Document:

Exhibit 4.1

 

 

EXECUTION COPY

 

 

 

 

 

 

 

TELEPHONE AND DATA SYSTEMS, INC.

 

AND

 

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

 

AS TRUSTEE

 

-------

 

INDENTURE 

for
Subordinated Debt Securities

 

Dated as of September 16, 2013

 

 

 

 

	
  TABLE OF CONTENTS

  
	
    

  	
    

  	
    

  
	
  CROSS-REFERENCE TABLE

  
	
    

  	
    

  	
    

  
	
  Section of Trust Indenture Act of 1939,
  as amended

  	
    

  	
  Section of Indenture

  
	
  310(a) 

  	
    

  	
  7.09 

  
	
  310(b) 

  	
    

  	
  7.08 

  
	
  310(b)

  	
    

  	
  7.10 

  
	
  311(a) 

  	
    

  	
  7.13 

  
	
  311(b) 

  	
    

  	
  7.13 

  
	
  312(a) 

  	
    

  	
  5.01 

  
	
  312(a)

  	
    

  	
  5.02(a) 

  
	
  312(b) 

  	
    

  	
  5.05 

  
	
  312(c) 

  	
    

  	
  5.05 

  
	
  313(a) 

  	
    

  	
  5.04(a) 

  
	
  313(b) 

  	
    

  	
  5.04(a) 

  
	
  313(c) 

  	
    

  	
  5.04(a) 

  
	
  313(d) 

  	
    

  	
  5.04(b)  

  
	
  314(a) 

  	
    

  	
  5.03 

  
	
  314(b) 

  	
    

  	
  Inapplicable 

  
	
  314(c) 

  	
    

  	
  13.06(a) 

  
	
  314(d) 

  	
    

  	
  Inapplicable 

  
	
  314(e) 

  	
    

  	
  13.06(b) 

  
	
  314(f) 

  	
    

  	
  Inapplicable

  
	
  315(a) 

  	
    

  	
  7.01(a)

  
	
  315(a)

  	
    

  	
  7.02 

  
	
  315(b) 

  	
    

  	
  6.07 

  
	
  315(c) 

  	
    

  	
  7.01(a)

  
	
  315(d) 

  	
    

  	
  7.01(b)

  
	
  315(e) 

  	
    

  	
  6.08 

  
	
  316(a) 

  	
    

  	
  6.06 

  
	
  316(a)

  	
    

  	
  8.04 

  
	
  316(b) 

  	
    

  	
  6.04 

  
	
  316(c) 

  	
    

  	
  8.01 

  
	
  317(a) 

  	
    

  	
  6.02 

  
	
  317(b) 

  	
    

  	
  4.03 

  
	
  318(a) 

  	
    

  	
  13.08 

  

 

 

 

  

	
  TABLE OF CONTENTS

  
	
  (Continued)

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

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

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
  Page

  
	
  ARTICLE I.
  DEFINITIONS

  	
    

  	
  2 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 1.01.
  Certain defined terms

  	
    

  	
  2 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE II.
  ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

  	
    

  	
  7 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.01.
  Designation, Terms, Amount, Authentication and Delivery of Securities

  	
    

  	
  7 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.02.
  Form of Security and Trustee’s Certificate

  	
    

  	
  10 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.03.
  Date and Denominations of Securities, and Provisions for Payment of
  Principal, Premium and Interest

  	
    

  	
  10 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.04.
  Execution of Securities

  	
    

  	
  12 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.05.
  Exchange of Securities

  	
    

  	
  13 

  
	
    

  	
    

  	
  (a)

  	
  Registration
  and Transfer of Securities

  	
    

  	
  13 

  
	
    

  	
    

  	
  (b)

  	
  Security
  Register; Securities to be Accompanied by Proper Instruments of Transfer

  	
    

  	
  13 

  
	
    

  	
    

  	
  (c)

  	
  Charges upon
  Exchange, Transfer or Registration of Securities

  	
    

  	
  13 

  
	
    

  	
    

  	
  (d)

  	
  Restrictions on
  Transfer or Exchange at Time of Redemption

  	
    

  	
  13 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.06.
  [Reserved]

  	
    

  	
  14 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.07.
  Mutilated, Destroyed, Lost or Stolen Securities

  	
    

  	
  14 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.08.
  Cancellation of Surrendered Securities

  	
    

  	
  15 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.09.
  Provisions of Indenture and Securities for Sole Benefit of Parties and
  Securityholders

  	
    

  	
  15 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.10.
  [Reserved]

  	
    

  	
  15 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.11.
  Global Security

  	
    

  	
  15 

  
	
    

  	
    

  	
  (a)

  	
  Authentication
  and Delivery; Legend

  	
    

  	
  15 

  
	
    

  	
    

  	
  (b)

  	
  Transfer of
  Global Security

  	
    

  	
  16 

  
	
    

  	
    

  	
  (c)

  	
  Issuance of
  Securities in Definitive Form

  	
    

  	
  16 

  
	
    

  	
    

  	
  (d)

  	
  Grant of
  Proxies by Holder of Global Note

  	
    

  	
  16 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.12.
  Payment in Proper Currency

  	
    

  	
  16 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 2.13.
  Identification of Securities

  	
    

  	
  17 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE III.
  REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

  	
    

  	
  17 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 3.01.
  Redemption of Securities

  	
    

  	
  17 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 3.02.
  Action to Redeem Securities

  	
    

  	
  17 

  
	
    

  	
    

  	
  (a)

  	
  Notice of
  Redemption

  	
    

  	
  17 

  
	
    

  	
    

  	
  (b)

  	
  Notice to
  Trustee of Securities to be Redeemed

  	
    

  	
  18 

  

ii 

 

 

 

 

	
  TABLE OF CONTENTS

  
	
  (Continued)

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
  Page

  
	
    

  	
  SECTION 3.03.
  Payment of Securities Called for Redemption

  	
    

  	
  18 

  
	
    

  	
    

  	
  (a)

  	
  When Securities
  Called for Redemption become Due and Payable

  	
    

  	
  18 

  
	
    

  	
    

  	
  (b)

  	
  Receipt of New
  Security upon Partial Payment

  	
    

  	
  19 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 3.04.
  Sinking Fund for Securities

  	
    

  	
  19 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 3.05.
  Satisfaction of Sinking Fund Payments with Securities

  	
    

  	
  19 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 3.06.
  Redemption of Securities for Sinking Fund

  	
    

  	
  19 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE IV. PARTICULAR
  COVENANTS OF THE COMPANY

  	
    

  	
  20 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 4.01.
  Payment of Principal (and Premium if any) and Interest on Securities

  	
    

  	
  20 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 4.02.
  Maintenance of Office or Agency for Payment, Registration, Transfer and Exchange
  of Securities

  	
    

  	
  20 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 4.03.
  Paying Agent

  	
    

  	
  20 

  
	
    

  	
    

  	
  (a)

  	
  Duties of
  Paying Agent

  	
    

  	
  20 

  
	
    

  	
    

  	
  (b)

  	
  Company as
  Paying Agent

  	
    

  	
  21 

  
	
    

  	
    

  	
  (c)

  	
  Holding Sums in
  Trust

  	
    

  	
  21 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 4.04.
  Appointment to Fill Vacancy in Office of Trustee

  	
    

  	
  21 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 4.05.
  Restriction on Consolidation, Merger of the Company

  	
    

  	
  21 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 4.06.
  Original Issue Discount Security

  	
    

  	
  22 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE V.
  SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

  	
    

  	
  22 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 5.01.
  Company to Furnish Trustee Information as to Names and Addresses of
  Securityholders

  	
    

  	
  22 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 5.02.
  Responsibilities of Trustee Relating to Securityholder Information

  	
    

  	
  22 

  
	
    

  	
    

  	
  (a)

  	
  Trustee to
  Preserve Information as to Names and Addresses of Securityholders

  	
    

  	
  22 

  
	
    

  	
    

  	
  (b)

  	
  Trustee may
  Destroy List of Securityholders on Certain Conditions

  	
    

  	
  22 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 5.03.
  Delivery Obligations of Company

  	
    

  	
  22 

  
	
    

  	
    

  	
  (a)

  	
  Annual and Other
  Reports to be Filed by Company with Trustee

  	
    

  	
  22 

  
	
    

  	
    

  	
  (b)

  	
  Additional
  Information and Reports to be Filed with Trustee and Securities and Exchange
  Commission

  	
    

  	
  23 

  
	
    

  	
    

  	
  (c)

  	
  Summaries of
  Information and Reports to be Transmitted by Company to Securityholders

  	
    

  	
  23 

  
	
    

  	
    

  	
  (d)

  	
  Annual
  Certificate to be Furnished to Trustee

  	
    

  	
  23 

  
	
    

  	
    

  	
  (e)

  	
  Effect of
  Delivery to Trustee

  	
    

  	
  23 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 5.04.
  Delivery Obligations of Trustee

  	
    

  	
  23 

  
	
    

  	
    

  	
  (a)

  	
  Trustee to
  Transmit Annual Report to Securityholders

  	
    

  	
  23 

  
	
    

  	
    

  	
  (b)

  	
  Copies of
  Reports to be Filed with Stock Exchanges and Securities and Exchange
  Commission

  	
    

  	
  24 

  

iii 

 

 

 

 

	
  TABLE OF CONTENTS

  
	
  (Continued)

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
  Page

  
	
    

  	
  SECTION 5.05.
  Communication between Holders

  	
    

  	
  24 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE VI. REMEDIES
  OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

  	
    

  	
  24 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 6.01.
  Events of Default

  	
    

  	
  24 

  
	
    

  	
    

  	
  (a)

  	
  Events of
  Default Defined

  	
    

  	
  24 

  
	
    

  	
    

  	
  (b)

  	
  Acceleration of
  Maturity upon Event of Default

  	
    

  	
  25 

  
	
    

  	
    

  	
  (c)

  	
  Waiver of
  Default and Rescission of Declaration of Maturity

  	
    

  	
  25 

  
	
    

  	
    

  	
  (d)

  	
  Restoration of
  Former Position and Rights upon Curing Default

  	
    

  	
  26 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 6.02.
  Rights of Trustee upon Default

  	
    

  	
  26 

  
	
    

  	
    

  	
  (a)

  	
  Covenant of
  Company to Pay to Trustee Whole Amount due on Securities on Default in
  Payment of Interest or Principal (and Premium, if any)

  	
    

  	
  26 

  
	
    

  	
    

  	
  (b)

  	
  Trustee may
  Recover Judgment for Whole Amount due on Securities on Failure of Company to
  Pay

  	
    

  	
  26 

  
	
    

  	
    

  	
  (c)

  	
  Proof of Claim
  by Trustee in Bankruptcy, Reorganization or Receivership Proceeding

  	
    

  	
  26 

  
	
    

  	
    

  	
  (d)

  	
  Rights of
  Action and of Asserting Claims may be Enforced by Trustee without Possession
  of Securities

  	
    

  	
  27 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 6.03.
  Application of Monies Collected by Trustee

  	
    

  	
  27 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 6.04.
  Limitation on Suits by Holders of Securities

  	
    

  	
  28 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 6.05.
  Remedies; Delay or Omission in Exercise of Rights

  	
    

  	
  28 

  
	
    

  	
    

  	
  (a)

  	
  Remedies
  Cumulative

  	
    

  	
  28 

  
	
    

  	
    

  	
  (b)

  	
  Delay or
  Omission in Exercise of Rights not Waiver of Default

  	
    

  	
  29 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 6.06.
  Rights of Holders of Majority in Principal Amount of Securities to Direct
  Trustee and to Waive Defaults

  	
    

  	
  29 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 6.07.
  Notice of Known Defaults

  	
    

  	
  29 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 6.08.
  Undertaking to Pay Costs in Certain Suits under Indenture or Against Trustee

  	
    

  	
  30 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE VII.
  CONCERNING THE TRUSTEE

  	
    

  	
  30 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.01.
  Certain Duties and Responsibilities of Trustee

  	
    

  	
  30 

  
	
    

  	
    

  	
  (a)

  	
  Upon Event of
  Default

  	
    

  	
  30 

  
	
    

  	
    

  	
  (b)

  	
  Negligence or
  Willful Misconduct by Trustee

  	
    

  	
  30 

  
	
    

  	
  SECTION 7.02.
  Certain Rights of Trustee

  	
    

  	
  31 

  
	
    

  	
    

  	
  (a)

  	
  Trustee
  Reliance on Documents

  	
    

  	
  31 

  
	
    

  	
    

  	
  (b)

  	
  Evidence
  Provided for Certain Instruments

  	
    

  	
  32 

  
	
    

  	
    

  	
  (c)

  	
  Trustee may
  Consult with Counsel and Act on Advice or Opinion of Counsel

  	
    

  	
  32 

  
	
    

  	
    

  	
  (d)

  	
  Trustee may
  Require Indemnity from Securityholders

  	
    

  	
  32 

  
	
    

  	
    

  	
  (e)

  	
  Trustee not
  Liable for Actions in Good Faith Believed to be Authorized

  	
    

  	
  32 

  

iv 

 

 

 

 

	
  TABLE OF CONTENTS

  
	
  (Continued)

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
  Page

  
	
    

  	
    

  	
  (f)

  	
  Trustee not
  Bound to Investigate Facts or Matters

  	
    

  	
  32 

  
	
    

  	
    

  	
  (g)

  	
  Trustee may
  Perform Duties Directly or through Agents or Attorneys

  	
    

  	
  32 

  
	
    

  	
    

  	
  (h)

  	
  Permissive
  Rights of Trustee

  	
    

  	
  33 

  
	
    

  	
    

  	
  (i)

  	
  Trustee Not
  Responsible or Liable for Special, Indirect or Consequential Losses or
  Damages

  	
    

  	
  33 

  
	
    

  	
    

  	
  (j)

  	
  Enforcement by
  Trustee

  	
    

  	
  33 

  
	
    

  	
    

  	
  (k)

  	
  Certificate of
  Authorized Persons

  	
    

  	
  33 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.03.
  Limitations in Liability of Trustee

  	
    

  	
  33 

  
	
    

  	
    

  	
  (a)

  	
  Trustee not
  Liable for Recitals in Indenture or in Securities

  	
    

  	
  33 

  
	
    

  	
    

  	
  (b)

  	
  No
  Representations by Trustee as to Validity or Indenture or of Securities

  	
    

  	
  33 

  
	
    

  	
    

  	
  (c)

  	
  Trustee not
  Accountable for Use of Securities or Proceeds

  	
    

  	
  33 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.04.
  Trustee, Paying Agent or Security Registrar may Own Securities

  	
    

  	
  33 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.05.
  Monies Received by Trustee to be Held in Trust without Interest

  	
    

  	
  33 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.06.
  Compensation and Reimbursement of Trustee

  	
    

  	
  34 

  
	
    

  	
    

  	
  (a)

  	
  Trustee
  Entitled to Compensation, Reimbursement and Indemnity

  	
    

  	
  34 

  
	
    

  	
    

  	
  (b)

  	
  Obligations to
  Trustee to be Secured by Lien prior to Securities

  	
    

  	
  34 

  
	
    

  	
    

  	
  (c)

  	
  Nature of
  Expenses

  	
    

  	
  34 

  
	
    

  	
    

  	
  (d)

  	
  Survival of
  Obligations

  	
    

  	
  34 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.07.
  Trustee May Rely on Certificate of Officers of Company

  	
    

  	
  34 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.08.
  Trustee Must Eliminate Conflict or Resign

  	
    

  	
  35 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.09.
  Requirements for Eligibility of Trustee

  	
    

  	
  35 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.10.
  Trustee

  	
    

  	
  35 

  
	
    

  	
    

  	
  (a)

  	
  Resignation of
  Trustee and Appointment of Successor

  	
    

  	
  35 

  
	
    

  	
    

  	
  (b)

  	
  Removal of
  Trustee by Company or by Court on Securityholders’ Application

  	
    

  	
  35 

  
	
    

  	
    

  	
  (c)

  	
  Removal of
  Trustee by Holders of Majority in Principal Amount of Securities

  	
    

  	
  36 

  
	
    

  	
    

  	
  (d)

  	
  Time when
  Resignation or Removal of Trustee Effective

  	
    

  	
  36 

  
	
    

  	
    

  	
  (e)

  	
  One Trustee for
  each Series

  	
    

  	
  36 

  
	
    

  	
    

  	
  (f)

  	
  Removal of
  Trustee by the Company

  	
    

  	
  36 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.11.
  Successor Trustee

  	
    

  	
  36 

  
	
    

  	
    

  	
  (a)

  	
  Acceptance by
  Successor Trustee

  	
    

  	
  36 

  
	
    

  	
    

  	
  (b)

  	
  Trustee with
  Respect to Less than all Series

  	
    

  	
  37 

  
	
    

  	
    

  	
  (c)

  	
  Company to
  Confirm Trustee’s Rights

  	
    

  	
  37 

  
	
    

  	
    

  	
  (d)

  	
  Successor
  Trustee to be Qualified

  	
    

  	
  38 

  
	
    

  	
    

  	
  (e)

  	
  Notice of
  Succession

  	
    

  	
  38 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 7.12.
  Successor to Trustee by Merger, Consolidation of Succession to Business

  	
    

  	
  38 

  

v 

 

 

 

 

	
  TABLE OF CONTENTS

  
	
  (Continued)

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
  Page

  
	
    

  	
  SECTION 7.13.
  Limitations on Rights of Trustee as a Creditor to Obtain Payment of Certain
  Claims

  	
    

  	
  38 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE VIII.
  CONCERNING THE SECURITYHOLDERS

  	
    

  	
  38 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 8.01.
  Evidence of Action by Securityholders

  	
    

  	
  38 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 8.02.
  Proof of Execution of Instruments and of Holding of Securities

  	
    

  	
  39 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 8.03.
  Who may be Deemed Owners of Securities

  	
    

  	
  39 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 8.04.
  Securities Owned by Company or Affiliated Persons Disregarded for Certain
  Purposes

  	
    

  	
  39 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 8.05.
  Instruments Executed by Securityholders Binding on Future Holders

  	
    

  	
  40 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE IX.
  SUPPLEMENTAL INDENTURES

  	
    

  	
  40 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 9.01.
  Supplemental Indenture Without Consent of Securityholders

  	
    

  	
  40 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 9.02.
  Supplemental Indenture with Consent of Securityholders

  	
    

  	
  43 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 9.03.
  Effect of Supplemental Indentures

  	
    

  	
  44 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 9.04.
  Securities may Bear Notation of Changes by Supplemental Indentures

  	
    

  	
  44 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 9.05.
  Opinion of Counsel and Officers’ Certificate

  	
    

  	
  44 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE X.
  CONSOLIDATION, MERGER AND SALE

  	
    

  	
  44 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 10.01.
  Consolidations or Mergers of Company and Sales or Conveyances of Property of
  Company

  	
    

  	
  44 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 10.02.
  Successor to Company

  	
    

  	
  45 

  
	
    

  	
    

  	
  (a)

  	
  Rights and
  Duties of Successor Company

  	
    

  	
  45 

  
	
    

  	
    

  	
  (b)

  	
  Appropriate Changes
  may be made in Phraseology and Form of Securities

  	
    

  	
  45 

  
	
    

  	
    

  	
  (c)

  	
  Company may
  Consolidate or Merge into Itself or Acquire Properties of Other Corporations

  	
    

  	
  45 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 10.03.
  Opinion of Counsel

  	
    

  	
  46 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE XI. DEFEASANCE
  AND CONDITIONS TO DEFEASANCE; UNCLAIMED MONIES

  	
    

  	
  46 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 11.01.
  Defeasance and Conditions to Defeasance

  	
    

  	
  46 

  
	
    

  	
    

  	
  (a)

  	
  Securities may
  be Defeased

  	
    

  	
  46 

  
	
    

  	
    

  	
  (b)

  	
  Covenant and
  Legal Defeasance

  	
    

  	
  46 

  
	
    

  	
    

  	
  (c)

  	
  Conditions for Defeasance

  	
    

