Document:

exh4-1_120408.htm

    RIGHTS
AGREEMENT

    

    Dated
as of December 4, 2008

    

    between

    

    EVERGREEN
ENERGY INC.

    

    and

    

    INTERWEST
TRANSFER COMPANY, INC.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

      TABLE
OF CONTENTS

      

       

      

      
        	 	Page
	 	 
	
                Section 1.    
      Certain Definitions. 

              	
                1

              

      

      
        	
                Section 2.    
      Appointment of Rights Agent. 

              	
                6

              

      

      
        	
                Section 3.    
      Issue of Rights Certificates. 

              	
                6

              

      

      
        	
                Section 4.    
      Form of Rights Certificates. 

              	
                8

              

      

      
        	
                Section 5.    
      Countersignature and Registration. 

              	
                9

              

      

      
        	
                Section 6.    
      Transfer, Split Up, Combination and Exchange of Rights
      Certificates; Mutilated, Destroyed, Lost or Stolen Rights
      Certificates. 

              	
                9

              

      

      
        	
                Section 7.     Exercise of Rights; Purchase
      Price; Expiration Date of Rights. 

              	
                10

              

      

      
        	
                Section 8.     Cancellation of Rights
      Certificates. 

              	
                12

              

      

      
        	
                Section 9.    
      Reservation and Availability of Capital
      Stock. 

              	
                12

              

      

      
        	
                Section 10.  
      Preferred Stock Record Date.

              	14

      

      
        	
                Section 11. 
       Adjustment of Purchase Price, Number and
      Kind
      of  Shares or Number of Rights.

              	14

      

      
        	
                Section 12.   Certificate of Adjusted Purchase Price
      or Number of Shares.

              	22

      

      
        	
                Section 13. 
       Consolidation, Merger or Sale or Transfer
      of Assets or Earning Power.

              	22

      

      
        	
                Section 14.  
      Fractional Rights and Fractional Shares.

              	26

      

      
        	
                Section 15.  
      Rights of Action.

              	27

      

      
        	
                Section 16.  
      Agreement of Rights Holders.

              	28

      

      
        	
                Section 17.  
      Rights Certificate Holder Not Deemed a
      Stockholder.

              	28

      

      
        	
                Section 18.  
      Duties of Rights Agent.

              	29

      

      
        	
                Section 19.   Compensation and Indemnification
      of the Rights Agent.

              	31

      

      
        	
                Section 20.  
      Merger or Consolidation or Change of Name of
      Rights Agent.

              	32

      

      
        	
                Section 21.  
      Change of Rights Agent.

              	32

      

      
        	
                Section 22.  
      Issuance of New Rights Certificates.

              	33

      

      
        	
                Section 23.   Redemption and
      Review.

              	34

      

      
        	
                Section 24.   Exchange.

              	35

      

      
        	
                Section 25.  
      Notice of Certain Events.

              	36

      

      
        	
                Section 26.   Notices.

              	37

      

      
        	
                Section 27.  
      Supplements and Amendments.

              	37

      

      
        	
                Section 28.   Successors.

              	38

      

      
        	
                Section 29.  
      Determinations and Actions by the Board,
      Etc.

              	38

      

      
        	
                Section 30.  
      Benefits of this Agreement.

              	38

      

      
        	
                Section 31.   Severability.

              	39

      

      
        	
                Section 32.  
      Governing Law.

              	39

      

      
        	
                Section 33.   Counterparts.

              	39

      

      
        	
                Section 34. 
       Descriptive Headings.

              	39

      

      

      
        
           

        

        
          -i-

          
            

          

        

        
           

        

      

    RIGHTS
AGREEMENT

    

    Rights Agreement, dated as of December
4, 2008 (the “Agreement”), between
Evergreen Energy Inc., a Delaware corporation (the “Company”), and
Interwest Transfer Company, Inc., a Utah corporation (the “Rights
Agent”).

     

    WHEREAS, on December 2, 2008, the Board
of Directors of the Company determined it desirable and in the best interests of
the Company and its stockholders for the Company to implement a rights plan by
executing this Agreement;

     

    WHEREAS, on December 2, 2008 (the
“Rights Dividend
Declaration Date”), the Board of Directors of the Company authorized and
declared a dividend of one preferred share purchase right (a “Right”) for each
share of Common Stock (as hereinafter defined) of the Company outstanding at the
Close of Business (as defined herein) on the Record Date (as defined herein),
and has authorized the issuance of one Right with respect to each share of
Common Stock of the Company issued (whether originally issued or delivered from
the Company’s treasury) between the Record Date and the earliest of the
Distribution Date, the Redemption Date and the Final Expiration Date (as such
terms are hereinafter defined); provided, however that Rights
may be issued with respect to shares of Common Stock that become outstanding
after the Distribution Date and prior to the Expiration Date (as defined herein)
in accordance with Section 22; and

     

    WHEREAS, each Right shall initially
represent the right to purchase one one-thousandth of one share of Series A
Junior Participating Preferred Stock of the Company having the rights, powers
and preferences set forth in the form of Certificate of Designation, Preferences
and Rights attached hereto as Exhibit A, upon
the terms and subject to the conditions hereinafter set forth.

     

    NOW, THEREFORE, in consideration of the
premises and the mutual agreements herein set forth, the parties hereby agree as
follows:

     

     

    Section 1.        Certain Definitions.

     

    For purposes of this Agreement, the
following terms have the meanings indicated:

     

    (a)           “Acquiring Person”
shall mean any Person that, together with all Affiliates and Associates of such
Person, shall be the Beneficial Owner of 15% or more of the shares of Common
Stock of the Company then outstanding, but shall not include (i) the
Company, (ii) any Subsidiary of the Company, or (iii) any employee
benefit plan of the Company or any Subsidiary of the Company, or any Person
holding shares of Common Stock for or pursuant to the terms of any such employee
benefit plan to the extent, and only to the extent, of such shares of Common
Stock so held.  Notwithstanding the foregoing, Fidelity
Investments together with their Affiliates and Associates (a “Qualified Exempt
Person”), who as of November 7, 2008, was the Beneficial Owner of in
excess of 15% of the Company’s outstanding Common Stock shall not be deemed an
“Acquiring Person”; provided however, that if
after the date hereof, any Qualified Exempt Person shall become at any time the
Beneficial Owner of an additional 2% of the shares of

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Common
Stock of the Company then outstanding in excess of the amount such Qualified
Exempt Person beneficially owned as of the date hereof, then such Qualified
Exempt Person shall be deemed an “Acquiring Person” hereunder as to all of their
Common Stock beneficially owned.  Notwithstanding anything in this
definition of “Acquiring Person” to the contrary:

     

    (i)           no
Person shall become an “Acquiring Person” as the result of an acquisition of
shares of Common Stock by the Company which, by reducing the number of shares of
Common Stock outstanding, increases the proportionate number of shares of Common
Stock beneficially owned by such Person to 15% or more of the shares of Common
Stock of the Company then outstanding; provided, however, that if a
Person shall become the Beneficial Owner of 15% or more of the shares of Common
Stock of the Company then outstanding by reason of share acquisitions by the
Company and shall, after such share acquisitions by the Company, become the
Beneficial Owner of any additional shares of Common Stock of the Company (other
than pursuant to a dividend or distribution paid or made by the Company on the
outstanding Common Stock or pursuant to a split or subdivision of the
outstanding Common Stock), then such Person shall be deemed to be an “Acquiring
Person” if such Person is then the Beneficial Owner of 15% or more of the Common
Stock then outstanding; and

     

    (ii)           if
the Board determines in good faith that a Person who would otherwise be an
“Acquiring Person,” as defined pursuant to the foregoing provisions of this
paragraph (a), has become such inadvertently (including, without limitation,
because (A) such Person was unaware that it beneficially owned a percentage of
Common Stock that would otherwise cause such Person to be an “Acquiring Person”
or (B) such Person was aware of the extent of its Beneficial Ownership of Common
Stock but had no actual knowledge of the consequences of such Beneficial
Ownership under this Agreement), and such Person divests as promptly as
practicable (as determined in good faith by the Board) a sufficient number of
shares of Common Stock so that such Person would no longer be an “Acquiring
Person,” as defined pursuant to the foregoing provisions of this paragraph (a),
then such Person shall not be deemed an “Acquiring Person” for any purposes of
this Agreement unless and until such Person shall again become an “Acquiring
Person.”

     

    (b)           “Affiliate” and “Associate” shall have
the respective meanings ascribed to such terms in Rule 12b-2 of the General
Rules and Regulations under the Exchange Act as in effect on the date of this
Agreement.

     

    (c)           A
Person shall be deemed the “Beneficial Owner” of,
and shall be deemed to “beneficially own,”
any securities:

     

    (i)           which
such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to acquire (whether such right is exercisable
immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (whether or not in writing), or upon the exercise
of conversion rights, exchange rights, other rights (other than these Rights),
warrants or options, or otherwise; provided, however, that a
Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,”
(A) securities tendered pursuant to a tender or exchange offer made by or
on behalf of such Person or any of such Person’s Affiliates or Associates until
such tendered securities are accepted for purchase or

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    exchange,
(B) securities issuable upon exercise of Rights at any time prior to the
occurrence of a Triggering Event, or (C) securities issuable upon exercise
of Rights from and after the occurrence of a Triggering Event which Rights were
acquired by such Person or any of such Person’s Affiliates or Associates prior
to the Distribution Date or pursuant to Section 3(a) or Section 22
hereof (the “Original
Rights”) or pursuant to Section 11(a)(i) hereof in connection with
an adjustment made with respect to any Original Rights;

     

    (ii)           which
such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to vote or dispose of or has “beneficial ownership” of
(as determined pursuant to Rule 13d-3 of the General Rules and Regulations under
the Exchange Act), including pursuant to any agreement, arrangement or
understanding, whether or not in writing; provided, however, that a
Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,”
any security under this subparagraph (ii) as a result of an agreement,
arrangement or understanding to vote such security if such agreement,
arrangement or understanding to vote such security (A) arises solely from a
revocable proxy given in response to a public proxy or consent solicitation made
pursuant to, and in accordance with, the applicable provisions of the General
Rules and Regulations under the Exchange Act and (B) is not also then reportable
by such Person on Schedule 13D under the Exchange Act (or any comparable or
successor report); or

     

    (iii)           which
are beneficially owned, directly or indirectly, by any other Person or any of
such Person’s Affiliates or Associates with which such Person or any of such
Person’s Affiliates or Associates has any agreement, arrangement or
understanding (whether or not in writing), for the purpose of acquiring,
holding, voting (except pursuant to a revocable proxy as described in the
proviso to subparagraph (ii) of this paragraph (c)) or disposing of any
securities of the Company; provided, however, that nothing
in this paragraph (c) shall cause a Person engaged in business as an
underwriter of securities to be the “Beneficial Owner” of, or to “beneficially
own,” any securities acquired through such Person’s participation in good faith
in a firm commitment underwriting until the expiration of forty (40) days after
the date of such acquisition; provided further,
however, that
no Person who is an officer, director or employee of the Company or any
Subsidiary of the Company shall be deemed, solely by reason of such Person’s
status or authority as such, to be the “Beneficial Owner” of, or to
“beneficially own,” any securities that are “beneficially owned” (as defined in
this paragraph (c)), including, without limitation, in a fiduciary capacity, by
the Company or any Subsidiary of the Company, or by any other such officer,
director or employee of the Company or any Subsidiary of the
Company.

     

    (d)           “Board” shall mean the
Board of Directors of the Company.

     

    (e)           “Business Day” shall
mean any day other than a Saturday, a Sunday, or a day on which banking or trust
institutions in the State of Colorado are authorized or obligated by law or
executive order to close.

     

    (f)           “Close of Business” on
any given date shall mean 5:00 P.M., Denver time, on such date; provided, however, that if such
date is not a Business Day it shall mean 5:00 P.M., Denver time, on the next
succeeding Business Day.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (g)           “Common Stock” when
used with reference to the Company shall mean the shares of the common stock,
par value $0.001 per share, of the Company.  “Common Stock” when used
with reference to any Person other than the Company shall mean the class of
capital stock with the greatest aggregate voting power, or the class of equity
securities or other equity interests having power to control or direct the
management of such Person.

     

    (h)           “Company” shall mean
Evergreen Energy Inc., a Delaware corporation.

     

    (i)           “Current Value” shall
have the meaning set forth in Section 11(a)(iii) hereof.

     

    (j)           “Distribution Date”
shall mean the earlier of (i) the Close of Business on the tenth Business Day
after the Stock Acquisition Date (or, if the tenth Business Day after the Stock
Acquisition Date occurs before the Record Date, the Close of Business on the
Record Date), or (ii) the Close of Business on the tenth Business Day (or, if
such tenth Business Day occurs before the Record Date, the Close of Business on
the Record Date), or such specified or unspecified later date on or after the
Record Date as may be determined by action of the Board prior to such time as
any Person becomes an Acquiring Person, after the date of the commencement by
any Person (other than the Company, any Subsidiary of the Company or any
employee benefit plan of the Company or of any Subsidiary of the Company or any
Person holding shares of Common Stock for or pursuant to the terms of any such
employee benefit plan) of, or of the first public announcement of the intention
of any Person (other than any of the Persons referred to in the preceding
parenthetical) to commence, a tender or exchange offer the consummation of which
would result in such Person becoming the beneficial owner of 15% or more of the
outstanding shares of Common Stock.

     

    (k)           “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended, as in effect on the date
of this Agreement.

     

    (l)           “Exchange Date” shall
have the meaning set forth in Section 7(a) hereof.

     

    (m)           “Expiration Date”
shall have the meaning set forth in Section 7(a) hereof.

     

    (n)           “Final Expiration
Date” shall have the meaning set forth in Section 7(a)
hereof.

     

    (o)           “NASDAQ” shall have
the meaning set forth in Section 11(d)(i).

     

    (p)           “Person” shall mean
any individual, firm, corporation, partnership or other entity, and shall
include any successor (by merger or otherwise) of such entity.

     

    (q)           “Preferred Stock”
shall mean shares of Series A Junior Participating Preferred Stock, par value
$0.001 per share, of the Company.

     

    (r)           “Principal Party”
shall have the meaning set forth in Section 13(b) hereof.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (s)           “Purchase Price” shall
have the meaning set forth in Section 4(a) and Section 11(a)(ii)
hereof.

     

    (t)           “Record Date” shall
mean the Close of Business on December 19, 2008.

     

    (u)           “Redemption Date”
shall have the meaning set forth in Section 7(a) hereof.

     

    (v)           “Redemption Period”
shall have the meaning set forth in Section 23(a) hereof.

     

    (w)           “Right” shall have the
meaning set forth in the recitals hereof.

     

    (x)           “Rights Agent” shall
mean Interwest Transfer Company, Inc., a Utah corporation.

     

    (y)           “Rights Certificate”
shall have the meaning set forth in Section 3(d) hereof.

     

    (z)           “Rights Dividend Declaration
Date” shall have the meaning set forth in the recitals
hereof.

     

    (aa)           “Section 11(a)(ii)
Event” shall mean any event described in Section 11(a)(ii)
hereof.

     

    (bb)           “Section 11(a)(ii)
Trigger Date” shall have the meaning set forth in Section 11(a)(iii)
hereof.

     

    (cc)           “Section 13
Event” shall mean any event described in clause (x), (y) or (z) of
Section 13(a) hereof.

     

    (dd)           “Securities Act” shall
mean the Securities Act of 1933, as amended, as in effect on the date of this
Agreement.

     

    (ee)           “Spread” shall have
the meaning set forth in Section 11(a)(iii) hereof.

     

    (ff)           “Stock Acquisition
Date” shall mean the first date of public announcement (which, for
purposes of this definition, shall include, without limitation, a report filed
pursuant to Section 13(d) of the Exchange Act) by the Company or an
Acquiring Person that an Acquiring Person has become such, or such earlier date
as a majority of the Board shall become aware of the existence of such an
Acquiring Person.

     

    (gg)           “Subsidiary” of any
Person shall mean any corporation or other entity of which a majority of the
voting power of the voting equity securities or equity interests is owned,
directly or indirectly, by such Person, or is otherwise controlled by such
Person.

     

    (hh)           “Substitution Period”
shall have the meaning set forth in Section 11(a)(iii).

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (ii)           “TIDE Committee” shall
have the meaning set forth in Section 23(c).

     

    (jj)           “Trading Day” shall
have the meaning set forth in Section 11(d)(i).

     

    (kk)           “Triggering Event”
shall mean any Section 11(a)(ii) Event or any Section 13
Event.

     

     

    Section 2.         Appointment of Rights Agent.

     

    The Company hereby appoints the Rights
Agent to act as agent for the Company and the holders of the Rights (who, in
accordance with Section 3 hereof, shall, prior to the Distribution Date,
also be the holders of Common Stock) in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment.  The
Company may from time to time appoint such co-Rights Agents as it may deem
necessary or desirable.

     

     

    Section 3.         Issue of Rights Certificates.

     

    (a)           As
promptly as practicable following the Record Date, the Company shall make
available a copy of a Summary of Rights to Purchase Preferred Stock, in
substantially the form attached hereto as Exhibit B (the
“Summary of
Rights”), to each record holder of Common Stock who may so request from
time to time prior to the Expiration Date. With respect to certificates for
shares of Common Stock outstanding as of the Record Date, until the Distribution
Date, the Rights shall be evidenced by such certificates for the Common Stock
and the registered holders of the Common Stock shall also be the registered
holders of the associated Rights.  Until the Distribution Date (or the
earlier Expiration Date or Final Expiration Date), the transfer of any
certificate representing shares of Common Stock in respect of which Rights have
been issued shall also constitute the transfer of the Rights associated with the
shares of Common Stock represented thereby.

     

    (b)           Rights
shall be issued in respect of all shares of Common Stock issued (whether
originally issued or from the Company’s treasury) after the Record Date but
prior to the earliest of the Distribution Date, the Redemption Date and the
Final Expiration Date; provided, however, Rights shall
also be issued to the extent provided in Section 22 hereof in respect of
all shares of Common Stock which are issued (whether originally issued or from
the Company’s treasury) after the Distribution Date and prior to the Expiration
Date.  Certificates representing such shares of Common Stock shall
also be deemed to be certificates for Rights, and shall bear the following
legend (in addition to any other legends that may be required):

     

    This
certificate also evidences and entitles the holder hereof to certain Rights as
set forth in a Rights Agreement between Evergreen Energy Inc. (the “Company”)
and Interwest Transfer Company, Inc. (the “Rights Agent”) dated as of December
4, 2008, as the same
may be amended from time to time (the “Rights Agreement”), the terms of which
are hereby incorporated herein by reference and a copy of which is on file at
the principal executive

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    offices
of the Company.  Under certain circumstances, as set forth in the
Rights Agreement, such Rights shall be evidenced by separate certificates and
shall no longer be evidenced by this certificate.  The Company shall
mail to the holder of this certificate a copy of the Rights Agreement as in
effect on the date of mailing without charge after receipt of a written request
therefor.

     

    Under
certain circumstances set forth in the Rights Agreement, Rights issued to, or
held by, any Person who is, was or becomes an Acquiring Person or any Affiliate
or Associate thereof (as such terms are defined in the Rights Agreement),
whether currently held by or on behalf of such Person or by any subsequent
holder, become null and void.

     

    With
respect to such certificates containing the foregoing legend, until the earlier
of (i) the Distribution Date or (ii) the Expiration Date, the Rights
associated with the Common Stock represented by such certificates shall be
evidenced by such certificates alone and registered holders of Common Stock
shall also be the registered holders of the associated Rights, and the transfer
of any such certificate shall also constitute the transfer of the Rights
associated with the Common Stock represented thereby.  Notwithstanding
this paragraph (b), the omission of the foregoing legend shall not affect the
enforceability of any part of this Agreement or the rights of any holder of the
Rights.

     

    (c)           Until
the Distribution Date, (i) the Rights shall be evidenced (subject to the
provisions of paragraph (a) of this Section 3) by the certificates for
Common Stock registered in the names of the holders thereof (which certificates
for Common Stock shall also be deemed to be Rights Certificates) and not by
separate Rights Certificates, and (ii) the Rights shall be transferable only in
connection with the transfer of the underlying shares of Common Stock (including
a transfer to the Company).

     

    (d)           As
soon as practicable after the Distribution Date, the Company shall prepare and
execute, the Rights Agent shall countersign and the Company shall send or cause
to be sent (and the Rights Agent shall, if requested, send) by first-class,
insured, postage-prepaid mail, to each record holder of Common Stock as of the
Close of Business on the Distribution Date, at the address of such holder shown
on the records of the Company, a rights certificate, in substantially the form
of Exhibit C hereto
(the “Rights
Certificate”), evidencing one Right for each share of Common Stock so
held, subject to adjustment as provided herein.  In the event that an
adjustment in the number of Rights per share of Common Stock has been made
pursuant to Section 11 hereof, at the time of distribution of the Rights
Certificates, the Company shall make necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) so that Rights
Certificates representing only whole numbers of Rights are distributed and cash
is paid in lieu of any fractional Rights.  As of and after the
Distribution Date, the Rights shall be evidenced solely by such Rights
Certificates.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Section 4.         Form of Rights Certificates.

     

    (a)           The
Rights Certificates (and the forms of election to purchase and of assignment to
be printed on the reverse thereof) shall be substantially the same as Exhibit C hereto
and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate,
and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any applicable law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any stock exchange on which
the Rights may from time to time be listed, or to conform to
usage.  Subject to the provisions of Section 11 and
Section 22 hereof, the Rights Certificates, whenever issued, shall be dated
as of the Record Date, shall show the date of countersignature, and on their
face shall entitle the holders thereof to purchase such number of one
one-thousandths of a share of Preferred Stock as shall be set forth therein at
the price set forth therein (such exercise price per one one-thousandth of a
share, the “Purchase
Price”), but the amount and type of securities purchasable upon exercise
of each Right and the Purchase Price thereof shall be subject to adjustment as
provided herein.

     

    (b)           Any
Rights Certificate issued pursuant to Section 3(d) or Section 22
hereof that represents Rights beneficially owned by (i) an Acquiring Person
or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of
an Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee after the Acquiring Person becomes such or (iii) a transferee of
an Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee prior to or concurrently with the Acquiring Person becoming such and
receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from the Acquiring Person to holders of equity interests in such
Acquiring Person or to any Person with whom such Acquiring Person has any
continuing agreement, arrangement or understanding regarding the transferred
Rights or (B) a transfer which a majority of the members of the Board has
determined is part of an agreement, arrangement or understanding which has as a
primary purpose or effect avoidance of Section 7(e) hereof, and any Rights
Certificate issued pursuant to Section 6 or Section 11 hereof upon
transfer, exchange, replacement or adjustment of any other Rights Certificate
referred to in this sentence, shall contain (to the extent feasible) the
following legend:

     

    The
Rights represented by this Rights Certificate are or were beneficially owned by
a Person who was or became an Acquiring Person or an Affiliate or Associate of
an Acquiring Person (as such terms are defined in the Rights
Agreement).  Accordingly, this Rights Certificate and the Rights
represented hereby may become null and void in the circumstances specified in
Section 7(e) of such Rights Agreement.

     

    The Company shall instruct the Rights
Agent in writing of the Rights which should be so legended and shall supply the
Rights Agent with such legended Rights Certificates.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Section 5.       
 Countersignature and Registration.

     

    (a)           The
Rights Certificates shall be executed on behalf of the Company by its Chief
Executive Officer, President, Chief Financial Officer or General Counsel and by
its Secretary or Assistant Secretary either manually or by facsimile
signature.  The Rights Certificates shall be manually countersigned by
the Rights Agent and shall not be valid for any purpose unless so
countersigned.  In case any officer of the Company who shall have
signed any of the Rights Certificates shall cease to be such officer of the
Company before countersignature by the Rights Agent and issuance and delivery by
the Company, such Rights Certificates, nevertheless, may be countersigned by the
Rights Agent, and issued and delivered by the Company with the same force and
effect as though the person who signed such Rights Certificates had not ceased
to be such officer of the Company; and any Rights Certificate may be signed on
behalf of the Company by any person who, at the actual date of the execution of
such Rights Certificate, shall be a proper officer of the Company to sign such
Rights Certificate, although at the date of the execution of this Rights
Agreement any such person was not such an officer.

     

    (b)           Following
the Distribution Date, the Rights Agent shall keep or cause to be kept, at its
principal office or at offices designated as the appropriate place for surrender
of Rights Certificates upon exercise or transfer, books for registration and
transfer of the Rights Certificates issued hereunder.  Such books
shall show the names and addresses of the respective holders of the Rights
Certificates, the number of Rights evidenced on its face by each of the Rights
Certificates and the date of each of the Rights Certificates.

     

     

    
      	
              Section 6.

            	
              Transfer, Split Up, Combination and
      Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen
      Rights Certificates.

            

    

     

    (a)           Subject
to the provisions of Section 4(b), Section 7(e) and Section 14
hereof, at any time after the Close of Business on the Distribution Date, and at
or prior to the Close of Business on the earlier of the Expiration Date or the
Final Expiration Date, any Rights Certificate or Certificates may be
transferred, split up, combined or exchanged for another Rights Certificate or
Certificates, entitling the registered holder to purchase a like number of one
one-thousandths of a share of Preferred Stock (or following a Triggering Event,
Common Stock, other securities, cash, or other assets, as the case may be) as
the Rights Certificate or Certificates surrendered then entitled such holder (or
former holder in the case of a transfer) to purchase.  Any registered
holder desiring to transfer, split up, combine or exchange any Rights
Certificate shall make such request in writing delivered to the Rights Agent,
and shall surrender the Rights Certificate or Certificates to be transferred,
split up, combined or exchanged at the office of the Rights Agent designated for
such purpose.  Neither the Rights Agent nor the Company shall be
obligated to take any action whatsoever with respect to the transfer of any such
surrendered Rights Certificate until the registered holder shall have properly
completed and signed the certificate contained in the form of assignment on the
reverse side of such Rights Certificate and shall have provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or
Affiliates or Associates thereof as the Company shall reasonably
request.  Thereupon the Rights Agent shall, subject to
Section 4(b), Section 7(e) and Section 14 hereof, countersign and
deliver to the Person entitled thereto a Rights Certificate or Certificates, as
the

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    case
may be, as so requested.  The Company may require payment by the
holder of Rights of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer, split up, combination or
exchange of Rights Certificates.

     

    (b)           Upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory
to them of the loss, theft, destruction or mutilation of a Rights Certificate,
and, in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to them, and, at the Company’s request, reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto, and
upon surrender to the Rights Agent and cancellation of the Rights Certificate,
if mutilated, the Company shall execute and deliver a new Rights Certificate of
like tenor to the Rights Agent for counter­signature and delivery to the
registered owner in lieu of the Rights Certificate so lost, stolen, destroyed or
mutilated.

     

     

    Section 7.         Exercise
of Rights; Purchase Price; Expiration Date of Rights.

     

    (a)           Subject
to Section 7(e) hereof, the registered holder of any Rights Certificate may
exercise the Rights evidenced thereby (except as otherwise provided herein
including, without limitation, in the restrictions on exercisability set forth
in Section 9(c), Section 11(a)(iii) and Section 23(a) hereof) in
whole or in part at any time after the Distribution Date upon surrender of the
Rights Certificate, with the form of election to purchase and the certificate on
the reverse side thereof duly and properly executed, to the Rights Agent at the
office of the Rights Agent designated for such purpose, together with payment of
the Purchase Price for each one one-thousandth of a share of Preferred Stock (or
other securities, cash or other assets, as the case may be) as to which the
Rights are exercised, at or prior to the earliest of (i) the close of
business on December 19, 2018 (the “Final Expiration
Date”), (ii) the time at which the Rights are redeemed (the “Redemption Date”) as
provided in Section 23 hereof or (iii) the time at which the Rights
are exchanged (the “Exchange Date”) as
provided in Section 24 hereof (the earliest of (i), (ii) and (iii) being
herein referred to as the “Expiration
Date”).

     

    (b)           Each
Right shall entitle the registered holder thereof to purchase one one-thousandth
of a share of Preferred Stock.  The Purchase Price for each one
one-thousandth of a share of Preferred Stock pursuant to the exercise of a Right
shall initially be $4.00, and shall be subject to adjustment from time to time
as provided in Section 11 and Section 13 hereof and shall be payable in lawful
money of the United States of America in accordance with paragraph (c) of this
Section 7.

     

    (c)           Upon
receipt of a Rights Certificate representing exercisable Rights, with the form
of election to purchase and the certificate duly and properly executed,
accompanied by payment, with respect to each Right so exercised, of the Purchase
Price per one one-thousandth of a share of Preferred Stock (or Common Stock,
other securities, cash or other assets, as the case may be) to be purchased and
an amount equal to any applicable transfer tax or governmental charge in cash,
or by certified check or cashier’s check payable to the order of the Company,
the Rights Agent shall, subject to Section 18(k) hereof, thereupon promptly
(i) (A) requisition from any transfer agent of the shares of Preferred
Stock (or make available, if the Rights Agent is the transfer agent)
certificates for the total number of one one-thousandths of a share of
Preferred

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Stock
to be purchased, and the Company hereby irrevocably authorizes its transfer
agent to comply with all such requests, or (B) if the Company shall have
elected to deposit the total number of shares of Preferred Stock issuable upon
exercise of the Rights hereunder with a depositary agent, requisition from the
depositary agent depositary receipts representing such number of one
one-thousandths of a share of Preferred Stock as are to be purchased (in which
case certificates for the shares of Preferred Stock represented by such receipts
shall be deposited by the transfer agent with the depositary agent), and the
Company shall direct the depositary to comply with such request,
(ii) requisition from the Company the amount of cash, if any, to be paid in
lieu of issuance of fractional shares in accordance with Section 14 hereof,
(iii) promptly after receipt of such certificates or depositary receipts,
cause the same to be delivered to or upon the order of the registered holder of
such Rights Certificate, registered in such name or names as may be designated
by such holder, and (iv) after receipt thereof, promptly deliver such cash,
if any, to or upon the order of the registered holder of such Rights
Certificate.  In the event that the Company is obligated to issue
other securities (including Common Stock) of the Company, pay cash and/or
distribute other property pursuant to Section 11(a) hereof, the Company
shall make all arrangements necessary so that such securities, cash and/or other
property are available for distribution by the Rights Agent, if and when
appropriate.  The Company reserves the right to require prior to the
occurrence of a Triggering Event that, upon any exercise of Rights, a number of
Rights be exercised so that only whole shares of Preferred Stock would be
issued.

     

    (d)           In
case the registered holder of any Rights Certificate shall exercise less than
all the Rights evidenced thereby, a new Rights Certificate evidencing Rights
equivalent to the Rights remaining unexercised shall be issued by the Rights
Agent and delivered to, or upon the order of, the registered holder of such
Rights Certificate, registered in such name or names as may be designated by
such holder, subject to the provisions of Section 14 hereof.

     

    (e)           Notwithstanding
anything in this Agreement to the contrary, from and after the first occurrence
of a Section 11(a)(ii) Event, any Rights beneficially owned by (i) an
Acquiring Person or any Associate or Affiliate of an Acquiring Person,
(ii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee after the Acquiring Person becomes such, or
(iii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee prior to or concurrently with the Acquiring
Person becoming such and receives such Rights pursuant to either (A) a
transfer (whether or not for consideration) from the Acquiring Person to holders
of equity interests in such Acquiring Person or to any Person with whom such
Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer which a majority of the
members of the Board has determined is part of an agreement, arrangement or
understanding which has as a primary purpose or effect the avoidance of this
Section 7(e), shall become null and void without any further action, and no
holder of such Rights shall have any rights whatsoever with respect to such
Rights, whether under any provision of this Agreement or
otherwise.  The Company shall use all reasonable efforts to ensure
that the provisions of this Section 7(e) and of Section 4(b) hereof
are complied with, but shall have no liability to any holder of Rights
Certificates or other Person as a result of its failure to make any
determinations with respect to an Acquiring Person or its Affiliates, Associates
or transferees hereunder.  The Rights Agent shall endeavor to comply
with the provisions hereof to the extent it has received instructions from the
Company concerning such matters.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (f)           Notwithstanding
anything in this Agreement to the contrary, neither the Rights Agent nor the
Company shall be obligated to undertake any action with respect to a registered
holder upon the occurrence of any purported exercise as set forth in this
Section 7 unless such registered holder shall have (i) properly
completed and signed the certificate contained in the form of election to
purchase set forth on the reverse side of the Rights Certificate surrendered for
such exercise, and (ii) provided such additional evidence of the identity
of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company shall reasonably request.

     

     

    Section 8.         Cancellation of
Rights Certificates.

