Document:

Unassociated Document

    

     

    June __,
2010

    

    CONFIDENTIAL

    

    Harry
Palmin

    Chief
Executive Officer & President

    Novelos
Therapeutics, Inc.

    One
Gateway Center, Suite 504

    Newton,
MA 02458

    

    Dear Mr.
Palmin:

    

    This
letter (the “Agreement”)
constitutes the agreement between Rodman & Renshaw, LLC (“Rodman” or the “Placement Agent”),
and Novelos Therapeutics, Inc. (the “Company”), that
Rodman shall serve as the exclusive placement agent for the Company, on a
“reasonable best efforts” basis, in connection with the proposed placement (the
“Placement”) of
registered securities (the “Securities”) of the
Company, including shares of the Company’s common stock, par value $0.00001 per
share (the “Shares” or “Common Stock”) and
warrants to purchase shares of Common Stock (the “Warrants”). The terms of such
Placement and the Securities shall be mutually agreed upon by the Company and
the purchasers (each, a “Purchaser” and
collectively, the “Purchasers”) and
nothing herein constitutes that Rodman would have the power or authority to bind
the Company or any Purchaser or an obligation for the Company to issue any
Securities or complete the Placement. This Agreement and the documents executed
and delivered by the Company and the Purchasers in connection with the Placement
shall be collectively referred to herein as the “Transaction Documents.”  The
date of the closing of the Placement shall be referred to herein as the “Closing
Date.”  The Company expressly acknowledges and agrees that the
execution of this Agreement does not constitute a commitment by Rodman to
purchase the Securities and does not ensure the successful placement of the
Securities or any portion thereof or the success of Rodman with respect to
securing any other financing on behalf of the Company.

    

    SECTION
1.                                COMPENSATION AND OTHER
FEES.

    

    
      
        	
                (A)

              	
                As
      compensation for the services provided by Rodman hereunder, the Company
      agrees to pay to Rodman a cash fee payable immediately upon the closing of
      the Placement equal to 8% of the aggregate gross proceeds received in the
      Placement.

              
	 	 

      

    

    
      	
              (B)

            	
              The
      Company also agrees to reimburse Rodman’s expenses (with supporting
      invoices/receipts) in an amount equal to 1% of gross proceeds raised in
      the transaction up to a maximum of $35,000 (provided, however, that such
      expense cap in no way limits or impairs the indemnification and
      contribution provisions of this Agreement). Such reimbursement shall be
      payable immediately upon (but only in the event of) the closing of the
      Placement.

            

    

    

    SECTION
2.                                REGISTRATION
STATEMENT.

    

    The
Company represents and warrants to, and agrees with, the Placement Agent
that:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (A)           The
Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-1 (Registration File No. 333-166744) under the
Securities Act of 1933, as amended (the “Securities
Act”).  At the time of such filing, the Company met the
requirements of Form S-1 under the Securities Act.  The Company will
file with the Commission pursuant to Rules 430A and 424(b) under the Securities
Act, and the rules and regulations (the “Rules and
Regulations”) of the Commission promulgated thereunder, a final
prospectus included in such registration statement relating to the placement of
the Shares and the plan of distribution thereof and has advised the Placement
Agent of all further information (financial and other) with respect to the
Company required to be set forth therein. Such registration statement, including
the exhibits thereto, as amended at the date of this Agreement, is hereinafter
called the “Registration
Statement”; such prospectus in the form in which it appears in the
Registration Statement is hereinafter called the “Base Prospectus”; and
the amended or supplemented form of prospectus, in the form in which it will be
filed with the Commission pursuant to Rules 430A and 424(b) (including the Base
Prospectus as so amended or supplemented) is hereinafter called the “Prospectus
Supplement.” Any reference in this Agreement to the Registration
Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to
refer to and include the documents incorporated by reference therein (the “Incorporated
Documents”) pursuant to Item 12 of Form S-1 which were filed under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), on or before
the date of this Agreement, or the issue date of the Base Prospectus or the
Prospectus Supplement, as the case may be; and any reference in this Agreement
to the terms “amend,” “amendment” or “supplement” with respect to the
Registration Statement, the Base Prospectus or the Prospectus Supplement shall
be deemed to refer to and include the filing of any document under the Exchange
Act after the date of this Agreement, or the issue date of the Base Prospectus
or the Prospectus Supplement, as the case may be, deemed to be incorporated
therein by reference. All references in this Agreement to financial statements
and schedules and other information that is “contained,” “included,”
“described,” “referenced,” “set forth” or “stated” in the Registration
Statement, the Base Prospectus or the Prospectus Supplement (and all other
references of like import) shall be deemed to mean and include all such
financial statements and schedules and other information that is or is deemed to
be incorporated by reference in the Registration Statement, the Base Prospectus
or the Prospectus Supplement, as the case may be.  Following FINRA
approval of the compensation arrangements set forth in Section 1, the Company
has no reason to believe that the Registration Statement will not be declared
effective by the Commission.

     

    (B)           The
Registration Statement (and any further documents to be filed with the
Commission) contains all exhibits and schedules as required by the Securities
Act. Each of the Registration Statement and any post-effective amendment
thereto, at the time it became effective, complied in all material respects with
the Securities Act and the Exchange Act and the applicable Rules and Regulations
and did not and, as amended or supplemented, if applicable, will not, contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading. The Base Prospectus, and the Prospectus Supplement, each as of its
respective date, comply in all material respects with the Securities Act and the
Exchange Act and the applicable Rules and Regulations. Each of the Base
Prospectus and the Prospectus Supplement, as amended or supplemented, did not
and will not contain as of the date thereof any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading. The Incorporated Documents, if any, when they were filed with the
Commission, conformed in all material respects to the requirements of the
Exchange Act and the applicable Rules and Regulations, and none of such
documents, when they were filed with the Commission, contained any untrue
statement of a material fact or omitted to state a material fact necessary to
make the statements therein (with respect to Incorporated Documents incorporated
by reference in the Base Prospectus or Prospectus Supplement), in light of the
circumstances under which they were made not misleading; and any further
documents so filed and incorporated by reference in the Base Prospectus or
Prospectus Supplement, when such documents are filed with the Commission, will
conform in all material respects to the requirements of the Exchange Act and the
applicable Rules and Regulations, as applicable, and will not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading. No post-effective amendment to the Registration Statement
reflecting any facts or events arising after the date thereof which represent,
individually or in the aggregate, a fundamental change in the information set
forth therein is required to be filed with the Commission.  There are
no documents required to be filed with the Commission in connection with the
transaction contemplated hereby that (x) have not been filed as required
pursuant to the Securities Act or (y) will not be filed within the requisite
time period. There are no contracts or other documents required to be described
in the Base Prospectus, or Prospectus Supplement, or to be filed as exhibits or
schedules to the Registration Statement, that have not been described or filed
as required.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (C)           [Intentionally
omitted.]

     

    (D)           The
Company has delivered, or will as promptly as practicable deliver, to the
Placement Agent complete conformed copies of the Registration Statement and of
each consent and certificate of experts, as applicable, filed as a part thereof,
and conformed copies of the Registration Statement (without exhibits), the Base
Prospectus, and the Prospectus Supplement, as amended or supplemented, in such
quantities and at such places as the Placement Agent reasonably
requests.  Neither the Company nor any of its directors and officers
has distributed and none of them will distribute, prior to the Closing Date, any
offering material in connection with the offering and sale of the Shares other
than the Base Prospectus, the Prospectus Supplement, the Registration Statement,
copies of the documents incorporated by reference therein and any other
materials permitted by the Securities Act.

     

    SECTION 3.    REPRESENTATIONS AND
WARRANTIES. Except as set forth under the corresponding section of the
Disclosure Schedules, which shall be deemed a part hereof or except as
specifically disclosed in the SEC Reports (as defined below) or the Registration
Statement, the Company hereby makes the representations and warranties set forth
below to the Placement Agent.

     

    (A)           Organization and
Qualification.  All of the direct and indirect subsidiaries
(individually, a “Subsidiary”) of the
Company are set forth on Schedule 3(A).  The Company owns, directly or
indirectly, all of the capital stock or other equity interests of each
Subsidiary free and clear of any “Liens” (which for
purposes of this Agreement shall mean a lien, charge, security interest,
encumbrance, right of first refusal, preemptive right or other restriction), and
all the issued and outstanding shares of capital stock of each Subsidiary are
validly issued and are fully paid, non-assessable and free of preemptive and
similar rights to subscribe for or purchase securities.  The Company
and each of the Subsidiaries is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization (as applicable), with the
requisite power and authority to own and use its properties and assets and to
carry on its business as currently conducted.  Neither the Company nor
any Subsidiary is in violation or default of any of the provisions of its
respective certificate or articles of incorporation, bylaws or other
organizational or charter documents.  Each of the Company and the
Subsidiaries is duly qualified to conduct business and is in good standing as a
foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in (i) a
material adverse effect on the legality, validity or enforceability of any
Transaction Document, (ii) a material adverse effect on the results of
operations, assets, business, prospects or condition (financial or otherwise) of
the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely
basis its obligations under any Transaction Document (any of (i), (ii) or (iii),
a “Material Adverse
Effect”) and no “Proceeding” (which
for purposes of this Agreement shall mean any action, claim, suit, investigation
or proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened) has been
instituted in any such jurisdiction revoking, limiting or curtailing or seeking
to revoke, limit or curtail such power and authority or
qualification.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (B)           Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder.  The execution and delivery of each of the
Transaction Documents by the Company and the consummation by it of the
transactions contemplated thereby have been duly authorized by all necessary
action on the part of the Company and no further action is required by the
Company, its board of directors or its stockholders in connection therewith
other than in connection with the “Required Approvals”
(as defined in subsection 3(D) below).  Each Transaction Document has
been (or upon delivery will have been) duly executed by the Company and, when
delivered in accordance with the terms hereof and thereof, will constitute the
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally and (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable remedies.

    

    (C)           No
Conflicts.  The execution, delivery and performance of the
Transaction Documents by the Company, the issuance and sale of the Securities
and the consummation by the Company of the other transactions contemplated
hereby and thereby do not and will not (i) conflict with or violate any
provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii)
conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, result in the creation of any Lien
upon any of the properties or assets of the Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or
otherwise) or other understanding to which the Company or any Subsidiary is a
party or by which any property or asset of the Company or any Subsidiary is
bound or affected, or (iii) subject to the Required Approvals, conflict with or
result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including federal and state securities laws
and regulations), or by which any property or asset of the Company or a
Subsidiary is bound or affected; except in the case of each of clauses (ii) and
(iii), such as could not have or reasonably be expected to result in a Material
Adverse Effect.

    

    (D)           Filings, Consents and
Approvals.  The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other “Person” (defined as
an individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind,
including, without limitation, any Trading Market) in connection with the
execution, delivery and performance by the Company of the Transaction Documents,
other than such filings as are required to be made under applicable Federal and
state securities laws (collectively, the “Required
Approvals”).

    

    (E)           Issuance of the Securities;
Registration.  The Shares are duly authorized and, when issued
and paid for in accordance with the applicable Transaction Documents, will be
duly and validly issued, fully paid and nonassessable, free and clear of all
Liens imposed by the Company other than restrictions on transfer provided for in
the Transaction Documents.  The Warrants are duly authorized and, when
issued and paid for in accordance with the applicable Transaction Documents,
will be issued free and clear of all Liens imposed by the Company other than
restrictions on transfer provided for in the Transaction
Documents.  The Company has reserved from its duly authorized capital
stock the maximum number of shares of Common Stock currently issuable pursuant
to the Transaction Documents.  The issuance by the Company of the
Securities has been registered under the Securities Act and all of the
Securities are freely transferable and tradable by the Purchasers without
restriction (other than any restrictions arising solely from an act or omission
of a Purchaser).  The Securities are being issued pursuant to the
Registration Statement and the issuance of the Securities has been registered by
the Company under the Securities Act.  Prior to the Closing, the
Registration Statement will be effective and available for the issuance of the
Securities thereunder and the Company has not received any notice that the
Commission does not intend to declare the registration statement effective. The
"Plan of Distribution" section included in the Registration Statement permits
the issuance and sale of the Securities hereunder.  Following the
issuance of Shares in accordance with the applicable Transaction Documents, and
the issuance of the Warrant Shares upon valid exercise of the Warrants (provided
such Warrants are exercised on a cashless basis in accordance with their terms
or pursuant to an effective registration statement under the Securities Act
covering the issuance of such Warrant Shares), the Shares and Warrant Shares
will be tradable without further registration under the Securities Act on the
Over the Counter Bulletin Board (the “Trading Market”), or in the case of the
Warrant Shares, such other trading market on which the Common Stock is quoted or
traded at the time of issuance of such Warrant Shares (subject to any required
approvals of such trading market with respect to the listing or quotation of
such Warrant Shares).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (F)           Capitalization.  The
capitalization of the Company is as set forth in the Registration
Statement.  The Company has not issued any capital stock since its
most recently filed periodic
report under the Exchange Act, other than pursuant to the exercise of
employee stock options under the Company’s stock option plans, the issuance of
shares of Common Stock to employees pursuant to the Company’s employee stock
purchase plan and pursuant to the conversion or exercise of securities
exercisable, exchangeable or convertible into Common Stock (“Common Stock
Equivalents”).  No Person has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in
the transactions contemplated by the Transaction Documents that has not been
waived.  Except as a result of the purchase and sale of the
Securities, there are no outstanding options, warrants, script rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exercisable or
exchangeable for, or giving any Person any right to subscribe for or acquire,
any shares of Common Stock, or contracts, commitments, understandings or
arrangements by which the Company or any Subsidiary is or may become bound to
issue additional shares of Common Stock or Common Stock
Equivalents.  The issuance and sale of the Securities will not
obligate the Company to issue shares of Common Stock or other securities to any
Person (other than the Purchasers) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset
price under such securities. All of the outstanding shares of capital stock of
the Company are validly issued, fully paid and nonassessable, have been issued
in compliance with all federal and state securities laws, and none of such
outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities.  No further approval
or authorization of any stockholder, the Board of Directors of the Company or
others is required for the issuance and sale of the Securities.  There
are no stockholders agreements, voting agreements or other similar agreements
with respect to the Company’s capital stock to which the Company is a party or,
to the knowledge of the Company, between or among any of the Company’s
stockholders.

    

    (G)           SEC Reports; Financial
Statements.  The Company has complied in all material respects
with requirements to file all reports, schedules, forms, statements and other
documents required to be filed by it under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years
preceding the date hereof (or such shorter period as the Company was required by
law to file such material) (the foregoing materials, including the exhibits
thereto and documents incorporated by reference therein, being collectively
referred to herein as the “SEC Reports”) on a
timely basis or has received a valid extension of such time of filing and has
filed any such SEC Reports prior to the expiration of any such
extension.  As of their respective dates, the SEC Reports complied in
all material respects with the requirements of the Securities Act and the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder, and none of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not
misleading.  The financial statements of the Company included in the
SEC Reports comply in all material respects with applicable accounting
requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing.  Such financial statements
have been prepared in accordance with United States generally accepted
accounting principles applied on a consistent basis during the periods involved
(“GAAP”),
except as may be otherwise specified in such financial statements or the notes
thereto and except that unaudited financial statements may not contain all
footnotes required by GAAP, and fairly present in all material respects the
financial position of the Company and its consolidated subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (H)           Material Changes;
Undisclosed Events, Liabilities or Developments.  Since the
date of the latest audited financial statements included within the SEC Reports,
except as specifically disclosed in the SEC Reports, (i) there has been no
event, occurrence or development that has had or that could reasonably be
expected to result in a Material Adverse Effect, (ii) the Company has not
incurred any liabilities (contingent or otherwise) other than (A) trade payables
and accrued expenses incurred in the ordinary course of business consistent with
past practice and (B) liabilities not required to be reflected in the Company’s
financial statements pursuant to GAAP or required to be disclosed in filings
made with the Commission, (iii) the Company has not altered its method of
accounting, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock and (v) the Company has not issued any equity securities to any officer,
director or “Affiliate” (defined
as any Person that, directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with a Person, as such
terms are used in and construed under Rule 144 under the Securities Act), except
pursuant to existing Company stock option plans.  The Company does not
have pending before the Commission any request for confidential treatment of
information.  Except for the issuance of the Securities contemplated
by this Agreement or as set forth on Schedule 3(H), no event, liability or
development has occurred or exists with respect to the Company or its
Subsidiaries or their respective business, properties, operations or financial
condition, that would be required to be disclosed by the Company under
applicable securities laws at the time this representation is made that has not
been publicly disclosed 1 Trading Day prior to the date that this representation
is made.