  	
  46 

  
	
    

  	
    

  	
  (d)

  	
  Event of
  Default Following Covenant Defeasance

  	
    

  	
  47 

  
	
    

  	
    

  	
  (e)

  	
  Effect of
  Defeasance

  	
    

  	
  47 

  

vi 

 

 

 

 

	
  TABLE OF CONTENTS

  
	
  (Continued)

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
  Page

  
	
    

  	
  SECTION 11.02.
  Application by Trustee of Funds Deposited for Payment of Securities

  	
    

  	
  47 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 11.03.
  Repayment of Monies held by Paying Agent

  	
    

  	
  47 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 11.04.
  Repayment of Monies held by Trustee

  	
    

  	
  47 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 11.05.
  Delivery of Officer’s Certificate and Opinion of Counsel

  	
    

  	
  48 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE XII.
  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
    

  	
  48 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 12.01.
  Incorporators, Stockholders, Officers and Directors of Company Exempt from
  Individual Liability

  	
    

  	
  48 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE XIII.
  MISCELLANEOUS PROVISIONS

  	
    

  	
  48 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.01.
  Successors and Assigns of Company Bound by Indenture

  	
    

  	
  48 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.02.
  Acts of Board, Committee or Officer of Successor Company

  	
    

  	
  48 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.03.
  Headings

  	
    

  	
  49 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.04.
  Notices

  	
    

  	
  49 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.05.
  Governing Law

  	
    

  	
  49 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.06.
  Officers’ Certificate and Opinion of Counsel

  	
    

  	
  49 

  
	
    

  	
    

  	
  (a)

  	
  When Required

  	
    

  	
  49 

  
	
    

  	
    

  	
  (b)

  	
  Statements to
  be Included in each Certificate or Opinion

  	
    

  	
  50 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.07.
  Payments Due on Non-Business Days

  	
    

  	
  50 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.08.
  Provisions Required by Trust Indenture Act of 1939

  	
    

  	
  50 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.09.
  Execution in Counterparts

  	
    

  	
  50 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.10.
  Separability of Indenture Provisions

  	
    

  	
  50 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.11.
  Successors and Assigns

  	
    

  	
  50 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.12.
  Securities in Foreign Currencies

  	
    

  	
  50 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.13. Treatment
  of the Securities as Debt

  	
    

  	
  51 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.14.
  Waiver of Jury Trial

  	
    

  	
  51 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 13.15.
  Force Majeure

  	
    

  	
  51 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE XIV.
  SUBORDINATION OF SECURITIES

  	
    

  	
  51 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  SECTION 14.01.
  Subordination Terms

  	
    

  	
  51 

  

vii 

 

 

 

INDENTURE

 

THIS
INDENTURE, dated as of the 16th day of September, 2013, between TELEPHONE AND
DATA SYSTEMS, INC., a corporation duly organized and existing under the laws of
the State of Delaware (hereinafter sometimes referred to as the “Company”), and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. a national banking association,
as trustee (hereinafter sometimes referred to as the “Trustee”): 

 

WHEREAS,
for its lawful corporate purposes, the Company has duly authorized the
execution and delivery of this Indenture to provide for the issuance of
unsecured promissory notes or other evidences of indebtedness (hereinafter
referred to as the “Securities”), in an unlimited aggregate principal amount to
be issued from time to time in one or more series as in this Indenture provided,
as registered Securities without coupons, to be manually authenticated by the
certificate of the Trustee, and which will be subordinated to the extent set
forth in an indenture supplemental hereto relating to such Securities; 

 

WHEREAS,
to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture; 

 

WHEREAS,
the Securities and the certificate of authentication to be borne by the
Securities (the “Certificate of Authentication”) are to be substantially in
such forms as may be approved by a Company Order (as defined below), or set
forth in this Indenture or in any indenture supplemental to this Indenture; 

 

AND
WHEREAS, all acts and things necessary to make the Securities issued pursuant
hereto, when executed by the Company and authenticated and delivered by the
Trustee as in this Indenture provided, the valid, binding and legal obligations
of the Company, and to constitute these presents a valid indenture and
agreement according to its terms, have been done and performed or will be done
and performed prior to the issuance of such Securities, and the execution of
this Indenture has been and the issuance hereunder of the Securities has been
or will be prior to issuance in all respects duly authorized, and the Company,
in the exercise of the legal right and power in it vested, executes this
Indenture and proposes to make, execute, issue and deliver the Securities; 

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH: 

 

That
in order to declare the terms and conditions upon which the Securities are and
are to be authenticated, issued and delivered, and in consideration of the
premises, of the purchase and acceptance of the Securities by the holders
thereof and of the sum of one dollar ($1.00) to it duly paid by the Trustee at
the execution of these presents, the receipt whereof is hereby acknowledged,
the Company covenants and agrees with the Trustee, for the equal and
proportionate benefit (subject to the provisions of this Indenture) of the
respective holders from time to time of the Securities, without any
discrimination, preference or priority of any one Security over any other by
reason of priority in the time of issue, sale or negotiation thereof, or
otherwise, except as provided herein, as follows: 

 

 

 

 

 

ARTICLE I.

DEFINITIONS 

 

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

 

Affiliate 

The term “Affiliate” shall have the meaning set forth
in the Securities Act of 1933, as amended.  

 

Authorized Officer

The term “Authorized Officer” shall mean the
President, any Vice President, the Treasurer or any other officer or agent of
the Company duly authorized by the Board of Directors to act in respect of
matters relating to this Indenture.

 

Board of Directors or Board

The term “Board of Directors” or “Board” shall mean
the Board of Directors of the Company, or any duly authorized committee of such
Board.

 

Board Resolution

The term “Board Resolution” shall mean a copy of a
resolution certified by the Secretary or an Assistant Secretary of the Company
to have been duly adopted by the Board of Directors and to be in full force and
effect on the date of such certification.

 

Business Day

The term “Business Day”, with respect to any Security,
shall mean any day that (a) in the Place of Payment (or in any of the Places of
Payment, if more than one) in which amounts are payable as specified in the
form of such Security and (b) in the city in which the Trustee administers its
corporate trust business, is not a day on which banking institutions are
authorized or required by law or regulation to close.

 

Certificate

The term “Certificate” shall mean a certificate signed
by an Authorized Officer.   The Certificate need not comply with the provisions
of Section 13.06.

2 

 

 

 

 

Commission

The term “Commission” shall mean the Securities and
Exchange Commission, as from time to time constituted, created under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) or if at any
time after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then
the body, if any, performing such duties on such date.

 

Company

The term “Company” shall mean Telephone and Data
Systems, Inc., a corporation duly organized and existing under the laws of
Delaware, and, subject to the provisions of Article Ten, shall also include its
successors and assigns.

 

Company Order

The term “Company Order” shall mean a written order
signed in the name of the Company by an Authorized Officer and the Secretary or
an Assistant Secretary of the Company, pursuant to a Board Resolution
establishing a series of Securities.

 

Corporate Trust Office

The term “Corporate Trust Office” shall mean an office
of the Trustee at which at any particular time its corporate trust business
shall be administered, which office at the date of the execution of this
Indenture is located at 2 North LaSalle Street, Suite 1020, Chicago, IL 60602,
or such other address as the Trustee may designate from time to time by notice
to the Holders and the Company, or the principal corporate trust office of any
successor Trustee. 

 

Default

The term “Default” shall mean any event, act or
condition which with notice or lapse of time, or both, would constitute an
Event of Default.

 

Depository

The term “Depository” shall mean, with respect to
Securities of any series, for which the Company shall determine that such
Securities will be issued as a Global Security, The Depository Trust Company,
New York, New York, another clearing agency, or any successor registered as a
clearing agency under the Exchange Act or other applicable statute or
regulation, which, in each case, shall be designated by the Company pursuant to
either Section 2.01 or 2.11.

 

Dollar

The term “Dollar” or “$” means a dollar or other
equivalent unit in such coin or currency of the United States as at the time
shall be legal tender for the payment of public and private debts.

 

3 

 

 

 

 

Eligible Obligations

The term “Eligible Obligations” means (a) with respect
to Securities denominated in Dollars, Governmental Obligations; or (b) with
respect to Securities denominated in a currency other than Dollars or in a
composite currency, such other obligations or instruments as shall be specified
with respect to such Securities, as contemplated by Section 2.01.

 

Event of Default

The term “Event of Default” with respect to Securities
of a particular series shall mean any event specified in Section 6.01,
continued for the period of time, if any, therein designated.

 

Global Security

The term “Global Security” shall mean, with respect to
any series of Securities, a Security executed by the Company and authenticated
and delivered by the Trustee to the Depository or pursuant to the Depository’s
instruction, all in accordance with the Indenture, which shall be registered in
the name of the Depository or its nominee.

 

Governmental Authority

The term “Governmental Authority” means the government
of the United States or of any State or Territory thereof or of the District of
Columbia or of any county, municipality or other political subdivision of any
of the foregoing, or any department, agency, authority or other instrumentality
of any of the foregoing.

 

Governmental Obligations

The term “Governmental Obligations” shall mean
securities that are (i) direct obligations of the United States of America for
the payment of which its full faith and credit is pledged or (ii) obligations
of a person controlled or supervised by and acting as an agency or
instrumentality of the United States, the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States, which,
in either case, are not callable or redeemable at the option of the issuer
thereof, and shall also include a depository receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as
custodian with respect to any such Governmental Obligation or a specific
payment of principal of or interest on any such Governmental Obligation held by
such custodian for the account of the holder of such depository receipt;
provided that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depository
receipt from any amount received by such custodian in respect of the
Governmental Obligation or the specific payment of principal of or interest on
the Governmental Obligation evidenced by such depository receipt.

 

Indenture

The term “Indenture” shall mean this instrument as
originally executed, or, if amended or supplemented as herein provided, as so
amended or supplemented, and shall include the terms of a particular series of
Securities established as contemplated by Section 2.01.

 

4 

 

 

 

 

Instructions

The term “Instructions” shall mean instructions
acceptable to the Trustee issued pursuant to a Company Order in connection with
a Periodic Offering and signed by an Authorized Officer. 

 

Interest

The term “interest” when used with respect to
non-interest bearing Securities shall mean interest payable after maturity
(whether at stated maturity, upon acceleration or redemption or otherwise) or
after the date, if any, on which the Company becomes obligated to acquire a
Security, whether by purchase or otherwise.

 

Interest Payment Date

The term “Interest Payment Date” when used with
respect to any installment of interest on a Security of a particular series
shall mean the date specified in such Security or in a Board Resolution,
Company Order or an indenture supplemental hereto with respect to such series
as the fixed date on which an installment of interest with respect to
Securities of that series is due and payable.

 

Officers’ Certificate

The term “Officers’ Certificate” shall mean a certificate
signed by an Authorized Officer and by the Secretary or Assistant Secretary of
the Company.  Each such certificate shall include the statements provided for
in Section 13.06, if and to the extent required by the provisions hereof.

 

Opinion of Counsel

The term “Opinion of Counsel” shall mean an opinion in
writing signed by legal counsel, who may be the General Counsel of or counsel
for the Company.  Each such opinion shall include the statements provided for
in Section 13.06, if and to the extent required by the provisions hereof.

 

Original Issue Discount Security

The term “Original Issue Discount Security” means any
Security which (i) is issued at a price lower than the amount payable upon the
maturity thereof and (ii) provides for an amount less than the principal amount
thereof to be due and payable upon a declaration of acceleration of the
maturity thereof pursuant to Section 6.01(b).

 

Outstanding

The term “outstanding”, when used with reference to
Securities of any series, shall, subject to the provisions of Section 8.04,
mean, as of any particular time, all Securities of that series theretofore
authenticated and delivered by the Trustee under this Indenture, except (a)
Securities theretofore canceled by the Trustee or any paying agent, or delivered
to the Trustee or any paying agent for cancellation or which have previously
been canceled; (b) Securities or portions thereof for the payment or redemption
of which monies or Eligible Obligations in the 

5 

 

 

 

 

necessary
amount shall have been deposited in trust with the Trustee or with any paying
agent (other than the Company) or shall have been set aside and segregated in
trust by the Company (if the Company shall act as its own paying agent);
provided, however, that if such Securities or portions of such Securities are
to be redeemed prior to the maturity thereof, notice of such redemption shall
have been given as in Article Three provided, or provision satisfactory to the
Trustee shall have been made for giving such notice; and (c) Securities in lieu
of or in substitution for which other Securities shall have been authenticated
and delivered pursuant to the terms of Section 2.07.  The principal amount of
an Original Issue Discount Security that shall be deemed to be Outstanding for
purposes of this Indenture shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a
declaration of acceleration of the maturity thereof.

 

Periodic Offering

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

 

Person

The term “person” means any individual, corporation,
partnership, limited liability company, joint venture, trust or unincorporated
organization or any Governmental Authority.

 

Place of Payment

The term “Place of Payment” shall mean the place or
places where the principal of and interest, if any, on the Securities of any
series are payable as specified in accordance with Section 2.01.

 

Predecessor Security

The term “Predecessor Security” of any particular
Security shall mean every previous Security evidencing all or a portion of the
same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 2.07
in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the
same debt as the lost, destroyed or stolen Security.

 

Responsible Officer

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

 

6 

 

 

 

 

Security or Securities

The term “Security” or “Securities” shall mean any
Security or Securities, as the case may be, authenticated and delivered under
this Indenture.

 

Securityholder

The term “Securityholder”, “holder of Securities” or
“registered holder” shall mean the person or persons in whose name or names a
particular Security shall be registered on the books of the Company kept for
that purpose in accordance with the terms of this Indenture.

 

series

The term “series” means a series of Securities
established pursuant to this Indenture and includes, if the context so
requires, each Tranche thereof.

 

Tranche

The term “Tranche” means Securities which (a) are of
the same series and (b) have identical terms except as to terms that may vary
as specified in a Company Order or supplemental indenture.

 

Trustee

The term “Trustee” shall mean The Bank of New York
Mellon Trust Company, N.A., and, subject to the provisions of Article Seven,
shall also include its successors and assigns, and, if at any time there is
more than one person acting in such capacity hereunder, “Trustee” shall mean
each such person.  The term “Trustee” as used with respect to a particular
series of the Securities shall mean the trustee with respect to that series.

 

Trust Indenture Act

The term “Trust Indenture Act”, subject to the
provisions of Sections 9.01, 9.02, and 10.01, shall mean the Trust Indenture
Act of 1939, as amended and in effect at the date of execution of this
Indenture.

 

United States

The term “United States” means the United States of
America, its territories, its possessions and other areas subject to its
political jurisdiction.

 

 

ARTICLE II.

ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

 

SECTION
2.01.  Designation, Terms, Amount,
Authentication and Delivery of Securities. The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.

7 

 

 

 

 

The Securities may be issued from time to time in one
or more series and in one or more Tranches thereof.  Each series shall be
authorized by a Company Order or Orders and/or one or more indentures
supplemental hereto, which shall specify whether the Securities of such series
shall be subject to a Periodic Offering.  The Company Order or Orders or
supplemental indenture and, in the case of a Periodic Offering, Instructions or
other procedures acceptable to the Trustee specified in such Company Order or
Orders, shall establish the terms of the series, which may include the following:

 

(a)           the title and designation of the Securities and the
series (which shall distinguish the Securities of the series from all other
Securities and which shall include the word “subordinated” or a word of like
meaning);

 

(b)           limitations on the aggregate principal
amount of the Securities to be authenticated and delivered under this Indenture
as part of such series (except for Securities authenticated and delivered upon
registration of transfer of, in exchange for or in lieu of other Securities of
that series); 

 

(c)           the stated maturity or maturities of
such series; 

 

(d)           the date or dates from which interest
shall accrue, the Interest Payment Dates on which such interest will be payable
or the manner of determination of such Interest Payment Dates and the record
date for the determination of holders to whom interest is payable on any such
Interest Payment Date; 

 

(e)           the interest rate or rates (which may be
fixed or variable), or method of calculation of such rate or rates, for such
series; 

 

(f)            the terms, if any, regarding the
redemption, purchase or repayment of such series (whether at the option of the
Company or a holder of the Securities of such series and whether pursuant to a
sinking fund or analogous provisions, including payments made in cash in
anticipation of future sinking fund obligations), including redemption,
purchase or repayment date or dates of such series, if any, and the price or
prices and other terms and conditions applicable to such redemption, purchase
or repayment (including any premium); 

 

(g)           whether or not the Securities of such
series shall be issued in whole or in part in the form of a Global Security
and, if so, the Depositary for such Global Security and the related procedures
with respect to transfer and exchange of such Global Security; 

 

(h)           the form of the Securities of such
series; 

 

(i)            the maximum annual interest rate, if
any, of the Securities permitted for such series; 

 

(j)            whether the Securities of such series
shall be subject to Periodic Offering; 

 

(k)           the currency or currencies, including
composite currencies, in which payment of the principal of (and premium, if
any) and interest on the Securities of such series shall be payable, if other
than Dollars; 

 

8 

 

 

 

 

(l)            any other information necessary to
complete the Securities of such series; 

 

(m)          the establishment of any office or agency
pursuant to Section 4.02 hereof and any other place or places which the
principal of and interest, if any, on Securities of that series shall be
payable; 

 

(n)           other than denominations of $1,000 or
any integral multiple thereof, the denominations in which the Securities of the
series shall be issuable; 

 

(o)           the obligations or instruments, if any,
which shall be considered to be Eligible Obligations in respect of the
Securities of such series denominated in a currency other than Dollars or in a
composite currency; 

 

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

 

(q)           if the principal of and premium, if any,
or interest, if any, on such Securities are to be payable, at the election of
the Company or the holder thereof, in coin or currency, including composite
currencies, other than that in which the Securities are stated to be payable,
the period or periods within which, and the terms and conditions upon which,
such election shall be made; 

 

(r)            if the amount of payment of principal
of and premium, if any, or interest, if any, on such Securities may be
determined with reference to an index, formula or other method, or based on a
coin or currency other than that in which the Securities are stated to be
payable, the manner in which such amount shall be determined; 

 

(s)            any addition to, or modification or
deletion of, any covenants or terms herein, including restrictive covenants or
Events of Default provided for with respect to the Securities of the series;

 

(t)            the terms and conditions, if any,
pursuant to which the Securities of the series are secured;

 

(u)           whether the Securities of the series
will be exchangeable into other securities (including Securities that will be
convertible into other Company securities) and, if so, the terms and conditions
upon which such Securities will be so exchangeable, including whether exchange
is mandatory, at the option of the holder, or at the option of the Company, the
exchange price, the exchange period and any provisions pursuant to which the 
securities to be received by the holders of such series of Securities would be
subject to adjustment; and 

 

(v)           any other terms of such series not
inconsistent with this Indenture, including but not limited to:

 

(A)          the
right, if any, to extend the interest payment periods and the duration of such
extension, 

 

9 

 

 

 

 

(B)          the
subordination terms of the Securities of that series and relative rankings in
priority of payment, 

 

(C)          whether
the Company will have the option to redeem such Securities upon the occurrence
of certain events, including tax events or credit rating agency events, and the
terms of any such option, and

 

(D)          any
deletions from, modifications or additions to the provisions of this Indenture
in respect of the Securities of such series.

 

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise
be provided in or pursuant to any such Company Order or in any indentures
supplemental hereto.

 

If any of the terms of the series are established by
action taken pursuant to a Company Order, a copy of an appropriate record of
the applicable Board Resolution shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Company Order setting forth the terms of that series.

 

SECTION
2.02.  Form of Security and Trustee’s Certificate. The Securities of any
series shall be substantially of the tenor and purport (i) as set forth in one
or more indentures supplemental hereto or as provided in a Company Order, or
(ii) with respect to any Tranche of Securities of a series subject to Periodic
Offering, to the extent permitted by any of the documents referred to in clause
(i) above, in Instructions, and by other procedures acceptable to the Trustee
specified in such Company Order or Orders, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the Company may deem appropriate and as are
not inconsistent with the provisions of this Indenture, or as may be required
to comply with any law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any stock exchange on which Securities of that
series may be listed or of the Depository, or to conform to usage.

