Document:

EXHIBIT
4.4

FORM OF
SENIOR INDENTURE TO BE ENTERED INTO BETWEEN

THE COMPANY AND A TRUSTEE TO BE NAMED

 

CONCEPTUS, INC.

INDENTURE

Dated as of               ,
200  

[Name of Trustee]

Trustee

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I. DEFINITIONS AND INCORPORATION BY
  REFERENCE

  	
  2

  
	
  Section 1.1.

  	
  Definitions

  	
  2

  
	
  Section 1.2.

  	
  Other Definitions

  	
  6

  
	
  Section 1.3.

  	
  Incorporation by Reference of Trust Indenture Act

  	
  6

  
	
  Section 1.4.

  	
  Rules of Construction

  	
  7

  
	
  ARTICLE II. THE SECURITIES 

  	
  7

  
	
  Section 2.1.

  	
  Issuable in Series

  	
  7

  
	
  Section 2.2.

  	
  Establishment of Terms of Series of Securities

  	
  7

  
	
  Section 2.3.

  	
  Execution and Authentication

  	
  10

  
	
  Section 2.4.

  	
  Registrar and Paying Agent

  	
  11

  
	
  Section 2.5.

  	
  Paying Agent to Hold Money in Trust

  	
  11

  
	
  Section 2.6.

  	
  Securityholder Lists

  	
  12

  
	
  Section 2.7.

  	
  Transfer and Exchange

  	
  12

  
	
  Section 2.8.

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
  12

  
	
  Section 2.9.

  	
  Outstanding Securities

  	
  13

  
	
  Section 2.10.

  	
  Treasury Securities

  	
  14

  
	
  Section 2.11.

  	
  Temporary Securities

  	
  14

  
	
  Section 2.12.

  	
  Cancellation

  	
  14

  
	
  Section 2.13.

  	
  Defaulted Interest

  	
  14

  
	
  Section 2.14.

  	
  Global Securities

  	
  14

  
	
  Section 2.15.

  	
  CUSIP Numbers

  	
  16

  
	
  ARTICLE III. REDEMPTION

  	
  16

  
	
  Section 3.1.

  	
  Notice to Trustee

  	
  16

  
	
  Section 3.2.

  	
  Selection of Securities to be Redeemed

  	
  16

  
	
  Section 3.3.

  	
  Notice of Redemption

  	
  16

  
	
  Section 3.4.

  	
  Effect of Notice of Redemption

  	
  17

  
	
  Section 3.5.

  	
  Deposit of Redemption Price

  	
  17

  
	
  Section 3.6.

  	
  Securities Redeemed in Part

  	
  17

  
	
  ARTICLE IV. COVENANTS

  	
  18

  
	
  Section 4.1.

  	
  Payment of Principal and Interest

  	
  18

  
	
  Section 4.2.

  	
  SEC Reports

  	
  18

  
	
  Section 4.3.

  	
  Compliance Certificate

  	
  18

  
	
  Section 4.4.

  	
  Stay, Extension and Usury Laws

  	
  18

  
	
  Section 4.5.

  	
  Corporate Existence

  	
  19

  
	
  Section 4.6.

  	
  Taxes

  	
  19

  
	
  ARTICLE V. SUCCESSORS

  	
  19

  
	
  Section 5.1.

  	
  When Company May Merge, Etc.

  	
  19

  
	
  Section 5.2.

  	
  Successor Corporation Substituted

  	
  19

  
	
  ARTICLE VI. DEFAULTS AND REMEDIES

  	
  20

  
	
  Section 6.1.

  	
  Events of Default

  	
  20

  
	
  Section 6.2.

  	
  Acceleration of Maturity; Rescission and Annulment

  	
  21

  
	
  Section 6.3.

  	
  Collection of Indebtedness and Suits for Enforcement
  by Trustee

  	
  22

  
	
  Section 6.4.

  	
  Trustee May File Proofs of Claim

  	
  23

  

 

 

	
  Section 6.5.

  	
  Trustee May Enforce Claims Without Possession of
  Securities

  	
  23

  
	
  Section 6.6.

  	
  Application of Money Collected

  	
  24

  
	
  Section 6.7.

  	
  Limitation on Suits

  	
  24

  
	
  Section 6.8.

  	
  Unconditional Right of Holders to Receive Principal
  and Interest

  	
  25

  
	
  Section 6.9.

  	
  Restoration of Rights and Remedies

  	
  25

  
	
  Section 6.10.

  	
  Rights and Remedies Cumulative

  	
  25

  
	
  Section 6.11.

  	
  Delay or Omission Not Waiver

  	
  25

  
	
  Section 6.12.

  	
  Control by Holders

  	
  25

  
	
  Section 6.13.

  	
  Waiver of Past Defaults

  	
  26

  
	
  Section 6.14.

  	
  Undertaking for Costs

  	
  26

  
	
  ARTICLE VII. TRUSTEE

  	
  26

  
	
  Section 7.1.

  	
  Duties of Trustee

  	
  26

  
	
  Section 7.2.

  	
  Rights of Trustee

  	
  28

  
	
  Section 7.3.

  	
  Individual Rights of Trustee

  	
  28

  
	
  Section 7.4.

  	
  Trustee’s Disclaimer

  	
  29

  
	
  Section 7.5.

  	
  Notice of Defaults

  	
  29

  
	
  Section 7.6.

  	
  Reports by Trustee to Holders

  	
  29

  
	
  Section 7.7.

  	
  Compensation and Indemnity

  	
  29

  
	
  Section 7.8.

  	
  Replacement of Trustee

  	
  30

  
	
  Section 7.9.

  	
  Successor Trustee by Merger, Etc.

  	
  31

  
	
  Section 7.10.

  	
  Eligibility; Disqualification

  	
  31

  
	
  Section 7.11.

  	
  Preferential Collection of Claims Against Company

  	
  31

  
	
  ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE

  	
  31

  
	
  Section 8.1.

  	
  Satisfaction and Discharge of Indenture

  	
  31

  
	
  Section 8.2.

  	
  Application of Trust Funds; Indemnification

  	
  32

  
	
  Section 8.3.

  	
  Legal Defeasance of Securities of any Series

  	
  33

  
	
  Section 8.4.

  	
  Covenant Defeasance

  	
  35

  
	
  Section 8.5.

  	
  Repayment to Company

  	
  36

  
	
  Section 8.6.

  	
  Reinstatement

  	
  36

  
	
  ARTICLE IX. AMENDMENTS AND WAIVERS

  	
  36

  
	
  Section 9.1.

  	
  Without Consent of Holders

  	
  36

  
	
  Section 9.2.

  	
  With Consent of Holders

  	
  37

  
	
  Section 9.3.

  	
  Limitations

  	
  38

  
	
  Section 9.4.

  	
  Compliance with Trust Indenture Act

  	
  38

  
	
  Section 9.5.

  	
  Revocation and Effect of Consents

  	
  38

  
	
  Section 9.6.

  	
  Notation on or Exchange of Securities

  	
  39

  
	
  Section 9.7.

  	
  Trustee Protected

  	
  39

  
	
  ARTICLE X. MISCELLANEOUS

  	
  39

  
	
  Section 10.1.

  	
  Trust Indenture Act Controls

  	
  39

  
	
  Section 10.2.

  	
  Notices

  	
  39

  
	
  Section 10.3.

  	
  Communication by Holders with Other Holders

  	
  40

  
	
  Section 10.4.

  	
  Certificate and Opinion as to Conditions Precedent

  	
  40

  
	
  Section 10.5.

  	
  Statements Required in Certificate or Opinion

  	
  40

  
	
  Section 10.6.

  	
  Rules by Trustee and Agents

  	
  41

  
	
  Section 10.7.

  	
  Legal Holidays

  	
  41

  
	
  Section 10.8.

  	
  No Recourse Against Others

  	
  41

  

 ii
 

 

 

	
  Section 10.9.

  	
  Counterparts

  	
  41

  
	
  Section 10.10.

  	
  Governing Laws

  	
  41

  
	
  Section 10.11.

  	
  No Adverse Interpretation of Other Agreements

  	
  41

  
	
  Section 10.12.

  	
  Successors

  	
  42

  
	
  Section 10.13.

  	
  Severability

  	
  42

  
	
  Section 10.14.

  	
  Table of Contents, Headings, Etc.

  	
  42

  
	
  Section 10.15.

  	
  Securities in a Foreign Currency or in ECU

  	
  42

  
	
  Section 10.16.

  	
  Judgment Currency

  	
  43

  
	
  ARTICLE XI. SINKING FUNDS

  	
  43

  
	
  Section 11.1.

  	
  Applicability of Article

  	
  43

  
	
  Section 11.2.

  	
  Satisfaction of Sinking Fund Payments with
  Securities

  	
  44

  
	
  Section 11.3.

  	
  Redemption of Securities for Sinking Fund

  	
  44

  

 

 iii

 

CONCEPTUS, INC.

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of               ,
200  

	
  Section 310(a)(1)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (a)(5)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  Section 311(a)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  Section 312(a)

  	
   

  	
   

  	
   

  	
  2.6

  
	
  (b)

  	
   

  	
   

  	
   

  	
  10.3

  
	
  (c)

  	
   

  	
   

  	
   

  	
  10.3

  
	
  Section 313(a)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (b)(2)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  Section 314(a)

  	
   

  	
   

  	
   

  	
  4.2, 10.5

  
	
  (b)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  10.4

  
	
  (c)(2)

  	
   

  	
   

  	
   

  	
  10.4

  
	
  (c)(3)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
   

  	
   

  	
  10.5

  
	
  (f)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  Section 315(a)

  	
   

  	
   

  	
   

  	
  7.1

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.5

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.1

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.1

  
	
  (e)

  	
   

  	
   

  	
   

  	
  6.14

  
	
  Section 316(a)

  	
   

  	
   

  	
   

  	
  2.10

  
	
  (a)(1)(A)

  	
   

  	
   

  	
   

  	
  6.12

  
	
  (a)(1)(B)

  	
   

  	
   

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.8

  
	
  Section 317(a)(1)

  	
   

  	
   

  	
   

  	
  6.3

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  6.4

  
	
  (b)

  	
   

  	
   

  	
   

  	
  2.5

  
	
  Section 318(a)

  	
   

  	
   

  	
   

  	
  10.1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  

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

  

 

 

Indenture dated as of                 ,
200    between Conceptus, Inc., a Delaware corporation (“Company”),
and [Name of Trustee], a                                  (“Trustee”).

Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Securities issued under
this Indenture.

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.1.            Definitions.

“Additional Amounts” means any additional amounts that are required
hereby or by any Security, under circumstances specified herein or therein, to
be paid by the Company in respect of certain taxes imposed on Holders specified
therein and that are owing to such Holders.

“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
the purposes of this definition, “control” (including, with correlative
meanings, the terms “controlled by” and “under common control with”), as used
with respect to any person, shall mean 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 or by agreement
or otherwise.

“Agent” means any Registrar, Paying Agent, Service Agent or
authenticating agent.

“Authorized Newspaper” means a newspaper in an official language of the
country of publication customarily published at least once a day for at least
five days in each calendar week and of general circulation in the place in
connection with which the term is used. 
If it shall be impractical to make any publication of any notice
required hereby in an Authorized Newspaper, any publication or other notice in
lieu thereof that is made or given by the Trustee shall constitute a sufficient
publication of such notice.

“Bearer” means anyone in possession from time to time of a Bearer
Security.

“Bearer Security” means any Security, including any interest coupon
appertaining thereto, that does not provide for the identification of the
Holder thereof.

“Board of Directors” means the Board of Directors of the Company or any
duly authorized committee thereof.

“Board Resolution” means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been adopted by the
Board of Directors or pursuant to authorization by the Board of Directors and
to be in full force and effect on the date of the certificate and delivered to
the Trustee.

“Business Day” means, unless otherwise provided by Board Resolution,
Officers’ Certificate or supplemental indenture hereto for a particular Series,
any day except a Saturday, 

 2
 

 

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

“Company” means the party named as such above until a successor
replaces it and thereafter means the successor.

“Company Order” means a written order signed in the name of the Company
by two Officers, one of whom must be the Company’s chief executive officer,
chief financial officer or principal accounting officer.

“Company Request” means a written request signed in the name of the
Company by its Chairman of the Board, a President or a Vice President, and by
its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary,
and delivered to the Trustee.

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

“Debt” of any person as of any date means, without duplication, all
indebtedness of such person in respect of borrowed money, including all
interest, fees and expenses owed in respect thereto (whether or not the
recourse of the lender is to the whole of the assets of such person or only to
a portion thereof), or evidenced by bonds, notes, debentures or similar
instruments.

“Default” means any event that is, or after notice or passage of time
would be, an Event of Default.

“Depository” means, with respect to the Securities of any Series
issuable or issued in whole or in part in the form of one or more Global
Securities, the person designated as Depository for such Series by the Company,
which Depository shall be a clearing agency registered under the Exchange Act;
and if at any time there is more than one such person, “Depository” as used
with respect to the Securities of any Series shall mean the Depository with
respect to the Securities of such Series.

“Discount Security” means any Security that provides for an amount less
than the stated principal amount thereof to be due and payable upon declaration
of acceleration of the maturity thereof pursuant to Section 6.2.

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

“ECU” means the European Currency Unit as determined by the Commission
of the European Union.

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

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

 3
 

 

“Foreign Government Obligations” means with respect to Securities of
any Series that are denominated in a Foreign Currency, (i) direct obligations
of the government that issued or caused to be issued such currency for the
payment of which obligations its full faith and credit is pledged or (ii)
obligations of a person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not callable
or redeemable at the option of the issuer thereof.

“Global Security” or “Global Securities” means a Security or
Securities, as the case may be, in the form established pursuant to Section 2.2
evidencing all or part of a Series of Securities, issued to the Depository for
such Series or its nominee, and registered in the name of such Depository or
nominee.

“Holder” or “Securityholder” means a person in whose name a Security is
registered or the holder of a Bearer Security.

“Indenture” means this Indenture as amended from time to time and shall
include the form and terms of particular Series of Securities established as
contemplated hereunder.

“interest” with respect to any Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

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

“Officer” means the Chairman of the Board, any President, any
Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any
Assistant Secretary of the Company.

“Officers’ Certificate” means a certificate signed by two Officers, one
of whom must be the Company’s principal executive officer, principal financial
officer or principal accounting officer.

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

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

“principal” of a Security means the principal of the Security plus,
when appropriate, the premium, if any, on, and any Additional Amounts in
respect of, the Security.

“Responsible Officer” means any officer of the Trustee with direct
responsibility for the administration of the indenture and also means, with
respect to a particular corporate trust matter, any other officer to whom any
corporate trust matter is referred because of his or her knowledge of and
familiarity with a particular subject.

 4
 

 

“SEC” means the Securities and Exchange Commission.

“Securities” means the debentures, notes or other debt instruments of
the Company of any Series authenticated and delivered under this Indenture.

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

“Significant Subsidiary” means (i) any direct or indirect Subsidiary of
the Company that would be a “significant subsidiary” as defined in Article 1,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of
1933, as amended, as such regulation is in effect on the date hereof, or (ii)
any group of direct or indirect Subsidiaries of the Company that, taken
together as a group, would be a “significant subsidiary” as defined in Article
1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of
1933, as amended, as such regulation is in effect on the date hereof.

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

“Subsidiary” of any specified person means any corporation of which at
least a majority of the outstanding stock having by the terms thereof ordinary
voting power for the election of directors of such corporation (irrespective of
whether or not at the time stock of any other class or classes of such
corporation shall have or might have voting power by reason of the happening of
any contingency) is at the time directly or indirectly owned by such person, or
by one or more other Subsidiaries, or by such person and one or more other
Subsidiaries.

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections
77aaa-77bbbb) as in effect on the date of this Indenture; provided, however,
that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA”
means, to the extent required by any such amendment, the Trust Indenture Act as
so amended.

“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.

“U.S. Government Obligations” means securities that are (i) direct
obligations of The United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a person controlled or
supervised by and acting as an agency or instrumentality of The United States
of America the payment of which is unconditionally guaranteed as a full faith
and credit obligation by The United States of America, and which in the case of
(i) and (ii) are not callable or redeemable at the option of the issuer
thereof, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government 

 5
 

 

Obligation
held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depository receipt from any amount received by the custodian in respect of
the U.S. Government Obligation evidenced by such depository receipt.

Section 1.2.            Other
Definitions.

	
  TERM

  	
   

  	
  DEFINED IN 

  SECTION

  
	
  “Bankruptcy Law”

  	
   

  	
  6.1

  
	
  “Custodian”

  	
   

  	
  6.1

  
	
  “Event of Default”

  	
   

  	
  6.1

  
	
  “Journal”

  	
   

  	
  10.15

  
	
  “Judgment Currency”

  	
   

  	
  10.16

  
	
  “Legal Holiday”

  	
   

  	
  10.7

  
	
  “mandatory sinking fund
  payment”

  	
   

  	
  11.1

  
	
  “Market Exchange Rate”

  	
   

  	
  10.15

  
	
  “New York Banking Day”

  	
   

  	
  10.16

  
	
  “optional sinking fund
  payment”

  	
   

  	
  11.1

  
	
  “Paying Agent”

  	
   

  	
  2.4

  
	
  “Registrar”

  	
   

  	
  2.4

  
	
  “Required Currency”

  	
   

  	
  10.16

  
	
  “Service Agent”

  	
   

  	
  2.4

  
	
  “successor person”

  	
   

  	
  5.1

  

 

Section 1.3.            Incorporation
by Reference of Trust Indenture Act.

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

“Commission” means the SEC.

“indenture securities” means
the Securities.

“indenture security holder”
means a Securityholder.

“indenture to be qualified”
means this Indenture.

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

“obligor” on the indenture
securities means the Company and any successor obligor upon the Securities.

 6
 

 

 

All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the
TIA and not otherwise defined herein are used herein as so defined.

Section 1.4.            Rules
of Construction.

Unless the context otherwise requires:

(a)           a term has the
meaning assigned to it;

(b)           an accounting term
not otherwise defined has the meaning assigned to it in accordance with
generally accepted accounting principles;

(c)           references to “generally
accepted accounting principles” shall mean generally accepted accounting
principles in effect as of the time when and for the period as to which such
accounting principles are to be applied;

(d)           “or” is not
exclusive;

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

(f)            provisions apply to
successive events and transactions.

ARTICLE II.

THE SECURITIES

Section 2.1.            Issuable
in Series.

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

Section 2.2.            Establishment
of Terms of Series of Securities.

At or prior to the issuance of any Securities within a Series, the
following shall be established (as to the Series generally, in the case of
Subsection 2.2.1 and either as to such Securities within the Series or as to
the Series generally in the case of Subsections 2.2.2 through 2.2.22) by a
Board Resolution, a supplemental indenture or an Officers’ Certificate pursuant
to authority granted under a Board Resolution:

 7
 

 

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

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

2.2.3.       any
limit upon the aggregate principal amount of the Securities of the Series which
may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the Series pursuant to Section 2.7,
2.8, 2.11, 3.6 or 9.6);

2.2.4.       the
date or dates on which the principal of the Securities of the Series is
payable;

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

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

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

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

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

2.2.10.     if
other than denominations of $2,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be issuable;

2.2.11.     the
forms of the Securities of the Series in bearer or fully registered form (and,
if in fully registered form, whether the Securities will be issuable as Global
Securities);

 8
 

 

2.2.12.     if
other than the principal amount thereof, the portion of the principal amount of
the Securities of the Series that shall be payable upon declaration of acceleration
of the maturity thereof pursuant to Section 6.2;

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

2.2.14.     the
designation of the currency, currencies or currency units in which payment of
the principal of and interest, if any, on the Securities of the Series will be
made;

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

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

2.2.17.     the
provisions, if any, relating to any security provided for the Securities of the
Series;

2.2.18.     if
the holders of Securities of the Series may convert or exchange the Securities
into or for securities of the Issuer or of other entities or other property,
the period or periods within which, the rate or rates at which and the terms
and conditions upon which Securities of the Series may be converted or
exchanged, in whole or in part;

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

2.2.20.     any
addition to or change in the covenants set forth in Articles IV or V which
applies to Securities of the Series;

2.2.21.     any
other terms of the Securities of the Series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 9.1, but which may modify or delete any provision of this Indenture
insofar as it applies to such Series); and

2.2.22.     any
depositories, interest rate calculation agents, exchange rate calculation
agents or other agents with respect to Securities of such Series if other than
those appointed herein.

