Document:

PURCHASE
AND SALE AGREEMENT

     

    by
and among

     

    COHERENT,
INC.,

     

    STOCKERYALE,
INC. and

     

    STOCKERYALE
CANADA, INC.

    

    Dated
as of October 13, 2009

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TABLE
OF CONTENTS

     

    
      
        
          
            
              	 
      	 
      	
                      Page

                    
	 	 
	
                      ARTICLE I
      DEFINITIONS & INTERPRETATIONS

                    	
                      1

                    
	 
      	 
      	 
      
	
                      1.1

                    	
                      Certain
      Definitions

                    	
                      1

                    
	
                      1.2

                    	
                      Additional
      Definitions

                    	
                      11

                    
	
                      1.3

                    	
                      Certain
      Interpretations

                    	
                      13

                    
	 
      	 
      
	
                      ARTICLE II
      PURCHASE AND SALE

                    	
                      13

                    
	 
      	 
      	 
      
	
                      2.1

                    	
                      Transferred
      Assets

                    	
                      13

                    
	
                      2.2

                    	
                      Excluded
      Assets

                    	
                      14

                    
	
                      2.3

                    	
                      Assumed
      Liabilities

                    	
                      15

                    
	
                      2.4

                    	
                      Excluded
      Liabilities

                    	
                      16

                    
	
                      2.5

                    	
                      Consideration
      for Transferred Assets

                    	
                      17

                    
	
                      2.6

                    	
                      Sales
      and Use Taxes

                    	
                      18

                    
	
                      2.7

                    	
                      Bulk
      Transfer Laws

                    	
                      18

                    
	
                      2.8

                    	
                      Closing

                    	
                      18

                    
	
                      2.9

                    	
                      Non-Assignable
      Assets

                    	
                      21

                    
	
                      2.10

                    	
                      Closing
      Date Balance Sheet Adjustment

                    	
                      22

                    
	
                      2.11

                    	
                      Further
      Action

                    	
                      23

                    
	 
      	 
      
	
                      ARTICLE III
      REPRESENTATIONS AND WARRANTIES OF SELLER

                    	
                      23

                    
	 
      	 
      	 
      
	
                      3.1

                    	
                      Organization
      and Standing

                    	
                      24

                    
	
                      3.2

                    	
                      Authorization;
      Board Approval

                    	
                      24

                    
	
                      3.3

                    	
                      Non-contravention;
      Required Consents

                    	
                      25

                    
	
                      3.4

                    	
                      Controls;
      Compliance

                    	
                      25

                    
	
                      3.5

                    	
                      Business
      Financial Statements

                    	
                      26

                    
	
                      3.6

                    	
                      No
      Undisclosed Liabilities; Indebtedness

                    	
                      26

                    
	
                      3.7

                    	
                      Absence
      of Certain Changes

                    	
                      26

                    
	
                      3.8

                    	
                      Compliance
      with Laws and Orders

                    	
                      28

                    
	
                      3.9

                    	
                      Permits

                    	
                      29

                    
	
                      3.10

                    	
                      Litigation;
      Orders

                    	
                      29

                    
	
                      3.11

                    	
                      Material
      Contracts

                    	
                      29

                    
	
                      3.12

                    	
                      Taxes

                    	
                      32

                    
	
                      3.13

                    	
                      Employee
      Benefits

                    	
                      34

                    
	
                      3.14

                    	
                      Labor
      Matters

                    	
                      35

                    
	
                      3.15

                    	
                      Real
      Property

                    	
                      36

                    
	
                      3.16

                    	
                      Environmental
      Matters

                    	
                      38

                    
	
                      3.17

                    	
                      Sufficiency
      of Transferred Assets; Title to Transferred Assets

                    	
                      38

                    
	
                      3.18

                    	
                      Intellectual
      Property

                    	
                      38

                    
	
                      3.19

                    	
                      Insurance

                    	
                      41

                    
	
                      3.20

                    	
                      Government
      Contracts

                    	
                      41

                    
	
                      3.21

                    	
                      Brokers

                    	
                      42

                    
	
                      3.22

                    	
                      State
      Anti-Takeover Statutes

                    	
                      42

                    
	
                      3.23

                    	
                      Solvency

                    	
                      42

                    

            

          

        

      

    

     

    
      
         

      

      
        -i-

        
          

        

      

      
         

      

    

     

    TABLE
OF CONTENTS

    (continued)

     

    

    
      
        
          
            	 
      	 
      	
                    Page

                  
	 	 	 
	
                    3.24

                  	
                    Inventory
      and Product Warranties

                  	
                    43

                  
	
                    3.25

                  	
                    Disclosure

                  	
                    43

                  
	 
      	 
      
	
                    ARTICLE IV
      REPRESENTATIONS AND WARRANTIES OF BUYER

                  	
                    44

                  
	 
      	 
      	 
      
	
                    4.1

                  	
                    Organization

                  	
                    44

                  
	
                    4.2

                  	
                    Authorization;
      Board Approval

                  	
                    44

                  
	
                    4.3

                  	
                    Non-contravention;
      Required Consents

                  	
                    44

                  
	
                    4.4

                  	
                    Litigation

                  	
                    45

                  
	
                    4.5

                  	
                    Ownership
      of Securities

                  	
                    45

                  
	 
      	 
      
	
                    ARTICLE V
      INTERIM CONDUCT OF BUSINESS

                  	
                    45

                  
	 
      	 
      	 
      
	
                    5.1

                  	
                    Affirmative
      Obligations of Seller

                  	
                    45

                  
	
                    5.2

                  	
                    Negative
      Obligations of Seller

                  	
                    46

                  
	 
      	 
      
	
                    ARTICLE VI
      ADDITIONAL AGREEMENTS

                  	
                    48

                  
	 
      	 
      	 
      
	
                    6.1

                  	
                    Reasonable
      Best Efforts to Complete

                  	
                    48

                  
	
                    6.2

                  	
                    Anti-Takeover
      Laws

                  	
                    49

                  
	
                    6.3

                  	
                    Access;
      Notice and Consultation

                  	
                    49

                  
	
                    6.4

                  	
                    Confidentiality

                  	
                    51

                  
	
                    6.5

                  	
                    Public
      Disclosure

                  	
                    51

                  
	
                    6.6

                  	
                    Employee
      Matters

                  	
                    51

                  
	
                    6.7

                  	
                    Non-Solicitation

                  	
                    52

                  
	
                    6.8

                  	
                    Real
      Estate Matters

                  	
                    53

                  
	
                    6.9

                  	
                    Mail
      Handling

                  	
                    54

                  
	
                    6.10

                  	
                    Non-Solicitation
      of Employment

                  	
                    54

                  
	
                    6.11

                  	
                    Non-Competition

                  	
                    54

                  
	 
      	 
      
	
                    ARTICLE VII
      POST-CLOSING AGREEMENTS

                  	
                    54

                  
	 
      	 
      	 
      
	
                    7.1

                  	
                    Transfer
      of Cash Portion Among the Selling Entities

                  	
                    54

                  
	
                    7.2

                  	
                    Post-Closing
      Access and Cooperation

                  	
                    55

                  
	
                    7.3

                  	
                    2009
      – 2010 PARI R&D Grant

                  	
                    55

                  
	 
      	 
      
	
                    ARTICLE VIII
      TAX MATTERS

                  	
                    55

                  
	 
      	 
      	 
      
	
                    8.1

                  	
                    Returns;
      Indemnification; Liability for Taxes

                  	
                    55

                  
	
                    8.2

                  	
                    Refunds
      and Credits

                  	
                    56

                  
	
                    8.3

                  	
                    Cooperation

                  	
                    56

                  
	
                    8.4

                  	
                    Transferred
      Employees

                  	
                    56

                  
	
                    8.5

                  	
                    Conflicts

                  	
                    56

                  
	 
      	 
      
	
                    ARTICLE IX
      CONDITIONS TO THE ACQUISITION

                  	
                    57

                  
	 
      	 
      	 
      
	
                    9.1

                  	
                    Conditions
      to Each Party’s Obligations to Effect the Acquisition

                  	
                    57

                  
	
                    9.2

                  	
                    Additional
      Conditions to the Obligations of Buyer

                  	
                    57

                  
	
                    9.3

                  	
                    Additional
      Conditions to Seller’s Obligations to Effect the
    Acquisition

                  	
                    58

                  

          

        

      

    

     

    
      
         

      

      
        -ii-

        
          

        

      

      
         

      

    

     

    TABLE
OF CONTENTS

    (continued)

    

    
      
        
          
            	 
      	
                    Page

                  
	 	 
	
                    ARTICLE X
      TERMINATION, AMENDMENT AND WAIVER

                  	
                    59

                  
	 
      	 
      	 
      
	
                    10.1

                  	
                    Termination

                  	
                    59

                  
	
                    10.2

                  	
                    Notice
      of Termination; Effect of Termination

                  	
                    60

                  
	
                    10.3

                  	
                    Fees
      and Expenses

                  	
                    61

                  
	
                    10.4

                  	
                    Amendment

                  	
                    61

                  
	
                    10.5

                  	
                    Extension;
      Waiver

                  	
                    61

                  
	 
      	 
      
	
                    ARTICLE XI
      INDEMNIFICATION

                  	
                    61

                  
	 
      	 
      	 
      
	
                    11.1

                  	
                    Indemnification
      by Seller

                  	
                    61

                  
	
                    11.2

                  	
                    Indemnification
      by Buyer

                  	
                    61

                  
	
                    11.3

                  	
                    Right
      to Indemnification; Cap; Basket

                  	
                    62

                  
	
                    11.4

                  	
                    Third-Party
      Claims

                  	
                    62

                  
	
                    11.5

                  	
                    Insurance

                  	
                    63

                  
	 
      	 
      
	
                    ARTICLE XII
      GENERAL PROVISIONS

                  	
                    63

                  
	 
      	 
      	 
      
	
                    12.1

                  	
                    Survival
      of Representations and Warranties

                  	
                    63

                  
	
                    12.2

                  	
                    Notices

                  	
                    63

                  
	
                    12.3

                  	
                    Assignment

                  	
                    64

                  
	
                    12.4

                  	
                    Entire
      Agreement

                  	
                    64

                  
	
                    12.5

                  	
                    Third
      Party Beneficiaries

                  	
                    65

                  
	
                    12.6

                  	
                    Severability

                  	
                    65

                  
	
                    12.7

                  	
                    Other
      Remedies

                  	
                    65

                  
	
                    12.8

                  	
                    Governing
      Law

                  	
                    65

                  
	
                    12.9

                  	
                    Specific
      Performance

                  	
                    65

                  
	
                    12.10

                  	
                    Consent
      to Jurisdiction

                  	
                    65

                  
	
                    12.11

                  	
                    WAIVER
      OF JURY TRIAL

                  	
                    66

                  
	
                    12.12

                  	
                    Counterparts

                  	
                    66

                  

          

        

      

    

     

    
      
         

      

      
        -iii-

        
          

        

      

      
         

      

    

     

    INDEX OF
EXHIBITS

     

    Exhibit
A              –           Form
of Transition Services Agreement

     

    Exhibit
B              –           Form
of Escrow Agreement

     

    INDEX OF
SCHEDULES

     

    
      
        
          	
                  Schedule
      1.1(jj)

                	
                  Montreal
      Sublease Terms

                
	 
      	 
      
	
                  Schedule
      1.1(pp)

                	
                  Schedule
      of Certain Permitted Liens

                
	 
      	 
      
	
                  Schedule
      2.1(a)

                	
                  Schedule
      of Transferred Tangible Property

                
	 
      	 
      
	
                  Schedule
      2.1(b)

                	
                  Schedule
      of Transferred Intellectual Property

                
	 
      	 
      
	
                  Schedule
      2.1(c)

                	
                  Schedule
      of Transferred Contracts

                
	 
      	 
      
	
                  Schedule
      2.1(d)

                	
                  Schedule
      of Transferred Permits

                
	 
      	 
      
	
                  Schedule
      2.1(h)

                	
                  Schedule
      of Other Transferred Assets

                
	 
      	 
      
	
                  Schedule
      2.2(b)

                	
                  Schedule
      of Excluded Tangible Personal Property

                
	 
      	 
      
	
                  Schedule
      2.2(c)

                	
                  Schedule
      of Excluded Registered Intellectual Property

                
	 
      	 
      
	
                  Schedule
      2.2(e)

                	
                  Schedule
      of Excluded Contracts

                
	 
      	 
      
	
                  Schedule
      2.2(f)

                	
                  Schedule
      of Excluded Permits

                
	 
      	 
      
	
                  Schedule
      2.2(h)

                	
                  Schedule
      of Excluded Claims

                
	 
      	 
      
	
                  Schedule
      2.2(i)

                	
                  Schedule
      of Excluded Books and Records

                
	 
      	 
      
	
                  Schedule
      2.2(n)

                	
                  Schedule
      of Other Excluded Assets

                
	 
      	 
      
	
                  Schedule
      2.3(b)

                	
                  Schedule
      of Assumed Claims

                
	 
      	 
      
	
                  Schedule
      2.3(c)

                	
                  Schedule
      of Assumed Accounts Payable

                
	 
      	 
      
	
                  Schedule
      2.3(e)

                	
                  Schedule
      of Assumed Liabilities

                
	 
      	 
      
	
                  Schedule
      2.4(h)

                	
                  Schedule
      of Other Excluded Liabilities

                
	 
      	 
      
	
                  Schedule
      6.4(b)

                	
                  Schedule
      of Transferred Disclosures

                
	 
      	 
      
	
                  Schedule
      9.2(f)

                	
                  Opinion
      of Counsel to
Seller

                

        

      

    

    
      
         

      

      
        -iv-

        
          

        

      

      
         

      

    

     

    
      
        	
                Schedule 9.2(g)

              	
                Schedule
      of Key Employees

              
	 
      	 
      
	
                Schedule
      9.2(h)

              	
                Schedule
      of Consents

              
	 
      	 
      
	
                Schedule 9.2(i)

              	
                Schedule
      of Released Liens

              
	 
      	 
      
	
                Schedule
      9.2(j)

              	
                Schedule
      of Certain Creditors (Payoff
Letter)

              

      

    

     

    
      
         

      

      
        -v-

        
          

        

      

      
         

      

    

    PURCHASE
AND SALE AGREEMENT

     

    THIS
PURCHASE AND SALE AGREEMENT (this “Agreement”) is made
and entered into as of October 13, 2009 by and among Coherent, Inc., a Delaware
corporation (together with Coherent International LLC, “Buyer”), StockerYale,
Inc., a Massachusetts corporation (the “Seller”), and
StockerYale Canada, Inc., a corporation incorporated under the Canada Business
Corporations Act (“SYC”).  All
capitalized terms that are used in this Agreement shall have the respective
meanings ascribed thereto in Article I.

     

    WITNESSETH:

     

    WHEREAS,
Seller and SYC are engaged in the Business.

     

    WHEREAS,
Seller and SYC wish to sell to Buyer (and one or more of its Subsidiaries), and
Buyer (and one or more of its Subsidiaries) wishes to purchase from Seller and
SYC, all of the Transferred Assets, and Buyer is willing to assume the Assumed
Liabilities, all upon the terms and subject to the conditions set forth in this
Agreement.

     

    WHEREAS,
the respective Boards of Directors of Buyer, Seller and SYC have approved this
Agreement and the transactions contemplated hereby.

     

    WHEREAS,
concurrently with the execution hereof (but subject to and effective only upon
the Closing), (i) Seller, SYC and Buyer (and one or more of its Subsidiaries)
are entering into a Transition Services Agreement substantially in the form
attached hereto as Exhibit A (the “Transition Services
Agreement”), and (ii) Seller and Buyer (and one or more Subsidiaries) are
entering into an Escrow Agreement substantially in the form attached hereto as
Exhibit B (the
“Escrow
Agreement”) and together with the Transition Services Agreement, the
“Related
Agreements”).

     

    NOW,
THEREFORE, in consideration of the foregoing premises and the representations,
warranties, covenants and agreements set forth herein, as well as other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and accepted, and intending to be legally bound hereby, Buyer,
Seller and SYC hereby agree as follows:

     

    ARTICLE I

    DEFINITIONS
& INTERPRETATIONS

     

    1.1           Certain
Definitions. 
For all purposes of and under this Agreement, the following capitalized terms
shall have the following respective meanings:

     

    (a)          “Affiliate” shall
mean, with respect to any Person, any other Person which directly or indirectly
controls, is controlled by or is under common control with such
Person.  For purposes of the immediately preceding sentence, the term
“control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of such Person, whether
through ownership of voting securities, by contract or
otherwise.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)          “Associate” shall have
the meaning ascribed to such term in Rule 12b-2 under the Exchange
Act.

     

    (c)          “Balance Sheet” shall
mean the unaudited balance sheet of Seller related to the SOF Business (as
defined below) and SYC related to the Montreal Business (as defined below), each
as of June 30, 2009.

     

    (d)          “Business” shall mean
Seller’s specialty optical fiber division (“SOF Business”) and
SYC’s business (the “Montreal
Business”).

     

    (e)          
“Business Day”
shall mean any day, other than a Saturday, Sunday or any day which is a legal
holiday under the laws of the State of New York or is a day on which banking
institutions located in the State of New York are authorized or required by Laws
or other governmental action to close.

     

    (f)          “Business Employees”
shall mean all employees (i) of SYC and (ii) of the Seller or its Subsidiaries
who devote a substantial portion of their time to the Business.

     

    (g)          “Business Material Adverse
Effect” shall mean any adverse effect that is, or is reasonably likely to
be, materially adverse to the (i) business, operations, properties, assets
(including intangible assets), condition (financial or otherwise), or results of
operations of the Business, or (ii) ability of Seller and SYC to consummate the
transactions contemplated hereby, including the Related Agreements and any other
documents delivered or entered into in connection herewith; provided, however,
that for purposes of clause (i) above, in no event shall any of the following,
alone or in combination, be deemed to constitute, nor shall any of the following
be taken into account in determining whether there has been or shall be, a
Business Material Adverse Effect:  (A) any effect directly related to
the announcement or pendency of the transactions expressly contemplated by this
Agreement; (B) any effect that results from changes affecting any of the
industries in which Seller and SYC operate generally which do not have a
disproportionate adverse impact on Seller and SYC, taken as a whole; (C) any
effect that results from changes affecting the United States or Canadian economy
generally which do not have a disproportionate adverse impact on Seller, SYC and
their respective Subsidiaries, taken as a whole; and (D) any effect that results
from changes affecting the general worldwide economic or capital market
conditions which to do not have a disproportionate adverse impact on Seller and
SYC, taken as a whole.

     

    (h)          “Buyer Board” shall
mean the board of directors of Buyer.

     

    (i)          “Buyer Material Adverse
Effect” shall mean, with respect to Buyer, any adverse effect that is, or
is likely to be, materially adverse to the ability of Buyer and its Subsidiaries
to consummate the transactions contemplated hereby, including the Related
Agreements and any other documents delivered or entered into in connection
herewith.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    (j)          “Code” shall mean the
Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder, or any successor statute, rules and regulations
thereto.

     

    (k)          “Contract” shall mean
any contract, subcontract, agreement, commitment, note, bond, mortgage,
indenture, lease, license, sublicense, permit, franchise or other instrument,
obligation or binding arrangement or understanding of any kind or character,
whether oral or in writing.

     

    (l)          “Documented Invention
Disclosures” shall mean those documents styled as “Invention
Disclosures,” created by an employee of Seller or SYC and provided to Seller’s
or SYC’s patent departments or similar departments serving such function prior
to the Closing for consideration of whether to seek a patent on the invention
disclosed therein and which are related to the Business.

     

    (m)           “Employment
Liabilities” shall mean all Liabilities arising (A) out of Seller’s and
SYC’s (i) use of independent contractors prior to the Closing or (ii) employment
or service relationships with any Person prior to the Closing, and (B) under the
Worker Adjustment and Retraining Notification Act (or other similar law) for any
employee termination conducted by Seller and SYC.

     

    (n)          “Environmental Law”
shall mean any and all Laws, relating to the protection of the environment
(including ambient air, surface water, groundwater or land) or human health as
affected by the environment or Hazardous Substances or otherwise relating to the
production, use, emission, storage, treatment, transportation, recycling,
disposal, discharge, release, labeling or other handling of any Hazardous
Substances or any products or wastes containing any Hazardous Substances
including any Laws related to product take-back or content requirements, or the
investigation, clean-up or other remediation or analysis of Hazardous
Substances, including the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, the Resource Recovery and Conservation Act of 1976,
the Federal Water Pollution Control Act, the Clean Air Act, the Hazardous
Materials Transportation Act, the Clean Water Act, European Union Directive
2002/96/EC on waste electrical and electronic equipment (“WEEE Directive”),
European Union Directive 2002/95/EC on the restriction on the use of hazardous
substances (“RoHS
Directive”), China’s Administrative Measures on the Control of Pollution
Caused by Electronic Information Products (“China RoHS”), and
Directive 2006/121/EC of the European Parliament and of the Council of 18
December 2006 on the Registration, Evaluation, Authorisation and Restriction of
Chemicals, as amended (“REACH
Directive”).

     

    (o)          “Equity Interest”
shall mean capital stock, membership interests, options, warrants, stock
appreciation rights, or rights to subscribe for, calls or other instruments
exercisable for, or convertible into, the capital stock, membership interests or
similar equity interests of any Person.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    (p)          “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as amended, and the rules and
regulations promulgated thereunder, or any successor statue, rules and
regulations thereto.

     

    (q)          
“ERISA
Affiliate” includes any trade or business (whether or not incorporated)
which would be treated as a single employer with Seller or SYC under Section 414
of the Code.

     

    (r)          “Escrow Fund” shall
mean the escrow fund established under the Escrow Agreement.

     

    (s)          “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder, or any successor statute, rules and
regulations thereto.

     

    (t)          “Final Allocation”
shall mean the allocation of the Purchase Price for the Transferred Assets as
finally determined pursuant to Section 2.5(c).

     

    (u)          “GAAP” shall mean
generally accepted accounting principles in the United States, consistently
applied.

     

    (v)          “Governmental
Authority” shall mean any government, any governmental or regulatory
entity or body, department, commission, board, agency or instrumentality, and
any court, tribunal or judicial body, in each case whether federal, state,
county, provincial, and whether local or foreign.

     

    (w)          “Hazardous Substance”
shall mean any substance, material or waste that is characterized or regulated
under any Environmental Law as “hazardous,” “pollutant,” “contaminant,” “toxic”
or words of similar meaning or effect, or is otherwise a danger to health,
reproduction or the environment, including petroleum and petroleum products,
polychlorinated biphenyls and asbestos.

     

    (x)          “Hazardous Materials
Activities” shall mean the transportation, transfer, recycling, storage,
use, treatment, manufacture, removal, remediation, release, exposure of others
to, labeling or marking, sale, or distribution of any Hazardous Substance or any
product or waste containing a Hazardous Substance, or product manufactured with
ozone depleting substances, including, without limitation, any required
labeling, payment of waste fees or charges (including so-called e-waste fees)
and compliance with any product take-back or product content
requirements.

     

    (y)          “Indebtedness” shall
mean, with respect to the Seller and SYC, (i) all indebtedness for borrowed
money, (ii) all indebtedness evidenced by bonds, debentures, notes or other
similar instruments, (iii) all obligations to pay the deferred purchase price of
property or services (other than accounts payable incurred in the ordinary
course of business determined in accordance with GAAP), (iv) all obligations
with respect to capital leases, (v) all obligations created or arising under any
conditional sale or other title retention agreement with respect to property
acquired by such Person, (vi) all reimbursement and other payment obligations,
contingent or otherwise, in respect of letters of credit and similar surety
instruments, and (vii) all guaranty obligations with respect to
the  types of Indebtedness listed in clauses (i) through (vi)
above.

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    (z)          “Intellectual Property
Rights” shall mean common law and statutory rights anywhere in the world
arising under or associated with (i) patents, patent applications and inventors’
certificates, (ii) copyrights, copyright registrations, copyright applications
and “moral” rights, (iii) the protection of trade and industrial secrets and
confidential information (“Trade Secrets”), (iv)
trademarks, trade names, service marks, brand names, certifications, domain
names and URLs (“Trademarks”), (v)
other proprietary rights relating or with respect to the protection of
technology, (vi) divisions, continuations, renewals, reissuances and extensions
of the foregoing (as applicable) and (vii) analogous rights anywhere in the
world to those set forth above.

     

    (aa)       “Invention
Disclosures” shall mean both Documented Invention Disclosures and
Undocumented Invention Disclosures.

     

    (bb)       “IRS” shall mean the
United States Internal Revenue Service or any successor thereto.

     

    (cc)       “Knowledge” of Seller,
with respect to any matter in question, shall mean the actual knowledge of any
of the directors and executive officers of Seller, SYC and general managers of
Seller and SYC providing services to the Business, or the knowledge that any of
the foregoing persons would reasonably be expected to have after making due
inquiry of those persons who would reasonably be expected to have actual
knowledge of the matter in question.

     

    (dd)      “Law” shall mean any
and all applicable federal, state, local, municipal, foreign or other law,
statute, treaty, constitution, principle of common law, resolution, ordinance,
code, edict, decree, directive, guidance, order, rule, regulation, ruling or
requirement issues, enacted, adopted, promulgated, implemented or otherwise put
into effect by or under the authority of any Governmental
Authority.

     

    (ee)       “Legal Proceeding”
shall mean any action, claim, suit, litigation, proceeding (public or private),
arbitration, criminal prosecution, audit or investigation whether or not before
any Governmental Authority.

     

    (ff)         “Liabilities” shall
mean any liability, indebtedness, obligation or commitment of any kind, nature
or character (whether accrued, absolute, contingent, matured, unmatured or
otherwise and whether or not required to be recorded or reflected on a balance
sheet under GAAP).

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    (gg)      “Lien” shall mean (i)
any lien, pledge, hypothecation, charge, mortgage, deed of trust, security
interest, assignment for security, collateral assignment, encumbrance, claim,
infringement, interference, option, right of first refusal, preemptive right,
community property interest or restriction of any nature (including any
restriction on the voting of any security, any restriction on the transfer of
any security or other asset, any restriction on the possession, exercise or
transfer of any other attribute of ownership of any asset), (ii) the interest of
a vendor or a lessor under any conditional sale agreement, capital lease or
title retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to any asset or (iii) any
agreement to give any of the foregoing described in clause (i) or (ii) or other
preferential arrangement having the practical effect of any of the foregoing
described in clause (i) or (ii).

     

    (hh)      “Losses” shall mean
any and all deficiencies, judgments, settlements, demands, claims, actions or
causes of action, assessments, Liabilities, losses, damages, interest, fines,
penalties, costs and expenses (including reasonable legal, accounting and other
costs and expenses) incurred in connection with investigating, defending,
settling or satisfying any and all demands, claims, actions, causes of action,
suits, proceedings, assessments, judgments or appeals.

     

    (ii)         “MBCA” shall mean the
Massachusetts Business Corporation Act, or any successor statute
thereto.

     

    (jj)         “Montreal Sublease”
shall mean a sublease entered into by SYC, as sublandlord, and Buyer, as
subtenant, for SYC’s Montreal leased premises (the “Montreal Subleased
Property”), in the form of Schedule
1.1(jj).

     

    (kk)       “Net Assets at
Closing” shall mean the difference between the value of the Transferred
Assets and Assumed Liabilities determined in accordance with GAAP and in a
manner consistent with the Business Financial Statements for the Business on the
Closing Date and does not reflect the Excluded Assets and Excluded Liabilities
and decreases in the value of fixed assets or intangible assets of the Business
resulting from depreciation and amortization of goodwill after June 30, 2009, as
determined pursuant to Section
2.10.

     

    (ll)         “Open Source License”
shall mean any license, including, but not limited to, the GNU General Public
License (GPL), GNU Lesser General Public License (LGPL), Mozilla Public License
(MPL), BSD licenses, the Artistic License, the Netscape Public License, the Sun
Community Source License (SCSL) the Sun Industry Standards License (SISL) and
the Apache License, requiring software or other material to be distributed as
“free software”, “open source software” or under similar licensing or
distribution terms.

     

    (mm)     “Order” shall mean any
judgment, decision, decree, injunction, ruling, writ, assessment or order of any
Governmental Authority that is binding on any Person or its property under
applicable Laws.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    (nn)      “Payoff Letter” means
a letter from a creditor of Seller or SYC that indicates the principal amount of
Indebtedness for borrowed money owed by the aforementioned to such creditor,
accrued and unpaid interest thereon and the amount necessary to be paid at the
Closing or within five days of the Closing in order to pay off the Indebtedness
in full, which letter includes instructions for making such
payment.

     

    (oo)      “Permit” shall mean
any permit, license, authorization, consent, approval or franchise from a
Governmental Authority.

     

    (pp)      “Permitted Liens”
shall mean any or all of the following: (a) (i) Liens for Taxes and other
similar governmental charges and assessments which are not yet due and payable
or (ii) Liens for Taxes being contested in good faith by any appropriate
proceedings for which adequate reserves have been established in accordance with
GAAP, such contest effectively suspends collection of the contested obligation
and the enforcement of any Lien securing such obligation and the failure to make
payment pending such contest would not have a Business Material Adverse Effect;
(b) Liens of landlords and liens of carriers, warehousemen, mechanics and
materialmen and other like Liens arising in the ordinary course of business for
sums not yet due and payable; (c) statutory Liens, licenses, charges, adverse
claims, security interests or encumbrances of any nature whatsoever existing as
of the Closing Date and claimed or held by any Governmental Authority that are
related to obligations arising in the ordinary course of business that are not
due or delinquent; (d) security given in the ordinary course of business as of
the Closing Date to any public utility, Governmental Authority or other
statutory or public authority; (e) Liens imposed on the underlying fee interest
in leased property that are identified on Schedule 1.1(pp); and
(f) assets of customers of the Seller and SYC identified on Schedule 1.1(pp) that
are in the Seller’s and SYC’s possession and in accordance with GAAP are treated
as assets of the Seller or SYC, while title to such assets remains with such
customers.

     

    (qq)      “Person” shall mean
any individual, corporation (including any non-profit corporation), general
partnership, limited partnership, limited liability partnership, joint venture,
estate, trust, company (including any limited liability company or joint stock
company), firm or other enterprise, association, organization, entity or
Governmental Authority.

     

    (rr)        “Pre-Closing Hazardous
Materials Activities” shall mean any Hazardous Materials Activity
conducted on the Business Facilities prior to the Closing Date or otherwise
occurring prior to the Closing Date in connection with the conduct of the
Business.

     

    (ss)      
“Pre-Existing
Contamination” shall mean the presence on or before the Closing Date of
any Hazardous Substance in the soil, groundwater, surface water, air or building
materials of the Business Facilities.

     

    (tt)        “Registered Intellectual
Property” shall mean applications, registrations and filings for
Intellectual Property Rights that have been registered, filed, certified or
otherwise perfected or recorded with or by any state, government or other public
or quasi-public legal authority.

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    (uu)      “Sarbanes-Oxley Act”
shall mean the Sarbanes-Oxley Act of 2002.

     

    (vv)      “SEC” shall mean the
United States Securities and Exchange Commission or any successor
thereto.

     

    (ww)     “Securities Act” shall
mean the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder, or any successor statute, rules or regulations
thereto.

     

    (xx)        “Seller Acquisition
Proposal” shall mean any offer or proposal (other than any offer or
proposal by Buyer) relating to any Seller Acquisition Transaction.

     

    (yy)      
“Seller Acquisition
Transaction” shall mean any transaction or series of related transactions
(other than the transactions contemplated by this Agreement)
involving:

     

     
(i)           any
acquisition or purchase from Seller or any of its Subsidiaries by any Person or
“group” (as defined in or under Section 13(d) of the Exchange Act),
directly or indirectly, of voting securities of Seller or any of its
Subsidiaries representing, in the aggregate, ten percent (10%) or more of the
total voting power of any class or series of any then outstanding voting
securities of Seller or any of its Subsidiaries, or any tender offer or exchange
offer that if consummated would result in any Person or “group” (as defined in
or under Section 13(d) of the Exchange Act) beneficially owning voting
securities of Seller or any of its Subsidiaries representing, in the aggregate,
ten percent (10%) or more of the total voting power of any class or series of
any then outstanding voting securities of Seller or any of its
Subsidiaries;

     

     
(ii)          any merger,
consolidation, business combination or other similar transaction involving
Seller or any of its Subsidiaries pursuant to which the stockholders of Seller
immediately preceding such transaction hold, in the aggregate, less than ninety
percent (90%) of the equity or other similar interests in the surviving or
resulting entity of such transaction;

     

     
(iii)         any sale, lease
(other than in the ordinary course of business), exchange, transfer, license
(other than in the ordinary course of business), acquisition or disposition of
(A) ten percent (10%) or more of the assets of Seller, SYC and their respective
Subsidiaries taken as a whole (measured by the lesser of book or fair market
value thereof), or (B) assets of Seller, SYC and their respective Subsidiaries,
taken as a whole, generating or representing, in the aggregate, ten percent
(10%) or more of the consolidated revenues, operating income or net income of
Seller, SYC and their respective Subsidiaries, taken as a whole;

     

     (iv)         any
liquidation, dissolution, recapitalization or other significant corporate
reorganization of Seller or any of its Subsidiaries; or

     

     
(v)           any combination
of the foregoing.

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    (zz)       
“Seller Board”
shall mean the Board of Directors of Seller.

     

    (aaa)     “Seller Employee Benefit
Plans” shall mean (i) all “employee benefit plans” (as defined in Section
3(3) of ERISA), whether or not subject to ERISA and (ii) all other employment,
bonus, stock option, stock purchase or other equity-based, benefit, incentive
compensation, profit sharing, savings, retirement (including early retirement
and supplemental retirement), disability, insurance, vacation, incentive,
deferred compensation, supplemental retirement, termination, retention, change
of control and other similar fringe, welfare or other employee benefit plans,
programs, agreements, contracts, policies or arrangements (whether or not in
writing) maintained or contributed to for the benefit of or relating to any
current or former employee or director of Seller or SYC or any of their
respective ERISA Affiliates, or with respect to which Seller or SYC has any
material Liability.

     

    (bbb)    “Seller Intellectual
Property” shall mean any and all Intellectual Property Rights that are
owned or purported to be owned by, or held in the name of, Seller or
SYC.

     

    (ccc)     “Seller Product” shall
mean all products, technologies and services developed (including products,
technologies and services under development), owned, made, provided,
distributed, imported, sold or licensed by or on behalf of Seller or
SYC.

     

    (ddd)    “Seller’s Retained
Environmental Liabilities” means any Liability to indemnify, defend or
reimburse any Person with respect to: (i) a Pre-Existing Contamination; (ii) the
migration at any time prior to or after the Closing Date of Pre-Existing
Contamination to any other real property, or the soil, groundwater, surface
water, air or building materials thereof; (iii) any Pre-Closing Hazardous
Materials Activity; (iv) the exposure of any person prior to the Closing Date to
Pre-Existing Contamination or to Hazardous Substances in the course of or as a
consequence of any Pre-Closing Hazardous Materials Activities, without regard to
whether any health effect of the exposure has been manifested as of the Closing
Date; (v) the violation of any Environmental Laws by the Seller (in connection
with the Business) or any Subsidiary or any of their respective agents,
employees, predecessors in interest, contractors, invitees or licensees prior to
the Closing Date or in connection with any Pre-Closing Hazardous Materials
Activities prior to the Closing Date; and (vi) any actions or proceedings
brought or threatened by any third party with respect to any of the
foregoing.

     

    (eee)     “Source Code” shall
mean software and code, which may be printed out or displayed in human readable
form or from which object or other executable code can be derived by compilation
or otherwise.

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    (fff)       “Subsidiary” of any
Person shall mean (i) a corporation more than fifty percent (50%) of the
combined voting power of the outstanding voting stock of which is owned,
directly or indirectly, by such Person or by one of more other Subsidiaries of
such Person or by such Person and one or more other Subsidiaries thereof, (ii) a
partnership of which such Person, or one or more other Subsidiaries of such
Person or such Person and one or more other Subsidiaries thereof, directly or
indirectly, is the general partner and has the power to direct the policies,
management and affairs of such partnership, (iii) a limited liability company of
which such Person or one or more other Subsidiaries of such Person or such
Person and one or more other Subsidiaries thereof, directly or indirectly, is
the managing member and has the power to direct the policies, management and
affairs of such company or (iv) any other Person (other than a corporation,
partnership or limited liability company) in which such Person, or one or more
other Subsidiaries of such Person or such Person and one or more other
Subsidiaries thereof, directly or indirectly, has at least a majority ownership
and power to direct the policies, management and affairs thereof.

     

    (ggg)    “Tax” shall mean (i)
any and all federal, state, local and foreign taxes, including taxes based upon
or measured by gross receipts, income, profits, sales, use and occupation, and
value added, ad valorem, transfer, franchise, withholding, payroll, recapture,
employment, excise and property taxes, together with all interest, penalties and
additions imposed with respect to such amounts, (ii) any liability for the
payment of any amounts of the type described in clause (i) as a result of being
or ceasing to be a member of an affiliated, consolidated, combined or unitary
group for any period (including any liability under Treasury Regulation
Section 1.1502-6 or any comparable provision of foreign, state or local
Law) and (iii) any liability for the payment of any amounts of the type
described in clause (i) or (ii) as a result of any express or implied obligation
to indemnify any other Person or as a result of any obligations under any
agreements or arrangements with any other Person with respect to such amounts
and including any liability for taxes of a predecessor entity.

     

    (hhh)    “Tax Returns” shall
mean all returns, declarations, reports, estimates, statements and other
documents required to be filed in respect of any Taxes, including any amendments
or attachments thereto.

     

    (iii)        “Transferred
Disclosures” shall mean (i) the Documented Invention Disclosures listed
on Schedule
6.4(b), (ii) the Undocumented Invention Disclosures (including
Undocumented Invention Disclosures between the date of this Agreement and the
Closing Date), and (iii) all other Invention Disclosures that come into
existence between the date of this Agreement and the Closing Date by employees
of Seller or SYC employed in the Business.

     

    (jjj)        “Transferred
Employees” shall mean all employees (i) of any of the Selling Entities
who are offered and accept employment by Buyer or any Subsidiary of Buyer and
(ii) of any of the Selling Entities outside the U.S., who remain or become
employees of Buyer or any Subsidiary of Buyer as required by applicable
Laws.

     

    (kkk)     “Undocumented Invention
Disclosures” means those patentable inventions (other than the Documented
Invention Disclosures) that were first conceived and described in a writing by
an employee of Seller or SYC in the two-year period prior to Closing and related
to the Business.

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    1.2           Additional
Definitions.  The following capitalized terms shall have the
respective meanings ascribed thereto in the respective sections of this
Agreement set forth opposite each of the capitalized terms below:

     

    
      
        
          
            
              
                	
                        Term

                      	 
      	
                        Section Reference

                      
	
                        2009-2010 PARI R&D
Grant

                      	 
      	
                        7.3

                      
	
                        Accounting Firm

                      	 
      	
                        2.10(d)

                      
	
                        Accounting Report

                      	 
      	
                        2.10(a)

                      
	
                        Agreed Adjustments

                      	 
      	
                        2.10(c)

                      
	
                        Agreement

                      	 
      	
                        Preamble

                      
	
                        Appraiser

                      	 
      	
                        2.5(c)

                      
	
                        Assumed Claims

                      	 
      	
                        2.3(b)

                      
	
                        Assumed Liability

                      	 
      	
                        2.3

                      
	
                        Assumed Liabilities

                      	 
      	
                        2.3

                      
	
                        Business Financial
    Statements

                      	 
      	
                        3.5

                      
	
                        Buyer

                      	 
      	
                        Preamble

                      
	
                        Buying Entity

                      	 
      	
                        2.5(c)

                      
	
                        Buying Entities

                      	 
      	
                        2.5(c)

                      
	
                        Buyer Indemnified Parties

                      	 
      	
                        11.1

                      
	
                        Cash Portion

                      	 
      	
                        2.5(a)

                      
	
                        Closing

                      	 
      	
                        2.8(a)

                      
	
                        Closing Date

                      	 
      	
                        2.8(a)

                      
	
                        Collective Bargaining
      Agreements

                      	 
      	
                        3.14(a)

                      
	
                        Confidentiality Agreement

                      	 
      	
                        6.4(a)

                      
	
                        Consent

                      	 
      	
                        3.3(b)

                      
	
                        Dispute Notice

                      	 
      	
                        2.10(b)

                      
	
                        EAR

                      	 
      	
                        3.8(a)

                      
	
                        Effective Time

                      	 
      	
                        2.8(c)

                      
	
                        Escrow Agreement

                      	 
      	
                        Recitals

                      
	
                        Excluded Asset

                      	 
      	
                        2.2

                      
	
                        Excluded Assets

                      	 
      	
                        2.2

                      
	
                        Excluded Liabilities

                      	 
      	
                        2.4

                      
	
                        Excluded Liability

                      	 
      	
                        2.4

                      
	
                        FAR

                      	 
      	
                        3.20(a)

                      
	
                        Financial Schedules Date

                      	 
      	
                        2.1(a)

                      
	
                        Incentives

                      	 
      	
                        3.12(n)

                      
	
                        Indemnified Parties

                      	 
      	
                        11.2

                      
	
                        Indemnity Basket

                      	 
      	
                        11.3(b)

                      
	
                        In-Licenses

                      	 
      	
                        3.18(h)

                      
	
                        IP-Licenses

                      	 
      	
                        3.18(i)

                      
	
                        ITAR

                      	 
      	
                        3.8(a)

                      
	
                        Leased Real Property

                      	 
      	
                        3.15(b)

                      
	
                        Leases

                      	 
      	
                        3.15(b)

                      
	
                        Material Contract

                      	 
      	
                        3.11(a)

                      

              

            

          

        

      

    

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                	
                        Term

                      	 
      	
                        Section
      Reference

                      
	
                        Material In-Licenses

                      	 
      	
                        3.18(h)

                      
	
                        Material IP-Licenses

                      	 
      	
                        3.18(i)

                      
	
                        Material Out-Licenses

                      	 
      	
                        3.18(i)

                      
	
                        Montreal Business

                      	 
      	
                        1.1(d)

                      
	
                        Montreal Business Financial
      Statements

                      	 
      	
                        3.5

                      
	
                        Montreal Interim Financial
      Statements

                      	 
      	
                        3.5

                      
	
                        Non-Assignable Asset

                      	 
      	
                        2.9(a)

                      
	
                        Out-Licenses

                      	 
      	
                        3.18(i)

                      
	
                        Potentially Insured Claims

                      	 
      	
                        11.5

                      
	
                        Pre-Closing Taxes

                      	 
      	
                        8.1(a)

                      
	
                        Pre Closing Tax Period

                      	 
      	
                        8.1(a)

                      
	
                        Preliminary Purchase Price
      Allocation

                      	 
      	
                        2.5(c)

                      
	
                        Purchase Price

                      	 
      	
                        2.5(a)

                      
	
                        Related Agreements

                      	 
      	
                        Recitals

                      
	
                        Salem Leased Property

                      	 
      	
                        6.8

                      
	
                        Seller

                      	 
      	
                        Preamble

                      
	
                        Seller Disclosure Schedule

                      	 
      	
                        Article III

                      
	
                        Seller Inventory

                      	 
      	
                        3.24(a)

                      
	
                        Seller Licensee

                      	 
      	
                        3.18(b)

                      
	
                        Seller Registered Intellectual
      Property

                      	 
      	
                        3.18(a)

                      
	
                        Selling Entities

                      	 
      	
                        2.5(c)

                      
	
                        Selling Entity

                      	 
      	
                        2.5(c)

                      
	
                        Seller Indemnified Parties

                      	 
      	
                        11.2

                      
	
                        SOF Business

                      	 
      	
                        1.1(d)

                      
	
                        SOF Business Financial
      Statements

                      	 
      	
                        3.5

                      
	
                        SOF Interim Financial
      Statements

                      	 
      	
                        3.5

                      
	
                        Straddle Period

                      	 
      	
                        8.1(a)

                      
	
                        Termination Date

                      	 
      	
                        10.1(b)

                      
	
                        Third Party Insurance

                      	 
      	
                        11.5

                      
	
                        Transfer Taxes

                      	 
      	
                        2.6

                      
	
                        Transferred Asset

                      	 
      	
                        2.1

                      
	
                        Transferred Assets

                      	 
      	
                        2.1

                      
	
                        Transferred Claims

                      	 
      	
                        2.1(e)

                      
	
                        Transferred Contracts

                      	 
      	
                        2.1(c)

                      
	
                        Transferred Intellectual
      Property

                      	 
      	
                        2.1(b)

                      
	
                        Transferred Permits

                      	 
      	
                        2.1(d)

                      
	
                        Transferred Tangible
    Property

                      	 
      	
                        2.1(a)

                      
	
                        Transition Services
    Agreement

                      	 
      	
                        Recitals

                      
	
                        Visible Lasers

                      	 
      	
                        6.11

                      

              

            

          

        

      

    

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    1.3           Certain
Interpretations. 

