Document:

nick-ex101_26.htm

 

Exhibit 10.1

 

 

			
	

	
 
	
U.S. Small Business Administration

NOTE

 

 

 

	
SBA Loan #
	
PPP 14482078-04

	
SBA Loan Name
	
Nicholas Financial, Inc.

	
Date
	
May 22, 2020

	
Loan Amount
	
$3,243,900.00

	
Interest Rate
	
1.00%; Fixed Rate

	
Borrower
	
Nicholas Financial. Inc. a Florida corporation

	
Operating Company
	
N/A

	
Lender
	
Fifth Third Bank, National Association. a federally chartered institution

 

	
1.
	
PROMISE TO PAY:

 

		
	
In return for the Loan, Borrower promises to pay to the order of Lender the amount of

Three million two hundred forty three thousand nine hundred and 00/100
	
Dollars,

	
interest on the unpaid principal balance, and all other amounts required by this Note.
	
 

	
2.
	
DEFINITIONS:

“Collateral” means any property taken as security for payment of this Note or any guarantee of this Note.

“Guarantor” means each person or entity that signs a guarantee of payment of this Note.

“Loan” means the loan evidenced by this Note.

“Loan Documents” means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral.

“SBA” means the Small Business Administration. an Agency of the United States of America.

 

 

		
	
SBA Form 147 (06/03/02) Version 4.1
	
Page 1/6

 

 

	
3.
	
PAYMENT TERMS:

Borrower must make all payments at the place Lender designates. The payment terms for this Note are:

 

	
	
Repayment terms:

The interest rate is 1% per year. The interest rate may only be changed in accordance with SOP 50 10.

Borrower must pay principal and interest payments of $181,646.75 every month, beginning seven months from the month this Note is dated; payments must be made on the 1st calendar day in the months they are due.

Lender will apply each installment first to pay interest accrued to the day Lender receives the payment, then to bring principal current, then to pay any late fees, and will apply any remaining balance to reduce principal.

Loan Prepayment:

Notwithstanding any provision in this Note to the contrary:

Borrower may prepay this Note. Borrower may prepay 20 percent or less of the unpaid principal balance at any time without notice. If Borrower prepays more than 20 percent and the Loan has been sold on the secondary market, Borrower must:

a.  Give Lender written notice;

b.  Pay all accrued interest; and

c.  If this prepayment is received less than 21 days from the date Lender receives the notice, pay an amount equal to 21 days' interest from the date lender receives the notice, less any interest accrued during the 21 days and paid under subparagraph b., above.

If Borrower does not prepay within 30 days from the date Lender receives the notice, Borrower must give Lender a new notice.

All remaining principal and accrued interest is due and payable 2 years and 0 months from date of Note.

 

 

		
	
SBA Form 147 (06/03/02) Version 4.1
	
Page 2/6

 

 

	
4.
	
DEFAULT:

Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower or Operating Company:

	
 
	
A.
	
Fails to do anything required by this Note and other Loan Documents;

	
 
	
B.
	
Defaults on any other loan with Lender;

	
 
	
C.
	
Does not preserve, or account to Lender's satisfaction for, any of the Collateral or its proceeds;

	
 
	
D.
	
Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA;

	
 
	
E.
	
Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA;

	
 
	
F.
	
Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower's ability to pay this Note;

	
 
	
G.
	
Fails to pay any taxes when due;

	
 
	
H.
	
Becomes the subject of a proceeding under any bankruptcy or insolvency law;

	
 
	
I.
	
Has a receiver or liquidator appointed for any part of their business or property;

	
 
	
J.
	
Makes an assignment for the benefit of creditors;

	
 
	
K.
	
Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower's ability to pay this Note;

	
 
	
L.
	
Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender's prior written consent; or

	
 
	
M.
	
Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower's ability to pay this Note.

	
5.
	
LENDER'S RIGHTS IF THERE IS A DEFAULT:

Without notice or demand and without giving up any of its rights, Lender may:

	
 
	
A.
	
Require immediate payment of all amounts owing under this Note;

	
 
	
B.
	
Collect all amounts owing from any Borrower or Guarantor;

	
 
	
C.
	
File suit and obtain judgment;

	
 
	
D.
	
Take possession of any Collateral; or

	
 
	
E.
	
Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement.

	
6.
	
LENDER'S GENERAL POWERS:

Without notice and without Borrower's consent, Lender may:

	
 
	
A.
	
Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses;

	
 
	
B.
	
Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney's fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal balance;

	
 
	
C.
	
Release anyone obligated to pay this Note;

	
 
	
D.
	
Compromise, release, renew, extend or substitute any of the Collateral; and

	
 
	
E.
	
Take any action necessary to protect the Collateral or collect amounts owing on this Note.

 

		
	
SBA Form 147 (06/03/02) Version 4.1
	
Page 3/6

 

 

	
7.
	
WHEN FEDERAL LAW APPLIES:

When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

	
8.
	
SUCCESSORS AND ASSIGNS:

Under this Note, Borrower and Operating Company include the successors of each, and Lender includes its successors and assigns.

	
9.
	
GENERAL PROVISIONS:

	
 
	
A.
	
All individuals and entities signing this Note are jointly and severally liable.

	
 
	
B.
	
Borrower waives all suretyship defenses.

	
 
	
C.
	
Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral.

	
 
	
D.
	
Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them.

	
 
	
E.
	
Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

	
 
	
F.
	
If any part of this Note is unenforceable, all other parts remain in effect.

	
 
	
G.
	
To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral at a sale.

 

 

		
	
SBA Form 147 (06/03/02) Version 4.1
	
Page 4/6

 

 

	
10.
	
STATE-SPECIFIC PROVISIONS:

 

	
	
 

 

 

		
	
SBA Form 147 (06/03/02) Version 4.1
	
Page 5/6

 

 

	
11.
	
BORROWER'S NAME(S) AND SIGNATURE(S):

By signing below, each individual or entity becomes obligated under this Note as Borrower.

 

	
Nicholas Financial, Inc.
	
 
	
 

	
a Florida corporation
	
 
	
 

	
 
	
 
	
 

	
/s/ Doug Marohn
	
 
	
5/27/20

	
Signature of Authorized Representative of Borrower
	
 
	
Date

	
 
	
 
	
 

	
Doug Marohn
	
 
	
President & CEO

	
Name of Authorized Representative of Borrower
	
 
	
Title

	
 
	
 
	
 

 

 

 

		
	
SBA Form 147 (06/03/02) Version 4.1
	
Page 6/6

 

 

 

	

	
Paycheck Protection Program

Lender Application Form - Paycheck Protection Program Loan Guaranty
	
OMB Control No.: 3245-0407

Expiration Date: 09/30/2020

 

The purpose of this form is to collect identifying information about the Lender, the Applicant, the loan guaranty request, sources and uses of funds, the proposed structure (which includes pricing and the loan term), and compliance with SBA Loan Program Requirements. This form reflects the data fields that will be collected electronically from lenders; no paper version of this form is required or permitted to be submitted. As used in this application, "Paycheck Protection Program Rule" refers to the rules in effect at the time you submit this application that have been issued by the Small Business Administration (SBA) implementing the Paycheck Protection Program under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

Instructions for Lenders 

All Paycheck Protection Program (PPP) loans are processed by all Lenders under delegated authority from SBA. This application must be submitted and signed electronically in accordance with program requirements, and the information requested is to be retained in the Lender's loan file.

 

	
  A. Lender Information

	
  Lender Name:
	
 
	
Fifth Third Bank, National Association
	
 
	
Lender Location ID:
	
 
	
58036

	
  Address:
	
 
	
38 Fountain Square Plaza
	
 
	
City:
	
 
	
Cincinnati
	
 
	
St:
	
 
	
OH
	
 
	
Zip:
	
 
	
45202

	
  Lender Contact:
	
 
	
Michael Shepherd
	
 
	
Ph:
	
 
	
(513)534-5300
	
 
	
Cell or Ext:
	
 
	
(        )       -

	
  Contact Email:
	
 
	
michael.shepherd@53.com
	
 
	
 
	
 
	
Title:
	
 
	
SVP

 

	
  B. Applicant Information

	
 
	
Check One:
	
 
	
☐ Sole Proprietor   ☐ Partnership ☑ C-Corp   ☐ S-Corp   ☐ LLC   ☐ Independent contractor

	

	
 
	
 
	
 
	
☐ Eligible self-employed individual   ☐ 501(c)(3) nonprofit   ☐ 501(c)(19) veterans organization

	
 
	
 
	
 
	
☐ Tribal business (sec. 31(b)(2)(C) of Small Business Act)   ☐ Other

	
 
	
Applicant Legal Name:
	
 
	
Nicholas Financial, Inc.
	
 
	
 
	
 
	
 

	
 
	
DBA:
	
 
	
 
	
 
	
Business Tax ID:
	
 
	
59-3019317

	
 
	
Applicant Address:
	
 
	
2454 McMullen Booth Rd
	
 
	
City, State, Zip:
	
 
	
Clearwater FL 33459

	
 
	
Applicant Primary Contact:
	
 
	
Irina Nashtatik
	
 
	
Phone:
	
 
	
(727)386-7915

 

	
  C. Loan Structure Information

	
  Amount of Loan Request:
	
$ 3,243,900.00
	
Guarantee %:
	
100%
	
Loan Term in # of Months:
	
24
	
Payment:
	
Deferred 6 mos.

	
Applicant must provide documentation to Lender supporting how the loan amount was calculated in accordance with the Paycheck Protection Program Rule and the CARES Act, and Lender must retain all such supporting documentation in Lender's file.

	
Interest Rate:
	
1%
	
 

 

	
  D. Loan Amount Information

	
Average Monthly Payroll multiplied by 2.5
	
 
	
$ 3,243,900.00

	
Refinance of Eligible Economic Injury Disaster Loan, net of Advance (if Applicable: see Paycheck Protection Program Rule)
	
 
	
$ 0

	
Total
	
 
	
$ 3,243,900.00

 

	
  E. General Eligibility (If the answer is no to either, the loan cannot be approved)

	
 
	
 
	
•
	
 
	
The Applicant has certified to the Lender that (1) it was in operation on February 15, 2020 and had employees for whom the Applicant paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC, (2) current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant, (3) the funds will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, and (4) the Applicant has not received another Paycheck Protection Program loan.
	
 
	
☒   Yes    ☐    No

	
 
	
 
	
•
	
 
	
The Applicant has certified to the Lender that it (1) is an independent contractor, eligible self-employed individual, or sole proprietor or (2) employs no more than the greater of 500 or employees or, if applicable, meets the size standard in number of employees established by the SBA in 13 C.F.R. 121.201 for the Applicant's industry.
	
 
	
☒   Yes    ☐    No

 

	
  F. Applicant Certification of Eligibility (If not true, the loan cannot be approved)

	
 
	
 
	
•
	
 
	
The Applicant has certified to the Lender that the Applicant is eligible under the Paycheck Protection Program Rule.
	
 
	
☒   True

 

	
  G. Franchise/License/Jobber/Membership or Similar Agreement (If applicable and no, the loan cannot be approved)

	
 
	
 
	
•
	
 
	
The Applicant has represented to the Lender that it is a franchise that is listed in the SBA's Franchise Directory.
	
 
	
☐   Yes    ☒    No

 

	
SBA Form 2484 (Revised 04/20)
	
1
	
 

 

 

 

	
  H. Character Determination (If no, the loan cannot be approved)

	
 
	
 
	
•
	
 
	
The Applicant has represented to the Lender that neither the Applicant (if an individual) nor any individual owning 20% or more of the equity of the Applicant is subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction, or is presently incarcerated, or on probation or parole.
	
 
	
☒   Yes    ☐    No

	
 
	
 
	
•
	
 
	
The Applicant has represented to the Lender that neither the Applicant (if an individual) nor any individual owning 20% or more of the equity of the Applicant has within the last 5 years, for any felony: 1) been convicted; 2) pleaded guilty; 3) pleaded nolo contendere; 4) been placed on pretrial diversion; or 5) been placed on any form of parole or probation (including probation before judgment).
	
 
	
☒   Yes    ☐    No

 

	
  I. Prior Loss to Government/Delinquent Federal Debt (If no, the loan cannot be approved)

	
 
	
 
	
•
	
 
	
The Applicant has certified to the Lender that neither the Applicant nor any owner (as defined in the Applicant's SBA Form 2483) is presently suspended, debarred, proposed for debarment, declared ineligible, voluntarily excluded from participation in this transaction by any Federal department or agency, or presently involved in any bankruptcy.
	
 
	
☒   Yes    ☐    No

	
 
	
 
	
•
	
 
	
The Applicant has certified to the Lender that neither the Applicant nor any of its owners, nor any business owned or controlled by any of them, ever obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted in the last 7 years and caused a loss to the government.
	
 
	
☒   Yes    ☐    No

 

	
  J. U.S. Employees (If no, the loan cannot be approved)

	
 
	
 
	
•
	
 
	
The Applicant has certified that the principal place of residence for all employees included in the Applicant's payroll calculation is the United States.
	
 
	
☒   Yes    ☐    No

 

	
  K. Fees (If yes, Lender may not pass any agent fee through to the Applicant or offset or pay the fee with the proceeds of this loan)

	
 
	
 
	
•
	
 
	
Is the Lender using a third party to assist in the preparation of the loan application or application materials, or to perform other services in connection with this loan?
	
 
	
☐   Yes    ☒    No

 

SBA Certification to Financial Institution under Right to Financial Privacy Act (12 U.S.C. 3401)

By signing SBA Form 2483, Borrower Information Form in connection with this application for an SBA-guaranteed loan, the Applicant certifies that it has read the Statements Required by Law and Executive Orders, which is attached to Form 2483. As such, SBA certifies that it has complied with the applicable provisions of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401) and, pursuant to that Act, no further certification is required for subsequent access by SBA to financial records of the Applicant/Borrower during the term of the loan guaranty.

Lender Certification

On behalf of the Lender, I certify that:

	
•
	
The Lender has complied with the applicable lender obligations set forth in paragraphs 3.b(i)-(iii) of the Paycheck Protection Program Rule.

	
•
	
The Lender has obtained and reviewed the required application (including documents demonstrating qualifying payroll amounts) of the Applicant and will retain copies of such documents in the Applicant's loan file.

I certify that:

	
•
	
Neither the undersigned Authorized Lender Official, nor such individual's spouse or children, has a financial interest in the Applicant.

 

	
Authorized Lender Official:
	
Alicia Moge
	
Date:
	
5/27/20

	
 
	
Signature
	
 
	
 

	
 
	
 
	
 
	
 

	
Type or Print Name:
	
Alicia Moge
	
Title:
	
Officer

 

NOTE: According to the Paperwork Reduction Act, you are not required to respond to this collection of information unless it displays a currently valid OMB Control Number. The estimated burden for completing this form, including time for reviewing instructions, gathering data needed, and completing and reviewing the form is 25 minutes per response. Comments or questions on the burden estimates should be sent to U.S. Small Business Administration, Director, Records Management Division, 409 3rd St., SW, Washington DC 20416, and/or SBA Desk Officer, Office of Management and Budget, New Executive Office Building, Rm. 10202, Washington DC 20503. PLEASE DO NOT SEND FORMS TO THESE ADDRESSES.

 

 

 

	
SBA Form 2484 (Revised 04/20)
	
2
	
 

 

 

PAYROLL PROTECTION PROGRAM 
Loan Disbursement Form

		
	
Lender Name:
	
Fifth Third Bank, National Association

	
Lender FIRS Number:
	
A363295

	
PPP Borrower Name:
	
Nicholas Financial, Inc.

	
PPP SBA Loan #:
	
PPP14482078-04

	
Note Amount:
	
$3,243,900.00

 

CHOOSE METHOD FOR DISBURSEMENT OF LOAN FUNDS:

☐ FIFTH THIRD BUSINESS ACCOUNT (Account MUST be in the name of the applicant business)

 

	
Account name:
	
 

	
 
	
 

	
Account Type:
	
 

	
Account Number:
	
 

	
 
	
 

 

☒ ELECTRONIC TRANSFER TO ANOTHER BANK ACCOUNT (Account MUST be in the name of the applicant business)

 

	
Account name: Nicholas Financial, Inc
	
 

	
Account Type: DDA
	
 
	
	
Account Number: 4862503661
	
 
	
	
Routing Number: 121000248
	
 
	
	
 
	
 
	
	
 
	
 
	

 

	
Authorized Signer:
	
Doug Marohn, President / CEO
	
Date: 
	
5/27/20

	
 
	
Name/Title
	
 
	
 

 

Contact Information for Authorized Signer:

 

	
Phone:
	
727-431-6114

	
Email:
	
Doug.marohn@nicfn.com

 

 

 

 

 

 

	
Fee Disclosure and Compensation Agreement 

For use with 7(a) and 504 Loan Programs
	
OMB Control No.: 3245-0201

Expiration Date: 08/31/2021

 

Purpose of this form: The purpose of this form is to identify Agents and the fees and/or compensation paid to Agents by or on behalf of a small business applicant (“Applicant”) for the purpose of obtaining or expediting an application for a loan guaranteed by the U.S. Small Business Administration (SBA). This is a statutory requirement under 15 U.S.C. 642. See 13 CFR Parts 103 and 120 and SBA's Standard Operating Procedure 50 10 for the rules governing compensation of Agents or SBA Lenders in connection with an SBA loan.

