Document:

Blueprint

Exhibit 4.06

 

 

 

 

Form of Indenture

 

 

 

PALATIN TECHNOLOGIES, INC.

 

ISSUER

 

and

 

______________________________________

 

INDENTURE TRUSTEE

 

INDENTURE

 

Dated as of __________, _____

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	

ARTICLE I DEFINITIONS AND INCORPORATION BY
REFERENCE  

	

3

	

Section
1.01

	

Definitions.

	

3

	

Section
1.02

	

Other Definitions.

	

7

	

Section
1.03

	

Incorporation by Reference of Trust Indenture Act.

	

7

	

Section
1.04

	

Rules of Construction.

	

8

	

ARTICLE II TILE SECURITIES  

	

8

	

Section
2.01

	

Issuable in Series.

	

8

	

Section
2.02

	

Establishment of Terms of Series of Securities.

	

8

	

Section
2.03

	

Execution and Authentication.

	

11

	

Section
2.04

	

Registrar and Paying Agent.

	

11

	

Section
2.05

	

Paying Agent to Hold Money in Trust.

	

12

	

Section
2.06

	

Holder Lists.

	

12

	

Section
2.07

	

Transfer and Exchange.

	

12

	

Section
2.08

	

Mutilated, Destroyed, Lost and Stolen Securities.

	

13

	

Section
2.09

	

Outstanding Securities.

	

13

	

Section
2.10

	

Treasury Securities.

	

14

	

Section
2.11

	

Temporary Securities.

	

14

	

Section
2.12

	

Cancellation.

	

14

	

Section
2.13

	

Defaulted Interest.

	

14

	

Section
2.14

	

Global Securities

	

14

	

ARTICLE III REDEMPTION  

	

16

	

Section
3.01

	

Notice to Trustee.

	

16

	

Section
3.02

	

Selection of Securities to be Redeemed.

	

16

	

Section
3.03

	

Notice of Redemption.

	

16

	

Section
3.04

	

Effect of Notice of Redemption.

	

17

	

Section
3.05

	

Deposit of Redemption Price.

	

17

	

Section
3.06

	

Securities Redeemed in Part.

	

17

	

ARTICLE IV COVENANTS  

	

17

	

Section
4.01

	

Payment of Principal and Interest.

	

17

	

Section
4.02

	

SEC Reports.

	

17

	

Section
4.03

	

Compliance Certificate.

	

17

	

Section
4.04

	

Stay, Extension and Usury Laws.

	

18

 

 

 

 

	

ARTICLE V SUCCESSORS  

	

18

	

Section
5.01

	

When Company May Merge, Etc.

	

18

	

Section
5.02

	

Successor Corporation Substituted.

	

18

	

ARTICLE VI DEFAULTS AND REMEDIES  

	

18

	

Section
6.01

	

Events of Default.

	

18

	

Section
6.02

	

Acceleration of Maturity; Rescission and Annulment.

	

20

	

Section
6.03

	

Collection of Indebtedness and Suits for Enforcement by
Trustee.

	

20

	

Section
6.04

	

Trustee May File Proofs of Claim.

	

21

	

Section
6.05

	

Trustee May Enforce Claims Without Possession of
Securities.

	

21

	

Section
6.06

	

Application of Money Collected.

	

21

	

Section
6.07

	

Limitation on Suits.

	

22

	

Section
6.08

	

Unconditional Right of Holders to Receive Principal and
Interest.

	

22

	

Section
6.09

	

Restoration of Rights and Remedies.

	

22

	

Section
6.10

	

Rights and Remedies Cumulative.

	

23

	

Section
6.11

	

Delay or Omission Not Waiver.

	

23

	

Section
6.12

	

Control by Holders.

	

23

	

Section
6.13

	

Waiver of Past Defaults.

	

23

	

Section
6.14

	

Undertaking for Costs.

	

24

	

ARTICLE VII TRUSTEE  

	

24

	

Section
7.01

	

Duties of Trustee.

	

24

	

Section
7.02

	

Rights of Trustee.

	

25

	

Section
7.03

	

Individual Rights of Trustee.

	

26

	

Section
7.04

	

Trustee’s Disclaimer.

	

26

	

Section
7.05

	

Notice of Defaults.

	

26

	

Section
7.06

	

Reports by Trustee to Holders.

	

27

	

Section
7.07

	

Compensation and Indemnity.

	

27

	

Section
7.08

	

Replacement of Trustee.

	

27

	

Section
7.09

	

Successor Trustee by Merger, etc.

	

28

	

Section
7.10

	

Eligibility; Disqualification.

	

28

	

Section
7.11

	

Preferential Collection of Claims Against Company.

	

28

	

ARTICLE VIII SATISFACTION AND DISCHARGE;
DEFEASANCE  

	

29

	

Section
8.01

	

Satisfaction and Discharge of Indenture.

	

29

	

Section
8.02

	

Application of Trust Funds; Indemnification.

	

29

	

Section
8.03

	

Legal Defeasance of Securities of any Series.

	

30

 

 

 

 

	

Section
8.04

	

Covenant Defeasance.

	

31

	

Section
8.05

	

Repayment to Company.

	

32

	

Section
8.06

	

Reinstatement.

	

33

	

ARTICLE IX AMENDMENTS AND WAIVERS  

	

33

	

Section
9.01

	

Without Consent of Holders.

	

33

	

Section
9.02

	

With Consent of Holders.

	

34

	

Section
9.03

	

Limitations.

	

34

	

Section
9.04

	

Compliance with Trust Indenture Act.

	

35

	

Section
9.05

	

Revocation and Effect of Consents.

	

35

	

Section
9.06

	

Notation on or Exchange of Securities.

	

35

	

Section
9.07

	

Trustee Protected.

	

35

	

ARTICLE X MISCELLANEOUS  

	

36

	

Section
10.01

	

Trust Indenture Act Controls.

	

36

	

Section
10.02

	

Notices.

	

36

	

Section
10.03

	

Communication by Holders with Other Holders.

	

36

	

Section
10.04

	

Certificate and Opinion as to Conditions Precedent.

	

37

	

Section
10.05

	

Statements Required in Certificate or Opinion.

	

37

	

Section
10.06

	

Rules by Trustee and Agents.

	

37

	

Section
10.07

	

Legal Holidays.

	

37

	

Section
10.08

	

No Recourse Against Others.

	

37

	

Section
10.09

	

Counterparts.

	

38

	

Section
10.10

	

Governing Laws.

	

38

	

Section
10.11

	

No Adverse Interpretation of Other Agreements.

	

38

	

Section
10.12

	

Successors.

	

38

	

Section
10.13

	

Severability.

	

38

	

Section
10.14

	

Table of Contents, Headings, Etc.

	

38

	

Section
10.15

	

Securities in a Foreign Currency.

	

38

	

Section
10.16

	

Judgment Currency.

	

39

	

ARTICLE XI SINKING FUNDS  

	

39

	

Section
11.01

	

Applicability of Article.

	

39

	

Section
11.02

	

Satisfaction of Sinking Fund Payments with Securities.

	

40

	

Section
11.03

	

Redemption of Securities for Sinking Fund.

	

40

 

 

 

 

 

 

 

Reconciliation and tie between the Trust Indenture Act of 1939 and
this Indenture

 

	

Section
310

	

(a)(1)

	

7.10

	
 

	

(a)(2)

	

7.10

	
 

	

(a)(3)

	

Not
Applicable

	
 

	

(a)(4)

	

Not
Applicable

	
 

	

(a)(5)

	

7.10

	
 

	

(b)

	

7.10

	

Section
311

	

(a)

	

7.11

	
 

	

(b)

	

7.11

	
 

	

(c)

	

Not
Applicable

	

Section
312

	

(a)

	

2.06

	
 

	

(b)

	

10.03

	
 

	

(c)

	

10.03

	

Section
313

	

(a)

	

7.06

	
 

	

(b)(1)

	

7.06

	
 

	

(b)(2)

	

7.06

	
 

	

(c)(1)

	

7.06

	
 

	

(d)

	

7.06

	

Section
314

	

(a)

	

4.02,10.05

	
 

	

(b)

	

Not
Applicable

	
 

	

(c)(1)

	

10.04

	
 

	

(c)(2)

	

10.04

	
 

	

(c)(3)

	

Not
Applicable

	
 

	

(d)

	

Not
Applicable

	
 

	

(e)

	

10.05

	
 

	

(f)

	

Not
Applicable

 

 

1

 

 

	

Section
315

	

(a)

	

7.01

	
 

	

(b)

	

7.05

	
 

	

(c)

	

7.01,
7.05, 7.07

	
 

	

(d)

	

7.01

	
 

	

(e)

	

6.14

	

Section
316

	

(a)

	

2.09

	
 

	

(a)(1)(a)

	

6.12

	
 

	

(a)(1)(b)

	

6.13

	
 

	

(b)

	

6.08

	

Section
317

	

(a)(1)

	

6.03

	
 

	

(a)(2)

	

6.04

	
 

	

(b)

	

2.05

	

Section
318

	

(a)

	

10.01

 

 

 

 

2

 

 

Indenture dated as
of           
between Palatin Technologies, Inc., a Delaware corporation
(“Company”),
and ____________________, a _______________________ corporation, as
trustee (“Trustee”).

 

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

 

ARTICLE I

DEFINITIONS AND
INCORPORATION BY REFERENCE

 

Section 1.01 Definitions.

 

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

 

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

 

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

 

“Applicable Procedures” means,
with respect to any transfer or transaction involving a Global
Security or beneficial interest therein, the rules and procedures
of DTC or any successor Depositary, in each case to the extent
applicable to such transaction and as in effect from time to
time.

 

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

 

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

 

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

 

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

 

 

3

 

 

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

 

“Business Day” means, unless
otherwise provided by Board Resolution, Officers’ Certificate
or supplemental indenture hereto for a particular Series, any day
except a Saturday, Sunday or a legal holiday in New York, New York
on which banking institutions are authorized or required by law,
regulation or executive order to close.

 

“Capital Interests” means any and
all shares, interests, participations, rights or other equivalents
(however designated) of capital stock, including, without
limitation, with respect to partnerships, partnership interests
(whether general or limited) and 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, such
partnership.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Discount Security” means any
Security that provides for an amount less than the stated principal
amount thereof to be due and payable upon declaration of
acceleration of the maturity thereof pursuant to Section
6.02.

 

“Dollars” and “$” means the currency of the
United States of America.

 

“DTC” means the Depository Trust
Company, a New York corporation.

 

 

4

 

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

 

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

 

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

 

“GAAP” means generally accepted
accounting principles promulgated by the Financial Accounting
Standards Board or by such other entity as the SEC may designate
for that purpose.

 

“Global Security” or
“Global
Securities” means a Security or Securities, as the
case may be, in the form established pursuant to Section 2.02
evidencing all or part of a Series of Securities, issued to the
Depository for such Series or its nominee, and registered in the
name of such Depository or nominee.

 

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

 

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

 

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

 

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

 

“Officer” means the Chief
Executive Officer, Chief Financial Officer, any Vice-President, the
Treasurer, the Secretary, any Assistant Treasurer or any Assistant
Secretary of the Company.

 

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

 

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

 

 

5

 

 

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

 

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

 

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

 

“SEC” means the United States
Securities and Exchange Commission.

 

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

 

“Series” or “Series of
Securities” means each series of debentures, notes or other
debt instruments of the Company created pursuant to Sections 2.01
and 2.02 hereof.

 

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

 

“Subsidiary” means, with respect
to any person, any corporation, association or other business
entity of which more than 50% of the total voting power of shares
of Capital Interests entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or
trustees thereof or, in the case of a partnership, more than 50% of
the partners’ Capital Interests (considering all
partners’ Capital Interests as a single class), is at the
time owned or controlled, directly or indirectly, by such person or
one or more of the other Subsidiaries of such person or combination
thereof.

 

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

 

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

 

 

6

 

 

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

 

Section 1.02 Other
Definitions.

 

	

TERM

	
 

	

DEFINED IN SECTION

	

“Bankruptcy Law”

	
 

	

6.01

	

“Custodian”

	
 

	

6.01

	

“Event of Default”

	
 

	

6.01

	

“Judgment Currency”

	
 

	

10.16

	

“Legal Holiday”

	
 

	

10.07

	

“mandatory sinking fund payment”

	
 

	

11.01

	

“Market Exchange Rate”

	
 

	

10.15

	

“New York Banking Day”

	
 

	

10.16

	

“optional sinking fund payment”

	
 

	

11.01

	

“Paying Agent”

	
 

	

2.04

	

“Registrar”

	
 

	

2.04

	

“Required Currency”

	
 

	

10.16

	

“Service Agent”

	
 

	

2.04

	

“successor person”

	
 

	

5.01

 

Section 1.03 Incorporation
by Reference of Trust Indenture Act.

 

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

 

“Commission” means the
SEC.

 

“indenture securities” means the
Securities.

 

“indenture security holder” means
a Holder.

 

“indenture to be qualified” means
this Indenture.

 

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

 

 

7

 

 

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

 

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

 

Section 1.04 Rules
of Construction.

 

Unless
the context otherwise requires:

 

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

 

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

 

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

 

(d) “or”
is not exclusive;

 

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

 

(f) provisions apply
to successive events and transactions.

 

ARTICLE II

THE
SECURITIES

 

Section 2.01 Issuable
in Series.

 

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

 

Section 2.02 Establishment
of Terms of Series of Securities.

 

  At or
prior to the issuance of any Securities within a Series, the
following shall be established (as to the Series generally, in the
case of Subsection 2.02(a) and either as to such Securities within
the Series or as to the Series generally in the case of Subsections
2.02(b) through 2.02(s) by or pursuant to a Board Resolution, and
set forth or determined in the manner provided in a Board
Resolution, supplemental indenture or an Officers’
Certificate:

 

 

8

 

 

(a) the form and title
of the Series (which shall distinguish the Securities of that
particular Series from the Securities of any other
Series);

 

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

 

(c) any limit upon the
aggregate principal amount of the Securities of the Series which
may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of
transfer of or in exchange for, or in lieu of other Securities of
the Series pursuant to Section 2.07, 2.08, 2.11, 3.06 or
9.06);

 

(d) the date or dates
on which the principal of the Securities of the Series is
payable;

 

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

 

(f) the place or
places where the principal of and interest, if any, on the
Securities of the Series shall be payable, where the 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 of such Series and this Indenture may be
served, and the method of such payment, if by wire transfer, mail
or other means;

 

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

 

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

 

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

 

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

 

(k) if other than the
principal amount thereof, the portion of the principal amount of
the Securities of the Series that shall be payable upon declaration
of acceleration of the maturity thereof pursuant to Section
6.02;

 

 

9

 

 

(l) the currency of
denomination of the Securities of the Series, which may be Dollars
or any Foreign Currency, and the agency or organization, if any,
responsible for overseeing such composite currency;

 

(m) the provisions, if
any, relating to any security provided for the Securities of the
Series;

 

(n) any addition to or
change in the Events of Default which applies to any Securities of
the Series and any change in the right of the Trustee or the
requisite Holders of such Securities to declare the principal
amount thereof due and payable pursuant to Section
6.02;

 

(o) any addition to or
change in the covenants set forth in Articles IV or V which applies
to Securities of the Series;

 

(p) the provisions, if
any, relating to conversion of any Securities of such Series,
including, if applicable, the securities into which the Securities
are convertible, the conversion price, the conversion period,
provisions as to whether conversion will be mandatory, at the
option of the Holders or at the option of the Company, the events
requiring an adjustment of the conversion price and provisions
affecting conversion if such Series of Securities are
redeemed;

 

(q) whether the
Securities of such Series will be senior debt securities or
subordinated debt securities and, if applicable, a description of
the subordination terms thereof;

 

(r) any depositaries,
interest rate calculation agents, exchange rate calculation agents
or other agents with respect to Securities of such Series if other
than those appointed herein; and

 

(s) any other terms of
the Securities of the Series (which may modify or delete any
provision of this Indenture insofar as it applies to such
Series).

 

All
Securities of any one Series need not be issued at the same time
and may be issued from time to time, consistent with the terms of
this Indenture, if so provided by or pursuant to a Board
Resolution, a supplemental indenture hereto or an Officers’
Certificate, and, unless otherwise provided in such Board
Resolution, a Series may be reopened, without the consent of the
Holders, for increases in the aggregate principal amount of such
Series and issuances of additional Securities of such
Series.

 

 

10

 

 

Section 2.03 Execution
and Authentication.