     

    (a)         Unless
otherwise indicated, all references herein to Sections, Articles, Annexes,
Exhibits or Schedules, shall be deemed to refer to Sections, Articles, Annexes,
Exhibits or Schedules of or to this Agreement, as applicable.

     

    (b)         Unless
otherwise indicated, the words “include,” “includes” and “including,” when used
herein, shall be deemed in each case to be followed by the words “without
limitation.”

     

    (c)         Unless
otherwise indicated, all references herein to dollars or “$” shall mean and
refer to U.S. denominated dollars.

     

    (d)         The
table of contents and headings set forth in this Agreement are for convenience
of reference purposes only and shall not affect or be deemed to affect in any
way the meaning or interpretation of this Agreement or any term or provision
hereof.

     

    (e)         Unless
otherwise indicated, all references herein to the Subsidiaries of a Person shall
be deemed to include all direct and indirect Subsidiaries of such Person unless
otherwise indicated or the context otherwise requires.

     

    (f)          The
parties hereto agree that they have been represented by counsel during the
negotiation and execution of this Agreement and, therefore, waive the
application of any Law, holding or rule of construction providing that
ambiguities in an agreement or other document will be construed against the
party drafting such agreement or document.

     

    ARTICLE II

     

    PURCHASE
AND SALE

     

    2.1           Transferred
Assets.  Upon the terms and subject to the conditions set forth in
this Agreement (including the terms of Section 2.2), at the
Closing, Seller and SYC shall (and shall cause one or more of their respective
Subsidiaries to) irrevocably sell, transfer, convey, assign and deliver to Buyer
or one or more of its Subsidiaries, and Buyer shall (and, if applicable, shall
cause one or more of its Subsidiaries to) irrevocably purchase from Seller, SYC
and their respective Subsidiaries, in each case free and clear of all Liens
other than Permitted Liens, all right, title and interest of Seller, SYC and
their respective Subsidiaries as of the Closing in and to all assets, properties
and rights of Seller, SYC and its Subsidiaries that are primarily used or held
for use in, or primarily related to, the Business, wherever located (each, a
“Transferred
Asset” and collectively, the “Transferred Assets”),
including the following:

     

    (a)         the
tangible personal property identified on Schedule 2.1(a) which
is dated as of October 9, 2009 (the “Financial Schedules
Date”) and the tangible personal property and trade fixtures owned by
Seller or SYC and located at the Montreal Subleased Property and Salem Leased
Property, as well as the tangible personal property that is primarily used or
held for use in, or primarily related to, the Business that has been acquired by
Seller, SYC and their respective subsidiaries during the period of time between
the Financial Schedules Date and the Closing (collectively, the “Transferred Tangible
Property”);

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    (b)         all
Seller Intellectual Property that (i) would be infringed or misappropriated
absent a license by the operation of the Business in the manner conducted prior
to the Closing or (ii) was created by any employee of or consultant to the
Business, including the Registered Intellectual Property identified on Schedule 2.1(b)
(collectively, whether or not identified on Schedule 2.1(b), the
“Transferred
Intellectual Property”), together with all goodwill of the Business
associated with any Trademarks included therewith, and the right to all past and
future damages arising from any third party infringement or other violation of
such Transferred Intellectual Property;

     

    (c)         all
contracts identified on Schedule 2.1(c)
(collectively, whether or not identified on Schedule 2.1(c), the
“Transferred
Contracts”), together with all rights and benefits
thereunder;

     

    (d)         all
Permits identified on Schedule 2.1(d)
(collectively, whether or not identified on Schedule 2.1(d), the
“Transferred
Permits”), together with all rights thereunder;

     

    (e)         all
claims, actions, causes of action, choses in action, rights of recovery, rights
of setoff, rights of recoupment, rights of indemnification and all other similar
rights of any kind or nature (the “Transferred
Claims”);

     

    (f)          all
accounts receivable and prepaid expenses;

     

    (g)         copies
of all books and records and originals of all ledgers, files, documents and
correspondence, customer, supplier, advertiser, circulation and other lists
(including subscriber lists), invoices and sales data, and studies, reports and
other printed or written materials or data owned by Seller and SYC as of the
Closing that relate to the Business; and

     

    (h)         the
other assets identified on Schedule
2.1(h).

     

    2.2           Excluded
Assets.  Notwithstanding anything to the contrary set forth in Section 2.1 or
elsewhere in this Agreement, Seller and SYC shall not (and shall not cause any
of their respective Subsidiaries) sell, transfer, convey, assign and deliver to
Buyer or any of its Subsidiaries any assets, properties and rights of Seller,
SYC or any of their respective Subsidiaries other than the Transferred Assets,
and Buyer shall not purchase (or cause any of its Subsidiaries to purchase) from
Seller, SYC or any of their respective Subsidiaries any assets, properties or
rights of Seller, SYC or any of their respective Subsidiaries other than the
Transferred Assets.  Without limiting the generality of the foregoing,
for all purposes of and under this Agreement, “Transferred Assets” shall not
include any assets, properties or rights of Seller or any of its Subsidiaries
other than the Transferred Assets (each, an “Excluded Asset” and
collectively, the “Excluded Assets”),
and shall expressly exclude the following, in each case whether or not used or
held for use in, necessary for or that primarily relate to the
Business:

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    
       

      (a)           all
Equity Interests and the corporate charter and bylaws, qualifications to
transact business as a foreign corporation, arrangements with registered agents
relating to foreign qualifications, taxpayer and other identification numbers,
seals, minute books, stock transfer books, records and ledgers, blank stock
certificates and other documents relating to organization, maintenance and
existence of any Subsidiaries of Seller;

       

      (b)           the
tangible personal property identified on Schedule
2.2(b);

       

      (c)       
    the Registered Intellectual Property identified on Schedule
2.2(c);

       

      (d)           all
interests in real property other than pursuant to the Montreal
Sublease;

       

      (e)        
   the Contracts identified on Schedule
2.2(e);

       

      (f)          
 the Permits identified on Schedule
2.2(f);

       

      (g)           all
insurance policies;

       

      (h)           the
claims, actions, causes of action, choses in action, rights of recovery, rights
of setoff, rights of recoupment and rights of indemnification identified in
Schedule
2.2(h), as well as all claims, actions, causes of action, choses in
action, rights of recovery, rights of setoff, rights of recoupment and rights of
indemnification that directly relate to or arise out of any Excluded Assets or
Excluded Liabilities;

       

      (i)           
the books, records, ledgers, files, documents and correspondence, all customer,
supplier, advertiser, circulation and other lists (including subscriber lists),
all invoices and sales data, and all studies, reports and other printed or
written materials or data identified in Schedule
2.2(i);

       

      (j)           
all assets of and rights under any Seller Employee Benefit Plans;

       

      (k)           all
cash and cash equivalents;

       

      (l)           
all refunds for Taxes; and

       

      (m)          all
rights of Seller and SYC under this Agreement, the Related Agreements and any
other agreements, contracts, certificates or instruments executed and delivered
by Seller or SYC in connection with this Agreement and the transactions
contemplated hereby; and

       

      (n)           the
other assets identified on Schedule
2.2(n).

       

      2.3           Assumed
Liabilities. Upon the terms and subject to the conditions set forth
in this Agreement (including the terms of Section 2.4), at the
Closing, Buyer shall (or shall cause one or more of its Subsidiaries to)
irrevocably assume from Seller and SYC, and Seller and SYC shall irrevocably
assign to Buyer or one or more of its Subsidiaries, only the following
Liabilities of Seller and SYC as of the Closing that relate to the Business
(each, an “Assumed
Liability” and collectively, the “Assumed
Liabilities”):

      
        
           

        

        
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      (a)           all
Liabilities of Seller and SYC under the Transferred Contracts identified on
Schedule
2.1(c);

       

      (b)           all
Liabilities of Seller and SYC arising out of or in connection with the third
party claims, actions, causes or action, choses in action, rights of recovery,
rights of setoff, rights of recoupment and rights of indemnification against
Seller and SYC identified on Schedule 2.3(b)
(collectively, the “Assumed
Claims”);

       

      (c)           all
accounts payable related to the Business identified on Schedule 2.3(c) which
is dated as of the Financial Schedules Date, as well as accounts payable to the
extent related to the Business that have arisen during the period of time
between the Financial Schedules Date and the Closing;

       

      (d)           all
Liabilities that arise after the Closing with respect to periods commencing
after the Closing relating to the Transferred Employees;

       

      (e)      
     the Liabilities identified on Schedule
2.3(e).

       

      2.4           Excluded
Liabilities.  Buyer shall not assume (and shall not cause any of its
Subsidiaries to assume) from Seller, SYC or any of their respective Subsidiaries
any Liabilities other than the Assumed Liabilities.  Without limiting
the generality of the foregoing, for all purposes of and under this Agreement,
“Assumed Liabilities” shall not include any Liabilities of Seller, SYC or any of
their respective Subsidiaries other than the Assumed Liabilities (each, an
“Excluded
Liability” and collectively, the “Excluded
Liabilities”), and shall expressly exclude the following, in each case
whether or not related to the Business:

       

      (a)           all
Liabilities that relate to or arise out of any Excluded Assets or other Excluded
Liabilities;

       

      (b)           all
Liabilities under the Seller Employee Benefit Plans and all Employment
Liabilities;

       

      (c)           all
Liabilities of Seller, SYC and their respective Subsidiaries for Taxes payable
by Seller, SYC and their respective Subsidiaries, including Taxes that are the
Liability of Seller, SYC and their respective Subsidiaries pursuant to and in
accordance with the terms of Section 2.6 and Article VIII;

       

      (d)           all
Liabilities of Seller, SYC and their respective Subsidiaries arising out of or
in connection with any third party claims, actions, causes or action, choses in
action, rights of recovery, rights of setoff, rights of recoupment and rights of
indemnification against Seller, SYC and their respective Subsidiaries other than
the Assumed Claims;

      
        
           

        

        
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      (e)           all
Liabilities of Seller and SYC for fees and expenses incurred in connection with
this Agreement and the transactions contemplated hereby;

       

      (f)      
     Seller’s Retained Environmental
Liabilities;

       

      (g)           all
Liabilities of Seller, SYC and any of their respective Subsidiaries under this
Agreement and any other agreements, contracts, certificates or instruments
executed and delivered by Seller, SYC or any of their respective Subsidiaries in
connection with this Agreement and the Transactions contemplated hereby;
and

       

      (h)           the
Liabilities identified on Schedule
2.4(h).

       

      2.5           Consideration for Transferred
Assets. 

       

      (a)           Consideration.
 The aggregate purchase price (the “Purchase Price”) for
the Transferred Assets shall consist of (i) $15,000,000 in cash (the “Cash Portion”), (ii)
the amount, if any, payable by Buyer or Seller in accordance with Section 2.10(f)
hereof and (iii) assumption of the Assumed Liabilities.

       

      (b)           Payment in Full.
 (A) The delivery of the Cash Portion by Buyer (or one or more of its
Subsidiaries), (i) minus the sum of the deposit of $750,000 of the Cash Portion
in the Escrow Fund, (ii) plus the amount, if any, payable by Buyer or Seller in
accordance with Section 2.10(f)
(which may be a positive or negative number, which will result in an increase or
a decrease in the cash amount paid, as applicable) and (iii) minus the payment
of the amounts set forth in the Payoff Letter, and (B) the assumption of the
Assumed Liabilities by Buyer (or one or more of its Subsidiaries) pursuant to
and in accordance with the terms of this Agreement shall constitute payment in
full for all of the Transferred Assets.  At or immediately following
the Closing, Buyer will deposit $750,000 in the Escrow Fund.

       

      (c)           Allocation of Transferred
Assets, Assumed Liabilities and Purchase Price.  Within 60 days
following the Closing Date, Buyer shall prepare a schedule setting forth Buyer
(if applicable) and each Subsidiary of Buyer that will be purchasing Transferred
Assets and/or assuming Assumed Liabilities pursuant to this Agreement (each, a
“Buying Entity”
and collectively, the “Buying Entities”) and
which Transferred Assets such Buying Entities are purchasing and which Assumed
Liabilities such Buying Entities are assuming.  Prior to the Closing,
Seller shall prepare a schedule setting forth Seller and each Subsidiary of
Seller that will be selling any Transferred Assets and/or assigning any Assumed
Liabilities pursuant to this Agreement (each, a “Selling Entity” and
collectively, the “Selling Entities”)
and which Transferred Assets such Selling Entities are selling and which Assumed
Liabilities such Selling Entities are assigning.  Within 60 days
following the Closing Date, Buyer shall deliver to Seller a preliminary purchase
price allocation among the Transferred Assets in accordance with Section 1060 of
the Code (the “Preliminary Purchase Price
Allocation”).  Within five (5) days after Seller's receipt of
the Preliminary Purchase Price Allocation, the Preliminary Purchase Price
Allocation shall be adjusted by the parties (or if the parties cannot agree
within five (5) days, by a nationally or regionally recognized valuation firm
mutually acceptable to Buyer and Seller (the “Appraiser”)).  The
decision of the Appraiser with regard to the allocation of the Purchase Price
among the Transferred Assets shall be final and binding on the Buying Entities
and the Selling Entities, and the costs of the Appraiser shall be shared equally
by the Buyer and Seller.  Each of Buyer and Seller, when reporting the
transactions consummated hereunder in its own Tax Returns shall allocate the
Purchase Price paid or received, as the case may be, in a manner that is
consistent with the Final Allocation.  Additionally, each of Buyer and
Seller will comply with, and furnish the information required by, Section 1060
of the Code, and any regulation thereunder.

      
        
           

        

        
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      2.6           Sales and Use
Taxes.  Seller and SYC shall bear and pay any and all sales, use,
goods and services, value added, transfer and other similar taxes arising out of
the transfer of the Transferred Assets to Buyer or its designees pursuant hereto
(the “Transfer
Taxes”).  To the extent permitted by applicable Law, Buyer
shall cooperate with Seller and SYC in minimizing such Transfer
Taxes.  To the extent any Tax authority provides notice to Buyer of an
audit of the Transfer Taxes, Buyer shall promptly notify Seller or any successor
thereto and Seller and SYC or any successor thereto shall promptly assume
responsibility for such audit and shall bear and pay when due any additional
Transfer Taxes (plus interest and penalties determined to be due thereon)
ultimately assessed with respect to the transfer of the Transferred Assets to
Buyer or its designee pursuant hereto.  Buyer shall cause its
Subsidiary, Coherent International LLC, to be the purchaser of the Transferred
Assets of the Montreal Business.  Buyer represents that Coherent
International LLC has made the appropriate registrations in the province of
Quebec to obtain Goods and Services Tax and Quebec Sales Tax identification
numbers and has obtained such identification numbers from the competent
authorities.  SYC will, and Buyer shall cause Coherent International
LLC to, undertake to file the joint elections provided for under
subsection 167(1) of the Excise Tax Act (Canada) and
article 75 of An Act
respecting the Quebec sales tax  with the competent authorities by
the due date for such filing.

       

      2.7           Bulk Transfer
Laws.  Buyer and Seller shall waive, to the fullest extent permitted
by applicable Law, any and all bulk transfer or similar Laws that may apply to
the transactions contemplated by this Agreement.  Notwithstanding the
foregoing, Seller shall indemnify and hold Buyer and each of its designees who
acquire Transferred Assets harmless from and against any and all Losses incurred
by Buyer or such designee in respect of any such bulk transfer or similar Laws
and Buyer’s or such designee’s noncompliance therewith or waiver
thereof.

       

      2.8           Closing. 

       

      (a)           Closing Place, Time and
Date.  Unless this Agreement is earlier terminated pursuant to
Section 10.1,
the closing of the transactions contemplated by this Agreement (the “Closing”) shall be
held at the offices of Wilson Sonsini Goodrich & Rosati, Professional
Corporation, 650 Page Mill Road, Palo Alto, California at 10:00 a.m. PDT on the
date which is two (2) Business Days following the satisfaction or waiver (to the
extent permitted hereunder) of the conditions set forth in Article IX
(other than those conditions that by their terms are not capable of being
satisfied or waived until the Closing, but subject to the satisfaction or waiver
(to the extent permitted hereunder) of such conditions at the Closing), or at
such other place and such other location, time and/or date as the parties hereto
shall mutually agree.  For all purposes of and under this Agreement,
“Closing Date”
shall mean and refer to the actual date on which the Closing shall occur
pursuant to this Agreement.

      
        
           

        

        
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      (b)           Closing
Deliveries.

       

      (i)           At
the Closing, Seller shall deliver, or cause to be delivered, to Buyer or its
designees the following:

       

      a)           the
Transferred Assets;

       

      b)          such
executed deeds, bills of sale, assignments or other instruments of transfer and
assignment, and releases (including releases or terminations of Liens on the
Transferred Assets other than Permitted Liens) as are reasonably necessary to
consummate the sale and transfer of the Transferred Assets contemplated by this
Agreement, all in form and substance reasonably satisfactory to Buyer and its
counsel;

       

      c)           the
copy of resolutions of the Seller Board and the board of directors of SYC
authorizing the execution, delivery and performance of this Agreement, the
Related Agreements and each other agreement, document or certificate to which it
is a party and is required to be delivered pursuant hereto or in connection
herewith and authorizing the consummation of the transactions contemplated
hereby and thereby by Seller and SYC and a certificate of the secretary or clerk
of Seller, dated the Closing Date, to the effect that such resolutions were duly
adopted and are in full force and effect;

       

      d)          duly
executed counterparts to each of the Related Agreements and the Montreal
Sublease;

       

      e)           certificates
satisfying the requirements of Treasury Regulation § 1.1445-2(b) that exempt the
Buyer Entities from any requirement to withhold Taxes under Code § 1445;
and

       

      f)           any
and all other documents, instruments, certificates and agreements contemplated
by Article IX, by
the Related Agreements or as Buyer may reasonably request in order to
effectively transfer to Buyer or its designees all of the Transferred Assets
pursuant hereto to the fullest extent permitted by applicable Law.

       

      (ii)           At
the Closing, Buyer shall deliver, or cause to be delivered, to Seller or SYC (as
Seller may direct) the following:

       

      a)           an
amount in cash equal to the Cash Portion (subject to the adjustments set forth
in Section
2.5(b) above), payable in immediately available funds by wire transfer to
an account designated by Seller to Buyer in writing not later than two Business
Days prior to the Closing Date;

      
        
           

        

        
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      b)          duly
executed counterparts to each of the Related Agreements and Montreal
Sublease;

       

      c)           such
executed assignment and assumption instruments as are reasonably necessary to
consummate the assumption of the Assumed Liabilities contemplated by this
Agreement, all in form and substance reasonably satisfactory to Seller and its
counsel;

       

      d)          the
copy of resolutions of the Buyer Board, or the board of directors of its
designees as may be appropriate, authorizing the execution, delivery and
performance of this Agreement, and each other agreement, document or certificate
to which it is a party and is required to be delivered pursuant hereto or in
connection herewith and authorizing the consummation of the transactions
contemplated hereby and thereby by Buyer and a certificate of the secretary of
Buyer, dated the Closing Date, to the effect that such resolutions were duly
adopted and are in full force and effect; and

       

      e)           any
and all other instruments, certificates and agreements contemplated by Article IX, by
the Related Agreements or as Seller may reasonably request in order to
effectively make Buyer or one or more of its designees responsible for all
Assumed Liabilities pursuant hereto to the fullest extent permitted by
applicable Law.

       

      (c)           Effective
Time.  The effective date of the transfer of the Transferred
Assets from Seller to Buyer or its designees pursuant hereto shall be the close
of business on the day immediately preceding the Closing Date (the “Effective
Time”).  From and after the Effective Time, the Business shall
be conducted and the Transferred Assets shall be held for the account and
benefit, and at the risk, of Buyer or its designees, as
applicable.

      
        
           

        

        
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      2.9           Non-Assignable
Assets. 

       

      (a)           Notwithstanding
anything to the contrary set forth in this Agreement or any Related Agreement,
this Agreement shall not constitute an agreement to assign any Contract or
Permit that would otherwise be a Transferred Asset under this Agreement, or any
benefit arising thereunder or resulting therefrom, if and to the extent that an
attempted assignment, transfer or conveyance thereof, without the consent of a
party thereto (other than Seller, SYC or any of their respective Subsidiaries)
or Governmental Authority, as the case may be, would constitute a breach or
other contravention thereof or in any way adversely affect the rights of Buyer
or any of its designees thereunder (each, a “Non-Assignable
Asset”).  Prior to the Closing, Seller and SYC shall, and shall
cause each of their respective Subsidiaries to, use all commercially reasonable
efforts to obtain the consent of any Persons and Governmental Authorities that
may be required in order to assign, transfer and convey all of the Transferred
Contracts and Transferred Permits to Buyer or its designees pursuant to this
Agreement.  If such consent is not obtained prior to the Closing, or
if an attempted assignment, transfer or conveyance thereof would be ineffective
or would adversely affect the rights thereunder so that Buyer would not receive
substantially all such rights, (i) Seller shall, and shall cause each other
Selling Entity to, continue to use reasonable best efforts to obtain the consent
of any Persons or Governmental Authorities that may be required to assign,
transfer or convey each Non-Assignable Asset to Buyer or its designees, and (ii)
Seller and Buyer shall cooperate in a mutually agreeable arrangement under which
Buyer would obtain the benefits and assume the obligations thereunder in
accordance with this Agreement, including by subcontracting, sub-licensing or
sub-leasing to Buyer, or under which Seller would enforce for the benefit of
Buyer, with Buyer assuming Seller’s obligations, any and all rights of Seller
against a third party thereto.  Seller shall promptly pay to Buyer
when received all monies received by Seller in respect of such Non-Assignable
Assets or any benefit arising thereunder, except to the extent the same
represents an Excluded Asset.  To the extent the benefits therefrom
and obligations thereunder have been provided by alternative arrangements as
provided above, any such Non-Assignable Asset shall be deemed to be a
Transferred Asset, provided that Buyer shall not be responsible for any
Liabilities (i) arising out of a claim of breach of such Non-Assignable Asset
due to the establishment of the alternative arrangements, or (ii) arising out of
such Non-Assignable Asset as a result of Seller’s action without Buyer’s
approval in a manner inconsistent with the alternative
arrangements.

       

      (b)           In
furtherance and not in limitation of Section 2.9(a), in
the event that Seller is unable to obtain any required consent to the transfer
at Closing to the Buyer of any Non-Assignable Asset and Seller and Buyer have
failed to agree on alternate arrangements to an assignment reasonably
satisfactory to Buyer, then (i) Seller shall remain a party to and shall
continue to be bound by such Non-Assignable Asset, (ii) Buyer shall pay, perform
and discharge fully all of the obligations of Seller thereunder from and after
the Closing Date, upon the terms and subject to the conditions of such
Non-Assignable Asset, (iii) Seller shall, without further consideration
therefor, pay, assign and remit to Buyer promptly all monies, rights and other
consideration received in respect of such Non-Assignable Asset on and after the
Closing Date, and (iv) Seller shall, without further consideration therefor,
exercise and exploit its rights and options under such Non-Assignable Asset in
the manner and only to the extent directed by Buyer.  If and when any
consent shall be obtained following the Closing Date with respect to the
transfer by Seller to Buyer of any such Non-Assignable Asset or such
Non-Assignable Asset shall otherwise become assignable following the Closing
Date, Seller shall promptly assign all of its rights and obligations thereunder
to Buyer, without further consideration therefor, and Buyer shall, without
further consideration therefor, assume such rights and obligations, to the
fullest extent permitted.  The existence of the provisions of this
Section 2.9
shall not reduce or otherwise adversely affect any party’s ability to enforce
any of its rights under this Agreement.

      
        
           

        

        
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      2.10         Closing Date Balance Sheet
Adjustment. 

       

      (a)           As
promptly as practicable, and in any event not later than sixty (60) days after
the Closing Date, Buyer shall prepare and deliver to Seller a written statement
(the “Accounting
Report”) setting forth Buyer’s good faith calculation of the Net Assets
at Closing, which shall be based on Buyer’s review of the financial and other
books and records of Seller, SYC and their respective Subsidiaries and such
other documents as Buyer and Seller shall mutually agree.

       

      (b)           Seller
shall have the right to review the Accounting Report and, within thirty (30)
days after the date of receipt of such Accounting Report, may deliver to Buyer a
certificate (a “Dispute Notice”)
setting forth its objections, if any, to the Accounting Report, together with a
summary of the reasons therefor and calculations which, in its view, are
necessary to eliminate such objections.  If Seller does not object
within such thirty (30) day period, the determination of Net Assets at Closing
as set forth in the Accounting Report shall be final and binding.

       

      (c)           If
Seller objects to the Accounting Report within such thirty (30) day period,
Buyer and Seller shall negotiate in good faith and use their reasonable best
efforts to resolve such objections by written agreement (the “Agreed Adjustments”)
within fifteen (15) days of receipt by Buyer of the Dispute
Notice.  If Buyer and Seller resolve such objections, the Accounting
Report, as adjusted by the Agreed Adjustments, shall be the final and binding
determination of the Net Assets at Closing.

       

      (d)           If
any such objections are not resolved by Agreed Adjustments within such fifteen
(15) day period, then Buyer and Seller shall submit such unresolved objections
to the national office of a nationally recognized accounting firm that is
mutually acceptable to Buyer and Seller and that is not the current independent
registered public accounting firm of either Buyer or Seller (the “Accounting
Firm”).  The Accounting Firm shall act as an expert, not as an
arbitrator, and shall be directed by Buyer and Seller to resolve such objections
based solely on the written submissions of Buyer and Seller.  The
Accounting Firm shall investigate only those items which are in dispute and
shall not assign a value to any item that is (i) greater than the greatest value
for such item claimed by either of Buyer or Seller or (ii) lower than the lowest
value for such item claimed by either of Buyer or Seller.  The parties
shall instruct the Accounting Firm to render its determination within 30 days of
the referral of such matter thereto and to deliver written reports to each of
Buyer and Seller setting forth its resolution of such unresolved
objections.  The Accounting Report, after giving effect to any Agreed
Adjustments and to the resolution of disputed matters by the Accounting Firm,
shall be the final and binding determination of Net Assets at
Closing.

       

      (e)           The
parties shall make available to the other parties to this Agreement and, if
applicable, the Accounting Firm, (i) such books, records and other information
(including work papers) as any of the foregoing may reasonably request to
prepare or review the Accounting Report or any matters submitted to the
Accounting Firm and (ii) those of its employees and representatives who were
primarily responsible for the preparation of the Accounting Report or the
Dispute Notice, as the case may be.  The fees and expenses of the
Accounting Firm hereunder shall be paid by the party whose calculation or
estimate of disputed items on an aggregate basis represents the greatest
difference from the Accounting Firm’s determination of those items on an
aggregate basis.

      
        
           

        

        
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      (f)           If
Net Assets at Closing is greater than $4,561,072, and such difference is greater
than $150,000, then Buyer shall promptly (and in any event within five (5)
Business Days) pay such amount in excess of $150,000 to the Seller up to a
maximum of $500,000 and (ii) if $4,561,072 is greater than the Net Assets at
Closing, then Seller shall promptly (and in any event within five (5) Business
Days) pay such amount in excess of $150,000 to the Buyer.

       

      2.11         Further Action. 
Seller shall, at any time and from time to time after the Closing Date, upon the
request of Buyer, do, execute, acknowledge and deliver, or cause to be done,
executed, acknowledged and delivered, all such further deeds, assignments,
transfers and other instruments of transfer and conveyance as may be required
for the assigning, recording, transferring, granting and conveying to Buyer or
its successors and assigns, or for aiding and assisting in collecting and
reducing to possession, any or all of the Transferred Assets.

       

      ARTICLE III

      REPRESENTATIONS
AND WARRANTIES OF SELLER

       

      Except,
with respect to any Section or subsection of this Article III, as
set forth in the corresponding Section or subsection of the disclosure schedule
delivered by Seller and SYC to Buyer on the date of this Agreement (the “Seller Disclosure
Schedule”), Seller and SYC hereby represent and warrant to Buyer as is
set forth in this Article III.  The
number and section references in the Seller Disclosure Schedule shall correspond
to the numbered and lettered paragraphs in the Agreement.  Information
disclosed in a particular section or subsection of the Seller Disclosure
Schedule shall be deemed to be disclosed and incorporated into any other section
or subsection of the Seller Disclosure Schedule where such disclosure would
otherwise be appropriate, but only to the extent that it is reasonably apparent
from the express language of such disclosure that it applies to such other
section or subsection. Headings, captions and cross-references in the Seller
Disclosure Schedule are for convenience of reference only and shall in no way
modify, limit or affect, or be considered in construing or interpreting any
information provided herein.  The information contained in the Seller
Disclosure Schedule is as of the date of the Agreement, but shall not alter the
date as of which any representation or warranty is made pursuant to the
Agreement. The inclusion of any information on any part of the Seller Disclosure
Schedule shall not be deemed to be an admission or acknowledgement by the
Seller, SYC or any of their respective Subsidiaries that such information is
material or that such information includes any act or omission outside the
ordinary course of business of the Seller or SYC. Nothing in the Seller
Disclosure Schedule constitutes an admission of liability or obligation of the
Seller or SYC or an admission against the interests of the Seller or
SYC.

      
        
           

        

        
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      3.1           Organization and
Standing.  Each Selling Entity (i) is a corporation or other
legal entity duly organized, validly existing and in good standing under the
Laws of the jurisdiction of its respective organization (to the extent the “good
standing” concept is applicable in the case of any jurisdiction outside the
United States), (ii) has the requisite corporate power and authority to
carry on its respective business as it is presently being conducted and to own,
lease or operate its respective properties and assets, and (iii) is duly
qualified to do business and is in good standing in each jurisdiction where the
character of its properties owned or leased or the nature of its activities make
such qualification necessary (to the extent the “good standing” concept is
applicable in the case of any jurisdiction outside the United States), except in
any jurisdictions other than the State of New Hampshire, the city of Montreal or
the province of Quebec, where the failure to be so qualified or in good standing
would not, individually or in the aggregate, have a Business Material Adverse
Effect.  No Selling Entity is in violation of its certificate of
incorporation, bylaws or other applicable constituent documents in any material
respect.

       

      3.2           Authorization; Board
Approval. 

       

      (a)           Each
Selling Entity has all requisite corporate or other organizational power and
authority to execute and deliver this Agreement and any Related Agreement to
which it will be a party, to consummate the transactions contemplated by this
Agreement and the Related Agreements and to perform its obligations hereunder
and thereunder.  The execution and delivery by each Selling Entity of
this Agreement and the Related Agreements to which it will be a party and the
consummation by each Selling Entity of the transactions contemplated by this
Agreement and the Related Agreements have been duly authorized by all necessary
corporate action on the part of each Selling Entity, and no additional corporate
or other actions or proceedings on the part of any Selling Entity is necessary
to authorize, adopt or approve this Agreement and the Related Agreements and the
transactions contemplated hereby and thereby.  This Agreement has
been, and each of the Related Agreements upon their execution and delivery will
be, duly executed and delivered by each Selling Entity party thereto and,
assuming the due authorization, execution and delivery by Buyer, constitutes a
legal, valid and binding obligation of each such Selling Entity, enforceable
against such Selling Entity in accordance with its terms, except that such
enforceability (a) may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other similar Laws affecting or relating to
creditors’ rights generally and (b) is subject to general principles of
equity.

       

      (b)           On
October 7, 2009, by unanimous written consent of the entire Board of Directors
of the Seller, the Seller Board unanimously approved this Agreement and the
transactions contemplated hereby, including the transfer of the Transferred
Assets.  As of the date hereof, the Seller Board has not rescinded or
modified in any way the foregoing determinations and actions.

       

      (c)           No
action on the part of the stockholders of Seller is required to approve the sale
of the Transferred Assets contemplated hereby.  The approval of the
sole stockholder of SYC is required to approve the sale of the Transferred
Assets contemplated hereby.

      
        
           

        

        
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      3.3          Non-contravention; Required
Consents. 

       

      (a)           The
execution, delivery and performance of this Agreement and the Related Agreements
by each Selling Entity party thereto, the consummation by each Selling Entity of
the transactions contemplated by this Agreement and the Related Agreements and
the compliance by each Selling Entity with any of the terms hereof and thereof
do not and will not (i) violate or conflict with any provision of the
certificates of incorporation or bylaws or other constituent documents of any of
the Selling Entities, (ii) subject to obtaining such Consents identified in
Section
3.3(a)(ii) of the Seller Disclosure Schedule, violate, conflict with, or
result in the breach of or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or result in the
termination of, or accelerate the performance required by, or result in a right
of termination or acceleration under, any Contract to which any of the Selling
Entities is a party or by which any of the Selling Entities or any of their
respective properties or assets may be bound, (iii) violate or conflict with any
Law or Order applicable to any of the Selling Entities or by which any of their
properties or assets are bound or (iv) result in the creation of any Lien
upon any of the Transferred Assets, except in the case of each of
clauses (ii), (iii) and (iv) above, for such violations, conflicts,
breaches, defaults, terminations, accelerations or Liens which would not,
individually or in the aggregate, have a Business Material Adverse
Effect.

       

      (b)           No
consent, approval, Order or authorization of, or filing or registration with, or
notification to (any of the foregoing being a “Consent”), any
Governmental Authority is required on the part of any of the Selling Entities in
connection with the execution, delivery and performance of this Agreement and
the Related Agreements by each Selling Entity party thereto, the consummation by
each Selling Entity of the transactions contemplated by this Agreement and the
Related Agreements and the compliance by each Selling Entity with any of the
terms hereof and thereof.

       

      3.4          Controls;
Compliance. 

       

      (a)           Seller
and SYC have established and maintain, adhere to and enforce a system of
internal accounting controls which are effective in providing reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements in accordance with GAAP, including policies and
procedures that (i) require the maintenance of records that in reasonable
detail accurately and fairly reflect the transactions and dispositions of the
assets of Seller and SYC, (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial
statements in accordance with GAAP, and that receipts and expenditures of Seller
and SYC are being made only in accordance with appropriate authorizations of
management and Seller Board and (iii) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use or
disposition of the assets of Seller and SYC that could have a material effect on
Seller’s financial statements.  Except as Seller has disclosed in its
quarterly and annual reports filed with the SEC (all of which have been
remediated), neither Seller nor SYC (including any employee thereof) nor
Seller’s independent auditors has identified or been made aware of (A) any
significant deficiency or material weakness in the system of internal accounting
controls utilized by Seller and SYC, (B) any fraud, whether or not
material, that involves Seller’s management or other employees who have a role
in the preparation of financial statements or the internal accounting controls
utilized by Seller and SYC or (C) any claim or allegation regarding any of
the foregoing.

      
        
           

        

        
          -25-

          
            

          

        

        
           

        

      

       

      (b)           Seller
has established and maintains disclosure controls and procedures required by
Rules 13a-15(e) or 15d-15(e) under the Exchange Act that are designed to
ensure that information required to be disclosed by Seller in the reports that
it files or submits under the Exchange Act is recorded, processed, summarized
and reported within the time periods specified in the SEC’s rules and forms and
is accumulated and communicated to Seller’s management to allow timely decisions
regarding required disclosure.

       

      3.5          Business Financial
Statements.  Section 3.5 of the
Seller Disclosure Schedule sets forth the following financial statements with
respect to the Business: (i) unaudited balance sheet and income statement
as of and for the years ended December 31, 2007 and 2008 for the SOF Business
(the “SOF Business
Financial Statements”); and (ii) unaudited balance sheet and income
statement for the six-month period ended June 30, 2009 for the SOF Business
(“SOF Interim
Financial Statements”); (iii) the unaudited balance sheet and income
statement as of and for the years ended December 31, 2007 and 2008 for the
Montreal Business (the “Montreal Business Financial
Statements”); and (iv) unaudited balance sheet and income statement
as of and for the six-month period ended June 30, 2009 for the Montreal Business
(“Montreal Interim
Financial Statements” and together with the SOF Business Financial
Statements, SOF Interim Financial Statements and Montreal Business Financial
Statements, the “Business Financial
Statements”).  The Business Financial Statements have been
prepared in accordance with GAAP applied on a consistent basis (except as may be
noted therein), and present fairly, in all material respects, the financial
position and the results of operations of the SOF Business and the Montreal
Business as of the respective dates thereof or for the periods then ended,
except that such financial statements do not include footnotes that would be
required by GAAP.

       

      3.6          No Undisclosed Liabilities;
Indebtedness.  There are no Liabilities related to the Business of
any nature other than (a) Liabilities that are fully accrued or otherwise
reserved against in the Balance Sheet, (b) Liabilities under this
Agreement, (c) Liabilities incurred in connection with the transactions
contemplated by this Agreement, (d) executory obligations under any
Transferred Contract, and (e) other Liabilities that have not, individually
or in the aggregate, had a Business Material Adverse Effect.  Assuming
that the amounts set forth in the Payoff Letter are paid in full at the Closing,
immediately after the Closing, neither Buyer nor SYC shall have any Indebtedness
of the type described in clauses (i), (ii), (iv) and (vii) in the definition
thereof.

       

      3.7          Absence of Certain
Changes.  Since June 30, 2009, except for actions expressly
contemplated by this Agreement, the Business has been conducted, in all material
respects, in the ordinary course consistent with past practice, and there has
not been or occurred any of the following with respect to the
Business:

       

      (a)         
any event, development, change, circumstance or condition that has had,
individually or in the aggregate, a Business Material Adverse Effect (whether or
not any events, developments, changes, circumstances or conditions occurring
prior to June 30, 2009 caused or contributed to the occurrence of such Business
Material Adverse Effect);

      
        
           

        

        
          -26-

          
            

          

        

        
           

        

      

       

      (b)           any
sale, transfer or other disposition of any of the Transferred Assets, except in
the ordinary course of business consistent with past practice and which are not,
individually or in the aggregate, material to the Business;

       

      (c)           any
damage, destruction or other casualty loss (whether or not covered by insurance)
with respect to any of the Transferred Assets;

       

      (d)           any
change in any method of accounting or accounting principles or practice, or Tax
election, except for any such change required by reason of a change in GAAP or
regulatory accounting principles;

       

      (e)           (i) any
incurrence or assumption of any long-term or short-term debt or issuance of any
debt securities except for short-term debt incurred to fund operations of the
Business in the ordinary course of business consistent with past practice,
(ii) any assumption, guarantee or endorsement of the obligations of any
other Person, (iii) any loan, advance or capital contribution to, or other
investment in, any other Person (other than customary loans or advances to
employees or direct or indirect wholly-owned Subsidiaries of Seller, in each
case in the ordinary course of business consistent with past practice) or
(iv) any mortgage or pledge of any assets, tangible or intangible, or any
creation of any Lien thereupon;

       

      (f)           any
plan of complete or partial liquidation, dissolution, merger, consolidation,
restructuring, recapitalization or other reorganization of any of the Selling
Entities;

       

      (g)           any
payment, discharge or satisfaction of any claim, Lien, obligation or Liability
of the Business, other than (i) Permitted Liens, (ii) the payment,
discharge or satisfaction of claims, Liens, obligations or Liabilities reflected
or reserved against in the Balance Sheet or (iii) in the ordinary course of
business;

       

      (h)           any
disposition of or lapse of any right to the use of any of the Transferred
Intellectual Property, or application therefor or any disposition of, or to
Seller’s Knowledge any disclosure of any Trade Secrets or other confidential
information constituting Transferred Intellectual Property to Persons not bound
by confidentiality obligations;

       

      (i)           the
making of any capital expenditure or commitment in excess of $10,000 for
additions to property, plant, equipment, intangible or capital assets or for any
other purpose, other than for emergency repairs or replacements and other than
commitments that may be canceled by Buyer without fee or penalty or any other
payment with 30 days notice or less;

      
        
           

        

        
          -27-

          
            

          

        

        
           

        

      

       

      (j)       
    any entry related to the Business, into any Collective
Bargaining Agreement, or any experience of any organized slowdown, work
interruption, strike or work stoppage;

       

      (k)           any
granting by Seller or SYC of any increase in compensation or fringe benefits to
any Business Employee, except for normal increases of cash compensation in the
ordinary course of business consistent with past practice (other than to
directors or officers of Seller), or any payment by Seller or SYC of any bonus
to any Business Employee, except for bonuses made in the ordinary course of
business consistent with past practice (other than to directors or officers of
Seller), or any granting by Seller or SYC of any increase in severance or
termination pay to any Business Employee or any entry by Seller or SYC into any
currently effective employment, severance, termination or indemnification
agreement with any Business Employee or any agreement with any Business Employee
the benefits of which are contingent or the terms of which are materially
altered upon the occurrence of the transactions contemplated hereby (other than
offer letters and letter agreements entered into in the ordinary course of
business consistent with past practice with Business Employees who are not
officers and are terminable “at will” without Seller or SYC incurring any
material liability or financial obligation) or any other change in the
compensation or benefits structure applicable to the Business Employees in a
manner that adversely affects in a material respect the cost structure of the
Business;

       

      (l)         
  any other transaction or Material Contract other than in the
ordinary course of business consistent with past practice; or

       

      (m)          any
Contract, whether in writing or otherwise, to take any of the actions identified
in this Section
3.7.

       

      3.8          Compliance with Laws and
Orders. 

       

      (a)           The
Business is being conducted in compliance with all applicable Laws and
Orders.  Seller and SYC, in operating the Business, have complied with
all U.S. export control Laws regarding any export of its products or technology,
including the Export Administration Regulations (“EAR”) maintained by
the U.S. Department of Commerce and the International Traffic in Arms
Regulations (“ITAR”) maintained by
the U.S. Department of State. The Business as currently conducted does not
require any of the Buying Entities to obtain a license from the U.S. Departments
of Commerce or State or an authorized body thereof under ITAR or EAR or other
legislation regulating the development, commercialization or export of
technology.

       

      (b)           Since
January 1, 2003, no Selling Entity has received any written notification, with
respect to the Business, from any Governmental Authority (i) asserting that
it is in material violation of any Law, (ii) threatening to revoke the
Transferred Permits, or (iii) requiring it (A) to enter into or
consent to the issuance of a cease and desist order, consent decree, written
agreement, commitment or memorandum of understanding, or (B) to adopt any
policy, procedure or resolution of its board of directors or similar undertaking
that restricts the conduct of the Business, or (iv) other than disclosed in
filings made by Seller with the SEC under the Exchange Act.

