Document:

Exhibit 4.1

 

 

ADOBE SYSTEMS INCORPORATED

 

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,  Trustee

 

 

INDENTURE

 

Dated as of
[                    ],
2010

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  
	
  DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  Section 1.01. Certain Terms Defined;
  Rules of Construction

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  
	
  SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 2.01. Forms Generally

  	
   

  	
  7

  
	
  Section 2.02. Form of Trustee’s
  Certification of Authentication

  	
   

  	
  7

  
	
  Section 2.03. Amount Unlimited;
  Issuable in Series

  	
   

  	
  7

  
	
  Section 2.04. Authentication and
  Delivery of Securities

  	
   

  	
  10

  
	
  Section 2.05. Execution of
  Securities

  	
   

  	
  11

  
	
  Section 2.06. Certificate of
  Authentication

  	
   

  	
  12

  
	
  Section 2.07. Denomination and Date
  of Securities; Payments of Interest

  	
   

  	
  12

  
	
  Section 2.08. Registration, Transfer
  and Exchange

  	
   

  	
  13

  
	
  Section 2.09. Mutilated, Defaced,
  Destroyed, Lost and Stolen Securities

  	
   

  	
  14

  
	
  Section 2.10. Cancellation of
  Securities; Destruction Thereof

  	
   

  	
  15

  
	
  Section 2.11. Temporary Securities

  	
   

  	
  15

  
	
  Section 2.12. Authenticating Agent

  	
   

  	
  16

  
	
  Section 2.13. Global Securities

  	
   

  	
  16

  
	
  Section 2.14. CUSIP Numbers

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  
	
  COVENANTS
  OF THE ISSUER

  
	
   

  	
   

  	
   

  
	
  Section 3.01. Payment of Principal
  and Interest

  	
   

  	
  18

  
	
  Section 3.02. Offices for Payments,
  etc.

  	
   

  	
  19

  
	
  Section 3.03. Paying Agents

  	
   

  	
  19

  
	
  Section 3.04. Certificate of the
  Issuer

  	
   

  	
  20

  
	
  Section 3.05. Reports by the Issuer

  	
   

  	
  21

  
	
  Section 3.06. Limitation on Liens

  	
   

  	
  21

  
	
  Section 3.07. Limitation on Sale and
  Lease-Back Transactions

  	
   

  	
  22

  
	
  Section 3.08. Existence

  	
   

  	
  22

  
	
  Section 3.09. Certain Definitions

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  
	
  REMEDIES
  OF THE TRUSTEE AND HOLDERS ON EVENT OF DEFAULT

  
	
   

  	
   

  	
   

  
	
  Section 4.01. Event of Default;
  Acceleration of Maturity; Waiver of Default

  	
   

  	
  26

  

 

 

	
   

  	
   

  	
  Page

  
	
  Section 4.02. Collection of
  Indebtedness by Trustee; Trustee May Prove Debt

  	
   

  	
  28

  
	
  Section 4.03. Application of
  Proceeds

  	
   

  	
  30

  
	
  Section 4.04. Suits for Enforcement

  	
   

  	
  31

  
	
  Section 4.05. Restoration of Rights
  on Abandonment of Proceedings

  	
   

  	
  31

  
	
  Section 4.06. Limitations on Suits
  by Holder

  	
   

  	
  32

  
	
  Section 4.07. Unconditional Right of
  Holders to Institute Certain Suits

  	
   

  	
  32

  
	
  Section 4.08. Powers and Remedies Cumulative;
  Delay or Omission Not Waiver of Default

  	
   

  	
  32

  
	
  Section 4.09. Control by Holders

  	
   

  	
  33

  
	
  Section 4.10. Waiver of Past
  Defaults

  	
   

  	
  33

  
	
  Section 4.11. Trustee to Give Notice
  of Default, But May Withhold in Certain Circumstances

  	
   

  	
  33

  
	
  Section 4.12. Right of Court to
  Require Filing of Undertaking to Pay Costs

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  
	
  CONCERNING
  THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 5.01. Duties and
  Responsibilities of the Trustee; During Default; Prior to Default

  	
   

  	
  34

  
	
  Section 5.02.  Trustee’s Obligations with Respect to the Covenants

  	
   

  	
  35

  
	
  Section 5.03. Moneys Held by Trustee

  	
   

  	
  35

  
	
  Section 5.04. Reports by the Trustee
  to Holders

  	
   

  	
  35

  
	
  Section 5.05. Certain Rights of the
  Trustee

  	
   

  	
  35

  
	
  Section 5.06. Trustee and Agents
  May Hold Securities; Collections, etc.

  	
   

  	
  37

  
	
  Section 5.07. Compensation and
  Indemnification of Trustee and Its Prior Claim

  	
   

  	
  37

  
	
  Section 5.08. Right of Trustee to
  Rely on Officer’s Certificate, etc.

  	
   

  	
  38

  
	
  Section 5.09. Disqualification;
  Conflicting Interests

  	
   

  	
  38

  
	
  Section 5.10. Persons Eligible for
  Appointment as Trustee

  	
   

  	
  38

  
	
  Section 5.11. Resignation and
  Removal; Appointment of Successor Trustee

  	
   

  	
  38

  
	
  Section 5.12. Acceptance of
  Appointment by Successor

  	
   

  	
  40

  
	
  Section 5.13. Merger, Conversion,
  Consolidation or Succession to Business of Trustee

  	
   

  	
  41

  
	
  Section 5.14. Preferential Collection
  of Claims Against the Issuer

  	
   

  	
  41

  
	
  Section 5.15. Trustee’s Disclaimer

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  
	
  CONCERNING
  THE HOLDERS

  
	
   

  	
   

  	
   

  
	
  Section 6.01. Evidence of Action
  Taken by Holders

  	
   

  	
  41

  
	
  Section 6.02. Proof of Execution of
  Instruments and of Holding of Securities; Record Date

  	
   

  	
  42

  
	
  Section 6.03. Holders to Be Treated
  as Owners

  	
   

  	
  42

  
	
  Section 6.04. Securities Owned by
  Issuer Deemed Not Outstanding

  	
   

  	
  43

  

 

ii

 

	
   

  	
  Page

  
	
  Section 6.05. Right of Revocation of Action Taken

  	
  43

  
	
   

  	
   

  
	
  ARTICLE 7

  
	
  AMENDMENTS,
  SUPPLEMENTS AND WAIVERS

  
	
   

  	
   

  
	
  Section 7.01. Supplemental Indentures without Consent of Holders

  	
  44

  
	
  Section 7.02. Supplemental Indentures with Consent of Holders

  	
  45

  
	
  Section 7.03. Execution of Amendments or Supplemental Indentures or Waivers

  	
  46

  
	
  Section 7.04. Effect of Amendment, Supplemental Indenture or Waiver

  	
  46

  
	
  Section 7.05. Effect of Consent

  	
  47

  
	
  Section 7.06. Notation on Securities in Respect of Amendments, Supplemental
  Indentures or Waivers

  	
  47

  
	
  Section 7.07. Conformity with the Trust Indenture Act

  	
  47

  
	
   

  	
   

  
	
  ARTICLE 8

  
	
  CONSOLIDATION,
  MERGER, SALE OR CONVEYANCE

  
	
   

  	
   

  
	
  Section 8.01. Consolidation, Merger or Sale of Assets by the Issuer

  	
  47

  
	
  Section 8.02. Successor Substituted

  	
  48

  
	
   

  	
   

  
	
  ARTICLE 9

  
	
  DEFEASANCE
  AND DISCHARGE; UNCLAIMED MONEYS

  
	
   

  	
   

  
	
  Section 9.01. Satisfaction and Discharge of Indenture

  	
  48

  
	
  Section 9.02. Legal Defeasance

  	
  49

  
	
  Section 9.03. Covenant Defeasance

  	
  51

  
	
  Section 9.04. Application by Trustee of Funds Deposited for Payment of Securities

  	
  51

  
	
  Section 9.05. Repayment of Moneys Held by Paying Agent

  	
  51

  
	
  Section 9.06. Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two
  Years

  	
  51

  
	
   

  	
   

  
	
  ARTICLE 10

  
	
  MISCELLANEOUS
  PROVISIONS

  
	
   

  	
   

  
	
  Section 10.01. Incorporators, Stockholders, Employees, Officers and Directors of
  Issuer Exempt from Individual Liability

  	
  52

  
	
  Section 10.02. Provisions of Indenture for the Sole Benefit of Parties and Holders

  	
  52

  
	
  Section 10.03. Successors and Assigns of Issuer Bound by Indenture

  	
  52

  
	
  Section 10.04. Notices and Demands on Issuer, Trustee and Holders

  	
  52

  
	
  Section 10.05. Officer’s Certificates and Opinions of Counsel; Statements to Be
  Contained Therein

  	
  53

  
	
  Section 10.06. Payments Due on Saturdays, Sundays and Holidays

  	
  54

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
  Section 10.07. Trust Indenture Act of
  1939

  	
   

  	
  54

  
	
  Section 10.08. New York Law to Govern

  	
   

  	
  54

  
	
  Section 10.09. Counterparts

  	
   

  	
  55

  
	
  Section 10.10. Effect of Headings

  	
   

  	
  55

  
	
  Section 10.11. Separability

  	
   

  	
  55

  
	
  Section 10.12. Force Majeure

  	
   

  	
  55

  
	
  Section 10.13. U.S.A. Patriot Act

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  
	
  REDEMPTION
  OF SECURITIES AND SINKING FUND PROVISIONS

  
	
   

  	
   

  	
   

  
	
  Section 11.01. Applicability of
  Article

  	
   

  	
  55

  
	
  Section 11.02. Notice of Redemption;
  Partial Redemptions

  	
   

  	
  56

  
	
  Section 11.03. Payment of Securities
  Called for Redemption

  	
   

  	
  57

  
	
  Section 11.04. Exclusion of Certain
  Securities from Eligibility for Selection for Redemption

  	
   

  	
  57

  

 

iv

 

THIS
INDENTURE, dated as of
[              ],
2010 between ADOBE SYSTEMS INCORPORATED (the “Issuer”)
and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Trustee”),

 

W I T N E S S E T H:

 

WHEREAS,
for its lawful corporate purposes, the Issuer has duly authorized the execution
and delivery of the Indenture to provide for the issuance of unsecured debt
securities in one or more series (the “Securities”) up
to such principal amount or amounts as may from time to time be authorized in
accordance with the terms of the Indenture and to provide, among other things,
for the authentication, delivery and administration thereof;

 

WHEREAS,
all things necessary to make the Indenture a valid indenture and agreement
according to its terms have been done;

 

WHEREAS,
the Indenture is subject to, and will be governed by, the provisions of the
Trust Indenture Act of 1939 (the “Trust Indenture Act”)
that are required to be a part of and govern indentures qualified under the
Trust Indenture Act; and

 

NOW,
THEREFORE, in consideration of the premises and the purchases of the Securities
by the holders thereof, the Issuer and the Trustee mutually covenant and agree
for the equal and proportionate benefit of the respective holders from time to
time of the Securities as follows:

 

ARTICLE
1

DEFINITIONS

 

Section 1.01.  Certain Terms Defined; Rules of
Construction.  The following
terms (except as otherwise expressly  provided or
unless the context otherwise clearly requires) for all purposes of the
Indenture and of any indenture supplemental hereto shall have the respective
meanings specified in this Section.  All
other terms used in the Indenture that are defined in the Trust Indenture Act,
or the definitions of which are referred to in the Trust Indenture Act,
including terms defined therein by reference to the Securities Act (except as
herein otherwise expressly provided or unless the context otherwise clearly
requires), shall have the meanings assigned to such terms in the Trust
Indenture Act and in the Securities Act as in force at the date of the
Indenture.  All accounting terms used
herein and not expressly defined shall have the meanings assigned to such terms
in accordance with generally accepted accounting principles, and the term “generally accepted accounting principles” means such
accounting principles as are generally accepted at the time of any
computation.  The words “herein”, “hereof” and “hereunder” and other words of similar import refer to the
Indenture as a whole and not to any particular Article, Section or other
subdivision.  The terms defined in this Article have
the meanings assigned to them in this Article and include the plural as
well as the

 

 

singular.  Except as otherwise
expressly provided or unless the context otherwise clearly requires, references
to agreements or instruments, or to statutes or regulations, are to such
agreements or instruments, or statutes or regulations, as amended from time to
time (or to successor statutes and regulations).

 

“Agent Member” means a member of, or a participant in, the
Depositary.

 

“Aggregate Debt” has the meaning assigned to such term in
Section 3.09.

 

“Attributable Liens” has the meaning assigned to such term in
Section 3.09.

 

“Authenticating Agent” means an authenticating agent with
respect to any of the series of Securities appointed with respect to all or any
series of the Securities by the Trustee pursuant to Section 2.12.

 

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

 

“Board of Directors” means either the Board of Directors of
the Issuer or any committee of such Board duly authorized to act hereunder.

 

“Business Day” means, with respect to any Security, a day
that in the Borough of Manhattan, City of New York is not a day on which
banking institutions are authorized by law or regulation to close.

 

“Capital Lease” has the meaning assigned to such term in
Section 3.09.

 

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

 

“company” means a corporation or a limited liability company.

 

“Consolidated Net Worth” has the meaning assigned to such term in
Section 3.09.

 

“Consolidated Subsidiary” has the meaning assigned to such term in
Section 3.09.

 

“Corporate Trust Office” means the office of the Trustee (i) for
bond transfer purposes and for purposes of payments, presentment and surrender
of the Securities for the final distributions thereon is 625 Marquette Avenue,
Minneapolis, MN 55402,

 

2

 

Attention: Corporate Trust Services and (ii) for all other
purposes is 707 Wilshire Blvd, 17th Fl., Los Angeles, CA 90017.

 

“Depositary” means, with respect to Securities of any series,
for which the Issuer shall determine that such Securities will be issued as a
Global Security, the Depository Trust Company, New York, New York, another
clearing agency, or any successor registered as a clearing agency under the
Exchange Act, or other applicable statute or regulation, which, in each case,
shall be designated by the Issuer pursuant to either Section 2.01 or 2.13.

 

“Event of Default” has the meaning assigned to such term in Section 4.01.

 

“Exchange Act” means the Securities Exchange Act of 1934 and
any statute successor thereto, in each case as amended from time to time, and
the rules and regulations of the Commission promulgated thereunder.

 

“GAAP” has the meaning assigned to such term in
Section 3.09.

 

“Global Security” means, with respect to any series of
Securities, a Security executed by the Issuer and delivered by the Trustee to
the Depositary or pursuant to a safekeeping agreement with the Depositary, all
in accordance with the Indenture, which shall be registered in global form
without interest coupons in the name of the Depositary or its nominee.

 

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

 

“Hedging Obligations” has the meaning assigned to such term in
Section 3.09.

 

“Holder” means the registered holder of any Security.

 

3

 

“Indebtedness” has the meaning assigned to such term in
Section 3.09.

 

“Indenture” means this instrument as originally executed and
delivered or, if amended or supplemented as herein provided, as so amended or
supplemented or both, and shall include the forms and terms of particular
series of Securities established as contemplated hereunder.

 

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

 

“Issue Date” means the date on which the Securities are
originally issued.

 

“Issuer” means, unless otherwise explicitly provided herein,
the Person named as the “Issuer” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Issuer”
shall mean such successor Person.

 

“Issuer
Order” has the
meaning assigned to such term in Section 2.04.

 

“Lien” has the meaning assigned to such term in
Section 3.09.

 

“Notice of Default” has the meaning assigned to such term in Section 4.01(c).

 

“Officer’s Certificate” means a certificate signed on behalf
of the Issuer by chairman of the Board of Directors, chief executive officer,
chief financial officer, principal accounting officer, treasurer, president,
any vice president, controller, secretary, any assistant secretary or general
counsel of the Issuer.

 

“Opinion of Counsel” means an opinion in writing signed by
legal counsel who may be an employee of or counsel to the Issuer.

 

“Original Issue Discount Security” means any Security that
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 4.01.

 

“Outstanding”, when used with reference to Securities, shall,
subject to the provisions of Section 6.04, mean, as of any particular
time, all Securities authenticated and delivered by the Trustee under the
Indenture, except:

 

(a)                    Securities cancelled by the Trustee or accepted by the
Trustee for cancellation;

 

4

 

(b)                   Securities, or portions thereof, for the payment or
redemption of which moneys in the necessary amount to pay all amounts then due
shall have been deposited in trust with the Trustee or with any paying agent
(other than the Issuer) or shall have been set aside, segregated and held in
trust by the Issuer for the Holders of such Securities (if the Issuer shall act
as its own paying agent), provided that if such Securities, or portions
thereof, are to be redeemed prior to the maturity thereof, notice of such
redemption shall have been given as herein provided, or provision satisfactory
to the Trustee shall have been made for giving such notice; and

 

(c)                    Securities in substitution for which other Securities
shall have been authenticated and delivered, or which shall have been paid,
pursuant to the terms of Section 2.09 unless and until the Trustee and the
Issuer receive proof satisfactory to them that the substituted Security is held
by a bona fide purchaser.