 

  Two
Officers shall sign the Securities for the Company by manual or
facsimile signature. If an Officer whose signature is on a Security
no longer holds that office at the time the Security is
authenticated, the Security shall nevertheless be valid. A Security
shall not be valid until authenticated by the manual signature of
the Trustee or an authenticating agent. The signature shall be
conclusive evidence that the Security has been authenticated under
this Indenture. The Trustee shall at any time, and from time to
time, authenticate Securities for original issue in the principal
amount provided in the Board Resolution, supplemental indenture
hereto or Officers’ Certificate, upon receipt by the Trustee
of a Company Order. Such Company Order may authorize authentication
and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which oral
instructions shall be promptly confirmed in writing. Each Security
shall be dated the date of its authentication unless otherwise
provided by a Board Resolution, a supplemental indenture hereto or
an Officers’ Certificate. The aggregate principal amount of
Securities of any Series outstanding at any time may not exceed any
limit placed upon the principal amount for such Series set forth in
the applicable Board Resolution, supplemental indenture hereto or
Officers’ Certificate delivered pursuant to Section 2.02,
except as provided in Section 2.02 or 2.08. Prior to the issuance
of Securities of any Series, the Trustee shall have received and,
subject to Section 7.02, shall be fully protected in relying on:
(a) the Board Resolution, supplemental indenture hereto or
Officers’ Certificate establishing the form of the Securities
of that Series or of Securities within that Series and the terms of
the Securities of that Series or of Securities within that Series,
(b) an Officers’ Certificate complying with Section 10.04 and
(c) an Opinion of Counsel complying with Section 10.04. The Trustee
shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by
counsel, determines that such action may not be taken lawfully; or
(b) if the Trustee’s board of directors or trustees,
executive committee or a trust committee of directors and/or
vice-presidents shall determine in good faith that such action
would expose the Trustee to personal liability to Holders of any
then outstanding Series of Securities. The Trustee may appoint an
authenticating agent acceptable to the Company to authenticate
Securities. An authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to
deal with the Company or an Affiliate of the Company.

 

Section 2.04 Registrar
and Paying Agent.

 

  The
Company shall maintain, with respect to each Series of Securities,
at the place or places specified with respect to such Series
pursuant to Section 2.02, an office or agency where Securities of
such Series may be presented or surrendered for payment
(“Paying
Agent”), where Securities of such Series may be
surrendered for registration of transfer or exchange
(“Registrar”)
and where notices and demands to or upon the Company in respect of
the Securities of such Series and this Indenture may be served
(“Service
Agent”). The Registrar shall keep a register with
respect to each Series of Securities and to their transfer and
exchange. The Company will give prompt written notice to the
Trustee of the name and address, and any change in the name or
address, of each Registrar, Paying Agent or Service Agent. If at
any time the Company shall fail to maintain any such required
Registrar, Paying Agent or Service Agent or shall fail to furnish
the Trustee with the name and address thereof, such presentations,
surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands. The Company may
also from time to time designate one or more co-registrars,
additional paying agents or additional service agents and may from
time to time rescind such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Company
of its obligations to maintain a Registrar, Paying Agent and
Service Agent in each place so specified pursuant to Section 2.02
for Securities of any Series for such purposes. The Company will
give prompt written notice to the Trustee of any such designation
or rescission and of any change in the name or address of any such
co-registrar, additional paying agent or additional service agent.
The term “Registrar” includes any co-registrar; the
term “Paying Agent” includes any additional paying
agent; and the term “Service Agent” includes any
additional service agent. The Company hereby appoints the Trustee
the initial Registrar, Paying Agent and Service Agent for each
Series unless another Registrar, Paying Agent or Service Agent, as
the case may be, is appointed prior to the time Securities of that
Series are first issued.

 

 

11

 

 

Section 2.05 Paying
Agent to Hold Money in Trust.

 

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

 

Section 2.06 Holder
Lists.

 

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

 

Section 2.07 Transfer
and Exchange.

 

  Where
Securities of a Series are presented to the Registrar or a
co-registrar with a request to register a transfer or to exchange
them for an equal principal amount of Securities of the same
Series, the Registrar shall register the transfer or make the
exchange if its requirements for such transactions are met. To
permit registrations of transfers and exchanges, the Trustee shall
authenticate Securities at the Registrar’s request. No
service charge shall be made for any registration of transfer or
exchange (except as otherwise expressly permitted herein), but the
Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection
therewith (other than any such transfer tax or similar governmental
charge payable upon exchanges pursuant to Section 2.11, 3.06 or
9.06). Neither the Company nor the Registrar shall be required (a)
to issue, register the transfer of or exchange Securities of any
Series for the period beginning at the opening of business fifteen
days immediately preceding the mailing of a notice of redemption of
Securities of that Series selected for redemption and ending at the
close of business on the day of such mailing, or (b) to register
the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion
being redeemed of any such Securities selected, called or being
called for redemption in part.

 

 

12

 

 

Section 2.08 Mutilated,
Destroyed, Lost and Stolen Securities.

 

(a) If any mutilated
Security is surrendered to the Trustee, the Company shall execute
and the Trustee shall authenticate and make available for delivery
in exchange therefor a new Security of the same Series and of like
tenor and principal amount and bearing a number not
contemporaneously outstanding. If there shall be delivered to the
Company and the Trustee (i) evidence to their satisfaction of the
destruction, loss or theft of any Security and (ii) such security
or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of
notice to the Company or the Trustee that such Security has been
acquired by a protected purchaser, the Company shall execute and,
upon its request, the Trustee shall authenticate and make available
for delivery, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same Series and of like tenor and
principal amount and bearing a number not contemporaneously
outstanding. In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security,
pay such Security.

 

(b) Upon the issuance
of any new Security under this Section, the Company may require the
payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected
therewith. Every new Security of any Series issued pursuant to this
Section in lieu of any destroyed, lost or stolen Security shall
constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that Series duly issued
hereunder. The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.

 

Section 2.09 Outstanding
Securities.

 

  The
Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those
delivered to it for cancellation, those reductions in the interest
on a Global Security effected by the Trustee in accordance with the
provisions hereof and those described in this Section as not
outstanding. If a Security is replaced pursuant to Section 2.08, it
ceases to be outstanding until the Trustee receives proof
satisfactory to it that the replaced Security is held by a
protected purchaser. If the Paying Agent (other than the Company, a
Subsidiary of the Company or an Affiliate of the Company) holds on
the Maturity of Securities of a Series money sufficient to pay such
Securities payable on that date, then on and after that date such
Securities of the Series cease to be outstanding and interest on
them ceases to accrue. A Security does not cease to be outstanding
because the Company or an Affiliate of the Company holds the
Security. In determining whether the Holders of the requisite
principal amount of outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver
hereunder, the principal amount of a Discount Security that shall
be deemed to be outstanding for such purposes shall be the amount
of the principal thereof that would be due and payable as of the
date of such determination upon a declaration of acceleration of
the Maturity thereof pursuant to Section 6.02.

 

 

13

 

 

Section 2.10 Treasury
Securities.

 

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

 

Section 2.11 Temporary
Securities.

 

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

 

Section 2.12 Cancellation.

 

  The
Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to
the Trustee any Securities surrendered to them for registration of
transfer, exchange or payment. The Trustee shall cancel all
Securities surrendered for registration of transfer, exchange,
payment, replacement or cancellation in accordance with its
customary procedures and deliver such canceled Securities to the
Company, unless the Company otherwise directs; provided that the
Trustee shall not be required to destroy Securities. The Company
may not issue new Securities to replace Securities that it has paid
or delivered to the Trustee for cancellation.

 

Section 2.13 Defaulted
Interest.

 

  If the
Company defaults in a payment of interest on a Series of
Securities, it shall pay the defaulted interest, plus, to the
extent permitted by law, any interest payable on the defaulted
interest, to the persons who are Holders of the Series on a
subsequent special record date. The Company shall fix the record
date and payment date. At least ten (10) days before the record
date, the Company shall mail to the Trustee and to each Holder of
the Series a notice that states the record date, the payment date
and the amount of interest to be paid. The Company may pay
defaulted interest in any other lawful manner.

 

Section 2.14 Global
Securities

 

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

 

(b) Transfer and
Exchange. Notwithstanding any provisions to the contrary contained
in Section 2.07 of the Indenture and in addition thereto, any
Global Security shall be exchangeable pursuant to Section 2.07 of
the Indenture for Securities registered in the names of Holders
other than the Depository for such Security or its nominee only if
(i) such Depository notifies the Company that it is unwilling or
unable to continue as Depository for such Global Security or if at
any time such Depository ceases to be a clearing agency registered
under the Exchange Act, and, in either case, the Company fails to
appoint a successor Depository registered as a clearing agency
under the Exchange Act within 90 days of such event, (ii) the
Company executes and delivers to the Trustee an Officers’
Certificate to the effect that such Global Security shall be so
exchangeable or (iii) an Event of Default with respect to the
Securities represented by such Global Security shall have happened
and be continuing. Any Global Security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for
Securities registered in such names as the Depository shall direct
in writing in an aggregate principal amount equal to the principal
amount of the Global Security with like tenor and
terms.

 

 

14

 

 

(c) Except as provided
in this Section 2.14(c), a Global Security may not be transferred
except as a whole by the Depository with respect to such Global
Security to a nominee of such Depository, by a nominee of such
Depository to such Depository or another nominee of such Depository
or by the Depository or any such nominee to a successor Depository
or a nominee of such a successor Depository.

 

(d) Legend. Any Global
Security issued hereunder shall bear a legend in substantially the
following form:

 

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

 

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

 

(g) Payments.
Notwithstanding the other provisions of this Indenture, unless
otherwise specified as contemplated by Section 2.02, payment of the
principal of and interest, if any, on any Global Security shall be
made to the Holder thereof.

 

(h) Consents,
Declaration and Directions. Except as provided in Section 2.14(g),
the Company, the Trustee and any Agent shall treat a person as the
Holder of such principal amount of outstanding Securities of such
Series represented by a Global Security as shall be specified in a
written statement of the Depository with respect to such Global
Security, for purposes of obtaining any consents, declarations,
waivers or directions required to be given by the Holders pursuant
to this Indenture.

 

(i) The Depository or
its nominee, as registered owner of a Global Security, shall be the
Holder of such Global Security for all purposes under the Indenture
and the Securities, and owners of beneficial interests in a Global
Security shall hold such interests pursuant to the Applicable
Procedures. Accordingly, any such owner’s beneficial interest
in a Global Security will be shown only on, and the transfer of
such interest shall be effected only through, records maintained by
the Depositary or its nominee and such owners of beneficial
interests in a Global Security will not be considered the owners or
holders thereof.

 

Section 2.15  CUSIP
Numbers.

 

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

 

 

15

 

 

ARTICLE III

REDEMPTION

 

Section 3.01 Notice
to Trustee.

 

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

 

Section 3.02 Selection
of Securities to be Redeemed.

 

  Unless
otherwise indicated fora particular Series by a Board Resolution, a
supplemental indenture or an Officers’ Certificate, if less
than all the Securities of a Series are to be redeemed, the Trustee
shall select the Securities of the Series to be redeemed in any
manner that the Trustee deems fair and appropriate. The Trustee
shall make the selection from Securities of the Series outstanding
not previously called for redemption. The Trustee may select for
redemption portions of the principal of Securities of the Series
that have denominations larger than $1,000. Securities of the
Series and portions of them it selects shall be in amounts of
$1,000 or whole multiples of $1,000 or, with respect to Securities
of any Series issuable in other denominations pursuant to Section
2.02(j), the minimum principal denomination for each Series and
integral multiples thereof Provisions of this Indenture that apply
to Securities of a Series called for redemption also apply to
portions of Securities of that Series called for
redemption.

 

Section 3.03 Notice
of Redemption.

 

(a) Unless otherwise
indicated for a particular Series by Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate, at
least 30 days but not more than 60 days before a redemption date,
the Company shall send or cause to be sent, by electronic delivery,
if held at DTC, or by first class mail postage prepaid, a notice of
redemption to each Holder whose Securities are to be redeemed and,
if any Bearer Securities are outstanding, publish on one occasion a
notice in an Authorized Newspaper. The notice shall identify the
Securities of the Series to be redeemed and shall
state:

 

(i) the redemption
date;

 

(ii) the redemption
price;

 

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

 

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

 

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

 

(vi) the CUSIP number,
if any; and

 

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

 

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

 

 

16

 

 

Section 3.04 Effect
of Notice of Redemption.

 

  Once
notice of redemption is sent, mailed or published as provided in
Section 3.03, Securities of a Series called for redemption become
due and payable on the redemption date and at the redemption price.
A notice of redemption may not be conditional. Upon surrender to
the Paying Agent, such Securities shall be paid at the redemption
price plus accrued interest to the redemption date; provided that
installments of interest whose Stated Maturity is on or prior to
the redemption date shall be payable to the Holders of such
Securities (or one or more predecessor Securities) registered at
the close of business on the relevant record date therefor
according to their terms and the terms of this
Indenture.

 

Section 3.05 Deposit
of Redemption Price.

 

  On or
before 10:00 a.m., New York City time, on the redemption date, the
Company shall deposit with the Paying Agent money sufficient to pay
the redemption price of and accrued interest, if any, on all
Securities to be redeemed on that date.

 

Section 3.06 Securities
Redeemed in Part.

 

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

 

ARTICLE IV

COVENANTS

 

Section 4.01 Payment
of Principal and Interest.

 

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

 

Section 4.02 SEC
Reports.

 

  The
Company shall, so long as any of the Securities are outstanding,
electronically file with the Commission the annual, quarterly and
other periodic reports that the Company is required to file with
the Commission pursuant to Sections 13 and 15(d) of the Exchange
Act. The Company also shall comply with the other provisions of TIA
Section 314(a). Delivery of any reports, information and documents
to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from
information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on an Officers’
Certificate).

 

Section 4.03 Compliance
Certificate.

 

  The
Company shall, so long as any of the Securities are outstanding,
deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company, an Officers’ Certificate stating
whether or not to the knowledge of the signers thereof the Company
is in default in the performance and observance of any of the
terms, provisions and conditions hereof (without regard to any
period of grace or requirement of notice provided hereunder), and
if a Default or Event of Default shall have occurred, specifying
all such Defaults or Events of Default and the nature and status
thereof of which they may have knowledge. The Company shall, so
long as any of the Securities are outstanding, deliver to the
Trustee, within thirty (30) days after becoming aware of any
Default or Event of Default, an Officers’ Certificate
specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect
thereto.

 

 

17

 

 

Section 4.04 Stay,
Extension and Usury Laws.

 

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

 

ARTICLE V

 

SUCCESSORS

 

Section 5.01 When
Company May Merge, Etc.

 

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

 

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

 

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

 

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

 

Section 5.02 Successor
Corporation Substituted.

 

  Upon
any consolidation or merger, or any sale, lease, conveyance or
other disposition of all or substantially all of the assets of the
Company in accordance with Section 5.01, the successor corporation
formed by such consolidation or into or with which the Company is
merged or to which such sale, lease, conveyance or other
disposition is made shall succeed to, and be substituted for, and
may exercise every right and power of the Company under this
Indenture with the same effect as if such successor person has been
named as the Company herein; provided, however, that the
predecessor Company in the case of a sale, conveyance or other
disposition (other than a lease) shall be released from all
obligations and covenants under this Indenture and the
Securities.

 

ARTICLE VI

DEFAULTS AND
REMEDIES

 

Section 6.01 Events
of Default.

 

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

 

 

18

 

 

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

 

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

 

(c) default in the
performance or breach of any covenant or warranty of the Company in
this Indenture (other than a covenant or warranty for which the
consequences of nonperformance or breach are addressed elsewhere in
this Section 6.01 and other than a covenant or warranty that has
been included in this Indenture solely for the benefit of Series of
Securities other than that Series), which default continues uncured
for a period of ninety (90) days after there has been given, by
registered or certified mail, to the Company by the Trustee or to
the Company and the Trustee by the Holders of not less than a
majority in principal amount of the outstanding Securities of that
Series a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder;

 

(d) the Company
pursuant to or within the meaning of any Bankruptcy Law. (i)
commences a voluntary case or proceeding; (ii) consents to the
entry of an order for relief against it in an involuntary case,
(iii) consents to the appointment of a Custodian of it or for
all or substantially all of its property, (iv)makes a general
assignment for the benefit of its creditors, or (v) makes an
admission by writing that it is generally unable to pay its debts
as the same become due;

 

(e) a court of
competent jurisdiction enters an order or decree under any
Bankruptcy Law that: (i) is for relief against the Company in an
involuntary case, (ii) appoints a Custodian of the Company or for
all or substantially all of its property, or (iii) orders the
liquidation of the Company, and the order or decree remains
unstayed and in effect for ninety (90) days; or

 

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

 

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

 

 

19

 

 

Section 6.02 Acceleration
of Maturity; Rescission and Annulment.

 

  If an
Event of Default with respect to Securities of any Series at the
time outstanding occurs and is continuing (other than an Event of
Default referred to in Section 6.1(d) or (e)), then in every such
case the Trustee or the Holders of not less than a majority in
principal amount of the outstanding Securities of that Series may
declare the principal amount (or, if any Securities of that Series
are Discount Securities, such portion of the principal amount as
may be specified in the terms of such Securities) of and accrued
and unpaid interest, if any, on all of the Securities of that
Series to be due and payable immediately, by a notice in writing to
the Company (and to the Trustee if given by Holders), and upon any
such declaration such principal amount (or specified amount) and
accrued and unpaid interest, if any, shall become immediately due
and payable. If an Event of Default specified in Section 6.1(d) or
(e) shall occur, the principal amount (or specified amount) of and
accrued and unpaid interest, if any, on all outstanding Securities
shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any
Holder. At any time after such a declaration of acceleration with
respect to any Series has been made and before a judgment or decree
for payment of the money due has been obtained by the Trustee as
hereinafter in this Article provided, the Holders of a majority in
principal amount of the outstanding Securities of that Series, by
written notice to the Company and the Trustee, may rescind and
annul such declaration and its consequences if all Events of
Default with respect to Securities of that Series, other than the
non-payment of the principal and interest, if any, of Securities of
that Series which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section
6.13. No such rescission shall affect any subsequent Default or
impair any right consequent thereon.