 

The Trustee’s Certificate of Authentication shall be
in substantially the following form: 

 

“This is one of the Securities of the series
designated in accordance with, and referred to in, the within-mentioned
Indenture.

 

Dated: 

 

The Bank of New York Mellon Trust Company, N.A., as
Trustee 

 

By:___________________________ 

 

                Authorized Signatory” 

 

SECTION 2.01.   

SECTION 2.03.  

Date
and Denominations of Securities, and Provisions for Payment of Principal,
Premium and Interest.
Except as otherwise specified as contemplated by Section 2.01, 

 

 

10 

 

 

 

 

the Securities shall be issuable as
registered Securities and in the denominations of $1,000 or any integral
multiple thereof.  Except as otherwise specified as contemplated by Section
2.01, the principal of and the interest on the Securities of any series, as
well as any premium thereon in case of redemption thereof prior to maturity,
shall be payable in Dollars at the office or agency of the Company maintained
for that purpose.  Each Security shall be dated the date of its authentication.

 

The interest installment on any Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date for Securities of that series shall be paid to the person in whose name
said Security (or one or more Predecessor Securities) is registered at the
close of business on the regular record date for such interest installment,
except that interest payable on redemption or maturity shall be payable as set
forth in the Company Order or indenture supplemental hereto establishing the
terms of such series of Securities.  Except as otherwise specified as
contemplated by Section 2.01, interest on Securities will be computed on the
basis of a 360-day year of twelve 30-day months.

 

Any interest on any Security which is payable, but is
not punctually paid or duly provided for, on any Interest Payment Date for
Securities of the same series (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the registered holder on the relevant regular
record date by virtue of having been such holder; and such Defaulted Interest
shall be paid by the Company, at its election, as provided in clause (1) or
clause (2) below: 

 

(1)           The Company may make payment of any
Defaulted Interest on Securities to the persons in whose names such Securities
(or their respective Predecessor Securities) are registered at the close of
business on a special record date for the payment of such Defaulted Interest,
which shall be fixed in the following manner: the Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each such Security and the date of the proposed payment, and at the same time
the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the persons entitled to such Defaulted Interest as in this
clause provided.  Thereupon the Trustee shall fix a special record date for the
payment of such Defaulted Interest which shall not be more than 15 nor less
than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. 
The Trustee shall promptly notify the Company of such special record date and,
in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the special record date
therefor to be mailed, first class postage prepaid, to each Securityholder at
his or her address as it appears in the Security Register (as hereinafter
defined), not less than 10 days prior to such special record date.  Notice of
the proposed payment of such Defaulted Interest and the special record date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid
to the persons in whose names such Securities (or their respective Predecessor
Securities) are registered on such special record date and shall be no longer
payable pursuant to the following clause (2).

 

(2)           The Company may make payment of any
Defaulted Interest on any Securities in any other lawful manner not
inconsistent with the requirements of any securities exchange on which such
Securities may be listed, and upon such notice as may be required by such exchange,
if, 

11 

 

 

 

 

after notice given by the
Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.

 

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

 

SECTION 2.04.  Execution
of Securities. The Securities shall be printed or fully or partially
engraved, or legibly typed, as the proper officer of the Company may determine,
and shall be signed on behalf of the Company by an Authorized Officer.  The
signature of such Authorized Officer upon the Securities may be in the form of
a facsimile signature of a present or any future Authorized Officer and may be
imprinted or otherwise reproduced on the Securities and for that purpose the
Company may use the facsimile signature of any person who shall have been an
Authorized Officer, notwithstanding the fact that at the time the Securities
shall be authenticated and delivered or disposed of such person shall have
ceased to be an Authorized Officer.

 

Only such Securities as shall bear thereon a
Certificate of Authentication substantially in the form established for such
Securities, executed manually by an authorized signatory of the Trustee, shall
be entitled to the benefits of this Indenture or be valid or obligatory for any
purpose.  Such certificate executed by the Trustee upon any Security executed
by the Company shall be conclusive evidence that the Security so authenticated
has been duly authenticated and delivered hereunder and that the registered
holder thereof is entitled to the benefits of this Indenture.

 

At any time and from time to time after the execution
and delivery of this Indenture, the Company may deliver Securities of any
series executed by the Company to the Trustee for authentication, together with
an indenture supplemental hereto or a Company Order for the authentication and
delivery of such Securities and the Trustee, in accordance with such
supplemental indenture or Company Order, shall authenticate and deliver such
Securities.

 

In authenticating such Securities and accepting the
additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall receive and (subject to Section 7.01) shall be
fully protected in relying upon, (i) an Opinion of Counsel and (ii) an
Officers’ Certificate, each stating that the form and terms thereof have been
established in conformity with the provisions of this Indenture.  Each Opinion
of Counsel and Officers’ Certificate delivered pursuant to this Section 2.04
shall include all statements prescribed in Section 13.06(b).  Such Opinion of
Counsel shall also be to the effect that when such Securities have been
executed by the Company and authenticated by the Trustee in accordance with the
provisions of this Indenture and delivered to and duly paid for by the purchasers
thereof, they will be valid and legally binding obligations of the Company,
enforceable in accordance with their terms (subject to customary exceptions)
and will be entitled to the benefits of this Indenture.

 

The Trustee shall not be required to authenticate such
Securities if the issue of such Securities pursuant to this Indenture will
affect the Trustee’s own rights, duties or immunities 

12 

 

 

 

 

under the Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

 

SECTION
2.05.  Exchange of Securities.

 

(a)           Registration
and Transfer of Securities. Securities of any series may be exchanged upon
presentation thereof at the office or agency of the Company designated for such
purpose, for other Securities of such series of authorized denominations, and
for a like aggregate principal amount, upon payment of a sum sufficient to
cover any tax or other governmental charge in relation thereto, all as provided
in this Section.  In respect of any Securities so surrendered for exchange, the
Company shall execute, the Trustee shall authenticate and such office or agency
shall deliver in exchange therefor the Security or Securities of the same
series which the Securityholder making the exchange shall be entitled to receive,
bearing numbers not contemporaneously outstanding.

 

(b)           Security Register; Securities to be Accompanied by
Proper Instruments of Transfer. The
Company shall keep, or cause to be kept, at its office or agency designated for
such purpose in the Borough of Manhattan, the City and State of New York, or
such other location designated by the Company a register or registers (herein
referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall register the Securities and
the transfers of Securities as in this Article provided and which at all
reasonable times shall be open for inspection by the Trustee.  The registrar
for the purpose of registering Securities and transfer of Securities as herein provided
shall initially be the Trustee or such other person as may be subsequently
appointed as authorized by Board Resolution or Company Order (the “Security
Registrar”).

Upon surrender for transfer of any Security at the
office or agency of the Company designated for such purpose in the Borough of
Manhattan, the City and State of New York, or other location as aforesaid, the
Company shall execute, the Trustee shall authenticate and such office or agency
shall deliver in the name of the transferee or transferees a new Security or
Securities of the same series as the Security presented for a like aggregate
principal amount.

 

All Securities presented or surrendered for exchange
or registration of transfer, as provided in this Section, shall be accompanied
(if so required by the Company or the Security Registrar) by a written
instrument or instruments of transfer, in form satisfactory to the Company or
the Security Registrar, duly executed by the registered holder or by his duly
authorized attorney in writing.

 

(c)           Charges upon Exchange, Transfer or Registration of
Securities. Except as provided in the
first paragraph of Section 2.07, no service charge shall be made for any
exchange or registration of transfer of Securities, or issue of new Securities
in case of partial redemption of any series, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge in
relation thereto, other than exchanges pursuant to Section 3.03(b) and Section
9.04 not involving any transfer.

(d)           Restrictions on Transfer or Exchange at Time of
Redemption. The Company shall neither
be required (i) to issue, exchange or register the transfer of any Securities 

13 

 

 

 

 

during a period beginning at the opening of business
15 days before the day of the mailing of a notice of redemption of less than
all the outstanding Securities of the same series and ending at the close of
business on the day of such mailing, nor (ii) to register the transfer of or
exchange any Securities of any series or portions thereof called for redemption
or as to which the holder thereof has exercised its right, if any, to require
the Company to repurchase such Security in whole or in part, except that
portion of such Security not required to be repurchased.  The provisions of
this Section 2.05 are, with respect to any Global Security, subject to Section
2.11 hereof.

 

SECTION 2.06.  [Reserved] 

 

SECTION
2.07.  Mutilated, Destroyed, Lost or Stolen Securities. In case any
temporary or definitive Security shall become mutilated or be destroyed, lost
or stolen, the Company (subject to the next succeeding sentence) shall execute,
and upon its request the Trustee (subject as aforesaid) shall authenticate and
deliver, a new Security of the same series bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Security, or in
lieu of and in substitution for the Security so destroyed, lost or stolen.  In
every case the applicant for a substituted Security shall furnish to the
Company and to the Trustee such security or indemnity as may be required by
them to save each of them harmless, and, in every case of destruction, loss or
theft, the applicant shall also furnish to the Company and to the Trustee
evidence to their satisfaction of the destruction, loss or theft of the
applicant’s Security and of the ownership thereof.  The Trustee may
authenticate any such substituted Security and deliver the same upon the
written request or authorization of any officer of the Company.  Upon the
issuance of any substituted Security, the Company may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.  In case any Security which has
matured or is about to mature shall become mutilated or be destroyed, lost or
stolen, the Company may, instead of issuing a substitute Security, pay or
authorize the payment of the same (without surrender thereof except in the case
of a mutilated Security) if the applicant for such payment shall furnish to the
Company and to the Trustee such security or indemnity as they may require to
save them harmless, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft
of such Security and of the ownership thereof.

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

 

14 

 

 

 

 

SECTION 2.08.  Cancellation
of Surrendered Securities. All Securities surrendered for the purpose of
payment, redemption, exchange or registration of transfer, or for credit
against a sinking fund, shall, if surrendered to the Company or any paying
agent, be delivered to the Trustee for cancellation, or, if surrendered to the
Trustee, shall be canceled by it, and no Securities shall be issued in lieu
thereof except as expressly required or permitted by any of the provisions of
this Indenture.  On request of the Company, the Trustee shall deliver to the
Company canceled Securities held by the Trustee.  In the absence of such
request the Trustee may dispose of canceled Securities in accordance with its
standard procedures.  If the Company shall otherwise acquire any of the
Securities, however, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Securities unless and
until the same are delivered to the Trustee for cancellation.

 

SECTION
2.09.  Provisions of Indenture and Securities for Sole Benefit of Parties
and Securityholders. Nothing in this Indenture or in the Securities,
express or implied, shall give or be construed to give to any person, firm or
corporation, other than the parties hereto and the holders of the Securities,
any legal or equitable right, remedy or claim under or in respect of this
Indenture, or under any covenant, condition or provision herein contained; all
such covenants, conditions and provisions being for the sole benefit of the
parties hereto and of the holders of the Securities.

SECTION 2.10.  [Reserved] 

 

SECTION
2.11.  Global Security. 

 

(a)           Authentication
and Delivery; Legend. If the Company shall establish pursuant to Section
2.01 that the Securities of a particular series are to be issued as a Global
Security, then the Company shall execute and the Trustee shall, in accordance
with Section 2.04, authenticate and deliver, a Global Security which (i) shall
represent, and shall be denominated in an amount equal to the aggregate
principal amount of, all of the Outstanding Securities of such series, (ii)
shall be registered in the name of the Depository or its nominee, (iii) shall be
delivered to the Trustee as the custodian for such Depository or pursuant to
the Depository’s instruction and (iv) shall bear a legend substantially to the
following effect:  “Except as otherwise provided in Section 2.11 of the
Indenture, this Security may be transferred, in whole but not in part, only to
another nominee of the Depository or to a successor Depository or to a nominee
of such successor Depository.”  Members of, or participants in, the Depository
(“Participants”) shall have no rights under this Indenture with respect to any
Global Note held on their behalf by the Depository, or the Trustee as its
custodian, or under the Global Note, and the Depository may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute
owner of the Global Note for all purposes whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the Depository or impair, as between
the Depository and Participants, the operation of customary practices governing
the exercise of the rights of a Holder or beneficial owner of any Note.

 

15 

 

 

 

 

(b)           Transfer
of Global Security. Notwithstanding the provisions of Section 2.05, the
Global Security of a series may be transferred, in whole but not in part and in
the manner provided in Section 2.05, only to another nominee of the Depository
for such series, or to a successor Depository for such series selected or
approved by the Company or to a nominee of such successor Depository.

 

(c)           Issuance
of Securities in Definitive Form. If at any time the Depository for a
series of Securities notifies the Company that it is unwilling or unable to
continue as Depository for such series or if at any time the Depository for
such series shall no longer be registered or in good standing under the
Exchange Act, or other applicable statute or regulation and a successor
Depository for such series is not appointed by the Company within 90 days after
the Company receives such notice or becomes aware of such condition, as the
case may be, this Section 2.11 shall no longer be applicable to the Securities
of such series and the Company will execute, and subject to Section 2.05, the
Trustee will authenticate and deliver Securities of such series in definitive
registered form without coupons, in authorized denominations, and in an
aggregate principal amount equal to the principal amount of the Global Security
of such series in exchange for such Global Security.  In addition, the Company
may at any time determine that the Securities of any series shall no longer be
represented by a Global Security and that the provisions of this Section 2.11
shall no longer apply to the Securities of such series.  In such event the
Company will execute, and subject to Section 2.05, the Trustee, upon receipt of
an Officers’ Certificate and an Opinion of Counsel evidencing such
determination by the Company, will authenticate and deliver Securities of such
series in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security.  Upon the exchange of the Global Security for such Securities in
definitive registered form without coupons, in authorized denominations, the
Global Security shall be canceled by the Trustee.  Such Securities in
definitive registered form issued in exchange for the Global Security pursuant
to this Section 2.11(c) shall be registered in such names and in such
authorized denominations as the Depository, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Security Registrar. 
The Trustee shall deliver such Securities to the Depository for delivery to the
persons in whose names such Securities are so registered.

 

(d)           Grant
of Proxies by Holder of Global Note. The Holder of any Global Note may
grant proxies and otherwise authorize any Person, including Participants and
Persons that may hold interests through Participants, to take any action which
a Holder is entitled to take under this Indenture or the Notes.

 

SECTION
2.12.  Payment in Proper Currency. In the case of the Securities of any
series denominated in any currency other than Dollars or in a composite
currency (the “Required Currency”), except as otherwise specified with respect
to such Securities as contemplated by Section 2.01, the obligation of the
Company to make any payment of the principal thereof, or the premium or
interest thereon, shall not be discharged or satisfied by any tender by the
Company, or recovery by the Trustee, in any currency other than the Required
Currency, except to the extent that such tender or recovery shall result in the
Trustee timely holding the full amount of the Required Currency then due and
payable.  If any such tender or recovery is in a currency other than the
Required Currency, the Trustee may take such actions as it considers appropriate
to exchange such currency for the Required Currency.  The costs and risks of
any such exchange, 

16 

 

 

 

 

including,
without limitation, the risks of delay and exchange rate fluctuation, shall be
borne by the Company, the Company shall remain fully liable for any shortfall
or delinquency in the full amount of Required Currency then due and payable,
and in no circumstances shall the Trustee be liable therefor except in the case
of its negligence or willful misconduct.

 

SECTION 2.13.  Identification
of Securities. The Company in issuing Securities may use “CUSIP” numbers
(if then generally in use) and, if so used, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to holders of Securities;
provided that any such notice may state that no representation is made as to
the correctness of such numbers either as printed on the Securities or
contained in any notice of redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers. 
The Company shall promptly notify the Trustee of any change in the CUSIP
numbers.

 

ARTICLE III.

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS 

 

SECTION 3.01.  Redemption of
Securities. The Company may redeem
the Securities of any series issued hereunder on and after the dates and in
accordance with the terms established for such series pursuant to Section 2.01
hereof.

 

SECTION 3.02.   

SECTION 3.02.  Action to Redeem Securities.   

 

(a)           Notice
of Redemption.  In case the Company shall desire to exercise such right to
redeem all or, as the case may be, a portion of the Securities of any series in
accordance with the right reserved so to do, it shall give notice of such
redemption to holders of the Securities of such series to be redeemed (in the
case of physical notes) by mailing, first class postage prepaid, or by
transmitting a notice of such redemption not less than 30 days and not more
than 60 days before the date fixed for redemption of that series to such
holders at their last addresses as they shall appear upon the Security
Register.  Any notice which is (in the case of physical notes) mailed or
transmitted in the manner herein provided shall be conclusively presumed to
have been duly given, whether or not the registered holder receives the
notice.  In any case, failure duly to give such notice to the holder of any
Security of any series designated for redemption in whole or in part, or any
defect in the notice, shall not affect the validity of the proceedings for the
redemption of any other Securities of such series or any other series.  In the
case of any redemption of Securities prior to the expiration of any restriction
on such redemption or subject to compliance with certain conditions provided in
the terms of such Securities or elsewhere in this Indenture, the Company shall
furnish the Trustee with an Officers’ Certificate evidencing compliance with
any such restriction or condition.

 

Unless otherwise so provided as to a particular series
of Securities, if at the time of mailing of any notice of redemption the
Company shall not have deposited with the paying agent an amount in cash
sufficient to redeem all of the Securities called for redemption, including
accrued interest to the date fixed for redemption, such notice shall state that
it is subject to the receipt of redemption moneys by the paying agent on or
before the date fixed for redemption 

17 

 

 

 

 

(unless such redemption is
mandatory) and such notice shall be of no effect unless such moneys are so
received on or before such date.

 

Each such notice of redemption shall identify the
Securities to be redeemed (including CUSIP numbers, if any), specify the date
fixed for redemption and the redemption price at which Securities of that
series are to be redeemed, and shall state that payment of the redemption price
of such Securities to be redeemed will be made at the office or agency of the
Company, upon presentation and surrender of such Securities, that interest
accrued to the date fixed for redemption will be paid as specified in said
notice, that from and after said date interest will cease to accrue and that
the redemption is for a sinking fund, if such is the case.  If less than all
the Securities of a series are to be redeemed, the notice to the holders of
Securities of that series to be redeemed in whole or in part shall specify the
principal amount thereof to be redeemed.

 

(b)           Notice
to Trustee of Securities to be Redeemed.  If less than all the Securities
of a series are to be redeemed, the Company shall give the Trustee at least 45
days’ notice in advance of the date fixed for redemption (unless the Trustee
shall agree to a shorter period) as to the aggregate principal amount of Securities
of the series to be redeemed, and thereupon the Trustee shall select, by lot or
in such other manner as it shall deem appropriate and fair and shall thereafter
promptly notify the Company in writing of the numbers of the Securities to be
redeemed, in whole or in part, and so long as any securities are represented by
Global Notes, in accordance with the procedures of the Depository.  So long as
the securities are represented by Global Notes registered in the name of The
Depository Trust Company or its nominee, neither the Trustee nor any of its
agents shall have any responsibility for any actions taken or not taken by the
Depository.

 

The Company may, if and whenever it shall so elect, by
delivery of instructions signed on its behalf by an Authorized Officer,
instruct the Trustee or any paying agent to call all or any part of the
Securities of a particular series for redemption and to give notice of
redemption in the manner set forth in this Section, such notice to be in the
name of the Company or its own name as the Trustee or such paying agent may
deem advisable.  In any case in which notice of redemption is to be given by
the Trustee or any such paying agent, the Company shall deliver or cause to be
delivered to the Trustee notice of redemption information at least 5 days prior
to the giving of such notice (unless the Trustee shall agree to a shorter
period).

 

SECTION 3.03.  Payment
of Securities Called for Redemption.  

