase Price, or any portion of the Purchase Price, in shares of Common Stock is not satisfied prior to the close of business on the last
Business Day prior to the Repurchase Date, the undersigned elects1 [strike out the inapplicable election]: (A) to withdraw the purchase notice as to
$                        in aggregate principal amount of the 2004 Senior Convertible Notes to which it relates; or (B) to
receive cash in respect of the entire Purchase Price for all Senior
Convertible Notes subject to the purchase notice. If any portion of this security not repurchased is to be issued in the name of a Person other than the undersigned, the undersigned shall pay all
transfer taxes payable with respect thereto. The term "consideration" as used within this paragraph shall mean cash or Common Stock. 

	Dated:	 	 
	 	 	

	

 	
 	

 Signature(s)
	 	 	Signature(s) must be guaranteed by a commercial bank or trust company or a member firm of a major stock exchange if securities are to be delivered, other than to or in the name of the registered Holder.
	

 	
 	

 Signature Guarantee

Fill
in for registration of securities if to be issued other than to and in the name of registered Holder: 

	
 (Name)	 	Certificate No(s) of securities (not required for Global Securities)                     
	

 (Street Address)	
 	

Principal amount to be purchased

(if less than all): $        ,000
	

 (City state and zip code)

Please print name and address	
 	

 Social Security or Other Taxpayer Number

	1
	If
a Holder fails to indicate its choice with respect to this election, such Holder will be deemed to have elected to receive cash in respect of the entire Purchase Price
for all Senior Convertible Notes subject to the Company Purchase Notice in these circumstances. 

A-21

  

EXHIBIT B  

  
 

    CERTIFICATE OF AUTHENTICATION    
    

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

	 	 	CITIBANK, N.A.,

as Trustee
	

 	
 	

By:	

 Authorized Officer

B-1

  

EXHIBIT C  

  
 

    PROJECTED PAYMENT SCHEDULE    
    

	Date
	 	Actual/360

Factor
	 	Projected

Stock Price

(Based on Return)
	 	Projected

6 months LIBOR

(annual rate)
	 	Accreted Principal

Value of

Convertible
	 	Bond Principal

Accreted at

Comparable Yield
	 	Market Value of

Covert Feature

(Based on Parity)
	 	Non Contingent

Payment
	 	Contingent

Payment
	 	Tax

Deduction
	 	Payment Upon

Conversion Pri

to Maturity
	 	Total

Projected

Payments
	 	Discount Factor

Using Comparable

Yield
	 	Present Value of

Contingent

Payment
	 	Present Value

of Total

Projected

Payments

	08/04/2003	 	 	 	$	40.96	 	1.10%	 	$	1,000.00	 	$	1,000.00	 	$	666.66	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	 	 	—	 	 	 
	02/01/2004	 	0.503	 	$	42.78	 	1.17%	 	$	1,000.00	 	$	1,033.59	 	$	696.31	 	$	8.04	 	$	0.00	 	$	41.63	 	 	—	 	$	8.04	 	0.9600	 	$	0.00	 	$	7.72
	08/01/2004	 	0.506	 	$	44.69	 	1.65%	 	$	1,000.00	 	$	1,068.39	 	$	727.45	 	$	8.46	 	$	0.00	 	$	43.27	 	 	—	 	$	8.46	 	0.9215	 	$	0.00	 	$	7.80
	02/01/2005	 	0.511	 	$	46.71	 	2.01%	 	$	1,000.00	 	$	1,102.59	 	$	760.33	 	$	11.01	 	$	0.00	 	$	45.21	 	 	—	 	$	11.01	 	0.8840	 	$	0.00	 	$	9.74
	08/01/2005	 	0.503	 	$	48.79	 	2.75%	 	$	1,000.00	 	$	1,135.87	 	$	794.14	 	$	12.63	 	$	0.00	 	$	45.90	 	 	—	 	$	12.63	 	0.8487	 	$	0.00	 	$	10.72
	02/01/2006	 	0.511	 	$	51.00	 	3.24%	 	$	1,000.00	 	$	1,167.31	 	$	830.04	 	$	16.62	 	$	0.00	 	$	48.07	 	 	—	 	$	16.62	 	0.8143	 	$	0.00	 	$	13.54
	08/01/2006	 	0.503	 	$	53.27	 	3.74%	 	$	1,000.00	 	$	1,197.10	 	$	866.96	 	$	18.81	 	$	0.00	 	$	48.60	 	 	—	 	$	18.81	 	0.7817	 	$	0.00	 	$	14.70
	02/01/2007	 	0.511	 	$	55.67	 	4.18%	 	$	1,000.00	 	$	1,226.11	 	$	906.15	 	$	21.65	 	$	0.00	 	$	50.66	 	 	—	 	$	21.65	 	0.7500	 	$	0.00	 	$	16.23
	08/01/2007	 	0.503	 	$	58.15	 	4.42%	 	$	1,000.00	 	$	1,253.62	 	$	946.44	 	$	23.53	 	$	0.00	 	$	51.04	 	 	—	 	$	23.53	 	0.7200	 	$	0.00	 	$	16.94
	02/01/2008	 	0.511	 	$	60.78	 	4.78%	 	$	1,000.00	 	$	1,281.53	 	$	989.23	 	$	25.14	 	$	0.00	 	$	53.05	 	 	—	 	$	25.14	 	0.6908	 	$	0.00	 	$	17.37
	08/01/2008	 	0.506	 	$	63.50	 	4.88%	 	$	1,000.00	 	$	1,308.50	 	$	1,033.46	 	$	26.67	 	$	0.00	 	$	53.64	 	 	—	 	$	26.67	 	0.6630	 	$	0.00	 	$	17.68
	02/01/2009	 	0.511	 	$	66.37	 	5.15%	 	$	1,000.00	 	$	1,336.38	 	$	1,080.18	 	$	27.50	 	$	0.00	 	$	55.38	 	 	—	 	$	27.50	 	0.6361	 	$	0.00	 	$	17.49
	08/01/2009	 	0.503	 	$	69.32	 	5.28%	 	$	1,000.00	 	$	1,363.61	 	$	1,128.22	 	$	28.40	 	$	0.00	 	$	55.63	 	 	—	 	$	28.40	 	0.6107	 	$	0.00	 	$	17.35
	02/01/2010	 	0.511	 	$	72.45	 	5.49%	 	$	1,000.00	 	$	1,391.79	 	$	1,179.22	 	$	29.53	 	$	0.00	 	$	57.71	 	 	—	 	$	29.53	 	0.5859	 	$	0.00	 	$	17.30
	08/01/2010	 	0.503	 	$	75.67	 	5.54%	 	$	1,000.00	 	$	1,419.62	 	$	1,231.66	 	$	30.11	 	$	0.00	 	$	57.94	 	 	—	 	$	30.11	 	0.5625	 	$	0.00	 	$	16.94
	02/01/2011	 	0.511	 	$	79.09	 	5.70%	 	$	1,030.85	 	$	1,475.92	 	$	1,287.34	 	$	0.00	 	$	3.78	 	$	60.08	 	 	—	 	$	3.78	 	0.5396	 	$	2.04	 	$	2.04
	08/01/2011	 	0.503	 	$	82.61	 	5.69%	 	$	1,062.97	 	$	1,533.48	 	$	1,344.58	 	$	0.00	 	$	3.88	 	$	61.44	 	 	—	 	$	3.88	 	0.5181	 	$	2.01	 	$	2.01
	02/01/2012	 	0.511	 	$	86.35	 	5.81%	 	$	1,096.61	 	$	1,594.25	 	$	1,405.37	 	$	0.00	 	$	4.12	 	$	64.90	 	 	—	 	$	4.12	 	0.4970	 	$	2.05	 	$	2.05
	08/01/2012	 	0.506	 	$	90.21	 	5.97%	 	$	1,131.58	 	$	1,656.72	 	$	1,468.21	 	$	0.00	 	$	4.26	 	$	66.74	 	 	—	 	$	4.26	 	0.4771	 	$	2.03	 	$	2.03
	02/01/2013	 	0.511	 	$	94.29	 	6.06%	 	$	1,168.98	 	$	1,722.33	 	$	1,534.58	 	$	0.00	 	$	4.50	 	$	70.11	 	 	—	 	$	4.50	 	0.4577	 	$	2.06	 	$	2.06
	08/01/2013	 	0.503	 	$	98.48	 	6.03%	 	$	1,207.53	 	$	1,789.40	 	$	1,602.82	 	$	0.00	 	$	4.63	 	$	71.70	 	 	—	 	$	4.63	 	0.4394	 	$	2.03	 	$	2.03
	02/01/2014	 	0.511	 	$	102.93	 	6.09%	 	$	1,247.80	 	$	1,860.21	 	$	1,675.28	 	$	0.00	 	$	4.92	 	$	75.73	 	 	—	 	$	4.92	 	0.4216	 	$	2.07	 	$	2.07
	08/01/2014	 	0.503	 	$	107.51	 	6.12%	 	$	1,289.11	 	$	1,932.60	 	$	1,749.78	 	$	0.00	 	$	5.05	 	$	77.44	 	 	—	 	$	5.05	 	0.4047	 	$	2.05	 	$	2.05
	02/01/2015	 	0.511	 	$	112.37	 	6.16%	 	$	1,332.72	 	$	2,009.02	 	$	1,828.88	 	$	0.00	 	$	5.37	 	$	81.79	 	 	—	 	$	5.37	 	0.3883	 	$	2.08	 	$	2.08
	08/01/2015	 	0.503	 	$	117.36	 	6.33%	 	$	1,377.31	 	$	2,087.14	 	$	1,901.21	 	$	0.00	 	$	5.52	 	$	83.64	 	 	—	 	$	5.52	 	0.3728	 	$	2.06	 	$	2.06
	02/01/2016	 	0.511	 	$	122.67	 	6.36%	 	$	1,425.42	 	$	2,169.61	 	$	1996.57	 	$	0.00	 	$	5.86	 	$	88.33	 	 	—	 	$	5.86	 	0.3576	 	$	2.09	 	$	2.09
	08/01/2016	 	0.506	 	$	128.15	 	6.38%	 	$	1,474.84	 	$	2,254.38	 	$	2,085.84	 	$	0.00	 	$	6.06	 	$	90.82	 	 	—	 	$	6.06	 	0.3433	 	$	2.08	 	$	2.08
	02/01/2017	 	0.511	 	$	133.95	 	6.38%	 	$	1,526.67	 	$	2,343.38	 	$	2,180.14	 	$	0.00	 	$	6.40	 	$	95.41	 	 	—	 	$	6.40	 	0.3293	 	$	2.11	 	$	2.11
	08/01/2017	 	0.503	 	$	139.90	 	6.39%	 	$	1,579.49	 	$	2,434.36	 	$	2,277.09	 	$	0.00	 	$	6.58	 	$	97.56	 	 	—	 	$	6.58	 	0.3162	 	$	2.08	 	$	2.08
	02/01/2018	 	0.511	 	$	146.23	 	6.38%	 	$	1,635.07	 	$	2,530.40	 	$	2,380.03	 	$	0.00	 	$	6.98	 	$	103.02	 	 	—	 	$	6.98	 	0.3033	 	$	2.12	 	$	2.12
	08/01/2018	 	0.503	 	$	152.73	 	6.47%	 	$	1,691.62	 	$	2,628.56	 	$	2,485.86	 	$	0.00	 	$	7.18	 	$	105.34	 	 	—	 	$	7.18	 	0.2912	 	$	2.09	 	$	2.09
	02/01/2019	 	0.511	 	$	159.64	 	6.45%	 	$	1,751.86	 	$	2,732.18	 	$	2,598.24	 	$	0.00	 	$	7.62	 	$	111.14	 	 	—	 	$	7.62	 	0.2794	 	$	2.13	 	$	2.13
	08/01/2019	 	0.503	 	$	166.74	 	6.43%	 	$	1,813.06	 	$	2,838.08	 	$	2,713.78	 	$	0.00	 	$	7.84	 	$	113.74	 	 	—	 	$	7.84	 	0.2682	 	$	2.10	 	$	2.10
	02/01/2020	 	0.511	 	$	174.27	 	6.40%	 	$	1,877.27	 	$	2,949.87	 	$	2,836.46	 	$	0.00	 	$	8.32	 	$	120.11	 	 	—	 	$	8.32	 	0.2573	 	$	2.14	 	$	2.14
	08/01/2020	 	0.506	 	$	182.07	 	6.37%	 	$	1,942.77	 	$	3,064.75	 	$	2,963.30	 	$	0.00	 	$	8.60	 	$	123.48	 	 	—	 	$	8.60	 	0.2470	 	$	2.12	 	$	2.12
	02/01/2021	 	0.511	 	$	190.30	 	6.34%	 	$	2,011.02	 	$	3,185.36	 	$	3,097.26	 	$	0.00	 	$	9.09	 	$	129.70	 	 	—	 	$	9.09	 	0.2370	 	$	2.15	 	$	2.15
	08/01/2021	 	0.503	 	$	198.76	 	6.30%	 	$	2,080.17	 	$	3,308.62	 	$	3,234.99	 	$	0.00	 	$	9.34	 	$	132.61	 	 	—	 	$	9.34	 	0.2275	 	$	2.13	 	$	2.13
	02/01/2022	 	0.511	 	$	207.74	 	6.265	 	$	2,152.51	 	$	3,438.72	 	$	3,381.23	 	$	0.00	 	$	9.92	 	$	140.02	 	 	—	 	$	9.92	 	0.2182	 	$	2.17	 	$	2.17
	08/01/2022	 	0.503	 	$	216.98	 	6.22%	 	$	2,225.71	 	$	3,571.67	 	$	3,531.59	 	$	0.00	 	$	10.20	 	$	143.15	 	 	—	 	$	10.20	 	0.2095	 	$	2.14	 	$	2.14
	02/01/2023	 	0.511	 	$	226.79	 	6.18%	 	$	2,302.19	 	$	3,712.00	 	$	3,691.25	 	$	0.00	 	$	10.83	 	$	151.15	 	 	—	 	$	10.83	 	0.2010	 	$	2.18	 	$	2.18
	08/01/2023	 	0.503	 	$	236.88	 	6.06%	 	$	2,379.48	 	$	3,855.39	 	$	3,855.39	 	$	0.00	 	$	11.14	 	$	154.53	 	$	3,855.39	 	$	3,866.53	 	0.1930	 	$	2.15	 	$	746.17
	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	288.12	 	$	177.99	 	$	3,321.50	 	$	3,855.39	 	$	4,321.50	 	Total PV	 	$	54.46	 	$	1,000.00
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

Note:
Exhibit C (the projected payment schedule) to the Indenture has been moved to a separate document to facilitate printing. 

C-1

  

EXHIBIT D  

 
  TABLE OF ADDITIONAL SHARES IN EVENT OF CASH TAKE-OVER TRANSACTION PURSUANT TO SECTION 1.10(g)(vii)
  OF
  SIXTH SUPPLEMENTAL INDENTURE    
    

        The following table sets forth the hypothetical Stock Price and number of Additional Shares, subject to adjustment upon adjustment to the Conversion Rate,
issuable per $1,000 aggregate principal amount of Securities as provided in Section 1.10(g)(vii) of the Indenture: 

 
 

ADDITIONAL SHARES ON CASH TAKE-OVER
  (EXPRESSED AS SHARES PER $1,000 ORIGINAL PRINCIPAL AMOUNT)    
    

	 
	 	Stock Price on Effective Date of Change of Control

	Effective

Date

	 	$40.96
	 	$42.00
	 	$46.00
	 	$50.00
	 	$54.00
	 	$58.00
	 	$62.00
	 	$66.00
	 	$100.00
	 	$150.00
	 	$200.00
	 	$250.00

	August 1, 2004	 	9.9935	 	9.5335	 	8.0044	 	6.7860	 	5.8018	 	4.9981	 	4.3337	 	3.7816	 	1.4110	 	0.4093	 	0.0810	 	0.0000
	August 1, 2005	 	9.5717	 	9.0974	 	7.5277	 	6.2841	 	5.2881	 	4.4825	 	3.8250	 	3.2841	 	0.8763	 	0.1864	 	0.0165	 	0.0000
	August 1, 2006	 	9.3334	 	8.8471	 	7.2403	 	5.9728	 	4.9633	 	4.1526	 	3.4965	 	2.9619	 	0.7634	 	0.1336	 	0.0025	 	0.0000
	August 1, 2007	 	8.9233	 	8.4188	 	6.7555	 	5.4506	 	4.4207	 	3.6036	 	2.9521	 	2.4304	 	0.5567	 	0.0744	 	0.0000	 	0.0000
	August 1, 2008	 	8.5541	 	8.0229	 	6.2716	 	4.9042	 	3.8363	 	3.0031	 	2.3535	 	1.8475	 	0.2664	 	0.0164	 	0.0000	 	0.0000
	August 1, 2009	 	8.2838	 	7.7119	 	5.8136	 	4.3271	 	3.1790	 	2.3070	 	1.6563	 	1.1792	 	0.0848	 	0.0082	 	0.0000	 	0.0000
	August 1, 2010	 	8.1381	 	7.5335	 	5.4631	 	3.7240	 	2.2425	 	0.9654	 	0.0000	 	0.0000	 	0.0000	 	0.0000	 	0.0000	 	0.0000

Determination of Additional Shares if the Stock Price and Effective Date are not set forth on the table above and the Stock Price is: 

	

	(a)  between
two Stock Prices on the table or the Effective Date is between two dates on the table, the number of Additional Shares will be
determined by straight-line interpolation between the number of Additional Shares set forth for the higher and lower Stock Price and the two Effective Dates, as applicable, based on a
365-day year;

	

	(b)  in
excess of $200.00 per share (subject to adjustment), no Additional Shares will be issued upon conversion; or

	

	(c)  less
than $40.96 per share (subject to adjustment), no Additional Shares will be issued upon conversion. 

        Notwithstanding the foregoing, in no event shall the total number of shares of Common Stock issuable upon conversion of the 2004 Senior
Convertible Notes exceed 24.4141 for each $1,000 Original Principal Amount. 

D-1

QuickLinks

ARTICLE 1 2004 SENIOR CONVERTIBLE SECURITIES DUE 2023

ARTICLE 2 MISCELLANEOUS PROVISIONS

EXHIBIT A

FORM OF 2004 FLOATING RATE SENIOR CONVERTIBLE NOTE DUE 2023

BAUSCH & LOMB INCORPORATED 2004 Floating Rate Senior Convertible Note due 2023

(Reverse of Security) BAUSCH & LOMB INCORPORATED 2004 SENIOR CONVERTIBLE NOTE DUE 2023

ABBREVIATIONS

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION OF TRANSFER OF SECURITIES

SIGNATURE GUARANTEE

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

ASSIGNMENT FORM

FORM OF CONVERSION NOTICE

FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE

FORM OF REPURCHASE NOTICE

CERTIFICATE OF AUTHENTICATION

PROJECTED PAYMENT SCHEDULE

TABLE OF ADDITIONAL SHARES IN EVENT OF CASH TAKE-OVER TRANSACTION PURSUANT TO SECTION 1.10(g)(vii) OF SIXTH SUPPLEMENTAL INDENTURE

ADDITIONAL SHARES ON CASH TAKE-OVER (EXPRESSED AS SHARES PER $1,000 ORIGINAL PRINCIPAL AMOUNT)Exhibit
4.1

 

 

AXIS CAPITAL HOLDINGS LIMITED

 

AND

 

THE BANK OF NEW YORK

Trustee

 

 

SENIOR INDENTURE

 

 

Dated as of
November 15, 2004

 

 

CROSS
REFERENCE SHEET*

 

Provisions of Trust Indenture Act of 1939 and Indenture to be dated as
of November 15, 2004 between AXIS Capital Holdings Limited and The Bank of New
York, Trustee:

 

	
  Section of the Act

  	
   

  	
  Section of
  Indenture

  	
   

  
	
  310(a)(1) and (2)

  	
   

  	
  6.9

  	
   

  
	
  310(a)(3) and (4)

  	
   

  	
  Inapplicable

  	
   

  
	
  310(b)

  	
   

  	
  6.8 and 6.10(1), (2) and (4)

  	
   

  
	
  310(c)

  	
   

  	
  Inapplicable

  	
   

  
	
  311(a)

  	
   

  	
  6.13

  	
   

  
	
  311(b)

  	
   

  	
  6.13

  	
   

  
	
  311(c)

  	
   

  	
  Inapplicable

  	
   

  
	
  312(a)

  	
   

  	
  4.1 and 4.2

  	
   

  
	
  312(b)

  	
   

  	
  4.2

  	
   

  
	
  312(c)

  	
   

  	
  4.2

  	
   

  
	
  313(a)

  	
   

  	
  4.3

  	
   

  
	
  313(b)(1)

  	
   

  	
  Inapplicable

  	
   

  
	
  313(b)(2)

  	
   

  	
  4.3

  	
   

  
	
  313(c)

  	
   

  	
  4.3, 5.11, 6.10, 6.11, 8.2
  and 12.2

  	
   

  
	
  313(d)

  	
   

  	
  4.3

  	
   

  
	
  314(a)

  	
   

  	
  3.4 and 3.10

  	
   

  
	
  314(b)

  	
   

  	
  Inapplicable

  	
   

  
	
  314(c)(1) and (2)

  	
   

  	
  11.5

  	
   

  
	
  314(c)(3)

  	
   

  	
  Inapplicable

  	
   

  
	
  314(d)

  	
   

  	
  Inapplicable

  	
   

  
	
  314(e)

  	
   

  	
  11.5

  	
   

  
	
  314(f)

  	
   

  	
  Inapplicable

  	
   

  
	
  315(a), (c) and (d)

  	
   

  	
  6.1

  	
   

  
	
  315(b)

  	
   

  	
  5.11

  	
   

  
	
  315(e)

  	
   

  	
  5.12

  	
   

  
	
  316(a)(1)

  	
   

  	
  5.9 and 5.10

  	
   

  
	
  316(a)(2)

  	
   

  	
  Not required

  	
   

  
	
  316(a) (last sentence)

  	
   

  	
  7.4

  	
   

  
	
  316(b)

  	
   

  	
  5.7

  	
   

  
	
  317(a)

  	
   

  	
  5.2

  	
   

  
	
  317(b)

  	
   

  	
  3.3

  	
   

  
	
  318(a)

  	
   

  	
  11.7

  	
   

  

 

* This Cross Reference Sheet is not part of the Indenture.

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE I DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Certain Terms Defined

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Forms Generally.

  	
   

  
	
  Section 2.2

  	
  Form of Trustee’s Certificate of
  Authentication

  	
   

  
	
  Section 2.3

  	
  Amount Unlimited; Issuable in Series

  	
   

  
	
  Section 2.4

  	
  Authentication and Delivery of Securities

  	
   

  
	
  Section 2.5

  	
  Execution of Securities

  	
   

  
	
  Section 2.6

  	
  Certificate of Authentication

  	
   

  
	
  Section 2.7

  	
  Denomination and Date of Securities;
  Payments of Interest

  	
   

  
	
  Section 2.8

  	
  Registration, Transfer and Exchange

  	
   

  
	
  Section 2.9

  	
  Mutilated, Defaced, Destroyed, Lost and
  Stolen Securities

  	
   

  
	
  Section 2.10

  	
  Cancellation of Securities

  	
   

  
	
  Section 2.11

  	
  Temporary Securities

  	
   

  
	
  Section 2.12

  	
  Global Securities

  	
   

  
	
  Section 2.13

  	
  CUSIP Numbers

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III COVENANTS OF THE ISSUER

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Payment of Principal, Premium, Interest and
  Additional Amounts

  	
   

  
	
  Section 3.2

  	
  Offices for Payments, Etc.

  	
   

  
	
  Section 3.3

  	
  Money for Security Payments to be Held in
  Trust; Unclaimed Money

  	
   

  
	
  Section 3.4

  	
  Statements of Officers of Issuer as to
  Default; Notice of Default

  	
   

  
	
  Section 3.5

  	
  Existence

  	
   

  
	
  Section 3.6

  	
  Maintenance of Properties

  	
   

  
	
  Section 3.7

  	
  Payment of Taxes and Other Claims

  	
   

  
	
  Section 3.8

  	
  Further Instruments and Acts

  	
   

  
	
  Section 3.9

  	
  Limitation on Liens

  	
   

  
	
  Section 3.10

  	
  Commission Reports

  	
   

  
	
  Section 3.11

  	
  Calculation of Original Issue Discount

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV SECURITYHOLDERS LISTS AND REPORTS
  BY THE ISSUER AND THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Issuer to Furnish Trustee Information as to
  Names and Addresses of Securityholders

  	
   

  
	
  Section 4.2

  	
  Preservation of Information; Communications
  to Holders

  	
   

  
	
  Section 4.3

  	
  Reports by the Trustee

  	
   

  
	
  Section 4.4

  	
  Payment of Additional Amounts

  	
   

  
	
  Section 4.5

  	
  Redemption for Tax Purposes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V REMEDIES OF THE TRUSTEE AND
  SECURITYHOLDERS ON EVENT OF DEFAULT

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Event of Default Defined; Acceleration of
  Maturity; Waiver of Default

  	
   

  
	
  Section 5.2

  	
  Collection of Indebtedness by Trustee;
  Trustee May Prove Debt

  	
   

  
	
  Section 5.3

  	
  Application of Proceeds

  	
   

  
	
  Section 5.4

  	
  Suits for Enforcement

  	
   

  
	
  Section 5.5

  	
  Restoration of
  Rights on Abandonment of Proceedings

  	
   

  
	
  Section 5.6

  	
  Limitations on Suits by Securityholders

  	
   

  

 

i

 

	
  Section 5.7

  	
  Unconditional
  Right of Securityholders to Institute Certain Suits

  	
   

  
	
  Section 5.8

  	
  Powers and Remedies
  Cumulative; Delay or Omission Not Waiver of Default

  	
   

  
	
  Section 5.9

  	
  Control by Holders of
  Securities

  	
   

  
	
  Section 5.10

  	
  Waiver of Past Defaults

  	
   

  
	
  Section 5.11

  	
  Trustee to Give
  Notice of Default, but May Withhold in Certain Circumstances

  	
   

  
	
  Section
  5.12

  	
  Right
  of Court to Require Filing of Undertaking to Pay Costs

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  CONCERNING THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Duties and
  Responsibilities of the Trustee; During Default; Prior to Default

  	
   

  
	
  Section 6.2

  	
  Certain Rights of the
  Trustee

  	
   

  
	
  Section 6.3

  	
  Trustee Not
  Responsible for Recitals, Disposition of Securities or Application of
  Proceeds Thereof

  	
   

  
	
  Section 6.4

  	
  Trustee and
  Agents May Hold Securities or Coupons; Collections, Etc.