 

Section 6.03 Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The
Company covenants that if:

 

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

 

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

 

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

 

 

20

 

 

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

 

Section 6.04 Trustee
May File Proofs of Claim.

 

  In
case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other
obligor upon the Securities or the property of the Company or of
such other obligor or their creditors, the Trustee (irrespective of
whether the principal of the Securities shall then be due and
payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall
be entitled and empowered, by intervention in such proceeding or
otherwise, (a) to file and prove a claim for the whole amount of
principal and interest owing and unpaid in respect of the
Securities and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel)
and of the Holders allowed in such judicial proceeding, and (b) to
collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee and,
in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount
due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting
the Securities or the rights of any Holder thereof or to authorize
the Trustee to vote in respect of the claim of any Holder in any
such proceeding.

 

Section 6.05 Trustee
May Enforce Claims Without Possession of Securities.

 

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

 

Section 6.06 Application
of Money Collected.

 

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

 

 

21

 

 

First:
To the payment of all amounts due the Trustee under Section 7.07;
and

 

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

 

Third:
To the Company.

 

Section 6.07 Limitation
on Suits.

 

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

 

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

 

(b) the Holders of at
least a majority in principal amount of the outstanding Securities
of that Series shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its
own name as Trustee hereunder,

 

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

 

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

 

(e) no direction
inconsistent with such written request has been given to the
Trustee during such 60-day period by the Holders of a majority in
principal amount of the outstanding Securities of that Series; it
being understood and intended that no one or more of such Holders
shall have any right in any manner whatever by virtue of or by
availing of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other of such Holders, or to obtain or
to seek to obtain priority or preference over any other of such
Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all
such Holders.

 

Section 6.08 Unconditional
Right of Holders to Receive Principal and Interest.

 

  Notwithstanding
any other provision in this Indenture, the Holder of any Security
shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such
Security on the Stated Maturity or Stated Maturities expressed in
such Security (or, in the case of redemption, on the redemption
date) and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired without the consent
of such Holder.

 

Section 6.09 Restoration
of Rights and Remedies.

 

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

 

 

22

 

 

Section 6.10 Rights
and Remedies Cumulative.

 

  Except
as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities in Section 2.08, no
right or remedy herein conferred upon or reserved to the Trustee or
to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not, to the extent permitted
by law, prevent the concurrent assertion or employment of any other
appropriate right or remedy.

 

Section 6.11 Delay
or Omission Not Waiver.

 

  No
delay or omission of the Trustee or of any Holder of any Securities
to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein. Every right and
remedy given by this Article or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may
be.

 

Section 6.12 Control
by Holders.

 

  The
Holders of a majority in principal amount of the outstanding
Securities of any Series shall have the right to direct the time,
method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power
conferred on the Trustee, with respect to the Securities of such
Series, provided that:

 

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

 

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

 

(c) subject to the
provisions of Section 6.01, the Trustee shall have the right to
decline to follow any such direction if the Trustee in good faith
shall, by a Responsible Officer of the Trustee, determine that the
proceeding so directed would involve the Trustee in personal
liability.

 

Section 6.13 Waiver
of Past Defaults.

 

  The
Holders of not less than a majority in principal amount of the
outstanding Securities of any Series may on behalf of the Holders
of all the Securities of such Series waive any past Default
hereunder with respect to such Series and its consequences, except
a Default (i) in the payment of the principal of or interest on any
Security of such Series (provided, however, that the Holders of a
majority in principal amount of the outstanding Securities of any
Series may rescind an acceleration and its consequences, including
any related payment default that resulted from such acceleration)
or (ii) in respect of a covenant or provision hereof which cannot
be modified or amended without the consent of the Holder of each
outstanding Security of such Series affected. Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of
this Indenture; but no such waiver shall extend to any subsequent
or other Default or impair any right consequent
thereon.

 

 

23

 

 

Section 6.14 Undertaking
for Costs.

 

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

 

ARTICLE VII

TRUSTEE

 

Section 7.01 Duties
of Trustee.

 

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

 

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

 

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

 

(ii) In the absence of
bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions
expressed therein, upon Officers’ Certificates or Opinions of
Counsel furnished to the Trustee and conforming to the requirements
of this Indenture; however, in the case of any such Officers’
Certificates or Opinions of Counsel which by any provisions hereof
are specifically required to be furnished to the Trustee, the
Trustee shall examine such Officers’ Certificates and
Opinions of Counsel to determine whether or not they conform to the
requirements of this Indenture.

 

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

 

(i) This paragraph
does not limit the effect of paragraph (b) of this
Section.

 

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

 

 

24

 

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 7.02 Rights
of Trustee.

 

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

 

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

 

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

 

(d) The Trustee shall
not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or
powers, provided that the Trustee’s conduct does not
constitute negligence or bad faith.

 

 

25

 

 

(e) The Trustee may
consult with counsel, and the advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection
in respect of any action taken, suffered or omitted by it hereunder
without negligence and in good faith and in reliance
thereon.

 

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

 

(g) The Trustee shall
not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see
fit.

 

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

 

(i) The permissive
rights of the Trustee enumerated herein shall not be construed as
duties.

 

Section 7.03 Individual
Rights of Trustee.

 

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

 

Section 7.04 Trustee’s
Disclaimer.

 

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

 

Section 7.05 Notice
of Defaults.

 

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

 

 

26

 

 

Section 7.06 Reports
by Trustee to Holders.

 

  Within
sixty (60) days after May 15 in each year, the Trustee shall
transmit by mail to all Holders, as their names and addresses
appear on the register kept by the Registrar and, if any Bearer
Securities are outstanding, publish in an Authorized Newspaper, a
brief report dated as of such May 15, in accordance with, and to
the extent required under, TIA Section 313. A copy of each report
at the time of its mailing to Holders of any Series shall be filed
with the SEC and each stock exchange on which the Securities of
that Series are listed. The Company shall promptly notify the
Trustee when Securities of any Series are listed on any stock
exchange.

 

Section 7.07 Compensation
and Indemnity.

 

  The
Company shall pay to the Trustee from time to time compensation for
its services as the Company and the Trustee shall from time to time
agree upon in writing. The Trustee’s compensation shall not
be limited by any law on compensation of a trustee of an express
trust. The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses incurred by it. Such expenses
shall include the reasonable compensation and expenses of the
Trustee’s agents and counsel. The Company shall indemnify
each of the Trustee and any predecessor Trustee against any loss,
liability or expense (including the cost of defending itself),
including taxes (other than taxes based upon, measured by or
determined by the income of the Trustee) incurred by it except as
set forth in this Section 7.07 in the performance of its duties
under this Indenture as Trustee or Agent. The Trustee shall notify
the Company promptly of any claim for which it may seek indemnity.
The Company shall defend the claim and the Trustee shall cooperate
in the defense. The Trustee may have 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. This
indemnification shall apply to officers, directors, employees,
shareholders and agents of the Trustee. The Company need not
reimburse any expense or indemnify against any loss or liability
incurred by the Trustee or by any officer, director, employee,
shareholder or agent of the Trustee through the negligence or bad
faith of any such persons. To secure the Company’s payment
obligations in this Section, the Trustee shall have a lien prior to
the Securities of any Series on all money or property held or
collected by the Trustee, except that held in trust to pay
principal of and interest on particular Securities of that Series.
When the Trustee incurs expenses or renders services after an Event
of Default specified in Section 6.01(d) or (e) occurs, the expenses
and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law. The provisions
of this Section shall survive the resignation or removal of the
Trustee and the termination of this Indenture.

 

Section 7.08 Replacement
of Trustee.

 

  A
resignation or removal of the Trustee and appointment of a
successor Trustee shall become effective only upon the successor
Trustee’s acceptance of appointment as provided in this
Section. The Trustee may resign with respect to the Securities of
one or more Series by so notifying the Company at least 30 days
prior to the date of the proposed resignation. The Holders of a
majority in principal amount of the Securities of any Series may
remove the Trustee with respect to that Series by so notifying the
Trustee and the Company. The Company may remove the Trustee with
respect to Securities of one or more Series if:

 

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

 

 

27

 

 

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

 

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

 

(d) the Trustee
becomes incapable of acting.

 

If the
Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company shall promptly appoint a
successor Trustee.

 

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

 

A
successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately
after that, the retiring Trustee shall transfer all property held
by it as Trustee to the successor Trustee subject to the lien
provided for in Section 7.07, the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee
shall have all the rights, powers and duties of the Trustee with
respect to each Series of Securities for which it is acting as
Trustee under this Indenture. A successor Trustee shall mail a
notice of its succession to each Holder of each such Series and, if
any Bearer Securities are outstanding, publish such notice on one
occasion in an Authorized Newspaper. Notwithstanding replacement of
the Trustee pursuant to this Section 7.08, the Company’s
obligations under Section 7.07 hereof shall continue for the
benefit of the retiring Trustee with respect to expenses and
liabilities incurred by it prior to the date of such
replacement.

 

Section 7.09 Successor
Trustee by Merger, etc.

 

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

 

Section 7.10 Eligibility;
Disqualification.

 

  This
Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1), (2) and (5). The Trustee
shall comply with TIA Section 310(b).

 

Section 7.11 Preferential
Collection of Claims Against Company.

 

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

 

 

28

 

 

ARTICLE VIII

SATISFACTION AND
DISCHARGE; DEFEASANCE

 

Section 8.01 Satisfaction
and Discharge of Indenture.

 

This
Indenture shall upon Company Order cease to be of further effect
(except as hereinafter provided in this Section 8.01), and the
Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this
Indenture, when

 

(a) any of the
following shall have occurred:

 

(i) no Securities have
been issued hereunder,

 

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

 

(iii) all such
Securities not theretofore delivered to the Trustee for
cancellation (1) have become due and payable, or (2) will become
due and payable at their Stated Maturity within one year, or (3)
are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company; and
the Company has irrevocably deposited or caused to be deposited
with the Trustee as trust funds in trust an amount sufficient for
the purpose of paying and discharging the entire indebtedness on
such Securities not theretofore delivered to the Trustee for
cancellation, for principal and interest to the date of such
deposit (in the case of Securities which have become due and
payable on or prior to the date of such deposit) or to the Stated
Maturity or redemption date, as the case may be;

 

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

 

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

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations
of the Company to the Trustee under Section 7.07 and, if money
shall have been deposited with the Trustee pursuant to clause (a)
of this Section, the provisions of Sections 2.04 , 2.05 , 2.07,
2.08, 8.01, 8.02 and 8.05 shall survive.

 

Section 8.02 Application
of Trust Funds; Indemnification.

 

(a) Subject to the
provisions of Section 8.05, all money deposited with the Trustee
pursuant to Section 8.01, all money and U.S. Government Obligations
or Foreign Government Obligations deposited with the Trustee
pursuant to Section 8.03 or 8.04 and all money received by the
Trustee in respect of U.S. Government Obligations or Foreign
Government Obligations deposited with the Trustee pursuant to
Section 8.03 or 8.04, shall be held in trust and applied by it, in
accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying
Agent (other than the Company acting as its own Paying Agent) as
the Trustee may determine, to the persons entitled thereto, of the
principal and interest for whose payment such money has been
deposited with or received by the Trustee or analogous payments as
contemplated by Sections 8.03 or 8.04.

 

 

29

 

 

(b) The Company shall
pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against U.S. Government Obligations
or Foreign Government Obligations deposited pursuant to Sections
8.03 or 8.04 or the interest and principal received in respect of
such obligations other than any payable by or on behalf of
Holders.

 

(c) The Trustee shall
deliver or pay to the Company from time to time upon Company
Request any U.S. Government Obligations or Foreign Government
Obligations or money held by it as provided in Sections 8.03 or
8.04 which, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written
certification thereof delivered to the Trustee, are then in excess
of the amount thereof which then would have been required to be
deposited for the purpose for which such U.S. Government
Obligations or Foreign Government Obligations or money were
deposited or received. This provision shall not authorize the sale
by the Trustee of any U.S. Government Obligations or Foreign
Government Obligations held under this Indenture.

 

Section 8.03 Legal
Defeasance of Securities of any Series.

 

  Unless
this Section 8.03 is otherwise specified, pursuant to Section
2.02(s), to be inapplicable to Securities of any Series, the
Company shall be deemed to have paid and discharged the entire
indebtedness on all the outstanding Securities of any Series on the
91st day after the date of the deposit referred to in subparagraph
(d) hereof and the provisions of this Indenture, as it relates to
such outstanding Securities of such Series, shall no longer be in
effect (and the Trustee, at the expense of the Company, shall, at
Company Request, execute proper instruments acknowledging the
same), except as to:

 

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

 

(b) the provisions of
Sections 2.04, 2.05, 2.07, 2.08, 8.02, 8.03 and 8.05;
and

 

(c) the rights,
powers, trust and immunities of the Trustee hereunder, provided
that, the following conditions shall have been
satisfied:

 

(d) with reference to
this Section 8.03, the Company shall have deposited or caused to be
irrevocably deposited (except as provided in Section 8.02(c)) with
the Trustee as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for and
dedicated solely to the benefit of the Holders of such Securities
(i) in the case of Securities of such Series denominated in
Dollars, cash in Dollars and/or U.S. Government Obligations, or
(ii) in the case of Securities of such Series denominated in a
Foreign Currency (other than a composite currency), money and/or
Foreign Government Obligations, which through the payment of
interest and principal in respect thereof in accordance with their
terms, will provide (without reinvestment and assuming no tax
liability will be imposed on such Trustee), not later than one day
before the due date of any payment of money, an amount in cash,
sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge each
installment of principal of and interest, if any, on and any
mandatory sinking fund payments in respect of all the Securities of
such Series on the dates such installments of interest or principal
and such sinking fund payments are due;

 

 

30

 

 

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

 

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

 

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

 

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

 

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

 

(j) such defeasance
shall not result in the trust arising from such deposit
constituting an investment company within the meaning of the
Investment Company Act of 1940, as amended, unless such trust shall
be registered under such Act or exempt from registration
thereunder.

 

Section 8.04 Covenant
Defeasance.

 

  Unless
this Section 8.04 is otherwise specified, pursuant to Section
2.02(s), to be inapplicable to Securities of any Series, on and
after the 91st day after the date of the deposit referred to in
subparagraph (a) hereof; the Company may omit to comply with
respect to the Securities of any Series with any term, provision or
condition set forth under Sections 4.02, 4.03, and 5.01 as well as
any additional covenants specified in a supplemental indenture for
such Series of Securities or a Board Resolution or an
Officers’ Certificate delivered pursuant to Section 2.02 (and
the failure to comply with any such covenants shall not constitute
a Default or Event of Default with respect to such Series under
Section 6.01) and the occurrence of any event specified in a
supplemental indenture for such Series of Securities or a Board
Resolution or an Officers’ Certificate delivered pursuant to
Section 2.02 and designated as an Event of Default shall not
constitute a Default or Event of Default hereunder, with respect to
the Securities of such Series, provided that the following
conditions shall have been satisfied:

 

 

31

 

 

(a) with reference to
this Section 8.04, the Company has deposited or caused to be
irrevocably deposited (except as provided in Section 8.02(c)) with
the Trustee as trust funds in trust for the purpose of making the
following payments specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities
(i) in the case of Securities of such Series denominated in
Dollars, cash in Dollars and/or U.S. Government Obligations, or
(ii) in the case of Securities of such Series denominated in a
Foreign Currency (other than a composite currency), money and/or
Foreign Government Obligations, which through the payment of
interest and principal in respect thereof in accordance with their
terms, will provide (and without reinvestment and assuming no tax
liability will be imposed on such Trustee), not later than one day
before the due date of any payment of money, an amount in cash,
sufficient, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and
discharge each installment of principal of and interest, if any, on
and any mandatory sinking fund payments in respect of the
Securities of such Series on the dates such installments of
interest or principal and such sinking fund payments are
due;

 

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

 

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

 

(d) the Company shall
have delivered to the Trustee an Opinion of Counsel to the effect
that Holders of the Securities of such Series will not recognize
income, gain or loss for federal income tax purposes as a result of
such deposit and covenant defeasance and will be subject to federal
income tax on the same amounts, in the same manner and at the same
times as would have been the case if such deposit and covenant
defeasance had not occurred;

 

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

 

(f) Such defeasance
shall not result in the trust arising from such deposit
constituting an investment company within the meaning of the
Investment Company Act of 1940, as amended, unless such trust shall
be registered under such Act or exempt from registration
thereunder.

 

Section 8.05 Repayment
to Company.

 

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

 

 

32

 

 

Section 8.06 Reinstatement.