Who must complete this form?: This form must be completed and signed by the SBA Lender and the Applicant whenever an Agent is paid by either the Applicant or the SBA Lender in connection with the SBA loan application. Each Agent paid by the Applicant to assist it in connection with its application must also complete and sign the form. When an Agent is paid by the SBA Lender, the SBA Lender must complete this form and the SBA Lender and Applicant must both sign the form. The SBA Lender must inform the Applicant in writing that the Applicant is not required to employ an Agent or representative (including the SBA Lender) to assist the Applicant with the SBA loan application.

Compensation must be disclosed on this form for the following services:

	
 
	
1.
	
Loan packaging services, as defined in SOP 50 10, performed by an SBA Lender or other third party (This includes services performed by an individual/entity that is a Lender Service Provider (LSP) (7(a) only) or has an SBA-approved Professional Services Contract (504 only) with the SBA Lender who is acting as a loan packager or referral agent employed by the Applicant);

	
 
	
2.
	
Financial statement preparation specifically for the loan application; and/or

	
 
	
3.
	
Consulting, Broker, or Referral services paid by the Applicant, SBA Lender, or Third Party Lender (504 only).

Fees paid to the following individuals for their services in connection with the SBA loan application are not required to be disclosed on this form:

	
 
	
1.
	
Applicant's accountant performing services in the normal course of business;

	
 
	
2.
	
Any attorney in connection with the 7(a) or 504 loan closing;

	
 
	
3.
	
A state-certified or state-licensed appraiser employed by the SBA Lender to appraise collateral;

	
 
	
4.
	
An LSP performing services for the Lender under an SBA-reviewed LSP agreement (7(a) only) or an individual performing services for the CDC under an SBA-approved professional services contract (504 only);

	
 
	
5.
	
An individual employed by the SBA Lender to perform a business valuation in connection with the SBA loan;

	
 
	
6.
	
An environmental professional employed by the SBA Lender to conduct an environmental assessment of the collateral; and/or

	
 
	
7.
	
A real estate agent who is receiving a commission for the sale of real estate.

Instructions for completing this form: The Agent must be identified, all services provided must be listed, and the party paying the fee and amount paid must also be disclosed (and itemized, when required). The SBA Lender must ensure that the Agent performing services is not debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or Agency. (See www.sam.gov.) The SBA does not allow contingency fees (fees paid only if the loan is approved) or charges for services which are not reasonably necessary in connection with an application. A separate form is required for each Agent (including an SBA Lender when the SBA Lender performs packaging services) that has or will receive compensation as part of the transaction. However, all of the services provided by the same Agent may be listed on a single form.

If the compensation paid exceeds $2,500, the Agent must provide supporting documents that include: 1) a detailed explanation of the work performed; and 2) the hourly rate(s) and the number of hours spent working on each activity. The SBA Lender must ensure that the supporting documents are attached to this form. When a single provider charges an Applicant in connection with multiple applications, fees are aggregated to establish the $2,500 threshold for requiring supporting documents and a detailed explanation. Supporting documents and a detailed explanation are required even if the compensation is charged on a percentage basis.

All SBA Lenders must retain the original Form 159 in the loan file. 7(a) Lenders must submit a copy of each completed Form 159 to Fiscal Transfer Agent only once after there has been an initial disbursement on the loan in conjunction with its monthly 1502 report. CDCs must submit a copy of each completed Form 159 to SBA in its Annual Report for all of the 504 loans closed during the fiscal year being reported.

 

		
	
SBA Form 159 (04-18) Previous Editions Obsolete
	
Page 1 of 3

 

 

 

	
Fee Disclosure and Compensation Agreement 

For use with 7(a) and 504 Loan Programs
	
OMB Control No.: 3245-0201

Expiration Date: 08/31/2021

 

	
☒ 7(a) loan
	
 
	
☐ 504 loan

 

									
	
SBA Loan Name:
	
Nicholas Financial, Inc.

	
SBA Loan Number (no spaces):
	
PPP14482078-04
	
SBA Lender FIRS (no spaces):
	
 A363295

	
SBA Lender Legal Name:
	
Fifth Third Bank, National Association

	
Services Performed by (Name of Agent):
	
Fifth Third Bank, National Association

	
Agent Contact Person:
	
 

	
Agent Address:
	
 

Type of Agent:

 

					
	
☒ SBA Lender
	
 
	
☐ Consultant
	
☐ Third Party Lender (“TPL”)

	
☐ Independent Loan Packager

☐ Referral Agent/Broker
	
 
	
☐ Accountant preparing financial statements specifically for SBA loan application
	
☐ Other:
	
 

	
 
	
 
	
 

 

	
Type of Service
	
Amount Paid by Applicant*
	
Amount Paid by SBA Lender*

	
Loan packaging
	
0.00
	
0.00

	
Financial statement preparation for loan application
	
 
	
 

	
Broker or Referral services
	
 
	
 

	
Consultant services
	
 
	
 

	
Other:                                                      
	
 
	
 

 

*The Agent may not be compensated by both Applicant and SBA Lender for the same service. Furthermore, any Agent employed by the SBA Lender must be paid by the SBA Lender and those fees cannot be passed on to the Applicant.

 

	
Total compensation paid by:
	
Applicant: $  0.00                                             
	
SBA Lender: $  0.00                                                               

	
 
	
 

 

	
☐
	
Itemization and supporting documentation is attached. (Itemization and supporting documentation is required if the compensation paid exceeds $2,500. Itemization must include: 1) a detailed explanation of the work performed; and 2) the hourly rate and the number of hours spent working on each activity.) Note: SBA, in its discretion, may request an itemization and supporting documentation for any fee charged in connection with an SBA loan application, regardless of the amount.

For 504 loans only: 

 

			
	
☐ CDC received referral fee from a TPL
	
Amount of Fee: 
	
$ 

 

			
	
TPL Name:
	
 

	
TPL Address:
	
 

 

WARNING: False certifications can result in criminal prosecution under 18 U.S.C. § 1001 and other penalties provided under law.  Violation of any of the SBA Loan Program Requirements regarding SBA Form 159 and the related activities by the SBA Lender and/or an Agent may result in SBA's suspension or revocation of the privilege of conducting business with the SBA under 13 CFR Part 103.

Applicant's Certifications: By signing this form, the Applicant certifies to SBA that the above representations and amounts are the only amounts paid (or that will be paid) by the Applicant in connection with the stated services and are satisfactory to the Applicant. The Applicant further certifies that a separate compensation agreement (SBA Form 159) has been executed for all Agents, as defined in 13 CFR § 103.1. If the certification is made by a legal entity (e.g. corporation, limited liability company), execution of the certification must be in the legal entity's name by a duly authorized officer or other entity representative; if by a partnership, execution of the certification must be in the partnership's name by a general partner.

Applicant must not sign this form until all required services and fee information is disclosed.

 

	
/s/ Doug Marohn
	
 
	
5/27/20

	
Signature of Authorized Representative of Applicant
	
 
	
Date

	
 
	
 
	
 

	
Doug Marohn
	
 
	
President / CEO

	
Print Name
	
 
	
Title

 

 

		
	
SBA Form 159 (04-18) Previous Editions Obsolete
	
Page 2 of 3

 

 

 

	
Fee Disclosure and Compensation Agreement 

For use with 7(a) and 504 Loan Programs
	
OMB Control No.: 3245-0201

Expiration Date: 08/31/2021

 

Agent's Certifications: By signing this form, the undersigned Agent certifies that: (1) it has not and will not directly or indirectly charge or receive any payment from the Applicant in connection with the application for or making of the SBA loan except for services actually performed on the Applicant's behalf and identified in this form; (2) the information provided in this form accurately describes the types of services (s)he/it has provided to the Applicant or SBA Lender and the compensation described in this form is the only compensation that has been charged to or received from the Applicant or SBA Lender or that will be charged to the aforementioned parties for services covered by this form; (3) neither it nor any of the employees of its organization are currently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction by any Federal department or Agency; and (4) if SBA deems any portion or all of the fees charged in connection with the application for or making of the loan to be unreasonable or prohibited, the Agent agrees to refund that amount to the Applicant. If the certification is made by a legal entity (e.g. corporation, limited liability company), execution of the certification must be in the legal entity's name by a duly authorized officer or other entity representative; if by a partnership, execution of the certification must be in the partnership's name by a general partner.

 

	
 
	
 
	
 

	
Signature of Authorized Representative of Agent
	
 
	
Date

	
 
	
 
	
 

	
Print Name
	
 
	
Title

 

SBA Lender's Certifications: The undersigned SBA Lender certifies that: (1) the representations of services rendered and the amounts charged as identified in this form are reasonable and satisfactory to it; (2) (s)he has no knowledge that any Agent, as defined in 13 CFR § 103.1, was engaged by, represented, or worked on behalf of the Applicant other than as disclosed above or in another executed compensation agreement (SBA Form 159); (3) any referral fees described above are the only referral fees paid by the SBA Lender to a referral agent in connection with this loan and were not charged directly or indirectly to the Applicant; (4) if SBA deems any portion or all of the fees charged in connection with the application for or making of the loan to be unreasonable or prohibited, the SBA Lender agrees to refund that amount to the Applicant; (5) it has consulted the System for Awards Management's (SAM) Excluded Parties List System or any successor system to ensure that the Agent identified above is not debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction by any Federal department or Agency; and (6) any fee it has charged is not a standardized amount and all fees charged to the Applicant comply with SBA Loan Program Requirements.

 

	
/s/ Alicia Moge
	
 
	
5/27/20

	
Signature of Authorized Representative of SBA Lender
	
 
	
Date

	
 
	
 
	
 

	
Alicia Moge
	
 
	
Officer

	
Print Name
	
 
	
Title

 

Systems of Record Notification: Information obtained from this form is part of the Agency's Privacy Act Systems of Records, Loan Systems ("SOR 21") and may become part of SBA's System of Records for Suspension and Debarment Files ("SOR 36"). As such, this form and the information contained therein may be used, disclosed, or referred for the following purposes, among other things:

	
 
	
•
	
To the Federal, State, local or foreign agency or professional organization which investigates, prosecutes, or enforces violations of statutes, rules, regulations, or orders, or which undertakes procurement of goods or services, when SBA determines that disclosure will promote programmatic integrity or protect the public interest.

	
 
	
•
	
To SBA employees, contractors, interns, volunteers, and other regulators or legal authorities for the review of Loan Agent fees and activities and for the review of loans generated by Loan Agents (e.g. for performance and other trends).

	
 
	
•
	
To GSA and the public for publication of Loan Agent suspensions, revocations, debarments, other enforcement actions, and exclusions in the System Award's Management's (SAM) Excluded Parties List System ("EPLS") or any successor system consistent with Executive Order 12549 and other applicable law.

	
 
	
•
	
To other regulators, SBA employees, contractors, interns, and/or volunteers for regulatory purposes.

	
 
	
•
	
See 77 FR 61467 (October 9, 2012), 77 FR 15835 (March 16, 2012), 74 FR 14890 (April 1, 2009), and as amended from time-to-time for additional routine uses.

PLEASE NOTE: The estimated burden for completion of this form is 5 minutes per response. You are not required to respond to this information collection unless it displays a currently valid OMB approval number. Comments/questions on the burden estimate should be sent to U.S. SBA, Chief, Administration Information Branch, Washington, D.C. 201416, and Desk Officer for SBA, OMB, New Exec. Office Building, Room 10202, Washington, D.C. 20503. PLEASE DO NOT SEND FORMS TO THESE ADDRESSES.

 

 

		
	
SBA Form 159 (04-18) Previous Editions Obsolete
	
Page 3 of 3Exhibit 4.10

 

PACIFIC ETHANOL, INC.

 

AND

 

[TRUSTEE]

 

Trustee

 

_______________

 

INDENTURE

 

DATED AS OF ___________, 20__

 

_______________

 

SENIOR DEBT SECURITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

PACIFIC ETHANOL, INC.

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939, AS AMENDED,

AND INDENTURE, DATED AS OF ________, 20__

 

	
        TRUST INDENTURE ACT SECTION	 	
        INDENTURE SECTION
	 	 	 
	Section 310(a)(1)	 	6.9
	(a)(2)	 	6.9
	(a)(3)	 	Not Applicable
	(a)(4)	 	Not Applicable
	(a)(5)	 	6.9
	(b)	 	6.8
	Section 311	 	6.13
	Section 312(a)	 	7.1, 7.2(a)
	(b)	 	7.2(b)
	(c)	 	7.2(c)
	Section 313(a)	 	7.3
	(b)	 	*
	(c)	 	*
	(d)	 	7.3
	Section 314(a)	 	7.4
	(a)(4)	 	10.5
	(b)	 	Not Applicable
	(c)(1)	 	1.3
	(c)(2)	 	1.3
	(c)(3)	 	Not Applicable
	(d)	 	Not Applicable
	(e)	 	1.3
	Section 315(a)	 	6.1(a)
	(b)	 	6.2
	(c)	 	6.1(b)
	(d)	 	6.1(c)
	(d)(1)	 	6.1(a)(1)
	(d)(2)	 	6.1(c)(2)
	(d)(3)	 	6.1(c)(3)
	(e)	 	5.14
	Section 316(a)	 	1.1, 1.2
	(a)(1)(A)	 	5.2, 5.12
	(a)(1)(B)	 	5.13
	(a)(2)	 	Not Applicable
	(b)	 	5.8
	(c)	 	1.5(f)
	Section 317(a)(1)	 	5.3
	(a)(2)	 	5.4
	(b)	 	10.3
	Section 318(a)	 	1.8

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

 

* Deemed included pursuant to Section 318(c)
of the Trust Indenture Act

 

 

 

    	 	 	 

     

    

TABLE OF CONTENTS

 

	 	 	Page
	ARTICLE ONE	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	1
	1.1	Definitions	1
	1.2	Incorporation by Reference of Trust Indenture Act	8
	1.3	Compliance Certificates and Opinions	9
	1.4	Form of Documents Delivered to Trustee	9
	1.5	Acts of Holders; Record Dates	10
	1.6	Notices, Etc., to Trustee and Company	11
	1.7	Notice to Holders; Waiver	11
	1.8	Conflict with Trust Indenture Act	12
	1.9	Effect of Headings and Table of Contents	12
	1.10	Successors and Assigns	12
	1.11	Separability Clause	12
	1.12	Benefits of Indenture	12
	1.13	Governing Law	12
	1.14	Legal Holidays	12
	1.15	Securities in a Composite Currency, Currency Unit or Foreign Currency	13
	1.16	Payment in Required Currency; Judgment Currency	13
	1.17	Language of Notices, Etc	14
	1.18	Incorporators, Shareholders, Officers and Directors of the Company Exempt from Individual Liability	14
	 	 	 
	ARTICLE TWO	SECURITY FORMS	14
	2.1	Forms Generally	14
	2.2	Form of Face of Security	15
	2.3	Form of Reverse of Security	17
	2.4	Global Securities	21
	2.5	Form of Trustee’s Certificate of Authentication	22
	 	 	 
	ARTICLE THREE	THE SECURITIES	22
	3.1	Amount Unlimited; Issuable in Series	22
	3.2	Denominations	25
	3.3	Execution, Authentication, Delivery and Dating	25
	3.4	Temporary Securities	27
	3.5	Registration, Registration of Transfer and Exchange	27
	3.6	Mutilated, Destroyed, Lost and Stolen Securities	30
	3.7	Payment of Interest; Interest Rights Preserved	31
	3.8	Persons Deemed Owners	32
	3.9	Cancellation	32
	3.10	Computation of Interest	32
	3.11	CUSIP or CINS Numbers	32

 

 

 

    	 	i	 

     

    

 

	 	 	Page
	ARTICLE FOUR	SATISFACTION AND DISCHARGE	32
	4.1	Satisfaction and Discharge of Indenture	32
	4.2	Application of Trust Money	34
	 	 	 
	ARTICLE FIVE	REMEDIES	34
	5.1	Events of Default	34
	5.2	Acceleration of Maturity; Rescission and Annulment	35
	5.3	Collection of Indebtedness and Suits for Enforcement by Trustee	36
	5.4	Trustee May File Proofs of Claim	36
	5.5	Trustee May Enforce Claims Without Possession of Securities	37
	5.6	Application of Money Collected	37
	5.7	Limitation on Suits	38
	5.8	Unconditional Right of Holders to Receive Principal, Premium and Interest	38
	5.9	Restoration of Rights and Remedies	38
	5.10	Rights and Remedies Cumulative	39
	5.11	Delay or Omission Not Waiver	39
	5.12	Control by Holders	39
	5.13	Waiver of Past Defaults	39
	5.14	Undertaking for Costs	40
	5.15	Waiver of Stay or Extension Laws	40
	 	 	 
	ARTICLE SIX	THE TRUSTEE	40
	6.1	Certain Duties and Responsibilities	40
	6.2	Notice of Defaults	41
	6.3	Certain Rights of Trustee	41
	6.4	Not Responsible for Recitals or Issuance of Securities	43
	6.5	May Hold Securities	43
	6.6	Money Held in Trust	43
	6.7	Compensation and Reimbursement	43
	6.8	Disqualification; Conflicting Interests	44
	6.9	Corporate Trustee Required; Eligibility	44
	6.10	Resignation and Removal; Appointment of Successor	44
	6.11	Acceptance of Appointment by Successor	46
	6.12	Merger, Conversion, Consolidation or Succession to Business	47
	6.13	Preferential Collection of Claims Against Company	47
	6.14	Appointment of Authenticating Agent	47
	 	 	 
