Document:

Exhibit 4.1
 

 

PROTECTION ONE
ALARM MONITORING, INC.,

as Issuer,

and

THE GUARANTORS LISTED

ON THE SIGNATURE PAGES HERETO,

as Guarantors

81¤8%
SENIOR SUBORDINATED NOTES DUE 2009

SECOND
SUPPLEMENTAL INDENTURE

Dated as of May 10, 2007

TO

INDENTURE

Dated as of December 21, 1998

THE BANK OF NEW
YORK TRUST COMPANY, N.A.,

as Trustee

 

   
 

SECOND SUPPLEMENTAL INDENTURE (this “Supplemental
Indenture”), dated as of May 10, 2007 among Integrated Alarm Services Group,
Inc., a Delaware corporation, Criticom International Corporation, a New Jersey
corporation, Monital Signal Corporation, a New Jersey corporation, Integrated
Alarm Services, Inc., a Delaware corporation, American Home Security, Inc., a
Nevada corporation, National Alarm Computer Center Inc., a Delaware
corporation, Everest Video Systems, L.L.C., a Delaware limited liability
company (each a “Guaranteeing Subsidiary” and a subsidiary of Protection One
Alarm Monitoring, Inc. (the “Company”)), the Company, Protection One, Inc., the
other Guarantors (as defined in the Indenture referred to herein) and The Bank
of New York Trust Company, N.A., as trustee under the Indenture referred to
herein (the “Trustee”).

W I T N E S S E T
H

WHEREAS, the Company has heretofore executed and
delivered to the Trustee an indenture (the “Indenture”), dated as of December
21, 1998 providing for the issuance of its 81¤8% Senior
Subordinated Notes due 2009 (the “Notes”); and

WHEREAS, the
Indenture provides that under certain circumstances each Guaranteeing
Subsidiary shall execute and deliver to the Trustee a supplemental indenture
pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee
all of the Company’s Obligations under the Notes and the Indenture on the terms
and conditions set forth herein (the “Note Guarantee”); and

WHEREAS, pursuant
to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, each Guaranteeing
Subsidiary and the Trustee mutually covenant and agree for the equal and
ratable benefit of the Holders of the Notes as follows:

1.             CAPITALIZED
TERMS. Capitalized terms used herein without definition shall have the meanings
assigned to them in the Indenture.

2.             AGREEMENT
TO GUARANTEE. Each Guaranteeing Subsidiary hereby agrees as follows:

(a)           Along
with all Guarantors named in the Indenture, to jointly and severally Guarantee
to each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, the Notes or the obligations of the
Company hereunder or thereunder, that:

(i)            the
due and punctual payment of the principal of, premium, if any, and interest and
Additional Interest, if any, on each Note, when and as the same 

 2
 

shall become due and payable,
whether at maturity, by acceleration, redemption or otherwise, the due and
punctual payment of interest and Additional Interest, if any, on the overdue
principal and premium, if any, and Additional Interest, if any, on the Notes,
to the extent lawful, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee, all in accordance
with the terms of such Note and this Indenture; and

(ii)           in
the case of any extension of time of payment or renewal of any Notes or any of
such other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, at
maturity, by acceleration or otherwise.

(b)           The
obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or the Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor.

(c)           The
following is hereby waived: diligence, presentment, demand of payment, filing
of claims with a court in the event of insolvency or bankruptcy of the Company,
any right to require a proceeding first against the Company, protest, notice
and all demands whatsoever.

(d)           This
Note Guarantee shall not be discharged except by complete performance of the
obligations contained in the Notes and the Indenture, and each Guaranteeing
Subsidiary accepts all obligations of a Guarantor under the Indenture.

(e)           If
any Holder or the Trustee is required by any court or otherwise to return to
the Company, the Guarantors, or any Custodian, Trustee, liquidator or other
similar official acting in relation to either the Company or the Guarantors,
any amount paid by either to the Trustee or such Holder, this Note Guarantee,
to the extent theretofore discharged, shall be reinstated in full force and
effect.

(f)            Each
Guaranteeing Subsidiary shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby.

(g)           As
between the Guarantors, on the one hand, and the Holders and the Trustee, on
the other hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article 6 of the Indenture for the purposes of this
Note Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby,
and (y) in the event of any declaration of acceleration of such obligations as
provided in Article 6 of the Indenture, such obligations (whether or not due
and payable) shall forthwith become due and payable by the Guarantors for the
purpose of this Note Guarantee.

 3
 

(h)           The
Guarantors shall have the right to seek contribution from any non-paying
Guarantor so long as the exercise of such right does not impair the rights of
the Holders under the Guarantee.

(i)            Pursuant
to Section 10.02 of the Indenture, after giving effect to any maximum amount
and any other contingent and fixed liabilities that are relevant under any
applicable Bankruptcy or fraudulent conveyance laws, and after giving effect to
any collections from, rights to receive contribution from or payments made by
or on behalf of any other Guarantor in respect of the obligations of such other
Guarantor under Article 10 of the Indenture, this new Note Guarantee shall be
limited to the maximum amount permissible such that the obligations of such
Guarantor under this Note Guarantee will not constitute a fraudulent transfer
or conveyance.

3.             EXECUTION
AND DELIVERY. Each Guaranteeing Subsidiary agrees that the Note Guarantees
shall remain in full force and effect notwithstanding any failure to endorse on
each Note a notation of such Note Guarantee.

4.             GUARANTEEING
SUBSIDIARY MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

(a)           Nothing
contained in this Supplemental Indenture shall prevent any consolidation or
merger of any Guaranteeing Subsidiary with or into the Company or another
Guarantor or shall prevent any sale or conveyance of the property of any
Guaranteeing Subsidiary, as an entirety or substantially as an entirety, to the
Company or the Guarantor. Upon any such consolidation, merger, sale or
conveyance, the Note Guarantee given by such Guaranteeing Subsidiary shall no
longer have any force or effect.

(b)           Nothing
contained in this Supplemental Indenture shall prevent any consolidation or
merger of any Guaranteeing Subsidiary with or into a Person (provided such
Person is a corporation, partnership or trust) other than the Company or
another Guarantor or shall prevent any sale or conveyance of the property of
any Guaranteeing Subsidiary as an entirety or substantially as an entirety to
any such Person (whether or not an Affiliate of the Guarantor). Upon the sale
or disposition of any Guaranteeing Subsidiary (or all or substantially all of
its assets) to a Person which is not a Subsidiary of the Company, which is
otherwise in compliance with this Supplemental Indenture, such Guaranteeing
Subsidiary shall be deemed released from all its obligations under this Supplemental
Indenture and its Note Guarantee and such Note Guarantee shall terminate;
PROVIDED, HOWEVER, that any such termination shall occur only to the extent
that all obligations of such Guaranteeing Subsidiary under all its guarantees
of, and under all of its pledges of assets or other security interests which
secure, Indebtedness of the Company shall also terminate upon such release,
sale or transfer.

(c)           The
Trustee shall, at the Company’s expense, deliver an appropriate instrument
evidencing such release upon receipt of a request by the Company accompanied by
an Officers’ Certificate certifying as to the compliance with this Section 

 4
 

4. If such Guaranteeing
Subsidiary is not so released it remains liable for the full amount of
principal of and interest on the Notes as provided in this the Supplemental
Indenture.

5.             NO
RECOURSE AGAINST OTHERS. No past, present or future director, officer,
employee, incorporator, stockholder or agent of any Guaranteeing Subsidiary, as
such, shall have any liability for any obligations of the Company or any
Guaranteeing Subsidiary under the Notes, any Note Guarantees, the Indenture or
this Supplemental Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of the Notes by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Notes.

6.             NEW
YORK LAW TO GOVERN. THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

7.             COUNTERPARTS.
The parties may sign any number of copies of this Supplemental Indenture. Each
signed copy shall be an original, but all of them together represent the same
agreement.

8.             EFFECT
OF HEADINGS. The Section headings herein are for convenience only and shall not
affect the construction hereof.

9.             THE
TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for
or in respect of the recitals contained herein, all of which recitals are made
solely by each Guaranteeing Subsidiary and the Company.

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

[Signature
Pages Follow]

 5

	
  

  	
  PROTECTION ONE ALARM

  MONITORING, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  PROTECTION ONE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  NETWORK MULTI-FAMILY

  SECURITY CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  PROTECTION ONE SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  PROTECTION ONE DATA SERVICES,

  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  SECURITY MONITORING SERVICES,

  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  

 

 

	
  

  	
  PROTECTION ONE ALARM

  MONITORING OF MASS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  INTEGRATED ALARM SERVICES

  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  CRITICOM INTERNATIONAL

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  MONITAL SIGNAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  INTEGRATED ALARM SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  AMERICAN HOME SECURITY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  NATIONAL ALARM COMPUTER

  CENTER INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  EVEREST VIDEO SYSTEMS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric A. Devin

  
	
   

  	
  Name:

  	
  Eric A. Devin

  
	
   

  	
  Title:

  	
  Treasurer & Assistant Secretary

  

 

 

	
  BANK OF NEW YORK TRUST
  COMPANY, N.A., as Trustee

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Melonee Young

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Melonee Young

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice PresidentExhibit 4.7

ISOLAGEN,
INC.

and

                                                       ,
as Trustee

INDENTURE

Dated as of                            

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  CROSS-REFERENCE TABLE

  	
   

  	
  vi

  
	
  RECITALS OF THE COMPANY

  	
   

  	
  1

  
	
  ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  	
  1

  
	
  1.1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
  1.2.

  	
   

  	
  OTHER DEFINITIONS

  	
   

  	
  5

  
	
  1.3.

  	
   

  	
  INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT

  	
   

  	
  6

  
	
  1.4.

  	
   

  	
  RULES OF CONSTRUCTION

  	
   

  	
  6

  
	
  ARTICLE 2 THE SECURITIES

  	
   

  	
  7

  
	
  2.1.

  	
   

  	
  ISSUABLE IN SERIES

  	
   

  	
  7

  
	
  2.2.

  	
   

  	
  ESTABLISHMENT OF TERMS OF SERIES OF SECURITIES

  	
   

  	
  7

  
	
  2.3.

  	
   

  	
  EXECUTION AND AUTHENTICATION

  	
   

  	
  9

  
	
  2.4.

  	
   

  	
  REGISTRAR AND PAYING AGENT

  	
   

  	
  10

  
	
  2.5.

  	
   

  	
  PAYING AGENT TO HOLD ASSETS IN TRUST

  	
   

  	
  11

  
	
  2.6.

  	
   

  	
  SECURITYHOLDER LISTS

  	
   

  	
  11

  
	
  2.7.

  	
   

  	
  TRANSFER AND EXCHANGE

  	
   

  	
  12

  
	
  2.8.

  	
   

  	
  REPLACEMENT SECURITIES

  	
   

  	
  12

  
	
  2.9.

  	
   

  	
  OUTSTANDING SECURITIES

  	
   

  	
  13

  
	
  2.10.

  	
   

  	
  TREASURY
  SECURITIES; DETERMINATION OF HOLDERS’ ACTION

  	
   

  	
  13

  
	
  2.11.

  	
   

  	
  TEMPORARY SECURITIES

  	
   

  	
  13

  
	
  2.12.

  	
   

  	
  CANCELLATION

  	
   

  	
  14

  
	
  2.13.

  	
   

  	
  PAYMENT OF
  INTEREST; DEFAULTED INTEREST; COMPUTATION OF INTEREST

  	
   

  	
  14

  
	
  2.14.

  	
   

  	
  CUSIP NUMBER

  	
   

  	
  15

  
	
  2.15.

  	
   

  	
  PROVISIONS FOR
  GLOBAL SECURITIES

  	
   

  	
  15

  
	
  2.16.

  	
   

  	
  PERSONS DEEMED
  OWNERS

  	
   

  	
  16

  
	
  ARTICLE 3 REDEMPTION

  	
   

  	
  16

  
	
  3.1.

  	
   

  	
  NOTICES TO TRUSTEE

  	
   

  	
  16

  
	
  3.2.

  	
   

  	
  SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED

  	
   

  	
  17

  
	
  3.3.

  	
   

  	
  NOTICE OF REDEMPTION

  	
   

  	
  17

  
							

 

 ii
 

 

	
  3.4.