 

  If the
Trustee or the Paying Agent is unable to apply any money deposited
with respect to Securities of any series in accordance with Section
8.01 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the
obligations of the Company under this Indenture with respect to the
Securities of such series and under the Securities of such series
shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.01 until such time as the Trustee or the
Paying Agent is permitted to apply all such money in accordance
with Section 8.01; provided, however, that if the Company has made
any payment of principal of, premium (if any) or interest on any
Additional Amounts with respect to any Securities because of the
reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive such
payment from the money held by the Trustee or the Paying
Agent.

 

ARTICLE IX

AMENDMENTS AND
WAIVERS

 

Section 9.01 Without
Consent of Holders.

 

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

 

(a) to evidence the
succession of another person to the Company under this Indenture
and the Securities and the assumption by any such successor person
of the obligations of the Company hereunder and under the
Securities;

 

(b) to add or remove
covenants of the Company for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the
benefit of less than all series of Securities, stating that such
covenants are expressly being included for the benefit of such
series) or to surrender any right or power herein conferred upon
the Company provided such action does not adversely affect the
interests of the Company;

 

(c) to add any
additional Events of Default;

 

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

 

(e) to add to, change
or eliminate any of the provisions of this Indenture in respect of
one or more series of Securities, provided that any such addition,
change or elimination (A) shall neither (i) apply to any Security
of any series created prior to the execution of such supplemental
indenture and entitled to the benefit of such provision nor (ii)
modify the rights of the Holder of any such Security with respect
to such provision or (B) shall become effective only when there is
no such Security Outstanding;

 

(f) to establish the
forms or terms of the Securities of any series issued pursuant to
the terms hereof;

 

 

33

 

 

(g) to cure any
ambiguity or correct any inconsistency in this
Indenture;

 

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

 

(i) to qualify this
Indenture under the Trust Indenture Act;

 

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

 

(k) to supplement any
provisions of this Indenture necessary to permit or facilitate the
defeasance and discharge of any series of Securities, provided that
such action does not adversely affect the interests of the Holders
of Securities of such series or any other series; and

 

(l) to comply with the
rules or regulations of any securities exchange or automated
quotation system on which any of the Securities may be listed or
traded.

 

Section 9.02 With
Consent of Holders.

 

  The
Company and the Trustee may enter into a supplemental indenture
with the written consent of the Holders of at least a majority in
principal amount of the outstanding Securities of each Series
affected by such supplemental indenture (including consents
obtained in connection with a tender offer or exchange offer for
the Securities of such Series), for the purpose of adding any
provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Holders of each such
Series. Except as provided in Section 6.13, the Holders of at least
a majority in principal amount of the outstanding Securities of any
Series by notice to the Trustee (including consents obtained in
connection with a tender offer or exchange offer for the Securities
of such Series) may waive compliance by the Company with any
provision of this Indenture or the Securities with respect to such
Series. It shall not be necessary for the consent of the Holders of
Securities under this Section 9.02 to approve the particular form
of any proposed supplemental indenture or waiver, but it shall be
sufficient if such consent approves the substance thereof. After a
supplemental indenture or waiver under this section becomes
effective, the Company shall mail to the Holders of Securities
affected thereby and, if any Bearer Securities affected thereby are
outstanding, publish on one occasion in an Authorized Newspaper, a
notice briefly describing the supplemental indenture or waiver. Any
failure by the Company to mail or publish such notice, or any
defect therein, shall not, however, in any way impair or affect the
validity of any such supplemental indenture or waiver.

 

Section 9.03 Limitations.

 

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

 

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

 

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

 

 

34

 

 

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

 

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

 

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

 

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

 

(g) make any change in
Sections 6.08, 6.13, or 9.03; or

 

(h) waive a redemption
payment with respect to any Security.

 

Section 9.04 Compliance
with Trust Indenture Act.

 

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

 

Section 9.05 Revocation
and Effect of Consents.

 

  Until
an amendment is set forth in a supplemental indenture or a waiver
becomes effective, a consent to it by a Holder of a Security is a
continuing consent by the Holder and every subsequent Holder of a
Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security, even if notation of the
consent is not made on any Security. However, any such Holder or
subsequent Holder may revoke the consent as to his Security or
portion of a Security if the Trustee receives the notice of
revocation before the date of the supplemental indenture or the
date the waiver becomes effective. Any amendment or waiver once
effective shall bind every Holder of each Series affected by such
amendment or waiver unless it is of the type described in any of
clauses (a) through (h) of Section 9.03. In that case, the
amendment or waiver shall bind each Holder of a Security who has
consented to it and every subsequent Holder of a Security or
portion of a Security that evidences the same debt as the
consenting Holder’s Security.

 

Section 9.06 Notation
on or Exchange of Securities.

 

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

 

Section 9.07 Trustee
Protected.

 

  In
executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, in addition to the documents
required by Section 10.04, and (subject to Section 7.01) shall be
fully protected in relying upon, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee shall sign all
supplemental indentures, except that the Trustee need not sign any
supplemental indenture that adversely affects its
rights.

 

 

35

 

 

ARTICLE X

MISCELLANEOUS

 

Section 10.01 Trust
Indenture Act Controls.

 

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

 

Section 10.02 Notices.

 

(a) Any notice or
communication by the Company or the Trustee to the other, or by a
Holder to the Company or the Trustee, is duly given if in writing
and delivered in person or mailed by first-class mail or sent by
facsimile transmission addressed as follows:

 

if to
the Company:

 

Palatin
Technologies, Inc.

4B
Cedar Brook Drive

Cranbury, New
Jersey 08512

Attention: Chief
Counsel

Telephone: (609)
495-2200

Facsimile: (609)
495-2202

 

if to
the Trustee:

 

[        
]

 

(b) The Company or the
Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications. Any
notice or communication to a Holder shall be mailed by first-class
mail to his address shown on the register kept by the Registrar
and, if any Bearer Securities are outstanding, published in an
Authorized Newspaper. Failure to mail a notice or communication to
a Holder of any Series or any defect in it shall not affect its
sufficiency with respect to other Holders of that or any other
Series. If a notice or communication is mailed or published in the
manner provided above, within the time prescribed, it is duly
given, whether or not the Holder receives it. If the Company mails
a notice or communication to Holders, it shall mail a copy to the
Trustee and each Agent at the same time.

 

(c) Any notice or
demand that by any provision of this Indenture is required or
permitted to be given or served by the Company may, at the
Company’s written request received by the Trustee not fewer
than five (5) Business Days prior (or such shorter period of time
as may be acceptable to the Trustee) to the date on which such
notice must be given or served, be given or served by the Trustee
in the name of and at the expense of the Company.

 

Section 10.03 Communication
by Holders with Other Holders.

 

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

 

 

36

 

 

Section 10.04 Certificate
and Opinion as to Conditions Precedent.

 

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

 

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

 

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

 

Section 10.05 Statements
Required in Certificate or Opinion.

 

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

 

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

 

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

 

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

 

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

 

Section 10.06 Rules
by Trustee and Agents.

 

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

 

Section 10.07 Legal
Holidays.

 

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

 

Section 10.08 No
Recourse Against Others.

 

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

 

 

37

 

 

Section 10.09 Counterparts.

 

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

 

Section 10.10 Governing
Laws.

 

  This
Indenture and the Securities will be governed by, and construed in
accordance with, the internal laws of the State of New York,
without regard to conflict of law principles that would result in
the application of any law other than the laws of the State of New
York.

 

Section 10.11 No
Adverse Interpretation of Other Agreements.

 

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

 

Section 10.12 Successors.

 

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

 

Section 10.13 Severability.

 

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

 

Section 10.14 Table
of Contents, Headings, Etc.

 

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

 

Section 10.15 Securities
in a Foreign Currency.

 

  Unless
otherwise specified in a Board Resolution, a supplemental indenture
hereto or an Officers’ Certificate delivered pursuant to
Section 2.02 of this Indenture with respect to a particular Series
of Securities, whenever for purposes of this Indenture any action
may be taken by the Holders of a specified percentage in aggregate
principal amount of Securities of all Series or all Series affected
by a particular action at the time outstanding and, at such time,
there are outstanding Securities of any Series which are
denominated in a coin or currency other than Dollars, then the
principal amount of Securities of such Series which shall be deemed
to be outstanding for the purpose of taking such action shall be
that amount of Dollars that could be obtained for such amount at
the Market Exchange Rate at such time. For purposes of this Section
10.15, “Market Exchange Rate” shall mean the noon
Dollar buying rate in New York City for cable transfers of that
currency as published by the Federal Reserve Bank of New York. If
such Market Exchange Rate is not available for any reason with
respect to such currency, the Trustee shall use, in its sole
discretion and without liability on its part, such quotation of the
Federal Reserve Bank of New York as of the most recent available
date, or quotations from one or more major banks in The City of New
York or in the country of issue of the currency in question or such
other quotations as the Trustee, upon consultation with the
Company, shall deem appropriate. The provisions of this paragraph
shall apply in determining the equivalent principal amount in
respect of Securities of a Series denominated in currency other
than Dollars in connection with any action taken by Holders of
Securities pursuant to the terms of this Indenture. All decisions
and determinations of the Trustee regarding the Market Exchange
Rate or any alternative determination provided for in the preceding
paragraph shall be in its sole discretion and shall, in the absence
of manifest error, to the extent permitted by law, be conclusive
for all purposes and irrevocably binding upon the Company and all
Holders.

 

 

38

 

 

Section 10.16 Judgment
Currency.

 

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

 

ARTICLE XI

SINKING
FUNDS

 

Section 11.01 Applicability
of Article.

 

  The
provisions of this Article shall be applicable to any sinking fund
for the retirement of the Securities of a Series, except as
otherwise permitted or required by any form of Security of such
Series issued pursuant to this Indenture. The minimum amount of any
sinking fund payment provided for by the terms of the Securities of
any Series is herein referred to as a “ mandatory sinking
fund payment “ and any other amount provided for by the terms
of Securities of such Series is herein referred to as an “
optional sinking fund payment .”If provided for by the terms
of Securities of any Series, the cash amount of any sinking fund
payment may be subject to reduction as provided in Section 11.02.
Each sinking fund payment shall be applied to the redemption of
Securities of any Series as provided for by the terms of the
Securities of such Series.

 

 

 

39

 

 

Section 11.02 Satisfaction
of Sinking Fund Payments with Securities.

 

  The
Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of any Series to be made
pursuant to the terms of such Securities (1) deliver outstanding
Securities of such Series to which such sinking fund payment is
applicable (other than any of such Securities previously called for
mandatory sinking fund redemption) and (2) apply as credit
Securities of such Series to which such sinking fund payment is
applicable and which have been repurchased by the Company or
redeemed either at the election of the Company pursuant to the
terms of such Series of Securities (except pursuant to any
mandatory sinking fund) or through the application of permitted
optional sinking fund payments or other optional redemptions
pursuant to the terms of such Securities, provided that such
Securities have not been previously so credited. Such Securities
shall be received by the Trustee, together with an Officers’
Certificate with respect thereto, not later than 15 days prior to
the date on which the Trustee begins the process of selecting
Securities for redemption, and shall be credited for such purpose
by the Trustee at the price specified in such Securities for
redemption through operation of the sinking fund and the amount of
such sinking fund payment shall be reduced accordingly. If as a
result of the delivery or credit of Securities in lieu of cash
payments pursuant to this Section 11.02, the principal amount of
Securities of such Series to be redeemed in order to exhaust the
aforesaid cash payment shall be less than $100,000, the Trustee
need not call Securities of such Series for redemption, except upon
receipt of a Company Order that such action be taken, and such cash
payment shall be held by the Trustee or a Paying Agent and applied
to the next succeeding sinking fund payment, provided, however,
that the Trustee or such Paying Agent shall from time to time upon
receipt of a Company Order pay over and deliver to the Company any
cash payment so being held by the Trustee or such Paying Agent upon
delivery by the Company to the Trustee of Securities of that Series
purchased by the Company having an unpaid principal amount equal to
the cash payment required to be released to the
Company.

 

Section 11.03 Redemption
of Securities for Sinking Fund.

 

  Not
less than 45 days (unless otherwise indicated in the Board
Resolution, supplemental indenture or Officers’ Certificate
in respect of a particular Series of Securities) prior to each
sinking fund payment date for any Series of Securities, the Company
will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing mandatory sinking fund
payment for that Series pursuant to the terms of that Series, the
portion thereof if any, which is to be satisfied by payment of cash
and the portion thereof if any, which is to be satisfied by
delivering and crediting of Securities of that Series pursuant to
Section 11.02, and the optional amount, if any, to be added in cash
to the next ensuing mandatory sinking fund payment, and the Company
shall thereupon be obligated to pay the amount therein specified.
Not less than 30 days (unless otherwise indicated in the Board
Resolution, Officers’ Certificate or supplemental indenture
in respect of a particular Series of Securities) before each such
sinking fund payment date the Trustee shall select the Securities
to be redeemed upon such sinking fund payment date in the manner
specified in Section 3.02 and cause notice of the redemption
thereof to be given in the name of and at the expense of the
Company in the manner provided in Section 3.03. Such notice having
been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 3.04, 3.05 and
3.06.

 

 

 

40

 

 

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

 

 

	
 

	

PALATIN
TECHNOLOGIES, INC.

 

By:___________________________________

Name:

Title:

	
 

	
 

	
 

	

[ ], as
Trustee

 

By:___________________________________

Name:

Title:Exhibit 4.1

 

STOCKHOLDER AND REGISTRATION RIGHTS AGREEMENT

 

BY AND BETWEEN

 

SERVICEMASTER GLOBAL HOLDINGS, INC.

 

AND

 

AHS HOLDING COMPANY, INC.

 

DATED AS OF [•]

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
 
    	
 
    
	
TABLE   OF CONTENTS
    	
i
    
	
 
    	
 
    
	
ARTICLE I                                DEFINITIONS
    	
1
    
	
 
    	
 
    
	
ARTICLE II                           REGISTRATION   RIGHTS
    	
7
    
	
 
    	
 
    	
 
    
	
Section 2.01
    	
Registration
    	
7
    
	
Section 2.02
    	
Piggyback Registrations
    	
10
    
	
Section 2.03
    	
Registration Procedures
    	
12
    
	
Section 2.04
    	
Underwritten Offerings   or Exchange Offers
    	
18
    
	
Section 2.05
    	
Registration Rights Agreement   with Participating Banks
    	
19
    
	
Section 2.06
    	
Registration Expenses   Paid by SpinCo
    	
20
    
	
Section 2.07
    	
Indemnification
    	
20
    
	
Section 2.08
    	
Reporting Requirements;   Rule 144
    	
22
    
	
Section 2.09
    	
Registration Rights   Covenant
    	
22
    
	
 
    	
 
    	
 
    
	
ARTICLE III                      VOTING   RESTRICTIONS
    	
23
    
	
 
    	
 
    
	
Section 3.01
    	
Voting of SpinCo Shares
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE IV                       MISCELLANEOUS
    	
23
    
	
 
    	
 
    
	
Section 4.01
    	
Further Assurances
    	
23
    
	
Section 4.02
    	
Term and Termination
    	
24
    
	
Section 4.03
    	
Counterparts; Entire   Agreement; Corporate Power
    	
24
    
	
Section 4.04
    	
Disputes and Governing   Law
    	
25
    
	
Section 4.05
    	
Successors, Assigns and   Transferees
    	
25
    
	
Section 4.06
    	
Third-Party Beneficiaries
    	
26
    
	
Section 4.07
    	
Notices
    	
26
    
	
Section 4.08
    	
Severability
    	
27
    
	
Section 4.09
    	
Headings
    	
28
    
	
Section 4.10
    	
Waiver of Default 
    	
28
    
	
Section 4.11
    	
Amendments 
    	
28
    
	
Section 4.12
    	
Interpretation 
    	
28
    
	
Section 4.13
    	
Performance 
    	
29
    
	
Section 4.14
    	
Registrations,   Exchanges, etc.
    	
29
    
	
Section 4.15
    	
Mutual Drafting 
    	
29
    
	
 
    	
 
    	
 
    
	
Exhibit A   — Form of Agreement to be Bound
    	
A-1
    

 

i

 

FORM OF STOCKHOLDER AND REGISTRATION RIGHTS AGREEMENT

 

This STOCKHOLDER AND REGISTRATION RIGHTS AGREEMENT, dated as of [•] (this “Agreement”), is by and between ServiceMaster Global Holdings, Inc., a Delaware corporation (“Parent”), and AHS Holding Company, Inc., a Delaware corporation (“SpinCo”).  Capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to them in Article I.