 

In
determining whether the Holders of the requisite principal amount of
Outstanding Securities of any or all series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a
declaration of acceleration of the maturity thereof pursuant to Section 4.01.

 

“Patriot Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56, as amended, and signed into law
October 26, 2001.

 

“Permitted Liens” has the meaning assigned to such term in
Section 3.09.

 

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

 

“principal” whenever used with reference to the Securities or
any Security or any portion thereof, shall be deemed to include “and premium,
if any”.

 

“Property” has the meaning assigned to such term in
Section 3.09.

 

“Register” has the meaning assigned to it in Section 2.08.

 

“Registrar” means a Person engaged to maintain the Register.

 

5

 

 

“Resolution of the Board of Directors”
means a copy of the resolution certified by the secretary or an assistant
secretary of the Issuer to have been duly adopted by the Board of Directors and
to be in full force and effect on the date of such certification.

 

“Responsible Officer”
when used with respect to the Trustee means any officer of the Trustee within
the Corporate Trust Office of the Trustee with direct responsibility for the
administration of the Indenture and also, with respect to a particular matter,
any other officer of the Trustee to whom such matter is referred because of
such officer’s knowledge and familiarity with the particular subject.

 

“Securities Act”
means the Securities Act of 1933 and any statute successor thereto, in each
case as amended from time to time, and the rules and regulations of the
Commission promulgated thereunder.

 

“Security” or “Securities” has the meaning stated in the first recital of
the Indenture, or, as the case may be, Securities that have been authenticated
and delivered under the Indenture.

 

“Significant
Subsidiary” means any Subsidiary of the Issuer which has at least
10% of the total assets of the Issuer and its Subsidiaries on a consolidated
basis at the end of the Issuer’s most recent fiscal year.

 

“Stockholders’
Equity” has the meaning assigned to such term in Section 3.09.

 

“Subsidiary”
has the meaning assigned to such term in Section 3.09.

 

“Surviving Entity”
has the meaning assigned to such term in Section 8.01.

 

“Trustee” means
the Person identified as “Trustee” in the first paragraph hereof and any
successor trustee under the Indenture pursuant to Article 5.

 

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

 

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

 

“Yield to Maturity”
means the yield to maturity on a series of securities, calculated at the time
of issuance of such series, or, if applicable, at the most recent
redetermination of interest on such series, and calculated in accordance with
accepted financial practice.

 

6

 

ARTICLE
2

SECURITIES

 

Section 2.01.  Forms Generally.  The Securities of each series
shall be substantially in such form (not inconsistent with the Indenture) as
shall be established by or pursuant to a Resolution of the Board of Directors
and set forth in an Officer’s Certificate, 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 the
Indenture and may have imprinted or otherwise reproduced thereon such legends,
notations or endorsements as may be required to comply with any law or with any
rules or regulations pursuant thereto, or with any rules of any
securities exchange or to conform to general usage, all as may be determined by
the officer executing such Securities, as evidenced by such officer’s execution
of the Securities.

 

The definitive Securities shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officer executing such Securities, as
evidenced by such officer’s execution of such Securities.

 

Section 2.02.  Form of Trustee’s Certification of
Authentication.  The Trustee’s
certificate of authentication on all Securities shall be in substantially the
following form:

 

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

 

	
   

  	
  Wells
  Fargo Bank, National Association, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  

 

Section 2.03.  Amount Unlimited; Issuable in Series.  Subject to compliance with the representations,
warranties and covenants set forth herein, in the Officer’s Certificate, in any
indenture supplemental hereto and in any amendment hereto or thereto, the
aggregate principal amount of Securities which may be authenticated and
delivered under the Indenture is unlimited.

 

The Securities may be issued in one or more
series.  There shall be established in or
pursuant to a Resolution of the Board of Directors and set forth in an
Officer’s 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 all other Securities);

 

7

 

(b)      any limit upon the aggregate principal amount of the Securities
of the series that may be authenticated and delivered under the Indenture
(except for Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of the series
pursuant to Section 2.08, 2.09, 2.11 or 11.03);

 

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

 

(d)      the rate or rates at which the Securities of the series shall
bear interest, if any, or the method by which such rate shall be determined,
the date or dates from which such interest shall accrue, the Interest Payment
Dates on which such interest shall be payable and the record dates for the
determination of Holders to whom interest is payable on such Interest Payment
Dates;

 

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

 

(f)       the place or places where the principal of and any interest on
Securities of the series shall be payable (if other than as provided in Section 3.02);

 

(g)      the price or prices at which, the period or periods within
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 Issuer;

 

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

 

(i)        if other than denominations of $2,000 and any multiple of
$1,000 in excess thereof, the denominations in which Securities of the series
shall be issuable;

 

(j)        the percentage of the principal amount at which the
Securities will be issued, and, 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 4.01
or provable in bankruptcy pursuant to Section 4.02;

 

(k)       whether the Securities are issuable under Rule 144A or
Regulation S and, in such case, any provisions unique to such form of issuance
including any transfer restrictions or exchange and registration rights;

 

8

 

(l)        any and all other terms of the series (which terms shall not
be inconsistent with the provisions of the Indenture) including any terms which
may be required by or advisable under U.S. law or regulations or advisable in
connection with the marketing of Securities in that series;

 

(m)      whether the Securities are issuable as a Global Security and,
in such case, the identity for the Depositary for such series;

 

(n)      any deletion from, modification of or addition to the Events of
Default or covenants provided for with respect to the Securities of the series;

 

(o)      any provisions granting special rights to Holders when a
specified event occurs;

 

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

 

(q)      any special tax implications of the Securities, including
provisions for Original Issue Discount Securities;

 

(r)       any trustees, authenticating or paying agents, transfer agents
or registrars or any other agents with respect to the Securities of such
series;

 

(s)       any guarantor or co-issuer of the Securities of the series;

 

(t)       any special interest premium or other premium;

 

(u)      whether the Securities are convertible or exchangeable into
common stock or other equity securities of the Issuer or a combination thereof
and the terms and conditions upon which such conversion or exchange shall be
effected; and

 

(v)      the currency in which payments shall be made, if other than
U.S. dollars.

 

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise
be provided in or pursuant to such Resolution of the Board of Directors and set
forth in an Officer’s Certificate, or in any indenture supplemental
hereto.  All Securities of any one series
need not be issued at the same time, and unless otherwise provided, a series
may be reopened for issuance of additional Securities of such series; provided
that such additional Securities are fungible with the Securities for U.S.
federal income tax purposes.  Additional
Securities of such series will

 

9

 

be consolidated with, and
form a single series with, Securities then Outstanding of such series.

 

Any additional Securities shall be established in or
pursuant to a Resolution of the Board of Directors and set forth in an
Officer’s Certificate, or established in one or more indentures supplemental
hereto, prior to the issuance of Securities of any series the following
information:

 

(i)            the aggregate
principal amount of such additional Securities to be authenticated and
delivered pursuant to the Indenture;

 

(ii)           the issue price,
the issue date and the CUSIP number, if any, of such additional Securities; and

 

(iii)          whether such
additional Securities shall be transfer restricted Securities or have any
registration or exchange rights.

 

Section 2.04.  Authentication and Delivery of
Securities.  At any time and
from time to time after the execution and delivery of the Indenture, the Issuer
may deliver Securities of any series executed by the Issuer to the Trustee for
authentication, together with a written order of the Issuer, signed in the name
of the Issuer by any one of the following officers: chairman of the Board of
Directors, chief executive officer, chief financial officer, principal
accounting officer, treasurer, president, any vice president, secretary,
controller or general counsel of the Issuer (an “Issuer Order”).
The Trustee, in accordance with such written order, shall authenticate and
deliver such Securities.

 

In authenticating such Securities and accepting the
additional responsibilities under the Indenture in relation to such Securities,
the Trustee shall be entitled to receive and (subject to Section 5.01)
shall be fully protected in relying upon:

 

(a)       a certified copy of any Resolution or Resolutions of the Board
of Directors authorizing the action taken pursuant to the resolution or
resolutions delivered under clause 2.04(b) below;

 

(b)      a copy of any Resolution or Resolutions of the Board of
Directors relating to such series, in each case certified by the secretary or
an assistant secretary of the Issuer;

 

(c)       an executed supplemental indenture, if any;

 

(d)      in lieu of a supplemental indenture, an Officer’s Certificate
setting forth the form and terms of the Securities as required pursuant to Section 2.01
and 2.03, respectively, and prepared in accordance with Section 10.05;

 

10

 

(e)       an Opinion of Counsel, prepared in accordance with Section 10.05,
to the effect that

 

(i)    the
form or forms and terms of such Securities have been established by or pursuant
to a Resolution of the Board of Directors and set forth in an Officer’s
Certificate, or by a supplemental indenture as permitted by Section 2.01
and 2.03 in conformity with the provisions of the Indenture; and

 

(ii)   such
Securities, when authenticated and delivered by the Trustee and issued by the
Issuer in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and binding obligations of the Issuer entitled
to the benefits of the Indenture, and enforceable against the Issuer in
accordance with their terms, except to the extent that enforcement thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or similar laws now or hereafter in effect relating to creditor’s
rights generally, and general principles of equity (regardless of whether
enforceability is considered in a proceeding in equity or at law).

 

The Trustee shall have the right to decline to
authenticate and deliver any Securities under this section if the Trustee,
being advised by counsel, determines that such action may not lawfully be taken
by the Issuer or if the Trustee in good faith by its board of directors or
board of trustees, executive committee, or a trust committee of directors or
trustees or Responsible Officers shall determine that such action would expose
the Trustee to personal liability.

 

Section 2.05.  Execution of Securities.  The Securities shall be signed in
the name of the Issuer by any one its chairman of the Board of Directors, chief
executive officer, chief financial officer, principal accounting officer,
treasurer, president, any vice president or general counsel, under its
corporate seal and attested by its secretary, assistant secretary, chief
financial officer, treasurer or assistant treasurer.  Such signature may be the manual or facsimile
signature of the present or any future such officer.  The seal of the Issuer may be in the form of
a facsimile thereof and may be impressed, affixed, imprinted or otherwise
reproduced on the Securities. 
Typographical and other minor errors or defects in any such signature
shall not affect the validity or enforceability of any Security that has been
duly authenticated and delivered by the Trustee.

 

In case any officer of the Issuer who shall have
signed any of the Securities shall cease to be such officer before the Security
so signed shall be authenticated and delivered by the Trustee or disposed of by
the Issuer, such Security nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Security had not ceased to be
such officer of the Issuer; and any Security may be signed on behalf of the
Issuer by such person as, at the actual date of the execution of such Security,
shall

 

11

 

be the proper officer of
the Issuer, although at the date of the execution and delivery of the Indenture
any such person was not such an officer.

 

Section 2.06.  Certificate of Authentication.  Only such Securities as shall bear
thereon a certificate of authentication substantially in the form recited
herein, executed by the Trustee by the manual signature of one of its
authorized officers, shall be entitled to the benefits of the Indenture or be
valid or obligatory for any purpose. 
Such certificate by the Trustee upon any Security executed by the Issuer
shall be conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the Holder is entitled to the
benefits of the Indenture.

 

Section 2.07.  Denomination and Date of Securities; Payments
of Interest.  The Securities
shall be issuable as registered securities without coupons and in denominations
as shall be specified as contemplated by Section 2.03.  In the absence of any such specification with
respect to the Securities of any series, the Securities of such series shall be
issuable in denominations of $2,000 and any multiple of $1,000 in excess
thereof.  The Securities shall be
numbered, lettered, or otherwise distinguished in such manner or in accordance
with such plan as the officer of the Issuer executing the same may determine
with the approval of the Trustee as evidenced by the execution and
authentication thereof.

 

The principal of and the interest on the Securities of
any series, shall be payable in the coin or currency of the United States of
America that at the time is legal tender for public and private debt, at the
office or agency of the Issuer maintained for that purpose.

 

Each Security shall be dated the date of its
authentication, shall bear interest, if any, from the date and shall be payable
on the dates, in each case, established as contemplated by Section 2.03.

 

The Person in whose name any Security of any series is
registered at the close of business on any record date applicable to a
particular series with respect to any interest payment date for such series
shall be entitled to receive the interest, if any, payable on such interest
payment date notwithstanding any transfer or exchange of such Security
subsequent to the record date and prior to such interest payment date, except
if and to the extent the Issuer shall default in the payment of the interest
due on such interest payment date for such series, in which case such defaulted
interest shall be paid to the Persons in whose names Outstanding Securities for
such series are registered at the close of business on a subsequent record date
(which shall be not less than five Business Days prior to the date of payment
of such defaulted interest) established by notice given by mail by or on behalf
of the Issuer to the Holders not less than 15 days preceding such subsequent
record date.  The term “record date” as used with respect to any interest payment
date (except a date for payment of defaulted interest) shall mean the date
specified as such in the terms of the Securities of any particular series, or,
if no such date is so specified, if such interest payment date is the first day
of a calendar month, the fifteenth day of the next preceding

 

12

 

calendar month or, if
such interest payment date is the fifteenth day of a calendar month, the first
day of such calendar month, whether or not such record date is a Business Day.

 

Section 2.08.  Registration, Transfer and Exchange.  The Issuer may appoint one or more
Registrars.  The Issuer initially
appoints the Trustee as Registrar.  The
Issuer will keep or cause to be kept at each office or agency to be maintained
for the purpose as provided in Section 3.02 a register or registers (the “Register”) in which, subject to such reasonable regulations
as it may prescribe, it will register, and will register the transfer of,
Securities as in this Article provided. 
The Register shall be in written form in the English language or in any
other form capable of being converted into such form within a reasonable
time.  At all reasonable times the
Register shall be open for inspection by the Trustee.

 

Upon due presentation for registration of transfer of
any Security of any series at any such office or agency to be maintained for
the purpose as provided in Section 3.02, the Issuer shall execute and the
Trustee shall authenticate and deliver in the name of the transferee or
transferees a new Security or Securities of the same series in authorized
denominations for a like aggregate principal amount.

 

Any Security or Securities of any series may be exchanged
for a Security or Securities of the same series in other authorized
denominations, in an equal aggregate principal amount.  Securities of any series to be exchanged
shall be surrendered at any office or agency to be maintained by the Issuer for
the purpose as provided in Section 3.02, and the Issuer shall execute and
the Trustee shall authenticate and deliver in exchange therefor the Security or
Securities of the same series which the Holder making the exchange shall be
entitled to receive, bearing numbers not contemporaneously Outstanding.

 

All Securities presented for registration of transfer,
exchange, redemption or payment shall (if so required by the Issuer or the
Trustee) be duly endorsed by, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the Issuer and the Trustee duly
executed by, the Holder or his attorney duly authorized in writing, together
with signature guarantees for such Holder or attorney.

 

The Issuer or the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any exchange or registration of transfer of Securities.  No service charge shall be made for any such
transaction.

 

Neither the Issuer nor the Trustee shall be required
to exchange or register a transfer of (a) any Securities of any series for
a period of 15 days preceding the first mailing of notice of redemption of
Securities of such series to be redeemed, or (b) any Securities selected,
called or being called for redemption except, in the case of any

 

13

 

Security where public
notice has been given that such Security is to be redeemed in part, the portion
thereof not so to be redeemed.

 

In addition to the transfer requirements provided in
this Section 2.08, any Security or Securities will be subject to such
further transfer restrictions as may be contained in an Officer’s Certificate
or indenture supplemental hereto applicable to such series of Securities.

 

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

 

Section 2.09.  Mutilated, Defaced, Destroyed, Lost and
Stolen Securities.  In case
any temporary or definitive Security shall become mutilated, defaced or be
destroyed, lost or stolen, the Issuer in its discretion may execute, and upon
the receipt of an Issuer Order, the Trustee shall authenticate and deliver, a
new Security of the same series, bearing a number not contemporaneously
Outstanding, in exchange and substitution for the mutilated or defaced
Security, or in lieu of and substitution for the Security so destroyed, lost or
stolen.  In every case the applicant for
a substitute Security shall furnish to the Issuer and to the Trustee and any
agent of the Issuer or the Trustee such security or indemnity as may be required
by them to indemnify and defend and to save each of them harmless and, in every
case of destruction, loss or theft, evidence to their satisfaction of the
destruction, loss or theft of such Security and of the ownership thereof.

 

Upon the issuance of any substitute Security, the
Issuer or the Trustee may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and
any other expenses (including the fees and expenses of the Trustee) connected
therewith.  In case any Security which
has matured or is about to mature or has been called for redemption in full
shall become mutilated or defaced or be destroyed, lost or stolen, the Issuer
may instead of issuing a substitute Security, pay or authorize the payment of
the same (without surrender thereof except in the case of a mutilated or
defaced Security), if the applicant for such payment shall furnish to the
Issuer and to the Trustee and any agent of the Issuer or the Trustee such
security or indemnity as any of them may require to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Issuer and the Trustee and any agent of the Issuer or the
Trustee evidence to their satisfaction of the destruction, loss or theft of
such Security and of the ownership thereof. 
In case the mutilated, deleted, destroyed, or lost or stolen Security
has become or is about to become due and payable, the Issuer in its discretion
may pay the Security instead of issuing a substitute Security.

