Document:

Exhibit 4.1

 

 

VEECO INSTRUMENTS INC.

 

INDENTURE

 

Dated as of                    ,
200  

 

            

 

TRUSTEE

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.02

  	
  OTHER DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.03

  	
  INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.04

  	
  RULES OF CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.05

  	
  ACTS OF HOLDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
  FORM AND DATING

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.02

  	
  EXECUTION AND AUTHENTICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.03

  	
  REGISTRAR AND PAYING AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.04

  	
  PAYING AGENT TO HOLD MONEY AND NOTES IN TRUST

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.05

  	
  NOTEHOLDER LISTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.06

  	
  TRANSFER AND EXCHANGE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.07

  	
  REPLACEMENT NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.08

  	
  OUTSTANDING NOTES; DETERMINATIONS OF HOLDERS’ ACTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.09

  	
  TEMPORARY NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.10

  	
  CANCELLATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.11

  	
  PERSONS DEEMED OWNERS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.12

  	
  TRANSFER AND EXCHANGE OF CERTIFICATED NOTES.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.13

  	
  CUSIP NUMBERS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.14

  	
  DEFAULTED INTEREST

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3
  [Reserved]

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
  PAYMENT OF PRINCIPAL, PREMIUM, INTEREST ON THE NOTES.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.02

  	
  SEC AND OTHER REPORTS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.03

  	
  COMPLIANCE CERTIFICATE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.04

  	
  FURTHER INSTRUMENTS AND ACTS.

  	
   

  

 

 

	
  SECTION 4.05

  	
  MAINTENANCE OF OFFICE OR AGENCY.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5
  SUCCESSOR CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
  WHEN COMPANY MAY MERGE OR TRANSFER ASSETS.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
  EVENTS OF DEFAULT.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.02

  	
  ACCELERATION.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.03

  	
  OTHER REMEDIES.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.04

  	
  WAIVER OF PAST DEFAULTS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.05

  	
  CONTROL BY MAJORITY.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.06

  	
  LIMITATION ON SUITS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.07

  	
  RIGHTS OF HOLDERS TO RECEIVE PAYMENT.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.08

  	
  COLLECTION SUIT BY TRUSTEE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.09

  	
  TRUSTEE MAY FILE PROOFS OF CLAIM.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.10

  	
  PRIORITIES.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.11

  	
  UNDERTAKING FOR COSTS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.12

  	
  WAIVER OF STAY, EXTENSION OR USURY LAWS.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7 TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
  DUTIES AND RESPONSIBILITIES OF THE TRUSTEE;
  DURING DEFAULT; PRIOR TO DEFAULT.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.02

  	
  CERTAIN RIGHTS OF THE TRUSTEE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.03

  	
  TRUSTEE NOT RESPONSIBLE FOR RECITALS,
  DISPOSITION OF NOTES OR APPLICATION OF PROCEEDS THEREOF.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.04

  	
  TRUSTEE AND AGENTS MAY HOLD NOTES;
  COLLECTIONS, ETC.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.05

  	
  MONEYS HELD BY TRUSTEE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.06

  	
  COMPENSATION AND INDEMNIFICATION OF TRUSTEE
  AND ITS PRIOR CLAIM.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.07

  	
  RIGHT OF TRUSTEE TO RELY ON OFFICERS’
  CERTIFICATE, ETC.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.08

  	
  CONFLICTING INTERESTS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.09

  	
  PERSONS ELIGIBLE FOR APPOINTMENT AS
  TRUSTEE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.10

  	
  RESIGNATION AND REMOVAL; APPOINTMENT OF
  SUCCESSOR TRUSTEE.

  	
   

  

 

2

 

	
  SECTION 7.11

  	
  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR
  TRUSTEE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.12

  	
  MERGER, CONVERSION, CONSOLIDATION OR
  SUCCESSION TO BUSINESS OF TRUSTEE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.13

  	
  PREFERENTIAL COLLECTION OF CLAIMS AGAINST
  THE COMPANY.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.14

  	
  REPORTS BY THE TRUSTEE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.15

  	
  TRUSTEE TO GIVE NOTICE OF DEFAULT, BUT
  MAY WITHHOLD IN CERTAIN CIRCUMSTANCES.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8 DISCHARGE OF INDENTURE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01

  	
  DISCHARGE OF LIABILITY ON NOTES.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.02

  	
  REPAYMENT OF THE COMPANY.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 AMENDMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01

  	
  WITHOUT CONSENT OF HOLDERS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.02

  	
  WITH CONSENT OF HOLDERS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.03

  	
  COMPLIANCE WITH TRUST INDENTURE ACT.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.04

  	
  REVOCATION AND EFFECT OF CONSENTS, WAIVERS
  AND ACTIONS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.05

  	
  NOTATION ON OR EXCHANGE OF NOTES.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.06

  	
  TRUSTEE TO SIGN SUPPLEMENTAL INDENTURES.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.07

  	
  EFFECT OF SUPPLEMENTAL INDENTURES.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.08

  	
  REFERENCE IN NOTES TO SUPPLEMENTAL
  INDENTURES.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10 [Reserved]

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11 RESERVED

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12 [Reserved]

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13 MEETINGS OF HOLDERS OF NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13.01

  	
  PURPOSES FOR WHICH MEETINGS MAY BE
  CALLED.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13.02

  	
  CALL, NOTICE AND PLACE OF MEETINGS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13.03

  	
  PERSONS ENTITLED TO VOTE AT MEETINGS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13.04

  	
  QUORUM; ACTION.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13.05

  	
  DETERMINATION OF VOTING RIGHTS; CONDUCT AND
  ADJOURNMENT OF MEETINGS.

  	
   

  

 

3

 

	
  SECTION 13.06

  	
  COUNTING VOTES AND RECORDING ACTION OF
  MEETINGS.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14 MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.01

  	
  TRUST INDENTURE ACT CONTROLS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.02

  	
  NOTICES.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.03

  	
  COMMUNICATION BY HOLDERS WITH OTHER
  HOLDERS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.04

  	
  CERTIFICATE AND OPINION AS TO CONDITIONS
  PRECEDENT.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.05

  	
  STATEMENTS REQUIRED IN CERTIFICATE OR
  OPINION.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.06

  	
  SEPARABILITY CLAUSE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.07

  	
  RULES BY TRUSTEE, PAYING AGENT AND
  REGISTRAR.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.08

  	
  BENEFITS OF INDENTURE.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.09

  	
  LEGAL HOLIDAYS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.10

  	
  GOVERNING LAW.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.11

  	
  NO RECOURSE AGAINST OTHERS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.12

  	
  SUCCESSORS.

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.13

  	
  MULTIPLE ORIGINALS.

  	
   

  

 

EXHIBITS

 

Exhibit A-1                                     Form of
Certificated Note

Exhibit B-1                                       Transfer
Certificate

 

4

 

CROSS
REFERENCE TABLE(1)

 

	
  TIA Section

  	
   

  	
  Indenture
  Section

  
	
  310 (a)(1)

  	
   

  	
  7.09

  
	
   

  	
  (a)(2)

  	
   

  	
  7.09

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.(2)

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  Preamble

  
	
   

  	
  (b)

  	
   

  	
  7.08; 7.09; 7.10; 7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311 (a)

  	
   

  	
  7.13

  
	
   

  	
  (b)

  	
   

  	
  7.13

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312 (a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  14.03

  
	
   

  	
  (c)

  	
   

  	
  14.03

  
	
  313 (a)

  	
   

  	
  7.14

  
	
   

  	
  (b)(1)

  	
   

  	
  7.14

  
	
   

  	
  (b)(2)

  	
   

  	
  7.14

  
	
   

  	
  (c)

  	
   

  	
  14.02

  
	
   

  	
  (d)

  	
   

  	
  7.14

  
	
  314 (a)

  	
   

  	
  4.02; 4.03; 14.02

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  14.04

  
	
   

  	
  (c)(2)

  	
   

  	
  14.04

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  14.05

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315 (a)

  	
   

  	
  7.01

  
	
   

  	
  (b)

  	
   

  	
  7.15; 14.02

  
	
   

  	
  (c)

  	
   

  	
  7.01

  
	
   

  	
  (d)

  	
   

  	
  7.01

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316 (a) (last sentence)

  	
   

  	
  2.08

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
   

  	
  (c)

  	
   

  	
  1.05

  

 

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

 

(2)                                  N.A.
means Not Applicable.

 

 

	
  317 (a)(1)

  	
   

  	
  6.08

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  2.04

  
	
  318 (a)

  	
   

  	
  14.01

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  14.01

  

 

2

 

INDENTURE dated as of                          ,
200   between VEECO INSTRUMENTS INC., a Delaware corporation (the “Company”),
and                             ,
a                                                         ,
as Trustee hereunder (the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company
has duly authorized the execution and delivery of this Indenture to provide for
the issuance of debt securities (hereinafter referred to as the “Notes”) in an
aggregate principal amount not to exceed $                       
to be issued from time to time in one or more series as in this Indenture
provided, as registered securities without coupons to be authenticated by the
certificate of the Trustee.

 

All things
necessary to make the Notes, when the Notes are executed by the Company and
authenticated and delivered hereunder, the valid obligations of the Company,
and to make this Indenture a valid agreement of the Company, in accordance with
their and its terms, have been done.

 

This Indenture
is subject to, and shall be governed by, the provisions of the Trust Indenture
Act of 1939, as amended, that are required to be a part of and to govern indentures qualified
under the Trust Indenture Act of 1939, as amended.

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE 1

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 1.01                    DEFINITIONS.  For all purposes of this Indenture, except as
otherwise expressly provided or unless the context otherwise requires:

 

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

 

(2)                                  all
accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP; and

 

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

 

“AFFILIATE” of
any specified person means any other person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified
person.  For purposes of this definition,
“control” when used with respect to any specified person means the power to
direct or cause the direction of the management and policies of such person,
directly or indirectly, whether through the ownership of voting securities, by

 

 

contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the
foregoing.

 

“BOARD OF
DIRECTORS” means either the board of directors of the Company or any duly
authorized committee of such board.

 

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

 

“BUSINESS DAY”
means each day of the year other than a Saturday or a Sunday on which banking
institutions are not required or authorized to close in the City of New York or
the city in which the principal corporate trust office of the Trustee is
located.

 

“CAPITAL STOCK”
of any corporation means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in
(however designated) stock issued by that corporation.

 

“CERTIFICATED
NOTES” means Notes that are in the form of the Note attached hereto as Exhibit A-1.

 

“COMMON STOCK”
means the common stock, par value $0.01 per share of the Company.

 

 “COMPANY” means the party named as the “Company”
in the first paragraph of this Indenture until a successor replaces it pursuant
to the applicable provisions of this Indenture, and, thereafter, “Company”
shall mean such successor.  The foregoing
sentence shall likewise apply to any subsequent such successor or successors.

 

“COMPANY
REQUEST” or “COMPANY ORDER” means a written request or order signed in the name
of the Company by any two Officers.

 

“CORPORATE
TRUST OFFICE” means the principal office of the Trustee at which at any time
its corporate trust business shall be administered, which office at the date
hereof is located at                                                                                             ,
or such other address as the Trustee may designate from time to time by notice
to the Holders and the Company, or the principal corporate trust office of any
successor Trustee (or such other address as a successor Trustee may designate
from time to time by notice to the Holders and the Company).

 

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

 

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

 

2

 

“EXCHANGE ACT”
means the United States Securities Exchange Act of 1934 (or any successor
statute), as amended from time to time.

 

“GAAP” means
United States generally accepted accounting principles as in effect from time
to time.

 

“HOLDER” or “NOTEHOLDER”
means a person in whose name a Note is registered on the Registrar’s books.

 

“INDENTURE”
means this Indenture, as amended or supplemented from time to time in
accordance with the terms hereof, including the provisions of the TIA that are
deemed to be a part hereof.

 

“INTEREST
PAYMENT DATE” means the Stated Maturity of an installment of interest on the
Notes.

 

“INTEREST RATE”
means             per
annum.

 

“ISSUE DATE”
of any Note means the date on which the Note was originally issued or deemed
issued as set forth on the face of the Note.

 

“NOTES” has
the meaning ascribed to it in the first paragraph under the caption “Recitals
of the Company”.

 

“OFFICER”
means the Chairman of the Board, the Vice Chairman, the Chief Executive
Officer, the President, any Executive Vice President, any Senior Vice
President, any Vice President, the Treasurer or the Secretary or any Assistant
Treasurer or Assistant Secretary of the Company.

 

“OFFICERS’ CERTIFICATE” means a written certificate containing the
information specified in Sections 14.04 and 14.05, signed in the name of
the Company by any two Officers, and delivered to the Trustee.  An Officers’ Certificate given pursuant to Section 4.03
shall be signed by one authorized financial or accounting Officer of the
Company but need not contain the information specified in Sections 14.04 and
14.05.

 

“OPINION OF
COUNSEL” means a written opinion, in form and substance reasonably satisfactory
to the Trustee, containing the information specified in Sections 14.04 and
14.05, from legal counsel who is reasonably acceptable to the Trustee.  The counsel may be an employee of, or counsel
to, the Company or the Trustee.

 

“PERSON” or “PERSON”
means any individual, corporation, limited liability company, partnership,
joint venture, association, joint-stock company, trust, unincorporated
organization, or government or any agency or political subdivision thereof,
including any subdivision or ongoing business of any such entity or
substantially all of the assets of any such entity, subdivision or business.

 

“PRINCIPAL” of
a Note means the principal amount due on the Stated Maturity as set forth on
the face of the Note.

 

3

 

“REGULAR
RECORD DATE” means, with respect to the interest payable on any Interest
Payment Date, the close of business on June 6 or December 6 (whether
or not a Business Day), as the case may be, next preceding such Interest
Payment Date.

 

“RESPONSIBLE
OFFICER” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president,
assistant vice president, assistant secretary, assistant treasurer, trust
officer or any other officer of the Trustee who customarily performs functions
similar to those performed by the Persons who at the time shall be such
officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular
subject.

 

“SEC” means
the Securities and Exchange Commission.

 

“SECURITIES
ACT” means the United States Securities Act of 1933 (or any successor statute),
as amended from time to time.