     

    All Rights Certificates surrendered for
the purpose of exercise, transfer, split up, combination or exchange shall, if
surrendered to the Company or to any of its agents, be delivered to the Rights
Agent for cancellation or in cancelled form, or, if surrendered to the Rights
Agent, shall be cancelled by it, and no Rights Certificates shall be issued in
lieu thereof except as expressly permitted by any provisions of this Rights
Agreement.  The Company shall deliver to the Rights Agent for
cancellation and retirement, and the Rights Agent shall so cancel and retire,
any other Rights Certificate purchased or acquired by the Company otherwise than
upon the exercise thereof.  The Rights Agent shall deliver all
cancelled Rights Certificates to the Company, or shall, at the written request
of the Company, destroy such cancelled Rights Certificates, and in such case
shall deliver a certificate of destruction thereof to the Company.

     

     

    Section 9.         Reservation and Availability of Capital
Stock.

     

    (a)           The
Company shall cause to be reserved and kept available out of its authorized and
unissued shares of Preferred Stock (and following the occurrence of a Triggering
Event, out of its authorized and unissued shares of Common Stock and/or other
securities or out of its authorized and issued shares held in its treasury), the
number of shares of Preferred Stock (and, following the occurrence of a
Triggering Event, shares of Common Stock and/or other securities) that, as
provided in this Agreement, including Section 11(a)(iii) hereof, shall be
sufficient to permit the exercise in full of all outstanding
Rights.

     

    (b)           In
the event the shares of Preferred Stock (and, following the occurrence of a
Triggering Event, Common Stock and/or other securities) issuable upon the
exercise of Rights become listed on any national securities exchange or the NYSE
Arca, the Company shall use its reasonable best efforts to cause, from and after
such time as the Rights become exercisable, all shares reserved for such
issuance to be listed on such exchange or the NYSE Arca upon official notice of
issuance upon such exercise.

     

    (c)           The
Company shall use its reasonable best efforts to (i) file, as soon as
practicable following the earliest date after the first occurrence of a
Section 11(a)(ii) Event on which the consideration to be delivered by the
Company upon exercise of the Rights has been determined in accordance with this
Agreement, or as soon as is required by law following the Distribution Date, as
the case may be, a registration statement under the Securities Act
with

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    respect
to the securities purchasable upon exercise of the Rights on an appropriate
form, (ii) cause such registration statement to become effective as soon as
practicable after such filing, and (iii) cause such registration statement
to remain effective (with a prospectus at all times meeting the requirements of
the Securities Act) until the earlier of (A) the date as of which the
Rights are no longer exercisable for such securities, and (B) the
Expiration Date.  The Company shall also take such action as may be
appropriate under, or to ensure compliance with, the securities or “blue sky”
laws of the various states in connection with the exercisability of the
Rights.  The Company may temporarily suspend, for a period of time not
to exceed ninety (90) days after the date set forth in clause (i) of the
first sentence of this Section 9(c), the exercisability of the Rights in
order to prepare and file such registration statement and permit it to become
effective.  In addition, if the Company shall determine that a
registration statement is required following the Distribution Date, the Company
may temporarily suspend the exercisability of the Rights until such time as a
registration statement has been declared effective.  Upon any
suspension of exercisability of Rights referred to in this Section 9(c),
the Company shall issue a public announcement stating that the exercisability of
the Rights has been temporarily suspended, as well as a public announcement at
such time as the suspension is no longer in effect, in each case with
simultaneous written notice to the Rights Agent.  Notwithstanding any
provision of this Agreement to the contrary, the Rights shall not be exercisable
and shall be null and void so long as held by a holder in any jurisdiction where
the requisite qualification to the issuance to such holder, or the exercise by
such holder, of the Rights in such jurisdiction shall not have been obtained or
be obtainable, or the exercise thereof shall not be permitted under applicable
law or a registration statement shall not have been declared
effective.  The Rights Agent may assume that any Right exercised is
permitted to be exercised under applicable law and shall have no liability for
acting in reliance upon such assumption.

     

    (d)           The
Company shall take all such action as may be necessary to ensure that all one
one-thousandths of a share of Preferred Stock (and, following the occurrence of
a Triggering Event, Common Stock and/or other securities) delivered upon
exercise of Rights shall, at the time of delivery of the certificates for such
shares (subject to payment of the Purchase Price), be duly and validly
authorized and issued and fully paid and non-assessable.

     

    (e)           The
Company shall pay when due and payable any and all federal and state transfer
taxes and charges which may be payable in respect of the issuance or delivery of
the Rights Certificates or of any certificates for a number of one
one-thousandths of a share of Preferred Stock (or Common Stock and/or other
securities, as the case may be) upon the exercise of Rights.  The
Company shall not, however, be required to pay any transfer tax or charge which
may be payable in respect of any transfer or delivery of Rights Certificates to
a Person other than, or the issuance or delivery of certificates for a number of
one one-thousandths of a share of Preferred Stock (or Common Stock and/or other
securities, as the case may be) in a name other than that of the registered
holder of the Rights Certificate evidencing Rights surrendered for exercise or
to issue or deliver any certificates for a number of one one-thousandths of a
share of Preferred Stock (or Common Stock and/or other securities, as the case
may be) in a name other than that of the registered holder upon the exercise of
any Rights until any such tax or charge shall have been paid (any such tax or
charge being payable by the holder of such Rights Certificate at the time of
surrender) or until it has been established to the Company’s satisfaction that
no such tax or charge is due.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Section 10.      Preferred Stock Record Date.

     

    Each Person in whose name any
certificate for a number of one one-thousandths of a share of Preferred Stock
(or Common Stock and/or other securities, as the case may be) is issued upon the
exercise of Rights shall for all purposes be deemed to have become the holder of
record of such fractional shares of Preferred Stock (or Common Stock and/or
other securities, as the case may be) represented thereby on, and such
certificate shall be dated, the date upon which the Rights Certificate
evidencing such Rights was duly surrendered and payment of the Purchase Price
(and any applicable transfer taxes and charges) was made; provided, however, that if the
date of such surrender and payment is a date upon which the Preferred Stock (or
Common Stock and/or other securities as the case may be) transfer books of the
Company are closed, such Person shall be deemed to have become the record holder
of such shares (fractional or otherwise) on, and such certificate shall be
dated, the next succeeding Business Day on which the Preferred Stock (or Common
Stock and/or other securities as the case may be) transfer books of the Company
are open.  Prior to the exercise of the Rights evidenced thereby, the
holder of a Rights Certificate shall not be entitled to any rights of a
stockholder of the Company with respect to shares for which the Rights shall be
exercisable, including, without limitation, the right to vote, to receive
dividends or other distributions or to exercise any preemptive rights, and shall
not be entitled to receive any notice of any proceedings of the Company, except
as provided herein.

     

     

    Section 11.      Adjustment of
Purchase Price, Number and Kind of Shares or Number of Rights.

     

    The Purchase Price, the number and kind
of shares covered by each Right and the number of Rights outstanding are subject
to adjustment from time to time as provided in this
Section 11.

     

    (a)           (i)           In
the event the Company shall at any time after the date of this Agreement (A)
declare a dividend on the Preferred Stock payable in shares of Preferred Stock,
(B) subdivide the outstanding Preferred Stock, (C) combine the
outstanding Preferred Stock into a smaller number of shares or (D) issue any
shares of its capital stock in a reclassification of the Preferred Stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation), except
as otherwise provided in this Section 11(a) and in Section 7(e)
hereof, the Purchase Price in effect at the time of the record date for such
dividend or of the effective date of such subdivision, combination or
reclassification, and the number and kind of shares of Preferred Stock or the
number and kind of shares of capital stock issuable on such date, as the case
may be, shall be proportionately adjusted so that the holder of any Right
exercised after such time shall be entitled to receive, upon payment of the
aggregate adjusted Purchase Price then in effect necessary to exercise a Right
in full, the aggregate number and kind of shares of Preferred Stock or the
number and kind of shares of capital stock, as the case may be, which, if such
Right had been exercised immediately prior to such date and at a time when the
transfer books of the Company for the Preferred Stock (or other capital stock,
as the case may be) were open, such holder would have owned upon such exercise
and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification; provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the shares of capital stock of the

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    Company
issuable upon exercise of one Right.  If an event occurs which would
require an adjustment under both this Section 11(a)(i) and
Section 11(a)(ii) hereof, the adjustment provided for in this
Section 11(a)(i) shall be in addition to, and shall be made prior to, any
adjustment required pursuant to Section 11(a)(ii) hereof.

     

    (ii)           Subject
to Section 23 and Section 24 of this Agreement, in the event that any
Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or of any Subsidiary of the Company, or any Person
organized, appointed or established by the Company for or pursuant to the terms
of any such employee benefit plan), alone or together with its Affiliates and
Associates, shall become an Acquiring Person, unless the event causing such
Person to become an Acquiring Person is a transaction set forth in
Section 13(a) hereof, or is an acquisition of shares of Common Stock
pursuant to a cash tender offer made pursuant to Section 14(d) of the
Exchange Act for all outstanding shares of Common Stock (other than shares of
Common Stock beneficially owned by the Person making the offer or by its
Affiliates or Associates) at a price and on terms determined by at least
two-thirds of the Board, after receiving advice from one or more investment
banking firms, to be (a) at a price which is fair to stockholders (taking
into account all factors which such members of the Board deem relevant
including, without limitation, prices which could reasonably be achieved if the
Company or its assets were sold on an orderly basis designed to realize maximum
value) and (b) otherwise in the best interests of the Company and its
stockholders, proper provision shall be made so that promptly following the
Redemption Period (as defined in Section 23(a)), each holder of a Right
(except as provided below and in Section 7(e) hereof) shall thereafter have
the right to receive, upon exercise thereof and payment of an amount equal to
the then current Purchase Price in accordance with the terms of this Agreement,
in lieu of a number of one one-thousandths of a share of Preferred Stock, such
number of shares of Common Stock of the Company as shall equal the result
obtained by (x) multiplying the then current Purchase Price by the then
number of one one-thousandths of a share of Preferred Stock for which a Right
was or would have been exercisable immediately prior to the first occurrence of
a Section 11(a)(ii) Event, whether or not such Right was then exercisable,
and (y) dividing that product (which, following such first occurrence,
shall thereafter be referred to as the “Purchase Price” for
each Right and for all purposes of this Agreement except to the extent set forth
in Section 13 hereof) by 50% of the current market price per share of
Common Stock (determined pursuant to Section 11(d) hereof) on the date of
such first occurrence (such number of shares, the “Adjustment
Shares”).

     

    (iii)           The
Company at its option may substitute for a share of Common Stock issuable upon
the exercise of Rights in accordance with the foregoing subparagraph (ii) such
number or fractions of shares of Preferred Stock having an aggregate market
value equal to the current market price (as determined pursuant to Section 11(d)
hereof) per share of the Common Stock.  In the event that the number
of shares of Common Stock which is authorized by the Company’s Certificate of
Incorporation but not outstanding, or reserved for issuance for purposes other
than upon exercise of the Rights, is not sufficient to permit the exercise in
full of the Rights in accordance with the foregoing subparagraph (ii), the Board
shall, to the extent permitted by applicable law and by any agreements or
instruments then in effect to which the Company is a party, (A) determine
the excess of (1) the value of the Adjustment Shares issuable upon the
exercise of a Right (the “Current Value”) over
(2) the Purchase Price (such excess, the

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    “Spread”), and
(B) with respect to each Right (subject to Section 7(e) hereof), make
adequate provision to substitute for some or all of the Adjustment Shares, upon
exercise of a Right and payment of the applicable Purchase Price, (1) cash,
(2) a reduction in the Purchase Price, (3) Common Stock or other
equity securities of the Company (including, without limitation, shares, or
units of shares, of Preferred Stock which the Board has deemed to have the same
value as shares of Common Stock) (such shares of equity securities being herein
called “common stock
equivalents”), (4) debt securities of the Company, (5) other
assets or (6) any combination of the foregoing, having an aggregate value
equal to the Current Value, where such aggregate value has been determined by
the Board based upon the advice of an investment banking firm selected by the
Board; provided, however, if the
Company shall not have made adequate provision to deliver value pursuant to
clause (B) above within thirty (30) days following the later of
(x) the first occurrence of a Section 11(a)(ii) Event and (y) the date
on which the Company’s right of redemption pursuant to Section 23(a) hereof
expires (the later of (x) and (y) being referred to herein as the “Section 11(a)(ii)
Trigger Date”), then the Company shall be obligated to deliver, upon the
surrender for exercise of a Right and without requiring payment of the Purchase
Price, shares of Common Stock (to the extent available), and then, if necessary
such number of fractions of shares of Preferred Stock (to the extent available)
and then, if necessary, cash, which shares and/or cash have an aggregate value
equal to the Spread.

     

    If, upon the occurrence of a
Section 11(a)(ii) Event, the Board shall determine in good faith that it is
likely that sufficient additional shares of Common Stock could be authorized for
issuance upon exercise in full of the Rights, then if the Board so elects, the
thirty (30) day period set forth above may be extended to the extent necessary,
but not more than ninety (90) days after the Section 11(a)(ii) Trigger
Date, in order that the Company may seek stockholder approval for the
authorization of such additional shares (such period, as it may be extended, the
“Substitution
Period”).  To the extent that action is to be taken pursuant to
the preceding provisions of this Section 11(a)(iii), the Company
(x) shall provide, subject to Section 7(e) hereof, that such action
shall apply uniformly to all outstanding Rights, and (y) may suspend the
exercisability of the Rights until the expiration of the Substitution Period in
order to seek any authorization of additional shares and/or to decide the
appropriate form of distribution to be made pursuant to the first sentence of
this Section 11(a)(iii) and to determine the value thereof.  In
the event of any such suspension, the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended, as
well as a public announcement at such time as the suspension is no longer in
effect.  For purposes of this Section 11(a)(iii), the value of
the Common Stock shall be the current market price (as determined pursuant to
Section 11(d) hereof) per share of the Common Stock on the
Section 11(a)(ii) Trigger Date and the value of any “common stock
equivalent” shall be deemed to have the same value as the Common Stock on such
date.  The Board may, but shall not be required to, establish
procedures to allocate the right to receive shares of Common Stock upon the
exercise of the Rights among holders of Rights pursuant to this
Section 11(a)(iii).

     

    (b)           In
case the Company shall fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Stock entitling them (for a period expiring
within forty-five (45) calendar days after such record date) to subscribe for or
purchase Preferred Stock (or shares having the same rights, privileges and
preferences as the shares of Preferred Stock (“equivalent preferred
stock”)) or securities convertible into Preferred Stock or
equivalent

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    preferred
stock at a price per share of Preferred Stock or per share of equivalent
preferred stock (or having a conversion price per share, if a security
convertible into Preferred Stock or equivalent preferred stock) less than the
current market price per share of the Preferred Stock (as determined pursuant to
Section 11(d) hereof) on such record date, the Purchase Price to be in
effect after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the number of shares of Preferred Stock or
equivalent preferred stock outstanding on such record date, plus the number of
shares of Preferred Stock or equivalent preferred stock which the aggregate
offering price of the total number of shares of Preferred Stock and/or
equivalent preferred stock so to be offered (and/or the aggregate initial
conversion price of the convertible securities so to be offered) would purchase
at such current market price, and the denominator of which shall be the number
of shares of Preferred Stock or equivalent preferred stock outstanding on such
record date, plus the number of additional shares of Preferred Stock and/or
equivalent preferred stock to be offered for subscription or purchase (or into
which the convertible securities so to be offered are initially convertible);
provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right.  In case such subscription price
may be paid in a consideration part or all of which shall be in a form other
than cash, the value of such consideration shall be as determined in good faith
by the Board, whose determination shall be described in a statement filed with
the Rights Agent and shall be conclusive for all purposes.  Shares of
Preferred Stock or equivalent preferred stock owned by or held for the account
of the Company shall not be deemed outstanding for the purpose of any such
computation.  Such adjustment shall be made successively whenever such
a record date is fixed; and in the event that such rights, options or warrants
are not so issued, the Purchase Price shall be adjusted to be the Purchase Price
which would then be in effect if such record date had not been
fixed.

     

    (c)           In
case the Company shall fix a record date for a distribution to all holders of
Preferred Stock (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing or surviving
corporation) of evidences of indebtedness, cash (other than a regular quarterly
cash dividend out of the earnings or retained earnings of the Company), assets
(other than a dividend payable in Preferred Stock, but including any dividend
payable in stock other than Preferred Stock), or subscription rights or warrants
(excluding those referred to in Section 11(b) hereof), the Purchase Price
to be in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the current market price per share of the
Preferred Stock (as determined pursuant to Section 11(d) hereof) on such
record date, less the fair market value (as determined in good faith by the
Board, whose determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes) of the portion of the
cash, assets or evidences of indebtedness so to be distributed or of such
subscription rights or warrants applicable to a share of Preferred Stock, and
the denominator of which shall be such current market price per share of the
Preferred Stock; provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right.  Such adjustment shall be made
successively whenever such a record date is fixed; and in

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    the
event that such distribution is not so made, the Purchase Price shall again be
adjusted to be the Purchase Price which would then be in effect if such record
date had not been fixed.

     

    (d)           (i)           For
the purpose of any computation hereunder, the “current market price”
of the Common Stock on any date shall be deemed to be the average of the daily
closing prices per share of such Common Stock for the thirty (30) consecutive
Trading Days (as such term is hereinafter defined) immediately prior to, but not
including, such date, and for purposes of computations made pursuant to
Section 11(a)(iii) hereof, the “current market price” per share of Common
Stock on any date shall be deemed to be the average of the daily closing prices
per share of Common Stock for the ten (10) consecutive Trading Days immediately
following such date; provided, however, that in the
event that the current market price of the Common Stock is determined during a
period following the announcement by the issuer of such Common Stock of
(i) a dividend or distribution on such Common Stock payable in shares of
such Common Stock or securities convertible into such Common Stock (other than
the Rights), or (ii) any subdivision, combination or reclassification of
such Common Stock, and prior to the expiration of the requisite thirty (30)
Trading Day or ten (10) Trading Day periods, as set forth above, after the
ex-dividend date for such dividend or distribution, or the record date for such
subdivision, combination or reclassification, then, and in each such case, the
“current market price” shall be appropriately adjusted to take into account
ex-dividend trading.  The closing price for each day shall be the last
sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the NYSE Arca or, if the shares
of Common Stock are not listed or admitted to trading on the NYSE Arca, as
reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which the
shares of Common Stock are listed or admitted to trading or, if the shares of
Common Stock are not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by the NASD
Automated Quotations System (“NASDAQ”) or such
other system then in use, or, if on any such date the shares of Common Stock are
not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the shares
of Common Stock selected by the Board.

     

    If on any such date no market maker is
making a market in the Common Stock, the fair value of such shares on such date
as determined in good faith by the Board shall be used.  The term
“Trading Day” shall mean a day on which the principal national securities
exchange on which the shares of Common Stock are listed or admitted to trading
is open for the transaction of business, or, if the shares of Common Stock are
not listed or admitted to trading on any national securities exchange, the term
“Trading Day”
shall mean a Monday, a Tuesday, a Wednesday, a Thursday or a Friday on which
banking or trust institutions in the State of New York are not authorized or
obligated by law or executive order to close.  If the Common Stock is
not publicly held or not listed or traded, “current market price” shall mean the
fair value per share as determined in good faith by the Board, whose
determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    (ii)           For
the purpose of any computation hereunder, the “current market price”
per share of the Preferred Stock shall be determined in the same manner as set
forth above for the Common Stock in clause (i) of this Section 11(d)
(other than the last sentence thereof).  If the current market price
per share of the Preferred Stock cannot be determined in the manner provided
above or if the Preferred Stock is not publicly held or listed or traded in a
manner described in clause (i) of this Section 11(d), the “current
market price” per share of the Preferred Stock shall be conclusively deemed to
be an amount equal to 1,000 (as such number may be appropriately adjusted for
such events as stock splits, stock dividends and recapitalizations with respect
to the Common Stock occurring after the date of this Agreement) multiplied by
the current market price per share of the Common Stock.  If neither
the Common Stock nor the Preferred Stock is publicly held or so listed or
traded, the “current market price” per share of the Preferred Stock shall mean
the fair value per share as determined in good faith by the Board, whose
determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes.  For all purposes of this
Agreement, the “current market price” of one one-thousandth of a share of
Preferred Stock shall be equal to the “current market price” of one share of
Preferred Stock divided by 1,000.

     

    (e)           Anything
herein to the contrary notwithstanding, no adjustment in the Purchase Price
shall be required unless such adjustment would require an increase or decrease
of at least one percent (1%) in such price; provided, however, that any
adjustments which by reason of this Section 11(e) are not required to be
made shall be carried forward and taken into account in any subsequent
adjustment.  All calculations under this Section 11 shall be made
to the nearest cent or to the nearest ten-thousandth of a share of Common Stock
or other share or one-millionth of a share of Preferred Stock, as the case may
be.  Notwithstanding the first sentence of this Section 11(e), an
adjustment required by this Section 11 shall be made no later than the
earlier of (i) three years from the date of the transaction which requires such
adjustment or (ii) the Expiration Date.

     

    (f)           If
as a result of an adjustment made pursuant to Section 11(a)(ii) or
Section 13(a) hereof, the holder of any Right thereafter exercised shall
become entitled to receive any shares of capital stock of the Company other than
Preferred Stock, thereafter the number of such other shares so receivable upon
exercise of any Right and the Purchase Price thereof shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Preferred Stock contained in
Sections 11(a), (b), (c), (e), (g), (h), (i), (j), (k), (l) and (m) hereof,
and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to
the Preferred Stock shall apply on like terms to any such other
shares.

     

    (g)           All
Rights originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted
Purchase Price, the number of one one-thousandths of a share of Preferred Stock
purchasable from time to time hereunder upon exercise of the Rights, all subject
to further adjustment as provided herein.

     

    (h)           Unless
the Company shall have exercised its election as provided in Section 11(i),
upon each adjustment of the Purchase Price as a result of the calculations made
in Sections 11(b) and (c) hereof, each Right outstanding immediately prior
to the making of such

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    adjustment
shall thereafter evidence the right to purchase, at the adjusted Purchase Price,
that number of one one-thousandths of a share of Preferred Stock (calculated to
the nearest one-thousandths of a share) obtained by (i) multiplying (x) the
number of one one-thousandths of a share covered by a Right immediately prior to
this adjustment by (y) the Purchase Price in effect immediately prior to such
adjustment of the Purchase Price and (ii) dividing the product so obtained by
the Purchase Price in effect immediately after such adjustment of the Purchase
Price.

     

    (i)           The
Company may elect on or after the date of any adjustment of the Purchase Price
to adjust the number of Rights, in lieu of any adjustment in the number of one
one-thousandths of a share of Preferred Stock issuable upon the exercise of a
Right.  Each of the Rights outstanding after such adjustment of the
number of Rights shall be exercisable for the number of one one-thousandths of a
share of Preferred Stock for which a Right was exercisable immediately prior to
such adjustment.  Each Right held of record prior to such adjustment
of the number of Rights shall become that number of Rights (calculated to the
nearest ten-thousandth) obtained by dividing the Purchase Price in effect
immediately prior to adjustment of the Purchase Price by the Purchase Price in
effect immediately after adjustment of the Purchase Price.  The
Company shall make a public announcement of its election to adjust the number of
Rights, indicating the record date for the adjustment, and, if known at the
time, the amount of the adjustment to be made.  This record date may
be the date on which the Purchase Price is adjusted or any day thereafter, but,
if the Rights Certificates have been issued, shall be at least ten (10) Business
Days later than the date of the public announcement.  If Rights
Certificates have been issued, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Company shall, as promptly as
practicable, cause to be distributed to holders of record of Rights Certificates
on such record date Rights Certificates evidencing, subject to Section 14
hereof, the additional Rights to which such holders shall be entitled as a
result of such adjustment, or, at the option of the Company, shall cause to be
distributed to such holders of record in substitution and replacement for the
Rights Certificates held by such holders prior to the date of adjustment, and
upon surrender thereof, if required by the Company, new Rights Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment.  Rights Certificates so to be distributed shall be issued,
executed and countersigned in the manner provided for herein (and may bear, at
the option of the Company, the adjusted Purchase Price) and shall be registered
in the names of the holders of record of Rights Certificates on the record date
specified in the public announcement.

     

    (j)           Irrespective
of any adjustment or change in the Purchase Price or the number of one
one-thousandths of a share of Preferred Stock issuable upon the exercise of the
Rights, the Rights Certificates theretofore and thereafter issued may continue
to express the Purchase Price per one one-thousandth of a share and the number
of one one-thousandths of a share which were expressed in the initial Rights
Certificates issued hereunder.

     

    (k)           Before
taking any action that would cause an adjustment reducing the Purchase Price
below the then-par value, if any, of the number of one one-thousandths of a
share of Preferred Stock issuable upon exercise of the Rights, the Company shall
take any corporate action which may, in the opinion of its counsel, be necessary
in order that the Company may validly and legally issue, as fully paid and
non-assessable, such number of one one-thousandths of a share of Preferred Stock
at such adjusted Purchase Price.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    (l)           In
any case in which this Section 11 shall require that an adjustment in the
Purchase Price be made effective as of a record date for a specified event, the
Company may elect to defer until the occurrence of such event the issuance to
the holder of any Right exercised after such record date the number of one
one-thousandths of a share of Preferred Stock and other capital stock or
securities of the Company, if any, issuable upon such exercise over and above
the number of one one-thousandths of a share of Preferred Stock and other
capital stock or securities of the Company, if any, issuable upon such exercise
on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the
Company shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder’s right to receive such additional shares upon the
occurrence of the event requiring such adjustment.

     

    (m)           Anything
in this Section 11 to the contrary notwithstanding, the Company shall be
entitled to make such reductions in the Purchase Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent
that the Board in its sole discretion shall determine to be advisable in order
that any (i) consolidation or subdivision of the Preferred Stock,
(ii) issuance wholly for cash of any shares of Preferred Stock at less than
the current market price, (iii) issuance wholly for cash of shares of
Preferred Stock or securities which by their terms are convertible into or
exchangeable for Preferred Stock, (iv) stock dividends or (v) issuance
of rights, options or warrants referred to hereinabove in this Section 11,
hereafter made by the Company to holders of its Preferred Stock shall not be
taxable to such stockholders.

     

    (n)           The
Company shall not, at any time after the Distribution Date, (i) consolidate with
any other Person (other than a Subsidiary of the Company in a transaction which
complies with Section 11(o) hereof), (ii) merge with or into any other
Person (other than a Subsidiary of the Company in a transaction which complies
with Section 11(o) hereof) or (iii) sell or transfer (or permit any
Subsidiary to sell or transfer), in one transaction, or a series of related
transactions, assets or earning power aggregating more than 50% of the assets or
earning power of the Company and its Subsidiaries (taken as a whole) to any
other Person or Persons (other than the Company and/or any of its Subsidiaries
in one or more transactions each of which complies with Section 11(o)
hereof), if (x) at the time of or immediately after such consolidation, merger
or sale there are any rights, warrants or other instruments or securities
outstanding or agreements in effect which would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights or (y)
prior to, simultaneously with or immediately after such consolidation, merger or
sale, the stockholders of the Person who constitutes, or would constitute, the
“Principal Party” for purposes of Section 13(a) hereof shall have received
a distribution of Rights previously owned by such Person or any of its
Affiliates and Associates.

     

    (o)           Except
as permitted by Section 23, Section 24 or Section 27 hereof, the
Company shall not take (or permit any Subsidiary to take) after the Distribution
Date any action if at the time such action is taken it is reasonably foreseeable
that such action will diminish substantially or otherwise eliminate the benefits
intended to be afforded by the Rights.

     

    (p)           Anything
in this Agreement to the contrary notwithstanding, in the event that the
Company, at any time after the Rights Dividend Declaration Date and prior to the
Distribution Date, shall (i) declare a dividend on the outstanding shares
of Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding shares of Common Stock or

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    (iii) combine
the outstanding shares of Common Stock into a smaller number of shares, the
number of Rights associated with each share of Common Stock then outstanding, or
issued or delivered thereafter but prior to the Distribution Date, shall be
proportionately adjusted so that the number of Rights thereafter associated with
each share of Common Stock following any such event shall equal the result
obtained by multiplying the number of Rights associated with each share of
Common Stock immediately prior to such event by a fraction the numerator of
which shall be the total number of shares of Common Stock outstanding
immediately prior to the occurrence of the event and the denominator of which
shall be the total number of shares of Common Stock outstanding immediately
following the occurrence of such event.

     

     

    Section 12.       Certificate
of Adjusted Purchase Price or Number of Shares.

     

    Whenever an adjustment is made as
provided in Section 11 or Section 13 hereof, the Company shall (a)
promptly prepare a certificate setting forth such adjustment, and a brief
statement of the facts and computations accounting for such adjustment, (b)
promptly file with the Rights Agent and with each transfer agent for the
Preferred Stock and the Common Stock a copy of such certificate and (c) mail or
deliver a brief summary thereof to each holder of a Rights Certificate (or, if
prior to the Distribution Date, to each holder of a certificate representing
shares of Common Stock) in accordance with Section 25
hereof.  Notwithstanding the foregoing sentence, the failure of the
Company to prepare such certificate or statement or make such filings or
mailings shall not affect the validity of, or the force or effect of, the
requirement for such adjustment. The Rights Agent shall be fully protected in
relying on any such certificate and on any adjustment therein contained and
shall not be deemed to have knowledge of any adjustment unless and until it
shall have received such certificate.

     

     

    Section 13.       Consolidation, Merger or Sale or Transfer
of Assets or Earning Power.

     

    (a)           Subject
to Section 23 of this Agreement, in the event that, following the Stock
Acquisition Date, directly or indirectly,

     

    (x)            the
Company shall consolidate with, or merge with and into, any other Person (other
than a Subsidiary of the Company in a transaction which complies with
Section 11(o) hereof), and the Company shall not be the continuing or
surviving corporation of such consolidation or merger,

     

    (y)            any
Person (other than a Subsidiary of the Company in a transaction which complies
with Section 11(o) hereof) shall consolidate with, or merge with or into,
the Company, and the Company shall be the continuing or surviving corporation of
such consolidation or merger and, in connection with such consolidation or
merger, all or part of the outstanding shares of Common Stock shall be changed
into or exchanged for stock or other securities of any other Person (or of the
Company) or cash or any other property, or

     

    (z)            the
Company shall sell or otherwise transfer (or one or more of its Subsidiaries
shall sell or otherwise transfer), in one transaction or a series of related
transactions, assets, cash flow or earning power aggregating more than 50% of
the assets, cash flow or earning

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    power
of the Company and its Subsidiaries (taken as a whole) to any Person or Persons
(other than the Company and/or any Subsidiary of the Company in one or more
transactions each of which complies with Section 11(o) hereof), then, and
in each such case (except as may be contemplated by Section 13(e) hereof),
proper provision shall be made so that:

     

    (i)            each
holder of a Right, except as provided in Section 7(e) hereof, shall, upon
the expiration of the Redemption Period (as defined in Section 23(a)),
thereafter have the right to receive, upon the exercise thereof at the then
current Purchase Price in accordance with the terms of this Agreement, such
number of validly authorized and issued, fully paid, non-assessable and freely
tradable shares of Common Stock of the Principal Party (as such term is
hereinafter defined), not subject to any liens, encumbrances, rights of first
refusal or other adverse claims, as shall be equal to the result obtained
by

     

    (1)            multiplying
the then current Purchase Price by the number of one one-thousandths of a share
of Preferred Stock for which a Right was exercisable immediately prior to the
first occurrence of a Section 13 Event (or, if a Section 11(a)(ii)
Event has occurred prior to the first occurrence of a Section 13 Event,
multiplying the number of one one-thousandths of a share of Preferred Stock for
which a Right was exercisable immediately prior to the first occurrence of a
Section 11(a)(ii) Event by the Purchase Price in effect immediately prior
to such first  occurrence), and

     

    (2)            dividing
that product (which product, following the first occurrence of a Section 13
Event, shall be referred to as the “Purchase Price” for
each Right and for all purposes of this Agreement) by 50% of the current market
price per share of the shares of Common Stock of such Principal Party on the
date of consummation of such Section 13 Event (or the fair market value on
such date of other securities or property of the Principal Party, as provided
for herein);

     

    (ii)            such
Principal Party shall thereafter be liable for, and shall assume, by virtue of
such Section 13 Event, all the obligations and duties of the Company
pursuant to this Agreement;

     

    (iii)            the
term “Company”
shall thereafter be deemed to refer to such Principal Party, it being
specifically intended that the provisions of Section 11 hereof shall apply
only to such Principal Party following the first occurrence of a Section 13
Event;

     

    (iv)            such
Principal Party shall take such steps (including, but not limited to, the
reservation of a sufficient number of shares of its Common Stock) in connection
with the consummation of any such transaction as may be necessary to assure that
the provisions hereof shall thereafter be applicable, as nearly as reasonably
may be, in relation to its shares of Common Stock thereafter deliverable upon
the exercise of the Rights; and

     

    (v)            the
provisions of Section 11(a)(ii) hereof shall be of no effect following the
first occurrence of any Section 13 Event.