	ARTICLE SEVEN	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY	49
	7.1	Company to Furnish Trustee Names and Addresses of Holders	49
	7.2	Preservation of Information; Communications to Holders	49
	7.3	Reports by Trustee	50
	7.4	Reports by Company	51

 

 

 

    	 	ii	 

     

    

 

	 	 	Page
	ARTICLE EIGHT	CONSOLIDATION, AMALGAMATION, MERGER AND SALE	51
	8.1	Company May Consolidate, Etc., Only on Certain Terms	51
	8.2	Successor Substituted	52
	 	 	 
	ARTICLE NINE	AMENDMENT, SUPPLEMENT AND WAIVER	52
	9.1	Without Consent of Holders	52
	9.2	With Consent of Holders	54
	9.3	Execution of Supplemental Indentures	56
	9.4	Effect of Supplemental Indentures	56
	9.5	Conformity with Trust Indenture Act	56
	9.6	Reference in Securities to Supplemental Indentures	56
	 	 	 
	ARTICLE TEN	COVENANTS	56
	10.1	Payment of Principal, Premium and Interest	56
	10.2	Maintenance of Office or Agency	56
	10.3	Money for Securities Payments to Be Held in Trust	57
	10.4	Existence	58
	10.5	Statement by Officers as to Default	58
	10.6	Additional Amounts	59
	 	 	 
	ARTICLE 

ELEVEN	REDEMPTION OF SECURITIES	59
	11.1	Applicability of Article	59
	11.2	Election to Redeem; Notice to Trustee	59
	11.3	Selection by Trustee of Securities to Be Redeemed	60
	11.4	Notice of Redemption	60
	11.5	Deposit of Redemption Price	61
	11.6	Securities Payable on Redemption Date	61
	11.7	Securities Redeemed in Part	61
	 	 	 
	ARTICLE 

TWELVE	SINKING FUNDS	62
	12.1	Applicability of Article	62
	12.2	Satisfaction of Sinking Fund Payments with Securities	62
	12.3	Redemption of Securities for Sinking Fund	62
	 	 	 
	ARTICLE THIRTEEN  	DEFEASANCE	63
	13.1	Option to Effect Legal Defeasance or Covenant Defeasance	63
	13.2	Legal Defeasance and Discharge	63
	13.3	Covenant Defeasance	63
	13.4	Conditions to Legal or Covenant Defeasance	64
	13.5	Deposited Money and U.S. Government Obligations to be Held in Trust, Other Miscellaneous Provisions	65
	13.6	Repayment	66
	13.7	Reinstatement	66

 

 

 

    	 	iii	 

     

    

INDENTURE

 

INDENTURE, dated as
of __________, 20__, between PACIFIC ETHANOL, INC., a corporation duly organized and existing under the laws of the State of Delaware (herein
called the “Company”) and [TRUSTEE], a banking corporation organized under the laws of the United States, as
trustee (the “Trustee”).

 

RECITALS

 

WHEREAS, the Company
has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured
senior debentures, notes or other evidences of indebtedness (herein called the “Securities”), to be issued in
one or more series as provided in this Indenture;

 

WHEREAS, all things
necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done; and

 

WHEREAS, this Indenture
is subject to the provisions of the Trust Indenture Act that are required to be a part of this Indenture and, to the extent applicable,
shall be governed by such provisions.

 

NOW, THEREFORE, in
consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed,
for the equal and proportionate benefit of all Holders of the Securities or of series thereof, as follows:

 

ARTICLE
One

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

1.1       Definitions. For all purposes of this Indenture, except as otherwise expressly provided
or unless the context otherwise requires:

 

(a)       the terms defined in this Article have the meanings assigned to them in this Article and include
the plural as well as the singular;

 

(b)       all terms used in this Indenture that are defined in the Trust Indenture Act, defined by a
Trust Indenture Act reference to another statute or defined by an SEC rule under the Trust Indenture Act have the meanings so assigned
to them;

 

(c)       all accounting terms not otherwise defined herein have the meanings assigned to them in accordance
with GAAP;

 

(d)       the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision;

 

(e)       the words “Article” and “Section” refer to an Article
and Section, respectively, of this Indenture; and

 

 

 

    	 	1	 

     

    

 

(f)       the word “includes” and its derivatives means “includes, but is
not limited to” and corresponding derivative definitions.

 

Certain terms, used
principally in Article Six, are defined in that Article.

 

“Act,”
when used with respect to any Holder, has the meaning specified in Section 1.5.

 

“Additional
Defeasible Provision” means a covenant or other provision contained that is (a) made part of this Indenture pursuant
to a supplemental indenture hereto, a Board Resolution or an Officer’s Certificate delivered pursuant to Section 3.1,
and (b) pursuant to the terms set forth in such supplemental indenture, Board Resolution or Officer’s Certificate, made subject
to the provisions of Article Thirteen.

 

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

 

“Authenticating
Agent” means any Person authorized by the Trustee to act on behalf of the Trustee to authenticate Securities.

 

“Banking Day”
means, in respect of any city, any date on which commercial banks are open for business in that city.

 

“Bankruptcy
Law” means any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law.

 

“Board of
Directors” means the board of directors of the Company or any duly authorized committee of that board to which the powers
of that board have been lawfully delegated.

 

“Board Resolution”
means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company, the principal financial officer
of the Company, any other authorized officer of the Company, or a person duly authorized by any of them, in each case as applicable,
to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered
to the Trustee. Where any provision of this Indenture refers to action to be taken pursuant to a Board Resolution (including the
establishment of any series of the Securities and the forms and terms thereof), such action may be taken by any committee, officer
or employee of the Company authorized to take such action by the Board of Directors as evidenced by a Board Resolution.

 

“Business
Day,” when used with respect to any Place of Payment or other location, means, except as otherwise provided as contemplated
by Section 3.1 with respect to any series of Securities, each Monday, Tuesday, Wednesday, Thursday and Friday which
is not a day on which banking institutions in that Place of Payment or other location are authorized or obligated by law, executive
order or regulation to close.

 

 

 

    	 	2	 

     

    

“CINS”
means the CUSIP International Numbering System.

 

“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

“Company”
means the Person named as the “Company” in the first paragraph of this instrument until a successor or resulting corporation
shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean
such successor or resulting corporation.

 

“Company Request”
or “Company Order” means, in the case of the Company, a written request or order signed in the name of the Company
by its Chairman of the Board, its Chief Executive Officer, its Chief Financial Officer, its Chief Operating Officer, its President,
any of its Vice Presidents or any other duly authorized officer of the Company or any person duly authorized by any of them, and
delivered to the Trustee.

 

“Corporate
Trust Office” means the office of the Trustee at its address specified in Section 1.6 or such other address
as to which the Trustee may give notice to the Company.

 

“corporation”
includes corporations, companies, associations, partnerships, limited partnerships, limited liability companies, joint-stock companies
and trusts.

 

“Covenant
Defeasance” has the meaning specified in Section 13.3.

 

“CUSIP”
means the Committee on Uniform Securities Identification Procedures.

 

“Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

“Debt”
means any obligation created or assumed by any Person for the repayment of money borrowed and any purchase money obligation created
or assumed by such Person and any guarantee of the foregoing.

 

“Default”
means, with respect to a series of Securities, any event that is, or after notice or lapse of time or both would be, an Event of
Default.

 

“Defaulted
Interest” has the meaning specified in Section 3.7.

 

“Definitive
Security” means a security other than a Global Security or a temporary Security.

 

“Depositary”
means, with respect to the Securities of any series issuable or issued in whole or in part in the form of one or more Global Securities,
a clearing agency registered under the Exchange Act that is designated to act as Depositary for such Securities as contemplated
by Section 3.1, until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter shall mean or include each Person which is a Depositary hereunder, and if at any time there is more than one such
Person, shall be a collective reference to such Persons.

 

 

 

    	 	3	 

     

    

 

“Dollar”
or “$” means the coin or currency of the United States of America, which at the time of payment is legal tender
for the payment of public and private debts.

 

“Event of
Default” has the meaning specified in Section 5.1.

 

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

 

“Foreign Currency”
means a currency used by the government of a country other than the United States of America.

 

“GAAP”
means generally accepted accounting principles in the United States of America as in effect from time to time, including those
set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants
and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity
as approved by a significant segment of the accounting profession. All ratios and computations based on GAAP contained in this
Indenture will be computed in conformity with GAAP.

 

“Global Security”
means a Security in global form that evidences all or part of a series of Securities and is authenticated and delivered to, and
registered in the name of, the Depositary for the Securities of such series or its nominee.

 

“Holder”
means a Person in whose name a Security is registered in the Security Register.

 

“Indenture”
means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument,
and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be part of and govern this instrument
and any such supplemental indenture, respectively. The term “Indenture” also shall include the terms of a particular
series of Securities established as contemplated by Section 3.1.

 

“interest,”
when used with respect to an Original Issue Discount Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.

 

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

 

“Judgment
Currency” has the meaning specified in Section 1.16.

 

“Legal Defeasance”
has the meaning specified in Section 13.2.

 

“mandatory
sinking fund payment” has the meaning specified in Section 12.1.

 

 

 

    	 	4	 

     

    

 

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

 

“Notice of
Default” means a written notice of the kind specified in Section 5.1(e).

 

“Officer’s
Certificate” means, in the case of the Company, a certificate signed by the Chairman of the Board, the Chief Executive
Officer, the Chief Financial Officer, the Chief Operating Officer, the President, any Vice President or any other duly authorized
officer of the Company, or a person duly authorized by any of them, and delivered to the Trustee.

 

“Opinion of
Counsel” means a written opinion of counsel, who may be an employee of or counsel for the Company and who shall be reasonably
acceptable to the Trustee.

 

“optional
sinking fund payment” has the meaning specified in Section 12.1.

 

“Original
Issue Discount Security” means any Security which provides for an amount less than the principal amount thereof to be
due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.2.

 

“Outstanding,”
when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:

 

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

 

(b)       Securities
for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent
(other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying
Agent) for the Holders of such Securities; provided, however, that, if such Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made;

 

(c)       Securities
which have been paid pursuant to Section 3.6 or in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to
the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; and

 

(d)       Securities,
except to the extent provided in Section 13.2 and Section 13.3, with respect to which the Company has effected
Legal Defeasance or Covenant Defeasance as provided in Article Thirteen, which Legal Defeasance or Covenant Defeasance then continues
in effect;

 

 

 

    	 	5	 

     

    

provided, however,
that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, (i) the principal amount of an Original Issue Discount
Security that shall be deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable as
of the date of such determination upon acceleration of the Maturity thereof on such date pursuant to Section 5.2,
(ii) the principal amount of a Security denominated in one or more currencies or currency units other than U.S. dollars shall
be the U.S. dollar equivalent of such currencies or currency units, determined in the manner provided as contemplated by Section 3.1
on the date of original issuance of such Security or by Section 1.15, if not otherwise so provided pursuant to
Section 3.1, of the principal amount (or, in the case of an Original Issue Discount Security, the U.S. dollar equivalent
(as so determined) on the date of original issuance of such Security of the amount determined as provided in clause (i) above)
of such Security, and (iii) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company
or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities
which the Trustee knows to be so owned shall be so disregarded. Securities so owned as described in clause (iii) of the immediately
preceding sentence which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction
of the Trustee the pledgee’s right to act with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such other obligor.

 

“Paying Agent”
means any Person authorized by the Company to pay the principal of and any premium or interest on any Securities on behalf of the
Company.

 

“Periodic
Offering” means an offering of Securities of a series from time to time, the specific terms of which Securities, including,
without limitation, the rate or rates of interest or formula for determining the rate or rates of interest thereon, if any, the
Stated Maturity or Stated Maturities thereof, the original issue date or dates thereof, the redemption provisions, if any, with
respect thereto, and any other terms specified as contemplated by Section 3.1 with respect thereto, are to be determined
by the Company upon the issuance of such Securities.

 

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

 

“Place of
Payment,” when used with respect to the Securities of any series, means, unless otherwise specifically provided for with
respect to such series as contemplated by Section 3.1, the office or agency of the Company in the City of New York
and such other place or places where, subject to the provisions of Section 10.2, the principal of and any premium and
interest on the Securities of that series are payable as contemplated by Section 3.1.

 

“Predecessor
Security” of any particular Security means 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 3.6 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence
the same debt as the mutilated, destroyed, lost or stolen Security.

 

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

 

 

 

    	 	6	 

     

    

“Redemption
Price,” when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant
to this Indenture.

 

“Regular Record
Date” for the interest payable on any Interest Payment Date on the Securities of any series means the date specified
for that purpose as contemplated by Section 3.1.

 

“Required
Currency” has the meaning specified in Section 1.16.

 

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

 

“SEC”
means the Securities and Exchange Commission, as from time to time constituted, created under 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 performing such duties at such time.

 

“Securities”
has the meaning stated in the first recital of this Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.

 

“Security
Register” and “Security Registrar” have the respective meanings specified in Section 3.5.

 

“Significant
Subsidiary” means any Subsidiary that would be a “Significant Subsidiary” of the Company within the meaning
of Rule 1-02 under Regulation S-X promulgated by the SEC.

 

“Special Record
Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.7.

 

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

 

“Subsidiary”
means (a) a corporation more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by the Company
or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries or (b) any partnership or similar business
organization more than 50% of the ownership interests having ordinary voting power of which shall at the time be so owned. For
the purposes of this definition, “voting stock” means capital stock or equity interests which ordinarily have
voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power
by reason of any contingency.

 

 

 

    	 	7	 

     

    

 

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

 

“Trust Indenture
Act” means the Trust Indenture Act of 1939, as amended, as in force at the date as of which this instrument was executed,
except as provided in Section 9.5; provided, however, that if the Trust Indenture Act of 1939 is amended
after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.

 

“U.S. Person”
shall have the meaning assigned to such term in Section 7701(a)(30) of the Code.

 

“U.S. Government
Obligations” means securities which are (a) direct obligations of the United States for the payment of which its full
faith and credit is pledged, or (b) 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,
each of which are not callable or redeemable at the option of the issuer thereof.

 

“Vice President,”
when used with respect to the Company or the Trustee, means any vice president, regardless of whether designated by a number or
a word or words added before or after the title “vice president.”

 

1.2         
Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to
a provision of the Trust Indenture Act, the provision is incorporated by reference in and made a part of this Indenture. The following
Trust Indenture Act terms used in this Indenture have the following meanings:

 

“commission”
means the SEC.

 

“indenture securities”
means the Securities.

 

“indenture security
holder” means a Holder.

 

“indenture to
be qualified” means this Indenture.

 

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

 

“obligor”
on the indenture securities means the Company or any other obligor on the indenture securities.

 

All terms used in this
Indenture that are defined by the Trust Indenture Act, defined by a Trust Indenture Act reference to another statute or defined
by an SEC rule under the Trust Indenture Act have the meanings so assigned to them.

 

 

 

    	 	8	 

     

    

 

1.3         
Compliance Certificates and Opinions. Upon any application or request by the Company
to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officer’s
Certificate stating that all conditions precedent, if any, 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, if any,
have been complied with, except that in the case of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate
or opinion need be furnished except as required under Section 314(c) of the Trust Indenture Act.

 

Every certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture (except for certificates provided
for in Section 10.5) shall include:

 

(a)       a statement that each individual signing such certificate or opinion has read such covenant
or condition and the definitions herein relating thereto;

 

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

 

(c)       a statement that, in the opinion of each such individual, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether such covenant or condition has been complied
with; and

 

(d)       a statement as to whether, in the opinion of each such individual, such condition or covenant
has been complied with.

 

1.4         
Form of Documents Delivered to Trustee. In any case where several matters are required
to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such
Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and
any such Person may certify or give an opinion as to such matters in one or several documents.

 

Any certificate or
opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows or, in the exercise of reasonable care, should know that the certificate
or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any such
certificate or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the information with respect to such factual matters is
in the possession of the Company unless such counsel knows that the certificate or opinion or representations with respect to such
matters are erroneous.

 

Where any Person is
required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments
under this Indenture, they may, but need not, be consolidated and form one instrument.

 

 

 

    	 	9	 

     

    

 

1.5         
Acts of Holders; Record Dates.

 

(a)       Any request, demand, authorization, direction, notice, consent, waiver or other action provided
by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed (either physically or by means of a facsimile or an electronic transmission, provided that such electronic
transmission is transmitted through the facilities of a Depositary) by such Holders in person or by agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are
delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 315 of the Trust Indenture Act) conclusive in favor of the
Trustee and the Company if made in the manner provided in this Section.

 

(b)       The
fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of
such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying
that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a
signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient
proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing
the same, may also be proved in any other manner which the Trustee deems sufficient.

 

(c)       The
ownership, principal amount and serial numbers of Securities held by any Person, and the date of commencement of such Person’s
holding of same, shall be proved by the Security Register.

 

(d)       Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration
of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the
Trustee or the Company in reliance thereon, regardless of whether notation of such action is made upon such Security.

 

(e)       Without
limiting the foregoing, a Holder entitled to give or take any action hereunder with regard to any particular Security may do so
with regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which
may do so pursuant to such appointment with regard to all or any different part of such principal amount.