  	
   

  	
  EFFECT OF NOTICE OF REDEMPTION

  	
   

  	
  18

  
	
  3.5.

  	
   

  	
  DEPOSIT OF REDEMPTION PRICE

  	
   

  	
  18

  
	
  3.6.

  	
   

  	
  SECURITIES REDEEMED IN PART

  	
   

  	
  18

  
	
  ARTICLE 4 COVENANTS

  	
   

  	
  19

  
	
  4.1.

  	
   

  	
  PAYMENT OF SECURITIES

  	
   

  	
  19

  
	
  4.2.

  	
   

  	
  SEC REPORTS

  	
   

  	
  19

  
	
  4.3.

  	
   

  	
  WAIVER OF STAY, EXTENSION OR USURY LAWS

  	
   

  	
  19

  
	
  4.4.

  	
   

  	
  COMPLIANCE CERTIFICATE

  	
   

  	
  19

  
	
  4.5.

  	
   

  	
  CORPORATE EXISTENCE

  	
   

  	
  20

  
	
  ARTICLE 5 SUCCESSOR CORPORATION

  	
   

  	
  20

  
	
  5.1.

  	
   

  	
  LIMITATION ON CONSOLIDATION, MERGER AND SALE OF
  ASSETS

  	
   

  	
  20

  
	
  5.2.

  	
   

  	
  SUCCESSOR PERSON SUBSTITUTED

  	
   

  	
  21

  
	
  ARTICLE 6 DEFAULTS AND REMEDIES

  	
   

  	
  21

  
	
  6.1.

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  21

  
	
  6.2.

  	
   

  	
  ACCELERATION

  	
   

  	
  22

  
	
  6.3.

  	
   

  	
  REMEDIES

  	
   

  	
  23

  
	
  6.4.

  	
   

  	
  WAIVER OF PAST DEFAULTS AND EVENTS OF DEFAULT

  	
   

  	
  23

  
	
  6.5.

  	
   

  	
  CONTROL BY MAJORITY

  	
   

  	
  24

  
	
  6.6.

  	
   

  	
  LIMITATION ON SUITS

  	
   

  	
  24

  
	
  6.7.

  	
   

  	
  RIGHTS OF HOLDERS TO RECEIVE PAYMENT

  	
   

  	
  24

  
	
  6.8.

  	
   

  	
  COLLECTION SUIT BY TRUSTEE

  	
   

  	
  25

  
	
  6.9.

  	
   

  	
  TRUSTEE MAY FILE PROOFS OF CLAIM

  	
   

  	
  25

  
	
  6.10.

  	
   

  	
  PRIORITIES

  	
   

  	
  25

  
	
  6.11.

  	
   

  	
  UNDERTAKING FOR
  COSTS

  	
   

  	
  26

  
	
  ARTICLE 7 TRUSTEE

  	
   

  	
  26

  
	
  7.1.

  	
   

  	
  DUTIES OF TRUSTEE

  	
   

  	
  26

  
	
  7.2.

  	
   

  	
  RIGHTS OF TRUSTEE

  	
   

  	
  27

  
	
  7.3.

  	
   

  	
  INDIVIDUAL RIGHTS OF TRUSTEE

  	
   

  	
  28

  
	
  7.4.

  	
   

  	
  TRUSTEE’S DISCLAIMER

  	
   

  	
  28

  
	
  7.5.

  	
   

  	
  NOTICE OF DEFAULT

  	
   

  	
  28

  
	
  7.6.

  	
   

  	
  REPORTS BY TRUSTEE TO HOLDERS

  	
   

  	
  29

  
	
  7.7.

  	
   

  	
  COMPENSATION AND INDEMNITY

  	
   

  	
  29

  

 

 iii
 

 

	
  7.8.

  	
   

  	
  REPLACEMENT OF TRUSTEE

  	
   

  	
  30

  
	
  7.9.

  	
   

  	
  SUCCESSOR TRUSTEE BY CONSOLIDATION, MERGER OR
  CONVERSION

  	
   

  	
  30

  
	
  7.10.

  	
   

  	
  ELIGIBILITY;
  DISQUALIFICATION

  	
   

  	
  31

  
	
  7.11.

  	
   

  	
  PREFERENTIAL
  COLLECTION OF CLAIMS AGAINST COMPANY

  	
   

  	
  31

  
	
  7.12.

  	
   

  	
  PAYING AGENT

  	
   

  	
  31

  
	
  ARTICLE 8 AMENDMENTS, SUPPLEMENTS AND WAIVERS

  	
   

  	
  31

  
	
  8.1.

  	
   

  	
  WITHOUT CONSENT OF HOLDERS

  	
   

  	
  32

  
	
  8.2.

  	
   

  	
  WITH CONSENT OF HOLDERS

  	
   

  	
  32

  
	
  8.3.

  	
   

  	
  COMPLIANCE WITH TRUST INDENTURE ACT

  	
   

  	
  33

  
	
  8.4.

  	
   

  	
  REVOCATION AND EFFECT OF CONSENTS

  	
   

  	
  34

  
	
  8.5.

  	
   

  	
  NOTATION ON OR EXCHANGE OF SECURITIES

  	
   

  	
  34

  
	
  8.6.

  	
   

  	
  TRUSTEE TO SIGN AMENDMENTS, ETC.

  	
   

  	
  34

  
	
  ARTICLE 9 DISCHARGE OF INDENTURE; DEFEASANCE

  	
   

  	
  35

  
	
  9.1.

  	
   

  	
  DISCHARGE OF INDENTURE

  	
   

  	
  35

  
	
  9.2.

  	
   

  	
  LEGAL DEFEASANCE

  	
   

  	
  35

  
	
  9.3.

  	
   

  	
  COVENANT DEFEASANCE

  	
   

  	
  35

  
	
  9.4.

  	
   

  	
  CONDITIONS TO LEGAL DEFEASANCE OR COVENANT
  DEFEASANCE

  	
   

  	
  36

  
	
  9.5.

  	
   

  	
  DEPOSITED MONEY AND U.S. AND FOREIGN GOVERNMENT OBLIGATIONS
  TO BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS

  	
   

  	
  37

  
	
  9.6.

  	
   

  	
  REINSTATEMENT

  	
   

  	
  38

  
	
  9.7.

  	
   

  	
  MONEYS HELD BY PAYING AGENT

  	
   

  	
  38

  
	
  9.8.

  	
   

  	
  MONEYS HELD BY TRUSTEE

  	
   

  	
  38

  
	
  ARTICLE 10 MISCELLANEOUS

  	
   

  	
  39

  
	
  10.1.

  	
   

  	
  TRUST INDENTURE
  ACT CONTROLS

  	
   

  	
  39

  
	
  10.2.

  	
   

  	
  NOTICES

  	
   

  	
  39

  
	
  10.3.

  	
   

  	
  COMMUNICATIONS
  BY HOLDERS WITH OTHER HOLDERS

  	
   

  	
  40

  
	
  10.4.

  	
   

  	
  CERTIFICATE AND
  OPINION AS TO CONDITIONS PRECEDENT

  	
   

  	
  40

  
	
  10.5.

  	
   

  	
  STATEMENT
  REQUIRED IN CERTIFICATE AND OPINION

  	
   

  	
  41

  
	
  10.6.

  	
   

  	
  RULES BY TRUSTEE
  AND AGENTS

  	
   

  	
  41

  

 

 iv
 

 

	
  10.7.

  	
   

  	
  BUSINESS DAYS; LEGAL HOLIDAYS; PLACE OF PAYMENT

  	
   

  	
  41

  
	
  10.8.

  	
   

  	
  GOVERNING LAW

  	
   

  	
  41

  
	
  10.9.

  	
   

  	
  NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS

  	
   

  	
  42

  
	
  10.10.

  	
   

  	
  NO RECOURSE AGAINST OTHERS

  	
   

  	
  42

  
	
  10.11.

  	
   

  	
  SUCCESSORS

  	
   

  	
  42

  
	
  10.12.

  	
   

  	
  MULTIPLE COUNTERPARTS

  	
   

  	
  42

  
	
  10.13.

  	
   

  	
  TABLE OF CONTENTS, HEADINGS, ETC.

  	
   

  	
  42

  
	
  10.14.

  	
   

  	
  SEVERABILITY

  	
   

  	
  42

  
	
  10.15.

  	
   

  	
  SECURITIES IN A FOREIGN CURRENCY OR IN EURO

  	
   

  	
  42

  
	
  10.16.

  	
   

  	
  JUDGMENT CURRENCY

  	
   

  	
  43

  

 

 v
 

CROSS-REFERENCE TABLE

 vi

INDENTURE, dated as of                         ,             ,
by and between Isolagen, Inc., a corporation duly organized and existing under
the laws of the State of Delaware, as Issuer (the “Company”) and                                   ,
a                              
organized under the laws of                           ,
as Trustee (the “Trustee”).

RECITALS
OF THE COMPANY

The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its debentures,
notes or other evidences of indebtedness to be issued in one or more series
(the “Securities”), as herein provided, up to such principal amount as may from
time to time be authorized in or pursuant to one or more resolutions of the
Board of Directors or by supplemental indenture.

All things necessary to make this Indenture a valid agreement of the
Company in accordance with its terms have been done, and the execution and
delivery thereof have been in all respects duly authorized by the parties hereto.

NOW, THEREFORE, THIS INDENTURE
WITNESSETH:

For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually agreed, for the equal and
proportionate benefit of all Holders of the Securities of a Series thereof, as
follows:

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

1.1.          DEFINITIONS.

“Affiliate” of any specified Person means any other Person which
directly or indirectly through one or more intermediaries controls, or is
controlled by, or is under common control with, such specified Person. For the
purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling,” “controlled by,” and “under common control with”), as
used with respect to any Person, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of
such Person, whether through the ownership of voting securities, by agreement
or otherwise.

“Agent” means any Registrar, Paying Agent, co-registrar or agent for
service of notices and demands.

“Board of Directors” means the Board of Directors of the Company or any
committee duly authorized to act therefor.

“Board Resolution” means a copy of a resolution certified pursuant to
an Officers’ Certificate to have been duly adopted by the Board of Directors of
the Company and to be in full force and effect on the date of such
certification and delivered to the Trustee.

“Capital Stock” means, with respect to any Person, any and all shares
or other equivalents (however designated) of capital stock, partnership
interests or any other participation, right or other interest in the nature of
an equity interest in such Person or any option, warrant or other security
convertible into any of the foregoing.

“Company” means the party named as such in the first paragraph of this
Indenture until a successor replaces such party pursuant to Article 5 of this
Indenture and thereafter means the successor and any other primary obligor on
the Securities.

“Company Order” means a written order signed in the name of the Company
by two Officers, one of whom must be its Chief Executive Officer or its Chief
Financial Officer.

“Company Request” means any written request signed in the name of the
Company by its Chief Executive Officer, its President, any Vice President, its
Chief Financial Officer or its Treasurer and attested to by the Secretary or
any Assistant Secretary of the Company.

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

“Default” means any event that is, or with the passing of time or
giving of notice or both would be, an Event of Default.

“Depository” means, with respect to the Securities of any Series
issuable or issued in whole or in part in the form of one or more Global
Securities, the Person designated as Depository for such Series by the Company,
which Depository shall be a clearing agency registered under the Exchange Act,
until a successor Depository shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Depository” shall mean each
Person who is then a Depository hereunder, and if at any time there is more
than one such Person, such Persons.

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

“Euro” means the single currency to be introduced at the start of the
third stage of economic and monetary union pursuant to the treaty establishing
the European Economic Community, as amended by the Treaty on European Union
signed at Maastricht on February 7, 1992.

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

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

“Foreign Government Obligations” means with respect to Securities of
any Series that are denominated in a Foreign Currency, (i) direct obligations
of the government that issued or caused to be issued such currency for the
payment of which obligations its full faith and credit is pledged or (ii)
obligations of a Person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is
unconditionally guaranteed

 2
 

as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not callable
or redeemable at the option of the issuer thereof.

“GAAP” means generally accepted accounting principles consistently
applied as in effect in the United States from time to time.

“Global Security” or “Global Securities” means a Security or
Securities, as the case may be, in the form established pursuant to Section
2.2, evidencing all or part of a Series of Securities issued to the Depository
for such Series or its nominee, and registered in the name of such Depository
or nominee, and bearing the legend set forth in Section 2.15(c) (or such legend
as may be specified as contemplated by Section 2.2 for such Securities).