All Securities of any one Series need not be issued at the same time and
may be issued from time to time, consistent with the terms of this Indenture,
if so provided by or 

 9
 

 

pursuant
to the Board Resolution, supplemental indenture or Officers’ Certificate
referred to above, and the authorized principal amount of any Series may not be
increased to provide for issuances of additional Securities of such Series,
unless otherwise provided in such Board Resolution, supplemental indenture or
Officers’ Certificate.

Section 2.3.            Execution
and Authentication.

Two Officers shall sign the Securities for the Company by manual or
facsimile signature.

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

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

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

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

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

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

The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Securities.  An
authenticating agent may authenticate Securities whenever the Trustee may do
so.  Each reference in this Indenture to
authentication by the Trustee includes 

 10
 

 

authentication
by such agent.  An authenticating agent
has the same rights as an Agent to deal with the Company or an Affiliate.

Section 2.4.            Registrar
and Paying Agent.

The Company shall maintain, with respect to each Series of Securities,
at the place or places specified with respect to such Series pursuant to
Section 2.2, an office or agency where Securities of such Series may be
presented or surrendered for payment (“Paying Agent”), where Securities of such
Series may be surrendered for registration of transfer or exchange (“Registrar”)
and where notices and demands to or upon the Company in respect of the Securities
of such Series and this Indenture may be served (“Service Agent”).  The Registrar shall keep a register with
respect to each Series of Securities and to their transfer and exchange.  The Company will give prompt written notice
to the Trustee of the name and address, and any change in the name or address,
of each Registrar, Paying Agent or Service Agent.  If at any time the Company shall fail to
maintain any such required Registrar, Paying Agent or Service Agent or shall
fail to furnish the Trustee with the name and address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

The Company may also from time to time designate one or more
co-registrars, additional paying agents or additional service agents and may
from time to time rescind such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligations to maintain a Registrar, Paying Agent and Service Agent in
each place so specified pursuant to Section 2.2 for Securities of any Series
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 name or address of any such co-registrar, additional
paying agent or additional service agent. 
The term “Registrar” includes any co-registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Service Agent” includes any
additional service agent.

The Company hereby appoints the Trustee the initial Registrar, Paying
Agent and Service Agent for each Series unless another Registrar, Paying Agent
or Service Agent, as the case may be, is appointed prior to the time Securities
of that Series are first issued.

Section 2.5.            Paying
Agent to Hold Money in Trust.

The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal of or interest on the Series of
Securities, and will notify the Trustee of any default by the Company in making
any such payment.  While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it
to the Trustee.  The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary) shall have no further
liability for the money.  If the Company
or a Subsidiary acts as Paying Agent, it shall segregate and hold in a 

 11
 

 

separate
trust fund for the benefit of Securityholders of any Series of Securities all
money held by it as Paying Agent.

Section 2.6.            Securityholder
Lists.

The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with
TIA  Section 312(a).  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee at least ten days before each interest
payment date and at such other times as the Trustee may request in writing a
list, in such form and as of such date as the Trustee may reasonably require,
of the names and addresses of Securityholders of each Series of Securities.

Section 2.7.            Transfer
and Exchange.

Where Securities of a Series are presented to the Registrar or a
co-registrar with a request to register a transfer or to exchange them for an
equal principal amount of Securities of the same Series, the Registrar shall
register the transfer or make the exchange if its requirements for such
transactions are met.  To permit
registrations of transfers and exchanges, the Trustee shall authenticate
Securities at the Registrar’s request. 
No service charge shall be made for any registration of transfer or
exchange (except as otherwise expressly permitted herein), but the Company may
require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such
transfer tax or similar governmental charge payable upon exchanges pursuant to
Sections 2.11, 3.6 or 9.6).

Neither the Company nor the Registrar shall be required (a) to issue,
register the transfer of, or exchange Securities of any Series for the period
beginning at the opening of business fifteen days immediately preceding the
mailing of a notice of redemption of Securities of that Series selected for
redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.

Section 2.8.            Mutilated,
Destroyed, Lost and Stolen Securities.

If any mutilated Security is surrendered to the Trustee, 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 (i) evidence
to their satisfaction of the destruction, loss or theft of any Security and
(ii) 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 make available for delivery, 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.

 12
 

 

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, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall
be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that Series duly issued hereunder.

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.

Section 2.9.            Outstanding
Securities.

The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest on a Global Security
effected by the Trustee in accordance with the provisions hereof and those
described in this Section as not outstanding.

If a Security is replaced pursuant to Section 2.8, it ceases to be
outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds on the Maturity of Securities of a Series money
sufficient to pay such Securities payable on that date, then on and after that
date such Securities of the Series cease to be outstanding and interest on them
ceases to accrue.

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

In determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Discount Security that shall be deemed to be outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as
of the date of such determination upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.2.

 13
 

 

 

Section 2.10.          Treasury
Securities.

In determining whether the Holders of the required principal amount of
Securities of a Series have concurred in any request, demand, authorization,
direction, notice, consent or waiver Securities of a Series owned by the
Company or an Affiliate shall be disregarded, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
request, demand, authorization, direction, notice, consent or waiver only
Securities of a Series that the Trustee knows are so owned shall be so
disregarded.

Section 2.11.          Temporary
Securities.

Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities upon a Company
Order.  Temporary Securities shall be
substantially in the form of definitive Securities but may have variations that
the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall
prepare and the Trustee upon request shall authenticate definitive Securities
of the same Series and date of maturity in exchange for temporary
Securities.  Until so exchanged,
temporary Securities shall have the same rights under this Indenture as the
definitive Securities.

Section 2.12.          Cancellation.

The Company at any time may deliver Securities to the Trustee for
cancellation.  The Registrar and the
Paying Agent shall forward to the Trustee any Securities surrendered to them
for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities
surrendered for transfer, exchange, payment, replacement or cancellation and
shall destroy such canceled Securities (subject to the record retention
requirement of the Exchange Act) and deliver a certificate of such destruction
to the Company, unless the Company otherwise directs.  The Company may not issue new Securities to
replace Securities that it has paid or delivered to the Trustee for
cancellation.

Section 2.13.          Defaulted
Interest.

If the Company defaults in a payment of interest on a Series of
Securities, it shall pay the defaulted interest, plus, to the extent permitted
by law, any interest payable on the defaulted interest, to the persons who are
Securityholders of the Series on a subsequent special record date.  The Company shall fix the record date and
payment date.  At least 30 days before
the record date, the Company shall mail to the Trustee and to each
Securityholder of the Series a notice that states the record date, the payment
date and the amount of interest to be paid.  The Company may pay defaulted interest in any
other lawful manner.

Section 2.14.          Global
Securities.

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

 14
 

 

2.14.2.     Transfer
and Exchange.  Notwithstanding any
provisions to the contrary contained in Section 2.7 of the Indenture and in
addition thereto, any Global Security shall be exchangeable pursuant to Section
2.7 of the Indenture for Securities registered in the names of Holders other
than the Depository for such Security or its nominee only if (i) such Depository
notifies the Company that it is unwilling or unable to continue as Depository
for such Global Security or if at any time such Depository ceases to be a
clearing agency registered under the Exchange Act, and, in either case, the
Company fails to appoint a successor Depository within 90 days of such event,
(ii) the Company executes and delivers to the Trustee an Officers’ Certificate
to the effect that such Global Security shall be so exchangeable or (iii) an
Event of Default with respect to the Securities represented by such Global
Security shall have happened and be continuing. 
Any Global Security that is exchangeable pursuant to the preceding
sentence shall be exchangeable for Securities registered in such names as the
Depository shall direct in writing in an aggregate principal amount equal to
the principal amount of the Global Security with like tenor and terms.

Except as provided in this Section 2.14.2, a Global Security may not be
transferred except as a whole by the Depository with respect to such Global
Security to a nominee of such Depository, by a nominee of such Depository to
such Depository or another nominee of such Depository or by the Depository or
any such nominee to a successor Depository or a nominee of such a successor
Depository.

2.14.3.     Legend.  Unless otherwise provided pursuant to Section
2.2, any Global Security issued hereunder shall bear a legend in substantially
the following form:

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

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

2.14.5.     Payments.  Notwithstanding the other provisions of this
Indenture, unless otherwise specified as contemplated by Section 2.2,
payment of the principal of, premium, if any, and interest, if any, on any
Global Security shall be made to the Holder thereof.

2.14.6.     Consents,
Declaration and Directions.  Except
as provided in Section 2.14.5, the Company, the Trustee and any Agent shall
treat a person as the Holder of such principal amount of outstanding Securities
of such Series represented by a Global Security as shall be specified in a
written statement of the Depository with respect to such Global Security, 

 15
 

 

for purposes of obtaining any consents, declarations, waivers or
directions required to be given by the Holders pursuant to this Indenture.

Section 2.15.          CUSIP
Numbers.

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

ARTICLE III.

REDEMPTION

Section 3.1.            Notice
to Trustee.

The Company may, with respect to any Series of Securities, reserve the
right to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the Stated Maturity
thereof at such time and on such terms as provided for in such Securities.  If a Series of Securities is redeemable and
the Company wants or is obligated to redeem prior to the Stated Maturity
thereof all or part of the Series of Securities pursuant to the terms of such
Securities, it shall notify the Trustee of the redemption date and the
principal amount of Series of Securities to be redeemed.  The Company shall give the notice at least 45
days before the redemption date (or such shorter notice as may be acceptable to
the Trustee).

Section 3.2.            Selection
of Securities to be Redeemed.

Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture or an Officers’ Certificate, if less than
all the Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed in any manner that the Trustee deems
fair and appropriate.  The Trustee shall
make the selection from Securities of the Series outstanding not previously
called for redemption.  The Trustee may
select for redemption portions of the principal of Securities of the Series
that have denominations larger than $2,000. 
Securities of the Series and portions of them it selects shall be in
amounts of $2,000 or whole multiples of $2,000 or, with respect to Securities
of any Series issuable in other denominations pursuant to Section 2.2.10, the
minimum principal denomination for each Series and integral multiples
thereof.  Provisions of this Indenture
that apply to Securities of a Series called for redemption also apply to
portions of Securities of that Series called for redemption.

Section 3.3.            Notice
of Redemption.

Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate, at
least 30 days but not more than 60 days before a redemption date, the Company
shall mail a notice of redemption by first-class mail 

 16
 

 

to
each Holder whose Securities are to be redeemed and if any Bearer Securities
are outstanding, publish on one occasion a notice in an Authorized Newspaper.

The notice shall identify the Securities of the Series to be redeemed
and shall state:

(a)           the redemption date;

(b)           the redemption
price;

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

(d)           that Securities of
the Series called for redemption must be surrendered to the Paying Agent to
collect the redemption price;

(e)           that interest on
Securities of the Series called for redemption ceases to accrue on and after
the redemption date; and

(f)            any other
information as may be required by the terms of the particular Series or the
Securities of a Series being redeemed.

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

Section 3.4.            Effect
of Notice of Redemption.

Once notice of redemption is mailed or published as provided in Section
3.3, Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price. 
A notice of redemption may not be conditional.  Upon surrender to the Paying Agent, such
Securities shall be paid at the redemption price plus accrued interest to the
redemption date.

Section 3.5.            Deposit
of Redemption Price.

On or before the redemption date, the Company shall deposit with the
Paying Agent money sufficient to pay the redemption price of and accrued
interest, if any, on all Securities to be redeemed on that date.

Section 3.6.            Securities
Redeemed in Part.

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

 17

 

ARTICLE IV.

COVENANTS

Section 4.1.            Payment
of Principal and Interest.

The Company covenants and agrees for the benefit of the Holders of each
Series of Securities that it will duly and punctually pay the principal of and
interest, if any, on the Securities of that Series in accordance with the terms
of such Securities and this Indenture.

Section 4.2.            SEC
Reports.

The Company shall deliver to the Trustee within 15 days after it files
them 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 by rules and regulations prescribe) which the Company is required to
file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act.  The Company also shall comply with the other
provisions of TIA Section 314(a).

Section 4.3.            Compliance
Certificate.

The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year of the Company, an Officers’ Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his knowledge the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the performance
or observance of any of the terms, provisions and conditions hereof (or, if a
Default or Event of Default shall have occurred, describing all such Defaults
or Events of Default of which he may have knowledge).

The Company will, so long as any of the Securities are outstanding,
deliver to the Trustee, forthwith upon becoming aware of any Default or Event
of Default, an Officers’ Certificate specifying such Default or Event of
Default and what action the Company is taking or proposes to take with respect
thereto.

Section 4.4.            Stay,
Extension and Usury Laws.

The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture or the Securities; and the Company (to the
extent it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law and covenants that it will not, by resort to any such law,
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 has been enacted.

 18
 

 

 

Section 4.5.            Corporate
Existence.

Subject to Article V, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate, partnership or other existence of each Significant
Subsidiary in accordance with the respective organizational documents of each
Significant Subsidiary and the rights (charter and statutory), licenses and
franchises of the Company and its Significant Subsidiaries; provided, however,
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any Significant
Subsidiary, if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company
and its Subsidiaries taken as a whole and that the loss thereof is not adverse
in any material respect to the Holders.

Section 4.6.            Taxes.

The Company shall, and shall cause each of its Significant Subsidiaries
to, pay prior to delinquency all taxes, assessments and governmental levies,
except as contested in good faith and by appropriate proceedings.

ARTICLE V.

SUCCESSORS

Section 5.1.            When
Company May Merge, Etc.

The Company shall not consolidate with or merge into, or convey,
transfer or lease all or substantially all of its properties and assets to, any
person (a “successor person”), and may not permit any person to merge into, or
convey, transfer or lease its properties and assets  substantially as an entirety to, the Company,
unless:

(a)           the successor person
(if any) is a corporation, partnership, trust or other entity organized and
validly existing under the laws of any U.S. domestic jurisdiction and expressly
assumes the Company’s obligations on the Securities and under this Indenture
and

(b)           immediately after
giving effect to the transaction, no Default or Event of Default, shall have
occurred and be continuing.

The Company shall deliver to the Trustee prior to the consummation of
the proposed transaction an Officers’ Certificate to the foregoing effect and
an Opinion of Counsel stating that the proposed transaction and such
supplemental indenture comply with this Indenture.

Section 5.2.            Successor
Corporation Substituted.

Upon any consolidation or merger, or any sale, lease, conveyance or
other disposition of all or substantially all of the assets of the Company in
accordance with Section 5.1, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such
sale, lease, conveyance or other disposition is made shall succeed to, 

 19
 

 

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 has been
named as the Company herein; provided, however, that the
predecessor Company in the case of a sale, lease, conveyance or other
disposition shall not be released from the obligation to pay the principal of
and interest, if any, on the Securities.

ARTICLE VI.

DEFAULTS AND REMEDIES

Section 6.1.            Events
of Default.

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

(a)           default in the
payment of any interest on any Security of that Series when it becomes due and
payable, and continuance of such default for a period of 30 days (unless the
entire amount of such payment is deposited by the Company with the Trustee or
with a Paying Agent prior to the expiration of such period of 30 days); or

(b)           default in the
payment of the principal of any Security of that Series at its Maturity; or

(c)           default in the
deposit of any sinking fund payment, within 30 days when and as due in respect
of any Security of that Series; or

(d)           default in the
performance or breach of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty that has been included in this
Indenture solely for the benefit of Series of Securities other than that
Series), which default continues uncured for a period of 90 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

(e)           the Company or any
of its Significant Subsidiaries pursuant to or within the meaning of any
Bankruptcy Law:

(i)            commences a voluntary case,

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

(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, or

 20
 

 

 

(v)           generally is unable to pay its debts
as the same become due; or

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

(i)            is for relief against the Company or
any of its Significant Subsidiaries in an involuntary case,

(ii)           appoints a Custodian of the Company
or any of its Significant Subsidiaries or for all or substantially all of its
property, or

(iii)          orders the liquidation of the Company
or any of its Significant Subsidiaries,

and the order or decree
remains unstayed and in effect for 60 days; or

(g)           any other Event of
Default provided with respect to Securities of that Series, which is specified
in a Board Resolution, a supplemental indenture hereto or an Officers’
Certificate, in accordance with Section 2.2.19.

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

Section 6.2.            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 (other than an Event of Default
referred to in Section 6.1(e) or (f)) then in every such case the Trustee or
the Holders of not less than 25% in principal amount of the outstanding
Securities of that Series may declare the principal amount (or, if any
Securities of that Series are Discount Securities, such portion of the
principal amount as may be specified in the terms of such Securities) of and
accrued and unpaid interest, if any, on 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) and accrued and unpaid interest, if any, shall
become immediately due and payable.  If
an Event of Default specified in Section 6.1(e) or (f) shall occur, the
principal amount (or specified amount) of and accrued and unpaid interest, if
any, on all outstanding Securities shall ipso facto
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holder.

At any time after such a declaration of acceleration with respect to
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
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

 21
 

 

 

(i)            all overdue interest, if any, on all
Securities of that Series,

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

(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 6.13.

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

Section 6.3.            Collection
of Indebtedness and Suits for Enforcement by Trustee.

The Company covenants that if

(a)           default is made in
the payment of any 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 principal of any Security at the Maturity thereof, or

(c)           default is made in
the deposit of any sinking fund payment when and as due by the terms of a
Security,

then, 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 interest
and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal or 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 

 22
 

 

final
decree and may enforce the same against the Company or any other obligor upon
such Securities and collect the moneys adjudged or deemed 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 any 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.

Section 6.4.            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 or the property of the Company or of such other obligor 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,

(a)           to file and prove a
claim for the whole amount of principal 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, in the event that 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 7.7.

Nothing herein contained 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, 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.

Section 6.5.            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 

 23
 

 

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.

Section 6.6.            Application
of Money Collected.

Any money collected by the Trustee pursuant to this Article 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 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 7.7; and

Second:  To the payment of the
amounts then due and unpaid for principal of 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 interest, respectively;
and

Third:     To the Company.

Section 6.7.            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 

 24
 

 

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.

Section 6.8.            Unconditional
Right of Holders to Receive Principal 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 interest, if any, on such Security on
the Stated Maturity or Stated 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.

Section 6.9.            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.

Section 6.10.          Rights
and Remedies Cumulative.

Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in Section 2.8, 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.

Section 6.11.          Delay
or Omission Not Waiver.

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 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.

Section 6.12.          Control
by Holders.

The Holders of 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 that

 25
 

 

(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, by a Responsible
Officer of the Trustee, determine that the proceeding so directed would involve
the Trustee in personal liability.

Section 6.13.          Waiver
of Past Defaults.