 

(f)       The Company may set any day as the record date for the purpose of determining the Holders
of Outstanding Securities of any series entitled to give or take any request, demand, authorization, direction, notice, consent,
waiver or other Act provided or permitted by this Indenture to be given or taken by Holders of Securities of such series, but the
Company shall have no obligation to do so. With regard to any record date set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date (or their duly appointed agents), and only such Persons, shall be entitled
to give or take the relevant action, regardless of whether such Holders remain Holders after such record date.

 

 

 

    	 	10	 

     

    

 

1.6         
Notices, Etc., to Trustee and Company.

 

(a)       Any notice or communication by the Company or the Trustee to the others is duly given if in
writing and delivered in Person or mailed by first class mail (registered or certified, return receipt requested), telecopier or
overnight air courier guaranteeing next day delivery, to the others’ address:

 

If to the Company:

Pacific Ethanol, Inc.

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Facsimile: (916) 446-3937

Attention: General Counsel

If to the Trustee:

[Trustee]

_________________

_________________

Facsimile: ________

 

(b)       
The Company or the Trustee, by notice to the others, may designate additional or different
addresses for subsequent notices or communications.

 

(c)        
All notices and communications (other than those sent to Holders) shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; three Business Days after being deposited in the mail,
postage prepaid, if mailed; when receipt acknowledged, if telecopied; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.

 

1.7         
Notice to Holders; Waiver. Where this Indenture provides for notice to Holders of any
event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid, to each Holder affected by such event, at his address as it appears in the Security Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Holders
is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders. Any notice mailed to a Holder in the manner herein prescribed
shall be conclusively deemed to have been received by such Holder, regardless of whether such Holder actually receives such notice.

 

 

 

    	 	11	 

     

    

 

Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 

In case by reason of
the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then
such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose
hereunder.

 

1.8         
Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts
with a provision of the Trust Indenture Act that is required under such Act to be a part of and govern this Indenture, the latter
provision shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act that
may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or excluded, as
the case may be.

 

1.9         
Effect of Headings and Table of Contents. The Article and Section headings herein and
the Table of Contents are for convenience only and shall not affect the construction hereof.

 

1.10        Successors and Assigns. All covenants and agreements in this Indenture by the Company
shall bind its successors and assigns, whether so expressed or not.

 

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

 

1.12        Benefits of Indenture. Nothing in this Indenture or in the Securities express or implied,
shall give to any Person, other than the parties hereto and their successors hereunder and the Holders, any benefit or any legal
or equitable right, remedy or claim under this Indenture.

 

1.13        Governing
Law. THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

 

1.14       
Legal Holidays. In any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this
Indenture or of the Securities (other than a provision of the Securities of any series that specifically states that such provision
shall apply in lieu of this Section 1.14)) payment of interest or principal and any premium need not be made at such
Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force
and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, provided that no interest shall
accrue for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be.

 

 

 

    	 	12	 

     

    

 

1.15       
Securities in a Composite Currency, Currency Unit or Foreign Currency. Unless otherwise
specified in an Officer’s Certificate delivered pursuant to Section 3.1 of this Indenture with respect to a particular
series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage
in aggregate principal amount of Securities of all series or all series affected by a particular action at the time Outstanding
and, at such time, there are Outstanding Securities of any series which are denominated in a coin, currency or currencies other
than Dollars (including, but not limited to, any composite currency, currency units or Foreign Currency), then the principal amount
of Securities of such series which shall be deemed to be Outstanding for the purpose of taking such action shall be that amount
of Dollars that could be obtained for such amount at the Market Exchange Rate. For purposes of this Section 1.15, the
term “Market Exchange Rate” shall mean the noon Dollar buying rate in The City of New York for cable transfers
of such currency or currencies as published by the Federal Reserve Bank of New York, as of the most recent available date. If such
Market Exchange Rate is not so available for any reason with respect to such currency, the Trustee shall use, in its sole discretion
and without liability on its part, such quotation of the Federal Reserve Bank of New York as of the most recent available date,
or quotations or rates of exchange from one or more major banks in The City of New York or in the country of issue of the currency
in question, which for purposes of euros shall be Brussels, Belgium, or such other quotations or rates of exchange as the Trustee
shall deem appropriate. The provisions of this paragraph shall apply in determining the equivalent principal amount in respect
of Securities of a series denominated in a currency other than Dollars in connection with any action taken by Holders of Securities
pursuant to the terms of this Indenture.

 

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

 

1.16       
Payment in Required Currency; Judgment Currency. The Company agrees, to the fullest
extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is
necessary to convert the sum due in respect of the principal of or interest on the Securities of any series (the “Required
Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate
of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City
of New York the Required Currency with the Judgment Currency on the day on which final unappealable judgment is entered, unless
such day is not a Banking Day, then, to the extent permitted by applicable law, the rate of exchange used shall be the rate at
which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with
the Judgment Currency on the Banking Day next preceding the day on which final unappealable judgment is entered and (b) its obligations
under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, or any recovery
pursuant to any judgment (regardless of whether entered in accordance with subclause (a)), in any currency other than the Required
Currency, except to the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount
of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional
cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall
short of the full amount of the Required Currency so expressed to be payable and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture.

 

 

 

    	 	13	 

     

    

 

1.17       
Language of Notices, Etc. Any request, demand, authorization, direction, notice, consent,
waiver or Act required or permitted under this Indenture shall be in the English language, except that any published notice may
be in an official language of the country of publication.

 

1.18       
Incorporators, Shareholders, Officers and Directors of the Company Exempt from Individual
Liability. No recourse under or upon any obligation, covenant or agreement of or contained in this Indenture or of or contained
in any Security or for any claim based thereon or otherwise in respect thereof, or in any Security or because of the creation of
any indebtedness represented thereby, shall be had against any incorporator, stockholder, member, officer, manager or director,
as such, past, present or future, of the Company or any successor Person, either directly or through the Company or any successor
Person, 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 all such liability is hereby expressly waived and released as a condition of, and as a part
of the consideration for, the execution of this Indenture and the issue of the Securities.

 

ARTICLE
Two

SECURITY FORMS

 

2.1         
Forms Generally. The Securities of each series shall be in substantially the form set
forth in this Article Two, or in such other form or forms as shall be established by or pursuant to a Board Resolution or in one
or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends
or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently herewith,
be determined by the officers executing such Securities as evidenced by their execution thereof.

 

The definitive Securities
shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined
by the officers executing such Securities, as evidenced by their execution thereof. If the form of Securities of any series is
established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by
an authorized officer or other authorized person on behalf of the Company and delivered to the Trustee at or prior to the delivery
of the Company Order contemplated by Section 3.3 for the authentication and delivery of such Securities.

 

The forms of Global
Securities of any series shall have such provisions and legends as are customary for Securities of such series in global form,
including without limitation any legend required by the Depositary for the Securities of such series.

 

 

 

    	 	14	 

     

    

 

2.2         
Form of Face of Security. [If the Security is an Original Issue Discount Security,
insert—FOR PURPOSES OF SECTION 1275 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, THE AMOUNT OF THE ORIGINAL
ISSUE DISCOUNT IS , THE ISSUE DATE IS , 20 [AND] [,] THE YIELD TO MATURITY IS [,] [AND THE ORIGINAL ISSUE DISCOUNT FOR THE
SHORT ACCRUAL PERIOD IS AND THE METHOD USED TO DETERMINE THE YIELD THEREFOR IS ]]

 

[Insert any other legend required by
the Code or the regulations thereunder.]

 

[If a Global Security,—insert
legend required by Section 2.4 of the Indenture] [If applicable, insert —UNLESS THIS SECURITY IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

 

PACIFIC ETHANOL, INC.

 

[TITLE OF SECURITY]

 

	No _______________	U.S. $________

  

[CUSIP No. ]

 

PACIFIC ETHANOL, INC., a company duly incorporated
under the laws of the State of Delaware (herein called the “Company,” which term includes any successor or resulting
Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to _______________, or registered
assigns, the principal sum of _______________ United States Dollars on _______________ [If the Security is to bear interest
prior to Maturity, insert—, and to pay interest thereon from _______________ or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, semi-annually on _______________ and _______________ in each year, commencing
_______________, at the rate of _____% per annum, until the principal hereof is paid or made available for payment [if applicable,
insert—, and at the rate of _____% per annum on any overdue principal and premium and on any installment of interest (to
the extent that the payment of such interest shall be legally enforceable)]. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which
shall be the _______________ or _______________ (regardless of whether a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture].

 

 

 

    	 	15	 

     

    

 

[If the Security is not to bear interest
prior to Maturity, insert—The principal of this Security shall not bear interest except in the case of a default in payment
of principal upon acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this Security shall
bear interest at the rate of _____% per annum (to the extent that the payment of such interest shall be legally enforceable), which
shall accrue from the date of such default in payment to the date payment of such principal has been made or duly provided for.
Interest on any overdue principal shall be payable on demand. Any such interest on any overdue principal that is not so paid on
demand shall bear interest at the rate of _____% per annum (to the extent that the payment of such interest shall be legally enforceable),
which shall accrue from the date of such demand for payment to the date payment of such interest has been made or duly provided
for, and such interest shall also be payable on demand.]

 

[If a Global Security, insert—Payment
of the principal of (and premium, if any) and [if applicable, insert—any such] interest on this Security will be made
by transfer of immediately available funds to a bank account in _______________ designated by the Holder in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and private debts [state other
currency].]

 

[If a Definitive Security, insert—Payment
of the principal of (and premium, if any) and [if applicable, insert—any such] interest on this Security will be made
at the office or agency of the Company maintained for that purpose in _______________, in such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public and private debts] [state other currency] [or subject
to any laws or regulations applicable thereto and to the right of the Company (as provided in the Indenture) to rescind the designation
of any such Paying Agent, at the [main] offices of _______________ in _______________, or at such other offices or agencies
as the Company may designate, by [United States Dollar] [state other currency] check drawn on, or transfer to a [United
States Dollar] account maintained by the payee with, a bank in The City of New York (so long as the applicable Paying Agency
has received proper transfer instructions in writing at least _____ days prior to the payment date)] [if applicable, insert—;
provided, however, that payment of interest may be made at the option of the Company by [United States Dollar] [state
other currency] check mailed to the addresses of the Persons entitled thereto as such addresses shall appear in the Security
Register] [or by transfer to a [United States Dollar] [state other currency] account maintained by the payee with a bank
in The City of New York [state other Place of Payment] (so long as the applicable Paying Agent has received proper transfer
instructions in writing by the record date prior to the applicable Interest Payment Date)].]

 

 

 

    	 	16	 

     

    

 

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

 

Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed.

 

	Dated:_________________	PACIFIC ETHANOL, INC.
	 	 
	 	 
	 	By:______________________

 

2.3         
Form of Reverse of Security. This Security is one of a duly authorized issue of senior
securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under
an Indenture, dated as of _______________, 20__ (herein called the “Indenture”), between the Company and U.S.
Bank, National Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement, of
the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. As provided in the
Indenture, the Securities may be issued in one or more series, which different series may be issued in various aggregate principal
amounts, may mature at different times, may bear interest, if any, at different rates, may be subject to different redemption
provisions, if any, may be subject to different sinking, purchase or analogous funds, if any, may be subject to different covenants
and Events of Default and may otherwise vary as in the Indenture provided or permitted. This Security is one of the series designated
on the face hereof [, limited in aggregate principal amount to $_______________].

 

This security is the
general, unsecured, senior obligation of the Company.

 

[If applicable, insert The Securities
of this series are subject to redemption upon not less than _____ days’ notice by mail, [if applicable, insert, (1) on _______________
in any year commencing with the year _____ and ending with the year _____ through operation of the sinking fund for this series
at a Redemption Price equal to 100% of the principal amount, and (2) ] at any time [on or after _______________, 20__],
as a whole or in part, at the election of the Company, at the following Redemption Prices (expressed as percentages of the principal
amount): If redeemed [on or before _______________, _____%, and if redeemed] during the 12-month period beginning _______________
of the years indicated,

 

	
        Year
	 	
        Redemption
        Price
	 	
        Year
	 	
        Redemption
        Price

	 	 	 	 	 	 	 

 

 

 

    	 	17	 

     

    

 

and thereafter at a Redemption Price equal
to _____% of the principal amount, together in the case of any such redemption [if applicable, insert—(whether through
operation of the sinking fund or otherwise)] with accrued interest to the Redemption Date, but interest installments whose
Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant record dates referred to on the face hereof, all as provided in
the Indenture.]

 

[If applicable, insert—The Securities
of this series are subject to redemption upon not less than _____ nor more than _____ days’ notice by mail, (1) on _______________
in any year commencing with the year _____ and ending with the year _____ through operation of the sinking fund for this series
at the Redemption Prices for redemption through operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below, and (2) at anytime [on or after _______________], as a whole or in part, at the election of the
Company, at the Redemption Prices for redemption otherwise than through operation of the sinking fund (expressed as percentages
of the principal amount) set forth in the table below: If redeemed during the 12-month period beginning _______________ of the
years indicated,

 

	
        Year
	 	
        Redemption
        Price for 

Redemption Through 

Operation of the Sinking

 Fund
	 	
        Redemption
        Price for 

Redemption Otherwise Than 

Through Operation of the 

Sinking Fund

	 	 	 	 	 
	 	 	 	 	 

 

and thereafter at a Redemption Price equal
to __% of the principal amount, together in the case of any such redemption (whether through operation of the sinking fund or otherwise)
with accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of business
on the relevant record dates referred to on the face hereof, all as provided in the Indenture.]

 

[If applicable, insert—Notwithstanding
the foregoing, the Company may not, prior to _______________, redeem any Securities of this series as contemplated by [clause (2)
of] the preceding paragraph as a part of, or in anticipation of, any refunding operation by the application, directly or indirectly,
of moneys borrowed having an interest cost to the Company (calculated in accordance with generally accepted financial practice)
of less than _____% per annum.]

 

[If applicable, insert—The sinking
fund for this series provides for the redemption on _______________ in each year beginning with the year _____ and ending with
the year _____ of [not less than] $_______________ [(“mandatory sinking fund”) and not more than $_______________]
aggregate principal amount of Securities of this series. [Securities of this series acquired or redeemed by the Company otherwise
than through [mandatory] sinking fund payments may be credited against subsequent [mandatory] sinking fund payments
otherwise required to be made [If applicable, insert— in the inverse order in which they become due].]

 

 

 

    	 	18	 

     

    

 

[If the Securities are subject to redemption
in part of any kind, insert—In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]

 

[If applicable, insert—The Securities
of this series are not redeemable prior to Stated Maturity.]

 

[If the Security is not an Original
Issue Discount Security, insert—If an Event of Default with respect to Securities of this series shall occur and be continuing,
the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the
Indenture.]

 

[If the Security is an Original Issue
Discount Security, insert—If an Event of Default with respect to Securities of this series shall occur and be continuing,
an amount of principal of the Securities of this series may be declared due and payable in the manner and with the effect provided
in the Indenture. Such amount shall be equal to —insert formula for determining the amount. Upon payment (i) of the amount
of principal so declared due and payable and (ii) of interest on any overdue principal and overdue interest (in each case to the
extent that the payment of such interest shall be legally enforceable), all of the Company’s obligations in respect of the
payment of the principal of and interest, if any, on the Securities of this series shall terminate.]

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each
series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance
by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders
of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
regardless of whether notation of such consent or waiver is made upon this Security.

 

No reference herein
to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of (and premium, if any) and interest on this Security at the times, place(s)
and rate, and in the coin or currency, herein prescribed.

 

[If a Global Security, insert—This
Global Security or portion hereof may not be exchanged for Definitive Securities of this series except in the limited circumstances
provided in the Indenture. The holders of beneficial interests in this Global Security will not be entitled to receive physical
delivery of Definitive Securities except as described in the Indenture and will not be considered the Holders thereof for any purpose
under the Indenture.]

 

 

 

    	 	19	 

     

    

 

[If a Definitive Security, insert—As
provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registerable in
the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in [if
applicable, insert—any place where the principal of and any premium and interest on this Security are payable] [if applicable,
insert—The City of New York [, or, subject to any laws or regulations applicable thereto and to the right of the Company
(limited as provided in the Indenture) to rescind the designation of any such transfer agent, at the [main] offices of _______________
in _______________ or at such other offices or agencies as the Company may designate]], duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated transferee or transferees.]

 

The Securities of this
series are issuable only in registered form without coupons in denominations of U.S. $________ and any integral multiple thereof. As provided
in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

 

No service charge shall
be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

 

Prior to due presentment
of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, regardless of whether this Security be overdue,
and none of the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

No recourse under or
upon any obligation, covenant or agreement of or contained in the Indenture or of or contained in any Security, or for any claim
based thereon or otherwise in respect thereof, or in any Security, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, member, officer, manager or director, as such, past, present or future, of
the Company or of any successor Person, either directly or through the Company or any successor Person, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment, penalty or otherwise; it being expressly understood
that all such liability is hereby expressly waived and released by the acceptance hereof and as a condition of, and as part of
the consideration for, the Securities and the execution of the Indenture.

 

The Indenture provides
that the Company (a) will be discharged from any and all obligations in respect of the Securities (except for certain obligations
described in the Indenture), or (b) need not comply with certain restrictive covenants of the Indenture, in each case if the Company
deposits, in trust, with the Trustee money or U.S. Government Obligations (or a combination thereof) which through the payment
of interest thereon and principal thereof in accordance with their terms will provide money, in an amount sufficient to pay all
the principal of and interest on the Securities, but such money need not be segregated from other funds except to the extent required
by law.