    

    (I)           Litigation.  There
is no action, suit, inquiry, notice of violation, Proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the
Company, any Subsidiary or any of their respective properties before or by any
court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which (i)
adversely affects or challenges the legality, validity or enforceability of any
of the Transaction Documents or the Securities or (ii) could, if there were an
unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect.  Neither the Company nor any Subsidiary, nor any
director or officer thereof, is or has been the subject of any Action involving
a claim of violation of or liability under federal or state securities laws or a
claim of breach of fiduciary duty.  There has not been, and to the
knowledge of the Company, there is not pending or contemplated, any
investigation by the Commission involving the Company or any current or former
director or officer of the Company.  The Commission has not issued any
stop order or other order suspending the effectiveness of any registration
statement filed by the Company or any Subsidiary under the Exchange Act or the
Securities Act.  None of the Company’s or its Subsidiaries’ employees
is a member of a union that relates to such employee’s relationship with the
Company, and neither the Company or any of its Subsidiaries is a party to a
collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good.  No executive
officer, to the knowledge of the Company, is, or is now expected to be, in
violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or
any other contract or agreement or any restrictive covenant, and the continued
employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing
matters.  The Company and its Subsidiaries are in compliance with all
U.S. federal, state, local and foreign laws and regulations relating to
employment and employment practices, terms and conditions of employment and
wages and hours, except where the failure to be in compliance could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (J)           Labor
Relations.  No material labor dispute exists or, to the
knowledge of the Company, is imminent with respect to any of the employees of
the Company which could reasonably be expected to result in a Material Adverse
Effect.

    

    (K)           Compliance.  Neither
the Company nor any Subsidiary (i) is in default under or in violation of (and
no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by the Company or any Subsidiary under),
nor has the Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is in violation of any order of any court,
arbitrator or governmental body, or (iii) is or has been in violation of any
statute, rule or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws applicable to its business
and all such laws that affect the environment, except in each case as could not
have a Material Adverse Effect.

    

    (L)           Regulatory
Permits.  The Company and the Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their
respective businesses as described in the SEC Reports, except where the failure
to possess such permits could not have or reasonably be expected to result in a
Material Adverse Effect (“Material Permits”),
and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material
Permit.

    

    (M)           Title to
Assets.  The Company and the Subsidiaries have good and
marketable title in fee simple to all real property owned by them that is
material to the business of the Company and the Subsidiaries and good and
marketable title in all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of all
Liens, except for Liens as do not materially affect the value of such property
and do not materially interfere with the use made and proposed to be made of
such property by the Company and the Subsidiaries and Liens for the payment of
federal, state or other taxes, the payment of which is neither delinquent nor
subject to penalties.  Any real property and facilities held under
lease by the Company and the Subsidiaries are held by them under valid,
subsisting and enforceable leases of which the Company and the Subsidiaries are
in compliance.

    

    (N)           Patents and
Trademarks.  The Company and the Subsidiaries have, or have
rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights,
licenses and other similar intellectual property rights necessary or material
for use in connection with their respective businesses as described in the SEC
Reports and which the failure to so have could have a Material Adverse Effect
(collectively, the “Intellectual Property
Rights”).  Neither the Company nor any Subsidiary has received
a notice (written or otherwise) that the Intellectual Property Rights used by
the Company or any Subsidiary violates or infringes upon the rights of any third
party.  To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another
Person of any of the Intellectual Property Rights of others.  The
Company and its Subsidiaries have taken reasonable security measures to protect
the secrecy, confidentiality and value of all of their intellectual properties,
except where failure to do so could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (O)           Insurance.  The
Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses in which the Company and the Subsidiaries are
engaged, including, but not limited to, directors and officers insurance
coverage at least equal to the aggregate subscription amount under the
Transaction Documents.  To the best knowledge of the Company, such
insurance contracts and policies are accurate and complete.  Neither
the Company nor any Subsidiary has any reason to believe that it will not be
able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to
continue its business without a significant increase in cost.

    

    (P)           Transactions With Affiliates
and Employees.  Except as set forth in the SEC Reports, none of
the officers or directors of the Company and, to the knowledge of the Company,
none of the employees of the Company is presently a party to any transaction
with the Company or any Subsidiary (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any
officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner, other than (i) for
payment of salary or consulting fees for services rendered, (ii) reimbursement
for expenses incurred on behalf of the Company and (iii) for other employee
benefits, including stock option agreements under any stock option plan of the
Company.

    

    (Q)           Sarbanes-Oxley.  The
Company is in material compliance with all provisions of the Sarbanes-Oxley Act
of 2002 which are applicable to it as of the date hereof and of the closing date
of the Placement.

    

    (R)           Certain
Fees.  Except as otherwise provided in this Agreement, no
brokerage or finder’s fees or commissions are or will be payable by the Company
to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents.  The Purchasers shall have
no obligation with respect to any fees or with respect to any claims made by or
on behalf of other Persons for fees of a type contemplated in this Section that
may be due in connection with the transactions contemplated by the Transaction
Documents.

    

    (S)           Trading Market
Rules.  The issuance and sale of the Securities hereunder does
not contravene the rules and regulations of the Trading Market.

    

    (T)           Investment Company.
The Company is not, and is not an Affiliate of, and immediately after receipt of
payment for the Securities, will not be or be an Affiliate of, an “investment
company” within the meaning of the Investment Company Act of 1940, as
amended.  The Company shall conduct its business in a manner so that
it will not become subject to the Investment Company Act.

    

    (U)           Registration
Rights.  No Person has any right to cause the Company to effect
the registration under the Securities Act of any securities of the
Company.

    

    (V)           Listing and Maintenance
Requirements.  The Company’s Common Stock is not registered
pursuant to Section 12(b) or 12(g) of the Exchange Act.  The Company
has not, in the 12 months preceding the date hereof, received notice from any
Trading Market on which the Common Stock is or has been  quoted to the
effect that the Company is not in compliance with the maintenance requirements
of such Trading Market. The Company is, and has no reason to believe that it
will not in the foreseeable future continue to be, in compliance with all such
maintenance requirements.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (W)           Application of Takeover
Protections.  The Company and its Board of Directors have taken
all necessary action, if any, in order to render inapplicable any control share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s
Certificate of Incorporation (or similar charter documents) or the laws of its
state of incorporation that is or could become applicable to the Purchasers as a
result of the Purchasers and the Company fulfilling their obligations or
exercising their rights under the Transaction Documents, including without
limitation as a result of the Company’s issuance of the Securities and the
Purchasers’ ownership of the Securities.

    

    (X)           Solvency.  Based
on the financial condition of the Company as of the Closing Date after giving
effect to the receipt by the Company of the proceeds from the sale of the
Securities hereunder, (i) the Company’s fair saleable value of its assets
exceeds the amount that will be required to be paid on or in respect of the
Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature; (ii) the Company’s assets do not constitute
unreasonably small capital to carry on its business for the current fiscal year
as now conducted and as proposed to be conducted including its capital needs
taking into account the particular capital requirements of the business
conducted by the Company, and projected capital requirements and capital
availability thereof; and (iii) the current cash flow of the Company, together
with the proceeds the Company would receive, were it to liquidate all of its
assets, after taking into account all anticipated uses of the cash, would be
sufficient to pay all amounts on or in respect of its debt when such amounts are
required to be paid.  The Company does not intend to incur debts
beyond its ability to pay such debts as they mature (taking into account the
timing and amounts of cash to be payable on or in respect of its
debt).  The Company has no knowledge of any facts or circumstances
which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year
from the Closing Date.  The SEC Reports set forth as of the dates
thereof all outstanding secured and unsecured Indebtedness of the Company or any
Subsidiary, or for which the Company or any Subsidiary has
commitments.  For the purposes of this Agreement, “Indebtedness” shall
mean (a) any liabilities for borrowed money or amounts owed in excess of $50,000
(other than trade accounts payable incurred in the ordinary course of business),
(b) all guaranties, endorsements and other contingent obligations in respect of
Indebtedness of others, whether or not the same are or should be reflected in
the Company’s balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $50,000 due under leases required to be
capitalized in accordance with GAAP.  Neither the Company nor any
Subsidiary is in default with respect to any Indebtedness.

    

     (Y)           Tax
Status.  Except for matters that would not, individually or in
the aggregate, have or reasonably be expected to result in a Material Adverse
Effect, the Company and each Subsidiary has filed all necessary federal, state
and foreign income and franchise tax returns and has paid or accrued all taxes
shown as due thereon, and the Company has no knowledge of a tax deficiency which
has been asserted or threatened against the Company or any
Subsidiary.

    

    (Z)           Foreign Corrupt
Practices.  Neither the Company, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company, has (i)
directly or indirectly, used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (iii) failed to disclose fully any
contribution made by the Company (or made by any person acting on its behalf of
which the Company is aware) which is  in violation of law, or (iv)
violated in any material respect any provision of the Foreign Corrupt Practices
Act of 1977, as amended.

    

    (AA)    Accountants.  The
Company’s accountants are named in the Prospectus Supplement.  To the
knowledge of the Company, such accountants, who the Company expects will express
their opinion with respect to the financial statements to be included in the
Company’s next Annual Report on Form 10-K, are a registered public accounting
firm as required by the Securities Act.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (BB)           Regulation M
Compliance.  The Company has not, and to its knowledge no one acting
on its behalf has, (i) taken, directly or indirectly, any action designed to
cause or to result in the stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of any of the
Securities, (ii) sold, bid for, purchased, or, paid any compensation for
soliciting purchases of, any of the Securities (other than for the Placement
Agent’s placement of the Securities), or (iii) paid or agreed to pay to any
person any compensation for soliciting another to purchase any other securities
of the Company.

    

    (CC)           Approvals.  The
issuance and quotation of the Shares on the Trading Market  requires
no further approvals, including but not limited to, the approval of
shareholders.

    

    (DD)   FINRA
Affiliations.  There are no affiliations with any FINRA member
firm among the Company’s officers, directors or, to the knowledge of the
Company, any five percent (5%) or greater stockholder of the Company, except as
set forth in the Base Prospectus.

     

    SECTION 4.    ENGAGEMENT
TERM.  Rodman's engagement hereunder will be for the period of
30 days from the effective date of the Registration Statement. The engagement
may be terminated by either the Company or Rodman at any time upon 10 days'
written notice. Notwithstanding anything to the contrary contained herein, the
provisions in this Agreement concerning confidentiality, indemnification and
contribution will survive any expiration or termination of this
Agreement.  Upon any termination of this Agreement, the Company's
obligation to pay Rodman any fees actually earned on closing of the Offering and
otherwise payable under Section 1(A), shall survive any expiration or
termination of this Agreement, as permitted by FINRA Rule
5110(f)(2)(d).  Upon any termination of this Agreement, the Company's
obligation to reimburse Rodman for out of pocket accountable expenses actually
incurred by Rodman and reimbursable upon closing of the Offering pursuant to
Section 1(B), if any are otherwise due under Section 1(B) hereof, will survive
any expiration or termination of this Agreement, as permitted by FINRA Rule
5110(f)(2)(d).

    

    SECTION 5.    RODMAN
INFORMATION.  The Company agrees that any information or advice
rendered by Rodman in connection with this engagement is for the confidential
use of the Company only in their evaluation of the Placement and, except as
otherwise required by law, the Company will not disclose or otherwise refer to
the advice or information in any manner without Rodman’s prior written
consent.

    

    SECTION 6.    NO FIDUCIARY
RELATIONSHIP.  This Agreement does not create, and shall not be
construed as creating rights enforceable by any person or entity not a party
hereto, except those entitled hereto by virtue of the indemnification provisions
hereof.  The Company acknowledges and agrees that Rodman is not and
shall not be construed as a fiduciary of the Company and shall have no duties or
liabilities to the equity holders or the creditors of the Company or any other
person by virtue of this Agreement or the retention of Rodman hereunder, all of
which are hereby expressly waived.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION 7.    CLOSING.   The
obligations of the Placement Agent and the Purchasers, and the closing of the
sale of the Securities hereunder are subject to the accuracy, when made and on
the Closing Date, of the representations and warranties on the part of the
Company and its Subsidiaries contained herein, to the accuracy of the statements
of the Company and its Subsidiaries made in any certificates pursuant to the
provisions hereof, to the performance by the Company and its Subsidiaries of
their obligations hereunder, and to each of the following additional terms and
conditions:

     

    (A)           No
stop order suspending the effectiveness of the Registration Statement shall have
been issued and no proceedings for that purpose shall have been initiated or
threatened by the Commission, and any request for additional information on the
part of the Commission (to be included in the Registration Statement, the Base
Prospectus or the Prospectus Supplement or otherwise) shall have been complied
with to the reasonable satisfaction of the Placement Agent.

    

    (B)           The
Placement Agent shall not have discovered and disclosed to the Company on or
prior to the Closing Date that the Registration Statement, the Base Prospectus
or the Prospectus Supplement or any amendment or supplement thereto contains an
untrue statement of a fact which, in the opinion of counsel for the Placement
Agent, is material or omits to state any fact which, in the opinion of such
counsel, is material and is required to be stated therein or is necessary to
make the statements therein not misleading.

     

    (C)           All
corporate proceedings and other legal matters incident to the authorization,
form, execution, delivery and validity of each of this Agreement, the
Securities, the Registration Statement, the Base Prospectus and the Prospectus
Supplement and all other legal matters relating to this Agreement and the
transactions contemplated hereby shall be reasonably satisfactory in all
material respects to counsel for the Placement Agent, and the Company shall have
furnished to such counsel all documents and information that they may reasonably
request to enable them to pass upon such matters.

     

    (D)           The
Placement Agent shall have received from outside counsel to the Company such
counsel’s written opinion, addressed to the Placement Agent and the Purchasers
dated as of the Closing Date, in form and substance reasonably satisfactory to
the Placement Agent, and a “negative assurance” letter in form and substance
reasonably satisfactory to the Placement Agent.

     

    (E)           Neither
the Company nor any of its Subsidiaries shall have sustained since the date of
the latest audited financial statements included or incorporated by reference in
the Base Prospectus, any loss or interference with its business from fire,
explosion, flood, terrorist act or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or
decree, otherwise than as set forth in or contemplated by the Base Prospectus
and (ii) since such date there shall not have been any change in the capital
stock or long-term debt of the Company or any of its Subsidiaries or any change,
or any development involving a prospective change, in or affecting the business,
general affairs, management, financial position, stockholders’ equity, results
of operations or prospects of the Company and its Subsidiaries, otherwise than
as set forth in or contemplated by the Base Prospectus, the effect of which, in
any such case described in clause (i) or (ii), is, in the judgment of the
Placement Agent, so material and adverse as to make it impracticable or
inadvisable to proceed with the sale or delivery of the Securities on the terms
and in the manner contemplated by the Base Prospectus and the Prospectus
Supplement.

     

    (F)           The
Company is a reporting company pursuant to Section 15(d) of the Exchange Act
and, as of the Closing Date, the Shares shall be listed and admitted and
authorized for trading on the Trading Market, and satisfactory evidence of such
actions shall have been provided to the Placement Agent.  The Company
shall have taken no action designed to, or likely to have the effect of,
terminating the Company’s reporting obligations under the Exchange Act or
delisting or suspending from trading the Common Stock from the Trading Market,
nor has the Company received any information suggesting that the Commission or
the Trading Market is contemplating any such termination.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (G)           Subsequent
to the execution and delivery of this Agreement, there shall not have occurred
any of the following: (i) trading in securities generally on the New York Stock
Exchange, the Nasdaq Global Market or the NYSE Amex or in the over-the-counter
market, or trading in any securities of the Company on any exchange or in the
over-the-counter market, shall have been suspended or minimum or maximum prices
or maximum ranges for prices shall have been established on any such exchange or
such market by the Commission, by such exchange or by any other regulatory body
or governmental authority having jurisdiction, (ii) a banking moratorium shall
have been declared by federal or state authorities or a material disruption has
occurred in commercial banking or securities settlement or clearance services in
the United States, (iii) the United States shall have become engaged in
hostilities in which it is not currently engaged, the subject of an act of
terrorism, there shall have been an escalation in hostilities involving the
United States, or there shall have been a declaration of a national emergency or
war by the United States, or (iv) there shall have occurred any other calamity
or crisis or any change in general economic, political or financial conditions
in the United States or elsewhere, if the effect of any such event in clause
(iii) or (iv) makes it, in the sole judgment of the Placement Agent,
impracticable or inadvisable to proceed with the sale or delivery of the
Securities on the terms and in the manner contemplated by the Base Prospectus
and the Prospectus Supplement.