  	
   

  
	
  Section 6.5

  	
  Moneys Held by Trustee

  	
   

  
	
  Section 6.6

  	
  Compensation
  and Indemnification of Trustee and its Prior Claim

  	
   

  
	
  Section 6.7

  	
  Right of Trustee to Rely on
  Officer’s Certificate, Etc.

  	
   

  
	
  Section 6.8

  	
  Indentures Not
  Creating Potential Conflicting Interests for the Trustee

  	
   

  
	
  Section 6.9

  	
  Persons Eligible for
  Appointment as Trustee

  	
   

  
	
  Section 6.10

  	
  Resignation and Removal;
  Appointment of Successor Trustee

  	
   

  
	
  Section 6.11

  	
  Acceptance of Appointment
  by Successor Trustee

  	
   

  
	
  Section 6.12

  	
  Merger,
  Amalgamation, Conversion, Consolidation or Succession to Business of Trustee

  	
   

  
	
  Section
  6.13

  	
  Preferential
  Collection of Claims Against the Issuer

  	
   

  
	
  Section 6.14

  	
  Appointment of
  Authenticating Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  CONCERNING THE SECURITYHOLDERS

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Evidence of
  Action Taken by Securityholders

  	
   

  
	
  Section
  7.2

  	
  Proof
  of Execution of Instruments and of Holding of Securities

  	
   

  
	
  Section 7.3

  	
  Holders to Be Treated
  as Owners

  	
   

  
	
  Section
  7.4

  	
  Securities
  Owned by Issuer Deemed Not Outstanding

  	
   

  
	
  Section 7.5

  	
  Right of Revocation
  of Action Taken

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Supplemental
  Indentures Without Consent of Securityholders

  	
   

  
	
  Section 8.2

  	
  Supplemental
  Indentures With Consent of Securityholders

  	
   

  
	
  Section 8.3

  	
  Effect of Supplemental
  Indenture

  	
   

  
	
  Section 8.4

  	
  Documents to Be Given
  to Trustee

  	
   

  
	
  Section
  8.5

  	
  Notation
  on Securities in Respect of Supplemental Indentures

  	
   

  
	
  Section 8.6

  	
  Conformity
  with Trust Indenture Act of 1939

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX
  CONSOLIDATION, MERGER, AMALGAMATION, SALE OR CONVEYANCE

  
	
   

  	
   

  	
   

  
	
  Section 9.1

  	
  Issuer May Consolidate, Etc.,
  Only on Certain Terms

  	
   

  
	
  Section 9.2

  	
  Successor
  Substituted for the Issuer

  	
   

  
	
  Section 9.3

  	
  Restrictions on
  Certain Dispositions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X
  SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

  
	
   

  	
   

  	
   

  
	
  Section 10.1

  	
  Termination of Issuer’s
  Obligations Under the Indenture

  	
   

  
	
  Section 10.2

  	
  Application of Trust Funds

  	
   

  

 

ii

 

	
  Section 10.3

  	
  Applicability of
  Defeasance Provisions; Issuer’s Option to Effect Defeasance or Covenant
  Defeasance

  	
   

  
	
  Section 10.4

  	
  Defeasance and Discharge

  	
   

  
	
  Section 10.5

  	
  Covenant Defeasance

  	
   

  
	
  Section 10.6

  	
  Conditions to
  Defeasance or Covenant Defeasance

  	
   

  
	
  Section
  10.7

  	
  Deposited
  Money and U.S. Government Obligations to be Held in Trust

  	
   

  
	
  Section 10.8

  	
  Repayment to Issuer

  	
   

  
	
  Section 10.9

  	
  Indemnity For U.S. Government
  Obligations

  	
   

  
	
  Section 10.10

  	
  Reimbursement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI
  MISCELLANEOUS PROVISIONS

  
	
   

  	
   

  	
   

  
	
  Section
  11.1

  	
  Incorporators,
  Shareholders, Officers and Directors of Issuer Exempt from Individual
  Liability

  	
   

  
	
  Section
  11.2

  	
  Provisions
  of Indenture for the Sole Benefit of Parties and Holders of Securities and
  Coupons

  	
   

  
	
  Section 11.3

  	
  Successors and
  Assigns of Issuer Bound by Indenture

  	
   

  
	
  Section 11.4

  	
  Notices and Demands on
  Issuer, Trustee and Holders of Securities and Coupons

  	
   

  
	
  Section 11.5

  	
  Officer’s
  Certificates and Opinions of Counsel; Statements to Be Contained Therein

  	
   

  
	
  Section 11.6

  	
  Payments Due on Saturdays,
  Sundays and Holidays

  	
   

  
	
  Section
  11.7

  	
  Conflict of
  Any Provision of Indenture with Trust Indenture Act of 1939

  	
   

  
	
  Section 11.8

  	
  New York Law to Govern; Waiver
  of Jury Trial

  	
   

  
	
  Section 11.9

  	
  Counterparts

  	
   

  
	
  Section 11.10

  	
  Effect of Headings

  	
   

  
	
  Section 11.11

  	
  Securities in a Foreign Currency or in
  EURO

  	
   

  
	
  Section 11.12

  	
  Judgment Currency

  	
   

  
	
  Section 11.13

  	
  Separability Clause

  	
   

  
	
  Section 11.14

  	
  Force Majeure

  	
   

  
	
  Section 11.15

  	
  Submission to Jurisdiction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII
  REDEMPTION OF SECURITIES AND SINKING FUNDS

  
	
   

  	
   

  	
   

  
	
  Section 12.1

  	
  Applicability of Article

  	
   

  
	
  Section 12.2

  	
  Notice of Redemption; Partial
  Redemptions

  	
   

  
	
  Section
  12.3

  	
  Payment of
  Securities Called for Redemption

  	
   

  
	
  Section
  12.4

  	
  Exclusion
  of Certain Securities from Eligibility for Selection for Redemption

  	
   

  
	
  Section 12.5

  	
  Mandatory and
  Optional Sinking Funds

  	
   

  

 

iii

 

THIS INDENTURE, dated as of November 15, 2004
between AXIS CAPITAL HOLDINGS LIMITED, an exempted company incorporated in
Bermuda as a holding company (the “Issuer”), and The Bank of New York, a New York
banking corporation, as trustee (the “Trustee”),

 

W I T N E S S
E T H :

 

WHEREAS, the Issuer has duly authorized the
issue from time to time of its unsecured debentures, notes or other evidences
of its unsecured indebtedness to be issued in one or more series (the
“Securities”) up to such principal amount or amounts as may from time to time
be authorized in accordance with the terms of this Indenture;

 

WHEREAS, the Issuer has duly authorized the
execution and delivery of this Indenture to provide, among other things, for
the authentication, delivery and administration of the Securities; and

 

WHEREAS, all things necessary to make this
Indenture a valid indenture and legally binding agreement according to its
terms have been done;

 

NOW, THEREFORE:

 

In consideration of the premises and the
purchases of the Securities by the holders thereof, the Issuer and the Trustee
mutually covenant and agree for the equal and proportionate benefit of the
respective holders from time to time of the Securities and of the Coupons, if
any, appertaining thereto as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1             Certain Terms Defined.  The following terms (except as otherwise
expressly provided or unless the context otherwise clearly requires) for all
purposes of this Indenture and of any indenture supplemental hereto shall have
the respective meanings specified in this Section.  All other terms used in this Indenture that are defined in the
Trust Indenture Act of 1939 or the definitions of which in the Securities Act
of 1933 are referred to in the Trust Indenture Act of 1939, including terms
defined therein by reference to the Securities Act of 1933 (except as herein
otherwise expressly provided or unless the context otherwise requires), shall
have the meanings assigned to such terms in said Trust Indenture Act of 1939
and in said Securities Act of 1933 as in force at the date of this
Indenture.  All accounting terms used
herein and not expressly defined shall have the meanings assigned to such terms
in accordance with generally accepted accounting principles, and the term
“GENERALLY ACCEPTED ACCOUNTING PRINCIPLES” means such accounting principles as
are generally accepted at the time of any computation.  The words “HEREIN,” “HEREOF” and “HEREUNDER”
and other words of similar import refer to this Indenture as a whole and not to
any particular Article, Section or other subdivision.  The terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular.

 

“ADDITIONAL AMOUNTS” shall mean any
additional amounts which are required hereby or by any Security, under
circumstances specified herein or therein, to be paid by the Issuer, in respect
of certain taxes, assessments or other governmental charges imposed on Holders
specified therein and which are owing to such Holders.

 

“AUTHENTICATING AGENT” shall have the meaning
set forth in Section 6.14.

 

“AUTHORIZED NEWSPAPER” means a newspaper of
general circulation, in the official language of the country of publication or
in the English language customarily published on each Business Day whether or
not published on Saturdays, Sundays or holidays.  Whenever successive publications in an Authorized Newspaper are
required hereunder they may be made (unless otherwise

 

1

 

expressly provided herein) on the same or
different days of the week and in the same or different Authorized Newspapers.

 

“BOARD OF DIRECTORS” means either the Board
of Directors of the Issuer or any committee of such Board duly authorized to
act on its behalf.

 

“BOARD RESOLUTION” means a copy of one or
more resolutions, certified by the secretary or an assistant secretary of the
Issuer to have been duly adopted or consented to by the Board of Directors and
to be in full force and effect, and delivered to the Trustee.

 

“BUSINESS DAY” means, with respect to any
Security, a day that in the city (or in any of the cities, if more than one) in
which amounts are payable, as specified in the form of such Security, and in
The City of New York is not a day on which banking institutions are authorized
or required by law, executive order or regulation to close.

 

“COMMISSION” means the Securities and
Exchange Commission, as from time to time constituted, created under the
Securities Exchange Act of 1934, or if at any time after the execution and
delivery of this Indenture such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act of 1939, then the body
performing such duties on such date.

 

“CONSOLIDATED TOTAL ASSETS” means, in respect
of the Issuer as of any date of determination, the amount of total assets shown
on the consolidated balance sheet of the Issuer and its consolidated
subsidiaries contained in the most recent annual or quarterly report filed with
the Commission, or if the Issuer is not then subject to the Securities Exchange
Act of 1934, the most recent annual or quarterly report to shareholders and, in
respect of any Subsidiary as of any date of determination, the amount of total
assets of such Subsidiary and its consolidated subsidiaries from which such
consolidated balance sheet of the Issuer and its consolidated Subsidiaries was
derived.

 

“CORPORATE TRUST OFFICE” means the principal
office of the Trustee at which, at any time, its corporate trust business shall
be administered, which office at the date hereof is located at 101 Barclay
Street, Floor 8W, New York, NY  10286,
Attention:  Corporate Trust Administration,
or such other address as the Trustee may designate from time to time by notice
to the Holders and the Issuer, or the principal corporate trust office of any
successor Trustee (or such other address as such successor Trustee may
designate from time to time by notice to the Holders and the Issuer).

 

“COUPON” means any interest coupon
appertaining to an Unregistered Security.

 

“COVENANT DEFEASANCE” shall have the meaning
set forth in Section 10.5.

 

“DEFEASANCE” shall have the meaning set forth
in Section 10.4.

 

“DEPOSITARY” means, with respect to the
Securities of any series issuable or issued in global form, the Person
designated as Depositary by the Issuer pursuant to Section 2.3 until a
successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “DEPOSITARY” shall mean or include
each Person who is then a Depositary hereunder, and if at any time there is
more than one such Person, “DEPOSITARY” as used with respect to the Securities
of any such series shall mean the Depositary with respect to the Registered
Securities in global form of that series.

 

“DOLLAR” means the coin or currency of the
United States of America as at the time of payment is legal tender for the
payment of public and private debts.

 

“EURO” means the currency unit referred to in
the second sentence of Council Regulation (EC) No. 974/98 of 3 May 1998.

 

“EVENT OF DEFAULT” means any event or
condition specified as such in Section 5.1.

 

2

 

“FAIR VALUE” when used with respect to Voting
Shares means the fair value as determined in good faith by the Board of
Directors of the Issuer.

 

“FOREIGN CURRENCY” means a currency issued by
the government of a country other than the United States.

 

“HOLDER,” “HOLDER OF SECURITIES,”
“SECURITYHOLDER” or other similar terms mean (1) in the case of any Registered
Security, the person in whose name such Security is registered in the security
register kept by the Issuer for that purpose in accordance with the terms
hereof, and (2) in the case of any Unregistered Security, the bearer of such
Security, or any Coupon appertaining thereto, as the case may be.

 

“INDEBTEDNESS” shall have the meaning set
forth in Section 5.1.

 

“INDENTURE” means this instrument as
originally executed and delivered or, if amended or supplemented as herein
provided, as so amended or supplemented or both, and shall include the forms
and terms of particular series of Securities established as contemplated
hereunder.

 

“ISSUER” means AXIS Capital Holdings Limited,
an exempted company incorporated in Bermuda as a holding company and, subject
to Article IX, its successors and assigns.

 

“ISSUER ORDER” means a written statement,
request or order of the Issuer signed in its name by the chairman or deputy
chairman of the Board of Directors, the president, any executive, senior or
other vice president or the treasurer of the Issuer.

 

“JUDGMENT CURRENCY” shall have the meaning
set forth in Section 11.12.

 

“OFFICER’S CERTIFICATE” means a certificate
signed by the chairman or deputy chairman of the Board of Directors, the president
or any executive, senior or other vice president or the treasurer of the Issuer
and delivered to the Trustee.  Each such
certificate shall comply with Section 314 of the Trust Indenture Act of 1939
and include the statements provided for in Section 11.5.

 

“OPINION OF COUNSEL” means an opinion in
writing signed by the General Counsel of the Issuer or by such other legal
counsel who may be an employee of or counsel to the Issuer.  Each such opinion shall comply with Section
314 of the Trust Indenture Act of 1939 and include the statements provided for
in Section 11.5.

 

“ORIGINAL ISSUE DATE” of any Security (or
portion thereof) means the earlier of (1) the date of such Security or (2) the
date of any Security (or portion thereof) for which such Security was issued
(directly or indirectly) on registration of transfer, exchange or substitution.

 

“ORIGINAL ISSUE DISCOUNT SECURITY” means any
Security that provides for an amount less than the principal amount thereof to
be due and payable upon a declaration of acceleration of the maturity thereof
pursuant to Section 5.1.

 

“OUTSTANDING” (except as otherwise provided
in Sections 7.4, 10.4 and 10.5), when used with reference to Securities, shall,
subject to the provisions of Sections 7.4, 10.4 and 10.5 mean, as of any
particular time, all Securities authenticated and delivered by the Trustee
under this Indenture, except

 

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

 

(2)           Securities,
or portions thereof, for the payment or redemption of which moneys or U.S.
Government Obligations (as provided for in Section 10.1) in the necessary
amount shall have been deposited in trust with the Trustee or with any paying
agent (other than the Issuer) or shall have been set

 

3

 

aside, segregated and held in trust by the
Issuer for the Holders of such Securities (if the Issuer shall act as its own
paying agent), provided that if such Securities, or portions thereof, are to be
redeemed prior to the maturity thereof, notice of such redemption shall have
been given as herein provided, or provision satisfactory to the Trustee shall
have been made for giving such notice; and

 

(3)           Securities
which shall have been paid or in substitution for which other Securities shall
have been authenticated and delivered pursuant to the terms of Section 2.9
(except with respect to any such Security as to which proof satisfactory to the
Trustee is presented that such Security is held by a person in whose hands such
Security is a legal, valid and binding obligation of the Issuer) or Securities
not deemed outstanding pursuant to Section 12.2.

 

In determining whether the Holders of the
requisite principal amount of Outstanding Securities of any or all series have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder, the principal amount of an Original Issue 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 5.1.

 

“PERIODIC OFFERING” means an offering of
Securities of a series from time to time, the specific terms of which Securities,
including, without limitation, the rate or rates of interest, if any, thereon,
the stated maturity or maturities thereof and the redemption provisions, if
any, with respect thereto, are to be determined by the Issuer or its agents
upon the issuance of such Securities.

 

“PERMITTED LIENS” means liens for taxes or
assessments or governmental charges or levies not then due and delinquent or
the validity of which is being contested in good faith or which are less than
$1,000,000 in amount and liens created by or resulting from any litigation or
legal proceeding which is currently being contested in good faith by
appropriate proceedings or which involves claims of less than $1,000,000.

 

“PERSON” means a legal person, including any
individual, company, limited liability company, corporation, estate,
partnership, limited liability partnership, joint venture, association, joint
shares company, trust, unincorporated organization or government or any agency
or political subdivision thereof or any other entity of whatever nature.

 

“PRINCIPAL” whenever used with reference to
the Securities or any Security or any portion thereof, shall be deemed to
include “and premium, if any.”

 

“RECORD DATE” shall have the meaning set
forth in Section 2.7.

 

“REGISTERED SECURITY” means any Security
registered on the Security register of the Issuer.

 

“REQUIRED CURRENCY” shall have the meaning
set forth in Section 11.12.

 

“RESPONSIBLE OFFICER” when used with respect
to the Trustee means any vice president, any senior trust officer or any trust
officer, any assistant vice president, any assistant treasurer, or any other
officer or assistant officer associated with the corporate trust department of
the Trustee customarily performing functions similar to those performed by the
persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of his or her knowledge of and
familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

 

“RESTRICTED SUBSIDIARY” means (1) AXIS
Specialty Limited, AXIS Reinsurance Company, AXIS Specialty (Barbados) Limited,
AXIS Specialty Holdings Ireland Limited; (2) any other future or present
Subsidiary the Consolidated Total Assets of which constitute 20 percent or more
of the

 

4

 

Consolidated Total Assets of the Issuer; and
(3) any Subsidiary which is a successor, by merger or otherwise, to
substantially all of the business or properties of any Subsidiary referred to
or described in the foregoing clauses (1) or (2).

 

“SECURITY” or “SECURITIES” has the meaning
stated in the first recital of this Indenture, or, as the case may be,
Securities that have been authenticated and delivered under this Indenture.

 

“SUBSIDIARY” means any corporation,
partnership or other entity of which at the time of determination the Issuer
owns or controls directly or indirectly more than 50% of the shares of Voting
Shares.

 

“TRUST INDENTURE ACT OF 1939” (except as
otherwise provided in Sections 8.1 and 8.2) means the Trust Indenture Act of
1939 as in force at the date as of which this Indenture was originally
executed.

 

“TRUSTEE” means the Person identified as
“Trustee” in the first paragraph hereof and, subject to the provisions of
Article VI, shall also include any successor trustee.  “Trustee” shall also mean or include each Person who is then a
trustee hereunder and if at any time there is more than one such Person,
“Trustee” as used with respect to the Securities of any series shall mean the
trustee with respect to the Securities of such series.

 

“UNREGISTERED SECURITY” means any Security
other than a Registered Security.

 

“U.S. GOVERNMENT OBLIGATIONS” means
securities which are (1) direct obligations of the United States of America for
the payment of which its full faith and credit is pledged or (2) obligations of
a Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America the timely payment of which is unconditionally guaranteed
by the full faith and credit of the United States of America which, in either
case, are not callable or redeemable at the option of the issuer thereof or
otherwise subject to prepayment, and shall also include a depository receipt
issued by a New York Clearing House bank or trust company as custodian with
respect to any such U.S. Government Obligation or a specific payment or
interest on or principal of any such U.S. Government Obligation held by such
custodian for the account of the holder of a depository receipt, provided that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt or
from any amount held by the custodian in respect of the U.S. Government
Obligation or the specific payment of interest on or principal of the U.S.
Government Obligation evidenced by such depository receipt.

 

“VOTING SHARES” means shares of any class or
classes having general voting power under ordinary circumstances to elect a
majority of the board of directors, managers or trustees of the corporation in
question, provided that, for the purposes hereof, shares which carry only the
right to vote conditionally on the happening of an event shall not be
considered voting shares whether or not such event shall have happened.

 

“YIELD TO MATURITY” means the yield to
maturity on a series of securities, calculated at the time of issuance of such
series, or, if applicable, at the most recent redetermination of interest on
such series, and calculated in accordance with accepted financial practice.

 

ARTICLE II

 

SECURITIES

 

Section 2.1             Forms
Generally.  The Securities of each
series and the Coupons, if any, to be attached thereto shall be substantially
in such form (not inconsistent with this Indenture) as shall be established by
or pursuant to one or more Board Resolutions (as set forth in a Board
Resolution or, to

 

5

 

the extent established pursuant
to rather than set forth in a Board Resolution, an Officer’s Certificate
detailing such establishment) or in one or more indentures supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture and may have
imprinted or otherwise reproduced thereon such legend or legends or
endorsements, not inconsistent with the provisions of this Indenture, as may be
required to comply with any law or with any rules or regulations pursuant
thereto, or with any rules of any securities exchange or to conform to general
usage, all as may be determined by the officers executing such Securities and
Coupons, if any, as evidenced by their execution of such Securities and
Coupons.  If temporary Securities of any
series are issued as permitted by Section 2.11, the form thereof also shall be
established as provided in the preceding sentence.  If the forms of Securities and Coupons, if any, of the series are
established by, or by action taken pursuant to, a Board Resolution, a copy of
the Board Resolution together with an appropriate record of any such action
taken pursuant thereto, including a copy of the approved form of Securities or
Coupons, if any, shall be certified by the Secretary or an Assistant Secretary
of the Issuer and delivered to the Trustee at or prior to the delivery of the
Issuer Order contemplated by Section 2.4 for the authentication and delivery of
such Securities.

 

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

 

Section 2.2             Form of Trustee’s Certificate of
Authentication.  The Trustee’s
certificate of authentication on all Securities shall be in substantially the
following form:

 

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

 

	
   

  	
   

  	
  ,

  
	
   

  	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory”

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  	
   

  
						

 

If at any time there shall be an Authenticating Agent appointed with
respect to any series of Securities, then the Trustee’s Certificate of
Authentication to be borne by the Securities of each such series shall be
substantially as follows:

 

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

 

	
   

  	
   

  	
  ,

  
	
   

  	
  as Authenticating Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory”

  	
   

  

 

Section 2.3             Amount Unlimited; Issuable in
Series.  The aggregate principal
amount of Securities which may be authenticated and delivered under this
Indenture is unlimited.