 

Every substitute Security of any series issued
pursuant to the provisions of this section by virtue of the fact that any such
Security is destroyed, lost or stolen shall constitute an additional
contractual obligation of the Issuer, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone and shall be
entitled to

 

14

 

all the benefits of (but
shall be subject to all the limitations of rights set forth in) the Indenture
equally and proportionately with any and all other Securities of such series
duly authenticated and delivered hereunder. 
All Securities shall be held and owned upon the express condition that,
to the extent permitted by law, the foregoing provisions are exclusive with
respect to the replacement or payment of mutilated, defaced or destroyed, lost
or stolen Securities and shall preclude any and all other rights or remedies
notwithstanding any law or statute existing or hereafter enacted to the
contrary with respect to the replacement or payment of negotiable instruments
or other securities without their surrender.

 

Section 2.10.  Cancellation of Securities; Destruction
Thereof.  All Securities
surrendered for payment, redemption, registration of transfer or exchange, or
for credit against any payment in respect of a sinking or analogous fund, if
surrendered to the Issuer or any agent of the Issuer or the Trustee, shall be
delivered to the Trustee for cancellation or, if surrendered to the Trustee,
shall be cancelled by it; and no Securities shall be issued in lieu thereof
except as expressly permitted by any of the provisions of the Indenture.  On written request of the Issuer at the time
of such surrender, the Trustee shall deliver to the Issuer the Securities
cancelled by the Trustee. In the absence of such request, the Trustee shall
destroy cancelled Securities held by it and deliver a certificate of
destruction to the Issuer.  If the Issuer
shall acquire any of the Securities, such acquisition shall not operate as a
redemption or satisfaction of the indebtedness represented by such Securities
unless and until the same are delivered to the Trustee for cancellation.

 

Section 2.11.  Temporary Securities.  Pending the preparation of
definitive Securities for any series, the Issuer may execute and the Trustee
shall, upon receipt of an Issuer Order, authenticate and deliver temporary
Securities for such series (printed, lithographed, typewritten or otherwise
reproduced, in each case in form satisfactory to the Trustee).  Temporary Securities of any series shall be
issuable as registered Securities without coupons, of any authorized
denomination, and substantially in the form of the definitive Securities of
such series but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the Issuer
with the concurrence of the Trustee. 
Temporary Securities may contain such reference to any provisions of the
Indenture as may be appropriate.  Every
temporary Security shall be executed by the Issuer and be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with
like effect, as the definitive Securities. 
Without unreasonable delay the Issuer shall execute and shall furnish
definitive Securities of such series and thereupon temporary Securities of such
series may be surrendered in exchange therefor without charge at each office or
agency to be maintained by the Issuer for that purpose pursuant to Section 3.02,
and the Trustee shall, upon receipt of an Issuer Order, authenticate and
deliver in exchange for such temporary Securities of such series a like
aggregate principal amount of definitive Securities of the same series of
authorized denominations.  Until so
exchanged, the temporary Securities of any series shall be entitled to the same
benefits under the Indenture as definitive Securities of such series.

 

15

 

 

Section 2.12. 
Authenticating Agent.  So long as any of the Securities of any
series remain Outstanding there may be an Authenticating Agent for any or all
such series of Securities which the Trustee shall have the right to appoint.  Said Authenticating Agent shall be authorized
to act on behalf of the Trustee to authenticate Securities of such series
issued upon exchange, transfer or partial redemption thereof, and Securities so
authenticated shall be entitled to the benefits of the Indenture and shall be
valid and binding for all purposes as if authenticated by the Trustee
hereunder.  All references in the
Indenture to the authentication of Securities by the Trustee shall be deemed to
include authentication by an Authenticating Agent for such series.  Each Authenticating Agent shall be acceptable
to the Issuer and shall be a corporation that has a combined capital and
surplus, as most recently reported or determined by it, sufficient under the
laws of any jurisdiction under which it is organized or in which it is doing
business to conduct a trust business, and that is otherwise authorized under
such laws to conduct such business and is subject to supervision or examination
by Federal or State authorities.  If at
any time any Authenticating Agent shall cease to be eligible in accordance with
these provisions, it shall resign immediately. 
Any Authenticating Agent may at any time resign by giving written notice
of resignation to the Trustee and to the Issuer.  The Trustee may at any time (and upon written
request by the Issuer shall) terminate the agency of any Authenticating Agent
by giving written notice of termination to such Authenticating Agent and to the
Issuer.  Upon resignation, termination or
cessation of eligibility of any Authenticating Agent, the Trustee may appoint
an eligible successor Authenticating Agent acceptable to the Issuer.  Any successor Authenticating Agent, upon
acceptance of its appointment hereunder, shall become vested with all the
rights, powers and duties of its predecessor hereunder as if originally named
as an Authenticating Agent pursuant hereto.

 

Section 2.13. 
Global Securities. 
If the Issuer shall establish pursuant to Section 2.01
that the Securities of a particular series are to be issued as a Global
Security, then the Issuer shall execute and the Trustee shall, in accordance
with Section 2.04, authenticate and deliver, a Global Security that shall (i) represent,
and be issued in a denomination or aggregate denominations equal to the
aggregate principal amount of all the Securities to be represented by a Global
Security, (ii) be registered in the name of the Depositary or its nominee,
(iii) be delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instruction and (iv) bear a legend substantially to the following
effect: “Except as otherwise provided in Section 2.13 of the Indenture,
this Security may be transferred, in whole but not in part, only to another
nominee of the Depositary or to a successor Depositary or to a nominee of such
successor Depositary.”

 

Notwithstanding
the provisions of Section 2.08, the Global Security of a series may be
transferred, in whole but not in part and in the manner provided in Section 2.08,
only to another nominee of the Depositary for such series, or to a successor
Depositary for such series selected or approved by the Issuer or to a nominee
of such successor Depositary.

 

16

 

Ownership
of beneficial interests in a registered Global Security will be limited to
Agent Members that have accounts with the Depositary or Persons that may hold
interests through Agent Members.  Upon
the issuance of a registered Global Security, the Depositary will credit, on
its book-entry registration and transfer system, the Agent Members’ accounts with
the respective principal or face amounts of the securities beneficially owned
by the participants.  Any dealers,
underwriters or agents participating in the distribution of the Securities will
designate the accounts to be credited. 
Ownership of beneficial interests in a Global Security will be shown on,
and the transfer of ownership interests will be effected only through, records
maintained by the Depositary, with respect to interests of Agent Members, and
on the records of Agent Members, with respect to interests of Persons holding
through Agent Members.

 

So
long as the Depositary, or its nominee, is the registered owner of a registered
Global Security, that Depositary or its nominee, as the case may be, will be
considered the sole owner or Holder of the Securities represented by the Global
Security for all purposes under the Indenture. Except as described in this Section 2.13,
Agent Members will not be entitled to have the Securities represented by the
Global Security registered in their names, will not receive or be entitled to
receive physical delivery of the Securities in definitive form and will not be
considered the owners or Holders of the Securities under the Indenture.  Accordingly, each Agent Member owning a
beneficial interest in a registered Global Security must rely on the procedures
of the Depositary for that registered Global Security and, if that Person is
not an Agent Member, on the procedures of the Agent Member through which the
Person owns its interest, to exercise any rights of a Holder under the
Indenture.  Notwithstanding the
foregoing, the Depositary or its nominee may grant proxies and otherwise
authorize any Person (including any Agent Member and any Person that holds a
beneficial interest in a Global Security through an Agent Member) to take any
action which a Holder is entitled to take under the Indenture or the
Securities, and nothing herein will impair, as between the Depositary and its
Agent Members, the operation of customary practices governing the exercise of
the rights of a Holder of any Security.

 

Principal,
premium, if any, and interest payments on Securities represented by a Global
Security registered in the name of the Depositary or its nominee will be made
to the Depositary or its nominee, as the case may be, as the registered owner
of the registered Global Security.  None
of the Issuer, the Trustee or any other agent of the Issuer, or any agent of
the Trustee will have any responsibility or liability for any aspect of the
records relating to payments made on account of beneficial ownership interests
in the registered Global Security or for maintaining, supervising or reviewing
any records relating to those beneficial ownership interests.

 

If at
any time the Depositary for a series of the Securities notifies the Issuer that
it is unwilling or unable to continue as Depositary for such series or if at
any time the Depositary for such series shall no longer be registered or in
good standing under the Exchange Act, or other applicable statute or
regulation, and a successor Depositary for

 

17

 

such series is not appointed by the Issuer within 90 days after the
Issuer receives such notice or becomes aware of such condition, as the case may
be, this Section 2.13 shall no longer be applicable to the Securities of
such series and the Issuer will execute, and subject to Section 2.08, the
Trustee will authenticate and deliver the Securities of such series in
definitive registered form without coupons, in authorized denominations, and in
an aggregate principal amount equal to the principal amount of the Global
Security of such series in exchange for such Global Security.  In addition, the Issuer may at any time
determine that the Securities of any series shall no longer be represented by a
Global Security and that the provisions of this Section 2.13 shall no
longer apply to the Securities of such series. 
In such event the Issuer will execute and subject to Section 2.08,
the Trustee, upon receipt of an Officer’s Certificate evidencing such
determination by the Issuer, will authenticate and deliver the Securities of
such series in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security.  Upon the exchange of the
Global Security for such Securities in definitive registered form without
coupons, in authorized denominations, the Global Security shall be cancelled by
the Trustee.  Such Securities in
definitive registered form issued in exchange for the Global Security pursuant
to this Section 2.13 shall be registered in such names and in such
authorized denominations as the Depositary, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee in
writing.  The Issuer and the Trustee
shall be entitled to conclusively rely on such instructions from the
Depositary.  The Trustee shall deliver
such Securities to the Depositary for delivery to the Persons in whose names
such Securities are so registered.

 

Section 2.14. 
CUSIP Numbers.  The Issuer in issuing the Securities may use “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to Holders; provided that any
such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Securities or as contained in any notice
of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers.  The Issuer will promptly notify the Trustee
in writing of any change in the “CUSIP” numbers.

 

ARTICLE
3

COVENANTS OF THE ISSUER

 

Section 3.01.  Payment of Principal and Interest.  (a) The Issuer covenants and
agrees for the benefit of each series of Securities that it will duly and
punctually pay or cause to be paid the principal of, and interest on, each of
the Securities of such series at the place or places, at the respective times
and in the manner provided in such Securities. 
The Issuer shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal on each series of
Securities at the rate specified in

 

18

 

the terms of such series of Securities to the extent lawful; it shall
pay interest (including post-petition interest in any proceeding under any Bankruptcy
Law) on overdue installments of interest (without regard to any applicable
grace period) at the same rate to the extent lawful.  Unless otherwise provided in the Securities
of any series, not later than 10:00 A.M. (New York City time) on the due
date of any principal of or interest on any Securities, the Issuer will deposit
with the Trustee (or paying agent) money in immediately available funds
sufficient to pay such amounts, provided
that if the Issuer or any affiliate of the Issuer is acting as paying agent, it
will, on or before each due date, segregate and hold in a separate trust fund
for the benefit of the Holders a sum of money sufficient to pay such amounts
until paid to such Holders or otherwise disposed of as provided in the
Indenture.  In each case the Issuer will
promptly notify the Trustee of its compliance with this paragraph.

 

(b)           An installment of principal or interest will be
considered paid on the date due if the Trustee (or paying agent, other than the
Issuer or any affiliate of the Issuer) holds on that date money designated for
and sufficient to pay the installment. 
If the Issuer or any affiliate of the Issuer acts as paying agent, an
installment of principal or interest will be considered paid on the due date
only if paid to the Holders.

 

(c)           Payments in respect of the Securities represented by
the Global Security are to be made by wire transfer of immediately available
funds to the accounts specified by the Holder of the Global Security. With
respect to certificated Securities, the Issuer will make all payments by wire
transfer of immediately available funds to the accounts specified by the
Holders thereof or, if no such account is specified, by mailing a check to each
Holder’s registered address.

 

Section 3.02.  Offices for Payments,
etc.  So long as any of the
Securities remain Outstanding, the Issuer will maintain in New York City, N.Y.
or in the City Minneapolis, MN, the following for each series: an office or
agency (a) where the Securities may be presented for payment, (b) where
the Securities may be presented for registration of transfer and for exchange
as in the Indenture provided and (c) where notices and demands to or upon
the Issuer in respect of the Securities or of the Indenture may be given or
served.  The Issuer will give to the
Trustee written notice of the location of any such office or agency and of any
change of location thereof.  Unless
otherwise specified in accordance with Section 2.03, the Issuer hereby
initially designates the Corporate Trust Office of the Trustee, as the office
to be maintained by it for each such purpose. 
In case the Issuer shall fail to so designate or maintain any such
office or agency or shall fail to give such notice of the location or of any
change in the location thereof, presentations and demands may be made and
notices may be served at the applicable Corporate Trust Office of the Trustee
and the Issuer hereby appoints the Trustee as its agent to receive all such
presentations, notices and demands.

 

Section 3.03.  Paying Agents.  Whenever the Issuer shall appoint
a paying agent other than the Trustee with respect to the Securities of any
series, it will cause such

 

19

 

paying agent to execute and deliver to the
Trustee an instrument in which such agent shall agree with the Trustee, subject
to the provisions of this Section,

 

(a)        that it will hold all sums
received by it as such agent for the payment of the principal of or interest on
the Securities of such series (whether such sums have been paid to it by the
Issuer or by any other obligor on the Securities of such series) in trust for
the benefit of the Holders of the Securities of such series or of the Trustee,

 

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

 

(c)        pay any such sums so held in
trust by it to the Trustee upon the Trustee’s written request at any time
during the continuance of the failure referred to in clause 3.03(b) above,
and

 

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

 

The Issuer shall, on or prior to each due date of the principal of or
interest on the Securities of such series, deposit with the paying agent a sum
sufficient to pay such principal or interest so becoming due, and (unless such
paying agent is the Trustee) the Issuer shall promptly notify the Trustee of
any failure to take such action.

 

If an Issuer shall act as its own paying agent with
respect to the Securities of any series, it will, on or before each due date of
the principal of or interest on the Securities of such series, set aside,
segregate and hold in trust for the benefit of the Holders of the Securities of
such series a sum sufficient to pay such principal or interest so becoming
due.  The Issuer will promptly notify the
Trustee of any failure to take such action.

 

Anything in this section to the contrary
notwithstanding, the Issuer may at any time, for the purpose of obtaining a
satisfaction and discharge with respect to one or more or all series of
Securities hereunder, or for any other reason, pay or cause to be paid to the
Trustee all sums held in trust for any such series by the Issuer or any paying
agent hereunder, as required by this Section, such sums to be held by the
Trustee upon the trusts herein contained.

 

Anything in this section to the contrary
notwithstanding, the agreement to hold sums in trust as provided in this
section is subject to the provisions of Section 9.05 and 9.06.

 

Section 3.04.  Certificate of the
Issuer.  The Issuer will
furnish to the Trustee on or before 120 days after the end of each fiscal year
(beginning with the fiscal year ended November 27, 2009) a brief
certificate (which need not comply with Section 10.05) from the principal
executive, financial or accounting officer or the Treasurer of the Issuer as to

 

20

 

his or her knowledge of the Issuer’s
compliance with all conditions and covenants under the Indenture (such
compliance to be determined without regard to any period of grace or
requirement of notice provided under the Indenture), or if there has been a
default, specifying the default and its nature and status.

 

Section 3.05.  Reports by the Issuer.  The Issuer will furnish to the
Trustee any document or report the Issuer is required to file with the
Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act within 15 days after such document or report is filed with the
Commission; provided that in the each case the delivery of materials to the
Trustee by electronic means or filing documents pursuant to the Commission’s “EDGAR”
system (or any successor electronic filing system) shall be deemed to
constitute “filing” with the Trustee for purposes of this Section 3.05.

 

Section 3.06. 
Limitation on Liens.  (a) With
respect to each series of Securities, the Issuer covenants not to create or incur any
Lien on any of its Properties, whether now owned or hereafter acquired, or upon
any income or profits therefrom, in order to secure any of its Indebtedness,
without effectively providing that such series of Securities shall be equally
and ratably secured until such time as such Indebtedness is no longer secured
by such Lien, except:

 

(i)    Liens existing as of the closing date of the
offering of the Securities;

 

(ii)   Liens granted after the closing date of the offering
of such series of Securities created in favor of the Holders of such series of
Securities;

 

(iii)  Liens securing the Issuer’s Indebtedness which are
incurred to extend, renew or refinance Indebtedness which is secured by Liens
permitted to be incurred under the Indenture so long as such Liens are limited
to all or part of substantially the same Property which secured the Liens
extended, renewed or replaced and of Indebtedness secured is not increased
(other than by the amount equal to any costs and expenses (including any
premiums, fees or penalties) incurred in connection with any extension, renewal
or refinancing); and

 

(iv)  Permitted Liens.