     

    (H)           No
action shall have been taken and no statute, rule, regulation or order shall
have been enacted, adopted or issued by any governmental agency or body which
would, as of the Closing Date, prevent the issuance or sale of the Securities or
materially and adversely affect or potentially and adversely affect the business
or operations of the Company; and no injunction, restraining order or order of
any other nature by any federal or state court of competent jurisdiction shall
have been issued as of the Closing Date which would prevent the issuance or sale
of the Securities or materially and adversely affect or potentially and
adversely affect the business or operations of the Company.

     

    (I)           The
Company shall have entered into subscription agreements with each of the
Purchasers and such agreements shall be in full force and effect and shall
contain representations and warranties of the Company as agreed between the
Company and the Purchasers.

     

    (J)           FINRA
shall have raised no objection to the fairness and reasonableness of the terms
and arrangements of this Agreement.  In addition, the Company shall,
if requested by the Placement Agent, make or authorize Placement Agent’s counsel
to make on the Company’s behalf, an Issuer Filing with FINRA pursuant to FINRA
Rule 5110 with respect to the Registration Statement and pay all filing fees
required in connection therewith.

    

    (K)           Prior
to the Closing Date, the Company shall have furnished to the Placement Agent
such further information, certificates and documents as the Placement Agent may
reasonably request.

     

    All
opinions, letters, evidence and certificates mentioned above or elsewhere in
this Agreement shall be deemed to be in compliance with the provisions hereof
only if they are in form and substance reasonably satisfactory to counsel for
the Placement Agent.

     

    SECTION 8.    INDEMNIFICATION.    (A)  To the
extent permitted by law, the Company will indemnify Rodman and its stockholders,
directors, officers, employees and controlling persons (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) against all
losses, claims, damages, expenses and liabilities, as the same are incurred
(including the reasonable fees and expenses of counsel), relating to or arising
out of its activities hereunder or pursuant to this engagement letter, except to
the extent that any losses, claims, damages, expenses or liabilities (or actions
in respect thereof) are found in a final judgment (not subject to appeal) by a
court of law to have resulted primarily and directly from Rodman’s willful
misconduct or gross negligence in performing the services described
herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (B)           Promptly
after receipt by Rodman of notice of any claim or the commencement of any action
or proceeding with respect to which Rodman is entitled to indemnity hereunder,
Rodman will notify the Company in writing of such claim or of the commencement
of such action or proceeding, but failure to so notify the Company shall not
relieve the Company from any obligation it may have hereunder, except and only
to the extent such failure results in the forfeiture by the Company of
substantial rights and defenses.  If the Company so elects or is
requested by Rodman, the Company will assume the defense of such action or
proceeding and will employ counsel reasonably satisfactory to Rodman and will
pay the fees and expenses of such counsel.  Notwithstanding the
preceding sentence, Rodman will be entitled to employ counsel separate from
counsel for the Company and from any other party in such action if counsel for
Rodman reasonably determines that it would be inappropriate under the applicable
rules of professional responsibility for the same counsel to represent both the
Company and Rodman.  In such event, the reasonable fees and
disbursements of no more than one such separate counsel will be paid by the
Company.  The Company will have the exclusive right to settle the
claim or proceeding provided that the Company will not settle any such claim,
action or proceeding without the prior written consent of Rodman, which will not
be unreasonably withheld.

    

    (C)           The
Company agrees to notify Rodman promptly of the assertion against it or any
other person of any claim or the commencement of any action or proceeding
relating to a transaction contemplated by this engagement letter.

    

    (D)           If
for any reason the foregoing indemnity is unavailable to Rodman or insufficient
to hold Rodman harmless, then the Company shall contribute to the amount paid or
payable by Rodman as a result of such losses, claims, damages or liabilities in
such proportion as is appropriate to reflect not only the relative benefits
received by the Company on the one hand and Rodman on the other, but also the
relative fault of the Company on the one hand and Rodman on the other that
resulted in such losses, claims, damages or liabilities, as well as any relevant
equitable considerations.  The amounts paid or payable by a party in
respect of losses, claims, damages and liabilities referred to above shall be
deemed to include any legal or other fees and expenses incurred in defending any
litigation, proceeding or other action or claim.  Notwithstanding the
provisions hereof, Rodman’s share of the liability hereunder shall not be in
excess of the amount of fees actually received, or to be received, by Rodman
under this engagement letter (excluding any amounts received as reimbursement of
expenses incurred by Rodman).

    

    (E)           These
indemnification provisions shall remain in full force and effect whether or not
the transaction contemplated by this engagement letter is completed and shall
survive the termination of this engagement letter, and shall be in addition to
any liability that the Company might otherwise have to any indemnified party
under this engagement letter or otherwise.

    

    SECTION 9.    GOVERNING
LAW.  This Agreement will be governed by, and construed in
accordance with, the laws of the State of New York applicable to agreements made
and to be performed entirely in such State.  This Agreement may not be
assigned by either party without the prior written consent of the other
party.  This Agreement shall be binding upon and inure to the benefit
of the parties hereto, and their respective successors and permitted assigns.
Any right to trial by jury with respect to any dispute arising under this
Agreement or any transaction or conduct in connection herewith is
waived.  Any dispute arising under this Agreement may be brought into
the courts of the State of New York or into the Federal Court located in New
York, New York and, by execution and delivery of this Agreement, the Company
hereby accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of aforesaid courts.  Each party
hereto hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by delivering a copy
thereof via overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. If either party shall
commence an action or proceeding to enforce any provisions of a Transaction
Document, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its attorneys’ fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
action or proceeding.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    SECTION 10.    ENTIRE
AGREEMENT/MISC.  This Agreement embodies the entire agreement
and understanding between the parties hereto, and supersedes all prior
agreements and understandings, relating to the subject matter
hereof.  If any provision of this Agreement is determined to be
invalid or unenforceable in any respect, such determination will not affect such
provision in any other respect or any other provision of this Agreement, which
will remain in full force and effect.  This Agreement may not be
amended or otherwise modified or waived except by an instrument in writing
signed by both Rodman and the Company.  The representations,
warranties, agreements and covenants contained herein shall survive the closing
of the Placement and delivery and/or exercise of the Securities, as
applicable.  This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart.  In the event that any
signature is delivered by facsimile transmission or a .pdf format file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or .pdf signature page were an original thereof.

    

    SECTION 11.    NOTICES.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified on
the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a
business day, (b) the next business day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number on
the signature pages attached hereto on a day that is not a business day or later
than 6:30 p.m. (New York City time) on any business day, (c) the business day
following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) upon actual receipt by the party to whom such notice is
required to be given.  The address for such notices and communications
shall be as set forth on the signature pages hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    Please
confirm that the foregoing correctly sets forth our agreement by signing and
returning to Rodman a copy of this Agreement.

     

    
      
        
          
            
              	 	

                      Very
      truly yours,

                      

                      RODMAN
      & RENSHAW, LLC

                    	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 
	 	 	 	 
	 	

                      Address for
      notice:

                      1251
      Avenue of the Americas, 20th Floor

                      New
      York, NY, 10020

                      Fax
      (646) 841-1640

                      Attention:  General
      Counsel

                    	 

            

          

        

      

    Accepted
and Agreed to as of

    the date
first written above:

    

    NOVELOS THERAPEUTICS,
INC.

    

    By:
______________________

          Name:

          Title:

    

    

    Address for
notice:

    One
Gateway Center, Suite 504

    Newton,
MA 02458

    Fax: (617)
860-1170

    Attention: President
and Chief Executive OfficerUnassociated Document

    Exhibit
4.4

      

    SHORE
BANCSHARES, INC.

     

    and

    

    ______________________,
as Trustee

    

    INDENTURE

    

    Dated
as of ______________, _____

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    

    
      
        
          	 
      	 
      	 
      	
                  Page

                
	
                  ARTICLE
      1 – DEFINITIONS AND INCORPORATION BY REFERENCE

                	 
      	
                  1

                
	
                  1.1

                	
                  Definitions

                	 
      	
                  1

                
	
                  1.2

                	
                  Other
      Definitions

                	 
      	
                  5

                
	
                  1.3

                	
                  Incorporation
      by Reference of Trust Indenture Act

                	 
      	
                  6

                
	
                  1.4

                	
                  Rules
      of Construction

                	 
      	
                  6

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      2 – THE SECURITIES

                	 
      	
                  7

                
	
                  2.1

                	
                  Issuable
      in Series

                	 
      	
                  7

                
	
                  2.2

                	
                  Establishment
      of Terms of Series of Securities

                	 
      	
                  7

                
	
                  2.3

                	
                  Execution
      and Authentication

                	 
      	
                  10

                
	
                  2.4

                	
                  Registrar
      and Paying Agent

                	 
      	
                  10

                
	
                  2.5

                	
                  Paying
      Agent To Hold Assets in Trust

                	 
      	
                  11

                
	
                  2.6

                	
                  Securityholder
      Lists

                	 
      	
                  11

                
	
                  2.7

                	
                  Transfer
      and Exchange

                	 
      	
                  12

                
	
                  2.8

                	
                  Replacement
      Securities

                	 
      	
                  13

                
	
                  2.9

                	
                  Outstanding
      Securities

                	 
      	
                  13

                
	
                  2.10

                	
                  Treasury
      Securities

                	 
      	
                  13

                
	
                  2.11

                	
                  Temporary
      Securities

                	 
      	
                  14

                
	
                  2.12

                	
                  Cancellation

                	 
      	
                  14

                
	
                  2.13

                	
                  Payment
      of Interest; Defaulted Interest; Computation of Interest

                	 
      	
                  14

                
	
                  2.14

                	
                  CUSIP
      Number

                	 
      	
                  15

                
	
                  2.15

                	
                  Provisions
      for Global Securities

                	 
      	
                  15

                
	
                  2.16

                	
                  Persons
      Deemed Owners

                	 
      	
                  16

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      3 – REDEMPTION

                	 
      	
                  16

                
	
                  3.1

                	
                  Notices
      of Trustee

                	 
      	
                  16

                
	
                  3.2

                	
                  Selection
      by Trustee of Securities to Be Redeemed

                	 
      	
                  16

                
	
                  3.3

                	
                  Notice
      of Redemption

                	 
      	
                  17

                
	
                  3.4

                	
                  Effect
      of Notice of Redemption

                	 
      	
                  18

                
	
                  3.5

                	
                  Deposit
      of Redemption Price

                	 
      	
                  18

                
	
                  3.6

                	
                  Securities
      Redeemed in Part

                	 
      	
                  18

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      4 – COVENANTS

                	 
      	
                  18

                
	
                  4.1

                	
                  Payment
      of Securities

                	 
      	
                  18

                
	
                  4.2

                	
                  SEC
      Reports

                	 
      	
                  19

                
	
                  4.3

                	
                  Waiver
      of Stay, Extension or Usury Laws

                	 
      	
                  19

                
	
                  4.4

                	
                  Compliance
      Certificate

                	 
      	
                  19

                
	
                  4.5

                	
                  Payment
      of Taxes and Other Claims

                	 
      	
                  20

                
	
                  4.6

                	
                  Corporate
      Existence

                	 
      	
                  20

                
	
                  4.7

                	
                  Maintenance
      of Properties

                	 
      	
                  20

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      5 – SUCCESSOR CORPORATION

                	 
      	
                  21

                
	
                  5.1

                	
                  Limitation
      on Consolidation, Merger and Sale of Assets

                	 
      	
                  21

                

        

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  5.2

                	
                  Successor
      Person Substituted

                	 
      	
                  21

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      6 – DEFAULTS AND REMEDIES

                	 
      	
                  22

                
	
                  6.1

                	
                  Events
      of Default

                	 
      	
                  22

                
	
                  6.2

                	
                  Acceleration

                	 
      	
                  23

                
	
                  6.3

                	
                  Other
      Remedies

                	 
      	
                  23

                
	
                  6.4

                	
                  Waiver
      of Past Defaults and Events of Default

                	 
      	
                  24

                
	
                  6.5

                	
                  Control
      by Majority

                	 
      	
                  24

                
	
                  6.6

                	
                  Limitation
      on Suits

                	 
      	
                  24

                
	
                  6.7

                	
                  Rights
      of Holders To Receive Payment

                	 
      	
                  24

                
	
                  6.8

                	
                  Collection
      Suit by Trustee

                	 
      	
                  25

                
	
                  6.9

                	
                  Trustee
      May File Proofs of Claim

                	 
      	
                  25

                
	
                  6.10

                	
                  Priorities

                	 
      	
                  25

                
	
                  6.11

                	
                  Undertaking
      for Costs

                	 
      	
                  26

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      7 – TRUSTEE

                	 
      	
                  26

                
	
                  7.1

                	
                  Duties
      of Trustee

                	 
      	
                  26

                
	
                  7.2

                	
                  Rights
      of Trustee

                	 
      	
                  27

                
	
                  7.3

                	
                  Individual
      Rights of Trustee

                	 
      	
                  28

                
	
                  7.4

                	
                  Trustee’s
      Disclaimer

                	 
      	
                  28

                
	
                  7.5

                	
                  Notice
      of Default

                	 
      	
                  28

                
	
                  7.6

                	
                  Reports
      by Trustee to Holders

                	 
      	
                  28

                
	
                  7.7

                	
                  Compensation
      and Indemnity

                	 
      	
                  29

                
	
                  7.8

                	
                  Replacement
      of Trustee

                	 
      	
                  29

                
	
                  7.9

                	
                  Successor
      Trustee by Consolidation, Merger or Conversion

                	 
      	
                  30

                
	
                  7.10

                	
                  Eligibility;
      Disqualification

                	 
      	
                  30

                
	
                  7.11

                	
                  Preferential
      Collection of Claims Against Company

                	 
      	
                  30

                
	
                  7.12

                	
                  Paying
      Agents

                	 
      	
                  30

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      8 – AMENDMENTS, SUPPLEMENTS AND WAIVERS

                	 
      	
                  31

                
	
                  8.1

                	
                  Without
      Consent of Holders

                	 
      	
                  31

                
	
                  8.2

                	
                  With
      Consent of Holders

                	 
      	
                  32

                
	
                  8.3

                	
                  Compliance
      with Trust Indenture Act

                	 
      	
                  33

                
	
                  8.4

                	
                  Revocation
      and Effect of Consents

                	 
      	
                  33

                
	
                  8.5

                	
                  Notation
      on or Exchange of Securities

                	 
      	
                  33

                
	
                  8.6

                	
                  Trustee
      to Sign Amendments, Etc.