 

The Securities may be issued in one or more
series and each such series shall rank equally and pari passu with all other
unsecured and unsubordinated debt of the Issuer.  There shall be established in or pursuant to one or more Board
Resolutions (and to the extent established pursuant to rather than set forth in
a Board Resolution, in an Officer’s Certificate detailing such establishment)
or established in one or more indentures supplemental hereto, prior to the
initial issuance of Securities of any series,

 

6

 

(1)           the designation of the Securities of
the series, including CUSIP numbers, if available, which shall distinguish the
Securities of the series from the Securities of all other series;

 

(2)           any limit upon the aggregate
principal amount of the Securities of the series that 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 2.8, 2.9, 2.11, 8.5 or
12.3);

 

(3)           if other than Dollars, the coin or
currency in which the Securities of that series are denominated (including, but
not limited to, any Foreign Currency or EURO);

 

(4)           the date or dates on which the
principal of the Securities of the series is payable;

 

(5)           the rate or rates at which the
Securities of the series shall bear interest, if any, the date or dates from
which such interest shall accrue, on which such interest shall be payable and
(in the case of Registered Securities) on which a record shall be taken for the
determination of Holders to whom interest is payable and/or the method by which
such rate or rates or date or dates shall be determined;

 

(6)           the place or places where the
principal of and any interest on Securities of the series shall be payable (if
other than as provided in Section 3.2);

 

(7)           the right, if any, of the Issuer to redeem
Securities, in whole or in part, at its option and the period or periods within
which, the price or prices at which and any terms and conditions upon which
Securities of the series may be so redeemed, pursuant to any sinking fund or
otherwise;

 

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

 

(9)           if other than denominations of $1,000
and any integral multiple thereof in the case of Registered Securities, or
$1,000 and $5,000 in the case of Unregistered Securities, the denominations in
which Securities of the series shall be issuable;

 

(10)         if other than the principal amount
thereof, the portion of the principal amount of Securities of the series which
shall be payable upon acceleration of the maturity thereof;

 

(11)         if other than the coin or currency in
which the Securities of that series are denominated, the coin or currency in
which payment of the principal of or interest on the Securities of such series
shall be payable;

 

(12)         if the principal of or interest on the
Securities of such series are to be payable, at the election of the Issuer or a
Holder thereof, in a coin or currency other than that in which the Securities
are denominated, the period or periods within which, and the terms and
conditions upon which, such election may be made;

 

(13)         if the amount of payments of principal
of and interest on the Securities of the series may be determined with
reference to an index based on a coin or currency other than that in which the
Securities of the series are denominated, the manner in which such amounts
shall be determined;

 

(14)         whether the Securities of the series
will be issuable as Registered Securities or Unregistered Securities (with or
without Coupons), and whether such Securities will be issuable in global form
or any combination of the foregoing, any restrictions applicable to the offer,
sale or delivery of Unregistered Securities or the payment of interest thereon
and, if other than as provided in Section 2.8, the

 

7

 

terms upon and locations at which
Unregistered Securities of any series may be exchanged for Registered
Securities of such series and vice versa;

 

(15)         whether and under what circumstances
the Issuer will pay Additional Amounts on the Securities of the series held by
a person in respect of any tax, assessment or governmental charge withheld or
deducted and, if so, whether the Issuer will have the option to redeem such
Securities rather than pay such Additional Amounts;

 

(16)         if the Securities of such series are to
be issuable in definitive form (whether upon original issue or upon exchange of
a temporary Security of such series) only upon receipt of certain certificates
or other documents or satisfaction of other conditions, the form and terms of
such certificates, documents or conditions;

 

(17)         any Trustees, Depositaries,
Authenticating Agents, paying or transfer Agents or Registrars or any other
agents with respect to the Securities of such series;

 

(18)         any deletions from, modifications of or
additions to the Events of Default or covenants with respect to the Securities
of such series;

 

(19)         provisions, if any, granting special
rights to the Holders of Securities of the series upon the occurrence of such
events as may be specified;

 

(20)         the date as of which any Unregistered
Securities of the series and any temporary Security in global form representing
Outstanding Securities of the series shall be dated if other than the date of
original issuance of the first Security of the series to be issued;

 

(21)         the applicability, if any, to the
Securities of or within the series of Article X, or such other means of
Defeasance or Covenant Defeasance as may be specified for the Securities and
Coupons, if any, of such series;

 

(22)         if the Securities of the series shall
be issued in whole or in part in global form (a) the Depositary for such global
Securities, (b) the form of any legend in addition to or in lieu of that in
Section 2.4 which shall be borne by such global security, (c) whether
beneficial owners of interests in any Securities of the series in global form
may exchange such interests for certificated Securities of such series and of
like tenor of any authorized form and denomination, and (d) if other than as
provided in Section 2.8, the circumstances under which any such exchange may
occur;

 

(23)         the right of the Issuer, if any, to
defer any payment of principal of or interest on the Securities of the series,
or any tranche thereof, and the maximum length of any such deferral period; and

 

(24)         any other terms of the series (which
terms shall not be inconsistent with the provisions of this Indenture).

 

All Securities of any one series and Coupons,
if any, appertaining thereto, shall be substantially identical, except in the
case of Registered Securities as to denomination and except as may otherwise be
provided by or pursuant to the Board Resolution or Officer’s Certificate
referred to above or as set forth in any such indenture supplemental
hereto.  All Securities of any one
series need not be issued at the same time and may pursuant to the Board
Resolution or Officer’s Certificate be issued from time to time, consistent
with the terms of this Indenture, if so provided by or pursuant to such Board
Resolution, such Officer’s Certificate or in any such indenture supplemental
hereto.

 

8

 

Section 2.4             Authentication
and Delivery of Securities.

 

(1)           The Issuer may deliver Securities of
any series having attached thereto appropriate Coupons, if any, executed by the
Issuer to the Trustee for authentication together with the applicable documents
referred to below in this Section, and the Trustee shall thereupon authenticate
and deliver such Securities to or upon the order of the Issuer (contained in
the Issuer Order referred to below in this Section) or pursuant to such
procedures acceptable to the Trustee and to such recipients as may be specified
from time to time by an Issuer Order. 
The maturity date, original issue date, interest rate and any other
terms of the Securities of such series and Coupons, if any, appertaining
thereto shall be determined by or pursuant to such Issuer Order and
procedures.  In authenticating such Securities
and accepting the additional responsibilities under this Indenture in relation
to such Securities, the Trustee shall receive and (subject to Section 6.1)
shall be fully protected in relying upon, unless and until such documents have
been superseded or revoked:

 

(a)           an Issuer Order requesting such
authentication and setting forth delivery instructions if the Securities and
Coupons, if any, are not to be delivered to the Issuer, provided that, with
respect to Securities of a series subject to a Periodic Offering, (i) such
Issuer Order may be delivered by the Issuer to the Trustee prior to the
delivery to the Trustee of such Securities for authentication and delivery,
(ii) the Trustee shall authenticate and deliver Securities of such series for
original issue from time to time, in an aggregate principal amount not
exceeding the aggregate principal amount established for such series, pursuant
to an Issuer Order or pursuant to procedures acceptable to the Trustee as may
be specified from time to time by an Issuer Order and (iii) the maturity date
or dates, original issue date or dates, interest rate or rates and any other
terms of Securities of such series shall be determined by an Issuer Order or
pursuant to such procedures;

 

(b)           any Board Resolution, Officer’s
Certificate and/or executed supplemental indenture referred to in Sections 2.1
and 2.3 by or pursuant to which the forms and terms of the Securities and
Coupons, if any, were established;

 

(c)           an Officer’s Certificate setting
forth the form or forms and terms of the Securities and Coupons, if any,
stating that the form or forms and terms of the Securities and Coupons, if any,
have been established pursuant to Sections 2.1 and 2.3 and comply with this
Indenture, and covering such other matters as the Trustee may reasonably
request; and

 

(d)           at the option of the Issuer, either
one or more Opinions of Counsel, or a letter addressed to the Trustee
permitting it to conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, on one or more Opinions of
Counsel, substantially to the effect that:

 

(i)                    the
forms of the Securities and Coupons, if any, have been duly authorized and
established in conformity with the provisions of this Indenture;

 

(ii)                   in
the case of an underwritten offering, the terms of the Securities have been
duly authorized and established in conformity with the provisions of this
Indenture, and, in the case of an offering that is not underwritten, certain
terms of the Securities have been established pursuant to a Board Resolution,
an Officer’s Certificate or a supplemental indenture in accordance with this
Indenture, and when such other terms as are to be established pursuant to
procedures set forth in an Issuer Order shall have been established, all such
terms will have been duly authorized by the Issuer and will have been
established in conformity with the provisions of this Indenture;

 

(iii)                  when
the Securities and Coupons, if any, have been executed by the Issuer and
authenticated by the Trustee in accordance with the provisions of this
Indenture and delivered to and duly paid for by the purchasers thereof, they
will have been duly issued under this Indenture, will be entitled to the
benefits of this Indenture, and will be valid and binding obligations of the
Issuer, enforceable in accordance with their respective terms except as

 

9

 

(i) the enforceability thereof may be limited
by bankruptcy, insolvency or similar laws affecting creditors’ rights generally
and (ii) rights of acceleration, if any, and the availability of equitable
remedies may be limited by equitable principles of general applicability; and

 

(iv)                  that
all applicable laws and requirements in respect of the execution and delivery
by the Issuer of such Securities have been complied with.

 

In rendering such opinions, any counsel may
qualify any opinions as to enforceability by stating that such enforceability
may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium
and other similar laws affecting the rights and remedies of creditors and is
subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).  Such counsel may rely upon opinions of other
counsel (copies of which shall be delivered to the Trustee), who shall be
counsel reasonably satisfactory to the Trustee, in which case the opinion shall
state that such counsel believes he or she and the Trustee are entitled so to
rely.  Such counsel may also state that,
insofar as such opinion involves factual matters, he or she has relied, to the
extent he or she deems proper, upon certificates of officers of the Issuer and
its subsidiaries and certificates of public officials.

 

(2)           The Trustee shall have the right to
decline to authenticate and deliver any Securities under this Section if the
Trustee, being advised by counsel, determines that such action may not lawfully
be taken by the Issuer or if the Trustee in good faith by its board of directors
or board of trustees, executive committee, or a trust committee of directors or
trustees or Responsible Officers shall determine that such action would expose
the Trustee to personal liability to existing Holders or would affect the
Trustee’s own rights, duties or immunities under the Securities, this Indenture
or otherwise.

 

(3)           If the Issuer shall establish
pursuant to Section 2.3 that the Securities of a series are to be issued in
whole or in part in global form, then the Issuer shall execute and the Trustee
shall, in accordance with this Section and the Issuer Order with respect to
such series, authenticate and deliver one or more Securities in global form
that (a) shall represent and shall be denominated in an amount equal to the
aggregate principal amount of all of the Securities of such series issued and
not yet canceled, (b) if such Securities are Registered Securities, shall be
registered in the name of the Depositary for such Security or Securities in
global form or the nominee of such Depositary, (c) if such Securities are
Registered Securities, shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary’s instructions and (d) shall bear a legend
substantially to the following effect: “Unless and until it is exchanged in whole
or in part for Securities in definitive form, this Security may not be
transferred except as a whole by the Depositary to the nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.”

 

(4)           Each Depositary designated pursuant
to Section 2.3 must, at the time of its designation and at all times while it
serves as Depositary, be a clearing agency registered under the Securities
Exchange Act of 1934 and any other applicable statute or regulation.

 

Section 2.5             Execution
of Securities.  The Securities and,
if applicable, each Coupon appertaining thereto shall be signed on behalf of
the Issuer by the chairman or deputy chairman of its Board of Directors or its
president or any executive, senior or other vice president or its treasurer,
which may, but need not, be attested. 
Such signatures may be the manual or facsimile signatures of the present
or any future such officers. 
Typographical and other minor errors or defects in any such signature
shall not affect the validity or enforceability of any Security that has been
duly authenticated and delivered by the Trustee.

 

In case any officer of the Issuer who shall
have signed any of the Securities or Coupons, if any, shall cease to be such
officer before the Security or Coupon so signed (or the Security to which the
Coupon so signed appertains) shall be authenticated and delivered by the
Trustee or disposed of by the Issuer, such Security or Coupon nevertheless may
be authenticated and delivered or disposed of as though the person who signed
such Security or Coupon had not ceased to be such officer of the Issuer; and
any Security or Coupon may be signed on behalf of the Issuer by such persons
as, at the actual date of the

 

10

 

execution of such Security or Coupon, shall
be the proper officers of the Issuer, although at the date of the execution and
delivery of this Indenture any such person was not such an officer.

 

Section 2.6             Certificate
of Authentication.  Only such
Securities as shall bear thereon a certificate of authentication substantially
in the form herein before recited, executed by the Trustee by the manual
signature of one of its authorized signatories, shall be entitled to the
benefits of this Indenture or be valid or obligatory for any purpose.  No Coupon shall be entitled to the benefits
of this Indenture or shall be valid and obligatory for any purpose until the
certificate of authentication on the Security to which such Coupon appertains
shall have been duly executed by the Trustee. 
The execution of such certificate by the Trustee upon any Security
executed by the Issuer shall be conclusive evidence that the Security so
authenticated has been duly authenticated and delivered hereunder and that the
Holder is entitled to the benefits of this Indenture.

 

Section 2.7             Denomination
and Date of Securities; Payments of Interest.  The Securities of each series shall be issuable as Registered
Securities or Unregistered Securities in denominations established as
contemplated by Section 2.3 or, with respect to the Registered Securities of
any series, if not so established, in denominations of $1,000 and any integral
multiple thereof.  If denominations of
Unregistered Securities of any series are not so established, such Securities
shall be issuable in denominations of $1,000 and $5,000.  The Securities of each series shall be
numbered, lettered or otherwise distinguished in such manner or in accordance
with such plan as the officers of the Issuer executing the same may determine
with the approval of the Trustee, as evidenced by the execution and
authentication thereof.

 

Each Registered Security shall be dated the
date of its authentication.  Each
Unregistered Security shall be dated as provided in the resolution or
resolutions of the Board of Directors of the Issuer referred to in Section 2.3.  The Securities of each series shall bear
interest, if any, from the date, and such interest shall be payable on the
dates, established as contemplated by Section 2.3.

 

The person in whose name any Registered
Security of any series is registered at the close of business on any record
date applicable to a particular series with respect to any interest payment
date for such series shall be entitled to receive the interest, if any, payable
on such interest payment date notwithstanding any transfer or exchange of such
Registered Security subsequent to the record date and prior to such interest
payment date, except if and to the extent the Issuer shall default in the
payment of the interest due on such interest payment date for such series, in
which case such defaulted interest shall be paid to the persons in whose names
Outstanding Registered Securities for such series are registered at the close
of business on a subsequent record date (which shall be not less than five
Business Days prior to the date of payment of such defaulted interest)
established by notice given by mail by or on behalf of the Issuer to the
Holders of Registered Securities not less than 15 days preceding such
subsequent record date.  The term
“record date” as used with respect to any interest payment date (except a date
for payment of defaulted interest) for the Securities of any series shall mean
the date specified as such in the terms of the Registered Securities of such
series established as contemplated by Section 2.3, or, if no such date is so
established, if such interest payment date is the first day of a calendar
month, the fifteenth day of the next preceding calendar month or, if such
interest payment date is the fifteenth day of a calendar month, the first day
of such calendar month, whether or not such record date is a Business Day.

 

Section 2.8             Registration,
Transfer and Exchange.

 

(1)           The Issuer will keep at each office
or agency to be maintained for the purpose as provided in Section 3.2 for each
series of Securities a register or registers in which, subject to such
reasonable regulations as it may prescribe, it will provide for the
registration of Registered Securities of such series and the registration of
transfer of Registered Securities of such series.  Such register shall be in written form in the English
language.  At all reasonable times such
register or registers shall be open for inspection by the Trustee.

 

(2)           Subject to the prior written consent
of the Bermuda Monetary Authority, where applicable, upon due presentation for
registration of transfer of any Registered Security of any series at any

 

11

 

such office or agency to be maintained for
the purpose as provided in Section 3.2, the Issuer shall execute and the
Trustee shall authenticate and deliver in the name of the transferee or
transferees a new Registered Security or Registered Securities of the same
series, maturity date, interest rate and original issue date in authorized
denominations for a like aggregate principal amount.

 

Unregistered Securities (except for any
temporary Unregistered Securities in global form) and Coupons (except for
Coupons attached to any temporary Unregistered Securities in global form) shall
be transferable by delivery.

 

(3)           (a) 
At the option of the Holder thereof, Registered Securities of any series
(other than a Registered Security in global form, except as set forth below)
may be exchanged for a Registered Security or Registered Securities of such
series having authorized denominations and an equal aggregate principal amount,
upon surrender of such Registered Securities to be exchanged at the agency of
the Issuer that shall be maintained for such purpose in accordance with Section
3.2 and upon payment, if the Issuer shall so require, of the charges
hereinafter provided.  Whenever any
Registered Securities are so surrendered for exchange, the Issuer shall
execute, and the Trustee shall authenticate and deliver, the Registered
Securities which the Holder making the exchange is entitled to receive.

 

(b)           Unless otherwise specified as
contemplated by Section 2.3, at the option of the Holder, Unregistered
Securities of such series may be exchanged for Registered Securities (if the
Securities of such series are issuable in registered form) or Unregistered
Securities (if Unregistered Securities of such series are issuable in more than
one denomination and such exchanges are permitted by such series) of the same
series, of any authorized denominations and of like tenor and aggregate
principal amount, upon surrender of the Securities to be exchanged at the agency
of the Issuer that shall be maintained for such purpose in accordance with
Section 3.2, with all unmatured Coupons and all matured Coupons in default
thereto appertaining.  If the Holder of
an Unregistered Security is unable to produce any such unmatured Coupon or
Coupons or matured Coupon or Coupons in default, such exchange may be effected
if the Unregistered Securities are accompanied by payment in funds acceptable
to the Issuer and the Trustee in an amount equal to the face amount of such
missing Coupon or Coupons, or the surrender of such missing Coupon or Coupons
may be waived by the Issuer and the Trustee if there be furnished to them such
security or indemnity as they may require to save each of them and any paying
agent harmless.  If thereafter the
Holder of such Security shall surrender to any paying agent any such missing
Coupon in respect of which such a payment shall have been made, such Holder
shall be entitled to receive the amount of such payment as provided in Section
3.2.  Notwithstanding the foregoing, in
case any Unregistered Security of any series is surrendered at any such office
or agency in exchange for a Registered Security of the same series after the
close of business at such office or agency on (i) any record date and before
the opening of business at such office or agency on the relevant interest
payment date, or (ii) any special record date for payment of defaulted interest
and before the opening of business at such office or agency on the related date
for payment of defaulted interest, such Unregistered Security shall be
surrendered without the Coupon relating to such interest or defaulted interest
payment date or proposed date of payment, as the case may be (or, if such
Coupon is so surrendered with such Unregistered Security, such Coupon shall be
returned to the person so surrendering the Unregistered Security), and interest
or defaulted interest, as the case may be, will not be payable on such date or
proposed date for payment, as the case may be, in respect of the Registered Security
issued in exchange for such Unregistered Security, but will be payable only to
the Holder of such Coupon, when due in accordance with the provisions of this
Indenture.

 

(c)           Registered Securities of any series
may not be exchanged for Unregistered Securities of such series unless (i)
otherwise specified pursuant to Section 2.3 and (ii) the Issuer has delivered
to the Trustee an Opinion of Counsel that (A) the Issuer has received from the
Internal Revenue Service a ruling or (B) since the date hereof, there has been
a change in the applicable Federal income tax law, in either case to the effect
that the inclusion of terms permitting Registered Securities to be exchanged
for Unregistered Securities would result in no adverse Federal income tax
effect to the Issuer or to any Holder. 
Whenever any Securities are so surrendered for exchange, the Issuer
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive.  All Securities and Coupons surrendered upon
any exchange or transfer provided for in this Indenture shall be canceled
promptly and disposed of by the Trustee in accordance with its procedures for

 

12

 

the disposition of cancelled securities in
effect as of the date of such cancellation and the Trustee will deliver a
certificate of disposition thereof to the Issuer.

 

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

 

The Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any exchange or registration of transfer of Securities.  No service charge shall be made for any such
transaction.

 

The Issuer shall not be required to exchange
or register a transfer of (a) any Securities of any series for a period of 15
days next preceding the first mailing of notice of redemption of Securities of
such series to be redeemed or (b) any Securities selected, called or being
called for redemption, in whole or in part, except, in the case of any Security
to be redeemed in part, the portion thereof not so to be redeemed.

 

(5)           Notwithstanding any other provision
of this Section 2.8, unless and until it is exchanged in whole or in part for
Securities in definitive registered form, a Registered Security in global form
representing all or a portion of the Securities of a series may not be
transferred except as a whole by the Depositary for such series to a nominee of
such Depositary or by a nominee of such Depositary to such Depositary or
another nominee of such Depositary or by such Depositary or any such nominee to
a successor Depositary for such series or a nominee of such successor
Depositary.

 

If at any time the Depositary for any
Registered Securities of a series represented by one or more Registered
Securities in global form notifies the Issuer that it is unwilling or unable to
continue as Depositary for such Registered Securities or if at any time the Depositary
for such Registered Securities shall no longer be eligible under Section 2.4,
the Issuer shall appoint a successor Depositary eligible under Section 2.4 with
respect to such Registered Securities. 
If a successor Depositary eligible under Section 2.4 for such Registered
Securities is not appointed by the Issuer within 90 days after the Issuer
receives such notice or becomes aware of such ineligibility, the Issuer’s
election pursuant to Section 2.3 that such Registered Securities be represented
by one or more Registered Securities in global form shall no longer be
effective and the Issuer will execute, and the Trustee, upon receipt of an
Officer’s Certificate for the authentication and delivery of definitive
Securities of such series, will authenticate and deliver, Securities of such
series in definitive registered form without Coupons, in any authorized
denominations, in an aggregate principal amount equal to the principal amount
of the Registered Security or Securities in global form representing such
Registered Securities in exchange for such Registered Security or Securities in
global form.

 

The Issuer may at any time and in its sole
discretion determine that the Registered Securities of any series issued in the
form of one or more Registered Securities in global form shall no longer be
represented by a Registered Security or Securities in global form.  In such event the Issuer will execute, and
the Trustee, upon receipt of an Officer’s Certificate for the authentication
and delivery of definitive Securities of such series, will authenticate and
deliver, Securities of such series in definitive registered form without
Coupons, in any authorized denominations, in an aggregate principal amount
equal to the principal amount of the Registered Security or Securities in
global form representing such Registered Securities, in exchange for such
Registered Security or Securities in global form.

 

If specified by the Issuer pursuant to
Section 2.3 with respect to Securities represented by a Registered Security in global
form, the Depositary for such Registered Security in global form may surrender
such Registered Security in global form in exchange in whole or in part for
Registered Securities of the same series in definitive form on such terms as
are acceptable to the Issuer and such Depositary.  Thereupon, the Issuer shall execute, and the Trustee shall
authenticate and deliver, without service charge,

 

(a)           to the Person specified by such
Depositary a new Registered Security or Securities of the same series, of any
authorized denominations as requested by such Person, in an

 

13

 

aggregate principal amount equal to and in
exchange for such Person’s beneficial interest in the Registered Security in
global form; and

 

(b)           to such Depositary a new Registered
Security in global form in a denomination equal to the difference, if any,
between the principal amount of the surrendered Registered Security in global
form and the aggregate principal amount of Registered Securities authenticated
and delivered pursuant to clause (a) above.

 

Upon the exchange of a Registered Security in
global form for Registered Securities in definitive form without Coupons, in
authorized denominations, such Registered Security in global form shall be canceled
by the Trustee or an agent of the Issuer or the Trustee.  Registered Securities in definitive form
issued in exchange for a Registered Security in global form pursuant to this
Section 2.8 shall be registered in such names and in such authorized denominations
as the Depositary for such Registered Security in global form, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee or an agent of the Issuer or the Trustee.  The Trustee or such agent shall deliver such
Securities to or as directed by the Persons in whose names such Securities are
so registered.

 

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

 

(7)           Notwithstanding anything herein or in
the terms of any series of Securities to the contrary, none of the Issuer, the
Trustee or any agent of the Issuer or the Trustee (any of which, other than the
Issuer, shall conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, on an Officer’s Certificate and
an Opinion of Counsel) shall be required to exchange any Unregistered Security
for a Registered Security if such exchange would result in adverse income tax
consequences to the Issuer.

 

(8)           The Trustee shall have no obligation
or duty to monitor, determine or inquire as to compliance with any restrictions
on transfer imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Security (including any transfers
between or among depositary participants or beneficial owners of interests in
any Global Security) other than to require delivery of such certificates and
other documentation or evidence as are expressly required by, and to do so if
and when expressly required by the terms of, this Indenture, and to examine the
same to determine substantial compliance as to form with the express
requirements hereof.

 

Section 2.9             Mutilated,
Defaced, Destroyed, Lost and Stolen Securities.  In case any Security or any Coupon appertaining to any Security
shall become mutilated, defaced or be destroyed, lost or stolen, the Issuer in
its discretion may execute, and upon the written request of any officer of the
Issuer, the Trustee shall authenticate and deliver a new Security of the same
series, maturity date, interest rate and original issue date, bearing a number
or other distinguishing symbol not contemporaneously outstanding, in exchange
and substitution for the mutilated or defaced Security, or in lieu of and in
substitution for the Security so destroyed, lost or stolen with Coupons
corresponding to the Coupons appertaining to the Securities so mutilated,
defaced, destroyed, lost or stolen, or in exchange or substitution for the
Security to which such mutilated, defaced, destroyed, lost or stolen Coupon
appertained, with Coupons appertaining thereto corresponding to the Coupons so
mutilated, defaced, destroyed, lost or stolen. 
In every case the applicant for a substitute Security or Coupon shall
furnish to the Issuer and to the Trustee and any agent of the Issuer or the
Trustee such security or indemnity satisfactory to them to indemnify and defend
and to save each of them harmless and, in every case of destruction, loss or
theft, evidence to their satisfaction of the destruction, loss or theft of such
Security or Coupon and of the ownership thereof and in the case of mutilation
or defacement shall surrender the Security and related Coupons to the Trustee
or such agent.

 

Upon the issuance of any substitute Security
or Coupon, the Issuer 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) or its
agent connected therewith.  In case any
Security or Coupon which has matured or is about to mature or has been called
for

 

14

 

redemption in full shall become mutilated or
defaced or be destroyed, lost or stolen, the Issuer may instead of issuing a
substitute Security, pay or authorize the payment of the same or the relevant
Coupon (without surrender thereof except in the case of a mutilated or defaced
Security or Coupon), if the applicant for such payment shall furnish to the
Issuer and to the Trustee and any agent of the Issuer or the Trustee such
security or indemnity satisfactory to them to save each of them harmless, and,
in every case of destruction, loss or theft, the applicant shall also furnish
to the Issuer and the Trustee and any agent of the Issuer or the Trustee
evidence to their satisfaction of the destruction, loss or theft of such
Security or Coupon and of the ownership thereof.