“Holder” or “Securityholder” means the Person in whose name a Security
is registered on the Registrar’s books.

“Indebtedness” means (without duplication), with respect to any Person,
any indebtedness at any time outstanding, secured or unsecured, contingent or
otherwise, which is for borrowed money (whether or not the recourse of the
lender is to the whole of the assets of such Person or only to a portion
thereof), or evidenced by bonds, notes, debentures or similar instruments or
representing the balance deferred and unpaid of the purchase price of any
property (excluding any balances that constitute accounts payable or trade
payables, and other accrued liabilities arising in the ordinary course of
business) if and to the extent any of the foregoing indebtedness would appear
as a liability upon a balance sheet of such Person prepared in accordance with
GAAP.

“Indenture” means this Indenture as amended, restated or supplemented
from time to time.

“Interest Payment Date” when used with respect to any Security, means
the Stated Maturity of an installment of interest on such Security.

“Lien” means, with respect to any property or assets of any Person, any
mortgage or deed of trust, pledge, hypothecation, assignment, deposit
arrangement, security interest, lien, charge, easement, encumbrance,
preference, priority, or other security agreement or preferential arrangement
of any kind or nature whatsoever on or with respect to such property or assets
(including, without limitation, any capitalized lease obligation, conditional
sales, or other title retention agreement having substantially the same
economic effect as any of the foregoing).

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

“Officer” means the Chief Executive Officer, the President, any Vice
President, the Chief Financial Officer, the Treasurer or the Secretary of the
Company or any other officer designated by the Board of Directors, as the case
may be.

 3
 

“Officers’ Certificate” means, with respect to any Person, a
certificate signed by the Chairman, Chief Executive Officer, the President or
any Senior or Executive Vice President, and the Chief Financial Officer or any
Treasurer of such Person that shall comply with applicable provisions of this
Indenture.

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

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

“Redemption Date,” when used with respect to any Security of a Series
to be redeemed, means the date fixed for such redemption pursuant to this
Indenture.

“Responsible Officer” when used with respect to the Trustee, means any
officer within the corporate trust department or division of the Trustee (or
any successor group of the Trustee) or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.

“SEC” means the United States Securities and Exchange Commission as
constituted from time to time or any successor performing substantially the
same functions.

“Securities” means the securities that are issued under this Indenture,
as amended or supplemented from time to time pursuant to this Indenture.

“Securities Act” means the Securities Act of 1933, as amended.

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

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

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

 4
 

“Subsidiary” of any specified Person means any corporation, limited
liability company, partnership, joint venture, association or other business
entity, whether now existing or hereafter organized or acquired, (i) in the
case of a corporation, of which more than 50% of the total voting power of the
Capital Stock entitled (without regard to the occurrence of any contingency) to
vote in the election of directors thereof is held, directly or indirectly by
such Person or any of its Subsidiaries; or (ii) in the case of a partnership,
joint venture, association or other business entity, with respect to which such
Person or any of its Subsidiaries has the power to direct or cause the
direction of the management and policies of such entity by contract or
otherwise or if in accordance with GAAP such entity is consolidated with such
Person for financial statement purposes.

“TIA” means the Trust Indenture Act of 1939 as in effect on the date of
this Indenture (except as provided in Section 8.3 hereof).

“Trustee” means the party named as such in this Indenture until a
successor replaces it pursuant to this Indenture and thereafter means the
successor, and if at any time there is more than one such Person, “Trustee” as
used with respect to the Securities of any Series shall mean the Trustee with
respect to Securities of that Series.

“U.S. Government Obligations” means direct non-callable obligations of,
or non-callable obligations guaranteed by, the United States of America for the
payment of which obligation or guarantee the full faith and credit of the
United States of America is pledged.

1.2.          OTHER DEFINITIONS.

The definitions of the following terms may be found in the sections
indicated as follows:

	
  TERM

  	
   

  	
  DEFINED IN SECTION

  	
   

  
	
  “Bankruptcy Law”

  	
   

  	
  6.1

  	
   

  
	
  “Business Day”

  	
   

  	
  10.7

  	
   

  
	
  “Covenant
  Defeasance”

  	
   

  	
  9.3

  	
   

  
	
  “Custodian”

  	
   

  	
  6.1

  	
   

  
	
  “Event of
  Default”

  	
   

  	
  6.1

  	
   

  
	
  “Journal”

  	
   

  	
  10.15

  	
   

  
	
  “Judgment
  Currency”

  	
   

  	
  10.16

  	
   

  
	
  “Legal
  Defeasance”

  	
   

  	
  9.2

  	
   

  
	
  “Legal Holiday”

  	
   

  	
  10.7

  	
   

  
	
  “Market Exchange
  Rate”

  	
   

  	
  10.15

  	
   

  
	
  “New York
  Banking Day”

  	
   

  	
  10.16

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.4

  	
   

  
	
  “Place of
  Payment”

  	
   

  	
  10.7

  	
   

  

 

 5
 

 

	
  TERM

  	
   

  	
  DEFINED IN SECTION

  	
   

  
	
  “Registrar”

  	
   

  	
  2.4

  	
   

  
	
  “Required Currency”

  	
   

  	
  10.16

  	
   

  
	
  “Service Agent”

  	
   

  	
  2.4

  	
   

  

 

1.3.          INCORPORATION BY
REFERENCE OF TRUST INDENTURE ACT.

Whenever this Indenture refers to a provision of the TIA, the portion
of such provision required to be incorporated herein in order for this
Indenture to be qualified under the TIA is incorporated by reference in and made
a part of this Indenture. The following TIA terms used in this Indenture have
the following meanings:

“Commission” means the SEC.

“indenture securities” means the Securities.

“indenture securityholder” means a Holder or Securityholder.

“indenture to be qualified” means this Indenture.

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

“obligor on the indenture securities” means the Company.

All other terms used in this Indenture that are defined by the TIA,
defined in the TIA by reference to another statute or defined by SEC rule have
the meanings therein assigned to them.

1.4.          RULES OF CONSTRUCTION.

Unless the context otherwise requires:

(1) a term has the meaning assigned to it herein, whether defined
expressly or by reference;

(2) an accounting term not otherwise defined has the meaning assigned
to it in accordance with GAAP;

(3) “or” is not exclusive;

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

(5) words used herein implying any gender shall apply to each gender;
and

(6) 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.

 6
 

ARTICLE 2

THE
SECURITIES

2.1.          ISSUABLE IN SERIES.

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

2.2.          ESTABLISHMENT OF TERMS
OF SERIES OF SECURITIES.

At or prior to the issuance of any Securities within a Series, the
following shall be established [(as to the Series generally, in the case of
Subsection 2.2(1) and either as to such Securities within the Series or as to
the Series generally in the case of Subsections 2.2(2) through 2.2(24)] by a
Board Resolution, a supplemental indenture or an Officers’ Certificate, in each
case, pursuant to authority granted under a Board Resolution:

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

(2) any limit upon the aggregate principal
amount of the Securities of the Series which may be authenticated and delivered
under this Indenture (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 8.5);

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

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

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

 7
 

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

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

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

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

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

(11) the forms of the Securities of the
Series in bearer (if to be issued outside of the United States) or fully
registered form (and, if in fully registered form, whether the Securities will
be issuable as Global Securities);

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

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

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

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

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

 8
 

(17) the provisions, if any, relating to any
collateral provided for the Securities of the Series;

(18) any addition to or change in the
covenants set forth in Articles 4 or 5 that applies to Securities of the
Series;

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

(20) the terms and conditions, if any, for
conversion of the Securities into or exchange of the Securities for shares of
common stock or preferred stock of the Company that apply to Securities of the
Series;

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

(22) the terms and conditions, if any, upon
which the Securities shall be subordinated in right of payment to other
Indebtedness of the Company;

(23) if applicable, that the Securities of
the Series, in whole or any specified part, shall be defeasible pursuant to
Article 9; and

(24) any other terms of the Securities of the
Series (which terms shall not be inconsistent with the provisions of this
Indenture, except as permitted by Section 8.1, but which may modify or delete
any provision of this Indenture insofar as it applies to such Series).

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

2.3.          EXECUTION AND AUTHENTICATION.

The Securities shall be executed on behalf of the Company by two
Officers of the Company or an Officer and an Assistant Secretary of the
Company. Each such signature may be either manual or facsimile. The Company’s
seal may be impressed, affixed, imprinted or reproduced on the Securities and
may be in facsimile form.

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

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

 9
 

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

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

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

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

The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Securities. An authenticating agent may authenticate
Securities whenever the Trustee may do so. Any appointment shall be evidenced
by instrument signed by an authorized officer of the Trustee, a copy of which
shall be furnished to the Company. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with the Company
or an Affiliate of the Company.

2.4.          REGISTRAR AND PAYING AGENT.

The Company shall maintain in each Place of Payment for any Series of
Securities (i) an office or agency where such Securities may be presented for
registration of transfer or for exchange (“Registrar”), (ii) an office or
agency where such Securities may be presented for payment (“Paying Agent”),
provided, that at the option of the Company payment of interest may be made by
check mailed to the address of the Person entitled thereto as such address
shall appear in the register for the Securities maintained by the Registrar,
and (iii) an office or agency where notices and demands to or upon the Company
in respect of the Securities and this Indenture may be served (“Service Agent”).
The Registrar shall keep a register of the Securities and of their transfer and
exchange. The Company may have one or more co-registrars and one or more
additional paying agents. The Company shall give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency. If at any time the

 10
 

Company shall fail to maintain any such required
office or to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the
Trustee as set forth in Section 10.2. If the Company acts as Paying Agent, it
shall segregate the money held by it for the payment of principal of and
premium, if any, and interest on the Securities and hold it as a separate trust
fund. The Company may change any Paying Agent, Registrar or co-registrar
without notice to any Securityholder.

The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in each
Place of Payment for Securities of any series for such purposes. The Company
shall give prompt written notice to the Trustee of such designation or
rescission and of any change in the location of any such other office or
agency.

The Company shall enter into an appropriate agency agreement with any
Registrar or Paying Agent not a party to this Indenture. The agreement shall
implement the provisions of this Indenture that relate to such Agent. The
Company shall notify the Trustee of the name and address of any such Agent. If
the Company fails to maintain a Registrar or Paying Agent, or agent for service
of notices and demands, or fails to give the foregoing notice, the Trustee
shall act as such. The Company hereby appoints the Trustee as the initial
Registrar, Paying Agent and Service Agent for each Series unless another
Registrar, Paying Agent or Service Agent, as the case may be, is appointed
prior to the time Securities of that Series are first issued. The Company
hereby initially designates the Corporate Trust Office of the Trustee as such
office of the Company.

2.5.          PAYING AGENT TO HOLD ASSETS IN TRUST.

The Trustee as Paying Agent shall, and the Company shall require each
Paying Agent other than the Trustee to agree in writing that each Paying Agent
shall hold in trust for the benefit of the Holders of any Series of Securities
or the Trustee all assets held by the Paying Agent for the payment of principal
of, or interest or premium (if any) on, such Series of Securities (whether such
assets have been distributed to it by the Company or any other obligor on such
Series of Securities), and the Company and the Paying Agent shall notify the
Trustee in writing of any Default by the Company (or any other obligor on such
Series of Securities) in making any such payment. The Company at any time may
require a Paying Agent to distribute all assets held by it to the Trustee and
account for any assets disbursed and the Trustee may at any time during the
continuance of any payment default with respect to any Series of Securities,
upon written request to a Paying Agent, require such Paying Agent to distribute
all assets held by it to the Trustee and to account for any assets distributed.
Upon distribution to the Trustee of all assets that shall have been delivered
by the Company to the Paying Agent, the Paying Agent shall have no further
liability for such assets.

2.6.          SECURITYHOLDER LISTS.

The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of

 11
 

Securities. If the Trustee is not the Registrar, the
Company shall furnish to the Trustee as of each regular record date for the
payment of interest on the Securities of a Series and before each related
Interest Payment Date, and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Securityholders of each Series of
Securities.