 

(a)           When
Securities Called for Redemption become Due and Payable.  If the giving of
notice of redemption shall have been completed as above provided, the
Securities or portions of Securities of the series to be redeemed specified in
such notice shall become due and payable on the date and at the place stated in
such notice at the applicable redemption price, together with, subject to the
Company Order or supplemental indenture hereto establishing the terms of such
series of Securities, interest accrued to the date fixed for redemption and
interest on such Securities or portions of Securities shall cease to accrue on
and after the date fixed for redemption, unless the Company shall default in
the payment of such redemption price and accrued interest with respect to any
such Security or portion thereof.  On presentation and surrender of such
Securities on or after the date fixed for redemption at the place of payment
specified in the notice, said Securities shall be paid and redeemed at the
applicable redemption 

18 

 

 

 

 

price
for such series, together with, subject to the Company Order or supplemental
indenture hereto establishing the terms of such series of Securities, interest
accrued thereon to the date fixed for redemption.

 

(b)           Receipt
of New Security upon Partial Payment.  Upon presentation of any Security of
such series which is to be redeemed in part only, the Company shall execute and
the Trustee shall authenticate and the office or agency where the Security is
presented shall deliver to the holder thereof, at the expense of the Company, a
new Security or Securities of the same series, of authorized denominations in
principal amount equal to the unredeemed portion of the Security so presented.

 

SECTION 3.04.  Sinking
Fund for Securities.  The provisions of this Section 3.04 and Sections 3.05
and 3.06 shall be applicable to any sinking fund for the retirement of
Securities of a series, except as otherwise specified as contemplated by
Section 2.01 for Securities of such series.

 

The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series is herein referred to as
a “mandatory sinking fund payment”, and any payment in excess of such minimum
amount provided for by the terms of Securities of any series is herein referred
to as an “optional sinking fund payment”.  If provided for by the terms of
Securities of any series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 3.05.  Each sinking fund payment
shall be applied to the redemption of Securities of such series as provided for
by the terms of Securities of such series.

 

SECTION 3.05.  Satisfaction
of Sinking Fund Payments with Securities.  The Company (i) may deliver
Outstanding Securities of a series (other than any previously called for
redemption) and (ii) may apply as a credit Securities of a series which have
been redeemed either at the election of the Company pursuant to the terms of
such Securities or through the application of permitted optional sinking fund
payments pursuant to the terms of such Securities, in each case in satisfaction
of all or any part of any mandatory sinking fund payment; provided that such
Securities have not been previously so credited.  Such Securities shall be
received and credited for such purpose by the Trustee at the redemption price
specified in such Securities for redemption through operation of the mandatory
sinking fund and the amount of such mandatory sinking fund payment shall be
reduced accordingly.

 

SECTION 3.06.  Redemption
of Securities for Sinking Fund.  Not less than 45 days prior to each
sinking fund payment date for any series of Securities, the Company will
deliver to the Trustee an Officers’ Certificate specifying the amount of the
next ensuing sinking fund payment for that series pursuant to the terms of that
series, the portion thereof, if any, which is to be satisfied by delivering and
crediting Securities of that series pursuant to Section 3.05 and the basis for
such credit and will, together with such Officers’ Certificate, deliver to the
Trustee any Securities to be so delivered.  Not less than 30 days before each
such sinking fund payment date the Securities to be redeemed upon such sinking
fund payment date shall be selected in accordance with the procedures of the
Depository in the manner specified in Section 3.02 and the Company shall give or
cause the Trustee to give notice of the redemption thereof in the name of and
at the expense of the Company in the manner provided in Section 3.02, except
that the notice of redemption shall also state that the Securities of such
series are being redeemed by operation 

19 

 

 

 

 

of
the sinking fund and the sinking fund payment date.  Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Section 3.03.

 

ARTICLE IV.

PARTICULAR COVENANTS OF THE COMPANY 

 

The Company covenants and agrees for each series of
the Securities as follows: 

 

SECTION 4.01.   

SECTION 4.01.  Payment
of Principal (and Premium if any) and Interest on Securities.  The Company
will duly and punctually pay or cause to be paid the principal of (and premium,
if any) and interest on the Securities of that series at the time and place and
in the manner provided herein and established with respect to such Securities.

 

SECTION 4.02.   

SECTION 4.02.  Maintenance
of Office or Agency for Payment, Registration, Transfer and Exchange of
Securities.  So long as any series of the Securities remain outstanding,
the Company agrees to maintain an office or agency with respect to each such
series, which shall be in the Borough of Manhattan, the City and State of New
York or at such other location or locations as may be designated as provided in
this Section 4.02, where (i) Securities of that series may be presented for
payment, (ii) Securities of that series may be presented as hereinabove
authorized for registration of transfer and exchange, and (iii) notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be given or served, such designation to continue with
respect to such office or agency until the Company shall, by written notice signed
by an Authorized Officer and delivered to the Trustee, designate some other
office or agency for such purposes or any of them.  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and
the Company hereby appoints the Trustee as its agent to receive all such
presentations, notices and demands.  The Trustee or its agent will initially
act as paying agent for the Securities.

 

The Company may also from time to time, by written
notice signed by an Authorized Officer and delivered to the Trustee, designate
one or more other offices or agencies for the foregoing purposes within or
outside the Borough of Manhattan, City of New York, and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligations to maintain
an office or agency in the Borough of Manhattan, City of New York for the
foregoing purposes.  The Company will give prompt written notice to the Trustee
of any change in the location of any such other office or agency.

 

SECTION 4.03.  Paying
Agent. 

 

(a)           Duties
of Paying Agent.  If the Company shall appoint one or more paying agents
for all or any series of the Securities, other than the Trustee, the Company
will cause each such paying agent to execute and deliver to the Trustee an
instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section: 

 

20 

 

 

 

 

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

 

(2)                
that it will give the Trustee
prompt notice of any failure by the Company (or by any other obligor of such
Securities) to make any payment of the principal of (and premium, if any) or
interest on the Securities of that series when the same shall be due and
payable; 

 

(3)                
that it will, at any time during
the continuance of any failure referred to in the preceding paragraph (a)(2)
above, upon the written request of the Trustee, forthwith pay to the Trustee
all sums so held in trust by such paying agent; and 

 

(4)                
that it will perform all other
duties of paying agent as set forth in this Indenture.

 

(b)           Company
as Paying Agent.  If the Company shall act as its own paying agent with
respect to any series of the Securities, it will on or before each due date of
the principal of (and premium, if any) or interest on Securities of that
series, set aside, segregate and hold in trust for the benefit of the persons
entitled thereto a sum sufficient to pay such principal (and premium, if any)
or interest so becoming due on Securities of that series until such sums shall
be paid to such persons or otherwise disposed of as herein provided and will
promptly notify the Trustee of such action, or any failure (by it or any other
obligor on such Securities) to take such action.  Whenever the Company shall
have one or more paying agents for any series of Securities, it will, prior to
each due date of the principal of (and premium, if any) or interest on any
Securities of that series, deposit with the paying agent a sum sufficient to
pay the principal (and premium, if any) or interest so becoming due, such sum
to be held in trust for the benefit of the persons entitled to such principal,
premium or interest, and (unless such paying agent is the Trustee) the Company
will promptly notify the Trustee of its action or failure so to act.

 

(c)           Holding
Sums in Trust.  Anything in this Section to the contrary notwithstanding,
(i) the agreement to hold sums in trust as provided in this Section is subject
to the provisions of Section 11.04, and (ii) the Company may at any time, for
the purpose of obtaining the satisfaction and discharge of this Indenture or
for any other purpose, pay, or direct any paying agent to pay, to the Trustee
all sums held in trust by the Company or such paying agent, such sums to be
held by the Trustee upon the same terms and conditions as those upon which such
sums were held by the Company or such paying agent; and, upon such payment by
any paying agent to the Trustee, such paying agent shall be released from all
further liability with respect to such money.

 

SECTION 4.04.  Appointment
to Fill Vacancy in Office of Trustee.  The Company, whenever necessary to
avoid or fill a vacancy in the office of Trustee, will appoint, in the manner
provided in Section 7.10, a Trustee, so that there shall at all times be a
Trustee hereunder.  

 

SECTION 4.05.  Restriction
on Consolidation, Merger of the Company.  The Company will not, while any
of the Securities remain outstanding, consolidate with, or merge into, or 

21 

 

 

 

 

merge
into itself, or sell or convey all or substantially all of its property to any
other Person unless the provisions of Article Ten hereof are complied with.

 

SECTION 4.06.  Original
Issue Discount Security.  In the event that the Company issues an Original
Issue Discount Security, the Company shall file with the Trustee at or prior to
the time of the authentication of such Original Issue Discount Security a
written notice, in such form as mutually agreed upon by the Company and the
Trustee, specifying the amount of original issue discount that will be accrued
on such Original Issue Discount Security in each calendar year from the date of
issuance to the maturity thereof.

 

ARTICLE V.

SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE 

 

SECTION 5.01.  Company
to Furnish Trustee Information as to Names and Addresses of Securityholders. 
The Company will furnish or cause to be furnished to the Trustee (a) on each
regular record date (as defined in Section 2.03) for the Securities of each
Tranche of a series a list (at intervals of at least every six months), in such
form as the Trustee may reasonably require, of the names and addresses of the
holders of such Tranche of Securities as of such regular record date, provided,
that the Company shall not be obligated to furnish or cause to be furnished
such list at any time that the list shall not differ in any respect from the
most recent list furnished to the Trustee by the Company and (b) at such other
times as the Trustee may request in writing within 30 days after the receipt by
the Company of any such request, a list of similar form and content as of a
date not more than 15 days prior to the time such list is furnished; provided,
however, no such list need be furnished for any series for which the Trustee
shall be the Security Registrar.

 

SECTION 5.02.  Responsibilities
of Trustee Relating to Securityholder Information. 

 

(a)           Trustee
to Preserve Information as to Names and Addresses of Securityholders.  The
Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Securities
contained in the most recent list furnished to it as provided in Section 5.01
and as to the names and addresses of holders of Securities received by the
Trustee in its capacity as Security Registrar (if acting in such capacity).

 

(b)           Trustee
may Destroy List of Securityholders on Certain Conditions.  The Trustee may
destroy any list furnished to it as provided in Section 5.01 upon receipt of a
new list so furnished.

 

SECTION 5.03.  Delivery
Obligations of Company. 

  

(a)           Annual
and Other Reports to be Filed by Company with Trustee.  The Company
covenants and agrees to file with the Trustee, within 30 days after the Company
has filed the same with the Commission, a copy of the annual reports and of the
information, documents and other reports (or a copy of such portions of any of
the foregoing as the Commission may from time to time by rules and regulations
prescribe) which the Company may 

22 

 

 

 

 

be
required to file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act; or, if the Company is not required to file information,
documents or reports pursuant to either of such sections, then to file with the
Trustee and, unless the Commission shall not accept such information, documents
or reports, the Commission, in accordance with the rules and regulations
prescribed from time to time by the Commission, such of the supplementary and
periodic information, documents and reports which may be required pursuant to
Section 13 of the Exchange Act, in respect of a security listed and registered
on a national securities exchange as may be prescribed from time to time in
such rules and regulations.

 

(b)           Additional
Information and Reports to be Filed with Trustee and Securities and Exchange
Commission.  The Company covenants and agrees to file with the Trustee and
the Commission, in accordance with the rules and regulations prescribed from
time to time by the Commission, such additional information, documents and
reports with respect to compliance by the Company with the conditions and
covenants provided for in this Indenture as may be required from time to time
by such rules and regulations.

 

(c)           Summaries
of Information and Reports to be Transmitted by Company to Securityholders. 
The Company covenants and agrees to transmit to the Securityholders, as their
names and addresses appear upon the Security Register, within 30 days after the
filing thereof with the Trustee, such summaries of any information, documents
and reports required to be filed by the Company pursuant to subsections (a) and
(b) of this Section as may be required by rules and regulations prescribed from
time to time by the Commission.

 

(d)           Annual
Certificate to be Furnished to Trustee.  The Company covenants and agrees
to furnish to the Trustee, on or before May 15 in each calendar year in which
any of the Securities are outstanding, commencing in May 2014, a certificate
from the principal executive officer, principal financial officer or principal
accounting officer, as to his or her knowledge, of the Company’s compliance
with all conditions and covenants under this Indenture, and if the Company
shall not be in compliance, specifying such non-compliance and the nature and
status thereof of which such signer may have knowledge.  For purposes of this
subsection (d), such compliance shall be determined without regard to any
period of grace or requirement of notice provided under this Indenture.

 

(e)           Effect
of Delivery to Trustee.  Delivery of such information, documents or reports
to the Trustee is for informational purposes only and the Trustee’s receipt
thereof shall not constitute constructive notice of any information contained
therein or determinable from information contained therein.

 

SECTION 5.04.  Delivery
Obligations of Trustee. 

 

(a)           Trustee
to Transmit Annual Report to Securityholders.  The Trustee shall transmit
to Holders such reports concerning the Trustee and its actions under this
Indenture as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto.  If required by Section 313(a) of
the Trust Indenture Act, the Trustee shall, within sixty days after May 15 in
each year following the date of the initial issuance of Securities under this
Indenture deliver to Holders a brief report, dated on or prior to May 15 in
each year, which complies with the provisions of such Section 313(a).  The
Trustee shall also comply with 

23 

 

 

 

 

Trust
Indenture Act Section 313(b) and shall transmit all reports as required by Trust
Indenture Act Section 313(c).

 

(b)           Copies of
Reports to be Filed with Stock Exchanges and Securities and Exchange Commission.  A copy of each such reports shall, at
the time of such transmission to Holders, be filed by the Trustee with each
stock exchange, if any, upon which the Securities are listed, with the
Commission and with the Company.  The Company will promptly notify the Trustee
in writing when the Securities are listed on any stock exchange and of any
delisting thereof.

 

SECTION 5.05.  Communication between Holders.  Holders
may communicate pursuant to Trust Indenture Act Section 312(b) with other
Holders with respect to their rights under this Indenture or the Notes. 
The Company, the Trustee, the Security Registrar and anyone else shall have the
protection of Trust Indenture Act Section 312(c).  

 

ARTICLE VI.

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT 

 

SECTION 6.01.  Events
of Default. 

 

(a)           Events
of Default Defined.  Whenever used herein with respect to Securities of a particular
series, “Event of Default” means any one or more of the following events which
has occurred and is continuing: 

 

(1)                
default in the payment of any
installment of interest upon any of the Securities of that series, as and when
the same shall become due and payable, and continuance of such default for a
period of 30 days; 

 

(2)                
default in the payment of the
principal of (or premium, if any, on) any of the Securities of that series as
and when the same shall become due and payable whether at maturity, upon redemption,
pursuant to any sinking fund obligation, by declaration or otherwise, and
continuance of such default for a period of three Business Days; 

 

(3)                
failure on the part of the Company
duly to observe or perform any other of the covenants or agreements on the part
of the Company with respect to that series contained in such Securities or
otherwise established with respect to that series of Securities pursuant to
Section 2.01 hereof or contained in this Indenture (other than a covenant or
agreement which has been expressly included in this Indenture solely for the
benefit of one or more series of Securities other than such series) for a
period of 90 days after the date on which written notice of such failure,
requiring the same to be remedied and stating that such notice is a “Notice of
Default” hereunder, shall have been given to the Company by the Trustee, by
registered or certified mail, or to the Company and the Trustee by the holders
of at least 33% in principal amount of the Securities of that series at the
time outstanding; 

 

24 

 

 

 

 

(4)                
a decree or order by a court
having jurisdiction in the premises shall have been entered adjudging the
Company as bankrupt or insolvent, or approving as properly filed a petition
seeking liquidation or reorganization of the Company under the Federal
Bankruptcy Code or any other similar applicable Federal or State law, and such
decree or order shall have continued unvacated and unstayed for a period of 90
consecutive days; or an involuntary case shall be commenced under such Code in
respect of the Company and shall continue undismissed for a period of 90
consecutive days or an order for relief in such case shall have been entered;
or a decree or order of a court having jurisdiction in the premises shall have
been entered for the appointment on the ground of insolvency or bankruptcy of a
receiver or custodian or liquidator or trustee or assignee in bankruptcy or
insolvency of the Company or of its property, or for the winding up or
liquidation of its affairs, and such decree or order shall have remained in
force unvacated and unstayed for a period of 90 consecutive days; 

 

(5)                
the Company shall institute
proceedings to be adjudicated a voluntary bankrupt, or shall consent to the
filing of a bankruptcy proceeding against it, or shall file a petition or
answer or consent seeking liquidation or reorganization under the Federal
Bankruptcy Code or any other similar applicable Federal or State law, or shall
consent to the filing of any such petition, or shall consent to the appointment
on the ground of insolvency or bankruptcy of a receiver or custodian or
liquidator or trustee or assignee in bankruptcy or insolvency of it or of its
property, or shall make an assignment for the benefit of creditors; or 

 

(6)                
the occurrence of any other Event
of Default with respect to Securities of such series, as contemplated by
Section 2.01 hereof.

 

(b)           Acceleration
of Maturity upon Event of Default.  The Company shall file with the Trustee
written notice of the occurrence of any Event of Default within five Business
Days of the Company’s becoming aware of any such Event of Default.  In each and
every such case, unless the principal of all the Securities of that series
shall have already become due and payable, either the Trustee or the holders of
not less than 33% in aggregate principal amount of the Securities of that
series then outstanding hereunder, by notice in writing to the Company (and to
the Trustee if given by such Securityholders), may declare the principal (or,
if any of such Securities are Original Issue Discount Securities, such portion
of the principal amount thereof as may be specified by their terms as
contemplated by Section 2.01) of all the Securities of that series to be due
and payable immediately, and upon any such declaration the same shall become
and shall be immediately due and payable, anything contained in this Indenture
or in the Securities of that series or established with respect to that series
pursuant to Section 2.01 hereof to the contrary notwithstanding.

 

(c)           Waiver
of Default and Rescission of Declaration of Maturity.  Section 6.01(b),
however, is subject to the condition that if, at any time after the principal
of the Securities of that series shall have been so declared due and payable,
and before any judgment or decree for the payment of the monies due shall have
been obtained or entered as hereinafter provided, the Company shall pay or
shall deposit with the Trustee a sum sufficient to pay all matured installments
of interest upon all the Securities of that series and the principal of (and
premium, if any, on) any and all Securities of that series which shall have
become due otherwise 

25 

 

 

 

 

than
by acceleration (with interest upon such principal and premium, if any, and, to
the extent that such payment is enforceable under applicable law, upon overdue
installments of interest, at the rate per annum expressed in the Securities of
that series to the date of such payment or deposit) and the amount payable to
the Trustee under Section 7.06, and any and all defaults under the Indenture,
other than the nonpayment of principal on Securities of that series which shall
not have become due by their terms, shall have been remedied or waived as
provided in Section 6.06, then and in every such case the holders of a majority
in aggregate principal amount of the Securities of that series then
outstanding, by written notice to the Company and to the Trustee, may rescind
and annul such declaration and its consequences with respect to that series of
Securities; but no such rescission and annulment shall extend to or shall
affect any subsequent default, or shall impair any right consequent thereon.

 

(d)           Restoration
of Former Position and Rights upon Curing Default.  In case the Trustee
shall have proceeded to enforce any right with respect to Securities of that
series under this Indenture and such proceedings shall have been discontinued
or abandoned because of such rescission or annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such
case the Company and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the
Company and the Trustee shall continue as though no such proceedings had been
taken.

 

SECTION 6.02.  Rights
of Trustee upon Default.  

 

(a)           Covenant
of Company to Pay to Trustee Whole Amount due on Securities on Default in
Payment of Interest or Principal (and Premium, if any).  The Company
covenants that in case an Event of Default described in subsection 6.01(a)(1)
or (a)(2) shall have occurred and be continuing, upon demand of the Trustee,
the Company will pay to the Trustee, for the benefit of the holders of the
Securities of that series, the whole amount that then shall have become due and
payable on all such Securities for principal (and premium, if any) or interest,
or both, as the case may be, with interest upon the overdue principal (and
premium, if any) and (to the extent that payment of such interest is
enforceable under applicable law and without duplication of any other amounts
paid by the Company in respect thereof) upon overdue installments of interest
at the rate per annum expressed in the Securities of that series; and, in
addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, and the amount payable to the Trustee under Section
7.06.