 

Every substitute Security or Coupon of any
series issued pursuant to the provisions of this Section by virtue of the fact
that any such Security or Coupon is destroyed, lost or stolen shall constitute
an additional contractual obligation of the Issuer, whether or not the
destroyed, lost or stolen Security or Coupon shall be at any time enforceable
by anyone and shall be entitled to all the benefits of (but shall be subject to
all the limitations of rights set forth in) this Indenture equally and
proportionately with any and all other Securities or Coupons of such series
duly authenticated and delivered hereunder. 
All Securities and Coupons shall be held and owned upon the express
condition that, to the extent permitted by law, the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, defaced or
destroyed, lost or stolen Securities and Coupons and shall preclude any and all
other rights or remedies notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

 

Section 2.10           Cancellation
of Securities.  All Securities and
Coupons surrendered for payment, redemption, registration of transfer or
exchange, or for credit against any payment in respect of a sinking or
analogous fund, if surrendered to the Issuer or any agent of the Issuer or the
Trustee or any agent of the Trustee, shall be delivered to the Trustee or its
agent for cancellation or, if surrendered to the Trustee, shall be canceled by
it; and no Securities or Coupons shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Indenture.  The Trustee or its agent shall dispose of
canceled Securities and Coupons held by it in accordance with its customary
procedures for the disposition of cancelled securities in effect as of the date
of such cancellation.  If the Issuer or
its agent shall acquire any of the Securities or Coupons, such acquisition
shall not operate as a redemption or satisfaction of the indebtedness
represented by such Securities or Coupons unless and until the same are
delivered to the Trustee or its agent for cancellation.

 

Section 2.11           Temporary Securities.  Pending the preparation of definitive
Securities for any series, the Issuer may execute and the Trustee shall
authenticate and deliver temporary Securities for such series (printed,
lithographed, typewritten or otherwise reproduced, in each case in form
satisfactory to the Trustee).  Temporary
Securities of any series shall be issuable as Registered Securities without
Coupons, or as Unregistered Securities with or without Coupons attached thereto,
of any authorized denomination, and substantially in the form of the definitive
Securities of such series but with such omissions, insertions and variations as
may be appropriate for temporary Securities, all as may be determined by the
Issuer with the concurrence of the Trustee as evidenced by the execution and
authentication thereof.  Temporary
Securities may contain such references to any provisions of this Indenture as
may be appropriate.  Every temporary
Security shall be executed by the Issuer and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Securities. 
Without unreasonable delay the Issuer shall execute and shall furnish
definitive Securities of such series and thereupon temporary Registered Securities
of such series may be surrendered in exchange therefor without charge at each
office or agency to be maintained by the Issuer for that purpose pursuant to
Section 3.2 and, in the case of Unregistered Securities, at any agency
maintained by the Issuer for such purpose as specified pursuant to Section 3.2,
and the Trustee shall authenticate and deliver in exchange for such temporary
Securities of such series an equal aggregate principal amount of definitive
Securities of the same series having authorized denominations and, in the case
of Unregistered Securities, having attached thereto any appropriate
Coupons.  Until so exchanged, the
temporary Securities of any series shall be entitled to the same benefits under
this Indenture as definitive Securities of such series, unless otherwise
established pursuant to Section 2.3. 
The provisions of this Section are subject to any restrictions or
limitations on the issue and delivery of temporary Unregistered Securities of any
series that may be established pursuant to Section 2.3 (including any provision
that Unregistered Securities of

 

15

 

such series initially be issued
in the form of a single Unregistered Security in global form to be delivered to
a Depositary or agency located outside the United States and the procedures
pursuant to which Unregistered Securities in definitive or global form of such
series would be issued in exchange for such temporary Unregistered Security in
global form).

 

Section 2.12           Global
Securities.  Neither the Trustee nor
any agent shall have any responsibility for any actions taken or not taken by
the Depositary.

 

Section 2.13           CUSIP
Numbers.  The Issuer in issuing the
Securities may use “CUSIP” numbers (if then generally in use), and, if so used
by the Issuer, 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 identification numbers printed on
the Securities,  and any such redemption
shall not be affected by any defect in or omission of such numbers.  The Issuer will promptly notify the Trustee
in writing of any change in the “CUSIP” numbers.

 

ARTICLE III

 

COVENANTS OF
THE ISSUER

 

Section 3.1             Payment
of Principal, Premium, Interest and Additional Amounts.  The Issuer covenants and agrees for the
benefit of each series of Securities that it will duly and punctually pay or
cause to be paid the principal of, and premium, if any, and interest on, each
of the Securities of such series (together with any Additional Amounts payable
pursuant to the terms of such Securities) at the place or places, at the
respective times and in the manner provided in such Securities and in the
Coupons, if any, appertaining thereto and in this Indenture.  The interest on Securities with Coupons attached
(together with any Additional Amounts payable pursuant to the terms of such
Securities) shall be payable only upon presentation and surrender of the
several Coupons for such interest installments as are evidenced thereby as they
severally mature.  If any temporary
Unregistered Security provides that interest thereon may be paid while such
Security is in temporary form, the interest on any such temporary Unregistered
Security (together with any Additional Amounts payable pursuant to the terms of
such Security) shall be paid, as to the installments of interest evidenced by
Coupons attached thereto, if any, only upon presentation and surrender thereof,
and, as to the other installments of interest, if any, only upon presentation
of such Securities for notation thereon of the payment of such interest, in
each case subject to any restrictions that may be established pursuant to
Section 2.3.  The interest on Registered
Securities (together with any Additional Amounts payable pursuant to the terms
of such Securities) shall be payable only to or upon the written order of the
Holders thereof and, at the option of the Issuer, may be paid by wire transfer
or by mailing checks for such interest payable to or upon the written order of
such Holders at their last addresses as they appear on the registry books of
the Issuer.

 

Section 3.2             Offices
for Payments, Etc.  So long as any
Securities are issued as Registered Securities, the Issuer will maintain in the
Borough of Manhattan, The City of New York, an office or agency where the
Registered Securities of each series may be presented for payment, where the
Securities of each series may be presented for exchange as is provided in this
Indenture and, if applicable, pursuant to Section 2.3 and where the Registered
Securities of each series may be presented for registration of transfer as in
this Indenture provided.

 

So long as any Securities are issued as
Unregistered Securities, the Issuer will maintain one or more offices or
agencies in a city or cities located outside the United States (including any
city in which such an agency is required to be maintained under the rules of
any shares exchange on which the Securities of such series are listed) where
the Unregistered Securities, if any, of each series and Coupons, if any,
appertaining thereto may be presented for payment.  No payment on any Unregistered Security or Coupon will be made
upon presentation of such Unregistered Security or Coupon at an agency of the
Issuer within the United States nor will any payment be made by transfer to an
account in, or by mail to an address in, the United States unless pursuant to
applicable United States laws and regulations then in effect

 

16

 

such payment can be made without adverse tax
consequences to the Issuer. 
Notwithstanding the foregoing, payments in Dollars on Unregistered
Securities of any series and Coupons appertaining thereto which are payable in
Dollars may be made at an agency of the Issuer maintained in the Borough of
Manhattan, The City of New York, if such payment in Dollars at each agency
maintained by the Issuer outside the United States for payment on such
Unregistered Securities is illegal or effectively precluded by exchange
controls or other similar restrictions.

 

The Issuer will maintain in the Borough of Manhattan,
The City of New York, an office or agency where notices and demands to or upon
the Issuer in respect of the Securities of any series, the Coupons appertaining
thereto or this Indenture may be served.

 

The Issuer will give to the Trustee written notice
of the location of each such office or agency and of any change of location
thereof.  In case the Issuer shall fail
to maintain any agency required by this Section, or shall fail to give such
notice of the location or of any change in the location of any of the above
agencies, presentations and demands may be made and notices may be served at
the Corporate Trust Office of the Trustee.

 

The Issuer may from time to time designate
one or more additional offices or agencies where the Securities of a series and
any Coupons appertaining thereto may be presented for payment, where the
Securities of that series may be presented for exchange as provided in this
Indenture and pursuant to Section 2.3 and where the Registered Securities of
that series may be presented for registration of transfer as in this Indenture
provided, and the Issuer may from time to time rescind any such designation, as
the Issuer may deem desirable or expedient; provided, however, that no such
designation or rescission shall in any manner relieve the Issuer of its
obligation to maintain the agencies provided for in this Section.  The Issuer will give to the Trustee prompt
written notice of any such designation or rescission thereof.

 

Section 3.3             Money
for Security Payments to be Held in Trust; Unclaimed Money.  If the Issuer shall at any time act as its
own paying agent, it will, on or before each due date of the principal of and
premium, if any, or interest or Additional Amounts on any of the Securities,
segregate and hold in trust for the benefit of the Holders entitled thereto a
sum sufficient to pay the principal (and premium, if any) or interest so
becoming due until such sums shall be paid to such Holders or otherwise
disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act.

 

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

 

The Issuer will cause each paying agent other
than the Trustee to execute and deliver to the Trustee an instrument in which
such paying agent shall agree with the Trustee, subject to the provisions of
this Section, that such paying agent will:

 

(1)           hold all sums held by it for the
payment of the principal of and premium, if any, or interest or Additional
Amounts on Securities in trust for the benefit of the Holders entitled thereto
until such sums shall be paid to such Persons or otherwise disposed of as
herein provided;

 

(2)           give the Trustee notice of any
default by the Holders (or any other obligor upon the Securities) in the making
of any payment of principal and premium, if any, or interest or Additional
Amounts; and

 

(3)           at any time during the continuance of
any such default, upon the written request of the Trustee, forthwith pay to the
Trustee all sums so held in trust by such paying agent.

 

17

 

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

 

Any money deposited with the Trustee or any
paying agent, or then held by the Issuer in trust for the payment of the
principal of and premium, if any, or interest or Additional Amounts on any
Security and remaining unclaimed for two years after such principal and
premium, if any, or interest or Additional Amounts has become due and payable
shall be paid to the Issuer on Issuer Order, or, if then held by the Issuer, shall
be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof, and all liability of the Trustee or such paying agent with
respect to such trust money, and all liability of the Issuer as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
paying agent, before being required to make any such repayment, shall at the
expense of the Issuer cause to be published at least once, in an Authorized
Newspaper in the Borough of Manhattan, The City of New York, and at least once
in an Authorized Newspaper in London, notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days
from the date of such publication, any unclaimed balance of such money then
remaining will be repaid to the Issuer.

 

Section 3.4             Statements
of Officers of Issuer as to Default; Notice of Default.

 

(1)           The Issuer will deliver to the
Trustee, within 120 days after the end of each fiscal year of the Issuer ending
after the date hereof, a certificate, signed by the principal executive
officer, principal financial officer or principal accounting officer, stating
whether or not to the best knowledge of the signer thereof the Issuer is in
default (without regard to periods of grace or requirements of notice) in the
performance and observance of any of the terms, provisions and conditions
hereof, and if the Issuer shall be in default, specifying all such defaults and
the nature and status thereof of which they may have knowledge.

 

(2)           The Issuer shall file with the
Trustee written notice of the occurrence of any default or Event of Default
within five Business Days of its becoming aware of any such default or Event of
Default.

 

Section 3.5             Existence.  Subject to Article IX, the Issuer will do or
cause to be done all things necessary to preserve and keep in full force and
effect its existence, rights (charter and statutory) and franchises and those
of each of its Subsidiaries; provided, however, that the Issuer shall not be
required to preserve any such right or franchise if the Issuer shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Issuer or the business of any Subsidiary and that the loss
thereof is not disadvantageous in any material respect to the Holders.

 

Section 3.6             Maintenance
of Properties.  The Issuer will
cause all properties used or useful in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair
and working order and supplied with all necessary equipment and will cause to
be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Issuer may be necessary so
that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this
Section shall prevent the Issuer from discontinuing the operation or maintenance
of any of such properties if such discontinuance is, in the judgment of the
Issuer, desirable in the conduct of its business or the business of any
Subsidiary and not disadvantageous in any material respect to the Holders.

 

Section 3.7             Payment
of Taxes and Other Claims.  The
Issuer shall pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (1) all taxes, assessments and governmental
charges (including withholding taxes and any penalties, interest and additions
to taxes) levied or imposed upon the Issuer or any Subsidiary or upon the
income, profits or property of the Issuer or any

 

18

 

Subsidiary, and (2) all
material lawful claims for labor, materials and supplies which, if unpaid,
might by law become a lien upon the property of the Issuer or any Subsidiary;
provided, however, that the Issuer shall not be required to pay or discharge or
cause to be paid or discharged any such tax, assessment, charge or claim whose
amount, applicability or validity is being contested in good faith by
appropriate proceedings and for which disputed amounts adequate reserves have
been made.

 

Section 3.8             Further
Instruments and Acts.  Upon request
of the Trustee or as necessary, the Issuer will execute and deliver such
further instruments and perform such further acts as may be reasonably
necessary or proper to carry out more effectively the purposes of this
Indenture.

 

Section 3.9             Limitation
on Liens  The Issuer and its
Restricted Subsidiaries may not issue, assume, incur, suffer to exist or
guarantee any indebtedness for borrowed money secured by a mortgage, pledge,
lien or other encumbrance, directly or indirectly, upon any shares of the
Voting Shares of a Restricted Subsidiary which shares are owned by the Issuer
or its Restricted Subsidiaries without effectively providing that the
Securities (and if the Issuer so elects, any other indebtedness of the Issuer
ranking on a parity with the Securities) shall be secured equally and ratably with,
or prior to, any such secured indebtedness so long as such indebtedness remains
outstanding.  This Section 3.9 shall not
apply to Permitted Liens upon any shares of Voting Shares of any Person
existing at the time such Person becomes a Restricted Subsidiary and any
extensions, renewals or replacements thereof.

 

Section 3.10           Commission
Reports.  The Issuer shall provide
to the Trustee, within 15 days after it files such annual and quarterly
reports, information, documents and other reports with the Commission, copies
of its annual report and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the Commission may by rules
and regulations prescribe) which the Issuer is required to file with the
Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.  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 Issuer’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officer’s
Certificates).  The Trustee shall be
under no obligation to analyze or make any credit decisions with respect to
reports or other information received by it pursuant to this section, but shall
hold such reports and other information solely for the benefit of, and review
by, the security holders.

 

Section 3.11           Calculation
of Original Issue Discount.  The
Issuer shall file with the Trustee promptly at the end of each calendar year
(1) a written notice specifying the amount of original issue discount
(including daily rates and accrual periods), if any, accrued on Outstanding
Securities as of the end of such year and (2) such other specific information
relating to such original issue discount as may then be relevant under the
Internal Revenue Code of 1986, as amended from time to time.

 

ARTICLE IV

 

SECURITYHOLDERS
LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

 

Section 4.1             Issuer
to Furnish Trustee Information as to Names and Addresses of Securityholders.  If and so long as the Trustee shall not be
the Security Registrar for the Securities of any series, the Issuer and any
other obligor on the Securities will furnish or cause to be furnished to the
Trustee a list in such form as the Trustee may reasonably require of the names
and addresses of the Holders of the Registered Securities of such series
pursuant to Section 312 of the Trust Indenture Act of 1939 (1) semi-annually
not more than 5 days after each record date for the payment of interest on such
Registered Securities, as hereinabove specified, as of such record date and on
dates to be determined pursuant to Section 2.3 for non-interest bearing
Registered Securities in each year, and (2) at such other times as the Trustee
may request in writing, within thirty days after receipt by the Issuer of any
such request as of a date not more than 15 days prior to the time such
information is furnished.

 

19

 

Section 4.2             Preservation
of Information; Communications to Holders.

 

(1)           The Trustee shall preserve, in as
current a form as is reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as provided in
Section 4.1 and the names and addresses of Holders received by the Trustee in
its capacity as Security Registrar or paying agent.  The Trustee may destroy any list furnished to it as provided in
Section 4.1 upon receipt of a new list so furnished.

 

(2)           The rights of Holders to communicate
with other Holders with respect to their rights under this Indenture or under
the Securities, and the corresponding rights and privileges of the Trustee,
shall be as provided by the Trust Indenture Act of 1939.

 

(3)           Every Holder of Securities, by
receiving and holding the same, agrees with the Issuer and the Trustee that
neither the Issuer nor the Trustee nor any agent of any of them shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders in accordance with Sections 4.1 and 4.2(2),
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under Section 4.2(2).

 

Section 4.3             Reports
by the Trustee.  Any Trustee’s
report required under Section 313(a) of the Trust Indenture Act of 1939 shall
be transmitted within 60 days after May 15 in each year beginning 2005, as
provided in Section 313(c) of the Trust Indenture Act of 1939, so long as any
Securities are Outstanding hereunder, and shall be dated as of May 15, if
required by and in compliance with Section 313(a) of the Trust Indenture Act of
1939.

 

A copy of each
such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each securities exchange, if any, upon which the Securities are
listed, with the Commission and with the Issuer.  The Issuer will promptly notify the Trustee when the Securities
are listed on any securities exchange and of any delisting thereof.

 

Section 4.4             Payment
of Additional Amounts.   The Issuer
will make all payments of principal of and premium, if any, interest and any
other amounts on, or in respect of, the Securities without withholding or
deduction at source for, or on account of, any present or future taxes, fees,
duties, assessments or governmental charges of whatever nature imposed or
levied by or on behalf of Bermuda or any other jurisdiction in which the Issuer
is organized or otherwise considered to be a resident for tax purposes, or any
other jurisdiction from which or through which a payment on the Securities is
made by the Issuer (each, a “Taxing Jurisdiction”) or any political subdivision
or taxing authority thereof or therein, unless such taxes, fees, duties,
assessments or governmental charges are required to be withheld or deducted by
(x) the laws (or any regulations or rulings promulgated thereunder) of a Taxing
Jurisdiction or any political subdivision or taxing authority thereof or
therein or (y) an official position regarding the application, administration,
interpretation or enforcement of any such laws, regulations or rulings
(including, without limitation, a holding by a court of competent jurisdiction
or by a taxing authority in a Taxing Jurisdiction or any political subdivision
thereof). If a withholding or deduction at source is required, the Issuer will,
subject to certain limitations and exceptions described below, pay to the
Holder of any Security such Additional Amounts as may be necessary so that
every net payment of principal, premium, if any, interest or any other amount
made to such Holder, after the withholding or deduction, will not be less than
the amount provided for in such Security or in the indenture to be then due and
payable.

 

The Issuer will not be required to pay any
Additional Amounts for or on account of:

 

(1)           any tax, fee, duty, assessment or
governmental charge of whatever nature which would not have been imposed but
for the fact that such Holder (a) was a resident, domiciliary or national of,
or engaged in business or maintained a permanent establishment or was
physically present in, the relevant

 

20

 

Taxing Jurisdiction or any political
subdivision thereof or otherwise had some connection with the relevant Taxing
Jurisdiction other than by reason of the mere ownership of, or receipt of
payment under, such Security, (b) presented, where presentation is required,
such Security for payment in the relevant Taxing Jurisdiction or any political
subdivision thereof, unless such Security could not have been presented for
payment elsewhere, or (c) presented, where presentation is required, such
Security for payment more than 30 days after the date on which the payment in
respect of such Security became due and payable or provided for, whichever is
later, except to the extent that the Holder would have been entitled to such
additional amounts if it had presented such Security for payment on any day
within that 30-day period;

 

(2)           any estate, inheritance, gift, sale,
transfer, personal property or similar tax, assessment or other governmental
charge;

 

(3)           any tax, assessment or other
governmental charge that is imposed or withheld by reason of the failure by the
Holder of such Security to comply with any reasonable request by us addressed
to the Holder within 90 days of such request (a) to provide information
concerning the nationality, residence or identity of the Holder or (b) to make
any declaration or other similar claim or satisfy any information or reporting
requirement, which is required or imposed by statute, treaty, regulation or
administrative practice of the relevant Taxing Jurisdiction or any political
subdivision thereof as a precondition to exemption from all or part of such
tax, assessment or other governmental charge;

 

(4)           any withholding or deduction required
to be made pursuant to EU Council Directive 2003/48/EC of 3 June 2003 on the
taxation of savings income in the form of interest payments (the “EU
Directive”), or any law implementing or complying with, or introduced in order
to conform to such EU Directive; or

 

(5)           any combination of items (1), (2),
(3) and (4).

 

In addition, the Issuer will not pay
Additional Amounts with respect to any payment of principal of, or premium, if
any, interest or any other amounts on, any such Security to any Holder who is a
fiduciary or partnership or other than the sole beneficial owner of such
Security if such payment would be required by the laws of the relevant Taxing
Jurisdiction (or any political subdivision or relevant taxing authority thereof
or therein) to be included in the income for tax purposes of a beneficiary or
partner or settlor with respect to such fiduciary or a member of such
partnership or a beneficial owner to the extent such beneficiary, partner or
settlor would not have been entitled to such Additional Amounts had it been the
Holder of the Security.

 

Whenever in this Indenture there is
mentioned, in any context, the payment of the principal of or any premium,
interest or any other amounts on, or in respect of, any Security of any series
or the net proceeds received on the sale or exchange of any Security of any
series, such mention shall be deemed to include mention of the payment of
Additional Amounts provided by the terms of such series established hereby or
pursuant hereto to the extent that, in such context, Additional Amounts are,
were or would be payable in respect thereof pursuant to such terms, and express
mention of the payment of Additional Amounts (if applicable) in any provision
hereof shall not be construed as excluding the payment of Additional Amounts in
those provisions hereof where such express mention is not made.

 

Except as otherwise provided in or pursuant
to this Indenture or the related Board Resolution of the applicable series, at
least 10 days prior to the first Interest Payment Date with respect to a series
of Securities (or if the Securities of such series shall not bear interest
prior to Maturity, the first day on which a payment of principal is made), and
at least 10 days prior to each date of payment of principal or interest if
there has been any change with respect to the matters set forth in the
below-mentioned Officer’s Certificate, the Issuer shall furnish to the Trustee
and the principal paying agent or paying agents, if other than the Trustee, an
Officer’s Certificate instructing the Trustee and such paying agent or paying
agents whether such payment of principal of and premium, if any, interest or
any other amounts on the Securities of such series shall be made to Holders of
Securities of such series without withholding for or on account of any tax,
fee, duty, assessment or other governmental charge described in this Section
4.4.  If any such withholding shall be
required, then such Officer’s Certificate shall specify by Taxing Jurisdiction
the amount, if any, required to be withheld on such payments to such Holders of
Securities and the Issuer agrees to pay to the Trustee or such paying agent the
Additional Amounts required by this Section 4.4. The Issuer covenants to
indemnify the Trustee and any paying agent for, and to hold them harmless
against, any

 

21

 

loss, liability or expense reasonably
incurred without negligence or bad faith on their part arising out of or in
connection with actions taken or omitted by any of them in reliance on any
Officer’s Certificate furnished pursuant to this Section 4.4.

 

The Issuer will make or cause to be made any
required withholding or deduction and remit the full amount deducted or
withheld to the relevant Taxing Jurisdiction in accordance with applicable
law.  The Issuer will furnish or cause
to be furnished to the Holders, within 60 days after the date the payment of
any taxes so deducted or withheld is due pursuant to applicable law, either
certified copies of tax receipts evidencing such payment by the Issuer or, if
such receipts are not obtainable, other evidence of such payments by the Issuer
reasonably satisfactory to the Holders.

 

The foregoing obligations will survive any
termination, defeasance or discharge of the Indenture and will apply mutatis
mutandis to any jurisdiction in which any successor to the Issuer is organized
or any political subdivision or taxing authority or agency thereof or therein.

 

Section 4.5             Redemption
for Tax Purposes.   The Issuer may
redeem the Securities at its option, in whole but not in part, at a redemption
price equal to 100% of the principal amount, together with accrued and unpaid
interest and Additional Amounts, if any, to the date fixed for redemption, at
any time the Issuer receives an opinion of counsel that as a result of (1) any
change in or amendment to the laws or treaties (or any regulations or rulings
promulgated under these laws or treaties) of Bermuda or any Taxing Jurisdiction
(or of any political subdivision or taxation authority affecting taxation) or
any change in the application or official interpretation of such laws,
regulations or rulings, or (2) any action taken by a taxing authority of
Bermuda or any Taxing Jurisdiction (or any political subdivision or taxing
authority affecting taxation) which action is generally applied or is taken
with respect to the Issuer, or (3) a decision rendered by a court of competent
jurisdiction in Bermuda or any Taxing Jurisdiction (or any political
subdivision) whether or not such decision was rendered with respect to the Issuer,
the Issuer will be required as of the next interest payment date to pay
Additional Amounts with respect to the Securities as provided in Section 4.4
and such requirements cannot be avoided by the use of reasonable measures
(consistent with practices and interpretations generally followed or in effect
at the time such measures could be taken) then available. If the Issuer elects
to redeem the Securities under this provision, the Issuer will give written
notice of such election at least 30 days but no more than 60 days before the
redemption date to the Trustee and the Holders of the Securities.  Notwithstanding the foregoing, no such
notice of redemption will be given earlier than 90 days prior to the earliest
date on which the Issuer would be obliged to make such payment of Additional
Amounts or withholding if a payment in respect of the Securities were then
due.   Interest on the Securities will
cease to accrue unless the Issuer defaults in the payment of the redemption
price.  Any such redemption will be
subject to Article 12 hereof.