                	 
      	
                  34

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      9 DISCHARGE OF INDENTURE; DEFEASANCE

                	 
      	
                  34

                
	
                  9.1

                	
                  Discharge
      of Indenture

                	 
      	
                  34

                
	
                  9.2

                	
                  Legal
      Defeasance

                	 
      	
                  34

                
	
                  9.3

                	
                  Covenant
      Defeasance

                	 
      	
                  35

                
	
                  9.4

                	
                  Conditions
      to Legal Defeasance or Covenant Defeasance

                	 
      	
                  35

                
	
                  9.5

                	
                  Deposited
      Money and U.S.  and Foreign Government Obligations to be Held in
      Trust; Other Miscellaneous Provisions

                	 
      	
                  36

                
	
                  9.6

                	
                  Reinstatement

                	 
      	
                  37

                
	
                  9.7

                	
                  Moneys
      Held by Paying Agent

                	 
      	
                  37

                

        

      

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  9.8

                	
                  Moneys
      Held by Trustee

                	 
      	
                  37

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      10 – MISCELLANEOUS

                	
                  38

                
	
                  10.1

                	
                  Trust
      Indenture Act Controls

                	 
      	
                  38

                
	
                  10.2

                	
                  Notices

                	 
      	
                  38

                
	
                  10.3

                	
                  Communications
      by Holders with Other Holders

                	 
      	
                  39

                
	
                  10.4

                	
                  Certificate
      and Opinion as to Conditions Precedent

                	 
      	
                  39

                
	
                  10.5

                	
                  Statement
      Required in Certificate and Opinion

                	 
      	
                  39

                
	
                  10.6

                	
                  Rules
      by Trustee and Agents

                	 
      	
                  40

                
	
                  10.7

                	
                  Business
      Days; Legal Holidays

                	 
      	
                  40

                
	
                  10.8

                	
                  Governing
      Law

                	 
      	
                  40

                
	
                  10.9

                	
                  No
      Adverse Interpretation of Other Agreements

                	 
      	
                  40

                
	
                  10.10

                	
                  No
      Recourse Against Others

                	 
      	
                  40

                
	
                  10.11

                	
                  Successors
      and Assigns

                	 
      	
                  40

                
	
                  10.12

                	
                  Multiple
      Counterparts

                	 
      	
                  41

                
	
                  10.13

                	
                  Table
      of Contents, Headings, Etc.

                	 
      	
                  41

                
	
                  10.14

                	
                  Separabilty

                	 
      	
                  41

                
	
                  10.15

                	
                  Securities
      in a Foreign Currency or in ECU

                	 
      	
                  41

                
	
                  10.16

                	
                  Judgment
      Currency

                	 
      	
                  42

                

        

      

    

     

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    CROSS-REFERENCE
TABLE

    
      
        
          	
                  TIA
      SECTION

                	
                  INDENTURE
      SECTION

                
	
                  310
      (a)(1)

                	
                  7.10

                
	
                  (a)(2)

                	
                  7.10

                
	
                  (a)(3)

                	
                  N/A

                
	
                  (a)(4)

                	
                  N/A

                
	
                  (a)(5)

                	
                  7.10

                
	
                  (b)

                	
                  7.8;
      7.10; 10.2

                
	
                  (b)(1)

                	
                  7.10

                
	
                  (b)(9)

                	
                  7.10

                
	
                  (c)

                	
                  N/A

                
	
                  311
      (a)

                	
                  7.11

                
	
                  (b)

                	
                  7.11

                
	
                  (c)

                	
                  N/A

                
	
                  312
      (a)

                	
                  2.6

                
	
                  (b)

                	
                  10.3

                
	
                  (c)

                	
                  10.3

                
	
                  313
      (a)

                	
                  7.6

                
	
                  (b)(1)

                	
                  7.6

                
	
                  (b)(2)

                	
                  7.6

                
	
                  (c)

                	
                  7.6;
      10.2

                
	
                  (d)

                	
                  7.6

                
	
                  314
      (a)

                	
                  4.2;
      4.4; 10.2

                
	
                  (b)

                	
                  N/A

                
	
                  (c)(1)

                	
                  10.4;
      10.5

                
	
                  (c)(2)

                	
                  10.4;
      10.5

                
	
                  (c)(3)

                	
                  N/A

                
	
                  (d)

                	
                  N/A

                
	
                  (e)

                	
                  10.5

                
	
                  (f)

                	
                  N/A

                
	
                  315
      (a)

                	
                  7.1,
      7.2

                
	
                  (b)

                	
                  7.5;
      10.2

                
	
                  (c)

                	
                  7.1

                
	
                  (d)

                	
                  6.5;
      7.1; 7.2

                
	
                  (e)

                	
                  6.11

                
	
                  316
      (a)(last sentence)

                	
                  2.10

                
	
                  (a)(1)(A)

                	
                  6.5

                
	
                  (a)(1)(B)

                	
                  6.4

                
	
                  (a)(2)

                	
                  8.2

                
	
                  (b)

                	
                  6.7

                
	
                  (c)

                	
                  8.4

                
	
                  317
      (a)(1)

                	
                  6.8

                
	
                  (a)(2)

                	
                  6.9

                
	
                  (b)

                	
                  2.5;
      7.12

                
	
                  318
      (a)

                	
                  10.1

                

        

      

    

    N/A means
not applicable

    

    Note:
This Cross-Reference Table shall not, for any purpose, be deemed to be a part of
the Indenture.

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

    THIS INDENTURE (this “Indenture”) is
dated as of ______________, ____, by and between Shore Bancshares, Inc., a
Maryland corporation, as Issuer (the “Company”), and
____________________________, a _______________ organized under the laws of
____________, as Trustee (the “Trustee”).

    

    RECITALS
OF THE COMPANY

    

    The Company has duly authorized the
execution and delivery of this Indenture to provide for the issuance from time
to time of its debentures, notes or other evidences of indebtedness to be issued
in one or more series (the “Securities”), as herein
provided, up to such principal amount as may from time to time be authorized in
or pursuant to one or more resolutions of the Board of Directors or by
supplemental indenture.

    

    All things necessary to make this
Indenture a valid agreement of the Company in accordance with its terms have
been done, and the execution and delivery thereof have been in all respects duly
authorized by the parties hereto.

    

    NOW, THEREFORE, THIS INDENTURE
WITNESSETH:

    

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

    

    ARTICLE
1

    DEFINITIONS
AND INCORPORATION BY REFERENCE

    

    1.1           Definitions.

    

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

    

    “Agent” means any Registrar,
Paying Agent, co-registrar or agent for service of notices and
demands.

    

    “Bankruptcy Law” means Title
11, U.S.  Code or any similar Federal or state law for the relief of
debtors.

    

    “Board of Directors” means the
Board of Directors of the Company or any committee authorized to act
therefor.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Board Resolution” means a
copy of a resolution certified pursuant to an Officers’ Certificate to have been
duly adopted by the Board of Directors of the Company and to be in full force
and effect on the date of such certification, and delivered to the
Trustee.

    

    “Capital Stock” means, with
respect to any Person, any and all shares or other equivalents (however
designated) of capital stock or any other participation, right or other interest
in the nature of an equity interest in such Person or any option, warrant or
other security convertible into any of the foregoing.

    

    “Company” means the party
named as such in the first paragraph of this Indenture until a successor
replaces such party pursuant to Article 5 of this Indenture,
and thereafter means the successor and any other primary obligor on the
Securities.

    

    “Company Order” means a
written order signed in the name of the Company by two Officers, one of whom
must be its Chief Executive Officer or its Principal Accounting
Officer.

    

    “Company Request” means any
written request signed in the name of the Company by its Chief Executive
Officer, its President, any Vice President, its Principal Accounting Officer or
its Treasurer and attested to by the Secretary or any Assistant Secretary of the
Company.

    

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

    

    “Custodian” means any
receiver, trustee, assignee, liquidator or similar official under any Bankruptcy
Law.

    

    “Default” means any event that
is, or with the passing of time or giving of notice or both would be, an Event
of Default.

    

    “Depositary” means, with
respect to the Securities of any Series issuable or issued in whole or in part
in the form of one or more Global Securities, the Person designated as
Depositary for such Series by the Company, which Depositary shall be a clearing
agency registered under the Exchange Act, until a successor Depositary shall
have become such pursuant to the applicable provisions of this Indenture, and
thereafter “Depositary”
shall mean each Person who is then a Depositary hereunder, and if at any time
there is more than one such Person, such Persons.

    

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

    

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

    

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

    

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

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “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 consistently applied as in effect in the United
States from time to time.

    

    “Global Security” or “Global Securities” means a
Security or Securities, as the case may be, in the form established pursuant to
Section 2.2 hereof,
evidencing all or part of a Series of Securities issued to the Depositary for
such Series or its nominee, registered in the name of such Depositary or
nominee, and bearing the legend set forth in Section 2.15(c) hereof (or
such legend as may be specified as contemplated by Section 2.2 hereof for such
Securities).

    

    “Holder” or “Securityholder” means the
Person in whose name a Security is registered on the Registrar’s
books.

    

    “Indebtedness” means (without
duplication), with respect to any Person, any indebtedness at any time
outstanding, secured or unsecured, contingent or otherwise, which is for
borrowed money (whether or not the recourse of the lender is to the whole of the
assets of such Person or only to a portion thereof), or evidenced by bonds,
notes, debentures or similar instruments or representing the balance deferred
and unpaid of the purchase price of any property (excluding any balances that
constitute accounts payable or trade payables, and other accrued liabilities
arising in the ordinary course of business) if and to the extent any of the
foregoing indebtedness would appear as a liability upon a balance sheet of such
Person prepared in accordance with GAAP.

    

    “Indenture” means this
Indenture as amended, restated or supplemented from time to time.

    

    “Interest Payment Date” means
the Stated Maturity of an installment of interest on Securities of any
Series.

    

    “Lien” means, with respect to
any property or assets of any Person, any mortgage or deed of trust, pledge,
hypothecation, assignment, deposit arrangement, security interest, lien, charge,
easement, encumbrance, preference, priority, or other security agreement or
preferential arrangement of any kind or nature whatsoever on or with respect to
such property or assets (including, without limitation, any capitalized lease
obligation, conditional sales, or other title retention agreement having
substantially the same economic effect as any of the
foregoing).

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

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

    

    “Officer” means the Chief
Executive Officer, the President, any Vice President, the Principal Accounting
Officer, the Treasurer or the Secretary of the Company or any other officer
designated by the Board of Directors, as the case may be.

    

    “Officers’ Certificate” means,
with respect to any Person, a certificate signed by the Chief Executive Officer,
the President or any Vice President, and the Principal Accounting Officer or any
Treasurer of such Person that shall comply with applicable provisions
of

    this
Indenture.

    

    “Opinion of Counsel” means a
written opinion from legal counsel which counsel is reasonably acceptable to the
Trustee.

    

    “Person” means any individual,
corporation, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government (including any agency or
political subdivision thereof).

    

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

    

    “Responsible Officer” when
used with respect to the Trustee, means any officer or officers within the
corporate trust department of the Trustee (or any successor group of the
Trustee) or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and who are
responsible for compliance with the obligations of the Trustee as set forth in
this Indenture and also means, with respect to a particular corporate trust
matter or obligation required of the Trustee as set forth in this Indenture, any
other officer to whom such matter is referred because of his knowledge of and
familiarity with the particular subject.

    

    “SEC” means the United States
Securities and Exchange Commission as constituted from time to time or any
successor performing substantially the same functions.

    

    “Securities” means the
securities that are issued under this Indenture, as amended or supplemented from
time to time pursuant to this Indenture.

    

    “Securities Act” means the
Securities Act of 1933, as amended.

    

    “Securityholder” has the
meaning set forth above for the defined term “Holder”.

    

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

    

    “Significant Subsidiary” means
(i) any direct or indirect Subsidiary of the Company that would be a
“significant subsidiary”

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

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

    

    “Stated Maturity” means, (i)
when used with respect to any Security of any Series 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 and, (ii) when used with respect to any
other Indebtedness, the date specified in the instrument governing such
Indebtedness as the fixed date on which the principal of such Indebtedness, or
any installment of interest thereon, is due and payable.

    

    “Subsidiary” of any specified
Person means any corporation, partnership, joint venture, association or other
business entity, whether now existing or hereafter organized or acquired, (i) in
the case of a corporation, of which more than 50% of the total voting power of
the Capital Stock entitled (without regard to the occurrence of any contingency)
to vote in the election of directors thereof is held, directly or indirectly by
such Person or any of its Subsidiaries; or (ii) in the case of a partnership,
joint venture, association or other business entity, with respect to which such
Person or any of its Subsidiaries has the power to direct or cause the direction
of the management and policies of such entity by contract or otherwise or if in
accordance with GAAP such entity is consolidated with such Person for financial
statement purposes.

    

    “TIA” or “Trust Indenture Act” means
the Trust Indenture Act of 1939 (15 U.S.  Code Section 77aaa-77bbbb) as in
effect on the date of this Indenture (except as provided in Section 8.3
hereof).

    

    “Trustee” means the party
named as such in this Indenture until a successor replaces it pursuant to this
Indenture and thereafter means the successor.

    

    “U.S.  Government
Obligations” means direct non-callable obligations of, or non-callable
obligations guaranteed by, the United States of America for the payment of which
obligation or guarantee the full faith and credit of the United States of
America is pledged.

    

    1.2           Other
Definitions.  The definitions of the following terms may be found in
the sections indicated as follows:

    

    
      
        
          	
                  Term

                	 
      	
                  Defined in Section

                
	 
      	 
      	 
      
	
                  “Business
      Day”

                	 
      	
                  10.7

                
	
                  “Covenant
      Defeasance”

                	 
      	
                  9.3

                
	
                  “Event of
      Default”

                	 
      	
                  6.1

                
	
                  “Journal”

                	 
      	
                  10.15

                
	
                  “Judgment
      Currency”

                	 
      	
                  10.16

                
	
                  “Legal
      Defeasance”

                	 
      	
                  9.2

                
	
                  “Legal
      Holiday”

                	 
      	
                  10.7

                
	
                  “Market Exchange
      Rate”

                	 
      	
                  10.15

                
	
                  “New York Banking
      Day”

                	 
      	
                  10.16

                
	
                  “Paying
      Agent”

                	 
      	
                  2.4

                
	
                  “Registrar”

                	 
      	
                  2.4

                
	
                  “Required
      Currency”

                	 
      	
                  10.16

                
	
                  “Service
      Agent”

                	
                    

                	
                  2.4

                

        

      

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    1.3          Incorporation by Reference
of Trust Indenture Act.  Whenever this Indenture refers to a
provision of the TIA, the portion of such provision required to be incorporated
herein for this Indenture to be qualified under the TIA 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 securityholder”
means a Securityholder.

    

    “indenture to be qualified”
means this Indenture.

    

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

    

    “obligor on the indenture
securities” means the Company or any other obligor on the
Securities.

    

    All other terms used in this Indenture
that are defined by the TIA, defined in the TIA by reference to another statute
or defined by SEC rule have the meanings therein assigned to them.

    

    1.4          Rules of
Construction.  Unless the context otherwise requires:

    

    (1)           a
term has the meaning assigned to it herein, whether defined expressly or by
reference;

    

    (2)           an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

    

    (3)           “or” is not
exclusive;

    

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

    

    (5)           words
used herein implying any gender shall apply to each gender; and

    

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

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    ARTICLE
2

    THE
SECURITIES

    

    2.1           Issuable in
Series.  The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited.  The
Securities may be issued in one or more Series.  All Securities of a Series
shall be identical except as may be set forth in a Board Resolution, a
supplemental indenture or an Officers’ Certificate detailing the adoption of the
terms thereof pursuant to the authority granted under a Board Resolution. 
In the case of Securities of a Series to be issued from time to time, the Board
Resolution, supplemental indenture or Officers’ Certificate may provide for the
method by which specified terms (such as interest rate, Stated Maturity, 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.

    

    2.2           Establishment of Terms of
Series of Securities.  At or prior to the issuance of any Securities
within a Series, the following shall be established (as to the Series generally,
in the case of Section
2.2(1) and either as to such Securities within the Series or as to the
Series generally in the case of paragraphs (2) through (25), inclusive, of Section 2.2) by a Board
Resolution, a supplemental indenture or an Officers’ Certificate, in each case,
pursuant to authority granted under a Board Resolution:

    

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

    

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

    

    (3)           any
limit upon the aggregate principal amount of the Securities of the Series which
may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the Series pursuant to Section 2.7, Section 2.8, Section 2.11, Section 3.6 or Section 8.5
hereof);

    

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

    

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

    
      
         

      

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    (14)         the
designation of the currency, currencies or currency units in which payment of
the principal of (and premium, if any) and interest, if any, on the Securities
of the Series will be made;

    

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

    

    (16)         the
manner in which the amounts of payment of principal of (and premium, if any) and
interest, if any, on the Securities of the Series will be determined, if such
amounts may be determined by reference to an index based on a currency or
currencies other than the currency of denomination or designation or by
reference to a commodity, commodity index, stock exchange index or financial
index;

    
      
         

      

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

    

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

    

    (19)         any
addition to or change in the covenants set forth in Article 4 or Article 5 hereof which
applies to Securities of the Series;

    

    (20)         any
other terms of the Securities of the Series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by Section 8.1 hereof, but which
may modify or delete any provision of this Indenture insofar as it applies to
such Series);

    

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

    

    (22)         the
terms and conditions, if any, upon which the Securities and any guarantees
thereof shall be subordinated in right of payment to other indebtedness of the
Company or any guarantor;

    

    (23)         the
form and terms of any guarantee of the Securities;

    

    (24)         if
applicable, that the Securities of the Series, in whole or any specified part,
shall be defeasible pursuant to Article 9 hereof;
and

    

    (25)         if
applicable, that the Securities of the Series, in whole or any specified part,
shall be convertible into equity securities of the Company.