 

“SIGNIFICANT
SUBSIDIARY” means, as of any date of determination, a Subsidiary of the
Company, including its Subsidiaries, that meets any of the following conditions
as of such date:

 

(i)                                     the
Company’s and its other Subsidiaries’ investments in and advances to the
Subsidiary exceed 10 percent of the total assets of the Company and its
Subsidiaries consolidated as of the end of the most recently completed fiscal
year; or

 

(ii)                                  the
Company’s and its other Subsidiaries’ proportionate share of the total assets
of the Subsidiary exceeds 10 percent of the total assets of the Company and its
Subsidiaries consolidated as of the end of the most recently completed fiscal
year; or

 

(iii)                               the
Company’s and its other Subsidiaries’ equity in the income from continuing
operations before income taxes, extraordinary items and cumulative effect of a
change in accounting principles of the Subsidiary exceeds 10 percent of such
income of the Company and its Subsidiaries consolidated as of the end of the
most recently completed fiscal year.

 

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

 

“SUBSIDIARY”
means, as of any date of determination (i) a corporation, a majority of
whose Capital Stock with voting power, under ordinary circumstances, to elect
directors is directly or indirectly owned by the Company, by one or more
Subsidiaries of the Company or by the Company and one or more Subsidiaries of
the Company, (ii) a partnership in which the Company or a Subsidiary of
the Company holds a majority interest in the equity capital or profits of such
partnership, or (iii) any other person (other than a corporation) in which
the Company, a Subsidiary of the Company or the Company and one or more
Subsidiaries of the Company, directly or indirectly has (x) at least a
majority ownership interest or (y) the power to elect or direct the
election of a majority of the directors or other governing body of such person.

 

4

 

“TIA” means
the Trust Indenture Act of 1939 as in effect on the date of this Indenture,
provided, however, that in the event the TIA is amended after such date, TIA
means, to the extent required by any such amendment, the TIA as so amended.

 

“TRUSTEE”
means the party named as the “Trustee” in the first paragraph of this Indenture
until a successor replaces it pursuant to the applicable provisions of this
Indenture and, thereafter, shall mean such successor.  The foregoing sentence shall likewise apply
to any subsequent such successor or successors.

 

“UNITED STATES”
means the United States of America (including the States and the District of
Columbia), its territories, its possessions and other areas subject to its
jurisdiction (its “possessions” including Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands).

 

“U.S.
GOVERNMENT OBLIGATIONS” means securities that are (i) direct obligations
of the United States of America, the payment of which 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 the United States of America, the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case, are not
callable or redeemable at the option of the issuer thereof at any time prior to
the Stated Maturity of the Notes, and shall also include a depository receipt
issued by a bank or trust company as custodian with respect to any such U.S.
Government Obligation or a specific payment of interest on or principal of any
such U.S. Government Obligation held by such custodian for the account of the
holder of a depository receipt; provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to
the holder of such depository receipt from any amount received by the custodian
in respect of the U.S. Government Obligation for the specific payment of
interest on or principal of the U.S. Government Obligation evidenced by such depository
receipt.

 

SECTION 1.02                    OTHER
DEFINITIONS

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Act”

  	
   

  	
  1.05

  	
  (a)

  
	
  “Agent Members”

  	
   

  	
  2.12

  	
   

  
	
  “Bankruptcy Law”

  	
   

  	
  6.01

  	
   

  
	
  “Custodian”

  	
   

  	
  6.01

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Legal Holiday”

  	
   

  	
  14.09

  	
   

  
	
  “Notice of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  

 

SECTION 1.03                    INCORPORATION
BY REFERENCE OF TRUST INDENTURE ACT. 
Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

 

5

 

“Commission”
means the SEC.

 

“indenture
Notes” means the Notes.

 

“indenture
Note holder” means a Noteholder.

 

“indenture to
be qualified” means this Indenture.

 

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

 

“obligor” on
the indenture Notes means the Company.

 

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

 

SECTION 1.04                    RULES
OF CONSTRUCTION.  Unless the context
otherwise requires:

 

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

 

(b)                                 an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP as in effect from time to time;

 

(c)                                  “or”
is not exclusive;

 

(d)                                 “including”
means including, without limitation; and

 

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

 

SECTION 1.05                                  ACTS
OF HOLDERS.  (a)  Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in
and evidenced by (i) one or more instruments of substantially similar
tenor signed by such Holders in person or by their agent or proxy duly
appointed in writing, (ii) the record of Holders of Notes voting in favor
thereof, either in person or by proxies duly appointed in writing, at any
meeting of Holders of Notes duly called and held in accordance with the
provisions of Article 13 or (iii) a combination of such instruments
and any such record.  Except as herein
otherwise expressly provided, such action shall become effective when such
instrument or instruments or record are delivered to the Trustee and, where it
is hereby expressly required, to the Company. 
The Trustee shall promptly deliver to the Company copies of all such
instruments and records delivered to the Trustee with a courtesy copy to the
Company’s counsel at the address listed in Section 14.02.  Such instrument or instruments and record
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of Holders signing such instrument or instruments and
so voting at such meeting pursuant to Section 13.06.  Proof of execution of any such instrument or
of a writing appointing any such agent or proxy shall be sufficient for any
purpose of this

 

6

 

Indenture and conclusive in favor of the
Trustee and the Company, if made in the manner provided in this Section.

 

(b)                                 The
fact and date of the execution by any Person of any such instrument or writing
may be proved by the affidavit of a witness of such execution or by a certificate
of a notary public or other officer authorized by law to take acknowledgments
of deeds, certifying that the individual signing such instrument or writing
acknowledged to such officer the execution thereof. Where such execution is by
a signer acting in a capacity other than such signer’s individual capacity,
such certificate or affidavit shall also constitute sufficient proof of such
signer’s authority.  The fact and date of
the execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

 

The ownership
of Notes shall be proved by the register for the Notes or by a certificate of
the Registrar.

 

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

 

(d)                                 If
the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, or seek the vote of the
Holders, the Company may, at its option, by or pursuant to a resolution of the
Board of Directors, fix in advance a record date for the determination of
Holders entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other Act, but the Company shall have no obligation
to do so.  If such a record date is
fixed, such request, demand, authorization, direction, notice, consent, waiver
or other Act may be given before or after such record date, but only the
Holders of record at the close of business on such record date shall be deemed
to be Holders for purposes of determining whether Holders of the requisite
proportion of outstanding Notes have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent, waiver or other
Act, and for that purpose the outstanding Notes shall be computed as of such
record date; provided that no such authorization, agreement or consent by the
Holders on such record date shall be deemed effective unless it shall become
effective pursuant to the provisions of this Indenture not later than six
months after the record date.

 

Upon receipt
by the Trustee from any Holder of (i) any notice of default or breach referred
to in Section 6.01(3), if such default or breach has occurred and is
continuing and the Trustee shall not have given such a notice to the Company, (ii) any
declaration of acceleration referred to in Section 6.02, if an Event of
Default has occurred and is continuing and the Trustee shall not have given
such a declaration to the Company, or (iii) any direction referred to in Section 6.05,
if the Trustee shall not have taken the action specified in such direction,
then a record date shall automatically, and without any action by the Company
or the Trustee, be set for determining the Holders entitled to join in such
notice, declaration or direction, which record date shall be the close of
business on the tenth day (or, if such day is not a Business Day, the first
Business Day thereafter) following the day on which the Trustee receives such
notice,

 

7

 

declaration or direction.  Promptly after such receipt by the Trustee,
and as soon as practicable thereafter, the Trustee shall notify the Company and
the Holders of any such record date so fixed. 
The Holders on such record date (or their duly appointed agents or
proxies), and only such Persons, shall be entitled to join in such notice,
declaration or direction, whether or not such Holders remain Holders after such
record date; PROVIDED that, unless such notice, declaration or direction shall
have become effective by virtue of Holders of the requisite principal amount of
Notes on such record date (or their duly appointed agents or proxies) having
joined therein on or prior to the 90th day after such record date, such notice,
declaration or direction shall automatically, and without any action by any
Person, be canceled and of no further effect. 
Nothing in this paragraph shall be construed to prevent a Holder (or a
duly appointed agent or proxy thereof) from giving, before or after the
expiration of such 90-day period, a notice, declaration or direction contrary
to or different from, or, after the expiration of such period, identical to,
the notice, declaration or direction to which such record date relates, in
which event a new record date in respect thereof shall be set pursuant to this
paragraph. In addition, nothing in this paragraph shall be construed to render
ineffective any notice, declaration or direction of the type referred to in
this paragraph given at any time to the Trustee and the Company by Holders (or
their duly appointed agents or proxies) of the requisite principal amount of
Notes on the date such notice, declaration or direction is so given.

 

(e)                                  The
provisions of this Section 1.05 are subject to the provisions of Section 13.05.

 

ARTICLE 2

 

THE NOTES

 

SECTION 2.01                                  FORM AND
DATING.  The Notes and the Trustee’s
certificate of authentication to be borne by such Notes shall be substantially
in the form annexed hereto as Exhibit A-1, which is incorporated in and
made a part of this Indenture.  The terms
and provisions contained in the form of Note shall constitute, and are hereby
expressly made, a part of this Indenture and to the extent applicable, the
Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.

 

Any of the
Notes may have such letters, numbers or other marks of identification and such
notations, legends and endorsements as the officers executing the same may
approve (execution thereof to be conclusive evidence of such approval) and as
are not inconsistent with the provisions of this Indenture, or as may be
required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange
or automated quotation system on which the notes may be listed or designated
for issuance, or to conform to usage.

 

(a)                                  CERTIFICATED
NOTES.  Notes will be issued in
certificated form substantially in the form of Exhibit A-1 attached
hereto.

 

8

 

SECTION 2.02                                  EXECUTION
AND AUTHENTICATION.  The Notes shall be
executed on behalf of the Company by any Officer, under its corporate seal
reproduced thereon.  The signature of the
Officer on the Notes may be manual or facsimile.

 

Notes bearing
the manual or facsimile signatures of individuals who were at the time of the
execution of the Notes the proper Officers of the Company shall bind the
Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Notes or did
not hold such offices at the date of authentication of such Notes.

 

No Note shall
be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose unless there appears on such Note a certificate of authentication
substantially in the form provided for herein duly executed by the Trustee by
manual signature of an authorized officer, and such certificate upon any Note
shall be conclusive evidence, and the only evidence, that such Note has been
duly authenticated and delivered hereunder.

 

The Trustee
shall authenticate and deliver Notes for original issue in an aggregate
principal amount of up to $                        
upon a Company Order without any further action by the Company.  The aggregate principal amount of Notes
outstanding at any time may not exceed the amount set forth in the foregoing
sentence, except as provided in Section 2.07.

 

The Notes
shall be issued only in registered form without coupons and only in
denominations of $1,000 in principal amount and any integral multiple thereof.

 

SECTION 2.03                                  REGISTRAR
AND PAYING AGENT.  The Company shall
maintain an office or agency where Notes may be presented for registration of
transfer or for exchange (“Registrar”) and an office or agency where Notes may
be presented for purchase or payment (“Paying Agent”).  The Registrar shall keep a register of the
Notes and of their transfer and exchange. 
The Company may have one or more co-registrars and one or more
additional paying agents.  The term
Paying Agent includes any additional paying agent, including any named pursuant
to Section 4.05.

 

The Company
shall enter into an appropriate agency agreement with any Registrar, Paying
Agent, or co-registrar (other than the Trustee).  The agreement shall implement the provisions
of this Indenture that relate to such agent. 
The Company shall notify the Trustee in writing of the name and address
of any such agent.  If the Company fails
to maintain a Registrar or Paying Agent, the Trustee shall act as such and
shall be entitled to appropriate compensation therefor pursuant to Section 7.06.
The Company or any Subsidiary or an Affiliate of either of them may act as
Paying Agent, Registrar or co-registrar.

 

The Company
initially appoints the Trustee as Registrar and Paying Agent in connection with
the Notes.

 

SECTION 2.04                                  PAYING
AGENT TO HOLD MONEY AND NOTES IN TRUST. 
Except as otherwise provided herein, on or prior to each due date of
payments in respect of any Note, the Company shall deposit with the Paying
Agent a sum of money (in immediately available funds if deposited on the due
date) sufficient to make such payments when so becoming due.  The Company shall require each Paying Agent
(other than the Trustee) to

 

9

 

agree in writing that the Paying Agent shall
hold in trust for the benefit of Noteholders or the Trustee all money held by
the Paying Agent for the making of payments in respect of the Notes and shall
notify the Trustee in writing of any default by the Company in making any such
payment.  At any time during the
continuance of any such default, the Paying Agent shall, upon the written
request of the Trustee, forthwith pay to the Trustee all money so held in
trust.  If the Company, a Subsidiary or
an Affiliate of either of them acts as Paying Agent, it shall segregate the money
held by it as Paying Agent and hold it as a separate trust fund.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee and to account for any funds
disbursed by it.  Upon doing so, the
Paying Agent shall have no further liability for the money.

 

SECTION 2.05                                  NOTEHOLDER
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 Noteholders. 
If the Trustee is not the Registrar, the Company shall cause to be
furnished to the Trustee at least semiannually on June 6 and December 6
a listing of Noteholders dated within 13 days of the date on which the list is
furnished 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 Noteholders.

 

SECTION 2.06                                  TRANSFER
AND EXCHANGE.  (a)  Subject to Section 2.12,  upon surrender for registration of transfer
of any Note, together with a written instrument of transfer satisfactory to the
Registrar duly executed by the Noteholder or such Noteholder’s attorney duly
authorized in writing, at the office or agency of the Company designated as
Registrar or co-registrar pursuant to Section 2.03, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes of any authorized
denomination or denominations, of a like aggregate principal amount.  The Company shall not charge a service charge
for any registration of transfer or exchange, but the Company may require
payment of a sum sufficient to pay all taxes, assessments or other governmental
charges that may be imposed in connection with the transfer or exchange of the
Notes from the Noteholder requesting such transfer or exchange.

 

At the option
of the Holder, Notes may be exchanged for other Notes of any authorized
denomination or denominations, of a like aggregate principal amount, upon
surrender of the Notes to be exchanged, together with a written instrument of
transfer satisfactory to the Registrar duly executed by the Noteholder or such
Noteholder’s attorney duly authorized in writing, at such office or
agency.  Whenever any Notes are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Notes which the Holder making the exchange is
entitled to receive.