      
        
           

        

        
          -28-

          
            

          

        

        
           

        

      

       

      3.9          Permits. 

       

      (a)           The
Selling Entities have, and are in compliance in all material respects with the
terms of, all Transferred Permits, and no suspension or cancellation of any such
Transferred Permits is pending or, to the Knowledge of Seller,
threatened.

       

      (b)           The
Permits identified on Schedule 2.1(d) are
all of the Permits of Seller and SYC related to the Business and there are no
Permits necessary for the conduct of the Business as currently conducted which
have not been obtained by Seller or SYC.

       

      3.10        Litigation;
Orders. 

       

      (a)           There
is no Legal Proceeding with respect to the Business pending or, to the Knowledge
of Seller, threatened against Seller, SYC or any of their respective properties
that (i) involves an amount in controversy in excess of $10,000,
(ii) seeks material injunctive relief, (iii) seeks to impose any legal
restraint on or prohibition against or limit Seller’s or SYC’s (or, after the
Closing Date, Buyer’s or any of its Subsidiaries’) ability to operate the
Business substantially as it was operated immediately prior to the date of this
Agreement or (iv) would, individually or in the aggregate with all other
pending or threatened Legal Proceedings, have a Business Material Adverse
Effect.

       

      (b)           Neither
Seller nor SYC is subject to any outstanding Order.

       

      3.11        Material
Contracts. 

       

      (a)           For
purposes of this Agreement, a “Material Contract”
shall mean the following Contracts primarily relating to or used in the
Business:

       

      (i)           any
“material contract” (as such term is defined in Item 601(b)(10) of Regulation
S-K of the SEC, other than those agreements and arrangements described in Item
601(b)(10)(iii));

       

      (ii)          any
employment or consulting Contract providing for an annual base compensation in
excess of $50,000;

       

      (iii)         any
Contract or plan, including any stock option plan, stock appreciation right plan
or stock purchase plan, any of the benefits of which will be increased, or the
vesting of benefits of which will be accelerated, by the consummation of the
transactions contemplated hereby or the value of any of the benefits of which
will be calculated on the basis of any of the transactions contemplated by this
Agreement;

       

      (iv)         any
Contract providing for indemnification (other than a Contract with a customer,
which is entered into by the Seller or SYC in the ordinary course of its
business and substantially similar to the indemnification provisions set forth
in other Contracts with customers, forms of which have been provided to or made
available to Buyer or any guaranty (in each case, under which Seller or SYC has
continuing obligations as of the date hereof);

      
        
           

        

        
          -29-

          
            

          

        

        
           

        

      

       

      (v)          any
Contract containing any covenant (A) limiting the right of Seller or SYC to
engage in any line of business, to make use of any material technology or to
compete with any Person in any line of business, (B) granting any exclusive
rights, (C) prohibiting Seller or SYC (or, after the Closing Date, Buyer or
any of its Subsidiaries) from engaging in business with any Person or levying a
fine, charge or other payment for doing so or (D) otherwise prohibiting or
limiting the right of Seller or SYC to distribute or offer any products or
services or to purchase or otherwise obtain any software, components, parts or
subassemblies in each case, other than any such Contracts that (x) may be
cancelled without material liability to Seller or SYC (or, after the Closing
Date, to Buyer or any of its Subsidiaries) upon notice of ninety (90) days or
less or (y) are not, individually or in the aggregate, material to the
Business;

       

      (vi)         any
Contract (A) relating to the disposition or acquisition by Seller or SYC
after the date of this Agreement of a material amount of assets or
(B) pursuant to which Seller or SYC will acquire any material ownership
interest in any other Person or other business enterprise other than Seller’s
Subsidiaries;

       

      (vii)        any
dealer, distributor, joint marketing or development Contracts (as measured by
continuing costs to be incurred by, and fees to be paid by, Seller or SYC) to
solely or jointly develop or market any product, technology or service, and
which may not be canceled without material liability to Seller or SYC upon
notice of thirty (30) days or less;

       

      (viii)       any
Material IP License;

       

      (ix)         any
Contract (A) containing any financial penalty for the failure by Seller or
SYC to comply with any support or maintenance obligation or (B) containing
any obligation to provide support or maintenance for Seller Products for any
period in excess of twelve (12) months, other than those obligations that are
terminable by Seller or SYC on no more than thirty (30) days notice without
material liability or financial obligation to Seller or SYC;

       

      (x)          any
Contracts containing any service obligation on the part of Seller or SYC, other
than (A) warranties provided in the ordinary course of business consistent with
past practice and (B) those obligations that are terminable by Seller or SYC on
no more than thirty (30) days notice without material liability or financial
obligation to Seller or SYC;

       

      (xi)         any
Contract authorizing another Person to provide support or maintenance to
customers of the Business, including distributors or resellers that are
obligated to provide such support or maintenance;

      
        
           

        

        
          -30-

          
            

          

        

        
           

        

      

       

      (xii)        any
Contract to license any third party to manufacture or reproduce any Seller
Products or any Contract to sell or distribute any Seller Products, except
(A) agreements with distributors or sales representatives in the ordinary
course of business consistent with past practice or (B) agreements allowing
internal copies made or to be made by end-user customers in the ordinary course
of business consistent with past practice;

       

      (xiii)       any
settlement Contract other than (A) releases immaterial in nature or amount
entered into with former employees or independent contractors of Seller in the
ordinary course of business or (B) settlement agreements for cash only
(which has been paid);

       

      (xiv)       any
Contract which grants any right of first refusal, right of first offer or
similar right with respect to any material assets, rights or
properties;

       

      (xv)        any
Contract which limits the payment of dividends;

       

      (xvi)       any
Contract which relates to a joint venture, partnership, limited liability
company agreement or other similar agreement or arrangement, or to the
formation, creation or operation, management or control of any partnership or
joint venture with any third parties;

       

      (xvii)      any
Contract which relates to an acquisition, divestiture, merger or similar
transaction and which contains representations, covenants, indemnities or other
obligations (including indemnification, “earn-out” or other contingent
obligations) that are still in effect;

       

      (xviii)     any
Contract entered into since December 31, 2008 or prior to such date which
remained unfilled and outstanding with a customer or purchase order from a
Customer, in each case providing for payments from that customer of $100,000 or
more;

       

      (xix)        any
Contract or subcontract still in effect that is subject to FAR;

       

      (xx)         any
other Contract that provides for payment obligations by Seller or SYC of $10,000
or more in any individual case that is not terminable by Seller or SYC (or,
after the Closing Date, by Buyer or any of its Subsidiaries) upon notice of
thirty (30) days or less without material liability to the Business and is not
disclosed pursuant to clauses (i) through (xix) above; and

       

      (xxi)        any
Contract, or group of Contracts with a Person (or group of affiliated Persons),
the termination or breach of which would have or would be reasonably expected to
have a material adverse effect on any material product or service offerings of
Seller or SYC or otherwise have a Business Material Adverse Effect and is not
disclosed pursuant to clauses (i) through (xx) above.

      
        
           

        

        
          -31-

          
            

          

        

        
           

        

      

       

      (b)           Section 3.11(b) of
the Seller Disclosure Schedule contains a complete and accurate list of all
Material Contracts to or by which Seller or SYC is a party or is bound, and
identifies each subsection of Section 3.11(a) that
describes such Material Contract.  True, correct and complete copies
of all of the Contracts identified on the Seller Disclosure Schedule and all
standard terms and conditions of purchase for customer purchase orders have been
made available to Buyer and its counsel prior to the date
hereof.  There are no Contracts between Seller and/or SYC on the one
hand, and any of Seller’s other Subsidiaries, on the other hand, related to the
Business.

       

      (c)           Each
Material Contract is valid and binding on Seller (and/or each such Subsidiary of
Seller party thereto) and is in full force and effect, and neither Seller nor
SYC, nor, to the Knowledge of Seller, any other party thereto, is in breach of,
or default under, any such Material Contract, and no event has occurred that
with notice or lapse of time or both would constitute such a breach or default
thereunder by Seller or SYC, or, to the Knowledge of Seller, any other party
thereto.

       

      3.12        Taxes. 

       

      (a)           All
material Tax Returns required by applicable Laws to be filed by or on behalf of
Seller and SYC have been filed in accordance with all applicable Laws, and all
such Tax Returns are true, correct and complete in all material
respects.

       

      (b)           Seller
and SYC have paid (or have had paid on its behalf) or has withheld and remitted
to the appropriate Governmental Authority all Taxes (including income Taxes,
withholding Taxes and estimated Taxes) due and payable without regard to whether
such Taxes have been assessed or has established in accordance with GAAP an
adequate accrual for all Taxes (including Taxes that are not yet due or payable)
through the end of the last period for which Seller and SYC ordinarily record
items on their respective books, and regardless of whether the liability for
such Taxes is disputed.  Seller has made available to Buyer complete
and accurate copies of all income, franchise, and foreign Tax Returns of Seller
and SYC and any amendments thereto, filed by or on behalf of Seller or SYC or
any member of a group of corporations including Seller or SYC for the taxable
years ending 2001 through 2008.

       

      (c)           There
are no Liens on the assets of Seller or SYC relating or attributable to Taxes,
other than (i) Liens for Taxes which are not yet delinquent, or (ii) Liens for
Taxes disclosed on Section 3.12(c) of
the Seller Disclosure Schedule being contested in good faith by any appropriate
proceedings for which adequate reserves have been established in accordance with
GAAP, such contest effectively suspends collection of the contested obligation
and the enforcement of any Lien securing such obligation and the failure to make
payment pending such contest would not have a Business Material Adverse
Effect.

       

      (d)           To
the extent applicable to the Transferred Assets or the Buyer’s ownership of the
Transferred Assets or operation of the Business, neither Seller nor SYC have
been delinquent in the payment of any Tax, nor is there any Tax deficiency
outstanding, assessed or proposed against Seller or SYC.

      
        
           

        

        
          -32-

          
            

          

        

        
           

        

      

       

      (e)           As
of the date of this Agreement, there are no Legal Proceedings now pending, or to
the Knowledge of Seller, threatened against or with respect to Seller or SYC
with respect to any Tax, and none of Seller or SYC knows of any audit or
investigation with respect to any Liability of Seller or SYC for Taxes, and
there are no agreements in effect to extend the period of limitations for the
assessment or collection of any Tax for which Seller or SYC may be
liable.

       

      (f)           Seller
and SYC have not executed any closing agreement pursuant to Section 7121 of
the Code or any predecessor provision thereof, or any similar Laws.

       

      (g)           Each
of Seller and SYC has disclosed on its Tax Returns all positions taken therein
that could give rise to a substantial understatement of federal income Tax
within the meaning of Section 6662 of the Code or any similar
Laws.

       

      (h)           Neither
Seller nor SYC have (i) ever been a party to a Contract or inter-company
account system in existence under which Seller or SYC has, or may at any time in
the future have, an obligation to contribute to the payment of any portion of a
Tax (or pay any amount calculated with reference to any portion of a Tax) of any
group of corporations of which Seller or SYC is or was a part (other than a
group the common Buyer of which is Seller) and (ii) any Liability for Taxes
of any Person (other than Seller or SYC) under Treasury Regulations
Section 1.1502-6 (or any similar provision of state, local or foreign Law)
as a transferee or successor, by contract or otherwise.

       

      (i)           No
written claim has been made during the past five (5) years by any appropriate
Governmental Authority in a jurisdiction where neither Seller nor SYC filed Tax
Returns that it is or may be subject to any taxation by that
jurisdiction.

       

      (j)           Neither
Seller nor SYC has participated or engaged in transactions that constitute
“reportable transactions” as such term is defined in Treasury Regulations
Section 1.6011-4(b)(1) (other than such transactions that have been
properly reported or are not yet required to have been reported), or
transactions that constitute “listed transactions” as such term is defined in
Treasury Regulations Section 1.6011-4(b)(2).

       

      (k)           Neither
Seller nor SYC has agreed or is required to make any adjustments pursuant to
Section 481(a) of the Code or any similar Laws by reason of a change in
accounting method initiated by it or any other relevant party and neither Seller
nor SYC has any Knowledge that the appropriate Governmental Authority has
proposed any such adjustment or change in accounting method, nor is any
application pending with any appropriate Governmental Authority requesting
permission for any changes in accounting methods that relate to the business or
assets of Seller or SYC.

       

      (l)           Seller
and SYC will not be required to include any item of income in, or exclude any
item of deduction from, taxable income for any taxable period (or portion
thereof) ending after the Closing Date as a result of (i) any installment
sale or open transaction disposition made on or prior to the Closing Date or
(ii) any prepaid amount received on or prior to the Closing
Date.

      
        
           

        

        
          -33-

          
            

          

        

        
           

        

      

       

      (m)           Seller
and SYC have delivered or made available to Buyer complete and accurate copies
of all letter rulings, technical advice memoranda, and similar documents issued
since January 1, 1996, by a Governmental Authority relating to federal, state,
local or foreign Taxes due from or with respect to Seller or
SYC.  Seller will deliver to Buyer all materials with respect to the
foregoing for all matters arising after the date hereof through the Closing
Date.

       

      (n)           Section 3.12(n) of
the Seller Disclosure Schedule contains a complete and accurate list of each
jurisdiction in which Seller or SYC benefits from (i) exemptions from
taxation, Tax holidays, reduction in Tax rate or similar Tax reliefs and
(ii) other financial grants, subsidies or similar incentives granted by a
Governmental Authority, whether or not relating to Taxes (together with the Tax
incentives described in subclause (i), the “Incentives”) and
describes the details of such Incentives.  Seller and SYC are in full
compliance with all terms and conditions of any agreement or Order relating to
such Incentives in such jurisdictions where such Incentives are available, and
have received no written notice from any Governmental Authority claiming that
such Incentives were not, or will not in the future, be available.

       

      (o)           None
of the assets of Seller or SYC is treated as “tax exempt use property,” within
the meaning of Section 168(h) of the Code.

       

      (p)           Section 3.12(p) of
the Seller Disclosure Schedule contains a complete and accurate list of each
Subsidiary for which an election has been made pursuant to Section 7701 of
the Code and the Treasury regulations thereunder to be treated other than its
default classification for U.S. Federal income tax purposes.  Except
as disclosed on such Section, each Subsidiary will be classified for U.S.
Federal income tax purposes according to its default
classification.

       

      (q)           During
the two-year period ending on the date of this Agreement, neither Seller nor SYC
was a distributing corporation or a controlled corporation in a transaction
intended to be governed by Section 355 of the Code.

       

      3.13        Employee
Benefits. 

       

      (a)           Neither
Seller nor SYC nor any of their respective ERISA Affiliates has ever maintained,
participated in or contributed to (or been obligated to contribute to (i) a
Seller Employee Benefits Plan which was ever subject to Section 412 of the Code
or Title IV of ERISA, (ii) a “multiemployer plan” (as defined in Section
4001(a)(3) of ERISA), (iii) a “multiple employer plan” as defined in ERISA or
the Code, or (iv) a “funded welfare plan” within the meaning of Section 419 of
the Code.  No Seller Employee Benefits Plan is funded by, associated
with or related to a “voluntary employee’s beneficiary association” within the
meaning of Section 501(c)(9) of the Code.

       

      (b)           Each
Seller Employee Benefit Plan that is intended to be “qualified” under Section
401 of the Code has been maintained, operated and administered in compliance in
all material respects with its terms and with all applicable Laws and Collective
Bargaining Agreements, including the applicable provisions of ERISA, the Code
and the codes of practice issued by any Governmental Authority.  All
Seller Employee Benefit Plans have been made available to
Buyer.

      
        
           

        

        
          -34-

          
            

          

        

        
           

        

      

    

     

    (c)          To
the Knowledge of Seller, no event has occurred and there currently exists no
condition or set of circumstances in connection with which Seller or SYC could
be subject to any material liability under the terms of ERISA, the Code or codes
of practice issued by any Governmental Authority, Collective Bargaining
Agreement or any other applicable Laws.

     

    (d)          Neither
Seller nor any ERISA Affiliate has ever represented, promised or contracted
(whether in oral or written form) to any employee of Seller or its ERISA
Affiliates (either individually or to employees as a group) or any other person
that such employee(s) or other person would be provided with post-termination
benefits, except to the extent required by applicable Laws.

     

    (e)          Each
Seller Employee Benefit Plan that is intended to be “qualified” under Section
401 of the Code has received a favorable determination letter from the IRS to
such effect and, to the Knowledge of Seller, no fact, circumstance or event has
occurred or exists since the date of such determination letter that would
reasonably be expected to materially and adversely affect the qualified status
of any such plan.

     

    (f)          All
contributions, premiums and other payments required to be made with respect to
any Seller Employee Benefit Plan have been timely made, accrued or reserved for
in all material respects.

     

    (g)          The
country of citizenship of all of the Business Employees is listed on Section 3.13(g) of the Seller
Disclosure Schedule.

     

    (h)          Section 3.13(h) of the Seller
Disclosure Schedule lists each “disqualified individual” (as defined in Section
280G of the Code).  No payment or benefit which will or may be made by
Seller or its ERISA Affiliates with respect to any Transferred Employee who is a
disqualified individual will be characterized as a “parachute payment,” within
the meaning of Section 280G(b)(2) of the Code.  There is no contract,
agreement, plan or arrangement to which Seller or any ERISA Affiliate is a party
or by which it is bound to compensate any Transferred Employee who is a
disqualified individual for excise taxes which may be required pursuant to
Section 4999 of the Code.

     

    3.14           Labor
Matters.

     

    (a)          No
Selling Entity, with respect to the Business, is a party to any Contract or
arrangement between or applying to, one or more employees and a trade union,
works council, group of employees or any other employee representative body, for
collective bargaining or other negotiating or consultation purposes or
reflecting the outcome of such collective bargaining or negotiation or
consultation with respect to their respective employees with any labor
organization, union, group, association, works council or other employee
representative body, or is bound by any equivalent national or sectoral
agreement (“Collective
Bargaining Agreements”).  To the Knowledge of Seller, there are
no activities or proceedings by any labor organization, union, group or
association or representative thereof to organize any such
employees.  There are no lockouts, strikes, slowdowns, work stoppages
or, to the Knowledge of Seller, threats thereof by or with respect to any
Business Employees which would be material nor have there been any such
lockouts, strikes, slowdowns or work stoppages since December 31,
2004.  Seller and SYC are not, nor have they been since
December 31, 2004, a party to any redundancy agreements (including social
plans or job protection plans) with respect to the Business.

    
      
         

      

      
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    (b)          Seller
and SYC (i) have complied in all material respects with applicable Laws and
Orders relating to the employment of labor (including wage and hour Laws, Laws
prohibiting discrimination in employment and Laws relating to employee
notification and consultation, terms and conditions of employment practices,
including orders and awards relevant to the terms and conditions of service,
labor leasing, use of fixed-term contracts, supply of temporary staff, correctly
classifying independent contractors as contractors rather than employees, social
security filings and payments, secondment and expatriation rules, applicable
requirements in respect of staff representation, paid vacations and health and
safety at work of employees) in the conduct of the Business and Collective
Bargaining Agreements in connection with the Business and (ii) are not
liable for any arrears of wages or any taxes or any penalty for a failure to
comply with the foregoing.  Seller and SYC are not liable to any
Governmental Authority or fund governed or maintained by or on behalf of any
Governmental Authority for any material payment with respect to any social
security or other benefits or obligations for employees of the Business (save
for routine payments to be made in the ordinary course of business and
consistent with past practice).

     

    3.15           Real
Property.

     

    (a)          Neither
of Seller nor SYC owns any real property or have any right or option to own any
real property.  Neither Seller nor SYC has received any written notice
from any insurance company of any defects or inadequacies in any Leased Real
Property, or any part thereof which could adversely affect the insurability of
such property or the premiums for the insurance thereof, nor to the Knowledge of
Seller has any written notice been given by any insurer of any such property
requesting the performance of any repairs, alterations or other work with which
compliance has not been made. The Seller or SYC currently occupy all of the
Leased Real Property for the operation of the Business, and there are no other
parties occupying, or with a right to occupy, the Leased Real
Property.  The Montreal Subleased Property and the Salem Leased
Property is in good operating condition and repair and is suitable for the
conduct of the Business as it is presently conducted therein. There are no
pending, or, to the Knowledge of Seller, threatened, condemnation or eminent
domain actions or proceedings, or any special assessments or other activities of
any public or quasi-public body that are reasonably likely to have a Business
Material Adverse Effect.

    
      
         

      

      
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    (b)          Section 3.15(b)(i) of the Seller
Disclosure Schedule contains a complete and accurate list of all of the existing
material leases, subleases or other agreements (collectively, the “Leases”) under which
Seller or SYC uses or occupies or has the right to use or occupy, now or in the
future, any real property in connection with the Business or the Transferred
Assets (such property, the “Leased Real
Property”) including, with respect to each Lease, the name of the lessor
and the date of the Lease and each amendment thereto.  Seller has
heretofore made available to Buyer true, correct and complete copies of all
Leases (including all modifications, amendments, supplements, waivers,
guarantees thereof and side letters thereto).  Seller and/or SYC have
and own valid leasehold estates in the Leased Real Property, free and clear of
all Liens other than Permitted Liens.  Section 3.15(b)(ii) of the Seller
Disclosure Schedule contains a complete and accurate list of all of the existing
Leases granting to any Person, other than Seller or SYC, any right to use or
occupy, now or in the future, any of the Leased Real Property.  The
Leases are each in full force and effect in accordance with their respective
terms (except as such enforceability may be subject to Laws of general
application relating to bankruptcy, insolvency, and the relief of debtors and
rules of law governing specific performance, injunctive relief, or other
equitable remedies) and neither Seller nor SYC is in material breach of or
default under, or has received written notice of any material breach of or
default under, any material Lease, and, to the Knowledge of Seller, no event has
occurred that with notice or lapse of time or both would constitute a material
breach or default thereunder by Seller or SYC or any other party
thereto.  To Seller’s Knowledge, (i) there are no Laws, statutes,
rules, regulations or orders now in existence or under active consideration by
any Governmental Authority which could require the tenant of any Leased Real
Property to make any expenditure to modify or improve such Leased Real Property
to bring it into compliance therewith, and (ii) Seller shall not be
required to expend more than $10,000 in the aggregate under all Leases to
restore the Leased Real Property at the end of the term of the applicable Lease
to the condition required under the Lease (assuming the conditions existing in
such Leased Real Property as of the date hereof and as of the
Closing).

     

    (c)          The
transactions contemplated in this Agreement and the Closing hereunder will not
(i) require the consent of, or notice to any party under any Lease,
(ii) trigger any right of termination, recapture or permit the modification
of any right or obligation under any Lease, or (iii) otherwise cause Seller
or any Subsidiary to incur any material cost or expense in connection with any
Lease.  None of the Leases contain any provision requiring Seller or
SYC to continuously operate its business throughout the term of any such
Lease.

    
      
         

      

      
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    3.16           Environmental
Matters.  Neither Seller nor SYC in connection with the Business or
any of the Transferred Assets: (i) have received any written notice or
other communication of any alleged material claim, material violation of or
material liability under any Environmental Law which has not heretofore been
cured or for which there is any remaining material liability; (ii) have
disposed of, emitted, discharged, handled, stored, transported, used or released
any Hazardous Substances, distributed, sold or otherwise placed on the market
Hazardous Substances or any product containing Hazardous Substances, arranged
for the disposal, discharge, storage or release of any Hazardous Substances, or
exposed any employee or other individual to any Hazardous Substances so as to
give rise to any material liability or corrective or remedial obligation under
any Environmental Laws; (iii) have entered into any agreement that may
require it to guarantee, reimburse, pledge, defend, hold harmless or indemnify
any other party with respect to material liabilities arising out of
Environmental Laws or the Hazardous Materials Activities of Seller or SYC; or
(iv) have any Knowledge of any fact or circumstance that could involve
Seller or SYC in any environmental litigation or impose upon Seller or SYC any
material environmental liability.  Seller and SYC have delivered to
Buyer or made available for inspection by Buyer and its agents, representatives
and employees all material records in Seller’s and SYC’s possession concerning
the Hazardous Materials Activities of Seller and all environmental audits and
environmental assessments of any facility owned, leased or used at any time by
Seller or SYC conducted at the request of, or otherwise in the possession of
Seller or SYC.  There are no Hazardous Substances in, on, or under any
properties owned, leased or used at any time by Seller or SYC in connection with
the Business or the Transferred Assets such as could give rise to any material
liability or material corrective or remedial obligation of Seller or SYC under
any Environmental Laws.  Seller and SYC have been and are in
compliance in all material respects with all Environmental
Laws.  Seller and SYC have reviewed their obligations with respect to
the WEEE Directive and the REACH Directive and do not anticipate any material
liability related to compliance with these directives.  Section 3.16 of the Seller
Disclosure Schedule lists all Seller Products which are subject to the RoHS
Directive and China RoHS and identifies the process by which Seller and SYC have
determined that their products are in compliance with the RoHS Directive and
China RoHS.

     

    3.17           Sufficiency of Transferred
Assets; Title to Transferred Assets. 

     

    (a)          The
Transferred Assets and any rights or licenses granted or services provided
pursuant to any of the Related Agreements entered into pursuant to this
Agreement, constitute all of the rights, services, properties and assets (real,
personal and mixed, tangible and intangible) used in or necessary to conduct the
Business after the Closing as currently conducted.

     

    (b)          Each
Selling Entity has good and valid title or a valid leasehold interest in all of
the Transferred Assets held by such party, and none of the Transferred Assets is
subject to any Lien of any kind, except for Permitted Liens.  Upon the
Closing, the Selling Entities will convey to the Buying Entities good and valid
title to all Transferred Assets free and clear of Liens, other than Permitted
Liens.

     

    3.18           Intellectual
Property.

     

    (a)          Section 3.18(a) of the Seller
Disclosure Schedule sets forth as of the date hereof a true, complete and
correct list of all Registered Intellectual Property that is Transferred
Intellectual Property (collectively the “Seller Registered
Intellectual Property”).  Each item of Seller Registered
Intellectual Property is valid, enforceable and subsisting and has not expired
or been cancelled, or abandoned.  The Transferred Intellectual
Property includes all Seller Intellectual Property (i) that is related to the
Business or (ii) that, if not acquired by Buyer hereunder, would be infringed by
the conduct of the Business after the Closing.

    
      
         

      

      
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    (b)          Section 3.18(b) of the Seller
Disclosure Schedule lists each third party that is conducting any material
business or activities related to the Business under a Trademark or brand name
owned by, or licensed by, Seller or any Seller Subsidiary (each such entity a
“Seller
Licensee”).

     

    (c)          All
Transferred Intellectual Property is free and clear of any
Liens.  Neither Seller nor any of its Subsidiaries has transferred
ownership of, in whole or in part, or granted an exclusive license to, any third
party, of any Intellectual Property Rights that are, were or should be
Transferred Intellectual Property.

     

    (d)          Seller
and SYC have taken all reasonable steps to protect both (i) their
confidential information and Trade Secrets of the Business that they wish to, or
are required to, protect as such and (ii) any Trade Secrets, personal,
private or confidential information of any third parties provided to Seller or
SYC, or to which Seller or SYC has access in connection with the
Business.  Without limiting the foregoing, Seller and SYC have and
enforce a policy requiring each employee and contractor having access to
proprietary information or confidential information to execute a proprietary
information/confidentiality agreement, and all current and former employees and
contractors of Seller who have contributed to the development of Transferred
Intellectual Property have executed such an agreement.  There has been
no unauthorized disclosure by Seller, or SYC or to Seller’s Knowledge any Seller
Licensee, of any Trade Secrets, personal, private or confidential information,
of any third parties provided to any of them, or to which any of them has access
in connection with the Business.

     

    (e)          There
is no pending or, to Seller’s Knowledge, threatened (and at no time within the
three (3) years prior to the date of this Agreement has there been pending any)
Legal Proceeding before any Governmental Authority in any
jurisdiction alleging that (i) any activities, products, services or
conduct of the Business by Seller or SYC infringes, violates or constitutes the
unauthorized use of the Intellectual Property Rights of any third party, or
(ii) challenging the ownership, validity, enforceability or registerability
of any Transferred Intellectual Property or (iii) the activities, products,
services or conduct of a third party infringes, violates or constitutes the
unauthorized use of Transferred Intellectual Property.  Seller is not
party to any settlements, covenants not to sue, consents, decrees, stipulations,
judgments, or Orders resulting from Legal Proceedings which (i) restrict
Seller’s or SYC’s rights to use, license or transfer any Transferred
Intellectual Property, or (ii) restrict the conduct of the Business by
Seller or SYC in order to accommodate any third party’s Intellectual Property
Rights, or (iii) compel or require Seller or SYC to license or transfer any
Transferred Intellectual Property.  Neither Seller nor SYC has
received any notice from any third party that the operation of the Business by
Seller or SYC, or any act, product or service of Seller or SYC related to the
Business, infringes or misappropriates the Intellectual Property Rights of any
third party or constitutes unfair competition or trade practices under the Laws
of any jurisdiction.

     

    (f)          None
of the products, services or operations of the Business infringe upon, violate
or constitute the unauthorized use of any Intellectual Property Rights owned by
any third party or constitute unfair competition or trade practices under the
Laws of any jurisdiction.

    
      
         

      

      
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    (g)          Neither
Seller nor SYC has (i) granted, or is obligated to grant, access or rights
to any third party to Source Code that is material to the Business or
(ii) has distributed or is required to distribute any Source Code that is
material to the Business pursuant to an Open Source License.

     

    (h)          Section 3.18(h) of the Seller
Disclosure Schedule lists all Contracts pursuant to which a third party has
licensed to Seller or SYC any Intellectual Property Right that are related to
the operation of the Business (“In-Licenses”), other
than licenses for off-the-shelf software or other technology for an aggregate
fee of less than $5,000 per year or that are not otherwise material to the
Business (as required to be listed, the “Material
In-Licenses”).

     

    (i)          Section 3.18(i) of the Seller
Disclosure Schedule lists all Contracts pursuant to which Seller or SYC has
granted a third party any rights or licenses to any Transferred Intellectual
Property (“Out-Licenses”;
together with the In-Licenses, the “IP Licenses”) other
than non-exclusive licenses granted in the ordinary course (as required to be
listed, the “Material
Out-Licenses”; together with the Material In-Licenses, the “Material IP
Licenses”).

     

    (j)          Neither
this Agreement nor the transactions contemplated by this Agreement or the
Related Agreements, including any assignment to Buyer by operation of law as a
result of the transactions contemplated hereby or thereby of any Contracts to
which Seller or SYC is a party, will result in: (i) Buyer or any of its
Subsidiaries granting to any third party any right to or with respect to any
material Intellectual Property Rights owned by, or licensed to, Buyer or any of
its Subsidiaries prior to the Closing, or (ii) Buyer or any of its
Subsidiaries being bound by, or subject to, any non-compete or other material
restriction on the operation or scope of their respective businesses, or
(iii) the loss of any material rights or licenses to Seller or SYC under
any IP License or the granting to any third party of any material additional
rights not previously granted to the Transferred Intellectual Property, or (iv)
Buyer or any of its Subsidiaries being obligated to pay any royalties or other
material amounts, or offer any discounts, to any third party in excess of those
payable by, or required to be offered by, any of them, respectively, in the
absence of this Agreement or the transactions contemplated hereby.

     

    (k)          Any
collection, acquisition, use, storage, retention, transfer, distribution or
dissemination by Seller or SYC, or any Seller Licensee in connection with the
Business of any personally identifiable information or confidential information
of any third parties has been in compliance with all applicable Laws (including
all Laws of the U.S. and the E.U.) and Seller’s, SYC’s, and each Seller
Licensee’s privacy policies (including those privacy policies relating to (i)
the privacy of users of their products and services and all Internet websites
owned, maintained or operated by Seller or SYC or any Seller Licensees, and (ii)
the collection, acquisition, use, storage, retention, transfer, distribution or
dissemination of any personally identifiable information confidential
information of third parties collected by Seller or SYC), or by third parties
having authorized access to the records of Seller or SYC.  The
execution, delivery and performance of this Agreement complies with all
applicable Laws relating to privacy and the collection, acquisition, use,
storage, transfer, distribution or dissemination of personal information and
confidential information and with Seller’s, each of its Subsidiary’s and each
Seller Licensee’s privacy policies related to the Business.

    
      
         

      

      
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    3.19           Insurance.  The
Selling Entities have all material policies of insurance covering the Business,
the Business Employees and the Transferred Assets, including policies of
property, fire, workers’ compensation, products liability, directors’ and
officers’ liability and other casualty and liability insurance, which Seller
reasonably believes is adequate for the operation of the
Business.  All such insurance policies are in full force and effect,
no notice of cancellation has been received, and there is no existing default or
event which, with the giving of notice or lapse of time or both, would
constitute a default, by any insured thereunder.  There is no material
claim pending under any of such policies as to which coverage has been
questioned, denied or disputed by the underwriters of such policies and there
has been no threatened termination of, or material premium increase with respect
to, any such policies.

     

    3.20           Government
Contracts. 

     

    (a)          Neither
Seller nor SYC is currently in, and the execution and delivery of this Agreement
by Seller and the consummation of the transactions by the Selling Entities will
not result in, any material violation, breach or default of any term or
provision or trigger automatic or optional termination of (i) any Contract
with any Governmental Entity, (ii) any material subcontract issued at any
tier under a prime contract with any Governmental Entity, or (iii) any
material bid, proposal, offer or quotation relating to a Contract with any
Governmental Entity or a subcontract issued under a Contract with any
Governmental Entity. Neither Seller nor SYC is in any violation, breach or
default of any provision of any federal order, statute, rule or regulation
(including the Federal Acquisition Regulation (“FAR”), agency
supplements to the FAR, the Arms Export Control Act (22 U.S.C. 277 et seq.), and agency
export regulations) or any similar state or federal Law governing any Contract,
subcontract, bid, or proposal with any Governmental Entity, as applicable.
Neither Seller nor SYC has received a cure notice, a show cause notice or a stop
work notice, nor has Seller or SYC been threatened with termination for default
under any Contract or subcontract with any Governmental Entity. No request for
equitable adjustment by any of its vendors, suppliers or subcontractors against
Seller or SYC relating to Contracts or subcontracts involving any Governmental
Entity exists.

     

    (b)          There
is not pending, and neither Seller nor SYC has received written notice of, any
material claim by a Governmental Entity against Seller or SYC for any of the
following: (i) defective pricing, (ii) FAR and/or CAS noncompliance,
(iii) fraud, (iv) false claims or false statements,
(v) unallowable costs as defined in the FAR at Part 31, including those
that may be included in indirect cost claims for prior years that have not yet
been finally agreed to by the Governmental Entity, or (vi) any other
monetary claims relating to the performance or administration by Seller or any
Subsidiary of Contracts or subcontracts for any Governmental
Entity. 

    
      
         

      

      
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    (c)          Neither
Seller nor SYC has been suspended or debarred from bidding on contracts or
subcontracts with any Governmental Entity in connection with the conduct of its
business; no such suspension or debarment has been initiated or threatened.
There is no ongoing investigation, audit, prosecution, civil or administrative
proceeding or settlement negotiation by any Governmental Entity relating to the
Contracts or subcontracts with any Governmental Entity or the violation of any
federal, state or local order, statute, rule, or regulation relating to
Contracts with any Governmental Entity, subcontracts, or export
controls. 

     

    (d)          No
Governmental Entity has any rights with respect to any technical data or
computer software of Seller and SYC related to the Business. 

     

    (e)          The
Business Employees collectively hold all security clearances necessary for the
operation of their business as presently conducted in all material
respects. 

     

    (f)          Neither
Seller, SYC nor any subsidiary or affiliate thereof has received or accepted on
or prior to the Closing Date any money, funds, credit, or the like pursuant to
the 2009-2010 PARI R&D Grant.

     

    3.21           Brokers.  There
is no investment banker, broker, finder, agent or other Person that has been
retained by or is authorized to act on behalf of Seller or SYC who is entitled
to any financial advisor’s, brokerage, finder’s or other fee or commission in
connection with the transactions contemplated by this Agreement for which any of
Buyer or any of the Buying Entities could be liable.

     

    3.22           State Anti-Takeover
Statutes.  Subject to the accuracy of Buyer’s representation and
warranty in Section
4.5 of
this Agreement, the Seller Board has taken all necessary actions so that any
restrictions on business combinations set forth in the MBCA and any other
similar applicable statutory Law of the Commonwealth of Massachusetts are not
applicable to this Agreement and the transactions contemplated
hereby.

     

    3.23           Solvency.  As of
the Closing and immediately after giving effect to all of the transactions
contemplated by this Agreement, (a) the amount of the “fair saleable value” of
the assets of each of the Selling Entities will exceed (i) the value of all
Liabilities of such Selling Entity, including contingent and other liabilities
as of such date, and (ii) without duplication of liability in clause (i), the
amount that will be required to pay the probable Liabilities of such Selling
Entity on its existing debts (including contingent liabilities) as such debts
become absolute and matured, (b) each of the Selling Entities will not have, as
of such date, an unreasonably small amount of capital for the operation of the
businesses in which it is engaged or proposed to be engaged following the
Closing Date, and (c) each of the Selling Entities will be able to pay its
Liabilities, including contingent and other liabilities, as they
mature.  For purposes of the foregoing, terms shall be generally
defined in accordance with the applicable federal Laws governing determinations
of the solvency of debtors.

    
      
         

      

      
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    3.24           Inventory and Product
Warranties. 

     

    (a)          Section 3.24(a) of the Seller
Disclosure Schedule contains a complete and accurate listing of the types and
quantities of inventory for the Seller Products as of June 30, 2009 (the “Seller Inventory”),
and the valuation of such Seller Inventory at net book value based on the lower
of Seller’s cost or market as determined in accordance with GAAP consistent with
Seller’s past practices.

     

    (b)          All
Seller Inventory, as of June 30, 2009 and as of the Effective Time, was and is
located at the locations indicated in Section 3.24(b) of the Seller
Disclosure Schedule.  No Seller Inventory, as of June 30, 2009 and as
of the Effective Time, was and is located at any location other than the
locations indicated in Section 3.24(b) of the Seller
Disclosure Schedule.  None of the Seller Inventory is held by any
Person on consignment.

     

    (c)          The
Seller Inventory consists only of items of a quality and quantities useable and
saleable in the ordinary course of business, and there are no obsolete or
damaged items in the Seller Inventory.

     

    (d)          Section 3.24(d) of the Seller
Disclosure Schedule describes Seller’s standard warranties given with respect to
Seller Products.  Other than the standard warranties set forth in said
Section 3.24(d) of the Seller
Disclosure Schedule, Seller has no material warranty obligations with respect to
any of the Seller Products.  There are no threatened claims and, to
the knowledge of Seller, no facts or circumstances presently exist upon or with
respect to which a substantial number of claims could be based against Seller
for any Seller Products which are defective or otherwise fail to meet any of
Seller’s warranties.

     

    (e)          All
Seller Inventory is free and clear of all Liens, other than Permitted Liens, and
at the Closing shall be free and clear of all Liens and available for pick up by
common carrier within thirty (30) days after the Closing Date without any
storage costs or other charges to Buyer.

     

    3.25           Disclosure. 
None of the representations or warranties of Seller contained herein, none of
the information contained in the Schedules referred to in the Seller Disclosure
Schedule or other Schedules provided hereunder, and none of the other written
information or documents furnished or to be furnished to Buyer by Seller in
connection with or pursuant to the terms of this Agreement, contains or will
contain any untrue statement of a material fact or omits or will omit to state a
material fact herein or therein necessary in order to make the statements
contained herein or therein not misleading.

     

    
      
        
        

      

      
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    ARTICLE IV

    REPRESENTATIONS
AND WARRANTIES OF BUYER

     

    Buyer
hereby represents and warrants to Seller and SYC as follows:

     

    4.1           Organization. 
Buyer is duly organized, validly existing and in good standing under the Laws of
the State of Delaware and has the requisite corporate power and authority to
conduct its business as it is presently being conducted and to own, lease or
operate its properties and assets.  Buyer is duly qualified to do
business and is in good standing in each jurisdiction where the character of its
properties owned or leased or the nature of its activities make such
qualification necessary, except where the failure to be so qualified or in good
standing would not, individually or in the aggregate, have a Buyer Material
Adverse Effect.

     

    4.2           Authorization; Board
Approval. 

     

    (a)          Buyer
has all requisite corporate power and authority to execute and deliver this
Agreement and the Related Agreements to which it is or will be a party and to
consummate the transactions contemplated hereby and thereby and to perform its
obligations hereunder and thereunder.  The execution and delivery of
this Agreement and the Related Agreements to which Buyer is a party by Buyer and
the consummation by Buyer of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate action on the part of
Buyer, and no other corporate or other action other proceeding on the part of
Buyer is necessary to authorize or approve this Agreement and the Related
Agreements and the transactions contemplated hereby and thereby.  This
Agreement has been, and each of the Related Agreements upon their execution and
delivery will be, duly executed and delivered by Buyer and, assuming the due
authorization, execution and delivery by Seller, constitutes a legal, valid and
binding obligation of Buyer, enforceable against it in accordance with its
terms, except that such enforceability (i) may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other similar Laws
affecting or relating to creditors’ rights generally, and (ii) is subject
to general principles of equity.

     

    (b)          At
a meeting duly called and held on October 7, 2009, the Buyer Board approved this
Agreement and the transactions contemplated hereby.

     

    4.3           Non-contravention; Required
Consents. 

     

    (a)          The
execution, delivery or performance by Buyer of this Agreement, the consummation
by Buyer of the transactions contemplated hereby and the compliance by Buyer
with any of the terms hereof do not and will not (i) violate or conflict
with any provision of the certificates of incorporation or bylaws of Buyer or
(ii) violate, conflict with, or result in the breach of or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration under, any of
the terms, conditions or provisions of any Contract to which Buyer is a party or
by which Buyer or any of its properties or assets may be bound except in the
case of clause (ii) above, for such violations, conflicts, breaches, defaults,
terminations, accelerations or Liens which would not, individually or in the
aggregate, have a Buyer Material Adverse Effect.

    
      
         

      

      
        -44-

        
          

        

      

      
         

      

    

    
       

      (b)          No
Consent of any Governmental Authority is required on the part of Buyer or any of
its Affiliates in connection with the execution, delivery and performance by
Buyer of this Agreement and the consummation by Buyer of the transactions
contemplated hereby, except as would not have a Buyer Material Adverse
Effect.

       

      4.4           Litigation. 
There are no Legal Proceedings pending or, to the knowledge of Buyer, threatened
against or affecting Buyer or any of its properties except for Legal Proceedings
that would not, individually or in the aggregate, have a Buyer Material Adverse
Effect.  Buyer is not subject to any outstanding Order, except for
Orders that would not, individually or in the aggregate with all other such
Orders, have a Buyer Material Adverse Effect.

       

      4.5           Ownership of
Securities. 
None of Buyer, its Subsidiaries, Associates or Affiliates owns or controls,
beneficially or of record, any Equity Interests of the Seller and none of Buyer,
its Subsidiaries, or current Associates or Affiliates has owned or controlled,
beneficially or of record any Equity Interests of Seller in the three years
prior to the date of this Agreement.

       

      ARTICLE V

      INTERIM
CONDUCT OF BUSINESS

       

      5.1           Affirmative Obligations of
Seller. 
Except (a) as expressly contemplated or permitted by this Agreement,
(b) as set forth in Section 5.1 of the
Seller Disclosure Schedule, or (c) as approved in advance by Buyer in
writing, at all times during the period commencing with the execution and
delivery of this Agreement and continuing until the earlier to occur of the
termination of this Agreement pursuant to Article X and
the Effective Time, Seller and SYC engaged in the Business shall (i) carry
on the Business in the usual, regular and ordinary course in substantially the
same manner as heretofore conducted and in compliance with all applicable Laws,
(ii) pay the debts and Taxes relating to the Business when due, in each
case subject to good faith disputes over such debts or Taxes, (iii) pay or
perform all material obligations relating to the Business when due and
(iv) use reasonable best efforts, consistent with past practices and
policies, to (A) preserve intact the present business organization of
Seller and SYC related to Business, (B) keep available the services of the
present officers and employees engaged in the Business and (C) preserve the
relationships with customers, suppliers, distributors, licensors and licensees
of Seller and SYC related to the Business and others which have significant
business dealings with Seller and SYC related to the Business.