    

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

    
      
         

      

      
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    2.3           Execution and
Authentication.  The Securities shall be executed on behalf of the
Company by two Officers of the Company or an Officer and an Assistant Secretary
of the Company.  Each such signature may be either manual or
facsimile.  The Company’s seal may be impressed, affixed, imprinted or
reproduced on the Securities and may be in facsimile form.  If an Officer
whose signature is on a Security no longer holds that office at the time the
Security is authenticated, the Security shall nevertheless be valid.  A
Security shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.  The signature shall be conclusive
evidence that the Security has been authenticated under this Indenture. 
The Trustee shall at any time, and from time to time, authenticate Securities
for original issue in the principal amount provided in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt
by the Trustee of a Company Order.  Such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which oral instructions shall be
promptly confirmed in writing.  Each Security shall be dated the date of
its authentication unless otherwise provided by a Board Resolution,
a supplemental indenture hereto or an Officers’ Certificate.  The aggregate
principal amount of Securities of any Series outstanding at any time may not
exceed any limit upon the maximum principal amount for such Series set forth in
the Board Resolution, supplemental indenture hereto or Officers’ Certificate
delivered pursuant to Section
2.2 hereof, except as provided in Section 2.8
hereof.

    

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

    

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

    

    The Trustee may appoint an
authenticating agent reasonably acceptable to the Company to authenticate
Securities.  An authenticating agent may authenticate Securities whenever
the Trustee may do so.  Any appointment shall be evidenced by instrument
signed by an authorized officer of the Trustee, a copy of which shall be
furnished to the Company.  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.

    

    2.4           Registrar and Paying
Agent.  The Company shall maintain an office or agency where
Securities of any Series may be presented for registration of transfer or for
exchange (“Registrar”),
an office or agency where Securities may be presented for payment (“Paying Agent”), and an office
or agency where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served (“Service Agent”).  The
Registrar shall keep a register of the Securities and of their transfer and
exchange.  The Company may have one or more co-registrars and one or more
additional paying agents.  The Company shall give prompt written notice to
the Trustee of the location, and any change in the location, of such office or
agency.  If at any time the Company shall fail to maintain any such
required office or to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
address of the Trustee as set forth in Section 10.2 hereof. 
Neither the Company nor any Affiliate of the Company may act as Paying
Agent.

    
      
         

      

      
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    The Company may change any Paying
Agent, Registrar or co-registrar without notice to any Securityholder.  The
Company may also from time to time designate one or more other offices or
agencies where the Securities may be presented or surrendered for any or all
such purposes and may from time to time rescind such designations.  The
Company shall give prompt written notice to the Trustee of such designation or
rescission and of any change in the location of any such other office or
agency.

    

    The Company shall enter into an
appropriate agency agreement with any Registrar or Paying Agent not a party to
this Indenture.  The agreement shall implement the provisions of this
Indenture that relate to such Agent.  The Company shall notify the Trustee
of the name and address of any such Agent.  If the Company fails to
maintain a Registrar or Paying Agent, or agent for service of notices and
demands, or fails to give the foregoing notice, the Trustee shall act as
such.  The Company hereby appoints the Trustee as 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.  The Company hereby initially
designates the Corporate Trust Office of the Trustee as such office of the
Company.

    

    2.5           Paying Agent To Hold Assets
in Trust.  The Trustee as Paying Agent shall, and the Company shall
require each Paying Agent other than the Trustee to agree in writing that each
Paying Agent shall, hold in trust for the benefit of the Holders of any Series
of Securities or the Trustee all assets held by the Paying Agent for the payment
of principal of (and premium, if any) and interest, if any, on such Series of
Securities (whether such assets have been distributed to it by the Company or
any other obligor on such Series of Securities), and the Company and the Paying
Agent shall notify the Trustee in writing of any Default by the Company (or any
other obligor on such Series of Securities) in making any such payment. 
The Company at any time may require a Paying Agent to distribute all assets held
by it to the Trustee and account for any assets disbursed, and the Trustee may
at any time during the continuance of any payment default with respect to any
Series of Securities, upon written request to a Paying Agent, require such
Paying Agent to distribute all assets held by it to the Trustee and to account
for any assets distributed.  Upon distribution to the Trustee of all assets
that shall have been delivered by the Company to the Paying Agent, the Paying
Agent shall have no further liability for such assets.

    

    2.6           Securityholder
Lists.  The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Securityholders of each Series of Securities.  If the Trustee
is not the Registrar, the Company shall furnish to the Trustee as of each
regular record date for the payment of interest on the Securities of a Series
and before each related Interest Payment Date, and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Securityholders of
each Series of Securities.

    
      
         

      

      
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    2.7           Transfer and
Exchange.  When Securities of a Series are presented to the
Registrar with a request to register the transfer thereof, the Registrar shall
register the transfer as requested, and when such Securities of a Series are
presented to the Registrar with a request to exchange them for an equal
principal amount of other authorized denominations of Securities of the same
Series, the Registrar shall make the exchange as requested.  To permit
transfers and exchanges, upon surrender of any Security for registration of
transfer at the office or agency maintained pursuant to Section 2.4 hereof, the
Company shall execute and the Trustee shall authenticate Securities at the
Registrar’s request.

    

    Notwithstanding any other provision of
this Section 2.7,
unless and until it is exchanged in whole or in part for definitive Securities,
a Global Security may not be transferred except as a whole by the Depositary to
a nominee of such Depositary or by a nominee of such Depositary to such
Depositary or another nominee of such Depositary or by such Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary.

    

    If (i) the Depositary is at any time
unwilling, unable or ineligible to continue as Depositary and a successor
Depositary is not appointed by the Company within 90 days after the date the
Company is so informed in writing or becomes aware of the same, or (ii) a
Default or an Event of Default has occurred and is continuing, the Company
promptly will execute and deliver to the Trustee definitive Securities, and the
Trustee, upon receipt of a Company Request for the authentication and delivery
of such definitive

    

    Securities (which the Company will
promptly execute and deliver to the Trustee), will authenticate and deliver
definitive Securities, without charge, in an aggregate principal amount equal to
the principal amount of the outstanding Global Securities, in exchange for and
upon surrender of all such Global Securities.

    

    In any exchange provided for in the preceding
paragraph, the Company will execute and the Trustee will authenticate and
deliver definitive Securities in the authorized denominations provided by Section 2.3 hereof. 
Upon the exchange of a Global Security for definitive Securities, such Global
Security shall be canceled by the Trustee.  Definitive Securities issued in
exchange for Global Securities pursuant to this Section 2.7 shall be
registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee.

    

    All Securities issued upon any
registration of transfer or exchange of Securities shall be the valid
obligations of the Company, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange.  Every Security presented or
surrendered for registration of transfer or for exchange shall (if so required
by the Company or the Registrar or a co-Registrar) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Registrar or a co-Registrar, duly executed by the Holder thereof
or his attorney duly authorized in writing.

    
      
         

      

      
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    Any exchange or transfer shall be
without charge, except that the Company may require payment by the Holder of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation to a transfer or exchange, but this provision shall not apply to any
exchange pursuant to Section
2.11, Section
3.6 or Section
8.5 hereof.  The Trustee shall not be required to register transfers
of Securities of any Series or to exchange Securities of any Series for a period
of 15 days before selection for redemption of such Securities.  The Trustee
shall not be required to exchange or register transfers of Securities of any
Series called or being called for redemption in whole or in part, except the
unredeemed portion of such Security being redeemed in part.

    

    2.8           Replacement
Securities.  If a mutilated Security is surrendered to the Trustee
or if the Holder of a Security presents evidence to the satisfaction of the
Company and the Trustee that the Security has been lost, destroyed or wrongfully
taken, the Company shall issue and the Trustee shall authenticate a replacement
Security of the same Series and of like tenor and principal amount and bearing a
number not contemporaneously outstanding.  An indemnity bond may be
required by the Company or the Trustee that is sufficient in the reasonable
judgment of the Company or the Trustee, as the case may be, to protect the
Company, the Trustee or any Agent from any loss which any of them may suffer if
a Security is replaced.  The Company may charge such Holder for its
reasonable, out-of-pocket expenses in replacing a Security, including the fees
and expenses of counsel.  Every replacement Security shall constitute an
additional 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 proportionally with
any and all other Securities of that Series duly issued hereunder.

    

    2.9           Outstanding
Securities.  Securities outstanding at any time are all Securities
authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, and those described in this Section 2.9 as not
outstanding.

    

    If a Security is replaced pursuant to
Section 2.8 hereof
(other than a mutilated Security surrendered for replacement), it ceases to be
outstanding until the Company and the Trustee receive proof satisfactory to each
of them that the replaced Security is held by a bona fide purchaser.  A
mutilated Security ceases to be outstanding upon surrender of such Security and
replacement thereof pursuant to Section 2.8
hereof.

    

    If a Paying Agent holds on a Redemption
Date or Maturity Date of a Series of Securities money sufficient to pay the
principal of (and premium, if any) and interest, if any, on Securities payable
on that date and is not prohibited from paying such money to the Holders thereof
pursuant to the terms of this Indenture, then on and after that date such
Securities cease to be outstanding and interest on them ceases to
accrue.

    

    Subject to Section 2.10 hereof, a
Security does not cease to be outstanding solely because the Company or an
Affiliate holds the Security.

    

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

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    2.11         Temporary
Securities.  Until definitive Securities are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary
Securities.  Temporary Securities shall be substantially in the form, and
shall carry all rights, 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 shall authenticate
definitive Securities in exchange for temporary Securities presented to
it.

    

    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 transfer, exchange or
payment.  At the direction of the Trustee, the Registrar or the Paying
Agent, and no one else, shall cancel and, at the written request of the Company,
shall dispose of all Securities surrendered for transfer, exchange, payment or
cancellation.  If the Company shall acquire any of the Securities, such
acquisition shall not operate as a redemption or satisfaction of the
Indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.12.

    

    2.13         Payment of Interest;
Defaulted Interest; Computation of Interest.  Except as otherwise
provided as
contemplated by Section
2.2 hereof with respect to any Series of Securities, interest on any
Security which is payable, and is punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Person in whose name that Security is
registered at the close of business on the regular record date for such
interest, as provided in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate establishing
the terms of such Series.

    

    At the option of the Company, Holders
shall receive payments of interest by check, by transfer to an account
maintained by such Holder in the United States or, upon receipt by the Trustee
of a written request from a Holder, by wire transfer of immediately available
funds.

    

    If the Company defaults in a payment of
interest on the Securities, it shall pay the defaulted amounts, plus any
interest payable on defaulted amounts pursuant to Section 4.1 hereof, to the
persons who are Securityholders on a subsequent special record date, which date
shall be the fifteenth day next preceding the date fixed by the Company for the
payment of defaulted interest or the next succeeding Business Day if such date
is not a Business Day.  At least 15 days before the special record date,
the Company shall mail or cause to be mailed to each Securityholder, with a copy
to the Trustee, a notice that states the special record date, the payment date,
and the amount of defaulted interest, and interest payable on such defaulted
interest, if any, to be paid.

    

    Except as otherwise specified as
contemplated by Section
2.2 hereof for Securities of any Series, interest on the Securities of
each Series shall be computed on the basis of a 360-day year of twelve 30-day
months.

    
      
         

      

      
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    2.14         CUSIP Number. 
The Company in issuing the Securities may use one or more “CUSIP” numbers, and
if so, the Trustee shall use the CUSIP number(s) in notices of redemption or
exchange as a convenience to Holders, provided that any such notice
may state that no representation is made as to the correctness or accuracy of
the CUSIP number(s) printed in the notice or on the Securities, and that
reliance may be placed only on the other identification numbers printed on the
Securities.

    

    2.15         Provisions for Global
Securities.

    

    (a)           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 Depositary for such
Global Security or Securities.

    

    (b)           Notwithstanding
any provisions to the contrary contained in Section 2.7 hereof and in
addition thereto, any Global Security shall be exchangeable pursuant to Section 2.7 hereof for
Securities registered in the names of Holders other than the Depositary for such
Security or its nominee only if (i) such Depositary notifies the Company that it
is unwilling or unable to continue as Depositary for such Global Security or if
at any time such Depositary ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor
Depositary within 90 days after 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) a Default or an Event of Default with
respect to the Securities represented by such Global Security shall have
occurred 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 Depositary shall direct in writing in an
aggregate principal amount equal to the principal amount of the Global Security
with like tenor and terms.  Except as provided in this Section 2.15(b), a Global
Security may not be transferred except as a whole by the Depositary with respect
to such Global Security to a nominee of such Depositary, by a nominee of such
Depositary to such Depositary or another nominee of such Depositary or by the
Depositary or any such nominee to a successor Depositary or a nominee of such a
successor Depositary.

    

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

    

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

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    (d)           The
Depositary, 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.

    

    (e)           Notwithstanding
the other provisions of this Indenture, unless otherwise specified as
contemplated by Section
2.2 hereof, payment of the principal of (and premium, if any) and
interest, if any, on any Global Security shall be made to the Depositary or its
nominee in its capacity as the Holder thereof.

    

    (f)           Except
as provided in
Section 2.15(e) hereof,
the Company, the Trustee and any Agent shall treat a person as the Holder of
such principal amount of outstanding Securities of any Series represented by a
Global Security as shall be specified in a written statement of the Depositary
(which may be in the form of a participants’ list for such Series) 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.

    

    2.16         Persons Deemed
Owners.  Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee, the Registrar and any agent of the Company,
the Registrar or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of
principal of (and premium, if any) and (subject to Section 2.13 hereof)
interest, if any, on such Security and for all other purposes whatsoever, and
neither the Company, the Trustee, the Registrar nor any agent of the Company,
the Registrar or the Trustee shall be affected by notice to the
contrary.

    \

    ARTICLE
3

    REDEMPTION

    

    3.1           Notices of
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
or the related Board Resolution, supplemental indenture or Officers’
Certificate.  If a Series of Securities is redeemable and the Company
elects to redeem such Securities of a Series, it shall notify the Trustee of the
Redemption Date and the principal amount of Securities to be redeemed at least
35 days (unless a shorter notice shall be satisfactory to the Trustee) but not
more than 60 days before the Redemption Date.  Any such notice may be
canceled at any time prior to notice of such redemption being mailed to any
Holder and shall thereby be void and of no effect.

    

    3.2           Selection by Trustee of
Securities to Be Redeemed.  Unless otherwise indicated for a
particular Series of Securities by a Board Resolution, a supplemental indenture
or an Officers’ Certificate, if fewer than all of the Securities of a Series are
to be redeemed, the Trustee shall select the Securities of a Series to be
redeemed pro rata, by lot or by any other method that the Trustee considers fair
and appropriate and, if such Securities are listed on any securities exchange,
by a method that complies with the requirements of such
exchange.

    
      
         

      

      
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    The Trustee shall make the selection
from Securities of a Series outstanding and not previously called for redemption
and shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Security selected for partial redemption, the
principal amount thereof to be redeemed.  Securities of a Series in
denominations of $1,000 may be redeemed only in whole.  The Trustee may
select for redemption portions of the principal of Securities of a Series that
have denominations larger than $1,000.  Securities of a Series and portions
of them it selects shall be in amounts of $1,000 or, with respect to Securities
of any Series issuable in other denominations pursuant to Section 2.2(10) hereof, the
minimum principal denomination for each Series and integral multiples
thereof.  Provisions of this Indenture that apply to Securities called for
redemption also apply to portions of Securities called for
redemption.