 

 

 

    	 	20	 

     

    

 

Except as otherwise
defined herein, all terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in
the Indenture.

 

[If a Definitive Security, insert as
a separate page—

 

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

 

 

 

 

(Please Print or Typewrite Name
and Address of Assignee)

 

the within instrument of PACIFIC ETHANOL,
INC. and does hereby irrevocably constitute and appoint _______________ Attorney to transfer said instrument on the books of the
within-named Company, with full power of substitution in the premises.

 

Please Insert Social Security or Other
Identifying Number of Assignee:

 

	Dated:_______________	 
	 	(Signature)

 

NOTICE: The signature to this assignment
must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement
or any change whatever.]

 

2.4         
Global Securities. Every Global Security authenticated and delivered hereunder shall
bear a legend in substantially the following form:

 

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

 

EVERY SECURITY AUTHENTICATED AND DELIVERED
UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING,
EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

 

 

    	 	21	 

     

    

 

If Securities of a
series are issuable in whole or in part in the form of one or more Global Securities, as specified as contemplated by Section 3.1,
then, notwithstanding clause (i) of Section 3.1 and the provisions of Section 3.2, any Global Security
shall represent such of the Outstanding Securities of such series as shall be specified therein and may provide that it shall represent
the aggregate amount of Outstanding Securities from time to time endorsed thereon and that the aggregate amount of Outstanding
Securities represented thereby may from time to time be reduced or increased, as the case may be, to reflect exchanges. Any endorsement
of a Global Security to reflect the amount, or any reduction or increase in the amount, of Outstanding Securities represented thereby
shall be made in such manner and upon instructions given by such Person or Persons as shall be specified therein or in a Company
Order. Subject to the provisions of Section 3.3, Section 3.4 and Section 3.5, the Trustee shall
deliver and redeliver any Global Security in the manner and upon instructions given by the Person or Persons specified therein
or in the applicable Company Order. Any instructions by the Company with respect to endorsement or delivery or redelivery of a
Global Security shall be in a Company Order (which need not comply with Section 1.3 and need not be accompanied by
an Opinion of Counsel).

 

The provisions of the
last sentence of Section 3.3 shall apply to any Security represented by a Global Security if such Security was never
issued and sold by the Company and the Company delivers to the Trustee the Global Security together with a Company Order (which
need not comply with Section 1.3 and need not be accompanied by an Opinion of Counsel) with regard to the reduction
or increase, as the case may be, in the principal amount of Securities represented thereby, together with the written statement
contemplated by the last sentence of Section 3.3.

 

2.5         
Form of Trustee’s Certificate of Authentication. The Trustee’s certificate(s)
of authentication shall be in substantially the following form:

 

This is one of the Securities
of the series designated [insert title of applicable series] referred to in the within-mentioned Indenture.

 

	 	 
	 	as Trustee
	 	 
	 	By:____________________________________________
	 	As Authenticating Officer

 

ARTICLE
Three

THE SECURITIES

 

3.1         
Amount Unlimited; Issuable in Series. The aggregate principal amount of Securities
which may be authenticated and delivered under this Indenture is unlimited.

 

The Securities may
be issued in one or more series. There shall be established in or pursuant to a Board Resolution, and set forth, or determined
in the manner provided, in an Officer’s Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series,

 

 

 

    	 	22	 

     

    

 

(a)       the title of the Securities of the series (which shall distinguish the Securities of the series
from all other Securities and which may be part of a series of Securities previously issued);

 

(b)       any limit upon the aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer
of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 3.4, Section 3.5,
Section 3.6, Section 9.6 or Section 11.7 and except for any Securities which, pursuant to Section 3.3,
are deemed never to have been authenticated and delivered hereunder);

 

(c)       the Person to whom any interest on a Security of the series shall be payable, if other than
the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest;

 

(d)       the date or dates on which the principal of the Securities of the series is payable or the
method of determination thereof;

 

(e)       the rate or rates at which the Securities of the series shall bear interest, if any, or the
formula, method or provision pursuant to which such rate or rates are determined, the date or dates from which such interest shall
accrue or the method of determination thereof, the Interest Payment Dates on which such interest shall be payable and the Regular
Record Date for the interest payable on any Interest Payment Date;

 

(f)       the place or places where, subject to the provisions of Section 10.2, the principal
of and any premium and interest on Securities of the series shall be payable, Securities of the series may be surrendered for registration
of transfer, Securities of the series may be surrendered for exchange and notices, and demands to or upon the Company in respect
of the Securities of the series and this Indenture may be served;

 

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

 

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

 

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

 

(j)       whether payment of principal of and premium, if any, and interest, if any, on the Securities
of the series shall be without deduction for taxes, assessments or governmental charges paid by Holders of the series;

 

 

 

    	 	23	 

     

    

 

(k)       if other than the principal amount thereof, the portion of the principal amount of Securities
of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 5.2;

 

(l)       if the amount of payments of principal of and any premium or interest on the Securities of
the series may be determined with reference to an index, the manner in which such amounts shall be determined;

 

(m)       if and as applicable, that the Securities of the series shall be issuable in whole or in part
in the form of one or more Global Securities and, in such case, the Depositary or Depositaries for such Global Security or Global
Securities and any circumstances other than those set forth in Section 3.5 in which any such Global Security may be
transferred to, and registered and exchanged for Securities registered in the name of, a Person other than the Depositary for such
Global Security or a nominee thereof and in which any such transfer may be registered;

 

(n)       any deletions from, modifications of or additions to the Events of Default set forth in Section 5.1
or the covenants of the Company set forth in Article Ten with respect to the Securities of such series;

 

(o)       whether and under what circumstances the Company will pay additional amounts on the Securities
of the series held by a Person who is not a U.S. Person in respect of any tax, assessment or governmental charge withheld or deducted
and, if so, whether the Company will have the option to redeem the Securities of the series rather than pay such additional amounts;

 

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

 

(q)       if the Securities of the series are to be convertible into or exchangeable for any other security
or property of the Company, including, without limitation, securities of another Person held by the Company or its Affiliates and,
if so, the terms thereof;

 

(r)       if other than as provided in Section 13.2 and Section 13.3, the means
of Legal Defeasance or Covenant Defeasance as may be specified for the Securities of the series;

 

(s)       if other than the Trustee, the identity of the initial Security Registrar and any initial
Paying Agent; and

 

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

 

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
the Board Resolution referred to above and (subject to Section 3.3) set forth, or determined in the manner provided,
in the Officer’s Certificate referred to above or in any such indenture supplemental hereto.

 

 

 

    	 	24	 

     

    

 

All Securities of any
one series need not be issued at the same time and, unless otherwise provided, a series may be reopened, without the consent of
the Holders, for increases in the aggregate principal amount of such series of Securities and issuances of additional Securities
of such series or for the establishment of additional terms with respect to the Securities of such series.

 

If any of the terms
of the series are established by action taken by or pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by an authorized officer or other authorized person on behalf of the Company and delivered to the Trustee at
or prior to the delivery of the Officer’s Certificate setting forth, or providing the manner for determining, the terms of
the series.

 

With respect to Securities
of a series subject to a Periodic Offering, such Board Resolution or Officer’s Certificate may provide general terms for
Securities of such series and provide either that the specific terms of particular Securities of such series shall be specified
in a Company Order or that such terms shall be determined by the Company or one or more agents thereof designated in an Officer’s
Certificate, in accordance with a Company Order.

 

3.2         
Denominations. The Securities of each series shall be issuable in registered form without
coupons in such denominations as shall be specified as contemplated by Section 3.1. In the absence of any such provisions
with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $1,000 and any
integral multiple thereof.

 

3.3         
Execution, Authentication, Delivery and Dating. The Securities shall be executed on
behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officer or
any of its Vice Presidents and need not be attested. The signature of any of these officers on the Securities may be manual or
facsimile.

 

Securities bearing
the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery
of such Securities or did not hold such offices at the date of such Securities.

 

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 a Company Order for the authentication and delivery of such Securities,
and the Trustee in accordance with the Company Order shall authenticate and deliver such Securities; provided, however, that in
the case of Securities offered in a Periodic Offering, the Trustee shall authenticate and deliver such Securities from time to
time in accordance with such other procedures (including, without limitation, the receipt by the Trustee of oral or electronic
instructions from the Company or its duly authorized agents, thereafter promptly confirmed in writing) acceptable to the Trustee
as may be specified by or pursuant to a Company Order delivered to the Trustee prior to the time of the first authentication of
Securities of such series. If the forms or terms of the Securities of the series have been established in or pursuant to one or
more Board Resolutions as permitted by Section 2.1 and Section 3.1, in authenticating such Securities,
and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled
to receive such documents as it may reasonably request. The Trustee shall also be entitled to receive, and (subject to Section 6.1)
shall be fully protected in relying upon, an Opinion of Counsel stating,

 

 

 

    	 	25	 

     

    

 

(a)       if the form or forms of such Securities has been established in or pursuant to a Board Resolution
as permitted by Section 2.1, that each such form has been established in conformity with the provisions of this Indenture;

 

(b)       if the terms of such Securities have been, or in the case of Securities of a series offered
in a Periodic Offering will be, established in or pursuant to a Board Resolution as permitted by Section 3.1, that
such terms have been, or in the case of Securities of a series offered in a Periodic Offering will be, established in conformity
with the provisions of this Indenture, subject, in the case of Securities of a series offered in a Periodic Offering, to any conditions
specified in such Opinion of Counsel; and

 

(c)       that such Securities when authenticated and delivered by the Trustee and issued by the Company
in the manner and subject to any conditions and assumptions specified in such Opinion of Counsel, will constitute valid and legally
binding obligations of the Company enforceable in accordance with their terms, subject to the following limitations: (i) bankruptcy,
insolvency, moratorium, reorganization, liquidation, fraudulent conveyance or transfer and other similar laws of general applicability
relating to or affecting the enforcement of creditors’ rights, or to general equity principles, (ii) the availability of
equitable remedies being subject to the discretion of the court to which application therefor is made; and (iii) such other usual
and customary matters as shall be specified in such Opinion of Counsel.

 

If such form or forms
or terms have been so established, 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 under the Securities and this Indenture
or otherwise in a manner which is not reasonably acceptable to the Trustee.

 

Notwithstanding the
provisions of Section 3.1 and of the preceding paragraph, if all Securities of a series are not to be originally issued
at one time, it shall not be necessary to deliver the Officer’s Certificate otherwise required pursuant to Section 3.1
or the Company Order and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the time of
authentication of each Security of such series if such documents are delivered at or prior to the authentication upon original
issuance of the first Security of such series to be issued.

 

With respect to Securities
of a series offered in a Periodic Offering, the Trustee may rely, as to the authorization by the Company of any of such Securities,
on the form or forms and terms thereof and the legality, validity, binding effect and enforceability thereof, upon the Opinion
of Counsel and the other documents delivered pursuant to Section 2.1 and Section 3.1 and this Section,
as applicable, in connection with the first authentication of Securities of such series.

 

 

 

    	 	26	 

     

    

 

Each Security shall
be dated the date of its authentication.

 

No Security shall be
entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature of an authorized
officer, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the foregoing, if
any Security shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section 3.9 for all purposes of this Indenture
such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits
of this Indenture.

 

3.4         
Temporary Securities. Pending the preparation of Definitive Securities of any series,
the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the
Definitive Securities in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities.

 

If temporary Securities
of any series are issued, the Company will cause Definitive Securities of that series to be prepared without unreasonable delay.
After the preparation of Definitive Securities of such series, the temporary Securities of such series shall be exchangeable for
Definitive Securities of such series upon surrender of the temporary Securities of such series at the office or agency of the Company
in a Place of Payment for that series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal
amount of Definitive Securities of the same series and tenor of authorized denominations. Until so exchanged the temporary Securities
of any series shall in all respects be entitled to the same benefits under this Indenture as Definitive Securities of such series.

 

3.5         
Registration, Registration of Transfer and Exchange. The Company shall cause to be
kept at the office or agency of the Company in the Borough of Manhattan, the City of New York or in any other office or agency
of the Company in a Place of Payment required by Section 10.2 a register (the register maintained in such office being
herein sometimes referred to as the “Security Register”) in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration of Securities and of transfers of Securities. The Trustee is hereby
appointed as the initial “Security Registrar” for the purpose of registering Securities and transfers of Securities
as herein provided, and its corporate trust office in New York City, which, at the date hereof, is located at [_____________________],
New York, New York [_____], is the initial office or agency in the Borough of Manhattan where the Securities Register will be maintained.
The Company may at any time replace such Security Registrar, change such office or agency or act as its own Security Registrar.
The Company will give prompt written notice to the Trustee of any change of the Security Registrar or of the location of such office
or agency.

 

 

 

    	 	27	 

     

    

 

Upon surrender for
registration of transfer of any Security of any series at the office or agency maintained pursuant to Section 10.2
for such purpose, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Securities of the same series and tenor, of any authorized denominations and of a like aggregate
principal amount.

 

At the option of the
Holder, Securities of any series (except a Global Security) may be exchanged for other Securities of the same series and tenor,
of any authorized denominations and of a like aggregate principal amount, upon surrender of the Securities to be exchanged at such
office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute and the Trustee shall authenticate
and deliver the Securities, which the Holder making the exchange is entitled to receive.

 

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

 

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

 

No service charge shall
be made for any registration of transfer or exchange of Securities, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities,
other than exchanges pursuant to Section 3.4, Section 9.6 or Section 11.7 not involving any
transfer.

 

The Company shall not
be required (a) to issue, register the transfer of or exchange Securities of any series during a period beginning at, the opening
of business 15 days before the day of the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 11.3 and ending at the close of business on the day of such mailing, or (b) to register the transfer
of or exchange any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being
redeemed in part.

 

Notwithstanding any
other provisions of this Indenture and except as otherwise specified with respect to any particular series of Securities as contemplated
by Section 3.1, a Global Security representing all or a portion of the Securities of a series may not be transferred,
except as a whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to such
Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series
or a nominee of such successor Depositary. Every Security authenticated and delivered upon registration of, transfer of, or in
exchange for or in lieu of, a Global Security shall be a Global Security except as provided in the two paragraphs immediately following.

 

 

 

    	 	28	 

     

    

 

If at any time the
Depositary for any Securities of a series represented by one or more Global Securities notifies the Company that it is unwilling
or unable to continue as Depositary for such Securities or if at any time the Depositary for such Securities shall no longer be
eligible to continue as Depositary under Section 3.1 or ceases to be a clearing agency registered under the Exchange
Act, the Company shall appoint a successor Depositary with respect to such Securities. If a successor Depositary for such Securities
is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, the
Company’s election pursuant to Section 3.1 that such Securities be represented by one or more Global Securities
shall no longer be effective and the Company will execute and the Trustee, upon receipt of a Company Order for the authentication
and delivery of Definitive Securities of such series, will authenticate and deliver, Securities of such series in definitive registered
form without coupons, in any authorized denominations, in an aggregate principal amount equal to the principal amount of the Global
Security or Securities representing such Securities in exchange for such Global Security or Securities registered in the names
of such Persons as the Depositary shall direct.

 

The Company may at
any time and in its sole discretion determine that the Securities of any series issued in the form of one or more Global Securities
shall no longer be represented by a Global Security or Securities. In such event, the Company will execute and the Trustee, upon
receipt of a Company Order for the authentication and delivery of the Definitive Securities of such series, will authenticate and
deliver, Securities of such series in definitive registered form without coupons, in any authorized denominations, in an aggregate
principal amount equal to the principal amount of the Global Security or Securities representing such Securities in exchange for
such Global Security or Securities registered in the names of such Persons as the Depositary shall direct.

 

If specified by the
Company pursuant to Section 3.1 with respect to Securities represented by a Global Security, the Depositary for such
Global Security may surrender such Global Security in exchange in whole or in part for Securities of the same series and tenor
in definitive registered form on such terms as are acceptable to the Company, the Trustee and such Depositary. Thereupon, the Company
shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of Securities in definitive
registered form, shall authenticate and deliver, without service charge,

 

(a)       to the Person specified by such Depositary, a new Security or Securities of the same series
and tenor, of any authorized denominations as requested by such Person, in an aggregate principal amount equal to and in exchange
for such Person’s beneficial interest in the Global Security; and

 

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

 

Every Person who takes
or holds any beneficial interest in a Global Security agrees that:

 

(a)       the
Company and the Trustee may deal with the Depositary as sole owner of the Global Security and as the authorized representative
of such Person;

 

 

 

    	 	29	 

     

    

 

(b)       such
Person’s rights in the Global Security shall be exercised only through the Depositary and shall be limited to those established
by law and agreement between such Person and the Depositary and/or direct and indirect participants of the Depositary;

 

(c)       the
Depositary and its participants make book-entry transfers of beneficial ownership among, and receive and transmit distributions
of principal and interest on the Global Securities to, such Persons in accordance with their own procedures; and

 

(d)       none
of the Company, the Trustee, nor any agent of any of them will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests of a Global Security or for maintaining, supervising
or reviewing any records relating to such beneficial ownership interests.

 

3.6         
Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is surrendered
to the Trustee, together with, in proper cases, such security or indemnity as may be required by the Company or the Trustee to
save each of them and any agent of any of them harmless, the Company shall execute and the Trustee shall authenticate and deliver
in exchange therefor a new Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

 

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

 

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

 

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

 

Every new Security
of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company regardless of whether the destroyed, lost or stolen Security shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities
of that series duly issued hereunder.