 

(b)                                 Successive
registrations and registrations of transfers and exchanges as aforesaid may be
made from time to time as desired, and each such registration shall be noted on
the register for the Notes.

 

(c)                                  Any
Registrar appointed pursuant to Section 2.03 shall provide to the Trustee
such information as the Trustee may reasonably require in connection with the
delivery by such Registrar of Notes upon transfer or exchange of Notes.

 

10

 

(d)                                 No
Registrar shall be required to make registrations of transfer or exchange of
Notes during any periods designated in the text of the Notes or in this
Indenture as periods during which such registration of transfers and exchanges
need not be made.

 

SECTION 2.07                                  REPLACEMENT
NOTES.  If (a) any mutilated Note is
surrendered to the Trustee, or (b) the Company and the Trustee receive
evidence to their satisfaction of the destruction, loss or theft of any Note,
and there is delivered to the Company and the Trustee such Note or indemnity as
may be required by them to save each of them harmless, then, in the absence of
notice to the Company or the Trustee that such Note has been acquired by a bona
fide purchaser, the Company shall execute and upon its written request the
Trustee shall authenticate and deliver, in exchange for any such mutilated Note
or in lieu of any such destroyed, lost or stolen Note, a new Note of like tenor
and principal amount, bearing a number not contemporaneously outstanding.

 

In case any
such mutilated, destroyed, lost or stolen Note has become or is about to become
due and payable, the Company in its discretion may, instead of issuing a new
Note, pay or purchase such Note, as the case may be.

 

Upon the
issuance of any new Notes under this Section 2.07, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee) connected therewith.

 

Every new Note
issued pursuant to this Section 2.07 in lieu of any mutilated, destroyed,
lost or stolen Note shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Note
shall be at any time enforceable by anyone, and shall be entitled to all
benefits of this Indenture equally and proportionately with any and all other
Notes duly issued hereunder.

 

The provisions
of this Section 2.07 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

 

SECTION 2.08                                  OUTSTANDING
NOTES; DETERMINATIONS OF HOLDERS’ ACTION. 
Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those cancelled by it or delivered to it for cancellation,
those paid pursuant to Section 2.07 and those described in this Section 2.08
as not outstanding.  A Note does not
cease to be outstanding because the Company or an Affiliate thereof holds the
Note; provided, however, that in determining whether the Holders of the
requisite principal amount of the outstanding Notes are present at a meeting of
Holders for quorum purposes have given or concurred in any request, demand,
authorization, direction, notice, consent or waiver hereunder, Notes owned by
the Company or any other obligor upon the Notes or any Affiliate of the Company
or such other obligor shall be disregarded and deemed not to be outstanding,
except that, in determining  whether the
Trustee shall be protected in making such calculation or in relying upon any
such determination as to the presence of a quorum or relying upon any such

 

11

 

request, demand, authorization, direction,
notice, consent or waiver, only Notes which a Responsible Officer of the
Trustee knows to be so owned shall be so disregarded.  Notes so owned that have been pledged in good
faith may be regarded as outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Company or any other obligor upon the
Notes or any Affiliate of the Company or such other obligor.  Subject to the foregoing, only Notes
outstanding at the time of such determination shall be considered in any such
determination (including, without limitation, determinations pursuant to
Articles 6 and 9).

 

If a Note is
replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a
bona fide purchaser.

 

If the Paying
Agent holds, in accordance with this Indenture, on Stated Maturity, money or
securities, if permitted hereunder, sufficient to pay Notes payable on that
date, then immediately after such Stated Maturity such Notes shall cease to be
outstanding and interest on such Notes shall cease to accrue.

 

SECTION 2.09                                  TEMPORARY
NOTES.  Pending the preparation of
definitive Notes, the Company may execute, and upon Company Order the Trustee
shall authenticate and deliver, temporary Notes which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Notes in
lieu of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Notes may
determine, as conclusively evidenced by their execution of such Notes.

 

If temporary
Notes are issued, the Company will cause definitive Notes to be prepared
without unreasonable delay.  After the
preparation of definitive Notes, the temporary Notes shall be exchangeable for
definitive Notes upon surrender of the temporary Notes at the office or agency
of the Company designated for such purpose pursuant to Section 2.03,
without charge to the Holder.  Upon
surrender for cancellation of any one or more temporary Notes the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
like principal amount of definitive Notes of authorized denominations.  Until so exchanged the temporary Notes shall
in all respects be entitled to the same benefits under this Indenture as
definitive Notes.

 

SECTION 2.10                                  CANCELLATION.  All Notes surrendered for payment or
registration of transfer or exchange shall, if surrendered to any person other
than the Trustee, be delivered to the Trustee and shall be promptly cancelled
by it.  The Company may at any time
deliver to the Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Company may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled by the
Trustee.  The Company may not issue new
Notes to replace Notes it has paid or delivered to the Trustee for
cancellation.  No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in
this Section 2.10, except as expressly permitted by this Indenture.  All cancelled Notes held by the Trustee shall
be destroyed by the Trustee and the Trustee shall, upon request, deliver a
certificate of destruction to the Company.

 

12

 

SECTION 2.11                                  PERSONS
DEEMED OWNERS.  Prior to due presentment
of a Note for registration of transfer, the Company, the Trustee and any agent
of the Company or the Trustee may treat the Person in whose name such Note is
registered as the owner of such Note for the purpose of receiving payment of
principal of the Note and interest thereon and for all other purposes
whatsoever, whether or not such Note be overdue, and neither the Company, the
Trustee nor any agent of the Company or the Trustee shall be affected by notice
to the contrary.

 

SECTION 2.12                                  TRANSFER
AND EXCHANGE OF CERTIFICATED NOTES.  When
Certificated Notes are presented to the Registrar with a request:

 

(x) to
register the transfer of such Certificated Notes; or

 

(y) to
exchange such Certificated Notes for an equal principal amount of Certificated
Notes of other authorized denominations,

 

the Registrar shall register the transfer or make the exchange as
requested if its reasonable requirements for such transaction are met;
provided, however, that the Certificated Notes surrendered for transfer or
exchange shall be duly endorsed or accompanied by a written instrument of
transfer in form reasonable satisfactory to the Company and the Registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing.

 

SECTION 2.13                                  CUSIP
NUMBERS.  The Company in issuing the
Notes may use “CUSIP” numbers.  The
Company will promptly notify the Trustee in writing of any change in the CUSIP
numbers.

 

SECTION 2.14                                  DEFAULTED
INTEREST.  If the Company defaults in a
payment of interest on the Notes, it shall pay, or shall deposit with the
Paying Agent money in immediately available funds sufficient to pay, the
defaulted interest, plus (to the extent lawful) any interest payable on the
defaulted interest, to the Persons who are Holders on a subsequent special
record date.  A special record date, as
used in this Section 2.14 with respect to the payment of any defaulted
interest, shall mean the 15th day next preceding the date fixed by the Company
for the payment of defaulted interest, whether or not such day is a Business
Day.  At least 15 days before the
subsequent special record date, the Company shall mail to each Holder and to the
Trustee a notice that states the subsequent special record date, the payment
date and the amount of defaulted interest to be paid.

 

ARTICLE 3

 

[RESERVED]

 

ARTICLE 4

 

COVENANTS

 

SECTION 4.01                                  PAYMENT
OF PRINCIPAL, PREMIUM, INTEREST ON THE NOTES. 
The Company will duly and punctually pay the principal of and premium,
if any, and interest at the Interest Rate in respect of the Notes in accordance
with the terms of the Notes

 

13

 

and this Indenture.  The Company will deposit or cause to be
deposited with the Trustee as directed by the Trustee, no later than 11:00 a.m.,
New York time on the day of the Stated Maturity of any Note or installment of
interest, all payments so due in immediately available funds.  Principal amount and cash interest shall be
considered paid on the applicable date due if at 11:00 a.m., New York time
on such date the Trustee or the Paying Agent holds, in accordance with this
Indenture, money or Notes, if permitted hereunder, sufficient to pay all such
amounts then due.

 

The Company
shall, to the extent permitted by law, pay cash interest on overdue amounts at
the rate per annum set forth in paragraph 1 on the reverse side of the Notes,
compounded semiannually, which interest shall accrue from the date such overdue
amount was originally due to the date payment of such amount, including
interest thereon, has been made or duly provided for. All such overdue interest
shall be payable on demand.

 

SECTION 4.02                                  SEC
AND OTHER REPORTS.  The Company shall
file with the Trustee, within 15 days after it files such annual and quarterly
reports, information, documents and other reports with the SEC, copies of its
annual report and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the SEC may by rules and
regulations prescribe) which the Company is required to file with the SEC
pursuant to Section 13 or 15(d) of the Exchange Act.  If at any time the Company is not subject to Section 13
or 15(d) of the Exchange Act, such reports shall be provided at the times
the Company would have been required to provide reports had it continued to
have been subject to such reporting requirements.  The Company also shall comply with the other
provisions of TIA Section 314(a).

 

SECTION 4.03                                  COMPLIANCE
CERTIFICATE.  The Company shall deliver
to the Trustee within 120 days after the end of each fiscal year of the Company
(beginning with the fiscal year ending on December 31, 2002) an Officers’
Certificate, stating whether or not to the best knowledge of the signers thereof
the Company is in default in the performance and observance of any of the
terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and if the Company
shall be in default, specifying all such defaults and the nature and status
thereof of which they may have knowledge.

 

SECTION 4.04                                  FURTHER
INSTRUMENTS AND ACTS.  Upon request of
the Trustee, the Company will execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more
effectively the purposes of this Indenture.

 

SECTION 4.05                                  MAINTENANCE
OF OFFICE OR AGENCY.  The Company will
maintain in The Borough of Manhattan, the City of New York, an office or agency
of the Trustee, Registrar and Paying Agent where Notes may be presented or
surrendered for payment, where Notes may be surrendered for registration of
transfer, exchange or purchase and where notices and demands to or upon the
Company in respect of the Notes and this Indenture may be served.  The office of the Trustee, located at                            ,
attention: Corporate Trust Administration, shall initially be such office or
agency for all of the aforesaid purposes. 
The Company shall give prompt written notice to the Trustee of the
location, and of

 

14

 

any change in the location, of any such
office or agency (other than a change in the location of the office of the
Trustee).  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the address of the Trustee set
forth in Section 14.02.

 

The Company
may also from time to time designate one or more other offices or agencies
where the Notes may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no
such designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in the Borough of Manhattan, the
City of New York, for such purposes.

 

ARTICLE 5

 

SUCCESSOR CORPORATION

 

SECTION 5.01                                  WHEN
COMPANY MAY MERGE OR TRANSFER ASSETS. 
The Company shall not consolidate with, merge with or into any other
person, engage in a statutory share exchange or convey, transfer or lease its
properties and assets substantially as an entirety to any person, unless:

 

(a)                                  either
(1) the Company shall be the continuing corporation or (2) the person
(if other than the Company) formed by such consolidation or into which the
Company is merged or the person which acquires by conveyance, transfer or lease
the properties and assets of the Company substantially as an entirety (i) shall
be organized and validly existing under the laws of the United States and (ii) shall
expressly assume, by an indenture supplemental hereto, executed and delivered
to the Trustee, in form and substance reasonably satisfactory to the Trustee,
all of the obligations of the Company under the Notes and this Indenture;

 

(b)                                 at
the time of such transaction, no Event of Default and no event which, after
notice or lapse of time, would become an Event of Default, shall have happened
and be continuing; and

 

(c)                                  the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, statutory
share exchange, conveyance, transfer or lease and, if a supplemental indenture
is required in connection with such transaction, such supplemental indenture,
comply with this Article  5 and that all conditions precedent herein
provided for relating to such transaction have been satisfied.

 

For purposes
of the foregoing, the transfer (by lease, assignment, sale or otherwise) of the
properties and assets of one or more Subsidiaries (other than to the Company or
another Subsidiary), which, if such assets were owned by the Company, would
constitute all or substantially all of the properties and assets of the
Company, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.

 

The successor
person formed by such consolidation or into which the Company is merged or the
successor person to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company

 

15

 

under this Indenture with the
same effect as if such successor had been named as the Company herein; and
thereafter, except in the case of a lease, the Company shall be discharged from
all obligations and covenants under this Indenture and the Notes.  Subject to Section 9.06, the Company,
the Trustee and the successor person shall enter into a supplemental indenture
to evidence the succession and substitution of such successor person and such
discharge and release of the Company.

 

ARTICLE 6

 

DEFAULTS AND REMEDIES

 

SECTION 6.01                                  EVENTS
OF DEFAULT.  An “Event of Default” occurs
if:

 

(1)                                  the
Company fails to pay when due the principal of or premium, if any, on any of
the Notes at maturity, or otherwise;

 

(2)                                  the
Company fails to pay an installment of interest (including additional interest,
if any) on any of the Notes that continues for 30 days after the date when due;

 

(3)                                  the
Company fails to perform or observe any other term, covenant or agreement
contained in the Notes or this Indenture for a period of 60 days after receipt
by the Company of a Notice of Default (as defined in this Section 6.01);

 

(4)                                  the
Company, or any Significant Subsidiary, or any Subsidiaries of the Company
which in the aggregate would constitute a Significant Subsidiary pursuant to or
under or within the meaning of any Bankruptcy Law:

 

(A)                              commences
a voluntary case or proceeding;

 

(B)                                consents
to the entry of an order for relief against it in an involuntary case or
proceeding or the commencement of any case against it;

 

(C)                                consents
to the appointment of a Custodian of it or for any substantial part of its
property;

 

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

 

(E)                                 files
a petition in bankruptcy or answer or consent seeking reorganization or relief;
or

 

(F)                                 consents
to the filing of such a petition or the appointment of or taking possession by
a Custodian; or

 

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

 

16

 

(A)                              is
for relief against the Company or any Significant Subsidiary or any
Subsidiaries of the Company which in the aggregate would constitute a
Significant Subsidiary in an involuntary case or proceeding, or adjudicates the
Company or any Significant Subsidiary or any Subsidiaries of the Company which
in the aggregate would constitute a Significant Subsidiary insolvent or
bankrupt;

 

(B)                                appoints
a Custodian of the Company or any Significant Subsidiary or any Subsidiaries of
the Company which in the aggregate would constitute a Significant Subsidiary or
for any substantial part of its or their properties; or

 

(C)                                orders
the winding up or liquidation of the Company or any Significant Subsidiary or
any Subsidiaries of the Company which in the aggregate would constitute a
Significant Subsidiary;

 

and the order
or decree remains unstayed and in effect for 60 days.