    

    3.3           Notice of
Redemption.  Unless otherwise indicated for a particular Series by
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate,
at least 30 days, and no more than 60 days, before a Redemption Date, the
Company shall mail, or cause to be mailed, a notice of redemption by first-class
mail to each Holder of Securities to be redeemed at his or her last address as
the same appears on the registry books maintained by the Registrar.  The
notice shall identify the Securities to be redeemed (including the CUSIP
number(s) thereof, if any) and shall state:

    

    (1)           the
Redemption Date;

    

    (2)           the
redemption price;

    

    (3)           if
any Security of a Series is being redeemed in part, the portion of the principal
amount of such Security of a Series to be redeemed and that, after the
Redemption Date and upon surrender of such Security of a Series, a new Security
or Securities in principal amount equal to the unredeemed portion will be
issued;

    

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

    

    (5)           that
Securities of a Series called for redemption must be surrendered to the Paying
Agent to collect the redemption price, and the place or places where each such
Security is to be surrendered for such payment;

    

    (6)           that,
unless the Company defaults in making the redemption payment, interest on the
Securities of a Series called for redemption ceases to accrue on or after the
Redemption Date, and the only remaining right of the Holders of such Securities
is to receive payment of the redemption price upon surrender to the Paying Agent
of the Securities redeemed; and

    

    (7)           if
fewer than all the Securities of a Series are to be redeemed, the identification
of the particular Securities of a Series (or portion thereof) to be redeemed, as
well as the aggregate principal amount of Securities of a Series to be redeemed
and the aggregate principal amount of Securities of a Series to be outstanding
after such partial redemption.

    
      
         

      

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

    

    3.4           Effect of Notice of
Redemption.  Once the notice of redemption described in Section 3.3 hereof is mailed,
Securities of a Series called for redemption become due and payable on the
Redemption Date and at the redemption price, plus interest, if any, accrued to
(but not including) the Redemption Date.  Upon surrender to the Trustee or
Paying Agent, such Securities of a Series shall be paid at the redemption price,
plus accrued interest, if any, to (but not including) the Redemption Date,
provided that if
the Redemption Date is after a regular interest payment record date and on or
prior to the next Interest Payment Date, the accrued interest shall be payable
to the Holder of the redeemed Securities registered on the relevant record date,
as specified by the Company in the notice to the Trustee pursuant to Section 3.1
hereof.

    

    3.5           Deposit of Redemption
Price.  On or prior to 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
other than Securities or portions thereof called for redemption on that date
which have been delivered by the Company to the Trustee for
cancellation.

    

    On and after any Redemption Date, if
money sufficient to pay the redemption price of and accrued interest on
Securities called for redemption shall have been made available in accordance
with the preceding paragraph and the Company and the Paying Agent are not
prohibited from paying such moneys to Holders, the Securities called for
redemption will cease to accrue interest and the only right of the Holders of
such Securities will be to receive payment of the redemption price of and,
subject to the proviso in Section 3.4 hereof, accrued
and unpaid interest on such Securities to the Redemption Date.  If any
Security called for redemption shall not be so paid, interest will be paid, from
the Redemption Date until such redemption payment is made, on the unpaid
principal of the Security and any premium or interest, if any, not paid on such
unpaid principal, in each case, at the rate and in the manner provided in the
Securities.

    

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

    

    ARTICLE
4

    COVENANTS

    

    4.1           Payment of
Securities.  The Company shall pay the principal of (and premium, if
any) and interest, if any, on each Series of Securities on the dates and in the
manner provided in
such Securities and this Indenture.  An installment of principal or
interest shall be considered paid on the date it is due if the Trustee or Paying
Agent holds on that date money designated for and sufficient to pay such
installment and is not prohibited from paying such money to the Holders pursuant
to the terms of this Indenture or otherwise.  The Company shall pay
interest on overdue principal, and overdue interest, to the extent lawful, at
the rate specified in the Series of Securities.

    
      
         

      

      
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    4.2           SEC Reports. 
The Company will:

    

    (1)           file
with the Trustee, within 15 days after the Company is required to file the same
with the SEC, copies of the annual reports and of the information, documents,
and other reports (or copies of such portions of any of the foregoing as the SEC
may from time to time by rules and regulations prescribe) which the Company may
be required to file with the SEC pursuant to Section 13 or Section 15(d) of the
Exchange Act; or, if the Company is not required to file information, documents
or reports pursuant to either of such Sections, then it will file with the
Trustee and the SEC, in accordance with rules and regulations prescribed from
time to time by the SEC, such of the supplementary and periodic information,
documents and reports which may be required pursuant to Section 13 of the
Exchange Act in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations;

    

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

    

    (3)           comply
with all other provisions of TIA Section 314(a).

    

    4.3           Waiver of Stay, Extension or
Usury Laws.  The Company covenants (to the extent that it may
lawfully do so) that they will not at any time insist upon, or plead (as a
defense or otherwise) or in any manner whatsoever claim or take the benefit or
advantage of, any stay, extension law, usury law or other law which would
prohibit or forgive the Company from paying all or any portion of the principal
of (and premium, if any) and interest, if any, on the Securities as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may
affect the covenants or the performance of this Indenture; and (to the extent
that they may lawfully do so) the Company hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not 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 had been
enacted.

    

    4.4           Compliance
Certificate.

    

    (a)           The
Company shall deliver to the Trustee, within 90 days after the end of each
fiscal year of the Company, an Officers’ Certificate which complies with TIA
Section 314(a)(4) stating that a review of the activities of the Company and its
Subsidiaries during such fiscal year has been made under the supervision of the
signing Officers with a view to determining whether each has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his or her knowledge each has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions hereof
(or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he or she may have knowledge and what
action each is taking or proposes to take with respect thereto) and that to the
best of his or her knowledge no event has occurred and remains in existence by
reason of which payments on account of the principal of (and premium, if any)
and interest, if any, on the Securities is prohibited or if such event has
occurred, a description of the event and what action each is taking or proposes
to take with respect thereto.

    
      
         

      

      
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    (b)           (i)
If any Default or Event of Default has occurred and is continuing or (ii) if any
Holder seeks to exercise any remedy hereunder with respect to a claimed Default
under this Indenture or the Securities, the Company shall deliver to the Trustee
an Officers’ Certificate specifying such event, notice or other action within
five Business Days of its becoming aware of such occurrence and what action the
Company is taking or proposes to take with respect thereto.

    

    4.5           Payment of Taxes and Other
Claims.  The Company shall pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (i) all taxes, assessments
and governmental charges (including withholding taxes and any penalties,
interest and additions to taxes) levied or imposed upon it or any of its
Significant Subsidiaries or properties of it or any of its Significant
Subsidiaries and (ii) all lawful claims for labor, materials and supplies that,
if unpaid, might by law become a Lien upon the property of it or any of its
Significant Subsidiaries; provided, however, that
neither the Company nor any of its Significant Subsidiaries shall be required to
pay or discharge or cause to be paid or discharged any such tax, assessment,
charge or claim if the amount, applicability or validity thereof is being
contested in good faith by appropriate proceedings and an adequate reserve has
been established therefor to the extent required by GAAP.

    

    4.6           Corporate
Existence.  Subject to Article 5 hereof, the Company
shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence, and the corporate or other existence
of each Significant Subsidiary, in accordance with the respective organizational
documents (as the same may be amended from time to time) of the Company and of
each Significant Subsidiary, and the rights (charter and statutory), licenses
and franchises of the Company and its Significant Subsidiaries; provided, however, that the
Company shall not be required to preserve any such right, license or franchise,
or the corporate or other existence of any of its Significant Subsidiaries, if
the Board of Directors shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and its
Significant Subsidiaries, taken as a whole, and that the loss thereof is not
adverse in any material respect to the Holders.

    

    4.7           Maintenance of
Properties.  The Company will cause all properties used or useful in
the conduct of its business or the business of any Subsidiary to be maintained
and kept in good condition, repair and working order and supplied with all
necessary equipment and will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided, however, that
nothing in this Section
4.7 shall prevent the Company from discontinuing the operation or
maintenance of any of such properties if such discontinuance is, in the judgment
of the Company, desirable in the conduct of its business or the business of any
Subsidiary and not disadvantageous in any material respect to the
Holders.

    
      
         

      

      
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    ARTICLE
5

    SUCCESSOR
CORPORATION

    

    5.1           Limitation on Consolidation,
Merger and Sale of Assets.

    

    (a)           The
Company will not, in any transaction or series of transactions, merge or
consolidate with or into, or sell, assign, convey, transfer, lease or otherwise
dispose of all or substantially all of its properties and assets (as an entirety
or substantially as an entirety in one transaction or a series of related
transactions), to any Person or Persons, unless at the time of and after giving
effect thereto (i) either (A) if the transaction or series of transactions is a
merger or consolidation, the Company shall be the surviving Person of such
merger or consolidation, or (B) the Person formed by such consolidation or into
which the Company is merged or to which the properties and assets of the Company
are transferred (any such surviving person or transferee Person being the “Surviving Entity”) shall be a
corporation organized and existing under the laws of the United States of
America, any state thereof or the District of Columbia and shall expressly
assume by a supplemental indenture executed and delivered to the Trustee, in
form reasonably satisfactory to the Trustee, all the obligations of the Company
(including, without limitation, the obligation to pay the principal of (and
premium, if any) and interest, if any, on the Securities and the performance of
the other covenants) under the Securities of each Series and this Indenture, and
in each case, this Indenture shall remain in full force and effect; and (ii)
immediately before and immediately after giving effect to such transaction or
series of transactions on a pro forma basis (including, without limitation, any
Indebtedness incurred or anticipated to be incurred in connection with or in
respect of such transaction or series of transactions), no Default or Event of
Default shall have occurred and be continuing.

    

    (b)           In
connection with any consolidation, merger or transfer of assets contemplated by
this Section 5.1, the
Company shall deliver, or cause to be delivered, to the Trustee, in form and
substance reasonably satisfactory to the Trustee, an Officers’ Certificate and
an Opinion of Counsel, each stating that such consolidation, merger or transfer
and the supplemental indenture in respect thereto comply with this Section 5.1 and that all
conditions precedent herein provided for relating to such
transaction or transactions have been complied with.

    

    5.2           Successor Person
Substituted.  Upon any consolidation or merger, or any transfer of
all or substantially all of the assets of the Company in accordance with Section 5.1 hereof, the
successor corporation formed by such consolidation or into which the Company is
merged or to which such transfer 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 corporation had been named as the
Company herein, and thereafter (except with respect to any such transfer which
is a lease) the predecessor corporation shall be relieved of all obligations and
covenants under this Indenture and the Securities.

    
      
         

      

      
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    ARTICLE
6

    DEFAULTS
AND REMEDIES

    

    6.1           Events of
Default.  “Events
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:

    

    (1)           there
is a default in the payment of any principal of or premium, if any, on the
Securities when the same becomes due and payable at maturity, upon acceleration,
redemption or otherwise;

    

    (2)           there
is a default in the payment of any interest on any Security of a Series when the
same becomes due and payable and the Default continues for a period of 30
days;

    

    (3)           the
Company defaults in the observance or performance of any other covenant in the
Securities of a Series or this Indenture for 90 days after written notice from
the Trustee or the Holders of not less than 25% in the aggregate principal
amount of the Securities of such Series then outstanding;

    

    (4)           the
Company or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

    

    (A)           commences
a voluntary case,

    

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

    

    (C)           consents
to the appointment of a Custodian of it or for all or substantially all of its
property,

    

    (D)           makes
a general assignment for the benefit of its creditors, or

    

    (E)           generally
is not paying its debts as they become due;

    

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

    

    (A)           is
for relief against the Company or any Significant Subsidiary in an involuntary
case;

    

    (B)           appoints
a Custodian of the Company or any Significant Subsidiary or for all or
substantially all of the property of the Company or any Significant Subsidiary;
or

    
      
         

      

      
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    (C)           orders
the liquidation of the Company or any Significant Subsidiary, and the order or
decree remains unstayed and in effect for 60 days; or

    

    (6)           any
other Event of Default provided with respect to
Securities of that Series, which is specified in a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate, in accordance with
Section 2.2(18)
hereof.

    

    The Trustee may withhold notice of any
Default (except in payment of principal of (and premium, if any) and interest,
if any, on the Securities) to the Holders of the Securities of any Series in
accordance with Section
7.5 hereof.

    

    6.2           Acceleration. 
If an Event of Default with respect to Securities of any Series at the time
outstanding (other than an Event of Default arising under Section 6.1(4) or Section 6.1(5) hereof) occurs
and is continuing, the Trustee by written notice to the Company, or the Holders
of not less than 25% in aggregate principal amount of the Securities of that
Series then outstanding may by written notice to the Company and the Trustee
declare that the entire principal amount of all the Securities of that Series
then outstanding plus accrued and unpaid interest to the date of acceleration
are immediately due and payable, in which case such amounts shall become
immediately due and payable; provided, however, that after
such acceleration but before a judgment or decree based on such acceleration is
obtained by the Trustee, the Holders of a majority in aggregate principal amount
of the outstanding Securities of that Series may rescind and annul such
acceleration and its consequences if (i) all existing Events of Default, other
than the nonpayment of accelerated principal (and premium, if any) or interest
that has become due solely because of the acceleration, have been cured or
waived, (ii) to the extent the payment of such interest is lawful, interest on
overdue installments of interest and overdue principal, which has become due
otherwise than by such declaration of acceleration, has been paid and (iii) the
rescission would not conflict with any judgment or decree.  No such
rescission shall affect any subsequent Default or impair any right consequent
thereto.  In case an Event of Default specified in Section 6.1(4) or Section 6.1(5) hereof with
respect to the Company occurs, such principal (and premium, if any) and interest
amount with respect to all of the Securities of that Series shall be due and
payable immediately without any declaration or other act on the part of the
Trustee or the Holders of the Securities of that Series.

    

    6.3           Other Remedies. 
If an Event of Default with respect to Securities of any Series at the time
outstanding occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the payment of principal of
(and premium, if any) and interest, if any, on the Securities of that Series or
to enforce the performance of any provision of the Securities of that Series or
this Indenture.  The Trustee may maintain a proceeding even if it does not
possess any of the Securities of that Series or does not produce any of them in
the proceeding.  A delay or omission by the Trustee or any Securityholder
in exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default.  No remedy is exclusive of any other remedy.  All
available remedies are cumulative to the extent permitted by
law.

    
      
         

      

      
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    6.4           Waiver of Past Defaults and
Events of Default.  Subject to Section 6.2, Section 6.7 and Section 8.2 hereof, the
Holders of a majority in principal amount of the Securities of any Series then
outstanding have the right to waive any existing Default or Event of Default
with respect to such Series or compliance with any provision of this Indenture
(with respect to such Series) or the Securities of such Series.  Upon any
such waiver, such Default with respect to such Series shall cease to exist, and
any Event of Default with respect to such Series 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 Event of Default or
impair any right consequent thereto.

    

    6.5           Control by
Majority.  The Holders of a majority in principal amount of the
Securities of any Series then outstanding may 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 by this Indenture with
respect to such Series.  The Trustee, however, may refuse to follow any
direction that conflicts with law or this Indenture or that the Trustee
determines may be unduly prejudicial to the rights of another Securityholder or
that may involve the Trustee in personal liability; provided that the Trustee may
take any other action deemed proper by the Trustee which is not inconsistent
with such direction.

    

    6.6           Limitation on
Suits.  Subject to Section 6.7 hereof, a
Securityholder may not institute any proceeding or pursue any remedy with
respect to this Indenture or the Securities of a Series unless:

    

    (1)           the
Holder gives to the Trustee written notice of a continuing Event of Default with
respect to the Securities of that Series;

    

    (2)           the
Holders of at least 25% in aggregate principal amount of the Securities of such
Series then outstanding make a written request to the Trustee to pursue the
remedy;

    

    (3)           such
Holder or Holders offer to the Trustee indemnity reasonably satisfactory to the
Trustee against any loss, liability or expense to be incurred in compliance with
such request;

    

    (4)           the
Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and

    

    (5)           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 aggregate principal
amount of the Securities of such Series then outstanding.

    

    A Securityholder may not use this
Indenture to prejudice the rights of another Securityholder or to obtain a
preference or priority over another Securityholder.