Subject to Section 6.2, 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 Default in
the payment of the principal of or interest on any Security of such Series
(provided, however, that the Holders of a majority in principal amount of the
outstanding Securities of any Series may rescind an acceleration and its
consequences, including any related payment default that resulted from such
acceleration).  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.

Section 6.14.          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 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 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 interest on any Security on or after the Stated Maturity or Stated
Maturities expressed in such Security (or, in the case of redemption, on the
redemption date).

ARTICLE VII.

TRUSTEE

Section 7.1.            Duties
of Trustee.

(a)           If an Event of
Default has occurred and is continuing, the Trustee shall exercise the rights
and powers vested in it by this Indenture and use the same degree of 

 26
 

 

care and skill
in their exercise as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

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

(i)            The Trustee need perform only those
duties that are specifically set forth in this Indenture and no others.

(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 Officers’ Certificates
or Opinions of Counsel furnished to the Trustee and conforming to the
requirements of this Indenture; however, in the case of any such
Officers’ Certificates or Opinions of Counsel which by any provisions hereof
are specifically required to be furnished to the Trustee, the Trustee shall
examine such Officers’ Certificates and Opinions of Counsel to determine
whether or not they conform to the requirements of this Indenture.

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

(i)            This paragraph does not limit the
effect of paragraph (b) 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 is
proved that the Trustee was negligent in ascertaining the pertinent facts.

(iii)          The Trustee shall not be liable with
respect to any action taken, suffered or omitted to be taken by it with respect
to Securities of any Series in good faith in accordance with the direction of
the Holders of a majority in principal amount of the outstanding Securities of
such Series 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.

(d)           Every provision of
this Indenture that in any way relates to the Trustee is subject to paragraph
(a), (b) and (c) of this Section.

(e)           The Trustee may
refuse to perform any duty or exercise any right or power unless it receives
indemnity satisfactory to it against any loss, liability or expense.

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

(g)           No provision of this
Indenture shall require the Trustee to risk its own funds or otherwise incur
any financial liability in the performance of any of its duties, or 

 27
 

 

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 is not reasonably assured to it.

(h)           The Paying Agent,
the Registrar and any authenticating agent shall be entitled to the protections
and immunities as are set forth in paragraphs (a), (b) and (c) of this Section
with respect to the Trustee.

Section 7.2.            Rights
of Trustee.

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

(b)           Before the Trustee
acts or refrains from acting, it may require an Officers’ Certificate or an
Opinion of Counsel.  The Trustee shall
not be liable for any action it takes or omits to take in good faith in
reliance on such Officers’ Certificate or Opinion of Counsel.

(c)           The Trustee may act
through agents and shall not be responsible for the misconduct or negligence of
any agent appointed with due care.  No
Depository shall be deemed an agent of the Trustee and the Trustee shall not be
responsible for any act or omission by any Depository.

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

(e)           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.

(f)            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 of Securities
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.

Section 7.3.            Individual
Rights of Trustee.

The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company or an Affiliate with the same rights it
would have if it were not Trustee.  Any
Agent may do the same with like rights. 
The Trustee is also subject to Sections 7.10 and 7.11.

 28
 

 

Section 7.4.            Trustee’s
Disclaimer.

The Trustee makes no representation as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Company’s
use of the proceeds from the Securities, and it shall not be responsible for
any statement in the Securities other than its authentication.

Section 7.5.            Notice
of Defaults.

If a Default or Event of Default occurs and is continuing with respect
to the Securities of any Series and if it is known to a Responsible Officer of
the Trustee, the Trustee shall mail to each Securityholder of the Securities of
that Series and, if any Bearer Securities are outstanding, publish on one
occasion in an Authorized Newspaper, notice of a Default or Event of Default
within 90 days after it occurs or, if later, after a Responsible Officer of the
Trustee has knowledge of such Default or Event of Default.  Except in the case of a Default or Event of
Default in payment of principal of or interest on any Security of any Series,
the Trustee may withhold the notice if and so long as its corporate trust
committee or a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of Securityholders of that
Series.

Section 7.6.            Reports
by Trustee to Holders.

Within 60 days after May 15 in each year, the Trustee shall transmit by
mail to all Securityholders, as their names and addresses appear on the
register kept by the Registrar and, if any Bearer Securities are outstanding,
publish in an Authorized Newspaper, a brief report dated as of such May 15, in
accordance with, and to the extent required under, TIA Section 313.

A copy of each report at the time of its mailing to Securityholders of
any Series shall be filed with the SEC and each stock exchange on which the
Securities of that Series are listed. 
The Company shall promptly notify the Trustee when Securities of any
Series are listed on any stock exchange.

Section 7.7.            Compensation
and Indemnity.

The Company shall pay to the Trustee from time to time reasonable
compensation for its services.  The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The Company
shall reimburse the Trustee upon request for all reasonable out-of-pocket
expenses incurred by it.  Such expenses
shall include the reasonable compensation and expenses of the Trustee’s agents
and counsel.

The Company shall indemnify the Trustee (including the cost of
defending itself) against any loss, liability or expense incurred by it except
as set forth in the next paragraph in the performance of its duties under this
Indenture as Trustee or Agent.  The
Trustee shall notify the Company promptly of any claim for which it may seek
indemnity.  The Company shall defend the
claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement
made without its consent, which consent shall not be unreasonably withheld.  This indemnification shall apply to officers,
directors, employees, shareholders and agents of the Trustee.

 29
 

 

The Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee or by any officer, director,
employee, shareholder or agent of the Trustee through negligence or bad faith.

To secure the Company’s payment obligations in this Section, the
Trustee shall have a lien prior to the Securities of any Series on all money or
property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Securities of that Series.

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

Section 7.8.            Replacement
of Trustee.

A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.

The Trustee may resign with respect to the Securities of one or more
Series by so notifying the Company.  The
Holders of a majority in principal amount of the Securities of any Series may
remove the Trustee with respect to that Series by so notifying the Trustee and
the Company.  The Company may remove the
Trustee with respect to Securities of one or more Series if:

(a)           the Trustee fails to
comply with Section 7.10;

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

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

(d)           the Trustee becomes
incapable of acting.

If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee.  Within one year after
the successor Trustee takes office, the Holders of a majority in principal amount
of the then outstanding Securities may appoint a successor Trustee to replace
the successor Trustee appointed by the Company.

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

 30
 

 

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

A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee
shall transfer all property held by it as Trustee to the successor Trustee
subject to the lien provided for in Section 7.7, the resignation or removal of
the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the Trustee with respect to each
Series of Securities for which it is acting as Trustee under this
Indenture.  A successor Trustee shall
mail a notice of its succession to each Securityholder of each such Series and,
if any Bearer Securities are outstanding, publish such notice on one occasion
in an Authorized Newspaper. 
Notwithstanding replacement of the Trustee pursuant to this Section 7.8,
the Company’s obligations under Section 7.7 hereof shall continue for the
benefit of the retiring trustee with respect to expenses and liabilities
incurred by it prior to such replacement.

Section 7.9.            Successor
Trustee by Merger, Etc.

If the Trustee consolidates with, merges or converts into, or transfers
all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee.

Section 7.10.          Eligibility;
Disqualification.

This Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1), (2) and (5).  The Trustee shall always have a combined capital
and surplus of at least $25,000,000 as set forth in its most recent published
annual report of condition.  The Trustee
shall comply with TIA Section 310(b).

Section 7.11.          Preferential
Collection of Claims Against Company.

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

ARTICLE VIII.

SATISFACTION AND DISCHARGE; DEFEASANCE

Section 8.1.            Satisfaction
and Discharge of Indenture.

This Indenture shall upon Company Order cease to be of further effect
(except as hereinafter provided in this Section 8.1), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

(a)           either

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(i)            all Securities theretofore
authenticated and delivered (other than Securities that have been destroyed,
lost or stolen and that have been replaced or paid) have been delivered to the Trustee
for cancellation; or

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

(1)           have become due and payable, or

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

(3)           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, or

(4)           are deemed paid and discharged pursuant to Section 8.3, as
applicable;

and
the Company, in the case of (1), (2) or (3) above, has deposited or caused to
be deposited with the Trustee as trust funds in trust an amount sufficient for
the purpose of paying and discharging the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or
to the Stated Maturity or redemption date, as the case may be;

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

(c)           the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 7.7, and, if money
shall have been deposited with the Trustee pursuant to clause (a) of this
Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1, 8.2 and 8.5 shall
survive.

Section 8.2.            Application
of Trust Funds; Indemnification.

(a)           Subject to the
provisions of Section 8.5, all money deposited with the Trustee pursuant to
Section 8.1, all money and U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all
money received by the Trustee in respect of U.S. Government Obligations or
Foreign Government Obligations deposited with the Trustee pursuant to Section
8.3 or 8.4, 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 

 32

 

Company acting
as its own Paying Agent) as the Trustee may determine, to the persons entitled
thereto, of the principal and interest for whose payment such money has been
deposited with or received by the Trustee or to make mandatory sinking fund
payments or analogous payments as contemplated by Sections 8.3 or 8.4.

(b)           The Company shall
pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations or Foreign
Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the
interest and principal received in respect of such obligations other than any
payable by or on behalf of Holders.

(c)           The Trustee shall
deliver or pay to the Company from time to time upon Company Request any U.S.
Government Obligations or Foreign Government Obligations or money held by it as
provided in Sections 8.3 or 8.4 which, in the opinion of a nationally
recognized firm of independent certified public accountants expressed in a
written certification thereof delivered to the Trustee, are then in excess of
the amount thereof which then would have been required to be deposited for the
purpose for which such U.S. Government Obligations or Foreign Government
Obligations or money were deposited or received.  This provision shall not authorize the sale
by the Trustee of any U.S. Government Obligations or Foreign Government
Obligations held under this Indenture.

Section 8.3.            Legal
Defeasance of Securities of any Series.

Unless this Section 8.3 is otherwise specified pursuant to Section
2.2.21 to be inapplicable to Securities of any Series, the Company shall be
deemed to have paid and discharged the entire indebtedness on all the
outstanding Securities of such Series on the 91st day after the date of the
deposit referred to in subparagraph (d) hereof, and the provisions of this
Indenture, as it relates to such outstanding Securities of such Series, shall
no longer be in effect (and the Trustee, at the expense of the Company, shall,
at Company Request, execute proper instruments acknowledging the same), except
as to:

(a)           the rights of
Holders of Securities of such Series to receive, from the trust funds described
in subparagraph (d) hereof, (i) payment of the principal of and each
installment of principal of and interest on the outstanding Securities of such
Series on the Stated Maturity of such principal or installment of principal or
interest and (ii) the benefit of any mandatory sinking fund payments applicable
to the Securities of such Series on the day on which such payments are due and
payable in accordance with the terms of this Indenture and the Securities of
such Series;

(b)           the provisions of
Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

(c)           the rights, powers,
trust and immunities of the Trustee hereunder;

provided
that, the following conditions shall have been satisfied:

(d)           the Company shall
have deposited or caused to be deposited irrevocably with the Trustee as trust
funds in trust for the purpose of making the following payments, 

 33
 

 

specifically
pledged as security for and dedicated solely to the benefit of the Holders of
such Securities (i) in the case of Securities of such Series denominated in
Dollars, cash in Dollars (or such other money or currencies as shall then be
legal tender in the United States) and/or U.S. Government Obligations, or (ii)
in the case of Securities of such Series denominated in a Foreign Currency
(other than a composite currency), money and/or Foreign Government Obligations,
which through the payment of interest and principal in respect thereof, in
accordance with their terms, will provide (and without reinvestment and
assuming no tax liability will be imposed on such Trustee), not later than one
day before the due date of any payment of money, an amount in cash, sufficient,
in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge each installment of principal (including
mandatory sinking fund or analogous payments) of and interest, if any, on all
the Securities of such Series on the dates such installments of interest or
principal are due;

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

(f)            no Default or Event
of Default with respect to the Securities of such Series shall have occurred
and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

(g)           the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel to the effect that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of
execution of this Indenture, there has been a change in the applicable Federal
income tax law, in either case to the effect that, and based thereon such
Opinion of Counsel shall confirm that, the Holders of the Securities of such
Series will not recognize income, gain or loss for Federal income tax purposes
as a result of such deposit, defeasance and discharge and will be subject to
Federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit, defeasance and discharge had
not occurred;

(h)           the Company shall
have delivered to the Trustee an Officers’ Certificate stating that the deposit
was not made by the Company with the intent of preferring the Holders of the
Securities of such Series over any other creditors of the company or with the
intent of defeating, hindering, delaying or defrauding any other creditors of
the Company;

(i)            such deposit shall
not result in the trust arising from such deposit constituting an investment
company (as defined in the Investment Company Act of 1940, as amended), or such
trust shall be qualified under such Act or exempt from regulation thereunder;
and

 34
 

 

(j)            the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent provided for relating to the
defeasance contemplated by this Section have been complied with.

Section 8.4.            Covenant
Defeasance.

Unless this Section 8.4 is otherwise specified pursuant to Section
2.2.21 to be inapplicable to Securities of any Series, on and after the 91st
day after the date of the deposit referred to in subparagraph (a) hereof, the
Company may omit to comply with any term, provision or condition set forth
under Sections 4.2, 4.3, 4.4, 4.5, 4.6, and 5.1 as well as any additional
covenants contained in a supplemental indenture hereto for a particular Series
of Securities or a Board Resolution or an Officers’ Certificate delivered
pursuant to Section 2.2.21 (and the failure to comply with any such covenants
shall not constitute a Default or Event of Default under Section 6.1) and the
occurrence of any event described in clause (e) of Section 6.1 shall not
constitute a Default or Event of Default hereunder, with respect to the
Securities of such Series, provided that the following conditions shall have
been satisfied:

(a)           With reference to
this Section 8.4, the Company has deposited or caused to be irrevocably
deposited (except as provided in Section 8.2(c)) with the Trustee as trust
funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of such Securities (i) in the case of Securities of
such Series denominated in Dollars, cash in Dollars (or such other money or
currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, or (ii) in the case of Securities of such Series
denominated in a Foreign Currency (other than a composite currency), money
and/or Foreign Government Obligations, which through the payment of interest
and principal in respect thereof, in accordance with their terms, will provide
(and without reinvestment and assuming no tax liability will be imposed on such
Trustee), not later than one day before the due date of any payment of money,
an amount in cash, sufficient, in the opinion of a nationally recognized firm
of independent certified public accountants expressed in a written
certification thereof delivered to the Trustee, to pay principal and interest,
if any, on and any mandatory sinking fund in respect of the Securities of such
Series on the dates such installments of interest or principal are due;

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

(c)           No Default or Event
of Default with respect to the Securities of such Series shall have occurred
and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

(d)           the Company shall
have delivered to the Trustee an Opinion of Counsel confirming that Holders of
the Securities of such Series will not recognize income, gain or loss for
federal income tax purposes as a result of such deposit and 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 deposit and defeasance had
not occurred;

 35
 

 

(e)           the Company shall
have delivered to the Trustee an Officers’ Certificate stating the deposit was
not made by the Company with the intent of preferring the Holders of the
Securities of such Series over any other creditors of the Company or with the
intent of defeating, hindering, delaying or defrauding any other creditors of
the Company; and

(f)            The Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for
relating to the defeasance contemplated by this Section have been complied with.

Section 8.5.            Repayment
to Company.

The Trustee and the Paying Agent shall pay to the Company upon request
any money held by them for the payment of principal and interest that remains
unclaimed for two years.  After that,
Securityholders entitled to the money must look to the Company for payment as
general creditors unless an applicable abandoned property law designates
another person.

Section 8.6.            Reinstatement.

If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with Sections 8.1, 8.3 or 8.4, as the case
may be, by reason of any legal proceeding or by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture
and the Securities shall be revived and reinstated as though no deposit had
occurred pursuant to Section 8.1, 8.3 or 8.4, as the case may be, until such
time as the Trustee or Paying Agent is permitted to apply all such money or
U.S. Government Obligations in accordance with Section 8.1, 8.3 or 8.4, as the
case may be; provided, however, that if the Company makes any
payment of principal of, premium, if any, or interest on any Securities because
of reinstatement of its obligations, the Company shall be subrogated to the
rights of the holders of such Securities to receive such payment from the money
or U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE IX.

AMENDMENTS AND WAIVERS

Section 9.1.            Without
Consent of Holders.

The Company and the Trustee may amend or supplement this Indenture or
the Securities of one or more Series without the consent of any Securityholder:

(a)           to cure any ambiguity, defect or
inconsistency;

(b)           to provide for uncertificated securities
in addition to or in place of certificated securities;

(c)           to provide for the assumption of our
obligations to holders of any debt security in the case of a merger or
consolidation or sale of all or substantially all of our assets;

 36
 

 

(d)           to make any change that would provide
any additional rights or benefits to the holders of securities or that does not
adversely affect the legal rights under the Indenture of any such holder;

(e)           to comply with requirements of the
SEC in order to effect or maintain the qualification of an indenture under the
Trust Indenture Act;

(f)            to conform the text of the
indentures to any provision of the Description of Debt Securities to the extent
that such provision in the Description of Debt Securities was intended to be a
verbatim recitation of a provision of the indentures;

(g)           to provide for the issuance of
additional securities in accordance with the limitations set forth in the
indenture as of the date of the indenture;

(h)           to allow any guarantor to execute a
supplemental indenture with respect to debt securities and to release
guarantors in accordance with the terms of the indenture; or

(i)            to add additional obligors under the
indenture and the securities.

The
consent of holders is not necessary under the indentures to approve the
particular form of any
proposed amendment. It is sufficient if such consent approves the substance of
the proposed amendment.

Section 9.2.            With
Consent of Holders.

The Company and the Trustee may enter into a supplemental indenture
with the written consent of the Holders of at least a majority in principal
amount of the outstanding Securities of each Series affected by such
supplemental indenture (including consents obtained in connection with a tender
offer or exchange offer for the Securities of such Series), for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the Securityholders of each such Series.  Except as provided in Section 6.13, the
Holders of at least a majority in principal amount of the outstanding
Securities of each Series affected by such waiver by notice to the Trustee
(including consents obtained in connection with a tender offer or exchange
offer for the Securities of such Series) may waive compliance by the Company
with any provision of this Indenture or the Securities with respect to such
Series.

It shall not be necessary for the consent of the Holders of Securities
under this Section 9.2 to approve the particular form of any proposed
supplemental indenture or waiver, but it shall be sufficient if such consent
approves the substance thereof.  After a
supplemental indenture or waiver under this section becomes effective, the
Company shall mail to the Holders of Securities affected thereby and, if any
Bearer Securities affected thereby are outstanding, publish on one occasion in
an Authorized Newspaper, a notice briefly describing the supplemental indenture
or waiver.  Any failure by the Company to
mail or publish such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture or waiver.

 37
 

 

Section 9.3.            Limitations.

Without the consent of each Securityholder affected, an amendment or
waiver may not:

(a)           change the amount of
Securities whose Holders must consent to an amendment, supplement or waiver;

(b)           reduce the rate of
or extend the time for payment of interest (including default interest) on any
Security;

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

(d)           reduce the principal
amount of Discount Securities payable upon acceleration of the maturity
thereof;

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

(f)            make the principal
of or interest, if any, on any Security payable in any currency other than that
stated in the Security;

(g)           make any change in
Sections 6.8, 6.13, 9.3 (this sentence), 10.15 or 10.16; or

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

Section 9.4.            Compliance
with Trust Indenture Act.