 

(b)        Notwithstanding Section 3.06(a),
the Issuer may, without securing any series of Securities, create or incur
Liens which would otherwise be subject to the restrictions set forth in the Section 3.06(a),
if after giving effect thereto, Aggregate Debt does not exceed 15% of
Consolidated Net Worth calculated as of the date of the creation or incurrence
of the Lien.

 

21

 

Section 3.07. 
Limitation on Sale and Lease-Back Transactions. (a) The
Issuer covenants not to enter into any sale and lease-back transaction for the
sale and leasing back of any Property, whether now owned or hereafter acquired,
unless:

 

(i)    such transaction was entered into prior to the
closing date of the offering of such series of Securities;

 

(ii)   such transaction was for the sale and leasing back
to the Issuer of any Property by one of its Subsidiaries;

 

(iii)  such transaction involves a lease for less than
three years;

 

(iv)  the Issuer would be entitled to incur Indebtedness
secured by a mortgage on the Property to be leased in an amount equal to the
Attributable Liens with respect to such sale and lease-back transaction without
equally and ratably securing the Securities pursuant to Section 3.06(a) above; or

 

(v)   the Issuer applies an amount equal to the fair value
of the Property sold to the purchase of Property or to the retirement of its
long-term Indebtedness within 270 days of the effective date of any such
sale and lease-back transaction. In lieu of applying such amount to such
retirement, the Issuer may deliver debt securities to the trustee therefor for
cancellation, such debt securities to be credited at the cost thereof to the
Issuer.

 

(b)        Notwithstanding Section 3.07(a),
the Issuer may enter into any sale and lease-back transaction which would
otherwise be subject to the foregoing restrictions if after giving effect
thereto and at the time of determination, Aggregate Debt does not exceed 15% of
Consolidated Net Worth calculated as of the closing date of the sale and
lease-back transaction.

 

Section 3.08.  Existence.  Except as permitted under Article 8, the
Issuer covenants to do or cause to be done all things necessary to preserve and
keep in full force and effect its existence, rights and franchises; provided,
however, that the Issuer shall not be required to preserve any right or
franchise if it determines that its preservation is no longer desirable in the
conduct of business.

 

Section 3.09.  Certain Definitions.  As used in Sections 3.06, 3.07 and 3.08, the
following terms have the meanings set forth below.

 

“Aggregate Debt” means the sum of the following as of the
date of determination:

 

(1)           the aggregate principal amount of the Issuer’s Indebtedness
incurred after the closing date and secured by Liens not permitted by the first
sentence under Section 3.06(a), and

 

22

 

(2)           the Issuer’s Attributable Liens in respect of sale and
lease-back transactions entered into after the closing date pursuant to Section 3.07(b).

 

“Attributable Liens” means in connection with a sale and
lease-back transaction the lesser of:

 

(1)           the fair market value of the assets subject to such
transaction (as determined in good faith by the Board of Directors of the
Issuer); and

 

(2)           the present value (discounted at a rate per annum
equal to the average interest borne by all Outstanding Securities of each
series issued under the Indenture determined on a weighted average basis and
compounded semi-annually) of the obligations of the lessee for rental payments
during the term of the related lease.

 

“Capital Lease” means any Indebtedness represented by a
lease obligation of a Person incurred with respect to real property or equipment
acquired or leased by such Person and used in its business that is required to
be recorded as a capital lease in accordance with GAAP.

 

“Consolidated Net Worth” means, as of any date of determination,
the Stockholders’ Equity of the Issuer and its Consolidated Subsidiaries on
that date.

 

“Consolidated Subsidiary” means, as of any date of determination
and with respect to any Person, any Subsidiary of that Person whose financial
data is, in accordance with GAAP, reflected in that Person’s consolidated financial
statements.

 

“GAAP” means generally accepted accounting
principles set forth in the opinions and pronouncements of the Public Company
Accounting Oversight Board (United States) and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession, which are in effect as of the date of determination.

 

“Hedging Obligations” means, with respect to any specified
Person, the obligations of such Person under:

 

(1)           interest rate swap agreements (whether from fixed to
floating or from floating to fixed), interest rate cap agreements and interest
rate collar agreements;

 

(2)           other agreements or arrangements designed to manage interest
rates or interest rate risk;

 

(3)           other agreements or arrangements designed to protect
such Person against fluctuations in currency exchange rates or commodity
prices; and

 

23

 

(4)           other agreements or arrangements designed to protect
such Person against fluctuations in equity prices.

 

“Indebtedness” of any specified Person means, without
duplication, any indebtedness, whether or not contingent, in respect of
borrowed money or evidenced by bonds, notes, debentures or similar instruments
or letters of credit (or reimbursement agreements with respect thereto) or
representing the balance deferred and unpaid of the purchase price of any
Property (including pursuant to Capital Leases), except any such balance that
constitutes an accrued expense or trade payable, if and to the extent any of
the foregoing indebtedness would appear as a liability upon an unconsolidated
balance sheet of such Person (but does not include contingent liabilities which
appear only in a footnote to a balance sheet).

 

“Lien” means any lien, security interest,
charge or encumbrance of any kind (including any conditional sale or other
title retention agreement, any lease in the nature thereof, and any agreement
to give any security interest).

 

“Permitted Liens” means:

 

(1)           Liens on any of the Issuer’s assets, created solely to
secure obligations incurred to finance the refurbishment, improvement or
construction of such asset, which obligations are incurred no later than 18 months
after completion of such refurbishment, improvement or construction, and all
renewals, extensions, refinancings, replacements or refundings of such
obligations;

 

(2)           (a) Liens given to secure the payment of the
purchase price incurred in connection with the acquisition (including
acquisition through merger or consolidation) of Property (including shares of
stock), including Capital Lease transactions in connection with any such
acquisition, and (b) Liens existing on Property at the time of acquisition
thereof or at the time of acquisition by the Issuer of any Person then owning
such Property whether or not such existing Liens were given to secure the
payment of the purchase price of the Property to which they attach; provided
that, with respect to clause (a), the Liens shall be given within 18
months after such acquisition and shall attach solely to the Property acquired
or purchased and any improvements then or thereafter placed thereon;

 

(3)           Liens in favor of customs and revenue authorities
arising as a matter of law to secure payment of customs duties in connection
with the importation of goods;

 

(4)           Liens for taxes not yet due or that are being
contested in good faith by appropriate proceedings, provided that adequate
reserves with respect thereto are maintained on the Issuer’s books in
conformity with GAAP;

 

24

 

(5)           Liens securing reimbursement obligations with respect
to letters of credit that encumber documents and other Property relating to
such letters of credit and the products and proceeds thereof;

 

(6)           Liens encumbering customary initial deposits and
margin deposits and other Liens in the ordinary course of business, in each
case securing Hedging Obligations and forward contracts, options, futures
contracts, futures options, equity hedges or similar agreements or arrangements
designed to protect the Issuer from fluctuations in interest rates, currencies,
equities or the price of commodities;

 

(7)           Liens in favor of only the Issuer or one or more of
its Subsidiaries;

 

(8)           inchoate Liens incident to construction or maintenance
of real property, or Liens incident to construction or maintenance of real
property, now or hereafter filed of record for sums not yet delinquent or being
contested in good faith, if reserves or other appropriate provisions, if any,
as shall be required by GAAP shall have been made therefor;

 

(9)           statutory Liens arising in the ordinary course of
business with respect to obligations which are not delinquent or are being
contested in good faith, if reserves or other appropriate provisions, if any,
as shall be required by GAAP shall have been made therefor;

 

(10)         Liens consisting of pledges or deposits to secure
obligations under workers’ compensation laws or similar legislation, including
Liens of judgments thereunder which are not currently dischargeable;

 

(11)         Liens consisting of pledges or deposits of Property to
secure performance in connection with operating leases made in the ordinary
course of business to which the Issuer is a party as lessee, provided the
aggregate value of all such pledges and deposits in connection with any such
lease does not at any time exceed 162/3% of the annual fixed rentals payable under such
lease;

 

(12)         Liens consisting of deposits of Property to secure the
Issuer’s statutory obligations in the ordinary course of its business; and

 

(13)         Liens consisting of deposits of Property to secure (or
in lieu of) surety, appeal or customs bonds in proceedings to which the Issuer
is a party in the ordinary course of its business, but not in excess of
$25,000,000.

 

“Property” means any property or asset, whether
real, personal or mixed, or tangible or intangible, including shares of capital
stock.

 

25

 

“Stockholders’ Equity” means, as of any date of determination,
stockholders’ equity as reflected on the most recent consolidated balance sheet
available to the Issuer prepared in accordance with GAAP.

 

“Subsidiary” of any specified Person means any corporation,
limited liability company, limited partnership, association or other business
entity of which more than 50% of the total voting power of shares of capital
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person or a combination thereof.

 

ARTICLE
4

REMEDIES OF THE TRUSTEE AND HOLDERS ON EVENT OF
DEFAULT

 

Section 4.01.  Event of Default; Acceleration of Maturity;
Waiver of Default. An “Event of Default”
with respect to Securities of any series means the occurrence of one or more of
the following events (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

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

 

(b)        default in the payment of
the principal, or premium, if any, on any of the Securities of such series as
and when the same shall become due and payable either at maturity, upon
redemption, by declaration or otherwise;

 

(c)        default in the performance,
or breach, of any covenant or warranty of the Issuer in respect of the Securities
of such series (other than defaults pursuant to paragraphs (a) and (b) above),
and continuance of such default or breach for a period of 90 days or more after
there has been given, by registered or certified mail, to the Issuer by the
Trustee or to the Issuer and the Trustee by the Holders of at least 25% in
principal amount of the Securities of all such series affected that is then
outstanding (all such series voting together as a single class) thereby, 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;

 

(d)        a court having jurisdiction
in the premises shall enter a decree or order for relief in respect of the
Issuer or any Significant Subsidiary in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee or
sequestrator (or similar

 

26

 

official) of the Issuer or
for any substantial part of its Property or for any Significant Subsidiary or
ordering the winding up or liquidation of its affairs or the affairs of the
Issuer or any Significant Subsidiary, and such decree or order shall remain
unstayed and in effect for a period of 60 consecutive days;

 

(e)        the Issuer or any
Significant Subsidiary shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
consent to the entry of an order for relief in an involuntary case under any
such law, or consent to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee or sequestrator (or similar official)
of the Issuer or for any substantial part of its Property or for any
Significant Subsidiary, or make any general assignment for the benefit of
creditors;

 

(f)        (i) a failure to make any payment at maturity, including any
applicable grace period on any of the Issuer’s Indebtedness in an amount in
excess of $100,000,000 and continuance of this failure to pay or (ii) a default
on any of the Issuer’s Indebtedness which default results in the acceleration
of Indebtedness in an amount in excess of $100,000,000 without such
Indebtedness having been discharged or the acceleration having been cured,
waived, rescinded or annulled, for a period of, in the case of clause (i) or
(ii) above, 30 days or more after written notice thereof to the Issuer by the
Trustee or to the Issuer and the Trustee by the Holders of at least 25% in
principal amount of the Securities then outstanding (all voting together as a
single class) thereby; provided, however, that if the
failure, default or acceleration referred to in clause (i) or (ii) above shall
cease or be cured, waived, rescinded or annulled, then the Event of Default
shall be deemed cured; or

 

(g)        any other Event of Default
provided in the Officer’s Certificate, supplemental indenture or Resolution of
the Board of Directors under which such series of Securities is issued or in
the form of Security for such series.

 

If an
Event of Default described in clauses 4.01(a), 4.01(b), 4.01(c), 4.01(f) or
4.01(g) above (if the Event of Default under clause 4.01(c) is with
respect to less than all series of Securities then Outstanding) occurs and is
continuing, then, and in each and every such case, unless the principal of all
of the Securities of such series shall have already become due and payable, the
Trustee may, and at the direction of the Holders of not less than 25% in aggregate
principal amount of the Securities of each such series affected that is then
Outstanding hereunder (each such series voting together as a single class) by
notice in writing to the Issuer (and to the Trustee if given by Holders), shall
declare the entire principal (or, if the Securities of such series are Original
Issue Discount Securities, such portion of the principal amount as may be
specified in the terms of such series) of all Outstanding Securities of each
such series, together with all accrued and unpaid interest and premium, if any,
to be due and payable immediately, and upon any such declaration the same shall
become immediately due and payable.

 

If an
Event of Default described in clauses 4.01(d) or 4.01(e) above occurs
and is continuing, then the entire principal amount of the Outstanding
Securities will automatically become due immediately and payable without any
declaration or other act on the part of the Trustee or any Holder.

 

Notwithstanding
the foregoing, the Holders of a majority in principal amount of all series of
the Outstanding Securities affected (all such series voting together as a
single class) by written notice to the Issuer and to the Trustee may on behalf
of the Holders of all Securities of such series waive all past defaults and
rescind and annul a declaration of acceleration and its consequences if:

 

27

 

(i)    all existing Events of Default, other than the
nonpayment of the principal of and interest on the Securities that have become
due solely by the declaration of acceleration, have been cured or waived, and

 

(ii)   the rescission would not conflict with any judgment
or decree.

 

For
all purposes under the Indenture, if a portion of the principal of any Original
Issue Discount Securities shall have been accelerated and declared due and
payable pursuant to the provisions hereof, then, from and after such
declaration, unless such declaration has been rescinded and annulled, the
principal amount of such Original Issue Discount Securities shall be deemed,
for all purposes hereunder, to be such portion of the principal thereof as
shall be due and payable as a result of such acceleration, and payment of such
portion of the principal thereof as shall be due and payable as a result of such
acceleration, together with interest, if any, thereon and all other amounts
owing thereunder, shall constitute payment in full of such Original Issue
Discount Securities.

 

Section 4.02.  Collection of Indebtedness by Trustee;
Trustee May Prove Debt.  The
Issuer covenants that (a) in case default shall be made in the payment of
any installment of interest on any of the Securities of any series when such
interest shall have become due and payable, and such default shall have
continued for a period of 30 days or (b) in case default shall be made in
the payment of all or any part of the principal of any of the Securities of any
series when the same shall have become due and payable, whether upon maturity
of the Securities of such series or upon any redemption or by declaration or
otherwise—then upon demand of the Trustee, the Issuer will pay to the Trustee
for the benefit of the Holders of the Securities of such series the whole
amount that then shall have become due and payable on all Securities of such
series for principal or interest, as the case may be (with interest to the date
of such payment upon the overdue principal and, to the extent that payment of
such interest is enforceable under applicable law, on overdue installments of
interest at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in the Securities of such
series); and in addition thereto, such further amount as shall be sufficient to
cover the costs and expenses of collection, including reasonable compensation
to the Trustee and each predecessor Trustee, their respective agents, attorneys
and counsel, and any expenses and liabilities incurred by the Trustee and each
predecessor Trustee except as a result of its negligence or bad faith.

 

Until
such demand is made by the Trustee, the Issuer may pay the principal of and
interest on the Securities of any series to the Holders, whether or not the
principal of and interest on the Securities of such series be overdue.

 

In
case the Issuer shall fail forthwith to pay such amounts upon such demand, the
Trustee, in its own name and as trustee of an express trust, shall be entitled
and empowered to institute any action or proceedings at law or in equity for
the collection of the sums so due and unpaid, and may prosecute any such action
or proceedings to

 

28

 

judgment or final decree, and may enforce any such judgment or final
decree against the Issuer or other obligor upon such Securities and collect in
the manner provided by law out of the Property of the Issuer or other obligor
upon such Securities, wherever situated, the moneys adjudged or decreed to be
payable.

 

In
case there shall be pending proceedings relative to the Issuer or any other
obligor upon the Securities under Bankruptcy Law, or in case a receiver,
assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator
or similar official shall have been appointed for or taken possession of the
Issuer or its Property or such other obligor, or in case of any other
comparable judicial proceedings relative to the Issuer or other obligor upon
the Securities of any series, or to the creditors or Property of the Issuer or
such other obligor, the Trustee, irrespective of whether the principal of any
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
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such proceedings or otherwise:

 

(a)           to file and
prove a claim or claims for the whole amount of principal and interest (or, if
the Securities of any series are Original Issue Discount Securities, such
portion of the principal amount as may be specified in the terms of such
series) owing and unpaid in respect of the Securities of any series, 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 reasonable
compensation to the Trustee and each predecessor Trustee, and their respective
agents, attorneys and counsel, and for reimbursement of all expenses and
liabilities incurred, and all advances made, by the Trustee and each
predecessor Trustee, except as a result of negligence or bad faith) and of the
Holders allowed in any judicial proceedings relative to the Issuer or other
obligor upon the Securities of any series, or to the creditors or Property of
the Issuer or such other obligor,

 

(b)           unless
prohibited by applicable law and regulations, to vote on behalf of the Holders
of the Securities of any series in any election of a trustee or a standby
trustee in arrangement, reorganization, liquidation or other bankruptcy or
insolvency proceedings or Person performing similar functions in comparable
proceedings, and

 

(c)           to collect and
receive any moneys or other property payable or deliverable on any such claims,
and to distribute all amounts received with respect to the claims of the
Holders and of the Trustee on their behalf; and any trustee, receiver, or
liquidator, custodian or other similar official is hereby authorized by each of
the Holders to make payments to the Trustee, and, in the event that the Trustee
shall consent to the making of payments directly to the Holders, to pay to the
Trustee such amounts as shall be sufficient to cover reasonable compensation

 

29

 

to
the Trustee, each predecessor Trustee and their respective agents, attorneys
and counsel, and all other expenses and liabilities incurred, and all advances
made, by the Trustee and each predecessor Trustee except as a result of
negligence or bad faith and all other amounts due to the Trustee or any
predecessor Trustee pursuant to Section 5.07.