 

R E C I T A L S

 

WHEREAS, the board of directors of Parent (the “Parent Board”) has determined that it is appropriate and desirable to distribute up to eighty and one tenth of a percent (80.1%) of the outstanding SpinCo Shares owned by Parent to Parent’s shareholders (the “Distribution”);

 

WHEREAS, Parent may Sell those SpinCo Shares that are not distributed in the Distribution (such SpinCo Shares, the “Retained Shares”) through one or more transactions, including pursuant to one or more transactions registered under the Securities Act;

 

WHEREAS, SpinCo desires to grant to the Parent Group the Registration Rights for the Retained Shares and other Registrable Securities, subject to the terms and conditions of this Agreement; and

 

WHEREAS, the Parent Group desires to grant SpinCo a proxy to vote the Retained Shares in proportion to the votes cast by SpinCo’s other stockholders, on the terms and subject to the conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:

 

ARTICLE I    DEFINITIONS

 

For the purpose of this Agreement, the following terms shall have the following meanings:

 

“Affiliate” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Agreement” shall have the meaning set forth in the Preamble.

 

“Ancillary Agreements” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Ancillary Filings” shall have the meaning set forth in Section 2.03(a)(i).

 

“Blackout Notice” shall have the meaning set forth in Section 2.01(d).

 

 

“Blackout Period” shall have the meaning set forth in Section 2.01(d).

 

“Block Trade” means an Underwritten Offering not involving any “road show” which is commonly known as a “block trade.”

 

“Change of Control” with respect to a Person shall mean any occurrence resulting in (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) becoming the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities entitled to vote in the election of members of the board of directors or similar governing body of such Person having 50% or more of the then outstanding voting power of such Person; (ii) such Person becoming a party to a merger, consolidation, share exchange, reorganization, sale of assets or other similar extraordinary transaction, or a proxy contest, in each case as a consequence of which members of the board of directors or similar governing body of such Person in office immediately prior to such transaction or event constitute less than a majority of such board or other body thereafter; or (iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the board of directors or similar governing body of such Person (including for this purpose any new director or similar person whose election or nomination for election was approved by a vote of at least two-thirds of the directors or similar persons then still in office who served in such capacities at the beginning of such period, other than those such directors or similar persons appointed, or nominated for election, in connection with an actual or threatened proxy contest or other non-consensual attempt to influence or modify such board or other body) ceasing for any reason to constitute at least a majority of such board or other body.

 

“Debt” shall mean any indebtedness of any member of the Parent Group, including debt securities, notes, credit facilities, credit agreements and other debt instruments, including, in each case, any amounts due thereunder.

 

“Debt Exchanges” shall mean one or more Public Debt Exchanges or Private Debt Exchanges.

 

“Demand Registration” shall have the meaning set forth in Section 2.01(a).

 

“Disadvantageous Condition” shall have the meaning set forth in Section 2.01(d).

 

“Dispute” shall have the meaning set forth in Section 4.04(a).

 

“Distribution” shall have the meaning set forth in the Recitals.

 

“Distribution Date” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder.

 

“Effective Time” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

2

 

“Exchange Offer” shall mean an exchange offer of Registrable Securities for outstanding securities of a Holder.

 

“Force Majeure” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Governmental Authority” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Group” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Holder” shall mean any member of the Parent Group, so long as such Person holds any Registrable Securities, and any Permitted Transferee, so long as such Person holds any Registrable Securities.

 

“Indemnifying Party” shall have the meaning set forth in Section 2.07(c).

 

“Indemnitee” shall have the meaning set forth in Section 2.07(c).

 

“Initiating Holder” shall have the meaning set forth in Section 2.01(a).

 

“Law” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Losses” shall have the meaning set forth in Section 2.07(a).

 

“Offering Confidential Information” shall mean, with respect to a Piggyback Registration, (i) SpinCo’s plan to file the relevant Registration Statement and engage in the offering being registered, (ii) any information regarding the offering being registered (including the potential timing, price, number of shares, underwriters or other counterparties, selling stockholders or plan of distribution) and (iii) any other information (including information contained in draft supplements or amendments to offering materials) provided to any Holders by SpinCo (or by third parties) in connection with a Piggyback Registration; provided, that Offering Confidential Information shall not include information that (x) was or becomes generally available to the public (including as a result of the filing of the relevant Registration Statement) other than as a result of a disclosure by any Holder, (y) was or becomes available to any Holder from a source not bound by any confidentiality agreement with SpinCo or (z) was otherwise in such Holder’s possession prior to it being furnished to such Holder by SpinCo or on SpinCo’s behalf.

 

“Other Holders” shall have the meaning set forth in Section 2.01(f).

 

“Parent” shall have the meaning set forth in the Preamble.

 

“Parent Board” shall have the meaning set forth in the Recitals.

 

3

 

“Parent Group” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Participating Banks” means such investment banks that engage in any Debt Exchange with one or more members of the Parent Group.

 

“Parties” shall mean the parties to this Agreement.

 

“Permitted Transferee” shall mean any Transferee and any Subsequent Transferee.

 

“Person” shall mean an individual, a general or limited partnership, a corporation, a trust, a joint venture, an unincorporated organization, a limited liability entity, any other entity and any Governmental Authority.

 

“Piggyback Registration” shall have the meaning set forth in Section 2.02(a).

 

“Private Debt Exchange” shall mean a private exchange pursuant to which one or more members of the Parent Group shall Sell some or all of their Registrable Securities to one or more Participating Banks in exchange for the satisfaction of Debt, in a transaction or transactions not required to be registered under the Securities Act.

 

“Prospectus” shall mean the prospectus included in any Registration Statement, all amendments and supplements to such prospectus (including, for the avoidance of doubt, any Takedown Prospectus Supplement), including post-effective amendments, and all other material incorporated by reference in such prospectus.

 

“Public Debt Exchange” shall mean a public exchange pursuant to which one or more members of the Parent Group shall Sell some or all of their Registrable Securities to one or more Participating Banks in exchange for the satisfaction of Debt, in a transaction or transactions registered under the Securities Act.

 

“Registrable Securities” shall mean the Retained Shares and any SpinCo Shares or other securities issued with respect to, in exchange for, or in replacement of such Retained Shares; provided, that the term “Registrable Securities” excludes any security (i) the offering and Sale of which has been effectively registered under the Securities Act and which has been Sold in accordance with a Registration Statement, (ii) that has been Sold by a Holder in a transaction or transactions exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(1) thereof (including transactions pursuant to Rule 144) such that the further Sale of such securities by the transferee or assignee is not restricted under the Securities Act or (iii) that has been Sold by a Holder in a transaction in which such Holder’s rights under this Agreement are not, or cannot be, assigned.

 

“Registration” shall mean a registration with the SEC of the offer and Sale to the public of any Registrable Securities under a Registration Statement.  The terms “Register” and “Registering” shall have correlative meanings.

 

4

 

“Registration Expenses” shall mean all expenses incident to the SpinCo Group’s performance of or compliance with this Agreement, including all (i) registration, qualification and filing fees, (ii) fees and expenses of compliance with securities or blue sky Laws (including reasonable fees and disbursements of counsel in connection with blue sky qualifications within the United States of any Registrable Securities being registered), (iii) printing expenses, messenger, telephone and delivery expenses, (iv) internal expenses of SpinCo Group (including all salaries and expenses of employees of members of SpinCo Group performing legal or accounting duties), (v) fees and disbursements of counsel for Parent and SpinCo and customary fees and expenses for independent certified public accountants retained by the SpinCo Group (including the expenses of any comfort letters or costs associated with the delivery by SpinCo Group members’ independent certified public accountants of comfort letters customarily requested by underwriters) and (vi) fees and expenses of listing any Registrable Securities on any securities exchange on which the SpinCo Shares are then listed and Financial Industry Regulatory Authority registration and filing fees; but excluding any fees or disbursements of any Holder, all expenses incurred in connection with the printing, mailing and delivering of copies of any Registration Statement, any Prospectus, any other offering documents and any amendments and supplements thereto to any underwriters and dealers; any underwriting discounts, fees or commissions attributable to the offer and Sale of any Registrable Securities, any fees and expenses of the underwriters or dealer managers, the cost of preparing, printing or producing any agreements among underwriters, underwriting agreements and blue sky or legal investment memoranda, any selling agreements and any other similar documents in connection with the offering, Sale, distribution or delivery of the Registrable Securities or other SpinCo Shares to be Sold, including any fees of counsel for any underwriters in connection with the qualification of the Registrable Securities or other SpinCo Shares to be Sold for offering and Sale or distribution under state securities Laws, any stock transfer taxes, out-of-pocket costs and expenses relating to any investor presentations on any “road show” presentations undertaken in connection with marketing of the Registrable Securities and any fees and expenses of any counsel to the Holder or the underwriters or dealer managers.

 

“Registration Period” shall have the meaning set forth in Section 2.01(c).

 

“Registration Rights” shall mean the rights of the Holders to cause SpinCo to Register Registrable Securities pursuant to Article II.

 

“Registration Statement” shall mean any registration statement of SpinCo filed with, or to be filed with, the SEC under the rules and regulations promulgated under the Securities Act, including the related Prospectus, amendments and supplements to such registration statement, including post-effective amendments, and all exhibits and all material incorporated by reference into such registration statement.  For the avoidance of doubt, it is acknowledged and agreed that such Registration Statement may be on any applicable form, including Form S-1, Form S-3, Form S-3ASR or Form S-4 and may be a Shelf Registration Statement.

 

“Retained Shares” shall have the meaning set forth in the recitals.

 

“Sale” shall mean the direct or indirect transfer, sale, assignment or other disposition of a security.  The terms “Sell” and “Sold” shall have correlative meanings.

 

5

 

“SEC” shall mean the U.S. Securities and Exchange Commission.

 

“Securities Act” shall mean the U.S. Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder.

 

“Separation and Distribution Agreement” shall mean the Separation and Distribution Agreement by and between Parent and SpinCo in connection with the Separation and the Distribution, as it may be amended, modified or supplemented from time to time.

 

“Shelf Registration” means a registration pursuant to a Shelf Registration Statement.

 

“Shelf Registration Statement” shall mean a Registration Statement of SpinCo for an offering of Registrable Securities to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act (or similar provisions then in effect).

 

“Subsequent Transferee” shall have the meaning set forth in Section 4.05(b).

 

“Subsidiary” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Takedown Prospectus Supplement” shall have the meaning set forth in Section 2.01(g).

 

“Takedown Request” shall have the meaning set forth in Section 2.01(g).

 

“Third Party” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“Transferee” shall have the meaning set forth in Section 4.05(b).

 

“Underwritten Offering” shall mean a Registration in which Registrable Securities are Sold to an underwriter or underwriters on a firm commitment basis for reoffering to the public.

 

“SpinCo” shall have the meaning set forth in the Preamble.

 

“SpinCo Board” shall mean the board of directors of SpinCo.

 

“SpinCo Group” shall have the meaning given to such term in the Separation and Distribution Agreement.

 

“SpinCo Public Sale” shall have the meaning set forth in Section 2.02(a).

 

“SpinCo Shares” shall mean the shares of common stock, par value $0.01 per share, of SpinCo.

 

6

 

ARTICLE II    REGISTRATION RIGHTS

 

Section 2.01                             Registration.

 

(a)                                 At any time prior to or on the fifth anniversary of the Distribution Date, any Holder(s) of 10% or more of the then-outstanding Registrable Securities (and any Holders acting together which collectively hold 10% or more of the then outstanding Registrable Securities) (collectively, the “Initiating Holder”; provided, that the 10% ownership threshold shall not apply to any Holder that is a member of the Parent Group) shall have the right to request that SpinCo file a Registration Statement with the SEC on the appropriate registration form for all or part of the Registrable Securities held by such Initiating Holder, by delivering a written request thereof to SpinCo specifying the number of shares of Registrable Securities such Initiating Holder wishes to register (a “Demand Registration”).  SpinCo shall (i) within five days of the receipt of a Demand Registration, give written notice of such Demand Registration to all Holders of Registrable Securities, (ii) use its reasonable best efforts to prepare and file the Registration Statement as expeditiously as possible, but in any event within 30 days of such request and (iii) use its reasonable best efforts to cause the Registration Statement to become effective in respect of each Demand Registration in accordance with the intended method of distribution set forth in the written request delivered by the Initiating Holder.  SpinCo shall include in such Registration all Registrable Securities with respect to which SpinCo receives, within the 10 days immediately following the receipt by the Holder(s) of such notice from SpinCo, a request for inclusion in the Registration from the Holder(s) thereof.  Each such request from a Holder of Registrable Securities for inclusion in the Registration shall also specify the aggregate amount of Registrable Securities proposed to be Registered.  The Initiating Holder may request that the Registration Statement be on any appropriate form, including Form S-4 in the case of an Exchange Offer or an S-3 in the case of a Shelf Registration Statement, and SpinCo shall effect the Registration on the form so requested.

 

(b)                                 The Holder(s) may collectively make a total of two Demand Registration requests pursuant to Section 2.01(a) (including any exercise of rights to Demand Registration transferred pursuant to Section 4.05 and including any exercise of rights to Demand Registration made pursuant to any registration rights agreement entered into pursuant to Section 2.05).  In addition, and notwithstanding anything to the contrary, the Parent Group shall be permitted to engage in up to four Private Debt Exchanges within any nine-month period following the date hereof, and Demand Registration request(s) made by the Participating Banks in such Private Debt Exchanges pursuant to one or more registration rights agreements with SpinCo pursuant to Section 2.05 shall collectively count only as one Demand Registration request for purposes of the limitation on the number of Demand Registration requests set forth in the first sentence of this Section 2.01(b) (it being understood that the Parent Group shall be permitted to engage in additional Private Debt Exchanges outside such nine-month period, but each Demand Registration request by the Participating Banks for such Private Debt Exchange pursuant to its registration rights agreement with SpinCo pursuant to Section 2.05 shall count as an additional Demand Registration request for purposes of the limitation on the number of Demand Registration requests set forth in the first sentence of this Section 2.01(b)).  Furthermore, and notwithstanding anything to the contrary, if, at the time of the second Demand Registration, SpinCo is prohibited under then-existing SEC rules from registering all remaining Registrable Securities pursuant to a Shelf Registration, regardless of whether the Holder or Holders has

 

7

 

requested that such third Demand Registration be a Shelf Registration or otherwise, then such Demand Registration shall not count toward the total number of Demand Registration requests made by the Holder(s), and the Holder(s) shall continue to be able to make additional Demand Registration requests until such time as SpinCo is permitted under then-existing SEC rules to register all of the remaining Registrable Securities pursuant to a Shelf Registration.

 

(c)                                  SpinCo shall be deemed to have effected a Registration for purposes of this Section 2.01 if the Registration Statement is declared effective by the SEC or becomes effective upon filing with the SEC and remains effective until the earlier of (i) the date when all Registrable Securities thereunder have been Sold and (ii) in the case of a Registration Statement that is not a Shelf Registration Statement, (x) 60 days from the effective date of the Registration Statement, in the case of a Shelf Registration Statement on Form S-1, (y) 12 months from the effective date of the Shelf Registration Statement on Form S-3 or (z) 24 months from the effective date of the Shelf Registration Statement in the case of a Shelf Registration Statement on any other form (such period, as applicable, the “Registration Period”).  No Registration shall be deemed to have been effective if the conditions to closing specified in the underwriting agreement or dealer manager agreement, if any, entered into in connection with such Registration are not satisfied by reason of a wrongful act, misrepresentation or breach of such applicable underwriting agreement or dealer manager agreement by any member of the SpinCo Group.  If during the Registration Period, such Registration is interfered with by any stop order, injunction or other order or requirement of the SEC or other Governmental Authority or the need to update or supplement the Registration Statement, the Registration Period shall be extended on a day-for-day basis for any period in which the Holder(s) is unable to complete an offering as a result of such stop order, injunction or other order or requirement of the SEC or other Governmental Authority.

 

(d)                                 With respect to any Registration Statement or Takedown Prospectus Supplement, whether filed or to be filed pursuant to this Agreement, if SpinCo shall reasonably determine, upon the advice of legal counsel, that maintaining the effectiveness of such Registration Statement or filing an amendment or supplement thereto (or, if no Registration Statement has yet been filed, filing such a Registration Statement), or filing such Takedown Prospectus Supplement, would (i) require the public disclosure of material nonpublic information concerning any transaction or negotiations involving SpinCo or any of its consolidated Subsidiaries that would materially interfere with such transaction or negotiations or (ii) require the public disclosure of material nonpublic information concerning SpinCo that, if disclosed at such time, would be materially adverse to SpinCo (a “Disadvantageous Condition”), SpinCo may, for the shortest period reasonably practicable, and in any event for not more than 60 consecutive calendar days (a “Blackout Period”), notify the Holders whose offers and Sales of Registrable Securities are covered (or to be covered) by such Registration Statement or Takedown Prospectus Supplement that such Registration Statement is unavailable for use (or will not be filed as requested) (such notice, a “Blackout Notice”).  Upon the receipt of any Blackout Notice, the Holders shall forthwith discontinue use of the Prospectus or Takedown Prospectus Supplement contained in any effective Registration Statement; provided, that, if at the time of receipt of such Blackout Notice any Holder shall have Sold its Registrable Securities (or have signed a firm commitment underwriting agreement with respect to the purchase of such shares) and the Disadvantageous Condition is not of a nature that would require a post-effective amendment to the Registration Statement or Takedown Prospectus Supplement, then SpinCo

 

8

 

shall use its commercially reasonable efforts to take such action as to eliminate any restriction imposed by federal securities Laws on the timely delivery of such Registrable Securities.  When any Disadvantageous Condition as to which a Blackout Notice has been previously delivered shall cease to exist, SpinCo shall as promptly notify the Holders and take such actions in respect of such Registration Statement or Takedown Prospectus Supplement as are otherwise required by this Agreement.  The effectiveness period for any Demand Registration or Shelf Registration Statement for which SpinCo has given notice of a Blackout Period shall be increased by the length of time of such Blackout Period.  SpinCo shall not impose, in any 365-day period, Blackout Periods lasting, in the aggregate, in excess of 90 calendar days.  If SpinCo declares a Blackout Period with respect to a Demand Registration for a Registration Statement that has not yet been declared effective or a Takedown Request for which a Takedown Prospectus Supplement has not yet been filed, (i) the Holders may by notice to SpinCo withdraw the related Demand Registration request or Takedown Request, in the case of a Demand Registration request without such Demand Registration request counting against the number of Demand Registration requests permitted to be made under Section 2.01(b), and (ii) the Holders shall not be responsible for any of SpinCo’s related Registration Expenses.