Every amendment to this Indenture or the Securities of one or more
Series shall be set forth in a supplemental indenture hereto that complies with
the TIA as then in effect.

Section 9.5.            Revocation
and Effect of Consents.

Until an amendment or waiver becomes effective, a consent to it by a
Holder of a Security is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security, even if notation of the consent is not made
on any Security.  However, any such
Holder or subsequent Holder may revoke the consent as to his Security or
portion of a Security if the Trustee receives the notice of revocation before
the date the amendment or waiver becomes effective.

 38
 

 

Any amendment or waiver once effective shall bind every Securityholder
of each Series affected by such amendment or waiver unless it is of the type
described in any of clauses (a) through (g) of Section 9.3.  In that case, the amendment or waiver shall
bind each Holder of a Security who has consented to it and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security.

Section 9.6.            Notation
on or Exchange of Securities.

The Trustee may place an appropriate notation about an amendment or
waiver on any Security of any Series thereafter authenticated.  The Company in exchange for Securities of
that Series may issue and the Trustee shall authenticate upon request new
Securities of that Series that reflect the amendment or waiver.

Section 9.7.            Trustee
Protected.

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 7.1) 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 shall sign all supplemental indentures, except that the
Trustee need not sign any supplemental indenture that adversely affects its
rights.

ARTICLE X.

MISCELLANEOUS

Section 10.1.          Trust
Indenture Act Controls.

If any provision of this Indenture limits, qualifies, or conflicts with
another provision which is required or deemed to be included in this Indenture
by the TIA, such required or deemed provision shall control.

Section 10.2.          Notices.

Any notice or communication by the Company or the Trustee to the other
is duly given if in writing and delivered in person or mailed by first-class
mail:

if
to the Company:

Conceptus, Inc.

331 East Evelyn Avenue

Mountain View, CA 94041

Attention: President and Chief Executive Officer

if
to the Trustee:

[Name of Trustee]

[Address]

 39
 

 

                                              

                                              

Attention:                              

The Company or the Trustee by notice to the other may designate
additional or different addresses for subsequent notices or communications.

Any notice or communication to a Securityholder shall be mailed by
first-class mail to his address shown on the register kept by the Registrar
and, if any Bearer Securities are outstanding, published in an Authorized
Newspaper.  Failure to mail a notice or
communication to a Securityholder of any Series or any defect in it shall not
affect its sufficiency with respect to other Securityholders of that or any
other Series.

If a notice or communication is mailed or published in the manner
provided above, within the time prescribed, it is duly given, whether or not
the Securityholder receives it.

If the Company mails a notice or communication to Securityholders, it
shall mail a copy to the Trustee and each Agent at the same time.

Section 10.3.          Communication
by Holders with Other Holders.

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

Section 10.4.          Certificate
and Opinion as to Conditions Precedent.

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

(a)           an Officers’
Certificate stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

(b)           an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

Section 10.5.          Statements
Required in Certificate or Opinion.

Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:

(a)           a statement that the
person making such certificate or opinion has read such covenant or condition;

 40
 

 

(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 such person, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and

(d)           a statement as to
whether or not, in the opinion of such person, such condition or covenant has
been complied with.

Section 10.6.          Rules
by Trustee and Agents.

The Trustee may make reasonable rules for action by or a meeting of
Securityholders of one or more Series. 
Any Agent may make reasonable rules and set reasonable requirements for
its functions.

Section 10.7.          Legal
Holidays.

Unless otherwise provided by Board Resolution, Officers’ Certificate or
supplemental indenture for a particular Series, a “Legal Holiday” is any day
that is not a Business Day.  If a payment
date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period.

Section 10.8.          No
Recourse Against Others.

A director, officer, employee or stockholder, as such, of the Company
shall not have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. 
Each Securityholder by accepting a Security waives and releases all such
liability.  The waiver and release are
part of the consideration for the issue of the Securities.

Section 10.9.          Counterparts.

This Indenture may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one and the same agreement.

Section 10.10.        Governing Laws.

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH
STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

 41
 

 

Section 10.11.        No Adverse Interpretation of Other Agreements.

This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or a Subsidiary. 
Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

Section 10.12.        Successors.

All agreements of the Company in this Indenture and the Securities
shall bind its successor.  All agreements
of the Trustee in this Indenture shall bind its successor.

Section 10.13.        Severability.

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.

Section 10.14.        Table of Contents, Headings, Etc.

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

Section 10.15.        Securities in a Foreign Currency or in ECU.

Unless otherwise specified in a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate delivered pursuant to Section 2.2
of this Indenture with respect to a particular Series of Securities, whenever
for purposes of this Indenture any action may be taken by the Holders of a
specified percentage in aggregate principal amount of Securities of all Series
or all Series affected by a particular action at the time outstanding and, at
such time, there are outstanding Securities of any Series which are denominated
in a coin or currency other than Dollars (including ECUs), 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 at such time.  For purposes of this Section 10.15, “Market
Exchange Rate” shall mean the noon Dollar buying rate in New York City for
cable transfers of that currency as published by the Federal Reserve Bank of
New York; provided, however, in the case of ECUs, Market Exchange
Rate shall mean the rate of exchange determined by the Commission of the
European Union (or any successor thereto) as published in the Official Journal
of the European Union (such publication or any successor publication, the “Journal”).  If such Market Exchange Rate is not available
for any reason with respect to such currency, the Trustee shall use, in its
sole discretion and without liability on its part, such quotation of the
Federal Reserve Bank of New York or, in the case of ECUs, the rate of exchange
as published in the Journal, as of the most recent available date, or
quotations or, in the case of ECUs, rates of exchange from one or more major
banks in The City of New York or in the country of issue of the currency in
question or, in the case of ECUs, in Luxembourg or such other quotations or, in
the case of ECUs, rates of exchange as the Trustee, upon consultation with the
Company, shall deem appropriate.  The
provisions of this paragraph shall apply in determining the equivalent
principal amount in respect of Securities of a Series 

 42
 

 

denominated
in currency other than Dollars in connection with any action taken by Holders
of Securities pursuant to the terms of this Indenture.

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

Section 10.16.        Judgment Currency.

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

ARTICLE XI.

SINKING FUNDS

Section 11.1.          Applicability
of Article.

The provisions of this Article shall be applicable to any sinking fund
for the retirement of the Securities of a Series, except as otherwise permitted
or required by any form of Security of such Series issued pursuant to this
Indenture.

The minimum amount of any sinking fund payment provided for by the
terms of the Securities of any Series is herein referred to as a “mandatory
sinking fund payment” and any other amount provided for by the terms of
Securities of such Series is herein referred to as an “optional sinking fund
payment.”  If provided for by the terms
of Securities of any Series, the 

 43
 

 

cash
amount of any sinking fund payment may be subject to reduction as provided in
Section 11.2.  Each sinking fund payment
shall be applied to the redemption of Securities of any Series as provided for
by the terms of the Securities of such Series.

Section 11.2.          Satisfaction
of Sinking Fund Payments with Securities.

The Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of any Series to be made pursuant to the
terms of such Securities (1) deliver outstanding Securities of such Series to
which such sinking fund payment is applicable (other than any of such Securities
previously called for mandatory sinking fund redemption) and (2) apply as
credit Securities of such Series to which such sinking fund payment is
applicable and which have been redeemed either at the election of the Company
pursuant to the terms of such Series of Securities (except pursuant to any
mandatory sinking fund) or through the application of permitted optional
sinking fund payments or other optional redemptions pursuant to the terms of
such Securities, provided that such Securities have not been previously so
credited.  Such Securities shall be
received by the Trustee, together with an Officers’ Certificate with respect
thereto, not later than 15 days prior to the date on which the Trustee begins
the process of selecting Securities for redemption, and shall be credited for
such purpose by the Trustee at the 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. 
If as a result of the delivery or credit of Securities in lieu of cash
payments pursuant to this Section 11.2, the principal amount of Securities of
such Series to be redeemed in order to exhaust the aforesaid cash payment shall
be less than $100,000, the Trustee need not call Securities of such Series for
redemption, except upon receipt of a Company Order that such action be taken,
and such cash payment shall be held by the Trustee or a Paying Agent and
applied to the next succeeding sinking fund payment, provided, however,
that the Trustee or such Paying Agent shall from time to time upon receipt of a
Company Order pay over and deliver to the Company any cash payment so being
held by the Trustee or such Paying Agent upon delivery by the Company to the
Trustee of Securities of that Series purchased by the Company having an unpaid
principal amount equal to the cash payment required to be released to the
Company.

Section 11.3.          Redemption
of Securities for Sinking Fund.

Not less than 45 days (unless otherwise indicated in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate in respect
of a particular Series of Securities) prior to each sinking fund payment date
for any Series of Securities, the Company will deliver to the Trustee an
Officers’ Certificate specifying the amount of the next ensuing mandatory
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
of Securities of that Series pursuant to Section 11.2, and the optional amount,
if any, to be added in cash to the next ensuing mandatory sinking fund payment,
and the Company shall thereupon be obligated to pay the amount therein
specified.  Not less than 30 days (unless
otherwise indicated in the Board Resolution, Officers’ Certificate or
supplemental indenture in respect of a particular Series of Securities) 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 3.2 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 3.3.

 44
 

 

Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

 45

 

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

	
   

  	
  CONCEPTUS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name of Trustee]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:EXHIBIT
4.5

FORM OF
SUBORDINATED INDENTURE TO BE ENTERED INTO BETWEEN

THE COMPANY AND A TRUSTEE TO BE NAMED

 

 

CONCEPTUS, INC.

INDENTURE

Dated as of
                  ,
200    

[Name of Trustee]

Trustee

 

 

TABLE
OF CONTENTS

	
  

  	
   

  	
  Page

  
	
  ARTICLE I. DEFINITIONS AND INCORPORATION BY
  REFERENCE

  	
  1

  
	
  Section 1.1.

  	
  Definitions 

  	
  1

  
	
  Section 1.2.

  	
  Other Definitions 

  	
  6

  
	
  Section 1.3.

  	
  Incorporation by Reference of Trust Indenture Act 

  	
  6

  
	
  Section 1.4.

  	
  Rules of Construction 

  	
  7

  
	
  ARTICLE II. THE SECURITIES

  	
  7

  
	
  Section 2.1.

  	
  Issuable in Series 

  	
  7

  
	
  Section 2.2.

  	
  Establishment of Terms of Series of Securities 

  	
  8

  
	
  Section 2.3.

  	
  Execution and Authentication 

  	
  10

  
	
  Section 2.4.

  	
  Registrar and Paying Agent 

  	
  11

  
	
  Section 2.5.

  	
  Paying Agent to Hold Money in Trust 

  	
  11

  
	
  Section 2.6.

  	
  Securityholder Lists 

  	
  12

  
	
  Section 2.7.

  	
  Transfer and Exchange 

  	
  12

  
	
  Section 2.8.

  	
  Mutilated, Destroyed, Lost and Stolen Securities 

  	
  12

  
	
  Section 2.9.

  	
  Outstanding Securities 

  	
  13

  
	
  Section 2.10.

  	
  Treasury Securities 

  	
  14

  
	
  Section 2.11.

  	
  Temporary Securities 

  	
  14

  
	
  Section 2.12.

  	
  Cancellation 

  	
  14

  
	
  Section 2.13.

  	
  Defaulted Interest 

  	
  14

  
	
  Section 2.14.

  	
  Global Securities 

  	
  14

  
	
  Section 2.15.

  	
  CUSIP Numbers 

  	
  16

  
	
  ARTICLE III. REDEMPTION

  	
   

  	
  16

  
	
  Section 3.1.

  	
  Notice to Trustee 

  	
  16

  
	
  Section 3.2.

  	
  Selection of Securities to be Redeemed 

  	
  16

  
	
  Section 3.3.

  	
  Notice of Redemption 

  	
  16

  
	
  Section 3.4.

  	
  Effect of Notice of Redemption 

  	
  17

  
	
  Section 3.5.

  	
  Deposit of Redemption Price 

  	
  17

  
	
  Section 3.6.

  	
  Securities Redeemed in Part 

  	
  17

  
	
  ARTICLE IV. COVENANTS

  	
   

  	
  17

  
	
  Section 4.1.

  	
  Payment of Principal and Interest 

  	
  18

  
	
  Section 4.2.

  	
  SEC Reports 

  	
  18

  
	
  Section 4.3.

  	
  Compliance Certificate 

  	
  18

  
	
  Section 4.4.

  	
  Stay, Extension and Usury Laws 

  	
  18

  
	
  Section 4.5.

  	
  Corporate Existence 

  	
  18

  
	
  Section 4.6.

  	
  Taxes 

  	
  19

  
	
  ARTICLE V. SUCCESSORS

  	
   

  	
  19

  
	
  Section 5.1.

  	
  When Company May Merge, Etc. 

  	
  19

  
	
  Section 5.2.

  	
  Successor Corporation Substituted 

  	
  19

  
	
  ARTICLE VI. DEFAULTS AND REMEDIES

  	
  20

  
	
  Section 6.1.

  	
  Events of Default 

  	
  20

  
	
  Section 6.2.

  	
  Acceleration of Maturity; Rescission and Annulment 

  	
  21

  
	
  Section 6.3.

  	
  Collection of Indebtedness and Suits for Enforcement
  by Trustee 

  	
  22

  
	
  Section 6.4.

  	
  Trustee May File Proofs of Claim 

  	
  23

  

 

 i
 

 

 

	
  Section 6.5.

  	
  Trustee May Enforce Claims Without Possession of
  Securities 

  	
  23

  
	
  Section 6.6.

  	
  Application of Money Collected 

  	
  24

  
	
  Section 6.7.

  	
  Limitation on Suits 

  	
  24

  
	
  Section 6.8.

  	
  Unconditional Right of Holders to Receive Principal
  and Interest 

  	
  25

  
	
  Section 6.9.

  	
  Restoration of Rights and Remedies 

  	
  25

  
	
  Section 6.10.

  	
  Rights and Remedies Cumulative 

  	
  25

  
	
  Section 6.11.

  	
  Delay or Omission Not Waiver 

  	
  25

  
	
  Section 6.12.

  	
  Control by Holders 

  	
  25

  
	
  Section 6.13.

  	
  Waiver of Past Defaults 

  	
  26

  
	
  Section 6.14.

  	
  Undertaking for Costs 

  	
  26

  
	
  ARTICLE VII. TRUSTEE

  	
   

  	
  26

  
	
  Section 7.1.

  	
  Duties of Trustee 

  	
  26

  
	
  Section 7.2.

  	
  Rights of Trustee 

  	
  28

  
	
  Section 7.3.

  	
  Individual Rights of Trustee 

  	
  28

  
	
  Section 7.4.

  	
  Trustee’s Disclaimer 

  	
  28

  
	
  Section 7.5.

  	
  Notice of Defaults 

  	
  29

  
	
  Section 7.6.

  	
  Reports by Trustee to Holders 

  	
  29

  
	
  Section 7.7.

  	
  Compensation and Indemnity 

  	
  29

  
	
  Section 7.8.

  	
  Replacement of Trustee 

  	
  30

  
	
  Section 7.9.

  	
  Successor Trustee by Merger, Etc. 

  	
  31

  
	
  Section 7.10.

  	
  Eligibility; Disqualification 

  	
  31

  
	
  Section 7.11.

  	
  Preferential Collection of Claims Against Company 

  	
  31

  
	
  ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE

  	
  31

  
	
  Section 8.1.

  	
  Satisfaction and Discharge of Indenture 

  	
  31

  
	
  Section 8.2.

  	
  Application of Trust Funds; Indemnification 

  	
  32

  
	
  Section 8.3.

  	
  Legal Defeasance of Securities of any Series 

  	
  33

  
	
  Section 8.4.

  	
  Covenant Defeasance 

  	
  34

  
	
  Section 8.5.

  	
  Repayment to Company 

  	
  36

  
	
  ARTICLE IX. AMENDMENTS AND WAIVERS

  	
  36

  
	
  Section 9.1.

  	
  Without Consent of Holders 

  	
  36

  
	
  Section 9.2.

  	
  With Consent of Holders 

  	
  37

  
	
  Section 9.3.

  	
  Limitations 

  	
  37

  
	
  Section 9.4.

  	
  Compliance with Trust Indenture Act 

  	
  38

  
	
  Section 9.5.

  	
  Revocation and Effect of Consents 

  	
  38

  
	
  Section 9.6.

  	
  Notation on or Exchange of Securities 

  	
  38

  
	
  Section 9.7.

  	
  Trustee Protected 

  	
  38

  
	
  ARTICLE X. MISCELLANEOUS

  	
  39

  
	
  Section 10.1.

  	
  Trust Indenture Act Controls 

  	
  39

  
	
  Section 10.2.

  	
  Notices 

  	
  39

  
	
  Section 10.3.

  	
  Communication by Holders with Other Holders 

  	
  40

  
	
  Section 10.4.

  	
  Certificate and Opinion as to Conditions Precedent 

  	
  40

  
	
  Section 10.5.

  	
  Statements Required in Certificate or Opinion 

  	
  40

  
	
  Section 10.6.

  	
  Rules by Trustee and Agents 

  	
  40

  
	
  Section 10.7.

  	
  Legal Holidays 

  	
  41

  
	
  Section 10.8.

  	
  No Recourse Against Others 

  	
  41

  
	
  Section 10.9.

  	
  Counterparts 

  	
  41

  

 

 ii
 

 

 

	
  Section 10.10.

  	
  Governing Laws 

  	
  41

  
	
  Section 10.11.

  	
  No Adverse Interpretation of Other Agreements 

  	
  41

  
	
  Section 10.12.

  	
  Successors 

  	
  41

  
	
  Section 10.13.

  	
  Severability 

  	
  41

  
	
  Section 10.14.

  	
  Table of Contents, Headings, Etc. 

  	
  42

  
	
  Section 10.15.

  	
  Securities in a Foreign Currency or in ECU 

  	
  42

  
	
  Section 10.16.

  	
  Judgment Currency 

  	
  42

  
	
  ARTICLE XI. SINKING FUNDS

  	
  43

  
	
  Section 11.1.

  	
  Applicability of Article 

  	
  43

  
	
  Section 11.2.

  	
  Satisfaction of Sinking Fund Payments with
  Securities 

  	
  43

  
	
  Section 11.3.

  	
  Redemption of Securities for Sinking Fund 

  	
  44

  
	
  ARTICLE XII. SUBORDINATION OF SECURITIES

  	
  44

  
	
  Section 12.1.

  	
  Agreement of Subordination 

  	
  44

  
	
  Section 12.2.

  	
  Payments to Holders 

  	
  45

  
	
  Section 12.3.

  	
  Subrogation of Securities 

  	
  47

  
	
  Section 12.4.

  	
  Authorization to Effect Subordination 

  	
  48

  
	
  Section 12.5.

  	
  Notice to Trustee 

  	
  48

  
	
  Section 12.6.

  	
  Trustee’s Relation to Senior Indebtedness 

  	
  49

  
	
  Section 12.7.

  	
  No Impairment of Subordination 

  	
  50

  
	
  Section 12.8.

  	
  Article Applicable to Paying Agents 

  	
  50

  
	
  Section 12.9.

  	
  Senior Indebtedness Entitled to Rely 

  	
  50

  

 

 iii
 

 

 

CONCEPTUS,
INC.