 

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

 

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

 

A Default
under clause (3) above is not an Event of Default until the Trustee
notifies the Company, or the Holders of at least 25% in aggregate principal
amount of the Notes at the time outstanding notify the Company and the Trustee,
of the Default and the Company does not cure such Default (and such Default is
not waived) within the time specified in clause (3) above after
actual receipt of such notice.  Any such
notice must specify the Default, demand that it be remedied and state that such
notice is a “Notice of Default”.

 

The Company
will deliver to the Trustee, within five Business Days of becoming aware of the
occurrence of an event specified in (1) through (5) above, written
notice thereof.  In addition, the Company
shall deliver to the Trustee, within 30 days after it becomes aware of the
occurrence thereof, written notice of any event which with the lapse of time
would become an Event of Default under clause (3) above, its status and
what action the Company is taking or proposes to take with respect thereto.

 

SECTION 6.02                                  ACCELERATION.  If an Event of Default (other than an Event
of Default specified in Section 6.01(4) or (5)) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least
25% in aggregate principal amount of the Notes at the time outstanding by
notice to the Company and the Trustee, may declare the Notes due and payable at
their principal amount together with accrued interest.  Upon a declaration of

 

17

 

acceleration, such principal and accrued and
unpaid interest to the date of payment shall be immediately due and payable.

 

If an Event of
Default specified in Section 6.01(4) or (5) above occurs and is
continuing, then the principal and the interest on all the Notes shall become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Noteholders.

 

The Holders of
a majority in aggregate principal amount of the Notes at the time outstanding,
by notice to the Trustee (and without notice to any other Noteholder) may
rescind or annul an acceleration and its consequences if the rescission would
not conflict with any judgment or decree and if all existing Events of Default
have been cured or waived except nonpayment of the principal and any accrued
cash interest that have become due solely as a result of acceleration and if
all amounts due to the Trustee under Section 7.06 have been paid.  No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

 

SECTION 6.03                                  OTHER
REMEDIES.  If an Event of Default occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of the principal, the premium, if any, and any accrued cash interest on
the Notes or to enforce the performance of any provision of the Notes or this
Indenture.

 

The Trustee
may maintain a proceeding even if the Trustee does not possess any of the Notes
or produce any of the Notes in the proceeding. 
A delay or omission by the Trustee or any Noteholder 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.

 

SECTION 6.04                                  WAIVER
OF PAST DEFAULTS.  The Holders of a
majority in aggregate principal amount of the Notes at the time outstanding, by
notice to the Trustee (and without notice to any other Holder), may waive an
existing Default and its consequences except (1) an Event of Default
described in Section 6.01(1) or (2) or (2) a Default in
respect of a provision that under Section 9.02 cannot be amended without
the consent of each Holder affected. 
When a Default is waived, it is deemed cured, but no such waiver shall
extend to any subsequent or other Default or impair any consequent right.  This Section 6.04 shall be in lieu of Section 316(a)1(B) of
the TIA and such Section 316(a)1(B) is hereby expressly excluded from
this Indenture, as permitted by the TIA.

 

SECTION 6.05                                  CONTROL
BY MAJORITY.  The Holders of a majority
in aggregate principal amount of the Notes at the time outstanding may direct
the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the
Trustee. However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture or that the Trustee determines in good faith is
unduly prejudicial to the rights of other Holders or would involve the Trustee
in personal liability unless the Trustee is offered indemnity reasonably
satisfactory to it against loss, liability or expense.  This Section 6.05 shall be in lieu of Section 316(a)1(A) of
the TIA and such Section 316(a)1(A) is hereby expressly excluded from
this Indenture, as permitted by the TIA.

 

18

 

SECTION 6.06                                  LIMITATION
ON SUITS.  A Holder may not pursue any
remedy with respect to this Indenture or the Notes unless:

 

(1)                                  the
Holder gives to the Trustee written notice stating that an Event of Default is
continuing;

 

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

 

(3)                                  such
Holder or Holders offer to the Trustee reasonable security or indemnity
satisfactory to the Trustee against any loss, liability or expense;

 

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

 

(5)                                  the
Holders of a majority in aggregate principal amount of the Notes at the time
outstanding do not give the Trustee a direction inconsistent with the request
during such 60-day period.

 

A Noteholder
may not use this Indenture to prejudice the rights of any other Holder or to
obtain a preference or priority over any other Holder.

 

SECTION 6.07                                  RIGHTS
OF HOLDERS TO RECEIVE PAYMENT.  Notwithstanding any other provision of this
Indenture, the right of any Holder to receive payment of the principal amount,
premium, if any, plus any accrued cash interest in respect of the Notes held by
such Holder, on or after the respective due dates expressed in the Notes or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected adversely without the consent of such
Holder.

 

SECTION 6.08                                  COLLECTION
SUIT BY TRUSTEE.  If an Event of Default
described in Section 6.01(1) or (2) occurs and is continuing,
the Trustee may recover judgment in its own name and as trustee of an express
trust against the Company for the whole amount owing with respect to the Notes
and the amounts provided for in Section 7.06.

 

SECTION 6.09                                  TRUSTEE
MAY FILE PROOFS OF CLAIM.  In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding
relative to the Company or any other obligor upon the Notes or the property of
the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the principal amount or any accrued cash interest in
respect of the Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of any such amount) shall be
entitled and empowered, by intervention in such proceeding or otherwise,

 

(a)                                  to
file and prove a claim for the whole amount of the principal amount or any
accrued cash interest and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable

 

19

 

compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel or any other amounts due the Trustee under Section 7.06)
and of the Holders allowed in such judicial proceeding, and

 

(b)                                 to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same;

 

and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official
in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent
to the making of such payments directly to the Holders, to pay the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.06.

 

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

 

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

 

(1)                                  to
the Trustee for amounts due under Section 7.06;

 

(2)                                  to
Holders for amounts due and unpaid on the Notes for the principal amount or any
accrued cash interest, as the case may be, ratably, without preference or
priority of any kind, according to such amounts due and payable on the Notes;
and

 

(3)                                  the
balance, if any, to the Company.

 

The Trustee
may fix a record date and payment date for any payment to Holders pursuant to
this Section 6.10.  At least 15 days
before such record date, the Trustee shall mail to each Holder and the Company
a notice that states the record date, the payment date and the amount to be
paid.

 

SECTION 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 (other than the
Trustee) 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 and expenses, 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 6.07
or a suit by Holders of more than 10% in aggregate principal amount of the
Notes at the time outstanding.  This Section 6.11
shall be in lieu of Section 315(e) of the TIA and such Section 315(e) is
hereby expressly excluded from this Indenture, as permitted by the TIA.

 

20

 

SECTION 6.12                                  WAIVER
OF STAY, EXTENSION OR USURY LAWS.  The
Company covenants (to the extent that it may lawfully do so) that it will not
at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay or extension law or any usury or other
law wherever enacted, now or at any time hereafter in force, which would
prohibit or forgive the Company from paying all or any portion of the principal
amount or any accrued cash interest in respect of Notes, or any interest on
such amounts, as contemplated herein, or which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) 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.

 

ARTICLE 7

 

TRUSTEE

 

SECTION 7.01                                  DUTIES
AND RESPONSIBILITIES OF THE TRUSTEE; DURING DEFAULT; PRIOR TO DEFAULT.  The Trustee, prior to the occurrence of an
Event of Default hereunder and after the curing or waiving of all such Events
of Default which may have occurred, undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture.  In case an Event of Default hereunder has
occurred (which has not been cured or waived), 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 their exercise, as a prudent man would exercise or
use under the circumstances in the conduct of his own affairs.

 

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

 

(a)                                  prior
to the occurrence of an Event of Default hereunder and after the curing or
waiving of all such Events of Default which may have occurred:

 

(i)                                     the
duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for
the performance of such duties and obligations as are specifically set forth in
this Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

 

(ii)                                  in
the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any statements, certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture;
but in the case of any such statements, 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;

 

21

 

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

 

(c)                                  the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders
pursuant to Section 6.05 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture.

 

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

 

The provisions
of this Section 7.01 are in furtherance of and subject to Sections 315 and
316 of the TIA.

 

SECTION 7.02                                  CERTAIN
RIGHTS OF THE TRUSTEE.  In furtherance of
and subject to the TIA and subject to Section 7.01:

 

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

 

(b)                                 any
request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in
respect thereof be herein specifically prescribed); and any resolution of the
Board of Directors may be evidenced to the Trustee by a copy thereof certified
by the secretary or an assistant secretary of the Company;

 

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

 

(d)                                 the
Trustee shall be under no obligation to exercise any of the trusts or powers
vested in it by this Indenture with the request, order or direction of any of
the Noteholders pursuant to the provisions of this Indenture, unless such Noteholders
shall have offered to the Trustee reasonable security or indemnity satisfactory
to the Trustee against the costs, expenses and liabilities which might be
incurred therein or thereby;

 

(e)                                  the
Trustee shall not be liable for any action taken or omitted by it in good faith
and believed by it to be authorized or within the discretion, rights or powers
conferred upon it by this Indenture;

 

22

 

(f)                                    prior
to the occurrence of an Event of Default hereunder and after the curing or
waiving of all such Events of Default, the Trustee shall not be bound to make
any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, appraisal, bond, debenture, note, coupon, security, or other
paper or document unless requested in writing to do so by the Holders of not
less than a majority in aggregate principal amount of the Notes then
outstanding; provided that, if the payment within a reasonable time to the
Trustee of the costs, expenses or liabilities likely to be incurred by it in
the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by the terms
of this Indenture, the Trustee may require reasonable indemnity against such
expenses or liabilities as a condition to proceeding; the reasonable expenses
of every such investigation shall be paid by the Company or, if paid by the
Trustee or any predecessor trustee, shall be repaid by the Company upon demand;
and

 

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

 

SECTION 7.03                                  TRUSTEE
NOT RESPONSIBLE FOR RECITALS, DISPOSITION OF NOTES OR APPLICATION OF PROCEEDS
THEREOF.  The recitals contained herein
and in the Notes, except the Trustee’s certificates of authentication, shall be
taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same. 
The Trustee makes no representation as to the validity or sufficiency of
this Indenture or of the Notes.  The
Trustee shall not be accountable for the use or application by the Company of
any of the Notes or of the proceeds thereof.

 

SECTION 7.04                                  TRUSTEE
AND AGENTS MAY HOLD NOTES; COLLECTIONS, ETC.  The Trustee or any agent of the Company or
the Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes with the same rights it would have if it were not the Trustee
or such agent and, subject to Sections 7.08 and 7.13, if operative, may
otherwise deal with the Company and receive, collect, hold and retain
collections from the Company with the same rights it would have if it were not
the Trustee or such agent.

 

SECTION 7.05                                  MONEYS
HELD BY TRUSTEE.  Subject to the
provisions of Section 8.02 hereof, all moneys received by the Trustee
shall, until used or applied as herein provided, be held in trust for the
purposes for which they were received, but need not be segregated from other
funds except to the extent required by mandatory provisions of law.  Neither the Trustee nor any agent of the
Company or the Trustee shall be under any liability for interest on any moneys
received by it hereunder.

 

SECTION 7.06                                  COMPENSATION
AND INDEMNIFICATION OF TRUSTEE AND ITS PRIOR CLAIM.  The Company covenants and agrees to pay to
the Trustee from time to time, and the Trustee shall be entitled to, such
compensation (which shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust) to be agreed to in writing
by the Trustee and the Company, and the Company covenants and agrees to pay or
reimburse the Trustee and each predecessor Trustee upon its request for all
reasonable

 

23

 

expenses, disbursements and advances incurred
or made by or on behalf of it in accordance with any of the provisions of this
Indenture (including (i) the reasonable compensation and the expenses and
disbursements of its counsel and of all agents and other persons not regularly
in its employ and (ii) interest at the prime rate on any disbursements and
advances made by the Trustee and not paid by the Company within 5 days after
receipt of an invoice for such disbursement or advance) except any such
expense, disbursement or advance as may arise from its negligence or bad
faith.  The Company also covenants to
indemnify the Trustee and each predecessor Trustee for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or bad
faith on its part, arising out of or in connection with the acceptance or
administration of this Indenture or the trusts hereunder and its duties
hereunder, including the costs and expenses of defending itself against or
investigating any claim of liability in the premises.  The obligations of the Company under this Section 7.06
to compensate and indemnify the Trustee and each predecessor Trustee and to pay
or reimburse the Trustee and each predecessor Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder
and shall survive the satisfaction and discharge of this Indenture.  Such additional indebtedness shall be a
senior claim to that of the Notes upon all property and funds held or collected
by the Trustee as such, except funds held in trust for the benefit of the
Holders of particular Notes, and the Notes are hereby effectively subordinated
to such senior claim to such extent.  The
provisions of this Section 7.06 shall survive the termination of this
Indenture.  When the Trustee incurs
expenses or renders services in connection with an Event of Default specified
in Section 6.01 (4) and (5), the expenses (including the reasonable
fees and expenses of its counsel) and the compensation for services in
connection therewith are to constitute expenses of administration under any
bankruptcy law.

 

SECTION 7.07                                  RIGHT
OF TRUSTEE TO RELY ON OFFICERS’ CERTIFICATE, ETC.  Subject to Sections 7.01 and 7.02, whenever
in the administration of the trusts of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking
or suffering or omitting any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the
absence of negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers’ Certificate delivered to
the Trustee.

 

SECTION 7.08                                  CONFLICTING
INTERESTS.  If the Trustee has or shall
acquire a conflicting interest within the meaning of the TIA, the Trustee shall
either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to the provisions of, the TIA.

 

SECTION 7.09                                  PERSONS
ELIGIBLE FOR APPOINTMENT AS TRUSTEE.  The
Trustee shall at all times be a corporation or banking association and the
Trustee and its parent corporation shall at all times have a combined capital
and surplus of at least $10,000,000.  If
such corporation or banking association publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising
or examining authority, then, for the purposes of this Section 7.09, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.  In case at any
time the Trustee shall cease to be eligible in accordance with the provisions
of this Section 7.09, the Trustee shall resign immediately in the manner
and with the effect specified in Section 7.10.