    

    6.7           Rights of Holders To Receive
Payment.  Notwithstanding any other provision of this Indenture, the
right of any Holder of a Security of a Series to receive payment of principal of
(and premium, if any) and interest, if any, on the Security of such Series on or
after the respective due dates expressed in the Security of such Series, or to
bring suit for the enforcement of any such payment on or after such respective
dates, is absolute and unconditional and shall not be impaired or affected
without the consent of the Holder.

    
      
         

      

      
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    6.8           Collection Suit by
Trustee.  If an Event of Default in payment of principal, premium or
interest specified in Section
6.1(1) or Section
6.1(2) hereof with respect to Securities of any Series at the time
outstanding occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Company (or any other
obligor on the Securities of that Series) for the whole amount of unpaid
principal and accrued interest remaining unpaid, together with interest on
overdue principal and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate then
borne by the Securities of that Series, and such further amounts 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.

    

    6.9           Trustee May File Proofs of
Claim.  The Trustee may file such proofs of claim and 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 the
Securityholders allowed in any judicial proceedings relative to the Company (or
any other obligor upon the Securities), any of their respective creditors or any
of their respective property and shall be entitled and empowered to collect and
receive any monies or other property payable or deliverable on any such claims
and to distribute the same after deduction of its charges and expenses to the
extent that any such charges and expenses are not paid out of the estate in any
such proceedings and any custodian in any such judicial proceeding is hereby
authorized by each Securityholder 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 Securityholders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 7.7 hereof. 
Nothing herein contained shall be deemed to authorize the Trustee to authorize
or consent to or accept or adopt on behalf of any Securityholder any plan or
reorganization, arrangement, adjustment or composition affecting the Securities
of a Series or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Securityholder in any such
proceedings.

    

    6.10         Priorities.  If
the Trustee collects any money pursuant to this Article 6, it shall pay out
the money in the following order:

    

    FIRST:                      to
the Trustee for amounts due under Section 7.7
hereof;

    

    SECOND:                
to Securityholders for amounts then due and unpaid for principal of (and
premium, if any) and interest, if any, 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 any premium and interest, respectively;
and

    

    THIRD:                     to
the Company.

    
      
         

      

      
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    The Trustee may fix a record date and
payment date for any payment to Securityholders pursuant to this Section 6.10
hereof.

    

    6.11         Undertaking for
Costs.  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 or
omitted by it as Trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant.  This Section
6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant
to Section 6.7 hereof
or a suit by Holders of more than 10% in principal amount of the Securities of a
Series then outstanding.

    

    ARTICLE
7

    TRUSTEE

    

    7.1           Duties of
Trustee.

    

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

    

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

    

    (1)           The
Trustee need perform only those duties that are specifically set forth in this
Indenture and no covenants or obligations shall be implied in this Indenture
against the Trustee.

    

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

    

    (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:

    

    (1)           This
paragraph does not limit the effect of paragraph (b) of this Section 7.1.

    

    (2)           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.

    
      
         

      

      
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    (3)           The
Trustee shall not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to Section 6.2 and Section 6.5
hereof.

    

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

    

    (e)           Whether
or not therein expressly so provided, paragraphs (a), (b), (c) and (d) of this Section 7.1 shall govern
every provision of this Indenture that in any way relates to the
Trustee.

    

    (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 the law.

    

    (g)           The
Paying Agent, the Registrar and any authenticating agent shall be entitled to
the protections, immunities and standard of care set forth in paragraphs (a), (b), (c),
and (d) of this
Section 7.1 and in
Section 7.2 hereof with
respect to the Trustee.

    

    7.2           Rights of
Trustee.

    

    (a)           Subject
to Section 7.1
hereof:

    

    (1)           The
Trustee may rely on and shall be protected in acting or refraining from acting
upon any document reasonably 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.

    

    (2)           Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, or both, which shall conform to the
provisions of Section
10.5 hereof.  The Trustee shall be protected and shall not be liable
for any action it takes or omits to take in good faith in reliance on such
certificate or opinion.

    

    (3)           The
Trustee may act through agents and shall not be responsible for the misconduct
or negligence of any agent appointed by it with due care.

    

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

    

    (5)           The
Trustee may consult with counsel of its selection, and the advice or opinion of
such counsel as to matters of law shall be full and complete authorization and
protection from liability in respect of any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such
counsel.

    
      
         

      

      
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    (6)           The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Holders pursuant to the provisions of this Indenture, unless such Holders shall
have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which may be incurred therein or thereby.

    

    (7)           The
Trustee shall not be deemed to have knowledge of any fact or matter unless such
fact or matter is known to a Responsible Officer of the Trustee.

    

    7.3           Individual Rights of
Trustee.  The Trustee in its individual or any other capacity may
become the owner or pledgee of Securities and may make loans to, accept deposits
from, perform services for or otherwise deal with the Company, or any Affiliate
thereof, with the same rights it would have if it were not Trustee.  Any
Agent may do the same with like rights.  The Trustee, however, shall be
subject to Section 7.10
and Section 7.11
hereof.

    

    7.4           Trustee’s
Disclaimer.  The Trustee makes no representation as to the validity
or adequacy of this Indenture or the Securities (except that the Trustee
represents that it is duly authorized to execute and deliver this Indenture and
authenticate the Securities and perform its obligations hereunder), it shall not
be accountable for the Company’s use of the proceeds from the sale of Securities
or any money paid to the Company pursuant to the terms of this Indenture and it
shall not be responsible for any statement in the Securities other than its
certificates of authentication.

    

    7.5           Notice of
Default.  If a Default or an Event of Default occurs and is
continuing with respect to the Securities of any Series and if it is known to
the Trustee, the Trustee shall mail to each Securityholder of the Securities of
that Series notice of the Default or the Event of Default, as the case may be,
within 30 days after it occurs.  Except in the case of a Default or an
Event of Default in payment of the principal of (and premium, if any) and
interest, if any, on any Security of any Series, the Trustee may withhold the
notice if and so long as the Board of Directors of the Trustee, the executive
committee or any trust committee of such board and/or its Responsible Officers
in good faith determine(s) that withholding the notice is in the interests of
the Securityholders of that Series.

    

    7.6           Reports by Trustee to
Holders.  If and to the extent required by the TIA, within 60 days
after September 1 of each year, commencing the September 1 following the date of
this Indenture, the Trustee shall mail to each Securityholder a brief report
dated as of such September 1 that complies with TIA Section 313(a).  The
Trustee also shall comply with TIA Sections 313(b) and 313(c).  A copy of
each report at the time of its mailing to Securityholders shall be filed with
the SEC and any stock exchange on which the Securities of that Series are
listed.  The Company shall promptly notify the Trustee when the Securities
of any Series are listed on any stock exchange, and the Trustee shall comply
with TIA Section 313(d).

    
      
         

      

      
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    7.7           Compensation and
Indemnity.  The Company shall pay to the Trustee from time to time
reasonable compensation for its services.  The Trustee’s compensation shall
not be limited by any provision of law on compensation of a trustee of an
express trust.  The Company shall reimburse the Trustee upon request for
all reasonable disbursements, expenses and advances incurred or made by it in
connection with its duties under this Indenture, including the reasonable
compensation, disbursements and expenses of the Trustee’s agents and
counsel.  The Company shall indemnify the Trustee for, and hold it harmless
against, any and all loss or liability incurred by it in connection with the
acceptance or performance of its duties under this Indenture including the
reasonable costs and expenses of defending itself against any claim or liability
in connection with the exercise or performance of any of its powers or duties
hereunder.  The Trustee shall notify the Company promptly of any claim
asserted against the Trustee for which it may seek indemnity.  However, the
failure by the Trustee to so notify the Company shall not relieve the Company of
its obligations.  Notwithstanding the foregoing, the Company need not
reimburse the Trustee for any expense or indemnify it against any loss or
liability incurred by the Trustee through its negligence or bad
faith.

    

    To secure the payment obligations of
the Company in this Section
7.7, 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 such money or
property held in trust to pay principal of (and premium, if any) and interest,
if any, on particular Securities of that Series.

    

    When the Trustee incurs expenses or
renders services after an Event of Default specified in clauses (4) or (5) of Section 6.1 hereof occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

    

    For purposes of this Section 7.7, the term “Trustee” shall include any
trustee appointed pursuant to Article 9
hereof.

    

    7.8           Replacement of
Trustee.  The Trustee may resign with respect to the Securities of
one or more Series by so notifying the Company in writing at least 90 days in
advance of such resignation.  The Holders of a majority in principal amount
of the outstanding Securities of any Series may remove the Trustee with respect
to that Series by notifying the removed Trustee in writing and may appoint a
successor Trustee with respect to that Series with the written consent of the
Company, which consent shall not be unreasonably withheld.  The Company may
remove the Trustee with respect to that Series at its election if:

    

    (1)           the
Trustee fails to comply with, or ceases to be eligible under, Section 7.10
hereof;

    

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

    

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

    

    (4)           the
Trustee otherwise becomes incapable of acting.

    
      
         

      

      
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    If the Trustee resigns or is removed or
if a vacancy exists in the office of Trustee with respect to any Series of
Securities for any reason, the Company shall promptly notify each Holder of such
event and shall promptly appoint a successor Trustee.  If a successor
Trustee with respect to the Securities of one or more Series does not take
office within 60 days after the retiring Trustee resigns or is removed, the
retiring Trustee, the Company or the Holders of at least 10% in principal amount
of the outstanding Securities of the applicable Series may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

    

    If the Trustee with respect to the
Securities of one or more Series fails to comply with Section 7.10 hereof, any
Securityholder of the applicable Series may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.

    

    Immediately following such delivery (i)
the retiring Trustee with respect to one or more Series shall, subject to its
rights under Section
7.7 hereof, transfer all property held by it as Trustee with respect to
such Series to the successor Trustee, (ii) the resignation or removal of the
retiring Trustee shall become effective, and (iii) the successor Trustee with
respect to such Series shall have all the rights, powers and duties of the
Trustee under this Indenture.  A successor Trustee with respect to the
Securities of one or more Series shall mail notice of its succession to each
Securityholder of such Series.

    

    7.9           Successor Trustee by
Consolidation, Merger or Conversion.  If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all of its
corporate trust assets to, another corporation, subject to Section 7.10 hereof, the
successor corporation without any further act shall be the successor
Trustee.

    

    7.10         Eligibility;
Disqualification.  This Indenture shall always have a Trustee who
satisfies the requirements of TIA Sections 310(a)(1), (2) and (5) in every
respect.  The Trustee shall have a combined capital and surplus of at least
$50,000,000 as set forth in its most recent published annual report of
condition.  The Trustee shall comply with TIA Section 310(b), including the
provision in Section 310(b)(1).  If at any time the Trustee shall cease to
be eligible in accordance with the provisions of this Section 7.10, it shall resign
immediately in the manner and with the effect specified in this Article 7.

    

    7.11         Preferential Collection of
Claims Against Company.  The Trustee shall comply with 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 therein.

    

    7.12         Paying Agents. 
The Company shall cause each Paying Agent other than the Trustee to execute and
deliver to it and the Trustee an instrument in which such agent shall agree with
the Trustee, subject to the provisions of this Section 7.12:

    

    (1)           that
it will hold all sums held by it as agent for the payment of principal of (and
premium, if any) and interest, if any, on the Securities (whether such sums have
been paid to it by the Company or by any obligor on the Securities) in trust for
the benefit of Holders of the Securities or the Trustee;

    
      
         

      

      
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    (2)           that
it will at any time during the continuance of any Event of Default, upon written
request from the Trustee, deliver to the Trustee all sums so held in trust by it
together with a full accounting thereof; and

    

    (3)           that
it will give the Trustee written notice within three (3) Business Days of any
failure of the Company (or by any obligor on the Securities) in the payment of
any installment of the principal of (and premium, if any) and interest, if any,
on the Securities when the same shall be due and payable.

     

    ARTICLE
8

    AMENDMENTS,
SUPPLEMENTS AND WAIVERS

    

    8.1           Without Consent of
Holders.  The Company, when authorized by a Board Resolution, and
the Trustee may amend or supplement this Indenture or the Securities of one or
more Series without notice to or consent of any Securityholder:

    

    (1)           to
comply with Section 5.1
hereof;

    

    (2)           to
provide for uncertificated Securities in addition to certificated
Securities;

    

    (3)           to
comply with any requirements of the SEC under the TIA;

    

    (4)           to
cure any ambiguity, defect or inconsistency, or to make any other change that
does not adversely affect the rights of any Securityholder;

    

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

    

    (6)           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.

    

    The Trustee is hereby authorized to
join with the Company in the execution of any supplemental indenture authorized
or permitted by the terms of this Indenture and to make any further appropriate
agreements and stipulations which may be therein contained, but the Trustee
shall not be obligated to enter into any such supplemental indenture which
adversely affects its own rights, duties or immunities under this
Indenture.

    
      
         

      

      
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    8.2           With Consent of
Holders.

    

    (a)           The
Company, when authorized by a Board Resolution, and the Trustee may amend or
supplement this Indenture or the Securities of one or more Series with the
written consent of the Holders of not less than a majority in aggregate
principal amount of the outstanding Securities of such Series affected by such
amendment or supplement without notice to any Securityholder.  The Holders
of not less than a majority in aggregate principal amount of the outstanding
Securities of each such Series affected by such amendment or supplement may
waive compliance in a particular instance by the Company with any provision of
this Indenture or the Securities of such Series without notice to any
Securityholder.  Subject to Section 8.4 hereof, without
the consent of each Securityholder affected, however, an amendment, supplement
or waiver, including a waiver pursuant to Section 6.4 hereof, may
not:

    

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

    

    (2)           reduce
the rate of or change the time for payment of interest on any
Security;

    

    (3)           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;

    

    (4)           make
any Security payable in money other than that stated in the
Security;

    

    (5)           change
the amount or time of any payment required by the Securities or reduce the
premium payable upon any redemption of the Securities, or change the time before
which no such redemption may be made;

    

    (6)           waive
a Default or Event of Default in the payment of the principal of (and premium,
if any) and 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);

    

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

    

    (8)           make
any changes in Section
6.4 or Section
6.7 hereof or this Section 8.2, except to
increase any percentage of Securities the Holders of which must consent to any
matter; or

    

    (9)           take
any other action otherwise prohibited by this Indenture to be taken without the
consent of each Holder affected thereby.

    

    (b)           Upon
the request of the Company, accompanied by a Board Resolution authorizing the
execution of any such supplemental indenture, and upon the receipt by the
Trustee of evidence reasonably satisfactory to the Trustee of the consent of the
Securityholders as aforesaid and upon receipt by the Trustee of the documents
described in Section
8.6 hereof, the Trustee shall join with the Company in the execution of
such supplemental indenture unless such supplemental indenture affects the
Trustee’s own rights, duties or immunities under this Indenture, in which case
the Trustee may in its discretion, but shall not be obligated to, enter into
such supplemental indenture.

    
      
         

      

      
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    (c)           It
shall not be necessary for the consent of the Holders under this section to
approve the particular form of any proposed amendment, supplement or waiver, but
it shall be sufficient if such consent approves the substance
thereof.

    

    8.3           Compliance with Trust
Indenture Act.  Every amendment to or supplement of this Indenture
or the Securities shall comply with the TIA as then in effect.

    

    8.4           Revocation and Effect of
Consents.  Until an amendment, supplement, waiver or other action
becomes effective, a consent to it by a Holder of a Security is a continuing
consent conclusive and binding upon such Holder and every subsequent Holder of
the same Security or portion thereof, and of any Security issued upon the
transfer thereof or in exchange therefor or in place thereof, even if notation
of the consent is not made on any such Security.  Any such Holder or
subsequent Holder, however, may revoke the consent as to his Security or portion
of a Security, if the Trustee receives the notice of revocation before the date
the amendment, supplement, waiver or other action becomes effective.  The
Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement, or
waiver which record date shall be at least 30 days prior to the first
solicitation of such consent.  If a record date is fixed, then,
notwithstanding the preceding paragraph, those Persons who were Holders at such
record date (or their duly designated proxies), and only such Persons, shall be
entitled to consent to such amendment, supplement, or waiver or to revoke any
consent previously given, whether or not such Persons continue to be Holders
after such record date.  No such consent shall be valid or effective for
more than 90 days after such record date without the applicable amendment,
supplement or waiver becoming effective.