     

    (b)           “Principal Party”
shall mean

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    (i)           in
the case of any transaction described in clause (x) or (y) of the first sentence
of Section 13(a), (A) the Person (including the Company as successor
thereto or as the surviving corporation) that is the issuer of any securities
into which shares of Common Stock of the Company are converted in such merger or
consolidation, or, if there is more than one such issuer, the issuer of Common
Stock that has the highest aggregate current market price (determined pursuant
to Section 11(d) hereof) and (B) if no securities or other equity interests are
so issued, the Person (including the Company as successor thereto or as the
surviving corporation) that is the other constituent party to such merger or
consolidation, or, if there is more than one such Person, the Person that is a
constituent party to such merger or consolidation whose Common Stock has the
highest aggregate current market price (determined pursuant to Section 11(d)
hereof); and

     

    (ii)           in
the case of any transaction described in clause (z) of the first sentence of
Section 13(a), the Person that is the party receiving the greatest portion
of the assets, cash flow or earning power transferred pursuant to such
transaction or transactions, or, if each Person that is a party to such
transaction or transactions receives the same portion of the assets or earning
power transferred pursuant to such transaction or transactions or if the Person
receiving the largest portion of such assets or earning power cannot be
determined, the Person that has received such assets or earning power whose
Common Stock has the highest aggregate current market price (determined pursuant
to Section 11(d) hereof); provided, however, that in any
such case:  (1) if the Common Stock of such Person is not at such time
and has not been continuously over the preceding twelve (12) month period
registered under Section 12 of the Exchange Act, and such Person is a
direct or indirect Subsidiary of another Person the Common Stock of which is and
has been so registered, “Principal Party” shall refer to such other Person;
(2) if the Common Stock of such Person is not and has not been so
registered and such Person is a Subsidiary, directly or indirectly, of more than
one Person, the Common Stocks of two or more of which are and have been so
registered, “Principal Party” shall refer to whichever of such Persons is the
issuer of the Common Stock having the greatest aggregate market value; and (3)
if the Common Stock of such Person is not and has not been so registered and
such Person is owned, directly or indirectly, by a joint venture formed by two
or more Persons that are not owned, directly or indirectly, by the same Person,
the rules set forth in (1) and (2) above shall apply to each of the chains of
ownership having an interest in such joint venture as if such party were a
Subsidiary of both or all of such joint venturers, and the Principal Parties in
each such chain shall bear the obligations set forth in this Section 13 in the
same ratio as their direct or indirect interests in such Person bear to the
total of such interests.

     

    (c)           The
Company shall not consummate any Section 13 Event unless the Principal
Party shall have a sufficient number of authorized shares of its Common Stock
which have not been issued or reserved for issuance to permit the exercise in
full of the Rights in accordance with this Section 13 and unless prior
thereto the Company and such Principal Party shall have executed and delivered
to the Rights Agent a supplemental agreement providing for the terms set forth
in paragraphs (a) and (b) of this Section 13 and further providing
that, as soon as practicable after the date of any such Section 13 Event,
the Principal Party shall:

     

    (i)           prepare
and file a registration statement under the Securities Act, with respect to the
Rights and the securities purchasable upon exercise of the Rights on
an

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    appropriate
form, and use its best efforts to cause such registration statement to
(A) become effective as soon as practicable after such filing and
(B) remain effective (with a prospectus at all times meeting the
requirements of the Securities Act) until the Expiration Date;

     

    (ii)           deliver
to holders of the Rights historical financial statements for the Principal Party
and each of its Affiliates that comply in all respects with the requirements for
registration on Form 10 under the Exchange Act;

     

    (iii)           use
its best efforts to obtain any necessary regulatory approvals in respect of the
securities purchasable upon exercise of outstanding Rights; and

     

    (iv)           use
its best efforts, if such Common Stock of the Principal Party shall be listed or
admitted to trading on the NYSE Arca or on another national securities exchange
or on the NASDAQ Stock Market, to list or admit to trading (or continue the
listing of) the Rights and the securities purchasable upon exercise of the
Rights on the NYSE Arca or on such securities exchange or on the NASDAQ Stock
Market, or if the securities of the Principal Party purchasable upon exercise of
the Rights shall not be listed or admitted to trading on the NYSE Arca or a
national securities exchange or on the NASDAQ Stock Market, to cause the Rights
and the securities purchasable upon exercise of the Rights to be reported by
such other system then in use.

     

    (d)           In
case the Principal Party that is to be a party to a transaction referred to in
this Section 13 has at the time of such transaction, or immediately following
such transaction shall have, a provision in any of its authorized securities or
in its certificate or articles of incorporation or by-laws or other instrument
governing its affairs, or any other agreements or arrangements, which provision
would have the effect of (i) causing such Principal Party to issue, in
connection with, or as a consequence of, the consummation of a transaction
referred to in this Section 13, shares of Common Stock of such Principal Party
at less than the then current market price per share (as determined pursuant to
Section 11(d) hereof) or securities exercisable for, or convertible into, Common
Stock of such Principal Party at less than such then current market price (other
than to holders of Rights pursuant to this Section 13), (ii) providing for any
special payment, tax or similar provisions in connection with the issuance of
the Common Stock of such Principal Party pursuant to the provisions of this
Section 13 or (iii) otherwise eliminating or substantially diminishing the
benefits intended to be afforded by the Rights in connection with, or as a
consequence of, the consummation of a transaction referred to in this Section
13, then, in such event, the Company shall not consummate any such transaction
unless prior thereto the Company and such Principal Party shall have executed
and delivered to the Rights Agent a supplemental agreement providing that the
provision in question of such Principal Party shall have been cancelled, waived
or amended, or that the authorized securities shall be redeemed, so that the
applicable provision shall have no effect in connection with, or as a
consequence of, the consummation of such transaction.

     

    (e)           Notwithstanding
anything in this Agreement to the contrary, Section 13 shall not be
applicable to a transaction described in subparagraphs (x) and (y) of
Section 13(a) if (i) such transaction is consummated with a Person or
Persons (or a wholly owned subsidiary of any such Person or Persons) who
acquired shares of Common Stock pursuant to a cash tender

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    offer
for all outstanding shares of Common Stock which complies with the provisions of
Section 11(a)(ii) hereof, (ii) the price per share of Common Stock
offered in such transaction is not less than the price per share of Common Stock
paid to all holders of Common Stock whose shares were purchased pursuant to such
cash tender offer and (iii) the form of consideration being offered to the
remaining holders of shares of Common Stock pursuant to such transaction is the
same as the form of consideration paid pursuant to such cash tender
offer.  Upon consummation of any such transaction contemplated by this
Section 13(e), all Rights hereunder shall expire.

     

    (f)           The
provisions of this Section 13 shall similarly apply to successive mergers
or consolidations or sales or other transfers.  In the event that a
Section 13 Event shall occur at any time after the occurrence of a
Section 11(a)(ii) Event, the Rights which have not theretofore been
exercised shall thereafter become exercisable in the manner described in
Section 13(a) hereof.

     

     

    Section 14.       Fractional Rights and Fractional Shares.

     

    (a)           The
Company shall not be required to issue fractions of Rights except prior to the
Distribution Date as provided in Section 11(p) hereof, or to distribute
Rights Certificates which evidence fractional Rights.  In lieu of such
fractional Rights, there shall be paid to the registered holders of the Rights
Certificates with regard to which such fractional Rights would otherwise be
issuable, an amount in cash equal to the same fraction of the current market
value of the whole Right.  For the purposes of this
Section 14(a), the current market value of a whole Right shall be the
closing price of the Rights for the Trading Day immediately prior to the date on
which such fractional Rights would have been otherwise issuable.  The
closing price for any day shall be the last sale price, or, in case no such sale
takes place on such day, the average of the high bid and low asked prices, in
either case as reported by the NYSE Arca or, if the Rights are not listed or
admitted to trading on the NYSE Arca , as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal
national securities exchange on which the Rights are listed or admitted to
trading, or such other system then in use or, if on any such date the Rights are
not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the Rights
selected by the Board.  If on any such date no such market maker is
making a market in the Rights, the fair value of the Rights on such date as
determined in good faith by the Board shall be used.  In the event the
Rights are listed or admitted to trading on a national securities exchange, the
closing price for any day shall be the last sale price, regular way, or, in case
no such sale takes place on such day, the average of the high bid and low asked
prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to the national securities exchange on
which the Rights are listed or admitted to trading.

     

    (b)           The
Company shall not be required to issue fractions of shares of Preferred Stock
(other than fractions which are integral multiples of one one-thousandth of a
share of Preferred Stock) upon exercise of the Rights or to distribute
certificates which evidence fractional shares of Preferred Stock (other than
fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock).  In lieu of fractional shares of Preferred Stock
that are

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    not
integral multiples of one one-thousandth of a share of Preferred Stock, the
Company may pay to the registered holders of Rights Certificates at the time
such Rights are exercised as herein provided an amount in cash equal to the same
fraction of the current market value of one one-thousandth of a share of
Preferred Stock.  For purposes of this Section 14(b), the current
market value of one one-thousandth of a share of Preferred Stock shall be one
one-thousandth of the closing price of a share of Preferred Stock (as determined
pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately prior
to the date of such exercise.

     

    (c)           Following
the occurrence of one of the events specified in Section 11 giving rise to
the right to receive Common Stock, common stock equivalents or other securities
upon the exercise of a Right, the Company shall not be required to issue
fractions of shares of Common Stock, common stock equivalents or other
securities upon exercise of the Rights or to distribute certificates which
evidence fractional shares of Common Stock, common stock equivalents or other
securities.  In lieu of fractional shares of Common Stock, common
stock equivalents or other securities, the Company may pay to the registered
holders of Rights Certificates at the time such Rights are exercised as herein
provided an amount in cash equal to the same fraction of the current market
value of one (1) share of Common Stock, common stock equivalents or other
securities.  For purposes of this Section 14(c), the current
market value of one share of Common Stock shall be the closing price of one
share of Common Stock (as determined pursuant to Section 11(d)(i) hereof)
for the Trading Day immediately prior to the date of such exercise.

     

    (d)           The
holder of a Right by the acceptance of the Rights expressly waives such holder’s
right to receive any fractional Rights or any fractional shares upon exercise of
a Right, except as permitted by this Section 14.

     

     

    Section 15.       Rights of Action.

     

    All rights of action in respect of this
Agreement, except the rights of action vested in the Rights Agent pursuant to
Section 18 and Section 19 hereof, are vested in the respective
registered holders of the Rights Certificates (and, prior to the Distribution
Date, the registered holders of the Common Stock); and any registered holder of
any Rights Certificate (or, prior to the Distribution Date, of the Common
Stock), without the consent of the Rights Agent or of the holder of any other
Rights Certificate (or, prior to the Distribution Date, of the Common Stock),
may, in his own behalf and for his own benefit, enforce, and may institute and
maintain any suit, action or proceeding against the Company to enforce, or
otherwise act in respect of, his right to exercise the Rights evidenced by such
Rights Certificate in the manner provided in such Rights Certificate and in this
Agreement.  Without limiting the foregoing or any remedies available
to the holders of Rights, it is specifically acknowledged that the holders of
Rights would not have an adequate remedy at law for any breach of this Agreement
and shall be entitled to specific performance of the obligations under, and
injunctive relief against actual or threatened violations of, the obligations
hereunder of any Person subject to this Agreement.

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    Section 16.       Agreement of Rights Holders.

     

    Every holder of a Right by accepting
such Right consents and agrees with the Company and the Rights Agent and with
every other holder of a Right that:

     

    (a)           prior
to the Distribution Date, the Rights shall be transferable only in connection
with the transfer of the Common Stock;

     

    (b)           after
the Distribution Date, the Rights Certificates shall be transferable only on the
registry books of the Rights Agent if surrendered at the office of the Rights
Agent designated for such purposes, duly endorsed or accompanied by a proper
instrument of transfer and with the appropriate form of assignment and the
certificate contained therein duly completed and executed;

     

    (c)           subject
to Section 6(a) and Section 7(f) hereof, the Company and the Rights
Agent may deem and treat the Person in whose name the Rights Certificate (or,
prior to the Distribution Date, the associated Common Stock certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Rights
Certificates or the associated Common Stock certificate made by anyone other
than the Company or the Rights Agent) for all purposes whatsoever, and neither
the Company nor the Rights Agent, subject to the last sentence of
Section 7(e) hereof, shall be affected by any notice to the contrary;
and

     

    (d)           notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Rights
Agent shall have any liability to any holder of a Right or other Person as a
result of its inability to perform any of its obligations under this Agreement
by reason of any preliminary or permanent injunction or other order, decree,
judgment or ruling (whether interlocutory or final) issued by a court of
competent jurisdiction or by a governmental, regulatory or administrative agency
or commission, or any statute, rule, regulation or executive order promulgated
or enacted by any governmental authority, prohibiting or otherwise restraining
performance of such obligation; provided, however, the Company
shall use its best efforts to have any such order, decree or ruling lifted or
otherwise overturned as soon as practicable.

     

     

    Section 17.      Rights Certificate Holder Not Deemed a
Stockholder.

     

    No holder, as such, of any Rights
Certificate shall be entitled to vote, to receive dividends or to be deemed for
any purpose the holder of the Preferred Stock or any other securities of the
Company which may at any time be issuable on the exercise of the Rights
represented thereby, nor shall anything contained herein or in any Rights
Certificate be construed to confer upon the holder of any Rights Certificate, as
such, any of the rights of a stockholder of the Company or any right to vote for
the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting stockholders (except as
provided in Section 25 hereof), or to receive dividends or subscription
rights, or otherwise, until the Right or

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    Rights
evidenced by such Rights Certificate shall have been exercised in accordance
with the provisions hereof.

     

     

    Section 18.       Duties of Rights Agent.

     

    The Rights Agent undertakes only the
duties and obligations expressly imposed by this Agreement upon the following
terms and conditions, by all of which the Company and the holders of Rights
Certificates, by their acceptance thereof, shall be bound:

     

    (a)           The
Rights Agent may consult with legal counsel of its selection (who may be legal
counsel for the Company), and the advice or opinion of such counsel shall be
full and complete authorization and protection to the Rights Agent, and the
Rights Agent shall incur no liability, for or in respect of any action taken or
omitted by it in good faith and in accordance with such advice or
opinion.

     

    (b)           Whenever
in the performance of its duties under this Agreement the Rights Agent shall
deem it necessary or desirable that any fact or matter (including, without
limitation, the identity of any Acquiring Person and the determination of
“current market price”) be proved or established by the Company prior to taking
or suffering or omitting to take any action hereunder, such fact or matter
(unless other evidence in respect thereof be herein specifically prescribed) may
be deemed to be conclusively proved and established by a certificate signed by
any person believed by the Rights Agent to be any one of the Chief Executive
Officer, President, Chief Financial Officer or General Counsel of the Company
and delivered to the Rights Agent; and such certificate shall be full
authorization to the Rights Agent, and the Rights Agent shall incur no
liability, for or in respect of any action taken, omitted or suffered in good
faith by it under the provisions of this Agreement in reliance upon such
certificate.

     

    (c)           The
Rights Agent shall be liable hereunder only for its own gross negligence, bad
faith or willful misconduct.

     

    (d)           The
Rights Agent shall not be liable for or by reason of any of the statements of
fact or recitals contained in this Agreement or in the Rights Certificates
(except as to its countersignature thereof) or be required to verify the same,
but all such statements and recitals are and shall be deemed to have been made
by the Company only.

     

    (e)           The
Rights Agent is serving as an administrative agent and shall not be under any
responsibility in respect of the validity of any provision of this Agreement or
the execution and delivery of this Agreement (except the due execution hereof by
the Rights Agent) or in respect of the validity or execution of any Rights
Certificate (except its countersignature thereof); nor shall it be responsible
for any breach by the Company of any covenant or condition contained in this
Agreement or in any Rights Certificate; nor shall it be responsible for any
change in the exercisability of the Rights (including the Rights becoming null
and void pursuant to Section 7(e) hereof) or any adjustment required under
any of the provisions hereof or responsible for the manner, method, or amount of
any such adjustment or the ascertaining of the existence of facts that would
require any such adjustment (except with respect to the exercise of

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    Rights
evidenced by Rights Certificates after the Rights Agent’s actual receipt of
notice of any such adjustment); nor shall it by any act hereunder be deemed to
make any representation or warranty as to the authorization or reservation of
any shares of Common Stock or shares of Preferred Stock to be issued pursuant to
this Agreement or any Rights Certificate or as to whether any shares of Common
Stock or shares of Preferred Stock will, when so issued, be validly authorized
and issued, fully paid and non-assessable, nor shall the Rights Agent be
responsible for the legality of the terms hereof in its capacity as an
administrative agent.

     

    (f)           The
Company shall perform, execute, acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and other acts,
instruments and assurances as may reasonably be required by the Rights Agent for
the carrying out or performing by the Rights Agent of the provisions of this
Agreement.

     

    (g)           The
Rights Agent is hereby authorized and directed to accept instructions with
respect to the performance of its duties hereunder from any person believed by
the Rights Agent to be any one of the Chairman of the Board, the Chief Executive
Officer, President, Chief Financial Officer or General Counsel of the Company,
and to apply to such officers for advice or instructions in connection with its
duties, and it shall not be liable for any action taken, omitted to be taken or
suffered to be taken by it in good faith in accordance with instructions of any
such officer or for any delay in acting while waiting for those
instructions.  Any application by the Rights Agent for written
instructions from the Company may, at the option of the Rights Agent, set forth
in writing any action proposed to be taken, suffered or omitted by the Rights
Agent under this Agreement and the date on or after which such action shall be
taken or suffered or such omission shall be effective.  The Rights
Agent shall not be liable for any action taken or suffered by, or omission of,
the Rights Agent in accordance with a proposal included in any such application
on or after the date specified in such application (which date shall not be less
than five (5) Business Days after the date any officer of the Company actually
receives such application, unless any such officer shall have consented in
writing to an earlier date) unless, prior to taking any such action (or the
effective date in the case of an omission), the Rights Agent shall have received
written instruction in response to such application specifying the action to be
taken, suffered or omitted.

     

    (h)           The
Rights Agent and any stockholder, affiliate, director, officer or employee of
the Rights Agent may buy, sell or deal in any of the Rights or other securities
of the Company or become pecuniarily interested in any transaction in which the
Company may be interested, or contract with or lend money to the Company or
otherwise act as fully and freely as though it were not the Rights Agent under
this Agreement.  Nothing herein shall preclude the Rights Agent from
acting in any other capacity for the Company or for any other Person or legal
entity.

     

    (i)           The
Rights Agent may execute and exercise any of the rights or powers hereby vested
in it or perform any duty hereunder either itself or by or through its attorneys
or agents, and the Rights Agent shall not be answerable or accountable for any
act, default, neglect or misconduct of any such attorneys or agents or for any
loss to the Company resulting from any such act, default, neglect or misconduct;
provided, however, that the
Rights Agent exercised reasonable care in the selection and continued employment
thereof.

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    (j)           The
Rights Agent shall not be obligated to take any action hereunder which may, in
the Rights Agent’s sole judgment, involve any expense or liability to the Rights
Agent unless it shall have been furnished with an indemnity against such expense
or liability which, in the Rights Agent’s sole judgment, is
adequate.

     

    (k)           If,
with respect to any Rights Certificate surrendered to the Rights Agent for
exercise or transfer, the certificate attached to the form of assignment or form
of election to purchase, as the case may be, has either not been properly
completed or indicates an affirmative response to clause 1 and/or 2
thereof, the Rights Agent shall not take any further action with respect to such
requested exercise of transfer without first consulting with the
Company.

     

    (l)           Notwithstanding
any other provision of the Agreement, the Rights Agent shall not be obligated to
perform any obligation hereunder and shall not incur any liability for the
nonperformance or breach of any obligation hereunder to the extent that the
paying agent is delayed in performing, unable to perform or breaches such
obligation because of acts of God, war, terrorism, fire, floods, strikes,
electrical outages, equipment or transmission failures or other causes
reasonably beyond its control.

    

    (m)           In
no event shall the Rights Agent be liable, directly or indirectly, for any special, indirect or
consequential losses or damages of any kind whatsoever (including but not
limited to lost profits), even if the Rights Agent has been advised of the
possibility of such losses or damages and regardless of the form of
action.

    

    (n)          In
the event that the Rights Agent shall be uncertain as to its duties or rights
hereunder or shall receive instructions, claims or demands which, in its
opinion, are in conflict with any of the provisions of the Agreement, it shall
be entitled to refrain from taking any action until the questions regarding its
duties and rights are clarified to its satisfaction or it shall be directed
otherwise by a final judgment of a court of competent jurisdiction.

     

     

    Section 19.       Compensation
and Indemnification of the Rights Agent.

     

    (a)           The
Company agrees to pay to the Rights Agent such compensation as shall be agreed
to in writing between the Company and the Rights Agent for all services rendered
by it hereunder and, from time to time, on demand of the Rights Agent, its
reasonable expenses and counsel fees and expenses and other disbursements
incurred in the administration and execution of this Agreement and the exercise
and performance of its duties hereunder.  The Company also agrees to
indemnify the Rights Agent, its officers, employees, agents and directors for,
and to hold each of them harmless against, any loss, liability or expense,
incurred without negligence, bad faith or willful misconduct on the part of the
Rights Agent, for any action taken, suffered or omitted by the Rights Agent or
such other indemnified party in connection with the acceptance and
administration of this Agreement and the exercise of its duties hereunder,
including, but not limited to, the costs and expenses of defending against any
claim (whether asserted by the Company, a holder of Rights, or any other Person)
of liability in the premises.  The indemnity provided for hereunder
shall survive the expiration of the Rights and the termination of this
Agreement.

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    (b)           The
Rights Agent shall be authorized and protected and shall incur no liability for
or in respect of any action taken, suffered or omitted by it in connection with
its administration of this Agreement or the exercise of its duties hereunder in
reliance upon any Rights Certificate or certificate for Common Stock or for
other securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement or other paper or document believed by it to be genuine
and to be signed and executed by the proper person or persons.

     

     

    Section 20.       Merger or Consolidation or Change of Name
of Rights Agent.

     

    (a)           Any
Person into which the Rights Agent or any successor Rights Agent may be merged
or with which it may be consolidated, or any Person resulting from any merger or
consolidation to which the Rights Agent or any successor Rights Agent shall be a
party, or any Person succeeding to all or substantially all the stock transfer
business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto;
provided, however, that such
Person would be eligible for appointment as a successor Rights Agent under the
provisions of Section 21 hereof.  In case at the time such
successor Rights Agent shall succeed to the agency created by this Agreement,
any of the Rights Certificates shall have been countersigned but not delivered,
any such successor Rights Agent may adopt the countersignature of the
predecessor Rights Agent and deliver such Rights Certificates so countersigned;
and in case at that time any of the Rights Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Rights
Certificates either in the name of the predecessor Rights Agent or in the name
of the successor Rights Agent; and in all such cases such Rights Certificates
shall have the full force provided in the Rights Certificates and in this
Agreement.

     

    (b)           In
case at any time the name of the Rights Agent shall be changed and at any such
time any of the Rights Certificates shall have been countersigned but not
delivered, the Rights Agent may adopt the countersignature under its prior name
and deliver Rights Certificates so countersigned; and in case at that time any
of the Rights Certificates shall not have been countersigned, the Rights Agent
may countersign such Rights Certificates either in its prior name or in its
changed name; and in all such cases such Rights Certificates shall have the full
force provided in the Rights Certificates and in this Agreement.

     

     

    Section 21.       Change of Rights Agent.

     

    The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement
upon thirty (30) days’ notice in writing mailed to the
Company.  The Company may remove the Rights Agent or any successor
Rights Agent upon thirty (30) days’ notice in writing, mailed to the Rights
Agent or successor Rights Agent, as the case may be, and to each transfer agent
of the Common Stock and the Preferred Stock by registered or certified mail, and
to the holders of the Rights Certificates by first-class mail.  If the
Rights Agent shall resign or be removed or shall otherwise become incapable of
acting, the

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    Company
shall appoint a successor to the Rights Agent.  If the Company shall
fail to make such appointment within a period of thirty (30) days after giving
notice of such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent or by
the holder of a Rights Certificate (who shall, with such notice, submit his
Rights Certificate for inspection by the Company), then the Rights Agent or the
registered holder of any Rights Certificate may, at the expense of the Company,
apply to any court of competent jurisdiction for the appointment of a new Rights
Agent.  Any successor Rights Agent, whether appointed by the Company
or by such a court, shall be (i) a Person organized and doing business under the
laws of the United States or the State of Delaware, New York, Colorado or Utah
(or of any other state of the United States so long as such Person is authorized
to do business in the States of Delaware, New York, Colorado or Utah), in good
standing, having an office in the States of Delaware, New York, Colorado or Utah
which is authorized under such laws to exercise corporate trust power and is
subject to supervision or examination by federal or state authority and which
has at the time of its appointment as Rights Agent a combined capital and
surplus of at least $50 million or (ii) an affiliate of such a
Person.  After appointment, the successor Rights Agent shall be vested
with the same powers, rights, duties and responsibilities as if it had been
originally named as Rights Agent without further act or deed; but the
predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the
purpose.  Not later than the effective date of any such appointment,
the Company shall file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the Common Stock and the Preferred Stock, and,
if such appointment occurs after the Distribution Date, mail a notice thereof in
writing to the registered holders of the Rights Certificates.  Failure
to give any notice provided for in this Section 21, however, or any defect
therein, shall not affect the legality or validity of the resignation or removal
of the Rights Agent or the appointment of the successor Rights Agent, as the
case may be.

     

     

    Section 22.       Issuance of New Rights Certificates.

     

    Notwithstanding any of the provisions
of this Agreement or of the Rights to the contrary, the Company may, at its
option, issue new Rights Certificates evidencing Rights in such form as may be
approved by the Board to reflect any adjustment or change in the Purchase Price
per share and the number or kind of class of shares or other securities or
property purchasable under the Rights Certificates made in accordance with the
provisions of this Agreement.  In addition, in connection with the
issuance or sale of shares of Common Stock following the Distribution Date
(other than upon exercise of a Right) and prior to the redemption or expiration
of the Rights, the Company (a) shall, with respect to shares of Common
Stock so issued or sold pursuant to the exercise of stock options or under any
employee plan or arrangement, or upon the exercise, conversion or exchange of
securities hereinafter issued by the Company, and (b) may, in any other
case, if deemed necessary or appropriate by the Board, issue Rights Certificates
representing the appropriate number of Rights in connection with such issuance
or sale; provided, however, that
(i) no such Rights Certificate shall be issued if, and to the extent that,
the Company shall be advised by counsel that such issuance would create a
significant risk of material adverse tax consequences to the Company or the
Person to whom such Rights Certificates would be issued, and (ii) no such
Rights Certificates shall be issued if, and to the

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    extent
that, appropriate adjustment shall otherwise have been made in lieu of the
issuance thereof.

     

     

    Section 23.       Redemption
and Review.

     

    (a)           The
Board may, at its option, at any time during the period commencing on the Rights
Dividend Declaration Date and ending on the earlier of (i) the Close of
Business on the tenth Business Day following the Stock Acquisition Date (or, if
the Stock Acquisition Date shall have occurred prior to the Record Date, the
Close of Business on the tenth Business Day following the Record Date), or
(ii) the Close of Business on the Final Expiration Date (the “Redemption Period”),
cause the Company to redeem all but not less than all the then outstanding
Rights at a redemption price of $0.001 per Right, as such amount may be
appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (such redemption price being
hereinafter referred to as the “Redemption Price”);
provided, however, that, if the
Board authorizes redemption of the Rights on or after the time a Person becomes
an Acquiring Person, then such authorization shall require the concurrence of
two-thirds of the Directors. Notwithstanding anything contained in this
Agreement to the contrary, the Rights shall not be exercisable after the first
occurrence of a Section 11(a)(ii) Event or a Section 13 Event until such
time as the Company’s right of redemption hereunder has expired.  The
redemption of the Rights by the Board pursuant to this paragraph (a) may be made
effective at such time, on such basis and with such conditions as the Board in
its sole discretion may establish.  The Company may, at its option,
pay the Redemption Price in cash, shares of Common Stock (based on the current
market price of the Common Stock at the time of redemption) or any other form of
consideration deemed appropriate by the Board.

     

    (b)           Immediately
upon the action of the Board ordering the redemption of the Rights, evidence of
which shall have been filed with the Rights Agent, and without any further
action and without any notice, the right to exercise the Rights shall terminate
and the only right thereafter of the holders of Rights shall be to receive the
Redemption Price.  Promptly after the action of the Board ordering the
redemption of the Rights, the Company shall give notice of such redemption to
the Rights Agent and the holders of the then outstanding Rights by mailing such
notice to all such holders at their last addresses as they appear upon the
registry books of the Rights Agent or, prior to the Distribution Date, on the
registry books of the transfer agent for the Common Stock; provided, however, that the
failure to give, or any defect in, any such notice shall not affect the validity
of such redemption.  Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the
notice.  Each such notice of redemption shall state the method by
which the payment of the Redemption Price will be made.

     

    (c)           At
least once every three years the TIDE Committee (as defined below) shall review
and evaluate this Agreement in order to consider whether the maintenance of this
Agreement continues to be in the interests of the Company and its
stockholders.  Following each such review, the TIDE Committee will
communicate its conclusions to the full Board, including any recommendation in
light thereof as to whether this Rights Agreement should be modified or the
Rights should be redeemed.  The committee reviewing and evaluating
this Agreement

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    pursuant
to this Section 23(c) shall be the Corporate Governance and Nominating
Committee of the Board or such other committee designated by the Board and
comprised of directors who are independent of the management of the Company and
free from any relationship that, in the opinion of the Board, would interfere
with their exercise of independent judgment (the “TIDE
Committee”).

     

     

    Section 24.       Exchange.

     

    (a)           The
Board may, at its option, at any time after any Person becomes an Acquiring
Person, exchange all or part of the then outstanding and exercisable Rights
(which shall not include Rights that have become null and void pursuant to the
provisions of Section 7(e) hereof) for shares of Common Stock at an exchange
ratio of one share of Common Stock per each outstanding Right, as appropriately
adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such exchange ratio being hereinafter referred
to as the “Exchange
Ratio”).  Notwithstanding the foregoing, the Board shall not be
empowered to effect such exchange at any time after any Person (other than the
Company, any Subsidiary of the Company, any employee benefit plan of the Company
or any such Subsidiary, or any entity holding Common Stock for or pursuant to
the terms of any such employee benefit plan), together with all Affiliates and
Associates of such Person, becomes the Beneficial Owner of 50% or more of the
Common Stock then outstanding.  The exchange of the Rights by the
Board may be made effective at such time, on such basis and with such conditions
as the Board in its sole discretion may establish.

     

    (b)           Immediately
upon the action of the Board ordering the exchange of any Rights pursuant to
subsection (a) of this Section 24 and without any further action and without any
notice, the right to exercise such Rights shall terminate and the only right
thereafter of a holder of such Rights shall be to receive that number of shares
of Common Stock equal to the number of such Rights held by such holder
multiplied by the Exchange Ratio.  The Company shall promptly give
public notice of any such exchange; provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of
such exchange.  The Company promptly shall mail a notice of any such
exchange to all of the holders of such Rights at their last addresses as they
appear upon the registry books of the Rights Agent.  Any notice which
is mailed in the manner herein provided shall be deemed given, whether or not
the holder receives the notice.  Each such notice of exchange shall
state the method by which the exchange of Common Stock for Rights will be
effected and, in the event of any partial exchange, the number of Rights that
will be exchanged.  Any partial exchange shall be effected pro rata
based on the number of Rights (other than Rights which have become void pursuant
to the provisions of Section 7(e) hereof) held by each holder of
Rights.

     

    (c)           In
any exchange pursuant to this Section 24, the Company, at its option, may
substitute common stock equivalents (as defined in Section 11(a)(iii)) for
shares of Common Stock exchangeable for Rights, at the initial rate of one
common stock equivalent for each share of Common Stock, as appropriately
adjusted to reflect adjustments in dividend, liquidation and voting rights of
common stock equivalents pursuant to the terms thereof, so that

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    each
common stock equivalent delivered in lieu of each share of Common Stock shall
have essentially the same dividend, liquidation and voting rights as one share
of Common Stock.

     

    (d)           In
the event that there shall not be sufficient shares of Common Stock issued but
not outstanding or authorized but unissued to permit any exchange of Rights as
contemplated in accordance with this Section 24, the Company shall take all
such action as may be necessary to authorize additional shares of Common Stock
for issuance upon exchange of the Rights.