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of               ,
200       

	
  Section 310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.10

  
	
  Section 311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  Not Applicable

  
	
  Section 312(a)

  	
   

  	
  2.6

  
	
  (b)

  	
   

  	
  10.3

  
	
  (c)

  	
   

  	
  10.3

  
	
  Section 313(a)

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
  7.6

  
	
  (b)(2)

  	
   

  	
  7.6

  
	
  (c)(1)

  	
   

  	
  7.6

  
	
  (d)

  	
   

  	
  7.6

  
	
  Section 314(a)

  	
   

  	
  4.2, 10.5

  
	
  (b)

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
  10.4

  
	
  (c)(2)

  	
   

  	
  10.4

  
	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
  10.5

  
	
  (f)

  	
   

  	
  Not Applicable

  
	
  Section 315(a)

  	
   

  	
  7.1

  
	
  (b)

  	
   

  	
  7.5

  
	
  (c)

  	
   

  	
  7.1

  
	
  (d)

  	
   

  	
  7.1

  
	
  (e)

  	
   

  	
  6.14

  
	
  Section 316(a)

  	
   

  	
  2.10

  
	
  (a)(1)(A)

  	
   

  	
  6.12

  
	
  (a)(1)(B)

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
  6.8

  
	
  Section 317(a)(1)

  	
   

  	
  6.3

  
	
  (a)(2)

  	
   

  	
  6.4

  
	
  (b)

  	
   

  	
  2.5

  
	
  Section 318(a)

  	
   

  	
  10.1

  

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

 

 iv

 

 

Indenture dated as of                          ,
200       between Conceptus, Inc., a Delaware
corporation (“Company”), and [Name of Trustee], a                                                     (“Trustee”).

Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Securities issued under
this Indenture.

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.1.            Definitions.

“Additional Amounts” means any additional amounts that are required
hereby or by any Security, under circumstances specified herein or therein, to
be paid by the Company in respect of certain taxes imposed on Holders specified
therein and that are owing to such Holders.

“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
the purposes of this definition, “control” (including, with correlative
meanings, the terms “controlled by” and “under common control with”), as used
with respect to any person, shall mean 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 or by agreement
or otherwise.

“Agent” means any Registrar, Paying Agent, Service Agent or
authenticating agent.

“Authorized Newspaper” means a newspaper in an official language of the
country of publication customarily published at least once a day for at least
five days in each calendar week and of general circulation in the place in
connection with which the term is used. 
If it shall be impractical to make any publication of any notice
required hereby in an Authorized Newspaper, any publication or other notice in
lieu thereof that is made or given by the Trustee shall constitute a sufficient
publication of such notice.

“Bearer” means anyone in possession from time to time of a Bearer
Security.

“Bearer Security” means any Security, including any interest coupon
appertaining thereto, that does not provide for the identification of the
Holder thereof.

“Board of Directors” means the Board of Directors of the Company or any
duly authorized committee thereof.

“Board Resolution” means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been adopted by the
Board of Directors or pursuant to authorization by the Board of Directors and
to be in full force and effect on the date of the certificate, and delivered to
the Trustee.

“Business Day” means, unless otherwise provided by Board Resolution,
Officers’ Certificate or supplemental indenture hereto for a particular Series,
any day except a Saturday, 

 1
 

 

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

“Company” means the party named as such above until a successor
replaces it and thereafter means the successor.

“Company Order” means a written order signed in the name of the Company
by two Officers, one of whom must be the Company’s chief executive officer,
chief financial officer or principal accounting officer.

“Company Request” means a written request signed in the name of the
Company by its Chairman of the Board, a President or a Vice President, and by
its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary,
and delivered to the Trustee.

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

 “Debt” of any person as of any
date means, without duplication, all indebtedness of such person in respect of
borrowed money, including all interest, fees and expenses owed in respect
thereto (whether or not the recourse of the lender is to the whole of the
assets of such person or only to a portion thereof), or evidenced by bonds,
notes, debentures or similar instruments.

“Default” means any event that is, or after notice or passage of time
would be, an Event of Default.

“Depository” means, with respect to the Securities of any Series
issuable or issued in whole or in part in the form of one or more Global
Securities, the person designated as Depository for such Series by the Company,
which Depository shall be a clearing agency registered under the Exchange Act;
and if at any time there is more than one such person, “Depository” as used
with respect to the Securities of any Series shall mean the Depository with respect
to the Securities of such Series.

“Designated Senior Indebtedness” means any of our senior indebtedness
that expressly provides that it is “designated senior indebtedness” for
purposes of this Indenture (provided that the instrument, agreement or other
document creating or evidencing such Senior Indebtedness may place limitations
and conditions on the right of such Senior Indebtedness to exercise the rights
of Designated Senior Indebtedness).

“Discount Security” means any Security that provides for an amount less
than the stated principal amount thereof to be due and payable upon declaration
of acceleration of the maturity thereof pursuant to Section 6.2.

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

“ECU” means the European Currency Unit as determined by the Commission
of the European Union.

 2
 

 

 

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

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

“Foreign Government Obligations” means with respect to Securities of
any Series that are denominated in a Foreign Currency, (i) direct obligations
of the government that issued or caused to be issued such currency for the
payment of which obligations its full faith and credit is pledged or (ii)
obligations of a person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not callable
or redeemable at the option of the issuer thereof.

“Global Security” or “Global Securities” means a Security or
Securities, as the case may be, in the form established pursuant to
Section 2.2 evidencing all or part of a Series of Securities, issued to
the Depository for such Series or its nominee, and registered in the name of
such Depository or nominee.

“Holder” or “Securityholder” means a person in whose name a Security is
registered or the holder of a Bearer Security.

“indebtedness” means, with respect to any person, and without
duplication, (a) all indebtedness, obligations and other liabilities
(contingent or otherwise) of such person for borrowed money (including
obligations of the Company in respect of overdrafts, foreign exchange
contracts, currency exchange agreements, interest rate protection agreements,
and any loans or advances from banks, whether or not evidenced by notes or
similar instruments) or evidenced by bonds, debentures, notes or similar
instruments (whether or not the recourse of the lender is to the whole of the
assets of such person or to only a portion thereof) (other than any account
payable or other accrued current liability or obligation incurred in the
ordinary course of business in connection with the obtaining of materials or
services), (b) all reimbursement obligations and other liabilities (contingent
or otherwise) of such person with respect to letters of credit, bank guarantees
or bankers’ acceptances, (c) all obligations and liabilities (contingent or
otherwise) in respect of leases of such person required, in conformity with
generally accepted accounting principles, to be accounted for as capitalized
lease obligations on the balance sheet of such person and all obligations and
other liabilities (contingent or otherwise) under any lease or related document
(including a purchase agreement) in connection with the lease of real property
which provides that such person is contractually obligated to purchase or cause
a third party to purchase the leased property and thereby guarantee a minimum
residual value of the leased property to the lessor and the obligations of such
person under such lease or related document to purchase or to cause a third
party to purchase such leased property, (d) all obligations of such person
(contingent or otherwise) with respect to an interest rate or other swap, cap
or collar agreement or other similar instrument or agreement or foreign
currency hedge, exchange, purchase or similar instrument or agreement, (e) all
direct or indirect guaranties or similar agreements by such person in respect
of, and obligations or liabilities (contingent or otherwise) of such person to
purchase or otherwise acquire or otherwise assure a creditor against loss in
respect of indebtedness, obligations or liabilities of another person of the
kind described in clauses (a) through (d), (f) any indebtedness or other
obligations described in clauses (a) through 

 3
 

 

(e)
secured by any mortgage, pledge, lien or other encumbrance existing on property
which is owned or held by such person, regardless of whether the indebtedness
or other obligation secured thereby shall have been assumed by such person and
(g) any and all refinancings, replacements, deferrals, renewals, extensions and
refundings of, or amendments, modifications or supplements to, any
indebtedness, obligation or liability of the kind described in clauses (a)
through (f).

“Indenture” means this Indenture as amended from time to time and shall
include the form and terms of particular Series of Securities established as
contemplated hereunder.

“interest” with respect to any Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

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

“Officer” means the Chairman of the Board, any President, any
Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any
Assistant Secretary of the Company.

“Officers’ Certificate” means a certificate signed by two Officers, one
of whom must be the Company’s principal executive officer, principal financial
officer or principal accounting officer.

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

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

“principal” of a Security means the principal of the Security plus,
when appropriate, the premium, if any, on, and any Additional Amounts in
respect of, the Security.

“Representative” means the (a) indenture trustee or other trustee,
agent or representative for any Senior Indebtedness or (b) with respect to any
Senior Indebtedness that does not have any such trustee, agent or other
representative, (i) in the case of such Senior Indebtedness issued pursuant to
an agreement providing for voting arrangements as among the holders or owners
of such Senior Indebtedness, any holder or owner of such Senior Indebtedness
acting with the consent of the required persons necessary to bind such holders
or owners of such Senior Indebtedness and (ii) in the case of all other such
Senior Indebtedness, the holder or owner of such Senior Indebtedness.

“Responsible Officer” means any officer of the Trustee in its Corporate
Trust Office and also means, with respect to a particular corporate trust
matter, any other officer to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with a particular subject.

 4
 

 

 

 “SEC” means the Securities and
Exchange Commission.

“Securities” means the debentures, notes or other debt instruments of
the Company of any Series authenticated and delivered under this Indenture.

“Senior Indebtedness” means the principal, premium, if any, interest,
including any interest accruing after bankruptcy, and rent or termination
payment on or other amounts due on our current or future Indebtedness, whether
created, incurred, assumed, guaranteed or in effect guaranteed by us, including
any deferrals, renewals, extensions, refundings, amendments, modifications or
supplements to the above.  However,
Senior Indebtedness does not include: (i) Indebtedness that expressly provides
that it shall not be senior in right of payment to the Securities or expressly
provides that it is on the same basis or junior to the Securities; (ii) our
indebtedness to any of our majority-owned subsidiaries; and (iii) the
Securities.

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

“Significant Subsidiary” means (i) any direct or indirect Subsidiary of
the Company that would be a “significant subsidiary” as defined in
Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to
the Securities Act of 1933, as amended, as such regulation is in effect on the
date hereof, or (ii) any group of direct or indirect Subsidiaries of the
Company that, taken together as a group, would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act of 1933, as amended, as such regulation is in
effect on the date hereof.

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

“Subsidiary” of any specified person means any corporation of which at
least a majority of the outstanding stock having by the terms thereof ordinary
voting power for the election of directors of such corporation (irrespective of
whether or not at the time stock of any other class or classes of such
corporation shall have or might have voting power by reason of the happening of
any contingency) is at the time directly or indirectly owned by such person, or
by one or more other Subsidiaries, or by such person and one or more other
Subsidiaries.

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code
Sections 77aaa-77bbbb) as in effect on the date of this Indenture;
provided, however, that in the event the Trust Indenture Act of 1939 is amended
after such date, “TIA” means, to the extent required by any such amendment, the
Trust Indenture Act as so amended.

“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.

 5
 

 

 

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

Section 1.2.            Other
Definitions.

	
  TERM

  	
   

  	
  DEFINED IN

  SECTION

  
	
   

  	
   

  	
   

  
	
  “Bankruptcy Law”

  	
   

  	
  6.1

  
	
  “Custodian”

  	
   

  	
  6.1

  
	
  “Event of Default”

  	
   

  	
  6.1

  
	
  “Journal”

  	
   

  	
  10.15

  
	
  “Judgment Currency”

  	
   

  	
  10.16

  
	
  “Legal Holiday”

  	
   

  	
  10.7

  
	
  “mandatory sinking fund
  payment”

  	
   

  	
  11.1

  
	
  “Market Exchange Rate”

  	
   

  	
  10.15

  
	
  “New York Banking Day”

  	
   

  	
  10.16

  
	
  “optional sinking fund
  payment”

  	
   

  	
  11.1

  
	
  “Paying Agent”

  	
   

  	
  2.4

  
	
  “Payment Blockage
  Notice”

  	
   

  	
  12.2

  
	
  “Registrar”

  	
   

  	
  2.4

  
	
  “Required Currency”

  	
   

  	
  10.16

  
	
  “Service Agent”

  	
   

  	
  2.4

  
	
  “successor person”

  	
   

  	
  5.1

  

 

Section 1.3.            Incorporation
by Reference of Trust Indenture Act.

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

“Commission” means the SEC.

“indenture securities” means
the Securities.

“indenture security holder”
means a Securityholder.

 6
 

 

 

“indenture to be qualified”
means this Indenture.

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

“obligor” on the indenture
securities means the Company and any successor obligor upon the Securities.

All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the
TIA and not otherwise defined herein are used herein as so defined.

Section 1.4.            Rules
of Construction.

Unless the context otherwise requires:

(a)           a term has the
meaning assigned to it;

(b)           an accounting term
not otherwise defined has the meaning assigned to it in accordance with
generally accepted accounting principles;

(c)           references to “generally
accepted accounting principles” shall mean generally accepted accounting
principles in effect as of the time when and for the period as to which such
accounting principles are to be applied;

(d)           “or” is not
exclusive;

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

(f)            provisions apply to
successive events and transactions.

ARTICLE II.

THE SECURITIES

Section 2.1.            Issuable
in Series.

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

 7
 

 

 

Section 2.2.            Establishment
of Terms of Series of Securities.

At or prior to the issuance of any Securities within a Series, the
following shall be established (as to the Series generally, in the case of
Subsection 2.2.1 and either as to such Securities within the Series or as
to the Series generally in the case of Subsections 2.2.2 through 2.2.22) by
a Board Resolution, a supplemental indenture or an Officers’ Certificate
pursuant to authority granted under a Board Resolution:

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

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

2.2.3.       any
limit upon the aggregate principal amount of the Securities of the Series which
may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the Series pursuant to
Section 2.7, 2.8, 2.11, 3.6 or 9.6);

2.2.4.       the
date or dates on which the principal of the Securities of the Series is
payable;

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

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

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

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

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

 8
 

 

 

2.2.10.     if
other than denominations of $2,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be issuable;

2.2.11.     the
forms of the Securities of the Series in bearer or fully registered form (and,
if in fully registered form, whether the Securities will be issuable as Global
Securities);

2.2.12.     if
other than the principal amount thereof, the portion of the principal amount of
the Securities of the Series that shall be payable upon declaration of
acceleration of the maturity thereof pursuant to Section 6.2;

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

2.2.14.     the
designation of the currency, currencies or currency units in which payment of
the principal of and interest, if any, on the Securities of the Series will be
made;

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

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

2.2.17.     the
provisions, if any, relating to any security provided for the Securities of the
Series;

2.2.18.     if
the holders of Securities of the Series may convert or exchange the Securities
into or for securities of the Issuer or of other entities or other property,
the period or periods within which, the rate or rates at which and the terms
and conditions upon which Securities of the Series may be converted or
exchanged, in whole or in part;

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

2.2.20.     any
addition to or change in the covenants set forth in Articles IV or V which
applies to Securities of the Series;

2.2.21.     any
other terms of the Securities of the Series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 9.1, but which may modify or delete any provision of this
Indenture insofar as it applies to such Series); and

 9
 

 

 

2.2.22.     any
depositories, interest rate calculation agents, exchange rate calculation
agents or other agents with respect to Securities of such Series if other than
those appointed herein.

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

Section 2.3.            Execution
and Authentication.

Two Officers shall sign the Securities for the Company by manual or
facsimile signature.

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

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

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

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

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

The Trustee shall have the right to decline to authenticate and deliver
any Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if the Trustee in
good faith by its board of directors or trustees, executive committee or a
trust committee of directors and/or vice-presidents shall 

 10
 

 

 

determine
that such action would expose the Trustee to personal liability to Holders of
any then outstanding Series of Securities.

The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Securities.  An
authenticating agent may authenticate Securities whenever the Trustee may do
so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights
as an Agent to deal with the Company or an Affiliate.

Section 2.4.            Registrar
and Paying Agent.

The Company shall maintain, with respect to each Series of Securities,
at the place or places specified with respect to such Series pursuant to
Section 2.2, an office or agency where Securities of such Series may be
presented or surrendered for payment (“Paying Agent”), where Securities of such
Series may be surrendered for registration of transfer or exchange (“Registrar”)
and where notices and demands to or upon the Company in respect of the
Securities of such Series and this Indenture may be served (“Service Agent”).  The Registrar shall keep a register with
respect to each Series of Securities and to their transfer and exchange.  The Company will give prompt written notice
to the Trustee of the name and address, and any change in the name or address,
of each Registrar, Paying Agent or Service Agent.  If at any time the Company shall fail to
maintain any such required Registrar, Paying Agent or Service Agent or shall
fail to furnish the Trustee with the name and address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

The Company may also from time to time designate one or more
co-registrars, additional paying agents or additional service agents and may
from time to time rescind such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligations to maintain a Registrar, Paying Agent and Service Agent in each
place so specified pursuant to Section 2.2 for Securities of any Series
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 name or address of any such co-registrar, additional
paying agent or additional service agent. 
The term “Registrar” includes any co-registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Service Agent” includes any
additional service agent.

The Company hereby appoints the Trustee the initial Registrar, Paying
Agent and Service Agent for each Series unless another Registrar, Paying Agent
or Service Agent, as the case may be, is appointed prior to the time Securities
of that Series are first issued.

Section 2.5.            Paying
Agent to Hold Money in Trust.

The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal of or interest on the Series of
Securities, and will notify the Trustee of any default by the Company 

 11
 

 

in
making any such payment.  While any such
default continues, the Trustee may require a Paying Agent to pay all money held
by it to the Trustee.  The Company at any
time may require a Paying Agent to pay all money held by it to the
Trustee.  Upon payment over to the
Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall
have no further liability for the money. 
If the Company or a Subsidiary acts as Paying Agent, it shall segregate
and hold in a separate trust fund for the benefit of Securityholders of any
Series of Securities all money held by it as Paying Agent.

Section 2.6.            Securityholder
Lists.

The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with
TIA Section 312(a).  If the Trustee
is not the Registrar, the Company shall furnish to the Trustee at least ten
days before each interest payment date and at such other times as the Trustee
may request in writing a list, in such form and as of such date as the Trustee
may reasonably require, of the names and addresses of Securityholders of each
Series of Securities.

Section 2.7.            Transfer
and Exchange.

Where Securities of a Series are presented to the Registrar or a
co-registrar with a request to register a transfer or to exchange them for an
equal principal amount of Securities of the same Series, the Registrar shall
register the transfer or make the exchange if its requirements for such
transactions are met.  To permit registrations
of transfers and exchanges, the Trustee shall authenticate Securities at the
Registrar’s request.  No service charge
shall be made for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Company may require payment of a sum
sufficient to cover any transfer tax or similar governmental charge payable in
connection therewith (other than any such transfer tax or similar governmental
charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6).

Neither the Company nor the Registrar shall be required (a) to issue,
register the transfer of, or exchange Securities of any Series for the period
beginning at the opening of business fifteen days immediately preceding the
mailing of a notice of redemption of Securities of that Series selected for
redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.

Section 2.8.            Mutilated,
Destroyed, Lost and Stolen Securities.

If any mutilated Security is surrendered to the Trustee, 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 (i) evidence
to their satisfaction of the destruction, loss or theft of any Security and
(ii) 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 

 12
 

 

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 make available for delivery, 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, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall
be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that Series duly issued hereunder.

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.

Section 2.9.            Outstanding
Securities.

The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest on a Global Security
effected by the Trustee in accordance with the provisions hereof and those
described in this Section as not outstanding.

If a Security is replaced pursuant to Section 2.8, it ceases to be
outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds on the Maturity of Securities of a Series money
sufficient to pay such Securities payable on that date, then on and after that
date such Securities of the Series cease to be outstanding and interest on them
ceases to accrue.