 

ARTICLE V

 

REMEDIES OF
THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

 

Section 5.1             Event
of Default Defined; Acceleration of Maturity; Waiver of Default.  “Event of Default” with respect to
Securities of any series wherever used herein, means each one of the following
events which shall have occurred and be continuing (whatever the reason for
such Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body) unless it is either inapplicable to a particular series or
it is specifically deleted or modified in an indenture supplemental hereto, if
any, under which such series of Securities is issued:

 

(1)           default in the payment of any
installment of interest upon any of the Securities of such series as and when
the same shall become due and payable, and continuance of such default for a
period of 30 days and the interest payment date has not been properly extended
or deferred; provided, however, that if the Issuer is permitted by the terms of
the Securities of the applicable series to defer the payment in question, the
date on which such payment is due and payable shall be the date on which the
Issuer is required to make payment following such deferral, if such deferral
has been elected pursuant to the

 

22

 

terms of the Securities of that series
(subject to any deferral of any due date in the case of an extension period);
or

 

(2)           default in the payment of all or any
part of the principal of, or premium, if any, or any Additional Amounts on any
of the Securities of such series, as and when the same shall become due and
payable either at maturity, upon any redemption, by declaration or otherwise;
provided, however, that if the Issuer is permitted by the terms of the
Securities of the applicable series to defer the payment in question, the date
on which such payment is due and payable shall be the date on which the Issuer
is required to make payment following such deferral, if such deferral has been
elected pursuant to the terms of the Securities of that series (subject to any
deferral of any due date in the case of an extension period); or

 

(3)           default in the payment of any sinking
fund installment as and when the same shall become due and payable by the terms
of the Securities of such series; or

 

(4)           failure on the part of the Issuer
duly to observe or perform any other of the covenants or agreements on the part
of the Issuer in the Securities of such series (other than a covenant or
agreement in respect of the Securities of such series a default in the
performance or breach of which is elsewhere in this Section specifically dealt
with) or contained in this Indenture (other than a covenant or agreement
included in this Indenture solely for the benefit of a series of Securities
other than such series) for a period of 90 days after the date on which written
notice specifying such failure, stating that such notice is a “Notice of
Default” hereunder and demanding that the Issuer remedy the same, shall have
been given by registered or certified mail, return receipt requested, to the
Issuer by the Trustee, or to the Issuer and the Trustee by the holders of at
least 33% in aggregate principal amount of the Outstanding Securities of such
series; or

 

(5)           a decree or order by a court having
jurisdiction in the premises shall have been entered adjudging the Issuer or
any Restricted Subsidiary as bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization of the Issuer or any Restricted
Subsidiary under any applicable bankruptcy, insolvency or other similar law now
or hereafter in effect, and such decree or order shall have continued
undischarged and unstayed for a period of 120 days; or a decree or order of a
court having jurisdiction in the premises for the appointment of a receiver or
liquidator or trustee or assignee in bankruptcy or insolvency of the Issuer or
any Restricted Subsidiary or of its or their property, or for the winding up or
liquidation of its or their affairs, shall have been entered, and such decree
or order shall have remained in force and unstayed for a period of 120 days; or

 

(6)           the Issuer or any Restricted
Subsidiary shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or consent to the
entry of an order for relief in an involuntary case under any such law, or
consent to the appointment or taking possession by a receiver, liquidator,
assignee, custodian, trustee or sequestrator (or similar official) of the
Issuer or any Restricted Subsidiary or for any substantial part of its or their
property, or make any general assignment for the benefit of creditors, or shall
admit in writing its inability to pay its or their respective debts generally
as they become due; or

 

(7)           an event of default, as defined in
any one or more mortgages, indentures, instruments, bonds, debentures, notes or
other similar instruments under which there may be issued, or by which there
may be secured or evidenced, any indebtedness (other than the Securities of
such series or nonrecourse obligations) (“Indebtedness”) in excess of
$100,000,000 for money borrowed by the Issuer or a Restricted Subsidiary shall
occur (after giving effect to any applicable grace period), if such event of
default shall result in the acceleration of such Indebtedness prior to its
expressed maturity unless such Indebtedness is discharged or such acceleration
is cured, waived, rescinded or annulled within 30 days after written notice
thereof shall have been given by registered or certified mail, return receipt
requested, to the Issuer by the Trustee or to the Issuer and the Trustee by the
Holders of at least 33% in aggregate principal amount of the Outstanding
Securities of such series which notice shall state that it is a “Notice of
Default” hereunder; or

 

23

 

(8)           any other Event of Default provided
in the supplemental indenture under which such series of Securities is issued
or in the form of Security for such series; provided that if any such default
or acceleration referred to in clause (7) above shall cease or be cured, waived,
rescinded or annulled, then the Event of Default hereunder by reason thereof
shall be deemed likewise to have been thereupon cured.

 

If an Event of Default described in clause
(1), (2), (3), (4), (7) or (8) occurs and is continuing, then, and in each and
every such case, except for any series of Securities the principal of which
shall have already become due and payable, either the Trustee or the Holders of
not less than 33% in aggregate principal amount of the Securities of each such
affected series then Outstanding hereunder (voting as separate classes) by
notice in writing to the Issuer (and to the Trustee if given by
Securityholders), may declare the entire principal (or, if the Securities of
any such affected series are Original Issue Discount Securities, such portion
of the principal amount as may be specified in the terms of such series) of
such Securities, and the interest accrued thereon, if any, to be due and
payable immediately, and upon any such declaration, the same shall become
immediately due and payable.  If an
Event of Default specified in clause (5) or (6) occurs, all unpaid principal
(or, if any Securities are Original Issue Discount Securities, such portion of
the principal as may be specified in the terms thereof) of all the Securities
then Outstanding, and interest accrued thereon, if any, shall be due and
payable immediately, without any declaration or other act on the part of the
Trustee or any Securityholder.

 

The foregoing provisions, however, are
subject to the condition that if, at any time after the principal (or, if the
Securities are Original Issue Discount Securities, such portion of the
principal as may be specified in the terms thereof) of the Securities of any
series (or of all the Securities, as the case may be) shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
Issuer shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of interest and Additional Amounts, if any, upon all the
Securities of such series (or of all the Securities, as the case may be) and
the principal of any and all Securities of each such series (or of all the
Securities, as the case may be) which shall have become due otherwise than by
acceleration (with interest upon such principal and, to the extent that payment
of such interest is enforceable under applicable law, on overdue installments
of interest at the same rate as the rate of interest or Yield to Maturity (in
the case of Original Issue Discount Securities) specified in the Securities of
each such series (or at the respective rates of interest or Yields to Maturity
of all the Securities, as the case may be) to the date of such payment or
deposit) and such amount as shall be sufficient to cover reasonable
compensation to the Trustee and each predecessor Trustee, its agents, attorneys
and counsel, and all other expenses and liabilities incurred, and all advances
made, by the Trustee and each predecessor Trustee except as a result of
negligence, bad faith or willful misconduct, and if any and all Events of
Default under the Indenture, other than the non-payment of the principal of
Securities which shall have become due by acceleration, shall have been cured,
waived or otherwise remedied as provided herein, then and in every such case
the Holders of a majority in aggregate principal amount of all the Securities
of each such series, or of all the Securities, in each case voting as a single
class, then Outstanding, by written notice to the Issuer and to the Trustee,
may waive all defaults with respect to each such series (or with respect to all
the Securities, as the case may be) and rescind and annul such declaration and
its consequences, but no such waiver or rescission and annulment shall extend
to or shall affect any subsequent default or shall impair any right consequent
thereon.

 

For all purposes under this Indenture, if a
portion of the principal of any Original Issue Discount Securities shall have
been accelerated and declared due and payable pursuant to the provisions
hereof, then, from and after such declaration, unless such declaration has been
rescinded and annulled, the principal amount of such Original Issue Discount
Securities shall be deemed, for all purposes hereunder, to be such portion of
the principal thereof as shall be due and payable as a result of such
acceleration, and payment of such portion of the principal thereof as shall be
due and payable as a result of such acceleration, together with interest, if
any, thereon and all other amounts owing thereunder, shall constitute payment
in full of such Original Issue Discount Securities.

 

24

 

Section 5.2             Collection
of Indebtedness by Trustee; Trustee May Prove Debt.

 

(1)           The Issuer covenants that (a) in case
default shall be made in the payment of any installment of interest on any of
the Securities of any series when such interest shall have become due and
payable, and such default shall have continued for a period of 30 days or (b)
in case default shall be made in the payment of all or any part of the
principal or any Additional Amounts of the Securities of any series when the
same shall have become due and payable, whether upon maturity of the Securities
of such series or upon any redemption or by declaration or otherwise, then upon
demand of the Trustee, the Issuer will pay to the Trustee for the benefit of
the Holders of the Securities of such series the whole amount that then shall
have become due and payable on all Securities of such series, and such Coupons,
for principal,  interest or Additional
Amounts, as the case may be (with interest to the date of such payment upon the
overdue principal and, to the extent that payment of such interest is
enforceable under applicable law, on overdue installments of interest at the
same rate as the rate of interest or Yield to Maturity (in the case of Original
Issue Discount Securities) specified in the Securities of such series); and in
addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including reasonable compensation to the Trustee
and each predecessor Trustee, their respective agents, attorneys and counsel,
and any expenses and liabilities incurred, and all advances made, by the
Trustee and each predecessor Trustee except as a result of its negligence, bad
faith or willful misconduct.

 

Until such demand is made by the Trustee, the
Issuer may pay the principal of and interest on the Securities of any series to
the registered holders, whether or not the Securities of such series be
overdue.

 

(2)           In case the Issuer shall fail
forthwith to pay such amounts upon such demand, the Trustee, in its own name
and as trustee of an express trust, shall be entitled and empowered to
institute any action or proceedings at law or in equity for the collection of
the sums so due and unpaid, and may prosecute any such action or proceedings to
judgment or final decree, and may enforce any such judgment or final decree
against the Issuer or other obligor upon the Securities and collect in the
manner provided by law out of the property of the Issuer or other obligor upon
the Securities, wherever situated the moneys adjudged or decreed to be payable.

 

(3)           In case there shall be pending
proceedings relative to the Issuer or any other obligor upon the Securities
under Title 11 of the United States Code or any other applicable Federal or
state bankruptcy, insolvency or other similar law, or in case a receiver, assignee
or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar
official shall have been appointed for or taken possession of the Issuer or its
property or such other obligor, or in case of any other comparable judicial
proceedings relative to the Issuer or other obligor upon the Securities, or to
the creditors or property of the Issuer or such other obligor, 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 pursuant to the provisions of
this Section, shall be entitled and empowered, by intervention in such
proceedings or otherwise:

 

(a)           to file and prove a claim or claims
for the whole amount of principal and interest and Additional Amounts (or, if
the Securities of any series are Original Issue Discount Securities, such
portion of the principal amount as may be specified in the terms of such
series) owing and unpaid in respect of the Securities of any series, and to
file such other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for reasonable
compensation to the Trustee and each predecessor Trustee, and their respective
agents, attorneys and counsel, and for reimbursement of all expenses and
liabilities incurred, and all advances made, by the Trustee and each
predecessor Trustee, except as a result of negligence, bad faith or willful
misconduct) and of the Securityholders allowed in any judicial proceedings
relative to the Issuer or other obligor upon the Securities, or to the
creditors or property of the Issuer or such other obligor,

 

(b)           unless prohibited by applicable law
and regulations, to vote on behalf of the holders of the Securities of any
series in any election of a trustee or a standby trustee in arrangement,

 

25

 

reorganization, liquidation or other
bankruptcy or insolvency proceedings or person performing similar functions in
comparable proceedings, and

 

(c)           to collect and receive any moneys or other property
payable or deliverable on any such claims, and to distribute all amounts
received with respect to the claims of the Securityholders and of the Trustee
on their behalf; and any trustee, receiver, or liquidator, custodian or other
similar official is hereby authorized by each of the Securityholders to make payments
to the Trustee, and, in the event that the Trustee shall consent to the making
of payments directly to the Securityholders, to pay to the Trustee such amounts
as shall be sufficient to cover reasonable compensation to the Trustee, each
predecessor Trustee and their respective agents, attorneys and counsel, and all
other expenses and liabilities incurred, and all advances made, by the Trustee
and each predecessor Trustee except as a result of negligence, bad faith or
willful misconduct.

 

Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or vote for or accept or adopt
on behalf of any Securityholder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities of any series or the rights
of any Holder thereof, or to authorize the Trustee to vote in respect of the
claim of any Securityholder in any such proceeding except, as aforesaid, to
vote for the election of a trustee in bankruptcy or similar person.

 

(4)           All rights of action and of asserting claims under
this Indenture, or under any of the Securities of any series or Coupons
appertaining to such Securities, may be enforced by the Trustee without the
possession of any of such Securities or Coupons or the production thereof in
any trial or other proceedings relative thereto, and any such action or
proceedings instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment, subject to the
payment of the expenses, disbursements and compensation of the Trustee, each
predecessor Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Securities or Coupons appertaining to
such Securities in respect of which such action was taken.

 

(5)           In any proceedings brought by the Trustee (and also
any proceedings involving the interpretation of any provision of this Indenture
to which the Trustee shall be a party) the Trustee shall be held to represent
all the Holders of the Securities or Coupons appertaining to such Securities in
respect to which such action was taken, and it shall not be necessary to make
any Holders of such Securities or Coupons appertaining to such Securities
parties to any such proceedings.

 

Section
5.3             Application
of Proceeds.  Any
moneys collected by the Trustee pursuant to this Article in respect of any
series shall be applied in the following order at the date or dates fixed by
the Trustee and, in case of the distribution of such moneys on account of
principal or interest or Additional Amounts, upon presentation of the several
Securities and Coupons appertaining to such Securities in respect of which
monies have been collected and stamping (or otherwise noting) thereon the
payment, or issuing Securities of such series in reduced principal amounts in
exchange for the presented Securities of like series if only partially paid, or
upon surrender thereof if fully paid:

 

FIRST: 
To the payment of costs and expenses applicable to such series in
respect of which monies have been collected, including reasonable compensation
to the Trustee and each predecessor Trustee and their respective agents and
attorneys and of all expenses and liabilities incurred, and all advances made,
by the Trustee and each predecessor Trustee except as a result of negligence,
bad faith or willful misconduct;

 

SECOND: 
In case the principal of the Securities of such series in respect of
which moneys have been collected shall not have become and be then due and
payable, to the payment of interest and Additional Amounts on the Securities of
such series in default in the order of the maturity of the installments of such
interest, with interest (to the extent that such interest has been collected by
the Trustee) upon the overdue installments of interest at the same rate as the
rate of interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in such Securities, such payments to be made ratably to
the persons entitled thereto, without discrimination or preference;

 

26

 

THIRD: 
In case the principal of the Securities of such series in respect of
which moneys have been collected shall have become and shall be then due and
payable, to the payment of the whole amount then owing and unpaid upon all the
Securities of such series for principal and interest and Additional Amounts,
with interest upon the overdue principal, and (to the extent that such interest
has been collected by the Trustee) upon overdue installments of interest at the
same rate as the rate of interest or Yield to Maturity (in the case of Original
Issue Discount Securities) specified in the Securities of such series; and in
case such moneys shall be insufficient to pay in full the whole amount so due
and unpaid upon the Securities of such series, then to the payment of such
principal, interest, Additional Amounts or Yield to Maturity, without
preference or priority of principal over interest, Additional Amounts or Yield
to Maturity, or of interest, Additional Amounts or Yield to Maturity over
principal, or of any installment of interest over any other installment of
interest, or of any Security of such series over any other Security of such
series, ratably to the aggregate of such principal, accrued and unpaid
interest, Additional Amounts or Yield to Maturity; and

 

FOURTH: 
To the payment of the remainder, if any, to the Issuer or as a court of
competent jurisdiction shall direct in writing.

 

Section 5.4             Suits for Enforcement.  In case an Event of Default has occurred, has
not been waived and is continuing, the Trustee may in its discretion proceed to
protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as the Trustee shall deem necessary to protect
and enforce any of such rights, either at law or in equity or in bankruptcy or
otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted in
this Indenture or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.

 

Section 5.5             Restoration of Rights on Abandonment
of Proceedings.  In case the Trustee
shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned for any reason, or shall
have been determined adversely to the Trustee, then and in every such case the
Issuer and the Trustee shall be restored respectively to their former positions
and rights hereunder, and all rights, remedies and powers of the Issuer, the
Trustee and the Securityholders shall continue as though no such proceedings
had been taken.

 

Section 5.6             Limitations on Suits by Securityholders.  No Holder of any Security of any series or of
any Coupon appertaining thereto shall have any right by virtue or by availing
of any provision of this Indenture to institute any action or proceeding at law
or in equity or in bankruptcy or otherwise upon or under or with respect to
this Indenture, or for the appointment of a trustee, receiver, liquidator,
custodian or other similar official or for any other remedy hereunder, unless
such Holder previously shall have given to the Trustee written notice of
default and of the continuance thereof, as hereinbefore provided, and unless
also the Holders of not less than 33% in aggregate principal amount of the
Securities of each affected series then Outstanding (treated as a single class)
shall have made written request upon the Trustee to institute such action or
proceedings in its own name as trustee hereunder and shall have offered to the
Trustee such indemnity reasonably satisfactory to it against the costs,
expenses and liabilities to be incurred therein or thereby and the Trustee for
60 days after its receipt of such notice, request and offer of indemnity shall
have failed to institute any such action or proceeding and no direction
inconsistent with such written request shall have been given to the Trustee
pursuant to Section 5.9; it being understood and intended, and being expressly
covenanted by the taker and Holder of every Security or Coupon with every other
taker and Holder and the Trustee, that no one or more Holders of Securities of
any series or Coupons appertaining to such Securities shall have any right in
any manner whatever by virtue or by availing of any provision of this Indenture
to affect, disturb or prejudice the rights of any other such Holder of
Securities or Coupons appertaining to such Securities, or to obtain or seek to
obtain priority over or preference to any other such Holder or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal, ratable and common benefit of all Holders of Securities of the
applicable series and Coupons appertaining to such Securities.  For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

 

27

 

Section 5.7             Unconditional Right of Securityholders
to Institute Certain Suits. 
Notwithstanding any other provision in this Indenture and any provision
of any Security, the right of any Holder of any Security or Coupon to receive
payment of the principal of and interest on such Security or Coupon on or after
the respective due dates expressed in such Security or Coupon, or to institute
suit for the enforcement of any such payment on or after such respective dates,
shall not be impaired or affected without the consent of such Holder.

 

Section 5.8             Powers and Remedies Cumulative;
Delay or Omission Not Waiver of Default. 
Except as provided in Section 5.6, no right or remedy herein conferred
upon or reserved to the Trustee or to the Holders of Securities or Coupons is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

 

No delay or omission of the Trustee or of any
Holder of Securities or Coupons to exercise any right or power accruing upon
any Event of Default occurring and continuing as aforesaid shall impair any
such right or power or shall be construed to be a waiver of any such Event of
Default or an acquiescence therein; and, subject to Section 5.6, every power and
remedy given by this Indenture or by law to the Trustee or to the Holders of
Securities or Coupons may be exercised from time to time, and as often as shall
be deemed expedient, by the Trustee or by the Holders of Securities or Coupons.

 

Section 5.9             Control by Holders of Securities.  The Holders of a majority in aggregate
principal amount of the Securities of each series affected (with all such
series voting as a single class) at the time Outstanding shall have the right
to direct the time, method, and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee with respect to the Securities of such series by this Indenture;
provided that such direction shall not be otherwise than in accordance with law
and the provisions of this Indenture; provided further that (subject to the
provisions of Section 6.1) the Trustee shall have the right to decline to
follow any such direction if the Trustee, being advised by counsel, shall
determine that the action or proceeding so directed may not lawfully be taken
or if the Trustee in good faith by its board of directors, the executive
committee, or a trust committee of directors or Responsible Officers of the
Trustee shall determine that the action or proceedings so directed would
involve the Trustee in personal liability or if the Trustee in good faith shall
so determine that the actions or forbearances specified in or pursuant to such
direction would be unduly prejudicial to the interests of Holders of the
Securities of all series so affected not joining in the giving of said
direction, it being understood that (subject to Section 6.1) the Trustee shall
have no duty to ascertain whether or not such actions or forbearances are
unduly prejudicial to such Holders.

 

Nothing in this Indenture shall impair the
right of the Trustee in its discretion to take any action deemed proper by the
Trustee and which is not inconsistent with such direction or directions by
Securityholders.

 

Section 5.10           Waiver of Past Defaults.  Prior to the acceleration of the maturity of
any Securities as provided in Section 5.1, the Holders of a majority in
aggregate principal amount of the Securities of all series at the time
Outstanding with respect to which an Event of Default shall have occurred and
be continuing, may (voting as a single class) on behalf of the Holders of all
such Securities waive any past default or Event of Default described in Section
5.1 and its consequences, except a default in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder of
each Security affected.  In the case of
any such waiver, the Issuer, the Trustee and the Holders of all such Securities
shall be restored to their former positions and rights hereunder, respectively;
but no such waiver shall extend to any subsequent or other default or impair
any right consequent thereon.

 

Upon any such waiver, such default shall
cease to exist and be deemed to have been cured and not to have occurred, and any
Event of Default arising therefrom shall be deemed to have been cured, and not
to have occurred for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other default or Event of Default or impair any
right consequent thereon.

 

28

 

Section 5.11           Trustee to Give Notice of Default,
but May Withhold in Certain Circumstances. 
The Trustee shall, within ninety days after the occurrence of a default
with respect to the Securities of any series, give notice of all defaults with
respect to that series actually known to a Responsible Officer of the Trustee
(1) if any Unregistered Securities of that series are then Outstanding, to the
Holders thereof, by publication at least once in an Authorized Newspaper in the
Borough of Manhattan, The City of New York and at least once in an Authorized
Newspaper in London and (2) to all Holders of Securities of such series in the
manner and to the extent provided in Section 313(c) of the Trust Indenture Act
of 1939, unless in each case such defaults shall have been cured before the
mailing or publication of such notice (the term “defaults” for the purpose of
this Section being hereby defined to mean any event or condition which is, or
with notice or lapse of time or both would become, an Event of Default);
provided that, except in the case of default in the payment of the principal of
or interest or Additional Amounts on any of the Securities of such series, or
in the payment of any sinking fund installment on such series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee, or a trust committee of directors or
trustees and/or Responsible Officers of the Trustee in good faith determines
that the withholding of such notice is in the interests of the Securityholders
of such series.

 

Section 5.12           Right of Court to Require Filing of
Undertaking to Pay Costs. 
All parties to this Indenture agree, and each Holder of any Security or
Coupon by his or her 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 and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Securityholder or
group of Securityholders of any series holding in the aggregate more than 10%
in aggregate principal amount of the Securities of such series, or, in the case
of any suit relating to or arising under clause (4) or (8) of Section 5.1 (if
the suit relates to Securities of more than one but less than all series), 10%
in aggregate principal amount of Securities then Outstanding and affected
thereby, or in the case of any suit relating to or arising under clause (4) or
(8) (if the suit under clause (4) or (8) relates to all the Securities then
Outstanding), (5), (6) or (7) of Section 5.1, 10% in aggregate principal amount
of all Securities then Outstanding, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of or
interest or Additional Amounts on any Security on or after the due date
expressed in such Security or any date fixed for redemption.

 

ARTICLE VI

 

CONCERNING THE
TRUSTEE

 

Section 6.1             Duties and Responsibilities of the
Trustee; During Default; Prior to Default.

 

(1)           With respect to the Holders of any series of
Securities issued hereunder, the Trustee, prior to the occurrence of an Event
of Default with respect to the Securities of a particular series and after the
curing or waiving of all Events of Default which may have occurred with respect
to such series, undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture. 
In case an Event of Default with respect to the Securities of a series
has occurred (which has not been cured or waived), the Trustee shall exercise
with respect to such series of Securities such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of his or her own affairs.

 

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

 

29

 

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

 

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

 

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

 

(b)           the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer or Responsible Officers of
the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

 

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

 

(d)           the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders pursuant to Section 5.9 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.

 

(e)           the Trustee shall not be required to take notice, and
shall not be deemed to have notice, of any default or Event of Default
hereunder, except Events of Default described in paragraphs (1), (2) and (3) of
Section 5.1 hereof, unless a Responsible Officer of the Trustee shall be
notified specifically of the default or Event of Default on a written
instrument or document delivered to it at its notice address by the Issuer or
by the Holders of at least 10% of the aggregate principal amount of Securities
then outstanding.  In the absence of delivery
of notice satisfying those requirements, the Trustee may assume conclusively
that there is no default or Event of Default, except as noted.

 

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

 

The provisions of this Section 6.1 are in
furtherance of and subject to Section 315 of the Trust Indenture Act of 1939.