     

    (e)           The
Company shall not be required to issue fractions of shares of Common Stock or to
distribute certificates which evidence fractional shares of Common
Stock.  In lieu of such fractional shares, the Company shall pay to
the registered holders of the Right Certificates with regard to which such
fractional shares would otherwise be issuable an amount in cash equal to the
same fraction of the current market value of a whole share of Common
Stock.  For the purposes of this paragraph (e), the current
market value of a whole share of Common Stock shall be the closing price of a
share of Common Stock (as determined pursuant to the second and the following
sentences of Section 11(d) hereof) for the Trading Day immediately prior to
the date of exchange pursuant to this Section 24.

     

     

    Section 25.       Notice of Certain Events.

     

    (a)           In
case the Company shall propose, at any time after the Distribution Date,
(i) to pay any dividend payable in capital stock of any class to the
holders of Preferred Stock or to make any other distribution to the holders of
Preferred Stock (other than a regular quarterly cash dividend out of earnings or
retained earnings) or (ii) to offer to the holders of Preferred Stock
rights or warrants to subscribe for or to purchase any additional shares of
Preferred Stock or shares of capital stock of any class or any other securities,
rights or options, or (iii) to effect any reclassification of its Preferred
Stock (other than a reclassification involving only the subdivision of
outstanding Preferred Stock), or (iv) to effect any consolidation or merger
into or with, or to effect any sale or other transfer (or to permit one or more
of its Subsidiaries to effect any sale or other transfer), in one or more
transactions, of more than 50% of the assets or earning power of the Company and
its Subsidiaries (taken as a whole) to, any other Person, or (v) to effect
the liquidation, dissolution or winding up of the Company, then, in each such
case, the Company shall give to each holder of a Rights Certificate, to the
extent feasible and in accordance with Section 26 hereof, a notice of such
proposed action, which shall specify the record date for the purposes of such
stock dividend, distribution of rights or warrants, or the date on which such
reclassification, consolidation, merger, sale, transfer, liquidation,
dissolution or winding up is to take place and the date of participation therein
by the holders of the shares of Preferred Stock, if any such date is to be
fixed, and such notice shall be so given in the case of any action covered by
clause (i) or (ii) above at least twenty (20) days prior to the record date for
determining holders of the shares of Preferred Stock for purposes of such action
and, in the case of any such other action, at least twenty (20) days prior to
the date of the taking of such proposed action or the date of participation
therein by the holders of the shares of Preferred Stock, whichever shall be the
earlier.

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    (b)           In
case any Section 11(a)(ii) Event shall occur, then, in any such case,
(i) the Company shall as soon as practicable thereafter give to each holder
of a Rights Certificate, to the extent feasible and in accordance with
Section 26 hereof, a notice of the occurrence of such event, which shall
specify the event and the consequences of the event to holders of Rights under
Section 11(a)(ii) hereof, and (ii) all references in the preceding
paragraph to Preferred Stock shall be deemed thereafter to refer to Common Stock
and/or, if appropriate, other securities.

     

     

    Section 26.       Notices.

     

    Notices or demands authorized by this
Agreement to be given or made by the Rights Agent or by the holder of any Rights
Certificate to or on the Company shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Rights Agent) as follows:

     

    Evergreen
Energy Inc.

    1225
17th Street, Suite 1300

    Denver,
Colorado 80202

    Attention:  President
& Chief Executive Officer

    

    Subject
to the provisions of Section 21 hereof, any notice or demand authorized by
this Agreement to be given or made by the Company or by the holder of any Rights
Certificate to or on the Rights Agent shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is
filed in writing with the Company) as follows:

     

    Interwest
Transfer Company, Inc.

    1981
Murray Holladay Road, Suite 100

    Salt
Lake City, Utah 84117

    Attention:  Kurtis
D. Hughes

    

    Notices
or demands authorized by this Agreement to be given or made by the Company or
the Rights Agent to the holder of any Rights Certificate shall be sufficiently
given or made if sent by first-class mail, postage prepaid, addressed to any
such holder at the address of such holder as shown on the registry books of the
Company.

     

     

    Section 27.       Supplements and Amendments.

     

    Except as provided in the penultimate
sentence of this Section 27, for so long as the Rights are then redeemable, the
Company may in its sole and absolute discretion, and the Rights Agent shall if
the Company so directs, supplement or amend any provision of this Agreement in
any respect without the approval of any holders of the Rights.  At any
time when the Rights are no longer redeemable, except as provided in the
penultimate sentence of this Section 27, the Company may, and the Rights Agent
shall, if the Company so directs, supplement or amend this Agreement without the
approval of any holders of Rights; provided, however,
that

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    no
such supplement or amendment may (a) adversely affect the interests of the
holders of Rights as such (other than an Acquiring Person or any Affiliate or
Associate of an Acquiring Person), (b) cause this Agreement again to become
amendable other than in accordance with this sentence or (c) cause the Rights
again to become redeemable.  Notwithstanding anything contained in
this Agreement to the contrary, no supplement or amendment shall be made which
changes the Redemption Price.  Upon the delivery of a certificate from
an appropriate officer of the Company which states that the supplement or
amendment is in compliance with the terms of this Section 27, the Rights Agent
shall execute such supplement or amendment; provided, however, that any
supplement or amendment that does not amend Section 18, 19, 20 or 21 hereof or
this Section 27 in a manner adverse to the Rights Agent shall become effective
immediately upon execution by the Company, whether or not also executed by the
Rights Agent.

     

     

    Section 28.       Successors.

     

    All the covenants and provisions of
this Agreement by or for the benefit of the Company or the Rights Agent shall
bind and inure to the benefit of their respective successors and assigns
hereunder.

     

     

    Section 29.       Determinations and Actions by the Board,
Etc.

     

    For all purposes of this Agreement, any
calculation of the number of shares of Common Stock outstanding at any
particular time, including for purposes of determining the particular percentage
of such outstanding shares of Common Stock of which any Person is the Beneficial
Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i)
of the General Rules and Regulations under the Exchange Act.  The
Board (with, where specifically provided for herein, the concurrence of
two-thirds of the members of the Board) shall have the exclusive power and
authority to administer this Agreement and to exercise all rights and powers
specifically granted to the Board (with, where specifically provided for herein,
the concurrence of two-thirds of the members of the Board) or to the Company, or
as may be necessary or advisable in the administration of this Agreement,
including, without limitation, the right and power to (i) interpret the
provisions of this Agreement, and (ii) make all determinations deemed necessary
or advisable for the administration of this Agreement (including without
limitation a determination to redeem or not redeem the Rights or to amend the
Agreement).  All such actions, calculations, interpretations and
determinations which are done or made by the Board (with, where specifically
provided for herein, the concurrence of two-thirds of the members of the Board)
in good faith, shall be final, conclusive and binding on the Company, the Rights
Agent, the holders of the Rights and all other Persons.

     

     

    Section 30.       Benefits of this Agreement.

     

    Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent and the
registered holders of the Rights Certificates (and, prior to the Distribution
Date, the registered holders of the Common Stock) any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive

     

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    benefit
of the Company, the Rights Agent and the registered holders of the Rights
Certificates (and, prior to the Distribution Date, the registered holders of
Common Stock).  Prior to the Distribution Date, the interests of the
holders of Rights shall be deemed coincident with the interests of the holders
of shares of Common Stock.

     

     

    Section 31.       Severability.

     

    If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated;
provided, however, that
notwithstanding anything in this Agreement to the contrary, if any such term,
provision, covenant or restriction is held by such court or authority to be
invalid, void or unenforceable and the Board determines in its good faith
judgment that severing the invalid language from this Agreement would materially
and adversely affect the purpose or effect of this Agreement, the right of
redemption set forth in Section 23 hereof shall be reinstated and shall not
expire until the Close of Business on the tenth Business Day following the date
of such determination by the Board.

     

     

    Section 32.       Governing Law.

     

    This Agreement, each Right and each
Rights Certificate issued hereunder shall be deemed to be a contract made under
the internal laws of the State of Delaware and for all purposes shall be
governed by and construed in accordance with the laws of such
State.

     

     

    Section 33.       Counterparts.

     

    This Agreement may be executed in any
number of counterparts.  It shall not be necessary that the signature
of or on behalf of each party appears on each counterpart, but it shall be
sufficient that the signature of or on behalf of each party appears on one or
more of the counterparts.  All counterparts shall collectively
constitute a single agreement.  It shall not be necessary in any proof
of this Agreement to produce or account for more than a number of counterparts
containing the respective signatures of or on behalf of all of the
parties.

     

     

    Section 34.       Descriptive Headings.

     

    Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions
hereof.

     

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

     

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

     

    

     

                        EVERGREEN ENERGY
INC.

    

    

                        By: /s/ Kevin R. Collins

                        Name:  Kevin R.
Collins

                        Title: 
President and Chief Executive Officer

    

    

                        INTERWEST TRANSFER
COMPANY, INC.

    

    

                        By: /s/ Kurtis D. Hughs

                        Name:  Kurtis D.
Hughs

                        Title:  Vice
President

    

    

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    Exhibit
A

    

    CERTIFICATE
OF DESIGNATION,

    PREFERENCES
AND RIGHTS OF

    SERIES
A JUNIOR PARTICIPATING PREFERRED STOCK

    

    of

    

    EVERGREEN
ENERGY INC.

    

    Pursuant
to Section 151 of the General Corporation Law

    of
the State of Delaware

    

    

    I, Kevin R. Collins, President and
Chief Executive Officer, of Evergreen Energy Inc., a corporation organized and
existing under the General Corporation Law of the State of Delaware (the “Corporation”), in
accordance with the provisions of Section 103 thereof, DO HEREBY
CERTIFY:

    

    That pursuant to the authority
conferred upon the Board of Directors by the Certificate of Incorporation of the
Corporation, on December 2, 2008, the said Board of Directors duly adopted the
following resolution creating a series of 500,000 shares of Preferred Stock
designated as Series A Junior Participating Preferred Stock:

    

    RESOLVED, that pursuant to the
authority vested in the Board of Directors of this Corporation (the “Board”) in accordance
with the provisions of its Certificate of Incorporation, as amended, a series of
Preferred Stock of the Corporation be and it hereby is created, and that the
designation and amount thereof and the voting rights or powers, preferences and
relative, participating, optional and other special rights of the shares of such
series, and the qualifications, limitations or restrictions thereof are as
follows:

    

    Section
1.         Designation and Amount.  The
shares of such series, par value $0.001 per share, shall be designated as
“Series A Junior Participating Preferred Stock” and the number of shares
constituting such series shall be 500,000.

    

    Section
2.         Dividends and Distributions.

    

    (A)           Subject
to the prior and superior rights of the holders of any shares of any series of
Preferred Stock ranking prior and superior to the shares of Series A Junior
Participating Preferred Stock with respect to dividends, the holders of shares
of Series A Junior Participating Preferred Stock shall be entitled to receive,
when, as and if declared by the Board of Directors out of funds legally
available for the purpose, quarterly dividends payable in cash on the 15th day
of January, April, July and October, in each year (each such date being referred
to herein as a “Quarterly Dividend Payment
Date”), commencing on the first Quarterly Dividend Payment Date after the
first issuance of a share or fraction of a share of Series A Junior
Participating Preferred Stock, in an amount per share (rounded to the nearest
cent) equal to the

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    greater
of (a) $1.00 or (b) subject to the provision for adjustment hereinafter set
forth, 1,000 times the aggregate per share amount of all cash dividends, and
1,000 times the aggregate per share amount (payable in kind) of all non-cash
dividends or other distributions, other than a dividend payable in shares of
common stock, par value $0.001 per share, of the Corporation (the “Common Stock”), or a
subdivision of the outstanding shares of Common Stock (by reclassification or
otherwise), declared on the Common Stock, since the immediately preceding
Quarterly Dividend Payment Date, or, with respect to the first Quarterly
Dividend Payment Date, since the first issuance of any share or fraction of a
share of Series A Junior Participating Preferred Stock.  In the event
the Corporation shall at any time after December 19, 2008 (the “Rights Declaration
Date”) (i) declare or pay any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock, or
(iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the amount to which holders of shares of Series A Junior
Participating Preferred Stock were entitled immediately prior to such event
under clause (b) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction, the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

    

    (B)           The
Corporation shall declare a dividend or distribution on the Series A Junior
Participating Preferred Stock as provided in paragraph (A) above
immediately after it declares a dividend or distribution on the Common Stock
(other than a dividend payable in shares of Common Stock); provided that, in the
event no dividend or distribution shall have been declared on the Common Stock
during the period between any Quarterly Dividend Payment Date and the next
subsequent Quarterly Dividend Payment Date, a dividend of $1.00 per share on the
Series A Junior Participating Preferred Stock shall nevertheless be payable on
such subsequent Quarterly Dividend Payment Date.

    

    (C)           Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Junior
Participating Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares of Series A Junior Participating
Preferred Stock, unless the date of issue of such shares is prior to the record
date set for the first Quarterly Dividend Payment Date, in which case dividends
on such shares shall begin to accrue from the date of issue of such shares, or
unless the date of issue is a Quarterly Dividend Payment Date or is a date after
the record date for the determination of holders of shares of Series A Junior
Participating Preferred Stock entitled to receive a quarterly dividend and
before such Quarterly Dividend Payment Date, in either of which event such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date.  Accrued but unpaid dividends shall not bear
interest.  Dividends paid on the shares of Series A Junior
Participating Preferred Stock in an amount less than the total amount of such
dividends at the time accrued and payable on such shares shall be allocated pro
rata on a share-by-share basis among all such shares at the time
outstanding.  The Board of Directors may fix a record date for the
determination of holders of shares of Series A Junior Participating Preferred
Stock entitled to receive payment of a dividend or distribution declared
thereon, which record date shall be no more than thirty (30) days prior to the
date fixed for the payment thereof.

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    Section
3.         Voting Rights.  The
holders of shares of Series A Junior Participating Preferred Stock shall have
the following voting rights:

    

    (A)           Subject
to the provision for adjustment hereinafter set forth, each share of Series A
Junior Participating Preferred Stock shall entitle the holder thereof to 1,000
votes on all matters submitted to a vote of the stockholders of the
Corporation.  In the event the Corporation shall at any time after the
Rights Declaration Date (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock, or
(iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the number of votes per share to which holders of shares
of Series A Junior Participating Preferred Stock were entitled immediately prior
to such event shall be adjusted by multiplying such number by a fraction the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such
event.

    

    (B)           Except
as otherwise provided by law, the holders of shares of Series A Junior
Participating Preferred Stock and the holders of shares of Common Stock shall
vote together as one class on all matters submitted to a vote of the
stockholders of the Corporation.

    

    (C)           Except
as set forth herein, holders of Series A Junior Participating Preferred Stock
shall have no special voting rights and their consent shall not be required
(except to the extent they are entitled to vote with holders of Common Stock as
set forth herein) for taking any corporate action.

    

    Section
4.         Certain Restrictions.

    

    (A)           Whenever
dividends or distributions payable on the Series A Junior Participating
Preferred Stock as provided in Section 2 are not paid, thereafter and until
such dividends and distributions, whether or not declared, on shares of Series A
Junior Participating Preferred Stock outstanding shall have been paid in full,
the Corporation shall not:

    

    (i)           declare
or pay dividends on, or make any other distributions on, or redeem or purchase
or otherwise acquire for consideration any shares of stock ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) to the
Series A Junior Participating Preferred Stock; or

    

    (ii)           declare
or pay dividends on, or make any other distributions on, any shares of stock
ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Series A Junior Participating Preferred Stock, except
dividends paid ratably on the Series A Junior Participating Preferred Stock and
all such parity stock on which dividends are payable in proportion to the total
amounts to which the holders of all such shares are then entitled;
or

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

    (iii)           redeem
or purchase or otherwise acquire for consideration shares of any stock ranking
on a parity (either as to dividends or upon liquidation, dissolution or winding
up) with the Series A Junior Participating Preferred Stock, provided that the
Corporation may at any time redeem, purchase or otherwise acquire shares of any
such parity stock in exchange for shares of any stock of the Corporation ranking
junior (either as to dividends or upon dissolution, liquidation or winding up)
to the Series A Junior Participating Preferred Stock; or

    

    (iv)           purchase
or otherwise acquire for consideration any shares of Series A Junior
Participating Preferred Stock, or any shares of stock ranking on a parity with
the Series A Junior Participating Preferred Stock, except in accordance with a
purchase offer made in writing or by publication (as determined by the Board of
Directors) to all holders of such shares upon such terms as the Board of
Directors, after consideration of the respective annual dividend rates and other
relative rights and preferences of the respective series and classes, shall
determine in good faith will result in fair and equitable treatment among the
respective series or classes.

    

    (B)           The
Corporation shall not permit any subsidiary of the Corporation to purchase or
otherwise acquire for consideration any shares of stock of the Corporation
unless the Corporation could, under paragraph (A) of this Section 4,
purchase or otherwise acquire such shares at such time and in such
manner.

    

    Section
5.         Reacquired Shares.  Any
shares of Series A Junior Participating Preferred Stock purchased or otherwise
acquired by the Corporation in any manner whatsoever shall be retired and
cancelled promptly after the acquisition thereof.  All such shares
shall upon their cancellation become authorized but unissued shares of Preferred
Stock and may be reissued as part of a new series of Preferred Stock to be
created by resolution or resolutions of the Board of Directors, subject to the
conditions and restrictions on issuance set forth herein.

    

    Section
6.         Liquidation, Dissolution or Winding Up.

    

    (A)           Upon
any liquidation (voluntary or otherwise), dissolution or winding up of the
Corporation, no distribution shall be made to the holders of shares of stock
ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the Series A Junior Participating Preferred Stock unless, prior
thereto, the holders of shares of Series A Junior Participating Preferred Stock
shall have received $1,000 per share, plus any
unpaid dividends and distributions payable thereon, whether or not declared, to
the date of such payment (the “Series A Junior Liquidation
Preference”).  Following the payment of the full amount of the
Series A Junior Liquidation Preference, no additional distributions shall be
made to the holders of Series A Junior Participating Preferred Stock unless,
prior thereto, the holders of shares of Common Stock shall have received an
amount per share (the “Common Adjustment”)
equal to the quotient obtained by dividing (i) the Series A Junior
Liquidation Preference by (ii) 1,000 (as appropriately adjusted as set
forth in subparagraph (C) below to reflect such events as stock splits,
stock dividends and recapitalizations with respect to the Common Stock) (such
number in clause (ii) immediately above being referred to as the “Adjustment
Number”).  Following the payment of the full amount of the
Series A Junior Liquidation Preference and the Common

    
      
         

      

      
        A-4

        
          

        

      

      
         

      

    

    Adjustment
in respect of all outstanding shares of Series A Junior Participating Preferred
Stock and Common Stock, respectively, holders of Series A Junior Participating
Preferred Stock and holders of shares of Common Stock shall receive their
ratable and proportionate share of the remaining assets to be distributed in the
ratio of the Adjustment Number to one (1) with respect to such Preferred Stock
and Common Stock, on a per share basis, respectively.

    

    (B)           In
the event, however, that there are not sufficient assets available to permit
payment in full of the Series A Junior Liquidation Preference and the
liquidation preferences of all other series of preferred stock, if any, which
rank on a parity with the Series A Junior Participating Preferred Stock, then
such remaining assets shall be distributed ratably to the holders of such parity
shares in proportion to their respective liquidation preferences.  In
the event, however, that there are sufficient assets available to permit payment
in full of the Common Adjustment, then such remaining assets shall be
distributed ratably to the holders of Common Stock.

    

    (C)           In
the event the Corporation shall at any time after the Rights Declaration Date
(i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock, or (iii) combine the
outstanding Common Stock into a smaller number of shares, then in each such case
the Adjustment Number in effect immediately prior to such event shall be
adjusted by multiplying such Adjustment Number by a fraction the numerator of
which is the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event.

    

    Section
7.         Consolidation, Merger, etc.  In
case the Corporation shall enter into any consolidation, merger, combination or
other transaction in which the shares of Common Stock are exchanged for or
changed into other stock or securities, cash and/or any other property, then in
any such case the shares of Series A Junior Participating Preferred Stock shall
at the same time be similarly exchanged or changed in an amount per share
(subject to the provision for adjustment hereinafter set forth) equal to 1,000
times the aggregate amount of stock, securities, cash and/or any other property
(payable in kind), as the case may be, into which or for which each share of
Common Stock is changed or exchanged.  In the event the Corporation
shall at any time after the Rights Declaration Date (i) declare any
dividend on Common Stock payable in shares of Common Stock, (ii) subdivide
the outstanding Common Stock, or (iii) combine the outstanding Common Stock
into a smaller number of shares, then in each such case the amount set forth in
the preceding sentence with respect to the exchange or change of shares of
Series A Junior Participating Preferred Stock shall be adjusted by multiplying
such amount by a fraction the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

    

    Section
8.         Redemption.  The
Series A Junior Participating Preferred Stock shall not be subject to redemption
by the Corporation.

    
      
         

      

      
        A-5

        
          

        

      

      
         

      

    

    Section
9.         Ranking.  Notwithstanding
anything contained herein to the contrary, the Series A Junior Participating
Preferred Stock shall rank junior to all other series of the Corporation’s
Preferred Stock as to voting rights, the payment of dividends and the
distribution of assets in liquidation, unless the terms of any such series shall
provide otherwise.

    

    Section
10.       Amendment.  The
Certificate of Incorporation of the Corporation shall not be further amended in
any manner which would materially alter or change the powers, preferences or
special rights of the Series A Junior Participating Preferred Stock so as to
affect them adversely without the affirmative vote of the holders of a majority
of the outstanding shares of Series A Junior Participating Preferred Stock,
voting separately as a class.

    

    Section
11.       Fractional Shares.  Series
A Junior Participating Preferred Stock may be issued in fractions of a share
which shall entitle the holders, in proportion to such holders fractional
shares, to exercise voting rights, receive dividends, participate in
distributions and to have the benefit of all other rights of holders of Series A
Junior Participating Preferred Stock.

     

     

     

    
 

    

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

    IN WITNESS WHEREOF, I have executed and
subscribed this Certificate and do affirm the foregoing as true under the
penalties of perjury this 4th day of December, 2008.

    

    
      

                          /s/ Kevin R.
Collins 

                          Kevin R.
Collins

                          President and Chief
Executive Officer

      

      

      Attest:

      

      

      /s/ William G.
Laughlin 

      William
G. Laughlin

      Secretary

      

    

    
      
         

      

      
        A-7

        
          

        

      

      
         

      

    

    Exhibit
B

    

     

    SUMMARY OF RIGHTS TO
PURCHASE

    SERIES A JUNIOR
PARTICIPATING

    PREFERRED
STOCK

     

    

    On December 2, 2008, the Board of
Directors of Evergreen Energy Inc. (the “Company”) declared a dividend
distribution of one right (“Right”) for each outstanding share of common stock,
par value $0.001 per share (the “Common Stock”), of the Company, payable to
stockholders of record on December 19, 2008.  Each Right, when
exercisable, entitles the registered holder to purchase from the Company one
one-thousandth of a share of Series A Junior Participating Preferred Stock
(“Preferred Stock”) at a price of $4.00 per one one-thousandth share (the
“Purchase Price”), subject to adjustment.  The description and terms
of the Rights are set forth in a Rights Agreement (the “Rights Agreement”) dated
as of December 4, 2008, between the Company and Interwest Transfer Company,
Inc., as Rights Agent (the “Rights Agent”).

     

    Initially, the Rights will be attached
to all certificates representing shares of Common Stock then outstanding, and no
separate certificates evidencing the Rights will be distributed.  The
Rights will separate from the Common Stock and a distribution of Rights
Certificates (as defined below) will occur upon the earlier to occur of (i) ten
(10) days following a public announcement that a person or group of affiliated
or associated persons (an “Acquiring Person”) has acquired beneficial ownership
of 15% or more of the outstanding shares of Common Stock (the “Stock Acquisition
Date”) or (ii) ten (10) Business Days (or such later date as the Board of
Directors of the Company may determine) following the commencement of, or the
first public announcement of the intention to commence, a tender offer or
exchange offer the consummation of which would result in the beneficial
ownership by a person of 15% or more of the outstanding shares of Common Stock
(the earlier of such dates being called the “Distribution Date”).

     

    Until the Distribution Date,
(i) the Rights will be evidenced by the Common Stock certificates, and will
be transferred with and only with the Common Stock certificates, (ii) new
Common Stock certificates issued after December 19, 2008 upon transfer or new
issuance of the Common Stock will contain a notation incorporating the Rights
Agreement by reference, and (iii) the surrender for transfer of any
certificates for Common Stock outstanding will also constitute the transfer of
the Rights associated with the Common Stock represented by such
certificate.

     

    The Rights are not exercisable until
the Distribution Date and will expire at the close of business on December 19,
2018, unless such date is extended, the Rights Agreement is terminated, or the
Rights are earlier redeemed or exchanged by the Company as described
below.  The Rights will not be exercisable by a holder in any
jurisdiction where the requisite qualification to the issuance to such holder,
or the exercise by such holder, of the Rights has not been obtained or is not
obtainable.

     

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    As soon as practicable following the
Distribution Date, separate certificates evidencing the Rights (“Rights Certificates”)
will be mailed to holders of record of the Common Stock as of the close of
business on the Distribution Date and, thereafter, the separate Rights
Certificates alone will evidence the Rights.  Except as otherwise
determined by the Board of Directors of the Company, only shares of Common Stock
issued prior to the Distribution Date will be issued with Rights.

     

    In the event that a Person becomes the
beneficial owner of 15% or more of the then outstanding shares of Common Stock,
except pursuant to an offer for all outstanding shares of Common Stock which the
Directors determine to be fair to and otherwise in the best interests of the
Company and its stockholders (a “Qualifying Offer”),
each holder of a Right will, after the end of a redemption period referred to
below, have the right to exercise the Right by purchasing, for an amount equal
to the Purchase Price, Common Stock (or, in certain circumstances, cash,
property or other securities of the Company) having a value equal to two times
such amount.  Notwithstanding any of the foregoing, following the
occurrence of the events set forth in this paragraph, all Rights that are, or
(under certain circumstances specified in the Rights Agreement) were,
beneficially owned by any Acquiring Person will be null and
void.  However, Rights are not exercisable following the occurrence of
the events set forth above until such time as the Rights are no longer
redeemable by the Company as set forth below.

     

    For example, at a Purchase Price of
$4.00 per Right, each Right not owned by an Acquiring Person (or by certain
related parties) following an event set forth in the preceding paragraph would
entitle its holder to purchase $8.00 worth of Common Stock (or other
consideration, as noted above) for $4.00.  Assuming that the Common
Stock had a per share value of $2.00 at such time, the holder of each valid
Right would be entitled to purchase four shares of Common Stock for
$4.00.

     

    In the event that at any time following
the Stock Acquisition Date, (i) the Company is acquired in a merger or
other business combination transaction (other than a merger that follows a
Qualifying Offer), or (ii) 50% or more of the Company’s assets or earning power
is sold or transferred, each holder of a Right (except Rights which previously
have been voided as set forth above) shall, after the expiration of the
redemption period referred to below, have the right to receive, upon exercise,
common stock of the acquiring company having a value equal to two times the
Purchase Price of the Right (e.g., common stock of
the acquiring company having a value of $8.00 for the $4.00 Purchase
Price).

     

    At any time after a person or group of
affiliated or associated persons becomes an Acquiring Person and prior to the
acquisition by such person of 50% or more of the outstanding Common Stock, the
Board of Directors of the Company may exchange the Rights (other than Rights
owned by such person or group which have become void), in whole or in part, at
an exchange ratio of one share of Common Stock (or, in certain circumstances,
other equity securities of the Company that are deemed by the Board of Directors
of the Company to have the same value as shares of Common Stock) per Right
(subject to adjustment).

     

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    The Purchase Price payable, and the
number of one one-thousandths of a share of Preferred Stock or other securities
or property issuable, upon exercise of the Rights are subject to adjustment from
time to time to prevent dilution under certain circumstances.

     

    With certain exceptions, no adjustment
in the Purchase Price will be required until cumulative adjustments require an
adjustment of at least 1% in such Purchase Price.  No fractional
shares will be issued (other than fractions which are integral multiples of one
one-thousandth of a share of Preferred Stock) and in lieu thereof, an adjustment
in cash will be made based on the market price of the Preferred Stock on the
last trading date prior to the date of exercise.

     

    In general, the Board of Directors of
the Company, may cause the Company to redeem the Rights in whole, but not in
part, at any time during the period commencing on December 2, 2008 and ending on
the tenth Business Day following the Stock Acquisition Date (the “Redemption
Period”) at a price of $0.001 per Right (payable in cash, Common Stock or other
consideration deemed appropriate by the Board of Directors of the
Company).  Under certain circumstances set forth in the Rights
Agreement, the decision to redeem the Rights will require the concurrence
of  a two-thirds majority of the Board of Directors.  After
the Redemption Period has expired, the Company’s right of redemption may be
reinstated if an Acquiring Person reduces his beneficial ownership to 10% or
less of the outstanding shares of Common Stock in a transaction or series of
transactions not involving the Company and there are no other Acquiring
Persons.  Immediately upon the action of the Board of Directors of the
Company ordering redemption of the Rights, the Rights will terminate and the
only right of the holders of Rights will be to receive the $0.001 redemption
price.

     

    Until a Right is exercised, the holder
thereof, as such, will have no rights as a stockholder of the Company,
including, without limitation, the right to vote or to receive
dividends.  While the distribution of the Rights will not be subject
to federal taxation to stockholders or to the Company, stockholders may,
depending upon the circumstances, recognize taxable income in the event that the
Rights become exercisable for Common Stock (or other consideration) of the
Company or for common stock of the acquiring company as set forth
above.

     

    Except with respect to the Redemption
Price of the Rights, any of the provisions of the Rights Agreement may be
amended by the Board of Directors of the Company prior to the Distribution
Date.  After the Distribution Date, the provisions of the Rights
Agreement may be amended by the Board of Directors of the Company in order to
cure any ambiguity, defect or inconsistency or to make changes which do not
adversely affect the interests of holders of Rights (excluding the interests of
any Acquiring Person), or to shorten or lengthen any time period under the
Rights Agreement; provided however, no amendment
to adjust the time period governing redemption may be made at such time as the
Rights are not redeemable.

     

               The
Rights have certain anti-takeover effects.  The Rights will cause
substantial dilution to a person or group that attempts to acquire the Company
without conditioning the offer on a substantial number of Rights being acquired,
or in a manner or on terms not approved by the Board of Directors of the
Company.  The Rights, however, should not deter any prospective
offeror willing to negotiate in good faith with the Board of Directors of the
Company, nor should

     

    
      
         

      

      
        B-3

        
          

        

      

      
         

      

    

    the
Rights interfere with any merger or other business combination approved by the
Board of Directors of the Company.

     

    At least once every three years the
Corporate Governance and Nominating Committee of the Board or another committee
of directors comprised of directors who are independent of management and free
from any relationship that, in the opinion of the Board would interfere with
their exercise of independent judgment, shall review and evaluate
the  Rights Agreement in order to consider whether the maintenance of
the Rights Agreement continues to be in the interests of the Company and its
stockholders.  Following each such review, the committee will communicate
its conclusions to the full Board, including any recommendation in light thereof
as to whether the Rights Agreement should be modified or the Rights should be
redeemed.

     

    A copy of the Rights Agreement has been
filed with the Securities and Exchange Commission as an exhibit to a Current
Report on Form 8-K.  A copy of the Rights Agreement is also available
free of charge from the Company.  This summary description of the
Rights does not purport to be complete and is qualified in its entirety by
reference to the Rights Agreement, which is hereby incorporated herein by
reference.

    

    *     *     *

    

    
      
         

      

      
        B-4

        
          

        

      

      
         

      

    

    Exhibit C

    

    

    [Form
of Rights Certificate]

    

    

    Certificate
No. R-                              
Rights

    

    NOT
EXERCISABLE AFTER DECEMBER 17, 2018 OR EARLIER IF REDEEMED OR EXCHANGED BY THE
COMPANY.  THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE
COMPANY, AT $0.001 PER
RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.  UNDER CERTAIN
CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE
OR ASSOCIATE OF ANY SUCH PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND
VOID.  THE RIGHTS SHALL NOT BE EXERCISABLE, AND SHALL BE VOID SO LONG
AS HELD, BY A HOLDER IN ANY JURISDICTION WHERE THE REQUISITE QUALIFICATION TO
THE ISSUANCE TO SUCH HOLDER, OR THE EXERCISE BY SUCH HOLDER, OF THE RIGHTS IN
SUCH JURISDICTION SHALL NOT HAVE BEEN OBTAINED OR BE OBTAINABLE.  [THE
RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY
A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF
AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
AGREEMENT).  ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS
REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN
SECTION 7(e) OF SUCH AGREEMENT.] *

    

    

    

      

    

    
      *           The
portion of the legend in brackets shall be inserted only if applicable and shall
replace the preceding sentence.