 

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

 

(c)           Proof
of Claim by Trustee in Bankruptcy, Reorganization or Receivership Proceeding. 
In case of any receivership, insolvency, liquidation, bankruptcy, reorganization,

26 

 

 

 

 

readjustment,
arrangement, composition or other judicial proceedings affecting the Company,
any other obligor on such Securities, or the creditors or property of either,
the Trustee shall have power to intervene in such proceedings and take any
action therein that may be permitted by the court and shall (except as may be
otherwise provided by law) be entitled to file such proofs of claim and other
papers and documents as may be necessary or advisable in order to have the
claims of the Trustee and of the holders of Securities of such series allowed
for the entire amount due and payable by the Company or such other obligor
under this Indenture at the date of institution of such proceedings and for any
additional amount which may become due and payable by the Company or such other
obligor after such date, and to collect and receive any monies or other
property payable or deliverable on any such claim, and to distribute the same
after the deduction of the amount payable to the Trustee under Section 7.06;
and any receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the holders of Securities of such series to make such
payments to the Trustee, and, in the event that the Trustee shall consent to
the making of such payments directly to such Securityholders, to pay to the
Trustee any amount due it under Section 7.06.

 

(d)           Rights
of Action and of Asserting Claims may be Enforced by Trustee without Possession
of Securities.  All rights of action and of asserting claims under this
Indenture, or under any of the terms established with respect to Securities of
that series, may be enforced by the Trustee without the possession of any of
such Securities, or the production thereof at any trial or other proceeding
relative thereto, and any such suit or proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for payment to the Trustee of any
amounts due under Section 7.06, be for the ratable benefit of the holders of
the Securities of such series.

 

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

 

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 that series or the rights of any holder
thereof or to authorize the Trustee to vote in respect of the claim of any
Securityholder in any such proceeding.

 

SECTION 6.03.  Application
of Monies Collected by Trustee.  Any monies collected by the Trustee
pursuant to Section 6.02 with respect to a particular series of Securities
shall be applied in the order following, at the date or dates fixed by the
Trustee and, in case of the distribution of such monies on account of principal
(or premium, if any) or interest, upon presentation of the several Securities
of that series, and stamping thereon the payment, if only partially paid, and
upon surrender thereof if fully paid: 

 

27 

 

 

 

 

FIRST: To the payment of costs and expenses of
collection and of all amounts payable to the Trustee under Section 7.06; 

 

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

 

THIRD: To the Company.

 

SECTION 6.04.  Limitation
on Suits by Holders of Securities.  No holder of any Security of any series
shall have any right by virtue or by availing of any provision of this
Indenture to institute any suit, action or proceeding in equity or at law upon
or under or with respect to this Indenture or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless such holder previously
shall have given to the Trustee written notice of an Event of Default and of
the continuance thereof with respect to Securities of such series specifying
such Event of Default, as hereinbefore provided, and unless also the holders of
not less than 33% in aggregate principal amount of the Securities of such
series then outstanding shall have made written request upon the Trustee to
institute such action, suit or proceeding in its own name as trustee hereunder
and shall have offered to the Trustee indemnity reasonably satisfactory to it against
the costs, expenses and liabilities to be incurred therein or thereby, and the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity, shall have failed to institute any such action, suit or proceeding;
it being understood and intended, and being expressly covenanted by the taker
and holder of every Security of such series with every other such taker and
holder and the Trustee, that no one or more holders of Securities of such
series shall have any right in any manner whatsoever by virtue or by availing
of any provision of this Indenture to affect, disturb or prejudice the rights
of the holders of any other of such Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities of such series.  For
the protection and enforcement of the provisions of this Section, each and
every Securityholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

 

Notwithstanding any other provisions of this
Indenture, however, the right of any holder of any Security to receive payment
of the principal of (and premium, if any) and interest on such Security, as
therein provided, on or after the respective due dates expressed in such
Security (or in the case of redemption, on the redemption date), or to
institute suit for the enforcement of any such payment on or after such
respective dates or redemption date, shall not be impaired or affected without
the consent of such holder.

 

SECTION 6.05.  Remedies;
Delay or Omission in Exercise of Rights. 

 

(a)           Remedies
Cumulative.  All powers and remedies given by this Article to the Trustee
or to the Securityholders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any others thereof or of any other powers and
remedies available to the Trustee or the holders of the Securities, by judicial
proceedings or otherwise, to enforce the 

28 

 

 

 

 

performance
or observance of the covenants and agreements contained in this Indenture or
otherwise established with respect to such Securities.

 

(b)           Delay
or Omission in Exercise of Rights not Waiver of Default.  No delay or omission
of the Trustee or of any holder of any of the Securities to exercise any right
or power accruing upon any Event of Default occurring and continuing as
aforesaid shall impair any such right or power, or shall be construed to be a
waiver of any such default or an acquiescence therein; and, subject to the
provisions of Section 6.04, every power and remedy given by this Article or by
law to the Trustee or to the Securityholders may be exercised from time to
time, and as often as shall be deemed expedient, by the Trustee or by the
Securityholders.

 

SECTION 6.06.  Rights
of Holders of Majority in Principal Amount of Securities to Direct Trustee and
to Waive Defaults.  The holders of a majority in aggregate principal amount
of the Securities of any series at the time outstanding, determined in
accordance with Section 8.04, shall have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred on the Trustee with respect to such
series; provided, however, that such direction shall not be in conflict with
any rule of law or with this Indenture or unduly prejudicial to the rights of
holders of Securities of any other series at the time outstanding determined in
accordance with Section 8.04 not parties thereto.  Subject to the provisions of
Section 7.01, the Trustee shall have the right to decline to follow any such
direction if the Trustee in good faith shall, by a Responsible Officer or
Officers of the Trustee, determine that the proceeding so directed might
involve the Trustee in personal liability.  The holders of a majority in
aggregate principal amount of the Securities of any series at the time
outstanding affected thereby, determined in accordance with Section 8.04, may
on behalf of the holders of all of the Securities of such series waive any past
default in the performance of any of the covenants contained herein or
established pursuant to Section 2.01 with respect to such series and its
consequences, except a default in the payment of the principal of, or premium,
if any, or interest on, any of the Securities of that series as and when the
same shall become due by the terms of such Securities otherwise than by
acceleration (unless such default has been cured and a sum sufficient to pay
all matured installments of interest and principal otherwise than by
acceleration and any premium has been deposited with the Trustee (in accordance
with Section 6.01(c))) or a call for redemption of Securities of that series. 
Upon any such waiver, the default covered thereby shall be deemed to be cured
for all purposes of this Indenture and the Company, the Trustee and the holders
of the Securities of such series shall be restored to their former positions
and rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.

 

SECTION 6.07.  Notice
of Known Defaults.  The Trustee shall, within 90 days after the occurrence
of a default with respect to a particular series, transmit to the holders of
Securities of that series, as their names and addresses appear upon the
Security Register, notice of all defaults with respect to that series known to
the Trustee, unless such defaults shall have been cured or waived before the
giving of such notice (the term “defaults” for the purposes of this Section
being hereby defined to be the events specified in subsections (1), (2), (3),
(4), (5), (6) and (7) of Section 6.01(a), not including any periods of grace
provided for therein and irrespective of the giving of notice provided for by
subsection (4) of Section 6.01(a)); provided, that, except in the case of
default in the payment of the principal of (or premium, if any) or interest on
any of the Securities of that series or in the payment of any sinking or
analogous fund installment 

29 

 

 

 

 

established
with respect to that series, the Trustee shall be protected in withholding such
notice if and so long as a trust committee of directors and/or Responsible
Officers, of the Trustee in good faith determine that the withholding of such
notice is in the interests of the holders of Securities of that series;
provided further, that in the case of any default of the character specified in
Section 6.01(a)(4) with respect to Securities of such series no such notice to
the holders of the Securities of that series shall be given until at least 30
days after the occurrence thereof.

 

The Trustee shall not be deemed to have knowledge of
any default, except (i) a default under subsection (a)(1), (a)(2) or (a)(3) of
Section 6.01 as long as the Trustee is acting as paying agent for such series
of Securities or (ii) any default as to which a Responsible Officer charged
with the administration of this Indenture shall have received written notice.

 

SECTION 6.08.  Undertaking
to Pay Costs in Certain Suits under Indenture or Against Trustee.  All
parties to this Indenture agree, and each holder of any Securities by his or
her acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken
or omitted by it as Trustee, the filing by any party litigant in such suit of
an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall not apply to any suit instituted by
the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the outstanding
Securities of any series, or to any suit instituted by any Securityholder for
the enforcement of the payment of the principal of (or premium, if any) or
interest on any Security of such series, on or after the respective due dates
expressed in such Security or established pursuant to this Indenture.

 

ARTICLE VII.

CONCERNING THE TRUSTEE 

 

SECTION 7.01.  Certain
Duties and Responsibilities of Trustee. 

 

(a)           Upon Event of Default.  The Trustee, prior to the occurrence of an Event of
Default with respect to Securities of a series and after the curing of all
Events of Default with respect to Securities of that series which may have
occurred, shall undertake to perform with respect to Securities of such series
such duties and only such duties as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee.  In case an Event of Default with respect to
Securities of a series has occurred (which has not been cured or waived), the
Trustee shall exercise with respect to Securities of that series such of the
rights and powers vested in it by this Indenture, and use the same degree of
care and skill in their exercise, as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs.

 

(b)           Negligence
or Willful Misconduct by Trustee.  No provision of this Indenture shall be
construed to relieve the Trustee from liability for its own negligent action,
its own negligent failure to act, or its own willful misconduct, except that: 

 

30 

 

 

 

 

(1)                
prior to the occurrence of an
Event of Default with respect to Securities of a series and after the curing or
waiving of all such Events of Default with respect to that series which may
have occurred: 

 

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

 

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

 

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

 

(3)                
the Trustee shall not be liable
with respect to any action taken or omitted to be taken by it in good faith in
accordance with the written direction of the holders of not less than a
majority in principal amount of the Securities of any series at the time outstanding
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee under this Indenture with respect to the Securities of that
series; and 

 

(4)                
none of the provisions contained
in this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur or risk personal financial liability in the performance of any
of its duties or in the exercise of any of its rights or powers, if the Trustee
reasonably believes that the repayment of such funds or liability is not
reasonably assured to it under the terms of this Indenture or adequate
indemnity against such risk is not reasonably assured to it.

 

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

 

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

 

(a)           Trustee
Reliance on Documents.  The Trustee may conclusively rely and shall be
fully protected in acting or refraining from acting upon any resolution,
certificate, 

31 

 

 

 

 

statement,
instrument, opinion, report, notice, request, direction, consent, order,
demand, approval, bond, security or other paper or document believed by it (i)
to be genuine and (ii) to have been signed or presented by the proper party or
parties; 

 

(b)           Evidence
Provided for Certain Instruments.  Any request, direction, order or demand
of the Company mentioned herein shall be sufficiently evidenced by a Board
Resolution or an Officers’ Certificate (unless other evidence in respect
thereof is specifically prescribed herein); 

 

(c)           Trustee
may Consult with Counsel and Act on Advice or Opinion of Counsel.  The
Trustee may consult with counsel of its selection and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted hereunder in
good faith and in reliance thereon; 

 

(d)           Trustee
may Require Indemnity from Securityholders.  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 Securityholders,
pursuant to the provisions of this Indenture, unless such Securityholders shall
have offered to the Trustee security or indemnity satisfactory to it against
the costs, expenses and liabilities which may be incurred therein or thereby; 

 

(e)           Trustee
not Liable for Actions in Good Faith Believed to be Authorized.  The
Trustee shall not be liable for any action taken or omitted to be taken by it
in good faith and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture; 

 

(f)            Trustee
not Bound to Investigate Facts or Matters.  The Trustee shall not be bound
to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
direction, order, demand, approval, bond, security, or other papers or
documents, unless requested in writing so to do by the holders of not less than
a majority in principal amount of the outstanding Securities of the particular
series affected thereby (determined as provided in Section 8.04); provided,
however, that if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of
such investigation is, in the opinion of the Trustee, not reasonably assured to
the Trustee by the security afforded to it by the terms of this Indenture, the
Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding.  The reasonable expense of every
such examination shall be paid by the Company or, if paid by the Trustee, shall
be repaid by the Company upon demand.  Notwithstanding the foregoing, the
Trustee, in its direction, may make such further inquiry or investigation into
such facts or matters as it may see fit.  In making any investigation required
or authorized by this subparagraph, the Trustee shall be entitled to examine
books, records and premises of the Company, personally or by agent or attorney
at the expense of the Company and shall incur no liability of any kind by
reason of such inquiry or investigation; 

 

(g)           Trustee
may Perform Duties Directly or through Agents or Attorneys.  The Trustee
may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee
shall not be responsible for 

32 

 

 

 

 

any
misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder; 

 

(h)           Permissive
Rights of Trustee.  The permissive right of the Trustee to do things
enumerated in this Indenture shall not be construed as a duty;

 

(i)            Trustee Not
Responsible or Liable for Special, Indirect or Consequential Losses or Damages.  In no event shall the Trustee be
responsible or liable for special, indirect, or consequential loss or damage of
any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such
loss or damage and regardless of the form of action;

 

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

 

(k)           Certificate
of Authorized Persons.  The Trustee may request that the Company deliver a
certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture.

 

 

SECTION 7.03.  Limitations
in Liability of Trustee.  

 

(a)           Trustee
not Liable for Recitals in Indenture or in Securities.  The recitals
contained herein and in the Securities (other than the Certificate of
Authentication on the Securities) shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for the correctness of the
same.

 

(b)           No
Representations by Trustee as to Validity or Indenture or of Securities.  The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities.

 

(c)           Trustee
not Accountable for Use of Securities or Proceeds.  The Trustee shall not
be accountable for the use or application by the Company of any of the
Securities or of the proceeds of such Securities, or for the use or application
of any monies paid over by the Trustee in accordance with any provision of this
Indenture or established pursuant to Section 2.01, or for the use or
application of any monies received by any paying agent other than the Trustee.

 

SECTION 7.04.  Trustee,
Paying Agent or Security Registrar may Own Securities.  The Trustee or any
paying agent or Security Registrar, in its individual or any other capacity,
may become the owner or pledgee of Securities with the same rights it would
have if it were not Trustee, paying agent or Security Registrar.

 

SECTION 7.05.  Monies
Received by Trustee to be Held in Trust without Interest.  Subject to the
provisions of Section 11.04, all monies received by the Trustee shall, until
used or applied as herein provided, be held in trust for the purposes for which
they were received, but need not be segregated from other funds except to the
extent required by law.  The Trustee shall 

33 

 

 

 

 

be
under no liability for interest on any monies received by it hereunder except
such as it may agree in writing with the Company to pay thereon.

 

SECTION 7.06.  Compensation
and Reimbursement of Trustee. 

 

(a)           Trustee
Entitled to Compensation, Reimbursement and Indemnity.  The Company
covenants and agrees to pay to the Trustee from time to time, and the Trustee
shall be entitled to, reasonable compensation (which shall not be limited by
any provision of law in regard to the compensation of a trustee of an express
trust) for all services rendered by it in the execution of the trusts hereby
created and in the exercise and performance of any of the powers and duties
hereunder of the Trustee, and the Company will pay or reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of
this Indenture (including the reasonable compensation and the reasonable
expenses and disbursements of its counsel and agents and of all persons not
regularly in its employ) except any such expense, disbursement or advance as
shall be determined to have been caused by its own negligence, willful
misconduct or bad faith.  The Company also covenants to indemnify the Trustee
(and its officers, agents, directors and employees) for, and to hold it
harmless against, any loss, liability or expense incurred without negligence,
willful misconduct or bad faith on the part of the Trustee and arising out of
or in connection with the acceptance or administration of this trust, 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.

 

(b)           Obligations
to Trustee to be Secured by Lien prior to Securities.  The obligations of
the Company under this Section to compensate and indemnify the Trustee and to
pay or reimburse the Trustee for expenses, disbursements and advances shall
constitute additional indebtedness hereunder.  Such additional indebtedness
shall be secured by a lien prior to that of the Securities upon all property
and funds held or collected by the Trustee as such, except funds held in trust
for the benefit of the holders of particular Securities.

 

(c)           Nature
of Expenses.  Without prejudice to any other rights available to the
Trustee under applicable law, when the Trustee incurs expenses or renders
services in connection with an Event of Default, the expenses (including
reasonable charges and expenses of its counsel) and compensation for its
services are intended to constitute expenses of administration under applicable
federal or state bankruptcy, insolvency or similar law.

 

(d)           Survival
of Obligations.  The provisions of this Section 7.06 shall survive the
satisfaction and discharge of this Indenture or the appointment of a successor
trustee.

 

SECTION 7.07.  Trustee
May Rely on Certificate of Officers of Company.  Except as otherwise
provided in Section 7.01, whenever in the administration of the provisions of
this Indenture the Trustee shall deem it necessary or desirable that a matter
be proved or established prior to taking or suffering or omitting to take any
action hereunder, such matter (unless other evidence in respect thereof be
herein specifically prescribed) may, in the absence of bad faith on the part of
the Trustee, be deemed to be conclusively proved and established by an
Officers’ Certificate delivered to the Trustee and such certificate, in the
absence of bad faith on the part of 

34 

 

 

 

 

the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or
omitted to be taken by it under the provisions of this Indenture upon the faith
thereof.

 

SECTION 7.08.  Trustee
Must Eliminate Conflict or Resign.  If the Trustee has acquired or shall
acquire a conflicting interest within the meaning of the Trust Indenture Act,
the Trustee shall either eliminate such interest or resign, to the extent and
in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture.

 

SECTION 7.09.  Requirements
for Eligibility of Trustee.  There shall at all times be a Trustee with
respect to the Securities issued hereunder which shall at all times be a
corporation organized and doing business under the laws of the United States of
America or any State or Territory thereof or of the District of Columbia, or a
corporation or other person permitted to act as trustee by the Commission,
authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least 50 million dollars, and subject to
supervision or examination by Federal, State, Territorial, or District of
Columbia authority.  If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising
or examining authority, then for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published.  The Company may not, nor may any person directly or indirectly
controlling, controlled by, or under common control with the Company, serve as
Trustee.  In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Trustee shall resign
immediately in the manner and with the effect specified in Section 7.10.

 

SECTION 7.10.  Trustee.
 

 

(a)           Resignation
of Trustee and Appointment of Successor.  The Trustee or any successor
hereafter appointed, may at any time resign with respect to the Securities of
one or more series by giving written notice thereof to the Company and by
transmitting notice of resignation by mail, first class postage prepaid, to the
Securityholders of such series, as their names and addresses appear upon the
Security Register.  Upon receiving such notice of resignation, the Company
shall promptly appoint a successor trustee with respect to Securities of such
series by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor trustee.  If no successor trustee shall
have been so appointed and have accepted appointment within 30 days after the
mailing of such notice of resignation, the resigning Trustee may petition at
the expense of the Company any court of competent jurisdiction for the
appointment of a successor trustee with respect to Securities of such series,
or any Securityholder of that series who has been a bona fide holder of a
Security or Securities for at least six months may, subject to the provisions
of Section 6.08, on behalf of himself and all others similarly situated,
petition any such court for the appointment of a successor trustee.  Such court
may thereupon after such notice, if any, as it may deem proper and prescribe,
appoint a successor trustee.