 

Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or vote for or accept or adopt on behalf of any Holder any plan or
reorganization, arrangement, adjustment or composition affecting the Securities
of any series or the rights of any Holder thereof, or to authorize the Trustee
to vote in respect of the claim of any Holder in any such proceeding except, as
aforesaid, to vote for the election of a trustee in bankruptcy or similar
Person.

 

All
rights of action and of asserting claims under the Indenture, or under any of
the Securities, may be enforced by the Trustee without the possession of any of
the Securities or the production thereof on any trial or other proceedings
relative thereto, and any such action or proceedings instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery of judgment, subject to the payment of the reasonable expenses,
disbursements and compensation of the Trustee, each predecessor Trustee and
their respective agents and attorneys, shall be for the ratable benefit of the
holders of the Securities in respect of which such action was taken.

 

In any
proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of the Indenture to which the Trustee shall be
a party) the Trustee shall be held to represent all the Holders of the
Securities in respect to which such action was taken, and it shall not be
necessary to make any Holders of such Securities parties to any such
proceedings.

 

Section 4.03.  Application of Proceeds.  Any moneys collected by the
Trustee pursuant to this Article in respect of any series shall be applied
in the following order at the date or dates fixed by the Trustee and, in case
of the distribution of such moneys on account of principal or interest, upon
presentation of the several Securities in respect of which moneys have been
collected and stamping (or otherwise noting) thereon the payment, or issuing
Securities of such series in reduced principal amounts in exchange for the
presented Securities of like series if only partially paid, or upon surrender
thereof if fully paid:

 

FIRST:  To the payment of costs and expenses
applicable to such series in respect of which moneys have been collected, including
reasonable compensation to the Trustee and each predecessor Trustee and their
respective agents and attorneys and of all expenses and liabilities incurred by
the Trustee and each predecessor Trustee except as a result of negligence or
bad faith, and all other amounts due to the Trustee or any predecessor Trustee
pursuant to Section 5.07;

 

30

 

SECOND:  In case the principal of the Securities of
such series in respect of which moneys have been collected shall not have
become and be then due and payable, to the payment of interest on the
Securities of such series in default in the order of the maturity of the
installments of such interest, with interest (to the extent that such interest
has been collected by the Trustee) upon the overdue installments of interest at
the same rate as the rate of interest or Yield to Maturity (in the case of
Original Issue Discount Securities) specified in such Securities, such payments
to be made ratably to the Persons entitled thereto, without discrimination or
preference;

 

THIRD:
In case the principal of the Securities of such series in respect of which
moneys have been collected shall have become and shall be then due and payable,
to the payment of the whole amount then owing and unpaid upon all the
Securities of such series for principal and interest, with interest upon the
overdue principal, and (to the extent that such interest has been collected by
the Trustee) upon overdue installments of interest at the same rate as the rate
of interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in the Securities of such series; and in case such moneys
shall be insufficient to pay in full the whole amount so due and unpaid upon
the Securities of such series, then to the payment of such principal and
interest or Yield to Maturity, without preference or priority of principal over
interest or Yield to Maturity, or of interest or Yield to Maturity over
principal, or of any installment of interest over any other installment of
interest, or of any Security of such series over any other Security of such
series, ratably to the aggregate of such principal and accrued and unpaid
interest or Yield to Maturity; and

 

FOURTH:  To the payment of the remainder, if any, to
the Issuer or any other Person lawfully entitled thereto.

 

Section 4.04.  Suits for Enforcement.  In case an Event of Default has
occurred, has not been waived and is continuing, the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by the
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in the Indenture or in aid of the exercise
of any power granted in the Indenture or to enforce any other legal or
equitable right vested in the Trustee by the Indenture or by law.

 

Section 4.05.  Restoration of Rights on Abandonment of
Proceedings.  In case the
Trustee shall have proceeded to enforce any right under the Indenture and such
proceedings shall have been discontinued or abandoned for any reason, or shall
have been determined adversely to the Trustee, then and in every such case the
Issuer and the Trustee shall be restored respectively to their former positions
and rights hereunder, and

 

31

 

all rights, remedies and powers of the Issuer, the Trustee and the Holders
shall continue as though no such proceedings had been taken.

 

Section 4.06.  Limitations on Suits by Holder.  No Holder of any Security of any series shall
have any right by virtue or by availing of any provision of the Indenture to
institute any action or proceeding at law or in equity or in bankruptcy or
otherwise upon or under or with respect to the Indenture, or for the
appointment of a trustee, receiver, liquidator, custodian or other similar
official or for any other remedy hereunder, unless (i) such Holder
previously shall have given to the Trustee written notice of default and of the
continuance thereof, as hereinbefore provided; (ii) the Holders of not
less than 25% in aggregate principal amount of the Securities of each such
series affected that is then Outstanding (voting together as a single class)
shall have made written request upon the Trustee to institute such action or
proceedings in its own name as Trustee hereunder; (iii) such Holder or
Holders shall have offered to the Trustee such security or indemnity as it may
reasonably require against the costs, expenses and liabilities to be incurred
in compliance with such request; (iv) the Trustee for 60 days after its
receipt of such notice, request and offer of indemnity shall have failed to
institute any such action or proceeding; and (v) no direction inconsistent
with such written request shall have been given to the Trustee during such
60-day period by the Holders of a majority in aggregate principal amount of the
Securities of each series affected then Outstanding.  It is understood and intended, and expressly
covenanted by the taker and Holder of every Security with every other taker and
Holder and the Trustee, that no one or more Holders of any series shall have
any right in any manner whatever by virtue or by availing of any provision of
the Indenture to affect, disturb or prejudice the rights of any other such
Holder, or to obtain or seek to obtain priority over or preference to any other
such Holder or to enforce any right under the Indenture, except in the manner
herein provided and for the equal, ratable and common benefit of all Holders of
the applicable series.  For the
protection and enforcement of the provisions of this Section, each and every
Holder and the Trustee shall be entitled to such relief as can be given either
at law or in equity.

 

Section 4.07.  Unconditional Right of Holders to Institute
Certain Suits.  Notwithstanding any
other provision in the Indenture and any provision of any Security, the right
of any Holder of any Security to receive payment of the principal of and
interest on such Security on or after the respective due dates expressed in
such Security, or to institute suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

 

Section 4.08.  Powers and Remedies Cumulative; Delay or
Omission Not Waiver of Default.  Except
as provided in Section 4.06, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any

 

32

 

right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right
or remedy.

 

No delay
or omission of the Trustee or of any Holder to exercise any right or power
accruing upon any Event of Default occurring and continuing as aforesaid shall
impair any such right or power or shall be construed to be a waiver of any such
Event of Default or an acquiescence therein; and, subject to Section 4.06,
every power and remedy given by the Indenture or by law to the Trustee or to
the Holders may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by the Holders.

 

Section 4.09.  Control by Holders.  The Holders of a majority in aggregate
principal amount of the Securities of each series affected (voting together as
a single class) at the time Outstanding 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 each such series by the Indenture; provided,
however, that such direction shall not be otherwise than in accordance
with law and the provisions of the Indenture. Subject to the provisions of Section 5.01,
the Trustee shall have the right to decline to follow any such direction if the
Trustee, being advised by counsel, shall determine that the action or
proceeding so directed may not lawfully be taken or if the Trustee in good
faith shall determine that the action or proceedings so directed would involve
the Trustee in personal liability or if the Trustee in good faith shall
determine that the actions or forbearances specified in or pursuant to such
direction would be unduly prejudicial to the interests of Holders of the
Securities of all series so affected not joining in the giving of said
direction, it being understood that (subject to Section 5.01) the Trustee
shall have no duty to ascertain whether or not such actions or forbearances are
unduly prejudicial to such Holders.

 

Nothing
in the Indenture shall impair the right of the Trustee in its discretion to
take any action deemed proper by the Trustee and which is not inconsistent with
such direction or directions by Holders.

 

Section 4.10.  Waiver of Past Defaults.  Except as otherwise provided in
Sections 4.01, 4.07 and 7.02 the Holders of a majority in aggregate
principal amount of the Outstanding Securities of one or more series (voting
together as a single class) may, by notice to the Trustee, on behalf of the
Holders of all Securities of each such series waive an existing default and its
consequences.  Upon such waiver, the
default will cease to exist, and any Event of Default arising therefrom will be
deemed to have been cured, but no such waiver will extend to any subsequent or
other default or impair any right consequent thereon.

 

Section 4.11.  Trustee to Give Notice of Default, But May Withhold
in Certain Circumstances.  The
Trustee shall give to the Holders of any series, as the names and addresses of
such Holders appear on the Register, notice by mail of all defaults known to
the Trustee which have occurred with respect to such series, such notice to be
transmitted

 

33

 

within 45 days after the occurrence thereof, unless
such defaults shall have been cured before the giving of such notice (the term “default”
or “defaults” for the purposes of this section being hereby defined to mean any
event or condition which is, or with notice or lapse of time or both would
become, an Event of Default); provided that, except in the case of default in
the payment of the principal of or interest on any of the Securities of such
series, or in the payment of any sinking or purchase fund installment with
respect to the 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 trust committee of directors or trustees and/or responsible
officers of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Holders of such series.

 

Section 4.12.  Right of Court to Require Filing of
Undertaking to Pay Costs.  In any
suit for the enforcement of any right or remedy under the Indenture or in any
suit against the Trustee for any action taken or omitted by it as Trustee, a
court may require any party litigant in such suit (other than the Trustee) to
file an undertaking to pay the costs of the suit, and the court may assess
reasonable costs, including reasonable attorneys fees, against any party
litigant (other than the Trustee) in the suit having due regard to the merits
and good faith of the claims or defenses made by the party litigant.  This Section does not apply to a suit by
a Holder to enforce payment of principal of or interest on any Security on the
respective due dates.

 

ARTICLE
5

CONCERNING THE TRUSTEE

 

Section 5.01.  Duties and Responsibilities of the Trustee;
During Default; Prior to Default.  (a) The
duties and responsibilities of the Trustee are as provided by the Trust
Indenture Act and as set forth herein. 
Whether or not expressly so provided, every provision of the Indenture
relating to the conduct or affecting the liability of or affording protection
to the Trustee is subject to this Article.

 

(b)           Except during the continuance of an Event of
Default, the Trustee need perform only those duties that are specifically set
forth in the Indenture and no others, and no implied covenants or obligations
will be read into the Indenture against the Trustee.  In case an Event of Default of which a
Responsible Officer shall have actual knowledge or shall have received written
notice from the Issuer or any Holder of Securities of any series has occurred
and is continuing, the Trustee shall exercise those rights and powers vested in
it by the 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 the 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.

 

34

 

Section 5.02.  Trustee’s Obligations with Respect to the Covenants.  The Trustee shall not be obligated to monitor
or confirm, on a continuing basis or otherwise, the Issuer’s compliance with the
covenants contained in Article 4 or with respect to any reports or other
documents filed under the Indenture; provided, however, that
nothing herein shall relieve the Trustee of any obligations to monitor the Issuer’s
timely delivery
of all reports and certificates required under Sections 3.04 and 3.05 of the
Indenture and to fulfill its obligations under Article 5 hereof.

 

Section 5.03.  Moneys Held by Trustee.  Subject to the provisions of Section 9.06
hereof, all moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were
received, but need not be segregated from other funds except to the extent
required by law.  Neither the Trustee nor
any agent of the Issuer or the Trustee shall be liable for interest on any
money received by it hereunder except such as it may agree with the Issuer in
writing to pay thereon.

 

Section 5.04.  Reports by the Trustee to Holders.  Within 60 days after each May 15,
beginning with May 15, 2010, the Trustee will mail to each Holder, as
provided in Trust Indenture Act Section 313(c), a brief report dated as of
such May 15, if required by Trust Indenture Act Section 313(a), and
file such reports with each stock exchange upon which its Securities are listed
and with the Commission if, and to the extent, required by Trust Indenture Act Section 313(d).

 

The
Trustee shall comply with Section 313(b) and 313(c) of the Trust
Indenture Act.

 

A copy
of each such report shall, at the time of such transmission to Holders, be filed
by the Trustee with the Issuer, with each stock exchange upon which any
Securities are listed (if so listed) and also with the Commission.

 

Section 5.05.  Certain Rights of the
Trustee.  Subject to Trust
Indenture Act Sections 315(a) through (d):

 

(a)        In the absence of bad faith
on its part, the Trustee may rely, and will be protected in acting or
refraining from acting, upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
Person.  The Trustee need not investigate
any fact or matter stated in the document, but, in the case of any document
which is specifically required to be furnished to the Trustee pursuant to any
provision hereof, the Trustee shall examine the document to determine whether
it conforms to the requirements of the Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein).  The Trustee, in its
discretion, may make further inquiry or investigation into such facts or
matters as it sees fit.

 

35

 

(b)        Before the Trustee acts or
refrains from acting, it may require an Officer’s Certificate or an Opinion of
Counsel conforming to Section 10.05 and the Trustee will not be liable for
any action it takes or omits to take in good faith in reliance on the certificate
or opinion.

 

(c)        The Trustee may act through
its attorneys and agents and will not be responsible for the misconduct or
negligence of any attorney or agent appointed by the Trustee with due care.

 

(d)        The Trustee will be under no
obligation to exercise any of the rights or powers vested in it by the
Indenture or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request or direction of any of the Holders, unless such
Holders have offered to the Trustee security or indemnity as it may reasonably
require against the costs, expenses and liabilities that might be incurred by
it in compliance with such request or direction.

 

(e)        The Trustee will not be
liable in its individual capacity for any action it takes, suffers or omits to
take in good faith that it believes to be authorized or within its rights or
powers or for any action it takes or omits to take in accordance with the
direction of the Holders in accordance with Section 4.09 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
the Indenture.

 

(f)         The Trustee may consult with
counsel, and any advice of such counsel or any Opinion of Counsel will 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.

 

(g)        No provision of the
Indenture will require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of its duties hereunder, or in
the exercise of its rights or powers, unless it receives indemnity satisfactory
to it against any loss, liability or expense.

 

(h)        The Trustee shall not be
liable in its individual capacity for an error in judgment made in good faith
by a Responsible Officer or other officers of the Trustee, unless it shall be
proved that the Trustee was negligent in ascertaining the pertinent facts.

 

(i)         The Trustee shall not be personally
liable for any action taken, suffered or omitted by it in good faith and
believed by it to be authorized or within the discretion or rights or powers
conferred upon it by the Indenture.

 

(j)         The Trustee shall have no
duty to see to any recording, filing or depositing of the Indenture or any
agreement referred to herein or any financing statement or 

 

36

 

continuation statement
evidencing a security interest, or to see to the maintenance of any such
re-recording or re-filing or re-depositing thereof.

 

(k)        The Trustee shall not be
required to take notice or be deemed to have notice or knowledge of any default
or Event of Default unless a Responsible Officer of the Trustee shall have
received written notice from the Issuer or any Holder of the Securities or
obtained actual knowledge thereof.  In
the absence of receipt of such notice or actual knowledge, the Trustee may
conclusively assume that there is no default or Event of Default.

 

Section 5.06.  Trustee and Agents May Hold Securities;
Collections, etc.  The Trustee
or any agent of the Issuer or the Trustee, in its individual or any other
capacity, may become the owner or pledgee of Securities with the same rights it
would have if it were not the Trustee or such agent and may otherwise deal with
the Issuer and receive, collect, hold and retain collections from the Issuer
with the same rights it would have if it were not the Trustee or such agent.

 

Section 5.07.  Compensation and Indemnification of Trustee
and Its Prior Claim.  (a) The
Issuer will pay the Trustee compensation as agreed upon in writing for its
services.  The compensation of the
Trustee is not limited by any law on compensation of a trustee of an express
trust.  The Issuer will reimburse the
Trustee upon request for all reasonable out-of-pocket expenses, disbursements
and advances incurred or made by the Trustee, (including the reasonable
compensation and the expenses and disbursements of its counsel and of all
agents and other Persons not regularly in its employ) except to the extent any
such expense, disbursement or advance may arise from its negligence or bad
faith.  The Issuer also covenants to
indemnify the Trustee, its directors, officers, employees and agents and each
predecessor Trustee, its directors, officers, employees and agents for, and to
hold each of them harmless against, any loss, liability or expense arising out
of or in connection with the acceptance or administration of the Indenture or
the trusts hereunder and the performance of its duties hereunder and under the
Securities, including the costs and expenses of defending itself against or
investigating any claim of liability in the premises and the costs and expenses
of defending itself against any claim or liability and of complying with any
process served upon it or any of its officers, except to the extent such loss
liability or expense is due to the negligence or bad faith of the Trustee or
such predecessor Trustee.