 

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

 

 

 

    	 	30	 

     

    

 

3.7         
Payment of Interest; Interest Rights Preserved. Except as otherwise provided as contemplated
by Section 3.1 with respect to any series of Securities, interest on any Security which is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest.

 

Any interest on any
Security of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein
called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on the relevant Regular Record
Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case,
as provided in clause (a) or (b) below:

 

(a)       The Company may elect to make payment of any Defaulted Interest to the Persons in whose names
the Securities of such series (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 Security of such series 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 be not more than 15 days and not 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 Holder
of Securities of such series at his address as it appears in the Security Register, 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 so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the
following clause (b).

 

(b)       The Company may make payment of any Defaulted Interest on the Securities of any series 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, 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 delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any
other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security.

 

 

 

    	 	31	 

     

    

 

3.8         
Persons Deemed Owners. Except as otherwise provided as contemplated by Section 3.1
with respect to any series of Securities, prior to due presentment of a Security for registration of transfer, the Company, the
Trustee and any agent thereof may treat the Person in whose name such Security is registered as the owner of such Security for
the purpose of receiving payment of principal of and any premium and (subject to Section 3.5 and Section 3.7)
any interest on such Security and for all other purposes whatsoever, regardless of whether such Security be overdue, and none of
the Company, the Trustee nor any agent of any of them shall be affected by notice to the contrary.

 

No holder of any beneficial
interest in any Global Security held on its behalf by a Depositary shall have any rights under this Indenture with respect to such
Global Security, and such Depositary may be treated by the Company, the Trustee and any agent of thereof as the owner of such Global
Security for all purposes whatsoever.

 

3.9         
Cancellation. All Securities surrendered for payment, redemption, registration of transfer
or exchange or for credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered
to the Trustee and shall be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities previously authenticated hereunder
which the Company has not issued and sold, and all Securities so delivered shall be promptly canceled by the Trustee. No Securities
shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted
by this Indenture. All canceled Securities held by the Trustee shall be disposed of in accordance with its customary practices,
and the Trustee shall thereafter deliver to the Company a certificate with respect to such disposition from time to time upon written
request.

 

3.10         
Computation of Interest. Except as otherwise specified as contemplated by Section 3.1
for Securities of any series, interest on the Securities of each series shall be computed on the basis of a year of twelve 30-day
months.

 

3.11         
CUSIP or CINS Numbers. The Company in issuing the Securities may use “CUSIP”
or “CINS” numbers (if then generally in use, and in addition to the other identification numbers printed on the Securities),
and, if so, the Trustee shall use “CUSIP” or “CINS” numbers in notices of redemption as a convenience to
Holders; provided, however, that any such notice may state that no representation is made as to the correctness of such “CUSIP”
or “CINS” numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance
may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such “CUSIP” or “CINS” numbers.

 

ARTICLE
Four

SATISFACTION AND DISCHARGE

 

4.1         
Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further
effect and will be discharged with respect to the Securities of any series (except as to any surviving rights of registration of
transfer or exchange of Securities and certain rights of the Trustee, in each case, herein expressly provided for), and the Trustee,
upon Company Request and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge
of this Indenture with respect to such Securities, when:

 

 

 

    	 	32	 

     

    

 

(a)        
either

 

(i)       all such Securities theretofore authenticated and delivered (other than (A) such Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 3.6, and (B)
such Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company
and thereafter repaid to the Company or discharged from such trust, as provided in Section 10.3) have been delivered
to the Trustee for cancellation; or

 

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

 

(A)       have
become due and payable, or

 

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

 

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

 

and the Company, in the case of (A), (B)
or (C) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose an amount sufficient
to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for
principal (and premium, if any) and interest to the date of such deposit (in the case of Securities which have become due and payable)
or to the Stated Maturity or Redemption Date, as the case may be, together with instructions from the Company irrevocably directing
the Trustee to apply such funds to the payment thereof at maturity or redemption, as the case may be;

 

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

 

(c)       the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, which, taken together, state that all conditions precedent herein provided for relating to the satisfaction and discharge
of this Indenture with respect to such Securities have been complied with.

 

Notwithstanding the satisfaction and discharge
of this Indenture with respect to the Securities of any series, (x) the obligations of the Company to the Trustee under Section 6.7,
the obligations of the Trustee to any Authenticating Agent under Section 6.14 and the right of the Trustee to resign
under Section 6.10 shall survive, and (y) if money shall have been deposited with the Trustee pursuant to clause (a)
of this Section, the obligations of the Company and the Trustee under Section 4.2, Section 6.6 and Section 10.2
and the last paragraph of Section 10.3 shall survive.

 

 

 

    	 	33	 

     

    

 

4.2         
Application of Trust Money. Subject to the provisions of the last paragraph of Section 10.3,
all money deposited with the Trustee pursuant to Section 4.1 shall be held in trust and applied by it, in accordance
with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including
the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal and
any premium and interest for whose payment such money has been deposited with the Trustee.

 

ARTICLE
Five

REMEDIES

 

5.1         
Events of Default. “Event of Default,” wherever used herein with
respect to Securities of any series, means any one of the following events (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court
or any order, rule or regulation of any administrative or governmental body):

 

(a)       default in the payment of any interest upon any Security of that series when it becomes due
and payable, and continuance of such default for a period of 30 days; or

 

(b)       default in the payment of the principal of (or premium, if any, on) any Security of that series
at its Maturity; or

 

(c)       default in the deposit of any sinking fund payment when due; or

 

(d)       default in the performance, or breach, of the covenant set forth in Section 8.1;
or

 

(e)       default in the performance, or breach, of any covenant in this Indenture (other than the covenant
in Section 8.1 or any other covenant a default in whose performance or whose breach is elsewhere in this Section specifically
dealt with or which has expressly been included in this Indenture solely for the benefit of series of Securities other than that
series), and continuance of such default or breach for a period of 60 days after there has been given, by registered or certified
mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating
that such notice is a “Notice of Default” hereunder; or

 

(f)       the Company or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy
Law (i) commences a voluntary case or proceeding, (ii) consents to the entry of any order for relief against it in an involuntary
case or proceeding, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property, (iv)
makes a general assignment for the benefit of its creditors, (v) consents to or acquiesces in the institution of a bankruptcy or
an insolvency proceeding against it, (vi) takes any corporate action to authorize or effect any of the foregoing, or (vii) takes
any comparable action under any foreign laws relating to insolvency; or

 

 

 

    	 	34	 

     

    

 

(g)       a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that
(i) is for relief against the Company or any Significant Subsidiary in an involuntary case, (ii) appoints a Custodian of the Company
or any Significant Subsidiary for all or substantially all of its property, or (iii) orders the liquidation or winding up of the
Company or any Significant Subsidiary; and the order or decree remains unstayed and in effect for 30 consecutive days; or

 

(h)       any other Event of Default provided with respect to Securities of that series in accordance
with Section 3.1.

 

5.2         
Acceleration of Maturity; Rescission and Annulment. If an Event of Default with respect
to Securities of any series at the time Outstanding occurs and is continuing, then in every such case the Trustee or the Holders
of at least 25% in aggregate principal amount of the Outstanding Securities of that series may declare the principal amount (or,
if the Securities of that series are Original Issue Discount Securities, such portion of the principal amount as may be specified
in the terms of that series), together with any accrued and unpaid interest thereon, of all of the Securities of that series to
be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such
declaration such principal amount (or specified amount), together with any accrued and unpaid interest thereon, shall become immediately
due and payable. Notwithstanding the foregoing, if an Event of Default specified in clause (f) or (g) of Section 5.1
occurs, the Securities of any series at the time Outstanding shall be due and payable immediately without further action or notice.

 

At any time after such
a declaration of acceleration with respect to Securities of any series has been made and before a judgment or decree for payment
of the money due has been obtained by the Trustee as hereinafter in this Article Five provided, the Holders of a majority in principal
amount of the Outstanding Securities of that series, by written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if:

 

(a)       the Company has paid or deposited with the Trustee a sum sufficient to pay:

 

(i)       all overdue interest on all Securities of that series,

 

(ii)       the principal of (and premium, if any, on) any Securities of that series which have become
due otherwise than by such declaration of acceleration and any interest thereon at the rate or rates prescribed therefor in such
Securities,

 

(iii)       to the extent that payment of such interest is lawful, interest upon overdue interest at the
rate or rates prescribed therefor in such Securities, and

 

 

 

    	 	35	 

     

    

 

(iv)       all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel; and

 

(b)       
all Events of Default with respect to Securities of that series, other than the non-payment
of the principal of Securities of that series which have become due solely by such declaration of acceleration, have been cured
or waived as provided in Section 5.13.

 

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

 

5.3         
Collection of Indebtedness and Suits for Enforcement by Trustee. The Company covenants
that if:

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

    	 	36	 

     

    

 

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

 

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

 

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder
to make such payments to the Trustee and, if the Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section 6.7.

 

No provision of this
Indenture shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan
of reorganization, compromise, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof
or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding; provided, however, that the Trustee
may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member of a creditors’
or other similar committee.

 

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

 

5.6         
Application of Money Collected. Any money collected by the Trustee pursuant to this
Article Five shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution
of such money on account of principal or any premium or interest, upon presentation of the Securities and the notation thereon
of the payment if only partially paid and upon surrender thereof if fully paid:

 

FIRST: To the payment
of all amounts due the Trustee under Section 6.7;

 

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

 

 

 

    	 	37	 

     

    

 

THIRD: The balance, if
any, to the Company.

 

5.7         
Limitation on Suits. No Holder of any Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless:

 

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

 

(b)       the Holders of not less than 25% in principal amount of the Outstanding Securities of that
series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name
as Trustee hereunder;

 

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

 

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

 

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

 

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

 

5.8         
Unconditional Right of Holders to Receive Principal, Premium and Interest. Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and any premium and (subject to Section 3.5 and Section 3.7) interest
on such Security on the Stated Maturity or Maturities expressed in such Security (or, in the case of redemption, on the Redemption
Date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent
of such Holder.

 

5.9         
Restoration of Rights and Remedies. If the Trustee or any Holder has instituted any
proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason,
or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in
such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had
been instituted.

 

 

 

    	 	38	 

     

    

 

5.10         
Rights and Remedies Cumulative. Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.6, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder,
or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

5.11         
Delay or Omission Not Waiver. To fullest extent permitted by applicable law, no delay
or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right
and remedy given by this Article Five or by law to the Trustee or to the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

5.12         
Control by Holders. The Holders of not less than a majority in principal amount of
the Outstanding Securities of any series shall have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities
of such series; provided, however, that:

 

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

 

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

 

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

 

5.13         
Waiver of Past Defaults. By written notice to the Company and the Trustee, the Holders
of not less than a majority in principal amount of the Outstanding Securities of any series may on behalf of the Holders of all
the Securities of such series waive any past default hereunder with respect to such series and its consequences, except:

 

(a)       a continuing default in the payment of the principal of or any premium or interest on any
Security of such series, or

 

(b)       a default in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such series affected.

 

Upon any such waiver, such default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture,
but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

 

 

 

    	 	39	 

     

    

 

5.14         
Undertaking for Costs. All parties to this Indenture agree, and each Holder of any
Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered
or omitted by it as Trustee, the filing by any party litigant, other than the Trustee, in such suit of an undertaking to pay the
costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section 5.14 shall not apply to any suit instituted by the Company, to any
suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10%
in principal amount of the Outstanding Securities of any series, or to any suit instituted by any Holder for the enforcement of
the payment of the principal of (or premium, if any) or interest on any Security on or after the Stated Maturity or Maturities
expressed in such Security (or, in the case of redemption, on or after the Redemption Date).

 

5.15         
Waiver of Stay or Extension Laws. The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance
of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been enacted.

 

ARTICLE
Six

THE TRUSTEE

 

6.1         
Certain Duties and Responsibilities.

 

(a)       Except during the continuance of an Event of Default,

 

(i)       the Trustee undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture and as are provided by the Trust Indenture Act, and no implied covenants or obligations shall be read into
this Indenture against the Trustee; and

 

(ii)         in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth
of the statements and the correctness of the opinions expressed therein, upon 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 they conform to the requirements of this Indenture.

 

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

 

 

 

    	 	40	 

     

    

 

(c)       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

 

(i)       this Subsection shall not be construed to limit the effect of Subsection (a) of this Section;

 

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

 

(iii)       the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the direction of the Holders of a majority in principal amount of the Outstanding Securities
of any series, given pursuant to Section 5.12, relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with
respect to the Securities of such series; and

 

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

 

(d)       Regardless of whether 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.

 

6.2         
Notice of Defaults. Within 90 days after the occurrence of any Default hereunder with
respect to the Securities of any series, the Trustee shall transmit by mail to all Holders of Securities of such series, as their
names and addresses appear in the Security Register, notice of such Default hereunder known to the Trustee, unless such Default
shall have been cured or waived; provided, however, that, except in the case of a Default in the payment of the principal
of or any premium or interest on any Security of such series or in the payment of any sinking fund installment with respect to
Securities of such series, the Trustee may withhold from Holders of Securities notice of any continuing Default or Event of Default
if the Trustee in good faith determines that the withholding of such notice is in the interest of the Holders of Securities of
such series; and, provided, further, that in the case of any Default of the character specified in Section 5.1(c)
with respect to Securities of such series, no such notice to Holders shall be given until at least 90 days after the occurrence
thereof and that in the case of any Default of the character specified in Section 5.1(e) with respect to Securities
of such series, no such notice to Holders shall be given until at least 180 days after the occurrence thereof.

 

6.3         
Certain Rights of Trustee. Subject to the provisions of Section 6.1:

 

 

 

    	 	41	 

     

    

 

(a)        the Trustee may conclusively rely and shall be fully protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed
or presented by the proper party or parties;

 

(b)       
any request or direction of the Company mentioned herein shall be sufficiently evidenced by
a Company Request or Company Order (other than delivery of any Security to the Trustee for authentication and delivery pursuant
to Section 3.3, which shall be sufficiently evidenced as provided therein) and any resolution of the Board of Directors
may be sufficiently evidenced by a Board Resolution;

 

(c)        whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) shall be entitled to receive and may, in the absence of bad faith on its part, rely upon an
Officer’s Certificate;

 

(d)       
the Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel
shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon;

 

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

 

(f)        the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney;

 

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

 

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

 

 

 

    	 	42	 

     

    

 

(i)        the Trustee shall be entitled to the rights and protections afforded to the Trustee pursuant
to this Article Six in acting as a Paying Agent or Security Registrar hereunder; and

 

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

 

6.4         
Not Responsible for Recitals or Issuance of Securities. The recitals contained herein
and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company
and the Trustee or any Authenticating Agent assumes no responsibility for their correctness. Neither the Trustee nor any Authenticating
Agent makes any representations as to the validity or sufficiency of this Indenture or of the Securities. The Trustee or any Authenticating
Agent shall not be accountable for the use or application by the Company of Securities or the proceeds thereof.

 

6.5         
May Hold Securities. The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company in its individual or any other capacity, may become the owner or pledgee of Securities
and, subject to Sections 310(b) and 311 of the Trust Indenture Act and Section 6.8, Section 6.9
and Section 6.13, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Authenticating
Agent, Paying Agent, Security Registrar or such other agent.

 

6.6         
Money Held in Trust. Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received
by it hereunder except as otherwise agreed in writing with the Company.

 

6.7         
Compensation and Reimbursement. The Company agrees:

 

(a)       to pay to the Trustee from time to time reasonable compensation for all services rendered
by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of
an express trust);

 

(b)       except as otherwise expressly provided herein, to reimburse the Trustee upon its request for
all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence or bad faith; and

 

(c)       to indemnify each of the Trustee and its officers, directors, agents and employees for, and
to hold it harmless against, any loss, liability or expense incurred without negligence or willful misconduct on its part, arising
out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the 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.

 

 

 

    	 	43	 

     

    

 

As security for the
performance of the obligations of the Company under this Section the Trustee shall have a lien prior to the Securities upon all
property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of (and premium,
if any) or interest on particular Securities.

 

Without limiting any
rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 5.1(f) or Section 5.1(g), the expenses (including the reasonable
charges and expenses of its counsel) and the compensation for the services of the Trustee are intended to constitute expenses of
administration under any applicable Bankruptcy Law.

 

The provisions of this
Section 6.7 shall survive the satisfaction and discharge of this Indenture and the Legal Defeasance of the Securities.

 

6.8         
Disqualification; Conflicting Interests. Reference is made to Section 310(b)
of the Trust Indenture Act. There shall be excluded from the operation of Section 310(b)(1) of the Trust Indenture
Act this Indenture with respect to the Securities of more than one series.

 

6.9         
Corporate Trustee Required; Eligibility. There shall at all times be a Trustee hereunder
which shall be a corporation organized and doing business under the laws of the United States of America, any State thereof or
the District of Columbia, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus
required by the Trust Indenture Act, subject to supervision or examination by Federal or State authority. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements of said 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 Trustee shall not be an obligor upon the Securities
or an Affiliate thereof. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section,
it shall resign immediately in the manner and with the effect hereinafter specified in this Article Six.

 

6.10         
Resignation and Removal; Appointment of Successor.

 

(a)       No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant
to this Article shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable
requirements of Section 6.11.