 

24

 

SECTION 7.10                                  RESIGNATION
AND REMOVAL; APPOINTMENT OF SUCCESSOR TRUSTEE. 
(a)  The Trustee, or any trustee or trustees hereafter appointed,
may at any time resign with respect to one or more or all series of Notes by
giving written notice of resignation to the Company and by mailing notice
thereof by first class mail to the Holders of Notes at their last addresses as
they shall appear on the Note register. 
Upon receiving such notice of resignation, the Company shall promptly
appoint a successor trustee or trustees by written instrument in duplicate,
executed by authority of the Board of Directors, one copy of which instrument
shall be delivered to the resigning Trustee and one copy to the successor
trustee or trustees.  If no successor
trustee shall have been so appointed and have accepted appointment within 30
days after the mailing of such notice of resignation, the resigning trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee, or any Noteholder who has been a bona fide Holder of a Note for at
least six months may, subject to the provisions of Section 7.11, on behalf
of himself and all others similarly situated, petition any such court for the
appointment of a successor trustee.  Such
court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee.

 

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

 

(i)                                     the
Trustee shall fail to comply with the provisions of Section 7.08 with respect
to any Notes after written request therefor by the Company or by any Noteholder
who has been a bona fide Holder of a Note for at least six months; or

 

(ii)                                  the
Trustee shall cease to be eligible in accordance with the provisions of Section 7.09
and shall fail to resign after written request therefor by the Company or by
any Noteholder; or

 

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

 

then, in any
such case, the Company may remove the Trustee and appoint a successor trustee
by written instrument, in duplicate, executed by order of the Board of
Directors of the Company, one copy of which instrument shall be delivered to
the Trustee so removed and one copy to the successor trustee, or, subject to
the provisions of Section 7.11, any Noteholder who has been a bona fide
Holder of a Note for at least six months may on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee.  Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor trustee.  If no successor
trustee shall have been appointed and have accepted appointment within 30 days
after a notice of removal has been given, the removed trustee may petition a
court of competent jurisdiction for the appointment of a successor trustee.

 

(c)                                  The
Holders of a majority in aggregate principal amount of the Notes at the time
outstanding may at any time remove the Trustee and appoint a successor trustee
by delivering to the Trustee so removed, to the successor trustee so appointed
and to the Company the evidence provided for in Section 1.05 of the action
in that regard taken by the Noteholders.

 

25

 

(d)                                 Any
resignation or removal of the Trustee and any appointment of a successor
trustee pursuant to any of the provisions of this Section 7.10 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 7.11.

 

SECTION 7.11                                  ACCEPTANCE
OF APPOINTMENT BY SUCCESSOR TRUSTEE.  Any
successor trustee appointed as provided in Section 7.10 shall execute and
deliver to the Company and to its predecessor trustee an instrument accepting
such appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become vested with all rights,
powers, duties and obligations of its predecessor hereunder, with like effect
as if originally named as trustee hereunder; but, nevertheless, on the written
request of the Company or of the successor trustee, upon payment of its charges
then unpaid, the trustee ceasing to act shall pay over to the successor trustee
all moneys at the time held by it hereunder and shall execute and deliver an
instrument transferring to such successor trustee all such rights, powers,
duties and obligations.  Upon request of
any such successor trustee, the Company shall execute any and all instruments
in writing for more fully and certainly vesting in and confirming to such
successor trustee all such rights and powers. 
Any trustee ceasing to act shall, nevertheless, retain a prior claim
upon all property or funds held or collected by such trustee to secure any
amounts then due it pursuant to the provisions of Section 7.06.

 

No successor
trustee shall accept appointment as provided in this Section 7.11 unless
at the time of such acceptance such successor trustee shall be qualified under
the provisions of Section 7.08 and eligible under the provisions of Section 7.09.

 

Upon
acceptance of appointment by any successor trustee as provided in this Section 7.11,
the Company shall mail notice thereof by first class mail to the Holders of
Notes at their last addresses as they shall appear in the register.  If the acceptance of appointment is
substantially contemporaneous with the resignation, then the notice called for
by the preceding sentence may be combined with the notice called for by Section 7.10.
If the Company fails to mail such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be mailed at the expense of the Company.

 

SECTION 7.12                                  MERGER,
CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS OF TRUSTEE.  Any corporation or banking association into
which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation or banking association resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation or banking association succeeding to all or substantially all
of the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, provided that such corporation or banking association shall
be qualified under the provisions of Section 7.08 and eligible under the
provisions of Section 7.09, without the execution or filing of any paper
or any further act on the part of any of the parties hereto, anything herein to
the contrary notwithstanding.  In case at
the time such successor to the Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor Trustee and deliver such Notes so
authenticated; and, in case at that time any of the Notes shall not have been
authenticated, any successor to the Trustee may authenticate such Notes either
in the name of any predecessor hereunder or in the name of the

 

26

 

successor Trustee; and in all such cases such
certificate shall have the full force and effect that this Indenture provides
for the certificate of authentication of the Trustee; provided, that the right
to adopt the certificate of authentication of any predecessor Trustee or to
authenticate Notes in the name of any predecessor Trustee shall apply only to
its successor or successors by merger, conversion or consolidation.

 

SECTION 7.13                                  PREFERENTIAL
COLLECTION OF CLAIMS AGAINST THE COMPANY. 
The Trustee shall comply with the provisions of Section 311 of the
TIA.

 

SECTION 7.14                                  REPORTS
BY THE TRUSTEE.  (a)  The Trustee
shall transmit to Holders and other persons such reports concerning the Trustee
and its actions under this Indenture as may be required pursuant to the TIA on
or before July 15 in each year that such report is required, such reports
to be dated as of the immediately preceding May 15.

 

(b)                                 A
copy of each such report shall, at the time of such transmission to Holders, be
furnished to the Company and be filed by the Trustee with each stock exchange
upon which the Notes are listed and also with the SEC. The Company agrees to
notify the Trustee when and as the Notes become admitted to trading on any
national securities exchange.

 

SECTION 7.15                                  TRUSTEE
TO GIVE NOTICE OF DEFAULT, BUT MAY WITHHOLD IN CERTAIN CIRCUMSTANCES.  The Trustee shall transmit to the Holders, as
the names and addresses of such Holders appear on the Note register, notice by
mail of all Defaults which have occurred, such notice to be transmitted within
90 days after the occurrence thereof, unless such defaults shall have been
cured before the giving of such notice; provided that, except in the case of
Default in the payment of the principal of, interest on, or other similar
obligation with respect to, any of the Notes, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors or trustees and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the best interests of the Holders.

 

ARTICLE 8

 

DISCHARGE OF INDENTURE

 

SECTION 8.01                                  DISCHARGE
OF LIABILITY ON NOTES.  When all
outstanding Notes will become due and payable within one year of their Stated
Maturity and the Company has deposited with the Trustee cash sufficient to pay
and discharge all outstanding Notes on the date of their Stated Maturity, then
the Company may discharge its obligations under this Indenture while Notes
remain outstanding.  The Trustee shall
join in the execution of a document prepared by the Company acknowledging
satisfaction and discharge of this Indenture on demand of the Company
accompanied by an Officers’ Certificate and Opinion of Counsel and at the cost
and expense of the Company.

 

SECTION 8.02                                  REPAYMENT
OF THE COMPANY.  The Trustee and the
Paying Agent shall return to the Company upon written request any money or
securities held by them for the payment of any amount with respect to the Notes
that remains unclaimed for two years, subject to applicable unclaimed property
law.  After return to the Company,
Holders

 

27

 

entitled to the money or securities must look
to the Company for payment as general creditors unless an applicable abandoned
property law designates another person and the Trustee and the Paying Agent
shall have no further liability to the Noteholders with respect to such money
or securities for that period commencing after the return thereof.

 

ARTICLE 9

 

AMENDMENTS

 

SECTION 9.01                                  WITHOUT
CONSENT OF HOLDERS.  The Company and the
Trustee may amend this Indenture or the Notes without the consent of any Holder
for the purposes of, among other things:

 

(1)                                  adding
to the Company’s covenants for the benefit of the Holders;

 

(2)                                  surrendering
any right or power conferred upon the Company;

 

(3)                                  providing
for conversion rights of Holders if any reclassification or change of Common
Stock or any consolidation, merger, statutory share exchange or other business
combination or sale of all or substantially all of the Company’s assets occurs;

 

(4)                                  complying
with the requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

 

(5)                                  curing
any ambiguity, omission, inconsistency or correcting or supplementing any
defective provision contained in this Indenture; provided that such
modification or amendment does not, in the good faith opinion of the Board of
Directors and the Trustee, adversely affect the interests of the Holders in any
material respect; or

 

(6)                                  adding
or modifying any other provisions which the Company and the Trustee may deem
necessary or desirable and which will not adversely affect the interests of the
Holders in any material respect;

 

(7)                                  complying
with Article 5; or

 

(8)                                  providing
for uncertificated Notes in addition to the Certificated Notes so long as such
uncertificated Notes are in registered form for purposes of the Internal
Revenue Code of 1986, as amended.

 

SECTION 9.02                                  WITH
CONSENT OF HOLDERS.  With the written
consent of the Holders of at least a majority in aggregate principal amount of
the Notes at the time outstanding or by the adoption of a resolution at a
meeting of Holders at which a quorum is present by at least a majority in
aggregate principal amount of the Notes represented at the meeting, the Company
may modify and amend this Indenture or the Notes and waive noncompliance by the
Company.  However, without the consent of
each Holder affected, a modification, amendment or waiver to this Indenture or
the Notes may not:

 

28

 

(1)                                  change
the maturity of the principal of or any installment of interest on any Note
(including any payment of additional interest);

 

(2)                                  reduce
the principal amount of, or premium, if any, or interest on (including any
payment of additional interest), any Note;

 

(3)                                  reduce
the Interest Rate or interest (including additional interest) on any Note;

 

(4)                                  change
the currency of payment of principal of, premium, if any, or interest of any
Note;

 

(5)                                  impair
the right to institute suit for the enforcement of any payment on or with
respect to any Note;

 

(6)                                  modify
the subordination provisions of the Notes in a manner adverse to the Holders;
or

 

(7)                                  reduce
the percentage in aggregate principal amount of Notes outstanding necessary to
modify or amend this Indenture or to waive any past default.

 

It shall not
be necessary for the consent of the Holders under this Section 9.02 to
approve the particular form of any proposed amendment, but it shall be
sufficient if such consent approves the substance thereof.

 

After an
amendment under this Section 9.02 becomes effective, the Company shall
mail to each Holder a notice briefly describing the amendment.

 

SECTION 9.03                                  COMPLIANCE
WITH TRUST INDENTURE ACT.  Every
supplemental indenture executed pursuant to this Article shall comply with
the TIA.

 

SECTION 9.04                                  REVOCATION
AND EFFECT OF CONSENTS, WAIVERS AND ACTIONS. 
Until an amendment, waiver or other action by Holders becomes effective,
a consent thereto by a Holder of a Note hereunder is a continuing consent by
the Holder and every subsequent Holder of that Note or portion of the Note that
evidences the same obligation as the consenting Holder’s Note, even if notation
of the consent, waiver or action is not made on the Note.  However, any such Holder or subsequent Holder
may revoke the consent, waiver or action as to such Holder’s Note or portion of
the Note if the Trustee receives written notice of revocation before the date
the amendment, waiver or action becomes effective.  After an amendment, waiver or action becomes
effective, it shall bind every Noteholder.

 

SECTION 9.05                                  NOTATION
ON OR EXCHANGE OF NOTES.  Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture.  If the Company
shall so determine, new Notes so modified as to conform, in the opinion of the
Board of Directors, to any

 

29

 

such supplemental indenture may be prepared
and executed by the Company and authenticated and delivered by the Trustee in
exchange for outstanding Notes.

 

SECTION 9.06                                  TRUSTEE
TO SIGN SUPPLEMENTAL INDENTURES.  The
Trustee shall sign any supplemental indenture authorized pursuant to this Article 9
if the amendment contained therein does not adversely affect the rights,
duties, liabilities or immunities of the Trustee.  If it does, the Trustee may, but need not,
sign such supplemental indenture.  In
signing such supplemental indenture the Trustee shall be entitled to receive,
and (subject to the provisions of Section 7.01) shall be fully protected
in relying upon, an Officers’ Certificate and an Opinion of Counsel stating
that such amendment is authorized or permitted by this Indenture.

 

SECTION 9.07                                  EFFECT
OF SUPPLEMENTAL INDENTURES.  Upon the
execution of any supplemental indenture under this Article, this Indenture
shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of Notes
theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.

 

SECTION 9.08                                  REFERENCE
IN NOTES TO SUPPLEMENTAL INDENTURES.  Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture.  If the Company
shall so determine, new Notes so modified as to conform, in the opinion of the
Company and the Trustee, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in
exchange for outstanding Notes.

 

ARTICLE 10

 

[RESERVED]

 

ARTICLE 11

 

RESERVED

 

ARTICLE 12

 

[RESERVED]

 

ARTICLE 13

 

MEETINGS OF HOLDERS OF NOTES

 

SECTION 13.01                            PURPOSES
FOR WHICH MEETINGS MAY BE CALLED.  A
meeting of Holders of Notes may be called at any time and from time to time
pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by Holders of Notes.

 

30

 

SECTION 13.02                            CALL,
NOTICE AND PLACE OF MEETINGS.  (a) 
The Trustee may at any time call a meeting of Holders of Notes for any purpose
specified in Section 13.01, to be held at such time and at such place in
the Borough of Manhattan, The City of New York as the Trustee shall determine.
Notice of every meeting of Holders of Notes, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at
such meeting, shall be given, in the manner provided in Section 14.02, not
less than 20 nor more than 90 days prior to the date fixed for the meeting.