 

(e)                                  If the Initiating Holder so indicates at the time of its request pursuant to Section 2.01(a) or Section 2.01(g), such offering of Registrable Securities shall be in the form of an Underwritten Offering or an Exchange Offer, and SpinCo shall include such information in the written notice to the Holders required under Section 2.01(a).  In the event that the Initiating Holder intends to Sell the Registrable Securities by means of an Underwritten Offering or Exchange Offer, the right of any Holder to include Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such Underwritten Offering or Exchange Offer and the inclusion of such Holder’s Registrable Securities in the Underwritten Offering or the Exchange Offer to the extent provided herein.  The Holders of a majority of the outstanding Registrable Securities being included in any Underwritten Offering or Exchange Offer shall select the underwriter(s) in the case of an Underwritten Offering or the dealer manager(s) in the case of an Exchange Offer, provided that such underwriter(s) or dealer manager(s) are reasonably acceptable to SpinCo.  SpinCo shall be entitled to designate counsel for such underwriter(s) or dealer manager(s) (subject to their approval), provided that such designated underwriters’ counsel shall be a firm of national reputation representing underwriters or dealer managers in capital markets transactions.

 

(f)                                   If the managing underwriter or underwriters of a proposed Underwritten Offering of Registrable Securities included in a Registration pursuant to this Section 2.01 inform(s) in writing the Holders participating in such Registration that, in its or their opinion, the number of securities requested to be included in such Registration exceeds the number that can be Sold in such offering without being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, the number of Registrable Securities to be included in such Registration shall be reduced to the maximum number recommended by the managing underwriter or underwriters and allocated first to any members of the Parent Group participating in the Registration, and then pro rata among the other Holders, including the Initiating Holder (other than any member of the Parent Group), in proportion to the number of Registrable Securities each Holder has requested to be included in such Registration; provided, that the Initiating Holder may notify SpinCo in writing that the Registration Statement shall be abandoned or withdrawn, in which event SpinCo shall abandon

 

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or withdraw such Registration Statement.  In the event the Initiating Holder notifies SpinCo that such Registration Statement shall be abandoned or withdrawn, such Holder shall not be deemed to have requested a Demand Registration pursuant to Section 2.01(a), and SpinCo shall not be deemed to have effected a Demand Registration pursuant to Section 2.01(b).  If the amount of Registrable Securities to be underwritten has not been limited in accordance with the first sentence of this Section 2.01(f), SpinCo and the holders of SpinCo Shares or, if the Registrable Securities include securities other than SpinCo Shares, the holders of securities of the same class of those securities included in the Registrable Securities, in each case, other than the Holders (“Other Holders”), may include such securities for their own account or for the account of Other Holders in such Registration if the underwriter(s) so agree and to the extent that, in the opinion of such underwriter(s), the inclusion of such additional amount will not adversely affect the offering of the Registrable Securities included in such Registration.

 

(g)                                  With respect to any Demand Registration, the requesting Holders may request that SpinCo effect a registration of the Registrable Securities under a Shelf Registration, in which event SpinCo shall file, and shall thereafter use its commercially reasonable efforts to make and keep effective in accordance with Section 2.01(c) (including by renewing or refiling upon expiration), a Shelf Registration Statement; provided, that SpinCo shall not be required to maintain in effect more than one Shelf Registration at any one time pursuant to this Section 2.01(g).  Thereafter, SpinCo shall, as promptly as reasonably practicable following the written request of Holders for a resale of Registrable Securities (a “Takedown Request”), file a prospectus supplement (a “Takedown Prospectus Supplement”) to such Shelf Registration Statement under Rule 424 promulgated under the Securities Act with respect to resales of the Registrable Securities pursuant to Holder’s intended method of distribution thereof.  Each Takedown Request shall specify the Registrable Securities to be registered, their aggregate amount and the intended method or methods of distribution thereof.  If, in the case of an Underwritten Offering pursuant to a Takedown Request, the requesting Holder(s) so elect, such offering shall be in the form of a Block Trade, in which such event the requesting Holder(s) shall give at least eight (8) business days’ prior notice in writing of such transaction to SpinCo (which such notice shall identify the potential underwriter(s) and include contact information for such underwriter(s)), and SpinCo shall use commercially reasonable efforts to cooperate with such requesting Holder(s) to the extent it is reasonably able and shall not be required to give notice thereof to other Holders of Registrable Securities or permit their participation therein unless SpinCo determines it is reasonably practicable to do so.  In no event shall SpinCo be required to effect, pursuant to this Section 2.01(g), during any 90-day period, more than (A) two Block Trades or (B) more than one Underwritten Offering that is not a Block Trade pursuant to a Takedown Request (it being understood, for the avoidance of doubt, that a Takedown Request shall not count as a Demand Registration request for purposes of the limit set forth in Section 2.01(b)).

 

Section 2.02                             Piggyback Registrations.

 

(a)                                 At any time prior to the earlier to occur of the fifth anniversary of the Distribution Date or the date on which the Registrable Securities then held by the Holder(s) represent less than 1% of the then-issued and outstanding SpinCo Shares (or, if the Registrable Securities include securities other than SpinCo Shares, less than 1% of the then-issued and outstanding securities of the same class as the securities included in the Registrable Securities), if

 

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SpinCo proposes to file a Registration Statement (other than a Shelf Registration) or a Prospectus supplement filed pursuant to a Shelf Registration Statement under the Securities Act with respect to any offering of such securities for its own account and/or for the account of any Other Holders (other than (i) a Registration or Takedown Prospectus Supplement under Section 2.01, (ii) a Registration pursuant to a Registration Statement on Form S-8 or Form S-4 or similar form that relates to a transaction subject to Rule 145 under the Securities Act, (iii) in connection with any dividend reinvestment or similar plan, (iv) for the purpose of offering securities to another entity or its security holders in connection with the acquisition of assets or securities of such entity or any similar transaction or (v) a Registration in which the only SpinCo Shares being registered are SpinCo Shares issuable upon conversion of debt securities that are also being registered) (a “SpinCo Public Sale”), then, as soon as practicable, but in any event not less than 15 days prior to the proposed date of filing such Registration Statement, SpinCo shall give written notice of such proposed filing to each Holder, and such notice shall offer such Holders the opportunity to Register under such Registration Statement such number of Registrable Securities as each such Holder may request in writing (a “Piggyback Registration”).   Subject to Section 2.02(b) and Section 2.02(c), SpinCo shall use its reasonable best efforts to include in a Registration Statement with respect to a SpinCo Public Sale all Registrable Securities that are requested to be included therein within five business days after the receipt of any such notice; provided, however, that if, at any time after giving written notice of its intention to Register any securities and prior to the effective date of the Registration Statement filed in connection with such Registration, SpinCo shall determine for any reason not to Register or to delay Registration of the SpinCo Public Sale, SpinCo may, at its election, give written notice of such determination to each such Holder and, thereupon, (x) in the case of a determination not to Register, shall be relieved of its obligation to Register any Registrable Securities in connection with such Registration, without prejudice, however, to the rights of any Holder to request that such Registration be effected as a Demand Registration under Section 2.01 and (y) in the case of a determination to delay Registration, shall be permitted to delay Registering any Registrable Securities for the same period as the delay in Registering such other SpinCo Shares in the SpinCo Public Sale.  No Registration effected under this Section 2.02 shall relieve SpinCo of its obligation to effect any Demand Registration under Section 2.01.  For purposes of clarification, SpinCo’s filing of a Shelf Registration Statement shall not be deemed to be a SpinCo Public Sale; provided, however, that any prospectus supplement filed pursuant to a Shelf Registration Statement with respect to an offering of SpinCo Shares for its own account and/or for the account of any other Persons will be a SpinCo Public Sale, unless such offering qualifies for an exemption from the SpinCo Public Sale definition in this Section 2.02(a).

 

(b)                                 In the case of any Underwritten Offering, each Holder shall have the right to withdraw such Holder’s request for inclusion of its Registrable Securities in such Underwritten Offering pursuant to Section 2.02(a) at any time prior to the execution of an underwriting agreement with respect thereto by giving written notice to SpinCo of such Holder’s request to withdraw and, subject to the preceding clause, each Holder shall be permitted to withdraw all or part of such Holder’s Registrable Securities from a Piggyback Registration at any time prior to the effective date thereof.

 

(c)                                  If the managing underwriter or underwriters of any proposed Underwritten Offering of a class of Registrable Securities included in a Piggyback Registration informs SpinCo and each Holder in writing that, in its or their opinion, the number of securities of such

 

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class that such Holder and any other Persons intend to include in such offering exceeds the number that can be Sold in such offering without being likely to have an adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, then the securities to be included in such Registration shall be (i) first, all securities of SpinCo and any other Persons (other than SpinCo’s executive officers and directors) for whom SpinCo is effecting the Registration, as the case may be, proposes to Sell, (ii) second, the number, if any, of Registrable Securities of such class that, in the opinion of such managing underwriter or underwriters, can be Sold without having such adverse effect, with such number to be allocated pro rata among the members of the Parent Group that hold Registrable Securities and have requested to participate in such Registration based on the relative number of Registrable Securities of such class requested by such Person to be included in such Sale, (iii) third, the number, if any, of Registrable Securities of such class that, in the opinion of such managing underwriter or underwriters, can be Sold without having such adverse effect, with such number to be allocated pro rata among the Holders (other than members of the Parent Group) that hold Registrable Securities and have requested to participate in such Registration based on the relative number of Registrable Securities of such class requested by such Person to be included in such Sale, (iv) fourth, the number of securities of executive officers and directors of SpinCo for whom SpinCo is effecting the Registration, as the case may be, with such number to be allocated pro rata among the executive officers and directors and (v) fifth, any other securities eligible for inclusion in such Registration, allocated among the holders of such securities in such proportion as SpinCo and those holders may agree.

 

(d)                                 After a Holder has been notified of its opportunity to include Registrable Securities in a Piggyback Registration, such Holder shall (i) treat the Offering Confidential Information as confidential information, (ii) not use any Offering Confidential Information for any purpose other than to evaluate whether to include its Registrable Securities (or other SpinCo Shares) in such Piggyback Registration and (iii) not disclose any Offering Confidential Information to any Person other than such of its agents, employees, advisors and counsel as have a need to know such Offering Confidential Information, and to cause such agents, employees, advisors and counsel to comply with the requirements of this Section 2.02(d); provided, that any such Holder may disclose Offering Confidential Information if such disclosure is required by legal process, but such Holder shall cooperate with SpinCo to limit the extent of such disclosure through protective order or otherwise, and to seek confidential treatment of the Offering Confidential Information.

 

Section 2.03                             Registration Procedures.

 

(a)                                 In connection with SpinCo’s Registration obligations under Section 2.01 and Section 2.02, SpinCo shall use its commercially reasonable efforts to effect such Registration to permit the offer and Sale of such Registrable Securities in accordance with the intended method or methods of distribution thereof as expeditiously as practicable, and in connection therewith, SpinCo shall, and shall cause the members of the SpinCo Group to:

 

(i)                                     prepare and file the required Registration Statement or Takedown Prospectus Supplement, including all exhibits and financial statements and, in the case of an Exchange Offer, any document required under Rule 425 or Rule 165 with respect to such Exchange Offer (collectively, the “Ancillary Filings”)

 

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required under the Securities Act to be filed therewith, and before filing with the SEC a Registration Statement or Prospectus, or any amendments or supplements thereto, (A) furnish to the underwriters or dealer managers, if any, and to the Holders, copies of all documents prepared to be filed, which documents shall be subject to the review and comment of such underwriters or dealer managers and such Holders and their respective counsel, and provide such underwriters or dealer managers, if any, and such Holders and their respective counsel reasonable time to review and comment thereon and (B) not file with the SEC any Registration Statement or Prospectus or amendments or supplements thereto or any Ancillary Filing to which the Holders or the underwriters or dealer managers, if any, shall reasonably object;

 

(ii)                                  prepare and file with the SEC such amendments and post-effective amendments to such Registration Statement and supplements to the Prospectus and any Ancillary Filing as may be reasonably requested by the participating Holders;

 

(iii)                               promptly notify the participating Holders and the managing underwriters or dealer managers, if any, and, if requested, confirm such advice in writing and provide copies of the relevant documents, as soon as reasonably practicable after notice thereof is received by any member of the SpinCo Group (A) when the applicable Registration Statement or any amendment thereto has been filed or becomes effective, the applicable Prospectus or any amendment or supplement to such Prospectus has been filed, or any Ancillary Filing has been filed, (B) of any comments (written or oral) by the SEC or any request (written or oral) by the SEC or any other Governmental Authority for amendments or supplements to such Registration Statement, such Prospectus or any Ancillary Filing, or for any additional information, (C) of the issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement, any order preventing or suspending the use of any preliminary or final Prospectus or any Ancillary Filing, or the initiation or threatening of any proceedings for such purposes, (D) if, at any time, the representations and warranties (written or oral) in any applicable underwriting agreement or dealer manager agreement cease to be true and correct in all material respects and (E) of the receipt by any member of the SpinCo Group of any notification with respect to the suspension of the qualification of the Registrable Securities for offering or Sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;

 

(iv)                              (A) promptly notify each participating Holder and the managing underwriter(s) or dealer manager(s), if any, when SpinCo becomes aware of the occurrence of any event as a result of which the applicable Registration Statement, the Prospectus included in such Registration Statement (as then in effect) or any Ancillary Filing contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein (in the case of such Prospectus and any preliminary Prospectus, in light of the circumstances under which they were made) not misleading, or if for any other reason it shall be necessary during such time period to amend or supplement such Registration

 

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Statement, Prospectus or any Ancillary Filing in order to comply with the Securities Act, and (B) in either case, as promptly as reasonably practicable thereafter, prepare and file with the SEC, and furnish without charge to each participating Holder and the underwriter(s) or dealer manager(s), if any, an amendment or supplement to such Registration Statement, Prospectus or Ancillary Filing that will correct such statement or omission or effect such compliance;

 

(v)                                 use its commercially reasonable efforts to prevent or obtain the withdrawal of any stop order or other order suspending the use of any preliminary or final Prospectus;

 

(vi)                              promptly (A) incorporate in a Prospectus supplement or post-effective amendment such information as the managing underwriter(s) or dealer manager(s), if any, and the Holders agree should be included therein relating to the plan of distribution with respect to such Registrable Securities and (B) make all required filings of such Prospectus supplement or post-effective amendment as soon as reasonably practicable after being notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment;

 

(vii)                           furnish to each participating Holder and each underwriter or dealer manager, if any, without charge, as many conformed copies as such Holder or underwriter or dealer manager may reasonably request of the applicable Registration Statement and any amendment or post-effective amendment thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits (including those incorporated by reference);

 

(viii)                        deliver to each participating Holder and each underwriter or dealer manager, if any, without charge, as many copies of the applicable Prospectus (including each preliminary Prospectus) and any amendment or supplement thereto as such Holder or underwriter or dealer manager may reasonably request (it being understood that SpinCo consents to the use of such Prospectus or any amendment or supplement thereto by each participating Holder and the underwriter(s) or dealer manager(s), if any, in connection with the offering and Sale of the Registrable Securities covered by such Prospectus or any amendment or supplement thereto) and such other documents as such participating Holder or underwriter or dealer manager may reasonably request in order to facilitate the Sale of the Registrable Securities by such Holder or underwriter or dealer manager;

 

(ix)                              on or prior to the date on which the applicable Registration Statement is declared effective or becomes effective, use its commercially reasonable efforts to register or qualify, and cooperate with each participating Holder, the managing underwriter(s) or dealer manager(s), if any, and their respective counsel, in connection with the registration or qualification of, such Registrable Securities for offer and Sale under the securities or “blue sky” Laws of each state and other jurisdiction of the United States as any participating

 