    

    After an amendment, supplement, waiver
or other action becomes effective, it shall bind every Securityholder, unless it
makes a change described in any of clauses (1) through (9) of Section 8.2 hereof.  In
that case the amendment, supplement, waiver or other action 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; provided
that any such waiver shall not impair or affect the right of any Holder
to receive payment of principal of (and premium, if any) and interest, if any,
on a Security, on or after the respective due dates expressed in such Security,
or to bring suit for the enforcement of any such payment on or after such
respective dates without the consent of such Holder.

    

    8.5           Notation on or Exchange of
Securities.  If an amendment, supplement, or waiver changes the
terms of a Security of any Series, the Trustee may request the Holder of such
Security to deliver it to the Trustee.  In such case, the Trustee shall
place an appropriate notation on such Security about the changed terms and
return it to the Holder.  Alternatively, if the Company or the Trustee so
determines, the Company in exchange for such Security shall issue and the
Trustee shall authenticate a new security that reflects the changed terms. 
Failure to make the appropriate notation or issue a new Security shall not
affect the validity and effect of such amendment, supplement or
waiver.

    
      
         

      

      
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    8.6           Trustee to Sign Amendments,
Etc.  The Trustee shall sign any amendment, supplement or waiver
authorized pursuant to this Article 8 hereof if the
amendment, supplement or waiver does not adversely affect the rights, duties,
liabilities or immunities of the Trustee.  If it does, the Trustee may, but
need not, sign it.  In signing such amendment, supplement or waiver the
Trustee shall be entitled to receive and, subject to Section 7.1 hereof, shall be
fully protected in relying upon an Officers’ Certificate and an Opinion of
Counsel stating that such amendment, supplement or waiver is authorized or
permitted by this Indenture.  The Company may not sign an amendment or
supplement until the Board of Directors of the Company approves it.

    

    ARTICLE
9

    DISCHARGE
OF INDENTURE; DEFEASANCE

    

    9.1           Discharge of
Indenture.  The Company may terminate its obligations under the
Securities of any Series and this Indenture with respect to such Series, except
the obligations referred to in the last paragraph of this Section 9.1, if there shall
have been canceled by the Trustee or delivered to the Trustee for cancellation
all Securities of such Series theretofore authenticated and delivered (other
than any Securities of such Series that are asserted to have been destroyed,
lost or stolen and that shall have been replaced as provided in Section 2.8 hereof) and the
Company has paid all sums payable by it hereunder or deposited all required sums
with the Trustee.  After such delivery the Trustee upon request shall
acknowledge in writing the discharge of the Company’s obligations under the
Securities of such Series and this Indenture except for those surviving
obligations specified below.  Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company in Section 7.7, Section 9.5 and Section 9.6 hereof shall
survive.

    

    9.2           Legal
Defeasance.  The Company may at its option, by Board Resolution, be
discharged from its obligations with respect to the Securities of any Series on
the date the conditions set forth in Section 9.4 hereof are
satisfied (hereinafter, “Legal
Defeasance”).  For this purpose, such Legal Defeasance means that
the Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Securities of such Series and to have satisfied all its other
obligations under such Securities and this Indenture insofar as such Securities
are concerned (and the Trustee, at the expense of the Company, shall, subject to
Section 9.6 hereof,
execute proper instruments acknowledging the same), except for the following
which shall survive until otherwise terminated or discharged hereunder: (A) the
rights of Holders of outstanding Securities of such Series to receive solely
from the trust funds described in Section 9.4 hereof and as
more fully set forth in such section, payments in respect of the principal of
(and premium, if any) and interest, if any, on the Securities of such Series
when such payments are due, (B) the Company’s obligations with respect to the
Securities of such Series under Section 2.4 through Section 2.9, inclusive,
hereof, (C) the rights, powers, trusts, duties, and immunities of the Trustee
hereunder (including claims of, or payments to, the Trustee under or pursuant to
Section 7.7 hereof) and
(D) this Article
9.  Subject to compliance with this Article 9, the Company may
exercise its option under this Section 9.2 with respect to
the Securities of any Series notwithstanding the prior exercise of its option
under Section 9.3
hereof with respect to the Securities of such Series.

    
      
         

      

      
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    9.3           Covenant
Defeasance.  At the option of the Company, pursuant to a Board
Resolution, the Company shall be released from its obligations under Section 4.2 through Section 4.7 hereof,
inclusive, and Section
5.1 hereof, with respect to the outstanding Securities of any Series, on
and after the date the conditions set forth in Section 9.4 hereof are
satisfied (hereinafter, “Covenant Defeasance”). 
For this purpose, such Covenant Defeasance means that the Company may omit to
comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such specified section or portion thereof, whether
directly or indirectly by reason of any reference elsewhere herein to any such
specified Section or portion thereof or by reason of any reference in any such
specified section or portion thereof to any other provision herein or in any
other document, but the remainder of this Indenture and the Securities of any
Series shall be unaffected thereby.

    

    9.4           Conditions to Legal
Defeasance or Covenant Defeasance.  The following shall be the
conditions to application of Section 9.2 or Section 9.3 hereof to the
outstanding Securities of a Series:

    

    (1)           the
Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 7.10 hereof who shall
agree to comply with the provisions of this Article 9 applicable to it)
as 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
the Securities, (A) money in an amount, or (B) U.S.  Government Obligations
or Foreign Government Obligations which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than the due date of any payment, money in an amount, or (C)
a combination thereof, 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, and which shall be
applied by the Trustee (or other qualifying trustee) to pay and discharge, the
principal of (and premium, if any) and interest, if any, on the outstanding
Securities of such Series at the Stated Maturity of such principal, premium, if
any, or interest, if any, or on dates for payment and redemption of such
principal, premium, if any, and interest, if any, selected in accordance with
the terms of this Indenture and of the Securities of such Series;

    

    (2)           no
Event of Default or Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit, or shall have
occurred and be continuing at any time during the period ending on the 91st day
after the date of such deposit or, if longer, ending on the day following the
expiration of the longest preference period under any Bankruptcy Law applicable
to the Company in respect of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such
period);

    

    (3)           such
Legal Defeasance or Covenant Defeasance shall not cause the Trustee to have a
conflicting interest for purposes of the TIA with respect to any securities of
the Company;

    

    (4)           such
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute default under any other agreement or instrument to
which the Company is a party or by which it is bound;

    
      
         

      

      
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    (5)           the
Company shall have delivered to the Trustee an Opinion of Counsel stating that,
as a result of such Legal Defeasance or Covenant Defeasance, neither the trust
nor the Trustee will be required to register as an investment company under the
Investment Company Act of 1940, as amended;

    

    (6)           in
the case of an election under Section 9.2 hereof, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that
(i) the Company has received from, or there has been published by, the Internal
Revenue Service a ruling to the effect that or (ii) there has been a change in
any applicable Federal income tax law with the effect that, and such opinion
shall confirm that, the Holders of the outstanding Securities of such Series or
persons in their positions will not recognize income, gain or loss for Federal
income tax purposes solely as a result of such Legal Defeasance and will be
subject to Federal income tax on the same amounts, in the same manner, including
as a result of prepayment, and at the same times as would have been the case if
such Legal Defeasance had not occurred;

    

    (7)           in
the case of an election under Section 9.3 hereof, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Holders of the outstanding Securities of such Series will not recognize
income, gain or loss for Federal income tax purposes as a result of such
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 Covenant Defeasance had not occurred;

    

    (8)           the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for in this Article 9 relating to either
the Legal Defeasance under Section 9.2 hereof or the
Covenant Defeasance under Section 9.3 hereof (as the
case may be) have been complied with;

    

    (9)           the
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit under clause (1) was not made by the Company with the intent of
defeating, hindering, delaying or defrauding any creditors of the Company or
others; and

    

    (10)         the
Company shall have paid or duly provided for payment under terms
mutually satisfactory to the Company and the Trustee all amounts then due to the
Trustee pursuant to Section
7.7 hereof.

    

    9.5           Deposited Money and
U.S.  and Foreign Government Obligations to be Held in Trust; Other
Miscellaneous Provisions.  All money, U.S.  Government
Obligations and Foreign Government Obligations (including the proceeds thereof)
deposited with the Trustee pursuant to Section 9.4 hereof in respect
of the outstanding Securities shall be held in trust and applied by the Trustee,
in accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, if any, but such
money need not be segregated from other funds except to the extent required by
law.

    
      
         

      

      
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    The Company shall pay and indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against the
U.S.  Government Obligations and Foreign Government Obligations deposited
pursuant to Section 9.4
hereof or the principal, premium, if any, and interest, if any, received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of the outstanding Securities.

    

    Anything in this Article 9 to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon Company Request any money, U.S.  Government Obligations or
Foreign Government Obligations held by it as provided in Section 9.4 hereof which, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance.

    

    9.6           Reinstatement. 
If the Trustee or Paying Agent is unable to apply any money, U.S. 
Government Obligations or Foreign Government Obligations in accordance with
Section 9.1, Section 9.2, Section 9.3
or Section 9.4
hereof by reason of any legal proceeding or by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture and
the Securities shall be revived and reinstated as though no deposit had occurred
pursuant to this Article
9 until such time as the Trustee or Paying Agent is permitted to apply
all such money, U.S.  Government Obligations or Foreign Government
Obligations, as the case may be, in accordance with Section 9.1, Section 9.2, Section 9.3 or Section 9.4 hereof; provided, however, that if
the Company has made any payment of principal of (and premium, if any) and
interest, if any, on any Securities because of the reinstatement of their
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money, U.S.  Government
Obligations or Foreign Government Obligations held by the Trustee or Paying
Agent.

    

    9.7           Moneys Held by Paying
Agent.  In connection with the satisfaction and discharge of this
Indenture, all moneys then held by any Paying Agent under the provisions of this
Indenture shall, upon demand of the Company, be paid to the Trustee, or if
sufficient moneys have been deposited pursuant to Section 9.1 hereof, to the
Company, and thereupon such Paying Agent shall be released from all further
liability with respect to such moneys.

    

    9.8           Moneys Held by
Trustee.  Any moneys deposited with the Trustee or any Paying Agent
or then held by the Company in trust for the payment of the principal of (and
premium, if any) and interest, if any, on any Security that are not applied but
remain unclaimed by the Holder of such Security for two years after the date
upon which the principal of (and premium, if any) and interest, if any, on such
Security shall have respectively become due and payable shall be repaid to the
Company upon Company Request, or if such moneys are then held by the Company in
trust, such moneys shall be released from such trust; and the Holder of such
Security entitled to receive such payment shall thereafter, as an unsecured
general creditor, look only to the Company for the payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money
shall thereupon cease; provided, however, that the
Trustee or any such Paying Agent, before being required to make any such
repayment, may, at the expense of the Company, either mail to each
Securityholder affected, at the address shown in the register of the Securities
maintained by the Registrar or cause to be published once a week for two
successive weeks, in a newspaper published in the English language, customarily
published each Business Day and of general circulation in the City of
___________, ____________, a notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such mailing or publication, any unclaimed balance of such moneys then
remaining will be repaid to the Company.  After payment to the Company or
the release of any money held in trust by the Company, Securityholders entitled
to the money must look only to the Company for payment as general creditors
unless applicable abandoned property law designates another
person.

    
      
         

      

      
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    ARTICLE
10

    MISCELLANEOUS

    

    10.1         Trust Indenture Act
Controls.  If any provision of this Indenture limits, qualifies or
conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.  If any
provision of this Indenture modifies or excludes any provision of the TIA which
may be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may
be.

    

    10.2         Notices.  Any
notice or communication shall be given in writing and delivered in person, sent
by facsimile, delivered by commercial courier service or mailed by first-class
mail, postage prepaid, addressed as follows:

    

    If to the Company:

    
 

    Shore Bancshares, Inc.

    18 East Dover Street

    Easton, Maryland 21601

    Attention: Principal Accounting
Officer

    

    Copy to:

    

    If to the Trustee:

    
      
         

      

      
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    The Company or the Trustee by written
notice to the other may designate additional or different addresses for
subsequent notices or communications.  Any notice or communication to the
Company or the Trustee shall be deemed to have been given or made as of the date
so delivered if personally delivered; when answered back, if telexed; when
receipt is acknowledged, if telecopied; and five (5) calendar days after mailing
if sent by registered or certified mail, postage prepaid (except that a notice
of change of address shall not be deemed to have been given until actually
received by the addressee).

    

    Any notice or communication mailed to a
Securityholder shall be mailed to him by first-class mail, postage prepaid, at
his address shown on the register kept by the Registrar.  Failure to mail a
notice or communication to a Securityholder or any defect in it shall not affect
its sufficiency with respect to other Securityholders.  If a notice or
communication to a Securityholder is mailed in the manner provided above, it shall be
deemed duly given five (5) calendar days after mailing, whether or not the
addressee receives it.  In case by reason of the suspension of regular mail
service, or by reason of any other cause, it shall be impossible to mail any
notice as required by this Indenture, then such method of notification as shall
be made with the approval of the Trustee shall constitute a sufficient mailing
of such notice.  In the case of Global Securities, notices or
communications to be given to Securityholders shall be given to the Depositary,
in accordance with its applicable policies as in effect from time to
time.

    

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

    

    10.4         Certificate and Opinion as
to Conditions Precedent.  Upon any request or application by the
Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

    

    (1)           an
Officers’ Certificate (which shall include the statements set forth in Section 10.5 hereof) 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

    

    (2)           an
Opinion of Counsel (which shall include the statements set forth in Section 10.5 hereof) stating
that, in the opinion of such counsel, all such conditions precedent have been
complied with.

    

    10.5         Statement Required in
Certificate and Opinion.  Each certificate and opinion with respect
to compliance with a condition or covenant provided for in this Indenture
shall include:

    

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

    

    (2)           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;

    
      
         

      

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

    

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

    

    10.6         Rules by Trustee and
Agents.  The Trustee may make reasonable rules for action by or at
meetings of Securityholders.  The Registrar and Paying Agent may make
reasonable rules for their functions.

    

    10.7         Business Days; Legal
Holidays.  A “Business Day” is a day that
is not a Legal Holiday.  A “Legal Holiday” is a Saturday,
a Sunday, a federally recognized holiday or a day on which banking institutions
are not required to be open in the State of ____________.  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.

    

    10.8         Governing Law. 
THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW THAT WOULD APPLY THE LAW OF ANY OTHER JURISDICTION.  EACH
OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE OR THE SECURITIES.

    

    10.9        
No Adverse
Interpretation of Other Agreements.  This Indenture may not be used
to interpret another indenture, loan, security or debt agreement of the Company
or any Subsidiary thereof.  No such indenture, loan, security or debt
agreement may be used to interpret this Indenture.

    

    10.10       No Recourse Against
Others.  A director, officer, employee, stockholder or incorporator,
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 creations.  Each
Securityholder by accepting a Security waives and releases all such
liability.  Such waiver and release are part of the consideration for the
issuance of the Securities.

    

    10.11       Successors and
Assigns.  All agreements of the Company in this Indenture and the
Securities shall bind its successors and assigns, whether so expressed or
not.  All agreements of the Trustee, any additional trustee and any Paying
Agents in this Indenture shall bind their respective successors and
assigns.

    
      
         

      

      
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    10.12       Multiple
Counterparts.  The parties may sign multiple counterparts of this
Indenture.  Each signed counterpart shall be deemed an original, but all of
them together represent one and the same agreement.

    

    10.13       Table of Contents, Headings,
Etc.  The table of contents, cross-reference sheet 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.

    

    10.14       Separabilty. 
Each provision of this Indenture shall be considered separable, and if for any
reason any provision which is not essential to the effectuation of the basic
purpose of this Indenture or 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.

    

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

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    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 (and premium, if any) and interest, if any, 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.

    

    [Remainder
of Page Intentionally Left Blank]

    
      
         

      

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

    

    
      
        
          
            	 
      	
                    SHORE
      BANCSHARES, INC.

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	
                    Name:  

                  	 
      
	 
      	
                    Title:

                  	 
      
	 
      	 
      
	 
      	
                    [Name
      of Trustee]

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	
                    Name:  

                  	 
      
	 
      	
                    Title:

                  	 
      

          

        

      

    
 

    
      
         

      

      
        43

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