 

Anything
in the Indenture to the contrary notwithstanding, in no event shall the Trustee
be liable for special, indirect or consequential loss or damage of any kind
whatsoever (including but not limited to lost profits) unless
it shall be proved that the Trustee acted in bad faith or was grossly negligent
in acting or failing to act.

 

(b)           To secure the Issuer’s payment obligations in this
Section, the Trustee will have a lien prior to the Securities on all money or
Property held or collected by the 

 

37

 

Trustee, in its capacity as Trustee, except money or
Property held in trust to pay principal of, and interest on particular
Securities.

 

The
obligations of the Issuer under this Section 5.07 shall survive the
resignation and removal of the Trustee and payment of the Securities, and shall
extend to any co-trustee or separate trustee.

 

Section 5.08.  Right of Trustee to Rely on Officer’s
Certificate, etc.  Subject to
Sections 5.01 and 5.05, whenever in the administration of the trusts of the
Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the
part of the Trustee, be deemed to be conclusively proved and established by an
Officer’s Certificate delivered to the Trustee, and such certificate, in the
absence of negligence or bad faith on the part of the Trustee, shall be full warrant
to the Trustee for any action taken, suffered or omitted by it under the
provisions of the Indenture upon the faith thereof.

 

Section 5.09.  Disqualification; Conflicting Interests.
If the Trustee has or shall acquire any “conflicting interest” within the
meaning of Section 310(b) of the Trust Indenture Act, the Trustee and
the Issuer shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

 

Section 5.10.  Persons Eligible for Appointment as
Trustee.  The Indenture must
always have a Trustee that satisfies the requirements of Trust Indenture Act Section 310(a) and
has a combined capital and surplus of at least $25,000,000 as set forth in its
most recent published annual report of condition.

 

Section 5.11.  Resignation and Removal;
Appointment of Successor Trustee.  (a) The
Trustee, or any trustee or trustees hereafter appointed, may at any time resign
with respect to one or more or all series of Securities by giving written
notice of resignation to the Issuer and by mailing notice thereof by first
class mail to Holders of the applicable series of Securities at their last
addresses as they shall appear on the Register. 
Upon receiving such notice of resignation, the Issuer shall promptly
appoint a successor trustee or trustees with respect to the applicable series
by written instrument in duplicate, executed by authority of the Board of
Directors, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor trustee or trustees.  If no successor trustee shall have been so
appointed with respect to any series and have accepted appointment within 30
days after the mailing of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee, or any Holder who has been a bona fide
Holder of a Security or Securities of the applicable series for at least six
months may, subject to the provisions of Section 4.12, on behalf of
himself and all others similarly situated, petition any such 

 

38

 

court for the appointment of a successor trustee.  Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, appoint a successor trustee.

 

(b)              In case at any time any of
the following shall occur:

 

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

 

(ii)        the Trustee shall cease to be eligible in accordance
with the provisions of Section 310(a) of the Trust Indenture Act and
shall fail to resign after written request therefor by the Issuer or by any
Holder; or

 

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

 

then, in any such case, the Issuer may remove the Trustee with respect
to the applicable series of Securities and appoint a successor trustee for such
series by written instrument, in duplicate, executed by order of the Board of
Directors of the Issuer, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee, or any Holder who has
been a bona fide Holder of a Security or
Securities of such series for at least six months may on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor trustee with
respect to such series.  Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee.

 

(c)           The Holders of a majority in aggregate principal
amount of the Securities of each series at the time Outstanding may at any time
remove the Trustee with respect to Securities of such series and appoint a
successor Trustee with respect to the Securities of such series with the
consent of the Issuer by delivering to the Trustee so removed, to the successor
Trustee so appointed and to the Issuer the evidence provided for in Section 6.01
of the action in that regard taken by the Holders.

 

(d)           Any resignation or removal of the Trustee with
respect to any series and any appointment of a successor Trustee with respect
to such series pursuant to any of the provisions of this Section 5.11
shall become effective upon acceptance of appointment by the successor Trustee
as provided in Section 5.12.

 

39

 

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

 

Section 5.12.  Acceptance of Appointment by Successor.  Any successor Trustee appointed as
provided in Section 5.11 shall execute and deliver to the Issuer and to
its predecessor Trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor Trustee with respect to
all or any applicable series shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all
rights, powers, duties and obligations with respect to such series of its
predecessor hereunder, with like effect as if originally named as trustee for
such series hereunder; but, nevertheless, on the written request of the Issuer
or of the successor Trustee, upon payment of its charges then unpaid, the
trustee ceasing to act shall, subject to Section 9.06, pay over to the
successor Trustee all moneys at the time held by it hereunder and shall execute
and deliver an instrument transferring to such successor Trustee all such
rights, powers, duties and obligations.

 

If a
successor Trustee is appointed with respect to the Securities of one or more
(but not all) series, the Issuer, the predecessor Trustee and each successor
Trustee with respect to the Securities of any applicable series shall execute
and deliver an indenture supplemental hereto prepared by and at the expense of
the Issuer which (1) shall contain such provisions as shall be deemed
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the 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 (3) shall add
to or change any of the provisions of the 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 under
separate indentures.

 

Upon
acceptance of appointment by any successor Trustee as provided in this Section 5.12,
the Issuer shall mail notice thereof by first-class mail to the Holders of any
series for which such successor Trustee is acting as trustee at their last
addresses as they shall appear in the Register. 
If the acceptance of appointment is substantially contemporaneous with
the resignation, then the notice called for by the preceding sentence may be
combined with the notice called for by Section 5.11.  If the Issuer fails to mail such notice
within ten days after acceptance of appointment by the successor Trustee, the
successor Trustee shall cause such notice to be mailed at the expense of the
Issuer.

 

40

 

Section 5.13.  Merger, Conversion, Consolidation or
Succession to Business of Trustee.  If
the Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation or
national banking association, the resulting, surviving or transferee
corporation or national banking association without any further act will be the
successor Trustee with the same effect as if the successor Trustee had been
named as the Trustee in the Indenture.

 

In
case at the time such successor to the Trustee shall succeed to the trusts
created by the Indenture any of the Securities of any series shall have been
authenticated but not delivered, any such successor to the Trustee may adopt
the certificate of authentication of any predecessor Trustee and deliver such
Securities so authenticated; and, in case at that time any of the Securities of
any series shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or
in the name of the successor Trustee; and in all such cases such certificate
shall have the full force which it is anywhere in the Securities of such series
or in the Indenture provided that the certificate of the Trustee shall have; provided,
that the right to adopt the certificate of authentication of any predecessor
Trustee or to authenticate Securities of any series in the name of any
predecessor Trustee shall apply only to its successor or successors by merger,
conversion or consolidation.

 

Section 5.14.  Preferential Collection of Claims Against the
Issuer. The Trustees shall comply with Section 311(a) of
the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of
the Trust Indenture Act. A Trustee who has resigned or been removed shall be
subject to Section 311(a) of the Trust Indenture Act to the extent
included therein.

 

Section 5.15.  Trustee’s Disclaimer.  The Trustee (i) makes no
representation as to the validity or adequacy of the Indenture or the
Securities, (ii) is not accountable for the Issuer’s use or application of
the proceeds from the Securities and (iii) is not responsible for any
statement in the Securities other than its certificate of authentication.

 

ARTICLE
6

CONCERNING THE HOLDERS

 

Section 6.01.  Evidence of Action Taken by Holders.  Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
the Indenture to be given or taken by a specified percentage in principal
amount of the Holders of any or all series may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such specified
percentage of Holders in person or by agent duly appointed in writing; and,
except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee.

 

41

 

If the
Issuer shall solicit from the Holders of any series any request, demand,
authorization, direction, notice, consent, waiver or other action, the Issuer
may, at its option, as evidenced by an Officer’s Certificate, fix in advance a
record date for such series for the determination of Holders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or
other action, but the Issuer shall have no obligation to do so. If such a
record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other action, may be given before or after the record date,
but only the Holders of the requisite proportion of Outstanding Securities of
that series who have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other action, and for that
purpose the Outstanding Securities of that series shall be computed as of the
record date; provided, however, that no such authorization,
agreement or consent by such Holders on the record date shall be deemed
effective unless it shall become effective pursuant to the provisions of the
Indenture not later than six months after the record date.

 

Proof
of execution of any instrument or of a writing appointing any such agent shall
be sufficient for any purpose of the Indenture and (subject to Sections 5.01
and 5.05) conclusive in favor of the Trustee and the Issuer, if made in the
manner provided in this Article.

 

Section 6.02.  Proof of Execution of Instruments and of
Holding of Securities; Record Date.  Subject
to Sections 5.01 and 5.05, the execution of any instrument by a Holder or his
agent or proxy may be proved in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee.  The holding
of Securities shall be proved by the Register or by a certificate of the
registrar thereof.  The Issuer may set a
record date for purposes of determining the identity of Holders of any series
entitled to vote or consent to any action referred to in Section 6.01,
which record date may be set at any time or from time to time by notice to the
Trustee, for any date or dates (in the case of any adjournment or
reconsideration) not more than 60 days nor less than five days prior to the
proposed date of such vote or consent, and thereafter, notwithstanding any
other provisions hereof, only Holders of such series of record on such record
date shall be entitled to so vote or give such consent or revoke such vote or
consent.  Notice of such record date may
be given before or after any request for any action referred to in Section 6.01
is made by the Issuer.

 

Section 6.03.  Holders to Be Treated as Owners.  Prior to the due presentment for
registration of transfer of any Security, the Issuer, the Trustee and any agent
of the Issuer or the Trustee may deem and treat the Person in whose name any
Security shall be registered upon the Register for such series as the absolute
owner of such Security (whether or not such Security shall be overdue and
notwithstanding any notation of ownership or other writing thereon) for the
purpose of receiving payment of or on account of the principal of, and, subject
to the provisions of the Indenture, interest on such Security and for all other
purposes; and neither the Issuer, the Trustee, nor any agent 

 

42

 

of the Issuer or the Trustee shall be affected by any notice to the
contrary.  All such payments so made to
any such Person, or upon his order, shall be valid, and, to the extent of the
sum or sums so paid, effectual to satisfy and discharge the liability for
moneys payable upon any such Security.

 

Section 6.04.  Securities Owned by Issuer Deemed Not
Outstanding.  In determining
whether the Holders of the requisite aggregate principal amount of Outstanding
Securities of any or all series have concurred in any direction, consent or
waiver under the Indenture, Securities which are owned by the Issuer or any
other obligor on the Securities with respect to which such determination is
being made or by any Person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Issuer or any other obligor
on the Securities with respect to which such determination is being made shall
be disregarded and deemed not to be Outstanding for the purpose of any such
determination, except that for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, consent or waiver only
Securities which a Responsible Officer of the Trustee actually knows are so
owned, or has received written notice that such Securities are so owned, shall
be so disregarded.  Securities 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 Issuer
or any other obligor upon the Securities or any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Issuer or any other obligor on the Securities.  In case of a dispute as to such right, the
advice of counsel shall be full protection in respect of any decision made by
the Trustee in accordance with such advice. 
Upon request of the Trustee, the Issuer shall furnish to the Trustee
promptly an Officer’s Certificate listing and identifying all Securities, if
any, known by the Issuer to be owned or held by or for the account of any of
the above-described Persons; and, subject to Sections 5.01 and 5.05, the
Trustee shall be entitled to accept such Officer’s Certificate as conclusive
evidence of the facts therein set forth and of the fact that all Securities not
listed therein are Outstanding for the purpose of any such determination.

 

Section 6.05.  Right of Revocation of Action Taken.  At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 6.01, of the
taking of any action by the Holders of the percentage in aggregate principal
amount of the Securities of any or all series, as the case may be, specified in
the Indenture in connection with such action, any Holder of a Security the
serial number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action
may, by filing written notice at the applicable Corporate Trust Office and upon
proof of holding as provided in this Article, revoke such action so far as
concerns such Security.  Except as
aforesaid any such action taken by the Holder of any Security shall be
conclusive and binding upon such Holder and upon all future Holders and owners
of such Security and of any Securities issued in exchange or substitution
therefor, irrespective of whether or not any notation in regard thereto is made
upon any 

 

43

 

such Security.  Any action taken
by the Holders of the percentage in aggregate principal amount of the
Securities of any or all series, as the case may be, specified in the Indenture
in connection with such action shall be conclusively binding upon the Issuer,
the Trustee and the Holders of all the Securities affected by such action.

 

ARTICLE
7

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

Section 7.01.  Supplemental Indentures without Consent of
Holders.  The Issuer and the
Trustee may amend the Indenture or the Securities or enter into an indenture
supplemental hereto without notice to or the consent of any Holder to

 

(a)        cure ambiguities, omissions,
defects or inconsistencies;

 

(b)        make any change that would
provide any additional rights or benefits to the Holders of the Securities of a
series;

 

(c)        provide for or add
guarantors with respect to the Securities of any series;

 

(d)        secure the Securities of any
series;

 

(e)        establish the form or forms
of Securities of any series;

 

(f)         provide for uncertificated
Securities of any series in addition to or in place of certificated Securities
of the applicable series;

 

(g)        evidence and provide for the
acceptance of appointment by a successor Trustee;

 

(h)        provide for the assumption
by a successor corporation, partnership, trust or limited liability company of
the Issuer’s obligations to the Holders of the Securities of any series, in
each case in compliance with the applicable provisions of the Indenture;

 

(i)         maintain the qualification
of the Indenture under the Trust Indenture Act;

 

(j)         conform any provision in the
Indenture or the terms of the Securities of any series to the prospectus,
offering memorandum, offering circular or any other document pursuant to which
the Securities of such series were offered; or

 

(k)        make any change that does
not adversely affect the rights of any Holder in any material respect.

 

The
Trustee is hereby authorized to join with the Issuer in the execution of any
such amendment or supplemental indenture, to make any further appropriate
agreements 

 

44

 

and stipulations which may be therein contained and to accept the
conveyance, transfer, assignment, mortgage or pledge of any Property
thereunder, but the Trustee shall not be obligated to enter into any such amendment
or supplemental indenture which affects the Trustee’s own rights, duties or
immunities under the Indenture or otherwise.

 

Any
amendment or supplemental indenture authorized by the provisions of this
section may be executed without notice to and without the consent of the
Holders of any of the Securities at the time Outstanding, notwithstanding any
of the provisions of Section 7.02.

 

Section 7.02.  Supplemental Indentures with Consent of
Holders.  (a) With the
consent (evidenced as provided in Article 6) of the Holders of not less
than a majority in aggregate principal amount of the Securities at the time
Outstanding of all series affected by such amendment or supplemental indenture
(voting together as a single class), the Issuer, when authorized by a
Resolution of its Board of Directors, and the Trustee may, from time to time
and at any time, 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 the Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the
Securities of each such series and such Holders may waive future compliance by
the Issuer with a provision of the Indenture or the Securities.

 

(b)           Notwithstanding the provisions of paragraph (a),
without the consent of each affected Holder of a particular series, an
amendment, supplement or waiver may not

 

(i)         reduce the principal amount, or extend the fixed
maturity, of the Securities, alter or waive the redemption provisions of the
Securities;

 

(ii)        impair the right of any Holder of the Securities to
receive payment of principal or interest on the Securities on and after the due
dates for such principal or interest;

 

(iii)       change the currency in which principal, any premium
or interest is paid;

 

(iv)       reduce the percentage in principal amount
Outstanding of Securities of any series which must consent to an amendment,
supplement or waiver or consent to take any action;

 

(v)        impair the right to institute suit for the
enforcement of any payment on the Securities;

 

(vi)       waive a payment default with respect to the
Securities or any guarantor;

 

45

 

(vii)         reduce
the interest rate or extend the time for payment of interest on the Securities;
or

 

(viii)        adversely
affect the ranking of the Securities of any series.

 

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

 

Section 7.03.  Execution of Amendments or Supplemental
Indentures or Waivers.  Upon
the request of the Issuer, accompanied by a copy of a Resolution of the Board
of Directors certified by the secretary or an assistant secretary of the Issuer
authorizing the execution of any such amendment, supplemental indenture or
waiver and upon the filing with the Trustee of evidence of the consent of
Holders as aforesaid and other documents, if any, required by Section 6.01,
the Trustee shall join with the Issuer in the execution of such amendment,
supplemental indenture or waiver unless such supplemental indenture or waiver
affects the Trustee’s own rights, duties or immunities under the Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such amendment, supplemental indenture or waiver.