2.7.          TRANSFER AND EXCHANGE.

When Securities of a Series are presented to the Registrar with a
request to register the transfer thereof, the Registrar shall register the
transfer as requested if the requirements of applicable law are met, and when
such Securities of a Series are presented to the Registrar with a request to
exchange them for an equal principal amount of other authorized denominations
of Securities of the same Series, the Registrar shall make the exchange as
requested. To permit transfers and exchanges, upon surrender of any Security
for registration of transfer at the office or agency maintained pursuant to
Section 2.4 hereof, the Company shall execute and the Trustee shall authenticate
Securities at the Registrar’s request.

If Securities are issued as Global Securities, the provisions of
Section 2.15 shall apply.

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

Every Security presented or surrendered for registration of transfer or
for exchange shall (if so required by the Company or the Registrar or a
co-Registrar) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Registrar or a
co-Registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing.

Any exchange or transfer shall be without charge, except that the
Company may require payment by the Holder of a sum sufficient to cover any tax
or other governmental charge that may be imposed in relation to a transfer or
exchange, but this provision shall not apply to any exchange pursuant to
Section 2.11, 3.6 or 8.5 hereof. The Trustee shall not be required to register
transfers of Securities of any Series or to exchange Securities of any Series
for a period of 15 days before the record date for selection for redemption of
such Securities. The Trustee shall not be required to exchange or register
transfers of Securities of any Series called or being called for redemption in
whole or in part, except the unredeemed portion of such Security being redeemed
in part.

2.8.          REPLACEMENT SECURITIES.

If a mutilated Security is surrendered to the Trustee or if the Holder
of a Security presents evidence to the satisfaction of the Company and the
Trustee that the Security has been lost, destroyed or wrongfully taken, the
Company shall issue and the Trustee shall authenticate a replacement Security
of the same Series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding. An indemnity bond may be required by the
Company or the Trustee that is sufficient in the reasonable judgment of the
Company or the Trustee, as the case may be, to protect the Company, the Trustee
or any Agent from any loss

 12
 

which any of them may suffer if a Security is replaced.
The Company may charge such Holder for its out-of-pocket expenses in replacing
a Security, including the fees and expenses of the Trustee. Every replacement
Security shall constitute an original additional obligation of the Company,
whether or not the destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of that
Series duly issued hereunder.

2.9.          OUTSTANDING SECURITIES.

Securities outstanding at any time are all Securities authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation, and those described in this Section 2.9 as not outstanding.

If a Security is replaced pursuant to Section 2.8 (other than a
mutilated Security surrendered for replacement), it ceases to be outstanding
until the Company and the Trustee receive proof satisfactory to each of them
that the replaced Security is held by a bona fide purchaser. A mutilated
Security ceases to be outstanding upon surrender of such Security and
replacement thereof pursuant to Section 2.8.

If a Paying Agent holds on a Redemption Date or the Stated Maturity
money sufficient to pay the principal of, premium, if any, and accrued interest
on Securities payable on that date and is not prohibited from paying such money
to the Holders thereof pursuant to the terms of this Indenture (provided that,
if such Securities are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made), then on and after that date such Securities cease to be
outstanding and interest on them ceases to accrue.

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

2.10.        TREASURY SECURITIES; DETERMINATION OF HOLDERS’
ACTION.

In determining whether the Holders of the required aggregate principal
amount of the Securities of any Series have concurred in any direction, waiver
or consent, the Securities of any Series owned by the Company or any other
obligor on such Securities or by any Affiliate of any of them shall be
disregarded, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities of such Series which the Trustee actually knows are so owned shall
be so disregarded. Securities of such Series so owned which have been pledged
in good faith shall not be disregarded if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to the
Securities of such Series and that the pledgee is not the Company or any other
obligor upon the Securities of such Series or any Affiliate of any of them.

2.11.        TEMPORARY SECURITIES.

Until definitive Securities are ready for delivery, the Company may
prepare and execute and the Trustee shall authenticate temporary Securities.
Temporary Securities shall be substantially in the form, and shall carry all
rights, of definitive Securities but may have

 13
 

variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and
execute and the Trustee shall authenticate definitive Securities in exchange
for temporary Securities presented to it without charge to the Holder.

2.12.        CANCELLATION.

All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
for cancellation. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold. The Registrar and the Paying Agent shall forward
to the Trustee any Securities surrendered to them for transfer, exchange or
payment. The Trustee or, at the direction of the Trustee, the Registrar or the
Paying Agent, and no one else, shall cancel and at the written request of the
Company, shall dispose of all Securities surrendered for transfer, exchange,
payment or cancellation. If the Company shall acquire any of the Securities,
such acquisition shall not operate as a redemption or satisfaction of the
Indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.12. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section 2.12, except as expressly permitted by
this Indenture.

2.13.        PAYMENT OF INTEREST; DEFAULTED INTEREST;
COMPUTATION OF INTEREST.

Except as otherwise provided as contemplated by Section 2.2 with
respect to any Series of Securities, interest on any Security which 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 Security is registered at the close of
business on the regular record date for such interest, as provided in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate establishing
the terms of such Series.

If the Company defaults in a payment of interest on the Securities, it
shall pay the defaulted amounts, plus any interest payable on defaulted amounts
pursuant to Section 4.1 hereof, to the Persons who are Securityholders on a
subsequent special record date, which date shall be the fifteenth day next
preceding the date fixed by the Company for the payment of defaulted interest
or the next succeeding Business Day if such date is not a Business Day. At
least 15 days before the special record date, the Company shall mail or cause
to be mailed to each Securityholder, with a copy to the Trustee, a notice that
states the special record date, the payment date, and the amount of defaulted
interest, and interest payable on such defaulted interest, if any, to be paid.

Except as otherwise specified as contemplated by Section 2.2 for
Securities of any Series, interest on the Securities of each Series shall be
computed on the basis of a 360-day year of twelve 30-day months.

 14
 

2.14.        CUSIP NUMBER.

The Company in issuing the Securities may use one or more “CUSIP”
numbers, and if so, the Trustee shall use the CUSIP number(s) in notices of
redemption or exchange as a convenience to Holders, provided that any such
notice may state that no representation is made as to the correctness or
accuracy of the CUSIP number(s) printed in the notice or on the Securities, 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 any such numbers.

2.15.        PROVISIONS FOR GLOBAL SECURITIES.

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

(b) Notwithstanding any provisions to the
contrary contained in Section 2.7 of the Indenture and in addition thereto, if,
and only if the Depository (i) at any time is unwilling or unable to continue
as Depository for such Global Security or ceases to be a clearing agency
registered under the Exchange Act and (ii) a successor Depository is not
appointed by the Company within 90 days after the date the Company is so
informed in writing or becomes aware of the same, the Company promptly will
execute and deliver to the Trustee definitive Securities, and the Trustee, upon
receipt of a Company Request for the authentication and delivery of such
definitive Securities (which the Company will promptly execute and deliver to
the Trustee) and an Officers’ Certificate to the effect that such Global
Security shall be so exchangeable, will authenticate and deliver definitive
Securities, without charge, registered in such names and in such authorized
denominations as the Depository shall direct in writing (pursuant to
instructions from its direct and indirect participants or otherwise) in an
aggregate principal amount equal to the principal amount of the Global Security
with like tenor and terms. Upon the exchange of a Global Security for
definitive Securities, such Global Security shall be canceled by the Trustee.
Unless and until it is exchanged in whole or in part for definitive Securities,
as provided in this Section 2.15(b), a Global Security may not be transferred
except as a whole by the Depository with respect to such Global Security to a
nominee of such Depository, by a nominee of such Depository to such Depository
or another nominee of such Depository or by the Depository or any such nominee
to a successor Depository or a nominee of such a successor Depository.

(c) Any Global Security issued hereunder
shall bear a legend in substantially the following form:

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

 15
 

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

(e) Notwithstanding the other provisions of
this Indenture, unless otherwise specified as contemplated by Section 2.2, payment
of the principal of and interest and premium, if any, on any Global Security
shall be made to the Depository or its nominee in its capacity as the Holder
thereof.

(f) Except as provided in Section 2.15(e),
the Company, the Trustee and any Agent shall treat a Person as the Holder of
such principal amount of outstanding Securities of any Series represented by a
Global Security as shall be specified in a written statement of the Depository
(which may be in the form of a participants’ list for such Series) with respect
to such Global Security, for purposes of obtaining any consents, declarations,
waivers or directions required to be given by the Holders pursuant to this
Indenture, provided that until the Trustee is so provided with a written
statement, it may treat the Depository or any other Person in whose name a
Global Security is registered as the owner of such Global Security for the
purpose of receiving payment of principal of and any premium and (subject to
Section 2.13) any interest on such Global Security and for all other purposes
whatsoever, and neither the Company, the Trustee nor any agent of the Company
or the Trustee shall be affected by notice to the contrary.

2.16.        PERSONS DEEMED OWNERS.

Prior to due presentment of a Security for registration of transfer,
the Company, the Trustee, the Registrar and any agent of the Company, the
Registrar or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment
of principal of and any premium and (subject to Section 2.13) any interest on
such Security and for all other purposes whatsoever, and neither the Company,
the Trustee, the Registrar nor any agent of the Company, the Registrar or the
Trustee shall be affected by notice to the contrary.

ARTICLE 3

REDEMPTION

3.1.          NOTICES TO TRUSTEE.

The Company may, with respect to any Series of Securities, reserve the
right to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the Stated Maturity
thereof at such time and on such terms as provided for in such Securities or
the related Board Resolution, supplemental indenture or Officers’ Certificate.
If a Series of Securities is redeemable and the Company elects to redeem such
Securities of a Series, it shall notify the Trustee of the Redemption Date and
the principal amount of Securities to be redeemed at least 45 days (unless a
shorter notice shall be satisfactory to the Trustee) before the Redemption
Date. Any such notice may be canceled at any time prior to notice of such
redemption being mailed to any Holder and shall thereby be void and of no
effect.

 16
 

3.2.          SELECTION BY TRUSTEE OF SECURITIES TO BE
REDEEMED.

Unless otherwise indicated for a particular Series of Securities by a
Board Resolution, a supplemental indenture or an Officers’ Certificate, if
fewer than all of the Securities of a Series are to be redeemed, the Trustee
shall select the Securities of a Series to be redeemed pro rata, by lot or by
any other method that the Trustee considers fair and appropriate (unless the
Company specifically directs the Trustee otherwise) and, if such Securities are
listed on any securities exchange, by a method that complies with the
requirements of such exchange.

The Trustee shall make the selection from Securities of a Series
outstanding and not previously called for redemption and shall promptly notify
the Company in writing of the Securities selected for redemption and, in the
case of any Security selected for partial redemption, the principal amount
thereof to be redeemed at least 35 but not more than 60 days before the
Redemption Date. Securities of a Series in denominations of $1,000 may be
redeemed only in whole. The Trustee may select for redemption portions of the
principal of Securities of a Series that have denominations larger than $1,000.
Securities of a Series and portions of them it selects shall be in amounts of
$1,000 or, with respect to Securities of any Series issuable in other
denominations pursuant to Section 2.2(10), the minimum principal denomination
for each Series and integral multiples thereof. Provisions of this Indenture
that apply to Securities called for redemption also apply to portions of
Securities called for redemption.

3.3.          NOTICE OF REDEMPTION.

Unless otherwise indicated for a particular Series by Board Resolution,
a supplemental indenture hereto or an Officers’ Certificate, at least 30 days,
and no more than 60 days, before a Redemption Date, the Company shall mail, or
cause to be mailed, a notice of redemption by first-class mail to each Holder
of Securities to be redeemed at his or her last address as the same appears on
the registry books maintained by the Registrar. The notice shall identify the
Securities to be redeemed (including the CUSIP number(s) thereof, if any) and
shall state:

(1) the Redemption Date;

(2) the redemption price, and that such
redemption price shall become due and payable on the Redemption Date;

(3) if any Security of a Series is being
redeemed in part, the portion of the principal amount of such Security of a
Series to be redeemed and that, after the Redemption Date and upon surrender of
such Security of a Series, a new Security or Securities in principal amount
equal to the unredeemed portion will be issued;

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

(5) that Securities of a Series called for
redemption must be surrendered to the Paying Agent to collect the redemption
price, and the place or places where each such Security is to be surrendered
for such payment;

(6) that, unless the Company defaults in
making the redemption payment, interest on the Securities of a Series called
for redemption ceases to accrue on the Redemption Date, and

 17
 

the only remaining right of the Holders of such Securities is to
receive payment of the redemption price upon surrender to the Paying Agent of
the Securities redeemed;

(7) if fewer than all the Securities of a
Series are to be redeemed, the identification of the particular Securities of a
Series (or portion thereof) to be redeemed, as well as the aggregate principal
amount of Securities of a Series to be redeemed and the aggregate principal
amount of Securities of a Series to be outstanding after such partial
redemption.