 

(b)       The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor Trustee required by Section 6.11
shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee
may petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

 

 

 

    	 	44	 

     

    

 

(c)        The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series, delivered to the Trustee and to
the Company.

 

(d)       
If at any time:

 

(i)       
the Trustee shall fail to comply with Section 310(b) of the Trust Indenture Act
after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months,
or

 

(ii)        the Trustee shall cease to be eligible under Section 6.9 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

 

(iii)       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, (A) the Company
by a Board Resolution may remove the Trustee with respect to all Securities, or (B) subject to Section 5.14, any Holder
who has been a bona fide Holder of a Security 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 with respect to all Securities and the appointment
of a successor Trustee or Trustees.

 

(e)        
If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Securities of one or more series, the Company, by a Board Resolution,
shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at
any time there shall be only one Trustee with respect to the Securities of any particular series) and shall comply with the applicable
requirements of Section 6.11. If, within one year after such resignation, removal or incapability, or the occurrence
of such vacancy, a successor Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a
majority in principal amount of the Outstanding Securities of such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements
of Section 6.11, become the successor Trustee with respect to the Securities of such series and to that extent supersede
the successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and accepted appointment in the manner required by Section 6.11, any
Holder who has been a bona fide Holder of a Security of such series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

 

 

 

    	 	45	 

     

    

 

(f)        
The Company shall give notice of each resignation and each removal of the Trustee with respect
to the Securities of any series and each appointment of a successor Trustee with respect to the Securities of any series to all
Holders of Securities of such series in the manner provided in Section 1.7. Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office.

 

6.11         
Acceptance of Appointment by Successor.

 

(a)       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 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.

 

(b)       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 (i) 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, (ii) if the retiring Trustee is not retiring with
respect to all Securities, 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 (iii) shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of
the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such Trustee; 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 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 all 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.

 

 

 

    	 	46	 

     

    

 

(c)       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.

 

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

 

6.12         
Merger, Conversion, Consolidation or 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 the corporate
trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified
and eligible under this Article Six, without the execution or filing of any paper or any further act on the part of any of the
parties hereto. 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.

 

6.13         
Preferential Collection of Claims Against Company. Reference is made to Section 311
of the Trust Indenture Act. For purposes of Section 311(b) of the Trust Indenture Act,

 

(a)       the term “cash transaction” means any transaction in which full payment
for goods or securities sold is made within seven days after delivery of the goods or securities in currency or in checks or other
orders drawn upon banks or bankers and payable upon demand;

 

(b)       the term “self-liquidating paper” means any draft, bill of exchange, acceptance
or obligation which is made, drawn, negotiated or incurred by the Company for the purpose of financing the purchase, processing,
manufacturing, shipment, storage or sale of goods, wares or merchandise and which is secured by documents evidencing title to,
possession of, or a lien upon, the goods, wares or merchandise or the receivables or proceeds arising from the sale of the goods,
wares or merchandise previously constituting the security, provided the security is received by the Trustee simultaneously with
the creation of the creditor relationship with the Company arising from the making, drawing, negotiating or incurring of the draft,
bill of exchange, acceptance or obligation.

 

6.14         
Appointment of Authenticating Agent. The Trustee may appoint an Authenticating Agent
or Agents with respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon exchange, registration of transfer or partial redemption thereof or pursuant to Section 3.6,
and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes
as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery of
Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication
and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the
Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be a corporation
organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject
to supervision or examination by Federal or State authority. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section,
the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance
with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified
in this Section.

 

 

 

    	 	47	 

     

    

 

Any corporation into
which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from
any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to all
or substantially all of the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating
Agent, provided such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or
any further act on the part of the Trustee or the Authenticating Agent.

 

An Authenticating Agent
may resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable
to the Company and shall mail written notice of such appointment by first-class mail, postage prepaid, to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve, as their names and addresses appear in the Security Register.
Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers
and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating
Agent shall be appointed unless eligible under the provisions of this Section.

 

Except with respect
to an Authenticating Agent appointed at the request of the Company, the Trustee agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section 6.14, and the Trustee shall be entitled to
be reimbursed by the Company for such payments, subject to the provisions of Section 6.7.

 

 

 

    	 	48	 

     

    

 

If an appointment with
respect to one or more series is made pursuant to this Section 6.14, the Securities of such series may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an alternate certificate of authentication in the following
form:

 

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

 

	 	As Trustee
	 	 
	 	 
	 	By:_________________________
	 	As Authenticating Agent
	 	 
	 	 
	 	By:___________________________
	 	As Authenticating Officer

 

ARTICLE
Seven

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

7.1         
Company to Furnish Trustee Names and Addresses of Holders. The Company will furnish
or cause to be furnished to the Trustee:

 

(a)       semi-annually, not more than 15 days after each Regular Record Date for a series of Securities,
a list for such series of Securities, in such form as the Trustee may reasonably require, of the names and addresses of the Holders
of Securities of such series as of such Regular Record Date, 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, that if and so long as the Trustee shall be the Security Registrar, no such
list need be furnished with respect to such series of Securities.

 

7.2         
Preservation of Information; Communications to Holders.

 

(a)       The Trustee shall preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders contained in the most recent list furnished to the Trustee as provided in Section 7.1 and the
names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list
furnished to it as provided in Section 7.1 upon receipt of a new list so furnished.

 

(b)       If three or more Holders (herein referred to as “applicants”) apply in
writing to the Trustee, and furnish to the Trustee reasonable proof that each such applicant has owned a Security for a period
of at least six months preceding the date of such application, and such application states that the applicants desire to communicate
with other Holders with respect to their rights under this Indenture or under the Securities and is accompanied by a copy of the
form of proxy or other communication which such applicants propose to transmit, then the Trustee shall, within five business days
after the receipt of such application, at its election, either

 

 

 

    	 	49	 

     

    

 

(i)       afford such applicants access to the information preserved at the time by the Trustee in accordance
with Section 7.2(a), or

 

(ii)      inform such applicants as to the approximate number of Holders whose names and addresses appear
in the information preserved at the time by the Trustee in accordance with Section 7.2(a), and as to the approximate
cost of mailing to such Holders the form of proxy or other communication, if any, specified in such application.

 

If the Trustee shall
elect not to afford such applicants access to such information, the Trustee shall, upon the written request of such applicants,
mail to each Holder whose name and address appear in the information preserved at the time by the Trustee in accordance with Section 7.2(a)
a copy of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender
to the Trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of mailing,
unless within five days after such tender the Trustee shall mail to such applicants and file with the SEC, together with a copy
of the material to be mailed, a written statement to the effect that, in the opinion of the Trustee, such mailing would be contrary
to the best interest of the Holders or would be in violation of applicable law. Such written statement shall specify the basis
of such opinion. If the SEC, after opportunity for a hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the entry of an order sustaining one or more of such objections,
the SEC shall find, after notice and opportunity for hearing, that all the objections so sustained have been met and shall enter
an order so declaring, the Trustee shall mail copies of such material to all such Holders with reasonable promptness after the
entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved of any obligation or duty to such applicants
respecting their application.

 

(c)       Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that none of the Company nor the Trustee nor any agent of any of them shall be held accountable by reason of the disclosure
of any such information as to the names and addresses of the Holders in accordance with Section 7.2(b), regardless
of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing
any material pursuant to a request made under Section 7.2(b).

 

7.3         
Reports by Trustee. Any Trustee’s report required pursuant to Section 313(a)
of the Trust Indenture Act shall be dated as of May 15, and shall be transmitted within 60 days after May 15 of each year (but
in all events at intervals of not more than 12 months), commencing with the year 20__, by mail to all Holders, as their names and
addresses appear in the Security Register. A copy of each such report shall, at the time of such transmission to Holders, be filed
by the Trustee with each stock exchange upon which any Securities are listed, with the SEC and with the Company. The Company will
notify the Trustee when any Securities are listed on any stock exchange.

 

 

 

    	 	50	 

     

    

 

7.4         
Reports by Company. The Company shall:

 

(a)       file with the Trustee, within 15 days after the Company files the same with the SEC, copies
of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as
the SEC may from time to time by rules and regulations prescribe) which the Company may be required to file with the SEC 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 said Sections, then it shall file with the Trustee and the SEC, in accordance with rules
and regulations prescribed from time to time by the SEC, 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)       file with the Trustee and the SEC, in accordance with rules and regulations prescribed from
time to time by the SEC, such additional information, documents and reports with respect to compliance by the Company with the
conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and

 

(c)       transmit by mail to all Holders, as their names and addresses appear in 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 clauses (a) and (b) of this Section as may be required by rules and regulations prescribed
from time to time by the SEC.

 

ARTICLE
Eight

CONSOLIDATION, AMALGAMATION, MERGER AND SALE

 

8.1         
Company May Consolidate, Etc., Only on Certain Terms. The Company shall not consolidate
or merge with or into any other Person or sell, convey, transfer, lease or otherwise dispose of all or substantially all of the
properties and assets of the Company on a consolidated basis to any other Person, and shall not permit any Person to consolidate
or merge into the Company, unless:

 

(a)        
either: (i) the Company is the surviving corporation; or (ii) the Person formed by or surviving
any such consolidation, amalgamation or merger or resulting from such conversion (if other than the Company) or to which such sale,
assignment, transfer, conveyance or other disposition has been made is a corporation, limited liability company or limited partnership
organized or existing under the laws of the United States, any state of the United States or the District of Columbia;

 

 

 

    	 	51	 

     

    

 

(b)       the Person formed by or surviving any such conversion, consolidation, amalgamation or merger
(if other than the Company) or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made
assumes all the obligations of the Company under the Securities and this Indenture pursuant to agreements reasonably satisfactory
to the Trustee; provided that, unless such Person is a corporation, a corporate co-issuer of the Securities will be added to this
Indenture by agreements reasonably satisfactory to the Trustee;

 

(c)       immediately before and after giving pro forma effect to such transaction, no Event of Default,
and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing;
and

 

(d)       the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that such consolidation, amalgamation, merger, conveyance, sale, transfer or lease and such supplemental
indenture, if any, comply with this Article Eight and that all conditions precedent herein provided for relating to such transaction
have been complied with.

 

8.2         
Successor Substituted. Upon any consolidation or merger of the Company with or into
any other Person or any sale, conveyance, transfer, lease or other disposition of all or substantially all of the properties and
assets of the Company on a consolidated basis in accordance with Section 8.1, the successor or resulting Person formed
by or resulting upon such consolidation or merger (if other than the Company) or to which such sale, conveyance, transfer, lease
or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in
the case of a lease, the predecessor Company shall be relieved of all obligations and covenants under this Indenture and the Securities.

 

ARTICLE
Nine

AMENDMENT, SUPPLEMENT AND WAIVER

 

9.1         
Without Consent of Holders. The Company and the Trustee may amend or supplement this
indenture or the Securities without the consent of any holder of a Security:

 

(a)       to cure any ambiguity or to correct or supplement any provision herein that may be inconsistent
with any other provision herein in a manner that does not adversely affect the rights of any Holder of Securities in any material
respect; or

 

(b)       to evidence the succession of another Person to the Company and the assumption by any such
successor of the covenants of the Company herein and, to the extent applicable, to the Securities; or

 

(c)       to provide for uncertificated Securities in addition to or in place of certificated Securities;
provided that the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code,
or in the manner such that the uncertificated Securities are described in Section 163(f)(2)(B) of the Code; or

 

 

 

    	 	52	 

     

    

 

(d)       to secure the Securities of any series; or

 

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

 

(f)       to make any change to any provision of this Indenture that does not adversely affect the rights
or interests of any Holder of Securities; or

 

(g)       to provide for the issuance of additional Securities in accordance with the provisions set
forth in this Indenture on the date of this Indenture; or

 

(h)       to add any additional Defaults or Events of Default in respect of all or any series of Securities;
or

 

(i)       to add to, change or eliminate any of the provisions of this Indenture to such extent as shall
be necessary to permit or facilitate the issuance of Securities in bearer form, registrable or not registrable as to principal,
and with or without interest coupons; or

 

(j)       to change or eliminate any of the provisions of this Indenture; provided that any such change
or elimination shall become effective only when there is no Security Outstanding of any series created prior to the execution of
such supplemental indenture that is entitled to the benefit of such provision; or

 

(k)       to establish the form or terms of Securities of any series as permitted by Section 2.1
and Section 3.1, including to reopen any series of any Securities as permitted under Section 3.1; or

 

(l)       to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements
of Section 6.11(b); or

 

 

 

    	 	53	 

     

    

 

(m)       to conform the text of this Indenture (and/or any supplemental indenture) or any debt securities
issued thereunder to any provision of a description of such debt securities appearing in a prospectus or prospectus supplement
or an offering memorandum or offering circular to the extent that such provision was intended to be a verbatim recreation of a
provision of the indenture (and/or any supplemental indenture) or any debt securities issued thereunder; or

 

(n)       to modify, eliminate or add to the provisions of this Indenture to such extent as shall be
necessary to effect the qualification of this Indenture under the Trust Indenture Act or under any similar federal statute subsequently
enacted, and to add to this Indenture such other provisions as may be expressly required under the Trust Indenture Act.

 

After an amendment
under this Section 9.1 becomes effective, the Company shall mail to Holders a notice briefly describing such amendment.
The failure to give such notice to Holders, or any defect therein, shall not impair or affect the validity of an amendment under
this Section 9.1.

 

Upon the request of
the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental
indenture, the Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, to make
any further appropriate agreements and stipulations that may be therein contained and to accept the conveyance, transfer, assignment,
mortgage, charge or pledge of any property thereunder, but the Trustee shall not be obligated to enter into any such supplemental
indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

9.2         
With Consent of Holders. The Company and the Trustee may amend or supplement this Indenture
and the Securities with the consent of the Holders of a majority in aggregate principal amount of the Outstanding Securities of
each series of Securities affected by such amendment or supplemental indenture, with each such series voting as a separate class
(including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for Securities)
and, subject to Section 5.8 and Section 5.13 hereof, any existing Default or Event of Default or compliance
with any provision of this Indenture or the Securities may be waived with respect to each series of Securities with the consent
of the Holders of a majority in principal amount of the Outstanding Securities of such series voting as a separate class (including
consents obtained in connection with a purchase of, or tender offer or exchange offer for, Securities).

 

Upon the request of
the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental
indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Securities
as aforesaid, and upon receipt by the Trustee of the documents described in Section 6.3 hereof, the Trustee will join
with the Company in the execution of such amended or supplemental indenture unless such amended or supplemental indenture directly
affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but will not be obligated to, enter into such amended or supplemental Indenture.

 

 

 

    	 	54	 

     

    

 

It is not be necessary
for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed
amendment or waiver, but it is sufficient if such consent approves the substance of the proposed amendment or waiver.

 

After an amendment,
supplement or waiver under this Section 9.2 becomes effective, the Company will mail to the Holders of Securities affected
thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any
defect therein, will not, however, in any way impair or affect the validity of any such amended or supplemental indenture or waiver.
Subject to Section 5.8 and Section 5.13 hereof, the application of or compliance with, either generally
or in any particular instance, of any provision of this Indenture or the Securities may be waived as to each series of Securities
by the Holders of a majority in aggregate principal amount of the Outstanding Securities of such series. However, without the consent
of each Holder affected, an amendment or waiver under this Section 9.2 may not (with respect to any Securities held
by a non-consenting Holder):

 

(a)       change the Stated Maturity of the principal of, or any installment of principal of or interest
on, any Security, or reduce the principal amount thereof or the rate of interest thereon or 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 5.2, or change any Place of Payment where, or the coin
or currency in which, any Security or any premium or the interest thereon is payable, or impair the right to institute suit for
the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption
Date), or

 

(b)       reduce the percentage in principal amount of the Outstanding Securities of any series, the
consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any waiver
(of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in
this Indenture, or

 

(c)       modify any of the provisions of this Section 9.2, Section 5.8, Section 5.13
or Section 10.6, except to increase any such percentage or to provide that certain other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby, provided, however,
that this clause (c) shall not be deemed to require the consent of any Holder with respect to changes in the references to “the
Trustee” and concomitant changes in this Section, or the deletion of this proviso, in accordance with the requirements
of Section 6.11(b) and Section 9.1(h); or

 

(d)       waive a redemption payment with respect to any Security; provided, however, that any purchase
or repurchase of Securities shall not be deemed a redemption of the Securities; or

 

(e)       make any change in the foregoing amendment and waiver provisions.

 

 

 

    	 	55	 

     

    

 

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 the 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 any Act of Holders under this Section 9.2 to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof.

 

9.3         
Execution of Supplemental Indentures. In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture,
the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but 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.

 

9.4         
Effect of Supplemental Indentures. Upon the execution of any supplemental indenture
under this Article Nine, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a
part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

 

9.5         
Conformity with Trust Indenture Act. Every supplemental indenture executed pursuant
to this Article Nine shall conform to the requirements of the Trust Indenture Act as then in effect.

 

9.6         
Reference in Securities to Supplemental Indentures. Securities of any series authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article Nine may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company
shall so determine, new Securities of any series so modified as to conform, in the opinion of the Trustee and the Company, to any
such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange
for Outstanding Securities of such series.