      
        
          
          

           

        

        
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      5.2           Negative Obligations of
Seller. 
Except (i) as expressly contemplated or permitted by this Agreement,
(ii) as set forth in Section 5.2 of the
Seller Disclosure Schedule or (iii) as approved in advance by Buyer in
writing, at all times during the period commencing with the execution and
delivery of this Agreement and continuing until the earlier to occur of the
termination of this Agreement pursuant to Article X and
the Effective Time, Seller shall not (with respect to the Business), and shall
not permit any other Selling Entity (with respect to the Business) to, do any of
the following:

       

      (a)          propose
or adopt a plan of complete or partial liquidation, dissolution, merger,
consolidation, restructuring, recapitalization or other reorganization of any of
the Selling Entities;

       

      (b)          (i)
incur or assume any (i) Indebtedness for which Buyer, any Buyer Entity would be
required to discharge following the Closing or (ii) mortgage or pledge any
of the Transferred Assets, tangible or intangible, or create, incur, assume or
suffer to exist any Lien thereupon;

       

      (c)          except
as may be required by applicable Laws, enter into, adopt, amend, modify or
terminate any bonus, profit sharing, compensation, severance, pension,
retirement, deferred compensation, employment, or other employee benefit
agreement, trust, plan, fund or other arrangement for the compensation, benefit
or welfare of any Business Employee in any manner or increase or decrease the
compensation or fringe benefits of any Business Employee, pay any bonus or
special remuneration (whether in cash, equity or otherwise) to any Business
Employee, or pay any benefit not required by any plan or arrangement as in
effect as of the date hereof;

       

      (d)          hire
any employees who would become Transferred Employees at Closing;

       

      (e)          terminate
any employees who would otherwise become Transferred Employees at Closing but
for such termination or otherwise cause any such employees to
resign;

       

      (f)          enter
into, amend or extend any Contracts with any independent contractors to provide
services to the Business;

       

      (g)          enter
into, amend, or extend any Collective Bargaining Agreement;

       

      (h)          acquire,
lease, or license any material assets that would be Transferred Assets at
Closing in any single transaction or series of related transactions, except
transactions pursuant to existing Contracts identified in Schedule 2.1(c) or on
the Seller Disclosure Schedule which are not material to the Business,
individually or in the aggregate;

       

      (i)          sell,
transfer or dispose of any of the Transferred Assets except
(i) transactions pursuant to existing Contracts identified in Schedule 2.1(c) or on
the Seller Disclosure Schedule which are not material to the Business,
individually or in the aggregate or (ii) in the ordinary course of business
consistent with past practice;

      
        
           

        

        
          -46-

          
            

          

        

        
           

        

      

       

      (j)          except
as may be required as a result of a change in applicable Laws or in GAAP, make
any change in any of the accounting principles or practices used by
it;

       

      (k)          (i) make
or change any Tax election, (ii) settle or compromise any material Tax
liability, (iii) file any amended Tax Return, or (iv) consent to any
extension or waiver of any limitation period with respect to any claim or
assessment for Taxes, in each case to the extent related to the Transferred
Assets;

       

      (l)          enter
into any IP Licenses or amend any IP Licenses or grant any release or
relinquishment of any rights under any IP Licenses, in each case, related to the
Business;

       

      (m)         (i) enter
into any lease or sublease of real property (whether as a lessor, sublessor,
lessee or sublessee) or (ii) modify, amend or exercise any right to renew
any lease or sublease of real property with respect to the
Business;

       

      (n)         grant
any exclusive rights with respect to any Transferred Intellectual Property,
divest any Transferred Intellectual Property, except if such divestiture or
divestures, individually or in the aggregate, are not material to Seller, or
materially modify Seller’s standard warranty terms for Seller Products or
services or amend or modify any product or service warranty in any manner that
is likely to be materially adverse to Seller or SYC;

       

      (o)          (i) acquire
(by merger, consolidation or acquisition of stock or assets) any other Person or
any equity interest therein, (ii) enter into any Contract which would
result in a Business Material Adverse Effect or (iii) authorize, incur or
commit to incur any new capital expenditure(s) which, individually or in the
aggregate, is or are material to the Business;

       

      (p)          settle
or compromise any pending or threatened Legal Proceeding or pay, discharge or
satisfy or agree to pay, discharge or satisfy any claim, liability or obligation
(absolute or accrued, asserted or unasserted, contingent or otherwise), other
than the settlement, compromise, payment, discharge or satisfaction of Legal
Proceedings, claims and other Liabilities the settlement, compromise, discharge
or satisfaction of which does not include any obligation to be performed in
connection with the Business or by Buyer or any of its Subsidiaries following
the Effective Time that is not, individually or in the aggregate, material to
the Business;

       

      (q)          except
as required by applicable Laws or GAAP, revalue in any material respect any of
the properties or assets of the Business including writing-off notes or accounts
receivable other than in the ordinary course of business consistent with past
practice;

       

      (r)          other
than in the ordinary course of business consistent with past practice, enter
into, renew, extend or terminate (i) any Material Contract or (ii) any
Transferred Contract; or make any material change in any such Material Contract
or agreement, contract, plan, arrangement or other transaction;

      
        
           

        

        
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      (s)         fail
to maintain in full force and effect any material Transferred
Permits;

       

      (t)          relocate
any employees engaged in the Business or any Transferred Tangible Property to
real property other than the Montreal Subleased Property or the Salem Leased
Property, or relocate other employees or personal property into the Montreal
Subleased Property or the Salem Leased Property; or

       

      (u)         enter
into a Contract to do any of the foregoing or knowingly take any action which
results or is reasonably likely to result in any of the conditions set forth in
Article IX
not being satisfied, or would make any of the representations or warranties of
Seller contained in this Agreement untrue or incorrect in any material respect
if made at such subsequent time, or that would materially delay such
consummation.

       

      ARTICLE VI

      ADDITIONAL
AGREEMENTS

       

      6.1           Reasonable Best Efforts to
Complete. 
Upon the terms and subject to the conditions set forth in this Agreement, each
of Buyer, Seller and SYC shall use its reasonable best efforts to take, or cause
to be taken, all actions, and to do, or cause to be done, and to assist and
cooperate with the other party or parties hereto in doing, all things reasonably
necessary, proper or advisable to consummate and make effective, in the most
expeditious manner practicable, the transactions contemplated by this Agreement,
including using its reasonable best efforts to:

       

      (a)          cause
the conditions set forth in Article IX to be
satisfied or fulfilled;

       

      (b)          obtain
all necessary or appropriate consents, waivers and approvals, and provide all
necessary notices, under any Contracts to which Seller, SYC or any of their
respective Subsidiaries is a party in connection with this Agreement and the
consummation of the transactions contemplated hereby;

       

      (c)          make
all necessary registrations, declarations and filings with Governmental
Authorities in connection with this Agreement and the consummation of the
transactions contemplated hereby, and obtain all necessary actions or
non-actions, waivers, clearances, consents, approvals, orders and authorizations
from Governmental Authorities in connection with this Agreement and the
consummation of the transactions contemplated hereby;

       

      (d)          execute
or deliver any additional instruments reasonably necessary to consummate the
transactions contemplated by, and to fully carry out the purposes of, this
Agreement; and

      
        
           

        

        
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      Notwithstanding
anything to the contrary herein, if the lessor under SYC’s Montreal leased
premises conditions its grant of a consent (including by threatening to exercise
a “recapture” or other termination right) upon, or otherwise requires in
response to a notice or consent request regarding this Agreement, the payment of
a consent fee, “profit sharing” payment or other consideration (including
increased rent payments), or the provision of additional security (including a
guaranty), the Selling Entities shall be solely responsible for making all such
payments or providing all such additional security.

       

      6.2           Anti-Takeover
Laws. 
In the event that any state anti-takeover or other similar statute or regulation
is or becomes applicable to this Agreement or any of the transactions
contemplated by this Agreement, Seller, at the direction of the Seller Board,
shall use its best efforts to ensure that the transactions contemplated by this
Agreement may be consummated as promptly as practicable on the terms and subject
to the conditions set forth in this Agreement, and otherwise to minimize the
effect of such statute or regulation on this Agreement and the transactions
contemplated hereby.

       

      6.3           Access; Notice and
Consultation. 

       

      (a)          Subject
to any restrictions imposed under applicable Laws, at all times during the
period commencing with the execution and delivery of this Agreement and
continuing until the earlier to occur of the termination of this Agreement
pursuant to
Article X and the Effective Time, Seller and SYC shall afford Buyer
and its accountants, legal counsel and other representatives reasonable access
during normal business hours, upon reasonable notice, to any assets, properties,
contracts, books, records and personnel of the Business as Buyer may reasonably
request; provided,
however, that no information or knowledge obtained by Buyer in any
investigation conducted pursuant to this Section 6.3 shall
affect or be deemed to modify any representation or warranty of Seller or SYC
set forth herein or the conditions to the obligations of Buyer to consummate the
transactions contemplated by this Agreement, or the remedies available to the
parties hereunder; and provided further, that the
terms and conditions of the Confidentiality Agreement shall apply to any
information provided to Buyer pursuant to this Section
6.3.

       

      (b)          At
all times during the period commencing with the execution and delivery of this
Agreement and continuing until the earlier to occur of the termination of this
Agreement pursuant to Article X and
the Effective Time:

       

      (i)           each
of Buyer, on the one hand, and Seller and SYC, on the other hand, shall promptly
notify the other upon becoming aware that any representation or warranty made by
such party in this Agreement has become untrue or inaccurate in any material
respect or that such party has breached or failed to comply with or satisfy in
any material respect any covenant, condition or agreement to be complied with or
satisfied by such party under this Agreement.

       

      (ii)          Seller
and SYC shall promptly notify Buyer of (i) any notice or other
communication received by Seller or SYC from any third party, subsequent to the
date of this Agreement and prior to the Effective Time, alleging any material
breach of or material default under any Material Contract or any Transferred
Contract to which Seller, SYC or SYC is a party, or (ii) any notice or
other communication received by Seller or SYC from any third party, subsequent
to the date of this Agreement and prior to the Effective Time, alleging that the
consent of such third party is or may be required in connection with the
transactions contemplated by this Agreement; provided, however, that no
such notification shall affect or be deemed to modify any representation or
warranty of Seller and SYC set forth herein or the conditions to the obligations
of Buyer to consummate the transactions contemplated by this Agreement or the
remedies available to the parties hereunder; and provided further, that the
terms and conditions of the Confidentiality Agreement shall apply to any
information provided to Buyer pursuant to this Section
6.3.

      
        
           

        

        
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      (iii)        Seller
and SYC shall consult in good faith on a reasonably regular basis with the
representatives of the Buyer to report material (individually or in the
aggregate) operational developments with respect to the Business, the general
status of relationships with customers, suppliers, distributors, licensors and
licensees of the Business and others which have significant business dealings
with the Business and the general status of ongoing operations pursuant to
procedures reasonably requested by such representatives with respect to the
Business. Seller and SYC acknowledge that any such consultation shall not
constitute a waiver by Buyer of any rights it may have under this Agreement, and
that the Buyer shall not have any liability or responsibility for any actions of
Seller or SYC or any of their respective representatives with respect to matters
that are the subject of such consultations.

       

      (iv)        Seller
shall promptly advise Buyer orally and in writing of any litigation commenced
after the date hereof against Seller or any of its directors by any Seller
stockholders (on their own behalf or on behalf of Seller) relating to this
Agreement or the transactions contemplated hereby and shall keep Buyer
reasonably informed regarding any such litigation.  Seller shall give
Buyer the opportunity to consult with Seller regarding the defense or settlement
of any such stockholder litigation and shall consider Buyer’s views with respect
to such stockholder litigation and shall not settle any such stockholder
litigation without the prior written consent of Buyer.

       

      (v)          Seller
shall make available to Buyer a copy of each report, schedule, proxy or
information statement, registration statement and other document proposed to be
filed by Seller with the SEC during such period pursuant to the requirements of
federal securities Laws or federal or state Laws a reasonable period of time
prior to the filing of such reports, schedules, proxy or information statements,
registration statements and other documents (and in any event at least two (2)
Business Days prior to the filing thereof with the SEC).

       

      (c)          Notwithstanding
anything to the contrary set forth in this Agreement, no information obtained
pursuant to the access granted or notification provided pursuant to this Section 6.3 shall be
deemed to (i) amend or otherwise modify in any respect any representation
or warranty of the party hereto providing such access or notice,
(ii) impair or otherwise prejudice in any manner rights of the party
receiving such access or notice to rely upon the conditions to the obligations
of such party to consummate the transactions contemplated by this Agreement, or
(iii) impair or otherwise limit the remedies available to the party
receiving such access or notice.

      
        
           

        

        
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      6.4           Confidentiality. 

       

      (a)          Buyer
and Seller hereby acknowledge that Buyer and Seller have previously executed a
Confidentiality Agreement, dated April 24, 2009 (as amended from time-to-time,
the “Confidentiality
Agreement”), which will continue in full force and effect in accordance
with its terms.  The parties hereby agree that the term “Proprietary
Information,” as used in the Confidentiality Agreement shall be deemed to
include (i) all exhibits, schedules, certificates and other documents
executed or delivered in connection with this Agreement, the other Related
Agreements and the consummation of the transactions contemplated hereby and
thereby, (ii) all proprietary and confidential information concerning
Seller and SYC, which includes all information with respect to the Business, and
(iii) all documents and materials contained in Seller’s data room, or
otherwise furnished or made available (directly or indirectly) to Buyer or its
Affiliates; provided,
however, that after the Closing, with respect to Buyer, the foregoing
shall not apply to such information that (1) is solely related to the
Transferred Assets or Assumed Liabilities and (2) is not also related to
any business or assets of Seller (or a Subsidiary thereof) not transferred to
Buyer (or a Subsidiary thereof) under this Agreement.  Following the
Closing, Seller and SYC shall (and shall cause their respective Subsidiaries to)
keep confidential and not disclose (other than to Buyer and its Subsidiaries)
any non-public information related to the Transferred Assets or Assumed
Liabilities.  In addition, notwithstanding any other provision of the
Confidentiality Agreement and this Agreement, Buyer and its Affiliates and
Seller and its Affiliates may include this Agreement and the other Related
Agreements in or as an exhibit to any report, form or registration statement
filed with or furnished to the SEC.

       

      (b)          Invention
Disclosures.  Seller and SYC shall treat as confidential and
not publicly disclose the Transferred Disclosures for so long as such
Transferred Disclosures remain unpublished by Buyer or its
Subsidiaries.

       

      6.5           Public
Disclosure. 
Each of Buyer and Seller shall consult with the other before issuing any press
release or making any public announcement or statement with respect to this
Agreement or the transactions contemplated hereby, and shall not issue any such
press release or make any such public announcement or statement without the
prior written consent of the other party hereto, which consent shall not be
unreasonably withheld; provided, however, that
either Buyer or Seller may, without the prior consent of the other, issue any
such press release or make any such public announcement or statement as may be
required by Law or, in the case of Buyer, the rules and regulations of the
Nasdaq, if such party first notifies and consults with the other regarding the
timing and substance of such public announcement or statement.

       

      6.6           Employee
Matters. 

       

      (a)          Seller
shall consult with Buyer (and consider in good faith the advice of Buyer) prior
to sending any notices or other communication materials to Business Employees
regarding this Agreement and the transactions contemplated hereby and Seller
shall not send any written notices or other written communication materials
(including via electronic mail) to Business Employees regarding this Agreement
or the transactions contemplated hereby without the prior written consent of
Buyer (which consent will not be unreasonably withheld).

      
        
           

        

        
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      (b)          From
and after the Effective Time, and to the extent permitted by applicable Law,
Buyer shall recognize the prior service with Seller or SYC of each Transferred
Employee in connection with all employee benefit plans, programs or policies of
Buyer or its Affiliates in which Transferred Employees are eligible to
participate following the Effective Time for purposes of eligibility and vesting
and determination of level of benefits (but not for purposes of benefit accruals
or benefit amounts under any defined benefit pension plan or to the extent that
such recognition would result in duplication of benefits), subject to any
applicable maximum accruals under Buyer’s employee benefit plans, programs or
policies of Buyer or its Affiliates.  From and after the hiring of
each Transferred Employee, Buyer shall use commercially reasonable efforts to:
(i) cause any pre-existing conditions or limitations and eligibility
waiting periods under any group health plans of Buyer or its Affiliates to be
waived with respect to Transferred Employees and their eligible dependents to
the extent such Transferred Employees and their eligible dependents were not
subject to such preexisting conditions and limitations and eligibility waiting
periods under the comparable Seller Employee Benefit Plan as of the time
immediately preceding the Closing; and (ii) provide each Transferred
Employee with credit for any deductibles paid under any Seller Employee Benefit
Plan that provides medical, dental or vision benefits in the plan year in effect
as of the Closing Date in satisfying any applicable deductible or out of pocket
requirements under any medical, dental or vision plans of Buyer or its
Subsidiaries that such employees are eligible to participate in after the
Effective Time to the same extent that such expenses were recognized under the
comparable Seller Employee Benefit Plan.  The provisions of this Section 6.6(b) are
not intended to confer upon any person other than the parties hereto any rights
or remedies hereunder, and nothing herein shall be deemed to amend any Seller
Employee Benefit Plan to reflect the terms of this Section
6.6(b).

       

      (c)          To
the extent any employment agreement of a Seller employee would permit such
employee to resign for “good reason” (as defined in the applicable employment
agreement) at any time on or after the date of the first public announcement of
this Agreement, Seller shall use commercially reasonable efforts to negotiate
and cause to be executed, to the fullest extent possible, individual amendments
or waivers, as applicable, to such employment agreements prior to the Closing
Date to prevent such employee from resigning for “good reason” at any time prior
to the Closing Date; provided, however, that any such
amendments or waivers shall be provided to Buyer for review prior to execution
and shall be in a form reasonably acceptable to Buyer.

       

      6.7           Non-Solicitation. 

       

      (a)          Seller
and SYC shall immediately cease any and all existing activities, discussions or
negotiations with any Persons conducted heretofore with respect to any Seller
Acquisition Proposal or Seller Acquisition Transaction.

      
        
           

        

        
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      (b)          At
all times during the period commencing with the execution and delivery of this
Agreement and continuing until the earlier to occur of the termination of this
Agreement pursuant to Article X and
the Effective Time, Seller and SYC shall not, nor shall Seller or SYC authorize
or permit any of their respective directors, officers or other employees,
controlled Affiliates, or any investment banker, attorney or other advisor or
representative retained by any of them to, directly or indirectly:

       

      (i)           solicit,
initiate, knowingly encourage or induce the making, submission or announcement
of, a Seller Acquisition Proposal;

       

      (ii)          furnish
to any Person (other than Buyer or any designees of Buyer) any non-public
information relating to Seller or SYC, or afford access to the business,
properties, assets, books or records of Seller or SYC to any Person (other than
Buyer or any designees of Buyer), or take any other action that is intended or
would be reasonably expected to assist or facilitate any inquiries or the making
of any proposal that constitutes or could lead to a Seller Acquisition Proposal
or Seller Acquisition Transaction;

       

      (iii)         participate
or engage in discussions or negotiations with any Person with respect to a
Seller Acquisition Proposal or Seller Acquisition Transaction;

       

      (iv)        approve,
endorse or recommend a Seller Acquisition Proposal or Seller Acquisition
Transaction;

       

      (v)         enter
into any letter of intent, memorandum of understanding or other Contract
contemplating or otherwise relating to a Seller Acquisition Proposal or Seller
Acquisition Transaction;

       

      (vi)        terminate,
amend or waive any rights under any “standstill” or other similar agreement
between Seller or SYC and any Person;

       

      (c)          Seller
shall promptly, and in all cases within twenty four (24) hours of its receipt,
advise Buyer orally and in writing of any receipt by any director, officer or
other employee, controlled Affiliate, or any investment banker, attorney or
other advisor or representative retained by Seller or SYC of (i) any Seller
Acquisition Proposal, (ii) any request for information that could lead to a
Seller Acquisition Proposal, or (iii) any inquiry with respect to, or which
could lead to, any Seller Acquisition Proposal, the terms and conditions of such
Seller Acquisition Proposal, request or inquiry, and the identity of the Person
or group making any such Seller Acquisition Proposal, request or inquiry, but
only to the extent such disclosure will not result in a breach of a
confidentiality obligation of Seller.

       

      6.8           Real Estate
Matters. 
Buyer intends to enter into a direct lease of a portion of Seller’s Salem leased
premises (the “Salem
Leased Property”) commencing on the Closing Date.  Prior to the
Closing Date, Buyer shall use commercially reasonable efforts, at Seller’s sole
cost, to enter into a termination agreement with the lessor of the Salem Leased
Property to terminate its lease as to the Salem Leased Property.  For
a period of thirty (30) days after the Closing, at no additional cost, Buyer
shall have the right to use, access and relocate Transferred Assets in other
portions of Seller’s Salem leased premises.

      
        
           

        

        
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      6.9           Mail
Handling. 
Effective as of the Closing Date, Buyer shall have the right to open all mail
and packages addressed to Seller or a Subsidiary and delivered to Buyer relating
to the Transferred Assets or the Assumed Liabilities.  To the extent
Buyer receives any mail or packages addressed to Seller or a Subsidiary and
delivered to Buyer not exclusively relating to the Transferred Assets or Assumed
Liabilities, Buyer shall promptly deliver such mail or packages to
Seller.

       

      6.10         Non-Solicitation of
Employment. 
For a period of five (5) years after the Closing Date, Seller and SYC shall not,
and shall cause their respective Subsidiaries to not, solicit for employment any
Transferred Employee; provided, however, that
Seller shall not be deemed to have breached this Section 6.10 in
connection with the results arising from Seller’s, SYC’s or any of their
respective Subsidiaries’ placement or distribution of general employment
advertising, internet postings, employee referrals, or other publications for
general circulation that are not targeted at the Transferred
Employees.  Notwithstanding anything in the immediately preceding
sentence to the contrary, for a period of five (5) years after the Closing Date,
Seller and SYC shall not hire any of the Transferred Employees unless such
Transferred Employee has not been employed by Buyer or any of its Subsidiaries
for a period of no less than six (6) months prior to such Transferred Employee’s
hire date with Seller or SYC.

       

      6.11         Non-Competition. 
Seller and SYC agree that for a period of five (5) years commencing on the
Closing Date, Seller and SYC will not and will cause their respective
Subsidiaries not to make, have made or distribute, each, on a worldwide
basis:

       

      (a)           any
Visible Lasers (“Visible Lasers” to be
defined  for purposes of this Section 6.11 as
400-850 nm) with power levels greater than 150mW;

       

      (b)           any
Visible Laser modules which are based upon SYC’s beam shaping optics, or
equivalent, which is owned or licensed to Seller, SYC or any of their respective
Subsidiaries;

       

      (c)           any
Visible Laser modules which are based upon SYC’s beam shaping optics capability,
or equivalent, which is owned or licensed to Seller, SYC or any of their
respective Subsidiaries;

       

      (d)           any
Visible Laser modules and systems to the bio-instrumentation marketplace;
and

       

      (e)           any
Visible Laser modules for existing applications to any of SYC’s customer
accounts as of the Closing Date.

       

      ARTICLE VII

      POST-CLOSING
AGREEMENTS

       

      7.1           Transfer of Cash Portion
Among the Selling Entities. 
Within the 12-month period immediately following the Closing, none of the
Selling Entities shall transfer, assign, convey or otherwise distribute to
Seller, any of its Subsidiaries or any other Person any of the Cash Portion
received by such Selling Entity in the transactions contemplated hereby if and
to the extent that any such transfer, assignment, conveyance or distribution
would have the effect of rendering such Selling Entity
Insolvent.

      
        
           

        

        
          -54-

          
            

          

        

        
           

        

      

    

     

    7.2           Post-Closing Access and
Cooperation. From and after the Closing, Seller and Buyer shall, and
shall cause its Subsidiaries to, give the other party and its Subsidiaries and
their representatives reasonable access, during normal business hours and upon
reasonable notice, to all books, documents, information, data, files and other
records relating to (i) the operation of the Business by Seller or SYC prior to
the Closing and the operation of the Business by any of the Buying Entities
after the Closing, as applicable, (ii) the ownership of the Transferred Assets
by the Seller Entities prior to the Closing and the ownership of the Transferred
Assets by the Buying Entities after the Closing, as applicable, and (iii) the
Assumed Liabilities, and to furnish copies thereof, which such party or its
Subsidiaries or their representatives reasonably request, including in
connection with Legal Proceedings.  Seller and Buyer shall not, and
shall not permit any other party to, destroy any such books, documents,
information, data, files and other records prior to the seventh (7th)
anniversary of the Closing, and in any event will not destroy or permit the
destruction of any such books, documents, information, data, files and other
records without providing the other party with notice detailing the contents of
such books, documents, information, data, files and other records, and providing
the other party with the opportunity to obtain such books, documents,
information, data, files and other records, at least 60 days prior to the
destruction thereof.

     

    7.3           2009 – 2010 PARI R&D
Grant. Within 30 days after the Closing, the Buyer shall deliver notice
to terminate the 2009-2010 Programme d’aide a la recherché industrielle (PARI)
R&D Grant (the “2009-2010 PARI R&D
Grant”).  In no event shall the Buyer accept, or permit any of
its Subsidiaries to accept, any funds from such 2009-2010 PARI R&D
Grant.

     

    ARTICLE VIII

    TAX
MATTERS

     

    8.1           Returns; Indemnification;
Liability for Taxes.

     

    (a)          Seller
shall prepare and file (or cause to be prepared and filed) on a timely basis all
Tax Returns with respect to Seller and SYC for all taxable periods ending on or
before the Closing Date and shall pay, and shall indemnify and hold Buyer
harmless against and from (A) all Taxes of Seller, SYC and their respective
Subsidiaries; (B) all Taxes relating to the Transferred Assets and the operation
of the Business for all taxable years or periods that end on or before the
Closing Date; (C) all Taxes for which Seller or SYC may be liable under
Treasury Regulation Section 1.1502-6 (or any similar provision of state,
local or foreign law); and (D) with respect to any taxable period
commencing before the Closing Date and ending after the Closing Date (a “Straddle Period”) all
Taxes relating to the Transferred Assets and the operation of the Business
attributable to the Tax period prior to and including the Closing Date (the
“Pre-Closing Tax
Period”) (the Taxes referred to in items (A), (B), (C) and (D) of this
sentence are referred to herein as “Pre-Closing
Taxes”).  For purposes of this Agreement, the portion of any
Tax that is attributable to a Pre-Closing Tax Period shall be (A) in the
case of a Tax that is not based on net income, gross income, premiums or gross
receipts, the total amount of such Tax for the period in question multiplied by
a fraction, the numerator of which is the number of days in the Pre-Closing Tax
Period, and the denominator of which is the total number of days in such
Straddle Period, and (B) in the case of a Tax that is based on any of net
income, gross income, premiums or gross receipts, the Tax that would be due with
respect to the Pre-Closing Tax Period if such Pre-Closing Tax Period were a
separate taxable period, except that exemptions, allowances, deductions or
credits that are calculated on an annual basis (such as the deduction for
depreciation or capital allowances) shall be apportioned on a per diem
basis.

    
      
         

      

      
        -55-

        
          

        

      

      
         

      

    

     

    (b)          Buyer
shall prepare and file (or cause to be prepared and filed) on a timely basis all
Tax Returns relating to the Transferred Assets or the operation of the Business
for periods ending after the Closing Date and shall pay and shall indemnify and
hold Seller harmless against and from (A) all Taxes relating to the
Transferred Assets and the operation of the Business for any taxable year or
period commencing after the Closing Date, and (B) all Taxes relating to the
Transferred Assets and operation of the Business for any Straddle Period other
than Pre-Closing Taxes.

     

    8.2           Refunds and Credits.
Any refunds and credits attributable to Pre-Closing Taxes shall be for the
account of Seller and any other refunds and credits shall be for the account of
Buyer.

     

    8.3           Cooperation. The
parties to this Agreement shall provide assistance to each other as reasonably
requested in preparing and filing Tax Returns and responding to Tax Contests,
provide reasonably detailed notice of any Tax Contest sufficient to apprise the
other party of the nature of the claim, make available to each other as
reasonably requested all relevant information, records, and documents, including
workpapers, relating to Taxes of the Company and any Company Subsidiary and
retain any books and records that could reasonably be expected to be necessary
or useful in connection with any preparation by any other party of any Tax
Return, or for any Tax Contest.  The Seller shall contact Buyer prior
to the disposition of any books and records described in this Section 8.3 and allow
Buyer to obtain such books and records within ten (10) days of such
notice.

     

    8.4           Transferred
Employees. At Buyer’s election, Buyer and Seller shall utilize the
alternate procedure set forth in Revenue Procedure 2004-53 with respect to wage
withholding for Transferred Employees.

     

    8.5           Conflicts. In the
event of a conflict between the provisions of this Article VIII
and any other section of this Agreement, this Article VIII
shall govern and control.

    
      
         

      

      
        -56-

        
          

        

      

      
         

      

    

     

    ARTICLE IX

    CONDITIONS
TO THE ACQUISITION

     

    9.1           Conditions to Each Party’s
Obligations to Effect the Acquisition. The respective
obligations of Buyer and Seller to consummate the transactions contemplated
hereby shall be subject to the satisfaction or waiver (where permissible under
applicable Laws) prior to the Effective Time, of each of the following
conditions:

     

    (a)          No Legal
Prohibition.  No Governmental Authority shall have
(i) enacted, issued, promulgated, entered, enforced or deemed applicable to
the transactions contemplated hereby any Law that is in effect and has the
effect of making any of the transactions contemplated by this Agreement illegal
or which has the effect of prohibiting or otherwise preventing the consummation
of any of the transactions contemplated by this Agreement, or (ii) issued or
granted, or threatened to issue or grant, any Order (whether temporary,
preliminary or permanent) that has (or would be reasonably expected to have) the
effect of making any of the transactions contemplated by this Agreement illegal
or which has (or would be reasonably expected to have) the effect of prohibiting
or otherwise preventing the consummation of any of the transactions contemplated
by this Agreement.

     

    9.2           Additional Conditions to the
Obligations of Buyer. The obligations of
Buyer to consummate the transactions contemplated hereby shall be subject to the
satisfaction or waiver prior to the Effective Time of each of the following
conditions, any of which may be waived exclusively by Buyer:

     

    (a)          Representations and
Warranties.  The representations and warranties of Seller and
SYC set forth in Section 3.2, Section 3.3, Section 3.7(a), Section 3.21 and
Section 3.22 of
this Agreement (i) shall have been true and correct as of the date of this
Agreement and (ii) shall be true and correct in all material respects on and as
of the Closing Date with the same force and effect as if made on and as of the
Closing Date (other than those representations and warranties which address
matters only as of a particular date, which shall have been true and correct in
all material respects only as of such particular date).  All other
representations and warranties of Seller and SYC set forth in this Agreement (i)
shall have been true and correct in all material respects as of the date of this
Agreement and (ii) shall be true and correct in all material respects on and as
of the Closing Date with the same force and effect as if made on and as of the
Closing Date (other than those representations and warranties which address
matters only as of a particular date, which shall have been true and correct in
all material respects only as of such particular date.

     

    (b)          Performance of Obligations
of Seller.  Seller shall have performed in all material
respects any obligations and complied in all material respects with any
covenants or other agreements of Seller to be performed or complied with by it
under this Agreement at or prior to the Effective Time.

     

    (c)          Officer’s
Certificate.  Buyer shall have received a certificate, validly
executed for and on behalf of Seller and in its name by the Chief Executive
Officer and Chief Financial Officer of Seller, certifying the satisfaction of
the conditions set forth in Section 9.2(a), Section 9.2(b) and
Section
9.2(d).

    
      
         

      

      
        -57-

        
          

        

      

      
         

      

    

     

    (d)          No Business Material Adverse
Effect.  No event, development, change, circumstance or
condition shall have occurred or exist that is continuing has had, individually
or in the aggregate, a Business Material Adverse Effect (whether or not any
events, developments, changes, circumstances or conditions occurring prior to
the execution and delivery of this Agreement caused or contributed to the
occurrence of such Business Material Adverse Effect).

     

    (e)          Related
Agreements.  Seller shall have executed and delivered to Buyer
the Related Agreements to which Seller is a party.

     

    (f)          Opinion.  Buyer
shall have received an opinion from counsel to Seller in the form of Schedule
9.2(f).

     

    (g)          Employee
Retention.  All of the employees identified on Schedule 9.2(g) shall
have executed and delivered to Buyer or one of its Subsidiaries offer letters
and other standard Buyer agreements related to employment effective as of the
Closing Date.

     

    (h)          Consents.  The
Consents identified on Schedule 9.2(h) shall
have been obtained and shall be in a form reasonably satisfactory to
Buyer.

     

    (i)          Release of Certain
Liens.  The Liens identified on Schedule 9.2(i) shall
have been properly released and Buyer shall have received evidence reasonably
satisfactory to it that such Liens have been properly released.

     

    (j)          Payoff
Letter.  Buyer shall have received a fully executed Payoff
Letter from the creditors of Seller and SYC identified on Schedule
9.2(j).

     

    (k)          Montreal
Sublease.  The Montreal Sublease shall have been entered into
and shall be in full force and effect as of the Closing Date.
 

     

    (l)          Salem Leased
Property. Buyer shall have entered into a direct lease of the Salem
Leased Property with the lessor thereof commencing on the Closing Date and
Seller’s lease as to the Salem Leased Property shall have
terminated.

     

    9.3           Additional Conditions to
Seller’s Obligations to Effect the Acquisition. The obligations of
Seller to consummate the transactions contemplated hereby shall be subject to
the satisfaction or waiver prior to the Effective Time of each of the following
conditions, any of which may be waived exclusively by Seller:

    
      
         

      

      
        -58-

        
          

        

      

      
         

      

    

     

    (a)          Representations and
Warranties.  The representations and warranties of Buyer set
forth in Section
4.2, and Section 4.3 of this
Agreement (i) shall have been true and correct as of the date of this Agreement
and (ii) shall be true and correct in all material respects on and as of the
Closing Date with the same force and effect as if made on and as of the Closing
Date (other than those representations and warranties which address matters only
as of a particular date, which shall have been true and correct in all material
respects only as of such particular date).  All other representations
and warranties of Buyer set forth in this Agreement (i) shall have been true and
correct in all material respects as of the date of this Agreement and (ii) shall
be true and correct in all material respects on and as of the Closing Date with
the same force and effect as if made on and as of the Closing Date (other than
those representations and warranties which address matters only as of a
particular date.

     

    (b)          Performance of Obligations
of Buyer.  Buyer shall have performed in all material respects
any obligations and complied in all material respects with any covenants or
other agreements of Buyer to be performed or complied with by it under this
Agreement at or prior to the Effective Time.

     

    (c)          Officer’s
Certificate.  Seller shall have received a certificate, validly
executed for and on behalf of Buyer and in its name by an executive officer of
Buyer, certifying the satisfaction of the conditions set forth in Section 9.3(a) and
Section
9.3(b).

     

    (d)          Related
Agreements.  Buyer shall have executed and delivered to Seller
the Related Agreements to which Buyer is a party.

     

    ARTICLE X

    TERMINATION,
AMENDMENT AND WAIVER

     

    10.1           Termination. This
Agreement may be terminated at any time prior to the Effective Time (it being
agreed that the party hereto terminating this Agreement pursuant to this Section 10.1 shall
give prompt written notice of such termination to the other party or parties
hereto):

     

    (a)          by
mutual written agreement of Buyer and Seller; or

     

    (b)          by
either Buyer or Seller, if the Closing shall not have occurred by January 31,
2010 (the “Termination
Date”); provided,
however, that the right to terminate this Agreement pursuant to this
Section 10.1(b)
shall not be available to any party hereto whose action or failure to fulfill
any obligation under this Agreement has been the principal cause of or resulted
in any of the conditions to the Closing set forth in Article IX
having failed to be satisfied on or before the Termination Date and such action
or failure to act constitutes a material breach of this Agreement;
or

     

    (c)          by
either Buyer or Seller if any Governmental Authority (i) shall have enacted,
issued, promulgated, entered, enforced or deemed applicable to any of the
transactions contemplated by this Agreement any Law that is in effect and has
the effect of making the consummation of any of the transactions contemplated by
this Agreement illegal or which has the effect of prohibiting or otherwise
preventing the consummation of any of the transactions contemplated by this
Agreement or (ii) shall have issued or granted any Order that is in effect and
has the effect of making any of the transactions contemplated by this Agreement
illegal or which has the effect of prohibiting or otherwise preventing the
consummation of any of the transactions contemplated by this Agreement, and such
Order has become final and non-appealable; or

    
      
         

      

      
        -59-

        
          

        

      

      
         

      

    

     

    (d)          by
Buyer in the event (i) of a breach of any covenant or agreement on the part of
Seller set forth in this Agreement or (ii) that any representation or warranty
of Seller set forth in this Agreement shall have been inaccurate when made or
shall have become inaccurate, in either case such that the conditions to the
Closing set forth in Section 9.2(a) or
Section 9.2(b)
would not be satisfied as of the time of such breach or as of the time such
representation and warranty became inaccurate; provided, however, that
notwithstanding the foregoing, in the event that such breach by Seller or such
inaccuracies in the representations and warranties of Seller are curable by
Seller through the exercise of commercially reasonable efforts, then Buyer shall
not be permitted to terminate this Agreement pursuant to this Section 10.1(c) until
the earlier to occur of (A) the expiration of a fifteen (15) calendar day period
after delivery of written notice from Buyer to Seller of such breach or
inaccuracy, as applicable, or (B) the ceasing by Seller to exercise commercially
reasonable efforts to cure such breach or inaccuracy; or

     

    (e)          by
Seller in the event (i) of a breach of any covenant or agreement on the part of
Buyer set forth in this Agreement or (ii) that any of the representations and
warranties of Buyer set forth in this Agreement shall have been inaccurate when
made or shall have become inaccurate, in either case such that the conditions to
the Closing set forth in Section 9.3(a) or
Section 9.3(b)
would not be satisfied as of the time of such breach or as of the time such
representation and warranty became inaccurate; provided, however, that
notwithstanding the foregoing, in the event that such breach by Buyer or such
inaccuracies in the representations and warranties of Buyer are curable by Buyer
through the exercise of commercially reasonable efforts, then Seller shall not
be permitted to terminate this Agreement pursuant to this Section 10.1(d) until
the earlier to occur of (A) the expiration of a fifteen (15) calendar day period
after delivery of written notice from Seller to Buyer of such breach or
inaccuracy, as applicable or (B) Buyer ceasing to exercise commercially
reasonable efforts to cure such breach or inaccuracy; or

     

    10.2           Notice of Termination;
Effect of Termination. Any proper
termination of this Agreement pursuant to Section 10.1 shall be
effective immediately upon the delivery of written notice of the terminating
party to the other party or parties hereto, as applicable.  In the
event of the termination of this Agreement pursuant to Section 10.1, this
Agreement shall be of no further force or effect without liability of any party
or parties hereto, as applicable (or any stockholder, director, officer,
employee, agent, consultant or representative of such party or parties) to the
other party or parties hereto, as applicable, except (a) for the terms of Section 6.5,
this Section
10.2, Section
10.3 and Article XII,
each of which shall survive the termination of this Agreement and (b) that
nothing herein shall relieve any party or parties hereto, as applicable, from
liability for any willful breach of, or fraud in connection with, this
Agreement.  In addition to the foregoing, no termination of this
Agreement shall affect the obligations of the parties hereto set forth in the
Confidentiality Agreement, all of which obligations shall survive termination of
this Agreement in accordance with their terms.

    
      
         

      

      
        -60-

        
          

        

      

      
         

      

    

     

    10.3           Fees and Expenses.
All fees and expenses incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party or parties, as
applicable, incurring such expenses whether or not the Closing
occurs.

     

    10.4           Amendment. Subject to
applicable Laws and subject to the other provisions of this Agreement, this
Agreement may be amended by the parties hereto at any time by execution of an
instrument in writing signed on behalf of each of Buyer, Seller and
SYC.

     

    10.5           Extension; Waiver. At
any time and from time to time prior to the Effective Time, any party or parties
hereto may, to the extent legally allowed and except as otherwise set forth
herein, (a) extend the time for the performance of any of the obligations or
other acts of the other party or parties hereto, as applicable, (b) waive any
inaccuracies in the representations and warranties made to such party or parties
hereto contained herein or in any document delivered pursuant hereto and
(c) waive compliance with any of the agreements or conditions for the
benefit of such party or parties hereto contained herein.  Any
agreement on the part of a party or parties hereto to any such extension or
waiver shall be valid only if set forth in an instrument in writing signed on
behalf of such party or parties, as applicable.  Any delay in
exercising any right under this Agreement shall not constitute a waiver of such
right.

     

    ARTICLE XI

    INDEMNIFICATION

     

    11.1           Indemnification by
Seller. From and after the Closing Date, Seller shall indemnify and hold
harmless Buyer and its Subsidiaries and their respective Affiliates, Associates,
directors, officers, employees, agents and representatives, and each of the
heirs, executors, successors and assigns of any of the foregoing (the “Buyer Indemnified
Parties”) from and against any and all Losses suffered, incurred or
sustained by the Indemnified Parties (or any of them) relating to, arising out
of or in connection with (i) any of the Excluded Liabilities and the
ownership and operation of all businesses and operations of Seller, SYC and
their respective Subsidiaries other than the Business from and after the
Closing, (ii) any breach of or inaccuracy in the representations and warranties
of Seller and/or SYC, (iii) any breach of the covenants or other agreements of
Seller and/or SYC under this Agreement and (iv) any failure by Buyer and its
Subsidiaries to comply with all Laws relating to bulk transfers that are
applicable to the sale of the Transferred Assets.  The Escrow Fund
shall be available as partial security to compensate the Buyer Indemnified
Parties for the indemnification obligations of Buyer under this Section
11.1.

     

    11.2            Indemnification by
Buyer. From and after the Closing, Buyer shall indemnify and hold
harmless Seller, SYC and their respective Subsidiaries (including SYC) and their
respective Affiliates, Associates, directors, officers, employees, agents and
representatives, and each of the heirs, executors, successors and assigns of any
of the foregoing (the “Seller Indemnified
Parties” and collectively with the Buyer Indemnified Parties, the “Indemnified Parties”)
from and against any and all Losses suffered, incurred or sustained by the
Seller Indemnified Parties (or any of them) relating to, arising out of or in
connection with (a) any breach of the covenants or other agreements of Buyer and
any of the Buying Entities under this Agreement, or (b) any Assumed
Liabilities.

    
      
         

      

      
        -61-

        
          

        

      

      
         

      

    

     

    11.3           Right to Indemnification;
Cap; Basket. 

     

    (a)          
The right to obtain indemnification pursuant to this Article XI,
subject to the limitations set forth herein, shall be the Buyer’s and/or
Seller’s (as the case may be) sole and exclusive remedy for any breach by
Seller, SYC or Buyer (as the case may be) of the terms of this Agreement, or any
other claim or matter arising out of or relating to the subject matter of this
Agreement, except for claims arising from an intentional and willful breach of
this Agreement by Seller or SYC, or a breach by Seller or SYC based on fraud or
gross negligence; provided,
however, that, if the Closing does not occur, the Indemnified Parties
shall have no right to indemnification pursuant to the provisions of this Article XI or
otherwise for the breach by Seller, SYC or Buyer of the terms of this Agreement
for other than an intentional and willful breach of this Agreement, or a breach
based on fraud or gross negligence.  Except for (i) claims arising
from an intentional and willful breach of this Agreement, (ii) a breach based on
fraud or gross negligence or (iii) claims arising under clauses (i), (iii) or
(iv) of Section
11.1, in no event shall Seller, SYC or Buyer (as the case may be) be
obligated or liable to indemnify the Indemnified Parties in an aggregate amount
in excess of the Cash Portion.