(8) the CUSIP number, if any, printed on the
Securities being redeemed; and

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

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

3.4.          EFFECT OF NOTICE OF REDEMPTION.

Once the notice of redemption described in Section 3.3 is mailed,
Securities of a Series called for redemption become due and payable on the
Redemption Date and at the redemption price, plus interest, if any, accrued to
the Redemption Date. Upon surrender to the Trustee or Paying Agent, such
Securities of a Series shall be paid at the redemption price, plus accrued
interest, if any, to the Redemption Date, provided that if the Redemption Date
is after a regular interest payment record date and on or prior to the next
Interest Payment Date, the accrued interest shall be payable to the Holder of
the redeemed Securities registered on the relevant record date, as specified by
the Company in the notice to the Trustee pursuant to Section 3.1 hereof.

3.5.          DEPOSIT OF REDEMPTION PRICE.

On or prior to the Redemption Date (but no later than 11:00 A.M.
Eastern Time on such date), the Company shall deposit with the Paying Agent
money sufficient to pay the redemption price of and accrued interest, if any,
on all Securities to be redeemed on that date other than Securities or portions
thereof called for redemption on that date which have been delivered by the
Company to the Trustee for cancellation.

On and after any Redemption Date, if money sufficient to pay the
redemption price of and accrued interest on Securities called for redemption
shall have been made available in accordance with the preceding paragraph and
the Company and the Paying Agent are not prohibited from paying such moneys to
Holders, the Securities called for redemption will cease to accrue interest and
the only right of the Holders of such Securities will be to receive payment of
the redemption price of and, subject to the proviso in Section 3.4, accrued and
unpaid interest on such Securities to the Redemption Date. If any Security
called for redemption shall not be so paid, interest will be paid, from the
Redemption Date until such redemption payment is made, on the unpaid principal
of the Security and any interest or premium (if any) not paid on such unpaid
principal, in each case, at the rate and in the manner provided in the
Securities.

 18
 

3.6.          SECURITIES REDEEMED IN PART.

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

ARTICLE 4

COVENANTS

4.1.          PAYMENT OF SECURITIES.

The Company shall pay the principal of and interest and premium, if
any, on each Series of Securities on the dates and in the manner provided in
such Securities and this Indenture.

An installment of principal or interest shall be considered paid on the
date it is due if the Trustee or Paying Agent holds on that date money
designated for and sufficient to pay such installment and is not prohibited
from paying such money to the Holders pursuant to the terms of this Indenture
or otherwise.

The Company shall pay interest on overdue principal, and overdue
interest, to the extent lawful, at the rate specified in the Series of
Securities.

4.2.          SEC REPORTS.

The Company will deliver to the Trustee within 15 days after the filing
of the same with the SEC, copies of the quarterly and annual report and of the
information documents and other reports, if any, which the Company is required
to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act.
Notwithstanding that the Company may not be subject to the reporting requirements
of Section 13 or 15(d) of the Exchange Act, the Company will file with the SEC,
to the extent permitted, and provide the Trustee, with such quarterly and
annual reports and such information, documents and other reports specified in
Section 13 and 15(d) of the Exchange Act. The Company will also comply with the
other provisions of TIA Section 314(a).

4.3.          WAIVER OF STAY, EXTENSION OR USURY LAWS.

The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead (as a defense or otherwise) or in
any manner whatsoever claim or take the benefit or advantage of, any stay,
extension, usury or other law which would prohibit or forgive the Company from
paying all or any portion of the principal of, premium, if any, and/or interest
on the Securities as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of
this Indenture; and (to the extent that they may lawfully do so) the Company hereby
expressly waives all benefit or advantage of any such law, and covenants that
it will not hinder, delay or impede the execution of any power herein granted
to the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

 19

4.4.          COMPLIANCE CERTIFICATE.

(a) The Company shall deliver to the Trustee, within 120 days after the
end of each fiscal year of the Company, an Officers’ Certificate which complies
with TIA Section 314(a)(4) stating that a review of the activities of the Company
and its Subsidiaries during such fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and that there is no default in the performance or observance of any
of the terms, provisions and conditions hereof (or, if a Default or Event of
Default shall have occurred, describing all such Defaults or Events of Default
of which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto) and that to the best of his or her
knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest or premium, if any, on the
Securities is prohibited or if such event has occurred, a description of the
event and what action the Company is taking or proposes to take with respect
thereto.

(b) (i) If any Default or Event of Default has occurred and is
continuing or (ii) if any Holder seeks to exercise any remedy hereunder with
respect to a claimed Default under this Indenture or the Securities, within
five Business Days after its becoming aware of such occurrence the Company
shall deliver to the Trustee an Officers’ Certificate specifying such event,
notice or other action and what action the Company is taking or proposes to
take with respect thereto.

4.5.          CORPORATE EXISTENCE.

Subject to Article 5 hereof, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect its
corporate existence, in accordance with the organizational documents (as the
same may be amended from time to time) of the Company and the rights (charter
and statutory), licenses and franchises of the Company; provided, however, that
the Company shall not be required to preserve any such right, license or
franchise, or its corporate existence, if the Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct
of the business of the Company and that the loss thereof is not adverse in any
material respect to the Holders.

ARTICLE 5

SUCCESSOR
CORPORATION

5.1.          LIMITATION ON
CONSOLIDATION, MERGER AND SALE OF ASSETS.

(a) The Company will not, in any transaction or series of transactions,
merge or consolidate with or into, or sell, assign, convey, transfer, lease or
otherwise dispose of all or substantially all of its properties and assets (as
an entirety or substantially as an entirety in one transaction or a series of
related transactions), to any Person or Persons, unless at the time of and
after giving effect thereto (i) either (A) if the transaction or series of
transactions is a merger or consolidation, the Company shall be the surviving
Person of such merger or consolidation, or (B) the Person formed by such consolidation
or into which the Company is merged or to which the

 20
 

properties and
assets of the Company are transferred (any such surviving Person or transferee
Person being the “Surviving Entity”) shall be a corporation organized and
existing under the laws of the United States of America, any state thereof or
the District of Columbia or a corporation or comparable legal entity organized
under the laws of a foreign jurisdiction and shall expressly assume by a
supplemental indenture executed and delivered to the Trustee, in form
reasonably satisfactory to the Trustee, all of the obligations of the Company
(including, without limitation, the obligation to pay the principal of, and
premium and interest, if any, on the Securities and the performance of the
other covenants) under the Securities of each Series and this Indenture, and in
each case, this Indenture shall remain in full force and effect; and (ii)
immediately before and immediately after giving effect to such transaction or
series of transactions on a pro forma basis (including, without limitation, any
Indebtedness incurred or anticipated to be incurred in connection with or in
respect of such transaction or series of transactions), no Default or Event of
Default shall have occurred and be continuing.

(b) In connection with any consolidation, merger or transfer of assets
contemplated by this Section 5.1, the Company shall deliver, or cause to be
delivered, to the Trustee, in form and substance reasonably satisfactory to the
Trustee, an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger or transfer and the supplemental indenture in
respect thereto comply with this Section 5.1 and that all conditions precedent
herein provided for relating to such transaction or transactions have been
complied with.

5.2.          SUCCESSOR PERSON
SUBSTITUTED.

Upon any consolidation or merger, or any transfer of all or
substantially all of the assets of the Company in accordance with Section 5.1
above, the successor corporation formed by such consolidation or into which the
Company is merged or to which such transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor corporation had been
named as the Company herein, and thereafter (except with respect to any such
transfer which is a lease) the predecessor corporation shall be relieved of all
obligations and covenants under this Indenture and the Securities.

ARTICLE 6

DEFAULTS
AND REMEDIES

6.1.          EVENTS OF DEFAULT.

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

(1) there is a default in the payment of any principal of, or premium,
if any, on the Securities when the same becomes due and payable at Maturity,
upon acceleration, redemption or otherwise;

 21
 

(2) there is a default in the payment of any interest on any Security
of a Series when the same becomes due and payable and the Default continues for
a period of 90 days;

(3) the Company defaults in the observance or performance of any other
covenant in the Securities of a Series or this Indenture for 90 days after
written notice from the Trustee or the Holders of not less than a majority in
the aggregate principal amount of the Securities of such Series then
outstanding which notice must specify the Default, demand that it be remedied
and state the notice is a “Notice of Default”;

(4) the Company or any Significant Subsidiary pursuant to or within the
meaning of any Bankruptcy Law:

(A) commences a voluntary case,

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

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

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

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

(A) is for relief against the Company or any Significant Subsidiary in
an involuntary case;

(B) appoints a Custodian of the Company or any Significant Subsidiary
or for all or substantially all of the property of the Company or any
Significant Subsidiary; or

(C) orders the liquidation of the Company or any Significant
Subsidiary, and the order or decree remains unstayed and in effect for 90
consecutive days; or

(6) any other Event of Default provided with respect to Securities of
that Series, which is specified in a Board Resolution, a supplemental indenture
hereto or an Officers’ Certificate, in accordance with Section 2.2(19).

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

The Trustee may withhold notice of any Default (except in payment of
principal or premium, if any, or interest on the Securities) to the Holders of
the Securities of any Series in accordance with Section 7.5. When a Default is
cured, it ceases to exist.

 22
 

6.2.          ACCELERATION.

If an Event of Default with respect to Securities of any Series at the
time outstanding (other than an Event of Default arising under Section 6.1(4)
or (5)) occurs and is continuing, the Trustee by written notice to the Company,
or the Holders of not less than a majority in aggregate principal amount of the
Securities of that Series then outstanding may by written notice to the Company
and the Trustee declare that the entire principal amount of all the Securities
of that Series then outstanding plus accrued and unpaid interest to the date of
acceleration are immediately due and payable, in which case such amounts shall
become immediately due and payable; provided, however, that after such
acceleration but before a judgment or decree based on such acceleration is
obtained by the Trustee, the Holders of a majority in aggregate principal
amount of the outstanding Securities of that Series may rescind and annul such
acceleration and its consequences if (i) all existing Events of Default, other
than the nonpayment of accelerated principal, premium, if any, or interest that
has become due solely because of the acceleration, have been cured or waived,
(ii) to the extent the payment of such interest is lawful, interest on overdue
installments of interest and overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid and (iii) the
rescission would not conflict with any judgment or decree. No such rescission
shall affect any subsequent Default or impair any right consequent thereto. In
case an Event of Default specified in Section 6.1(4) or (5) with respect to the
Company occurs, such principal, premium, if any, and interest amount with
respect to all of the Securities of that Series shall be due and payable
immediately without any declaration or other act on the part of the Trustee or
the Holders of the Securities of that Series.

6.3.          REMEDIES.

If an Event of Default with respect to Securities of any Series at the
time outstanding occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the payment of principal
of, or premium, if any, and interest on the Securities of that Series or to
enforce the performance of any provision of the Securities of that Series or
this Indenture.

The Trustee may maintain a proceeding even if it does not possess any of
the Securities of that Series or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Securityholder in
exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default. No remedy is exclusive of any other remedy. All available
remedies are cumulative to the extent permitted by law.

6.4.          WAIVER OF PAST DEFAULTS
AND EVENTS OF DEFAULT.

Subject to Sections 6.2, 6.7 and 8.2 hereof, the Holders of a majority
in principal amount of the Securities of any Series then outstanding have the
right to waive any existing Default or Event of Default with respect to such
Series or compliance with any provision of this Indenture (with respect to such
Series) or the Securities of such Series. Upon any such waiver, such Default
with respect to such Series shall cease to exist, and any Event of Default with
respect to such Series arising therefrom shall be deemed to have been cured for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereto. This Section 6.4 shall be in lieu of TIA Section 316(a)(1)(B), and

 23
 

TIA Section 316(a)(1)(B) is hereby expressly excluded
from this Indenture and Section as permitted by the TIA.