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

In determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Discount Security that shall be deemed to be outstanding for such purposes
shall be the amount of the principal thereof that would be due and 

 13
 

 

payable
as of the date of such determination upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.2.

Section 2.10.          Treasury
Securities.

In determining whether the Holders of the required principal amount of Securities
of a Series have concurred in any request, demand, authorization, direction,
notice, consent or waiver Securities of a Series owned by the Company or an
Affiliate shall be disregarded, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver only Securities of a Series
that the Trustee knows are so owned shall be so disregarded.

Section 2.11.          Temporary
Securities.

Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities upon a Company
Order.  Temporary Securities shall be
substantially in the form of definitive Securities but may have variations that
the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall
prepare and the Trustee upon request shall authenticate definitive Securities
of the same Series and date of maturity in exchange for temporary Securities.  Until so exchanged, temporary Securities shall
have the same rights under this Indenture as the definitive Securities.

Section 2.12.          Cancellation.

The Company at any time may deliver Securities to the Trustee for
cancellation.  The Registrar and the
Paying Agent shall forward to the Trustee any Securities surrendered to them
for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities
surrendered for transfer, exchange, payment, replacement or cancellation and
shall destroy such canceled Securities (subject to the record retention
requirement of the Exchange Act) and deliver a certificate of such destruction
to the Company, unless the Company otherwise directs.  The Company may not issue new Securities to
replace Securities that it has paid or delivered to the Trustee for
cancellation.

Section 2.13.          Defaulted
Interest.

If the Company defaults in a payment of interest on a Series of
Securities, it shall pay the defaulted interest, plus, to the extent permitted
by law, any interest payable on the defaulted interest, to the persons who are
Securityholders of the Series on a subsequent special record date.  The Company shall fix the record date and
payment date.  At least 30 days before
the record date, the Company shall mail to the Trustee and to each
Securityholder of the Series a notice that states the record date, the payment
date and the amount of interest to be paid. 
The Company may pay defaulted interest in any other lawful manner.

Section 2.14.          Global
Securities.

2.14.1.     Terms
of Securities.  A Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate shall establish
whether the Securities of a Series shall be issued 

 14
 

 

in whole or in part in the form of one or more Global Securities and
the Depository for such Global Security or Securities.

2.14.2.     Transfer
and Exchange.  Notwithstanding any
provisions to the contrary contained in Section 2.7 of the Indenture and
in addition thereto, any Global Security shall be exchangeable pursuant to
Section 2.7 of the Indenture for Securities registered in the names of
Holders other than the Depository for such Security or its nominee only if (i)
such Depository notifies the Company that it is unwilling or unable to continue
as Depository for such Global Security or if at any time such Depository ceases
to be a clearing agency registered under the Exchange Act, and, in either case,
the Company fails to appoint a successor Depository within 90 days of such
event, (ii) the Company executes and delivers to the Trustee an Officers’
Certificate to the effect that such Global Security shall be so exchangeable or
(iii) an Event of Default with respect to the Securities represented by such
Global Security shall have happened and be continuing.  Any Global Security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for Securities
registered in such names as the Depository shall direct in writing in an
aggregate principal amount equal to the principal amount of the Global Security
with like tenor and terms.

Except as provided in this Section 2.14.2, a Global Security may
not be transferred except as a whole by the Depository with respect to such
Global Security to a nominee of such Depository, by a nominee of such
Depository to such Depository or another nominee of such Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such a
successor Depository.

2.14.3.     Legend.  Unless otherwise provided pursuant to Section
2.2, any Global Security issued hereunder shall bear a legend in substantially
the following form:

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

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

2.14.5.     Payments.  Notwithstanding the other provisions of this
Indenture, unless otherwise specified as contemplated by Section 2.2,
payment of the principal of, premium, if any, and interest, if any, on any
Global Security shall be made to the Holder thereof.

2.14.6.     Consents,
Declaration and Directions.  Except
as provided in Section 2.14.5, the Company, the Trustee and any Agent
shall treat a person as the Holder of

 15

 

 

such principal amount of outstanding Securities of such Series
represented by a Global Security as shall be specified in a written statement
of the Depository with respect to such Global Security, for purposes of
obtaining any consents, declarations, waivers or directions required to be
given by the Holders pursuant to this Indenture.

Section 2.15.          CUSIP
Numbers.

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

ARTICLE III.

REDEMPTION

Section 3.1.            Notice
to Trustee.

The Company may, with respect to any Series of Securities, reserve the
right to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the Stated Maturity
thereof at such time and on such terms as provided for in such Securities.  If a Series of Securities is redeemable and
the Company wants or is obligated to redeem prior to the Stated Maturity
thereof all or part of the Series of Securities pursuant to the terms of such
Securities, it shall notify the Trustee of the redemption date and the
principal amount of Series of Securities to be redeemed.  The Company shall give the notice at least 45
days before the redemption date (or such shorter notice as may be acceptable to
the Trustee).

Section 3.2.            Selection
of Securities to be Redeemed.

Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture or an Officers’ Certificate, if less than
all the Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed in any manner that the Trustee deems
fair and appropriate.  The Trustee shall
make the selection from Securities of the Series outstanding not previously
called for redemption.  The Trustee may
select for redemption portions of the principal of Securities of the Series
that have denominations larger than $2,000. 
Securities of the Series and portions of them it selects shall be in
amounts of $2,000 or whole multiples of $2,000 or, with respect to Securities
of any Series issuable in other denominations pursuant to Section 2.2.10,
the minimum principal denomination for each Series and integral multiples
thereof.  Provisions of this Indenture
that apply to Securities of a Series called for redemption also apply to
portions of Securities of that Series called for redemption.

Section 3.3.            Notice
of Redemption.

Unless otherwise indicated for a particular Series by a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate, at
least 30 days but not more than 60 

 16
 

 

days
before a redemption date, the Company shall mail a notice of redemption by
first-class mail to each Holder whose Securities are to be redeemed and if any
Bearer Securities are outstanding, publish on one occasion a notice in an
Authorized Newspaper.

The notice shall identify the Securities of the Series to be redeemed
and shall state:

(a)           the redemption date;

(b)           the redemption
price;

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

(d)           that Securities of
the Series called for redemption must be surrendered to the Paying Agent to
collect the redemption price;

(e)           that interest on
Securities of the Series called for redemption ceases to accrue on and after
the redemption date; and

(f)            any other
information as may be required by the terms of the particular Series or the
Securities of a Series being redeemed.

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

Section 3.4.            Effect
of Notice of Redemption.

Once notice of redemption is mailed or published as provided in
Section 3.3, Securities of a Series called for redemption become due and
payable on the redemption date and at the redemption price.  A notice of redemption may not be
conditional.  Upon surrender to the
Paying Agent, such Securities shall be paid at the redemption price plus
accrued interest to the redemption date.

Section 3.5.            Deposit
of Redemption Price.

On or before the redemption date, the Company shall deposit with the
Paying Agent money sufficient to pay the redemption price of and accrued
interest, if any, on all Securities to be redeemed on that date.

Section 3.6.            Securities
Redeemed in Part.

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

 17
 

 

 

ARTICLE IV.

COVENANTS

Section 4.1.            Payment
of Principal and Interest.

The Company covenants and agrees for the benefit of the Holders of each
Series of Securities that it will duly and punctually pay the principal of and
interest, if any, on the Securities of that Series in accordance with the terms
of such Securities and this Indenture.

Section 4.2.            SEC
Reports.

The Company shall deliver to the Trustee within 15 days after it files
them 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 by rules and regulations prescribe) which the Company
is required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act.  The Company also shall
comply with the other provisions of TIA Section 314(a).

Section 4.3.            Compliance
Certificate.

The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year of the Company, an Officers’ Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his knowledge the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions hereof
(or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he may have knowledge).

The Company will, so long as any of the Securities are outstanding,
deliver to the Trustee, forthwith upon becoming aware of any Default or Event
of Default, an Officers’ Certificate specifying such Default or Event of
Default and what action the Company is taking or proposes to take with respect
thereto.

Section 4.4.            Stay,
Extension and Usury Laws.

The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture or the Securities; and the Company (to the
extent it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law and covenants that it will not, by resort to any such law,
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 has been enacted.

Section 4.5.            Corporate
Existence.

Subject to Article V, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate, partnership or other existence of each Significant
Subsidiary in accordance with the respective organizational documents of each
Significant Subsidiary and the rights (charter and statutory), licenses and 

 18
 

 

franchises
of the Company and its Significant Subsidiaries; provided, however, that the
Company shall not be required to preserve any such right, license or franchise,
or the corporate, partnership or other existence of any Significant Subsidiary,
if the Board of Directors shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and its
Subsidiaries taken as a whole and that the loss thereof is not adverse in any
material respect to the Holders.

Section 4.6.            Taxes.

The Company shall, and shall cause each of its Significant Subsidiaries
to, pay prior to delinquency all taxes, assessments and governmental levies,
except as contested in good faith and by appropriate proceedings.

ARTICLE V.

SUCCESSORS

Section 5.1.            When
Company May Merge, Etc.

The Company shall not consolidate with or merge into, or convey,
transfer or lease all or substantially all of its properties and assets to, any
person (a “successor person”), and may not permit any person to merge into, or
convey, transfer or lease its properties and assets substantially as an
entirety to, the Company, unless:

(a)           the successor person
(if any) is a corporation, partnership, trust or other entity organized and
validly existing under the laws of any U.S. domestic jurisdiction and expressly
assumes the Company’s obligations on the Securities and under this Indenture
and

(b)           immediately after
giving effect to the transaction, no Default or Event of Default, shall have
occurred and be continuing.

The Company shall deliver to the Trustee prior to the consummation of
the proposed transaction an Officers’ Certificate to the foregoing effect and
an Opinion of Counsel stating that the proposed transaction and such
supplemental indenture comply with this Indenture.

Section 5.2.            Successor
Corporation Substituted.

Upon any consolidation or merger, or any sale, lease, conveyance or
other disposition of all or substantially all of the assets of the Company in
accordance with Section 5.1, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such
sale, lease, conveyance 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 has been named
as the Company herein; provided, however, that the predecessor Company in the
case of a sale, lease, conveyance or other disposition shall not be released
from the obligation to pay the principal of and interest, if any, on the
Securities.

 19
 

 

 

ARTICLE VI.

DEFAULTS AND REMEDIES

Section 6.1.            Events
of Default.

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

(a)           default in the
payment of any interest on any Security of that Series when it becomes due and
payable, and continuance of such default for a period of 30 days (unless the
entire amount of such payment is deposited by the Company with the Trustee or
with a Paying Agent prior to the expiration of such period of 30 days); or

(b)           default in the
payment of the principal of any Security of that Series at its Maturity; or

(c)           default in the
deposit of any sinking fund payment, within 30 days when and as due in respect
of any Security of that Series; or

(d)           default in the
performance or breach of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty that has been included in this
Indenture solely for the benefit of Series of Securities other than that
Series), which default continues uncured 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

(e)           the Company or any
of its Significant Subsidiaries pursuant to or within the meaning of any
Bankruptcy Law:

(i)            commences a voluntary case,

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

(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, or

(v)           generally is unable to pay its debts
as the same become due; or

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

 20
 

 

 

(i)            is for relief against the Company or
any of its Significant Subsidiaries in an involuntary case,

(ii)           appoints a Custodian of the Company
or any of its Significant Subsidiaries or for all or substantially all of its
property, or

(iii)          orders the liquidation of the Company
or any of its Significant Subsidiaries,

and the order or decree
remains unstayed and in effect for 60 days; or

(g)           any other Event of
Default provided with respect to Securities of that Series, which is specified
in a Board Resolution, a supplemental indenture hereto or an Officers’
Certificate, in accordance with Section 2.2.19.

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

Section 6.2.            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 (other than an Event of Default
referred to in Section 6.1(e) or (f)) then in every such case the Trustee
or the Holders of not less than 25% in principal amount of the outstanding
Securities of that Series may declare the principal amount (or, if any
Securities of that Series are Discount Securities, such portion of the
principal amount as may be specified in the terms of such Securities) of and
accrued and unpaid interest, if any, on 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) and accrued and unpaid interest, if any, shall
become immediately due and payable.  If
an Event of Default specified in Section 6.1(e) or (f) shall occur, the
principal amount (or specified amount) of and accrued and unpaid interest, if
any, on all outstanding Securities shall ipso facto become and be immediately
due and payable without any declaration or other act on the part of the Trustee
or any Holder.

At any time after such a declaration of acceleration with respect to
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
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, if any, on all
Securities of that Series,

 21
 

 

 

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

(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 6.13.

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

Section 6.3.            Collection
of Indebtedness and Suits for Enforcement by Trustee.

The Company covenants that if

(a)           default is made in
the payment of any 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 principal of any Security at the Maturity thereof, or

(c)           default is made in
the deposit of any sinking fund payment when and as due by the terms of a
Security, then, 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 interest and, to the
extent that payment of such interest shall be legally enforceable, interest on
any overdue principal or 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 deemed 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.

 22
 

 

 

If an Event of Default with respect to any 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.

Section 6.4.            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 or the property of the Company or of such other obligor 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,

(a)           to file and prove a
claim for the whole amount of principal 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, in the event that 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 7.7.

Nothing herein contained 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, 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.

Section 6.5.            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.

 23
 

 

 

Section 6.6.            Application
of Money Collected.

Any money collected by the Trustee pursuant to this Article 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
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 7.7; and

Second:  To the payment of the
amounts then due and unpaid for principal of 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 interest, respectively;
and

Third:     To the Company.

Section 6.7.            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.

 24
 

 

 

Section 6.8.            Unconditional
Right of Holders to Receive Principal 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 interest, if any, on such Security on
the Stated Maturity or Stated 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.

Section 6.9.            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.

Section 6.10.          Rights
and Remedies Cumulative.

Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in Section 2.8, 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.

Section 6.11.          Delay
or Omission Not Waiver.

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 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.

Section 6.12.          Control
by Holders.

The Holders of 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 that

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

 25
 

 

 

(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, by a Responsible
Officer of the Trustee, determine that the proceeding so directed would involve
the Trustee in personal liability.

Section 6.13.          Waiver
of Past Defaults.

Subject to Section 6.2, 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 Default in
the payment of the principal of or interest on any Security of such Series
(provided, however, that the Holders of a majority in principal amount of the
outstanding Securities of any Series may rescind an acceleration and its
consequences, including any related payment default that resulted from such
acceleration).  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.

Section 6.14.          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 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 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 interest on any Security on or after the Stated Maturity or Stated
Maturities expressed in such Security (or, in the case of redemption, on the
redemption date).

ARTICLE VII.

TRUSTEE

Section 7.1.            Duties
of Trustee.

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

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

 26
 

 

 

(i)            The Trustee need perform only those
duties that are specifically set forth in this Indenture and no others.

(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 Officers’ Certificates
or Opinions of Counsel furnished to the Trustee and conforming to the requirements
of this Indenture; however, in the case of any such Officers’ Certificates or
Opinions of Counsel which by any provisions hereof are specifically required to
be furnished to the Trustee, the Trustee shall examine such Officers’
Certificates and Opinions of Counsel to determine whether or not they conform
to the requirements of this Indenture.

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

(i)            This paragraph does not limit the
effect of paragraph (b) 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 is
proved that the Trustee was negligent in ascertaining the pertinent facts.

(iii)          The Trustee shall not be liable with
respect to any action taken, suffered or omitted to be taken by it with respect
to Securities of any Series in good faith in accordance with the direction of
the Holders of a majority in principal amount of the outstanding Securities of
such Series 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.

(d)           Every provision of
this Indenture that in any way relates to the Trustee is subject to paragraph
(a), (b) and (c) of this Section.

(e)           The Trustee may
refuse to perform any duty or exercise any right or power unless it receives
indemnity satisfactory to it against any loss, liability or expense.

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

(g)           No provision of this
Indenture shall require the Trustee to risk its own funds or otherwise incur
any financial liability in the performance of any of its duties, 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
is not reasonably assured to it.

 27
 

 

 

(h)           The Paying Agent,
the Registrar and any authenticating agent shall be entitled to the protections
and immunities as are set forth in paragraphs (a), (b) and (c) of this
Section with respect to the Trustee.

Section 7.2.            Rights
of Trustee.

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

(b)           Before the Trustee
acts or refrains from acting, it may require an Officers’ Certificate or an
Opinion of Counsel.  The Trustee shall
not be liable for any action it takes or omits to take in good faith in
reliance on such Officers’ Certificate or Opinion of Counsel.

(c)           The Trustee may act
through agents and shall not be responsible for the misconduct or negligence of
any agent appointed with due care.  No
Depository shall be deemed an agent of the Trustee and the Trustee shall not be
responsible for any act or omission by any Depository.

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

(e)           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.

(f)            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 of Securities
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.

Section 7.3.            Individual
Rights of Trustee.

The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or an
Affiliate with the same rights it would have if it were not Trustee.  Any Agent may do the same with like
rights.  The Trustee is also subject to
Sections 7.10 and 7.11.

Section 7.4.            Trustee’s
Disclaimer.

The Trustee makes
no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds
from the Securities, and it shall not be responsible for any statement in the
Securities other than its authentication.

 28

 

 

Section 7.5.            Notice
of Defaults.

If a Default or Event of Default occurs and is continuing with respect
to the Securities of any Series and if it is known to a Responsible Officer of
the Trustee, the Trustee shall mail to each Securityholder of the Securities of
that Series and, if any Bearer Securities are outstanding, publish on one
occasion in an Authorized Newspaper, notice of a Default or Event of Default
within 90 days after it occurs or, if later, after a Responsible Officer of the
Trustee has knowledge of such Default or Event of Default.  Except in the case of a Default or Event of
Default in payment of principal of or interest on any Security of any Series,
the Trustee may withhold the notice if and so long as its corporate trust
committee or a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of Securityholders of that
Series.

Section 7.6.            Reports
by Trustee to Holders.

Within 60 days after May 15 in each year, the Trustee shall transmit by
mail to all Securityholders, as their names and addresses appear on the
register kept by the Registrar and, if any Bearer Securities are outstanding,
publish in an Authorized Newspaper, a brief report dated as of such May 15, in
accordance with, and to the extent required under, TIA Section 313.

A copy of each report at the time of its mailing to Securityholders of
any Series shall be filed with the SEC and each stock exchange on which the
Securities of that Series are listed. 
The Company shall promptly notify the Trustee when Securities of any
Series are listed on any stock exchange.

Section 7.7.            Compensation
and Indemnity.

The Company shall pay to the Trustee from time to time reasonable
compensation for its services.  The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The Company
shall reimburse the Trustee upon request for all reasonable out-of-pocket
expenses incurred by it.  Such expenses
shall include the reasonable compensation and expenses of the Trustee’s agents
and counsel.

The Company shall indemnify the Trustee (including the cost of
defending itself) against any loss, liability or expense incurred by it except
as set forth in the next paragraph in the performance of its duties under this
Indenture as Trustee or Agent.  The
Trustee shall notify the Company promptly of any claim for which it may seek
indemnity.  The Company shall defend the
claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement
made without its consent, which consent shall not be unreasonably withheld.  This indemnification shall apply to officers,
directors, employees, shareholders and agents of the Trustee.

The Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee or by any officer, director,
employee, shareholder or agent of the Trustee through negligence or bad faith.

 29
 

 

 

To secure the Company’s payment obligations in this Section, the
Trustee shall have a lien prior to the Securities of any Series on all money or
property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Securities of that Series.

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

Section 7.8.            Replacement
of Trustee.

A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.