     

    (b)          No
Buyer Indemnified Party shall be entitled to receive indemnification pursuant to
Section
11.1(ii) (other than intentional and willful breach of this Agreement, or
a breach based on fraud or gross negligence) unless and until the Losses for
which the Indemnified Parties are entitled to indemnification pursuant to this
Agreement (other than intentional and willful breach of this Agreement, or a
breach based on fraud) exceed one hundred thousand dollars ($100,000) in the
aggregate (the "Indemnity Basket"),
in which case the Indemnified Parties shall be entitled to recover the full
amount of such Losses.  The parties agree that there shall not be any
multiple recovery for any Losses pursuant to the indemnification provisions of
this Article XI or
otherwise.

     

    (c)          The
procedure for making a claim for indemnification pursuant to this Article XI shall
be as set forth in the Escrow Agreement.

     

    (d)          Unless
otherwise required by applicable law or GAAP, the parties agree that the payment
of any Losses will be treated as an adjustment to the Purchase Price for all Tax
purposes.

     

    11.4           Third-Party Claims.
If a claim by a third party for which a request for indemnification may be made
is made against an Indemnified Party, Buyer or Seller (as the case may be) shall
promptly notify the other party of such claim (and provide such other party with
copies of all relevant documents, including copies of any summons, complaint or
other pleading) and Seller shall be entitled at its expense to participate in,
but not to determine or conduct the defense of such claim.  Buyer
shall have the right in its sole discretion to conduct the defense of and to
settle any such claim; provided, however, that if Seller has not consented to
such settlement, such settlement shall not in and of itself be determinative of
whether or not the claim was an indemnifiable claim pursuant to this Article XI.

    
      
         

      

      
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    11.5           Insurance. In
furtherance and not in limitation of Section 11.1,
from and after the Closing Date, with respect to any Legal Proceeding relating
to the operations of the Business prior to the Closing for which Seller has
conducted and controlled the settlement or defense (“Potentially Insured
Claims”), and for which insurance policies with insurance providers
unaffiliated with Seller or its Affiliates (“Third Party
Insurance”) is potentially available, Buyer shall have access to such
Third Party Insurance and Seller or its Affiliates shall promptly pay to Buyer
any proceeds received by Sellers or its Affiliates from such insurance providers
from Third Party Insurance with respect to such Potentially Insured
Claim.  Seller shall conduct and control the settlement or defense of
any Potentially Insured Claim in reasonable consultation with Buyer and shall
take such reasonable actions requested by Buyer to facilitate Buyer’s access to
Third Party Insurance, and Buyer shall pay the costs of such settlement or
defense.

     

    ARTICLE XII

    GENERAL
PROVISIONS

     

    12.1           Survival of Representations
and Warranties.
The representations and warranties of Buyer set forth in this Agreement
and in any certificate delivered pursuant to this Agreement shall not survive
the Effective Time.  The representations and warranties of Seller set
forth in this Agreement and in any certificate delivered pursuant to this
Agreement shall survive until the 12-month anniversary of the Closing Date;
provided, however, that the
representations and warranties of Seller contained in: Section 3.2 shall survive
indefinitely;  Section 3.17 and Section 3.18 shall survive for three
(3) years from the Closing Date; and Section 3.12 and Section 3.16 shall survive
until the expiration of the applicable statute of limitations.

     

    12.2           Notices. All notices
and other communications hereunder shall be in writing and shall be deemed given
if delivered personally or by commercial delivery service, or sent via telecopy
(receipt confirmed) to the parties at the following addresses or telecopy
numbers (or at such other address or telecopy numbers for a party as shall be
specified by like notice):

     

    (a)          if
to Buyer, to:

    

     Coherent,
Inc.

     5100
Patrick Henry Drive

     Santa
Clara, California 94054

     Attention:
General Counsel

     Facsimile:  (408)
764-4928

    

     with
a copy (which shall not constitute notice) to:

    
      
         

      

      
        -63-

        
          

        

      

      
         

      

    

     Wilson
Sonsini Goodrich & Rosati

     Professional
Corporation

     650
Page Mill Road

     Palo
Alto, California 94304-1050

     Attention:  David
Segre

     Telecopy
No.:  (650) 493-6811

    

     and
to:

    

     Wilson
Sonsini Goodrich & Rosati

     Professional
Corporation

     One
Market Street

     Spear
Tower, Suite 3300

     San
Francisco, California 94105-1126

     Attention:  Michael
Ringler

     Telecopy
No.:  (415) 947-2099.

     

    (b)          if
to Seller, to:

    

     StockerYale,
Inc.

     32
Hampshire Road

     Salem,
New Hampshire 03079

     Attention:  Chief
Executive Officer

     Facsimile:  (603)
898-8851

    

     with
a copy (which shall not constitute notice) to:

    

     BRL
Law Group LLC

     31
St. James Avenue, Suite 850

     Boston,
Massachusetts 02116

     Attention:
Thomas B. Rosedale

     Telecopy
No.:  (617) 399-6930.

     

    12.3           Assignment. No party
may assign either this Agreement or any of its rights, interests, or obligations
hereunder without the prior written approval of the other party; provided, however, that Buyer
may assign or delegation of its rights, obligations or liabilities under this
Agreement in whole or in part to one or more of its Subsidiaries of Buyer
without the consent of Seller if and so long as Buyer shall remain fully liable
for the performance of such obligations.  Subject to the preceding
sentence, this Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and permitted
assigns.

     

    12.4           Entire Agreement.
This Agreement and the agreements, documents, instruments and certificates among
the parties hereto as contemplated by or referred to herein, including the
Seller Disclosure Schedule, and the Exhibits and Schedules hereto, constitute
the entire agreement among the parties with respect to the subject matter hereof
and supersede all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof; provided, however, the
Confidentiality Agreement shall not be superseded, shall survive any termination
of this Agreement and shall continue in full force and effect.

    
      
         

      

      
        -64-

        
          

        

      

      
         

      

    

     

    12.5           Third Party
Beneficiaries. This Agreement is not intended to, and shall not, confer
upon any other Person any rights or remedies hereunder.

     

    12.6           Severability. In the
event that any provision of this Agreement, or the application thereof, becomes
or is declared by a court of competent jurisdiction to be illegal, void or
unenforceable, the remainder of this Agreement will continue in full force and
effect and the application of such provision to other persons or circumstances
will be interpreted so as reasonably to effect the intent of the parties
hereto.  The parties further agree to replace such void or
unenforceable provision of this Agreement with a valid and enforceable provision
that will achieve, to the extent possible, the economic, business and other
purposes of such void or unenforceable provision.

     

    12.7           Other Remedies.
Except as otherwise provided herein, any and all remedies herein expressly
conferred upon a party will be deemed cumulative with and not exclusive of any
other remedy conferred hereby, or by law or equity upon such party, and the
exercise by a party of any one remedy will not preclude the exercise of any
other remedy.

     

    12.8           Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware, regardless of the laws that might otherwise govern under
applicable principles of conflicts of law thereof.

     

    12.9           Specific Performance.
The parties hereto agree that irreparable damage would occur in the event that
any of the provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached.  It is accordingly
agreed that, in addition to any other remedy to which they are entitled at law
or in equity, the parties hereto shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions hereof in any court of the United States or any state
having jurisdiction.

     

    12.10         Consent to
Jurisdiction. Each of the parties hereto irrevocably consents to the
exclusive jurisdiction and venue of any state or federal court located within
New Castle County, State of Delaware in connection with any matter based upon or
arising out of this Agreement or the transactions contemplated hereby, agrees
that process may be served upon them in any manner authorized by the laws of the
State of Delaware for such persons and waives and covenants not to assert or
plead any objection which they might otherwise have to such jurisdiction, venue
and process.  Each party hereto hereby agrees not to commence any
legal proceedings relating to or arising out of this Agreement or the
transactions contemplated hereby in any jurisdiction or courts other than as
provided herein.

    
      
         

      

      
        -65-

        
          

        

      

      
         

      

    

     

    12.11        WAIVER OF JURY TRIAL.
EACH OF BUYER, SELLER AND SYC HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF
BUYER, SELLER AND SYC IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND
ENFORCEMENT HEREOF.

     

    12.12        Counterparts. This
Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the
other party, it being understood that all parties need not sign the same
counterpart.

     

    [Remainder of Page Intentionally Left
Blank]

    
      
         

      

      
        -66-

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be executed by
their respective duly authorized officers to be effective as of the date first
above written.

     

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      COHERENT, INC.

                                    
	 
      	 
      
	
                                      By:

                                    	
                                      /s/
      John Ambroseo

                                    
	
                                      Name:

                                    	
                                      John
      Ambroseo

                                    
	
                                      Title:

                                    	
                                      CEO

                                    
	 
      	 
      
	
                                      STOCKERYALE,
      INC.

                                    
	 
      	 
      
	
                                      By:

                                    	
                                      /s/
      Mark Blodgett

                                    
	
                                      Name:

                                    	
                                      Mark
      Blodgett

                                    
	
                                      Title:

                                    	
                                      Chief
      Executive Officer

                                    
	 
      	 
      
	
                                      STOCKERYALE
      CANADA, INC.

                                    
	 
      	 
      
	
                                      By:

                                    	
                                      /s/
      Mark Blodgett

                                    
	
                                      Name:

                                    	
                                      Mark
      Blodgett

                                    
	
                                      Title:

                                    	
                                      Chief
      Executive
Officer

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    SIGNATURE
PAGE - PURCHASE AND SALE AGREEMENTUnassociated Document

    EXHIBIT
4.4

     

    GENERAL
STEEL HOLDINGS, INC.

     

    INDENTURE

     

    Dated as
of

     

                ,
20    

     

    DEBT
SECURITIES

    
      
        

      

    

    
       

      Trustee

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        CROSS
REFERENCE SHEET* 

         

        Between

         

        Provisions
of Trust Indenture Act (as defined herein) and Indenture, dated as of
[                ],
between GENERAL STEEL HOLDINGS, INC. and
[                      ],
as Trustee: 

         

        
          
            	
                    SECTION OF
      THE ACT 

                  	 
      	
                    SECTION OF
      INDENTURE 

                  	 
      
	
                    310(a)(1) and
      (2) 

                  	 
      	
                    11.04
      

                  	 
      
	
                    310(a)(3) and
      (4) 

                  	 
      	
                    Inapplicable
      

                  	 
      
	
                    310(b)
      

                  	 
      	
                    11.01,
      11.04 and 11.05 

                  	 
      
	
                    310(c)
      

                  	 
      	
                    Inapplicable
      

                  	 
      
	
                    311(a)
      

                  	 
      	
                    11.11
      

                  	 
      
	
                    311(b)
      

                  	 
      	
                    11.11
      

                  	 
      
	
                    311(c)
      

                  	 
      	
                    Inapplicable
      

                  	 
      
	
                    312(a)
      

                  	 
      	
                    10.02,
      10,03 and 14.02 

                  	 
      
	
                    312(b)
      

                  	 
      	
                    10.02
      and 11.10 

                  	 
      
	
                    312(c)
      

                  	 
      	
                    10.02
      and 11.10 

                  	 
      
	
                    313(a)
      

                  	 
      	
                    10.01
      

                  	 
      
	
                    313(b)(1)
      

                  	 
      	
                    Inapplicable
      

                  	 
      
	
                    313(b)(2)
      

                  	 
      	
                    10.01
      

                  	 
      
	
                    313(c)
      

                  	 
      	
                    4.03,
      10.01, 11.03, 11.04 and 11.05 

                  	 
      
	
                    313(d)
      

                  	 
      	
                    10.01
      

                  	 
      
	
                    314(a)
      

                  	 
      	
                    6.05
      and 10.02 

                  	 
      
	
                    314(b)
      

                  	 
      	
                    Inapplicable
      

                  	 
      
	
                    314(c)(1) and
      (2) 

                  	 
      	
                    16.01
      

                  	 
      
	
                    314(c)(3)
      

                  	 
      	
                    Inapplicable
      

                  	 
      
	
                    314(d)
      

                  	 
      	
                    Inapplicable
      

                  	 
      
	
                    314(e)
      

                  	 
      	
                    16.01
      

                  	 
      
	
                    314(f)
      

                  	 
      	
                    Inapplicable
      

                  	 
      
	
                    315(a),
      (c) and (d) 

                  	 
      	
                    11.02
      

                  	 
      
	
                    315(b)
      

                  	 
      	
                    11.03
      

                  	 
      
	
                    315(e)
      

                  	 
      	
                    7.08
      and 11.05 

                  	 
      
	
                    316(a)(1)
      

                  	 
      	
                    7.06
      

                  	 
      
	
                    316(a)(2)
      

                  	 
      	
                    Not
      required 

                  	 
      
	
                    316(a) (last
      sentence) 

                  	 
      	
                    Article
      I Definition: “Outstanding” 

                  	 
      
	
                    316(b)
      

                  	 
      	
                    7.07
      

                  	 
      
	
                    316(c)
      

                  	 
      	
                    14.02
      

                  	 
      
	
                    317(a)
      

                  	 
      	
                    7.02
      

                  	 
      
	
                    317(b)
      

                  	 
      	
                    6.02
      

                  	 
      
	
                    318(a)
      

                  	 
      	
                    16.02
      

                  	 
      

          

        

         

        
          
            

          
*This
Cross Reference Sheet is not part of the Indenture. 

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        TABLE
OF CONTENTS 

         

        
          
            	 
      	 
      	 
      	
                    PAGE
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      I DEFINITIONS 

                  	 
      	
                    1
      

                  
	 
      	 
      	 
      
	
                    ARTICLE
      II FORMS OF SECURITIES 

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 2.01  TERMS
      OF THE SECURITIES 

                  	 
      	
                    8
      

                  
	 
      	
                    SECTION 2.02  FORM
      OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

                  	 
      	
                    9
      

                  
	 
      	
                    SECTION 2.03  FORM
      OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION BY AN AUTHENTICATING AGENT
      

                  	
                    F
      

                  	
                    9
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      III THE DEBT SECURITIES 

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    SECTION 3.01  AMOUNT;
      ISSUABLE IN SERIES 

                  	 
      	
                    10
      

                  
	 
      	
                    SECTION 3.02  DENOMINATIONS
      

                  	 
      	
                    12
      

                  
	 
      	
                    SECTION 3.03  EXECUTION,
      AUTHENTICATION, DELIVERY AND DATING 

                  	 
      	
                    12
      

                  
	 
      	
                    SECTION 3.04  TEMPORARY
      SECURITIES 

                  	 
      	
                    13
      

                  
	 
      	
                    SECTION 3.04  REGISTRAR
      

                  	 
      	
                    13
      

                  
	 
      	
                    SECTION 3.06  TRANSFER
      AND EXCHANGE 

                  	 
      	
                    14
      

                  
	 
      	
                    SECTION 3.07  MUTILATED,
      DESTROYED, LOST AND STOLEN SECURITIES 

                  	 
      	
                    16
      

                  
	 
      	
                    SECTION 3.08  PAYMENT
      OF INTEREST; INTEREST RIGHTS PRESERVED 

                  	 
      	
                    17
      

                  
	 
      	
                    SECTION 3.09  CANCELLATION
      

                  	 
      	
                    18
      

                  
	 
      	
                    SECTION
      3.10  COMPUTATION OF INTEREST 

                  	 
      	
                    18
      

                  
	 
      	
                    SECTION
      3.11  CURRENCY OF PAYMENTS IN RESPECT OF SECURITIES
    

                  	 
      	
                    18
      

                  
	 
      	
                    SECTION
      3.12  JUDGMENTS 

                  	 
      	
                    19
      

                  
	 
      	
                    SECTION
      3.13  CUSIP NUMBERS 

                  	 
      	
                    19
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      IV REDEMPTION OF SECURITIES 

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 4.01  APPLICABILITY
      OF RIGHT OF REDEMPTION 

                  	 
      	
                    19
      

                  
	 
      	
                    SECTION 4.02  SELECTION
      OF SECURITIES TO BE REDEEMED 

                  	 
      	
                    19
      

                  
	 
      	
                    SECTION 4.03  NOTICE
      OF REDEMPTION 

                  	 
      	
                    20
      

                  
	 
      	
                    SECTION 4.04  DEPOSIT
      OF REDEMPTION PRICE 

                  	 
      	
                    20
      

                  
	 
      	
                    SECTION 4.05  SECURITIES
      PAYABLE ON REDEMPTION DATE 

                  	 
      	
                    20
      

                  
	 
      	
                    SECTION 4.06  SECURITIES
      REDEEMED IN PART 

                  	 
      	
                    21
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      V SINKING FUNDS 

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 5.01  APPLICABILITY
      OF SINKING FUND 

                  	 
      	
                    21
      

                  
	 
      	
                    SECTION 5.02  MANDATORY
      SINKING FUND OBLIGATION 

                  	 
      	
                    21
      

                  
	 
      	
                    SECTION 5.03  OPTIONAL
      REDEMPTION AT SINKING FUND REDEMPTION PRICE 

                  	 
      	
                    21
      

                  
	 
      	
                    SECTION
      5.04  APPLICATION OF SINKING FUND PAYMENT 

                  	 
      	
                    22
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      VI PARTICULAR COVENANTS OF THE COMPANY 

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    SECTION 6.01  PAYMENTS
      OF SECURITIES 

                  	 
      	
                    23
      

                  
	 
      	
                    SECTION 6.02  PAYING
      AGENT 

                  	 
      	
                    23
      

                  
	 
      	
                    SECTION 6.03  TO
      HOLD PAYMENT IN TRUST 

                  	 
      	
                    23
      

                  
	 
      	
                    SECTION 6.04  MERGER,
      CONSOLIDATION AND SALE OF ASSETS 

                  	 
      	
                    24
      

                  
	 
      	
                    SECTION 6.05  COMPLIANCE
      CERTIFICATE 

                  	 
      	
                    25
      

                  
	 
      	
                    SECTION 6.06  CONDITIONAL
      WAIVER BY HOLDERS OF SECURITIES 

                  	 
      	
                    25
      

                  
	 
      	
                    SECTION 6.07  STATEMENT
      BY OFFICERS AS TO DEFAULT 

                  	 
      	
                    25
      

                  

             

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

             

            	 
      	 
      	 
      	 
      
	
                    ARTICLE
      VII REMEDIES OF TRUSTEE AND SECURITYHOLDERS 

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 7.01  EVENTS
      OF DEFAULT 

                  	 
      	
                    25
      

                  
	 
      	
                    SECTION 7.02  ACCELERATION;
      RESCISSION AND ANNULMENT 

                  	 
      	
                    27
      

                  
	 
      	
                    SECTION 7.03  OTHER
      REMEDIES 

                  	 
      	
                    28
      

                  
	 
      	
                    SECTION 7.04  TRUSTEE
      AS ATTORNEY-IN-FACT 

                  	 
      	
                    28
      

                  
	 
      	
                    SECTION 7.05  PRIORITIES
      

                  	 
      	
                    29
      

                  
	 
      	
                    SECTION 7.06  CONTROL
      BY SECURITYHOLDERS; WAIVER OF PAST DEFAULTS 

                  	 
      	
                    29
      

                  
	 
      	
                    SECTION 7.07  LIMITATION
      ON SUITS 

                  	 
      	
                    29
      

                  
	 
      	
                    SECTION 7.08  UNDERTAKING
      FOR COSTS 

                  	 
      	
                    30
      

                  
	 
      	
                    SECTION 7.09  REMEDIES
      CUMULATIVE 

                  	 
      	
                    30
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      VIII CONCERNING THE SECURITYHOLDERS 

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 8.01  EVIDENCE
      OF ACTION TAKEN BY SECURITYHOLDERS 

                  	 
      	
                    30
      

                  
	 
      	
                    SECTION 8.02  PROOF
      OF EXECUTION OR HOLDING OF SECURITIES 

                  	 
      	
                    31
      

                  
	 
      	
                    SECTION 8.03  PERSONS
      DEEMED OWNERS 

                  	 
      	
                    31
      

                  
	 
      	
                    SECTION 8.04  EFFECT
      OF CONSENTS 

                  	 
      	
                    31
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      IX SECURITYHOLDERS MEETINGS 

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 9.01  PURPOSE
      OF MEETINGS 

                  	 
      	
                    32
      

                  
	 
      	
                    SECTION 9.02  CALL
      OF MEETINGS BY TRUSTEE 

                  	 
      	
                    32
      

                  
	 
      	
                    SECTION 9.03  CALL
      OF MEETINGS BY COMPANY OR SECURITYHOLDERS 

                  	 
      	
                    32
      

                  
	 
      	
                    SECTION
      9.04  QUALIFICATIONS FOR VOTING 

                  	 
      	
                    32
      

                  
	 
      	
                    SECTION 9.05  REGULATION
      OF MEETINGS 

                  	 
      	
                    32
      

                  
	 
      	
                    SECTION
      9.06  VOTING 

                  	 
      	
                    33
      

                  
	 
      	
                    SECTION
      9.07  NO DELAY OF RIGHTS BY MEETING 

                  	 
      	
                    33
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      X REPORTS BY THE COMPANY AND THE TRUSTEE AND SECURITYHOLDERS’ LISTS
      

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 10.01  REPORTS
      BY TRUSTEE 

                  	 
      	
                    33
      

                  
	 
      	
                    SECTION 10.02  REPORTS
      BY COMPANY 

                  	 
      	
                    34
      

                  
	 
      	
                    SECTION 10.03  SECURITYHOLDERS’
      LISTS 

                  	 
      	
                    34
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      XI CONCERNING THE TRUSTEE 

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 11.01  RIGHTS
      OF TRUSTEES; COMPENSATION AND INDEMNITY 

                  	 
      	
                    34
      

                  
	 
      	
                    SECTION 11.02  DUTIES
      OF TRUSTEE 

                  	 
      	
                    36
      

                  
	 
      	
                    SECTION 11.03  NOTICE
      OF DEFAULTS 

                  	 
      	
                    37
      

                  
	 
      	
                    SECTION 11.04  ELIGIBILITY;
      DISQUALIFICATION 

                  	 
      	
                    37
      

                  
	 
      	
                    SECTION 11.05  REGISTRATION
      AND NOTICE; REMOVAL 

                  	 
      	
                    37
      

                  
	 
      	
                    SECTION 11.06  SUCCESSOR
      TRUSTEE BY APPOINTMENT 

                  	 
      	
                    38
      

                  
	 
      	
                    SECTION
      11.07  SUCCESSOR TRUSTEE BY MERGER 

                  	 
      	
                    39
      

                  
	 
      	
                    SECTION
      11.08  RIGHT TO RELY ON OFFICER’S CERTIFICATE 

                  	 
      	
                    39
      

                  
	 
      	
                    SECTION
      11.09  APPOINTMENT OF AUTHENTICATING AGENT 

                  	 
      	
                    40
      

                  
	 
      	
                    SECTION
      11.10  COMMUNICATIONS BY SECURITYHOLDERS WITH OTHER
      SECURITYHOLDERS 

                  	 
      	
                    40
      

                  
	 
      	
                    SECTION
      11.11  PREFERENTIAL COLLECTION OF CLAIMS
      AGAINST COMPANY 

                  	 
      	
                    40
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      XII SATISFACTION AND DISCHARGE; DEFEASANCE 

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 12.01  APPLICABILITY
      OF ARTICLE 

                  	 
      	
                    40
      

                  
	 
      	
                    SECTION 12.02  SATISFACTION
      AND DISCHARGE INDENTURE 

                  	 
      	
                    41
      

                  
	 
      	
                    SECTION 12.03  DEFEASANCE
      UPON DEPOSIT MONEYS OR U.S. GOVERNMENT OBLIGATIONS 

                  	 
      	
                    42
      

                  
	 
      	
                    SECTION 12.04  REPAYMENT
      TO COMPANY 

                  	 
      	
                    42
      

                  
	 
      	
                    SECTION 12.05  INDEMNITY
      FOR U.S. GOVERNMENT OBLIGATIONS 

                  	 
      	
                    42
      

                  
	 
      	
                    SECTION 12.06  APPLICATION
      OF TRUST MONEY 

                  	 
      	
                    42
      

                  
	 
      	
                    SECTION 12.07  DEPOSITS
      OF NON-U.S. CURRENCIES 

                  	 
      	
                    43
      

                  

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

            	 
      	 
      	 
      	 
      
	
                    ARTICLE
      XIII IMMUNITY OF CERTAIN PERSONS 

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	
                    SECTION 13.01  NO
      PERSONAL LIABILITY 

                  	 
      	
                    43
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      XIV SUPPLEMENTAL INDENTURES 

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    SECTION 14.01  WITHOUT
      CONSENT OF SECURITYHOLDERS 

                  	 
      	
                    43
      

                  
	 
      	
                    SECTION 14.02  WITH
      CONSENT OF SECURITYHOLDERS; LIMITATIONS 

                  	 
      	
                    45
      

                  
	 
      	
                    SECTION 14.03  TRUSTEE
      PROTECTED 

                  	 
      	
                    46
      

                  
	 
      	
                    SECTION 14.04  EFFECT
      OF EXECUTION OF SUPPLEMENTAL INDENTURE 

                  	 
      	
                    46
      

                  
	 
      	
                    SECTION
      14.05  NOTATION ON OR EXCHANGE OF SECURITIES 

                  	 
      	
                    46
      

                  
	 
      	
                    SECTION
      14.06  CONFORMITY WITH TIA 

                  	 
      	
                    46
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      XV SUBORDINATION OF SECURITIES 

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    SECTION
      15.01  AGREEMENT TO SUBORDINATE 

                  	 
      	
                    46
      

                  
	 
      	
                    SECTION
      15.02  DISTRIBUTION ON DISSOLUTION, LIQUIDATION AND
      REORGANIZATION, SUBROGATION OF SECURITIES 

                  	 
      	
                    47
      

                  
	 
      	
                    SECTION
      15.03  NO PAYMENT ON SECURITIES IN EVENT OF DEFAULT ON SENIOR
      INDEBTEDNESS 

                  	 
      	
                    48
      

                  
	 
      	
                    SECTION
      15.04  PAYMENTS ON SECURITIES PERMITTED 

                  	 
      	
                    48
      

                  
	 
      	
                    SECTION
      15.05  AUTHORIZATION OF SECURITYHOLDERS TO TRUSTEE TO EFFECT
      SUBORDINATION 

                  	 
      	
                    48
      

                  
	 
      	
                    SECTION
      15.06  NOTICES TO TRUSTEE 

                  	 
      	
                    48
      

                  
	 
      	
                    SECTION
      15.07  TRUSTEE AS HOLDER OF SENIOR INDEBTEDNESS 

                  	 
      	
                    49
      

                  
	 
      	
                    SECTION
      15.08  MODIFICATIONS OF TERMS OF SENIOR INDEBTEDNESS
      

                  	 
      	
                    49
      

                  
	 
      	
                    SECTION
      15.09  RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING
      AGENT 

                  	 
      	
                    49
      

                  
	 
      	
                    SECTION
      15.10  SATISFACTION AND DISCHARGE; DEFEASANCE AND COVENANT
      DEFEASANCE 

                  	 
      	
                    49
      

                  
	 
      	
                    SECTION
      15.11  TRUSTEE NOT FIDUCIARY FOR HOLDERS OF SENIOR INDEBTEDNESS
      

                  	 
      	
                    49
      

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      XVI MISCELLANEOUS PROVISIONS 

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    SECTION
      16.01  CERTIFICATES AND OPINIONS AS TO CONDITIONS PRECEDENT
      

                  	 
      	
                    50
      

                  
	 
      	
                    SECTION
      16.02  TRUST INDENTURE ACT CONTROLS 

                  	 
      	
                    51
      

                  
	 
      	
                    SECTION
      16.03  NOTICES TO THE COMPANY AND TRUSTEE 

                  	 
      	
                    51
      

                  
	 
      	
                    SECTION
      16.04  NOTICES TO SECURITYHOLDERS; WAIVER 

                  	 
      	
                    51
      

                  
	 
      	
                    SECTION
      16.05  LEGAL HOLIDAY 

                  	 
      	
                    51
      

                  
	 
      	
                    SECTION
      16.06  EFFECTS OF HEADINGS AND TABLE OF CONTENTS

                  	 
      	
                    51
      

                  
	 
      	
                    SECTION
      16.07  SUCCESSORS AND ASSIGNS 

                  	 
      	
                    51
      

                  
	 
      	
                    SECTION
      16.08  SEPARABILITY CLAUSE 

                  	 
      	
                    51
      

                  
	 
      	
                    SECTION
      16.09  BENEFITS OF INDENTURE 

                  	 
      	
                    52
      

                  
	 
      	
                    SECTION
      16.10  COUNTERPARTS ORIGINALS 

                  	 
      	
                    52
      

                  
	 
      	
                    SECTION
      16.11  GOVERNING LAW 

                  	 
      	
                    52
      

                  

          

        

        

         

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    INDENTURE
dated as of             ,
20    ,
among General Steel Holdings, Inc., a Nevada corporation (the “Company”),
and                     ,
as trustee (the “Trustee”).

     

    WITNESSETH:

     

    WHEREAS,
the Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance of debentures, notes, bonds or other evidences of
indebtedness (the “Securities”)
in an aggregate principal amount of up to                     
to be issued from time to time in one or more series as provided in this
Indenture; and

     

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

     

    NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

     

    That, in
consideration of the premises and the purchase of the Securities by the Holders
thereof for the equal and proportionate benefit of all of the present and future
Holders of the Securities, each party agrees and covenants as
follows:

     

    ARTICLE
I

     

    DEFINITIONS

     

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

     

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

     

    (b) all
terms used herein without definition which are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings assigned to them
therein; and

     

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

     

    (d)
References to “Article” or “Section” or other subdivision herein are references
to an Article, Section or other subdivision of the Indenture, unless the context
otherwise requires.

     

    Section 1.01
Definitions.

     

    (a)
Unless otherwise defined in this Indenture or the context otherwise requires,
all terms used herein shall have the meanings assigned to them in the Trust
Indenture Act.

     

    (b)
Unless the context otherwise requires, the terms defined in this
Section 1.01(b) shall for all purposes of this Indenture have the meanings
hereinafter set forth, the following definitions to be equally applicable to
both the singular and the plural forms of any of the terms herein
defined:

     

    Affiliate:

     

    The term
“Affiliate,” with respect to any specified Person shall mean any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person.  For
the purposes of this definition, “control” when used with respect to any
specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

     

    
      
        
        

      

      
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    Authenticating
Agent:

     

    The term
“Authenticating Agent” shall have the meaning assigned to it in
Section 11.09.

     

    Board
of Directors:

     

    The term
“Board of Directors” shall mean either the board of directors of the Company or
the executive or any other committee of that board duly authorized to act in
respect hereof.

     

    Board
Resolution:

     

    The term
“Board Resolution” shall mean a copy of a resolution or resolutions certified by
the Secretary or an Assistant Secretary of the Company to have been duly adopted
by the Board of Directors (or by a committee of the Board of Directors to the
extent that any such other committee has been authorized by the Board of
Directors to establish or approve the matters contemplated) and to be in full
force and effect on the date of such certification and delivered to the
Trustee.

     

    Business
Day:

     

    The term
“Business Day,” when used with respect to any Place of Payment or any other
particular location referred to in this Indenture or in the Securities, shall
mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which banking institutions in that Place of Payment or other location are
authorized or obligated by law or executive order to close.

     

    Capital
Stock:

     

    The term
“Capital Stock” shall mean:

     

    (a) in
the case of a corporation, corporate stock;

     

    (b) in
the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;

     

    (c) in
the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

     

    (d) any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person, but excluding from all of the foregoing any debt securities convertible
into Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.

     

    Code:

     

    The term
“Code” shall mean the Internal Revenue Code of 1986 as in effect on the date
hereof.

    

    Company:

     

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

     

    Company
Order:

     

    The term
“Company Order” shall mean a written order signed in the name of the Company by
the Chairman, Chief Executive Officer, President, Chief Financial Officer, any
Vice President, Treasurer, any Assistant Treasurer, Controller, Assistant
Controller, Secretary or any Assistant Secretary of the Company, and delivered
to the Trustee.

     

    Corporate
Trust Office:

     

    The term
“Corporate Trust Office,” or other similar term, shall mean the principal office
of the Trustee at which at any particular time its corporate trust business
shall be administered, which office at the date hereof is located at                     ,
or such other address as the Trustee may designate from time to time by notice
to the Holders and the Company, or the principal corporate trust officer of any
successor Trustee (or such other address as such successor Trustee may designate
from time to time by notice to the Holders and the Company).

     

    
      
        
        

      

      
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    Currency:

     

    The term
“Currency” shall mean U.S. Dollars or Foreign Currency.

     

    Default:

     

    The term
“Default” shall have the meaning assigned to it in
Section 11.03.

     

    Defaulted
Interest:

     

    The term
“Defaulted Interest” shall have the same meaning assigned to it in
Section 3.08(b).

     

    Depositary:

     

    The term
“Depositary” shall mean, with respect to the Securities of any series issuable
in whole or in part in the form of one or more Global Securities, the Person
designated as Depositary by the Company pursuant to Section 3.01 until a
successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Depositary” shall mean or include
each Person who is then a Depositary hereunder, and if at any time there is more
than one such Person, “Depositary” as used with respect to the Securities of any
such series shall mean the Depositary with respect to the Securities of that
series.

     

    Designated
Currency:

     

    The term
“Designated Currency” shall have the same meaning assigned to it in
Section 3.12.

     

    Discharged:

     

    The term
“Discharged” shall have the meaning assigned to it in
Section 12.03.

    

    Event
of Default:

     

    The term
“Event of Default” shall have the meaning specified in
Section 7.01.

     

    Exchange
Act:

     

    The term
“Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended.

     

    Exchange
Rate:

     

    The term
“Exchange Rate” shall have the meaning assigned to it in
Section 7.01.

     

    Floating
Rate Security:

     

    The term
“Floating Rate Security” shall mean a Security that provides for the payment of
interest at a variable rate determined periodically by reference to an interest
rate index specified pursuant to Section 3.01.

     

    Foreign
Currency:

     

    The term
“Foreign Currency” shall mean a currency issued by the government of any country
other than the United States or a composite currency, the value of which is
determined by reference to the values of the currencies of any group of
countries.

     

    
      
        
        

      

      
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    GAAP:

     

    The term
“GAAP,” with respect to any computation required or permitted hereunder, shall
mean generally accepted accounting principles in effect in the United States as
in effect from time to time, including, without limitation, those set forth in
the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as approved by a significant segment of the
accounting profession.

     

    Global
Security:

     

    The term
“Global Security” shall mean any Security that evidences all or part of a series
of Securities, issued in fully-registered certificated form to the Depositary
for such series in accordance with Section 3.03 and bearing the legend
prescribed in Section 3.03(g).

     

    Holder;
Holder of Securities:

     

    The terms
“Holder” and “Holder of Securities” are defined under “Security holder; Holder
of Securities; Holder.”

     

    Indebtedness:

     

    The term
“Indebtedness” shall mean any and all obligations of a Person for money borrowed
which, in accordance with GAAP, would be reflected on the balance sheet of such
Person as a liability on the date as of which Indebtedness is to be
determined.

     

    Indenture:

     

    The term
“Indenture” or “this Indenture” shall mean this instrument and all indentures
supplemental hereto.

     

    Interest:

     

    The term
“interest” shall mean, with respect to an Original Issue Discount Security that
by its terms bears interest only after Maturity, interest payable after
Maturity.

     

    Interest
Payment Date:

     

    The term
“Interest Payment Date” shall mean, with respect to any Security, the Stated
Maturity of an installment of interest on such Security.

     

    Mandatory
Sinking Fund Payment:

     

    The term
“Mandatory Sinking Fund Payment” shall have the meaning assigned to it in
Section 5.01.

     

    Maturity:

     

    The term
“Maturity,” with respect to any Security, shall mean the date on which the
principal of such Security shall become due and payable as therein and herein
provided, whether by declaration, call for redemption or otherwise.

     

    Members:

     

    The term
“Members” shall have the meaning assigned to it in
Section 3.03(i).

     

    Officer’s
Certificate:

     

    The term
“Officer’s Certificate” shall mean a certificate signed by any of the Chairman
of the Board of Directors, Chief Executive Officer, President, Chief Financial
Officer, any Vice President, Treasurer, any Assistant Treasurer, Controller,
Assistant Controller, Secretary or any Assistant Secretary of the Company and
delivered to the Trustee. Each such certificate shall include the statements
provided for in Section 16.01 if and to the extent required by the
provisions of such Section.

     

    
      
        
        

      

      
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    Opinion
of Counsel:

     

    The term
“Opinion of Counsel” shall mean an opinion in writing signed by legal counsel,
who may be an employee of or of counsel to the Company, or may be other counsel
that meets the requirements provided for in Section 16.01.

     

    Optional
Sinking Fund Payment:

     

    The term
“Optional Sinking Fund Payment” shall have the meaning assigned to it in
Section 5.01.

     

    Original
Issue Discount Security:

     

    The term
“Original Issue Discount Security” shall mean any Security that is issued with
“original issue discount” within the meaning of Section 1273(a) of the Code
and the regulations thereunder and any other Security designated by the Company
as issued with original issue discount for United States federal income tax
purposes.

    

    Outstanding:

     

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

     

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

     

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

     

    (c)
Securities that have been paid pursuant to Section 3.07(b) or in exchange
for or in lieu of which other Securities have been authenticated and delivered
pursuant to this Indenture, other than any such Securities in respect of which
there shall have been presented to a Responsible Officer of the Trustee proof
satisfactory to it that such Securities are held by a protected purchaser in
whose hands such Securities are valid obligations of the Company;

     

    provided,
however, that in determining whether the Holders of the requisite principal
amount of Securities of a series Outstanding have performed any action
hereunder, Securities owned by the Company or any other obligor upon the
Securities of such series or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
action, only Securities of such series that a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded. Securities so owned that
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right to act with
respect to such Securities and that the pledgee is not the Company or any other
obligor upon such Securities or any Affiliate of the Company or of such other
obligor. In determining whether the Holders of the requisite principal amount of
Outstanding Securities of a series have performed any action hereunder, the
principal amount of an Original Issue Discount Security that shall be deemed to
be Outstanding for such purpose 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 7.02 and the principal amount of a Security denominated in a
Foreign Currency that shall be deemed to be Outstanding for such purpose shall
be the amount calculated pursuant to Section 3.11(b).

     

    Paying
Agent:

     

    The term
“Paying Agent” shall have the meaning assigned to it in
Section 6.02(a).

     

    
      
        
        

      

      
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    Person:

     

    The term
“Person” shall mean an individual, a corporation, a limited liability company, a
partnership, an association, a joint stock company, a trust, an unincorporated
organization or a government or an agency or political subdivision
thereof.

     

    Place
of Payment:

     

    The term
“Place of Payment” shall mean, when used with respect to the Securities of any
series, the place or places where the principal of and premium, if any, and
interest on the Securities of that series are payable as specified pursuant to
Section 3.01.

    

    Predecessor
Security:

     

    The term
“Predecessor Security” shall mean, with respect to any Security, every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security, and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.07 in lieu of a lost, destroyed
or stolen Security shall be deemed to evidence the same debt as the lost,
destroyed or stolen Security.

     

    Record
Date:

     

    The term
“Record Date” shall mean, with respect to any interest payable on any Security
on any Interest Payment Date, the close of business on any date specified in
such Security for the payment of interest pursuant to
Section 3.01.

     

    Redemption
Date:

     

    The term
“Redemption Date” shall mean, when used with respect to any Security to be
redeemed, in whole or in part, the date fixed for such redemption by or pursuant
to this Indenture and the terms of such Security, which, in the case of a
Floating Rate Security, unless otherwise specified pursuant to
Section 3.01, shall be an Interest Payment Date only.

     

    Redemption
Price:

     

    The term
“Redemption Price,” when used with respect to any Security to be redeemed, in
whole or in part, shall mean the price at which it is to be redeemed pursuant to
the terms of the Security and this Indenture.

     

    Register:

     

    The term
“Register” shall have the meaning assigned to it in
Section 3.05(a).

     

    Registrar:

     

    The term
“Registrar” shall have the meaning assigned to it in
Section 3.05(a).

     

    Responsible
Officers:

     

    The term
“Responsible Officers” of the Trustee hereunder shall mean any Vice President,
any Assistant Vice President, any Trust Officer, any Assistant Trust Officer or
any other officer associated with the corporate trust department of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers, and also means, with respect to a particular corporate
trust matter, any other officer of the Trustee to whom such matter is referred
because of such person’s knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

     

    SEC:

     

    The term
“SEC” shall mean the U.S. Securities and Exchange Commission, as constituted
from time to time.

     

    
      
        
        

      

      
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    Securities
Act:

     

    The term
“Securities Act” shall mean the Securities Act of 1933, as amended.

     

    Security:

     

    The term
“Security” or “Securities” shall have the meaning stated in the recitals and
shall more particularly mean one or more of the Securities duly authenticated by
the Trustee and delivered pursuant to the provisions of this
Indenture.

     

    Security
Custodian:

     

    The term
“Security Custodian” shall mean the custodian with respect to any Global
Security appointed by the Depositary, or any successor Person thereto, and shall
initially be the Paying Agent.

     

    Securityholder;
Holder of Securities; Holder:

     

    The term
“Securityholder” or “Holder of Securities” or “Holder,” shall mean the Person in
whose name Securities shall be registered in the Register kept for that purpose
hereunder.

     

    Senior
Indebtedness:

     

    The term
“Senior Indebtedness” means the principal of (and premium, if any) and unpaid
interest on (x) Indebtedness of the Company, whether outstanding on the
date hereof or thereafter created, incurred, assumed or guaranteed, for money
borrowed other than (a) any Indebtedness of the Company which when
incurred, and without respect to any election under Section 1111(b) of the
Federal Bankruptcy Code, was without recourse to the Company, (b) any
Indebtedness of the Company to any of its Subsidiaries, (c) Indebtedness to
any employee of the Company, (d) any liability for taxes, (e) Trade
Payables and (f) any Indebtedness of the Company which is expressly
subordinate in right of payment to any other Indebtedness of the Company, and
(y) renewals, extensions, modifications and refundings of any such
Indebtedness. For purposes of the foregoing and the definition of “Senior
Indebtedness,” the phrase “subordinated in right of payment” means debt
subordination only and not lien subordination, and accordingly,
(i) unsecured indebtedness shall not be deemed to be subordinated in right
of payment to secured indebtedness merely by virtue of the fact that it is
unsecured, and (ii) junior liens, second liens and other contractual
arrangements that provide for priorities among Holders of the same or different
issues of indebtedness with respect to any collateral or the proceeds of
collateral shall not constitute subordination in right of payment. This
definition may be modified or superseded by a supplemental
indenture.

     

    Special
Record Date:

     

    The term
“Special Record Date” shall have the meaning assigned to it in
Section 3.08(b)(i).

     

    Stated
Maturity:

     

    The term
“Stated Maturity” when used with respect to any Security or any installment of
interest thereon, shall mean the date specified in such Security as the fixed
date on which the principal (or any portion thereof) of or premium, if any, on
such Security or such installment of interest is due and payable.