 

(b)                                 In
case at any time the Company, pursuant to a Board Resolution, or the Holders of
at least 10% in aggregate principal amount at Stated Maturity of the
outstanding Notes shall have requested the Trustee to call a meeting of the
Holders of Notes for any purpose specified in Section 13.01, by written
request setting forth in reasonable detail the action proposed to be taken at
the meeting, and the Trustee shall not have made the first publication of the
notice of such meeting within 20 days after receipt of such request or shall
not thereafter proceed to cause the meeting to be held as provided herein, then
the Company or the Holders of Notes in the amount specified, as the case may be,
may determine the time and the place in the Borough of Manhattan, The City of
New York for such meeting and may call such meeting for such purposes by giving
notice thereof as provided in paragraph (a) of this Section.

 

SECTION 13.03                            PERSONS
ENTITLED TO VOTE AT MEETINGS.  To be
entitled to vote at any meeting of Holders of Notes, a Person shall be (a) a
Holder of one or more outstanding Notes on the applicable record date or (b) a
Person appointed by an instrument in writing as proxy for a Holder or Holders
of one or more outstanding Notes by such Holder or Holders.  The only Persons who shall be entitled to be
present or to speak at any meeting of Holders shall be the Persons entitled to
vote at such meeting and their counsel, any representatives of the Trustee and
its counsel and any representatives of the Company and its counsel.

 

SECTION 13.04                            QUORUM;
ACTION.  The Persons entitled to vote a
majority in aggregate principal amount at Stated Maturity of the outstanding
Notes shall constitute a quorum.  In the
absence of a quorum within 30 minutes of the time appointed for any such
meeting, the meeting shall, if convened at the request of Holders of Notes, be
dissolved.  In any other case, the
meeting may be adjourned for a period of not less than 10 days as determined by
the chairman of the meeting prior to the adjournment of such meeting.  In the absence of a quorum at any such
reconvened meeting, such reconvened meeting may be further adjourned for a
period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such reconvened meeting (subject to repeated
applications of this sentence).  Notice
of the reconvening of any adjourned meeting shall be given as provided in Section 13.02(a),
except that such notice need be given only once not less than five days prior
to the date on which the meeting is scheduled to be reconvened.  Notice of the reconvening of an adjourned
meeting shall state expressly the percentage of the principal amount at Stated
Maturity of the outstanding Notes which shall constitute a quorum.

 

Subject to the
foregoing, at the reconvening of any meeting adjourned for a lack of a quorum,
the Persons entitled to vote 25% in aggregate principal amount at Stated
Maturity of the outstanding Notes at the time shall constitute a quorum for the
taking of any action set forth in the notice of the original meeting.

 

31

 

At a meeting
or an adjourned meeting duly reconvened and at which a quorum is present as
aforesaid, any resolution and all matters shall be effectively passed and
decided if passed or decided by not less than a majority in aggregate principal
amount at Stated Maturity of the outstanding Notes represented and entitled to
vote at such meeting.

 

Any resolution
passed or decisions taken at any meeting of Holders of Notes duly held in
accordance with this Section shall be binding on all the Holders of Notes,
whether or not present or represented at the meeting. The Trustee shall, in the
name and at the expense of the Company, notify all the Holders of Notes of any
such resolutions or decisions pursuant to Section 14.02.

 

SECTION 13.05                            DETERMINATION
OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF MEETINGS.  (a)  Notwithstanding any other
provisions of this Indenture, the Trustee may make such reasonable regulations
as it may deem advisable for any meeting of Holders of Notes in regard to proof
of the holding of Notes and of the appointment of proxies and in regard to the
appointment and duties of inspectors of votes, the submission and examination
of proxies, certificates and other evidence of the right to vote, and such
other matters concerning the conduct of the meeting as it shall deem
appropriate.  Except as otherwise permitted
or required by any such regulations, the holding of Notes shall be proved in
the manner specified in Section 1.05 and the appointment of any proxy
shall be proved in the manner specified in Section 1.05.

 

(b)                                 The
Trustee shall, by an instrument in writing, appoint a temporary chairman (which
may be the Trustee) of the meeting, unless the meeting shall have been called
by the Company or by Holders of Notes as provided in Section 13.02(b), in
which case the Company or the Holder of Notes calling the meeting, as the case
may be, shall in like manner appoint a temporary chairman. A permanent chairman
and a permanent secretary of the meeting shall be elected by vote of the
Persons entitled to vote a majority in aggregate principal amount at Stated
Maturity of the outstanding Notes represented at the meeting.

 

(c)                                  At
any meeting, each Holder of a Note or proxy shall be entitled to one vote for
each $1,000 principal amount at Stated Maturity of Notes held or represented by
him; PROVIDED, HOWEVER, that no vote shall be cast or counted at any meeting in
respect of any Note challenged as not outstanding and ruled by the chairman of
the meeting to be not outstanding.  The
chairman of the meeting shall have no right to vote, except as a Holder of a
Note or proxy.

 

(d)                                 Any
meeting of Holders of Notes duly called pursuant to Section 13.02 at which
a quorum is present may be adjourned from time to time by Persons entitled to
vote a majority in aggregate principal amount at Stated Maturity of the
outstanding Notes represented at the meeting, and the meeting may be held as so
adjourned without further notice.

 

SECTION 13.06                            COUNTING
VOTES AND RECORDING ACTION OF MEETINGS.  The
vote upon any resolution submitted to any meeting of Holders of Notes shall be
by written ballots on which shall be subscribed the signatures of the Holders
of Notes or of their representatives by proxy and the principal amounts and
serial numbers of the outstanding Notes held or represented by them.  The permanent chairman of the meeting shall
appoint two

 

32

 

inspectors of votes who shall count all votes
cast at the meeting for or against any resolution and who shall make and file
with the secretary of the meeting their verified written reports in duplicate
of all votes cast at the meeting.  A
record, at least in duplicate, of the proceedings of each meeting of Holders of
Notes shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more Persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 14.02 and, if
applicable, Section 14.04. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting.  Any record so signed and
verified shall be conclusive evidence of the matters therein stated.

 

ARTICLE 14

 

MISCELLANEOUS

 

SECTION 14.01                            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.

 

SECTION 14.02                            NOTICES.  Any request, demand, authorization, notice,
waiver, consent, election, communication or other act of Noteholders shall be
in writing and delivered in person or mailed by first-class mail, postage
prepaid, addressed as follows or transmitted by facsimile transmission
(confirmed by guaranteed overnight courier) to the following addresses:

 

if to the
Company:

 

Veeco Instruments Inc.

100 Sunnyside Boulevard, Suite B

Woodbury, NY 11797

Attention:  General Counsel

Telephone No.: (516) 677-0200

Facsimile No.: (516) 677-0380

 

with a copy
to:

 

Kaye Scholer LLP

425 Park Avenue

New York, New York 10022

Attention: Rory A. Greiss

Telephone No.: (212) 836-8261

Facsimile No.: (212) 836-8689

 

33

 

if to the
Trustee:

 

 

 

 

Attention: 

Telephone No.:

Facsimile No.: 

 

The Company or
the Trustee by notice given to the other in the manner provided above may
designate additional or different addresses for subsequent notices or
communications.

 

Any notice or
communication given to a Noteholder shall be in writing and mailed to the
Noteholder, by first-class mail, postage prepaid, at the Noteholder’s address
as it appears on the registration books of the Registrar and shall be
sufficiently given if so mailed within the time prescribed.  Such notice shall be conclusively deemed to
have been given and received by Noteholders when such notice is mailed, whether
or not such Noteholder receives such notice.

 

Failure to
mail a notice or communication to a Noteholder or any defect in it shall not
affect its sufficiency with respect to other Noteholders.  If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not received by the
addressee.  In case by reason of the
suspension of or irregularities in regular mail service or by reason of any
other cause it shall be impracticable to give such notice by mail, then such
notification of Noteholders as shall be made with the approval of the Trustee,
which approval shall not be unreasonably withheld, shall constitute a
sufficient notification to such Noteholders for every purpose hereunder.

 

If the Company
mails a notice or communication to the Noteholders, it shall mail a copy to the
Trustee and each Registrar, Paying Agent or co-registrar.

 

SECTION 14.03                            COMMUNICATION
BY HOLDERS WITH OTHER HOLDERS.  Noteholders
may communicate pursuant to TIA Section 312(b) with other Noteholders
with respect to their rights under this Indenture or the Notes.  The Company, the Trustee, the Registrar, the
Paying Agent and anyone else shall have the protection of TIA Section 312(c).

 

SECTION 14.04                            CERTIFICATE
AND OPINION AS TO CONDITIONS PRECEDENT.  Upon
any request or application by the Company to the Trustee or any Paying Agent to
take any action under this Indenture, the Company shall furnish to the Trustee
or the Paying Agent:

 

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

 

(2)                                  an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent, if any, have been complied with;

 

34

 

except that in
the case of any such application or request as to which the furnishing of such
documents is specifically required by any provision of this Indenture relating
to such application or request, no additional certificate or opinion need be
furnished.

 

SECTION 14.05                            STATEMENTS
REQUIRED IN CERTIFICATE OR OPINION.  Each
Officers’ Certificate or Opinion of Counsel with respect to compliance with a
covenant or condition provided for in this Indenture (excluding certificates
provided by officers as to defaults) shall include:

 

(1)                                  a
statement that each person making such Officers’ Certificate or Opinion of
Counsel 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 Officers’ Certificate
or Opinion of Counsel are based;

 

(3)                                  a
statement that, in the opinion of each such person, that he or she has made
such examination or investigation as is necessary to enable such person 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, in the opinion of such person, such covenant or
condition has been complied with.

 

SECTION 14.06                            SEPARABILITY
CLAUSE.  In case any provision in this
Indenture or in the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

SECTION 14.07                            RULES
BY TRUSTEE, PAYING AGENT AND REGISTRAR.  The
Trustee may make reasonable rules for action by or a meeting of
Noteholders.  The Registrar and the
Paying Agent may make reasonable rules for their functions.

 

SECTION 14.08                            BENEFITS
OF INDENTURE.  Except as provided in the
next sentence, nothing in this Indenture or in the Notes, express or implied,
shall give to any Person, other than the parties hereto and their successors
and assigns hereunder and the Holders of Notes, any benefit or legal or
equitable right, remedy or claim under this Indenture.

 

SECTION 14.09                            LEGAL
HOLIDAYS.  A “Legal Holiday” is any day
other than a Business Day.  If any
specified date (including a date for giving notice) is a Legal Holiday, the
action shall be taken on the next succeeding business day that is not a Legal
Holiday, and, if the action to be taken on such date is a payment in respect of
the Notes, no interest, if any, shall accrue for the intervening period.

 

SECTION 14.10                            GOVERNING
LAW.  THIS INDENTURE AND THE NOTES WILL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

 

35

 

SECTION 14.11                            NO
RECOURSE AGAINST OTHERS.  A director,
officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Notes or this Indenture
or for any claim based on, in respect of or by reason of such obligations or
their creation.  By accepting a Note,
each Noteholder shall waive and release all such liability.  The waiver and release shall be part of the
consideration for the issue of the Notes.

 

SECTION 14.12                            SUCCESSORS.  All agreements of the Company in this
Indenture and the Notes shall bind its successor.  All agreements of the Trustee in this
Indenture shall bind its successor.

 

SECTION 14.13                            MULTIPLE
ORIGINALS.  The parties may sign any
number of copies of this Indenture.  Each
signed copy shall be an original, but all of them together represent the same
agreement.  One signed copy is enough to
prove this Indenture.

 

36

 

IN WITNESS
WHEREOF, the undersigned, being duly authorized, have executed this Indenture
on behalf of the respective parties hereto as of the date first above written.

 

	
   

  	
  VEECO INSTRUMENTS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

37

 

EXHIBIT A-1

 

[Form of Certificated Note]

 

VEECO INSTRUMENTS INC.

 

        % Notes due 20   

 

CUSIP NO.

 

No.:

 

Issue Date:

 

VEECO
INSTRUMENTS INC., a Delaware corporation, promises to pay to              
or registered assigns, the principal sum of [                  ]
DOLLARS ($[                 ])
on                   ,
20   .

 

This Note
shall bear interest as specified on the other side of this Note.

 

Additional
provisions of this Note are set forth on the other side of this Note.

 

 

	
  Dated:

  	
   

  	
  VEECO INSTRUMENTS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  TRUSTEE’S
  CERTIFICATE OF

  	
   

  	
   

  
	
  AUTHENTICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  as Trustee,
  certifies that this

  	
   

  	
   

  
	
  is one of
  the Notes referred

  	
   

  	
   

  
	
  to in the
  within-mentioned Indenture (as

  	
   

  	
   

  
	
  defined on
  the other side of this Note).

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
									

 

B-1-1

 

[FORM OF REVERSE SIDE OF NOTE]

 

       % Note due 20   

 

Capitalized
terms used herein but not defined shall have the meanings assigned to them in
the Indenture unless otherwise indicated.

 

1.                                       Cash
Interest.

 

The Company
promises to pay interest at the Interest Rate in cash on the principal amount
of this Note.  The Company will pay cash
interest semiannually in arrears on                      
and                      
of each year (each an “Interest Payment Date”), beginning on             ,
20  , to Holders of record at the close of business on the preceding                      
and                      
(whether or not a business day) (each a “Regular Record Date”), as the case may
be, immediately preceding such Interest Payment Date.  Cash interest on the Notes will accrue from
the most recent date to which interest has been paid or duly provided or, if no
interest has been paid, from the Issue Date. 
Cash interest will be computed on the basis of a 360-day year of twelve
30-day months.  The Company shall pay
cash interest on overdue principal, and it shall pay interest in cash on
overdue installments of cash interest at the same rate to the extent lawful.  All such overdue cash interest shall be
payable on demand.

 

2.                                       Method
of Payment.

 

Subject to the
terms and conditions of the Indenture, the Company will make payments in
respect of the principal of, premium, if any, and cash interest on this Note to
Holders who surrender Notes to a Paying Agent to collect such payments in
respect of the Notes.  The Company will
pay cash amounts in money of the United States that at the time of payment is
legal tender for payment of public and private debts.  However, the Company may make such cash
payments by check payable in such money. 
A Holder with an aggregate principal amount in excess of $5,000,000 will
be paid by wire transfer in immediately available funds at the election of such
Holder.  Any payment required to be made
on any day that is not a Business Day will be made on the next succeeding
Business Day.