6.5.          CONTROL BY MAJORITY.

Subject to Sections 6.2, 6.7 and 8.2 hereof, the Holders of a majority
in principal amount of the Securities of any Series then outstanding may 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 by this Indenture with respect to such Series. The Trustee, however,
may refuse to follow any direction that conflicts with law or this Indenture or
that the Trustee determines may be unduly prejudicial to the rights of another
Securityholder or that may involve the Trustee in personal liability; provided
that the Trustee may take any other action deemed proper by the Trustee which
is not inconsistent with such direction. This Section 6.5 shall be in lieu of
TIA Section 316(a)(1)(A), and TIA Section 316(a)(1)(A) is hereby expressly
excluded from this Indenture and Section as permitted by the TIA.

6.6.          LIMITATION ON SUITS.

Subject to Section 6.7 below, a Securityholder may not institute any
proceeding or pursue any remedy with respect to this Indenture or the
Securities of a Series unless:

(1) the Holder gives to the Trustee written notice of a continuing Event
of Default with respect to the Securities of that Series;

(2) the Holders of at least a majority in aggregate principal amount of
the Securities of such Series then outstanding make a written request to the
Trustee to pursue the remedy;

(3) such Holder or Holders offer to the Trustee indemnity reasonably
satisfactory to the Trustee against any loss, liability or expense to be
incurred in compliance with such request;

(4) the Trustee does not comply with the request within 90 days after
receipt of the request and the offer of indemnity; and

(5) no direction inconsistent with such written request has been given
to the Trustee during such 90-day period by the Holders of a majority in
aggregate principal amount of the Securities of such Series then outstanding.

A Securityholder may not use this Indenture to prejudice the rights of
another Securityholder or to obtain a preference or priority over another
Securityholder.

6.7.          RIGHTS OF HOLDERS TO
RECEIVE PAYMENT.

Notwithstanding any other provision of this Indenture, the right of any
Holder of a Security of a Series to receive payment of principal of, and
premium, if any, and interest of the Security of such Series on or after the
respective due dates expressed in the Security of such Series, or to bring suit
for the enforcement of any such payment on or after such respective dates,

 24
 

is absolute and unconditional and shall not be
impaired or affected without the consent of the Holder.

6.8.          COLLECTION SUIT BY
TRUSTEE.

If an Event of Default in payment of principal, premium or interest
specified in Section 6.1(1) or (2) hereof with respect to Securities of any
Series at the time outstanding occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company (or any other obligor on the Securities of that Series) for the whole
amount of unpaid principal and premium, if any, and accrued interest remaining
unpaid, together with interest on overdue principal and premium, if any, and,
to the extent that payment of such interest is lawful, interest on overdue
installments of interest, in each case at the rate then borne by the Securities
of that Series, and such further amounts as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, as
set forth in Section 7.7.

6.9.          TRUSTEE MAY FILE PROOFS
OF CLAIM.

The Trustee may file such proofs of claim and other papers or
documents, and take other actions (including sitting on a committee of
creditors) as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Securityholders allowed in any judicial proceedings relative to the Company (or
any other obligor upon the Securities), any of their respective creditors or
any of their respective property and shall be entitled and empowered to collect
and receive any monies or other property payable or deliverable on any such
claims and to distribute the same after deduction of its charges and expenses
to the extent that any such charges and expenses are not paid out of the estate
in any such proceedings and any custodian in any such judicial proceeding is
hereby authorized by each Securityholder to make such payments to the Trustee,
and in the event that the Trustee shall consent to the making of such payments
directly to the Securityholders, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.7 hereof.

Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder any
plan of reorganization, arrangement, adjustment or composition affecting the
Securities of a 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
proceedings.

6.10.        PRIORITIES.

If the Trustee collects any money pursuant to this Article 6, it shall
pay out the money in the following order:

FIRST: to the Trustee for amounts due under Section 7.7 hereof;

SECOND: to Securityholders for amounts then due and unpaid for
principal, premium, if any, and interest on the Securities in respect of which
or for the benefit of which such money has

 25
 

been collected, ratably, without preference or priority
of any kind, according to the amounts due and payable on such Securities; for
principal and any premium and interest, respectively; and

THIRD: to the Company.

The Trustee may fix a record date and payment date for any payment to
Securityholders pursuant to this Section 6.10. At least 15 days before such
record date, the Trustee shall mail to each Securityholder a notice that states
the record date, the payment date and amount to be paid.

6.11.        UNDERTAKING FOR COSTS.

In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder
pursuant to Section 6.7 hereof or a suit by Holders of more than 10% in
principal amount of the Securities of a Series then outstanding.

ARTICLE 7

TRUSTEE

7.1.          DUTIES OF TRUSTEE.

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

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

(2) The Trustee need perform only those
duties that are specifically set forth in this Indenture and no covenants or
obligations shall be implied in this Indenture against the Trustee.

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

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

(1) This paragraph does not limit the effect
of paragraph (b) of this Section 7.1.

 26
 

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

(3) The Trustee shall not be liable with
respect to any action it takes or omits to take in good faith in `accordance
with a direction received by it pursuant to Sections 6.2 and 6.5 hereof.

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

(e) Whether or not therein expressly so
provided, paragraphs (a), (b), (c) and (d) of this Section 7.1 shall govern
every provision of this Indenture that in any way relates to the Trustee.

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

(g) The Paying Agent, the Registrar and any
authenticating agent shall be entitled to the protections, immunities and
standard of care set forth in paragraphs (a), (b), (c), (d) and (f) of this
Section 7.1 and in Section 7.2 with respect to the Trustee.

7.2.          RIGHTS OF TRUSTEE.

(a) Subject to Section 7.1 hereof:

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

(2) Before the Trustee acts or refrains from
acting, it may require an Officers’ Certificate or an Opinion of Counsel, or
both, which shall conform to the provisions of Section 10.5 hereof. The Trustee
shall be protected and shall not be liable for any action it takes or omits to
take in good faith in reliance on such certificate or opinion.

(3) The Trustee may act through agents and
attorneys and shall not be responsible for the misconduct or negligence of any
agent appointed by it with due care.

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

(5) The Trustee may consult with counsel
reasonably acceptable to the Trustee, which may be counsel to the Company, and
the advice or opinion of such counsel as to matters of law shall be full and
complete authorization and protection from liability in respect of any

 27
 

action taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel.

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

(7) The Trustee shall not be deemed to have
knowledge of any fact or matter (including, without limitation, a Default or
Event of Default) unless such fact or matter is known to a Responsible Officer
of the Trustee.

(8) Unless otherwise expressly provided
herein or in the Securities of a Series or the related Board Resolution,
supplemental indenture or Officers’ Certificate, the Trustee shall not have any
responsibility with respect to reports, notices, certificates or other
documents filed with it hereunder, except to make them available for
inspection, at reasonable times, by Securityholders, it being understood that
delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (except as set forth in Section
4.4).

7.3.          INDIVIDUAL RIGHTS OF TRUSTEE.

The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may make loans to, accept deposits from,
perform services for or otherwise deal with the Company, or any Affiliate
thereof, with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee, however, shall be subject to
Sections 7.10 and 7.11 hereof.

7.4.          TRUSTEE’S DISCLAIMER.

The Trustee makes no representation as to the validity or adequacy of
this Indenture or the Securities (except that the Trustee represents that it is
duly authorized to execute and deliver this Indenture and authenticate the
Securities and perform its obligations hereunder), it shall not be accountable
for the Company’s use of the proceeds from the sale of Securities or any money
paid to the Company pursuant to the terms of this Indenture and it shall not be
responsible for any statement in the Securities other than its certificates of
authentication.

7.5.          NOTICE OF DEFAULT.

If a Default or an Event of Default occurs and is continuing with
respect to the Securities of any Series and if it is known to the Trustee, the
Trustee shall mail to each Securityholder of the Securities of that Series
notice of the Default or the Event of Default, as the case may be, within 90
days after it occurs or, if later, after a Responsible Officer of the Trustee
has knowledge of such Default or Event of Default (except if such Default or
Event of Default has been validly cured or waived before the giving of such
notice). Except in the case of a Default or

 28
 

an Event of Default in payment of the principal of, or
premium, if any, or interest on any Security of any Series, the Trustee may
withhold the notice if and so long as the Board of Directors of the Trustee,
the executive committee or any trust committee of such board and/or its
Responsible Officers in good faith determine(s) that withholding the notice is
in the interests of the Securityholders of that Series.

7.6.          REPORTS BY TRUSTEE TO HOLDERS.

If and to the extent required by the TIA, within 60 days after April 1
of each year, commencing the April 1 following the date of this Indenture, the
Trustee shall mail to each Securityholder a brief report dated as of such April
1 that complies with TIA Section 313(a). The Trustee also shall comply with TIA
Sections 313(b) and 313(c).

A copy of each report at the time of its mailing to Securityholders
shall be filed with the SEC and any stock exchange on which the Securities of
that Series are listed. The Company shall promptly notify the Trustee when the
Securities of any Series are listed on any stock exchange or any delisting
thereof, and the Trustee shall comply with TIA Section 313(d).

7.7.          COMPENSATION AND INDEMNITY.

The Company shall pay to the Trustee from time to time reasonable
compensation for its services. The Trustee’s compensation shall not be limited
by any provision of law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee within 45 days after receipt of request for
all reasonable out-of-pocket disbursements and expenses incurred or made by it
in connection with its duties under this Indenture, including the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel.

The Company shall indemnify the Trustee for, and hold it harmless
against, any and all loss or liability incurred by it in connection with the
acceptance or performance of its duties under this Indenture including the
reasonable costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of any of its powers
or duties hereunder. The Trustee shall notify the Company promptly of any claim
asserted against the Trustee for which it may seek indemnity.

The failure by the Trustee to so notify the Company shall not however
relieve the Company of its obligations. Notwithstanding the foregoing, the
Company need not reimburse the Trustee for any expense or indemnify it against
any loss or liability incurred by the Trustee through its negligence or bad
faith. To secure the payment obligations of the Company in this Section 7.7,
the Trustee shall have a lien prior to the Securities of any Series on all
money or property held or collected by the Trustee except such money or
property held in trust to pay principal of and interest and premium (if any) on
particular Securities of that Series.

When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.1(4) or (5) hereof occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

For purposes of this Section 7.7, the term “Trustee” shall include any
trustee appointed pursuant to Article 9.

 29
 

7.8.          REPLACEMENT OF TRUSTEE.

The Trustee may resign with respect to the Securities of one or more
Series by so notifying the Company in writing at least 90 days in advance of
such resignation.

The Holders of a majority in principal amount of the outstanding Securities
of any Series may remove the Trustee with respect to that Series by notifying
the removed Trustee in writing and may appoint a successor Trustee with respect
to that Series with the consent of the Company, which consent shall not be
unreasonably withheld. The Company may remove the Trustee with respect to that
Series at its election if:

(1) the Trustee fails to comply with, or
ceases to be eligible under, Section 7.10 hereof;

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

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

(4) the Trustee otherwise becomes incapable
of acting.

(5) If the Trustee resigns or is removed or
if a vacancy exists in the office of Trustee with respect to any Series of
Securities for any reason, the Company shall promptly appoint, by Board
Resolution, a successor Trustee.

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

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

A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately following
such delivery, (i) the retiring Trustee with respect to one or more Series
shall, subject to its rights under Section 7.7 hereof, transfer all property
held by it as Trustee with respect to such Series to the successor Trustee,
(ii) the resignation or removal of the retiring Trustee shall become effective,
and (iii) the successor Trustee with respect to such Series shall have all the
rights, powers and duties of the Trustee under this Indenture. A successor
Trustee with respect to the Securities of one or more Series shall mail notice of
its succession to each Securityholder of such Series.

 30
 

7.9.          SUCCESSOR TRUSTEE BY CONSOLIDATION, MERGER OR
CONVERSION.

If the Trustee, or any Agent, consolidates with, merges or converts
into, or transfers all or substantially all of its corporate trust assets to,
another corporation, subject to Section 7.10 hereof, the successor corporation
without any further act shall be the successor Trustee or Agent, as the case
may be.