 

Section 6.2             Certain Rights of the Trustee.  In furtherance of and subject to the Trust
Indenture Act of 1939, and subject to Section 6.1:

 

(1)           the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, and shall
be protected in acting or refraining from acting upon any resolution, Officer’s
Certificate or any other certificate, statement, instrument, opinion, report,

 

30

 

notice, request, consent, order, bond,
debenture, note, coupon, security or other paper or document believed by it to
be genuine and to have been signed or presented by the proper party or parties;

 

(2)           any request, direction, order or demand of the Issuer
mentioned herein shall be sufficiently evidenced by an Officer’s Certificate
(unless other evidence in respect thereof be herein specifically prescribed);
and any resolution of the Board of Directors may be evidenced to the Trustee by
a copy thereof certified by the secretary or an assistant secretary of the
Issuer;

 

(3)           the Trustee may consult with legal counsel of its
choice or other experts, and the advice of such experts within the scope of
such expert’s area of expertise or opinion of counsel with respect to legal
matters shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted to be taken by it hereunder in good faith
and in accordance with such advice or opinion.

 

(4)           the Trustee shall be under no obligation to exercise
any of the trusts or powers vested in it by this Indenture at the request,
order or direction of any of the Securityholders pursuant to the provisions of
this Indenture, unless such Securityholders shall have offered to the Trustee
security or indemnity reasonably satisfactory to it against the costs, expenses
and liabilities which might be incurred therein or thereby;

 

(5)           prior to the occurrence of an Event of Default
hereunder and after the curing or waiving of all Events of Default, 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, consent, order, approval, appraisal, bond, debenture, note, coupon,
security, or other paper or document unless requested in writing so to do by
the Holders of not less than a majority in aggregate principal amount of the
Securities of all series affected by such Event of Default and then
Outstanding; provided that, if the payment within a reasonable time to the
Trustee of the costs, expenses or liabilities likely to be incurred by it in
the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by the terms
of this Indenture, the Trustee may require indemnity satisfactory to it against
such expenses or liabilities as a condition to proceeding; the reasonable
expenses of every such investigation shall be paid by the Issuer or, if paid by
the Trustee or any predecessor Trustee, shall be repaid by the Issuer upon
demand;

 

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

 

(7)           the rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and each agent, custodian and other Person
employed to act hereunder;

 

(8)           the Trustee may request that the Issuer deliver a
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Certificate may be signed by any person authorized to sign an Officer’s
Certificate, including any person specified as so authorized in any such
certificate previously delivered and not superseded;

 

(9)           the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Issuer, at a time
reasonably determined by the Issuer, personally or by agent or attorney at the
sole cost of the Issuer and shall incur no liability or additional liability of
any kind by reason of such inquiry or investigation; and

 

31

 

(10)         in no event shall the Trustee be responsible or liable
for special, indirect, or consequential loss or damage of any kind whatsoever
(including, but not limited to, loss of profit) irrespective of whether the
Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

 

Section 6.3             Trustee Not Responsible for Recitals,
Disposition of Securities or Application of Proceeds Thereof.  The recitals contained herein and in the
Securities, except the Trustee’s certificates of authentication, shall be taken
as the statements of the Issuer, and the Trustee assumes no responsibility for
the correctness of the same.  The Trustee
makes no representation as to the validity or sufficiency of this Indenture or
of any Securities or Coupons.  The
Trustee shall not be accountable for the use or application by the Issuer of
any of the Securities or of the proceeds thereof.

 

Section 6.4             Trustee and Agents May Hold Securities
or Coupons; Collections, Etc.  The
Trustee or any agent of the Issuer or the Trustee, in its individual or any
other capacity, may become the owner or pledgee of Securities or Coupons with
the same rights it would have if it were not the Trustee or such agent and may
otherwise deal with the Issuer and receive, collect, hold and retain
collections from the Issuer with the same rights it would have if it were not
the Trustee or such agent.

 

Section 6.5             Moneys Held by Trustee.  Subject to the provisions of Section 3.3
hereof, all moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were
received, but need not be segregated from other funds except to the extent
required by mandatory provisions of law. 
Neither the Trustee nor any agent of the Issuer or the Trustee shall be
under any liability for interest on any moneys received by it hereunder.

 

Section 6.6             Compensation and Indemnification
of Trustee and its Prior Claim. 
The Issuer covenants and agrees to pay to the Trustee from time to time,
and the Trustee shall be entitled to, such compensation as shall be agreed in
writing between the Issuer and the Trustee from time to time (which shall not
be limited by any provision of law in regard to the compensation of a trustee
of an express trust) and the Issuer covenants and agrees to pay or reimburse
the Trustee and each predecessor Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by or on behalf of it in
accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel and
of all agents and other persons not regularly in its employ) except any such
expense, disbursement or advance as shall be determined to have been caused by
its own negligence, bad faith or willful misconduct.  The Issuer also covenants to indemnify the
Trustee, each predecessor Trustee and their respective directors, officers,
employees, and agents (the “indemnitees”) for, and to hold the indemnitees
harmless against, any and all loss, liability, claim, damage, penalty, fine or
expense, including taxes and reasonable out-of-pocket expenses, reasonable
incidental expenses and reasonable legal fees and expenses incurred without
negligence, bad faith or willful misconduct on the indemnitees’ part, arising
out of or in connection with the acceptance or administration of this Indenture
or the trusts hereunder and the indemnitees’ duties hereunder, including the
costs and expenses of defending themselves against or investigating any claim,
whether asserted by the Issuer or any Holder or any other Person, or liability
in connection with the exercise or performance of the indemnitees’ duties or
obligations hereunder.  The obligations
of the Issuer under this Section to compensate and indemnify the indemnitees
and to pay or reimburse the indemnitees for expenses, disbursements and
advances shall constitute additional indebtedness hereunder and shall survive
the satisfaction and discharge of this Indenture and the resignation or removal
of the Trustee in accordance with Section 6.10 herein.  Such additional indebtedness shall be a
senior claim to that of the Securities upon all property and funds held or collected
by the Trustee as such, except funds held in trust for the benefit of the
Holders of particular Securities or Coupons, and the Securities are hereby
subordinated to such senior claim.

 

The Trustee shall have a lien prior to the
Securities as to all property and funds held by it hereunder for any amount
owing it or any predecessor Trustee pursuant to this Section 6.6, except with
respect to funds held in trust for the benefit of the Holders of particular
Securities.

 

When the
Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 5.1(5) or Section 5.1(6), the expenses (including
the reasonable charges and expenses of its

 

32

 

counsel) and
the compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

 

The provisions
of this section shall survive the termination of this Indenture.

 

Section 6.7             Right of Trustee to Rely on Officer’s
Certificate, Etc.  Subject to
Sections 6.1 and 6.2, whenever in the administration of the trusts of this
Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence, bad faith or
willful misconduct on the part of the Trustee, be deemed to be conclusively proved
and established by an Officer’s Certificate delivered to the Trustee, and such
certificate, in the absence of negligence, bad faith or willful misconduct on
the part of the Trustee, shall be full warrant to the Trustee for any action
taken, suffered or omitted by it under the provisions of this Indenture upon
the faith thereof.

 

Section 6.8             Indentures Not Creating Potential
Conflicting Interests for the Trustee. 
The following indentures are hereby specifically described for the
purposes of Section 310(b)(1) of the Trust Indenture Act of 1939: this
Indenture with respect to the Securities of any series.

 

Section 6.9             Persons Eligible for Appointment
as Trustee.  The Trustee for each
series of Securities hereunder shall at all times be a corporation or banking
association organized and doing business under the laws of the United States of
America or of any State or the District of Columbia having a combined capital
and surplus of at least $50,000,000, and which is authorized under such laws to
exercise corporate trust powers and is subject to supervision or examination by
Federal, State or District of Columbia authority.  Such corporation or banking association shall
have a place of business or an affiliate with a place of business in the
Borough of Manhattan, The City of New York if there be such a corporation or
association in such location willing to act upon reasonable and customary terms
and conditions.  If such corporation or
association publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.  In case at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section, the Trustee
shall resign immediately in the manner and with the effect specified in Section
6.10.

 

The provisions of this Section 6.9 are in
furtherance of and subject to Section 310(a) of the Trust Indenture Act of
1939.

 

Section 6.10           Resignation and Removal; Appointment
of Successor Trustee.

 

(1)           The Trustee, or any trustee or trustees hereafter appointed,
may at any time resign with respect to one or more or all series of Securities
by giving written notice of resignation to the Issuer and (a) if any
Unregistered Securities of a series affected are then Outstanding, by giving
notice of such resignation to the Holders thereof, by publication, at the
Issuer’s expense, at least once in an Authorized Newspaper in the Borough of
Manhattan, The City of New York, and at least once in an Authorized Newspaper
in London, (b) if any Unregistered Securities of a series affected are then
Outstanding, by mailing notice of such resignation to the Holders thereof who
have filed their names and addresses with the Trustee pursuant to Section
313(c)(2) of the Trust Indenture Act of 1939 at such addresses as were so furnished
to the Trustee and (c) by mailing notice of such resignation to the Holders of
then Outstanding Registered Securities of each series affected at their
addresses as they shall appear on the registry books.  Upon receiving such notice of resignation, the
Issuer shall promptly appoint a successor Trustee or Trustees with respect to
the applicable series by written instrument in duplicate, executed by authority
of the Board of Directors, one copy of which instrument shall be delivered to
the resigning Trustee and one copy to the successor Trustee or Trustees.  If no successor Trustee shall have been so
appointed with respect to any series and have accepted appointment within 30
days after the mailing of

 

33

 

such notice of resignation, the resigning
Trustee may, at the Issuer’s expense, petition any court of competent
jurisdiction for the appointment of a successor Trustee, or any Securityholder
who has been a bona fide Holder of a Security or Securities of the applicable
series for at least six months may, subject to the provisions of Section 5.12,
on behalf of himself or herself and all others similarly situated, petition any
such court for the appointment of a successor Trustee.  Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, appoint a successor Trustee.

 

(2)           In case at any time any of the following shall occur:

 

(a)           the Trustee shall fail to comply with the provisions
of Section 310(b) of the Trust Indenture Act of 1939 with respect to any series
of Securities after written request therefor by the Issuer or by any
Securityholder who has been a bona fide Holder of a Security or Securities of
such series for at least six months; or

 

(b)           the Trustee shall cease to be eligible in accordance
with the provisions of Section 6.9 and Section 310(a) of the Trust Indenture
Act of 1939 and shall fail to resign after written request therefor by the
Issuer or by any Securityholder; or

 

(c)           the Trustee shall become incapable of acting with
respect to any series of Securities, or shall be adjudged bankrupt or
insolvent, or a receiver or liquidator of the Trustee or of its property shall
be appointed, or any public officer shall take charge or control of the Trustee
or of its property or affairs for the purpose of rehabilitation, conservation
or liquidation;

 

then, in any such case, the Issuer may remove
the Trustee with respect to the applicable series of Securities and appoint a
successor Trustee for such series by written instrument, in duplicate, executed
by order of the Board of Directors of the Issuer, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor
Trustee, or, subject to the provisions of Section 315(e) of the Trust Indenture
Act of 1939, any Securityholder who has been a bona fide Holder of a Security
or Securities of such series for at least six months may on behalf of himself
or herself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee with respect to such series. 
Such court may thereupon, after such notice, if any, as it may deem
proper, remove the Trustee and appoint a successor Trustee.

 

(3)           The Holders of a majority in aggregate principal
amount of the Securities of each series at the time Outstanding may at any time
remove the Trustee with respect to Securities of such series and appoint a
successor Trustee with respect to the Securities of such series by delivering to
the Trustee so removed, to the successor Trustee so appointed and to the Issuer
the evidence provided for in Section 7.1 of the action in that regard taken by
such Securityholders.

 

(4)           Any resignation or removal of the Trustee with respect
to any series and any appointment of a successor Trustee with respect to such
series pursuant to any of the provisions of this Section 6.10 shall become
effective upon acceptance of appointment by the successor Trustee as provided
in Section 6.11.

 

Section 6.11           Acceptance of Appointment by
Successor Trustee.  Any
successor Trustee appointed as provided in Section 6.10 shall execute and
deliver to the Issuer and to its predecessor Trustee an instrument accepting
such appointment hereunder, and thereupon the resignation or removal of the
predecessor Trustee with respect to all or any applicable series shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all rights, powers, duties and obligations
with respect to such series of its predecessor hereunder, with like effect as
if originally named as Trustee for such series hereunder; but, nevertheless, on
the written request of the Issuer or of the successor Trustee, upon payment of
its charges then unpaid, the Trustee ceasing to act shall, subject to Section
3.3, pay over to the successor Trustee all moneys at the time held by it
hereunder and shall execute and deliver an instrument transferring to such
successor trustee all such rights, powers, duties and obligations.  Upon request of any such successor Trustee,
the Issuer shall execute any and all instruments in writing for more fully and
certainly vesting in and confirming to such successor Trustee all

 

34

 

such rights and powers.  Any Trustee ceasing to act shall,
nevertheless, retain a prior claim upon all property or funds held or collected
by such Trustee to secure any amounts then due it pursuant to the provisions of
Section 6.6.

 

If a successor Trustee is appointed with
respect to the Securities of one or more (but not all) series, the Issuer, the
predecessor Trustee and each successor Trustee with respect to the Securities
of any applicable series shall execute and deliver an indenture supplemental
hereto which shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
predecessor Trustee with respect to the Securities of any series as to which
the predecessor Trustee is not retiring shall continue to be vested in the
predecessor Trustee, and shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be Trustee of a
trust or trusts under separate indentures.

 

No successor Trustee with respect to any
series of Securities shall accept appointment as provided in this Section 6.11
unless at the time of such acceptance such successor Trustee shall be qualified
under Section 310(b) of the Trust Indenture Act of 1939 and eligible under the
provisions of Section 6.9.

 

Upon acceptance of appointment by any
successor Trustee as provided in this Section 6.11, the Issuer shall give
notice thereof (1) if any Unregistered Securities of a series affected are then
Outstanding, to the Holders thereof, by publication of such notice at least
once in an Authorized Newspaper in the Borough of Manhattan, The City of New
York, and at least once in an Authorized Newspaper in London and (2) if any
Unregistered Securities of a series affected are then Outstanding, to the Holders
thereof who have filed their names and addresses with the Trustee pursuant to
Section 313(c)(2) of the Trust Indenture Act of 1939, by mailing such notice to
such Holders at such addresses as were so furnished to the Trustee (and the
Trustee shall make such information available to the Issuer for such purpose)
and (3) if any Registered Securities of a series affected are then Outstanding,
to the Holders thereof, by mailing such notice to such Holders at their
addresses as they shall appear on the registry books.  If the acceptance of appointment is
substantially contemporaneous with the resignation, then the notice called for
by the preceding sentence may be combined with the notice called for by Section
6.10.  If the Issuer fails to give such
notice within ten days after acceptance of appointment by the successor
Trustee, the successor Trustee shall cause such notice to be given at the
expense of the Issuer.

 

Section 6.12           Merger,
Amalgamation, Conversion, Consolidation
or Succession to Business of Trustee. 
Any corporation or national banking association into which the Trustee
may be merged or amalgamated or converted or with which it may be consolidated,
or any corporation or national banking association resulting from any merger,
amalgamation, conversion or consolidation to which the Trustee shall be a
party, or any corporation or national banking association succeeding to all or
substantially all the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided that such corporation or national
banking association shall be qualified under Section 310(b) of the Trust
Indenture Act of 1939 and eligible under the provisions of Section 6.9, without
the execution or filing of any paper or any further act on the part of any of
the parties hereto, anything herein to the contrary notwithstanding.

 

In case at the time such successor to the
Trustee shall succeed to the trusts created by this Indenture any of the
Securities of any series shall have been authenticated but not delivered, any
such successor to the Trustee may adopt the certificate of authentication of
any predecessor Trustee and deliver such Securities so authenticated; and, in
case at that time any of the Securities of any series shall not have been
authenticated, any successor to the Trustee may authenticate such Securities
either in the name of any predecessor hereunder or in the name of the successor
Trustee; and in all such cases such certificate shall have the full force which
it is anywhere in the Securities of such series or in this Indenture provided
that the certificate of the Trustee shall have; provided, that the right to
adopt the certificate of authentication of any predecessor Trustee or to
authenticate Securities of any series in the name of any predecessor Trustee
shall apply only to its successor or successors by merger, amalgamation,
conversion or consolidation.

 

35

 

Section 6.13           Preferential Collection of Claims
Against the Issuer.  The Trustee
shall comply with Section 311(a) of the Trust Indenture Act of 1939, excluding
any creditor relationship listed in Section 311(b) of the Trust Indenture Act
of 1939.  A Trustee who has resigned or
been removed shall be subject to Section 311(a) of the Trust Indenture Act of
1939 to the extent indicated therein.

 

Section 6.14           Appointment of Authenticating Agent.  As long as any Securities of a series remain
Outstanding, the Trustee may, by an instrument in writing, appoint with the
approval of the Issuer an authenticating agent (the “Authenticating Agent”)
which shall be authorized to act on behalf of the Trustee to authenticate
Securities, including Securities issued upon exchange, registration of
transfer, partial redemption or pursuant to Section 2.9.  Securities of each such series authenticated
by such Authenticating Agent shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee.  Whenever
reference is made in this Indenture to the authentication and delivery of
Securities of any series by the Trustee or to the Trustee’s Certificate of
Authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent for such series
and a Certificate of Authentication executed on behalf of the Trustee by such
Authenticating Agent.  Such
Authenticating Agent shall at all times be a corporation organized and doing
business under the laws of the United States of America or of any State,
authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $50,000,000 (determined as provided in
Section 6.9 with respect to the Trustee) and subject to supervision or
examination by Federal or State authority.

 

Any corporation into which any Authenticating
Agent may be merged, amalgamated or converted, or with which it may be
consolidated, or any corporation resulting from any merger, amalgamation or
conversion or consolidation to which any Authenticating Agent shall be a party,
or any corporation succeeding to all or substantially all of the corporate
agency business of any Authenticating Agent, shall continue to be the
Authenticating Agent with respect to all series of Securities for which it served
as Authenticating Agent without the execution or filing of any paper or any
further act on the part of the Trustee or such Authenticating Agent.  The Trustee may at any time terminate the
Authenticating Agent.  Any Authenticating
Agent may at any time, and if it shall cease to be eligible shall, resign by
giving written notice of resignation to the Trustee and to the Issuer.

 

Upon receiving such a notice of resignation
or upon such a termination, or in case at any time any Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section
6.14 with respect to one or more series of Securities, the Trustee shall upon
receipt of an Issuer Order appoint a successor Authenticating Agent and the
Issuer shall provide notice of such appointment to all Holders of Securities of
such series in the manner and to the extent provided in Section 11.4.  Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all rights,
powers, duties and responsibilities of its predecessor hereunder, with like
effect as if originally named as Authenticating Agent.  The Issuer agrees to pay to the
Authenticating Agent for such series from time to time reasonable compensation.  The Authenticating Agent for the Securities
of any series shall have no responsibility or liability for any action taken by
it as such at the direction of the Trustee.

 

Sections 6.2, 6.3, 6.4, 6.6 and 7.3 shall be
applicable to any Authenticating Agent.

 

ARTICLE VII

 

CONCERNING THE
SECURITYHOLDERS

 

Section 7.1             Evidence of Action Taken by
Securityholders.  Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by a specified percentage in
principal amount of the Securityholders of any or all series may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such specified percentage of Securityholders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee.  Proof of execution of
any instrument or of a writing appointing

 

36

 

any such agent shall be
sufficient for any purpose of this Indenture and (subject to Sections 6.1 and
6.2) conclusive in favor of the Trustee and the Issuer, if made in the manner
provided in this Article.

 

Section 7.2             Proof of Execution of Instruments
and of Holding of Securities. 
Subject to Sections 6.1 and 6.2, the execution of any instrument by a
Securityholder or his or her agent or proxy may be proved in the following
manner:

 

(1)           The fact and date of the execution by any Holder of
any instrument may be proved by the certificate of any notary public or other
officer of any jurisdiction authorized to take acknowledgments of deeds or
administer oaths that the person executing such instruments acknowledged to him
or her the execution thereof, or by an affidavit of a witness to such execution
sworn to before any such notary or other such officer.  Where such execution is by or on behalf of
any legal entity other than an individual, such certificate or affidavit shall
also constitute sufficient proof of the authority of the person executing the
same.

 

(2)           The fact of the holding by any Holder of an
Unregistered Security of any series, and the identifying number of such
Security and the date of his or her holding the same, may be proved by the
production of such Security or by a certificate executed by any trust company,
bank, banker or recognized securities dealer wherever situated satisfactory to
the Trustee, if such certificate shall be deemed by the Trustee to be
satisfactory.  Each such certificate
shall be dated and shall state that on the date thereof a Security of such
series bearing a specified identifying number was deposited with or exhibited
to such trust company, bank, banker or recognized securities dealer by the
person named in such certificate.  Any
such certificate may be issued in respect of one or more Unregistered
Securities of one or more series specified therein.  The holding by the person named in any such
certificate of any Unregistered Securities of any series specified therein
shall be presumed to continue for a period of one year from the date of such
certificate unless at the time of any determination of such holding (a) another
certificate bearing a later date issued in respect of the same Securities shall
be produced, or (b) the Securities of such series specified in such certificate
shall be produced by some other person, or (c) the Securities of such series
specified in such certificate shall have ceased to be Outstanding.  Subject to Sections 6.1 and 6.2, the fact and
date of the execution of any such instrument and the amount and numbers of
Securities of any series held by the person so executing such instrument and
the amount and numbers of any Security or Securities for such series may also
be proven in accordance with such reasonable rules and regulations as may be
prescribed by the Trustee for such series or in any other manner which the
Trustee for such series may deem sufficient.

 

(3)           In the case of Registered Securities, the ownership of
such Securities shall be proved by the Security register or by a certificate of
the Security registrar.

 

The Issuer may set a record date for purposes
of determining the identity of Holders of Registered Securities of any series
entitled to vote or consent to any action referred to in Section 7.1, which record
date may be set at any time or from time to time by notice to the Trustee, for
any date or dates (in the case of any adjournment or reconsideration) not more
than 60 days nor less than five days prior to the proposed date of such vote or
consent, and thereafter, notwithstanding any other provisions hereof, with
respect to Registered Securities of any series, only Holders of Registered
Securities of such series of record on such record date shall be entitled to so
vote or give such consent or revoke such vote or consent.

 

Section 7.3             Holders to Be Treated as Owners.  The Issuer, the Trustee and any agent of the
Issuer or the Trustee may deem and treat the person in whose name any Security
shall be registered upon the Security register for such series as the absolute
owner of such Security (whether or not such Security shall be overdue and
notwithstanding any notation of ownership or other writing thereon) for the
purpose of receiving payment of or on account of the principal of and, subject
to the provisions of this Indenture, interest on such Security and for all
other purposes; and neither the Issuer nor the Trustee nor any agent of the
Issuer or the Trustee shall be affected by any notice to the contrary.  The Issuer, the Trustee and any agent of the Issuer
or the Trustee may treat the Holder of any Unregistered Security and the Holder
of any Coupon as the absolute owner of such Unregistered Security or Coupon
(whether or not such Unregistered Security or Coupon shall be overdue) for the
purpose of receiving payment thereof or on

 

37

 

account thereof and for all
other purposes and neither the Issuer, the Trustee, nor any agent of the Issuer
or the Trustee shall be affected by any notice to the contrary.  All such payments so made to any such person,
or upon his or her order, shall be valid, and, to the extent of the sum or sums
so paid, effectual to satisfy and discharge the liability for moneys payable
upon any such Unregistered Security or Coupon.

 

Section 7.4             Securities Owned by Issuer Deemed
Not Outstanding.  In determining
whether the Holders of the requisite aggregate principal amount of Outstanding
Securities of any or all series have concurred in any direction, consent or
waiver under this Indenture, Securities which are owned by the Issuer or any
other obligor on the Securities with respect to which such determination is
being made or by any person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Issuer or any other obligor
on the Securities with respect to which such determination is being made shall
be disregarded and deemed not to be Outstanding for the purpose of any such
determination, except that for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, consent or waiver only
Securities which a Responsible Officer of the Trustee actually knows are so
owned shall be so disregarded. 
Securities so owned which have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee
the pledgee’s right so to act with respect to such Securities and that the
pledgee is not the Issuer or any other obligor upon the Securities or any
person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Issuer or any other obligor on the
Securities.  In case of a dispute as to
such right, the advice of counsel shall be full protection in respect of any
decision made by the Trustee in accordance with such advice.  Upon request of the Trustee, the Issuer shall
furnish to the Trustee promptly an Officer’s Certificate listing and
identifying all Securities, if any, known by the Issuer to be owned or held by
or for the account of any of the above-described Persons; and, subject to
Sections 6.1 and 6.2, the Trustee shall be entitled to accept such Officer’s
Certificate as conclusive evidence of the facts therein set forth and of the
fact that all Securities not listed therein are Outstanding for the purpose of
any such determination.

 

Section 7.5             Right of Revocation of Action Taken.  At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 7.1, of the taking of any
action by the Holders of the percentage in aggregate principal amount of the
Securities of any or all series, as the case may be, specified in this
Indenture in connection with such action, any Holder of a Security the serial
number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action
may, by filing written notice at the Corporate Trust Office and upon proof of
holding as provided in this Article, revoke such action so far as concerns such
Security.  Except as aforesaid any such
action taken by the Holder of any Security shall be conclusive and binding upon
such Holder and upon all future Holders and owners of such Security and of any
Securities issued in exchange or substitution therefor or on registration of
transfer thereof, irrespective of whether or not any notation in regard thereto
is made upon any such Security.  Any
action taken by the Holders of the percentage in aggregate principal amount of
the Securities of any or all series, as the case may be, specified in this
Indenture in connection with such action shall be conclusively binding upon the
Issuer, the Trustee and the Holders of all the Securities affected by such
action.