       

    

    
      
         

      

      
        C-1

        
          

        

      

      
         

      

    

    Rights
Certificate

    EVERGREEN
ENERGY INC.

    

    This certifies that                               
, or its registered assigns, is the registered owner of the number of Rights set
forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of December 4, 2008,
as the same may be amended from time to time (the “Rights Agreement”),
between Evergreen Energy Inc., a Delaware corporation (the “Company”), and
Interwest Transfer Company, Inc., a New York corporation, (the “Rights Agent”), to
purchase from the Company at any time prior to December 19, 2018 at the office
or offices of the Rights Agent designated for such purpose, or its successors as
Rights Agent, one one-thousandth of a fully paid, non-assessable share of Series
A Junior Participating Preferred Stock, par value $0.001 per share (the “Preferred Stock”) of
the Company, at a purchase price of $4.00 per one one-thousandth share (the
“Purchase
Price”), upon presentation and surrender of this Rights Certificate with
the Form of Election to Purchase and related Certificate duly
executed.  The number of Rights evidenced by this Rights Certificate
(and the number of shares which may be purchased upon exercise thereof) set
forth above, and the Purchase Price per share set forth above, are the number
and Purchase Price as of December 4, 2008, based on the Preferred Stock as
constituted at such date, and are subject to adjustment upon the happening of
certain events as provided in the Rights Agreement.  Capitalized terms
used but not defined herein shall have the meanings ascribed to such terms in
the Rights Agreement.

    

    From and after the occurrence of an
event described in Section 11(a)(ii) of the Rights Agreement, the Rights
evidenced by this Rights Certificate beneficially owned by (i) an Acquiring
Person or an Affiliate or Associate of any such Person (as such terms are
defined in the Rights Agreement), which the Board, in its sole discretion,
determines is or was involved in or caused or facilitated, directly or
indirectly (including through any change in the Board), such
Section 11(a)(ii) Event, (ii) a transferee of any such Acquiring Person,
Associate or Affiliate, or (iii) under certain circumstances specified in the
Rights Agreement, a transferee of a Person who, concurrently with or after such
transfer, became an Acquiring Person or an Affiliate or Associate of an
Acquiring Person shall become null and void and no holder hereof shall have any
right with respect to such Rights from and after the occurrence of such Section
11(a)(ii) Event.

    

    The Rights evidenced by this Rights
Certificate shall not be exercisable, and shall be void so long as held, by a
holder in any jurisdiction where the requisite qualification to the issuance to
such holder, or the exercise by such holder, of the Rights in such jurisdiction
shall not have been obtained or be obtainable.

    

    As provided in the Rights Agreement,
the Purchase Price and the number and kind of shares of Preferred Stock or other
securities, which may be purchased upon the exercise of the Rights evidenced by
this Rights Certificate are subject to modification and adjustment upon the
happening of certain events, including Triggering Events.

    

    This Rights Certificate is subject to
all of the terms, provisions and conditions of the Rights Agreement, which
terms, provisions and conditions are hereby incorporated herein
by

    
      
         

      

      
        C-2

        
          

        

      

      
         

      

    

    reference
and made a part hereof and to which Rights Agreement reference is hereby made
for a full description of the rights, limitations of rights, obligations, duties
and immunities hereunder of the Rights Agent, the Company and the holders of the
Rights Certificates, which limitations of rights include the temporary
suspension of the exercisability of such Rights under the specific circumstances
set forth in the Rights Agreement.  Copies of the Rights Agreement are
on file at the above-mentioned office of the Rights Agent and are also available
upon written request to the Rights Agent.

    

    This Rights Certificate, with or
without other Rights Certificates, upon surrender at the office or offices of
the Rights Agent designated for such purpose, may be exchanged for another
Rights Certificate or Right Certificates of like tenor and date evidencing
Rights entitling the holder to purchase a like aggregate number of one
one-thousandths of a share of Preferred Stock as the Rights evidenced by the
Rights Certificate or Rights Certificates surrendered shall have entitled such
holder to purchase.  If this Rights Certificate shall be exercised in
part, the holder shall be entitled to receive upon surrender hereof another
Rights Certificate or Rights Certificates for the number of whole Rights not
exercised.

    

    Subject to the provisions of the Rights
Agreement, the Rights evidenced by this Certificate may be redeemed by the Board
at its option at a redemption price of $0.001 per Right at any time during the
period commencing on the Rights Dividend Declaration Date and ending on the
earlier of (i) the Close of Business on the tenth Business Day following
the Stock Acquisition Date (or, if the Stock Acquisition Date shall have
occurred prior to the Record Date, the Close of Business on the tenth Business
Day following the Record Date), or (ii) the Close of Business on the Final
Expiration Date.  Under certain circumstances set forth in the Rights
Agreement, the decision to redeem shall require the concurrence of two-thirds of
the Board.  After the expiration of the Redemption Period, the
Company’s right of redemption may be reinstated if the Acquiring Person reduces
its beneficial ownership to 10% or less of the outstanding shares of Common
Stock in a transaction or series of transactions not involving the Company, and
such reinstatement is approved by two-thirds of the Board.

    

    At any time after a Person becomes an
Acquiring Person and prior to the acquisition by such Person of 50% or more of
the outstanding Common Stock, the Board may exchange the Rights (other than
Rights owned by such Acquiring Person which have become void), in whole or in
part, at an exchange ratio of one share of Common Stock per Right each
outstanding Right or, in certain circumstances, other equity securities of the
Company which are deemed by the Board to have the same value as shares of Common
stock, subject to adjustment.

    

    No fractional shares of Preferred Stock
will be issued upon the exercise of any Right or Rights evidenced hereby (other
than fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock, which may, at the election of the Company, be evidenced by
depositary receipts), but in lieu thereof a cash payment will be made, as
provided in the Rights Agreement.

    

    No holder of this Rights Certificate,
as such, shall be entitled to vote or receive dividends or be deemed for any
purpose the holder of shares of Preferred Stock or of any other securities
of

    
      
         

      

      
        C-3

        
          

        

      

      
         

      

    

    the
Company which may at any time be issuable on the exercise hereof, nor shall
anything contained in the Rights Agreement or herein be construed to confer upon
the holder hereof, as such, any of the rights of a stockholder of the Company or
any right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in the Rights Agreement), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by this Rights Certificate shall have been exercised as provided in
the Rights Agreement.

    

    This Rights Certificate shall not be
valid or obligatory for any purpose until it shall have been countersigned by
the Rights Agent.

    

    WITNESS the facsimile signature of the
proper officers of the Company and its corporate seal.

    

    
      
        	
                Dated
      as of                               
         ,
             

              	 
      	 
      
	 
      	 
      	 
      
	
                ATTEST:

              	 
      	
                EVERGREEN
      ENERGY INC.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	                                                                                                     
      	 
      	
                By:                                                      
                         

              
	 
      	 
      	
                     Name:                                                                

              
	 
      	 
      	
                     Title:                                               
                         

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                Countersigned:

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                                           
                     
         

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	                                                                        
              
                            
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                
                  By:                                                      
                         

                

              	 
      	 
      
	
                     Authorized
      Signature

              	 
      	 
      

      

    
      
         

      

      
        C-4

        
          

        

      

      
         

      

    

    [Form
of Reverse Side of Rights Certificate]

    

    

    

    FORM OF ASSIGNMENT

    

    

    (To
be executed by the registered holder if

    such
holder desires to transfer the

    Rights
Certificate.)

    

    

    FOR
VALUE
RECEIVED __________________________________________________________________________________

    hereby
sells, assigns and transfers unto 

     

      
        

      

    

     

    

      
        

      

    

    (Please
print name and address of transferee)

    

    

      
        

      

    

    this
Rights Certificate, together with all right, title and interest therein, and
does hereby irrevocably constitute and appoint                              
Attorney, to transfer the within Rights Certificate on the books of the
within-named Company, with full power of substitution.

    

    

    Dated:                                                      ,           

    

    

    

                        

                             Signature

    

    

    Signature
Guaranteed:

    

     

    
 

    
      
         

      

      
        C-5

        
          

        

      

      
         

      

    

    Certificate

    

    The undersigned hereby certifies by
checking the appropriate boxes that:

    

    (1)           this
Rights Certificate [  ] is [  ] is not being sold, assigned
and transferred by or on behalf of a Person who is or was an Acquiring Person or
an Affiliate or Associate of any such Person (as such terms are defined pursuant
to the Rights Agreement);

    

    

    

    

    

    

    (2)           after
due inquiry and to the best knowledge of the undersigned, it [  ] did
[  ] did not acquire the Rights evidenced by this Rights Certificate
from any Person who is, was or subsequently became an Acquiring Person or an
Affiliate or Associate of any such Person.

    

    

    Dated:                                                                                                                                                                                                                     

                                            
Signature

    

    

    Signature
Guaranteed:

    

    

    
      
         

      

      
        C-6

        
          

        

      

      
         

      

    

    NOTICE

    

    

    The signature to the foregoing
Assignment and Certificate must correspond to the name as written upon the face
of this Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

     

     

    
 

    
      
         

      

      
        C-7

        
          

        

      

      
         

      

    

    FORM OF ELECTION TO PURCHASE

    

    (To
be executed if the registered holder

    desires
to exercise Rights represented

    by
the Rights Certificate.)

    

    

    To:                                         

    

    The undersigned hereby irrevocably
elects to exercise             
Rights represented by this Rights Certificate to purchase the shares of
Preferred Stock issuable upon the exercise of the Rights (or such other
securities of the Company or of any other Person which may be issuable upon the
exercise of the Rights) and requests that certificates for such shares be issued
in the name of and delivered to:

    

    

    

      
        

      

    

    (Please
print name and address)

    

    

    
      
        

      

    Please
insert social security

    or
other identifying
number: _____________________________________________________________

     

    If such number of Rights shall not be
all the Rights evidenced by this Rights Certificate, a new Rights Certificate
for the balance of such Rights shall be registered in the name of and delivered
to:

     

    

    

      
        

      

    

    (Please
print name and address)

     

    
 

    

      
        

      

    

    

    

      Please
insert social security

      or
other identifying
number:  _____________________________________________________________

       

      
 

    

    

      
        

      

    

    

    Dated:                                           ,
    

     

    
                                                                                                                                                                                                                                                                                                          

    
                                              
Signature

    

    

    Signature
Guaranteed:

     

     

    
 

    
      
         

      

      
        C-8

        
          

        

      

      
         

      

    

    Certificate

    

    The undersigned hereby certifies by
checking the appropriate boxes that:

    

    (1)           the
Rights evidenced by this Rights Certificate [   ] are
[   ] are not being exercised by or on behalf of a Person who is
or was an Acquiring Person or an Affiliate or Associate of any such Person (as
such terms are defined in the Rights Agreement);

    

    (2)           after
due inquiry and to the best knowledge of the undersigned, it [  ] did
[  ] did not acquire the Rights evidenced by this Rights Certificate
from any Person who is, was or became an Acquiring Person or an Affiliate or
Associate of any such Person.

    

    

    
      

      Dated:                                                                                                                                                                                                                     

                                              
Signature

      

      

      Signature
Guaranteed:

      

      

    

    
      
         

      

      
        C-9

        
          

        

      

      
         

      

    

    NOTICE

    

    The signature to the foregoing Election
to Purchase and Certificate must correspond to the name as written upon the face
of this Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

    

    

     

     

    
C-10Exhibit 4.7

 

AAR CORP.

To

U.S. BANK NATIONAL ASSOCIATION

as Trustee

INDENTURE

Dated as of [                    ], 20[   ]

Providing for Issuance of Debt Securities

 

 

AAR CORP.

Reconciliation and Tie between Trust
Indenture Act of 1939, as amended, and

the Indenture, dated as of [                    ], 20[  ]

 

	
  Trust Indenture

  	
   

  	
  Indenture

  
	
  Act Section

  	
   

  	
   

  	
  Section(s)

  
	
   

  	
   

  	
   

  	
   

  
	
  §310

  	
  (a)(1)

  	
   

  	
  6.9

  
	
   

  	
  (a)(2)

  	
   

  	
  6.9, 6.14

  
	
   

  	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(5)

  	
   

  	
  6.9

  
	
   

  	
  (b)

  	
   

  	
  6.8, 6.10

  
	
   

  	
  (c)

  	
   

  	
  Not Applicable

  
	
  §311

  	
  (a)

  	
   

  	
  6.13

  
	
   

  	
  (b)

  	
   

  	
  6.13

  
	
   

  	
  (c)

  	
   

  	
  6.13

  
	
  §312

  	
  (a)

  	
   

  	
  7.1, 7.2(a)

  
	
   

  	
  (b)

  	
   

  	
  7.2(a)

  
	
   

  	
  (c)

  	
   

  	
  7.2(b)

  
	
  §313

  	
  (a)

  	
   

  	
  7.3(a)

  
	
   

  	
  (b)

  	
   

  	
  7.3(b)

  
	
   

  	
  (c)

  	
   

  	
  7.3(c)

  
	
   

  	
  (d)

  	
   

  	
  7.3(c)

  
	
  §314

  	
  (a)

  	
   

  	
  7.4

  
	
   

  	
  (a)(4)

  	
   

  	
  10.1, 10.9

  
	
   

  	
  (b)

  	
   

  	
  Not Applicable

  
	
   

  	
  (c)(1)

  	
   

  	
  1.2

  
	
   

  	
  (c)(2)

  	
   

  	
  1.2

  
	
   

  	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
  (d)

  	
   

  	
  Not Applicable

  
	
   

  	
  (e)

  	
   

  	
  1.2

  
	
   

  	
  (f)

  	
   

  	
  Not Applicable

  
	
  §315

  	
  (a)

  	
   

  	
  6.1

  
	
   

  	
  (b)

  	
   

  	
  6.2

  
	
   

  	
  (c)

  	
   

  	
  6.1

  
	
   

  	
  (d)

  	
   

  	
  6.1

  
	
   

  	
  (e)

  	
   

  	
  5.14

  
	
  §316

  	
  (a)(1)(A)

  	
   

  	
  5.2, 5.12

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  5.13

  
	
   

  	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
   

  	
  (b)

  	
   

  	
  5.8

  
	
   

  	
  (c)

  	
   

  	
  1.4

  
	
  §317

  	
  (a)(1)

  	
   

  	
  5.3

  
	
   

  	
  (a)(2)

  	
   

  	
  5.4

  
	
   

  	
  (b)

  	
   

  	
  10.3

  
	
  §318

  	
  (a)

  	
   

  	
  1.8

  
	
   

  	
  (c)

  	
   

  	
  1.8

  
					

 

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

 

 

TABLE OF CONTENTS(1)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ONE

  	
  DEFINITIONS AND OTHER PROVISIONS
  OF GENERAL APPLICATION

  	
   

  	
  1

  
	
  Section 1.1

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.2

  	
  Compliance Certificates and Opinions

  	
   

  	
  7

  
	
  Section 1.3

  	
  Form of Documents Delivered to Trustee

  	
   

  	
  8

  
	
  Section 1.4

  	
  Acts of Holders; Record Dates

  	
   

  	
  8

  
	
  Section 1.5

  	
  Notices, Etc., to Trustee, Corporation

  	
   

  	
  10

  
	
  Section 1.6

  	
  Notice to Holders of Securities; Waiver

  	
   

  	
  11

  
	
  Section 1.7

  	
  Language of Notices, Etc

  	
   

  	
  12

  
	
  Section 1.8

  	
  Conflict with Trust Indenture Act

  	
   

  	
  12

  
	
  Section 1.9

  	
  Effect of Headings and Table of Contents

  	
   

  	
  12

  
	
  Section 1.10

  	
  Successors and Assigns

  	
   

  	
  12

  
	
  Section 1.11

  	
  Separability Clause

  	
   

  	
  12

  
	
  Section 1.12

  	
  Benefits of Indenture

  	
   

  	
  12

  
	
  Section 1.13

  	
  Governing Law

  	
   

  	
  12

  
	
  Section 1.14

  	
  Legal Holidays

  	
   

  	
  12

  
	
  Section 1.15

  	
  No Adverse Interpretation of Other Agreements

  	
   

  	
  13

  
	
  Section 1.16

  	
  Execution in Counterparts

  	
   

  	
  13

  
	
  ARTICLE TWO

  	
  SECURITY FORMS

  	
   

  	
  13

  
	
  Section 2.1

  	
  Forms Generally

  	
   

  	
  13

  
	
  Section 2.2

  	
  Form of Trustee’s Certificate of Authentication

  	
   

  	
  13

  
	
  Section 2.3

  	
  Securities in Global Form

  	
   

  	
  14

  
	
  Section 2.4

  	
  Form of Legend for Global Securities

  	
   

  	
  14

  
	
  Section 2.5

  	
  Form of Legend for Bearer Securities

  	
   

  	
  14

  
	
  ARTICLE THREE

  	
  THE SECURITIES

  	
   

  	
  14

  
	
  Section 3.1

  	
  Amount Unlimited; Issuable in Series

  	
   

  	
  14

  
	
  Section 3.2

  	
  Denominations

  	
   

  	
  17

  
	
  Section 3.3

  	
  Execution, Authentication, Delivery and Dating

  	
   

  	
  17

  
	
  Section 3.4

  	
  Temporary Securities

  	
   

  	
  20

  
	
  Section 3.5

  	
  Registration, Registration of Transfer and Exchange

  	
   

  	
  20

  
	
  Section 3.6

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
   

  	
  23

  
	
  Section 3.7

  	
  Payment of Interest; Interest Rights Preserved

  	
   

  	
  24

  

 

(1) Note:  This table of contents shall not, for any
purpose, be deemed to be a part of the Indenture.

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.8

  	
  Persons Deemed Owners

  	
   

  	
  26

  
	
  Section 3.9

  	
  Cancellation

  	
   

  	
  26

  
	
  Section 3.10

  	
  Computation of Interest

  	
   

  	
  27

  
	
  Section 3.11

  	
  Form of Certification by a Person Entitled to
  Receive a Bearer Security

  	
   

  	
  27

  
	
  Section 3.12

  	
  CUSIP, ISIN and Common Code Numbers

  	
   

  	
  28

  
	
  ARTICLE FOUR

  	
  SATISFACTION AND DISCHARGE

  	
   

  	
  28

  
	
  Section 4.1

  	
  Satisfaction and Discharge of Indenture

  	
   

  	
  28

  
	
  Section 4.2

  	
  Application of Trust Money

  	
   

  	
  29

  
	
  ARTICLE FIVE

  	
  REMEDIES

  	
   

  	
  30

  
	
  Section 5.1

  	
  Events of Default

  	
   

  	
  30

  
	
  Section 5.2

  	
  Acceleration of Maturity; Rescission and Annulment

  	
   

  	
  31

  
	
  Section 5.3

  	
  Collection of Indebtedness and Suits for Enforcement
  by Trustee

  	
   

  	
  32

  
	
  Section 5.4

  	
  Trustee May File Proofs of Claim

  	
   

  	
  32

  
	
  Section 5.5

  	
  Trustee May Enforce Claims Without Possession
  of Securities or Coupons

  	
   

  	
  33

  
	
  Section 5.6

  	
  Application of Money Collected

  	
   

  	
  33

  
	
  Section 5.7

  	
  Limitation on Suits

  	
   

  	
  34

  
	
  Section 5.8

  	
  Unconditional Right of Holders to Receive Principal,
  Premium and Interest

  	
   

  	
  34

  
	
  Section 5.9

  	
  Restoration of Rights and Remedies

  	
   

  	
  34

  
	
  Section 5.10

  	
  Rights and Remedies Cumulative

  	
   

  	
  35

  
	
  Section 5.11

  	
  Delay or Omission Not Waiver

  	
   

  	
  35

  
	
  Section 5.12

  	
  Control by Holders of Securities

  	
   

  	
  35

  
	
  Section 5.13

  	
  Waiver of Past Defaults

  	
   

  	
  35

  
	
  Section 5.14

  	
  Undertaking for Costs

  	
   

  	
  36

  
	
  Section 5.15

  	
  Waiver of Stay or Extension Laws

  	
   

  	
  36

  
	
  ARTICLE SIX

  	
  THE TRUSTEE

  	
   

  	
  36

  
	
  Section 6.1

  	
  Certain Duties and Responsibilities

  	
   

  	
  36

  
	
  Section 6.2

  	
  Notice of Defaults

  	
   

  	
  37

  

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.3

  	
  Certain Rights of Trustee

  	
   

  	
  38

  
	
  Section 6.4

  	
  Not Responsible for Recitals or Issuance of
  Securities

  	
   

  	
  39

  
	
  Section 6.5

  	
  May Hold Securities

  	
   

  	
  39

  
	
  Section 6.6

  	
  Money Held in Trust

  	
   

  	
  39

  
	
  Section 6.7

  	
  Compensation and Reimbursement

  	
   

  	
  39

  
	
  Section 6.8

  	
  Disqualification; Conflicting Interests

  	
   

  	
  40

  
	
  Section 6.9

  	
  Corporate Trustee Required; Eligibility

  	
   

  	
  40

  
	
  Section 6.10

  	
  Resignation and Removal; Appointment of Successor

  	
   

  	
  40

  
	
  Section 6.11

  	
  Acceptance of Appointment by Successor

  	
   

  	
  42

  
	
  Section 6.12

  	
  Merger, Conversion, Consolidation or Succession to
  Business

  	
   

  	
  43

  
	
  Section 6.13

  	
  Preferential Collection of Claims Against
  Corporation

  	
   

  	
  43

  
	
  Section 6.14

  	
  Appointment of Authenticating Agent

  	
   

  	
  43

  
	
  ARTICLE SEVEN

  	
  HOLDERS’ LISTS AND REPORTS BY
  TRUSTEE AND CORPORATION

  	
   

  	
  45

  
	
  Section 7.1

  	
  Corporation to Furnish Trustee Names and Addresses
  of Holders

  	
   

  	
  45

  
	
  Section 7.2

  	
  Preservation of Information; Communications to
  Holders

  	
   

  	
  45

  
	
  Section 7.3

  	
  Reports by Trustee

  	
   

  	
  45

  
	
  Section 7.4

  	
  Reports by Corporation

  	
   

  	
  46

  
	
  ARTICLE EIGHT

  	
  CONSOLIDATION, MERGER,
  CONVEYANCE, TRANSFER OR LEASE

  	
   

  	
  46

  
	
  Section 8.1

  	
  Corporation May Consolidate, Etc., Only on
  Certain Terms

  	
   

  	
  46

  
	
  Section 8.2

  	
  Successor Corporation Substituted

  	
   

  	
  47

  
	
  ARTICLE NINE

  	
  SUPPLEMENTAL INDENTURES

  	
   

  	
  47

  
	
  Section 9.1

  	
  Supplemental Indentures without Consent of Holders

  	
   

  	
  47

  
	
  Section 9.2

  	
  Supplemental Indentures with Consent of Holders

  	
   

  	
  48

  
	
  Section 9.3

  	
  Execution of Supplemental Indentures

  	
   

  	
  49

  
	
  Section 9.4

  	
  Effect of Supplemental Indentures

  	
   

  	
  50

  
	
  Section 9.5

  	
  Conformity with Trust Indenture Act

  	
   

  	
  50

  
	
  Section 9.6

  	
  Reference in Securities to Supplemental Indentures

  	
   

  	
  50

  

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
  COVENANTS

  	
   

  	
  50

  
	
  Section 10.1

  	
  Payment of Principal, Premium and Interest

  	
   

  	
  50

  
	
  Section 10.2

  	
  Maintenance of Office or Agency

  	
   

  	
  50

  
	
  Section 10.3

  	
  Money for Securities Payments to be Held in Trust

  	
   

  	
  51

  
	
  Section 10.4

  	
  Statement as to Compliance

  	
   

  	
  52

  
	
  Section 10.5

  	
  Waiver of Certain Covenants

  	
   

  	
  52

  
	
  Section 10.6

  	
  Additional Sums

  	
   

  	
  52

  
	
  Section 10.7

  	
  Original Issue Discount

  	
   

  	
  53

  
	
  ARTICLE ELEVEN

  	
  REDEMPTION OF SECURITIES

  	
   

  	
  53

  
	
  Section 11.1

  	
  Applicability of Article

  	
   

  	
  53

  
	
  Section 11.2

  	
  Election to Redeem; Notice to Trustee

  	
   

  	
  54

  
	
  Section 11.3

  	
  Selection by Trustee of Securities to be Redeemed

  	
   

  	
  54

  
	
  Section 11.4

  	
  Notice of Redemption

  	
   

  	
  54

  
	
  Section 11.5

  	
  Deposit of Redemption Price

  	
   

  	
  55

  
	
  Section 11.6

  	
  Securities Payable on Redemption Date

  	
   

  	
  55

  
	
  Section 11.7

  	
  Securities Redeemed in Part

  	
   

  	
  56

  
	
  ARTICLE TWELVE

  	
  SINKING FUNDS

  	
   

  	
  56

  
	
  Section 12.1

  	
  Applicability of Article

  	
   

  	
  56

  
	
  Section 12.2

  	
  Satisfaction of Sinking Fund Payments with
  Securities

  	
   

  	
  57

  
	
  Section 12.3

  	
  Redemption of Securities for Sinking Fund

  	
   

  	
  57

  
	
  ARTICLE THIRTEEN

  	
  MEETINGS OF HOLDERS OF
  SECURITIES

  	
   

  	
  57

  
	
  Section 13.1

  	
  Purposes for Which Meetings May be Called

  	
   

  	
  57

  
	
  Section 13.2

  	
  Call Notice and Place of Meeting

  	
   

  	
  57

  
	
  Section 13.3

  	
  Persons Entitled to Vote at Meetings

  	
   

  	
  58

  
	
  Section 13.4

  	
  Quorum; Action

  	
   

  	
  58

  
	
  Section 13.5

  	
  Determination of Voting Rights; Conduct and
  Adjournment of Meetings

  	
   

  	
  59

  
	
  Section 13.6

  	
  Counting Votes and Recording Action of Meetings

  	
   

  	
  59

  
	
  Section 13.7

  	
  Action Without Meeting

  	
   

  	
  60

  
	
  ARTICLE FOURTEEN

  	
  IMMUNITY OF INCORPORATORS,
  STOCKHOLDERS, OFFICERS, DIRECTORS AND EMPLOYEES

  	
   

  	
  60

  

 

iv

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 14.1

  	
  Liability Solely Corporate

  	
   

  	
  60

  

 

v

 

INDENTURE,
dated as of [                    ], 20[    ],
between AAR CORP., a corporation duly organized and existing under the laws of
the State of Delaware (herein called the “Corporation”),
having its principal office at One AAR Place, 1100 N. Wood Dale Road, Wood
Dale, Illinois 60191, and U.S. Bank National Association, a national banking
association duly organized and existing under the laws of the United States,
having a corporate trust office at 60 Livingston Avenue, St. Paul, Minnesota
55107, as trustee hereunder (herein called the “Trustee”).

 

RECITALS OF THE CORPORATION

 

The
Corporation has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of the Corporation’s unsecured
debentures, notes or other evidences of indebtedness (herein collectively
called the “Securities,” and
individually called a “Security”),
which may or may not be convertible into or exchangeable for any securities of
any Person, to be issued in one or more series as provided in this Indenture.

 

All things
necessary to make this Indenture a valid agreement of the Corporation, in
accordance with its terms, have been done.

 

This Indenture
is subject to the provisions of the Trust Indenture Act of 1939, as amended,
and the rules and regulations of the Securities and Exchange Commission
promulgated thereunder that are required to be part of this Indenture and, to
the extent so required, shall be governed by such provisions.

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE ONE

 

Definitions and Other Provisions of General
Application

 

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

 

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

 

(b)           all other terms used herein which are
defined in the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them in the Trust Indenture Act;

 

(c)           all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with generally
accepted accounting principles in the United States of America, and, except as
otherwise herein expressly provided, the term “generally accepted accounting
principles” with respect to any computation required or permitted hereunder 

 

1

 

shall mean such accounting principles as are generally
accepted in the United States of America at the date of such computation;

 

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

 

(e)           the word “or” is always used
inclusively (for example, the phrase “A or B” means “A or B or both,” not “either
A or B but not both”).

 

Certain terms
used principally in certain Articles are defined in those Articles.

 

“Act,” when used with respect to any Holder
of a Security, has the meaning specified in Section 1.4.

 

“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”
when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

 

“Authenticating Agent” means any Person or
Persons authorized by the Trustee to act on behalf of the Trustee to
authenticate one or more series of Securities.

 

“Authorized Newspaper” means a newspaper, in
an official language of the country of publication or in the English language,
customarily published on each Business Day, whether or not published on
Saturdays, Sundays or holidays, and of general circulation in the place in
connection with which the term is used or in the financial community of such
place.  Where successive publications are
required to be made in Authorized Newspapers, the successive publications may
be made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any Business Day.

 

“Bankruptcy Law” means Title 11 of the
United States Code or any similar United States federal or state law for the
relief of debtors.

 

“Bearer Security” means any Security
established pursuant to Section 2.1 which is payable to bearer and shall
bear the legend specified in Section 2.5.

 

“Board of Directors” means the board of
directors of the Corporation or any committee thereof duly authorized to act on
behalf of the Board of Directors in respect of any matter.

 

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

 

2

 

“Business Day” means any day other than a
Saturday or Sunday or a day on which banks and trust companies located in the
municipality in which the Corporate Trust Office is located are authorized or
required by law, regulation or executive order to remain closed.

 

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

 

“Common Stock” means, with respect to any
Person, any and all shares, interests, participations or other equivalents,
however designated, whether voting or non-voting, of that Person’s equity,
other than preferred stock of that Person, whether now outstanding or issued
after the date of this Indenture, including, without limitation, all series and
classes of common stock.

 

“Corporate Trust Office” means a corporate
trust office of the Trustee at which at any particular time this Indenture
shall be administered, which office on the date of execution of this Indenture
is located at 60 Livingston Avenue, St. Paul, Minnesota 55107, Attention:
Corporate Trust Services, except that with respect to the presentation of
Securities of a series for payment or for registration of transfer or exchange,
such term shall mean the office or agency of the Trustee designated for such
purpose from time to time.

 

“corporation” includes any corporation,
association, company, limited liability company, joint stock company or
statutory or business trust.

 

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

 

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

 

“Depositary” means, with respect to the
Securities of any series issuable or issued in whole or in part in the form of
one or more Global Securities, a clearing agency registered under the
Securities Exchange Act of 1934, as amended, specified for that purpose as
contemplated by Section 3.1, or any successor clearing agency registered
under such Act as contemplated by Section 3.5.

 

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

 

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

 

“Global Security” means a Security bearing
the legend specified in Section 2.4 evidencing all or part of a series of
Securities, issued to the Depositary for such series or its nominee, and
registered in the name of such Depositary or nominee.

 

3

 

“Holder,” when used with respect to any
Security, means in the case of a Registered Security the Person in whose name
the Security is registered in the Security Register and in the case of a Bearer
Security the bearer thereof and, when used with respect to any coupon, means
the bearer thereof.

 

“Indenture” means this instrument as
originally executed or as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof.

 

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

 

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

 

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

 

“Officer” means, with respect to any Person,
the Chairman of the Board, a Vice Chairman, the President, a Vice President,
the Treasurer, an Assistant Treasurer, the Controller, an Assistant Controller,
the Secretary or an Assistant Secretary, of such Person and, if no other Person
is designated in this Indenture, of the Corporation.

 

“Officers’ Certificate” means a certificate
signed by the Chairman of the Board, a Vice Chairman, the President or a Vice
President, and by the Treasurer, an Assistant Treasurer, the Controller, an
Assistant Controller, the Secretary or an Assistant Secretary, of the
Corporation, that complies with the requirements of Section 314(c) of the
Trust Indenture Act and is delivered to the Trustee.

 

“Opinion of Counsel” means a written opinion
of counsel, who may be counsel for the Corporation, and who shall be acceptable
to the Trustee, that complies with the requirements of Section 314(c) of
the Trust Indenture Act and Section 1.2 of this Indenture.