 

The
Trustee, subject to the provisions of Sections 5.01 and 5.05, may receive an
Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any
amendment, supplemental indenture or waiver executed pursuant to this Article 7
complies with the applicable provisions of the Indenture; provided, however,
that such Officer’s Certificate and Opinion of Counsel need not be provided in
connection with the execution of an amendment, supplemental indenture or waiver
that establishes the terms of a series of Securities pursuant to Section 2.01
hereof.

 

Promptly
after the execution by the Issuer and the Trustee of any amendment,
supplemental indenture or waiver pursuant to the provisions of this Section,
the Issuer shall mail a notice thereof by first class mail to the Holders of
each series affected thereby at their addresses as they shall appear on the
Register of the Issuer, setting forth in general terms the substance of such
amendment, supplemental indenture or waiver. 
Any failure of the Issuer to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
amendment, supplemental indenture or waiver.

 

Section 7.04. 
Effect of Amendment, Supplemental Indenture or
Waiver.  Upon the execution of
any amendment, supplemental indenture or waiver pursuant to the provisions
hereof, the Indenture shall be and be deemed to be modified and amended in
accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under the Indenture of the Trustee, the
Issuer and the Holders of each series affected thereby shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and

 

46

 

conditions of any such amendment, supplemental indenture or waiver
shall be and be deemed to be part of the terms and conditions of the Indenture
for any and all purposes.

 

Section 7.05.  Effect of Consent.  After an amendment, supplement or
waiver becomes effective, it will bind every Holder unless it is of the type
requiring the consent of each Holder affected. 
If the amendment, supplement or waiver is of the type requiring the
consent of each Holder affected, the amendment, supplement or waiver will bind
each Holder that has consented to it and every subsequent Holder of a Security
that evidences the same debt as the Security of the consenting Holder.

 

Section 7.06.  Notation on Securities in Respect of
Amendments, Supplemental Indentures or Waivers. 
Securities of any series authenticated and delivered after
the execution of any amendment, supplemental indenture or waiver pursuant to
the provisions of this Article may bear a notation in form approved by the
Trustee for such series, as to any matter provided for by such amendment,
supplemental indenture or waiver or as to any action taken at any such
meeting.  If the Trustee shall so
determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Board of Directors of the Issuer, to any modification of
the Indenture contained in any such amendment, supplemental indenture or waiver
may be prepared by the Issuer, authenticated by the Trustee and delivered in
exchange for the Securities of such series then Outstanding.

 

Section 7.07. 
Conformity with the Trust Indenture Act.  Every amendment, supplemental
indenture or waiver executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

 

ARTICLE
8

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

 

Section 8.01.  Consolidation, Merger or Sale of Assets by
the Issuer.  (a)  The
Issuer shall not merge or consolidate or combine with or into or, directly or
indirectly, sell, assign, convey, lease, transfer or otherwise dispose of all
or substantially all of its assets to any Person or Persons in a single
transaction or through a series of transactions, unless:

 

(i)         the
Issuer shall be the continuing Person or, if the Issuer is not the continuing
Person, the resulting, surviving or transferee Person (the “Surviving Entity”) is organized and existing under the laws
of the United States or any state thereof or the District of Columbia;

 

(ii)        the
Surviving Entity shall expressly assume all of the Issuer’s obligations under
the Securities and the Indenture, and shall, if required by law to

 

47

 

effectuate the assumption, execute a supplemental indenture in form
satisfactory to the Trustee which will be delivered to the Trustee;

 

(iii)       immediately
after giving effect to such transaction or series of transactions on a pro
forma basis, no Event of Default has occurred and is continuing; and

 

(iv)       the
Issuer or the Surviving Entity will have delivered to the Trustee an Officer’s
Certificate and Opinion of Counsel stating that the transaction or series of
transactions and a supplemental indenture, if any, complies with this Section 8.01
and that all conditions precedent in the Indenture relating to the transaction
or series of transactions have been satisfied.

 

(b)        The restrictions in paragraph Sections 8.01(a)(iii) and
8.01(a)(iv) shall not be applicable to:

 

(i)         the
merger or consolidation of the Issuer with an affiliate of the Issuer if the
Board of Directors determines in good faith that the purpose of such
transaction is principally to change the state of incorporation of the Issuer
or convert the form of organization of the Issuer to another form; or

 

(ii)        the
merger of the Issuer with or into a single direct or indirect wholly owned
subsidiary of the Issuer pursuant to Section 251(g) (or any successor
provision) of the General Corporation Law of the State of Delaware (or similar
provision of the Issuer’s state of incorporation).

 

Section 8.02.  Successor Substituted.  If any consolidation or
merger or any sale, assignment, conveyance, lease, transfer or other
disposition of all or substantially all of the Issuer’s assets occurs in
accordance with the Indenture, the successor Person shall succeed to, and be
substituted for, and may exercise every right and power of the Issuer under the
Indenture with the same effect as if such successor Person had been named
herein as the Issuer and the Issuer shall (except in the case of a lease) be
discharged from all obligations and covenants under the Indenture and the
Securities.

 

ARTICLE
9

DEFEASANCE AND DISCHARGE; UNCLAIMED MONEYS

 

Section 9.01.  Satisfaction and Discharge of Indenture.  The Issuer may terminate its
obligations under the Indenture, when:

 

(a)        either (i) all the Securities of any series issued that
have been authenticated and delivered have been accepted by the Trustee for
cancellation (other than any Securities of such series which shall have been
destroyed, lost or stolen and which shall

 

48

 

have been replaced or paid
as provided in Section 2.09); or (ii) all the Securities of any
series issued that have not been accepted by the Trustee for cancellation shall
have become due and payable, or are by their terms to become due and payable
within one year, and the Issuer shall have made irrevocable arrangements
satisfactory to the Trustee for the giving of notice of redemption by such
Trustee in the Issuer’s name, and at the Issuer’s expense and the Issuer have
irrevocably deposited or caused to be deposited with the Trustee sufficient
funds to pay and discharge the entire indebtedness on the series of Securities
to pay principal, interest and any premium; and

 

(b)        The Issuer shall have paid or caused to be paid all other
sums then due and payable under the Indenture; and

 

(c)        The Issuer shall have delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel each stating that all conditions
precedent under the Indenture relating to the satisfaction and discharge of the
indenture have been complied with.

 

If the
foregoing conditions are met, the Trustee, on written demand of the Issuer
accompanied by an Officer’s Certificate and an Opinion of counsel and at the
cost and expense of the Issuer, shall execute proper instruments prepared by
the Issuer acknowledging such satisfaction of and discharging the Indenture
with respect to such series except as to:

 

(1)           rights
of registration of transfer and exchange of Securities of such series, and the
Issuer’s right of optional redemption, if any;

 

(2)           substitution
of mutilated, defaced, destroyed, lost or stolen Securities;

 

(3)           rights
of Holders to receive payments when due of principal thereof and interest
thereon;

 

(4)           the
rights, powers, trusts, duties and immunities of the Trustee hereunder;

 

(5)           the
rights of the Holders of such series as beneficiaries hereof with respect to
the Property so deposited with the Trustee payable to all or any of them; and

 

(6)           the
rights of the Issuer to be repaid any money pursuant to Sections 9.05 and 9.06.

 

Section 9.02.  Legal Defeasance.  After the 91st day following the
deposit referred to in Section 9.01, the Issuer will be deemed to have
paid and will be discharged from its obligations in respect of the Securities
of any series and the Indenture, other than its obligations in Article 2
and Sections 3.01, 3.02, 5.07, 5.11, and listed in clauses (1),

 

49

 

(2), (3), (4),
(5), and (6) of Section 9.01, provided the following conditions have been satisfied:

 

(a)        The Issuer has irrevocably deposited or caused to be
deposited with the Trustee as trust funds for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to the benefits of the Holders of the Securities of a series in cash or
Governmental Obligations or a combination thereof (other than moneys repaid by
the Trustee or any paying agent to the Issuer in accordance with Section 9.06)
in each case sufficient without reinvestment, in the written opinion of a
nationally recognized firm of independent public accountants to pay and
discharge, and which shall be applied by the Trustee to pay and discharge, all
of the principal, interest and any premium at due date or maturity or if the
Issuer has made irrevocable arrangements satisfactory to the Trustee for the
giving of notice of redemption by the trustee in the Issuer’s name and at the
Issuer’s expense, the redemption date;

 

(b)        The Issuer has delivered to the Trustee an Opinion of Counsel
stating that, as a result of an IRS ruling or a change in applicable federal
income tax law, the Holders of the Securities of that series will not recognize
gain or loss for federal income tax purposes as a result of the deposit,
defeasance and discharge to be effected and will be subject to the same federal
income tax as would be the case if the deposit, defeasance and discharge did
not occur;

 

(c)        No default with respect to the outstanding Securities of that
series has occurred and is continuing at the time of such deposit after giving
effect to the deposit or, in the case of legal defeasance, no default relating
to bankruptcy or insolvency has occurred and is continuing at any time on or
before the 91st day after the date of such deposit (other than an Event of
Default resulting from the borrowing of funds to be applied to such deposit and
the grant of any Lien securing such borrowings), it being understood that this
condition is not deemed satisfied until after the 91st day;

 

(d)        The defeasance will not cause the Trustee to have a conflicting
interest within the meaning of the Trust Indenture Act, assuming all Securities
of a series were in default within the meaning of such Act;

 

(e)        The defeasance will not result in a breach or violation of,
or constitute a default under, the Indenture (other than an Event of Default
resulting from the borrowing of funds to be applied to such deposit and the
grant of any Lien securing such borrowings), or any other material agreement or
instrument to which the Issuer is a party or by which it is bound;

 

(f)         The defeasance will not result in the trust arising from
such deposit constituting an investment company within the meaning of the
Investment Company Act of 1940, as amended, unless the trust is registered
under such Act or exempt from registration; and

 

50

 

(g)        The Issuer has delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, in each case stating that all conditions
precedent provided for herein relating to the defeasance have been complied
with;

 

Prior
to the end of the 91-day period, none of the Issuer’s obligations under the
Indenture will be discharged. 
Thereafter, the Trustee upon request will acknowledge in writing the
discharge of the Issuer’s obligations under the Securities and the Indenture
except for the surviving obligations specified above.

 

Section 9.03.  Covenant Defeasance.  After the 91st day following the
deposit referred to in Section 9.01, the Issuer’s obligations set forth in
Sections 3.04, 3.05 and 8.01 will terminate and Section 4.01(d) will
no longer constitute an Event of Default, provided the following conditions have been satisfied:

 

(a)        The Issuer has complied with clauses (a), (c), (d), (e), (f) and
(g) of Section 9.02; and

 

(b)        the Issuer has delivered to the Trustee an Opinion of Counsel
to the effect that the Holders of the Securities of that series will not
recognize gain or loss for U.S. federal income tax purposes as a result of the
deposit and covenant defeasance to be effected and will be subject to the same
federal income tax as would be the case if the deposit and covenant defeasance
did not occur.

 

Except
as specifically stated above, none of the Issuer’s obligations under the
Indenture will be discharged.

 

Section 9.04.  Application by Trustee of Funds Deposited for
Payment of Securities.  Subject
to Section 9.06, all moneys deposited with the Trustee pursuant to Section 9.01
shall be held in trust and applied by it to the payment, either directly or
through any paying agent (including the Issuer acting as its own paying agent),
to the Holders of the particular Securities of such series for the payment or
redemption of which such moneys or Governmental Obligations have been deposited
with the Trustee, of all sums due and to become due thereon for principal and
interest.  Such money need not be
segregated from other funds except to the extent required by law.

 

Section 9.05.  Repayment of Moneys Held by Paying
Agent.  In connection with the
satisfaction and discharge of the Indenture with respect to Securities of any
series, all moneys then held by any paying agent under the provisions of the
Indenture with respect to such series of Securities shall, upon demand of the
Issuer, be repaid to the Issuer or paid to the Trustee and thereupon such paying
agent shall be released from all further liability with respect to such moneys
or Governmental Obligations.

 

Section 9.06.  Return of Moneys Held by Trustee and Paying
Agent Unclaimed for Two Years.  Any
moneys or Governmental Obligations deposited with or paid to the

 

51

 

Trustee or any paying agent for the payment of the principal of or
interest on any Security of any series and not applied but remaining unclaimed
for two years after the date upon which such principal or interest shall have
become due and payable, shall, upon the written request of the Issuer and
unless otherwise required by mandatory provisions of applicable escheat or
abandoned or unclaimed property law, be repaid to the Issuer by the Trustee for
such series or such paying agent, and the Holder of the Security of such series
shall, unless otherwise required by mandatory provisions of applicable escheat
or abandoned or unclaimed property laws, thereafter look only to the Issuer for
any payment which such Holder may be entitled to collect, and all liability of
the Trustee or any paying agent with respect to such moneys shall thereupon
cease.

 

ARTICLE
10

MISCELLANEOUS PROVISIONS

 

Section 10.01.  Incorporators, Stockholders, Employees,
Officers and Directors of Issuer Exempt from Individual Liability.  No recourse under or upon any
obligation, covenant or agreement contained in the Indenture, or in any
Security, or because of any indebtedness evidenced thereby, shall be had
against any incorporator, as such, or against any past, present or future
stockholder, employee, officer or director, as such, of the Issuer or of any
successor, either directly or through the Issuer or any successor, under any rule of
law, statute or constitutional provision or by the enforcement of any
assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance of the
Securities by the Holders thereof and as part of the consideration for the issue
of the Securities.

 

Section 10.02.  Provisions of Indenture for the Sole Benefit
of Parties and Holders.  Nothing
in the Indenture or in the Securities, expressed or implied, shall give or be
construed to give to any Person, firm or corporation, other than the parties
hereto and their successors and the Holders of the Securities, any legal or
equitable right, remedy or claim under the Indenture or under any covenant or
provision herein contained, all such covenants and provisions being for the
sole benefit of the parties hereto and their successors and of the Holders of
the Securities.

 

Section 10.03.  Successors and Assigns of Issuer Bound by
Indenture.  All the agreements
of the Issuer in the Indenture and the Securities shall bind its successors and
assigns.

 

Section 10.04. 
Notices and Demands on Issuer, Trustee and
Holders.  Any notice or demand
which by any provision of the Indenture is required or permitted to be given or
served by the Trustee or by the Holders to or on the Issuer may be given or
served by being deposited postage prepaid, first-class mail (except as
otherwise specifically provided herein) addressed (until another address of the
Issuer is filed by the Issuer with the Trustee) to Adobe Systems Incorporated,
345 Park Avenue, San Jose, California

 

52

 

95110-2704 Attention: Chief Financial Officer and a copy of such notice
or demand shall be sent to the Issuer’s General Counsel at the same
address.  Any notice, direction, request
or demand by the Issuer or any Holder to or upon the Trustee shall be deemed to
have been sufficiently given or made, for all purposes, if given or made at the
applicable Corporate Trust Office of the Trustee.

 

Where
the Indenture provides for notice to Holders, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder entitled thereto, at his last
address as it appears in the Register. 
In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders.  Where the Indenture
provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice.  Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

 

In
case, by reason of the suspension of or irregularities in regular mail service,
it shall be impracticable to mail notice to the Issuer and Holders when such notice
is required to be given pursuant to any provision of the Indenture, then any
manner of giving such notice as shall be satisfactory to the Trustee shall be
deemed to be a sufficient giving of such notice.

 

Section 10.05.  Officer’s Certificates and Opinions of
Counsel; Statements to Be Contained Therein. 
Upon any application or demand by the Issuer to the Trustee
to take any action under any of the provisions of the Indenture, the Issuer
shall furnish to the Trustee an Officer’s Certificate stating that all
conditions precedent, if any, provided for in the Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent have been complied
with, except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of the
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

 

Each
certificate or opinion provided for in the Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant provided for in
the Indenture shall include (a) a statement that the Person making such
certificate or opinion has read such covenant or condition, (b) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based, (c) a statement that, in the opinion of such Person, he has made
such examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with

 

53

 

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

 

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

 

Any
certificate, statement or opinion of an officer of the Issuer or Opinion of
Counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Issuer, unless such officer or counsel, as the
case may be, knows that the certificate or opinion or representations with
respect to the accounting matters upon which his certificate, statement or
opinion may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous.

 

Any
certificate or opinion of any independent firm of public accountants filed with
the Trustee shall contain a statement that such firm is independent.

 

Section 10.06.  Payments Due on Saturdays, Sundays and
Holidays.  Except as provided
pursuant to Section 2.01 pursuant to a Resolution of the Board of
Directors, and as set forth in an Officer’s Certificate, or established in one
or more indentures supplemental to the Indenture, if the date of maturity of
interest on or principal of the Securities of any series or the date fixed for
redemption or repayment of any such Security shall not be a Business Day, then
payment of interest or principal need not be made on such date, but may be made
on the next succeeding Business Day with the same force and effect as if made
on the date of maturity or the date fixed for redemption, and no interest shall
accrue for the period after such date.

 

Section 10.07.  Trust Indenture Act of 1939.  The Indenture shall incorporate
and be governed by the provisions of the Trust Indenture Act that are required
to be part of and to govern indentures qualified under the Trust Indenture Act.