 

ARTICLE VIII

 

SUPPLEMENTAL
INDENTURES

 

Section 8.1             Supplemental Indentures Without
Consent of Securityholders.

 

(1)           In addition to any supplemental indenture otherwise
authorized by this Indenture, the Issuer, when authorized by a resolution of
its Board of Directors (which resolution may provide general terms or parameters
for such action and may provide that the specific terms of such action may be
determined in accordance with or pursuant to an Issuer Order), and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto, which comply with the Trust Indenture Act of 1939, as then
in effect, without the consent of the Holders, for one or more of the following
purposes:

 

38

 

(a)           to convey, transfer, assign, mortgage or pledge to the
Trustee as security for the Securities of one or more series any property or
assets;

 

(b)           to evidence the succession of another Person to the
Issuer, or successive successions, and the assumption by the successor Person
of the covenants, agreements and obligations of the Issuer pursuant to Article
IX;

 

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

 

(d)           to cure any ambiguity or to correct or supplement any
provision contained herein or in any supplemental indenture which may be
defective or inconsistent with any other provision contained herein or in any
supplemental indenture, or to make any other provisions as the Issuer may deem
necessary or desirable, provided that no such action shall materially adversely
affect the interests of the Holders of the Securities or Coupons;

 

(e)           to establish the forms or terms of Securities of any
series or of the Coupons appertaining to such Securities as permitted by
Sections 2.1 and 2.3;

 

(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, pursuant to the requirements
of Section 6.11; and

 

(g)           to make any other changes that do not materially
adversely affect holders of the affected Securities.

 

(2)           The Trustee is hereby authorized to join with the
Issuer in the execution of any such supplemental indenture, to make any further
appropriate agreements and stipulations which may be therein contained and to
accept the conveyance, transfer, assignment, mortgage or pledge of any property
thereunder, but the Trustee shall not be obligated to enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

 

(3)           Any supplemental indenture authorized by the
provisions of this Section may be executed without the consent of the Holders
of any of the Securities at the time outstanding, notwithstanding any of the
provisions of Section 8.2.

 

Section 8.2             Supplemental Indentures With Consent
of Securityholders.

 

(1)           With the consent (evidenced as provided in Article
VII) of the Holders of not less than a majority in aggregate principal amount
of the Securities at the time Outstanding of all series affected by such
supplemental indenture, the Issuer, when authorized by a resolution of its
Board of Directors (which resolution may provide general terms or parameters
for such action and may provide that the specific terms of such action may be
determined in accordance with or pursuant to an Issuer Order), and the Trustee
may, from time to time and at any time, enter into an indenture or indentures
supplemental hereto, which comply with the Trust Indenture Act of 1939, as then
in effect, for the purpose of adding any

 

39

 

provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the
Securities of each such series or of the Coupons appertaining to such
Securities; provided, that no such supplemental indenture shall (a) extend the
final maturity of any then issued Security, or reduce the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon
or reduce any amount payable on redemption thereof, or make the principal
thereof (including any amount in respect of original issue discount), or
interest thereon or Additional Amounts payable in any coin or currency other
than that provided in such Securities and any Coupons thereon or in accordance
with the terms thereof, or reduce the amount of the principal of a then issued
Original Issue Discount Security that would be due and payable upon an
acceleration of the maturity thereof pursuant to Section 5.1 or the amount
thereof provable in bankruptcy pursuant to Section 5.2, or impair or affect the
right of any Securityholder to institute suit for the payment thereof or, if
such Securities provide therefor, any right of repayment at the option of the
Securityholder, in each case without the consent of the Holder of each Security
so affected, or (b) reduce the percentage in principal amount of then issued
Securities of any series, the consent of the Holders of which is required for
any such supplemental indenture, without the consent of the Holders of each
Security so affected.

 

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

 

(3)           Upon the request of the Issuer, accompanied by a copy
of a resolution of the Board of Directors (which resolution may provide general
terms or parameters for such action and may provide that the specific terms of
such action may be determined in accordance with or pursuant to an Issuer
Order) certified by the secretary or an assistant secretary of the Issuer
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of the Holders of the
Securities as aforesaid and other documents, if any, required by Section 7.1,
the Trustee shall join with the Issuer in the execution of such supplemental
indenture unless such supplemental indenture affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into such
supplemental indenture.

 

(4)           It shall not be necessary for the consent of the
Securityholders under this Section to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.

 

(5)           Promptly after the execution by the Issuer and the
Trustee of any supplemental indenture pursuant to the provisions of this
Section, the Trustee shall give notice thereof (a) if any Registered Securities
of a series affected thereby are then Outstanding, to the Holders thereof by
mailing a notice thereof by first-class mail to such Holders at their addresses
as they shall appear on the Security register, (b) if any Unregistered
Securities of a series affected thereby are then Outstanding, to the Holders
thereof who have filed their names and addresses with the Trustee pursuant to
Section 313 (c)(2) of the Trust Indenture Act of 1939, by mailing a notice
thereof by first-class mail to such Holders at such addresses as were so
furnished to the Trustee and (c) if any Unregistered Securities of a series
affected thereby are then Outstanding, to all Holders thereof, by publication
of a notice thereof at least once in an Authorized Newspaper in the Borough of
Manhattan, The City of New York, and at least once in an Authorized Newspaper
in London and in each case such notice shall set forth in general terms the
substance of such supplemental indenture. 
Any failure of the Issuer to give such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
supplemental indenture.

 

Section 8.3             Effect of Supplemental Indenture.  Upon the execution of any supplemental
indenture pursuant to the provisions hereof, this Indenture shall be and be
deemed to be modified and amended in accordance therewith and the respective
rights, limitations of rights, obligations, duties and immunities under this
Indenture of the Trustee, the Issuer and the Holders of Securities of each

 

40

 

series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

 

Section 8.4             Documents to Be Given to Trustee.  The Trustee, subject to the provisions of
Sections 6.1 and 6.2, shall be provided with, and shall be fully protected in
relying upon, an Officer’s Certificate and an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant to this Article VIII
is authorized or permitted by the Indenture.

 

Section 8.5             Notation on Securities in Respect of
Supplemental Indentures. 
Securities of any series authenticated and delivered after the execution
of any supplemental indenture pursuant to the provisions of this Article may
bear a notation in form approved by the Trustee for such series as to any
matter provided for by such supplemental indenture or as to any action taken by
Securityholders.  If the Issuer or the
Trustee shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Board of Directors, to any
modification of this Indenture contained in any such supplemental indenture may
be prepared by the Issuer, authenticated by the Trustee and delivered in
exchange for the Securities of such series then Outstanding.

 

Section 8.6             Conformity with Trust Indenture Act
of 1939.  Every supplemental
indenture executed pursuant to this Article shall conform to the requirements
of the Trust Indenture Act of 1939 as then in effect.

 

ARTICLE IX

 

CONSOLIDATION,
MERGER, AMALGAMATION, SALE OR CONVEYANCE

 

Section 9.1             Issuer May Consolidate, Etc., Only on
Certain Terms.  The Issuer shall not
consolidate with or merge or amalgamate into another Person or sell other than
for cash all or substantially all its assets to another Person, or purchase all
or substantially all the assets of another Person, unless:

 

(1)           either the Issuer is the continuing Person, or the
successor Person (if other than the Issuer) expressly assumes by supplemental
indenture the obligations and covenants evidenced by the Indenture and the
Securities (in which case, the Issuer will be discharged therefrom),

 

(2)           if the Issuer is not the continuing Person, the
successor Person shall be a corporation or limited liability company organized
and existing under the laws of the United States of America, any state thereof,
the District of Columbia, Bermuda, the Cayman Islands, Barbados or any country
or state which is a member of the Organization for Economic Cooperation and
Development;

 

(3)           immediately thereafter, the Issuer or the successor
Person (if other than the Issuer) would not be in default in the performance of
any covenant or condition contained herein, and

 

(4)           a specified Officers’ Certificate and an Opinion of
Counsel are delivered to the Trustee, each (a) stating that such transaction
and any supplemental indenture pertaining thereto, comply with Article VIII and
Article IX, respectively, and (b) otherwise complying with Section 11.5.

 

Section 9.2             Successor Substituted for the Issuer.  Upon any consolidation of the Issuer with, or
merger or amalgamation of the Issuer into, any other Person or any conveyance
or transfer of the properties and assets of the Issuer substantially as an
entirety in accordance with Section 9.1, the successor Person formed by such
consolidation or into which the Issuer is merged or amalgamated or to which
such conveyance or transfer is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Issuer under this Indenture with
the same effect as if such successor Person had

 

41

 

been named as the Issuer
herein, and thereafter, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

 

Section 9.3             Restrictions on Certain Dispositions.  As long as any of the Securities remain
Outstanding, the Issuer will not, and will not permit any Restricted Subsidiary
to, issue, sell, assign, transfer or otherwise dispose of, directly or
indirectly, any of the Voting Shares of any Restricted Subsidiary, unless:

 

(1)           the issuance, sale, assignment, transfer or other
disposition is required to comply with the order of a court or regulatory
authority of competent jurisdiction, other than an order issued at the request
of the Issuer or of one of its Restricted Subsidiaries;

 

(2)           all of the Voting Shares of a Restricted Subsidiary
then owned by the Issuer or by its Restricted Subsidiaries is disposed of in a
single transaction or in a series of related transactions, for a consideration
consisting of cash or other property the fair market value of which (as
determined in good faith by the Board of Directors) is at least equal to the
Fair Value of such Voting Shares;

 

(3)           the issuance, sale, assignment, transfer or other
disposition is made to the Issuer or another Restricted Subsidiary; or

 

(4)           after giving effect to the issuance sale, assignment,
transfer or other disposition, the Issuer and its Restricted Subsidiaries would
own directly or indirectly at least 80% of the issued and outstanding Voting
Shares of such Restricted Subsidiary and such issuance, sale, assignment,
transfer or other disposition is made for a consideration consisting of cash or
other property which is at least equal to the Fair Value of such Voting Shares,
as determined in good faith by the Board of Directors.

 

Notwithstanding
the foregoing, the Issuer may merge or consolidate any of its other
Subsidiaries into or with another Person and it may sell, transfer or otherwise
dispose of the assets of any Restricted Subsidiary or the Issuer’s business in
accordance with the provisions of this Indenture. Furthermore, the foregoing
covenant will not prohibit any issuance or disposition of securities by any
other Subsidiary.

 

ARTICLE X

 

SATISFACTION
AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

 

Section 10.1           Termination of Issuer’s Obligations
Under the Indenture.

 

(1)           This Indenture shall upon an Issuer Order cease to be
of further effect with respect to Securities of or within any series and any
Coupons appertaining thereto (except as to any surviving rights of registration
of transfer or exchange of such Securities and replacement of such Securities
which may have been lost, stolen or mutilated as herein expressly provided for)
and the Trustee, at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to such
Securities and any Coupons appertaining thereto when

 

(a)           either

 

(i)            all such Securities previously authenticated and
delivered and all Coupons appertaining thereto (other than (A) such Coupons
appertaining to Unregistered Securities surrendered in exchange for Registered
Securities and maturing after such exchange, surrender of which is not required
or has been waived as provided in Section 2.8, (B) such Securities and Coupons
which have been destroyed, lost or stolen and which have been replaced or paid
as provided in Section 2.9, (C) such Coupons appertaining to Unregistered
Securities called for redemption and maturing after the date fixed for
redemption thereof, surrender of which has been waived as provided in Section 12.3

 

42

 

and
(D) such Securities and Coupons for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Issuer and thereafter
repaid to the Issuer or discharged from such trust as provided in Section 3.3)
have been delivered to the Trustee for cancellation; or

 

(ii)           all Securities of such series and, in the case of (X)
or (Y) below, all Coupons appertaining thereto not theretofore delivered to the
Trustee for cancellation (X) have become due and payable, or (Y) will become
due and payable within one year, or (Z) if redeemable at the option of the
Issuer, 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 Issuer, and the Issuer, in the
case of (X), (Y) or (Z) above, has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount in
the currency or currencies or currency unit or units in which the Securities of
such series are payable, sufficient to pay and discharge the entire
indebtedness on such Securities and such Coupons not theretofore delivered to
the Trustee for cancellation, for principal, premium, if any, and interest and
Additional Amounts, with respect thereto, to the date of such deposit (in the
case of Securities which have become due and payable) or maturity date or
redemption date, as the case may be;

 

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

 

(c)           the Issuer 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 as to such series have been complied with.

 

(2)           Notwithstanding the satisfaction and discharge of this
Indenture, the obligation of the Issuer to the Trustee and any predecessor
Trustee under Section 6.6, the obligations of the Issuer to any Authenticating
Agent under Section 6.14 and, if money shall have been deposited with the
Trustee pursuant to (1)(a)(ii) of this Section, the obligations of the Trustee
under Section 10.2 and the last paragraph of Section 3.3 shall survive.

 

Section 10.2           Application of Trust Funds.  Subject to the provisions of the last
paragraph of Section 3.3, all money deposited with the Trustee pursuant to
Section 10.1 shall be held in trust and applied by it, in accordance with the
provisions of the Securities, the Coupons and this Indenture, to the payment,
either directly or through any paying agent (including the Issuer acting as its
own paying agent) as the Trustee may determine, to the Persons entitled thereto
of the principal, premium, if any, and any interest or Additional Amounts for
whose payment such money has been deposited with or received by the Trustee,
but such money need not be segregated from other funds except to the extent
required by law.

 

Section 10.3           Applicability of Defeasance
Provisions; Issuer’s Option to Effect Defeasance or Covenant
Defeasance.  If pursuant to Section
2.3 provision is made for either or both of (1) defeasance of the Securities of
or within a series under Section 10.4 or (2) covenant defeasance of the
Securities of or within a series under Section 10.5, then the provisions of
such Section or Sections, as the case may be, together with the provisions of
Sections 10.6 through 10.9 inclusive, with such modifications thereto as may be
specified pursuant to Section 2.3 with respect to any Securities, shall be
applicable to such Securities and any Coupons appertaining thereto, and the
Issuer may at its option by or pursuant to Board Resolution, at any time, with
respect to such Securities and any Coupons appertaining thereto, elect to have
Section 10.4 (if applicable) or Section 10.5 (if applicable) be applied to such
Outstanding Securities and any Coupons appertaining thereto upon compliance
with the conditions set forth below in this Article.

 

Section 10.4           Defeasance and Discharge.  Upon the Issuer’s exercise of the option
specified in Section 10.3 applicable to this Section with respect to the
Securities of or within a series, the Issuer shall be deemed to have been
discharged from its obligations with respect to such Securities and any Coupons
appertaining thereto on and after the date the conditions set forth in Section
10.6 are satisfied

 

43

 

(hereinafter “defeasance”).  For this purpose, such defeasance means that
the Issuer shall be deemed to have paid and discharged the entire indebtedness
represented by such Securities and any Coupons appertaining thereto which shall
thereafter be deemed to be “Outstanding” only for the purposes of Section 10.7
and the other Sections of this Indenture referred to in clause (2) of this
Section, and to have satisfied all its other obligations under such Securities
and any Coupons appertaining thereto and this Indenture insofar as such
Securities and any Coupons appertaining thereto are concerned (and the Trustee,
at the expense of the Issuer, shall on an Issuer Order execute proper
instruments acknowledging the same), except the following which shall survive
until otherwise terminated or discharged hereunder:  (1) the rights of Holders of such Securities
and any Coupons appertaining thereto to receive, solely from the trust funds
described in Section 10.6(1) and as more fully set forth in such Section,
payments in respect of the principal of, premium, if any, and interest and
Additional Amounts, if any, on such Securities or any Coupons appertaining
thereto when such payments are due; (2) the Issuer’s obligations with respect
to such Securities under Sections 2.8, 2.9, 3.2 and 3.3 and with respect to the
payment of Additional Amounts, if any, payable with respect to such Securities
as specified pursuant to Section 2.3; (3) the rights, powers, trusts, duties
and immunities of the Trustee hereunder and (4) this Article X.  Subject to compliance with this Article X,
the Issuer may exercise its option under this Section notwithstanding the prior
exercise of its option under Section 10.5 with respect to such Securities and
any Coupons appertaining thereto. 
Following a defeasance, payment of such Securities may not be
accelerated because of an Event of Default.

 

Section 10.5           Covenant Defeasance.  Upon the Issuer’s exercise of the option
specified in Section 10.3 applicable to this Section with respect to any
Securities of or within a series, the Issuer shall be released from its
obligations under Section 9.1 and 3.5 and, if specified pursuant to Section
2.3, its obligations under any other covenant with respect to such Securities
and any Coupons appertaining thereto on and after the date the conditions set
forth in Section 10.6 are satisfied (hereinafter, “covenant defeasance”), and
such Securities and any Coupons appertaining thereto shall thereafter be deemed
to be not “Outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with Sections 9.1 and Article III or such other covenant, but shall
continue to be deemed “Outstanding” for all other purposes hereunder.  For this purpose, such covenant defeasance
means that, with respect to such Securities and any Coupons appertaining
thereto, the Issuer may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such Section or
such other covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such Section or such other covenant or by reason of reference
in any such Section or such other covenant to any other provision herein or in
any other document and such omission to comply shall not constitute a default
or an Event of Default under Section 5.1(4) or (8) or otherwise, as the case
may be, but, except as specified above, the remainder of this Indenture and
such Securities and any Coupons appertaining thereto shall be unaffected
thereby.

 

Section 10.6           Conditions to Defeasance or Covenant
Defeasance.  The following shall be
the conditions to application of Section 10.4 or Section 10.5 to any Securities
of or within a series and any Coupons appertaining thereto:

 

(1)           The Issuer shall have deposited or caused to be
deposited irrevocably with the Trustee (or another Trustee satisfying the
requirements of Section 6.9 who shall agree to comply with, and shall be
entitled to the benefits of, the provisions of Sections 10.3 through 10.9
inclusive and the last paragraph of Section 3.3 applicable to the Trustee, for
purposes of such Sections also a “Trustee”) as trust funds in trust for the
purpose of making the payments referred to in clauses (X) and (Y) of this
Section 10.6(1), specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of such Securities and any Coupons appertaining
thereto, with instructions to the Trustee as to the application thereof, (a)
money in an amount (in such currency, 
currencies or currency unit or units in which such Securities and any
Coupons appertaining thereto are then specified as payable at maturity), or (b)
if Securities of such series are not subject to repayment at the option of
Holders, U.S. Government Obligations which through the payment of interest and
principal in respect thereof in accordance with their terms will provide, not
later than one day before the due date of any payment referred to in clause (X)
or (Y) of this Section 10.6(1), money in an amount or (c) a combination thereof
in an amount 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, and which shall be
applied by the

 

44

 

Trustee to pay and discharge, (X) the
principal of, premium, if any, and interest and Additional Amounts, if any, on
Securities and any Coupons appertaining thereto on the maturity of such
principal or installment of principal or interest and (Y) any mandatory sinking
fund payments applicable to such Securities on the day on which such payments
are due and payable in accordance with the terms of this Indenture and such
Securities and any Coupons appertaining thereto.  Before such a deposit the Issuer may make
arrangements satisfactory to the Trustee for the redemption of Securities at a
future date or dates in accordance with Article XII which shall be given effect
in applying the foregoing.

 

(2)           Such defeasance or covenant defeasance shall not
result in a breach or violation of, or constitute a default or Event of Default
under, this Indenture or result in a breach or violation of, or constitute a
default under, any other material agreement or instrument to which the Issuer
is a party or by which it is bound.

 

(3)           In the case of an election under Section 10.4, the
Issuer shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel to the effect that (a) the Issuer has received from, or
there has been published by, the Internal Revenue Service a ruling, or (b)
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 shall confirm that, the Holders of such Securities and any
Coupons appertaining thereto will not recognize income, gain or loss for
Federal income tax purposes as a result of such defeasance and will be subject
to Federal income tax on the same amount and in the same manner and at the same
times, as would have been the case if such deposit, defeasance and discharge
had not occurred.

 

(4)           In the case of an election under Section 10.5, the
Issuer shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Holders of such Securities and any Coupons appertaining thereto will
not recognize income, gain or loss for Federal income tax purposes as a result
of such covenant defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such covenant defeasance had not occurred.

 

(5)           The Issuer shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent to the defeasance under Section 10.4 or the covenant
defeasance under Section 10.5 (as the case may be), including those contained
in this Section 10.6 other than the 90 day period specified in Section 10.6(7),
have been complied with.

 

(6)           This Issuer shall have delivered to the Trustee an
Officer’s Certificate to the effect that neither such Securities nor any other
Securities of the same series, if then listed on any securities exchange, will
be delisted as a result of such deposit.

 

(7)           No event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to such Securities or any
other Securities shall have occurred and be continuing at the time of such
deposit or, with regard to any such event specified in Sections 5.1(5) and (6),
at any time on or prior to the 90th day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until after
such 90th day).

 

(8)           Such defeasance or covenant defeasance shall not
result in the trust arising from such deposit constituting an investment
company within the meaning of the Investment Company Act of 1940 unless such
trust shall be registered under such Act or exempt from registration
thereunder.

 

(9)           Such defeasance or covenant defeasance shall be
effected in compliance with any additional or substitute terms, conditions or
limitations which may be imposed on the Issuer in connection therewith as
contemplated by Section 2.3.

 

Section 10.7           Deposited Money and U.S.
Government Obligations to be Held in Trust.  Subject to the provisions of the last
paragraph of Section 3.3, all money and U.S. Government Obligations (or other
property as may be provided pursuant to Section 2.3) (including the proceeds
thereof)

 

45

 

deposited with the Trustee
pursuant to Section 10.6 in respect of any Securities of any series and any
Coupons appertaining thereto shall be held in trust and applied by the Trustee,
in accordance with the provisions of such Securities and any Coupons
appertaining thereto and this Indenture, to the payment, either directly or
through any paying agent (including the Issuer acting as its own paying agent)
as the Trustee may determine, to the Holders of such Securities and any Coupons
appertaining thereto of all sums due and to become due thereon in respect of
principal, premium, if any, and interest and Additional Amounts, if any, but
such money need not be segregated from other funds except to the extent
required by law.

 

Section 10.8           Repayment to Issuer.  The Trustee (any paying agent) shall promptly
pay to the Issuer upon Issuer Order any excess money or securities held by them
at any time.

 

Section 10.9           Indemnity
For U.S. Government Obligations.  The Issuer shall pay, and shall indemnify the
Trustee against, any tax, fee or other charge imposed on or assessed against
U.S. Government Obligations deposited pursuant to this Article or the principal
and interest and any other amount received on such U.S. Government Obligations.

 

Section 10.10         Reimbursement. 
If the Trustee or the paying agent is unable to apply any money in
accordance with this Article with respect to any Securities by reason of any
order or judgment of any court or government authority enjoining, restraining
or otherwise prohibiting such application, then the obligations under this
Indenture and such Securities from which the Issuer has been discharged or
released pursuant to Section 10.4 or 10.5 shall be revived and reinstated as
though no deposit had occurred pursuant to this Article with respect to such
Securities, until such time as the Trustee or paying agent is permitted to apply
all money held in trust pursuant to Section 10.7 with respect to such
Securities in accordance with this Article; provided, however, that if the
Issuer makes any payment of principal of or any premium or interest or
Additional Amounts on any such Security following such reinstatement of its
obligations, the Issuer shall be subrogated to the rights (if any) of the
Holders of such Securities to receive such payment from the money so held in
trust.

 

ARTICLE XI

 

MISCELLANEOUS
PROVISIONS

 

Section 11.1           Incorporators,
Shareholders, Officers and Directors
of Issuer Exempt from Individual Liability.  No recourse under or upon any obligation,
covenant or agreement contained in this Indenture, or in any Security, or
because of any indebtedness evidenced thereby, shall be had against any
incorporator, as such or against any past, present or future shareholder,
officer or director, as such, of the Issuer or of any successor, either
directly or through the Issuer 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 of the Securities and the Coupons
appertaining thereto by the Holders thereof and as part of the consideration
for the issue of the Securities and the Coupons appertaining thereto.

 

Section 11.2           Provisions of Indenture for the Sole
Benefit of Parties and Holders of Securities and Coupons.  Nothing in this Indenture, in the Securities
or in the Coupons appertaining thereto, expressed or implied, shall give or be
construed to give to any person, firm or corporation, other than the parties
hereto and their successors and the Holders of the Securities or Coupons, if
any, any legal or equitable right, remedy or claim under this Indenture or
under any covenant or provision herein contained, all such covenants and
provisions being for the sole benefit of the parties hereto and their
successors and of the Holders of the Securities or Coupons, if any.

 

Section 11.3           Successors and Assigns of Issuer
Bound by Indenture.  All
the covenants, stipulations, promises and agreements in this Indenture
contained by or in behalf of the Issuer shall bind its successors and assigns,
whether so expressed or not.