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Holder or managing underwriter(s) or dealer manager(s), if any, or their respective counsel reasonably request, and in any foreign jurisdiction mutually agreeable to SpinCo and the participating Holders, and do any and all other acts or things reasonably necessary or advisable to keep such registration or qualification in effect for so long as such Registration Statement remains in effect and so as to permit the continuance of offers and Sales and dealings in such jurisdictions for so long as may be necessary to complete the distribution of the Registrable Securities covered by the Registration Statement; provided that SpinCo will not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, to take any action which would subject it to taxation or general service of process in any such jurisdiction where it is not then so subject or conform its capitalization or the composition of its assets at the time to the securities or blue sky Laws of any such jurisdiction;

 

(x)                                 in connection with any Sale of Registrable Securities that will result in such securities no longer being Registrable Securities, cooperate with each participating Holder and the managing underwriter(s) or dealer manager(s), if any, to (A) facilitate the timely preparation and delivery of certificates representing Registrable Securities to be Sold and not bearing any restrictive Securities Act legends and (B) register such Registrable Securities in such denominations and such names as such participating Holder or the underwriter(s) or dealer manager(s), if any, may request at least two business days prior to such Sale of Registrable Securities; provided that SpinCo may satisfy its obligations hereunder without issuing physical stock certificates through the use of the Depository Trust Company’s Direct Registration System;

 

(xi)                              cooperate and assist in any filings required to be made with the Financial Industry Regulatory Authority and each securities exchange, if any, on which any of SpinCo’s securities are then listed or quoted and on each inter-dealer quotation system on which any of SpinCo’s securities are then quoted, and in the performance of any due diligence investigation by any underwriter or dealer manager (including any “qualified independent underwriter”) that is required to be retained in accordance with the rules and regulations of each such exchange, and use its commercially reasonable efforts to cause the Registrable Securities covered by the applicable Registration Statement to be registered with or approved by such other Governmental Authorities as may be necessary to enable the seller or sellers thereof or the underwriter(s) or dealer manager(s), if any, to consummate the Sale of such Registrable Securities;

 

(xii)                           not later than the effective date of the applicable Registration Statement, provide a CUSIP number for all Registrable Securities and provide the applicable transfer agent with printed certificates for the Registrable Securities which are in a form eligible for deposit with the Depository Trust Company; provided, that SpinCo may satisfy its obligations hereunder without issuing physical stock certificates through the use of the Depository Trust Company’s Direct Registration System;

 

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(xiii)                        obtain for delivery to and addressed to each participating Holder and to the underwriter(s) or dealer manager(s), if any, opinions from counsel for SpinCo, in each case dated the effective date of the Registration Statement or, in the event of an Underwritten Offering, the date of the closing under the underwriting agreement or, in the event of an Exchange Offer, the date of the closing under the dealer manager agreement or similar agreement or otherwise, and in each such case in customary form and content for the type of Underwritten Offering or Exchange Offer, as applicable;

 

(xiv)                       in the case of an Underwritten Offering or Exchange Offer, obtain for delivery to and addressed to SpinCo and the managing underwriter(s) or dealer manager(s), if any, and, to the extent requested, each participating Holder, a cold comfort letter from SpinCo’s independent registered public accounting firm in customary form and content for the type of Underwritten Offering or Exchange Offer, dated the date of execution of the underwriting agreement or dealer manager agreement or, if none, the date of commencement of the Exchange Offer, and brought down to the closing, whether under the underwriting agreement or dealer manager agreement, if applicable, or otherwise;

 

(xv)                          in the case of an Exchange Offer that does not involve a dealer manager, provide to each participating Holder such customary written representations and warranties or other covenants or agreements as may be requested by any participating Holder comparable to those that would be included in an underwriting or dealer manager agreement;

 

(xvi)                       use its commercially reasonable efforts to comply with all applicable rules and regulations of the SEC and make generally available to its security holders, as soon as reasonably practicable, but in any event no later than 90 days, after the end of the 12-month period beginning with the first day of SpinCo’s first quarter commencing after the effective date of the applicable Registration Statement, an earnings statement satisfying the provisions of Section 11(a) of the Securities Act and covering the period of at least 12 months, but not more than 18 months, beginning with the first month after the effective date of the Registration Statement;

 

(xvii)                    provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by the applicable Registration Statement from and after a date not later than the effective date of such Registration Statement;

 

(xviii)                 cause all Registrable Securities covered by the applicable Registration Statement to be listed on each securities exchange on which any of SpinCo’s securities are then listed or quoted and on each inter-dealer quotation system on which any of SpinCo’s securities are then quoted;

 

(xix)                       provide (A) each Holder participating in the Registration, (B) the underwriters (which term, for purposes of this Agreement, shall include any

 

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Person deemed to be an underwriter within the meaning of Section 2(11) of the Securities Act), if any, of the Registrable Securities to be registered, (C) the Sale or placement agent therefor, if any, (D) the dealer manager therefor, if any, (E) counsel for such Holder, underwriters, agent, or dealer manager and (F) any attorney, accountant or other agent or representative retained by such Holder or any such underwriter or dealer manager, as selected by such Holder, in each case, the opportunity to participate in the preparation of such Registration Statement, each Prospectus included therein or filed with the SEC, and each amendment or supplement thereto; and for a reasonable period prior to the filing of such Registration Statement, upon execution of a customary confidentiality agreement, make available for inspection upon reasonable notice at reasonable times and for reasonable periods, by the parties referred to in clauses (A) through (F) above, all pertinent financial and other records, pertinent corporate and other documents and properties of the SpinCo Group that are available to SpinCo, and cause all of the SpinCo Group’s officers, directors and employees and the independent public accountants who have certified its financial statements to make themselves available at reasonable times and for reasonable periods to discuss the business of SpinCo and to supply all information available to SpinCo reasonably requested by any such Person in connection with such Registration Statement as shall be necessary to enable them to exercise their due diligence or other responsibility, subject to the foregoing; provided, that in no event shall any member of the SpinCo Group be required to make available any information which the SpinCo Board determines in good faith to be competitively sensitive or confidential.  The recipients of such information shall coordinate with one another so that the inspection permitted hereunder will not unnecessarily interfere with the SpinCo Group’s conduct of business.  Each Holder agrees that information obtained by it as a result of such inspections shall be deemed confidential and shall not be used by it as the basis for any market transactions in the securities of SpinCo or its Affiliates unless and until such information is made generally available to the public by SpinCo or such Affiliate or for any reason not related to the Registration of Registrable Securities;

 

(xx)                          cause the senior executive officers of SpinCo to participate at reasonable times and for reasonable periods in the customary “road show” presentations that may be reasonably requested by the managing underwriter(s) or dealer manager(s), if any, and otherwise to facilitate, cooperate with, and participate in each proposed offering contemplated herein and customary selling efforts related thereto;

 

(xxi)                       comply with all requirements of the Securities Act, Exchange Act and other applicable Laws, rules and regulations, as well as all applicable stock exchange rules; and

 

(xxii)                    take all other customary steps reasonably necessary or advisable to effect the Registration and distribution of the Registrable Securities contemplated hereby.

 

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(b)                                 As a condition precedent to any Registration hereunder, SpinCo may require each Holder as to which any Registration is being effected to furnish to SpinCo such information regarding the distribution of such securities and such other information relating to such Holder, its ownership of Registrable Securities and other matters as SpinCo may from time to time reasonably request in writing.  Each such Holder agrees to furnish such information to SpinCo and to cooperate with SpinCo as reasonably necessary to enable SpinCo to comply with the provisions of this Agreement.

 

(c)                                  Each Holder shall, as promptly as reasonably practicable, notify SpinCo, at any time when a Prospectus is required to be delivered (or deemed delivered) under the Securities Act, of the occurrence of an event, of which such Holder has knowledge, relating to such Holder or its Sale of Registrable Securities thereunder requiring the preparation of a supplement or amendment to such Prospectus so that, as thereafter delivered (or deemed delivered) to the purchasers of such Registrable Securities, such Prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they are made, not misleading.

 

(d)                                 Parent agrees (on behalf of itself and each member of the Parent Group), and any other Holder agrees by acquisition of such Registrable Securities, that, upon receipt of any written notice from SpinCo of the occurrence of any event of the kind described in Section 2.03(a)(iv), such Holder will forthwith discontinue Sales of Registrable Securities pursuant to such Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 2.03(a)(iv), or until such Holder is advised in writing by SpinCo that the use of the Prospectus may be resumed, and if so directed by SpinCo, such Holder will deliver to SpinCo, at SpinCo’s expense, all copies of the Prospectus covering such Registrable Securities current at the time of receipt of such notice.  In the event SpinCo shall give any such notice, the period during which the applicable Registration Statement is required to be maintained effective shall be extended by the number of days during the period from and including the date of the giving of such notice through the date when each seller of Registrable Securities covered by such Registration Statement either receives the copies of the supplemented or amended Prospectus contemplated by Section 2.03(a)(iv) or is advised in writing by SpinCo that the use of the Prospectus may be resumed.

 

Section 2.04                             Underwritten Offerings or Exchange Offers.

 

(a)                                 If requested by the managing underwriter(s) for any Underwritten Offering or dealer manager(s) for any Exchange Offer that is requested by Holders pursuant to a Demand Registration or Takedown Request under Section 2.01, SpinCo shall enter into an underwriting agreement or dealer manager agreement, as applicable, with such underwriter(s) or dealer manager(s) for such offering, such agreement to be reasonably satisfactory in substance and form to SpinCo and the underwriter(s) or dealer manager(s) and, if Parent Group is a participating Holder, to Parent Group.  Such agreement shall contain such representations and warranties by SpinCo and such other terms as are generally prevailing in agreements of that type.  Each Holder with Registrable Securities to be included in any Underwritten Offering or Exchange Offer by such underwriter(s) or dealer manager(s) shall enter into such underwriting agreement or dealer manager agreement at the request of SpinCo, which agreement shall contain

 

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such reasonable representations and warranties by the Holder and such other reasonable terms as are generally prevailing in agreements of that type.

 

(b)                                 In the event of a SpinCo Public Sale involving an offering of SpinCo Shares or other equity securities of SpinCo in an Underwritten Offering (whether in a Demand Registration or a Piggyback Registration or pursuant to a Takedown Request, whether or not the Holders participate therein), the Holders hereby agree, and, in the event of a SpinCo Public Sale of SpinCo Shares or other equity securities of SpinCo in an Underwritten Offering or an Exchange Offer, SpinCo shall agree, and, except in the case of a Shelf Registration, it shall cause its executive officers and directors to agree, if requested by the managing underwriter or underwriters in such Underwritten Offering or by the Holder or the dealer manager or dealer managers, in an Exchange Offer, not to effect any Sale or distribution (including any offer to Sell, contract to Sell, short Sale or any option to purchase) of any securities (except, in each case, as part of the applicable Registration, if permitted hereunder) that are of the same type as those being Registered in connection with such public offering and Sale, or any securities convertible into or exchangeable or exercisable for such securities, during the period beginning five days before, and ending 90 days (or such lesser period as may be permitted by SpinCo or the participating Holder(s), as applicable, or such managing underwriter or underwriters) after, the effective date of the Registration Statement filed in connection with such Registration (or, if later, the date of the Prospectus), to the extent timely notified in writing by such selling Person or the managing underwriter or underwriters or dealer manager or dealer managers.  The participating Holders and SpinCo, as applicable, also agree to execute an agreement evidencing the restrictions in this Section 2.04(b) in customary form, which form is reasonably satisfactory to SpinCo or the participating Holder(s), as applicable, and the underwriter(s) or dealer manager(s), as applicable; provided that such restrictions may be included in the underwriting agreement or dealer manager agreement, if applicable.  SpinCo may impose stop-transfer instructions with respect to the securities subject to the foregoing restriction until the end of the required stand-off period.

 

(c)                                  No Holder may participate in any Underwritten Offering or Exchange Offer hereunder unless such Holder (i) agrees to Sell such Holder’s securities on the basis provided in any underwriting arrangements or dealer manager agreements approved by SpinCo or other Persons entitled to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements, dealer manager agreements and other documents reasonably required under the terms of such underwriting arrangements or dealer manager agreements or this Agreement.

 

Section 2.05                             Registration Rights Agreement with Participating Banks.

 

If one or more members of the Parent Group decides to engage in a Private Debt Exchange with one or more Participating Banks, SpinCo shall enter into a registration rights agreement with the Participating Banks in connection with such Private Debt Exchange on terms and conditions consistent with this Agreement (other than the voting provisions contained in Article III hereof) and reasonably satisfactory to SpinCo and the Parent Group.

 

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Section 2.06                             Registration Expenses Paid by SpinCo.

 

In the case of any Registration of Registrable Securities required pursuant to this Agreement, SpinCo shall pay all Registration Expenses regardless of whether the Registration Statement becomes effective; provided, however, that SpinCo shall not be required to pay for any expenses of any Registration begun pursuant to Section 2.01 if the Demand Registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be Registered (in which case all participating Holders shall bear such expenses), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one Demand Registration to which they have the right pursuant to Section 2.01(b).

 

Section 2.07                             Indemnification.

 

(a)                                 SpinCo agrees to indemnify and hold harmless, to the full extent permitted by applicable Law, each Holder whose shares are included in a Registration Statement, such Holder’s Affiliates and their respective officers, directors, agents, advisors, employees and each Person, if any, who controls (within the meaning of the Securities Act or the Exchange Act) such Holder, from and against any and all losses, claims, damages, liabilities (or actions or proceedings in respect thereof, whether or not such indemnified party is a party thereto) and expenses, joint or several (including reasonable costs of investigation and legal expenses) (each, a “Loss” and collectively, “Losses”) arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement under which the offering and Sale of such Registrable Securities was Registered under the Securities Act (including any final or preliminary Prospectus contained therein or any amendment thereof or supplement thereto or any documents incorporated by reference therein), or any such statement made in any free writing prospectus (as defined in Rule 405 under the Securities Act) that SpinCo has filed or is required to file pursuant to Rule 433(d) of the Securities Act or any Ancillary Filing, (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, preliminary Prospectus or free writing prospectus, in light of the circumstances under which they were made) not misleading; provided, that with respect to any untrue statement or omission or alleged untrue statement or omission made in any Prospectus, the indemnity agreement contained in this paragraph shall not apply to the extent that any such liability results from or arises out of (A) the fact that a current copy of the Prospectus was not sent or given to the Person asserting any such liability at or prior to the written confirmation of the Sale of the Registrable Securities concerned to such Person if it is determined by a court of competent jurisdiction in a final and non-appealable judgment that SpinCo has provided such Prospectus and it was the responsibility of such Holder or its agents to provide such Person with a current copy of the Prospectus and such current copy of the Prospectus would have cured the defect giving rise to such liability, (B) the use of any Prospectus by or on behalf of any Holder after SpinCo has notified such Person in writing (x) that such Prospectus contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading or (y) that a stop order has been issued by the SEC with respect to a Registration Statement, or (C) any untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to SpinCo by or on behalf of the Indemnitee (as hereinafter defined), in either case expressly for use in such Registration Statement or

 

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Prospectus.  This indemnity shall be in addition to any liability SpinCo may otherwise have, including under the Separation and Distribution Agreement.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Holder or any indemnified party and shall survive the Sale of such securities by such Holder.

 

(b)                                 Each participating Holder whose Registrable Securities are included in a Registration Statement agrees (severally and not jointly) to indemnify and hold harmless, to the full extent permitted by applicable Law, SpinCo, its directors, officers, agents, advisors, employees and each Person, if any, who controls (within the meaning of the Securities Act and the Exchange Act) SpinCo from and against any and all Losses (i) arising out of or based upon information furnished in writing by such Holder or on such Holder’s behalf, in either case expressly for use in a Registration Statement, Prospectus relating to such Holder’s Registrable Securities or (ii) resulting from (A) the fact that a current copy of the Prospectus was not sent or given to the Person asserting any such liability at or prior to the written confirmation of the Sale of the Registrable Securities concerned to such Person if it is determined by a court of competent jurisdiction in a final and non-appealable judgment that it was the responsibility of such Holder or its agent to provide such Person with a current copy of the Prospectus and such current copy of the Prospectus would have cured the defect giving rise to such liability, or (B) the use of any Prospectus by or on behalf of any Holder after SpinCo has notified such Person in writing (x) that such Prospectus contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading or (y) that a stop order has been issued by the SEC with respect to a Registration Statement.  This indemnity shall be in addition to any liability the participating Holder may otherwise have, including under the Separation and Distribution Agreement.  In no event shall the liability of any participating Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such holder under the Sale of the Registrable Securities giving rise to such indemnification obligation.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of SpinCo or any indemnified party.

 

(c)                                  Any claim or action with respect to which a Party (an “Indemnifying Party”) may be obligated to provide indemnification to any Person entitled to indemnification hereunder (an “Indemnitee”) shall be subject to the procedures for indemnification set forth in Sections 4.4 and 4.5 of the Separation and Distribution Agreement.