 

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

 

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

 

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

 

(b)           Securities of such series for whose
payment or redemption money in the necessary amount has been theretofore
deposited with the Trustee or any Paying Agent 

 

4

 

(other than the Corporation) in trust or set aside and
segregated in trust by the Corporation (if the Corporation shall act as its own
Paying Agent) for the Holders of such Securities and any coupons thereto
appertaining and, if such
Securities are to be redeemed, notice of which redemption has been duly given
pursuant to this Indenture or provision therefor satisfactory to the Trustee
has been made; and

 

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

 

and provided further, that in determining
whether the Holders of the requisite principal amount of the Outstanding
Securities of any series or all series, as the case may be, have given any
request, demand, authorization, direction, notice, consent or waiver hereunder
or are present at a meeting of Holders of Securities of such series for quorum
purposes, Securities of such series owned by the Corporation or any other
obligor upon the Securities of such series or any Affiliate of the Corporation
or of such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver or upon any such determination as to the presence of a quorum, only
Securities of such series which the Trustee knows to be so owned shall be so
disregarded.  Securities of such series
so owned which have been pledged in good faith may be regarded as Outstanding
if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right so to act with respect to such Securities and that the pledgee is not the
Corporation or any other obligor upon the Securities or any Affiliate of the
Corporation or of such other obligor.

 

“Paying Agent” means any Person authorized
by the Corporation to pay the principal of (and premium, if any) or interest on
any Securities on behalf of the Corporation.

 

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

 

“Place of Payment,” when used with respect
to the Securities of any series, means the place or places where the principal
of (and premium, if any) and interest on the Securities of that series are
payable as specified as contemplated by Section 3.1.

 

“Predecessor Security” of any particular
Security means every previous Security evidencing all or a portion of the same
debt as that evidenced by such particular Security; and, for the purposes of
this definition, any Security authenticated and delivered under Section 3.6
in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

 

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

 

5

 

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

 

“Registered Security” means any Security
established pursuant to Section 2.1 that is registered in the Security
Register.

 

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

 

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

 

“Responsible Officer,” when used with
respect to the Trustee, means any Vice President, any assistant secretary, any
assistant treasurer, any cashier, any assistant cashier, any senior trust
officer, any trust officer or assistant trust officer, any assistant controller
or any other officer of the Trustee customarily performing corporate trust
functions on behalf of the Trustee and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular
subject.

 

“Section 10.6
Indemnitee” has the meaning specified in Section 10.6

 

“Securities”
and “Security” have the meanings
stated in the first recital of this Indenture and more particularly means any
Securities authenticated and delivered under this Indenture; provided, that if at any time there is
more than one Person acting as Trustee under this Indenture, the term “Securities,”
with respect to any such Person, shall mean Securities authenticated and
delivered under this Indenture, exclusive, however, of Securities of any series
as to which such Person is not Trustee.

 

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

 

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

 

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

 

“Subsidiary” means a corporation more than
50% of the outstanding Voting Stock of which is owned, directly or indirectly,
by the Corporation or by one or more other Subsidiaries, or by the Corporation
and one or more other Subsidiaries.

 

6

 

“Trust Indenture Act” means the Trust
Indenture Act of 1939, as amended, and any reference herein to the Trust
Indenture Act or a particular provision thereof shall mean such Trust Indenture
Act or provision, as the case may be, as amended or replaced from time to time
or as supplemented from time to time by rules or regulations adopted by the
Commission under or in furtherance of the purposes of such Trust Indenture Act
or provision, as the case may be.

 

“Trustee” means the Person named as the “Trustee”
in the first paragraph of this instrument until a successor Trustee shall have
become such with respect to one or more series of Securities pursuant to the
applicable provisions of this Indenture, and thereafter the term “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, the term “Trustee,” as used with
respect to the Securities of any series, shall mean the Trustee with respect to
Securities of that series.

 

“United States” means the United States of
America (including the states and the District of Columbia), its territories
and possessions and other areas subject to its jurisdiction.

 

“United States Alien” means any Person who,
for United States federal income tax purposes, is a foreign corporation, a
non-resident alien individual, a non-resident alien fiduciary of a foreign
estate or trust, or a foreign partnership one or more of the members of which
is, for United States federal income tax purposes, a foreign corporation, a
non-resident alien individual or a non-resident alien fiduciary of a foreign
estate or trust.

 

“Vice President,” when used with respect to
the Corporation or the Trustee, means any vice president, whether or not
designated by a number or a word or words added before or after the title “vice
president.”

 

“Voting Stock” means the class or classes of
stock which ordinarily have voting power for the election of directors, whether
at all times or only so long as no senior class of stock has such voting power
by reason of any contingency.

 

Section 1.2  Compliance Certificates and Opinions.  Upon any application or
request by the Corporation to the Trustee to take any action under any
provision of this Indenture, the Corporation shall furnish to the Trustee an
Officers’ Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that, in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional Officers’ Certificate or
Opinion of Counsel need be furnished under this Section 1.2.

 

Every Officers’
Certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

 

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

 

7

 

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

 

(c)           a statement that, in the opinion of
each such individual, such individual has made such examination or
investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been complied with;
and

 

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

 

Section 1.3  Form of Documents Delivered to Trustee.  In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the
opinion of, only one such Person, or that they be so certified or covered by
only one document, but one such Person may certify or give an opinion with
respect to some matters and one or more other such Persons as to other matters,
and any such Person may certify or give an opinion as to such matters in one or
several documents.

 

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

 

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

 

Section 1.4  Acts of Holders; Record Dates.

 

(a)           Any request, demand, authorization,
direction, notice, consent, waiver or other action provided in or pursuant to
this Indenture to be made, given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Holders in person or by an agent duly appointed in writing.  If Securities of a series are issuable as
Bearer Securities, any request, demand, authorization, direction, notice,
consent, waiver or other action provided in or pursuant to this Indenture to be
made, given or taken by Holders may, alternatively, be embodied in and
evidenced by the record of Holders of Securities voting in favor thereof,
either in person or by proxies duly appointed in writing, at any meeting of
Holders of Securities duly called and held in accordance with the provisions of
Article Thirteen, or a combination of such instrument or instruments and
any such record.  Except as herein
otherwise expressly provided, such action shall become effective when such
instrument or 

 

8

 

instruments or record or both are delivered to the
Trustee and, where it is hereby expressly required, to the Corporation or
both.  Such instrument or instruments and
any such record (and the action embodied therein and evidenced thereby) are
herein sometimes referred to as the “Act”
of the Holders signing such instrument or instruments and so voting at any such
meeting.  Proof of execution of any such
instrument or of a writing appointing any such agent, or of the holding by any
Person of a Security, shall be sufficient for any purpose of this Indenture and
(subject to Section 6.1) conclusive in favor of the Trustee and the Corporation
if made in the manner provided in this Section. 
The record of any meeting of Holders of Securities shall be proved in
the manner provided in Section 13.6.

 

Notwithstanding
the foregoing, with respect to any Global Security, nothing herein shall prevent
the Corporation, the Trustee, or any agent of the Corporation or the Trustee,
from giving effect to any request, demand, authorization, direction, notice,
consent, waiver or other action provided in this Indenture to be given or taken
by a Depositary or impair, as between a Depositary and such holders of
beneficial interests, the operation of customary practices governing the
exercise of the rights of the Depositary (or its nominee) as Holder of any
Security.

 

Without
limiting the generality of this Section 1.4, unless otherwise provided in
or pursuant to this Indenture, a Holder, including a Depositary that is a
Holder of a Global Security, may make, give or take, by a proxy or proxies duly
appointed in writing, any request, demand, authorization, direction, notice,
consent, waiver or other action provided in or pursuant to this Indenture to be
made, given or taken by Holders, and a Depositary that is a Holder of a Global
Security may give its proxy or proxies to the Depositary’s participants or the beneficial
owners of interests in any such Global Security, as the case may be, through
such Depositary’s standing instructions and customary practices.

 

Subject to the
next succeeding paragraph, the Corporation may, in the circumstances permitted
by the Trust Indenture Act, fix any day as the record date for the purpose of
determining the Holders of Securities of any series entitled to give or take
any request, demand, authorization, direction, notice, consent, waiver or other
action, or to vote on any action, authorized or permitted to be given or taken
by Holders of Securities of such series. 
If not set by the Corporation prior to the first solicitation of a
Holder of Securities of such series made by any Person in respect of any such
action, or in the case of any such vote, prior to such vote, the record date
for any such action or vote shall be the 30th day prior to such first
solicitation or vote, or, if later, the date of the most recent list of Holders
required to be provided pursuant to Section 7.1, as the case may be.  With regard to any record date for action to
be taken by the Holders of one or more series of Securities, only the Holders
of Securities of such series on such date (or their duly designated proxies)
shall be entitled to give or take, or vote on, the relevant action.

 

The Trustee
shall fix a record date for the purpose of determining the Persons who are
beneficial owners of interests in any permanent Global Security held by a
Depositary and who are entitled under the procedures of such Depositary to
make, give or take, by a proxy or proxies duly appointed in writing, any
request, demand, authorization, direction, notice, consent, waiver or other
action provided in or pursuant to this Indenture to be made, given or taken by
Holders.  If such a record date is fixed,
the Holders on such record date or their duly appointed proxy or proxies, and
only such Persons, shall be entitled to make, give or take such request, 

 

9

 

demand, authorization, direction, notice, consent, waiver or other
action, whether or not such Holders remain Holders after such record date.  No such request, demand, authorization,
direction, notice, consent, waiver or other action shall be valid or effective
if made, given or taken more than 90 days after such record date.

 

(b)           The fact and date of the execution by
any Person of any such instrument or writing may be proved in any manner that
the Trustee deems sufficient.

 

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

 

(d)           The principal amount and serial
numbers of Bearer Securities held by any Person executing any such instrument
or writing as a Holder of Securities, and the date of such Holder’s holding the
same, may be proved by the production of such Bearer Securities or by a
certificate executed, as depositary, by any trust company, bank, banker or
other depositary, wherever situated, if such certificate shall be deemed by the
Trustee to be satisfactory, showing that at the date therein mentioned such
Person had on deposit with such depositary, or exhibited to it, the Bearer
Securities therein described; or such facts may be proved by the certificate or
affidavit of the Person executing such instrument or writing as a Holder of
Securities, if such certificate or affidavit is deemed by the Trustee to be
satisfactory.  The Trustee and the
Corporation may assume that such ownership of any Bearer Security continues
until (1) another certificate or affidavit bearing a later date issued in
respect of the same Bearer Security is produced, or (2) such Bearer
Security is produced to the Trustee by some other Person, or (3) such
Bearer Security is surrendered in exchange for a Registered Security, or (4) such
Bearer Security is no longer Outstanding.

 

(e)           The fact and date of execution of any
such instrument or writing, the authority of the Person executing the same, the
principal amount and serial numbers of Bearer Securities held by the Person so
executing such instrument or writing and the date of holding the same may also
be proved in any other manner which the Trustee deems sufficient; and the
Trustee may in any instance require further proof with respect to any of the
matters referred to in this Section.

 

(f)            Any request, demand, authorization,
direction, notice, consent, election, waiver or other Act of  the Holder of any Security shall bind
every future Holder of the same Security and the Holder of every Security issued
upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the
Trustee or the Corporation in reliance thereon, whether or not notation of such
action is made upon such Security.

 

Section 1.5  Notices, Etc., to Trustee, Corporation.  Any request, demand, authorization,
direction, notice, consent, election, waiver or other Act of Holders of a
series of Securities or other document provided or permitted by this Indenture
to be made upon, given or furnished to, or filed with,

 

10

 

(a)           the Trustee of such series by any
Holder of a Security of such series or by the Corporation shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing to or
with the Trustee of such series at its Corporate Trust Office, or

 

(b)           the Corporation by the Trustee of
such series or by any Holder of a Security of such series shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to the Corporation, addressed
to the attention of its Secretary, at One AAR Place, 1100 N. Wood Dale Road,
Wood Dale, Illinois 60191, or at any other address previously furnished in
writing to the Trustee of such series by the Corporation.

 

Section 1.6  Notice to Holders of Securities; Waiver.  Except as otherwise expressly provided
herein, where this Indenture provides for notice to Holders of Securities (of
any series) of any event,

 

(a)           such notice shall be sufficiently
given to Holders of Registered Securities of such series if in writing and
mailed, first-class postage prepaid, to each Holder of a Registered Security of
such series affected by such event, at such Holder’s address as it appears in
the Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such Notice; and

 

(b)           such notice shall be sufficiently
given to Holders of Bearer Securities of such series if published in an
Authorized Newspaper in the Borough of Manhattan, The City of New York and, if
the Securities of such series are then listed on The London Stock Exchange and
such stock exchange shall so require, in London and, if the Securities of such
series are then listed on the Luxembourg Stock Exchange and such stock exchange
shall so require, in Luxembourg and, if the Securities of such series are then
listed on any other stock exchange outside the United States and such stock
exchange shall so require, in any other required city outside the United States
or, if not practicable, in Europe, on a Business Day at least twice, the first
such publication to be not earlier than the earliest date and not later than
the latest date prescribed for the giving of such notice.

 

In case by
reason of the suspension of regular mail service or by reason of any other
cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.  In any case where notice to Holders of
Registered Securities is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder of a
Registered Security shall affect the sufficiency of such notice with respect to
other Holders of Registered Securities or the sufficiency of any notice by
publication to Holders of Bearer Securities given as provided above.

 

In case by
reason of the suspension of publication of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities of any series as provided
above, then such notification to Holders of such Bearer Securities as shall be
given with the approval of the Trustee for such series shall constitute
sufficient notice to such Holders for every purpose hereunder.  Neither failure to give notice by publication
to Holders of Bearer Securities as provided above, nor any 

 

11

 

defect in any notice so published, shall affect the sufficiency of any
notice mailed to Holders of Registered Securities as provided above.

 

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

 

Section 1.7  Language of Notices, Etc.  Any request, demand, authorization,
direction, notice, consent, election or waiver required or permitted under this
Indenture shall be in the English language, except that any published notice
may be in an official language of the country of publication.

 

Section 1.8  Conflict with Trust Indenture Act.  If any provision hereof limits, qualifies or
conflicts with any duties under any required provision of the Trust Indenture
Act deemed included herein by Section 318(c) thereof, such required
provision shall control.

 

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

 

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

 

Section 1.11  Separability Clause.  In case any provision in this Indenture or
the Securities or coupons 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 1.12  Benefits of Indenture.  Nothing in this Indenture or the Securities
or coupons, express or implied, shall give to any Person, other than the
parties hereto, their successors hereunder and the Holders of Securities and
coupons, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

 

Section 1.13  Governing Law.  This Indenture and the Securities and coupons
shall be governed by and construed in accordance with the internal law of the
State of New York.

 

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

 

12

 

Section 1.15  No Adverse Interpretation of Other
Agreements.  This
Indenture may not be used to interpret another indenture, loan or debt
agreement of the Corporation or any Affiliate thereof.  No such indenture, loan or debt agreement may
be used to interpret this Indenture.

 

Section 1.16  Execution in Counterparts.  This instrument may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

 

ARTICLE TWO

Security Forms

 

Section 2.1  Forms Generally.  The Registered Securities, if any, of each
series and the Bearer Securities, if any, of each series and related coupons
and the Global Securities, if any, issued pursuant to this Indenture shall be
in such form as shall be established by or pursuant to a Board Resolution of
the Corporation or in one or more indentures supplemental hereto, in each case
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any securities
exchange or as may, consistently herewith, be determined by the Officers
executing such Securities or coupons, as evidenced by their execution of the
Securities or coupons (but which do not affect the rights or duties of the
Trustee).  If the forms of Securities or
coupons of any series are established by or pursuant to a Board Resolution, a
copy of an appropriate record of such action shall be certified by the
Secretary or an Assistant Secretary of the Corporation and delivered to the
Trustee at or prior to the delivery of the Order of the Corporation
contemplated by Section 3.3 for the authentication and delivery of such
Securities or coupons.

 

The Trustee’s
certificates of authentication shall be in substantially the form set forth in
this Article or Article Six.

 

Unless
otherwise provided as contemplated by Section 3.1 with respect to any
series of Securities, the Securities of each series shall be issuable in global
and registered form without coupons.  If
so provided as contemplated by Section 3.1, the Securities of a series
also shall be issuable in bearer form, with or without interest coupons
attached.

 

The definitive
Securities and coupons, if any, shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner permitted by the rules
of any applicable securities exchange, all as determined by the Officers
executing such Securities, as evidenced by their execution of such Securities
or coupons.

 

Section 2.2  Form of Trustee’s Certificate of
Authentication. 
Subject to Section 6.14, the Trustee’s certificate of
authentication shall be in substantially the following form:

 

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

 

13

 

	
   

  	
  U.S. Bank National Association, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

Section 2.3  Securities in Global Form.  If Securities of a series are issuable in
global form, any such Security may provide that it or any number of such
Securities shall represent the aggregate amount of all Outstanding Securities
of such series (or such lesser amount as is permitted by the terms thereof)
from time to time endorsed thereon and may also provide that the aggregate
amount of Outstanding Securities represented thereby may from time to time be
increased or reduced to reflect exchanges. 
Any endorsement of any Security in global form to reflect the amount, or
any increase or decrease in the amount, or changes in the rights of Holders, of
Outstanding Securities represented thereby shall be made in such manner and by
such Person or Persons as shall be specified therein or in the Order of the
Corporation to be delivered pursuant to Sections 3.3 or 3.4 with respect
thereto.  Subject to the provisions of Section 3.3
and, if applicable, Section 3.4, the Trustee shall deliver and redeliver
any Security in permanent global form in the manner and upon instructions given
by the Person or Persons specified therein or in the applicable Order of the
Corporation.  If the Order of the
Corporation pursuant to Sections 3.3 or 3.4 has been, or simultaneously is,
delivered, any instructions by the Corporation with respect to a Security in
global form shall be in writing but need not be accompanied by or contained in
an Officers’ Certificate and need not be accompanied by an Opinion of Counsel.

 

Section 2.4  Form of Legend for Global Securities.  Any Global Security authenticated and
delivered hereunder shall bear a legend in substantially the following form, or
in such other form that is acceptable to the Depositary and the Trustee:

 

“Unless and
until it is exchanged in whole or in part for Securities in definitive
registered form, this Security may not be transferred except as a whole by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary.”

 

Section 2.5  Form of Legend for Bearer Securities.  Any Bearer Security authenticated and
delivered hereunder shall bear a legend in substantially the following form:

 

“Any United
States person who holds this Security shall be subject to limitations under the
United States income tax laws, including the limitation provided in Sections 165(j)
and 1287(a) of the Internal Revenue Code of 1986, as amended.”

 

ARTICLE THREE

 

The Securities

 

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

 

14

 

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

 

(a)           the title of the Securities of the
series (which shall distinguish the Securities of the series from securities of
all other series issued by the Corporation);

 

(b)           any limit upon the aggregate
principal amount of the Securities of the series which may be authenticated and
delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities of the series pursuant to Section 3.4, 3.5, 3.6, 9.6 or
11.7);

 

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

 

(d)           the right, if any, to extend the
Stated Maturity on which the Corporation shall pay any installment of principal
of or interest on the Securities of the series;

 

(e)           the rate or rates at which the
Securities of the series shall bear interest, if any, or any method by which
such rate or rates shall be determined, the basis upon which interest shall be
computed if other than that specified in Section 3.10, the date or dates
from which such interest shall accrue, the Interest Payment Dates on which such
interest shall be payable and the Regular Record Date for the interest payable on
Registered Securities on any Interest Payment Date;

 

(f)            the place or places where the
principal of (and premium, if any) and interest, if any, on Securities of the
series shall be payable;

 

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

 

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

 

(i)            the right, if any, of the
Corporation or a third party to redeem or purchase Securities of the series 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 right;

 

(j)            whether Bearer Securities of the
series are to be issuable;

 

(k)           if Bearer Securities of the series
are to be issuable, whether interest in respect of any portion of a temporary
Bearer Security in global form (representing all of the Outstanding Bearer
Securities of the series) payable in respect of an Interest Payment Date prior 

 

15

 

to the exchange of such temporary Bearer Security for
definitive Securities of the series shall be paid to any clearing agency with
respect to the portion of such temporary Bearer Security held for its account
and, in such event, the terms and conditions (including any certification
requirements) upon which any such interest payment received by a clearing
agency shall be credited to the Persons entitled to interest payable on such
Interest Payment Date;

 

(l)            the date as of which any Bearer
Securities of the series, any temporary Bearer Security in global form and any
Global Securities shall be dated if other than the date of original issuance of
the first Security of the series to be issued;

 

(m)          the denominations in which Registered
Securities of the series, if any, shall be issuable if other than denominations
of $1,000 and any integral multiple thereof, and the denominations in which
Bearer Securities of the series, if any, shall be issuable if other than the
denomination of $5,000;

 

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

 

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

 

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

 

(q)           any additional Events of Default or
additional covenants of the Corporation pertaining to the Securities of the
series;

 

(r)            whether and under what circumstances
the Corporation shall pay additional amounts on the Securities of the series
held by a Person who is a United States Alien in respect of taxes or similar
charges withheld or deducted and, if so, whether the Corporation shall have the
option to redeem such Securities rather than pay such additional amounts;

 

(s)           whether any Securities of the series
are to be issuable in whole or in part in the form of one or more Global
Securities and, if so, (i) the Depositary with respect to such Global
Security or Securities and (ii) the circumstances under which beneficial
owners of interests in any such Global Security may exchange such interest for
Securities of the same series and of like tenor and of any authorized form and
denomination, and the circumstances under which any such exchange may occur, if
other than as set forth in Section 3.5;

 

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

 

16

 

(u)           the date or dates, if any, after
which the Holders may convert Securities of the series into shares of Common
Stock or preferred stock of the Corporation and the terms for that conversion;
and

 

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

 

All Securities
of any one series and the coupons appertaining to Bearer Securities of such
series, if any, shall be substantially identical except, in the case of
Registered Securities, as to denomination and except as may otherwise be
provided in or pursuant to the Board Resolution and set forth in the Officers’
Certificate, or provided in the indenture supplemental hereto, establishing the
series.

 

If any of the
terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified
by the Secretary or an Assistant Secretary of the Corporation and delivered to
the Trustee at or prior to the delivery of the Officers’ Certificate setting
forth the terms of the series.  Such
Board Resolution may provide general terms or parameters for Securities of such
series and may provide that the specific terms of particular Securities of such
series, and the Persons authorized to determine such terms or parameters may be
determined in accordance with or pursuant to the Order of the Corporation
referred to in the third paragraph of Section 3.3.

 

Section 3.2  Denominations.  Unless otherwise provided as contemplated by Section 3.1
with respect to any series of Securities, the Registered Securities of each
series, if any, shall be issuable in denominations of $1,000 or any integral
multiple thereof, and the Bearer Securities of each series, if any, shall be
issuable in the denomination of $5,000.

 

Section 3.3  Execution, Authentication, Delivery and
Dating.  The
Securities shall be executed on behalf of the Corporation by its Chairman of
the Board, a Vice Chairman, its President or one of its Vice Presidents, under
its corporate seal reproduced thereon attested by its Secretary or one of its
Assistant Secretaries.  The signature of
any of these officers on the Securities may be manual or facsimile.  Coupons shall bear the facsimile signature of
the Treasurer or any Assistant Treasurer of the Corporation.

 

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

 

At any time
and from time to time after the execution and delivery of this Indenture, the
Corporation may deliver Securities of any series executed on behalf of the
Corporation to the Trustee for authentication by the Trustee together with an
Order of the Corporation for the authentication and delivery of such
Securities, and the Trustee in accordance with such Order shall authenticate
and deliver such Securities; provided,
that in connection with its original issuance, a Bearer Security may be
delivered only outside the United States and only if the Trustee shall have
received from the Person entitled to receive such Bearer Security a 

 

17

 

certificate in
the form required by Section 3.11; and provided
further, that, with respect to Securities of a series constituting a
medium-term note program, the Trustee shall authenticate and deliver Securities
of such series for original issue from time to time in the aggregate principal
amount established for such series pursuant to such procedures acceptable to
the Trustee and to such recipients as may be specified from time to time by an
Order of the Corporation.  The maturity
dates, original issue dates, interest rates and any other terms of the
Securities of a subseries of any medium-term note program shall be determined
by or pursuant to such Order of the Corporation and such procedures.

 

In
authenticating Securities in accordance with an Order of the Corporation, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to
Sections 315(a) through 315(d) of the Trust Indenture Act) shall be fully
protected in relying upon:

 

(a)           the Board Resolution or indenture
supplemental hereto establishing the form of the Securities of the series
pursuant to Section 2.1 and the terms of the Securities of the series
pursuant to Section 3.1 (or, in the case of a Board Resolution, pursuant
to which such form and terms are established);

 

(b)           an Officers’ Certificate pursuant to
Sections 2.1 and 3.1 and complying with Section 1.2; and

 

(c)           an Opinion of Counsel complying with Section 1.2
stating,

 

(i)            that the forms of such Securities
and coupons, if any, have been established by or pursuant to a Board Resolution
or by an indenture supplemental hereto, as permitted by Section 2.1 and in
conformity with the provisions of this Indenture;

 

(ii)           that the terms of such Securities
have been established by or pursuant to a Board Resolution or by an indenture supplemental
hereto, as permitted by Sections 2.1 and 3.1 and in conformity with the
provisions of this Indenture;

 

(iii)          that such Securities, together with
the coupons, if any, appertaining thereto, when authenticated and delivered by
the Trustee and issued by the Corporation in the manner and subject to any
customary conditions specified in such Opinion of Counsel, shall constitute
valid and legally binding obligations of the Corporation entitled to the
benefits provided by the Indenture, enforceable in accordance with their
respective terms, except to the extent that the enforcement of such obligations
may be subject to bankruptcy laws or insolvency laws or other similar laws,
general principles of equity and such other qualifications as such counsel shall
conclude are customary or do not materially affect the rights of the Holders of
such Securities;

 

(iv)          that all laws and requirements in
respect of the execution and delivery of the Securities have been complied
with; and

 

18

 

(v)           such other matters as the Trustee may
reasonably request.

 

With respect
to Securities of a subseries of a medium-term note program, the Trustee may
conclusively rely on the documents and opinion delivered pursuant to Sections
2.1 and 3.1 and this Section 3.3, as applicable (unless revoked by
superseding comparable documents or opinions), with respect to the
establishment of the medium-term note program as to the authorization of the
Board of Directors of the Corporation of any Securities delivered hereunder,
the form thereof and the legality, validity, binding effect and enforceability
thereof.

 

Notwithstanding
the provisions of Section 3.1 and of the preceding two paragraphs, if not
all the Securities of any series are to be issued at one time, it shall not be
necessary to deliver the Officers’ Certificate otherwise required pursuant to Section 3.1
or the documents otherwise required pursuant to the preceding clauses (a), (b) or
(c) prior to or at the time of issuance of each Security, but such documents
shall be delivered prior to or at the time of issuance of the first Security of
such series and shall pertain to all of the Securities of such series.  After any such first delivery, any separate
Request by the Corporation that the Trustee authenticate Securities of such
series for original issue shall be deemed to be a certification by the
Corporation that all conditions precedent provided for in this Indenture
relating to authentication and delivery of such Securities continue to have
been complied with.

 

If such forms
or terms have been so established by or pursuant to a Board Resolution or by an
indenture supplemental hereto as permitted by Sections 2.1 and 3.1, the Trustee
shall have the right to decline to authenticate and deliver any Securities of
such series:

 

(x)           if the Trustee, being advised by counsel, determines that
such action may not lawfully be taken;

 

(y)           if
the Trustee in good faith by its board of directors, executive committee or a
committee of directors or Responsible Officers of the Trustee in good faith
determines that such action would expose the Trustee to personal liability to
Holders of any Outstanding series of Securities; or

 

(z)            if
the issue of such Securities pursuant to this Indenture shall affect the Trustee’s
own rights, duties and immunities under the Securities and this Indenture or
otherwise in a manner which is not acceptable to the Trustee.

 

If the
Corporation shall establish pursuant to Section 3.1 that the Securities of
a series are to be issued in whole or in part in the form of one or more Global
Securities, then the Corporation shall execute and the Trustee shall, in
accordance with this Section and the Order of the Corporation with respect to
such series, authenticate and deliver one or more Global Securities in
permanent form that (A) shall represent and shall be denominated in an
amount equal to the aggregate principal amount of the Outstanding Securities of
such series to be represented by such Global Security or Securities, (B) shall
be registered, if in registered form, in the name of the Depositary for such
Global Security or Securities or the nominee of such Depositary, (C) shall
be delivered by the Trustee to such Depositary or pursuant to such Depositary’s
instruction and (D) shall bear a legend as required by Section 2.4.

 

19

 

Each
Registered Security shall be dated the date of its authentication.  Each Global Security, each Bearer Security
and any temporary Bearer Security in global form shall be dated as of the date
specified as contemplated by Section 3.1.

 

No Security or
related coupon shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture.  Except
as permitted by Section 3.6 or 3.7, the Trustee shall not authenticate and
deliver any Bearer Security unless all appurtenant coupons for interest then
matured and paid or payment duly provided for have been detached and canceled.

 

Section 3.4  Temporary Securities.  Pending the preparation of definitive
Securities of any series, the Corporation may execute, and upon an Order of the
Corporation the Trustee shall authenticate and deliver, temporary Securities
which are printed, lithographed, typewritten, mimeographed or otherwise
produced, in any authorized denomination, substantially of the tenor of the
definitive Securities in lieu of which they are issued, in registered form or,
if authorized, in bearer form with one or more coupons or without coupons, and
with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced by their
execution of such Securities (but which do not affect the rights or duties of
the Trustee).  In the case of Bearer
Securities of any series, such temporary Securities may be in global form,
representing all of the outstanding Bearer Securities of such series.

 

Except in the
case of temporary Securities in global form, which shall be exchanged in
accordance with the provisions thereof, if temporary Securities of any series
are issued, the Corporation shall cause definitive Securities of that series to
be prepared without unreasonable delay. 
After the preparation of definitive Securities of such series, the
temporary Securities of such series shall be exchangeable for definitive
Securities of such series upon surrender of the temporary Securities of such
series at the office or agency of the Corporation in a Place of Payment for
that series, without charge to the Holder. 
Upon surrender for cancellation of any one or more temporary Securities
of any series (accompanied by any unmatured coupons appertaining thereto), the
Corporation shall execute and the Trustee shall authenticate and deliver in
exchange therefor (at an office or agency of the Corporation in the case of
Bearer Securities) a like principal amount of definitive Securities of the same
series of authorized denominations and of like tenor; provided, that no definitive Bearer
Security shall be delivered in exchange for a temporary Registered Security;
and provided further, that no
definitive Bearer Security shall be delivered in exchange for a temporary
Bearer Security unless the Trustee shall have received from the Person entitled
to receive the definitive Bearer Security a certificate in the form required by
Section 3.11.  Until so exchanged,
the temporary Securities of any series, including temporary Securities in
global form, shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.

 

Section 3.5  Registration, Registration of Transfer and
Exchange.  The
Corporation shall cause to be kept at one of its offices or agencies designated
pursuant to Section 10.2 a register (referred to as the “Security Register”) in which, subject to
such regulations as it 

 

20

 

may prescribe, the Corporation shall provide for the
registration of Registered Securities of each series and of transfers and
exchanges of Registered Securities of such series.  Said office or agency is hereby appointed the
security registrar (referred to as the “Security
Registrar”) for the purpose of registering Registered Securities of
each series and transfers and exchanges of Registered Securities of such series
as herein provided.

 

Upon surrender
for registration of transfer of any Registered Security of any series at the
office or agency in a Place of Payment maintained for such purpose for such
series, the Corporation shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Registered Securities of the same series, Stated Maturity and original
issue date, of any authorized denominations and of like tenor and aggregate
principal amount.

 

At the option
of the Holder, Registered Securities of any series (except a Global Security
representing all or a portion of such series) may be exchanged for Registered
Securities of the same series, Stated Maturity and original issue date, of any
authorized denominations and of like tenor and aggregate principal amount, upon
surrender of the Securities to be exchanged at any such office or agency.

 

At the option
of the Holder, Bearer Securities of any series may be exchanged for Registered
Securities of the same series, Stated Maturity and original issue date, of any
authorized denominations and of like tenor and aggregate principal amount, upon
surrender of the Bearer Securities to be exchanged at any such office or
agency, with all unmatured coupons and all matured coupons in default thereto
appertaining.  If the Holder of a Bearer
Security is unable to produce any such unmatured coupon or coupons or matured
coupon or coupons in default, such exchange may be effected if the Bearer
Securities are accompanied by payment in funds acceptable to the Corporation
and the Trustee in an amount equal to the face amount of such missing coupon or
coupons, or the surrender of such missing coupon or coupons may be waived by
the Corporation and the Trustee if there is furnished to them such security or
indemnity as they may require to save each of them and any Paying Agent
harmless.  If thereafter the Holder of
such Security surrenders to any Paying Agent any such missing coupon in respect
of which such a payment shall have been made, such Holder shall be entitled to
receive the amount of such payment; provided,
that except as otherwise provided in Section 10.2, interest represented by
coupons shall be payable only upon presentation and surrender of those coupons
at an office or agency located outside the United States.  Notwithstanding the foregoing, in case a
Bearer Security of any series is surrendered at any such office or agency in
exchange for a Registered Security of the same series after the close of
business at such office or agency on (1) any Regular Record Date and
before the opening of business at such office or agency on the relevant
Interest Payment Date, or (2) any Special Record Date and before the
opening of business at such office or agency on the related date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the
coupon relating to such Interest Payment Date or proposed date of payment, as
the case may be.