    

    Subsidiary:

     

    The term
“Subsidiary,” when used with respect to any Person, shall mean:

     

    (a) any
corporation, limited liability company, 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 and after giving
effect to any voting agreement or stockholders’ agreement that effectively
transfers voting power) to vote in the election of directors, managers or
trustees of the corporation, association or other business entity is at the time
owned or controlled, directly or indirectly, by that Person or one or more of
the other Subsidiaries of that Person (or a combination thereof);
and

     

    
      
        
        

      

      
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    (b) any
partnership (i) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (ii) the only
general partners of which are that Person or one or more Subsidiaries of that
Person (or any combination thereof).

     

    Successor
Company:

     

    The term
“Successor Company” shall have the meaning assigned to it in
Section 3.06(i).

     

    Trade
Payables:

     

    The term
“Trade Payables” means accounts payable or any other Indebtedness or monetary
obligations to trade creditors created or assumed by the Company or any
Subsidiary of the Company in the ordinary course of business (including
guarantees thereof or instruments evidencing such liabilities).

     

    Trust
Indenture Act; TIA:

     

    The term
“Trust Indenture Act” or “TIA” shall mean the Trust Indenture Act of 1939, as
amended.

     

    Trustee:

     

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

     

    U.S.
Dollars:

     

    The term
“U.S. Dollars” shall mean such currency of the United States as at the time of
payment shall be legal tender for the payment of public and private
debts.

     

    U.S.
Government Obligations:

     

    The term
“U.S. Government Obligations” shall mean (i) direct non-callable
obligations of, or guaranteed by, the United States or (ii) obligations of
a Person controlled or supervised by and acting as an agency or instrumentality
of the United States, in either case, for the payment of which guarantee or
obligation the full faith and credit of the United States is
pledged.

    

    United
States:

     

    The term
“United States” shall mean the United States of America (including the States
and the District of Columbia), its territories and its possessions and other
areas subject to its jurisdiction.

     

    ARTICLE
II

     

    FORMS OF
SECURITIES

     

    Section 2.01
Terms of the
Securities.

     

    (a) The
Securities of each series shall be substantially in the form set forth in a
Company Order or in one or more indentures supplemental hereto, and shall have
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture, and may have such letters, numbers
or other marks of identification or designation and such legends or endorsements
placed thereon as the Company may deem appropriate and as are not inconsistent
with the provisions of this Indenture, or as may be required to comply with any
law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any securities exchange on which any series of the Securities may
be listed or of any automated quotation system on which any such series may be
quoted, or to conform to usage, all as determined by the officers executing such
Securities as conclusively evidenced by their execution of such
Securities.

     

    
      
        
        

      

      
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    (b) The
terms and provisions of the Securities shall constitute, and are hereby
expressly made, a part of this Indenture, and, to the extent applicable, the
Company and the Trustee, by their execution and delivery of this Indenture
expressly agree to such terms and provisions and to be bound
thereby.

     

    Section 2.02
Form of Trustee’s
Certificate of Authentication.

     

    (a) Only
such of the Securities as shall bear thereon a certificate substantially in the
form of the Trustee’s certificate of authentication hereinafter recited,
executed by the Trustee by manual signature, shall be valid or become obligatory
for any purpose or entitle the Holder thereof to any right or benefit under this
Indenture.

     

    (b) Each
Security shall be dated the date of its authentication, except that any Global
Security shall be dated as of the date specified as contemplated in
Section 3.01.

     

    (c) The
form of the Trustee’s certificate of authentication to be borne by the
Securities shall be substantially as follows:

     

    TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Date of Authentication:

            	 
      	
              
                                     

              

            	 
      	 
      	 
      	 
      	 
      	
              , as Trustee

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
              By:

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
              Authorized
      Signatory

            	 
      	 
      

    

    

    Section 2.03
Form of Trustee’s
Certificate of Authentication by an Authenticating Agent.

    

    If at any
time there shall be an Authenticating Agent appointed with respect to any series
of Securities, then the Trustee’s Certificate of Authentication by such
Authenticating Agent to be borne by Securities of each such series shall be
substantially as follows:

     

    TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Date of Authentication:

            	 
      	
              
                                     

              

            	 
      	 
      	 
      	 
      	 
      	
              , as Trustee

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
              By:

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
              as
      Authenticating Agent

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
              By:

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
              Authorized
      Signatory

            	 
      	 
      

    

    

    
      
        
        

      

      
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    ARTICLE
III

     

    THE DEBT
SECURITIES

     

    Section 3.01
Amount; Issuable in
Series.

     

    The
aggregate principal amount of Securities that may be authenticated and delivered
under this Indenture is                     .
The Securities may be issued in one or more series. There shall be set forth in
a Company Order or 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
such series from the Securities of all other series, except to the extent that
additional Securities of an existing series are being issued);

     

    (b) any
limit upon the aggregate principal amount of the Securities of the series that
may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon transfer of, or in exchange for, or in lieu of,
other Securities of such series pursuant to Section 3.04, 3.06, 3.07, 4.06,
or 14.05);

     

    (c) the
dates on which or periods during which the Securities of the series may be
issued, and the dates on, or the range of dates within, which the principal of
and premium, if any, on the Securities of such series are or may be payable or
the method by which such date or dates shall be determined or
extended;

     

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

     

     (e)
if other than U.S. Dollars, the Currency in which Securities of the series shall
be denominated or in which payment of the principal of, premium, if any, or
interest on the Securities of the series shall be payable and any other terms
concerning such payment;

     

    (f) if
the amount of payment of principal of, premium, if any, or interest on the
Securities of the series may be determined with reference to an index, formula
or other method including, but not limited to, an index based on a Currency or
Currencies other than that in which the Securities are stated to be payable, the
manner in which such amounts shall be determined;

     

    (g) if
the principal of, premium, if any, or interest on Securities of the series are
to be payable, at the election of the Company or a Holder thereof, in a Currency
other than that in which the Securities are denominated or stated to be payable
without such election, the period or periods within which, and the terms and
conditions upon which, such election may be made and the time and the manner of
determining the exchange rate between the Currency in which the Securities are
denominated or payable without such election and the Currency in which the
Securities are to be paid if such election is made;

     

    (h) the
place or places, if any, in addition to or instead of the Corporate Trust Office
of the Trustee where the principal of, premium, if any, and interest on
Securities of the series shall be payable, and where Securities of any series
may be presented for registration of transfer, exchange or conversion, and the
place or places where notices and demands to or upon the Company in respect of
the Securities of such series may be made;

     

    
      
        
        

      

      
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    (i) the
price or prices at which, the period or periods within which or the date or
dates on which, and the terms and conditions upon which Securities of the series
may be redeemed, in whole or in part, at the option of the Company, if the
Company is to have that option;

     

    (j) the
obligation or right, if any, of the Company to redeem, purchase or repay
Securities of the series pursuant to any sinking fund, amortization or analogous
provisions or at the option of a Holder thereof and the price or prices at
which, the period or periods within which or the date or dates on which, the
Currency or Currencies in 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;

     

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

     

    (l) if
other than the principal amount thereof, the portion of the principal amount of
the Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 7.02;

     

    (m)
whether the Securities of the series are to be issued as Original Issue Discount
Securities and the amount of discount with which such Securities may be
issued;

     

    (n)
provisions, if any, for the defeasance of Securities of the series in whole or
in part and any addition or change in the provisions related to satisfaction and
discharge;

     

    (o)
whether the Securities of the series are to be issued in whole or in part in the
form of one or more Global Securities and, in such case, the Depositary for such
Global Security or Securities and the terms and conditions, if any, upon which
interests in such Global Security or Securities may be exchanged in whole or in
part for the individual Securities represented thereby;

     

     (p)
the date as of which any Global Security of the series shall be dated if other
than the original issuance of the first Security of the series to be
issued;

     

    (q) the
form of the Securities of the series;

     

    (r) if
the Securities of the series are to be convertible into or exchangeable for any
securities or property of any Person (including the Company), the terms and
conditions upon which such Securities will be so convertible or exchangeable,
and any additions or changes, if any, to permit or facilitate such conversion or
exchange;

     

    (s)
whether the Securities of such series are subject to subordination and the terms
of such subordination;

     

    (t) any
restriction or condition on the transferability of the Securities of such
series;

     

    (u) any
addition or change in the provisions related to compensation and reimbursement
of the Trustee which applies to Securities of such series;

     

    (v) any
addition or change in the provisions related to supplemental indentures set
forth in Sections 14.04 and 14.02 which applies to Securities of such
series;

     

    (w)
provisions, if any, granting special rights to Holders upon the occurrence of
specified events;

     

    (x) any
addition to or change in the Events of Default which applies to any Securities
of the series and any change in the right of the Trustee or the requisite
Holders of such Securities to declare the principal amount thereof due and
payable pursuant to Section 7.02 and any addition or change in the
provisions set forth in Article VII which applies to Securities of the
series;

     

    (y) any
addition to or change in the covenants set forth in Article VI which applies to
Securities of the series; and

     

    (z) any
other terms of the Securities of such series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 14.01).

     

    All
Securities of any one series shall be substantially identical, except as to
denomination and except as may otherwise be provided herein or set forth in a
Company Order or in one or more indentures supplemental hereto.

     

    
      
        
        

      

      
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    Section 3.02
Denominations.

     

     In
the absence of any specification pursuant to Section 3.01 with respect to
Securities of any series, the Securities of such series shall be issuable only
as Securities in denominations of any integral multiple of $1,000, and shall be
payable only in U.S. Dollars.

     

    Section 3.03
Execution,
Authentication, Delivery and Dating.

     

    (a) The
Securities shall be executed in the name and on behalf of the Company by the
manual or facsimile signature of its Chairman of the Board of Directors, Chief
Executive Officer, President, Chief Operating Officer, Chief Financial Officer,
one of its Vice Presidents or Treasurer. If the Person whose signature is on a
Security no longer holds that office at the time the Security is authenticated
and delivered, the Security shall nevertheless be valid.

     

     (b)
At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities and, if required pursuant to
Section 3.01, a supplemental indenture or Company Order setting forth the
terms of the Securities of a series. The Trustee shall thereupon authenticate
and deliver such Securities without any further action by the Company. The
Company Order shall specify the amount of Securities to be authenticated and the
date on which the original issue of Securities is to be
authenticated.

     

    (c) In
authenticating the first Securities of any series and accepting the additional
responsibilities under this Indenture in relation to such Securities the Trustee
shall receive, and (subject to Section 11.02) shall be fully protected in
relying upon an Officer’s Certificate and an Opinion of Counsel, each prepared
in accordance with Section 16.01 stating that the conditions precedent, if
any, provided for in the Indenture have been complied with.

     

    (d) The
Trustee shall have the right to decline to authenticate and deliver the
Securities under this Section 3.03 if the issue of the Securities pursuant
to this Indenture will affect the Trustee’s own rights, duties or immunities
under the Securities and this Indenture or otherwise in a manner which is not
reasonably acceptable to the Trustee.

     

    (e) Each
Security shall be dated the date of its authentication, except as otherwise
provided pursuant to Section 3.01 with respect to the Securities of such
series.

     

    (f)
Notwithstanding the provisions of Section 3.01 and of this
Section 3.03, if all of the Securities of any series are not to be
originally issued at the same time, then the documents required to be delivered
pursuant to this Section 3.03 must be delivered only once prior to the
authentication and delivery of the first Security of such series;

     

    (g) If
the Company shall establish pursuant to Section 3.01 that the Securities of
a series are to be issued in whole or in part in the form of one or more Global
Securities, then the Company shall execute and the Trustee shall authenticate
and deliver one or more Global Securities that (i) shall represent an
aggregate amount equal to the aggregate principal amount of the Outstanding
Securities of such series to be represented by such Global Securities,
(ii) shall be registered, if in registered form, in the name of the
Depositary for such Global Security or Securities or the nominee of such
Depositary, (iii) shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary’s instruction and (iv) shall bear a legend
substantially to the following effect:

     

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

     

    The
aggregate principal amount of each Global Security may from time to time be
increased or decreased by adjustments made on the records of the Security
Custodian, as provided in this Indenture.

     

    
      
        
        

      

      
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    (h) Each
Depositary designated pursuant to Section 3.01 for a Global Security in
registered form must, at the time of its designation and at all times while it
serves as such Depositary, be a clearing agency registered under the Exchange
Act and any other applicable statute or regulation.

     

    (i)
Members of, or participants in, the Depositary (“Members”) shall have no rights
under this Indenture with respect to any Global Security held on their behalf by
the Depositary or by the Security Custodian under such Global Security, and the
Depositary may be treated by the Company, the Trustee, the Paying Agent and the
Registrar and any of their agents as the absolute owner of such Global Security
for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee, the Paying Agent or the Registrar or any of
their agents from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary
and its Members, the operation of customary practices of the Depositary
governing the exercise of the rights of an owner of a beneficial interest in any
Global Security. The Holder of a Global Security may grant proxies and otherwise
authorize any Person, including Members and Persons that may hold interests
through Members, to take any action that a Holder is entitled to take under this
Indenture or the Securities.

     

    (j) No
Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security a certificate
of authentication substantially in one of the forms provided for herein duly
executed by the Trustee or by an Authenticating Agent by manual or facsimile
signature of an authorized signatory of the Trustee, and such certificate upon
any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture.

     

    Section 3.04
Temporary
Securities.

     

    (a)
Pending the preparation of definitive Securities of any series, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities that are printed, lithographed, typewritten, mimeographed
or otherwise reproduced, in any authorized denomination, substantially of the
tenor of the definitive Securities in lieu of which they are issued, in
registered form and with such appropriate insertions, omissions, substitutions
and other variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities. Any such temporary
Security may be in global form, representing all or a portion of the Outstanding
Securities of such series. Every such temporary Security shall be executed by
the Company and shall be authenticated and delivered by the Trustee upon the
same conditions and in substantially the same manner, and with the same effect,
as the definitive Security or Securities in lieu of which it is
issued.

     

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

     

    (c) Upon
any exchange of a portion of a temporary Global Security for a definitive Global
Security or for the individual Securities represented thereby pursuant to this
Section 3.04 or Section 3.06, the temporary Global Security shall be
endorsed by the Trustee to reflect the reduction of the principal amount
evidenced thereby, whereupon the principal amount of such temporary Global
Security shall be reduced for all purposes by the amount so exchanged and
endorsed.

     

    Section 3.05
Registrar.

     

    (a) The
Company will keep, at an office or agency to be maintained by it in a Place of
Payment where Securities may be presented for registration or presented and
surrendered for registration of transfer or of exchange, and where Securities of
any series that are convertible or exchangeable may be surrendered for
conversion or exchange, as applicable (the “Registrar”),
a security register for the registration and the registration of transfer or of
exchange of the Securities (the registers maintained in such office and in any
other office or agency of the Company in a Place of Payment being herein
sometimes collectively referred to as the “Register”),
as in this Indenture provided, which Register shall at all reasonable times be
open for inspection by the Trustee. Such Register shall be in written form or in
any other form capable of being converted into written form within a reasonable
time. The Company may have one or more co-Registrars; the term “Registrar”
includes any co-registrar.

     

    
      
        
        

      

      
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    (b) The
Company shall enter into an appropriate agency agreement with any Registrar or
co-Registrar not a party to this Indenture. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify
the Trustee of the name and address of each such agent. If the Company fails to
maintain a Registrar for any series, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 11.01.
The Company or any Affiliate thereof may act as Registrar, co-Registrar or
transfer agent.

     

    (c) The
Company hereby appoints the Trustee at its Corporate Trust Office as Registrar
in connection with the Securities and this Indenture, until such time as another
Person is appointed as such.

     

    Section 3.06
Transfer and
Exchange.

     

    (a)
Transfer.

     

    (i) Upon
surrender for registration of transfer of any Security of any series at the
Registrar the Company shall execute, and the Trustee or any Authenticating Agent
shall authenticate and deliver, in the name of the designated transferee, one or
more new Securities of the same series for like aggregate principal amount of
any authorized denomination or denominations. The transfer of any Security shall
not be valid as against the Company or the Trustee unless registered at the
Registrar at the request of the Holder, or at the request of his, her or its
attorney duly authorized in writing.

     

    (ii)
Notwithstanding any other provision of this Section, unless and until it is
exchanged in whole or in part for the individual Securities represented thereby,
a Global Security representing all or a portion of the Securities of a series
may not be transferred except as a whole by the Depositary for such series to a
nominee of such Depositary or by a nominee of such Depositary to such Depositary
or another nominee of such Depositary or by such Depositary or any such nominee
to a successor Depositary for such series or a nominee of such successor
Depositary.

     

    (b)
Exchange.

     

    (i) At
the option of the Holder, Securities of any series (other than a Global
Security, except as set forth below) may be exchanged for other Securities of
the same series for like aggregate principal amount of any authorized
denomination or denominations, upon surrender of the Securities to be exchanged
at the Registrar.

     (ii)
Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities that the
Holder making the exchange is entitled to receive.

     

    (c)
Exchange of Global Securities for Individual Securities. Except as provided
below, owners of beneficial interests in Global Securities will not be entitled
to receive individual Securities.

     

    (i) Individual Securities shall be
issued to all owners of beneficial interests in a Global Security in exchange
for such interests if: (A) at any time the Depositary for the Securities of
a series notifies the Company that it is unwilling or unable to continue as
Depositary for the Securities of such series or if at any time the Depositary
for the Securities of such series shall no longer be eligible under
Section 3.03(h) and, in each case, a successor Depositary is not appointed
by the Company within 90 days of such notice, or (B) the Company executes
and delivers to the Trustee and the Registrar an Officer’s Certificate stating
that such Global Security shall be so exchangeable. In connection with the exchange of an
entire Global Security for individual Securities pursuant to this subsection
(C), such Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of individual Securities of
such series, will authenticate and deliver to each beneficial owner identified
by the Depositary in exchange for its beneficial interest in such Global
Security, an equal aggregate principal amount of individual Securities of
authorized denominations.

     

    
      
        
        

      

      
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    (ii) The
owner of a beneficial interest in a Global Security will be entitled to receive
an individual Security in exchange for such interest if an Event of Default has
occurred and is continuing. Upon receipt by the Security Custodian and Registrar
of instructions from the Holder of a Global Security directing the Security
Custodian and Registrar to (x) issue one or more individual Securities in
the amounts specified to the owner of a beneficial interest in such Global
Security and (y) debit or cause to be debited an equivalent amount of
beneficial interest in such Global Security, subject to the rules and
regulations of the Depositary:

     

    (A) the
Security Custodian and Registrar shall notify the Company and the Trustee of
such instructions, identifying the owner and amount of such beneficial interest
in such Global Security;

     

    (B) the
Company shall promptly execute and the Trustee, upon receipt of a Company Order
for the authentication and delivery of individual Securities of such series,
shall authenticate and deliver to such beneficial owner individual Securities in
an equivalent amount to such beneficial interest in such Global Security;
and

     

    (C) the
Security Custodian and Registrar shall decrease such Global Security by such
amount in accordance with the foregoing. In the event that the individual
Securities are not issued to each such beneficial owner promptly after the
Registrar has received a request from the Holder of a Global Security to issue
such individual Securities, the Company expressly acknowledges, with respect to
the right of any Holder to pursue a remedy pursuant to Section 7.07 hereof,
the right of any beneficial Holder of Securities to pursue such remedy with
respect to the portion of the Global Security that represents such beneficial
Holder’s Securities as if such individual Securities had been
issued.

    

    (iii) If
specified by the Company pursuant to Section 3.01 with respect to a series
of Securities, the Depositary for such series of Securities may surrender a
Global Security for such series of Securities in exchange in whole or in part
for individual Securities of such series on such terms as are acceptable to the
Company and such Depositary. Thereupon, the Company shall execute, and the
Trustee shall authenticate and deliver, without service charge,

     

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

     

    (B) to
such Depositary a new Global Security in a denomination equal to the difference,
if any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of individual Securities delivered to Holders
thereof.

     

    (iv) In
any exchange provided for in clauses (i) through (iii), the Company will
execute and the Trustee will authenticate and deliver individual Securities in
registered form in authorized denominations.

     

    (v) Upon
the exchange in full of a Global Security for individual Securities, such Global
Security shall be canceled by the Trustee. Individual Securities issued in
exchange for a Global Security pursuant to this Section shall be registered in
such names and in such authorized denominations as the Depositary for such
Global Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall deliver
such Securities to the Persons in whose names such Securities are so
registered.

     

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

     

    
      
        
        

      

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

     

    (f) No
service charge will be made for any registration of transfer or exchange of
Securities. The Company may require payment of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than those
expressly provided in this Indenture to be made at the Company’s own expense or
without expense or charge to the Holders.

     

    (g) The
Company shall not be required to (i) register, transfer or exchange
Securities of any series during a period beginning at the opening of business 15
days before the day of the transmission of a notice of redemption of Securities
of such series selected for redemption under Section 4.03 and ending at the
close of business on the day of such transmission, or (ii) register,
transfer or exchange any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in
part.

     

    (h) Prior
to the due presentation for registration of transfer or exchange of any
Security, the Company, the Trustee, the Paying Agent, the Registrar, any
co-Registrar or any of their agents may

    deem and
treat the Person in whose name a Security is registered 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 all purposes whatsoever,
and none of the Company, the Trustee, the Paying Agent, the Registrar, any
co-Registrar or any of their agents shall be affected by any notice to the
contrary.

     

    (i) In
case a successor Company (“Successor
Company”) has executed an indenture supplemental hereto with the Trustee
pursuant to Article XIV, any of the Securities authenticated or delivered
pursuant to such transaction may, from time to time, at the request of the
Successor Company, be exchanged for other Securities executed in the name of the
Successor Company with such changes in phraseology and form as may be
appropriate, but otherwise identical to the Securities surrendered for such
exchange and of like principal amount; and the Trustee, upon Company Order of
the Successor Company, shall authenticate and deliver Securities as specified in
such order for the purpose of such exchange. If Securities shall at any time be
authenticated and delivered in any new name of a Successor Company pursuant to
this Section 3.06 in exchange or substitution for or upon registration of
transfer of any Securities, such Successor Company, at the option of the Holders
but without expense to them, shall provide for the exchange of all Securities at
the time Outstanding for Securities authenticated and delivered in such new
name.

     

    (j) Each
Holder of a Security agrees to indemnify the Company and the Trustee against any
liability that may result from the transfer, exchange or assignment of such
Holder’s Security in violation of any provision of this Indenture and/or
applicable United States federal or state securities laws.

     

    (k) The
Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or
under applicable law with respect to any transfer of any interest in any
Security other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and when
expressly required by the terms of, this Indenture, and to examine the same to
determine substantial compliance as to form with the express requirements
hereof.

     

    (l)
Neither the Trustee nor any agent of the Trustee shall have any responsibility
for any actions taken or not taken by the Depositary.

     

    Section 3.07
Mutilated, Destroyed,
Lost and Stolen Securities.

     

    (a) If
(i) any mutilated Security is surrendered to the Trustee at its Corporate
Trust Office or (ii) the Company and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Security, and there is
delivered to the Company and the Trustee security or indemnity bond satisfactory
to them to save each of them and any Paying Agent harmless, and neither the
Company nor the Trustee receives notice that such Security has been acquired by
a protected purchaser, then the Company shall execute and upon Company Order the
Trustee shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Security, a new Security of the same series
and of like tenor, form, terms and principal amount, bearing a number not
contemporaneously outstanding, that neither gain nor loss in interest shall
result from such exchange or substitution.

     

    
      
        
        

      

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

     

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

     

    (d) Every
new Security of any series issued pursuant to this Section shall constitute an
original additional contractual obligation of the Company, whether or not the
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series duly issued
hereunder.

     

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

     

    Section 3.08
Payment of Interest;
Interest Rights Preserved.

     

    (a)
Interest on any Security that is payable and is punctually paid or duly provided
for on any Interest Payment Date shall be paid to the Person in whose name such
Security (or one or more Predecessor Securities) is registered at the close of
business on the Record Date for such interest notwithstanding the cancellation
of such Security upon any transfer or exchange subsequent to the Record Date.
Payment of interest on Securities shall be made at the Corporate Trust Office
(except as otherwise specified pursuant to Section 3.01) or, at the option
of the Company, by check mailed to the address of the Person entitled thereto as
such address shall appear in the Register or, in accordance with arrangements
satisfactory to the Trustee, by wire transfer to an account designated by the
Holder.

     

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

     

    (i) The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names such Securities (or their respective Predecessor Securities) are
registered at the close of business on a special record date for the payment of
such Defaulted Interest (a “Special Record
Date”), which shall be fixed in the following manner. The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to be
paid on each such Security and the date of the proposed payment, and at the same
time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Trustee shall fix a Special Record Date for the
payment of such Defaulted Interest which shall be not more than 15 calendar days
and not less than 10 calendar days prior to the date of the proposed payment and
not less than 10 calendar days after the receipt by the Trustee of the notice of
the proposed payment. The Trustee shall promptly notify the Company of such
Special Record Date and, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first-class postage prepaid, to the Holders
of such Securities at their addresses as they appear in the Register, not less
than 10 calendar days prior to such
Special Record Date. Notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor having been mailed as aforesaid, such
Defaulted Interest shall be paid to the Persons in whose names such Securities
(or their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to
the following clause (ii).

     

    
      
        
        

      

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

     

    (c)
Subject to the provisions set forth herein relating to Record Dates, each
Security delivered pursuant to any provision of this Indenture in exchange or
substitution for, or upon registration of transfer of, any other Security shall
carry all the rights to interest accrued and unpaid, and to accrue, which were
carried by such other Security.

     

    Section 3.09
Cancellation.
Unless otherwise specified pursuant to Section 3.01 for Securities of any
series, all Securities surrendered for payment, redemption, registration of
transfer or exchange or credit against any sinking fund or otherwise shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
for cancellation and shall be promptly canceled by it and, if surrendered to the
Trustee, shall be promptly canceled by it. The Company may at any time deliver
to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder that the Company may have acquired in any manner whatsoever,
and all Securities so delivered shall be promptly canceled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
canceled as provided in this Section, except as expressly permitted by this
Indenture. The Trustee shall dispose of all canceled Securities held by it in
accordance with its then customary procedures and deliver a certificate of such
disposal to the Company upon its request therefor. The acquisition of any
Securities by the Company shall not operate as a redemption or satisfaction of
the Indebtedness represented thereby unless and until such Securities are
surrendered to the Trustee for cancellation.

     

    Section 3.10
Computation of
Interest. Except as otherwise specified pursuant to Section 3.01 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

     

    Section 3.11
Currency of Payments
in Respect of Securities.

     

    (a)
Except as otherwise specified pursuant to Section 3.01 for Securities of
any series, payment of the principal of and premium, if any, and interest on
Securities of such series will be made in U.S. Dollars.

     

    (b) For
purposes of any provision of the Indenture in which the Holders of Outstanding
Securities may perform an action that requires that a specified percentage of
the Outstanding Securities of all series perform such action and for purposes of
any decision or determination by the Trustee of amounts due and unpaid for the
principal of and premium, if any, and interest on the Securities of all series
in respect of which moneys are to be disbursed ratably, the principal of and
premium, if any, and interest on the Outstanding Securities denominated in a
Foreign Currency will be the amount in U.S. Dollars based upon exchange rates,
determined as specified pursuant to Section 3.01 for Securities of such
series, as of the date for determining whether the Holders entitled to perform
such action have performed it or as of the date of such decision or
determination by the Trustee, as the case may be.

     

     (c)
Any decision or determination to be made regarding exchange rates shall be made
by an agent appointed by the Company; provided, that such agent shall accept
such appointment in writing and the terms of such appointment shall, in the
opinion of the Company at the time of such appointment, require such agent to
make such determination by a method consistent with the method provided pursuant
to Section 3.01 for the making of such decision or determination. All
decisions and determinations of such agent regarding exchange rates shall, in
the absence of manifest error, be conclusive for all purposes and irrevocably
binding upon the Company, the Trustee and all Holders of the
Securities.

     

    
      
        
        

      

      
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    Section 3.12
Judgments. The
Company may provide pursuant to Section 3.01 for Securities of any series
that (a) the obligation, if any, of the Company to pay the principal of,
premium, if any, and interest on the Securities of any series in a Foreign
Currency or U.S. Dollars (the “Designated
Currency”) as may be specified pursuant to Section 3.01 is of the
essence and agrees that, to the fullest extent possible under applicable law,
judgments in respect of such Securities shall be given in the Designated
Currency; (b) the obligation of the Company to make payments in the
Designated Currency of the principal of and premium, if any, and interest on
such Securities shall, notwithstanding any payment in any other Currency
(whether pursuant to a judgment or otherwise), be discharged only to the extent
of the amount in the Designated Currency that the Holder receiving such payment
may, in accordance with normal banking procedures, purchase with the sum paid in
such other Currency (after any premium and cost of exchange) on the business day
in the country of issue of the Designated Currency or in the international
banking community (in the case of a composite currency) immediately following
the day on which such Holder receives such payment; (c) if the amount in
the Designated Currency that may be so purchased for any reason falls short of
the amount originally due, the Company shall pay such additional amounts as may
be necessary to compensate for such shortfall; and (d) any obligation of
the Company not discharged by such payment shall be due as a separate and
independent obligation and, until discharged as provided herein, shall continue
in full force and effect.

     

    Section 3.13
CUSIP Numbers.
The Company in issuing any Securities may use CUSIP, ISIN or other similar
numbers, if then generally in use, and thereafter with respect to such series,
the Trustee may use such numbers in any notice of redemption or exchange with
respect to such series 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 Company will promptly notify the Trustee in
writing of any change in the CUSIP, ISIN or other similar numbers.

     

    ARTICLE
IV

     

    REDEMPTION OF
SECURITIES

     

    Section 4.01
Applicability of Right
of Redemption. Redemption of Securities (other than pursuant to a sinking
fund, amortization or analogous provision) permitted by the terms of any series
of Securities shall be made (except as otherwise specified pursuant to
Section 3.01 for Securities of any series) in accordance with this Article;
provided, however, that if any such terms of a series of Securities shall
conflict with any provision of this Article, the terms of such series shall
govern.

     

    Section 4.02
Selection of
Securities to be Redeemed.

     

    (a) If
the Company shall at any time elect to redeem all or any portion of the
Securities of a series then Outstanding, it shall at least 30 days prior to the
Redemption Date fixed by the Company (unless a shorter period shall be
satisfactory to the Trustee) notify the Trustee of such Redemption

    Date and
of the principal amount of Securities to be redeemed, and thereupon the Trustee
shall select, by lot or in such other manner as the Trustee shall deem
appropriate and which may provide for the selection for redemption of a portion
of the principal amount of any Security of such series; provided that the
unredeemed portion of the principal amount of any Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. In any case where more than one Security of
such series is registered in the same name, the Trustee may treat the aggregate
principal amount so registered as if it were represented by one Security of such
series. The Trustee shall, as soon as practicable, notify the Company in writing
of the Securities and portions of Securities so selected.

     

    (b) For
all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case of
any Security redeemed or to be redeemed only in part, to the portion of the
principal amount of such Security that has been or is to be redeemed. If the
Company shall so direct, Securities registered in the name of the Company, any
Affiliate or any Subsidiary thereof shall not be included in the Securities
selected for redemption.

     

    
      
        
        

      

      
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    Section 4.03
Notice of
Redemption.

     

    (a)
Notice of redemption shall be given by the Company or, at the Company’s request,
by the Trustee in the name and at the expense of the Company; provided, however,
that the Company makes such request at least 3 days prior to the date by which
such notice of redemption must be given to Holders in accordance with this
Section 4.03; provided further that, the text of such notice shall be
prepared by the Company, not less than 60 days before the Redemption Date unless
the Trustee consents to a shorter period, to the Holders of Securities of any
series to be redeemed in whole or in part pursuant to this Article, in the
manner provided in Section 16.04. Any notice so given shall be conclusively
presumed to have been duly given, whether or not the Holder receives such
notice. Failure to give such notice, or any defect in such notice to the Holder
of any Security of a series designated for redemption, in whole or in part,
shall not affect the sufficiency of any notice of redemption with respect to the
Holder of any other Security of such series.

     

    (b) All
notices of redemption shall identify the Securities to be redeemed (including
CUSIP, ISIN or other similar numbers, if available) and shall
state:

     

    (i) such
election by the Company to redeem Securities of such series pursuant to
provisions contained in this Indenture or the terms of the Securities of such
series or a supplemental indenture establishing such series, if such be the
case;

     

    (ii) the
Redemption Date;

     

    (iii) the
Redemption Price;

     

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

     

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

     

    (vi) the
Place or Places of Payment where such Securities are to be surrendered for
payment of the Redemption Price;

     

    (vii)
that the redemption is for a sinking fund, if such is the case; and

     

    (viii)
that the Securities must be surrendered to the Paying Agent for payment of the
Redemption Price.

     

    Section 4.04
Deposit of Redemption
Price. On or prior to 11:00 a.m.,                     
time, on the Redemption Date for any Securities, the Company shall deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 6.03) an
amount of money in the Currency in which such Securities are denominated (except
as provided pursuant to Section 3.01) sufficient to pay the Redemption
Price of such Securities or any portions thereof that are to be redeemed on that
date.

     

    Section 4.05
Securities Payable on
Redemption Date. Notice of redemption having been given as aforesaid, any
Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price and from and after such date (unless the Company
shall Default in the payment of the Redemption Price) such Securities shall
cease to bear interest. Upon surrender of any such Security for redemption in
accordance with said notice, such Security shall be paid by the Company at the
Redemption Price; provided, however, that (unless otherwise provided pursuant to
Section 3.01) installments of interest that have a Stated Maturity on or
prior to the Redemption Date for such Securities shall be payable according to
the terms of such Securities and the provisions of
Section 3.08.

     

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

     

    
      
        
        

      

      
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    Section 4.06
Securities Redeemed in
Part. Any Security that is to be redeemed only in part shall be
surrendered at the Corporate Trust Office or such other office or agency of the
Company as is specified pursuant to Section 3.01 with, if the Company, the
Registrar or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company, the Registrar and
the Trustee duly executed by the Holder thereof or his, her or its attorney duly
authorized in writing, and the Company shall execute, and the Trustee shall
authenticate and deliver to the Holder of such Security without service charge,
a new Security or Securities of the same series, of like tenor and form, of any
authorized denomination as requested by such Holder in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered; except that if a Global Security is so surrendered,
the Company shall execute, and the Trustee shall authenticate and deliver to the
Depositary for such Global Security, without service charge, a new Global
Security in a denomination equal to and in exchange for the unredeemed portion
of the principal of the Global Security so surrendered. In the case of a
Security providing appropriate space for such notation, at the option of the
Holder thereof, the Trustee, in lieu of delivering a new Security or Securities
as aforesaid, may make a notation on such Security of the payment of the
redeemed portion thereof.

     

    ARTICLE
V

     

    SINKING
FUNDS

     

    Section 5.01
Applicability of
Sinking Fund.

     

    (a)
Redemption of Securities permitted or required pursuant to a sinking fund for
the retirement of Securities of a series by the terms of such series of
Securities shall be made in accordance with such terms of such series of
Securities and this Article, except as otherwise specified pursuant to
Section 3.01 for Securities of such series, provided, however, that if any
such terms of a series of Securities shall conflict with any provision of this
Article, the terms of such series shall govern.

     

     (b)
The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “Mandatory Sinking
Fund Payment,” and any payment in excess of such minimum amount provided
for by the terms of Securities of any series is herein referred to as an “Optional Sinking
Fund Payment.” If provided for by the terms of Securities of any series,
the cash amount of any Mandatory Sinking Fund Payment may be subject to
reduction as provided in Section 5.02.

     

    Section 5.02
Mandatory Sinking Fund
Obligation. The Company may, at its option, satisfy any Mandatory Sinking
Fund Payment obligation, in whole or in part, with respect to a particular
series of Securities by (a) delivering to the Trustee Securities of such
series in transferable form theretofore purchased or otherwise acquired by the
Company or redeemed at the election of the Company pursuant to Section 4.03
or (b) receiving credit for Securities of such series (not previously so
credited) acquired by the Company and theretofore delivered to the Trustee. The
Trustee shall credit such Mandatory Sinking Fund Payment obligation with an
amount equal to the Redemption Price specified in such Securities for redemption
through operation of the sinking fund and the amount of such Mandatory Sinking
Fund Payment shall be reduced accordingly. If the Company shall elect to so
satisfy any Mandatory Sinking Fund Payment obligation, it shall deliver to the
Trustee not less than 45 days prior to the relevant sinking fund payment date a
written notice signed on behalf of the Company by its Chairman of the Board of
Directors, Chief Executive Officer, President, Chief Operating Officer, Chief
Financial Officer, one of its Vice Presidents, its Treasurer or one of its
Assistant Treasurers, which shall designate the Securities (and portions
thereof, if any) so delivered or credited and which shall be accompanied by such
Securities (to the extent not theretofore delivered) in transferable form. In
case of the failure of the Company, at or before the time so required, to give
such notice and deliver such Securities the Mandatory Sinking Fund Payment
obligation shall be paid entirely in moneys.

     

    Section 5.03
Optional Redemption at
Sinking Fund Redemption Price. In addition to the sinking fund
requirements of Section 5.02, to the extent, if any, provided for by the
terms of a particular series of Securities, the Company may, at its option, make
an Optional Sinking Fund Payment with respect to such Securities. Unless
otherwise provided by such terms, (a) to the extent that the right of the
Company to make such Optional Sinking Fund Payment shall not be exercised in any
year, it shall not be cumulative or carried forward to any subsequent year, and
(b) such optional payment shall operate to reduce the amount of any
Mandatory Sinking Fund Payment obligation as to Securities of the same series.
If the Company intends to exercise its right to make such optional payment in
any year it shall deliver to the Trustee not less than 45 days prior to the
relevant sinking fund payment date a certificate signed by its Chairman of the
Board of Directors, Chief Executive Officer, President, Chief Operating Officer,
Chief Financial Officer, one of its Vice Presidents, Treasurer or one of its
Assistant Treasurers stating that the Company will exercise such optional right,
and specifying the amount which the Company will pay on or before the next
succeeding sinking fund payment date. Such certificate shall also state that no
Event of Default has occurred and is continuing.

     

    
      
        
        

      

      
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    Section 5.04
Application of Sinking
Fund Payment.

     

    (a) If
the sinking fund payment or payments made in funds pursuant to either
Section 5.02 or 5.03 with respect to a particular series of Securities plus
any unused balance of any preceding sinking fund payments made in funds with
respect to such series shall exceed $50,000 (or a lesser sum if the Company
shall so request, or such equivalent sum for Securities denominated other than
in U.S. Dollars), it shall be applied by the Trustee on the sinking fund payment
date next following the date of such payment, unless the date of such payment
shall be a sinking fund payment date, in which
case such payment shall be applied on such sinking fund payment date, to the
redemption of Securities of such series at the redemption price specified
pursuant to Section 4.03(b). The Trustee shall select, in the manner
provided in Section 4.02, for redemption on such sinking fund payment date,
a sufficient principal amount of Securities of such series to absorb said funds,
as nearly as may be, and shall, at the expense and in the name of the Company,
thereupon cause notice of redemption of the Securities to be given in
substantially the manner provided in Section 4.03(a) for the redemption of
Securities in part at the option of the Company, except that the notice of
redemption shall also state that the Securities are being redeemed for the
sinking fund. Any sinking fund moneys not so applied by the Trustee to the
redemption of Securities of such series shall be added to the next sinking fund
payment received in funds by the Trustee and, together with such payment, shall
be applied in accordance with the provisions of this Section 5.04. Any and
all sinking fund moneys held by the Trustee on the last sinking fund payment
date with respect to Securities of such series, and not held for the payment or
redemption of particular Securities of such series, shall be applied by the
Trustee to the payment of the principal of the Securities of such series at
Maturity.

     

    (b) On or
prior to each sinking fund payment date, the Company shall pay to the Trustee a
sum equal to all interest accrued to but not including the date fixed for
redemption on Securities to be redeemed on such sinking fund payment date
pursuant to this Section 5.04.

     

    (c) The
Trustee shall not redeem any Securities of a series with sinking fund moneys or
mail any notice of redemption of Securities of such series by operation of the
sinking fund during the continuance of a Default in payment of interest on any
Securities of such series or of any Event of Default (other than an Event of
Default occurring as a consequence of this paragraph) of which the Trustee has
actual knowledge, except that if the notice of redemption of any Securities of
such series shall theretofore have been mailed in accordance with the provisions
hereof, the Trustee shall redeem such Securities if funds sufficient for that
purpose shall be deposited with the Trustee in accordance with the terms of this
Article. Except as aforesaid, any moneys in the sinking fund at the time any
such Default or Event of Default shall occur and any moneys thereafter paid into
the sinking fund shall, during the continuance of such Default or Event of
Default, be held as security for the payment of all the Securities of such
series; provided, however, that in case such Default or Event of Default shall
have been cured or waived as provided herein, such moneys shall thereafter be
applied on the next sinking fund payment date on which such moneys are required
to be applied pursuant to the provisions of this Section 5.04.

     

    
      
        
        

      

      
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    ARTICLE
VI

     

    PARTICULAR COVENANTS OF THE
COMPANY

     

    The
Company hereby covenants and agrees as follows:

     

    Section 6.01
Payments of
Securities. The Company will duly and punctually pay the principal of and
premium, if any, on each series of Securities, and the interest which shall have
accrued thereon, at the dates and place and in the manner provided in the
Securities and in this Indenture.

     

    Section 6.02
Paying
Agent.

     

    (a) The
Company will maintain in each Place of Payment for any series of Securities, if
any, an office or agency where Securities may be presented or surrendered for
payment, where Securities of such series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in
respect of the Securities and this Indenture may be served (the “Paying
Agent”). The Company will give prompt written notice to the Trustee of
the location, and any
change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, and the Company hereby appoints the Trustee as Paying Agent to receive
all presentations, surrenders, notices and demands.

     

    (b) The
Company may also from time to time designate different or additional offices or
agencies where the Securities of any series may be presented or surrendered for
any or all such purposes (in or outside of such Place of Payment), and may from
time to time rescind any such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligations described in the preceding paragraph. The Company will give prompt
written notice to the Trustee of any such additional designation or rescission
of designation and of any change in the location of any such different or
additional office or agency. The Company shall enter into an appropriate agency
agreement with any Paying Agent not a party to this Indenture. The agreement
shall implement the provisions of this Indenture that relate to such agent. The
Company shall notify the Trustee of the name and address of each such agent. The
Company or any Affiliate thereof may act as Paying Agent.

     

    Section 6.03
To Hold Payment in
Trust.

     

    (a) If
the Company or an Affiliate thereof shall at any time act as Paying Agent with
respect to any series of Securities, then, on or before the date on which the
principal of and premium, if any, or interest on any of the Securities of that
series by their terms or as a result of the calling thereof for redemption shall
become payable, the Company or such Affiliate will segregate and hold in trust
for the benefit of the Holders of such Securities or the Trustee a sum
sufficient to pay such principal and premium, if any, or interest which shall
have so become payable until such sums shall be paid to such Holders or
otherwise disposed of as herein provided, and will notify the Trustee of its
action or failure to act in that regard. Upon any proceeding under any federal
bankruptcy laws with respect to the Company or any Affiliate thereof, if the
Company or such Affiliate is then acting as Paying Agent, the Trustee shall
replace the Company or such Affiliate as Paying Agent.

     

    (b) If
the Company shall appoint, and at the time have, a Paying Agent for the payment
of the principal of and premium, if any, or interest on any series of
Securities, then prior to 11:00 a.m.,                     
time, on the date on which the principal of and premium, if any, or interest on
any of the Securities of that series shall become payable as aforesaid, whether
by their terms or as a result of the calling thereof for redemption, the Company
will deposit with such Paying Agent a sum sufficient to pay such principal and
premium, if any, or interest, such sum to be held in trust for the benefit of
the Holders of such Securities or the Trustee, and (unless such Paying Agent is
the Trustee), the Company or any other obligor of such Securities will promptly
notify the Trustee of its payment or failure to make such payment.