 

(b)           Removal
of Trustee by Company or by Court on Securityholders’ Application.  In case
at any time any of the following shall occur: 

 

35 

 

 

 

 

(1)           the
Trustee shall fail to comply with the provisions of Section 7.08 after written
request therefor by the Company or by any Securityholder who has been a bona
fide holder of a Security or Securities for at least six months; or 

 

(2)           The
Trustee shall cease to be eligible in accordance with the provisions of Section
7.09 and shall fail to resign after written request therefor by the Company or
by any such Securityholder; or 

 

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

 

then, in any such case, the Company may remove the
Trustee with respect to all Securities and appoint a successor trustee by
written instrument, in duplicate, executed by order of the Board of Directors,
one copy of which instrument shall be delivered to the Trustee so removed and
one copy to the successor trustee, or, subject to the provisions of Section
6.08, unless, with respect to subsection (b)(1) above, the Trustee’s duty to
resign is stayed as provided in Section 310(b) of the Trust Indenture Act, any
Securityholder who has been a bona fide holder of a Security or Securities for
at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor trustee.  Such court may thereupon
after such notice, if any, as it may deem proper and prescribe, remove the
Trustee and appoint a successor trustee.

 

(c)           Removal
of Trustee by Holders of Majority in Principal Amount of Securities.  The
holders of a majority in aggregate principal amount of the Securities of any
series at the time outstanding may at any time remove the Trustee with respect
to such series and appoint a successor trustee.

 

(d)           Time
when Resignation or Removal of Trustee Effective.  Any resignation or
removal of the Trustee and appointment of a successor trustee with respect to
the Securities of a series pursuant to any of the provisions of this Section
shall become effective upon acceptance of appointment by the successor trustee
as provided in Section 7.11.

 

(e)           One
Trustee for each Series.  Any successor trustee appointed pursuant to this
Section may be appointed with respect to the Securities of one or more series
or all of such series, and at any time there shall be only one Trustee with
respect to the Securities of any particular series.

 

(f)            Removal
of Trustee by the Company.  So long as no Event of Default has occurred and
is continuing with respect to the Securities of a series, the Company may at
any time remove the Trustee with respect to such series and appoint a successor
trustee. 

 

SECTION 7.11.  Successor
Trustee.  

 

(a)           Acceptance
by Successor Trustee.  In case of the appointment hereunder of a successor
trustee with respect to all Securities, every such successor trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument 

36 

 

 

 

 

accepting
such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company
or the successor trustee, such retiring Trustee shall, upon payment of its
charges, execute and deliver an instrument transferring to such successor
trustee all the rights, powers, and trusts of the retiring Trustee and shall
duly assign, transfer and deliver to such successor trustee all property and
money held by such retiring Trustee hereunder, subject to any prior lien
provided for in Section 7.06(b).

 

(b)           Trustee
with Respect to Less than all Series.  In case of the appointment hereunder
of a successor trustee with respect to the Securities of one or more (but not
all) series, the Company, the retiring Trustee and each successor trustee with
respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto wherein each successor trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary
or desirable to transfer and confirm to, and to vest in, each successor trustee
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor trustee relates, (2) shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be
vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Trustee and that no
Trustee shall be responsible for any act or failure to act on the part of any
other Trustee hereunder; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided therein, such retiring Trustee shall
with respect to the Securities of that or those series to which the appointment
of such successor trustee relates have no further responsibility for the
exercise of rights and powers or for the performance of the duties and
obligations vested in the Trustee under this Indenture, and each such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor trustee relates; but, on request of the Company or any successor
trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor trustee, to the extent contemplated by such supplemental indenture,
the property and money held by such retiring Trustee hereunder with respect to
the Securities of that or those series to which the appointment of such
successor trustee relates.

 

(c)           Company
to Confirm Trustee’s Rights.  Upon request of any such successor trustee,
the Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor trustee all such rights, powers and
trusts referred to in paragraph (a) or (b) of this Section, as the case may be.

 

37 

 

 

 

 

(d)           Successor
Trustee to be Qualified.  No successor trustee shall accept its appointment
unless at the time of such acceptance such successor trustee shall be qualified
under the Trust Indenture Act and eligible under this Article.

 

(e)           Notice
of Succession.  Upon acceptance of appointment by a successor trustee as
provided in this Section, the Company shall transmit notice of the succession
of such trustee hereunder to the Securityholders, as their names and addresses
appear upon the Security Register.  If the Company fails to transmit such
notice within ten days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be transmitted at the
expense of the Company.

 

SECTION 7.12.  Successor
to Trustee by Merger, Consolidation of Succession to Business.  Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be qualified under the provisions of the Trust Indenture Act
and eligible under the provisions of Section 7.09, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding.  In case any
Securities shall have been authenticated, but not delivered, by the Trustee
then in office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

 

SECTION 7.13.  Limitations
on Rights of Trustee as a Creditor to Obtain Payment of Certain Claims.  If
and when the Trustee shall become a creditor of the Company (or any other
obligor upon the Securities), the Trustee shall be subject to the provisions of
the Trust Indenture Act regarding collection of claims against the Company (or
any other obligor upon the Securities).

 

ARTICLE VIII.

CONCERNING THE SECURITYHOLDERS 

 

SECTION 8.01.  Evidence
of Action by Securityholders.  Whenever in this Indenture it is provided
that the holders of a majority or specified percentage in aggregate principal
amount of the Securities of a particular series may take any action (including
the making of any demand or request, the giving of any notice, consent or
waiver or the taking of any other action), the fact that at the time of taking
any such action the holders of such majority or specified percentage of that
series have joined therein may be evidenced by any instrument or any number of
instruments of similar tenor executed by such holders of Securities of that
series in person or by agent or proxy appointed in writing.

 

If the Company shall solicit from the Securityholders
of any series any request, demand, authorization, direction, notice, consent,
waiver or other action, the Company may, at its option, as evidenced by an
Officers’ Certificate, fix in advance a record date for such series for the
determination of Securityholders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other action, but the
Company shall have no obligation to do so.  If 

38 

 

 

 

 

such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other
action may be given before or after the record date, but only the
Securityholders of record at the close of business on the record date shall be
deemed to be Securityholders for the purposes of determining whether
Securityholders of the requisite proportion of outstanding Securities of that
series have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other action, and for that
purpose the outstanding Securities of that series shall be computed as of the
record date; provided that no such authorization, agreement or consent by such
Securityholders on the record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than
six months after the record date.

 

In determining whether the holders of the requisite
aggregate principal amount of Securities of a particular series have concurred
in any direction, consent or waiver under this Indenture, the principal amount
of an Original Issue Discount Security that shall be deemed to be outstanding
for such purposes shall be the amount of the principal thereof that would be
due and payable as of the date of such determination upon a declaration of
acceleration of the maturity thereof pursuant to Section 6.01.

 

SECTION 8.02.  Proof
of Execution of Instruments and of Holding of Securities.  Subject to the
provisions of Section 7.01, proof of the execution of any instrument by a
Securityholder (such proof will not require notarization) or his agent or proxy
and proof of the holding by any person of any of the Securities shall be
sufficient if made in the following manner: 

 

(a)           The fact and date of the execution by any such person of
any instrument may be proved in any reasonable manner acceptable to the
Trustee.

 

(b)           The ownership of Securities shall be proved by the
Security Register of such Securities or by a certificate of the Security
Registrar thereof.

 

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

 

SECTION 8.03.  Who
may be Deemed Owners of Securities.  Prior to the due presentment for
registration of transfer of any Security, the Company, the Trustee, any paying
agent and any Security Registrar may deem and treat the person in whose name
such Security shall be registered upon the books of the Company as the absolute
owner of such Security (whether or not such Security shall be overdue and notwithstanding
any notice of ownership or writing thereon made by anyone other than the
Security Registrar) for the purpose of receiving payment of or on account of
the principal of and premium, if any, and (subject to Section 2.03) interest on
such Security and for all other purposes; and neither the Company nor the
Trustee nor any paying agent nor any Security Registrar shall be affected by
any notice to the contrary.

 

SECTION 8.04.  Securities
Owned by Company or Affiliated Persons Disregarded for Certain Purposes.  In
determining whether the holders of the requisite aggregate principal amount of
Securities of a particular series have concurred in any direction, consent or
waiver under this Indenture, Securities of that series which are owned by the
Company or any other obligor on the Securities of that series or by any person
directly or indirectly controlling or 

39 

 

 

 

 

controlled
by or under common control with the Company or any other obligor on the
Securities of that series shall be disregarded and deemed not to be outstanding
for the purpose of any such determination, except that for the purpose of
determining whether the Trustee shall be protected in relying on any such
direction, consent or waiver, only Securities of such series which the Trustee
actually knows are so owned shall be so disregarded.  Securities so owned which
have been pledged in good faith may be regarded as outstanding for the purposes
of this Section, if the pledgee shall establish to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not a person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Company or any such other
obligor.  In case of a dispute as to such right, any decision by the Trustee
taken upon the advice of counsel shall be full protection to the Trustee.

 

SECTION 8.05.  Instruments
Executed by Securityholders Binding on Future Holders.  At any time prior
to (but not after) the evidencing to the Trustee, as provided in Section 8.01,
of the taking of any action by the holders of the majority or percentage in
aggregate principal amount of the Securities of a particular series specified
in this Indenture in connection with such action, any holder of a Security of
that series which is shown by the evidence to be included in the Securities the
holders of which have consented to such action may, by filing written notice
with the Trustee, and upon proof of holding as provided in Section 8.02, revoke
such action so far as concerns such Security.  Except as aforesaid any such
action taken by the holder of any Security shall be conclusive and binding upon
such holder and upon all future holders and owners of such Security, and of any
Security issued in exchange therefor, on registration of transfer thereof or in
place thereof, irrespective of whether or not any notation in regard thereto is
made upon such Security.  Any action taken by the holders of the majority or
percentage in aggregate principal amount of the Securities of a particular
series specified in this Indenture in connection with such action shall be
conclusively binding upon the Company, the Trustee and the holders of all the
Securities of that series.

 

ARTICLE IX.

SUPPLEMENTAL INDENTURES 

 

SECTION 9.01.  Supplemental
Indenture Without Consent of Securityholders.  In addition to any
supplemental indenture otherwise authorized by this Indenture, the Company,
when authorized by a Board Resolution, and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental hereto
(which shall conform to the provisions of the Trust Indenture Act as then in
effect), without the consent of the Securityholders, for one or more of the
following purposes: 

 

(a)           to evidence the succession of another person to the
Company or a successor to the Company, and the assumption by any such successor
of the covenants of the Company contained herein or otherwise established with
respect to the Securities; or 

 

(b)           to add to the covenants of the Company such further
covenants, restrictions, conditions or provisions for the protection of the
holders of the Securities of all or any series, and to make the occurrence, or
the occurrence and continuance, of a default in any of such additional
covenants, restrictions, conditions or provisions a default or an Event of
Default with respect to such series permitting the enforcement of all or any of
the several remedies 

40 

 

 

 

 

provided in this Indenture as herein set forth;
provided, however, that in respect of any such additional covenant,
restriction, condition or provision such supplemental indenture may provide for
a particular period of grace after default (which period may be shorter or
longer than that allowed in the case of other defaults) or may provide for an
immediate enforcement upon such default or may limit the remedies available to
the Trustee upon such default or may limit the right of the holders of a
majority in aggregate principal amount of the Securities of such series to
waive such default; or 

 

(c)           to cure any ambiguity or to correct or supplement any
provision contained herein or in any supplemental indenture which may be
defective or inconsistent with any other provision contained herein or in any
supplemental indenture, or to make such other provisions in regard to matters
or questions arising under this Indenture as shall not be inconsistent with the
provisions of this Indenture and shall not adversely affect the rights of the
holders of the Securities of any series which are outstanding in any material
respect; or 

 

(d)           to change or eliminate any of the provisions of this
Indenture or to add any new provision to this Indenture; provided, however,
that such change, elimination or addition shall become effective only as to
Securities issued pursuant to or subsequent to such supplemental indenture
except to the extent such change, elimination or addition does not adversely
affect the rights of any Securityholder of Outstanding Securities in any
material respect; or 

 

(e)           to
establish the form or terms of Securities of any series as permitted by Section
2.01; or 

 

(f)            to add any additional Events of Default with respect to
all or any series of outstanding Securities; or 

 

(g)           to add guarantees with respect to debt securities or to
release a guarantor from guarantees in accordance with the terms of the
applicable series of Securities; or

 

(h)           to secure a series of Securities by conveying, assigning,
pledging or mortgaging property or assets to the Trustee as collateral security
for such series of Securities; or 

 

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

 

(j)            to provide for the authentication and delivery of bearer
securities and coupons appertaining thereto representing interest, if any,
thereon and for the procedures for the registration, exchange and replacement
thereof and for the giving of notice to, and the solicitation of the vote or
consent of, the holders thereof, and for any other matters incidental thereto;
or 

 

(k)           evidence and provide for the acceptance of appointment
hereunder by a separate or successor Trustee with respect to the Securities of
one or more series and to add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, pursuant to the requirements
of Article Seven; or 

 

41 

 

 

 

 

(l)            to change any place or places where (1) the principal of
and premium, if any, and interest, if any, on all or any series of Securities
shall be payable, (2) all or any series of Securities may be surrendered for
registration of transfer, (3) all or any series of Securities may be
surrendered for exchange and (4) notices and demands to or upon the Company in
respect of all or any series of Securities and this Indenture may be served;
provided, however, that any such place shall be located in New York, New York
or be the principal office of the Company; or 

 

(m)          to provide for the payment by the Company of additional
amounts in respect of certain taxes imposed on certain holders and for the
treatment of such additional amounts as interest and for all matters incidental
thereto; or 

 

(n)           to provide for the issuance of Securities denominated in
a currency other than Dollars or in a composite currency and for all matters
incidental thereto; or

 

(o)           to comply with any requirements of the Commission or the
Trust Indenture Act of 1939, as amended.

 

Without limiting the generality of the foregoing, if
the Trust Indenture Act as in effect at the date of the execution and delivery
of this Indenture or at any time thereafter shall be amended and 

 

(x)           if any such amendment shall require one
or more changes to any provisions hereof or the inclusion herein of any
additional provisions, or shall by operation of law be deemed to effect such
changes or incorporate such provisions by reference or otherwise, this
Indenture shall be deemed to have been amended so as to conform to such
amendment to the Trust Indenture Act, and the Company and the Trustee may,
without the consent of any Securityholders, enter into a supplemental indenture
hereto to effect or evidence such changes or additional provisions; or 

 

(y)           if any such amendment shall permit one
or more changes to, or the elimination of, any provisions hereof which, at the
date of the execution and delivery hereof or at any time thereafter, are
required by the Trust Indenture Act to be contained herein, this Indenture
shall be deemed to have been amended to effect such changes or elimination, and
the Company and the Trustee may, without the consent of any Securityholders,
enter into a supplemental indenture hereto to effect such changes or
elimination; or 

 

(z)           if, by reason of any such amendment, one
or more provisions which, at the date of the execution and delivery hereof or
at any time thereafter, are required by the Trust Indenture Act to be contained
herein shall be deemed to be incorporated herein by reference or otherwise, or
otherwise made applicable hereto, and shall no longer be required to be
contained herein, the Company and the Trustee may, without the consent of any
Securityholders, enter into a supplemental indenture hereto to effect the
elimination of such provisions.

 

The Trustee is hereby authorized to join with the
Company in the execution of any such supplemental 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 affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise.

 

42 

 

 

 

 

Any supplemental indenture authorized by the
provisions of this Section may be executed by the Company and the Trustee
without the consent of the holders of any of the Securities at the time
outstanding, notwithstanding any of the provisions of Section 9.02.

 

SECTION 9.02.  Supplemental
Indenture with Consent of Securityholders.  With the consent (evidenced as
provided in Section 8.01) of the holders of not less than a majority in
aggregate principal amount of the Securities of each series affected by such
supplemental indenture or indentures at the time outstanding, the Company, when
authorized by a Board Resolution, and the Trustee may from time to time and at
any time enter into an indenture or indentures supplemental hereto (which shall
conform to the provisions of the Trust Indenture Act as then in effect) for the
purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the holders of the Securities of such
series under this Indenture; provided, however, that no such supplemental
indenture shall (i) extend the fixed maturity of any Securities of any series,
or reduce the principal amount thereof, or reduce the rate or extend the time
of payment of interest thereon, or reduce any premium payable upon the redemption
thereof, or reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon a declaration of acceleration of
the maturity thereof pursuant to Section 6.01, without the consent of the
holders of each Security then outstanding and affected, (ii) reduce the
aforesaid percentage of Securities, the holders of which are required to
consent to any such supplemental indenture, or reduce the percentage of
Securities, the holders of which are required to waive any default and its
consequences, without the consent of the holder of each Security then
outstanding and affected thereby, or (iii) modify any provision of Section
6.01(c) (except to increase the percentage of principal amount of securities
required to rescind and annul any declaration of amounts due and payable under
the Securities) without the consent of the holders of each Security then
outstanding and affected thereby.

 

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

 

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

 

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

 

Promptly after the execution by the Company and the
Trustee of any supplemental indenture pursuant to the provisions of this
Section, the Trustee shall transmit by mail, first class 

43 

 

 

 

 

postage prepaid, a notice,
setting forth in general terms the substance of such supplemental indenture, to
the Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register.  Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

 

SECTION 9.03.  Effect
of Supplemental Indentures.  Upon the execution of any supplemental
indenture pursuant to the provisions of this Article or of Section 10.01, this
Indenture shall, with respect to such series, be and be deemed to be modified
and amended in accordance therewith and the respective rights, limitations of
rights, obligations, duties and immunities under this Indenture of the Trustee,
the Company and the holders of Securities of the series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

 

SECTION 9.04.  Securities
may Bear Notation of Changes by Supplemental Indentures.  Securities of any
series, affected by a supplemental indenture, authenticated and delivered after
the execution of such supplemental indenture pursuant to the provisions of this
Article, Article Two or Article Seven or of Section 10.01, may bear a notation
in form approved by the Company, provided such form meets the requirements of
any exchange upon which such series may be listed, as to any matter provided
for in such supplemental indenture.  If the Company shall so determine, new
Securities of that series so modified as to conform, in the opinion of the
Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Company, authenticated by the
Trustee and delivered in exchange for the Securities of that series then
outstanding.

 

SECTION 9.05.  Opinion
of Counsel and Officers’ Certificate.  The Trustee, subject to the
provisions of Section 7.01, shall receive, and shall be fully protected in
relying upon, an Opinion of Counsel and Officers’ Certificate stating that
any supplemental indenture executed pursuant to this Article is authorized or permitted
by, and conforms to, the terms of this Article and that it is proper for the
Trustee under the provisions of this Article to join in the execution thereof.

 

ARTICLE X.

CONSOLIDATION, MERGER AND SALE 

 

SECTION 10.01.  Consolidations
or Mergers of Company and Sales or Conveyances of Property of Company.  Nothing
contained in this Indenture or in any of the Securities shall prevent any
consolidation or merger of the Company with or into any other corporation or
corporations (whether or not affiliated with the Company), or successive
consolidations or mergers in which the Company or its successor or successors
shall be a party or parties, or shall prevent any sale, conveyance, transfer or
other disposition of all or substantially all of the property of the Company or
its successor or successors as an entirety, or substantially as an entirety, to
any other corporation (whether or not affiliated with the Company or its
successor or successors) authorized to acquire and operate the same; provided,
however, the Company hereby covenants and agrees that, upon any such
consolidation, merger, sale, conveyance, transfer or 

44 

 

 

 

 

other
disposition, the due and punctual payment of the principal of (premium, if any)
and interest on all of the Securities of all series in accordance with the
terms of each series, according to their tenor, and the due and punctual
performance and observance of all the covenants and conditions of this
Indenture with respect to each series or established with respect to such
series pursuant to Section 2.01 to be kept or performed by the Company, shall
be expressly assumed, by supplemental indenture (which shall conform to the
provisions of the Trust Indenture Act as then in effect) satisfactory in form
to the Trustee executed and delivered to the Trustee by the entity formed by
such consolidation, or into which the Company shall have been merged, or by the
entity which shall have acquired such property.

 

SECTION 10.02.  Successor
to Company. 