 

3.                                       Paying
Agent and Registrar.

 

Initially,                                  
(the “Trustee”), will act as Paying Agent and Registrar.  The Company may appoint and change any Paying
Agent, Registrar or co-registrar without notice, other than notice to the
Trustee except that the Company will maintain at least one Paying Agent in the
State of New York, City of New York, The Borough of Manhattan, which shall initially
be an office or agency of the Trustee. 
The Company or any of its Subsidiaries or any of their Affiliates may
act as Paying Agent, Registrar or co-registrar.

 

4.                                       Indenture.

 

The Company
issued the Notes under an Indenture dated as of                         ,
20    (the Indenture”), between the Company and the
Trustee.  The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939, as in effect from time to time (the “TIA”).  Capitalized terms used herein and not defined

 

2

 

herein have the meanings
ascribed thereto in the Indenture.  The
Notes are subject to all such terms, and Noteholders are referred to the
Indenture and the TIA for a statement of those terms.

 

The Notes are
general unsecured obligations of the Company limited to $                          
aggregate principal amount.  The
Indenture does not limit other indebtedness of the Company, secured or unsecured.

 

5.                                       [Reserved]

 

6.                                       [Reserved]

 

7.                                       [Reserved]

 

8.                                       [Reserved]

 

9.                                       [Reserved]

 

10.                                 Denominations;
Transfer; Exchange.

 

The Notes are
in fully registered form, without coupons, in denominations of $1,000 of
principal amount and whole multiples of $1,000. 
A Holder may transfer or exchange Notes in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay any taxes and fees required by law or permitted by the Indenture.

 

11.                                 Persons
Deemed Owners.

 

The registered
Holder of this Note may be treated as the owner of this Note for all purposes.

 

12.                                 Unclaimed
Money or Notes.

 

The Trustee
and the Paying Agent shall return to the Company upon written request any money
or Notes held by them for the payment of any amount with respect to the Notes
that remains unclaimed for two years, subject to applicable unclaimed property
law.  After return to the Company,
Holders entitled to the money or Notes must look to the Company for payment as
general creditors unless an applicable abandoned property law designates
another person.

 

13.                                 Amendment;
Waiver.

 

Subject to
certain exceptions set forth in the Indenture, (i) the Indenture or the
Notes may be amended with the written consent of the Holders of at least a
majority in aggregate principal amount of the Notes at the time outstanding and
(ii) certain Defaults may be waived with the written consent of the
Holders of a majority in aggregate principal amount of the Notes at the time
outstanding.  Subject to certain
exceptions set forth in the Indenture, without the consent of any Noteholder,
the Company and the Trustee may amend the Indenture or the Notes to cure any
ambiguity, omission, defect or inconsistency, or to comply with Article 5
of the Indenture, to provide for uncertificated Notes in addition to or in
place of certificated Notes or to make any

 

3

 

change that does not adversely
affect the rights of any Noteholder, or to comply with any requirement of the
SEC in connection with the qualification of the Indenture under the TIA.

 

14.                                 Defaults
and Remedies.

 

Under the
Indenture, Events of Default include (1) the Company fails to pay when due
the principal of or premium, if any, on any of the Notes at maturity or
otherwise, (2) the Company fails to pay an installment of interest
(including additional interest, if any) on any of the Notes that continues for
30 days after the date when due; (3) the Company fails to perform or observe
any other term, covenant or agreement contained in the Notes or the Indenture
for a period of 60 days after written notice of such failure, requiring the
Company to remedy the same, shall have been given to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Notes then outstanding; and (4) certain events of
bankruptcy, insolvency or reorganization with respect to the Company or any
Significant Subsidiary or any Subsidiaries of the Company which in the
aggregate would constitute a Significant Subsidiary.  If an Event of Default (other than an Event
of Default specified in clause (4) or (5) of Section 6.01 of the
Indenture) occurs and is continuing, the Trustee, or the Holders of at least
25% in aggregate principal amount of the Notes at the time outstanding, may
declare all the Notes to be due and payable. 
Certain events of bankruptcy or insolvency are Events of Default which
will result in the Notes becoming due and payable immediately upon the
occurrence of such Events of Default.

 

Noteholders
may not enforce the Indenture or the Notes, except as provided in the
Indenture.  The Trustee may refuse to
enforce the Indenture or the Notes unless it receives reasonable indemnity or
security satisfactory to it.  Subject to
certain limitations, Holders of a majority in aggregate principal amount of the
Notes at the time outstanding may direct the Trustee in its exercise of any
trust or power.  The Trustee may withhold
from Noteholders notice of any continuing Default (except a Default in payment
of amounts specified in clause (1) or (2) above) if it determines
that withholding notice is in their interests.

 

15.                                 [Reserved]

 

16.                                 Trustee
Dealings with the Company.

 

Subject to
certain limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with and collect obligations owed to it by the Company or
its Affiliates and may otherwise deal with the Company or its Affiliates with
the same rights it would have if it were not Trustee.

 

17.                                 [Reserved]

 

18.                                 No
Recourse Against Others.

 

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

 

4

 

19.                                 Authentication.

 

This Note
shall not be valid until an authorized signatory of the Trustee manually signs
the Trustee’s Certificate of Authentication on the other side of this Note.

 

20.                                 Abbreviations.

 

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

 

21.                                 GOVERNING
LAW.

 

THE INDENTURE
AND THIS NOTE WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES
THEREOF.

 

The Company
will furnish to any Noteholder upon written request and without charge a copy
of the Indenture which has in it the text of this Note in larger type.  Requests may be made to:

 

Veeco Instruments Inc.

100 Sunnyside Boulevard, Suite B

Woodbury, NY 11797

Attention: Investor Relations

 

	
  ASSIGNMENT FORM

  
	
  To assign this Note, fill in the form below:

  
	
  I or we assign and transfer this Note to

  
	
  (Insert assignee’ soc. sec. or tax ID no.)

  
	
   

  
	
   

  	
   

  
	
   

  	
   

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

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  
	
  And irrevocably appoint

  
	
   

  	
   

  
	
  agent to transfer this Note on the books of the

  
	
  Company. The agent may substitute another to

  
	
  act for him.

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

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

  
							

 

5

 

	
  Signature Guarantee*:

  	
   

  	
   

  

 

* Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the
Trustee

 

6EXHIBIT 10.1

 

CATALYTICA
ENERGY SYSTEMS, INC.

 

RETENTION
AGREEMENT

 

This Retention
Agreement (the “Agreement”) is made and entered into by and between Ralph Dalla
Betta (the “Employee”) and Catalytica Energy Systems, Inc. (the “Company”),
effective as of the latest date set forth by the signatures of the parties
hereto below (the “Effective Date”).

 

1.             Term
of Agreement.  This Agreement shall
terminate upon the date that all obligations of the parties hereto with respect
to this Agreement have been satisfied.

 

2.             At-Will
Employment.  The Company and the
Employee acknowledge that the Employee’s employment is and shall continue to be
at-will, as defined under applicable law. 
If the Employee’s employment terminates for any reason, including
(without limitation) any termination after an announcement of Change of Control
and prior to twenty-four (24) months following a Change of Control or the
announcement of a Change of Control, whichever comes later, the Employee shall
not be entitled to any payments, benefits, damages, awards or compensation
other than as provided by this Agreement.

 

3.             Severance
Benefits.

 

(a)           Termination Not in Connection with a Change of
Control.  If the Employee’s employment
terminates as a result of Involuntary Termination (as defined below) other than
for Cause at any time prior to an announcement of a Change of Control or on or
after the date that is twenty-four (24) months following a Change of Control or
the announcement of a Change of Control, whichever comes later (a “Non-Change
of Control Severance Termination”), then, subject to Employee (i) executing and
not revoking a standard release of claims in favor of the Company; provided,
however, that such release shall preserve all indemnification rights of
Employee and all other rights of Employee under the currently existing
indemnification agreement or similar agreement with the Company (a “Release”),
and (ii) not breaching the provisions of Section 5 hereof, then Employee shall
be entitled to receive the following severance benefits:

 

(i)    Severance
Payment.  Following the Employment
Termination Date the Company shall pay Employee an aggregate amount equal to
one hundred percent (100%) of his Annual Compensation, less applicable taxes,
ratably over the remaining payroll periods in the same calendar year in which
Employee terminated.

 

(ii)   Subsidized
COBRA.  Subject to Employee timely
electing continuation coverage under Title X of the Consolidated Budget
Reconciliation Act of 1985 (“COBRA”), the Company shall subsidize Employee and
his eligible dependent’s COBRA premiums so that Employee pays the same premium
as an active employee of the Company for a period equal to the lesser of (i)
twelve months following the Employee’s termination date, or (ii) the date upon
which Employee becomes covered under the group health plans of another employer
with comparable group health benefits and levels of coverage.

 

 

(b)           Termination
in Connection with a Change of Control. 
If the Employee’s employment terminates as a result of Involuntary
Termination (as defined below) other than for Cause at any time after an
announcement of a Change of Control and prior to twenty-four (24) months
following a Change of Control or the announcement of a Change of Control,
whichever comes later (the “Change of Control Period”) (a “Change of Control
Severance Termination”), then, subject to Employee (i) executing and not
revoking a Release, (ii) not breaching the provisions of Section 5 hereof, and
(iii) the provisions of Section 7 hereof, the Employee shall be entitled
to receive the following severance benefits:

 

(i)    Severance
Payment.  A cash payment in an amount
equal to two hundred percent (200%) of the Employee’s Annual Compensation plus
a pro rata cash payment of the current year bonus award based on the target
bonus for the Employee, less any Change of Control Retention Payments (as
defined in Section 4 hereof) already paid to Employee;

 

(ii)   Continued
Employee Benefits.  One hundred
percent (100%) Company-paid health, dental and life insurance coverage at the
same level of coverage as was provided to such employee immediately prior to
the Change of Control Severance Termination (the “Company-Paid Coverage”).  If such coverage included the Employee’s
dependents immediately prior to the Change of Control Severance Termination,
such dependents shall also be covered at Company expense.  Company-Paid Coverage shall continue until
the earlier of (i) two years from the date of the Involuntary Termination
or (ii) the date that the Employee and his dependents become covered under
another employer’s group health, dental or life insurance plans that provide
Employee and his dependents with comparable benefits and levels of
coverage.  For purposes of COBRA, the
date of the “qualifying event” for Employee and his dependents shall be the
date upon which the Company-Paid Coverage terminates.

 

(iii)  Option
and Restricted Stock Accelerated Vesting. 
One Hundred percent (100%) of the unvested portion of any stock option
or restricted stock (including restricted stock units) held by the Employee
shall automatically be accelerated in full so as to become completely vested.

 

(iv)  Timing
of Severance Payments.  Any Change of
Control Severance payment to which Employee is entitled under
Section 3(b)(1) shall be paid by the Company to the Employee (or to the
Employee’s successor in interest, pursuant to Section 9(b)) in cash and in
full, not later than thirty (30) calendar days following the Termination Date,
subject to Section 11(f).

 

(c)           Voluntary
Resignation; Termination For Cause. 
If the Employee’s employment terminates by reason of the Employee’s
voluntary resignation (and is not an Involuntary Termination), or if the
Employee is terminated for Cause, then the Employee shall not be entitled to
receive severance or other benefits except for those (if any) as may then be
established under the Company’s then existing option, severance and benefits
plans and practices.

 

Disability;
Death.  If the
Company terminates the Employee’s employment as a result of the Employee’s
Disability, or such Employee’s employment is terminated due to the death of the
Employee, then the Employee shall not be entitled to receive severance or other
benefits except for

 

2

 

those (if any) as may then be
established under the Company’s then existing severance and benefits plans and
practices or pursuant to other agreements with the Company.

 

4.             Retention
Payments.

 

(a)           Change
of Control Retention Payments.  In
the event of a Change of Control (other than a liquidation or dissolution of
the Company) wherein Employee is employed by the acquiring entity in the
position of Chief Technical Officer or a greater position, then Employee shall
receive cash retention payments (the “Change of Control Retention Payments”) as
to 2/3 of Annual Compensation on the date of the Change of Control, another 2/3
of Annual Compensation on the date that is six months following the Change of
Control, and a final 2/3 of Annual Compensation on the one year anniversary of
the Change of Control, subject to his remaining employed by the acquiring
entity through such dates.

 

(b)           [*]
Retention Payments.  In the event of
a [*] (as defined herein) that does not constitute a Change of Control in which
the acquiring entity hires Employee as a full-time executive, Employee shall
receive retention payments (the “[*] Retention Payments”) as to $200,000 on the
date of the [*], another $200,000 on the date that is six months following the
[*], and a final $200,000 on the one year anniversary of the [*], subject to his
remaining employed by the acquiring entity through such dates; provided,
however, that if following the [*] Employee is terminated by the acquiring
entity as a result of an Involuntary Termination, then, subject to Employee (i)
executing and not revoking a Release, (ii) not breaching the provisions of
Section 5 hereof, and (iii) the provisions of Section 7 hereof, the
Employee shall be entitled to receive any remaining [*] Retention Payments that
have not yet been paid to Employee.

 

(c)           No
Duplicate Payments.  In no event
shall Employee receive both Change of Control Retention Payments and [*]
Retention Payments.  Moreover, if
Employee receives [*] Retention Payments, he shall not be eligible to receive
any severance benefits under Section 3 hereof.

 

5.             Conditional
Nature of Section 3 and 4 Payments.

 

(a)           Noncompete.  Employee acknowledges that the nature of the
Company’s business is such that if Employee were to become employed by, or
substantially involved in, the business of a competitor of the Company during
the 12 months following the termination of Employee’s employment with the
Company, it would be very difficult for Employee not to rely on or use the
Company’s trade secrets and confidential information.  Thus, to avoid the inevitable disclosure of
the Company’s trade secrets and confidential information, Employee agrees and
acknowledges that Employee’s right to receive the payments set forth in
Section 3 or 4 (to the extent Employee is otherwise entitled to such
payments) shall be conditioned upon Employee not directly or indirectly
engaging in (whether as an employee, consultant, agent, proprietor, principal,
partner, stockholder, corporate officer, director or otherwise), nor having any
ownership interested in or

 

[* ]  This provision is the
subject of a Confidential Treatment Request

 

3

 

participating in the financing, operation, management
or control of, any person, firm, corporation or business that competes with the
Company or is a customer or client of the Company during the one year period
following the Employment Termination Date (“Competition”); provided, however,
that nothing in this Section 5 shall prevent Employee from performing services
for the acquirer of the Company’s [*] following a [*]; provided, further, that
following his termination of employment with the Company, Employee shall be
permitted to work for an entity in Competition with the Company whose primary
business is not providing products or services competitive with the products or services of the Company,
so long Employee does not engage in a business that makes such entity in
Competition with the Company. 
Notwithstanding the foregoing, Employee may, without violating this
Section 5, own, as a passive investment, shares of capital stock of a
publicly-held corporation that engages in Competition where the number of
shares of such corporation’s capital stock that are owned by Employee represent
less than three percent of the total number of shares of such corporation’s
capital stock outstanding.