The Trustee may resign with respect to the Securities of one or more
Series by so notifying the Company.  The
Holders of a majority in principal amount of the Securities of any Series may
remove the Trustee with respect to that Series by so notifying the Trustee and
the Company.  The Company may remove the
Trustee with respect to Securities of one or more Series if:

(a)           the Trustee fails to
comply with Section 7.10;

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

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

(d)           the Trustee becomes
incapable of acting.

If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.  Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount
of the then outstanding Securities may appoint a successor Trustee to replace
the successor Trustee appointed by the Company.

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

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

A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee
shall transfer 

 30
 

 

all
property held by it as Trustee to the successor Trustee subject to the lien
provided for in Section 7.7, the resignation or removal of the retiring
Trustee shall become effective, and the successor Trustee shall have all the
rights, powers and duties of the Trustee with respect to each Series of
Securities for which it is acting as Trustee under this Indenture.  A successor Trustee shall mail a notice of
its succession to each Securityholder of each such Series and, if any Bearer
Securities are outstanding, publish such notice on one occasion in an
Authorized Newspaper.  Notwithstanding
replacement of the Trustee pursuant to this Section 7.8, the Company’s
obligations under Section 7.7 hereof shall continue for the benefit of the
retiring trustee with respect to expenses and liabilities incurred by it prior
to such replacement.

Section 7.9.            Successor
Trustee by Merger, Etc.

If the Trustee consolidates with, merges or converts into, or transfers
all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee.

Section 7.10.          Eligibility;
Disqualification.

This Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1), (2) and (5).  The Trustee shall always have a combined
capital and surplus of at least $25,000,000 as set forth in its most recent
published annual report of condition. 
The Trustee shall comply with TIA Section 310(b).

Section 7.11.          Preferential
Collection of Claims Against Company.

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

ARTICLE VIII.

SATISFACTION AND DISCHARGE; DEFEASANCE

Section 8.1.            Satisfaction
and Discharge of Indenture.

This Indenture shall upon Company Order cease to be of further effect
(except as hereinafter provided in this Section 8.1), and the Trustee, at
the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

(a)           either

(i)            all Securities theretofore
authenticated and delivered (other than Securities that have been destroyed,
lost or stolen and that have been replaced or paid) have been delivered to the
Trustee for cancellation; or

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

(1)           have become due and payable, or

 31
 

 

 

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

(3)           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, or

(4)           are deemed paid and discharged
pursuant to Section 8.3, as applicable;

and
the Company, in the case of (1), (2) or (3) above, has deposited or caused to
be deposited with the Trustee as trust funds in trust an amount sufficient for
the purpose of paying and discharging the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or
to the Stated Maturity or redemption date, as the case may be;

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

(c)           the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 7.7, and, if money
shall have been deposited with the Trustee pursuant to clause (a) of this
Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1, 8.2 and 8.5 shall
survive.

Section 8.2.            Application
of Trust Funds; Indemnification.

(a)           Subject to the
provisions of Section 8.5, all money deposited with the Trustee pursuant
to Section 8.1, all money and U.S. Government Obligations or Foreign
Government Obligations deposited with the Trustee pursuant to Section 8.3
or 8.4 and all money received by the Trustee in respect of U.S. Government
Obligations or Foreign Government Obligations deposited with the Trustee pursuant
to Section 8.3 or 8.4, 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 interest for whose payment such money
has been deposited with or received by the Trustee or to make mandatory sinking
fund payments or analogous payments as contemplated by Sections 8.3 or
8.4.

(b)           The Company shall
pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations or Foreign
Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the
interest 

 32
 

 

and principal
received in respect of such obligations other than any payable by or on behalf
of Holders.

(c)           The Trustee shall
deliver or pay to the Company from time to time upon Company Request any U.S.
Government Obligations or Foreign Government Obligations or money held by it as
provided in Sections 8.3 or 8.4 which, in the opinion of a nationally
recognized firm of independent certified public accountants expressed in a
written certification thereof delivered to the Trustee, are then in excess of
the amount thereof which then would have been required to be deposited for the
purpose for which such U.S. Government Obligations or Foreign Government
Obligations or money were deposited or received.  This provision shall not authorize the sale
by the Trustee of any U.S. Government Obligations or Foreign Government
Obligations held under this Indenture.

Section 8.3.            Legal
Defeasance of Securities of any Series.

Unless this Section 8.3 is otherwise specified pursuant to
Section 2.2.21 to be inapplicable to Securities of any Series, the Company
shall be deemed to have paid and discharged the entire indebtedness on all the
outstanding Securities of such Series on the 91st day after the date of the
deposit referred to in subparagraph (d) hereof, and the provisions of this
Indenture, as it relates to such outstanding Securities of such Series, shall
no longer be in effect (and the Trustee, at the expense of the Company, shall,
at Company Request, execute proper instruments acknowledging the same), except
as to:

(a)           the rights of
Holders of Securities of such Series to receive, from the trust funds described
in subparagraph (d) hereof, (i) payment of the principal of and each
installment of principal of and interest on the outstanding Securities of such
Series on the Stated Maturity of such principal or installment of principal or
interest and (ii) the benefit of any mandatory sinking fund payments applicable
to the Securities of such Series on the day on which such payments are due and
payable in accordance with the terms of this Indenture and the Securities of
such Series;

(b)           the provisions of
Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

(c)           the rights, powers,
trust and immunities of the Trustee hereunder;

provided
that, the following conditions shall have been satisfied:

(d)           the Company shall
have deposited or caused to be deposited irrevocably with the Trustee as trust
funds in trust for the purpose of making the following payments, specifically
pledged as security for and dedicated solely to the benefit of the Holders of
such Securities (i) in the case of Securities of such Series denominated in
Dollars, cash in Dollars (or such other money or currencies as shall then be
legal tender in the United States) and/or U.S. Government Obligations, or (ii)
in the case of Securities of such Series denominated in a Foreign Currency
(other than a composite currency), money and/or Foreign Government Obligations,
which through the payment of interest and principal in respect thereof, in
accordance with their terms, will provide (and without reinvestment and
assuming no tax liability will be imposed on such Trustee), not later 

 33
 

 

than one day
before the due date of any payment of money, an amount in cash, sufficient, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge each installment of principal (including mandatory sinking fund
or analogous payments) of and interest, if any, on all the Securities of such
Series on the dates such installments of interest or principal are due;

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

(f)            no Default or Event
of Default with respect to the Securities of such Series shall have occurred
and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

(g)           the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel to the effect that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of
execution of this Indenture, there has been a change in the applicable Federal
income tax law, in either case to the effect that, and based thereon such
Opinion of Counsel shall confirm that, the Holders of the Securities of such
Series will not recognize income, gain or loss for Federal income tax purposes
as a result of such deposit, defeasance and discharge and will be subject to
Federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit, defeasance and discharge had
not occurred;

(h)           the Company shall
have delivered to the Trustee an Officers’ Certificate stating that the deposit
was not made by the Company with the intent of preferring the Holders of the
Securities of such Series over any other creditors of the company or with the
intent of defeating, hindering, delaying or defrauding any other creditors of
the Company;

(i)            such deposit shall
not result in the trust arising from such deposit constituting an investment
company (as defined in the Investment Company Act of 1940, as amended), or such
trust shall be qualified under such Act or exempt from regulation thereunder;
and

(j)            the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to
the defeasance contemplated by this Section have been complied with.

Section 8.4.            Covenant
Defeasance.

Unless this Section 8.4 is otherwise specified pursuant to
Section 2.2.21 to be inapplicable to Securities of any Series, on and
after the 91st day after the date of the deposit referred to in subparagraph
(a) hereof, the Company may omit to comply with any term, provision or
condition set forth under Sections 4.2, 4.3, 4.4, 4.5, 4.6, and 5.1 as
well as any additional covenants contained in a supplemental indenture hereto
for a particular Series of 

 34
 

 

Securities
or a Board Resolution or an Officers’ Certificate delivered pursuant to
Section 2.2.21 (and the failure to comply with any such covenants shall
not constitute a Default or Event of Default under Section 6.1) and the
occurrence of any event described in clause (e) of Section 6.1 shall not
constitute a Default or Event of Default hereunder, with respect to the
Securities of such Series, provided that the following conditions shall have
been satisfied:

(a)           With reference to
this Section 8.4, the Company has deposited or caused to be irrevocably
deposited (except as provided in Section 8.2(c)) with the Trustee as trust
funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of such Securities (i) in the case of Securities of
such Series denominated in Dollars, cash in Dollars (or such other money or
currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, or (ii) in the case of Securities of such Series
denominated in a Foreign Currency (other than a composite currency), money
and/or Foreign Government Obligations, which through the payment of interest
and principal in respect thereof, in accordance with their terms, will provide
(and without reinvestment and assuming no tax liability will be imposed on such
Trustee), not later than one day before the due date of any payment of money,
an amount in cash, sufficient, in the opinion of a nationally recognized firm
of independent certified public accountants expressed in a written
certification thereof delivered to the Trustee, to pay principal and interest,
if any, on and any mandatory sinking fund in respect of the Securities of such
Series on the dates such installments of interest or principal are due;

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

(c)           No Default or Event
of Default with respect to the Securities of such Series shall have occurred
and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

(d)           the Company shall
have delivered to the Trustee an Opinion of Counsel confirming that Holders of
the Securities of such Series will not recognize income, gain or loss for
federal income tax purposes as a result of such deposit and 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 deposit and defeasance had
not occurred;

(e)           the Company shall
have delivered to the Trustee an Officers’ Certificate stating the deposit was
not made by the Company with the intent of preferring the Holders of the
Securities of such Series over any other creditors of the Company or with the
intent of defeating, hindering, delaying or defrauding any other creditors of
the Company; and

(f)            The Company shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to the
defeasance contemplated by this Section have been complied with.

 35
 

 

Section 8.5.            Repayment
to Company.

The Trustee and the Paying Agent shall pay to the Company upon request
any money held by them for the payment of principal and interest that remains
unclaimed for two years.  After that,
Securityholders entitled to the money must look to the Company for payment as
general creditors unless an applicable abandoned property law designates
another person.

Section 8.6.  Reinstatement.

If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with Sections 8.1, 8.3 or 8.4, as the case
may be, by reason of any legal proceeding or by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture
and the Securities shall be revived and reinstated as though no deposit had
occurred pursuant to Section 8.1, 8.3 or 8.4, as the case may be, until such
time as the Trustee or Paying Agent is permitted to apply all such money or
U.S. Government Obligations in accordance with Section 8.1, 8.3 or 8.4, as the
case may be; provided, however, that if the Company makes any
payment of principal of, premium, if any, or interest on any Securities because
of reinstatement of its obligations, the Company shall be subrogated to the
rights of the holders of such Securities to receive such payment from the money
or U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE IX.

AMENDMENTS AND WAIVERS

Section 9.1.            Without
Consent of Holders.

The Company and the Trustee may amend or supplement this Indenture or
the Securities of one or more Series without the consent of any Securityholder:

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

(b)           to comply with
requirements of the SEC in order to effect or maintain the qualification of
this Indenture under the TIA.

(c)           to cure any
ambiguity, defect or inconsistency;

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

(e)           to comply with
Article V;

(f)            to make any change
that would provide any additional rights or benefits to the Securityholder or
that does not adversely affect the legal rights under the Indenture of any
Securityholder;

(g)           to conform the text
of the Indenture to any provision of the Description of Debt Securities to the
extent that such provision in the Description of Debt Securities was intended
to be a verbatim recitation of a provision of the indentures;

 36
 

 

 

(h)           to provide for the
issuance of additional securities in accordance with the limitations set forth
in the indenture as of the date of the indenture;

(i)            to allow any
guarantor to execute a supplemental Indenture with respect to Securities and to
release guarantors in accordance with the terms of the Indenture; or

(j)            to add additional
obligors under the Indenture and the Securities.

Section 9.2.            With
Consent of Holders.

The Company and the Trustee may enter into a supplemental indenture
with the written consent of the Holders of at least a majority in principal
amount of the outstanding Securities of each Series affected by such
supplemental indenture (including consents obtained in connection with a tender
offer or exchange offer for the Securities of such Series), for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the Securityholders of each such Series.  Except as provided in Section 6.13, the
Holders of at least a majority in principal amount of the outstanding
Securities of each Series affected by such waiver by notice to the Trustee
(including consents obtained in connection with a tender offer or exchange offer
for the Securities of such Series) may waive compliance by the Company with any
provision of this Indenture or the Securities with respect to such Series.

It shall not be necessary for the consent of the Holders of Securities
under this Section 9.2 to approve the particular form of any proposed
supplemental indenture or waiver, but it shall be sufficient if such consent
approves the substance thereof.  After a
supplemental indenture or waiver under this Section becomes effective, the
Company shall mail to the Holders of Securities affected thereby and, if any
Bearer Securities affected thereby are outstanding, publish on one occasion in
an Authorized Newspaper, a notice briefly describing the supplemental indenture
or waiver.  Any failure by the Company to
mail or publish such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture or waiver.

Section 9.3.            Limitations.

Without the consent of each Securityholder affected, an amendment or
waiver may not:

(a)           change the amount of
Securities whose Holders must consent to an amendment, supplement or waiver;

(b)           reduce the rate of
or extend the time for payment of interest (including default interest) on any
Security;

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

 37
 

 

 

(d)           reduce the principal
amount of Discount Securities payable upon acceleration of the maturity
thereof;

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

(f)            make the principal
of or interest, if any, on any Security payable in any currency other than that
stated in the Security;

(g)           make any change in
Sections 6.8, 6.13, 9.3 (this sentence), 10.15 or 10.16; or

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

Section 9.4.            Compliance
with Trust Indenture Act.

Every amendment to this Indenture or the Securities of one or more
Series shall be set forth in a supplemental indenture hereto that complies with
the TIA as then in effect.

Section 9.5.            Revocation
and Effect of Consents.

Until an amendment or waiver becomes effective, a consent to it by a
Holder of a Security is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security, even if notation of the consent is not made
on any Security.  However, any such
Holder or subsequent Holder may revoke the consent as to his Security or
portion of a Security if the Trustee receives the notice of revocation before
the date the amendment or waiver becomes effective.

Any amendment or waiver once effective shall bind every Securityholder
of each Series affected by such amendment or waiver unless it is of the type
described in any of clauses (a) through (g) of Section 9.3.  In that case, the amendment or waiver shall
bind each Holder of a Security who has consented to it and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security.

Section 9.6.            Notation
on or Exchange of Securities.

The Trustee may place an appropriate notation about an amendment or
waiver on any Security of any Series thereafter authenticated.  The Company in exchange for Securities of
that Series may issue and the Trustee shall authenticate upon request new
Securities of that Series that reflect the amendment or waiver.

Section 9.7.            Trustee
Protected.

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 

 38
 

 

Indenture,
the Trustee shall be entitled to receive, and (subject to Section 7.1)
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 shall sign all
supplemental indentures, except that the Trustee need not sign any supplemental
indenture that adversely affects its rights.

ARTICLE X.

MISCELLANEOUS

Section 10.1.          Trust
Indenture Act Controls.

If any provision of this Indenture limits, qualifies, or conflicts with
another provision which is required or deemed to be included in this Indenture
by the TIA, such required or deemed provision shall control.

Section 10.2.          Notices.

Any notice or communication by the Company or the Trustee to the other
is duly given if in writing and delivered in person or mailed by first-class
mail:

if
to the Company:

Conceptus, Inc.

331 East Evelyn Avenue

Mountain View, CA 94041

Attention: President and Chief Executive Officer

if
to the Trustee:

[Name of Trustee]

[Address]

                                                   

                                                   

Attention:
                                  

The Company or the Trustee by notice to the other may designate
additional or different addresses for subsequent notices or communications.

Any notice or communication to a Securityholder shall be mailed by
first-class mail to his address shown on the register kept by the Registrar
and, if any Bearer Securities are outstanding, published in an Authorized
Newspaper.  Failure to mail a notice or
communication to a Securityholder of any Series or any defect in it shall not
affect its sufficiency with respect to other Securityholders of that or any
other Series.

If a notice or communication is mailed or published in the manner
provided above, within the time prescribed, it is duly given, whether or not
the Securityholder receives it.

 39
 

 

 

If the Company mails a notice or communication to Securityholders, it
shall mail a copy to the Trustee and each Agent at the same time.

Section 10.3.          Communication
by Holders with Other Holders.

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

Section 10.4.          Certificate
and Opinion as to Conditions Precedent.

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

(a)           an Officers’
Certificate stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

(b)           an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

Section 10.5.          Statements
Required in Certificate or Opinion.

Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:

(a)           a statement that the
person making such certificate or opinion has read such covenant or condition;

(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 such person, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and

(d)           a statement as to
whether or not, in the opinion of such person, such condition or covenant has
been complied with.

Section 10.6.          Rules
by Trustee and Agents.

The Trustee may make reasonable rules for action by or a meeting of
Securityholders of one or more Series. 
Any Agent may make reasonable rules and set reasonable requirements for
its functions.

 40
 

 

 

Section 10.7.          Legal
Holidays.

Unless otherwise provided by Board Resolution, Officers’ Certificate or
supplemental indenture for a particular Series, a “Legal Holiday” is any day
that is not a Business Day.  If a payment
date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period.

Section 10.8.          No
Recourse Against Others.

A director, officer, employee or stockholder, as such, of the Company
shall not have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. 
Each Securityholder by accepting a Security waives and releases all such
liability.  The waiver and release are
part of the consideration for the issue of the Securities.

Section 10.9.          Counterparts.

This Indenture may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one and the same agreement.

Section 10.10.        Governing Laws.

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH
STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

Section 10.11.        No Adverse Interpretation of Other Agreements.

This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or a Subsidiary. 
Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

Section 10.12.        Successors.

All agreements of the Company in this Indenture and the Securities
shall bind its successor.  All agreements
of the Trustee in this Indenture shall bind its successor.

Section 10.13.        Severability.

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.

 41

 

Section 10.14.        Table of Contents, Headings, Etc.

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

Section 10.15.        Securities in a Foreign Currency or in ECU.

Unless otherwise specified in a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate delivered pursuant to
Section 2.2 of this Indenture with respect to a particular Series of
Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of
Securities of all Series or all Series affected by a particular action at the
time outstanding and, at such time, there are outstanding Securities of any
Series which are denominated in a coin or currency other than Dollars
(including ECUs), 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 at such time.  For purposes
of this Section 10.15, “Market Exchange Rate” shall mean the noon Dollar
buying rate in New York City for cable transfers of that currency as published
by the Federal Reserve Bank of New York; provided, however, in the case of
ECUs, Market Exchange Rate shall mean the rate of exchange determined by the
Commission of the European Union (or any successor thereto) as published in the
Official Journal of the European Union (such publication or any successor
publication, the “Journal”).  If such
Market Exchange Rate is not available for any reason with respect to such
currency, the Trustee shall use, in its sole discretion and without liability
on its part, such quotation of the Federal Reserve Bank of New York or, in the
case of ECUs, the rate of exchange as published in the Journal, as of the most
recent available date, or quotations or, in the case of ECUs, rates of exchange
from one or more major banks in The City of New York or in the country of issue
of the currency in question or, in the case of ECUs, in Luxembourg or such
other quotations or, in the case of ECUs, rates of exchange as the Trustee,
upon consultation with the Company, shall deem appropriate.  The provisions of this paragraph shall apply
in determining the equivalent principal amount in respect of Securities of a
Series denominated in currency other than Dollars in connection with any action
taken by Holders of Securities pursuant to the terms of this Indenture.