 

(a)           Rights
and Duties of Successor Company.  In case of any such consolidation,
merger, sale, conveyance, transfer or other disposition and upon the assumption
by the successor corporation, by supplemental indenture, executed and delivered
to the Trustee and satisfactory in form to the Trustee, of the due and punctual
payment of the principal of and premium, if any, and interest on all of the
Securities of all series outstanding and the due and punctual performance of
all of the covenants and conditions of this Indenture or established with
respect to each series of the Securities pursuant to Section 2.01 to be kept or
performed by the Company with respect to each series, such successor
corporation shall succeed to and be substituted for the Company, with the same
effect as if it had been named herein as the party of the first part, and
thereupon (provided, that in the case of a lease, the term of the lease is at
least as long as the longest maturity of any Securities outstanding at such
time) the predecessor corporation shall be relieved of all obligations and
covenants under this Indenture and the Securities.  Such successor corporation
thereupon may cause to be signed, and may issue either in its own name or in
the name of the Company or any other predecessor obligor on the Securities, any
or all of the Securities issuable hereunder which theretofore shall not have
been signed by the Company and delivered to the Trustee; and, upon the order of
such successor company, instead of the Company, and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall
authenticate and shall deliver any Securities which previously shall have been
signed and delivered by the officers of the predecessor Company to the Trustee
for authentication, and any Securities which such successor corporation
thereafter shall cause to be signed and delivered to the Trustee for that
purpose.  All the Securities so issued shall in all respects have the same
legal rank and benefit under this Indenture as the Securities theretofore or
thereafter issued in accordance with the terms of this Indenture as though all
of such Securities had been issued at the date of the execution hereof.

 

(b)           Appropriate
Changes may be made in Phraseology and Form of Securities.  In case of any
such consolidation, merger, sale, conveyance, transfer or other disposition
such changes in phraseology and form (but not in substance) may be made in the
Securities thereafter to be issued as may be appropriate.

 

(c)           Company
may Consolidate or Merge into Itself or Acquire Properties of Other
Corporations.  Nothing contained in this Indenture or in any of the
Securities shall prevent the Company from merging into itself or acquiring by
purchase or otherwise all or any part of the property of any other corporation
(whether or not affiliated with the Company).

 

45 

 

 

 

 

SECTION 10.03.  Opinion
of Counsel.  The Trustee, subject to the provisions of Section 7.01, shall
receive an Opinion of Counsel as conclusive evidence that any such
consolidation, merger, sale, conveyance, transfer or other disposition, and any
such assumption, comply with the provisions of this Article.

 

ARTICLE XI.

DEFEASANCE AND CONDITIONS TO DEFEASANCE; UNCLAIMED MONIES 

 

SECTION 11.01.  Defeasance
and Conditions to Defeasance. 

 

(a)           Securities
may be Defeased.  Securities of a series may be defeased in accordance with
their terms and, unless the Company Order or supplemental indenture
establishing the series otherwise provides, in accordance with this Article.

 

(b)           Covenant
and Legal Defeasance.  The Company at any time may terminate as to a series
its obligations, if any, under any restrictive covenants which may be
applicable to a particular series, to the extent provided for in a Company
order or supplemental indenture relating to such series (“covenant
defeasance”).  The Company at any time may terminate as to a series all of its
obligations for such series under this Indenture (“legal defeasance”), except
that the Company’s obligations in Sections 2.05, 2.07, 4.02, 7.06, 7.10 and
11.04 shall survive until the Securities of the series are no longer
outstanding and, thereafter, the Company’s obligations in Sections 7.06, 7.10
and 11.04 shall survive.  The Company may exercise its legal defeasance option
notwithstanding its prior exercise of its covenant defeasance option. 

 

(c)           Conditions
for Defeasance.  The Company shall exercise as to a series its legal
defeasance option or its covenant defeasance option if: 

 

(1)                
The Company irrevocably deposits
in trust with the Trustee or another trustee (x) money in an amount which shall
be sufficient; or (y) Eligible Obligations the principal of and the interest on
which when due, without regard to reinvestment thereof, will provide moneys,
which, together with the money, if any, deposited or held by the Trustee or
such other trustee, shall be sufficient; or (z) a combination of money and
Eligible Obligations which shall be sufficient, to pay the principal of and
premium, if any, and interest, if any, due and to become due on such Securities
on or prior to maturity; 

 

(2)                
the Company delivers to the
Trustee a Certificate to the effect that the requirements set forth in clause
(1) above have been satisfied; 

 

(3)                
immediately after the deposit no
Default exists; and 

 

(4)                
the Company delivers to the
Trustee an Opinion of Counsel to the effect that holders of the series will not
recognize income, gain or loss for Federal income tax purposes as a result of
the defeasance but will realize income, gain or loss on the Securities,
including payments of interest thereon, in the same amounts and in the same 

46 

 

 

 

 

manner and at the same time as would have been the
case if such defeasance had not occurred and which, in the case of legal
defeasance, shall be (x) accompanied by a ruling of the Internal Revenue
Service issued to the Company or (y) based on a change in law or regulation
occurring after the date hereof; and 

 

(5)                
the deposit specified in paragraph
(1) above shall not result in the Company, the Trustee or the trust created in
connection with such defeasance being deemed an “investment company” under the
Investment Company Act of 1940, as amended.

 

(d)           Event
of Default Following Covenant Defeasance.  In the event (i) the Company
exercises its option to effect a covenant defeasance with respect to the
Securities of any series, (ii) the Securities of that series are thereafter
declared due and payable pursuant to Section 6.01(b) hereof because of the
occurrence of any Event of Default that results from an event, act or condition
which does not arise from any covenant that has been defeased, and (iii) the
amount of money and securities on deposit with the Trustee are not sufficient
to pay amounts due on the Securities of that series at the time of the
acceleration resulting from such Event of Default, the Company shall be liable
for any such deficiency. 

 

(e)           Effect
of Defeasance.  Upon the satisfaction of each of the foregoing conditions,
the obligations of the Company under the restrictive covenants defeased (in the
case of covenant defeasance), and all obligations of the Company except as set
forth in paragraph (b) of this Section 11.01 (in the case of legal defeasance),
shall be terminated with respect to such series.  

 

SECTION 11.02.  Application
by Trustee of Funds Deposited for Payment of Securities.  All monies or
Eligible Obligations deposited with the Trustee pursuant to Section 11.01 shall
be held in trust and shall be available for payment as due, either directly or
through any paying agent (including the Company acting as its own paying
agent), to the holders of the particular series of Securities for the payment
or redemption of which such monies or Eligible Obligations have been deposited
with the Trustee.

 

SECTION 11.03.  Repayment
of Monies held by Paying Agent.  In connection with the satisfaction and
discharge of this Indenture all monies or Eligible Obligations then held by any
paying agent under the provisions of this Indenture shall, upon demand of the
Company, be paid to the Trustee and thereupon such paying agent shall be
released from all further liability with respect to such monies or Eligible
Obligations.

 

SECTION 11.04.  Repayment
of Monies held by Trustee.  Any monies or Eligible Obligations deposited
with any paying agent or the Trustee, or then held by the Company, in trust for
payment of principal of or premium or interest on the Securities of a
particular series that are not applied but remain unclaimed by the holders of
such Securities for at least two years after the date upon which the principal
of (and premium, if any) or interest on such Securities shall have respectively
become due and payable, upon the written request of the Company and unless
otherwise required by mandatory provisions of applicable escheat or abandoned
or unclaimed property law, shall be repaid to the Company on May 31 of each
year or (if then held by the Company) shall be discharged from such trust; and
thereupon the paying agent and the 

47 

 

 

 

 

Trustee
shall be released from all further liability with respect to such monies or
Eligible Obligations, and the holder of any of the Securities entitled to
receive such payment shall thereafter, as an unsecured general creditor, look
only to the Company for the payment thereof.

 

SECTION 11.05.  Delivery
of Officers’ Certificate and Opinion of Counsel.  In connection with any
satisfaction and discharge of this Indenture pursuant to this Article Eleven,
the Company shall deliver to the Trustee an Officers’ Certificate and an
Opinion of Counsel to the effect that all conditions precedent in this
Indenture provided for relating to such satisfaction and discharge have been
complied with.

 

ARTICLE XII.

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  

SECTION 12.01.  Incorporators,
Stockholders, Officers and Directors of Company Exempt from Individual
Liability.  No recourse under or upon any obligation, covenant or agreement
of this Indenture, or of any Security, or for any claim based thereon or
otherwise in respect thereof, shall be had against any incorporator,
stockholder, officer or director, past, present or future as such, of the
Company or of any predecessor or successor corporation, either directly or
through the Company or any such predecessor or successor corporation, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise; it being expressly understood that this
Indenture and the obligations issued hereunder are solely corporate
obligations, and that no such personal liability whatever shall attach to, or
is or shall be incurred by, the incorporators, stockholders, officers or
directors as such, of the Company or of any predecessor or successor
corporation, or any of them, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements
contained in this Indenture or in any of the Securities or implied therefrom;
and that any and all such personal liability of every name and nature, either
at common law or in equity or by constitution or statute, of, and any and all
such rights and claims against, every such incorporator, stockholder, officer
or director as such, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements
contained in this Indenture or in any of the Securities or implied therefrom,
are hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issuance of such
Securities.

 

ARTICLE XIII.

MISCELLANEOUS PROVISIONS 

 

SECTION 13.01.  Successors
and Assigns of Company Bound by Indenture.  All the covenants,
stipulations, promises and agreements in this Indenture contained by or on
behalf of the Company shall bind its successors and assigns, whether so
expressed or not.

 

SECTION 13.02.  Acts
of Board, Committee or Officer of Successor Company.  Any act or proceeding
by any provision of this Indenture authorized or required to be done or
performed by any board, committee or officer of the Company shall and may be
done and performed with 

48 

 

 

 

 

like
force and effect by the corresponding board, committee or officer of any
corporation that shall at the time be the lawful sole successor of the Company.

 

SECTION 13.03.  Headings. 
The Article and Section Headings in this Indenture and the Table of Contents
are for convenience only and shall not affect the construction hereof.

 

SECTION 13.04.  Notices. 
Except as otherwise expressly provided herein any notice or demand which by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the holders of Securities to or on the Company may be given
or served by being deposited first class postage prepaid in a post office
letter box addressed (until another address is filed in writing by the Company
with the Trustee), as follows: Telephone and Data Systems, Inc., 30 North
LaSalle Street, Suite 4000, Chicago, Illinois 60603, Attention: President, with
a copy to Sidley Austin LLP, One South Dearborn Street, Chicago, Illinois,
60603, Attention: William S. DeCarlo, Esq.  Any notice, election, request or
demand by the Company or any Securityholder to or upon the Trustee shall be
deemed to have been sufficiently given or made, for all purposes, if given or
made in writing at the Corporate Trust Office of the Trustee.  

 

The Trustee agrees to accept
and act upon instructions or directions pursuant to this Indenture sent by
unsecured e-mail, pdf, facsimile transmission or other similar unsecured
electronic methods, provided, however, that the Trustee shall have received an
incumbency certificate listing persons designated to give such instructions or
directions and containing specimen signatures of such designated persons, which
such incumbency certificate shall be amended and replaced whenever a person is
to be added or deleted from the listing.  If the Company elects to give the
Trustee e-mail or facsimile instructions (or instructions by a similar
electronic method) and the Trustee in its discretion elects to act upon such
instructions, the Trustee’s understanding of such instructions shall be deemed
controlling. The Trustee shall not be liable for any losses, costs or expenses
arising directly or indirectly from the Trustee’s reliance upon and compliance
with such instructions notwithstanding such instructions conflict or are
inconsistent with a subsequent written instruction. The Company agrees to
assume all risks arising out of the use of such electronic methods to submit
instructions and directions to the Trustee, including without limitation the
risk of the Trustee acting on unauthorized instructions, and the risk or interception
and misuse by third parties.

 

SECTION 13.05.  Governing
Law.  THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE THIS INDENTURE AND THE SECURITIES, INCLUDING WITHOUT LIMITATION,
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK
CIVIL PRACTICE LAWS AND RULES 327(B).

 

SECTION 13.06.  Officers’
Certificate and Opinion of Counsel. 

 

(a)           When
Required.  Upon any application or demand by the Company to the Trustee to
take any action under any of the provisions of this Indenture, the Company
shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent have been complied with.

 

49 

 

 

 

 

(b)           Statements
to be Included in each Certificate or Opinion.  Each certificate or opinion
provided for in this Indenture and delivered to the Trustee with respect to
compliance with a condition or covenant in this Indenture (other than the
certificate provided pursuant to Section 5.03(d) of this Indenture) shall
include (1) a statement that the person making such certificate or opinion has
read such covenant or condition; (2) a brief statement as to the nature and
scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based; (3) a statement that, in
the opinion of such person, he or she has made such examination or
investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been complied with;
and (4) a statement as to whether or not, in the opinion of such person, such
condition or covenant has been complied with.

 

SECTION 13.07.  Payments
Due on Non-Business Days.  Except as provided pursuant to Section 2.01
pursuant to a Company Order, or established in one or more indentures
supplemental to this Indenture, in any case where the date of maturity of
principal or an Interest Payment Date of any Security or the date of
redemption, purchase or repayment of any Security shall not be a Business Day
then payment of interest or principal (and premium, if any) may be made on the
next succeeding Business Day with the same force and effect as if made on the
nominal date of maturity or redemption, and no interest shall accrue for the
period after such nominal date.

 

SECTION 13.08.  Provisions
Required by Trust Indenture Act of 1939.  If and to the extent that any
provision of this Indenture limits, qualifies or conflicts with the duties
imposed by the Trust Indenture Act, such imposed duties shall control.

 

SECTION 13.09.  Execution
in Counterparts.  This Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

 

SECTION 13.10.  Separability
of Indenture Provisions.  In case any one or more of the provisions
contained in this Indenture or in the Securities of any series shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other
provisions of this Indenture or of such Securities, but this Indenture and such
Securities shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.

 

SECTION 13.11.  Successors
and Assigns.  The Company will have the right at all times to assign any of
its rights or obligations under the Indenture to a direct or indirect wholly
owned subsidiary of the Company; provided that, in the event of any such
assignment, the Company will remain liable for all such obligations.  Subject
to the foregoing, this Indenture is binding upon and inures to the benefit of
the parties thereto and their respective successors and assigns.  This
Indenture may not otherwise be assigned by the parties thereto.

 

SECTION 13.12.  Securities
in Foreign Currencies.  Whenever this Indenture provides for any action by,
or the determination of any rights of, holders of Securities of any series in
which not all of such Securities are denominated in the same currency, in the
absence of any provision to the contrary in the form of Security of any
particular series, any amount in respect of 

50 

 

 

 

 

any
Security denominated in a currency other than Dollars shall be treated for any
such action or determination of rights as that amount of Dollars that could be
obtained for such amount on such reasonable basis of exchange and as of the
record date with respect to Securities of such series (if any) for such action
or determination of rights (or, if there shall be no applicable record date,
such other date reasonably proximate to the date of such action or
determination of rights) as the Company may specify in a written notice to the
Trustee. 

 

SECTION 13.13.  Treatment
of the Securities as Debt.  It is intended that the Securities will be
treated as indebtedness and not as equity for federal income tax purposes.  The
provisions of this Indenture shall be interpreted to further this intention. 

 

SECTION 13.14.  Waiver
of Jury Trial.  EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

SECTION 13.15.  Force
Majeure.  In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of
or caused by, directly or indirectly, forces beyond its control, including,
without limitation, strikes, work stoppages, accidents, acts of war or
terrorism, civil or military disturbances, nuclear or natural catastrophes or
acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being
understood that the Trustee shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

ARTICLE XIV.

SUBORDINATION OF SECURITIES

 

SECTION 14.01.  Subordination
Terms.  The payment by the Company of the principal of, premium, if any,
and interest on any series of Securities issued hereunder shall be subordinated
to the extent set forth in an indenture supplemental hereto relating to such
Securities.

51 

 

 

 

  

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

  
	
    

  	
    

  	
    

  	
    

  
	
  TELEPHONE AND
  DATA SYSTEMS, INC.

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  By:

  	
  /s/ LeRoy T.
  Carlson,
  Jr.                        

  	
    

  
	
    

  	
  Name:

  	
  LeRoy T.
  Carlson, Jr.

  	
    

  
	
    

  	
  Title:

  	
  President and
  Chief Executive Officer

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  By:

  	
  /s/ Peter L.
  Sereda
                                   

  	
    

  
	
    

  	
  Name:

  	
  Peter L. Sereda

  	
    

  
	
    

  	
  Title:

  	
  Senior Vice
  President – Finance and Treasurer

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

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

  
	
    

  	
    

  	
    

  	
    

  
	
  By:

  	
  /s/ Lawrence M.
  Kusch                         

  	
    

  
	
    

  	
  Name:

  	
  Lawrence M.
  Kusch

  	
    

  
	
    

  	
  Title:

  	
  Vice President 

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  SIGNATURE PAGE TO INDENTURE

  
	
  RE SUBORDINATED DEBT

  

 

52Kandi Technologies, Inc. - Exhibit 10.4 - Filed by newsfilecorp.com

Exhibit 10.4

FT Global Capital, Inc. 
1200 Abernathy Road 
Building
600 
Suite 1700 
Atlanta, GA 30328

June 18th, 2013 

Hu Xiaoming
Chairman & Chief Executive Officer 
Kandi
Technologies, Inc. 
Jinhua City Industrial Zone 
Jinhua, Zhejiang Province

People’s Republic of China, 321016 

Re: Placement Agent Agreement

Dear Mr. Hu: 

          The
purpose of this letter agreement (this “Engagement Letter” or this
“Agreement”) is to set forth the terms and conditions pursuant to which
FT Global Capital, Inc. (“FTGC” or the “Placement Agent”), shall
serve as the Lead Placement Agent for Kandi Technologies, Inc. (the
“Company”), on a “best efforts” basis, in connection with the proposed
placement (the “Placement”) of registered securities (the
“Securities”) of the Company, which may include shares (the
“Shares”) of the Company’s common stock (the “Common Stock”)
pursuant to a “shelf takedown.” 

          This
Agreement shall become effective upon the date it is signed by the Company (the
“Effective Date”). 

          The
terms of such Placement and the Securities shall be mutually agreed upon by the
Company and the investors (each, an “Investor” and collectively, the
“Investors”) and nothing herein enables the Placement Agent to bind the
Company or any Investor. This Agreement and the documents executed and delivered
by the Company and the Investors in connection with the Placement shall be
collectively referred to herein as the “Transaction Documents.” The date
of each of the closings of the Placement shall be referred to herein as the
“Closing Date.” The Company expressly acknowledges and agrees that the
Placement Agent’s obligations hereunder are on a reasonable “best efforts” basis
only and that the execution of this Agreement does not constitute a commitment
by the Placement Agent to purchase or to sell the Securities and does not ensure
the successful placement of the Securities or any portion thereof. The
identities of the investors to which the Placement Agent introduces the Company
shall be proprietary information of the Placement Agent and shall not be
divulged to third parties by the Company, nor used by the Company outside the scope of the
Placement Agent’s engagement as described herein, other than as required by
applicable law.

SECTION 1.   COMPENSATION AND OTHER
FEES. 

          (A)      As
compensation for the Placement Agent’s services hereunder, the Company shall pay
to the Placement Agent (i) a cash placement fee upon each Closing, in an amount
equal to six percent (6%) of the aggregate offering price of the total amount of
capital received by the Company from the sale of its Securities to investors
introduced to the Company by the Placement Agent during the term of this
Agreement (the “Placement Agent Fee”), and (ii) a 6% cash fee payable
within three business days of (but only in the event of) the receipt by the
Company of any cash proceeds from the exercise of any warrants issued in the
Placement (“Warrants Exercise Fee”) (the Warrants Exercise Fee
shall be payable regardless of when the warrants are exercised, even if such
exercise occurs after the termination of this Agreement). Notwithstanding
anything to the contrary in this Agreement, the compensation provided for in
this Agreement shall be subject to such reduction as may be necessary for the
compensation to comply with Financial Industry Regulatory Authority
(“FINRA”) Rule 5110.