 

Section 10.08.  New York Law to Govern.  The Indenture and each Security
shall be governed by and construed in accordance with the laws of the State of
New York.

 

54

 

Section 10.09. 
Counterparts. 
The Indenture may be executed in any number of counterparts,
each of which shall be an original, but such counterparts shall together
constitute but one and the same instrument.

 

Section 10.10.  Effect of Headings.  The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

Section 10.11. 
Separability.  In case any one or more of the provisions
contained in the Indenture or in the Securities of any series shall for any
reason be held to be invalid, illegal, or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect or impair any other
provisions of the Indenture or of such Securities, but the Indenture and such
Securities shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.

 

Section 10.12. Force
Majeure. In no event shall the Trustee be responsible or liable for
any failure or delay in the performance of its obligations hereunder arising
out of or caused by, directly or indirectly, forces beyond its control,
including, without limitation, strikes, work stoppages, accidents, acts of war
or terrorism, civil or military disturbances, nuclear or natural catastrophes
or acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being
understood that the Trustee shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

Section 10.13. U.S.A.
Patriot Act. The parties hereto acknowledge that in accordance with Section 326
of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in
order to help fight the funding of terrorism and money laundering, is required
to obtain, verify, and record information that identifies each person or legal
entity that establishes a relationship or opens an account with the Trustee.
The parties to this Indenture agree that they will provide the Trustee with
such information as it may request in order for the Trustee to satisfy the
requirements of the U.S.A. Patriot Act.

 

ARTICLE
11

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

 

Section 11.01.  Applicability of Article.  The provisions of this Article shall
be applicable to the Securities of any series which are redeemable before their
maturity or to any sinking fund for the retirement of Securities of a series
except as otherwise specified as contemplated by Section 2.03 for
Securities of such series.

 

55

 

Section 11.02.  Notice of Redemption; Partial
Redemptions.  Notice of
redemption to the Holders of any series to be redeemed as a whole or in part at
the option of the Issuer shall be given by mailing notice of such redemption by
first class mail, postage prepaid, at least 30 days and not more than 60 days
prior to the date fixed for redemption to such Holders of such series at their
last addresses as they shall appear upon the Register.  Any notice which is mailed in the manner
herein provided shall be conclusively presumed to have been duly given, whether
or not the Holder receives the notice. 
Failure to give notice by mail, or any defect in the notice to the
Holder of any Security of a series designated for redemption as a whole or in
part shall not affect the validity of the proceedings for the redemption of any
other Security of such series.

 

The
notice of redemption to each such Holder shall specify the principal amount of
each Security of such series held by such Holder to be redeemed, the date fixed
for redemption, the redemption price, the place or places of payment, that
payment will be made upon presentation and surrender of such Securities, that
such redemption is pursuant to the mandatory or optional sinking fund, or both,
if such be the case, that interest accrued to the date fixed for redemption
will be paid as specified in such notice and that on and after said date
interest thereon or on the portions thereof to be redeemed will cease to
accrue.  In case any Security of a series
is to be redeemed in part only the notice of redemption shall state the portion
of the principal amount thereof to be redeemed and shall state that on and
after the date fixed for redemption, upon surrender of such Security, a new
Security or Securities of such series in principal amount equal to the
unredeemed portion thereof will be issued.

 

The
notice of redemption of Securities of any series to be redeemed shall be
prepared and given by the Issuer or, at the Issuer’s request, prepared by the
Issuer and given by the Trustee in the name and at the expense of the Issuer.

 

If
less than all the Securities of a series are to be redeemed, the Securities to
be redeemed shall be selected by lot by the Depositary in the case of
Securities represented by a Global Security, or, in the case of Securities not
represented by a Global Security, the Trustee shall select, in such manner as
it shall deem appropriate and fair, Securities of such series to be redeemed in
whole or in part.  Securities may be
redeemed in part in multiples equal to the minimum authorized denomination for
Securities of such series or any multiple thereof.  The Trustee shall promptly notify the Issuer
in writing of the Securities of such series selected for redemption and, in the
case of any Securities of such series selected for partial redemption, the
principal amount thereof to be redeemed. 
For all purposes of the Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities of any series
shall relate, in the case of any Security redeemed or to be redeemed only in
part, to the portion of the principal amount of such Security which has been or
is to be redeemed.

 

At
least one Business Day prior to the redemption date specified in the notice of
redemption given as provided in this Section, the Issuer will deposit with the
Trustee or

 

56

 

with one or more paying agents (or, if the Issuer is acting as its own
paying agent, set aside, segregate and hold in trust as provided in Section 3.03)
an amount of money sufficient to redeem on the redemption date all the
Securities of such series so called for redemption at the appropriate
redemption price, together with accrued interest to the date fixed for
redemption.

 

Section 11.03.  Payment of Securities Called for
Redemption.  If notice of
redemption has been given as above provided, the Securities or portions of
Securities specified in such notice shall become due and payable on the date
and at the place stated in such notice at the applicable redemption price,
together with interest accrued to the date fixed for redemption, and on and
after said date (unless the Issuer shall default in the payment of such
Securities at the redemption price, together with interest accrued to said
date) interest on the Securities or portions of Securities so called for
redemption shall cease to accrue and such Securities shall cease from and after
the date fixed for redemption to be entitled to any benefit or security under
the Indenture, and the Holders thereof shall have no right in respect of such
Securities except the right to receive the redemption price thereof and unpaid
interest to the date fixed for redemption. 
On presentation and surrender of such Securities at a place of payment
specified in said notice, said Securities or the specified portions thereof
shall be paid and redeemed by the Issuer at the applicable redemption price,
together with interest accrued thereon to the date fixed for redemption;
provided that any payment of interest becoming due on or before the date fixed
for redemption shall be payable to the Holders of such Securities registered as
such on the relevant record date.

 

If any
Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal shall, until paid or duly provided for, bear interest
from the date fixed for redemption at the rate of interest or Yield to Maturity
(in the case of an Original Issue Discount Security) borne by the Security.

 

Upon
presentation of any Security redeemed in part only, the Issuer shall execute
and the Trustee shall authenticate and deliver to or on the order of the Holder
thereof, at the expense of the Issuer, a new Security or Securities of such
series, of authorized denominations, in principal amount equal to the
unredeemed portion of the Security so presented.

 

Section 11.04.  Exclusion of Certain Securities from
Eligibility for Selection for Redemption. 
Securities shall be excluded from eligibility for selection
for redemption if they are identified by registration and certificate number in
a written statement signed by an authorized officer of the Issuer and delivered
to the Trustee at least 15 days prior to the last date on which notice of
redemption may be given as being owned of record and beneficially by, and not
pledged or hypothecated by either (a) the Issuer or (b) an entity
specifically identified in such written statement directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Issuer.

 

57

 

[Signature Page Follows]

 

58

 

IN
WITNESS WHEREOF, the parties hereto have caused the Indenture to be duly
executed as of the date set forth above.

 

	
   

  	
  ADOBE
  SYSTEMS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

59Exhibit 4.2

 

[FORM OF NOTES DUE [   ]]

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO.  OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS A BENEFICIAL INTEREST HEREIN.

 

TRANSFERS OF THIS NOTE ARE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE ARE LIMITED
TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE INDENTURE.

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER
TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS
SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

 

ADOBE SYSTEMS INCORPORATED

[      ]% Notes due [   ]

 

	
  No.

  	
   

  	
  CUSIP No.:
  [                ]

  
	
   

  	
   

  	
  ISIN No.:
  [                      -

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $[                ]

  

 

ADOBE SYSTEMS INCORPORATED, a Delaware corporation
(the “Issuer”), for value received promises
to pay to CEDE & CO. or registered assigns the principal sum of [   ]
DOLLARS on [          
    ], 20[    ].

 

Interest Payment Dates:
[          ] and
[          ] (each, an “Interest Payment Date”), commencing on
[          
    ], 20[    ].

 

Interest Record Dates:
[          ] and
[          ] (each, an “Interest Record Date”).

 

Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if
set forth at this place.

 

 

IN WITNESS WHEREOF, the Issuer has caused this Note
to be signed manually or by facsimile by its duly authorized officer under its
corporate seal.

 

 

	
   

  	
  ADOBE
  SYSTEMS INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  

  
	
   

  	
   

  	
  Title:
  

  

 

 

[Seal
of Adobe Systems Incorporated]

 

 

Attest:

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:
  

  	
   

  
	
   

  	
  Title:
  

  	
   

  

 

 

This is one of the Notes of the series designated
herein and referred to in the within-mentioned Indenture.

 

Dated:
[          
    ], 20[    ]

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 

(REVERSE OF NOTE)

 

ADOBE SYSTEMS INCORPORATED

[      ]% Notes due [   ]

 

1.             Interest

 

Adobe Systems Incorporated (the “Issuer”) promises to pay interest on the principal amount of
this Note at the rate per annum described above.  Cash interest on the Notes will accrue from
the most recent date to which interest has been paid; or, if no interest has
been paid, from [          
    ], 20[    ].  Interest on this Note will be paid to but
excluding the relevant Interest Payment Date. 
The Issuer will pay interest semi-annually in arrears on each Interest
Payment Date, commencing
[          
    ], 20[    ].  Interest will be computed on the basis of a
360-day year consisting of twelve 30-day months in a manner consistent with Rule 11620(b) of
the NASD Uniform Practice Code.

 

The Issuer shall pay interest on overdue principal
from time to time on demand at the rate borne by the Notes and on overdue
installments of interest (without regard to any applicable grace periods) to
the extent lawful.

 

2.             Paying
Agent.

 

Initially, Wells Fargo Bank, National Association
(the “Trustee”) will act as paying
agent.  The Issuer may change any paying
agent without notice to the Holders.

 

3.             Indenture;
Defined Terms.

 

This Note is one of the
[        ]% Notes due [    ]
(the “Notes”) issued under an indenture dated
as of [               ],
2010 (the “Base Indenture”) by and between
the Issuer and the Trustee, and established pursuant to an Officer’s
Certificate dated [          
    ], 2010, issued pursuant to Section 2.01 and Section 2.03
thereof (together, the “Indenture”).  This Note is a “Security” and the Notes are “Securities”
under the Indenture.

 

For purposes of this Note, unless otherwise defined
herein, capitalized terms herein are used as defined in the Indenture.  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”) as in effect on the date on which the Indenture was
qualified under the TIA.  Notwithstanding
anything to the contrary herein, the Notes are subject to all such terms, and
Holders of Notes are referred to the Indenture and the TIA for a 

 

 

statement of them.  To the extent the terms of the Indenture and
this Note are inconsistent, the terms of the Indenture shall govern.

 

4.             Denominations; Transfer; Exchange.

 

The Notes are in registered form, without coupons,
in denominations of $2,000 and multiples of $1,000 thereafter.  A Holder shall register the transfer or
exchange of Notes in accordance with the Indenture.  The Issuer may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay
certain transfer taxes or similar governmental charges payable in connection
therewith as permitted by the Indenture. 
The Issuer need not issue, authenticate, register the transfer of or
exchange any Notes or portions thereof for a period of fifteen (15) days before
the mailing of a notice of redemption, nor need the Issuer register the
transfer or exchange of any Note selected for redemption in whole or in part.

 

5.             Amendment;
Supplement; Waiver.

 

Subject to certain exceptions, the Notes and the
provisions of the Indenture relating to the Notes may be amended or
supplemented and any existing default or Event of Default or compliance with
certain provisions may be waived with the written consent of the Holders of at
least a majority in aggregate principal amount of all series of Outstanding
Securities (including the Notes) under the Indenture that are affected by such
amendment, supplement or waiver (voting together as a single class).  Without notice to or consent of any Holder,
the parties thereto may amend or supplement the Indenture and the Notes to,
among other things, cure any ambiguity, omission, defect or inconsistency or
comply with any requirements of the Commission in connection with the
qualification of the Indenture under the TIA, or make any other change that
does not adversely affect the rights of any Holder of a Note in any material
respect.

 

6.             Redemption.

 

The Issuer may at its option redeem any of the Notes
in whole or in part at any time, each at a redemption price calculated by the
Issuer equal to the greater of:

 

(i)            100%
of the principal amount of the Notes to be redeemed; and

 

(ii)           the
sum of the present values of the remaining scheduled payments of principal and
interest thereon (not including any portion of such payments of interest
accrued as of the date of redemption), discounted to the date of redemption on
a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate (as defined below) plus [    ]
basis points,

 

 

plus in each case accrued interest thereon to the
date of redemption.

 

Notwithstanding the foregoing, installments of
interest on Notes that are due and payable on interest payment dates falling on
or prior to a redemption date will be payable on the interest payment date to
the registered Holders as of the close of business on the relevant record date
according to the Notes and the Indenture.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of the Notes.

 

“Comparable Treasury Price”
means, with respect to any redemption date, (i) the average of four
Reference Treasury Dealer Quotations for such redemption date, after excluding
the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if
the Quotation Agent obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations, or (iii) if only one
Reference Treasury Dealer Quotation is received, such quotation.

 

“Quotation Agent”
means the Reference Treasury Dealer appointed by the Issuer.

 

“Reference Treasury Dealer”
means (i) Banc of America Securities LLC and J.P. Morgan Securities Inc.
(or their respective affiliates that are Primary Treasury Dealers) and their
respective successors; provided, however,
that if any of the foregoing shall cease to be a primary U.S. Government
securities dealer in New York City (a “Primary Treasury Dealer”), the Issuer will
substitute therefor another Primary Treasury Dealer, and (ii) any other
Primary Treasury Dealer selected by the Issuer.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Quotation Agent, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the
Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third business day preceding such redemption date.

 

“Treasury Rate”
means, with respect to any redemption date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption date.

 

 

Notice of any redemption will be mailed at least 30
days but not more than 60 days before the redemption date to each Holder of the
Notes to be redeemed.  Unless the Issuer
defaults in payment of the redemption price, on and after the redemption date,
interest will cease to accrue on the Notes or portions thereof called for
redemption.  If less than all of the
Notes are to be redeemed, the Notes to be redeemed shall be selected by lot by
the Depositary, in the case of Notes represented by a Global Note, or by the
Trustee by a method the Trustee deems to be fair and appropriate, in the case
of Notes that are not represented by a Global Note.

 

7.             Defaults
and Remedies.

 

If an Event of Default (other than certain
bankruptcy Events of Default with respect to the Issuer) under the Indenture
occurs with respect to the Notes and is continuing, then the Trustee may and,
at the direction of the Holders of at least 25% in principal amount of the
outstanding Notes, shall by written notice, require the Issuer to repay
immediately the entire principal amount of the Outstanding Notes, together with
all accrued and unpaid interest and premium, if any.  If a bankruptcy Event of Default with respect
to the Issuer occurs and is continuing, then the entire principal amount of the
Outstanding Notes will automatically become due immediately and payable without
any declaration or other act on the part of the Trustee or any Holder.  Holders of Notes may not enforce the
Indenture or the Notes except as provided in the Indenture.  The Trustee is not obligated to enforce the
Indenture or the Notes unless it has received indemnity as it reasonably
requires.  The Indenture permits, subject
to certain limitations therein provided, Holders of a majority in aggregate
principal amount of the Notes then outstanding to direct the Trustee in its
exercise of any trust or power.  The
Trustee may withhold from Holders of Notes notice of certain continuing
defaults or Events of Default if it determines that withholding notice is in
their interest.

 

8.             Authentication.

 

This Note shall not be valid until the Trustee
manually signs the certificate of authentication on this Note.

 

9.             Abbreviations
and Defined Terms.

 

Customary abbreviations may be used in the name of a
Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

 

 

10.           CUSIP
Numbers.

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Issuer has caused
CUSIP numbers to be printed on the Notes as a convenience to the Holders of the
Notes.  No representation is made as to
the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.

 

11.           Governing
Law.

 

The laws of the State of New York shall govern the
Indenture and this Note thereof.

 

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

(Print
or type assignee’s name, address and zip code)

 

(Insert
assignee’s soc. sec. or tax I.D. No.)

 

and
irrevocably appoint
                                
agent to transfer this Note on the books of the Issuer.  The agent may substitute another to act for
him.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:
  

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  	
   

  

 

	
   

  
	
  Sign exactly as your name appears on the other
  side of this Note.

  

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  must be guaranteed

  	
   

  	
  Signature

  

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which
requirements include membership or participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the United
States Securities Exchange Act of 1934, as amended.

 

 

SCHEDULE OF EXCHANGES OF NOTES

 

The
following exchanges of a part of this Global Note for Physical Notes or a part
of another Global Note have been made:

 

	
  Date
  of Exchange

  	
   

  	
  Amount of decrease

  in principal amount

  of this Global Note

  	
   

  	
  Amount of increase

  in principal amount

  of this Global Note

  	
   

  	
  Principal amount of

  this Global Note

  following such

  decrease (or

  increase)

  	
   

  	
  Signature of

  authorized officer of

  Trustee

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