     

    
      
        
        

      

      
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    (c) If
the Paying Agent shall be other than the Trustee, the Company will cause such
Paying Agent to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section 6.03, that such Paying Agent shall:

     

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

     

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

     

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

     

    (d)
Anything in this Section 6.03 to the contrary notwithstanding, the Company
may at any time, for the purpose of obtaining a release, satisfaction or
discharge of this Indenture or for any other reason, pay or cause to be paid to
the Trustee all sums held in trust by the Company or by any Paying Agent other
than the Trustee as required by this Section 6.03, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the
Company or such Paying Agent.

     

    (e)
Subject to any applicable abandoned property law, any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of and premium, if any, or interest on any Security of
any series and remaining unclaimed for two years after such principal and
premium, if any, or interest has become due and payable shall be paid to the
Company upon Company Order or (if then held by the Company) shall be discharged
from such trust, and the Holder of such Security shall thereafter, as an
unsecured general creditor, look only to the Company for payment of such amounts
without interest thereon, and all liability of the Trustee or such Paying Agent
with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in                     ,
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to the
Company.

     

    Section 6.04
Merger, Consolidation
and Sale of Assets. Except as otherwise provided as contemplated by
Section 3.01 with respect to any series of Securities:

     

    (a) The
Company will not consolidate with any other entity or accept a merger of any
other entity into the Company or permit the Company to be merged into any other
entity, or sell other than for cash or lease all or substantially all its assets
to another entity, or purchase all or substantially all the assets of another
entity, unless (i) either the Company shall be the continuing entity, or
the successor, transferee or lessee entity (if other than the Company) shall
expressly assume, by indenture supplemental hereto, executed and delivered by
such entity prior to or simultaneously with such consolidation, merger, sale or
lease, the due and punctual payment of the principal of and interest and
premium, if any, on all the Securities, according to their tenor, and the due
and punctual performance and observance of all other obligations to the Holders
and the Trustee under this Indenture or under the Securities to be performed or
observed by the Company; and (ii) immediately after such consolidation,
merger, sale, lease or purchase the Company or the successor, transferee or
lessee entity (if other than the Company) would not be in Default in the
performance of any covenant or condition of this Indenture. A purchase by a
Subsidiary of all or substantially all of the assets of another entity shall not
be deemed to be a purchase of such assets by the Company.

     

    (b) Upon
any consolidation with or merger into any other entity, or any sale other than
for cash, or any conveyance or lease of all or substantially all of the assets
of the Company in accordance with this Section 6.04, the successor entity
formed by such consolidation or into or with which the
Company is merged or to which the Company is sold or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor entity had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Company shall be
relieved of all obligations and covenants under this Indenture and the
Securities, and from time to time such entity may exercise each and every right
and power of the Company under this Indenture, in the name of the Company, or in
its own name; and any act or proceeding by any provision of this Indenture
required or permitted to be done by the Board of Directors or any officer of the
Company may be done with like force and effect by the like board or officer of
any entity that shall at the time be the successor of the Company hereunder. In
the event of any such sale or conveyance, but not any such lease, the Company
(or any successor entity which shall theretofore have become such in the manner
described in this Section 6.04) shall be discharged from all obligations
and covenants under this Indenture and the Securities and may thereupon be
dissolved and liquidated.

     

    
      
        
        

      

      
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    Section 6.05
Compliance
Certificate. Except as otherwise provided as contemplated by
Section 3.01 with respect to any series of Securities, the Company shall
furnish to the Trustee annually, within 120 days after the end of each fiscal
year, a brief certificate from the Chief Executive Officer, President, Chief
Operating Officer, Principal Financial Officer, Principal Accounting Officer,
any Vice President or Treasurer as to his or her knowledge of the Company’s
compliance with all conditions and covenants under this Indenture (which
compliance shall be determined without regard to any period of grace or
requirement of notice provided under this Indenture) and, in the event of any
Default, specifying each such Default and the nature and status thereof of which
such person may have knowledge. Such certificates need not comply with
Section 16.01 of this Indenture.

     

    Section 6.06
Conditional Waiver by
Holders of Securities. Anything in this Indenture to the contrary
notwithstanding, the Company may fail or omit in any particular instance to
comply with a covenant or condition set forth herein with respect to any series
of Securities if the Company shall have obtained and filed with the Trustee,
prior to the time of such failure or omission, evidence (as provided in Article
VIII) of the consent of the Holders of a majority in aggregate principal amount
of the Securities of such series at the time Outstanding, either waiving such
compliance in such instance or generally waiving compliance with such covenant
or condition, but no such waiver shall extend to or affect such covenant or
condition except to the extent so expressly waived, or impair any right
consequent thereon and, until such waiver shall have become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
covenant or condition shall remain in full force and effect.

     

    Section 6.07
Statement by Officers
as to Default. The Company shall deliver to the Trustee as soon as
possible and in any event within 30 days after the Company becomes aware of the
occurrence of any Event of Default or an event which, with the giving of notice
or the lapse of time or both, would constitute an Event of Default, an Officer’s
Certificate setting forth the details of such Event of Default or Default and
the action which the Company proposes to take with respect thereto.

     

    ARTICLE
VII

     

    REMEDIES OF TRUSTEE AND
SECURITYHOLDERS

     

    Section 7.01
Events of
Default. Except where otherwise indicated by the context or where the
term is otherwise defined for a specific purpose, the term “Event of
Default” as used in this Indenture with respect to Securities of any
series shall mean one of the following described events unless it is either
inapplicable to a particular series or it is specifically deleted or modified in
the manner contemplated in Section 3.01:

     

    (a) the
failure of the Company to pay any installment of interest on any Security of
such series when and as the same shall become payable, which failure shall have
continued unremedied for a period of 30 days;

    

     (b)
the failure of the Company to pay the principal of (and premium, if any, on) any
Security of such series, when and as the same shall become payable, whether at
Maturity as therein expressed, by call for redemption (otherwise than pursuant
to a sinking fund), by declaration as authorized by this Indenture or
otherwise;

     

    
      
        
        

      

      
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    (c) the
failure of the Company to pay a sinking fund installment, if any, when and as
the same shall become payable by the terms of a Security of such series, which
failure shall have continued unremedied for a period of 30 days;

     

    (d) the
failure of the Company, subject to the provisions of Section 6.06, to
perform any covenants or agreements contained in this Indenture (including any
indenture supplemental hereto pursuant to which the Securities of such series
were issued as contemplated by Section 3.01) (other than a covenant or
agreement which has been expressly included in this Indenture solely for the
benefit of a series of Securities other than that series and other than a
covenant or agreement a default in the performance of which is elsewhere in this
Section 7.01 specifically addressed), which failure shall not have been
remedied, or without provision deemed to be adequate for the remedying thereof
having been made, for a period of 90 days after written notice shall have been
given to the Company by the Trustee or shall have been given to the Company and
the Trustee by Holders of 25% or more in aggregate principal amount of the
Securities of such series then Outstanding, specifying such failure, requiring
the Company to remedy the same and stating that such notice is a “Notice of
Default” hereunder;

     

    (e) the
entry by a court having jurisdiction in the premises of a decree or order for
relief in respect of the Company in an involuntary case under the federal
bankruptcy laws, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee or
sequestrator (or similar official) of the Company or of substantially all the
property of the Company or ordering the winding-up or liquidation of its affairs
and such decree or order shall remain unstayed and in effect for a period of 90
consecutive days;

     

    (f) the
commencement by the Company of a voluntary case under the federal bankruptcy
laws, as now or hereafter constituted, or any other applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or the
consent by the Company to the entry of an order for relief in an involuntary
case under any such law, or the consent by the Company to the appointment of or
taking possession by a receiver, liquidator, assignee, trustee, custodian or
sequestrator (or similar official) of the Company or of substantially all the
property of the Company or the making by it of an assignment for the benefit of
creditors or the admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by the Company
in furtherance of any action; or

     

    (g) the
occurrence of any other Event of Default with respect to Securities of such
series as provided in Section 3.01;

     

    provided,
however, that no event described in clause (d) or (other than with respect
to a payment default) (g) above shall constitute an Event of Default
hereunder until a Responsible Officer assigned to and working in the Trustee’s
corporate trust department has actual knowledge thereof or until a written
notice of any such event is received by the Trustee at the Corporate Trust
Office, and such notice refers to the facts underlying such event, the
Securities generally, the Company and the Indenture.

    

    Notwithstanding
the foregoing provisions of this Section 7.01, if the principal or any
premium or interest on any Security is payable in a Currency other than the
Currency of the United States and such Currency is not available to the Company
for making payment thereof due to the imposition of exchange controls or other
circumstances beyond the control of the Company, the Company will be entitled to
satisfy its obligations to Holders of the Securities by making such payment in
the Currency of the United States in an amount equal to the Currency of the
United States equivalent of the amount payable in such other Currency, as
determined by the Company by reference to the noon buying rate in                     
for cable transfers for such Currency (“Exchange
Rate”), as such Exchange Rate is reported or otherwise made available by
the Federal Reserve Bank of New York on the date of such payment, or, if such
rate is not then available, on the basis of the most recently available Exchange
Rate. Notwithstanding the foregoing provisions of this Section 7.01, any
payment made under such circumstances in the Currency of the United States where
the required payment is in a Currency other than the Currency of the United
States will not constitute an Event of Default under this
Indenture.

     

    
      
        
        

      

      
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    Section 7.02
Acceleration;
Rescission and Annulment.

     

    (a)
Except as otherwise provided as contemplated by Section 3.01 with respect
to any series of Securities, if any one or more of the above-described Events of
Default (other than an Event of Default specified in Section 7.01(e) or
7.01(f)) shall happen with respect to Securities of any series at the time
Outstanding, then, and in each and every such case, during the continuance of
any such Event of Default, the Trustee or the Holders of 25% or more in
principal amount of the Securities of such series then Outstanding may declare
the principal (or, if the Securities of that series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of that series) of and all accrued but unpaid interest on all the
Securities of such series then Outstanding to be due and payable immediately by
a notice in writing to the Company (and to the Trustee if given by Holders), and
upon any such declaration such principal amount (or specified amount) shall
become immediately due and payable. If an Event of Default specified in
Section 7.01(e) or 7.01(f) occurs and is continuing, then in every such
case, the principal amount of all of the Securities of that series then
Outstanding shall automatically, and without any declaration or any other action
on the part of the Trustee or any Holder, become due and payable immediately.
Upon payment of such amounts in the Currency in which such Securities are
denominated (subject to Section 7.01 and except as otherwise provided
pursuant to Section 3.01), all obligations of the Company in respect of the
payment of principal of and interest on the Securities of such series shall
terminate.

     

    (b) The
provisions of Section 7.02(a), however, are subject to the condition that,
at any time after the principal of all the Securities of such series, to which
any one or more of the above-described Events of Default is applicable, shall
have been so declared to be due and payable, and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter
provided in this Article, the Event of Default giving rise to such declaration
of acceleration shall, without further act, be deemed to have been waived, and
such declaration and its consequences shall, without further act, be deemed to
have been rescinded and annulled, if:

     

    (i) the
Company has paid or deposited with the Trustee or Paying Agent a sum in the
Currency in which such Securities are denominated (subject to Section 7.01
and except as otherwise provided pursuant to Section 3.01) sufficient to
pay

     

    (A) all
amounts owing the Trustee and any predecessor trustee hereunder under
Section 11.01(a) (provided, however, that all sums payable under this
clause (A) shall be paid in U.S. Dollars);

     

    (B) all
arrears of interest, if any, upon all the Securities of such series (with
interest, to the extent that interest thereon shall be legally enforceable, on
any overdue installment of interest at the rate borne by such Securities at the
rate or rates prescribed therefor in such Securities); and

     

    (C) the
principal of and premium, if any, on any Securities of such series that have
become due otherwise than by such declaration of acceleration and interest
thereon;

     

    (ii)
every other Default and Event of Default with respect to Securities of that
series, other than the non-payment of the principal of Securities of that series
which have become due solely by such declaration of acceleration, have been
cured or waived as provided in Section 7.06.

     

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

     

    (d) For
all purposes under this 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.

     

    
      
        
        

      

      
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    Section 7.03
Other Remedies.
If the Company shall fail for a period of 30 days to pay any installment of
interest on the Securities of any series or shall fail to pay the principal of
and premium, if any, on any of the Securities of such series when and as the
same shall become due and payable, whether at Maturity, or by call for
redemption (other than pursuant to the sinking fund), by declaration as
authorized by this Indenture, or otherwise, or shall fail for a period of 30
days to make any required sinking fund payment as to a series of Securities,
then, upon demand of the Trustee, the Company will pay to the Paying Agent for
the benefit of the Holders of Securities of such series then Outstanding the
whole amount which then shall have become due and payable on all the Securities
of such series, with interest on the overdue principal and premium, if any, and
(so far as the same may be legally enforceable) on the overdue installments of
interest at the rate borne by the Securities of such series, and all amounts
owing the Trustee and any predecessor trustee hereunder under
Section 11.01(a).

     

    In case
the Company shall fail forthwith to pay such amounts upon such demand, the
Trustee, in its own name and as trustee of an express trust, shall be entitled
and empowered to institute any action or proceeding at law or in equity for the
collection of the sums so due and unpaid, and may prosecute any such action or
proceeding to judgment or final decree, and may enforce any such judgment or
final decree against the Company or any other obligor upon the Securities of
such series, and collect the moneys adjudged or decreed to be payable out of the
property of the Company or any other obligor upon the Securities of such series,
wherever situated, in the manner provided by law. Every recovery of judgment in
any such action or other proceeding, subject to the payment to the Trustee of
all amounts owing the Trustee and any predecessor trustee hereunder under
Section 11.01(a), shall be for the ratable benefit of the Holders of such
series of Securities which shall be the subject of such action or proceeding.
All rights

    of action
upon or under any of the Securities or this Indenture may be enforced by the
Trustee without the possession of any of the Securities and without the
production of any thereof at any trial or any proceeding relative
thereto.

     

    Section 7.04
Trustee as
Attorney-in-Fact. The Trustee is hereby appointed, and each and every
Holder of the Securities, by receiving and holding the same, shall be
conclusively deemed to have appointed the Trustee, the true and lawful
attorney-in-fact of such Holder, with authority to make or file (whether or not
the Company shall be in Default in respect of the payment of the principal of,
or interest on, any of the Securities), in its own name and as trustee of an
express trust or otherwise as it shall deem advisable, in any receivership,
insolvency, liquidation, bankruptcy, reorganization or other judicial proceeding
relative to the Company or any other obligor upon the Securities or to their
respective creditors or property, any and all claims, proofs of claim, proofs of
debt, petitions, consents, other papers and documents and amendments of any
thereof, as may be necessary or advisable in order to have the claims of the
Trustee and any predecessor trustee hereunder and of the Holders of the
Securities allowed in any such proceeding and to collect and receive any moneys
or other property payable or deliverable on any such claim, and to execute and
deliver any and all other papers and documents and to do and perform any and all
other acts and things, as it may deem necessary or advisable in order to enforce
in any such proceeding any of the claims of the Trustee and any predecessor
trustee hereunder and of any of such Holders in respect of any of the
Securities; and any receiver, assignee, trustee, custodian or debtor in any such
proceeding is hereby authorized, and each and every taker or Holder of the
Securities, by receiving and holding the same, shall be conclusively deemed to
have authorized any such receiver, assignee, trustee, custodian or debtor, to
make any such payment or delivery only to or on the order of the Trustee, and to
pay to the Trustee any amount due it and any predecessor trustee hereunder under
Section 11.01(a); provided, however, that nothing herein contained shall be
deemed to authorize or empower the Trustee to consent to or accept or adopt, on
behalf of any Holder of Securities, any plan of reorganization or readjustment
affecting the Securities or the rights of any Holder thereof, or to authorize or
empower the Trustee to vote in respect of the claim of any Holder of any
Securities in any such proceeding.

     

    
      
        
        

      

      
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    Section 7.05
Priorities. Any
moneys or properties collected by the Trustee with respect to a series of
Securities under this Article VII shall be applied in the order following, at
the date or dates fixed by the Trustee for the distribution of such moneys or
properties and, in the case of the distribution of such moneys or properties on
account of the Securities of any series, upon presentation of the Securities of
such series, and stamping thereon the payment, if only partially paid, and upon
surrender thereof, if fully paid:

     

    First: To
the payment of all amounts due to the Trustee and any predecessor trustee
hereunder under Section 11.01(a).

     

    Second:
In case the principal of the Outstanding Securities of such series shall not
have become due and be unpaid, to the payment of interest on the Securities of
such series, in the chronological 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 rate
borne by such Securities, such payments to be made ratably to the Persons
entitled thereto.

     

    Third: In
case the principal of the Outstanding Securities of such series shall have
become due, by declaration or otherwise, to the payment of the whole amount then
owing and unpaid upon the Securities of such series for principal and premium,
if any, and interest, with interest on the overdue principal and premium, if
any, and (to the extent that such interest has been collected by the Trustee)
upon overdue installments of interest at the rate borne by the Securities of
such series, and in case such moneys shall be insufficient to pay in full the
whole amounts so due and unpaid upon the Securities of such series, then to the
payment of such principal and premium, if any, and interest

    without
preference or priority of principal and premium, if any, over interest, or of
interest over principal and premium, if any, 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 premium, if any, and accrued and unpaid interest.

     

    Any
surplus then remaining shall be paid to the Company or as directed by a court of
competent jurisdiction.

     

    Section 7.06
Control by
Securityholders; Waiver of Past Defaults. The Holders of a majority in
principal amount of the Securities of any series at the time Outstanding may
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee hereunder, or of exercising any trust or power hereby
conferred upon the Trustee with respect to the Securities of such series,
provided, however, that, subject to the provisions of Sections 11.01 and 11.02,
the Trustee shall have the right to decline to follow any such direction if the
Trustee being advised by counsel determines that the action so directed may not
lawfully be taken or would be unduly prejudicial to Holders not joining in such
direction or would involve the Trustee in personal liability. Prior to any
declaration accelerating the Maturity of the Securities of any series, the
Holders of a majority in aggregate principal amount of such series of Securities
at the time Outstanding may on behalf of the Holders of all of the Securities of
such series waive any past Default or Event of Default hereunder and its
consequences except a Default in the payment of interest or any premium on or
the principal of the Securities of such series. Upon any such waiver the
Company, the Trustee and the Holders of the Securities of such series shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or Event of Default
or impair any right consequent thereon. Whenever any Default or Event of Default
hereunder shall have been waived as permitted by this Section 7.06, said
Default or Event of Default shall for all purposes of the Securities of such
series and this Indenture be deemed to have been cured and to be not
continuing.

     

    Section 7.07
Limitation on
Suits. No Holder of any Security of any series shall have any right to
institute any action, suit or proceeding at law or in equity for the execution
of any trust hereunder or for the appointment of a receiver or for any other
remedy hereunder, in each case with respect to an Event of Default with respect
to such series of Securities, unless such Holder previously shall have given to
the Trustee written notice of one or more of the Events of Default herein
specified with respect to such series of Securities, and unless also the Holders
of 25% in principal amount of the Securities of such series then Outstanding
shall have requested the Trustee in writing to take action in respect of the
matter complained of, and unless also there shall have been offered to the
Trustee security and indemnity satisfactory to it against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for 60 days
after receipt of such notification, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding; and such
notification, request and offer of indemnity are hereby declared in every such
case to be conditions precedent to any such action, suit or proceeding by any
Holder of any Security of such series; it being understood and intended that no
one or more of the Holders of Securities of such series shall have any right in
any manner whatsoever by his, her, its or their action to enforce any right
hereunder, except in the manner herein provided, and that every action, suit or
proceeding at law or in equity shall be instituted, had and maintained in the
manner herein provided and for the equal benefit of all Holders of the
Outstanding Securities of such series; provided, however, that nothing in this
Indenture or in the Securities of such series shall affect or impair the
obligation of the Company, which is absolute and unconditional, to pay the
principal of, premium, if any, and interest on the Securities of such series to
the respective Holders of such Securities at the respective due dates in such
Securities stated, or affect or impair the right, which is also absolute and
unconditional, of such Holders to institute suit to enforce the payment
thereof.

     

    
      
        
        

      

      
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    Section 7.08
Undertaking for
Costs. All parties to this Indenture and each Holder of any Security, by
such Holder’s acceptance thereof, shall be deemed to have agreed that any court
may in its discretion require, in any action, suit or proceeding for the
enforcement of any right or remedy under this Indenture, or in any action, suit
or proceeding against the Trustee for any action taken or omitted by it as
Trustee, the filing by any party litigant in such action, suit or proceeding of
an undertaking to pay the costs of such action, suit or proceeding, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in such action, suit or
proceeding, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; provided, however, that the provisions of
this Section 7.08 shall not apply to any action, suit or proceeding
instituted by the Trustee, to any action, suit or proceeding instituted by any
one or more Holders of Securities holding in the aggregate more than 10% in
principal amount of the Securities of any series Outstanding, or to any action,
suit or proceeding instituted by any Holder of Securities of any series for the
enforcement of the payment of the principal of or premium, if any, or the
interest on, any of the Securities of such series, on or after the respective
due dates expressed in such Securities.

     

    Section 7.09
Remedies
Cumulative. No remedy herein conferred upon or reserved to the Trustee or
to the Holders of Securities of any series is intended to be exclusive of any
other remedy or remedies, and each and every remedy shall be cumulative and
shall be in addition to every other remedy given hereunder or now or hereafter
existing at law or in equity or by statute. No delay or omission of the Trustee
or of any Holder of the Securities of any series to exercise any right or power
accruing upon any Default or Event of Default shall impair any such right or
power or shall be construed to be a waiver of any such Default or Event of
Default or an acquiescence therein; and every power and remedy given by this
Article VII to the Trustee and to the Holders of Securities of any series,
respectively, may be exercised from time to time and as often as may be deemed
expedient by the Trustee or by the Holders of Securities of such series, as the
case may be. In case the Trustee or any Holder of Securities of any series shall
have proceeded to enforce any right under this Indenture and the proceedings for
the enforcement thereof shall have been discontinued or abandoned because of
waiver or for any other reason or shall have been adjudicated adversely to the
Trustee or to such Holder of Securities, then and in every such case the
Company, the Trustee and the Holders of the Securities of such series shall
severally and respectively be restored to their former positions and rights
hereunder, and thereafter all rights, remedies and powers of the Trustee and the
Holders of the Securities of such series shall continue as though no such
proceedings had been taken, except as to any matters so waived or
adjudicated.

     

    ARTICLE
VIII

     

    CONCERNING THE
SECURITYHOLDERS

     

    Section 8.01
Evidence of Action of
Securityholders. Whenever in this Indenture it is provided that the
Holders of a specified percentage or a majority in aggregate principal amount of
the Securities or of any series of Securities may take any action (including the
making of any demand or request, the giving of any notice, consent or waiver or
the taking of any other action), the fact that at the time of taking any such
action the Holders of such specified percentage or majority have joined therein
may be evidenced by (a) any instrument or any number of instruments of
similar tenor executed by Securityholders in person, by an agent or by a proxy
appointed in writing, including through an electronic system for tabulating
consents operated by the Depositary for such series or otherwise (such action
becoming effective, except as herein otherwise expressly provided, when such
instruments or evidence of electronic consents are delivered to the Trustee and,
where it is hereby expressly required, to the Company), or (b) by the
record of the Holders of Securities voting in favor thereof at any meeting of
Securityholders duly called and held in accordance with the provisions of
Article IX, or (c) by a combination of such instrument or instruments and
any such record of such a meeting of Securityholders.

     

    
      
        
        

      

      
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    Section 8.02
Proof of Execution or
Holding of Securities. Proof of the execution of any instrument by a
Securityholder or his, her or its agent or proxy and proof of the holding by any
Person of any of the Securities shall be sufficient if made in the following
manner:

     

    (a) The
fact and date of the execution by any Person of any such instrument may be
proved (i) by the certificate of any notary public or other officer in any
jurisdiction who, by the laws thereof, has power to take acknowledgments or
proof of deeds to be recorded within such jurisdiction, that the Person who
signed such instrument did acknowledge before such notary public or other
officer the execution thereof, or (ii) by the affidavit of a witness of
such execution sworn to before any such notary or other officer. Where such
execution is by a Person acting in other than his or her individual capacity,
such certificate or affidavit shall also constitute sufficient proof of his or
her authority.

     

    (b) The
ownership of Securities of any series shall be proved by the Register of such
Securities or by a certificate of the Registrar for such series.

     

    (c) The
record of any Holders’ meeting shall be proved in the manner provided in
Section 9.06.

     

    (d) The
Trustee may require such additional proof of any matter referred to in this
Section 8.02 as it shall deem appropriate or necessary, so long as the
request is a reasonable one.

     

    (e) If
the Company shall solicit from the Holders of Securities of any series any
action, the Company may, at its option fix in advance a record date for the
determination of Holders of Securities entitled to take such action, but the
Company shall have no obligation to do so. Any such record date shall be fixed
at the Company’s discretion. If such a record date is fixed, such action may be
sought or given before or after the record date, but only the Holders of
Securities of record at the close of business on such record date shall be
deemed to be Holders of Securities for the purpose of determining whether
Holders of the requisite proportion of Outstanding Securities of such series
have authorized or agreed or consented to such action, and for that purpose the
Outstanding Securities of such series shall be computed as of such record
date.

     

    Section 8.03
Persons Deemed
Owners.

     

    (a) The
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name any Security is registered as the owner of such Security
for the purpose of receiving payment of principal of and premium, if any, and
(subject to Section 3.08) interest, if any, on, such Security and for all
other purposes whatsoever, whether or not such Security be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary. All payments made to any Holder, or upon
his, her or its order, shall be valid, and, to the extent of the sum or sums
paid, effectual to satisfy and discharge the liability for moneys payable upon
such Security.

     

    (b) None
of the Company, the Trustee, any Paying Agent or the Registrar will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests in a Global Security
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

     

    Section 8.04
Effect of
Consents. After an amendment, supplement, waiver or other action becomes
effective as to any series of Securities, a consent to it by a Holder of such
series of Securities is a continuing consent conclusive and binding upon such
Holder and every subsequent Holder of the same Securities
or portion thereof, and of any Security issued upon the transfer thereof or in
exchange therefor or in place thereof, even if notation of the consent is not
made on any such Security. An amendment, supplement or waiver becomes effective
in accordance with its terms and thereafter binds every Holder.

     

    
      
        
        

      

      
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    ARTICLE
IX

     

    SECURITYHOLDERS’
MEETINGS

     

    Section 9.01
Purposes of
Meetings. A meeting of Securityholders of any or all series may be called
at any time and from time to time pursuant to the provisions of this Article IX
for any of the following purposes:

     

    (a) to
give any notice to the Company or to the Trustee, or to give any directions to
the Trustee, or to consent to the waiving of any Default or Event of Default
hereunder and its consequences, or to take any other action authorized to be
taken by Securityholders pursuant to any of the provisions of Article
VIII;

     

    (b) to
remove the Trustee and nominate a successor trustee pursuant to the provisions
of Article XI;

     

    (c) to
consent to the execution of an Indenture or of indentures supplemental hereto
pursuant to the provisions of Section 14.02; or

     

    (d) to
take any other action authorized to be taken by or on behalf of the Holders of
any specified aggregate principal amount of the Securities of any one or more or
all series, as the case may be, under any other provision of this Indenture or
under applicable law.

     

    Section 9.02
Call of Meetings by
Trustee. The Trustee may at any time call a meeting of all
Securityholders of all series that may be affected by the action proposed to be
taken, to take any action specified in Section 9.01, to be held at such
time and at such place as the Trustee shall determine. Notice of every meeting
of the Securityholders of a series, setting forth the time and the place of such
meeting and in general terms the action proposed to be taken at such meeting,
shall be mailed to Holders of Securities of such series at their addresses as
they shall appear on the Register of the Company. Such notice shall be mailed
not less than 20 nor more than 90 days prior to the date fixed for the
meeting.

     

    Section 9.03
Call of Meetings by
Company or Securityholders. In case at any time the Company or the
Holders of at least 10% in aggregate principal amount of the Securities of a
series (or of all series, as the case may be) then Outstanding that may be
affected by the action proposed to be taken, shall have requested the Trustee to
call a meeting of Securityholders of such series (or of all series), by written
request setting forth in reasonable detail the action proposed to be taken at
the meeting, and the Trustee shall not have mailed the notice of such meeting
within 20 days after receipt of such request, then the Company or such
Securityholders may determine the time and the place for such meeting and may
call such meeting to take any action authorized in Section 9.01, by mailing
notice thereof as provided in Section 9.02.

     

    Section 9.04
Qualifications for
Voting. To be entitled to vote at any meeting of Securityholders, a
Person shall (a) be a Holder of one or more Securities affected by the
action proposed to be taken at the meeting or (b) be a Person appointed by
an instrument in writing as proxy by a Holder of one or more such Securities.
The only Persons who shall be entitled to be present or to speak at any meeting
of Securityholders shall be the Persons entitled to vote at such meeting and
their counsel and any representatives of the Trustee and its counsel and any
representatives of the Company and its counsel.

     

    Section 9.05
Regulation of
Meetings.

     

    (a)
Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of
Securityholders, in regard to proof of the holding of Securities and of the
appointment of proxies, and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem fit.

     

    (b) The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by
Securityholders as provided in Section 9.03, in which case the Company or
the Securityholders calling the meeting, as the case may be, shall in like
manner appoint a temporary chair. A permanent chairman and a permanent secretary
of the meeting shall be elected by majority vote of the meeting.

     

    
      
        
        

      

      
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    (c) At
any meeting of Securityholders of a series, each Securityholder of such series
of such Securityholder’s proxy shall be entitled to one vote for each $1,000
principal amount of Securities of such series Outstanding held or represented by
him; provided, however, that no vote shall be cast or counted at any meeting in
respect of any Security challenged as not Outstanding and ruled by the chairman
of the meeting to be not Outstanding. The chairman of the meeting shall have no
right to vote other than by virtue of Securities of such series held by him or
her or instruments in writing as aforesaid duly designating him or her as the
Person to vote on behalf of other Securityholders. At any meeting of the
Securityholders duly called pursuant to the provisions of Section 9.02 or
9.03 the presence of Persons holding or representing Securities in an aggregate
principal amount sufficient to take action upon the business for the transaction
of which such meeting was called shall be necessary to constitute a quorum, and
any such meeting may be adjourned from time to time by a majority of those
present, whether or not constituting a quorum, and the meeting may be held as so
adjourned without further notice.

     

    Section 9.06
Voting. The
vote upon any resolution submitted to any meeting of Securityholders of a series
shall be by written ballots on which shall be subscribed the signatures of the
Holders of Securities of such series or of their representatives by proxy and
the principal amounts of the Securities of such series held or represented by
them. The permanent chairman of the meeting shall appoint two inspectors of
votes who shall count all votes cast at the meeting for or against any
resolution and who shall make and file with the secretary of the meeting their
verified written reports in duplicate of all votes cast at the meeting. A record
in duplicate of the proceedings of each meeting of Securityholders shall be
prepared by the secretary of the meeting and there shall be attached to said
record the original reports of the inspectors of votes on any vote by ballot
taken thereat and affidavits by one or more Persons having knowledge of the
facts setting forth a copy of the notice of the meeting and showing that said
notice was mailed as provided in Section 9.02. The record shall show the
principal amounts of the Securities voting in favor of or against any
resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee.

     

    Any
record so signed and verified shall be conclusive evidence of the matters
therein stated.

     

    Section 9.07
No Delay of Rights by
Meeting. Nothing contained in this Article IX shall be deemed or
construed to authorize or permit, by reason of any call of a meeting of
Securityholders of any series or any rights expressly or impliedly conferred
hereunder to make such call, any hindrance or delay in the exercise of any right
or rights conferred upon or reserved to the Trustee or to the Securityholders of
such series under any of the provisions of this Indenture or of the Securities
of such series.

     

    ARTICLE
X

     

    REPORTS BY THE COMPANY AND
THE TRUSTEE AND

     

    SECURITYHOLDERS’
LISTS

     

    Section 10.01
Reports by
Trustee.

     

    (a) So
long as any Securities are outstanding, the Trustee shall transmit to Holders
such reports concerning the Trustee and its actions under this Indenture as may
be required pursuant to the Trust Indenture Act at the times and in the manner
provided therein. If required by Section 313(a) of the Trust Indenture Act,
the Trustee shall, within 60 days after each following the date of this
Indenture deliver to Holders a brief report which complies with the provisions
of such Section 313(a).

     

    (b) The
Trustee shall, at the time of the transmission to the Holders of Securities of
any report pursuant to the provisions of this Section 10.01, file a copy of
such report with each stock exchange upon which the Securities are listed, if
any, and also with the SEC in respect of a Security listed and registered on a
national securities exchange, if any. The Company agrees to notify the Trustee
when, as and if the Securities become listed on any stock exchange.

     

    
      
        
        

      

      
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    The
Company will reimburse the Trustee for all expenses incurred in the preparation
and transmission of any report pursuant to the provisions of this
Section 10.01 and of Section 10.02.

     

     Section 10.02
Reports by the
Company. The Company shall file with the Trustee and the SEC, and
transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided in the Trust Indenture Act; provided that,
unless available on EDGAR, any such information, documents or reports required
to be filed with the SEC pursuant to Section 13 or 15(d) of the Exchange
Act shall be filed with the Trustee within 30 days after the same is filed with
the SEC. 

     

    Section 10.03
Securityholders’
Lists. The Company covenants and agrees that it will furnish or cause to
be furnished to the Trustee:

     

    (a)
semi-annually, within 15 days after each Record Date, but in any event not less
frequently than semi-annually, a list in such form as the Trustee may reasonably
require of the names and addresses of the Holders of Securities to which such
Record Date applies, as of such Record Date, and

     

    (b) at
such other times as the Trustee may request in writing, within 30 days after
receipt by the Company of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is furnished;
provided, however, that so long as the Trustee shall be the Registrar, such
lists shall not be required to be furnished.

     

    ARTICLE
XI

     

    CONCERNING THE
TRUSTEE

     

    Section 11.01
Rights of Trustees;
Compensation and Indemnity. The Trustee accepts the trusts created by
this Indenture upon the terms and conditions hereof, including the following, to
all of which the parties hereto and the Holders from time to time of the
Securities agree:

     

    (a) The
Trustee shall be entitled to such compensation as the Company and the Trustee
shall from time to time agree in writing for all services rendered by it
hereunder (including in any agent capacity in which it acts). The compensation
of the Trustee shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust. The Company shall reimburse the
Trustee promptly upon its request for all reasonable out-of-pocket expenses,
disbursements and advances incurred or made by the Trustee (including the
reasonable expenses and disbursements of its agents and counsel), except any
such expense, disbursement or advance as may be attributable to its negligence,
bad faith or willful misconduct.

     

    The
Company also agrees to indemnify each of the Trustee and any predecessor Trustee
hereunder for, and to hold it harmless against, any and all loss, liability,
damage, claim, or expense incurred without its own negligence, bad faith or
willful misconduct, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder and the performance of its
duties (including in any agent capacity in which it acts), as well as the costs
and expenses of defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder,
except those attributable to its negligence, willful misconduct or bad faith.
The Trustee shall notify the Company promptly of any claim for which it may seek
indemnity. The Company shall defend the claim and the Trustee shall cooperate in
the defense. The Trustee may have one separate counsel and the Company shall pay
the reasonable fees and expenses of such counsel. The Company need not pay for
any settlement made without its consent, which consent shall not be unreasonably
withheld.

     

    
      
        
        

      

      
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    As
security for the performance of the obligations of the Company under this
Section 11.01(a), the Trustee shall have a lien upon all property and funds
held or collected by the Trustee as such, except funds held in trust by the
Trustee to pay principal of and interest on any Securities. Notwithstanding any
provisions of this Indenture to the contrary, the obligations of the Company to
compensate and indemnify the Trustee under this Section 11.01(a) shall
survive the resignation or removal of the Trustee and any satisfaction and
discharge under Article XII. When the Trustee incurs expenses or renders
services after an Event of Default specified in clause (e) or (f) of
Section 7.01 occurs, the expenses and compensation for the services are
intended to constitute expenses of administration under any applicable federal
or state bankruptcy, insolvency or similar laws.

     

    (b) The
Trustee may execute any of the trusts or powers hereof and perform any duty
hereunder either directly or by its agents and attorneys and shall not be
responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder.

     

    (c) The
Trustee shall not be responsible in any manner whatsoever for the correctness of
the recitals herein or in the Securities (except its certificates of
authentication thereon) contained, all of which are made solely by the Company;
and the Trustee shall not be responsible or accountable in any manner whatsoever
for or with respect to the validity or execution or sufficiency of this
Indenture or of the Securities (except its certificates of authentication
thereon), and the Trustee makes no representation with respect thereto, except
that the Trustee represents that it is duly authorized to execute and deliver
this Indenture, authenticate the Securities and perform its obligations
hereunder and that the statements made by it in a Statement of Eligibility on
Form T-1 supplied to the Company are true and accurate, subject to the
qualifications set forth therein. The Trustee shall not be accountable for the
use or application by the Company of any Securities, or the proceeds of any
Securities, authenticated and delivered by the Trustee in conformity with the
provisions of this Indenture.

     

     (d)
The Trustee may consult with counsel of its selection, and, to the extent
permitted by Section 11.02, any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken or suffered
by the Trustee hereunder in good faith and in accordance with such Opinion of
Counsel.

     

    (e) The
Trustee, to the extent permitted by Section 11.02, may rely upon the
certificate of the Secretary or one of the Assistant Secretaries of the Company
as to the adoption of any Board Resolution or resolution of the stockholders of
the Company, and any request, direction, order or demand of the Company
mentioned herein shall be sufficiently evidenced by, and whenever in the
administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee may rely upon, an Officer’s Certificate of the
Company (unless other evidence in respect thereof be herein specifically
prescribed).

     

    (f)
Subject to Section 11.04, the Trustee or any agent of the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Securities
and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may
otherwise deal with the Company with the same rights it would have had if it
were not the Trustee or such agent.

     

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

     

    (h) Any
action taken by the Trustee pursuant to any provision hereof at the request or
with the consent of any Person who at the time is the Holder of any Security
shall be conclusive and binding in respect of such Security upon all future
Holders thereof or of any Security or Securities which may be issued for or in
lieu thereof in whole or in part, whether or not such Security shall have noted
thereon the fact that such request or consent had been made or
given.

     

    (i)
Subject to the provisions of Section 11.02, the Trustee may conclusively
rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond, debenture or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties.

     

    
      
        
        

      

      
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    (j)
Subject to the provisions of Section 11.02, the Trustee shall not be under
any obligation to exercise any of the rights or powers vested in it by this
Indenture at the request, order or direction of any of the Holders of the
Securities, pursuant to any provision of this Indenture, unless one or more of
the Holders of the Securities shall have offered to the Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities which
may be incurred by it therein or thereby.

     

    (k)
Subject to the provisions of Section 11.02, the Trustee shall not be liable
for any action taken or omitted by it in good faith and believed by it to be
authorized or within its discretion or within the rights or powers conferred
upon it by this Indenture.

     

    (l)
Subject to the provisions of Section 11.02, the Trustee shall not be deemed
to have knowledge or notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless the
Holders of not less than 25% of the Outstanding Securities notify the Trustee
thereof.

     

     (m)
Subject to the provisions of the first paragraph of Section 11.02, the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of Indebtedness or other paper or document, but the Trustee, may, but
shall not be required to, make further inquiry or investigation into such facts
or matters as it may see fit.

     

    (n) The
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities
hereunder.

     

    Section 11.02
Duties of
Trustee.

     

    (a) If
one or more of the Events of Default specified in Section 7.01 with respect
to the Securities of any series shall have happened, then, during the
continuance thereof, the Trustee shall, with respect to such Securities,
exercise such of the rights and powers vested in it by this Indenture, and shall
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person’s
own affairs.

     

    (b) None
of the provisions of this Indenture shall be construed as relieving the Trustee
from liability for its own negligent action, its own negligent action, negligent
failure to act, or its own willful misconduct, except that, anything in this
Indenture contained to the contrary notwithstanding,

     

    (i)
unless and until an Event of Default specified in Section 7.01 with respect
to the Securities of any series shall have happened which at the time is
continuing,

     

    (A) the
Trustee undertakes to perform such duties and only such duties with respect to
the Securities of that series as are specifically set out in this Indenture, and
no implied covenants or obligations shall be read into this Indenture against
the Trustee, whose duties and obligations shall be determined solely by the
express provisions of this Indenture; and

     

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

     

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

     

    (iii) the
Trustee shall not be liable to any Holder of Securities or to any other Person
with respect to any action taken or omitted to be taken by it in good faith, in
accordance with the direction
of Securityholders given as provided in Section 7.06, relating to the time,
method and place of conducting any proceeding for any remedy available to it or
exercising any trust or power conferred upon it by this Indenture.

     

    
      
        
        

      

      
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    (c) None
of the provisions of this Indenture shall require the Trustee to expend or risk
its own funds or otherwise to incur any financial liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

     

    (d)
Whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to
the Trustee shall be subject to the provisions of this
Section 11.02.

     

    Section 11.03
Notice of
Defaults. Within 90 days after the occurrence thereof, and if known to
the Trustee, the Trustee shall give to the Holders of the Securities of a series
notice of each Default or Event of Default with respect to the Securities of
such series known to the Trustee, by transmitting such notice to Holders at
their addresses as the same shall then appear on the Register of the Company,
unless such Default shall have been cured or waived before the giving of such
notice (the term “Default”
being hereby defined to be the events specified in Section 7.01, which are,
or after notice or lapse of time or both would become, Events of Default as
defined in said Section). Except in the case of a Default or Event of Default in
payment of the principal of, premium, if any, or interest on any of the
Securities of such series when and as the same shall become payable, or to make
any sinking fund payment as to Securities of the same series, the Trustee shall
be protected in withholding such notice, if and so long as a Responsible Officer
or Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders of the Securities
of such series.

     

    Section 11.04
Eligibility;
Disqualification.

     

    (a) The
Trustee shall at all times satisfy the requirements of TIA Section 310(a).
The Trustee shall have a combined capital and surplus of at least $50 million as
set forth in its most recent published annual report of condition, and shall
have a Corporate Trust Office. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 11.04, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article.

     

    (b) The
Trustee shall comply with TIA Section 310(b); provided, however, that there
shall be excluded from the operation of TIA Section 310(b)(i) any indenture
or indentures under which other securities or certificates of interest or
participation in other securities of the Company are outstanding if the
requirements for such exclusion set forth in TIA Section 310(b)(i) are met.
If the Trustee has or shall acquire a conflicting interest within the meaning of
Section 310(b) of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by,
and subject to the provisions of, the Trust Indenture Act and this Indenture. If
Section 310(b) of the Trust Indenture Act is amended any time after the
date of this Indenture to change the circumstances under which a Trustee shall
be deemed to have a conflicting interest with respect to the Securities of any
series or to change any of the definitions in connection therewith, this
Section 11.04 shall be automatically amended to incorporate such
changes.

     

    Section 11.05
Registration and
Notice; Removal. The Trustee, or any successor to it hereafter appointed,
may at any time resign and be discharged of the trusts hereby created with
respect to any one or more or all series of Securities by giving to the Company
notice in writing. Such resignation shall take effect upon the appointment of a
successor Trustee and the acceptance of such appointment by such successor
Trustee. Any Trustee hereunder may be removed with respect to any series of
Securities at any time by the filing with such Trustee and the delivery to the
Company of an instrument or instruments in writing signed by the Holders of a
majority in principal amount of the Securities of such series then Outstanding,
specifying such removal and the date when it shall become
effective.