          (B)     
Upon each Closing, the Company shall also grant Placement Agent or its designees
at the Closing warrants (the “Placement Agent’s Warrants”) to purchase that
number of shares of common stock of the Company (“Shares”) equal to 6% of the
aggregate number of Shares placed in the Placement. The Placement Agent Warrants
shall include customary terms, such as anti-dilution and registration rights.
The Exercise price for Placement Agent Warrants will be 120% of Purchase Price
of the Placement and the Placement Agent will not have cashless exercise rights
under such warrants; provided, that, if at the time of any exercise of the
Placement Agent Warrants the Company does not have an effective registration
statement for the issuance of the warrant shares or the resale of the warrant
shares, then the Placement Agent may exercise such warrants on a cashless basis.

          (C)      The
Placement Agent shall be entitled to a Placement Agent’s Fee, calculated in the
manner provided in Section 1(A), with respect to any public or private offering
or other financing or capital-raising transaction of any kind (“Tail
Financing”) to the extent that such financing or capital is provided to the
Company by investors whom the Placement Agent had introduced to the Company
during the Term, as defined below, if such Tail Financing is consummated at any
time within the 12-month period following the Effective Date (the “Tail
Period”). (The Placement Agent shall provide to the Company a list of
investors it introduced to the Company. If an investor is not on the list, the
Placement Agent shall not be compensated during the Tail Period). 

SECTION 2.   COMPANY REPRESENTATIONS AND
WARRANTIES. The Company represents and warrants to, and agrees with, the
Placement Agent that: 

-2- 

          (A)      The
Company has filed with the Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-3 (Registration File No.
333-188039) under the Securities Act of 1933, as amended (the “Securities
Act”), which became effective on May 23, 2013, for the registration under
the Securities Act of the Securities. At the time of such filing and on the date
hereof, the Company met the requirements of Form S-3 under the Securities Act.
Such registration statement meets the requirements set forth in Rule
415(a)(1)(x) under the Securities Act and complies with said Rule. The Company
will file with the Commission pursuant to Rule 424(b) under the Securities Act,
and the rules and regulations (the “Rules and Regulations”) of the
Commission promulgated thereunder, a supplement to the form of prospectus
included in such registration statement relating to the placement of the
Securities and the plan of distribution thereof and has advised the Placement
Agent of all further information (financial and other) with respect to the
Company required to be set forth therein. Such registration statement, including
the exhibits thereto, as amended at the date of this Agreement, is hereinafter
called the “Registration Statement”; such prospectus in the form in which
it appears in the Registration Statement is hereinafter called the “Base
Prospectus”; and the supplemented form of prospectus, in the form in which
it will be filed with the Commission pursuant to Rule 424(b) (including the Base
Prospectus as so supplemented) is hereinafter called the “Prospectus
Supplement.” Any reference in this Agreement to the Registration
Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to
refer to and include the documents incorporated by reference therein (the
“Incorporated Documents”) pursuant to Item 12 of Form S-3 which were
filed under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), on or before the date of this Agreement, or the issue date of the
Base Prospectus or the Prospectus Supplement, as the case may be; and any
reference in this Agreement to the terms “amend,” “amendment” or “supplement”
with respect to the Registration Statement, the Base Prospectus or the
Prospectus Supplement shall be deemed to refer to and include the filing of any
document under the Exchange Act after the date of this Agreement, or the issue
date of the Base Prospectus or the Prospectus Supplement, as the case may be,
deemed to be incorporated therein by reference. All references in this Agreement
to financial statements and schedules and other information that is “contained,”
“included,” “described,” “referenced,” “set forth” or “stated” in the
Registration Statement, the Base Prospectus or the Prospectus Supplement (and
all other references of like import) shall be deemed to mean and include all
such financial statements and schedules and other information that is or is
deemed to be incorporated by reference in the Registration Statement, the Base
Prospectus or the Prospectus Supplement, as the case may be. At the date of this
Agreement, no stop order suspending the effectiveness of the Registration
Statement or the use of the Base Prospectus or the Prospectus Supplement has
been issued, and no proceeding for any such purpose is pending or has been
initiated or, to the Company's knowledge, is threatened by the Commission. For
purposes of this Agreement, “free writing prospectus” has the meaning set
forth in Rule 405 under the Securities Act and the “Time of Sale
Prospectus” means the preliminary prospectus, if any, together with the free
writing prospectuses, if any, used in connection with the Placement, including
any documents incorporated by reference therein. 

-3- 

          (B)      The
Registration Statement (and any further documents to be filed with the
Commission) contains all exhibits and schedules as required by the Securities
Act. Each of the Registration Statement and any post-effective amendment
thereto, at the time it became effective, complied in all material respects with
the Securities Act and the Exchange Act and the applicable Rules and Regulations and did not and, as amended or
supplemented, if applicable, will not, contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading. The Base Prospectus,
the Time of Sale Prospectus, if any, and the Prospectus Supplement, each as of
its respective date, comply in all material respects with the Securities Act and
the Exchange Act and the applicable Rules and Regulations. Each of the Base
Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement,
as amended or supplemented, did not and will not contain as of the date thereof
any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. The Incorporated Documents, when
they were filed with the Commission, conformed in all material respects to the
requirements of the Exchange Act and the applicable Rules and Regulations, and
none of such documents, when they were filed with the Commission, contained any
untrue statement of a material fact or omitted to state a material fact
necessary to make the statements therein (with respect to Incorporated Documents
incorporated by reference in the Base Prospectus or Prospectus Supplement), in
light of the circumstances under which they were made not misleading; and any
further documents so filed and incorporated by reference in the Base Prospectus,
the Time of Sale Prospectus, if any, or Prospectus Supplement, when such
documents are filed with the Commission, will conform in all material respects
to the requirements of the Exchange Act and the applicable Rules and
Regulations, as applicable, and will not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading. No post-effective amendment to the Registration Statement reflecting
any facts or events arising after the date thereof which represent, individually
or in the aggregate, a fundamental change in the information set forth therein
is required to be filed with the Commission. There are no documents required to
be filed with the Commission in connection with the transaction contemplated
hereby that (i) have not been filed as required pursuant to the Securities Act
or (ii) will not be filed within the requisite time period. There are no
contracts or other documents required to be described in the Base Prospectus,
the Time of Sale Prospectus, if any, or Prospectus Supplement, or to be filed as
exhibits or schedules to the Registration Statement, that have not been or will
be described or filed as required. 

          (C)      The
Company is currently eligible to use free writing prospectuses in connection
with the Placement pursuant to Rules 164 and 433 under the Securities Act. Any
free writing prospectus that the Company is required to file pursuant to Rule
433(d) under the Securities Act has been, or will be, filed with the Commission
in accordance with the requirements of the Securities Act and the applicable
rules and regulations of the Commission thereunder. Each free writing prospectus
that the Company has filed, or is required to file, pursuant to Rule 433(d)
under the Securities Act or that was prepared by or on behalf of or used by the
Company complies or will comply in all material respects with the requirements
of the Securities Act and the applicable rules and regulations of the Commission
thereunder. The Company will not, without the prior consent of the Placement
Agent, prepare, use or refer to, any free writing prospectus. 

-4- 

          (D)      The
Company will as promptly as practicable deliver to the Placement Agent complete
conformed copies of the Registration Statement and of each consent and
certificate of experts, as applicable, filed as a part thereof, and conformed
copies of the Registration Statement (without exhibits), the Base Prospectus,
the Time of Sale Prospectus, if any, and the Prospectus Supplement, as amended
or supplemented, in such quantities and at such places as the Placement Agent
reasonably requests. Neither the Company nor any of its directors and officers
has distributed and none of them will distribute, prior to the Closing Date, any
offering material in connection with the offering and sale of the Securities
other than the Base Prospectus, the Time of Sale Prospectus, if any, the
Prospectus Supplement, the Registration Statement, copies of the documents
incorporated by reference therein and any other materials permitted by the
Securities Act. 

          (E)      There
are no affiliations with any FINRA member firm among the Company’s officers,
directors or, to the knowledge of the Company, any five percent (5%) or greater
stockholder of the Company. 

          (F)      The
Placement Agent shall receive on each Closing Date a written opinion of counsel
for the Company, dated the Closing Date and addressed to the Placement Agent in
form and substance satisfactory to the Placement Agent, which shall include,
without limitation, opinions related to (i) the corporate existence of the
Company and power to operate its business; (ii) the corporate power and
authority of the Company to execute all agreements and perform its obligations
related to the Placement; (iii) the ability of the Company to enter into all
agreements and perform its obligations related to the Placement without
contravening or violating (or causing the triggering of any anti-dilution or
similar provisions in) its charter documents, any other agreements or any
applicable law, regulation or rule; (iv) that any Securities (and any Common
Stock underlying such Securities) will be duly authorized, fully paid, validly
issued and non-assessable, as applicable; (v) that no approval, consent, order,
filing or notice is required to complete the Placement and for the Company to
perform its obligations in the Placement; (vi) the effectiveness of the
Registration Statement and that all filings required by the Securities Act of
1933, as amended, have been made; (vii) the listing of all Common Stock included
in or underlying the Securities on any national exchange on which the Company’s
Common Stock is listed; and (viii) the Company’s status as an “investment
company” as defined in the Investment Company Act of 1940, as amended.

          (G)      The
Placement Agent shall be entitled to rely upon any and all representations and
warranties of the Company included in the purchase agreements entered into by
the Company and the Investors in connection with the Placement, subject to the
qualifications and limitations therein, including, but not limited to, any
disclosure set forth on an applicable schedule. 

SECTION 3.   REPRESENTATIONS AND WARRANTIES
OF PLACEMENT AGENT. The Placement Agent represents and warrants to the
Company that: (i) it will comply with all applicable federal laws regarding
trading in securities of the Company, (ii) it will not disclose any non-public
material information of the Company without the prior written consent of the Company during the Term and the Non-exclusive Term and for a
period of one (1) year from the termination date of this Agreement, and (iii)
that it is a registered broker-dealer in good standing with the relevant
regulatory agencies.

-5- 

SECTION 4. ENGAGEMENT TERM & SURVIVAL. The
Placement Agent’s engagement under this Agreement shall be exclusive for a
period of twelve (12) months commencing on the Effective Date (the
“Term”), and thereafter shall be non-exclusive (the "Non-exclusive
Term"). Neither the Placement Agent nor the Company shall terminate the
Engagement before the Term without written consent from the other party. In the
event of the termination or expiration of this Agreement, the Placement Agent’s
compensation due under this Agreement will be payable in full and the
compensation payable under Section 1 will continue for the twelve (12) month
period (or longer if specifically set forth in Section 1) commencing with such
termination or expiration. The provisions of Sections 1, 2, 3, 4, 5, 6, 7, 9, 10
and 11 of this Agreement and Appendix A shall survive this Agreement’s
expiration or termination. 

SECTION 5.   PLACEMENT AGENT
INFORMATION. The Company agrees that any information or advice rendered by
the Placement Agent in connection with this engagement is for the confidential
use of the Company only in its evaluation of the Placement and, except as
otherwise required by law, the Company will not disclose or otherwise refer to
the advice or information provided by the Placement Agent in any manner without
prior written consent of the Placement Agent. 

SECTION 6.   NO FIDUCIARY RELATIONSHIP;
THIRD PARTY BENEFICIARIES. This Agreement does not create, and shall not be
construed as creating rights enforceable by any person or entity that is not a
party hereto, except those entitled hereto by virtue of the indemnification
provisions hereof. The Company acknowledges and agrees that the Placement Agent
is not and shall not be construed as a fiduciary of the Company and that the
Placement Agent shall not have any duties or liabilities to the equity holders
or the creditors of the Company or to any other person by virtue of this
Agreement or the retention of the Placement Agent hereunder, all of which are
hereby expressly waived.

SECTION 7.   INDEMNIFICATION. The
parties agree to the terms of the Placement Agent’s standard indemnification
agreement, which is attached hereto as Appendix A and incorporated herein by
reference.

SECTION 8.   ANNOUNCEMENTS. The Company
grants to the Placement Agent the right to place customary announcement(s) of
the Placement in certain newspapers and to mail announcement(s) to persons and
firms selected by Placement Agent, at the Placement Agent’s expense, subject to
the Company’s prior approval, which shall not be unreasonably withheld. 

-6- 

SECTION 9.   GOVERNING LAW. This
Agreement will be governed by, and construed in accordance with, the laws of the
State of Georgia applicable to agreements made and to be performed entirely in
such State. This Agreement may not be assigned by either party without the prior
written consent of the other party. This Agreement shall be binding upon and
inure to the benefit of the parties hereto, and their respective successors
and permitted assigns. Any right to trial by jury with respect to any dispute
arising under this Agreement or any transaction or conduct in connection
herewith is waived. Any dispute arising under this Agreement may be brought into
the courts of the State of Georgia located in Fulton County or into the Federal
Court located in Atlanta, Georgia and, by execution and delivery of this
Agreement, the Company hereby accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of aforesaid courts. Each party
hereto hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by delivering a copy
thereof via overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. If either party shall commence
an action or proceeding to enforce any provisions of this Agreement, then the
prevailing party in such action or proceeding shall be reimbursed by the other
party for its reasonable attorneys' fees and other costs and expenses incurred
with the investigation, preparation and prosecution of such action or
proceeding. 

SECTION 10. ENTIRE AGREEMENT/MISC. This Agreement
embodies the entire agreement and understanding between the parties hereto, and
supersedes all prior agreements and understandings, relating to the subject
matter hereof. If any provision of this Agreement is determined to be invalid or
unenforceable in any respect, such determination will not affect such provision
in any other respect or any other provision of this Agreement, which will remain
in full force and effect. This Agreement may not be amended or otherwise
modified or waived except by an instrument in writing signed by each of the
Placement Agent and the Company. The representations, warranties, agreements and
covenants contained herein shall survive the closing of the Placement and
delivery and/or exercise of the Securities, as applicable. This Agreement may be
executed in two or more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it
being understood that both parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile transmission or a .pdf format
file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force
and effect as if such facsimile or .pdf signature page were an original
thereof.

SECTION 11. NOTICES. Any and all notices or other
communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of
(a) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified on the signature pages attached
hereto prior to 6:30 p.m. (Atlanta, Georgia time) on a business day, (b) the
next business day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number on the
signature pages attached hereto on a day that is not a business day or later
than 6:30 p.m. (Atlanta, Georgia time) on any business day, (c) the business day
following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) upon actual receipt by the 

-7- 

 

APPENDIX A - - INDEMNIFICATION PROVISIONS 

          (A)      The
Company agrees to indemnify and hold harmless the Placement Agent and its
affiliates and their respective officers, directors, employees, agents, counsel,
advisers and consultants, and any persons controlling the Placement Agent or any
of its affiliates within the meaning of Section 15 of the Securities Act of 1933
or Section 20 of the Securities Exchange Act of 1934 (the Placement Agent and
each such other person or entity being referred to herein as an “Indemnified
Person”), from and against all claims, liabilities, losses or damages (or
actions in respect thereof) or other expenses (and further agrees to advance all
expenses) which (A) are related to or arise out of (i) actions taken or omitted
to be taken (including any untrue statements made or any statements omitted to
be made) by the Company or its respective affiliates in connection with this
Agreement, the Placement or which affect the Placement; or (ii) actions taken or
omitted to be taken by an Indemnified Person with the consent or in conformity
with the actions or omissions of the Company or their respective affiliates in
connection with this Agreement, the Placement or which affect the Placement; or
(iii) any investigation, litigation, or inquiry by a regulatory or
self-regulatory agency or authority involving the Company or any transaction
arising under any agreements between the Company and the Placement Agent or (B)
are otherwise related to or arise out of the Placement Agents’ activities on
behalf of the Company or its respective affiliates pursuant to this Agreement or
(C) in any way involving or alleged to involve the Company, the Placement or the
Securities. The Company will not be responsible, however, for any losses,
claims, damages, liabilities or expenses pursuant to clause A(iii), (B) or (C)
of the preceding sentence which are finally judicially determined to have
resulted solely from such Indemnified Person’s gross negligence or from
information supplied by such Indemnified Person or by the Placement Agent itself
in writing specifically for use in the Prospectus Supplement. In addition, the
Company agrees to advance, or in the absence of advancement required hereunder
to promptly reimburse each Indemnified Person for all reasonable out-of-pocket
expenses (including fees and expenses of counsel) as they are incurred by such
Indemnified Person in connection with investigating, preparing, conducting or
defending any such action or claim, whether or not in connection with litigation
in which any Indemnified Person is a named party, or in connection with
enforcing the rights of such Indemnified Person under this Agreement, including
the costs of any claims asserted by an Indemnified Person against any
indispensible party or by way of a counterclaim in any litigation within the
scope of this provision. The Company agrees to advance such expenses incurred by
an Indemnified Person pursuant to which indemnity may be sought hereunder within
thirty (30) days after receipt by the Company of a statement requesting such
advances from time to time, whether prior to or after final disposition of any
proceeding. Such advances shall be unsecured and interest free and without
regard to the Indemnified Person’s ultimate entitlement to indemnification under
the other provisions of this Agreement. Indemnified Persons shall be entitled to
continue to receive advancement of expenses pursuant to this section unless and
until the matter of an Indemnified Person’s entitlement to indemnification
hereunder has been finally adjudicated by court order or judgment from which no
further right of appeal exists. Each Indemnified Person undertakes to repay such
amounts advanced only if, and to the extent that, it ultimately is determined
that the Indemnified Person is not entitled to be indemnified by the
Company under the provisions of this Agreement. 

          (B)     
Promptly after receipt by an Indemnified Person of notice of any claim or the
commencement of any action or proceeding with respect to which the Indemnified
Person is entitled to indemnity hereunder, the Indemnified Person will notify
the Company in writing of such claim or of the commencement of such action or
proceeding, and the Company will assume the defense of such action or proceeding
and will employ counsel reasonably satisfactory to the Indemnified Person and
will pay the reasonable fees and expenses of such counsel. Notwithstanding the
preceding sentence, the Indemnified Person will be entitled to employ counsel
separate from counsel for the Company and from any other party in such action if
counsel for the Indemnified Person determines that to do so would be in the best
interests of the Indemnified Person. In such event, the reasonable fees and
disbursements of no more than one such separate counsel for all Indemnified
Persons in the matter will be paid by the Company. The Company will have the
exclusive right to settle the claim or proceeding at its sole expense provided
that the Company obtains a full and unconditional release of any claims against
the Indemnified Persons from all liability on claims that are the subject matter
of such proceeding and does not include a statement as to an admission of fault,
culpability or a failure to act by or on behalf of any Indemnified Person. 

          (C)      The
Company and the Placement Agent and any Indemnified Persons agree to notify each
other promptly of the assertion of any claim or the commencement of any action
or proceeding relating to a transaction contemplated by this engagement letter.

          (D)      If
for any reason the foregoing indemnity is unavailable to the Placement Agent or
insufficient to hold the Placement Agent harmless, then the Company shall
contribute to the amount paid or payable by the Placement Agent as a result of
such losses, claims, damages or liabilities in such proportion as is appropriate
to reflect not only the relative benefits received by the Company on the one
hand and the Placement Agent on the other, but also the relative fault of the
Company on the one hand and the Placement Agent on the other that resulted in
such losses, claims, damages or liabilities, as well as any relevant equitable
considerations. The amounts paid or payable by a party in respect of losses,
claims, damages and liabilities referred to above shall be deemed to include any
legal or other fees and expenses reasonably incurred in defending any
litigation, proceeding or other action or claim. Notwithstanding the provisions
hereof, the Placement Agent’s share of the liability hereunder shall not be in
excess of the amount of fees actually received by Placement Agent under this
engagement letter (excluding any amounts received as reimbursement of expenses
incurred by Placement Agent). 

          (E)     
These indemnification provisions shall remain in full force and effect whether
or not the transaction contemplated by this Agreement is completed and shall
survive the termination of this Agreement, and shall be in addition to any
liability that the Company might otherwise have to any indemnified party under
this engagement letter or otherwise. 

-2-

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