 

46

 

Section 11.4           Notices and Demands on Issuer,
Trustee and Holders of Securities and Coupons.  Any notice or demand which by any provision
of this Indenture is required or permitted to be given or served by the Trustee
or by the Holders of Securities or Coupons to or on the Issuer shall be in
writing (which may be by facsimile) and may be given or served by being
deposited postage prepaid, first-class mail (except as otherwise specifically
provided herein) addressed (until another address of the Issuer is filed by the
Issuer with the Trustee) to AXIS Capital Holdings Limited, 106 Pitts Bay Road,
Pembroke HM 08, Bermuda, Attn:  General
Counsel.  Any notice, direction, request
or demand by the Issuer or any Holder of Securities or Coupons to or upon the
Trustee shall be deemed to have been sufficiently given or served by being
deposited postage prepaid, first-class mail (except as otherwise specifically
provided herein) addressed (until another address of the Trustee is filed by
the Trustee with the Issuer) to The Bank of New York, 101 Barclay Street, Floor
8-W, New York, NY 10286, Attn:  Corporate
Trust Administration.

 

Where this Indenture provides for notice to
Holders of Registered Securities, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder entitled thereto, at his or her
last address as it appears in the Security register.  In any case where notice to such Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. 
Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice.  Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.

 

In case, by reason of the suspension of or
irregularities in regular mail service, it shall be impracticable to mail
notice to the Issuer when such notice is required to be given pursuant to any
provision of this Indenture, then any manner of giving such notice as shall be
reasonably satisfactory to the Trustee shall be deemed to be a sufficient
giving of such notice.

 

Section 11.5           Officer’s
Certificates and Opinions of Counsel;
Statements to Be Contained Therein. 
Upon any application or demand by the Issuer to the Trustee to take any
action under any of the provisions of this Indenture, the Issuer shall furnish
to the Trustee an Officer’s Certificate stating that all conditions precedent
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent have been complied with, except that in
the case of any such application or demand as to which the furnishing of such
documents is specifically required by any provision of this Indenture relating
to such particular application or demand, no additional certificate or opinion
need be furnished.

 

Each certificate or opinion provided for in
this Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant provided for in this Indenture shall include (1) a
statement that the person making such certificate or opinion has read such
covenant or condition, (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based, (3) a statement that, in the opinion of
such person, he or she has made such examination or investigation as is
necessary to enable him or her to express an informed opinion as to whether or
not such covenant or condition has been complied with and (4) a statement as to
whether or not, in the opinion of such person, such condition or covenant has
been complied with.

 

Any certificate, statement or opinion of an
officer of the Issuer may be based, insofar as it relates to legal matters,
upon a certificate or opinion of or representations by counsel, unless such
officer knows that the certificate or opinion or representations with respect
to the matters upon which his or her certificate, statement or opinion may be
based as aforesaid are erroneous, or in the exercise of reasonable care should
know that the same are erroneous.  Any
certificate, statement or opinion of counsel may be based, insofar as it
relates to factual matters, information with respect to which is in the
possession of the Issuer, upon the certificate, statement or opinion of or
representations by an officer or officers of the Issuer, unless such counsel
actually knows that the certificate, statement or opinion or representations
with respect

 

47

 

to the matters
upon which his or her certificate, statement or opinion may be based as
aforesaid are erroneous, or in the exercise of reasonable care should know that
the same are erroneous.

 

Any certificate, statement or opinion of an
officer of the Issuer or of counsel may be based, insofar as it relates to
accounting matters, upon a certificate or opinion of or representations by an
accountant or firm of accountants in the employ of the Issuer, unless such
officer or counsel, as the case may be, knows that the certificate or opinion
or representations with respect to the accounting matters upon which his or her
certificate, statement or opinion may be based as aforesaid are erroneous, or
in the exercise of reasonable care should know that the same are erroneous.

 

Any certificate or opinion of any independent
firm of public accountants filed with and directed to the Trustee shall contain
a statement that such firm is independent.

 

Section 11.6           Payments Due on Saturdays, Sundays
and Holidays.  If the date of
maturity of interest on or principal of the Securities of any series or any
Coupons appertaining thereto or the date fixed for redemption or repayment of
any such Security or Coupon shall not be a Business Day, then payment of
interest or principal need not be made on such date, but may be made on the
next succeeding Business Day with the same force and effect as if made on the
date of maturity or the date fixed for redemption, and no interest shall accrue
for the period after such date.

 

Section 11.7           Conflict of Any Provision of
Indenture with Trust Indenture Act of 1939.  If and to the extent that any provision of
this Indenture limits, qualifies or conflicts with the duties imposed by, or
with another provision (an “incorporated provision”) included in this Indenture
by operation of, Sections 310 to 318, inclusive, of the Trust Indenture Act of
1939, such imposed duties or incorporated provision shall control.

 

Section 11.8           New York Law to Govern; Waiver of Jury
Trial.  This Indenture and each
Security and Coupon shall be deemed to be a contract under the laws of the
State of New York, and for all purposes shall be construed in accordance with
the laws of such State, except as may otherwise be required by mandatory
provisions of law.

 

EACH OF THE
ISSUER AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE
TRANSACTION CONTEMPLATED HEREBY.

 

Section 11.9           Counterparts. 
This Indenture may be executed in any number of counterparts, each of
which shall be an original; but such counterparts shall together constitute but
one and the same instrument.

 

Section 11.10         Effect of Headings.  The Article and Section headings herein and
the Table of Contents are for convenience only and shall not affect the
construction hereof.

 

Section 11.11         Securities in a Foreign Currency or
in EURO.  Unless otherwise specified
in an Officer’s Certificate delivered pursuant to Section 2.3 of this Indenture
with respect to a particular series of Securities, whenever for purposes of
this Indenture any action may be taken by the Holders of a specified percentage
in aggregate principal amount of Securities of all series or all series
affected by a particular action at the time Outstanding and, at such time,
there are Outstanding Securities of any series which are denominated in a coin
or currency other than Dollars (including EUROs), 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.  For purposes of this Section 11.11, Market
Exchange Rate shall mean the noon Dollar buying rate in New York City for cable
transfers of that currency as published by the Federal Reserve Bank of New
York; provided, however, in the case of EUROs, Market Exchange Rate shall mean
the rate of exchange determined by the Commission of the European Communities
(or any successor thereto) as published in the Official Journal of the European
Communities (such publication or any successor publication, the “Journal”).  If such Market Exchange Rate is not available
for any reason with respect to such currency, the Trustee shall use, in its
sole discretion and without liability on its part,

 

48

 

such quotation of the Federal
Reserve Bank of New York or, in the case of EUROs, the rate of exchange as
published in the Journal, as of the most recent available date, or quotations
or, in the case of EUROs, rates of exchange from one or more major banks in The
City of New York or in the country of issue of the currency in question, which
for purposes of the EURO shall be Brussels, Belgium, or such other quotations
or, in the case of EURO, rates of exchange as the Trustee 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 a currency other than Dollars in
connection with any action taken by Holders of Securities pursuant to the terms
of this Indenture including without limitation any determination contemplated
in Section 5.1(7).

 

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

 

Section 11.12         Judgment Currency.  The Issuer agrees, to the fullest extent that
it may effectively do so under applicable law, that (1) if for the purpose of
obtaining judgment in any court it is necessary to convert the sum due in
respect of the principal of, any premium, interest or Additional Amounts 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 Business Day, then, to the extent permitted by applicable
law, 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 Business Day preceding
the day on which final unappealable judgment is entered and (2) its obligations
under this Indenture to make payments in the Required Currency (a) shall not be
discharged or satisfied by any tender, or any recovery pursuant to any judgment
(whether or not entered in accordance with subsection (1)), 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,
(b) 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 (c) shall not be affected by judgment
being obtained for any other sum due under this Indenture.

 

Section 11.13         Separability Clause.  If any provision of this Indenture or of the
Securities, or the application of any such provision to any Person or
circumstance, shall be held to be invalid, illegal or unenforceable, the
remainder of this Indenture or of the Securities, or the application of such
provision to Persons or circumstances other than those as to whom or which it
is invalid, illegal or unenforceable, shall not in any way be affected or
impaired thereby.

 

Section 11.14         Force Majeure. 
In no event shall the Trustee be responsible or liable for any failure
or delay in the performance of its obligations hereunder arising out of or
caused by, directly or indirectly, forces beyond its control, including,
without limitation strikes, work stoppages, accidents, acts of war or
terrorism, civil or military disturbances, nuclear or natural catastrophes or
acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being
understood that the Trustee shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

Section 11.15         Submission to Jurisdiction.  The Company agrees that any judicial
proceedings instituted in relation to any matter arising under this Indenture,
the Securities appertaining thereto may be brought in any United States Federal
or New York State court sitting in the Borough of Manhattan, The City of New
York, New York to the extent that such court has subject matter jurisdiction
over the controversy, and, by execution and delivery of this Indenture, the
Company hereby irrevocably accepts, generally and unconditionally, the
jurisdiction of the aforesaid courts, acknowledges their

 

49

 

competence and irrevocably
agrees to be bound by any judgment rendered in such proceeding.  The Company also irrevocably and
unconditionally waives for the benefit of the Trustee and the Holders of the
Securities any immunity from jurisdiction and any immunity from legal process
(whether through service or notice, attachment prior to judgment, attachment in
the aid of execution, execution or otherwise) in respect of this
Indenture.  The Company hereby irrevocably
designates and appoints for the benefit of the Trustee and the Holders of the
Securities for the term of this Indenture CT Corporation System, 111 Eighth
Avenue, New York, New York 10011, as its agent to receive on its behalf service
of all process (with a copy of all such service of process to be delivered to
AXIS Capital Holdings Limited 106 Pitts Bay Road, Pembroke HM 08, Bermuda,
Attention:  General Counsel) brought
against it with respect to any such proceeding in any such court in The City of
New York, such service being hereby acknowledged by the Company to be effective
and binding service on it in every respect whether or not the Company shall
then be doing or shall have at any time done business in New York.  Such appointment shall be irrevocable so long
as any of the Securities or the obligations of the Company hereunder remain
outstanding until the appointment of a successor by the Company and such
successor’s acceptance of such appointment. 
Upon such acceptance, the Company shall notify the Trustee in writing of
the name and address of such successor. 
The Company further agrees for the benefit of the Trustee and the
Holders of the Securities to take any and all action, including the execution
and filing of any and all such documents and instruments, as its agent in full
force and effect so long as any of the Securities or the obligations of the
Company hereunder shall be outstanding. 
The Trustee shall not be obligated and shall have no responsibility with
respect to any failure by the Company to take any such action.  Nothing herein shall affect the right to
serve process in any other manner permitted by any law or limit the right of
the Trustee or any Holder to institute proceedings against the Company in the
courts of any other jurisdiction or jurisdictions.

 

ARTICLE XII

 

REDEMPTION OF
SECURITIES AND SINKING FUNDS

 

Section 12.1           Applicability of Article.  The provisions of this Article shall be
applicable to the Securities of any series which are redeemable before their
maturity or to any sinking fund for the retirement of Securities of a series
except as otherwise specified as contemplated by Section 2.3 for Securities of
such series.

 

Section 12.2           Notice of Redemption; Partial Redemptions.  Notice of redemption to the Holders of
Registered Securities of any series to be redeemed as a whole or in part at the
option of the Issuer shall be given by mailing notice of such redemption by
first class mail, postage prepaid, at least 30 days and not more than 60 days
prior to the date fixed for redemption to such Holders of Securities of such
series at their last addresses as they shall appear upon the registry
books.  Notice of redemption to the
Holders of Unregistered Securities to be redeemed as a whole or in part, who
have filed their names and addresses with the Trustee pursuant to Section
313(c)(2) of the Trust Indenture Act of 1939 shall be given at the Issuer’s
expense by mailing notice of such redemption, by first class mail, postage
prepaid, at least 30 days and not more than 60 prior to the date fixed for
redemption, to such Holders at such addresses as were so furnished to the
Trustee (and, in the case of any such notice given by the Issuer, the Trustee
shall make such information available to the Issuer for such purpose).  Notice of redemption to all other Holders of
Unregistered Securities shall be published in an Authorized Newspaper in the
Borough of Manhattan, The City of New York, and in an Authorized Newspaper in
London, in each case, once in each of three successive calendar weeks, the
first publication to be not less than 30 nor more than 60 days prior to the
date fixed for redemption.  Any notice
which is mailed in the manner herein provided shall be conclusively presumed to
have been duly given, whether or not the Holder receives the notice.  Failure to give notice by mail, or any defect
in the notice to the Holder of any Security of a series designated for
redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Security of such series.

 

The notice of redemption to each such Holder
shall identify the securities to be redeemed (including CUSIP numbers), shall
specify, the principal amount of each Security of such series held by such
Holder to be redeemed, the date fixed for redemption, the redemption price, the
place or places of payment, that payment will be made upon presentation and
surrender of such Securities and, in the case of

 

50

 

Securities
with Coupons attached thereto, of all Coupons appertaining thereto maturing
after the date fixed for redemption, that such redemption is pursuant to the
mandatory or optional sinking fund, or both, if such be the case, that interest
accrued to the date fixed for redemption will be paid as specified in such
notice and that on and after said date interest thereon or on the portions
thereof to be redeemed will cease to accrue. 
In case any Security of a series is to be redeemed in part only the
notice of redemption shall state the portion of the principal amount thereof to
be redeemed and shall state that on and after the date fixed for redemption,
upon surrender of such Security, a new Security or Securities of such series in
principal amount equal to the unredeemed portion thereof will be issued.

 

The notice of redemption of Securities of any
series to be redeemed at the option of the Issuer shall be given by the Issuer
or, at the Issuer’s request, by the Trustee (provided it receives the Officer’s
Certificate below) in the name and at the expense of the Issuer.

 

On or before 10:00 a.m., New York City time,
the redemption date specified in the notice of redemption given as provided in
this Section, the Issuer will deposit with the Trustee or with one or more
paying agents (or, if the Issuer is acting as its own paying agent, set aside,
segregate and hold in trust as provided in Section 3.3) an amount of money
sufficient to redeem on the redemption date all the Securities of such series
so called for redemption at the appropriate redemption price, together with
accrued interest to the date fixed for redemption.  The Issuer will deliver to the Trustee at
least 75 days prior to the date fixed for redemption an Officer’s Certificate
stating the aggregate principal amount of Securities to be redeemed.  In case of a redemption at the election of
the Issuer prior to the expiration of any restriction on such redemption, the
Issuer shall deliver to the Trustee, prior to the giving of any notice of
redemption to Holders pursuant to this Section, an Officer’s Certificate
stating that such restriction has been complied with.

 

If less than all the Securities of a series
are to be redeemed, the Trustee shall select, in such manner as it shall deem
appropriate and fair, Securities of such series to be redeemed in whole or in
part.  Securities may be redeemed in part
in multiples equal to the minimum authorized denomination for Securities of
such series or any multiple thereof.  The
Trustee shall promptly notify the Issuer in writing of the Securities of such
series selected for redemption and, in the case of any Securities of such
series selected for partial redemption, the principal amount thereof to be
redeemed.  For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to
the redemption of Securities of any series shall relate, in the case of any
Security redeemed or to be redeemed only in part, to the portion of the
principal amount of such Security which has been or is to be redeemed.

 

Section 12.3           Payment of Securities Called for
Redemption.  If notice of redemption
has been given as above provided, the Securities or portions of Securities
specified in such notice shall become due and payable on the date and at the
place stated in such notice at the applicable redemption price, together with
interest accrued to the date fixed for redemption, and on and after said date
(unless the Issuer shall default in the payment of such Securities at the
redemption price, together with interest accrued to said date) interest on the
Securities or portions of Securities so called for redemption shall cease to
accrue, and the unmatured Coupons, if any, appertaining thereto shall be void,
and, except as provided in Sections 3.3 and 6.5, such Securities shall cease
from and after the date fixed for redemption to be entitled to any benefit or
security under this Indenture, and the Holders thereof shall have no right in
respect of such Securities except the right to receive the redemption price
thereof and unpaid interest and Additional Amounts to the date fixed for
redemption.  On presentation and
surrender of such Securities at a place of payment specified in said notice,
together with all Coupons, if any, appertaining thereto maturing after the date
fixed for redemption, said Securities or the specified portions thereof shall
be paid and redeemed by the Issuer at the applicable redemption price, together
with interest accrued thereon to the date fixed for redemption; provided that
payment of interest becoming due on or prior to the date fixed for redemption
shall be payable in the case of Securities with Coupons attached thereto, to
the Holders of the Coupons for such interest upon surrender thereof, and in the
case of Registered Securities, to the Holders of such Registered Securities
registered as such on the relevant record date subject to the terms and
provisions of Sections 2.3 and 2.7 hereof.

 

51

 

If any Security called for redemption shall
not be so paid upon surrender thereof for redemption, the principal shall,
until paid or duly provided for, bear interest from the date fixed for
redemption at the rate of interest or Yield to Maturity (in the case of an
Original Issue Discount Security) borne by such Security.

 

If any Security with Coupons attached thereto
is surrendered for redemption and is not accompanied by all appurtenant Coupons
maturing after the date fixed for redemption, such Security may be redeemed
after deducting from the redemption price any amount equal to the face amount
of all such missing Coupons, or the surrender of such missing Coupon or Coupons
may be waived by the Issuer and the Trustee if there be furnished to them such
security or indemnity as they may require to save each of them and any paying
agent harmless.  If thereafter the Holder
of such Security shall surrender to the Trustee or any paying agent any such
missing Coupon in respect of which a deduction shall have been made from the
redemption price, such Holder shall be entitled to receive the amount so
deducted; provided, however, that interest represented by Coupons shall be
payable as provided in Section 2.9 and, unless otherwise specified as
contemplated by Section 2.3, only upon presentation and surrender of those
Coupons.

 

Upon presentation of any Security redeemed in
part only, the Issuer shall execute and the Trustee shall authenticate and
deliver to or on the order of the Holder thereof, at the expense of the Issuer,
a new Security or Securities of such series, of authorized denominations, in
principal amount equal to the unredeemed portion of the Security so presented.

 

Section 12.4           Exclusion of Certain Securities
from Eligibility for Selection for Redemption.  Securities shall be excluded from eligibility
for selection for redemption if they are identified by registration and
certificate number in an Officer’s Certificate delivered to the Trustee at
least 40 days prior to the last date on which notice of redemption may be given
as being owned of record and beneficially by, and not pledged or hypothecated
by either (a) the Issuer or (b) an entity specifically identified in such
written statement as directly or indirectly controlling or controlled by or
under direct or indirect common control with the Issuer.

 

Section 12.5           Mandatory and Optional Sinking Funds.

 

(1)           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 payment in excess of such
minimum amount provided for by the terms of the Securities of any series is
herein referred to as an “optional sinking fund payment”.  The date on which a sinking fund payment is
to be made is herein referred to as the “sinking fund payment date”.

 

(2)           In lieu of making all or any part of any mandatory
sinking fund payment with respect to any series of Securities in cash, the
Issuer may at its option (a) deliver to the Trustee Securities of such series
theretofore purchased or otherwise acquired (except upon redemption pursuant to
the mandatory sinking fund) by the Issuer or receive credit for Securities of
such series (not previously so credited) theretofore purchased or otherwise
acquired (except as aforesaid) by the Issuer and delivered to the Trustee for
cancellation pursuant to Section 2.10, (b) receive credit for optional sinking
fund payments (not previously so credited) made pursuant to this Section, or
(c) receive credit for Securities of such series (not previously so credited)
redeemed by the Issuer through any optional redemption provision contained in
the terms of such series.  Securities so
delivered or credited shall be received or credited by the Trustee at the
sinking fund redemption price specified in such Securities.

 

(3)           On or before the 60th day next preceding each sinking
fund payment date for any series, the Issuer will deliver to the Trustee an
Officer’s Certificate (which need not contain the statements required by
Section 11.5) (a) specifying the portion of the mandatory sinking fund payment
to be satisfied by payment of cash and the portion to be satisfied by credit of
Securities of such series and the basis for such credit, (b) stating that none
of the Securities of such series has theretofore been so credited, (c) stating
that no defaults in the payment of interest or Events of Default with respect
to such series have occurred (which have not been waived or cured) and are
continuing and (d) stating whether or not the

 

52

 

Issuer intends to exercise its right to make
an optional sinking fund payment with respect to such series and, if so,
specifying the amount of such optional sinking fund payment which the Issuer
intends to pay on or before the next succeeding sinking fund payment date.  Any Securities of such series to be credited
and required to be delivered to the Trustee in order for the Issuer to be
entitled to credit therefor as aforesaid which have not theretofore been
delivered to the Trustee shall be delivered for cancellation pursuant to
Section 2.10 to the Trustee with such Officer’s Certificate (or reasonably
promptly thereafter if acceptable to the Trustee).  Such Officer’s Certificate shall be
irrevocable and upon its receipt by the Trustee the Issuer shall become
unconditionally obligated to make all the cash payments or payments therein
referred to, if any, on or before the next succeeding sinking fund payment
date.  Failure of the Issuer, on or
before any such 60th day, to deliver such Officer’s Certificate and Securities
specified in this paragraph, if any, shall not constitute a default but shall
constitute, on and as of such date, the irrevocable election of the Issuer (i)
that the mandatory sinking fund payment for such series due on the next
succeeding sinking fund payment date shall be paid entirely in cash without the
option to deliver or credit Securities of such series in respect thereof and
(ii) that the Issuer will make no optional sinking fund payment with respect to
such series as provided in this Section.

 

(4)           If the sinking fund payment or payments (mandatory or
optional or both) to be made in cash on the next succeeding sinking fund
payment date plus any unused balance of any preceding sinking fund payments
made in cash shall exceed $50,000 (or the equivalent thereof in any Foreign
Currency or EURO) or a lesser sum in Dollars (or the equivalent thereof in any
Foreign Currency or EURO) if the Issuer shall so request with respect to the
Securities of any particular series, such cash shall be applied on the next
succeeding sinking fund payment date to the redemption of Securities of such
series at the sinking fund redemption price together with accrued interest to
the date fixed for redemption.  If such
amount shall be $50,000 (or the equivalent thereof in any Foreign Currency or
EURO) or less and the Issuer makes no such request then it shall be carried over
until a sum in excess of $50,000 (or the equivalent thereof in any Foreign
Currency or EURO) is available.  The
Trustee shall select, in the manner provided in Section 12.2, for redemption on
such sinking fund payment date a sufficient principal amount of Securities of
such series to absorb said cash, as nearly as may be, and shall (if requested
in writing by the Issuer) inform the Issuer of the serial numbers of the
Securities of such series (or portions thereof) so selected.  Securities shall be excluded from eligibility
for redemption under this Section if they are identified by registration and
certificate number in an Officer’s Certificate delivered to the Trustee at
least 60 days prior to the sinking fund payment date as being owned of record
and beneficially by, and not pledged or hypothecated by either (a) the Issuer
or (b) an entity specifically identified in such Officer’s Certificate as
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Issuer.  The
Trustee, in the name and at the expense of the Issuer (or the Issuer, if it
shall so request the Trustee in writing) shall cause notice of redemption of
the Securities of such series to be given in substantially the manner provided
in Section 12.2 (and with the effect provided in Section 12.3) for the
redemption of Securities of such series in part at the option of the
Issuer.  The amount of any sinking fund
payments not so applied or allocated to the redemption of Securities of such
series shall be added to the next cash sinking fund payment for such series
and, together with such payment, shall be applied in accordance with the
provisions of this Section.  Any and all
sinking fund moneys held on the stated maturity date of the Securities of any
particular series (or earlier, if such maturity is accelerated), which are not
held for the payment or redemption of particular Securities of such series
shall be applied, together with other moneys, if necessary, sufficient for the
purpose, to the payment of the principal of, and interest on, the Securities of
such series at maturity.

 

(5)           On or before each sinking fund payment date, the
Issuer shall pay to the Trustee in cash or shall otherwise provide for the
payment of all interest accrued and Additional Amounts to the date fixed for
redemption on Securities to be redeemed on the next following sinking fund
payment date.

 

(6)           The Trustee shall not redeem or cause to be redeemed
any Securities of a series with sinking fund moneys or give any notice of redemption
of Securities for such series by operation of the sinking fund during the
continuance of a default in payment of interest on such Securities or of any
Event of Default except that, where the giving of notice of redemption of any
Securities shall theretofore have been made, the Trustee shall redeem or cause
to be redeemed such Securities, provided that it shall have received from the
Issuer a sum sufficient for such redemption. 
Except as aforesaid, any moneys in the

 

53

 

sinking fund for such series at the time when
any such default or Event of Default shall occur, and any moneys thereafter
paid into the sinking fund, shall, during the continuance of such default or
Event of Default, be deemed to have been collected under Article V and held for
the payment of all such Securities.  In
case such Event of Default shall have been waived as provided in Section 5.10
or the default cured on or before the sixtieth day preceding the sinking fund
payment date in any year, such moneys shall thereafter be applied on the next
succeeding sinking fund payment date in accordance with this Section to the
redemption of such Securities.

 

54

 

IN WITNESS WHEREOF, the parties hereto have
caused this Indenture to be duly executed as of November 15, 2004.

 

	
   

  	
  AXIS CAPITAL HOLDINGS LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Andrew Cook

  	
   

  
	
   

  	
   

  	
  Name: Andrew Cook

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Remo J. Reale

  	
   

  
	
   

  	
   

  	
   Name:
  Remo J. Reale

  
	
   

  	
   

  	
   Title:
  Vice President

  
						

 

55

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]