7.10.        ELIGIBILITY; DISQUALIFICATION.

This Indenture shall always have a Trustee who satisfies the
requirements of TIA Sections 310(a)(1), (2) and (5) in every respect. The
Trustee (or in the case of a Trustee that is a Person included in a bank
holding company system, the related bank holding company) shall have a combined
capital and surplus of at least $100,000,000 as set forth in its most recent
published annual report of condition. The Trustee shall comply with TIA Section
310(b), including the provision in Section 310(b)(1). In addition, if the
Trustee is a Person included in a bank holding company system, the Trustee,
independently of such bank holding company, shall meet the capital requirements
of TIA Section 310(a)(2). If at any time the Trustee shall cease to be eligible
in accordance with the provisions of this Section 7.10, it shall resign
immediately in the manner and with the effect specified in this Article 7.

7.11.        PREFERENTIAL COLLECTION OF CLAIMS AGAINST
COMPANY.

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

7.12.        PAYING AGENT.

The Company shall cause each Paying Agent other than the Trustee to
execute and deliver to it and the Trustee an instrument in which such agent
shall agree with the Trustee, subject to the provisions of this Section 7.12:

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

(2) that it will at any time during the
continuance of any Event of Default, upon written request from the Trustee,
deliver to the Trustee all sums so held in trust by it together with a full
accounting thereof; and

(3) that it will give the Trustee written
notice within three (3) Business Days after any failure of the Company (or by
any obligor on the Securities) in the payment of any installment of the
principal of, premium, if any, or interest on, the Securities when the same
shall be due and payable.

 31
 

ARTICLE 8

AMENDMENTS,
SUPPLEMENTS AND WAIVERS

8.1.          WITHOUT CONSENT OF HOLDERS.

The Company, when authorized by a Board Resolution, and the Trustee may
amend or supplement this Indenture or the Securities of one or more Series
without notice to or consent of any Securityholder:

(1) to comply with Section 5.1 hereof;

(2) to provide for certificated Securities in
addition to uncertificated Securities;

(3) to comply with any requirements of the
SEC under the TIA;

(4) to cure any ambiguity, defect or
inconsistency, or to make any other change herein or in the Securities that
does not materially and adversely affect the rights of any Securityholder;

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

(6) 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.

The Trustee is hereby authorized to join with the Company in the
execution of any supplemental indenture authorized or permitted by the terms of
this Indenture and to make any further appropriate agreements and stipulations
which may be therein contained, but the Trustee shall not be obligated to enter
into any such supplemental indenture which adversely affects its own rights,
duties or immunities under this Indenture.

8.2.          WITH CONSENT OF HOLDERS.

(a) The Company, when authorized by a Board
Resolution, and the Trustee may amend or supplement this Indenture or the
Securities of one or more Series with the written consent of the Holders of not
less than a majority in aggregate principal amount of the outstanding
Securities of such Series affected by such amendment or supplement without
notice to any Securityholder. The Holders of not less than a majority in
aggregate principal amount of the outstanding Securities of each such Series
affected by such amendment or supplement may waive compliance in a particular instance
by the Company with any provision of this Indenture or the Securities of such
Series without notice to any Securityholder. Subject to Section 8.4, without
the consent of each Securityholder affected, however, an amendment, supplement
or waiver may not:

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

(2) reduce the rate of or change the time for
payment of interest on any Security;

 32
 

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

(4) make any Security payable in money other
than that stated in the Security;

(5) change the amount or time of any payment
required by the Securities or reduce the premium payable upon any redemption of
the Securities, or change the time before which no such redemption may be made;

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

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

(8) make any changes in Section 6.6 hereof or
this Section 8.2; except to increase any percentage of Securities the Holders
of which must consent to any matter; or

(9) take any other action otherwise
prohibited by this Indenture to be taken without the consent of each Holder
affected thereby.

(b) Upon the request of the Company,
accompanied by a Board Resolution authorizing the execution of any such
supplemental indenture, and upon the receipt by the Trustee of evidence
reasonably satisfactory to the Trustee of the consent of the Securityholders as
aforesaid and upon receipt by the Trustee of the documents described in Section
8.6 hereof, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties or immunities under this Indenture, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into such
supplemental indenture.

(c) It shall not be necessary for the consent
of the Holders under this section to approve the particular form of any
proposed amendment, supplement or waiver, but it shall be sufficient if such
consent approves the substance thereof.

After an amendment or supplement under this Section becomes effective,
the Company shall mail to Securityholders a notice briefly describing the amendment
or supplement. Any failure of the Company to mail any such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any supplemental indenture.

8.3.          COMPLIANCE WITH TRUST INDENTURE ACT.

Every amendment to or supplement of this Indenture or the Securities
shall comply with the TIA as then in effect.

 33
 

8.4.          REVOCATION AND EFFECT OF CONSENTS.

Until an amendment, supplement, waiver or other action becomes
effective, a consent to it by a Holder of a Security is a continuing consent
conclusive and binding upon such Holder and every subsequent Holder of the same
Security or portion thereof, and of any Security issued upon the transfer
thereof or in exchange therefor or in place thereof, even if notation of the
consent is not made on any such Security. Any such Holder or subsequent Holder,
however, may revoke the consent as to his Security or portion of a Security, if
the Trustee receives the notice of revocation before the date the amendment,
supplement, waiver or other action becomes effective.

The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders entitled to consent to any amendment,
supplement, or waiver which record date shall be at least 30 days prior to the
first solicitation of such consent. If a record date is fixed, then,
notwithstanding the preceding paragraph, those Persons who were Holders at such
record date (or their duly designated proxies), and only such Persons, shall be
entitled to consent to such amendment, supplement, or waiver or to revoke any
consent previously given, whether or not such Persons continue to be Holders
after such record date.

After an amendment, supplement, waiver or other action becomes
effective, it shall bind every Securityholder, unless it makes a change
described in any of clauses (1) through (9) of Section 8.2 hereof. In that case
the amendment, supplement, waiver or other action shall bind each Holder of a
Security who has consented to it and every subsequent Holder of a Security or
portion of a Security that evidences the same debt as the consenting Holder’s
Security; provided that any such waiver shall not impair or affect the right of
any Holder to receive payment of principal of and interest and premium (if any)
on a Security, on or after the respective due dates expressed in such Security,
or to bring suit for the enforcement of any such payment on or after such
respective dates without the consent of such Holder.

8.5.          NOTATION ON OR EXCHANGE OF SECURITIES.

If an amendment, supplement, or waiver changes the terms of a Security
of any Series, the Trustee may request the Holder of such Security to deliver
it to the Trustee. In such case, the Trustee shall place an appropriate
notation on such Security about the changed terms and return it to the Holder.
Alternatively, the Company in exchange for such Security may issue and the
Trustee shall authenticate a new security that reflects the changed terms.
Failure to make the appropriate notation or issue a new Security shall not
affect the validity and effect of such amendment, supplement or waiver.

8.6.          TRUSTEE TO SIGN AMENDMENTS, ETC.

The Trustee shall sign any amendment, supplement or waiver authorized
pursuant to this Article 8 if the amendment, supplement or waiver does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may, but need not, sign it. In signing or refusing to
sign such amendment, supplement or waiver the Trustee shall be entitled to
receive and, subject to Section 7.1 hereof, shall be fully protected in relying
upon an Officers’ Certificate and an Opinion of Counsel stating that such
amendment, supplement or waiver is

 34
 

authorized or permitted by this Indenture. The Company
may not sign an amendment or supplement until the Board of Directors of the
Company approves it.

ARTICLE 9

DISCHARGE
OF INDENTURE; DEFEASANCE

9.1.          DISCHARGE OF INDENTURE.

The Company may terminate its obligations under the Securities of any
Series and this Indenture with respect to such Series, except the obligations
referred to in the last paragraph of this Section 9.1, if there shall have been
canceled by the Trustee or delivered to the Trustee for cancellation all
Securities of such Series theretofore authenticated and delivered (other than
any Securities of such Series that are asserted to have been destroyed, lost or
stolen and that shall have been replaced as provided in Section 2.8 hereof) and
the Company has paid all sums payable by it hereunder or deposited all required
sums with the Trustee.

After such delivery the Trustee upon request shall acknowledge in a
writing prepared by or on behalf of the Company the discharge of the Company’s
obligations under the Securities of such Series and this Indenture except for
those surviving obligations specified below.

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company in Sections 7.7, 9.5 and 9.6 hereof shall survive.

9.2.          LEGAL DEFEASANCE.

The Company may at its option, by Board Resolution, be discharged from
its obligations with respect to the Securities of any Series on the date upon
which the conditions set forth in Section 9.4 below are satisfied (hereinafter,
“Legal Defeasance”). For this purpose, such Legal Defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Securities of such Series and to have satisfied all its
other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company,
shall, subject to Section 9.6 hereof, execute proper instruments acknowledging
the same, as are delivered to it by the Company), except for the following
which shall survive until otherwise terminated or discharged hereunder: (A) the
rights of Holders of outstanding Securities of such Series to receive solely
from the trust funds described in Section 9.4 hereof and as more fully set
forth in such section, payments in respect of the principal of, premium, if
any, and interest on the Securities of such Series when such payments are due,
(B) the Company’s obligations with respect to the Securities of such Series
under Sections 2.4, 2.5, 2.6, 2.7, 2.8 and 2.9 hereof, (C) the rights, powers,
trusts, duties, and immunities of the Trustee hereunder (including claims of,
or payments to, the Trustee under or pursuant to Section 7.7 hereof) and (D)
this Article 9. Subject to compliance with this Article 9, the Company may
exercise its option under this Section 9.2 with respect to the Securities of
any Series notwithstanding the prior exercise of its option under Section 9.3
below with respect to the Securities of such Series.

 35
 

9.3.          COVENANT DEFEASANCE.

At the option of the Company, pursuant to a Board Resolution, the
Company shall be released from its obligations with respect to the outstanding
Securities of any Series under Sections 4.2 through 4.5 hereof, inclusive, and
Section 5.1 hereof, with respect to the outstanding Securities of such Series,
on and after the date the conditions set forth in Section 9.4 hereof are
satisfied (hereinafter, “Covenant Defeasance”). For this purpose, such Covenant
Defeasance means that the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
specified section or portion thereof, whether directly or indirectly by reason
of any reference elsewhere herein to any such specified Section or portion
thereof or by reason of any reference in any such specified section or portion
thereof to any other provision herein or in any other document, but the
remainder of this Indenture and the Securities of any Series shall be
unaffected thereby.

9.4.          CONDITIONS TO LEGAL DEFEASANCE OR COVENANT
DEFEASANCE.

The following shall be the conditions to application of Section 9.2 or
Section 9.3 hereof to the outstanding Securities of a Series:

(1) the Company shall irrevocably have
deposited or caused to be deposited with the Trustee (or another trustee
satisfying the requirements of Section 7.10 hereof who shall agree to comply
with the provisions of this Article 9 applicable to it) as funds in trust for
the purpose of making the following payments, specifically pledged as security
for, and dedicated solely to, the benefit of the Holders of the Securities, (A)
money in an amount, or (B) U.S. Government Obligations or Foreign Government
Obligations which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than the
due date of any payment, money in an amount, or (C) a combination thereof,
sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge, and which shall be applied by the Trustee
(or other qualifying trustee) to pay and discharge, the principal of, premium,
if any, and accrued interest on the outstanding Securities of such Series at
the Stated Maturity of such principal, premium, if any, or interest, or on dates
for payment and redemption of such principal, premium, if any, and interest
selected in accordance with the terms of this Indenture and of the Securities
of such Series;

(2) no Event of Default or Default with
respect to the Securities of such Series shall have occurred and be continuing
on the date of such deposit, or shall have occurred and be continuing at any
time during the period ending on the 91st day after the date of such deposit
or, if longer, ending on the day following the expiration of the longest
preference period under any Bankruptcy Law applicable to the Company in respect
of such deposit as specified in the Opinion of Counsel identified in paragraph
(8) below (it being understood that this condition shall not be deemed
satisfied until the expiration of such period);

(3) such Legal Defeasance or Covenant
Defeasance shall not cause the Trustee to have a conflicting interest for
purposes of the TIA with respect to any securities of the Company;

(4) such Legal Defeasance or Covenant
Defeasance shall not result in a breach or violation of, or constitute default
under any other agreement or instrument to which the Company is a party or by
which it is bound;

 36
 

(5) the Company shall have delivered to the
Trustee an Opinion of Counsel stating that, as a result of such Legal
Defeasance or Covenant Defeasance, neither the trust nor the Trustee will be
required to register as an investment company under the Investment Company Act
of 1940, as amended;

(6) in the case of an election under Section
9.2 above, the Company shall have delivered to the Trustee an Opinion of
Counsel stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling to the effect that or (ii)
there has been a change in any applicable Federal income tax law with the
effect that, and such opinion shall confirm that, the Holders of the
outstanding Securities of such Series or Persons in their positions will not
recognize income, gain or loss for Federal income tax purposes solely as a result
of such Legal Defeasance and will be subject to Federal income tax on the same
amounts, in the same manner, including as a result of prepayment, and at the
same times as would have been the case if such Legal Defeasance had not
occurred;

(7) in the case of an election under Section
9.3 hereof, the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that the Holders of the outstanding Securities of such
Series will not recognize income, gain or loss for Federal income tax purposes
as a result of such Covenant Defeasance and will be subject to Federal income
tax on the same amounts, in the same manner and at the same times as would have
been the case if such Covenant Defeasance had not occurred;

(8) the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent provided for in this Article 9 relating to either the
Legal Defeasance under Section 9.2 above or the Covenant Defeasance under
Section 9.3 hereof (as the case may be) have been complied with;

(9) the Company shall have delivered to the
Trustee an Officers’ Certificate stating that the deposit under clause (1) was
not made by the Company with the intent of defeating, hindering, delaying or
defrauding any creditors of the Company or others; and

(10) the Company shall have paid or duly
provided for payment under terms mutually satisfactory to the Company and the
Trustee all amounts then due to the Trustee pursuant to Section 7.7 hereof.