 

ARTICLE
Ten

COVENANTS

 

10.1         
Payment of Principal, Premium and Interest. The Company covenants and agrees for the
benefit of each series of Securities that it will duly and punctually pay the principal of and any premium and interest on the
Securities of that series in accordance with the terms of the Securities and this Indenture.

 

10.2         
Maintenance of Office or Agency. The Company will maintain in the Borough of Manhattan,
The City of New York, an office or agency (which may be an office of the Trustee or Registrar or agent of the Trustee or Registrar)
where Securities of that series may be presented or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of that
series and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee.

 

 

 

    	 	56	 

     

    

 

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

 

Except as otherwise
specified with respect to a series of Securities as contemplated by Section 3.1, the Company hereby initially designates
the office of the Trustee located at [_____________], New York, New York [_____], as the Company’s office or agency for each
such purpose for each series of Securities.

 

10.3         
Money for Securities Payments to Be Held in Trust. If the Company shall at any time
act as its own Paying Agent, with respect to any series of Securities, it will, on or before each due date of the principal of
and any premium or interest on any of the Securities of that series, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal and any premium and interest so becoming due until such sums shall be paid
to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure so to
act.

 

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 any
premium or interest on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay the principal and any
premium 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. For purposes of this Section 10.3, should a due date for principal of and any premium or interest on, or
sinking fund payment with respect to any series of Securities not be on a Business Day, such payment shall be due on the next Business
Day without any interest for the period from the due date until such Business Day.

 

The Company will cause
each Paying Agent for any series of Securities other than the Trustee to execute and deliver to the Trustee an instrument in which
such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will:

 

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

 

 

 

    	 	57	 

     

    

 

(b)       give the Trustee notice of any Default by the Company (or any other obligor upon the Securities
of that series) in the making of any payment of principal and any premium or interest on the Securities of that series; and

 

(c)       at any time during the continuance of any such Default, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

 

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 by Company
Order 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 trusts 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.

 

Subject to any applicable
escheat or abandoned property laws, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust
for the payment of the principal of and any premium or interest on any Security of any series and remaining unclaimed for one year
after such principal and any premium or interest has become due and payable shall be paid to the Company on Company Request, or
(if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect
to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause
to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money
then remaining will be repaid to the Company.

 

10.4         
Existence. Subject to Article Eight, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its existence, rights (charter and statutory) and franchises; provided,
however, that the Company shall not be required to preserve any such right or franchise if the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of the Company.

 

10.5         
Statement by Officers as to Default. Annually, within 150 days after the close of each
fiscal year beginning with the first fiscal year during which one or more series of Securities are Outstanding, the Company will
deliver to the Trustee a brief certificate (which need not include the statements set forth in Section 1.3) from the
principal executive officer, principal financial officer or principal accounting officer of the Company as to his or her knowledge
of the Company’s compliance (without regard to any period of grace or requirement of notice provided herein) with all conditions
and covenants under the Indenture and, if the Company shall be in Default, specifying all such Defaults and the nature and status
thereof of which such officer has knowledge.

 

 

 

    	 	58	 

     

    

 

10.6         
Additional Amounts. If the Securities of a series provide for the payment of additional
amounts (as provided in Section 3.1(o)), at least 10 days prior to the first Interest Payment Date with respect to
that series of Securities and at least 10 days prior to each date of payment of principal of, premium, if any, or interest on the
Securities of that series if there has been a change with respect to the matters set forth in the below-mentioned Officer’s
Certificate, the Company shall furnish to the Trustee and the principal Paying Agent, if other than the Trustee, an Officer’s
Certificate instructing the Trustee and such Paying Agent whether such payment of principal of, premium, if any, or interest on
the Securities of that series shall be made to holders of the Securities of that series without withholding or deduction for or
on account of any tax, assessment or other governmental charge described in the Securities of that series. If any such withholding
or deduction shall be required, then such Officer’s Certificate shall specify by country the amount, if any, required to
be withheld or deducted on such payments to such holders and shall certify the fact that additional amounts will be payable and
the amounts so payable to each holder, and the Company shall pay to the Trustee or such Paying Agent the additional amounts required
to be paid by this Section. The Company covenants to indemnify the Trustee and any Paying Agent for, and to hold them harmless
against, any loss, liability or expense reasonably incurred without negligence or bad faith on their part arising out of or in
connection with actions taken or omitted by any of them in reliance on any Officer’s Certificate furnished pursuant to this
Section 10.6.

 

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

 

ARTICLE
Eleven

REDEMPTION OF SECURITIES

 

11.1         
Applicability of Article. Securities of any series which are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 3.1
for Securities of any series) in accordance with this Article Eleven.

 

11.2         
Election to Redeem; Notice to Trustee. The election of the Company to redeem any Securities
shall be evidenced by a Board Resolution. In case of any redemption at the election of the Company of less than all the Securities
of any series, the Company shall, at least 15 days prior to the last date for the giving of notice of such redemption (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal amount of
Securities of such series to be redeemed and, if applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities (a) prior to the expiration of any restriction on such redemption provided in the terms of such Securities
or elsewhere in this Indenture or (b) pursuant to an election of the Company that is subject to a condition specified in the terms
of the Securities of the series to be redeemed, the Company shall furnish the Trustee with an Officer’s Certificate evidencing
compliance with such restriction or condition.

 

 

 

    	 	59	 

     

    

 

11.3         
Selection by Trustee of Securities to Be Redeemed. If less than all the Securities
of any series are to be redeemed (unless all of the Securities of such series and of a specified tenor are to be redeemed), the
particular Securities to be redeemed shall be selected not more than 45 days prior to the Redemption Date by the Trustee, from
the Outstanding Securities of such series not previously called for redemption, by lot, pro rata or by another method as the Trustee
shall deem fair and appropriate, including any method required by the Depository with respect to any Global Securities (and in
such manner as is not prohibited by applicable legal requirements) and which may provide for the selection for redemption of portions
(equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series.

 

The Trustee shall promptly
notify the Company in writing of the Securities selected for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed. If the Securities of any series to be redeemed consist of Securities having
different dates on which the principal is payable or different rates of interest, or different methods by which interest may be
determined or have any other different tenor or terms, then the Company may, by written notice to the Trustee, direct that the
Securities of such series to be redeemed shall be selected from among the groups of such Securities having specified tenor or terms
and the Trustee shall thereafter select the particular Securities to be redeemed in the manner set forth in the preceding paragraph
from among the group of such Securities so specified.

 

For all purposes of
this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in
the case of any Securities redeemed or to be redeemed only in part, to the portion of the principal amount of such Securities which
has been or is to be redeemed.

 

11.4         
Notice of Redemption. Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register.

 

All notices of redemption
shall state:

 

(a)       the Redemption Date,

 

(b)       the Redemption Price, or if not then ascertainable, the manner of calculation thereof,

 

 

 

    	 	60	 

     

    

 

(c)       if less than all the Outstanding Securities of any series are to be redeemed, the identification
(and, in the case of partial redemption, the principal amounts) of the particular Securities to be redeemed,

 

(d)       that on the Redemption Date the Redemption Price will become due and payable upon each such
Security to be redeemed and, if applicable, that interest thereon will cease to accrue on and after said date,

 

(e)       the place or places where such Securities are to be surrendered for payment of the Redemption
Price, and

 

(f)       that the redemption is for a sinking fund, if such is the case.

 

Notice of redemption of Securities to be
redeemed at the election of the Company shall be given by the Company or, at the Company’s request, by the Trustee in the
name and at the expense of the Company.

 

11.5         
Deposit of Redemption Price. Prior to any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided
in Section 10.3) an amount of money sufficient to pay the Redemption Price of, and (except if the Redemption Date shall
be an Interest Payment Date) accrued interest on, all the Securities which are to be redeemed on that date.

 

11.6         
Securities Payable on Redemption Date. Notice of redemption having been given as aforesaid,
the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified,
and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security for redemption in accordance with said notice, such
Security shall be paid by the Company at the Redemption Price, together with accrued interest to the Redemption Date; provided,
however, that unless otherwise specified with respect to Securities of any series as contemplated in Section 3.1,
installments of interest whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities,
or one or more Predecessor Securities, registered as such at the close of business on the relevant record dates according to their
terms and the provisions of Section 3.7.

 

If any Security called
for redemption shall not be so paid upon surrender thereof for redemption, the principal (and premium, if any) shall, until paid,
bear interest from the Redemption Date at the rate prescribed therefor in the Security.

 

11.7         
Securities Redeemed in Part. Any Security which is to be redeemed only in part shall
be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Security or Securities of the same series and tenor, of any authorized denomination as requested
by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security
so surrendered.

 

 

 

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ARTICLE
Twelve

SINKING FUNDS

 

12.1         
Applicability of Article. The provisions of this Article Twelve shall be applicable
to any sinking fund for the retirement of Securities of a series except as otherwise specified as contemplated by Section 3.1
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 12.2.
Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities
of such series.

 

12.2         
Satisfaction of Sinking Fund Payments with Securities. The Company (a) may deliver
Outstanding Securities of a series (other than any previously called for redemption) and (b) 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 sinking fund payment with respect to the Securities of such series required to be made pursuant to the
terms of such Securities as provided for by the terms of such series; 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 sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

 

12.3         
Redemption of Securities for Sinking Fund. Not less than 45 days prior to each sinking
fund payment date for any series of Securities (unless a shorter period shall be satisfactory to the Trustee), the Company will
deliver to the Trustee an Officer’s 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 payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting Securities of that series pursuant to Section 12.2
and stating the basis for such credit and that such Securities have not been previously so credited, and will also deliver to the
Trustee any Securities to be so delivered. Not less than 30 days before each such sinking fund payment date the Trustee shall select
the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 11.3 and cause
notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 11.4.
Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in
Section 11.6 and Section 11.7.

 

 

 

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ARTICLE
Thirteen

DEFEASANCE

 

13.1         
Option to Effect Legal Defeasance or Covenant Defeasance. The Company may, at the option
of its Board of Directors evidenced by a resolution set forth in an Officer’s Certificate, and at any time, elect to have
either Section 13.2 or Section 13.3 hereof be applied to all outstanding Securities upon compliance with
the conditions set forth below in this Article Thirteen.

 

13.2         
Legal Defeasance and Discharge. Upon the Company’s exercise under Section 13.1
hereof of the option applicable to this Section 13.2, the Company will, subject to the satisfaction of the conditions
set forth in Section 13.4 hereof, be deemed to have been discharged from their obligations with respect to all outstanding
Securities on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this
purpose, Legal Defeasance means that the Company will be deemed to have paid and discharged the entire Debt represented by the
outstanding Securities, which will thereafter be deemed to be “outstanding” only for the purposes of Section 13.5
hereof and the other sections of this Indenture referred to in clauses (a) and (b) below, and to have satisfied all their other
obligations under such Securities and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following provisions which will survive until otherwise terminated or
discharged hereunder:

 

(a)       the rights of Holders of Outstanding Securities to receive payments in respect of the principal
of, or interest or premium, if any, on such Securities when such payments are due from the trust referred to in Section 13.4
hereof;

 

(b)       the Company’s obligations with respect to such Securities under Section 3.4,
Section 3.5, Section 3.6, Section 10.2 and Section 10.3 hereof;

 

(c)       the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s
obligations in connection therewith; and

 

(d)       this Article Thirteen.

 

Subject to compliance
with this Article Thirteen, the Company may exercise its option under this Section 13.2 notwithstanding the prior exercise
of its option under Section 13.3 hereof.

 

13.3         
Covenant Defeasance. Upon the Company’s exercise under Section 13.1
hereof of the option applicable to this Section 13.3, the Company will, subject to the satisfaction of the conditions
set forth in Section 13.4 hereof, be released from each of their obligations under the covenants contained in Section 7.4,
Section 8.1 and Section 10.4 hereof as well as any Additional Defeasible Provisions (such release and termination
hereinafter referred to as “Covenant Defeasance”), and the Securities will thereafter be deemed not “outstanding”
for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection
with such covenants, but will continue to be deemed “outstanding” for all other purposes hereunder (it being understood
that such Securities will not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that,
with respect to the outstanding Securities, the Company may omit to comply with and will have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein
to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document
and such omission to comply will not constitute a Default or an Event of Default under Section 5.1 hereof, but, except
as specified above, the remainder of this Indenture and such Securities will be unaffected thereby. In addition, upon the Company’s
exercise under Section 13.1 hereof of the option applicable to this Section 13.3 hereof, subject to the
satisfaction of the conditions set forth in Section 13.4 hereof, Section 5.1(c) and Section 5.1(e)
hereof and will not constitute Events of Default.

 

 

 

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13.4         
Conditions to Legal or Covenant Defeasance. In order to exercise either Legal Defeasance
or Covenant Defeasance under either Section 13.2 or Section 13.3 hereof:

 

(a)       the Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders
of the Securities, cash in U.S. dollars, non-callable U.S. Government Obligations, or a combination of cash in U.S. dollars and
non-callable U.S. Government Obligations, in such amounts as will be sufficient, in the opinion of a nationally recognized investment
bank, appraisal firm, or firm of independent public accountants to pay the principal of, or interest and premium, if any, on the
Outstanding Securities on the stated date for payment thereof or on the applicable redemption date, as the case may be, and the
Company must specify whether the Securities are being defeased to such stated date for payment or to a particular redemption date;

 

(b)       in the case of an election under Section 13.2 hereof, the Company must deliver
to the Trustee an Opinion of Counsel confirming that:

 

(i)       the Company has received from, or there has been published by, the Internal Revenue Service
a ruling; or

 

(ii)      since the Issue Date, there has been a change in the applicable federal income tax law,

 

in either case to the effect that, and
based thereon such Opinion of Counsel will confirm that, the Holders of the Outstanding Securities will not recognize income, gain
or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

 

(c)       in the case of an election under Section 13.3 hereof, the Company must deliver
to the Trustee an Opinion of Counsel confirming that the Holders of the Outstanding Securities will not recognize income, gain
or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 

 

 

    	 	64	 

     

    

 

(d)       no Default or Event of Default has occurred and is continuing on the date of such deposit
(other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit);

 

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

 

(f)       such Legal Defeasance or Covenant Defeasance will not result in a breach or violation of,
or constitute a default under, any material agreement or instrument (other than this Indenture) to which the Company or any of
its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound;

 

(g)       the Company must deliver to the Trustee an Officers’ Certificate stating that the deposit
was not made by the Company with the intent of preferring the Holders of Securities over the other creditors of the Company with
the intent of defeating, hindering, delaying or defrauding any other creditors of the Company or others;

 

(h)       the Company must deliver to the Trustee an Officer’s Certificate, stating that all conditions
precedent set forth in clauses (a) through (g) of this Section 13.4 have been complied with; and

 

(i)       the Company must deliver to the Trustee an Opinion of Counsel (which Opinion of Counsel may
be subject to customary assumptions, qualifications and exclusions), stating that all conditions precedent set forth in clauses
(b), (c) and (e) of this Section 13.4 have been complied with; provided that the Opinion of Counsel with respect to
clause (e) of this Section 13.4 may be to the knowledge of such counsel.

 

13.5         
Deposited Money and U.S. Government Obligations to be Held in Trust, Other Miscellaneous
Provisions. Subject to Section 13.6 hereof, all money and non-callable U.S. Government Obligation (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 13.5,
the “Trustee”) pursuant to Section 13.4 hereof in respect of the Outstanding Securities will be
held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the
Holders of such Securities of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but
such money need not be segregated from other funds except to the extent required by law.

 

The Company will pay
and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable U.S. Government
Obligations deposited pursuant to Section 13.4 hereof or the principal and interest received in respect thereof other
than any such tax, fee or other charge which by law is for the account of the Holders of the Outstanding Securities.

 

Notwithstanding anything
in this Article Thirteen to the contrary, the Trustee will deliver or pay to the Company from time to time upon the request of
the Company any money or non-callable U.S. Government Obligations held by it as provided in Section 13.4 hereof which,
in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered
to the Trustee (which may be the opinion delivered under Section 13.4(a) hereof), are in excess of the amount thereof
that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

 

 

    	 	65	 

     

    

 

13.6         
Repayment. Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium, if any, or interest on any Security and remaining unclaimed
for two years after such principal, premium, if any, or interest has become due and payable shall be paid to the Company on its
request or (if then held by the Company) will be discharged from such trust; and the Holder of such Security will thereafter be
permitted to look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Company as trustee thereof, will thereupon cease; provided, however, that the Trustee
or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published
once, in the New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed
and that, after a date specified therein, which will not be less than 30 days from the date of such notification or publication,
any unclaimed balance of such money then remaining will be repaid to the Company.

 

13.7         
Reinstatement. If the Trustee or Paying Agent is unable to apply any United States
dollars or non-callable U.S. Government Obligations in accordance with Section 13.2 or Section 13.3 hereof,
as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s obligations under this Indenture and the Securities will be revived and
reinstated as though no deposit had occurred pursuant to Section 13.2 or Section 13.3 hereof until such
time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 13.2 or Section 13.3
hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium, if any, or interest
on any Note following the reinstatement of its obligations, the Company will be subrogated to the rights of the Holders of such
Securities to receive such payment from the money held by the Trustee or Paying Agent.

 

This instrument may
be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

 

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

 

	 	PACIFIC ETHANOL, INC.
	 	 
	 	 
	 	By:__________
	 	Name:__________
	 	Title:__________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	66	 

     

    

 

	 	[TRUSTEE]
	 	By:_________________
	 	Name:_______________
	 	Title:________________

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