 

Whenever any
Securities are so surrendered for exchange, the Corporation shall execute, and
the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive.

 

21

 

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

 

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

 

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

 

The
Corporation shall not be required (a) to issue, to register the transfer
of or to exchange Securities of any series during a period of 15 Business Days
immediately preceding the date notice is given identifying the serial numbers
of the Securities of that series called for redemption, or (b) to issue,
to register the transfer of or to exchange any Registered Security so selected
for redemption in whole or in part, except the unredeemed portion of any
Security being redeemed in part, or (c) to exchange any Bearer Security so
selected for redemption except that such a Bearer Security may be exchanged for
a Registered Security of that series, provided,
that such Registered Security shall be immediately surrendered for redemption
with written instruction for payment consistent with the provisions of this
Indenture.

 

Notwithstanding
the foregoing, except as otherwise specified as contemplated by Section 3.1,
any Global Security shall be exchangeable pursuant to this Section 3.5 or
Sections 3.4, 3.6, 9.6 or 11.7 for Securities registered in the name of, and a
transfer of a Global Security of any series may be registered to, any Person
other than the Depositary for such Global Security or its nominee only if:

 

(i)            such Depositary notifies the
Corporation that it is unwilling or unable to continue as Depositary for such
Global Security, or such Depositary ceases to be a clearing agency registered
under the Securities Exchange Act of 1934, as amended, and a successor
Depositary is not appointed by the Corporation within 90 days;

 

(ii)           the Corporation executes and delivers
to the Trustee an Order of the Corporation that such Global Security shall be
so exchangeable and the transfer thereof so registrable; or

 

(iii)          there shall have occurred and be
continuing an Event of Default or an event which, with the giving of notice or
lapse of time, would constitute an Event of Default with respect to the
Securities of such series.

 

Upon the
occurrence in respect of any Global Security of any series of any one or more
of the conditions specified in clauses (i), (ii) or (iii) of the
preceding sentence or such other conditions 

 

22

 

as may be
specified as contemplated by Section 3.1 for such series, then without
unnecessary delay, but in any event not later than the earliest date on which
such interests may be so exchanged, the Corporation shall deliver to the
Trustee definitive Securities of that series in aggregate principal amount
equal to the principal amount of such Global Security, executed by the
Corporation.

 

On or after
the earliest date on which such interests may be so exchanged, such Global
Securities shall be surrendered from time to time by the Depositary and in
accordance with instructions given to the Trustee and the Depositary (which
instructions shall be in writing but need not be contained in or accompanied by
an Officers’ Certificate or be accompanied by an Opinion of Counsel), as shall
be specified in the Order of the Corporation with respect thereto to the
Trustee, as the Corporation’s agent for such purpose, to be exchanged, in whole
or in part, for definitive Securities of the same series without service
charge.  The Trustee shall authenticate
and make available for delivery, in exchange for each portion of such
surrendered Global Security, a like aggregate principal amount of definitive
Securities of the same series of authorized denominations and of like tenor as
the portion of such Global Security to be exchanged which (unless the
Securities of the series are not issuable both as Bearer Securities and as
Registered Securities, in which case the definitive Securities exchanged for
the Global Security shall be issuable only in the form in which the Securities
of the series are issuable, as specified as contemplated by Section 3.1)
shall be in the form of Bearer Securities or Registered Securities, or any
combination thereof, as shall be specified by the beneficial owner thereof; provided, that no such exchanges may occur
during a period beginning at the opening of business 15 Business Days before
any selection of Securities of the series to be redeemed and ending on the
relevant Redemption Date; and provided
further, that (unless otherwise specified as contemplated by Section 3.1)
no Bearer Security delivered in exchange for a portion of a Global Security
shall be mailed or otherwise delivered to any location in the United States.

 

Promptly
following any such exchange in part, such Global Security shall be returned by
the Trustee to the Depositary in accordance with the instructions of the
Corporation referred to above.  If a
Registered Security is issued in exchange for any portion of a Global Security
after the close of business at the office or agency where such exchange occurs on
any Regular Record Date for such Security and before the opening of business at
such office or agency on the next Interest Payment Date, or any Special Record
Date for such Security and before the opening of business at such office or
agency on the related proposed date for payment of interest or Defaulted
Interest, as the case may be, interest shall not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of
such Registered Security, but shall be payable on such Interest Payment Date or
proposed date for payment, as the case may be, only to the Person to whom
interest in respect of such portion of such Global Security is payable in
accordance with the provisions of this Indenture.

 

Section 3.6  Mutilated, Destroyed, Lost and Stolen
Securities.  If any
mutilated Security or a Security with a mutilated coupon appertaining to it is
surrendered to the Trustee, the Corporation shall execute and the Trustee shall
authenticate and deliver in exchange therefor a new Security of the same
series, Stated Maturity and original issue date, and of like tenor and
principal amount and bearing a number not contemporaneously outstanding, with
coupons corresponding to the coupons, if any, appertaining to the surrendered
Security.

 

23

 

If there shall
be delivered to the Corporation and the Trustee (1) evidence to their
satisfaction of the destruction, loss or theft of any Security or coupon and (2) 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
Corporation or the Trustee that such Security or coupon has been acquired by a
bona fide purchaser, the Corporation shall execute and upon its Request the
Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security or in exchange for the Security to which a destroyed, lost or
stolen coupon appertains (with all appurtenant coupons not destroyed, lost or stolen),
a new Security of the same series, Stated Maturity and original issue date, and
of like tenor and principal amount and bearing a number not contemporaneously
outstanding, with coupons corresponding to the coupons, if any, appertaining to
such destroyed, lost or stolen Security or to the Security to which such
destroyed, lost or stolen coupon appertains.

 

In case any
such mutilated, destroyed, lost or stolen Security or coupon has become or is
about to become due and payable, the Corporation in its discretion may, instead
of issuing a new Security, pay such Security or coupon; provided, that payment of principal of
(and premium, if any) and any interest on Bearer Securities shall, except as
otherwise provided in Section 10.2, be payable only at an office or agency
located outside the United States; and provided
further, that with respect to any such coupons, interest represented
thereby (but not any additional amounts payable as provided in Section 10.6),
shall be payable only upon presentation and surrender of the coupons
appertaining thereto.

 

Upon the
issuance of any new Security under this Section, the Corporation 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, with its coupons, if any, issued pursuant to this Section
in lieu of any mutilated, destroyed, lost or stolen Security, or in exchange
for a Security to which a destroyed, lost or stolen coupon appertains, shall
constitute an original additional contractual obligation of the Corporation,
whether or not the mutilated, destroyed, lost or stolen Security and its
coupons, if any, or the mutilated, destroyed, lost or stolen coupon shall be at
any time enforceable by anyone, and any such new Security and coupons, if any,
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series and their
coupons, if any, 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 or coupons.

 

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

 

24

 

after the close of business (at an office or agency in
a Place of Payment for such series) on any Regular Record Date and before the
opening of business (at such office or agency) on the next succeeding Interest
Payment Date, such Bearer Security shall be surrendered without the coupon
relating to such Interest Payment Date and interest shall not be payable on
such Interest Payment Date in respect of the Registered Security issued in
exchange for such Bearer Security, but shall be payable only to the Holder of
such coupon when due in accordance with the provisions of this Indenture.

 

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

 

(a)           The Corporation may elect to make
payment of any Defaulted Interest to the Persons in whose names the Registered
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following manner.  The Corporation shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each
Registered Security of such series and the date of the proposed payment, and at
the same time the Corporation shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to
be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as provided in this clause. 
Thereupon the Trustee shall fix a Special Record Date for the payment of
such Defaulted Interest, which shall be not more than 15 days and not less than
10 days prior to the date of the proposed payment and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the
Corporation of such Special Record Date and, in the name and at the expense of
the Corporation, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage
prepaid, to each Holder of Registered Securities of such series at the address
of such Holder as it appears in the Security Register, not less than 10 days
prior to such Special Record Date.  The
Trustee may, in its discretion, in the name and at the expense of the Corporation,
cause a similar notice to be published at least once in an Authorized Newspaper
in each Place of Payment, but such publication shall not be a condition
precedent to the establishment of such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Registered Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on such Special Record Date
and shall no longer be payable pursuant to the following clause (b).  In case a Bearer Security of any series is
surrendered at the office or agency in a Place of Payment for such series in
exchange for a Registered Security of such series after the close of business
at such office or agency on any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the
coupon relating to such proposed date of payment and Defaulted Interest shall
not be payable on such proposed date of payment in respect of the Registered
Security issued in exchange for such Bearer Security, but 

 

25

 

shall be payable only to the Holder of such coupon
when due in accordance with the provisions of this Indenture.

 

(b)           The Corporation may make payment of
any Defaulted Interest on the Securities of any series in any other lawful
manner not inconsistent with the requirements of any securities exchange on
which such Securities may be listed, and upon such notice as may be required by
such exchange, if, after notice given by the Corporation to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee.

 

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

 

Section 3.8  Persons Deemed Owners.  Prior to due presentment of a Registered
Security for registration of transfer, the Corporation, the Trustee and any
agent of the Corporation or the Trustee may deem and treat the Person in whose
name such Registered Security is registered as the absolute owner of such
Registered Security for the purpose of receiving payment of principal of (and
premium, if any) and (subject to Section 3.7) interest, if any, on such
Security and for all other purposes whatsoever, whether or not such Security is
overdue, and neither the Corporation, the Trustee nor any agent of the
Corporation or the Trustee shall be affected by any notice to the contrary.

 

The
Corporation, the Trustee and any agent of the Corporation or the Trustee may
treat the bearer of any Bearer Security and the bearer of any coupon as the
absolute owner of such Security or coupon for the purpose of receiving payment
thereof or on account thereof and for all other purposes whatsoever, whether or
not such Security or coupon is overdue, and neither the Corporation, the
Trustee nor any agent of the Corporation or the Trustee shall be affected by
notice to the contrary.

 

No holder of
any beneficial interest in any Global Security held on its behalf by a
Depositary (or its nominee) shall have any rights under this Indenture with
respect to such Global Security or any Security represented thereby, and such
Depositary may be treated by the Corporation, the Trustee, and any agent of the
Corporation or the Trustee as the owner of such Global Security or any Security
represented thereby for all purposes whatsoever.  None of the Corporation, the Trustee, any
Paying Agent or the Security Registrar shall have any responsibility or
liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Security or for maintaining, supervising
or reviewing any records relating to such beneficial ownership interests.

 

Section 3.9  Cancellation.  All Securities and coupons surrendered for
payment, redemption, registration of transfer or exchange or for credit against
any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly canceled by the
Trustee.  The Corporation may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Corporation may have acquired in any manner
whatsoever, and all Securities so delivered shall 

 

26

 

be promptly canceled by the Trustee.  No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section,
except as expressly permitted by this Indenture.  All canceled Securities and coupons held by
the Trustee shall be destroyed and certification of their destruction delivered
to the Corporation, unless an Order of the Corporation shall direct that
canceled Securities be returned to the Corporation.

 

The repayment
of any principal amount of Securities pursuant to any option of the Holder to
require repayment of Securities before their Stated Maturity, for purposes of
this Section 3.9, shall not operate as a payment, redemption or
satisfaction of the indebtedness represented by such Securities unless and
until the Corporation, at its option, shall deliver or surrender the same to
the Trustee with an Order of the Corporation directing that such Securities be
canceled.

 

Section 3.10  Computation of Interest.  Except as otherwise specified as contemplated
by Section 3.1(d) for Securities of any series, interest on the Securities
of each series shall be computed on the basis of a 360-day year consisting of
twelve 30-day months.

 

Section 3.11  Form of Certification by a Person
Entitled to Receive a Bearer Security.  Whenever any provision of this Indenture or
the form of Security contemplates that certification be given by a Person
entitled to receive a Bearer Security, such certification shall be provided
substantially in the form of the following certificate, with only such changes
as shall be approved by the Corporation and of which the Corporation shall have
given written notice to the Trustee:

 

[Form of
Certificate to Be Given By

Person
Entitled to Receive Bearer Security]

 

Certificate

 

[Name of
Security]

 

This is to
certify that the above-captioned Security is not being acquired by or on behalf
of a United States person, or for offer to resell or for resale to a United
States person, or, if a beneficial interest in the Security is being acquired
by a United States person, that such person is a financial institution or is
acquiring through a financial institution and that the Security is held by a
financial institution that has agreed in writing to comply with the
requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue
Code of 1986, as amended, and the regulations thereunder and that such person
or financial institution is not purchasing for offer to resell or for resale
within the United States.  If this
certificate is being provided by a clearing organization, it is based on
statements provided to it by its member organizations.  As used herein, “United States” means the
United States of America (including the States and the District of Columbia),
its territories and possessions and other areas subject to its jurisdiction,
and “United States person” means any citizen or resident of the United States,
any corporation, partnership or other entity created or organized in or under
the laws of the United States or any political subdivision thereof and any
estate or trust the income of which is subject to United States federal income
taxation regardless of its source.  If
the undersigned is a dealer, the undersigned agrees to obtain a similar
certificate from each person entitled to delivery of any of the above-captioned

 

27

 

Securities in bearer form purchased from it; provided, that if the undersigned has actual knowledge that
the information contained in such a certificate is false, the undersigned shall
not deliver a Security in temporary or definitive bearer form to the person who
signed such certificate notwithstanding the delivery of such certificate to the
undersigned.

 

We undertake
to advise you by telecopy if the above statement as to beneficial ownership is
not correct on the date of delivery of the above-captioned Securities in bearer
form as to all of such Securities.

 

We understand
that this certificate is required in connection with certain tax legislation in
the United States.  If administrative or
legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

 

	
  Dated:
                      ,
  20

  	
   

  

 

Section 3.12  CUSIP, ISIN and Common Code Numbers.  The Corporation in issuing the Securities may
use “CUSIP,” “ISIN” or “Common Code” numbers (if then generally in use) and, if
so, the Trustee shall use “CUSIP” numbers, “ISIN” or “Common Code” in notices
of redemption as a convenience to Holders; provided,
however, that any such notice may
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.

 

ARTICLE FOUR

Satisfaction and Discharge

 

Section 4.1  Satisfaction and Discharge of Indenture.  This Indenture shall upon a Request of the
Corporation cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange or conversion of Securities herein
expressly provided for, and any right to receive additional amounts, as
provided in Section 10.6), and the Trustee, at the expense of the
Corporation, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when:

 

(a)           either

 

(i)            all
Securities theretofore authenticated and delivered and all coupons appertaining
thereto (other than (w) coupons appertaining to Bearer Securities
surrendered for exchange for Registered Securities and maturing after such
exchange, whose surrender is not required or has been waived as provided in Section 3.5,
(x) Securities and coupons which have been destroyed, lost or stolen and
which have been replaced or paid as provided in Section 3.6, (y) coupons
appertaining to Securities called for redemption and maturing after the
relevant Redemption Date, whose surrender has been waived as provided in Section 11.6,
and (z) Securities and coupons for whose payment money has theretofore
been deposited in trust or segregated and held in trust by 

 

28

 

the Corporation and thereafter repaid to the Corporation
or discharged from such trust, as provided in Section 10.3) have been
delivered to the Trustee for cancellation; or

 

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

 

(1)           have become due and payable, or

 

(2)           shall 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 Corporation,

 

and the Corporation, in the case of (ii)(1), (2) or
(3) above, has deposited or caused to be deposited with the Trustee as trust
funds in trust dedicated solely for such purpose an amount sufficient, without
reinvestment, to pay and discharge the entire indebtedness on such Securities
and coupons not theretofore delivered to the Trustee for cancellation, for
principal (and premium, if any) and interest, if any, to the date of such
deposit (in the case of Securities which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be;

 

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

 

(c)           the Corporation has delivered to the
Trustee an Officers’ Certificate of the Corporation 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.

 

In the event
there are Securities of two or more series hereunder, the Trustee shall be
required to execute an instrument acknowledging satisfaction and discharge of
this Indenture only if requested to do so with respect to Securities of all
series as to which it is Trustee and if the other conditions thereto are
met.  In the event there are two or more
Trustees hereunder, then the effectiveness of any such instrument shall be
conditioned upon receipt of such instruments from all Trustees hereunder.

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Corporation to the Trustee under Section 6.7, the obligations of the
Trustee to any Authenticating Agent under Section 6.14 and, if money shall
have been deposited with the Trustee pursuant to subclause (ii) of clause (a) of
this Section, the obligations of the Trustee under Sections 3.5, 3.6, 4.2, 10.2
and 10.3 shall survive.

 

Section 4.2  Application of Trust Money.  Subject to the provision of the last
paragraph of Section 10.3, all money deposited with the Trustee pursuant
to Section 4.1 shall be held in trust and applied by it, in accordance
with the provisions of the Securities, the coupons and this Indenture, to the
payment, either directly or through any Paying Agent (including the Corporation
acting as its own Paying Agent) as the Trustee may determine, to the Persons 

 

29

 

entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the
Trustee, but such money need not be segregated from other funds, except to the
extent required by law.

 

ARTICLE FIVE

 

Remedies

 

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

 

(a)           the Corporation defaults in the
payment of any interest (including any additional amounts due under Section 10.6
as specified therein) upon any Security of that series when it becomes due and
payable and continuance of such default for a period of 30 days; or

 

(b)           the Corporation defaults in the
payment of the principal (including any additional amounts due under Section 10.6
as specified therein) of (or premium, if any, on) any Security of that series
at its Maturity; or

 

(c)           the Corporation defaults in the
deposit of any sinking fund payment when and as due by the terms of a Security
of that series; or

 

(d)           the Corporation defaults in the
performance or breach of any covenant or warranty of the Corporation in this
Indenture (other than a covenant or warranty a default in whose performance or
whose breach is elsewhere in this Section specifically dealt with or which has
expressly been included in or pursuant to this Indenture solely for the benefit
of one or more series of Securities other than that series), and continuance of
such default or breach for a period of 60 days after there has been given, by
registered or certified mail, to the Corporation by the Trustee, or to the
Corporation 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 entry by a court having
jurisdiction in the premises of (i) a decree or order for relief in
respect of the Corporation in an involuntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization or other
similar law or (ii) a decree or order adjudging the Corporation bankrupt
or insolvent, or approving as properly filed a petition by one or more Persons
other than the Corporation or any Affiliates thereof seeking reorganization,
arrangement, adjustment or composition of or in respect of the Corporation
under any applicable federal or state law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official for the
Corporation or for any substantial part of the property of the Corporation, or
ordering the liquidation or winding up of the affairs of the Corporation, and
the continuance of any such decree or order for relief or any such other decree
or order unstayed and in effect for a period of 90 consecutive days; or

 

30

 

(f)            the commencement by the Corporation
of a case or proceeding under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law or of any other case or
proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to
the entry of a decree or order for relief in respect of it in a case or
proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against it, or the filing by it of a petition or
answer or consent seeking reorganization or relief under any applicable federal
or state law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official in respect of it or any
substantial part of its property, or the making by it of an assignment for the
benefit of creditors, or its admission in writing of its inability to pay its
debts generally as they become due, or its taking of corporate action in
furtherance of any such action; or

 

(g)           any other Event of Default provided
with respect to Securities of that series.

 

Section 5.2  Acceleration of Maturity; Rescission and Annulment.  If an Event of Default with respect to
Securities of any series at the time Outstanding occurs and is continuing, then
in every such case the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Securities of that series may declare the principal
amount (or, if the Securities of that series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of that series) of all of the Securities of that series to be due and
payable immediately, by a notice in writing to the Corporation (and to the
Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable.

 

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

 

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

 

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

 

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

 

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

 

(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 any other amounts due to
the Trustee under Section 6.7;

 

31

 

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 has become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 5.13.

 

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

 

Section 5.3  Collection of Indebtedness and Suits for
Enforcement by Trustee. 
The Corporation 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 the
principal of (or premium, if any, on) any Security at the Maturity thereof and
such default continues for a period of three Business Days,

 

the
Corporation shall, upon demand of the Trustee, pay to it, for the benefit of
the Holders of such Securities and coupons, the whole amount then due and
payable on such Securities and coupons for principal (and premium, if any) and
interest, if any, with interest on any overdue principal (and premium, if any)
and on any overdue interest, to the extent that payment of such interest shall
be legally enforceable, 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,
and any other amounts due to the Trustee under Section 6.7.

 

If the
Corporation 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
Corporation or any other obligor upon such Securities and collect the moneys
adjudged or decreed to be payable in the manner provided by law out of the
property of the Corporation or any other obligor upon such Securities, wherever
situated.

 

If an Event of
Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the
rights of the Holders of Securities of such series and any related coupons 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 5.4  Trustee May File Proofs of Claim.  In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Corporation or any
other obligor upon the Securities or the property of the Corporation or of such
other obligor or their creditors, the 

 

32

 

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 Corporation or any other obligor 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 premium, if any) and interest owing and unpaid
in respect of the Securities and to file such other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due to the
Trustee under Section 6.7) and of the Holders of Securities and coupons
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 of Securities and coupons 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 of Securities and coupons, to pay to the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.7.

 

Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder of a Security or coupon any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or coupons or the rights of any Holder thereof or to authorize the Trustee to
vote in respect of the claim of any Holder of a Security or coupon in any such
proceeding.

 

Section 5.5  Trustee May Enforce Claims Without Possession
of Securities or Coupons. 
All rights of action and claims under this Indenture or the Securities
or coupons may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or coupons 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 and coupons in respect
of which such judgment has been recovered.

 

Section 5.6  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 premium, if any) or interest, if any, upon presentation of the
Securities or coupons, or both, as the case may be, and the notation thereon of
the payment if only partially paid and upon surrender thereof if fully paid:

 

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

 

33

 

SECOND: 
To the payment of the amounts then due and unpaid for principal of (and
premium, if any) and interest, if any, on the Securities and coupons 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 and coupons for principal (and premium, if any) and
interest, respectively; and

 

THIRD: 
To the Corporation.

 

Section 5.7  Limitation on Suits.  No Holder of any Security of any series or
any related coupons 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 a
majority 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 of such Holders.

 

Section 5.8  Unconditional Right of Holders to Receive
Principal, Premium and Interest.  Notwithstanding any
other provision in this Indenture, the Holder of any Security or coupon shall
have the right, which is absolute and unconditional, to receive payment of the
principal of (and premium, if any) and (subject to Section 3.7) interest,
if any, on such Security or payment of such coupon on the Stated Maturity or
Maturities expressed in such Security or coupon (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 5.9  Restoration of Rights and Remedies.  If the Trustee or any Holder of a Security or
coupon 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 

 

34

 

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

 

Section 5.11  Delay or Omission Not Waiver.  No delay or omission of the Trustee or of any
Holder of any Security or coupon 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 of Securities or coupons may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders of Securities or coupons, as the case may be.

 

Section 5.12  Control by Holders of Securities.  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, expose the Trustee to
personal liability or be unduly prejudicial to Holders not joined therein; and

 

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

 

Section 5.13  Waiver of Past Defaults.  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 and any related coupons waive
any past default hereunder with respect to such series and its consequences,
except a default:

 

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

 

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

 

35

 

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 5.14  Undertaking for Costs.  All parties to this Indenture agree, and each
Holder of any Security or coupon by such Holder’s 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 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 of any Security or coupon for the enforcement of the
payment of the principal of (or premium, if any) or interest, if any, on any
Security or the payment of any coupon on or after the Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date).

 

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

 

ARTICLE SIX

 

The Trustee

 

Section 6.1 
Certain Duties and Responsibilities.

 

(a)           Except during the continuance of an
Event of Default with respect to Securities of any series:

 

(i)            the Trustee undertakes to perform,
with respect to Securities of such series, such duties and only such duties as
are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

 

(ii)           in the absence of bad faith on its
part, the Trustee may, with respect to Securities of such series, conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this 

 

36

 

Indenture; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Indenture.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 6.2  Notice of Defaults.  Within 90 days after the occurrence of any
default hereunder with respect to the Securities of any series, the Trustee
shall transmit, in the manner and to the extent provided in Section 313(c)
of the Trust Indenture Act, notice of all such defaults hereunder known to the
Trustee, unless such default shall have been cured or waived; provided, that except in the case of a
default in the payment of the principal of (or premium, if any) or interest, if
any, on any Security of such series or in the payment of any sinking fund
installment with respect to Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a committee of directors or Responsible Officers of
the Trustee in good faith determine that the withholding of 

 

37

 

such notice is in the interest of the Holders of
Securities of such series; and provided
further, that in the case of any default of the character specified
in Section 5.1(d) with respect to Securities of such series, no such notice
to Holders shall be given until at least 30 days after the occurrence
thereof.  For the purpose of this
Section, the term “default” means any event which is, or after notice or lapse
of time or both would become, an Event of Default with respect to Securities of
such series.

 

Section 6.3  Certain Rights of Trustee.  Subject to Sections 315(a) through 315(d) of
the Trust Indenture Act:

 

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

 

(b)           any request or direction of the
Corporation mentioned herein shall be sufficiently evidenced by a Request or
Order and any resolution of the Board of Directors of the Corporation shall be
sufficiently evidenced by a Board Resolution;

 

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

 

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

 

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

 

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

 

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

 

38

 

(h)           the Trustee shall not be charged with
knowledge of any Event of Default with respect to the Securities of any series
for which it is acting as Trustee unless either (i) a Responsible Officer
of the Trustee assigned to its Corporate Trust Services unit (or any successor
division or department of the Trustee) shall have actual knowledge of the Event
of Default or (ii) written notice of such Event of Default shall have been
given to the Trustee by the Corporation, any other obligor on such Securities
or by any Holder of such Securities.

 

Section 6.4  Not Responsible for Recitals or Issuance of
Securities.  The
recitals contained herein and in the Securities (except the Trustee’s
certificates of authentication) and in any coupons shall be taken as the statements
of the Corporation, and the Trustee or any Authenticating Agent assumes no
responsibility for their correctness. 
The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Securities or coupons, except that the Trustee
represents that it is duly authorized to execute and deliver this Indenture,
authenticate the Securities and perform its obligations hereunder and that the
statements made by it in a Statement of Eligibility on Form T-1 supplied
to the Corporation are true and accurate, subject to the qualifications set
forth therein.  The Trustee or any
Authenticating Agent shall not be accountable for the use or application by the
Corporation of Securities or the proceeds thereof.

 

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

 

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

 

Section 6.7  Compensation and Reimbursement. 
The Corporation agrees:

 

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

 

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

 

(c)           to indemnify, defend and hold
harmless the Trustee and its directors, employees, Affiliates and agents (“indemnitees”)
for, and to hold them harmless against, any loss, liability or expense
(including the fees and expenses of counsel) arising out of or incurred in
connection with (i) the acceptance or administration of the trust or
trusts hereunder, except to the 

 

39

 

extent with respect to
any indemnitee that such loss, liability or expense was due to such indemnitee’s
negligence, willful misconduct or bad faith, and (ii) any action taken,
suffered or omitted upon the Order of the Corporation.

 

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

 

Section 6.8  Disqualification; Conflicting Interests.  If at any time the Trustee fails to comply
with the obligations imposed upon it by the provisions of Section 310(b) of
the Trust Indenture Act with respect to Securities of any series after written
request therefor by the Corporation or by any Holder of a Security of such
series who has been a bona fide Holder of a Security of such series for at
least six months then, (1) the Corporation, by or pursuant to a Board
Resolution, may remove the Trustee with respect to all Securities or the
Securities of such series, or (2) subject to Section 315(e) of the
Trust Indenture Act, any Holder who has been a bona fide Holder of a Security
of such series for at least six months may, on behalf of such Holder and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities of such series and the
appointment of a successor Trustee or Trustees. 
The Trustee shall comply with the terms of Section 310(b) of the
Trust Indenture Act.

 

Section 6.9  Corporate Trustee Required; Eligibility.  There shall at all times be a Trustee
hereunder that is a Person organized and doing business under the laws of the
United States of America, any state thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers, or any other
Person permitted by the Trust Indenture Act to act as trustee under an
indenture qualified under the Trust Indenture Act and that has a combined
capital and surplus (computed in accordance with Section 310(a)(2) of the
Trust Indenture Act) of at least $50,000,000, is subject to supervision or
examination by federal, state or District of Columbia authority and is not
otherwise ineligible under Section 310(a)(5) of the Trust Indenture
Act.  If such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Person shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so
published.  If at any time the Trustee
ceases to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter
specified in this Article.

 

Section 6.10  Resignation and Removal; Appointment of
Successor.

 

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

 

(b)           The Trustee may resign at any time
with respect to the Securities of one or more series by giving written notice
thereof to the Corporation.  If the
instrument of acceptance 

 

40

 

by a successor Trustee required by Section 6.11
is not delivered to the Trustee within 30 days after the giving of such notice
of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

 

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

 

(d)          If at any time:

 

(1)           the
Trustee fails to comply with Section 6.8 after written request therefor by
the Corporation or by any Holder of a Security who has been a bona fide Holder
of a Security for at least six months; or

 

(2)           the
Trustee ceases to be eligible under Section 6.9 and fails to resign after
written request therefor by the Corporation or by any such Holder; or

 

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

 

then, in any
such case, (i) the Corporation by Board Resolution may remove the Trustee
with respect to all Securities, or (ii) subject to Section 315(e) of
the Trust Indenture Act, any Holder of a Security who has been a bona fide
Holder of a Security for at least six months may, on behalf of such Holder and
all other similarly situated Holders, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities and
the appointment of a successor Trustee or Trustees.

 

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

 

41

 

may, on behalf of such Holder and all others similarly
situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

 

(f)            The Corporation shall give notice of
each resignation and each removal of the Trustee with respect to the Securities
of any series and each appointment of a successor Trustee with respect to the
Securities of any series by mailing written notice of such event by first-class
mail, postage prepaid, to all Holders of Registered Securities, if any, of such
series as their names and addresses appear in the Security Register and, if
Securities of such series are issuable as Bearer Securities, by publishing
notice of such event once in an Authorized Newspaper in each Place of Payment
located outside the United States.  Each
notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

 

Section 6.11  Acceptance of Appointment by Successor.

 

(a)           In case of the appointment hereunder
of a successor Trustee with respect to all Securities, every such successor
Trustee so appointed shall execute, acknowledge and deliver to the Corporation
and to the retiring Trustee an instrument accepting such appointment.  Thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further
act, deed or conveyance shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee; but, on the request of the Corporation or
the successor Trustee, such retiring Trustee shall, upon payment of its
charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder; provided,
that such property and money shall continue to be subject to any lien in favor
of the retiring Trustee provided for in Section 6.7.

 

(b)           In case of the appointment hereunder
of a successor Trustee with respect to the Securities of one or more (but not
all) series, the Corporation, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver
an indenture supplemental hereto wherein each successor Trustee shall accept
such appointment and which (1) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee
is not retiring with respect to all Securities, shall contain such provisions
as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided 

 

42

 

therein and each such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates; but, on request of the Corporation or any successor Trustee,
such retiring Trustee shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder, subject
nevertheless to its lien provided for in Section 6.7, with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates.

 

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

 

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

 

Section 6.12  Merger, Conversion, Consolidation or
Succession to Business. 
Any Person into which the Trustee may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
Person succeeding to all or substantially all the corporate trust business of
the Trustee, shall be the successor of the Trustee hereunder, if such Person is
otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto.  In case any Securities shall
have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with
the same effect as if such successor Trustee had itself authenticated such
Securities.

 

Section 6.13  Preferential Collection of Claims Against
Corporation.  If
and when the Trustee is or becomes a creditor of the Corporation (or any other
obligor upon the Securities), the Trustee shall be subject to the provisions of
Section 311 and any other provision of the Trust Indenture Act regarding
the collection of claims against the Corporation (or any such other obligor),
as the case may be.