     

    
      
        
        

      

      
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    If at any
time:

     

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

     

    (2) the
Trustee shall cease to be eligible under Section 11.04 and shall fail to
resign after written request therefor by the Company or by any Holder who has
been a bona fide Holder of a Security for at least six months, or

     

    (3) the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or
any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, (i) the Company by written notice to
the Trustee may remove the Trustee and appoint a successor Trustee with respect
to all Securities, or (ii) subject to TIA Section 315(e), any
Securityholder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee with respect to
all Securities and the appointment of a successor Trustee or
Trustees.

     

    Upon its
resignation or removal, any Trustee shall be entitled to the payment of
reasonable compensation for the services rendered hereunder by such Trustee and
to the payment of all reasonable expenses incurred hereunder and all moneys then
due to it hereunder. The Trustee’s rights to indemnification provided in
Section 11.01(a) shall survive its resignation or removal.

     

    Section 11.06
Successor Trustee by
Appointment.

     

    (a) In
case at any time the Trustee shall resign, or shall be removed (unless the
Trustee shall be removed as provided in Section 11.04(b), in which event
the vacancy shall be filled as provided in said subdivision), or shall become
incapable of acting, or shall be adjudged bankrupt or insolvent, or if a
receiver of the Trustee or of its property shall be appointed, or if 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 with
respect to the Securities of one or more series, a successor Trustee with
respect to the Securities of that or those series (it being understood that any
such successor Trustee may be appointed with respect to the Securities of one or
more or all of such series and that at any time there shall be only one Trustee
with respect to the Securities of any series) may be appointed by the Holders of
a majority in principal amount of the Securities of that or those series then
Outstanding, by an instrument or instruments in writing signed in duplicate by
such Holders and filed, one original thereof with the Company and the other with
the successor Trustee; but, until a successor Trustee shall have been so
appointed by the Holders of Securities of that or those series as herein
authorized, the Company, or, in case all or substantially all the assets of the
Company shall be in the possession of one or more custodians or receivers
lawfully appointed, or of trustees in bankruptcy or reorganization proceedings
(including a trustee or trustees appointed under the provisions of the federal
bankruptcy laws, as now or hereafter constituted), or of assignees for the
benefit of creditors, such receivers, custodians, trustees or assignees, as the
case may be, by an instrument in writing, shall appoint a successor Trustee with
respect to the Securities of such series. Subject
to the provisions of Sections 11.04 and 11.05, upon the appointment as aforesaid
of a successor Trustee with respect to the Securities of any series, the Trustee
with respect to the Securities of such series shall cease to be Trustee
hereunder. After any such appointment other than by the Holders of Securities of
that or those series, the Person making such appointment shall forthwith cause
notice thereof to be mailed to the Holders of Securities of such series at their
addresses as the same shall then appear on the Register of the Company but any
successor Trustee with respect to the Securities of such series so appointed
shall, immediately and without further act, be superseded by a successor Trustee
appointed by the Holders of Securities of such series in the manner above
prescribed, if such appointment be made prior to the expiration of one year from
the date of the mailing of such notice by the Company, or by such receivers,
trustees or assignees.

     

    
      
        
        

      

      
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    (b) If
any Trustee with respect to the Securities of one or more series shall resign or
be removed and a successor Trustee shall not have been appointed by the Company
or by the Holders of the Securities of such series or, if any successor Trustee
so appointed shall not have accepted its appointment within 30 days after such
appointment shall have been made, the resigning Trustee at the expense of the
Company may apply to any court of competent jurisdiction for the appointment of
a successor Trustee. If in any other case a successor Trustee shall not be
appointed pursuant to the foregoing provisions of this Section 11.06 within
three months after such appointment might have been made hereunder, the Holder
of any Security of the applicable series or any retiring Trustee at the expense
of the Company may apply to any court of competent jurisdiction to appoint a
successor Trustee. Such court may thereupon, in any such case, after such
notice, if any, as such court may deem proper and prescribe, appoint a successor
Trustee.

     

    (c) Any
successor Trustee appointed hereunder with respect to the Securities of one or
more series shall execute, acknowledge and deliver to its predecessor Trustee
and to the Company, or to the receivers, trustees, assignees or court appointing
it, as the case may be, an instrument accepting such appointment hereunder, and
thereupon such successor Trustee, without any further act, deed or conveyance,
shall become vested with all the authority, rights, powers, trusts, immunities,
duties and obligations with respect to such series of such predecessor Trustee
with like effect as if originally named as Trustee hereunder, and such
predecessor Trustee, upon payment of its charges and disbursements then unpaid,
shall thereupon become obligated to pay over, and such successor Trustee shall
be entitled to receive, all moneys and properties held by such predecessor
Trustee as Trustee hereunder, subject nevertheless to its lien provided for in
Section 11.01(a). Nevertheless, on the written request of the Company or of
the successor Trustee or of the Holders of at least 10% in principal amount of
the Securities of such series then Outstanding, such predecessor Trustee, upon
payment of its said charges and disbursements, shall execute and deliver an
instrument transferring to such successor Trustee upon the trusts herein
expressed all the rights, powers and trusts of such predecessor Trustee and
shall assign, transfer and deliver to the successor Trustee all moneys and
properties held by such predecessor Trustee, subject nevertheless to its lien
provided for in Section 11.01(a); and, upon request of any such successor
Trustee and the Company shall make, execute, acknowledge and deliver any and all
instruments in writing for more fully and effectually vesting in and confirming
to such successor Trustee all such authority, rights, powers, trusts,
immunities, duties and obligations.

     

    Section 11.07
Successor Trustee by
Merger. Any Person into which the Trustee or any successor to it in the
trusts created by this Indenture shall be merged or converted, or any Person
with which it or any successor to it shall be consolidated, or any Person
resulting from any merger, conversion or consolidation to which the Trustee or
any such successor to it shall be a party, or any Person to which the Trustee or
any successor to it shall sell or otherwise transfer all or substantially all of
the corporate trust business of the Trustee, shall be the successor Trustee
under this Indenture without the execution or filing of any paper or any further
act on the part of any of the parties hereto; provided that such Person shall be
otherwise qualified and eligible under this Article. In case at the time such
successor to the Trustee shall succeed to the trusts created by this Indenture
with respect to one or more series of Securities, any of such Securities shall
have been authenticated but not delivered by the Trustee then in office, any
successor to such 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 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 certificates shall have the full force which it is anywhere in
the Securities or in this Indenture provided that the certificate of the Trustee
shall have; provided, however, that the right to adopt the certificate of
authentication of any predecessor Trustee or authenticate Securities in the name
of any predecessor Trustee shall apply only to its successor or successors by
merger, conversion or consolidation.

     

    Section 11.08
Right to Rely on
Officer’s Certificate. Subject to Section 11.02, and subject to the
provisions of Section 16.01 with respect to the certificates required
thereby, whenever in the administration of the provisions of this Indenture the
Trustee shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering any action hereunder, such matter
(unless other evidence in respect thereof be herein specifically prescribed)
may, in the absence of negligence, bad faith or willful misconduct on the part
of the Trustee, be deemed to be conclusively proved and established by an
Officer’s Certificate with respect thereto delivered to the Trustee, and such
Officer’s Certificate, in the absence of negligence, bad faith or willful
misconduct 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 this
Indenture upon the faith thereof.

     

    
      
        
        

      

      
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    Section 11.09
Appointment of
Authenticating Agent. The Trustee may appoint an agent (the “Authenticating
Agent”) reasonably acceptable to the Company to authenticate the
Securities, and the Trustee shall give written notice of such appointment to all
Holders of Securities of the series with respect to which such Authenticating
Agent will serve. Unless limited by the terms of such appointment, any such
Authenticating Agent may authenticate Securities whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by the Authenticating Agent. Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for
all purposes as if authenticated by the Trustee hereunder.

     

    Each
Authenticating Agent shall at all times be a corporation organized and doing
business and in good standing under the laws of the United States, any State
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by Federal or State
authority. If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Article XI, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time an Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Article XI, it shall resign immediately in the manner and
with the effect specified in this Article XI.

     

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

    

    An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Company. The Trustee may at any time terminate the agency
of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 11.09, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give
written notice of such appointment to all Holders of Securities of the series
with respect to which such Authenticating Agent will serve. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder, with
like effect as if originally named as an Authenticating Agent. No successor
Authenticating Agent shall be appointed unless eligible under the provisions of
this Section 11.09.

     

    The
Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 11.09, and the Trustee
shall be entitled to be reimbursed for such payments, subject to the provisions
of Section 11.01.

     

    Section 11.10
Communications by
Securityholders with Other Securityholders. Holders of Securities may
communicate pursuant to Section 312(b) of the Trust Indenture Act with
other Holders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of Section 312(c) of the Trust Indenture Act with respect to
such communications.

     

    
      Section
11.11 Preferential
Collection of Claims Against Company. The Trustee shall comply with
Section 311(a) of the Trust Indenture Act, excluding any creditor relationship
listed 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 indicated. 

       

    

    ARTICLE
XII

     

    SATISFACTION AND DISCHARGE;
DEFEASANCE

     

    Section 12.01
Applicability of
Article. If, pursuant to Section 3.01, provision is made for the
defeasance of Securities of a series and if the Securities of such series are
denominated and payable only in U.S. Dollars (except as provided pursuant to
Section 3.01), then the provisions of this Article shall be applicable
except as otherwise specified pursuant to Section 3.01 for Securities of
such series. Defeasance provisions, if any, for Securities denominated in a
Foreign Currency may be specified pursuant to Section 3.01.

     

    
      
        
        

      

      
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    Section 12.02
Satisfaction and
Discharge of Indenture. This Indenture, with respect to the Securities of
any series (if all series issued under this Indenture are not to be affected),
shall, upon Company Order, cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of such Securities
herein expressly provided for and rights to receive payments of principal of and
premium, if any, and interest on such Securities) and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when,

     

    (a)
either:

     

    (i) all
Securities of such series theretofore authenticated and delivered (other than
(A) Securities that have been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 3.07 and (B) Securities for
whose payment money has theretofore been deposited in trust or segregated and
held in trust by the Company and thereafter repaid to the Company or discharged
from such trust, as provided in Section 6.03) have been delivered to the
Trustee for cancellation; or

     

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

    

    (A) have
become due and payable, or

     

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

     

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

     

    and in
the case of (A), (B) or (C) above, has deposited or caused to be
deposited with the Trustee or Paying Agent as trust funds in trust for the
purpose an amount in the Currency in which such Securities are denominated
(except as otherwise provided pursuant to Section 3.01) sufficient to pay
and discharge the entire Indebtedness on such Securities for principal and
premium, if any, and interest to the date of such deposit (in the case of
Securities that have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be; provided, however, in the event a petition
for relief under federal bankruptcy laws, as now or hereafter constituted, or
any other applicable federal or state bankruptcy, insolvency or other similar
law, is filed with respect to the Company within 91 days after the deposit and
the Trustee is required to return the moneys then on deposit with the Trustee to
the Company, the obligations of the Company under this Indenture with respect to
such Securities shall not be deemed terminated or discharged;

     

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

     

    (c) the
Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel each stating that all conditions precedent herein provided for relating
to the satisfaction and discharge of this Indenture with respect to such series
have been complied with. Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under
Section 11.01 and, if money shall have been deposited with the Trustee
pursuant to subclause (B) of clause (a)(i) of this Section, the obligations
of the Trustee under Section 12.06 and the last paragraph of
Section 6.03(e) shall survive.

     

    
      
        
        

      

      
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    Section 12.03
Defeasance upon
Deposit of Moneys or U.S. Government Obligations. At the Company’s
option, either (a) the Company shall be deemed to have been Discharged (as
defined below) from its obligations with respect to Securities of any series on
the first day after the applicable conditions set forth below have been
satisfied or (b) the Company shall cease to be under any obligation to
comply with any term, provision or condition set forth in Section 6.04 with
respect to Securities of any series (and, if so specified pursuant to
Section 3.01, any other restrictive covenant added for the benefit of such
series pursuant to Section 3.01) at any time after the applicable
conditions set forth below have been satisfied:

     

    (a) The
Company shall have deposited or caused to be deposited irrevocably with the
Trustee as trust funds in trust, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of the Securities of such series
(i) money in an amount, or (ii) U.S. Government Obligations (as
defined below) that through the payment of interest and principal in respect
thereof in accordance with their terms will provide, not later than one day
before the due date of any payment, money in an amount, or (iii) a
combination of (i) and (ii), sufficient to pay and discharge each
installment of principal (including any mandatory sinking fund payments) of and
premium, if any, and interest on, the Outstanding Securities of such series on
the dates such installments of interest or principal and premium are
due;

     

     (b)
No Default with respect to the Securities of such series shall have occurred and
be continuing on the date of such deposit (other than a Default resulting from
the borrowing of funds and the grant of any related liens to be applied to such
deposit); and

     

    (c) The
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that Holders of the Securities of such series will not recognize income, gain or
loss for U.S. federal income tax purposes as a result of the Company’s exercise
of its option under this Section and will be subject to federal income tax on
the same amounts and in the same manner and at the same times as would have been
the case if such action had not been exercised and, in the case of the
Securities of such series being Discharged accompanied by a ruling to that
effect received from or published by the Internal Revenue Service.

     

    “Discharged”
means that the Company shall be deemed to have paid and discharged the entire
Indebtedness represented by, and obligations under, the Securities of such
series and to have satisfied all the obligations under this Indenture relating
to the Securities of such series (and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same), except
(A) the rights of Holders of Securities of such series to receive, from the
trust fund described in clause (a) above, payment of the principal of and
premium, if any, and interest on such Securities when such payments are due,
(B) the Company’s obligations with respect to Securities of such series
under Sections 3.04, 3.06, 3.07, 6.02 and 12.06 and (C) the rights, powers,
trusts, duties and immunities of the Trustee hereunder.

     

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

     

    Section 12.04
Repayment to
Company. The Trustee and any Paying Agent shall promptly pay to the
Company (or to its designee) upon Company Order any excess moneys or U.S.
Government Obligations held by them at any time. The provisions of the last
paragraph of Section 6.03 shall apply to any money held by the Trustee or
any Paying Agent under this Article that remains unclaimed for two years after
the Maturity of any series of Securities for which money or U.S. Government
Obligations have been deposited pursuant to Section 12.03.

     

    Section 12.05
Indemnity for U.S.
Government Obligations. The Company shall pay and shall indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against the
deposited U.S. Government Obligations or the principal or interest received on
such U.S. Government Obligations.

     

    Section 12.06
Application of Trust
Money.

     

    (a)
Subject to any applicable abandoned property law, neither the Trustee nor any
other paying agent shall be required to pay interest on any moneys deposited
pursuant to the provisions of this Indenture, except such as it shall agree with
the Company in writing to pay thereon. Any moneys so deposited for the payment
of the principal of, or premium, if any, or interest on the Securities of any
series
and remaining unclaimed for two years after the date of the maturity of the
Securities of such series or the date fixed for the redemption of all the
Securities of such series at the time outstanding, as the case may be, shall be
repaid by the Trustee or such other paying agent to the Company upon its written
request and thereafter, anything in this Indenture to the contrary
notwithstanding, any rights of the Holders of Securities of such series in
respect of which such moneys shall have been deposited shall be enforceable only
against the Company, and all liability of the Trustee or such other paying agent
with respect to such moneys shall thereafter cease.

     

    
      
        
        

      

      
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    (b)
Subject to the provisions of the foregoing paragraph, any moneys which at any
time shall be deposited by the Company or on its behalf with the Trustee or any
other paying agent for the purpose of paying the principal of, premium, if any,
and interest on any of the Securities shall be and are hereby assigned,
transferred and set over to the Trustee or such other paying agent in trust for
the respective Holders of the Securities for the purpose for which such moneys
shall have been deposited; but such moneys need not be segregated from other
funds except to the extent required by law.

     

    Section 12.07
Deposits of Non-U.S.
Currencies. Notwithstanding the foregoing provisions of this Article, if
the Securities of any series are payable in a Currency other than U.S. Dollars,
the Currency or the nature of the government obligations to be deposited with
the Trustee or paying agent under the foregoing provisions of this Article shall
be as set forth in the Officer’s Certificate or established in the supplemental
indenture under which the Securities of such series are issued.

     

    ARTICLE
XIII

     

    IMMUNITY OF CERTAIN
PERSONS

     

    Section 13.01
No Personal
Liability. No recourse shall be had for the payment of the principal of,
or the premium, if any, or interest on, any Security or for any claim based
thereon or otherwise in respect thereof or of the Indebtedness represented
thereby, or upon any obligation, covenant or agreement of this Indenture,
against any incorporator, stockholder, officer or director, as such, past,
present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue
of any constitutional provision, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise; it being expressly agreed and
understood that this Indenture and the Securities are solely corporate
obligations, and that no personal liability whatsoever shall attach to, or be
incurred by, any incorporator, stockholder, officer or director, as such, past,
present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, because of the
incurring of the Indebtedness hereby authorized or under or by reason of any of
the obligations, covenants, promises or agreements contained in this Indenture
or in any of the Securities, or to be implied herefrom or therefrom, and that
all liability, if any, of that character against every such incorporator,
stockholder, officer and director is, by the acceptance of the Securities and as
a condition of, and as part of the consideration for, the execution of this
Indenture and the issue of the Securities expressly waived and
released.

     

    ARTICLE
XIV

     

    SUPPLEMENTAL
INDENTURES

     

    Section 14.01
Without Consent of
Securityholders. Except as otherwise provided as contemplated by
Section 3.01 with respect to any series of Securities, the Company and the
Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any one
or more of or all the following purposes:

     

    (a) to
add to the covenants and agreements of the Company, to be observed thereafter
and during the period, if any, in such supplemental indenture or indentures
expressed, and to add Events of Default, in each case for the protection or
benefit of the Holders of all or any series of the Securities (and if such
covenants, agreements and Events of Default are to be for the benefit of fewer
than all series of Securities, stating that such covenants, agreements and
Events of Default are expressly being included for the benefit of such series as
shall be identified therein), or to surrender any right or power herein
conferred upon the Company;

     

    
      
        
        

      

      
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     (b)
to delete or modify any Events of Default with respect to all or any series of
the Securities, the form and terms of which are being established pursuant to
such supplemental indenture as permitted in Section 3.01 (and, if any such
Event of Default is applicable to fewer than all such series of the Securities,
specifying the series to which such Event of Default is applicable), and to
specify the rights and remedies of the Trustee and the Holders of such
Securities in connection therewith;

     

    (c) to
add to or change any of the provisions of this Indenture to provide, change or
eliminate any restrictions on the payment of principal of or premium, if any, on
Securities; provided that any such action shall not adversely affect the
interests of the Holders of Securities of any series in any material
respect;

     

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

     

    (e) to
evidence the succession of another corporation to the Company, or successive
successions, and the assumption by such successor of the covenants and
obligations of the Company contained in the Securities of one or more series and
in this Indenture or any supplemental indenture;

     

    (f) to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to one or more series of Securities and to add to or change
any of the provisions of this Indenture as shall be necessary for or facilitate
the administration of the trusts hereunder by more than one Trustee, pursuant to
the requirements of Section 11.06(c);

     

    (g) to
secure any series of Securities;

     

    (h) to
evidence any changes to this Indenture pursuant to Sections 11.05, 11.06 or
11.07 hereof as permitted by the terms thereof;

     

    (i) to
cure or reform any ambiguity mistake, manifest error, omission, defect or
inconsistency, or to conform the text of any provision herein or in any
indenture supplemental hereto to any description thereof in the applicable
section of a prospectus, prospectus supplement or other offering document that
was intended to be a verbatim recitation of a provision of this Indenture of any
indenture supplemental hereto;

     

    (j) to
add to or change or eliminate any provision of this Indenture as shall be
necessary or desirable in accordance with any amendments to the Trust Indenture
Act;

     

     (k) to
make any change in any series of Securities that does not adversely affect in
any material respect the interests of the Holders of such
Securities; 

     

     (l) to
provide for uncertificated securities in addition to certificated
securities; 

     

     (m) to
supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of
Securities; provided that any such action shall not adversely affect the
interests of the Holders of Securities of such series or any other series of
Securities; 

     

     (n) to
prohibit the authentication and delivery of additional series of Securities;
or 

     

     (o) to
establish the form and terms of Securities of any series as permitted in
Section 3.01, or to authorize the issuance of additional Securities of a
series previously authorized or to add to the conditions, limitations or
restrictions on the authorized amount, terms or purposes of issue,
authentication or delivery of the Securities of any series, as herein set forth,
or other conditions, limitations or restrictions thereafter to be
observed. 

     

    
      
        
        

      

      
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    Subject
to the provisions of Section 14.03, the Trustee is authorized to join with
the Company in the execution of any such supplemental indenture, to make the
further agreements and stipulations which may be therein contained and to accept
the conveyance, transfer, assignment, mortgage or pledge of any property or
assets thereunder.

     

    Any
supplemental indenture authorized by the provisions of this Section 14.01
may be executed by the Company and the Trustee without the consent of the
Holders of any of the Securities at the time Outstanding, notwithstanding any of
the provisions of Section 14.02.

     

    Section 14.02
With Consent of
Securityholders; Limitations.

     

    (a) With
the consent of the Holders (evidenced as provided in Article VIII) of a majority
in aggregate principal amount of the Outstanding Securities of each series
affected by such supplemental indenture voting separately, the Company 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 provisions of this Indenture or of
modifying in any manner the rights of the Holders of the Securities of such
series to be affected; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Security of each
such series affected thereby,

     

    (i)
extend the Stated Maturity of the principal of, or any installment of interest
on, any Security, or reduce the principal amount thereof or the interest thereon
or any premium payable upon redemption thereof, or extend the Stated Maturity
of, or change the Currency in which the principal of and premium, if any, or
interest on such Security is denominated or payable, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable
upon a declaration of acceleration of the Maturity thereof pursuant to
Section 7.02, or impair the right to institute suit for the enforcement of
any payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date), or materially adversely affect the
economic terms of any right to convert or exchange any Security as may be
provided pursuant to Section 3.01; or

     

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

     

    (iii)
modify any of the provisions of this Section, Section 7.06 or
Section 6.06, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Outstanding Security affected thereby;
provided, however, that this clause shall not be deemed to require the consent
of any Holder with respect to changes in the references to “the Trustee” and concomitant changes in this
Section and Section 6.06, or the deletion of this proviso, in accordance
with the requirements of Sections 11.06 and 14.01(f); or

     

    (iv)
modify, without the written consent of the Trustee, the rights, duties or
immunities of the Trustee.

     

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

     

    (c) It
shall not be necessary for the consent of the Securityholders under this
Section 14.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.

     

    (d) The
Company may set a record date for purposes of determining the identity of the
Holders of each series of Securities entitled to give a written consent or waive
compliance by the Company as authorized or permitted by this Section. Such
record date shall not be more than 30 days prior to the first solicitation of
such consent or waiver or the date of the most recent list of Holders furnished
to the Trustee prior to such solicitation pursuant to Section 312 of the
Trust Indenture Act.

     

    
      
        
        

      

      
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    (e)
Promptly after the execution by the Company and the Trustee of any supplemental
indenture pursuant to the provisions of this Section 14.02, the Company
shall mail a notice, setting forth in general terms the substance of such
supplemental indenture, to the Holders of Securities at their addresses as the
same shall then appear in the Register of the Company. Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental
indenture.

    

    Section 14.03
Trustee
Protected. Upon the request of the Company, accompanied by the Officer’s
Certificate and Opinion of Counsel required by Section 16.01 stating that
the execution of such supplemental indenture is authorized or permitted by this
Indenture, and evidence reasonably satisfactory to the Trustee of consent of the
Holders if the supplemental indenture is to be executed pursuant to
Section 14.02, the Trustee shall join with the Company in the execution of
said supplemental indenture unless said supplemental indenture affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise, in
which case the Trustee may in its discretion, but shall not be obligated to,
enter into said supplemental indenture. The Trustee shall be fully protected in
relying upon such Officer’s Certificate and an Opinion of Counsel.

    

    Section 14.04
Effect of Execution of
Supplemental Indenture. Upon the execution of any supplemental indenture
pursuant to the provisions of this Article XIV, this Indenture shall be deemed
to be modified and amended in accordance therewith and, except as herein
otherwise expressly provided, the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the
Company and the Holders of all of the Securities or of the Securities of any
series affected, as the case may be, shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

     

    Section 14.05
Notation on or
Exchange of Securities. Securities of any series authenticated and
delivered after the execution of any supplemental indenture pursuant to the
provisions of this Article may bear a notation in the form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Trustee shall so determine, new Securities so modified as to
conform, in the opinion of the Trustee and the Board of Directors of the
Company, to any modification of this Indenture contained in any such
supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for the Securities then
Outstanding in equal aggregate principal amounts, and such exchange shall be
made without cost to the Holders of the Securities.

     

    Section 14.06
Conformity with
TIA. Every supplemental indenture executed pursuant to the provisions of
this Article shall conform to the requirements of the Trust Indenture Act as
then in effect.

     

    ARTICLE
XV

     

    SUBORDINATION OF
SECURITIES

     

    Section 15.01
Agreement to
Subordinate. In the event a series of Securities is designated as
subordinated pursuant to Section 3.01, and except as otherwise provided in
a Company Order or in one or more indentures supplemental hereto, the Company,
for itself, its successors and assigns, covenants and agrees, and each Holder of
Securities of such series by his, her or its acceptance thereof, likewise
covenants and agrees, that the payment of the principal of (and premium, if any)
and interest, if any, on each and all of the Securities of such series is hereby
expressly subordinated, to the extent and in the manner hereinafter set forth,
in right of payment to the prior payment in full of all Senior Indebtedness. In
the event a series of Securities is not designated as subordinated pursuant to
Section 3.01(s), this Article XV shall have no effect upon the
Securities.

     

    
      
        
        

      

      
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    Section 15.02
Distribution on
Dissolution, Liquidation and Reorganization; Subrogation of Securities.
Subject to Section 15.01, upon any distribution of assets of the Company
upon any dissolution, winding up, liquidation or reorganization of the Company,
whether in bankruptcy, insolvency, reorganization or receivership proceedings or
upon an assignment for the benefit of creditors or any other marshalling of the
assets and liabilities of the Company or otherwise (subject to the power of a
court of competent jurisdiction to make other equitable provision reflecting the
rights conferred in this Indenture upon the Senior Indebtedness and the holders
thereof with respect to the Securities and the holders thereof by a lawful plan
of reorganization under applicable bankruptcy law):

     

    (a) the
holders of all Senior Indebtedness shall be entitled to receive payment in full
of the principal thereof (and premium, if any) and interest due thereon before
the Holders of the Securities are entitled to receive any payment upon the
principal (or premium, if any) or interest, if any, on Indebtedness evidenced by
the Securities; and

    

    (b) any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the Holders of the Securities
or the Trustee would be entitled except for the provisions of this Article XV
shall be paid by the liquidation trustee or agent or other Person making such
payment or distribution, whether a trustee in bankruptcy, a receiver or
liquidating trustee or otherwise, directly to the holders of Senior Indebtedness
or their representative or representatives or to the trustee or trustees under
any indenture under which any instruments evidencing any of such Senior
Indebtedness may have been issued, ratably according to the aggregate amounts
remaining unpaid on account of the principal of (and premium, if any) and
interest on the Senior Indebtedness held or represented by each, to the extent
necessary to make payment in full of all Senior Indebtedness remaining unpaid,
after giving effect to any concurrent payment or distribution to the holders of
such Senior Indebtedness; and

     

    (c) in
the event that, notwithstanding the foregoing, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities prohibited by the foregoing, shall be received by the Trustee or the
Holders of the Securities before all Senior Indebtedness is paid in full, such
payment or distribution shall be paid over, upon written notice to a Responsible
Officer of the Trustee, to the holder of such Senior Indebtedness or his, her or
its representative or representatives or to the trustee or trustees under any
indenture under which any instrument evidencing any of such Senior Indebtedness
may have been issued, ratably as aforesaid, as calculated by the Company, for
application to payment of all Senior Indebtedness remaining unpaid until all
such Senior Indebtedness shall have been paid in full, after giving effect to
any concurrent payment or distribution to the holders of such Senior
Indebtedness.

     

    (d)
Subject to the payment in full of all Senior Indebtedness, the Holders of the
Securities shall be subrogated to the rights of the holders of Senior
Indebtedness (to the extent that distributions otherwise payable to such holder
have been applied to the payment of Senior Indebtedness) to receive payments or
distributions of cash, property or securities of the Company applicable to
Senior Indebtedness until the principal of (and premium, if any) and interest,
if any, on the Securities shall be paid in full and no such payments or
distributions to the Holders of the Securities of cash, property or securities
otherwise distributable to the holders of Senior Indebtedness shall, as between
the Company, its creditors other than the holders of Senior Indebtedness, and
the Holders of the Securities be deemed to be a payment by the Company to or on
account of the Securities. It is understood that the provisions of this Article
XV are and are intended solely for the purpose of defining the relative rights
of the Holders of the Securities, on the one hand, and the holders of the Senior
Indebtedness, on the other hand. Nothing contained in this Article XV or
elsewhere in this Indenture or in the Securities is intended to or shall impair,
as between the Company, its creditors other than the holders of Senior
Indebtedness, and the Holders of the Securities, the obligation of the Company,
which is unconditional and absolute, to pay to the Holders of the Securities the
principal of (and premium, if any) and interest, if any, on the Securities as
and when the same shall become due and payable in accordance with their terms,
or to affect the relative rights of the Holders of the Securities and creditors
of the Company other than the holders of Senior Indebtedness, nor shall anything
herein or in the Securities prevent the Trustee or the Holder of any Security
from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article XV of
the holders of Senior Indebtedness in respect of cash, property or securities of
the Company received upon the exercise of any such remedy. Upon any payment or
distribution of assets of the Company referred to in this Article XV, the
Trustee, subject to the provisions of Section 15.05, shall be entitled to
conclusively rely upon a certificate of the liquidating trustee or agent or
other person making any distribution to the Trustee for the purpose of
ascertaining the Persons entitled to participate in such distribution, the
holders of Senior Indebtedness and other indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereof
and all other facts pertinent thereto or to this Article XV.

     

    
      
        
        

      

      
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    Section 15.03
No Payment on
Securities in Event of Default on Senior Indebtedness. Subject to
Section 15.01, no payment by the Company on account of principal (or
premium, if any), sinking funds or interest, if any, on the Securities shall be
made at anytime if: (i) a default on Senior Indebtedness exists that
permits the holders of such Senior Indebtedness to accelerate its maturity and
(ii) the default is the subject of judicial proceedings or the Company has
received notice of such default. The Company may resume payments on the
Securities when full payment of amounts then due for principal (premium, if
any), sinking funds and interest on Senior Indebtedness has been made or duly
provided for in money or money’s worth.

     

    In the
event that, notwithstanding the foregoing, any payment shall be received by the
Trustee when such payment is prohibited by the preceding paragraph of this
Section 15.03, such payment shall be held in trust for the benefit of, and
shall be paid over or delivered to, the holders of such Senior Indebtedness or
their respective representatives, or to the trustee or trustees under any
indenture pursuant to which any of such Senior Indebtedness may have been
issued, as their respective interests may appear, as calculated by the Company,
but only to the extent that the holders of such Senior Indebtedness (or their
representative or representatives or a trustee) notify the Trustee in writing
within 90 days of such payment of the amounts then due and owing on such Senior
Indebtedness and only the amounts specified in such notice to the Trustee shall
be paid to the holders of such Senior Indebtedness.

     

    Section 15.04
Payments on Securities
Permitted. Subject to Section 15.01, nothing contained in this
Indenture or in any of the Securities shall (a) affect the obligation of
the Company to make, or prevent the Company from making, at any time except as
provided in Sections 15.02 and 15.03, payments of principal of (or premium, if
any) or interest, if any, on the Securities or (b) prevent the application
by the Trustee of any moneys or assets deposited with it hereunder to the
payment of or on account of the principal of (or premium, if any) or interest,
if any, on the Securities, unless a Responsible Officer of the Trustee shall
have received at its Corporate Trust Office written notice of any fact
prohibiting the making of such payment from the Company or from the holder of
any Senior Indebtedness or from the trustee for any such holder, together with
proof satisfactory to the Trustee of such holding of Senior Indebtedness or of
the authority of such trustee more than two Business Days prior to the date
fixed for such payment.

     

    Section 15.05
Authorization of
Securityholders to Trustee to Effect Subordination. Subject to
Section 15.01, each Holder of Securities by his acceptance thereof
authorizes and directs the Trustee on his, her or its behalf to take such action
as may be necessary or appropriate to effectuate the subordination as provided
in this Article XV and appoints the Trustee his attorney-in-fact for any and all
such purposes.

     

    Section 15.06
Notices to
Trustee. The Company shall give prompt written notice to a Responsible
Officer of the Trustee of any fact known to the Company that would prohibit the
making of any payment of monies or assets to or by the Trustee in respect of the
Securities of any series pursuant to the provisions of this Article XV. Subject
to Section 15.01, notwithstanding the provisions of this Article XV or any
other provisions of this Indenture, neither the Trustee nor any Paying Agent
(other than the Company) shall be charged with knowledge of the existence of any
Senior Indebtedness or of any fact which would prohibit the making of any
payment of moneys or assets to or by the Trustee or such Paying Agent, unless
and until a Responsible Officer of the Trustee or such Paying Agent shall have
received (in the case of a Responsible Officer of the Trustee, at the Corporate
Trust Office of the Trustee) written notice thereof from the Company or from the
holder of any Senior Indebtedness or from the trustee for any such holder,
together with proof satisfactory to the Trustee of such holding of Senior
Indebtedness or of the authority of such trustee and, prior to the receipt of
any such written notice, the Trustee shall be entitled in all respects
conclusively to presume that no such facts exist; provided, however, that if at
least two Business Days prior to the date upon which by the terms hereof any
such moneys or assets may become payable for any purpose (including, without
limitation, the payment of either the principal (or premium, if any) or
interest, if any, on any Security) a Responsible Officer of the Trustee shall
not have received with respect to such moneys or assets the notice provided for
in this Section 15.06, then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such
moneys or assets and to apply the same to the purpose for which they were
received, and shall not be affected by any notice to the contrary which may be
received by it within two Business Days prior to such date. The Trustee shall be
entitled to rely on the delivery to it of a written notice by a Person
representing himself to be a holder of Senior Indebtedness (or a trustee on
behalf of such holder) to establish that such a notice has been given by a
holder of Senior Indebtedness or a trustee on behalf of any such holder. In the
event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this
Article XV, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and any other facts pertinent to the rights of
such Person under this Article XV and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

     

    
      
        
        

      

      
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    Section 15.07
Trustee as Holder of
Senior Indebtedness. Subject to Section 15.01, the Trustee in its
individual capacity shall be entitled to all the rights set forth in this
Article XV in respect of any Senior Indebtedness at any time held by it to the
same extent as any other holder of Senior Indebtedness and nothing in this
Indenture shall be construed to deprive the Trustee of any of its rights as such
holder. Nothing in this Article XV shall apply to claims of, or payments to, the
Trustee under or pursuant to Sections 7.05 or 11.01.

     

    Section 15.08
Modifications of Terms
of Senior Indebtedness. Subject to Section 15.01, any renewal or
extension of the time of payment of any Senior Indebtedness or the exercise by
the holders of Senior Indebtedness of any of their rights under any instrument
creating or evidencing Senior Indebtedness, including, without limitation, the
waiver of default thereunder, may be made or done all without notice to or
assent from the Holders of the Securities or the Trustee. No compromise,
alteration, amendment, modification, extension, renewal or other change of, or
waiver, consent or other action in respect of, any liability or obligation under
or in respect of, or of any of the terms, covenants or conditions of any
indenture or other instrument under which any Senior Indebtedness is outstanding
or of such Senior Indebtedness, whether or not such release is in accordance
with the provisions of any applicable document, shall in any way alter or affect
any of the provisions of this Article XV or of the Securities relating to the
subordination thereof.

     

    Section 15.09
Reliance on Judicial
Order or Certificate of Liquidating Agent. Subject to Section 15.01,
upon any payment or distribution of assets of the Company referred to in this
Article XV, the Trustee and the Holders of the Securities shall be entitled to
conclusively rely upon any order or decree entered by any court of competent
jurisdiction in which such insolvency, bankruptcy, receivership, liquidation,
reorganization, dissolution, winding up or similar case or proceeding is
pending, or a certificate of the trustee in bankruptcy, liquidating trustee,
custodian, receiver, assignee for the benefit of creditors, agent or other
person making such payment or distribution, delivered to the Trustee or to the
Holders of Securities, for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of Senior Indebtedness
and other indebtedness of the Company, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article XV.

     

    Section 15.10
Satisfaction and
Discharge; Defeasance and Covenant Defeasance. Subject to
Section 15.01, amounts and U.S. Government Obligations deposited in trust
with the Trustee pursuant to and in accordance with Article XII and not, at the
time of such deposit, prohibited to be deposited under Sections 15.02 or 15.03
shall not be subject to this Article XV.

    

    Section 15.11
Trustee Not Fiduciary
for Holders of Senior Indebtedness. With respect to the holders of Senior
Indebtedness, the Trustee undertakes to perform or observe only such of its
covenants and obligations as are specifically set forth in this Article XV, and
no implied covenants or obligations with respect to the holders of Senior
Indebtedness shall be read into this Indenture against the Trustee. The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness. The Trustee shall not be liable to any such holder if it shall pay
over or distribute to or on behalf of Holders of Securities or the Company, or
any other Person, moneys or assets to which any holder of Senior Indebtedness
shall be entitled by virtue of this Article XV or otherwise.

     

    
      
        
        

      

      
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    ARTICLE
XVI

     

    MISCELLANEOUS
PROVISIONS

     

    Section 16.01
Certificates and
Opinions as to Conditions Precedent.

     

    (a) Upon
any request or application by the Company to the Trustee to take any action
under any of the provisions of this Indenture, the Company shall furnish to the
Trustee an Officer’s Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent have been complied with, except that in
the case of any such application or demand as to which the furnishing of such
document is specifically required by any provision of this Indenture relating to
such particular application or demand, no additional certificate or opinion need
be furnished.

     

    (b) Each
certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant provided for in
this Indenture (other than the certificates provided pursuant to
Section 6.05 of this Indenture) shall include (i) a statement that the
Person giving such certificate or opinion has read such covenant or condition;
(ii) 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; (iii) a statement that, in the view or
opinion of such Person, he or she has made such examination or investigation as
is necessary to enable such Person to express an informed view or opinion as to
whether or not such covenant or condition has been complied with; and
(iv) a statement as to whether or not, in the view or opinion of such
Person, such condition or covenant has been complied with.

     

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

     

    (d) Any
certificate, statement or opinion of an officer of the Company or of counsel to
the Company 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, unless such officer or
counsel, as the case may be, knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to the
accounting matters upon which his or her certificate, statement or opinion may
be based are erroneous. Any certificate or opinion of any firm of independent
registered public accountants filed with the Trustee shall contain a statement
that such firm is independent.

     

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

     

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

     

    
      
        
        

      

      
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    Section 16.02
Trust Indenture Act
Controls. If and to the extent that any provision of this Indenture
limits, qualifies or conflicts with the duties imposed by, or another provision
included in this Indenture which is required to be included in this Indenture by
any of the provisions of Sections 310 to 318, inclusive, of the Trust Indenture
Act, such imposed duties or incorporated provision shall control.

     

    Section 16.03
Notices to the Company
and Trustee. Any notice or demand authorized by this Indenture to be made
upon, given or furnished to, or filed with, the Company or the Trustee shall be
sufficiently made, given, furnished or filed for all purposes if it shall be
mailed, delivered or telefaxed to:

     

    (a) the
Company, at Kun Tai
International Mansion Building, Suite 2315, Yi No. 12, Chaoyangmenwai Avenue,
Chaoyang District, Beijing, China 100020, Attention: Chief Financial
Officer, Facsimile No.:                     ,
or at such other address or facsimile number as may have been furnished in
writing to the Trustee by the Company.

     

    (b) the
Trustee, at the Corporate Trust Office of the Trustee, Attention: Trust
Administrator.

     

    Any such
notice, demand or other document shall be in the English language.

     

    Section 16.04
Notices to
Securityholders; Waiver. Any notice required or permitted to be given to
Securityholders shall be sufficiently given (unless otherwise herein expressly
provided),

     

    (a) if to
Holders, if given in writing by first class mail, postage prepaid, to such
Holders at their addresses as the same shall appear on the Register of the
Company.

     

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

     

    (c) Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance on such
waiver. 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, and any notice that is mailed in
the manner herein provided shall be conclusively presumed to have been duly
given. In any case where notice to Holders is given by publication, any defect
in any notice so published as to any particular Holder shall not affect the
sufficiency of such notice with respect to other Holders, and any notice that is
published in the manner herein provided shall be conclusively presumed to have
been duly given.

     

    Section 16.05
Legal Holiday.
Unless otherwise specified pursuant to Section 3.01, in any case where any
Interest Payment Date, Redemption Date or Maturity of any Security of any series
shall not be a Business Day at any Place of Payment for the Securities of that
series, then payment of principal and premium, if any, or interest need not be
made at such Place of Payment on such date, but may be made on the next
succeeding Business Day at such Place of Payment with the same force and effect
as if made on such Interest Payment Date, Redemption Date or Maturity and no
interest shall accrue on such payment for the period from and after such
Interest Payment Date, Redemption Date or Maturity, as the case may be, to such
Business Day if such payment is made or duly provided for on such Business
Day.

     

    Section 16.06
Effects of Headings
and Table of Contents. The Article and Section headings herein and the
Table of Contents are for convenience only and shall not affect the construction
hereof.

     

    Section 16.07
Successors and
Assigns. All covenants and agreements in this Indenture by the parties
hereto shall bind their respective successors and assigns and inure to the
benefit of their permitted successors and assigns, whether so expressed or
not.

     

    Section 16.08
Separability
Clause. In case any provision in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

     

    
      
        
        

      

      
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    Section 16.09
Benefits of
Indenture. Nothing in this Indenture expressed and nothing that may be
implied from any of the provisions hereof is intended, or shall be construed, to
confer upon, or to give to, any Person or corporation other than the parties
hereto and their successors and the Holders of the Securities any benefit or any
right, remedy or claim under or by reason of this Indenture or any covenant,
condition, stipulation, promise or agreement hereof, and all covenants,
conditions, stipulations, promises and agreements in this Indenture contained
shall be for the sole and exclusive benefit of the parties hereto and their
successors and of the Holders of the Securities.

     

    Section 16.10
Counterparts
Originals. This Indenture may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same
instrument.

     

    Section 16.11
Governing Law; Waiver
of Trial by Jury. This Indenture and the Securities shall be deemed to be
contracts made under the law of the State of New York and for all purposes shall
be governed by and construed in accordance with the law of said State.

     

    EACH
PARTY HERETO, AND EACH HOLDER OF A SECURITY BY ACCEPTANCE THEREOF, HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS INDENTURE.

     

    [signature
page follows]

     

    
      
        
        

      

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

     

    
      	 
      	 
      	 
      	 
      	 
      
	
              GENERAL
      STEEL HOLDINGS, INC.,

              as
      Issuer

            
	 
      	 
      
	
              By:

            	 
      	 
      
	
              Name:

            	 
      
	
              Title:

            	 
      	 
      
	 
      	 
      
	 
      	 
      	
              ,

            
	
              as
      Trustee

            
	 
      	 
      
	
              By:

            	 
      	 
      
	
              Name:

            	 
      	 
      
	
              Title:

            	 
      	 
      

    

     

    
      
        
        

      

      
        53

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