 

(b)           Non-Solicitation. 
Until the date 12 months after the termination of Employee’s employment
with the Company for any reason, Employee agrees and acknowledges that
Employee’s right to receive the severance and retention payments set forth in
Section 3 and 4 (to the extent Employee is otherwise entitled to such
payments) shall be conditioned upon Employee not either directly or indirectly
soliciting, inducing, recruiting or encouraging an employee to leave his or her
employment either for Employee or for any other entity or person with which or
whom Employee has a business relationship.

 

(c)           Understanding
of Covenants.  Employee represents
that he (i) is familiar with the foregoing covenants not to compete and
not to solicit, and (ii) is fully aware of his obligations hereunder,
including, without limitation, the reasonableness of the length of time, scope
and geographic coverage of these covenants.

 

(d)           Remedy
for Breach.  Upon any breach of this
section by Employee, all severance and retention payments pursuant to Section 3
or 4 shall immediately cease, and that shall be the sole remedy available to
the Company for such breach.

 

6.             Attorney
Fees, Costs and Expenses.  With
respect to any Change of Control Severance Termination only, the Company shall
reimburse Employee for the reasonable attorney fees, costs and expenses
incurred by the Employee in connection with any action brought by Employee to
enforce his rights hereunder, provided such action is not decided in favor of
the Company.

 

7.             Limitation
on Payments.

 

(a)           In the
event that the severance and other benefits provided for in this Agreement or
otherwise payable to the Employee (i) constitute “parachute payments”
within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”) and

 

[* ]  This provision is the
subject of a Confidential Treatment Request

 

4

 

(ii) but for this Section 7, would be
subject to the excise tax imposed by Section 4999 of the Code, then the
Employee’s severance and/or retention benefits under this Agreement shall be
either

 

(A)                              delivered
in full, or

 

(B)                                delivered
as to such lesser extent which would result in no portion of such severance
benefits being subject to excise tax under Section 4999 of the Code,

 

whichever of the foregoing
amounts, taking into account the applicable federal, state and local income
taxes and the excise tax imposed by Section 4999, results in the receipt
by the Employee on an after-tax basis, of the greatest amount of severance
and/or retention benefits, notwithstanding that all or some portion of such
severance and/or retention benefits may be taxable under Section 4999 of
the Code.  Any taxes due under Section 4999
shall be the responsibility of the employee.

 

(b)           If a
reduction in the payments and benefits that would otherwise be paid or provided
to the Employee under the terms of this Agreement is necessary to comply with
the provisions of Section 7(a), the Employee shall be entitled to select
which payments or benefits will be reduced and the manner and method of any
such reduction of such payments or benefits (including but not limited to the
number of options or other awards that would vest under Section 3(b))
subject to reasonable limitations (including, for example, express provisions
under the Company’s benefit plans) (so long as the requirements of
Section 7(a) are met).  Within
thirty (30) days after the amount of any required reduction in payments and
benefits is finally determined in accordance with the provisions of
Section 7(c), the Employee shall notify the Company in writing regarding
which payments or benefits are to be reduced. 
If no notification is given by the Employee, the Company will determine
which amounts to reduce.  If, as a result
of any reduction required by Section 7(a), amounts previously paid to the
Employee exceed the amount to which the Employee is entitled, the Employee will
promptly return the excess amount to the Company.

 

(c)           Unless the
Company and the Employee otherwise agree in writing, any determination required
under this Section 7 shall be made in writing by the Company’s primary
outside tax advisors immediately prior to the Change of Control (the
“Accountants”), whose determination shall be conclusive and binding upon the
Employee and the Company for all purposes. 
For purposes of making the calculations required by this Section 7,
the Accountants may, after taking into account the information provided by the
Employee, make reasonable assumptions and approximations concerning applicable
taxes and may rely on reasonable, good faith interpretations concerning the
application of Sections 280G and 4999 of the Code.  The Company and the Employee shall furnish to
the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this Section.  The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations
contemplated by this Section 7.

 

8.             Definition
of Terms.  The following terms
referred to in this Agreement shall have the following meanings:

 

5

 

(a)           Annual
Compensation.  “Annual Compensation”
means an amount equal to the greater of (i) Employee’s base salary for the
twelve (12) months preceding the Change of Control plus the employee’s target
bonus for the same period (but not less than 85% of such base salary), or
(ii) Employee’s base salary on an annualized basis and the employee’s
target bonus as of the Termination Date (but not less than 85% of such base
salary).

 

(b)           Cause.  “Cause” shall mean (i) any act of
personal dishonesty taken by the Employee in connection with his
responsibilities as an employee and intended to result in substantial personal
enrichment of the Employee, (ii) the conviction of or plea of nolo
contendere to a felony, (iii) a willful act by the Employee that
constitutes gross misconduct and that is injurious to the Company, or
(iv) for a period of not less than thirty (30) days following delivery to
the Employee of a written demand for performance from the Company that
describes the basis for the Company’s belief that the Employee has not
substantially performed his duties, continued violations by the Employee of the
Employee’s obligations to the Company that are demonstrably willful and
deliberate on the Employee’s part.  Any
dismissal for cause must be approved by the Company’s Board of Directors prior
to the dismissal date.

 

(c)           Change
of Control.  “Change of Control”
means the occurrence of any of the following events:

 

(i)    Any
“person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as
defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company’s then outstanding voting securities;

 

(ii)   A
change in the composition of the Board occurring within a twelve-month period,
as a result of which fewer than a majority of the directors are Incumbent
Directors.  “Incumbent Directors” shall
mean directors who either (A) are directors of the Company as of the date
hereof, or (B) are elected, or nominated for election, to the Board with
the affirmative votes of at least a majority of the Incumbent Directors at the
time of such election or nomination (but shall not include an individual whose
election or nomination is in connection with an actual or threatened proxy
contest relating to the election of directors to the Company);

 

(iii)  The
consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation that would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or such surviving entity’s
parent) at least fifty percent (50%) of the total voting power represented by
the voting securities of the Company or such surviving entity or such surviving
entity’s parent outstanding immediately after such merger or consolidation;

 

(iv)  The
consummation of the sale or disposition by the Company of all or seventy-five
percent (75%) or more of the Company’s assets.

 

6

 

(d)           Disability.  “Disability” shall mean that the Employee has
been unable to perform his Company duties as the result of his incapacity due
to physical or mental illness, and such inability, at least twenty-six (26)
weeks after its commencement, is determined to be total and permanent by a
physician selected by the Company or its insurers and acceptable to the
Employee or the Employee’s legal representative (such Agreement as to
acceptability not to be unreasonably withheld). 
Termination resulting from Disability may only be effected after at
least thirty (30) days’ written notice by the Company of its intention to
terminate the Employee’s employment.  In
the event that the Employee resumes the performance of substantially all of his
duties hereunder before the termination of his employment becomes effective,
the notice of intent to terminate shall automatically be deemed to have been
revoked.

 

(e)           Involuntary Termination.  “Involuntary Termination” shall mean
(i) without the Employee’s express written consent, the significant
reduction of the Employee’s duties, authority or responsibilities, relative to
the Employee’s duties, authority or responsibilities as in effect immediately
prior to such reduction, or the assignment to Employee of such reduced duties,
authority or responsibilities; provided, however, that so long as Employee’s
title, duties, authority and responsibility are at the level of Chief Technical
Officer or greater, whether at the Company or at an acquirer following a Change
of Control, then that will not constitute an Involuntary Termination under this
clause (i), (ii) without the Employee’s express written consent, a
substantial reduction, without good business reasons, of the facilities and perquisites
(including office space and location) available to the Employee immediately
prior to such reduction; (iii) a reduction by the Company in the base
salary or target bonus of the Employee as in effect immediately prior to such
reduction; (iv) a material reduction by the Company in the kind or level
of employee benefits to which the Employee was entitled immediately prior to
such reduction with the result that the Employee’s overall benefits package is
significantly reduced; (v) the relocation of the Employee to a facility or
a location more than twenty-five (25) miles from the Employee’s then present
location, without the Employee’s express written consent; (vi) any
purported termination of the Employee by the Company that is not effected for Disability
or for Cause, or, during the Change of Control Period only, any purported
termination for which the grounds relied upon are not valid; (vii) the
failure of the Company to obtain the assumption of this Agreement by any
successors contemplated in Section 9(a) below; or (viii) during the
Change of Control Period only, any act or set of facts or circumstances that
would, under California case law or statute constitute a constructive
termination of the Employee.  However,
with respect to any Non-Change of Control Severance Termination, an Involuntary
Termination shall not be deemed to have occurred unless Employee provides written notice to the Company describing the
nature of the event that he believes forms the basis for Involuntary
Termination and the Company does not cure such event within ten (10) days
following receipt of such notice.

 

(f)            [*]

 

(g)           Termination
Date.  “Termination Date” shall mean
(i) if this Agreement is terminated by the Company for Disability, thirty
(30) days after notice of termination is given to the

 

[* ]  This provision is the
subject of a Confidential Treatment Request

 

7

 

Employee (provided that the Employee shall not have
returned to the performance of the Employee’s duties on a full-time basis
during such thirty (30)-day period), (ii) if the Employee’s employment is
terminated by the Company for any other reason, the date on which a notice of
termination is given, provided that if within thirty (30) days after the
Company gives the Employee notice of termination, the Employee notifies the
Company that a dispute exists concerning the termination or the benefits due
pursuant to this Agreement, then the Termination Date shall be the date on
which such dispute is finally determined, either by mutual written agreement of
the parties, or a by final judgment, order or decree of a court of competent
jurisdiction (the time for appeal therefrom having expired and no appeal having
been perfected), or (iii) if the Agreement is terminated by the Employee,
the date on which the Employee delivers the notice of termination to the
Company.

 

9.             Successors.

 

(a)           Company’s
Successors.  Any successor to the
Company (whether direct or indirect and whether by purchase, merger,
consolidation, liquidation or otherwise) to all or substantially all of the
Company’s business and/or assets shall assume the obligations under this
Agreement and agree expressly to perform the obligations under this Agreement
in the same manner and to the same extent as the Company would be required to
perform such obligations in the absence of a succession.  For all purposes under this Agreement, the
term “Company” shall include any successor to the Company’s business and/or
assets which executes and delivers the assumption agreement described in this
Section 9(a) or which becomes bound by the terms of this Agreement by
operation of law.

 

(b)           Employee’s
Successors.  The terms of this
Agreement and all rights of the Employee hereunder shall inure to the benefit
of, and be enforceable by, the Employee’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.

 

10.           Notice.

 

(a)           General.  Notices and all other communications
contemplated by this Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or when mailed by U.S.  registered or certified mail, return receipt
requested and postage prepaid.  In the
case of the Employee, mailed notices shall be addressed to him at the home
address which he most recently communicated to the Company in writing.  In the case of the Company, mailed notices
shall be addressed to its corporate headquarters, and all notices shall be
directed to the attention of its Secretary.

 

(b)           Notice
of Termination.  Any termination by
the Company for Cause or by the Employee as a result of a voluntary resignation
or an Involuntary Termination shall be communicated by a notice of termination
to the other party hereto given in accordance with Section 10 (a) of this
Agreement.  Such notice shall indicate
the specific termination provision in this Agreement relied upon, shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination under the provision so indicated, and shall specify the
termination date (which shall be not more than thirty (30) days after the
giving of such notice).  The failure by
the Employee to include in the notice any fact or circumstance which
contributes to a showing of

 

8

 

Involuntary Termination shall not waive any right of
the Employee hereunder or preclude the Employee from asserting such fact or
circumstance in enforcing his rights hereunder.

 

11.           Miscellaneous
Provisions.

 

(a)           No Duty
to Mitigate.  The Employee shall not
be required to mitigate the amount of any payment contemplated by this
Agreement, nor shall any such payment be reduced by any earnings that the
Employee may receive from any other source.

 

(b)           Waiver.  No provision of this Agreement shall be
modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by the Employee and by an authorized officer of
the Company (other than the Employee). 
No waiver by either party of any breach of, or of compliance with, any
condition or provision of this Agreement by the other party shall be considered
a waiver of any other condition or provision or of the same condition or
provision at another time.

 

(c)           Whole
Agreement.  This Agreement and any
outstanding stock option agreements represent the entire understanding of the
parties hereto with respect to the subject matter hereof and supersedes in
their entirety all prior arrangements and understandings regarding same,
including the Change of Control Severance Agreement previously entered into by
and between Employee and the Company and any offer letter, promotion letter,
employment agreement or other agreement regarding Employee’s employment terms
with the Company.  Other than the
agreements described in the preceding sentence, no agreements, representations
or understandings (whether oral or written and whether express or implied)
which are not expressly set forth in this Agreement have been made or entered
into by either party with respect to the subject matter hereof.

 

(d)           Choice
of Law.  The validity,
interpretation, construction and performance of this Agreement shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of Arizona without regard to principles
of conflicts of laws.

 

(e)           Severability.  The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

 

(f)            Withholding.  All payments made pursuant to this Agreement
will be subject to withholding of applicable income and employment taxes.

 

(g)           Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

 

9

 

IN WITNESS WHEREOF, each of the
parties has executed this Agreement, in the case of the Company by its duly
authorized officer, as of the day and year set forth below.

 

	
  COMPANY

  	
  CATALYTICA
  ENERGY SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Robert Zack

  
	
   

  	
   

  	
    Robert Zack, President and CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
    September
  27, 2005

  	
   

  
	
   

  	
   

  
	
  EMPLOYEE

  	
  /s/ Ralph Dalla
  Betta

  
	
   

  	
   

  
	
   

  	
  Date:

  	
    September
  27, 2005

  	
   

  
						

 

10

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