9.5.          DEPOSITED MONEY AND U.S. AND FOREIGN
GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS.

All money, U.S. Government Obligations and Foreign Government
Obligations (including the proceeds thereof) deposited with the Trustee
pursuant to Section 9.4 hereof in respect of the outstanding Securities shall
be held in trust and applied by the Trustee, in accordance with the provisions
of such Securities and this Indenture, to the payment, either directly or
through any Paying Agent as the Trustee may determine, to the Holders of such
Securities, of all sums due and to become due thereon in respect of principal,
premium, if any, and accrued interest, but such money need not be segregated
from other funds except to the extent required by law.

 37
 

The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations and
Foreign Government Obligations deposited pursuant to Section 9.4 hereof or the
principal, premium, if any, and interest received in respect thereof other than
any such tax, fee or other charge which by law is for the account of the
Holders of the outstanding Securities.

Anything in this Article 9 to the contrary notwithstanding, but subject
to payment of any of its outstanding fees and expenses, the Trustee shall
deliver or pay to the Company from time to time upon Company Request any money,
U.S. Government Obligations or Foreign Government Obligations held by it as
provided in Section 9.4 hereof which, in the opinion of a nationally-recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which
would then be required to be deposited to effect an equivalent Legal Defeasance
or Covenant Defeasance.

9.6.          REINSTATEMENT.

If the Trustee or Paying Agent is unable to apply any money, U.S.
Government Obligations or Foreign Government Obligations in accordance with
Section 9.1, 9.2, 9.3 or 9.4 hereof by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to this Article 9 until
such time as the Trustee or Paying Agent is permitted to apply all such money,
U.S. Government Obligations or Foreign Government Obligations, as the case may
be, in accordance with Section 9.1, 9.2, 9.3 or 9.4 hereof; provided, however,
that if the Company has made any payment of principal of, premium, if any, or
accrued interest on any Securities because of the reinstatement of their
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money, U.S. Government
Obligations or Foreign Government Obligations held by the Trustee or Paying
Agent.

9.7.          MONEYS HELD BY PAYING AGENT.

In connection with the satisfaction and discharge of this Indenture,
all moneys then held by any Paying Agent under the provisions of this Indenture
shall, upon demand of the Company, be paid to the Trustee, or if sufficient
moneys have been deposited pursuant to Section 9.1 hereof, to the Company, and
thereupon such Paying Agent shall be released from all further liability with
respect to such moneys.

9.8.          MONEYS HELD BY TRUSTEE.

Any moneys deposited with the Trustee or any Paying Agent or then held
by the Company in trust for the payment of the principal of, or premium, if
any, or interest on any Security that are not applied but remain unclaimed by
the Holder of such Security for two years after the date upon which the
principal of, or premium, if any, or interest on such Security shall have
respectively become due and payable shall be repaid to the Company upon Company
Request, or if such moneys are then held by the Company in trust, such moneys
shall be released from such trust; and the Holder of such Security entitled to
receive such payment shall thereafter,

 38
 

as an unsecured general creditor, look only to the
Company for the payment thereof, and all liability of the Trustee or such
Paying Agent with respect to such trust money shall thereupon cease; provided,
however, that the Trustee or any such Paying Agent, before being required to
make any such repayment, may, at the expense of the Company, either mail to
each Securityholder affected, at the address shown in the register of the
Securities maintained by the Registrar or cause to be published once a week for
two successive weeks, in a newspaper published in the English language,
customarily published each Business Day and of general circulation in the City
of New York, New York, a 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 mailing or publication, any unclaimed balance of such moneys then
remaining will be repaid to the Company. After payment to the Company or the
release of any money held in trust by the Company, Securityholders entitled to
the money must look only to the Company for payment as general creditors unless
applicable abandoned property law designates another Person.

ARTICLE
10

MISCELLANEOUS

10.1.        TRUST INDENTURE ACT CONTROLS.

If any provision of this Indenture limits, qualifies or conflicts with
another provision which is required to be included in this Indenture by the
TIA, the required provision shall control. If any provision of this Indenture
modifies or excludes any provision of the TIA which may be so modified or
excluded, the latter provision shall be deemed to apply to this Indenture as so
modified or to be excluded, as the case may be.

10.2.        NOTICES.

Any notice or communication shall be given in writing and delivered in
Person, sent by facsimile (and receipt confirmed by telephone or electronic
transmission report), delivered by commercial courier service or mailed by
first-class mail, postage prepaid, addressed as follows:

If to the Company:

Isolagen, Inc.

405 Eagleview Boulevard

Exton, PA 19341

Fax (484) 713-6001

Attention: Chief Financial Officer

Copy to:

If to the Trustee:

 39
 

The Company or the Trustee by written notice to the other may designate
additional or different addresses for subsequent notices or communications. Any
notice or communication to the Company or the Trustee shall be deemed to have
been given or made as of the date so delivered if personally delivered; when
receipt is confirmed by telephone or electronic transmission report, if sent by
facsimile; and three (3) Business Days after mailing if sent by registered or
certified mail, postage prepaid (except that a notice of change of address
shall not be deemed to have been given until actually received by the
addressee).

Any notice or communication mailed to a Securityholder shall be mailed
to such Securityholder by first-class mail, postage prepaid, at such
Securityholder’s address shown on the register kept by the Registrar.

Failure to mail a notice or communication to a Securityholder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication to a Securityholder is mailed in
the manner provided above, it shall be deemed duly given, three Business Days
after such mailing, whether or not the addressee receives it.

In case by reason of the suspension of regular mail service, or by
reason of any other cause, it shall be impossible to mail any notice as
required by this Indenture, then such method of notification as shall be made
with the approval of the Trustee shall constitute a sufficient mailing of such
notice.

In the case of Global Securities, notices or communications to be given
to Securityholders shall be given to the Depository, in accordance with its
applicable policies as in effect from time to time.

In addition to the manner provided for in the foregoing provisions,
notices or communications to Securityholders shall be given by the Company by
release made to Reuters Economic Services and Bloomberg Business News.

10.3.        COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.

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

10.4.        CERTIFICATE AND OPINION AS TO CONDITIONS
PRECEDENT.

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

(1) an Officers’ Certificate (which shall
include the statements set forth in Section 10.5 below) stating that, in the
opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

 40
 

(2) an Opinion of Counsel (which shall
include the statements set forth in Section 10.5 below) stating that, in the
opinion of such counsel, all such conditions precedent have been complied with.

10.5.        STATEMENT REQUIRED IN CERTIFICATE AND OPINION.

Each certificate and opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than pursuant to
Section 4.4 hereof) 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, it or he has made such examination or investigation as is necessary to
enable it or him 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 covenant or condition has been complied with.

10.6.        RULES BY TRUSTEE AND AGENTS.

The Trustee may make reasonable rules for action by or at meetings of
Securityholders. The Registrar and Paying Agent may make reasonable rules for
their functions.

10.7.        BUSINESS DAYS; LEGAL HOLIDAYS; PLACE OF
PAYMENT.

A “Business Day” is a day that is not a Legal Holiday. A “Legal Holiday”
is a Saturday, a Sunday, a federally-recognized holiday or a day on which banking
institutions are not authorized or required by law or executive order to be
open in the State of Delaware or the State of New York.

If a payment date is a Legal Holiday at a Place of Payment, payment may
be made at that place on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period. “Place of Payment”
means the place or places where the principal of and any premium and interest
on the Securities of a Series are payable as specified as contemplated by
Section 2.2. If the regular record date is a Legal Holiday, the record date
shall not be affected.

10.8.        GOVERNING LAW.

THIS INDENTURE AND THE SECURITIES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,
AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF DELAWARE WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 41
 

10.9.        NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

This Indenture may not be used to interpret another indenture, loan,
security or debt agreement of the Company or any Subsidiary thereof. No such
indenture, loan, security or debt agreement may be used to interpret this
Indenture.

10.10.      NO RECOURSE AGAINST OTHERS.

A director, officer, employee, stockholder or incorporator, as such, of
the Company shall not have any liability for any obligations of the Company
under the Securities or the Indenture. Each Securityholder by accepting a
Security waives and releases all such liability. Such waiver and release are
part of the consideration for the issuance of the Securities.

10.11.      SUCCESSORS.

All covenants and agreements of the Company in this Indenture and the
Securities shall bind its successors and assigns, whether so expressed or not.
All agreements of the Trustee, any additional trustee and any Paying Agents in
this Indenture shall bind their respective successors and assigns.

10.12.      MULTIPLE COUNTERPARTS.

The parties may sign multiple counterparts of this Indenture. Each
signed counterpart shall be deemed an original, but all of them together represent
one and the same agreement.

10.13.      TABLE OF CONTENTS, HEADINGS, ETC.

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

10.14.      SEVERABILITY.

Each provision of this Indenture shall be considered separable and if
for any reason any provision which is not essential to the effectuation of the
basic purpose of this Indenture or the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby and a Holder
shall have no claim therefor against any party hereto.

10.15.      SECURITIES IN A FOREIGN CURRENCY OR IN EURO.

Unless otherwise specified in a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate delivered pursuant to Section 2.2
of this Indenture with respect to a particular Series of Securities, whenever
for purposes of this Indenture any action may be taken by the Holders of a
specified percentage in aggregate principal amount of Securities of all Series
or all Series affected by a particular action at the time outstanding and, at
such time, there are outstanding Securities of any Series which are denominated
in a coin or currency other than Dollars (including Euros), then the principal
amount of Securities of such Series which shall be

 42
 

deemed to be outstanding for the purpose of taking
such action shall be that amount of Dollars that could be obtained for such
amount at the Market Exchange Rate at such time. For purposes of this Section
10.15, “Market Exchange Rate” shall mean the noon Dollar buying rate in New
York City for cable transfers of that currency as published by the Federal
Reserve Bank of New York; provided, however, in the case of Euros, Market
Exchange Rate shall mean the rate of exchange determined by the Commission of
the European Union (or any successor thereto) as published in the Official
Journal of the European Union (such publication or any successor publication,
the “Journal”). If such Market Exchange Rate is not available for any reason
with respect to such currency, the Trustee shall use, in its sole discretion
and without liability on its part, such quotation of the Federal Reserve Bank
of New York or, in the case of 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 or, in the case of
Euros, in Luxembourg or such other quotations or, in the case of Euros, rates
of exchange as the Trustee, upon consultation with the Company, shall deem
appropriate. The provisions of this paragraph shall apply in determining the
equivalent principal amount in respect of Securities of a Series denominated in
currency other than Dollars in connection with any action taken by Holders of
Securities pursuant to the terms of this Indenture.

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

10.16.      JUDGMENT CURRENCY.

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

 43
 

holiday in The City of New York on which banking
institutions are authorized or required by law, regulation or executive order
to close.

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

ISOLAGEN, INC.

By:

Name:

Title:

[Name of Trustee]

By:

Name:

Title:

By:

Name:

Title:

 44

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