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

Section 10.16.        Judgment Currency.

The Company agrees, to the fullest extent that it may effectively do so
under applicable law, that (a) if for the purpose of obtaining judgment in any
court it is necessary to convert the sum due in respect of the principal of or
interest or other amount on the Securities of any Series (the “Required
Currency”) into a currency in which a judgment will be rendered (the “Judgment
Currency”), the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the day on which final
unappealable judgment is 

 42
 

 

entered,
unless such day is not a New York Banking Day, then, the rate of exchange used
shall be the rate at which in accordance with normal banking procedures the
Trustee could purchase in The City of New York the Required Currency with the
Judgment Currency on the New York Banking Day preceding the day on which final
unappealable judgment is entered and (b) its obligations under this Indenture
to make payments in the Required Currency (i) shall not be discharged or
satisfied by any tender, any recovery pursuant to any judgment (whether or not
entered in accordance with Subsection (a)), in any currency other than the
Required Currency, except to the extent that such tender or recovery shall
result in the actual receipt, by the payee, of the full amount of the Required
Currency expressed to be payable in respect of such payments, (ii) shall be
enforceable as an alternative or additional cause of action for the purpose of
recovering in the Required Currency the amount, if any, by which such actual
receipt shall fall short of the full amount of the Required Currency so
expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture.  For purposes of the foregoing, “New York
Banking Day” means any day except a Saturday, Sunday or a legal holiday in The
City of New York on which banking institutions are authorized or required by
law, regulation or executive order to close.

ARTICLE XI.

SINKING FUNDS

Section 11.1.          Applicability
of Article.

The provisions of this Article shall be applicable to any sinking
fund for the retirement of the Securities of a Series, except as otherwise
permitted or required by any form of Security of such Series issued pursuant to
this Indenture.

The minimum amount of any sinking fund payment provided for by the
terms of the Securities of any Series is herein referred to as a “mandatory
sinking fund payment” and any other amount provided for by the terms of
Securities of such 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 11.2.  Each sinking fund
payment shall be applied to the redemption of Securities of any Series as
provided for by the terms of the Securities of such Series.

Section 11.2.          Satisfaction
of Sinking Fund Payments with Securities.

The Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of any Series to be made pursuant to the
terms of such Securities (1) deliver outstanding Securities of such Series to
which such sinking fund payment is applicable (other than any of such
Securities previously called for mandatory sinking fund redemption) and (2)
apply as credit Securities of such Series to which such sinking fund payment is
applicable and which have been redeemed either at the election of the Company
pursuant to the terms of such Series of Securities (except pursuant to any
mandatory sinking fund) or through the application of permitted optional
sinking fund payments or other optional redemptions pursuant to the terms of
such Securities, provided that such Securities have not been previously so
credited.  Such Securities shall be
received by the Trustee, together with an Officers’ Certificate with respect
thereto, not later than 15 days prior to the date on which the 

 43
 

 

Trustee
begins the process of selecting Securities for redemption, and shall be
credited for such purpose by the Trustee at the 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.  If as a result of the delivery or credit of
Securities in lieu of cash payments pursuant to this Section 11.2, the
principal amount of Securities of such Series to be redeemed in order to
exhaust the aforesaid cash payment shall be less than $100,000, the Trustee
need not call Securities of such Series for redemption, except upon receipt of
a Company Order that such action be taken, and such cash payment shall be held
by the Trustee or a Paying Agent and applied to the next succeeding sinking
fund payment, provided, however, that the Trustee or such Paying Agent shall
from time to time upon receipt of a Company Order pay over and deliver to the
Company any cash payment so being held by the Trustee or such Paying Agent upon
delivery by the Company to the Trustee of Securities of that Series purchased
by the Company having an unpaid principal amount equal to the cash payment
required to be released to the Company.

Section 11.3.          Redemption
of Securities for Sinking Fund.

Not less than 45 days (unless otherwise indicated in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate in respect
of a particular Series of Securities) prior to each sinking fund payment date
for any Series of Securities, the Company will deliver to the Trustee an
Officers’ Certificate specifying the amount of the next ensuing mandatory
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
of Securities of that Series pursuant to Section 11.2, and the optional
amount, if any, to be added in cash to the next ensuing mandatory sinking fund
payment, and the Company shall thereupon be obligated to pay the amount therein
specified.  Not less than 30 days (unless
otherwise indicated in the Board Resolution, Officers’ Certificate or
supplemental indenture in respect of a particular Series of Securities) 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 3.2 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 3.3.  Such notice having
been duly given, the redemption of such Securities shall be made upon the terms
and in the manner stated in Sections 3.4, 3.5 and 3.6.

ARTICLE XII.

SUBORDINATION OF SECURITIES

Section 12.1.          Agreement
of Subordination.

The Company covenants and agrees, and each Holder of Securities issued
hereunder by his acceptance thereof likewise covenants and agrees, that all
Securities shall be issued subject to the provisions of this Article XII;
and each Person holding any Security, whether upon original issue or upon
transfer, assignment or exchange thereof, accepts and agrees to be bound by
such provisions.

The payment of the principal of, premium, if any, and interest on all
Securities (including, but not limited to, the redemption price with respect to
the Securities called for redemption in accordance with Article III as
provided in the Indenture) issued hereunder shall, to 

 44
 

 

the
extent and in the manner hereinafter set forth, be subordinated and subject in
right of payment to the prior payment in full of all Senior Indebtedness,
whether outstanding at the date of this Indenture or thereafter incurred.

No provision of this Article XII shall prevent the occurrence of
any default or Event of Default hereunder.

Section 12.2.          Payments
to Holders.

No payment shall be made with respect to the principal of, or premium,
if any, or interest on the Securities (including, but not limited to, the
redemption price with respect to the Securities to be called for redemption in
accordance with Article III as provided in the Indenture), except payments
and distributions made by the Trustee as permitted by the first or second
paragraph of Section 12.5, if:

(i)            a default in the payment of
principal, premium, interest, rent or other obligations due on any Senior
Indebtedness occurs and is continuing (or, in the case of Senior Indebtedness
for which there is a period of grace, in the event of such a default that
continues beyond the period of grace, if any, specified in the instrument or
lease evidencing such Senior Indebtedness), unless and until such default shall
have been cured or waived or shall have ceased to exist; or

(ii)           a default, other than a payment
default, on a Designated Senior Indebtedness occurs and is continuing that then
permits holders of such Designated Senior Indebtedness to accelerate its
maturity and the Trustee receives a notice of the default (a “Payment Blockage
Notice”) from a Representative or the Company.

If the Trustee receives any Payment Blockage Notice pursuant to clause
(ii) above, no subsequent Payment Blockage Notice shall be effective for
purposes of this Section unless and until (A) at least 365 days shall have
elapsed since the initial effectiveness of the immediately prior Payment Blockage
Notice, and (B) all scheduled payments of principal, premium, if any, and
interest on the Securities that have come due have been paid in full in
cash.  No nonpayment default that existed
or was continuing on the date of delivery of any Payment Blockage Notice to the
Trustee shall be, or be made, the basis for a subsequent Payment Blockage
Notice.

The Company may and shall resume payments on and distributions in
respect of the Securities upon the earlier of:

(1)           the date upon which
the default is cured or waived or ceases to exist, or

(2)           in the case of a
default referred to in clause (ii) above, 179 days pass after notice is
received if the maturity of such Designated Senior Indebtedness has not been
accelerated, unless this Article XII otherwise prohibits the payment or
distribution at the time of such payment or distribution.

 45
 

 

 

Upon any payment by the Company, or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to
creditors upon any dissolution or winding-up or liquidation or reorganization
of the Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, all amounts due or to become due upon all
Senior Indebtedness shall first be paid in full in cash or other payment
satisfactory to the holders of such Senior Indebtedness, or payment thereof in
accordance with its terms provided for in cash or other payment satisfactory to
the holders of such Senior Indebtedness, before any payment is made on account
of the principal of, premium, if any, or interest on the Securities (except
payments made pursuant to Article VI from monies deposited with the
Trustee pursuant thereto prior to commencement of proceedings for such
dissolution, winding-up, liquidation or reorganization); and upon any such
dissolution or winding-up or liquidation or reorganization of the Company or
bankruptcy, insolvency, receivership or other proceeding, any payment by the
Company, or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the Holders of the Securities
or the Trustee would be entitled, except for the provision of this
Article XII, shall (except as aforesaid) be paid by the Company or by any
receiver, trustee in bankruptcy, liquidating trustee, agent or other Person
making such payment or distribution, or by the Holders of the Securities or by
the Trustee under this Indenture if received by them or it, directly to the
holders of Senior Indebtedness (pro rata to such holders on the basis of the
respective amounts of Senior Indebtedness held by such holders, or as otherwise
required by law or a court order) or their representative or representatives,
or to the trustee or trustees under any indenture pursuant to which any
instruments evidencing any Senior Indebtedness may have been issued, as their
respective interests may appear, to the extent necessary to pay all Senior
Indebtedness in full, in cash or other payment satisfactory to the holders of
such Senior Indebtedness, after giving effect to any concurrent payment or
distribution to or for the holders of Senior Indebtedness, before any payment
or distribution or provision therefor is made to the Holders of the Securities
or to the Trustee.

For purposes of this Article XII, the words, “cash, property or
securities” shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other
corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this
Article XII with respect to the Securities to the payment of all Senior
Indebtedness which may at the time be outstanding; provided that (i) the Senior
Indebtedness is assumed by the new corporation, if any, resulting from any
reorganization or readjustment, and (ii) the rights of the holders of Senior
Indebtedness (other than leases which are not assumed by the Company or the new
corporation, as the case may be) are not, without the consent of such holders,
altered by such reorganization or readjustment. 
The consolidation of the Company with, or the merger of the Company
into, another corporation or the liquidation or dissolution of the Company
following the conveyance or transfer of its property as an entirety, or
substantially as an entirety, to another corporation upon the terms and
conditions provided for in Article V shall not be deemed a dissolution,
winding-up, liquidation or reorganization for the purposes of this Section 12.2
if such other corporation shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions stated in Article V.

In the event of the acceleration of the Securities because of an Event
of Default, no payment or distribution shall be made to the Trustee or any
Holder of Securities in respect of the principal of, premium, if any, or
interest on the Securities (including, but not limited to, the 

 46
 

 

redemption
price with respect to the Securities called for redemption in accordance with
Article III as provided in the Indenture), except payments and
distributions made by the Trustee as permitted by the first or second paragraph
of Section 12.5, until all Senior Indebtedness has been paid in full in
cash or other payment satisfactory to the holders of Senior Indebtedness or
such acceleration is rescinded in accordance with the terms of this
Indenture.  If payment of the Securities
is accelerated because of an Event of Default, the Company shall promptly
notify holders of Senior Indebtedness of the acceleration at the address set
forth in the notice from the Agent (or successor agent) to the Trustee as being
the address to which the Trustee should send its notice pursuant to this
Section 12.2, unless there are no payment obligations of the Company
thereunder and all obligations thereunder to extend credit have been terminated
or expired.

In the event that, notwithstanding the foregoing provisions, any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities (including, without limitation, by way
of setoff or otherwise), prohibited by the foregoing, shall be received by the
Trustee or the Holders of the Securities before all Senior Indebtedness is paid
in full in cash or other payment satisfactory to the holders of such Senior
Indebtedness, or provision is made for such payment thereof in accordance with
its terms in cash or other payment satisfactory to the holders of such Senior
Indebtedness, such payment or distribution shall be held in trust for the
benefit of and shall be paid over or delivered to the holders of Senior
Indebtedness or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any
Senior Indebtedness may have been issued, as their respective interests may
appear, as calculated by the Company, for application to the payment of all
Senior Indebtedness remaining unpaid to the extent necessary to pay all Senior
Indebtedness in full in cash or other payment satisfactory to the holders of
such Senior Indebtedness, after giving effect to any concurrent payment or
distribution to or for the holders of such Senior Indebtedness.

Nothing in this Section 12.2 shall apply to claims of, or payments
to, the Trustee under or pursuant to Section 7.7.  This Section 12.2 shall be subject to
the further provisions of Section 12.5.

Section 12.3.          Subrogation
of Securities.

Subject to the payment in full of all Senior Indebtedness, the rights
of the Holders of the Securities shall be subrogated to the extent of the
payments or distributions made to the holders of such Senior Indebtedness
pursuant to the provisions of this Article XII (equally and ratably with
the holders of all indebtedness of the Company which by its express terms is
subordinated to other indebtedness of the Company to substantially the same
extent as the Securities are subordinated and is entitled to like rights of
subrogation) to the rights of the holders of Senior Indebtedness to receive payments
or distributions of cash, property or securities of the Company applicable to
the Senior Indebtedness until the principal, premium, if any, and interest on
the Securities shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of the Senior
Indebtedness of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this
Article XII, and no payment pursuant to the provisions of this
Article XII, to or for the benefit of the holders of Senior Indebtedness
by Holders of the Securities or the Trustee, shall, as between the Company, its
creditors other than holders of Senior Indebtedness, and the 

 47
 

 

Holders
of the Securities, be deemed to be a payment by the Company to or on account of
the Senior Indebtedness; and no payments or distributions of cash, property or
securities to or for the benefit of the Holders of the Securities pursuant to
the subrogation provisions of this Article XII, which would otherwise have
been paid to the holders of Senior Indebtedness shall be deemed to be a payment
by the Company to or for the account of the Securities.  It is understood that the provisions of this
Article XII are and are intended solely for the purposes of defining the
relative rights of the Holders of the Securities, on the one hand, and the
holders of the Senior Indebtedness, on the other hand.

Nothing contained in this Article XII or elsewhere in this
Indenture or in the Securities is intended to or shall impair, as among the
Company, its creditors other than the holders of Senior Indebtedness, and the
Holders of the Securities, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Securities the principal of (and
premium, if any) and interest on the Securities as and when the same shall
become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders of the Securities and creditors
of the Company other than the holders of the Senior Indebtedness, nor shall
anything herein or therein prevent the Trustee or the Holder of any Security
from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this
Article XII of the holders of Senior Indebtedness in respect of cash,
property or securities of the Company received upon the exercise of any such
remedy.

Upon any payment or distribution of assets of the Company referred to
in this Article XII, the Trustee, subject to the provisions of
Section 7.1, and the Holders of the Securities shall be entitled to rely
upon any order or decree made by any court of competent jurisdiction in which
such bankruptcy, dissolution, winding-up, liquidation or reorganization
proceedings are pending, or a certificate of the receiver, trustee in
bankruptcy, liquidating trustee, agent or other person making such payment or
distribution, delivered to the Trustee or to the Holders of the Securities, for
the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of the Senior Indebtedness and other indebtedness of
the Company, the amount thereof or payable thereon and all other facts
pertinent thereto or to this Article XII.

Section 12.4.          Authorization
to Effect Subordination.

Each Holder of a Security by the holder’s acceptance thereof authorizes
and directs the Trustee on the holder’s behalf to take such action as may be
necessary or appropriate to effectuate the subordination as provided in this
Article XII and appoints the Trustee to act as the holder’s
attorney-in-fact for any and all such purposes. 
If the Trustee does not file a proper proof of claim or proof of debt in
the form required in any proceeding referred to in Section 6.3 hereof at
least 30 days before the expiration of the time to file such claim, the holders
of any Senior Indebtedness or their representatives are hereby authorized to
file an appropriate claim for and on behalf of the Holders of the Securities.

Section 12.5.          Notice
to Trustee.

The Company shall give prompt written notice in the form of an Officers’
Certificate to a Responsible Officer of the Trustee and to any paying agent of
any fact known to 

 48
 

 

the
Company which would prohibit the making of any payment of monies to or by the
Trustee or any paying agent in respect of the Securities pursuant to the
provisions of this Article XII. 
Notwithstanding the provisions of this Article XII or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts which would prohibit the making of any payment of
monies to or by the Trustee in respect of the Securities pursuant to the
provisions of this Article XII, unless and until a Responsible Officer of
the Trustee shall have received written notice thereof at the Corporate Trust
Office from the Company (in the form of an Officers’ Certificate) or a
Representative or a holder or holders of Senior Indebtedness or from any
trustee thereof; and before the receipt of any such written notice, the
Trustee, subject to the provisions of Section 7.1, shall be entitled in
all respects to assume that no such facts exist; provided that if on a date not
fewer than two Business Days prior to the date upon which by the terms hereof
any such monies may become payable for any purpose (including, without
limitation, the payment of the principal of, or premium, if any, or interest on
any Security) the Trustee shall not have received, with respect to such monies,
the notice provided for in this Section 12.5, then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power
and authority to receive such monies and to apply the same to the purpose for
which they were received, and shall not be affected by any notice to the
contrary which may be received by it on or after such prior date.

Notwithstanding anything in this Article XII to the contrary,
nothing shall prevent any payment by the Trustee to the Holders of monies
deposited with it pursuant to Section 8.1, and any such payment shall not
be subject to the provisions of Section 12.1 or 12.2.

The Trustee, subject to the provisions of Section 7.1, shall be
entitled to rely on the delivery to it of a written notice by a Representative
or a person representing himself to be a holder of Senior Indebtedness (or a
trustee on behalf of such holder) to establish that such notice has been given
by a Representative or a holder of Senior Indebtedness or a trustee on behalf
of any such holder or holders.  In the
event that the Trustee determines in good faith that further evidence is
required with respect to the right of any person as a holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this
Article XII, the Trustee may request such person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior
Indebtedness held by such person, the extent to which such person is entitled
to participate in such payment or distribution and any other facts pertinent to
the rights of such person under this Article XII, and if such evidence is
not furnished the Trustee may defer any payment to such person pending judicial
determination as to the right of such person to receive such payment.

Section 12.6.          Trustee’s
Relation to Senior Indebtedness.

The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article XII in respect of any Senior Indebtedness
at any time held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in Section 7.11 or elsewhere in this Indenture
shall deprive the Trustee of any of its rights as such holder.

With respect to the holders of Senior Indebtedness, the Trustee
undertakes to perform or to observe only such of its covenants and obligations
as are specifically set forth in this Article XII, and no implied
covenants or obligations with respect to the holders of Senior 

 49
 

 

Indebtedness
shall be read into this Indenture against the Trustee.  The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness and, subject to the
provisions of Section 7.1, the Trustee shall not be liable to any holder
of Senior Indebtedness if it shall pay over or deliver to Holders of
Securities, the Company or any other person money or assets to which any holder
of Senior Indebtedness shall be entitled by virtue of this Article XII or
otherwise.

Section 12.7.          No
Impairment of Subordination.

No right of any present or future holder of any Senior Indebtedness to
enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof which any such holder may have
or otherwise be charged with.

Section 12.8.          Article Applicable
to Paying Agents.

If at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and be then acting hereunder, the term “Trustee” as
used in this Article shall (unless the context otherwise requires) be
construed as extending to and including such Paying Agent within its meaning as
fully for all intents and purposes as if such Paying Agent were named in this
Article in addition to or in place of the Trustee; provided, however, that
the first paragraph of Section 12.5 shall not apply to the Company or any
Affiliate of the Company if it or such Affiliate acts as Paying Agent.

Section 12.9.          Senior
Indebtedness Entitled to Rely.

The holders of
Senior Indebtedness (including, without limitation, Designated Senior
Indebtedness) shall have the right to rely upon this Article XII, and no
amendment or modification of the provisions contained herein shall diminish the
rights of such holders unless such holders shall have agreed in writing
thereto.

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

	
   

  	
  CONCEPTUS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name of Trustee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

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