 

(d)                                 If for any reason the indemnification provided for in Section 2.07(a) or Section 2.07(b) is unavailable to an Indemnitee or insufficient to hold it harmless as contemplated by Section 2.07(a) or Section 2.07(b), then the Indemnifying Party shall contribute to the amount paid or payable by the Indemnitee as a result of such Loss in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and the Indemnitee on the other hand.  The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Indemnifying Party or the Indemnitee and the Parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  For the avoidance of doubt, the establishment of such relative fault, and any disagreements or disputes relating thereto, shall be subject to Section 4.04.  Notwithstanding anything in this Section 2.07(d) to the contrary, no

 

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Indemnifying Party (other than SpinCo) shall be required pursuant to this Section 2.07(d) to contribute any amount in excess of the amount by which the net proceeds received by such Indemnifying Party from the Sale of Registrable Securities in the offering to which the Losses of the Indemnitees relate (before deducting expenses, if any) exceeds the amount of any damages which such Indemnifying Party has otherwise been required to pay by reason of such untrue statement or omission.  The Parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2.07(d) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 2.07(d).  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  The amount paid or payable by an Indemnitee hereunder shall be deemed to include, for purposes of this Section 2.07(d), any legal or other expenses reasonably incurred by such Indemnitee in connection with investigating, preparing to defend or defending against or appearing as a third party witness in respect of, or otherwise incurred in connection with, any such loss, claim, damage, expense, liability, action, investigation or proceeding.  If indemnification is available under this Section 2.07, the Indemnifying Parties shall indemnify each Indemnitee to the full extent provided in Section 2.07(a) and Section 2.07(b) without regard to the relative fault of said Indemnifying Parties or Indemnitee.  Any Holders’ obligations to contribute pursuant to this Section 2.07(d) are several and not joint.

 

Section 2.08                             Reporting Requirements; Rule 144.

 

Until the earlier of (a) the expiration or termination of this Agreement in accordance with its terms and (b) the date upon which there cease to be any Holders of Registrable Securities, SpinCo shall use its commercially reasonable efforts to be and remain in compliance with the periodic filing requirements imposed under the SEC’s rules and regulations, including the Exchange Act, and any other applicable Laws or rules, and thereafter shall timely file such information, documents and reports as the SEC may require or prescribe under Sections 13, 14 and 15(d), as applicable, of the Exchange Act so that SpinCo will qualify for registration on Form S-3 and to enable the Holders to Sell Registrable Securities without registration under the Securities Act consistent with the exemptions from registration under the Securities Act provided by (i) Rule 144 or Regulation S under the Securities Act, as amended from time to time, or (ii) any similar SEC rule or regulation then in effect.  From and after the date hereof through such earlier date, SpinCo shall forthwith upon request furnish any Holder (x) a written statement by SpinCo as to whether it has complied with such requirements and, if not, the specifics thereof, (y) a copy of the most recent annual or quarterly report of SpinCo and (z) such other reports and documents filed by SpinCo with the SEC as such Holder may reasonably request in availing itself of an exemption for the offering and Sale of Registrable Securities without registration under the Securities Act.

 

Section 2.09                             Registration Rights Covenant.

 

SpinCo covenants that it will not, and it will cause the members of the SpinCo Group not to, grant any right of registration under the Securities Act relating to the SpinCo Shares or any of its other securities to any Person other than pursuant to this Agreement, unless the rights so granted to another Person do not limit or restrict the rights of the Holder(s)

 

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hereunder.  If SpinCo enters into any agreement after the date hereof granting any Person registration rights with respect to any security of SpinCo which agreement contains any material provisions more favorable to such Person than those set forth in this Agreement, SpinCo will notify Parent and will agree to such amendments to this Agreement as may be necessary to provide these rights to Parent, at Parent’s election.

 

ARTICLE III    VOTING RESTRICTIONS

 

Section 3.01                             Voting of SpinCo Shares.

 

(a)                                 From the date of this Agreement and until the date that the Parent Group ceases to own any Retained Shares, Parent shall, and shall cause each member of the Parent Group to (in each case, to the extent that they own any Retained Shares), be present, in person or by proxy, at each and every SpinCo stockholder meeting, and otherwise to cause all Retained Shares owned by them to be counted as present for purposes of establishing a quorum at any such meeting, and to vote or consent on any matter (including waivers of contractual or statutory rights), or cause to be voted or consented on any such matter, all such Retained Shares in proportion to the votes cast by the other holders of SpinCo Shares on such matter.

 

(b)                                 From the date of this Agreement and until the date that the Parent Group ceases to own any Retained Shares, Parent hereby grants, and shall cause each member of the Parent Group (in each case, to the extent that they own any Retained Shares) to grant, an irrevocable proxy, which shall be deemed coupled with an interest sufficient in Law to support an irrevocable proxy to SpinCo or its designees, to vote, with respect to any matter (including waivers of contractual or statutory rights), all Retained Shares owned by them, in proportion to the votes cast by the other holders of SpinCo Shares on such matter; provided, that (i) such proxy shall automatically be revoked as to a particular Retained Share upon any Sale of such Retained Share from a member of the Parent Group to a Person other than a member of the Parent Group and (ii) nothing in this Section 3.01(b) shall limit or prohibit any such Sale.

 

(c)                                  Parent acknowledges and agrees (on behalf of itself and each member of the Parent Group) that SpinCo will be irreparably damaged in the event any of the provisions of this Article III are not performed by Parent in accordance with their terms or are otherwise breached.  Accordingly, it is agreed that SpinCo shall be entitled to an injunction to prevent breaches of this Article III and to specific enforcement of the provisions of this Article III in any action instituted in any court of the United States or any state having subject matter jurisdiction over such action.

 

ARTICLE IV    MISCELLANEOUS

 

Section 4.01                             Further Assurances.

 

In addition to the actions specifically provided for elsewhere in this Agreement, each of the Parties shall use its commercially reasonable efforts, prior to, on and after the date hereof, to take, or cause to be taken, all actions, and to do, or cause to be done, all things,

 

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reasonably necessary, proper or advisable under applicable Laws, regulations and agreements to consummate and make effective the transactions contemplated by this Agreement.

 

Section 4.02                             Term and Termination.

 

This Agreement shall terminate upon the earlier of (a) five years after the Distribution Date, (b) the time at which all Registrable Securities are held by Persons other than Holders and (c) the time at which all Registrable Securities have been Sold in accordance with one or more Registration Statements; provided, that the provisions of Section 2.06 and Section 2.07 and this Article IV shall survive any such termination.

 

Section 4.03                             Counterparts; Entire Agreement; Corporate Power.

 

(a)                                 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.

 

(b)                                 This Agreement and the Exhibit hereto contain the entire agreement between the Parties with respect to the subject matter hereof, and supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties other than those set forth or referred to herein.

 

(c)                                  Parent represents on behalf of itself and each other member of the Parent Group, and SpinCo represents on behalf of itself and each other member of the SpinCo Group, as follows:

 

(i) each such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby, and

 

(ii) this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance with the terms hereof.

 

(d)                                 Each Party acknowledges that it and each other Party may execute this Agreement by facsimile, stamp or mechanical signature, and that delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp or mechanical signature) by facsimile or by email in portable document format (PDF) shall be effective as delivery of such executed counterpart of this Agreement.  Each Party expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by email in portable document format (PDF)) made in its respective name as if it were a manual signature delivered in person, agrees that it shall not assert that any such signature or delivery is not adequate to bind such Party to the same extent as if it were signed manually and delivered in person.

 

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Section 4.04                             Disputes and Governing Law.

 

(a)                                 Any dispute, controversy or claim arising out of or relating to this Agreement (including the validity, interpretation, breach or termination of this Agreement) (a “Dispute”), shall be resolved in accordance with the procedures set forth in Article VII of the Separation and Distribution Agreement, which shall be the sole and exclusive procedures for the resolution of any such Dispute unless otherwise specified in this Agreement or in Article VII of the Separation and Distribution Agreement.

 

(b)                                 This Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of the choice of laws principles of the State of Delaware, including all matters of validity, construction, effect, enforceability, performance and remedies.

 

(c)                                  THE PARTIES EXPRESSLY WAIVE AND FOREGO ANY RIGHT TO TRIAL BY JURY.

 

Section 4.05                             Successors, Assigns and Transferees.

 

(a)                                 Except as set forth herein, this Agreement shall be binding upon and inure to the benefit of the Parties hereto, and their respective successors and permitted assigns; provided, however, that neither Party may assign its rights or delegate its obligations under this Agreement without the express prior written consent of the other Party hereto.  Notwithstanding the foregoing, no such consent shall be required for the assignment of a party’s rights and obligations under this Agreement (except as otherwise provided herein) in whole (i.e., the assignment of a party’s rights and obligations under this Agreement, the Separation and Distribution Agreement and all other Ancillary Agreements all at the same time) in connection with a Change of Control of a Party so long as the resulting, surviving or transferee Person assumes all the obligations of the relevant party thereto by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party.  Nothing herein is intended to, or shall be construed to, prohibit either Party or any member of its Group from being party to or undertaking a Change of Control.

 

(b)                                 Notwithstanding any other terms of this Section 4.05, in connection with the Sale of Registrable Securities, Parent may assign its Registration-related rights and obligations under this Agreement relating to such Registrable Securities to the following transferees in such Sale:  (i) a member of the Parent Group to which Registrable Securities are Sold; (ii) one or more Participating Banks to which Registrable Securities are Sold; (iii) any transferee to which Registrable Securities are Sold, if SpinCo provides prior written consent to the transfer of such Registration-related rights and obligations along with the Sale of Registrable Securities; or (iv) any other transferee to which Registrable Securities are Sold, unless such Sale consists of Registrable Securities representing less than 1% of SpinCo’s then-issued and outstanding securities of the same class as the Registrable Securities and such Registrable Securities are eligible for Sale pursuant to an exemption from the registration and prospectus

 

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delivery requirements of the Securities Act under Section 4(a) thereof (including transactions pursuant to Rule 144); provided, that in the case of clauses (i), (ii), (iii) or (iv), (x) SpinCo is given written notice prior to or at the time of such Sale stating the name and address of the transferee and identifying the securities with respect to which the Registration-related rights and obligations are being Sold and (y) the transferee executes a counterpart in the form attached hereto as Exhibit A and delivers the same to SpinCo (any such transferee in such Sale, a “Transferee”).  In connection with the Sale of Registrable Securities, a Transferee or Subsequent Transferee (as defined below) may assign its Registration-related rights and obligations under this Agreement relating to such Registrable Securities to the following subsequent transferees:  (A) an Affiliate of such Transferee to which Registrable Securities are Sold, (B) any subsequent transferee to which Registrable Securities are Sold, if SpinCo provides prior written consent to the transfer of such Registration-related rights and obligations along with the Sale of Registrable Securities or (C) any other subsequent transferee to which Registrable Securities are Sold, unless such Sale consists of Registrable Securities representing less than 1% of SpinCo’s then-issued and outstanding securities of the same class as the Registrable Securities and such Registrable Securities are eligible for Sale pursuant to an exemption from the registration and prospectus delivery requirements of the Securities Act under Section 4(a) thereof (including transactions pursuant to Rule 144); provided, that in the case of clauses (A), (B) or (C), (x) SpinCo is given written notice prior to or at the time of such Sale stating the name and address of the subsequent transferee and identifying the securities with respect to which the Registration-related rights and obligations are being assigned and (y) the subsequent transferee executes a counterpart in the form attached hereto as Exhibit A and delivers the same to SpinCo (any such subsequent transferee, a “Subsequent Transferee”).

 

Section 4.06                             Third-Party Beneficiaries.

 

Except for any Person expressly entitled to indemnification rights under this Agreement, (a) the provisions of this Agreement are solely for the benefit of the Parties hereto and parties thereto, respectively, and are not intended to confer upon any other Person any rights or remedies hereunder, and (b) there are no third-party beneficiaries of this Agreement and this Agreement shall not provide any third Person with any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.

 

Section 4.07                             Notices.

 

All notices, requests, claims, demands or other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by facsimile or electronic transmission with receipt confirmed (followed by delivery of an original via overnight courier service), or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 4.07):

 

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If to Parent, to:

 

ServiceMaster Global Holdings, Inc.

150 Peabody Place
 Memphis, Tennessee 38103
 Attention:                    General Counsel

E-mail:                                   James.Lucke@ServiceMaster.com

 

with a copy to:

 

Wachtell, Lipton, Rosen & Katz
 51 West 52nd Street
 New York, New York 10019
 Attention:                    Andrew Brownstein

S. Iliana Ongun

E-mail:                                   ARBrownstein@wlrk.com

SIOngun@wlrk.com

 

If to SpinCo, to:

 

[AHS Holding Company, Inc.]
 [•]
 [•]
 Attention:                    [•]

E-mail:                                   [•]

 

with a copy to:

 

Wachtell, Lipton, Rosen & Katz
 51 West 52nd Street
 New York, New York 10019
 Attention:                    Andrew Brownstein

S. Iliana Ongun

E-mail:                                   ARBrownstein@wlrk.com

SIOngun@wlrk.com

 

A Party may, by written notice to the other Party, change the address to which any such notices are to be given.

 

Section 4.08                             Severability.

 

If any provision of this Agreement or the application hereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.  Upon such determination, the Parties shall negotiate in good faith in an

 

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effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties.

 

Section 4.09                             Headings.

 

The article, section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

Section 4.10                             Waiver of Default.

 

Waiver by a Party of any default by the other Party of any provision of this Agreement must be in writing and shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the other Party.  No failure or delay by a Party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege.

 

Section 4.11                             Amendments.

 

No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification, or the Holders of a majority of the Registrable Securities, if such waiver, amendment, supplement or modification is sought to be enforced against a Holder.

 

Section 4.12                             Interpretation.

 

In this Agreement, (a) words in the singular shall be deemed to include the plural and vice versa and words of one gender shall be deemed to include the other genders as the context requires, (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole (including all of the Schedules, Exhibits and Appendices hereto) and not to any particular provision of this Agreement, (c) Article, Section, Schedule, Exhibit and Appendix references are to the Articles, Sections, Schedules, Exhibits and Appendices to this Agreement unless otherwise specified, (d) unless otherwise stated, all references to any agreement (including this Agreement, the Separation and Distribution Agreement and each other Ancillary Agreement) shall be deemed to include the exhibits, schedules and annexes to such agreement, (e) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified, (f) the word “or” shall not be exclusive, (g) unless otherwise specified in a particular case, the word “days” refers to calendar days, (h) references to “business day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions are generally authorized or required by law to close in Memphis, Tennessee or New York, New York, (i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise specified; the word “extent” in the phrase “to the extent” shall mean the degree to which a

 

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subject or other thing extends, and such phrase shall not mean simply “if” and (j) unless expressly stated to the contrary in this Agreement, all references to “the date hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar import shall all be references to [•].

 

Section 4.13                             Performance.

 

Parent shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement to be performed by any member of the Parent Group.  SpinCo shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement to be performed by any member of the SpinCo Group.  Each Party (including its permitted successors and assigns) further agrees that it shall (a) give timely notice of the terms, conditions and continuing obligations contained in this Agreement to all of the other members of its Group and (b) cause all of the other members of its Group not to take any action or fail to take any such action inconsistent with such Party’s obligations under this Agreement or the transactions contemplated hereby.

 

Section 4.14                             Registrations, Exchanges, etc.

 

Notwithstanding anything to the contrary that may be contained in this Agreement, the provisions of this Agreement shall apply to the full extent set forth herein with respect to (a) any SpinCo Shares, now or hereafter authorized to be issued, (b) any and all securities of SpinCo into which SpinCo Shares are converted, exchanged or substituted in any recapitalization or other capital reorganization by SpinCo and (c) any and all securities of any kind whatsoever of SpinCo or any successor or permitted assign of SpinCo (whether by merger, consolidation, sale of assets or otherwise) which may be issued on or after the date hereof in respect of, in conversion of, in exchange for or in substitution of, SpinCo Shares, and shall be appropriately adjusted for any stock dividends, or other distributions, stock splits or reverse stock splits, combinations, recapitalizations, mergers, consolidations, exchange offers or other reorganizations occurring after the date hereof.

 

Section 4.15                             Mutual Drafting.

 

This Agreement shall be deemed to be the joint work product of the Parties, and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable.

 

[The remainder of this page has been left blank intentionally.]

 

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

 

	
 
    	
 
    	
SERVICEMASTER GLOBAL HOLDINGS, INC.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    

 

[Signature Page to Stockholder and Registration Rights Agreement]

 

 

	
 
    	
 
    	
AHS HOLDING COMPANY, INC.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    

 

[Signature Page to Stockholder and Registration Rights Agreement]

 

 

Exhibit A

 

Form of

 

Agreement to be Bound

 

THIS INSTRUMENT forms part of the Stockholder and Registration Rights Agreement (the “Agreement”), dated as of [•], by and between ServiceMaster Global Holdings, Inc., a Delaware corporation (“Parent”), and AHS Holding Company, Inc., a Delaware corporation.  The undersigned hereby acknowledges having received a copy of the Agreement and having read the Agreement in its entirety, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, hereby agrees that the terms and conditions of the Agreement binding upon and inuring to the benefit of Parent shall be binding upon and inure to the benefit of the undersigned and its successors and permitted assigns as if it were an original party to the Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed this instrument on this                 day of                                        , 20   .

 

	
 
    	
 
    
	
(Signature of   transferee)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Print name
    	
 
    

 

A-1

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