 

Section 6.14  Appointment of Authenticating Agent.  At any time when any of the Securities remain
Outstanding, the Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on
behalf of the Trustee to authenticate Securities of such series issued upon
exchange, registration of transfer or partial redemption thereof or pursuant to
Section 3.6, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes
as if authenticated by the Trustee hereunder. 
Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating
Agent.  Each Authenticating Agent shall
be acceptable to the Corporation and shall at all times be a corporation
organized and doing business under the laws 

 

43

 

of the United States of America, any state thereof or
the District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus (computed in accordance with Section 310(a)(2)
of the Trust Indenture Act) of not less than $50,000,000 and subject to
supervision or examination by federal, state or District of Columbia
authority.  If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such corporation shall be deemed
to be its combined capital and surplus as set forth in its most recent report
of condition so published.  If at any
time an Authenticating Agent ceases to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

 

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

 

An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Corporation.  The
Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the
Corporation.  Upon receiving such a
notice of resignation or upon such termination, or in case at any time such
Authenticating Agent ceases to be eligible in accordance with the provisions of
this Section, the Trustee may appoint a successor Authenticating Agent which
shall be acceptable to the Corporation and shall (1) mail written notice
of such appointment by first-class mail, postage prepaid, to all Holders of
Registered Securities, if any, of the series with respect to which such
Authenticating Agent shall serve, as their names and addresses appear in the
Security Register, and (2) if Securities of the series are issuable as
Bearer Securities, publish notice of such appointment at least once in an
Authorized Newspaper in the place where such successor Authenticating Agent has
its principal office if such office is located outside the United States.  Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. 
No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

 

The provisions
of Sections 3.8, 6.4 and 6.5 shall be applicable to each Authenticating Agent.

 

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

 

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

 

44

 

	
   

  	
  U.S. Bank National Association

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  As
  Authenticating Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Authorized
  Signatory

  

 

ARTICLE SEVEN

Holders’ Lists and Reports by Trustee and Corporation

 

Section 7.1  Corporation to Furnish Trustee Names and
Addresses of Holders. 
In accordance with Section 312(a) of the Trust Indenture Act, the
Corporation shall furnish or cause to be furnished to the Trustee:

 

(a)           semi-annually, not later than June 1
and December 1, in each year, a list, in such form as the Trustee may
reasonably require, containing all the information in the possession or control
of the Corporation, or any of its Paying Agents other than the Trustee, as to
the names and addresses of the Holders of Securities as of the preceding May 15
or November 15, as the case may be, and

 

(b)           at such other times as the Trustee
may request in writing, within 30 days after the receipt by the Corporation of
any such request, a list of similar form and content as of a date not more than
15 days prior to the time such list is furnished;

 

provided, that no such list need be furnished
if the Trustee is the Security Registrar.

 

Section 7.2 
Preservation of Information; Communications to Holders.

 

(a)           The Trustee shall comply with the
obligations imposed upon it pursuant to Section 312 of the Trust Indenture
Act.

 

(b)           Every Holder of Securities or
coupons, by receiving and holding the same, agrees with the Corporation and the
Trustee that neither the Corporation nor the Trustee nor any agent of any of
them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders of Securities in
accordance with Section 312 of the Trust Indenture Act, regardless of the
source from which such information was derived, and that the Trustee shall not
be held accountable by reason of mailing any material pursuant to a request
made under Section 312 of the Trust Indenture Act.

 

Section 7.3 
Reports by Trustee.

 

(a)           Within 60 days after May 15 of
each year commencing with the first May 15 following the first issuance of
Securities pursuant to Section 3.1, if required by Section 313(a) of
the Trust Indenture Act, the Trustee shall transmit, pursuant to Section 313(c)
of the Trust 

 

45

 

Indenture Act, a brief report dated as of such May 15
with respect to any of the events specified in said Section 313(a) which
may have occurred since the later of the immediately preceding May 15 and
the date of this Indenture.

 

(b)           The Trustee shall transmit the
reports required by Section 313(b) of the Trust Indenture Act at the times
specified therein.

 

(c)           Reports pursuant to this Section shall
be transmitted in the manner and to the Persons required by Sections 313(c)
and 313(d) of the Trust Indenture Act.

 

Section 7.4  Reports by Corporation.  The Corporation, pursuant to Section 314(a)
of the Trust Indenture Act, shall:

 

(a)           file with the Trustee, within 15 days
after the Corporation is required to file the same with the Commission, 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 Commission may from time
to time by rules and regulations prescribe) which the Corporation may be
required to file with the Commission pursuant to Section 13 or Section 15(d)
of the Securities Exchange Act of 1934, as amended; or, if the Corporation is
not required to file information, documents or reports pursuant to either of
said sections, then it shall file with the Trustee and the Commission, in
accordance with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents and
reports which may be required pursuant to Section 13 of the Securities
Exchange Act of 1934, as amended, in respect of a security listed and
registered on a national securities exchange as may be prescribed from time to
time in such rules and regulations;

 

(b)           file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time to
time by the Commission, such additional information, documents and reports with
respect to compliance by the Corporation with the conditions and covenants of
this Indenture as may be required from time to time by such rules and
regulations; and

 

(c)           transmit, within 30 days after the
filing thereof with the Trustee, to the Holders of Securities, in the manner
and to the extent provided in Section 313(c) of the Trust Indenture Act,
such summaries of any information, documents and reports required to be filed
by the Corporation pursuant to paragraphs (a) and (b) of this Section as
may be required by rules and regulations prescribed from time to time by the
Commission.

 

ARTICLE EIGHT

Consolidation, Merger, Conveyance, Transfer or Lease

 

Section 8.1  Corporation May Consolidate, Etc., Only on
Certain Terms.  The
Corporation shall not consolidate with or merge into any other Person or
convey, transfer or lease its properties and assets substantially as an
entirety to any Person, unless:

 

(a)           the Person formed by any such
consolidation or into which it is merged or the Person which acquires by
conveyance or transfer, or which leases, its properties and assets 

 

46

 

substantially as an entirety shall be organized and
existing under the laws of the United States of America, any state thereof or
the District of Columbia and shall expressly assume the due and punctual
payment of the principal of (and premium, if any) and interest, if any, on all
the Securities and the performance of every covenant of this Indenture to be
performed or observed on the part of the Corporation;

 

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

 

(c)           the Corporation has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, conveyance, transfer or lease complies with this Section 8.1
and that all conditions precedent herein provided for relating to such
transaction have been complied with.

 

Section 8.2  Successor Corporation Substituted.  Upon any consolidation by the Corporation
with or merger by the Corporation into any other Person or any conveyance,
transfer or lease of the Corporation’s properties and assets substantially as
an entirety in accordance with Section 8.1, the successor formed by such
consolidation or into which it is merged or to which such conveyance, transfer
or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Corporation under this Indenture with the same
effect as if such successor had been named as the Corporation herein, and
thereafter, except in the case of a lease, the predecessor shall be relieved of
all obligations and covenants under this Indenture and the Securities.

 

ARTICLE NINE

Supplemental Indentures

 

Section 9.1  Supplemental Indentures without Consent of Holders.  Without the consent of any Holders of
Securities or coupons, the Corporation, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any
one or more of the following purposes only:

 

(a)           to evidence the succession of another
corporation to the Corporation and the assumption by any such successor of the
covenants of the Corporation herein and in the Securities and coupons; or

 

(b)           to add to the covenants of the
Corporation for the benefit of the Holders of all or any series of Securities
(and if such covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred
upon the Corporation; or

 

(c)           to add any additional Events of
Default; or

 

(d)           to add to or change any of the
provisions of this Indenture to provide that Bearer Securities may be
registrable as to principal, to change or eliminate any restrictions on the 

 

47

 

payment of principal (or premium, if any) on
Registered Securities or of principal (or premium, if any) or any interest on
Bearer Securities, to permit Registered Securities to be exchanged for Bearer
Securities or to permit the issuance of Securities in uncertificated form; provided, that any such action shall not
adversely affect the interests of the Holders of Securities of any series or
any related coupons in any material respect; or

 

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

 

(f)            to secure the Securities; or

 

(g)           to establish the form or terms of
Securities of any series and any related coupons as permitted by Sections 2.1
and 3.1; or

 

(h)           to evidence and provide for the
acceptance of appointment hereunder by a successor Trustee with respect to the
Securities of one or more series, to contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and
duties of the predecessor Trustee with respect to the Securities of any series
as to which the predecessor Trustee is not retiring shall continue to be vested
in the predecessor Trustee, and to add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to
the requirements of Section 6.11(b); or

 

(i)            to cure any ambiguity, to correct or
supplement any provision herein which may be defective or inconsistent with any
other provision herein, or to make any other provisions with respect to matters
or questions arising under this Indenture; provided,
that such change shall not be inconsistent with the provisions of this
Indenture and shall not adversely affect the interests of the Holders of
Securities of any series or any related coupons in any material respect; or

 

(j)            to conform this Indenture to any
amendments to the Trust Indenture Act.

 

Section 9.2  Supplemental Indentures with Consent of
Holders.  With the
consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture,
by Act of said Holders delivered to the Corporation and the Trustee, the
Corporation, when authorized by a Board Resolution, and the Trustee may enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or modifying in any manner the rights of the
Holders of Securities of such series and any related coupons under this
Indenture; provided, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Security or coupon affected thereby:

 

(a)           change the Stated Maturity of the
principal of, or of any installment of principal of or interest on, any
Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or change the
method of 

 

48

 

calculating the rate of interest thereon, or change
any obligation of the Corporation to pay additional amounts pursuant to Section 10.6
(except as contemplated by Section 8.1(a) and permitted by Section 9.1(a)),
or reduce the amount of the principal of an Original Issue Discount Security
that would be due and payable upon a declaration of acceleration of the Maturity
thereof pursuant to Section 5.2, or change any Place of Payment in the
United States where, or the currency in which, any Security or any premium or
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date);

 

(b)           reduce the percentage in principal
amount of the Outstanding Securities of any series, the consent of whose
Holders is required for any such supplemental indenture, or the consent of
whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and  their consequences) provided for in this Indenture, or reduce
the requirements of Section 13.4 for quorum or voting;

 

(c)           change any obligation of the
Corporation to maintain an office or agency in each Place of Payment, or any
obligation of the Corporation to maintain an office or agency outside the
United States pursuant to Section 10.2;

 

(d)           modify any of the provisions of this
Section, Section 5.13 or Section 10.5, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby; provided,
that this clause shall not be deemed to require the consent of any Holder of a
Security or coupon with respect to changes in the references to “the Trustee”
and concomitant changes in this Section and Section 10.4, or the deletion
of this proviso, in accordance with the requirements of Sections 6.11(b) and
9.1(h).

 

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

 

It shall not
be necessary for any Act of Holders of Securities under this Section to approve
the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.

 

The
Corporation shall have the right to set a record date for the solicitation of
any consents under this Article Nine, which record date shall be set in
accordance with Section 1.4.

 

Section 9.3  Execution of Supplemental Indentures.  In executing, or accepting the additional
trusts created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 315 of the Trust
Indenture Act) shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture.  The Trustee
may, but shall not be obligated to, enter 

 

49

 

into any such supplemental indenture which affects the
Trustee’s own rights, duties, immunities or liabilities under this Indenture or
otherwise.

 

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

 

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

 

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

 

ARTICLE TEN

 

Covenants

 

Section 10.1  Payment of Principal, Premium and
Interest.  The
Corporation covenants and agrees for the benefit of each series of Securities
that it shall duly and punctually pay the principal of (and premium, if any)
and interest (including any Additional Interest), if any, on the Securities of
that series in accordance with the terms of such Securities and this Indenture.

 

Section 10.2  Maintenance of Office or Agency.  The Corporation shall
maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for
payment, where Securities of that series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Corporation
in respect of the Securities of that series and this Indenture may be
served.  The Corporation initially
appoints the Trustee, acting through its Corporate Trust Office, as its agent
for said purposes.  The Corporation shall
give prompt written notice to the Trustee of any change in the location of any
such office or agency.  If at any time
the Corporation fails to maintain such office or agency or fails to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and
the Corporation hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

 

The
Corporation may also from time to time designate one or more other offices or
agencies where the Securities may be presented or surrendered for any or all of
such purposes, and may from time to time rescind such designations; provided,  however,
that no such

 

50

 

designation or rescission shall in any manner relieve the Corporation
of its obligation to maintain an office or agency in each Place of Payment for
Securities of any series for such purposes. The Corporation shall give prompt
written notice to the Trustee of any such designation and any change in the
location of any such office or agency.

 

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

 

Whenever the
Corporation shall have one or more Paying Agents, it shall, prior to 10:00 a.m.,
New York City time, on each due date of the principal of (or premium, if any)
or interest (including any Additional Interest), if any, on any Securities,
deposit with a Paying Agent a sum sufficient to pay the principal (and premium,
if any) or interest (including any Additional Interest), if any, so becoming
due, such sum to be held in trust for the benefit of the Persons entitled to
such principal (and premium, if any) or interest (including any Additional
Interest), if any, and if the Corporation fails to make such deposit (unless
such Paying Agent is the Trustee) the Corporation shall promptly notify the
Trustee of its failure so to act.

 

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

 

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

 

(b)           give the Trustee notice of any
default by the Corporation (or any other obligor upon such Securities) in the
making of any payment of principal (and premium, if any) or interest (including
any Additional Interest), if any, in respect of any Security of any series;

 

(c)           at any time during the continuance of
any default with respect to a series of Securities, upon the written request of
the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent with respect to such series; and

 

(d)           comply with the provisions of the
Trust Indenture Act applicable to it as a Paying Agent.

 

The
Corporation may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by an Order of
the Corporation direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Corporation or such Paying Agent, such sums to be held by the
Trustee upon the same trusts as those upon which such sums were held by the
Corporation or such Paying Agent; and, upon such payment by any 

 

51

 

Paying Agent to the Trustee, such paying Agent shall be released from
all further liability with respect to such money.

 

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

 

Section 10.4  Statement as to Compliance.  The Corporation shall
deliver to the Trustee, within 120 days after the end of each fiscal year of
the Corporation ending after the date hereof, an Officers’ Certificate covering
the preceding calendar year, stating whether or not to the best knowledge of
the signers thereof the Corporation is in default in the performance,
observance or fulfillment of or compliance with any of the terms, provisions,
covenants and conditions of this Indenture, and if the Corporation is in
default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.  For the
purpose of this Section 10.4, compliance shall be determined without
regard to any grace period or requirement of notice provided pursuant to the
terms of this Indenture.

 

Section 10.5  Waiver of Certain Covenants.  The Corporation may omit in any particular
instance to comply with any covenant or condition provided pursuant to Section 3.1,
9.1(b) or 9.1(g) with respect to the Securities of any series, if before or
after the time for such compliance the Holders of at least a majority in
aggregate principal amount of the Outstanding Securities of such series shall,
by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such covenant or condition, but no such waiver
shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of the Corporation in respect of any such covenant or condition
shall remain in full force and effect.

 

Section 10.6  Additional Sums.  If the Securities of a series provide for the
payment of additional amounts, the Corporation shall pay to the Holder of any
Security of any series or any coupon appertaining hereto additional amounts
upon the terms and subject to the conditions provided therein.  Whenever in this Indenture there is
mentioned, in any contexts, the payment of the principal of (or premium, if
any) or interest, if any, on, or in respect of, any 

 

52

 

Security of any series or any related coupon or the net
proceeds received on the sale or exchange of any Security of any series, such
mention shall be deemed to include mention of the payment of additional amounts
provided for in the terms of such Securities and this Section to the extent
that, in such context, additional amounts are, were or would be payable in
respect thereof pursuant to the provisions of this Section, and express mention
of the payment of any additional amounts (if applicable) in any provisions
hereof shall not be construed as excluding additional amounts in those
provisions hereof where express mention is not made.

 

If the
Securities of a series provide for the payment of additional amounts, at least
10 days prior to the first Interest Payment Date with respect to that series of
Securities (or if the Securities of that series shall not bear interest prior
to Maturity, the first day on which a payment of principal (and premium, if
any) is made), and at least 10 days prior to each date of payment of principal
(and premium, if any) or interest if there has been any change with respect to
the matters set forth in the above-mentioned Officers’ Certificate, the
Corporation shall furnish to the Trustee and the Corporation’s principal Paying
Agent or Paying Agents, if other than the Trustee, an Order instructing the
Trustee and such Paying Agent or Paying Agents whether such payment of
principal of (and premium, if any) or interest on the Securities of that series
shall be made to Holders of Securities of that series or the related coupons
who are United States Aliens without withholding for or on account of any tax,
assessment or other governmental charge described in the Securities of that
series.  If any such withholding shall be
required, then such Order shall specify by country the amount, if any, required
to be withheld on such payments to such Holders of Securities or coupons, and
the Corporation shall pay to the Trustee or such Paying Agent the additional
amounts, if any, required by the terms of such Securities and the first
paragraph of this Section.  The
Corporation shall indemnify, defend and hold harmless the Trustee and any
Paying Agent and any director, employee, Affiliate or agent of either (a “Section 10.6 Indemnitee”) against any
loss, liability or expense, including without limitation any penalties and the
fees and expenses of counsel, arising out of or in connection with actions
taken or omitted in reliance on any Order furnished pursuant to this Section,
except to the extent with respect to any Section 10.6 Indemnitee any loss,
liability or expense is due to the negligence, willful misconduct or bad faith
of such Section 10.6 Indemnitee.

 

Section 10.7  Original Issue Discount.  For each year during which any Original Issue
Discount Securities are Outstanding, the Corporation shall furnish to each
Paying Agent in a timely fashion such information as may be reasonably
requested by each Paying Agent in order that each Paying Agent may prepare the
information which it is required to report for such year on Internal Revenue
Service Forms 1096 and 1099 pursuant to Section 6049 of the Internal
Revenue Code of 1986, as amended. Such information shall include the amount of
original issue discount includible in income for each $1,000 of principal
amount at Stated Maturity of outstanding Securities during such year.

 

ARTICLE ELEVEN

Redemption of Securities

 

Section 11.1  Applicability of Article.  Securities of any series that are redeemable
before their Stated Maturity shall be redeemable in accordance with their terms
and (except as 

 

53

 

otherwise specified as contemplated by Section 3.1
for Securities of any series) in accordance with this Article.

 

Section 11.2  Election to Redeem; Notice to Trustee.  The election of the Corporation to redeem any
Securities shall be evidenced by a Board Resolution.  In case of any redemption at the election of
the Corporation of all of the Securities of any series, the Corporation shall,
at least 60 days prior to the Redemption Date fixed by the Corporation (unless
a shorter notice shall be satisfactory to the Trustee), notify the Trustee in
writing of such Redemption Date.  In case
of any redemption at the election of the Corporation of less than all the
Securities of any series, the Corporation shall, at least 60 days prior to the
Redemption Date fixed by the Corporation (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee in writing of such Redemption
Date and of the principal amount of Securities of such series to be redeemed.  In the case of any redemption of Securities (1) prior
to the expiration of any restriction on such redemption provided in the terms
of such Securities or elsewhere in this Indenture, or (2) pursuant to an
election of the Corporation which is subject to a condition specified in the
terms of such Securities, the Corporation shall furnish the Trustee with an
Officers’ Certificate evidencing compliance with such restriction or condition.

 

Section 11.3  Selection by Trustee of Securities to be
Redeemed.  If less
than all the Securities of any series are to be redeemed, the particular
Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee from the Outstanding Securities of such series
(other than Securities of such series held by the Corporation), not previously
called for redemption, by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of portions
(equal to the minimum authorized denomination for Securities of that series or
any integral multiple thereof) of the principal amount of Securities of such
series of a denomination larger than the minimum authorized denomination for
Securities of that series.  Unless otherwise
provided in the Securities of a series, partial redemptions must be in an
amount not less than $1,000,000 principal amount of Securities.

 

The Trustee
shall promptly notify the Corporation in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption,
the principal amount thereof to be redeemed.

 

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

 

Section 11.4  Notice of Redemption.  Notice of redemption shall be given in the
manner provided in Section 1.6 to the Holders of Securities to be redeemed
not less than 30 nor more than 60 days prior to the Redemption Date.

 

All notices of
redemption shall state:

 

(a)           the Redemption Date,

 

(b)           the Redemption Price,

 

54

 

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

 

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

 

(e)           the place or places where such
Securities, together in the case of Bearer Securities with all coupons appertaining
thereto, if any, maturing after the Redemption Date, are to be surrendered for
payment of the Redemption Price, which shall be the office or agency maintained
by the Corporation in each Place of Payment pursuant to Section 10.2, and

 

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

 

A notice of
redemption published as contemplated by Section 1.6 need not identify
particular Registered Securities to be redeemed.

 

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

 

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

 

Section 11.6  Securities Payable on Redemption Date.  Notice of redemption having been given as
aforesaid, and the conditions, if any, set forth in such notice having been
satisfied, the Securities so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified, and from and
after such date (unless the Corporation defaults in the payment of the
Redemption Price and accrued interest, if any,) such Securities shall cease to
bear interest and the coupons for such interest appertaining to any Bearer
Securities so to be redeemed, except to the extent provided below, shall be
void.  Upon surrender of any such
Security for redemption in accordance with said notice, together with all
coupons, if any, appertaining thereto maturing after the Redemption Date, such
Security shall be paid by the Corporation at the Redemption Price, together
with accrued interest, if any, to the Redemption Date; provided, that installments of interest on
Bearer Securities whose Stated Maturity is on or prior to the Redemption Date
shall be payable only upon presentation and surrender of coupons for such
interest (at an office or agency located outside the United States except as
otherwise provided in Section 10.2); and provided
further, that installments of interest on Registered Securities
whose Stated Maturity is on or prior to the Redemption Date shall be payable to
the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant Record Dates
according to their terms and the provisions of Section 3.7.

 

55

 

If any Bearer
Security surrendered for redemption is not accompanied by all appurtenant
coupons maturing after the Redemption Date, such Security may be paid after
deducting from the Redemption Price an amount equal to the face amount of all
such missing coupons, or the surrender of such missing coupon or coupons may be
waived by the Corporation and the Trustee if there is furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless.  If thereafter the Holder
of such Security surrenders to the Trustee or any Paying Agent any such missing
coupon in respect of which a deduction shall have been made from the Redemption
Price, such Holder shall be entitled to receive the amount so deducted; provided, that interest represented by
coupons shall be payable only upon presentation and surrender of those coupons
at an office or agency located outside of the United States except as otherwise
provided in Section 10.2.

 

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

 

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

 

Except as
otherwise specified as contemplated by Section 3.1, if a Global Security
is so surrendered, the Corporation shall execute, and the Trustee shall
authenticate and deliver to the Depositary in global form, without service
charge, a new Global Security or Securities of the same series, Stated Maturity
and of any authorized denomination as requested by the Depositary, in an
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Global Security so surrendered.

 

ARTICLE TWELVE

Sinking Funds

 

Section 12.1  Applicability of Article.  The provisions of this Article shall be
applicable to any sinking fund for the retirement of Securities of a series
except as otherwise specified as contemplated by Section 3.1 for
Securities of such series.

 

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

 

56

 

reduction as provided in Section 12.2.  Each sinking fund payment shall be applied to
the redemption of Securities of any series as provided for by the terms of
Securities of such series.

 

Section 12.2  Satisfaction of Sinking Fund Payments with
Securities.  The
Corporation (1) may deliver Outstanding Securities of a series (other than
any previously called for redemption), together in the case of any Bearer
Securities of such series with all unmatured coupons appertaining thereto, and (2) may
apply as a credit Securities of a series which have been redeemed either at the
election of the Corporation pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the
terms of such Securities, in each case in satisfaction of all or any part of
any sinking fund payment with respect to the Securities of such series required
to be made pursuant to the terms of such Securities as provided for by the
terms of such series; provided, that
such Securities have not been previously so credited.  Such Securities shall be received and
credited for such purpose by the Trustee at the Redemption Price specified in
such Securities for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly.

 

Section 12.3  Redemption of Securities for Sinking Fund.  Not less than 60 days prior to each sinking
fund payment date for any series of Securities, the Corporation shall deliver
to the Trustee an Officers’ Certificate specifying the amount of the next
ensuing sinking fund payment for that series pursuant to the terms of that
series, the portion thereof, if any, which is to be satisfied by payment of
cash and the portion thereof, if any, which is to be satisfied by delivering
and crediting Securities of that series pursuant to Section 12.2 and
stating the basis for such credit and that such Securities have not previously
been so credited and shall also deliver to the Trustee any Securities to be so
delivered.  Not less than 30 days before
each such sinking fund payment date the Trustee shall select the Securities to
be redeemed upon such sinking fund payment date in the manner specified in Section 11.3
and cause notice of the redemption thereof to be given in the name of and at
the expense of the Corporation in the manner provided in Section 11.4.  Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 11.6 and 11.7.

 

ARTICLE THIRTEEN

Meetings of Holders of Securities

 

Section 13.1  Purposes for Which Meetings May be Called.  If Securities of a series are issuable as
Bearer Securities, a meeting of Holders of Securities of such series may be
called at any time and from time to time pursuant to this Article to make, give
or take any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be made, given or taken by
Holders of Securities of such series.

 

Section 13.2 
Call Notice and Place of Meeting.

 

(a)           The Trustee may at any time call a
meeting of Holders of Securities of any series for any purpose specified in Section 13.1,
to be held at such time and at such place in the Borough of Manhattan, The City
of New York, or in London, as the Trustee shall determine.  Notice of every meeting of Holders of
Securities of any series, setting forth the time and the 

 

57

 

place of such meeting and in general terms the action
proposed to be taken at such meeting, shall be given, in the manner provided in
Section 1.6, not less than 21 nor more than 180 days prior to the date
fixed for the meeting.

 

(b)           In case at any time the Corporation,
pursuant to a Board Resolution, or the Holders of at least 10% in principal
amount of the Outstanding Securities of any series shall have requested the
Trustee to call a meeting of the Holders of Securities of such series for any
purpose specified in Section 13.1, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have made the first publication of the notice of such meeting
within 21 days after receipt of such request or shall not thereafter proceed to
cause the meeting to be held as provided herein, then the Corporation or the
Holders of Securities of such series in the amount above specified, as the case
may be, may determine the time and the place in the Borough of Manhattan, The
City of New York, or in London for such meeting and may call such meeting for
such purposes by giving notice thereof as provided in subsection (a) of
this Section.

 

Section 13.3  Persons Entitled to Vote at Meetings.  To be entitled to vote at any meeting of
Holders of Securities of any series, a Person shall be (1) a Holder of one
or more Outstanding Securities of such series, or (2) a Person appointed
by an instrument in writing as proxy for a Holder or Holders of one or more
Outstanding Securities of such series by such Holder or Holders.  The only Persons who shall be entitled to be
present or to speak at any meeting of Holders of Securities of any series shall
be the Persons entitled to vote at such meeting and their counsel, any
representatives of the Trustee and its counsel and any representatives of the
Corporation and its counsel.

 

Section 13.4  Quorum; Action.  The Persons entitled to vote a majority in
principal amount of the Outstanding Securities of a series shall constitute a
quorum for a meeting of Holders of Securities of such series.  In the absence of a quorum within 30 minutes
of the time appointed for any such meeting, the meeting shall, if convened at
the request of Holders of Securities of such series, be dissolved.  In any other case, the meeting may be
adjourned for a period of not less than 10 days as determined by the chairman
of the meeting prior to the adjournment of such meeting.  In the absence of a quorum at any such
adjourned meeting, such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the chairman of the meeting prior to
the adjournment of such adjourned meeting. 
Except as provided by Section 13.5(d), notice of the reconvening of
any adjourned meeting shall be given as provided in Section 13.2(a),
except that such notice need be given only once not less than five days prior
to the date on which the meeting is scheduled to be reconvened.  Notice of the reconvening of an adjourned
meeting shall state expressly the percentage, as provided above, of the
principal amount of the Outstanding Securities of such series which shall
constitute a quorum.

 

Except as
limited by the proviso to Section 9.2, any resolution presented to a
meeting or adjourned meeting duly reconvened at which a quorum is present as
aforesaid may be adopted only by the affirmative vote of the Holders of a
majority in principal amount of the Outstanding Securities of that series; provided, that, except as limited by the
proviso to Section 9.2, any resolution with respect to any request,
demand, authorization, direction, notice, consent, waiver or other action which
this Indenture expressly provides may be made, given or taken by 

 

58

 

the Holders of a specified percentage, which is less than a majority,
in principal amount of the Outstanding Securities of a series may be adopted at
a meeting or an adjourned meeting duly reconvened and at which a quorum is
present as aforesaid by the affirmative vote of the Holders of such specified
percentage in principal amount of the Outstanding Securities of that series.

 

Any resolution
passed or decision taken at any meeting of Holders of Securities of any series
duly held in accordance with this Section shall be binding on all the Holders
of Securities of such series and the related coupons, whether or not present or
represented at the meeting.

 

Section 13.5 
Determination of Voting Rights; Conduct and Adjournment of Meetings.

 

(a)           Notwithstanding any other provisions
of this Indenture, the Trustee may make such reasonable regulations as it may
deem advisable for any meeting of Holders of Securities of such series in
regard to proof of the holding of Securities of such series and of the
appointment of proxies and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates
and other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem appropriate.  Except as otherwise permitted or required by
any such regulations, the holding of Securities shall be proved in the manner
specified in Section 1.4, and the appointment of any proxy shall be proved
in the manner specified in Section 1.4. 
Such regulations may provide that written instruments appointing
proxies, regular on their face, may be presumed valid and genuine without the
proof specified in Section 1.4 or other proof.

 

(b)           The Trustee shall, by an instrument
in writing, appoint a temporary chairman of the meeting, unless the meeting
shall have been called by the Corporation or by Holders of Securities as
provided in Section 13.2(b), in which case the Corporation or the Holders
of Securities of the series calling the meeting, as the case may be, shall in
like manner appoint a temporary chairman. 
A permanent chairman and a permanent secretary of the meeting shall be
elected by vote of the Persons entitled to vote a majority in principal amount
of the Outstanding Securities of such series represented at the meeting.

 

(c)           At any meeting each Holder of a
Security of such series or proxy shall be entitled to one vote for each $1,000
principal amount of Securities of such series held or represented by such
Holder; provided, that no vote
shall be cast or counted at any meeting in respect of any Security challenged
as not Outstanding and ruled by the chairman of the meeting to be not
Outstanding.  The chairman of the meeting
shall have no right to vote, except as a Holder of a Security of such series or
proxy.

 

(d)           Any meeting of Holders of Securities
of any series duly called pursuant to Section 13.2 at which a quorum is
present may be adjourned from time to time by Persons entitled to vote a
majority in principal amount of the Outstanding Securities of such series
represented at the meeting; and the meeting may be held as so adjourned without
further notice.

 

Section 13.6  Counting Votes and Recording Action of
Meetings.  The vote
upon any resolution submitted to any meeting of Holders of Securities of any
series shall be by written 

 

59

 

ballots on which shall be subscribed the signatures of
the Holders of Securities of such series or of their representatives by proxy
and the principal amounts and serial numbers of the Outstanding Securities of
such series held or represented by them. 
The permanent chairman of the meeting shall appoint two inspectors of
votes who shall count all votes cast at the meeting for or against any
resolution and who shall make and file with the secretary of the meeting their
verified written reports in triplicate of all votes cast at the meeting.  A record, at least in triplicate, of the
proceedings of each meeting of Holders of Securities of any series shall be
prepared by the secretary of the meeting, and there shall be attached to said
record the original reports of the inspectors of votes on any vote by ballot
taken thereat and affidavits by one or more persons having knowledge of the
facts setting forth a copy of the notice of the meeting and showing that said
notice was given as provided in Section 13.2 and, if applicable, Section 13.4.  Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting, and one such
copy shall be delivered to the Corporation and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting.  Any record so signed and
verified shall be conclusive evidence of the matters therein stated.

 

Section 13.7  Action Without Meeting.  In lieu of a vote of Holders at a meeting as
hereinbefore contemplated in this Article, any request, demand, authorization,
direction, notice, consent, waiver or other action may be made, given or taken
by Holders by written instruments as provided in Section 1.4.

 

ARTICLE FOURTEEN

Immunity of Incorporators, Stockholders, Officers,

Directors and Employees

 

Section 14.1  Liability Solely Corporate.  No recourse shall be had for the payment of
the principal of or premium, if any, or interest, if any, on any Securities, or
any part thereof, or for any claim based thereon or otherwise in respect
thereof, or of the indebtedness represented thereby, or upon any obligation,
covenant or agreement under this Indenture, against any incorporator,
stockholder, officer, director or employee, as such, past, present or future of
the Corporation or of any predecessor or successor Corporation (either directly
or through the Corporation or a predecessor or successor Corporation), whether
by virtue of any constitutional provision, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise; it being expressly agreed and
understood that this Indenture and all the Securities are solely corporate
obligations, and that no personal liability whatsoever shall attach to, or be
incurred by, any incorporator, stockholder, officer, director or employee,
past, present or future, of the Corporation or of any predecessor or successor
Corporation, either directly or indirectly through the Corporation or any
predecessor or successor Corporation, because of the indebtedness hereby
authorized or under or by reason of any of the obligations, covenants or
agreements contained in this Indenture or in any of the Securities or to be
implied herefrom or therefrom, and that any such personal liability is hereby
expressly waived and released as a condition of, and as part of the
consideration for, the execution of this Indenture and the issuance of the
Securities.

 

 

60

 

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

 

	
   

  	
   

  	
  AAR CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
  Attest:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
  Attest:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
						

 

61

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}]]