Document:

Unassociated Document

     

    Exhibit
      10.3

     

    INDENTURE

     

    dated
      as of February 21, 2008

     

    by
      and between

     

    AZITHROMYCIN
      ROYALTY SUB LLC,

    a
      Delaware limited liability company,

    as
      issuer of the Notes described herein,

     

    and

     

    U.S.
      BANK NATIONAL ASSOCIATION,

    as
      initial trustee of the Notes described herein

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Table
      of
      Contents

     

    
      	 	 	 	
              Page

            
	 	
              GRANTING
                CLAUSE

            	
              1

            
	 	
              
                HABENDUM CLAUSE

              

            	
              2

            
	 	 
	 	
              ARTICLE
                I

            
	 	
              GENERAL

            
	 	 	 	 
	 	
              Section
                1.1

            	
              Rules
                of Construction and Defined Terms

            	
              3

            
	 	
              Section
                1.2

            	
              Compliance
                Certificates and Opinions

            	
              3

            
	 	
              Section
                1.3

            	
              Acts
                of Noteholders.

            	
              4

            
	 	 
	 	
              ARTICLE
                II

            
	 	
              THE
                NOTES

            
	 	 	 	 
	 	
              Section
                2.1

            	
              Amount
                of Notes; Terms; Form; Execution and Delivery.

            	
              5

            
	 	
              Section
                2.2

            	
              Restrictive
                Legends

            	
              8

            
	 	
              Section
                2.3

            	
              Registrar
                and Paying Agent.

            	
              12

            
	 	
              Section
                2.4

            	
              Paying
                Agent to Hold Money in Trust

            	
              13

            
	 	
              Section
                2.5

            	
              Method
                of Payment.

            	
              14

            
	 	
              Section
                2.6

            	
              Minimum
                Denominations

            	
              16

            
	 	
              Section
                2.7

            	
              Transfer
                and Exchange; Cancellation

            	
              16

            
	 	
              Section
                2.8

            	
              Mutilated,
                Destroyed, Lost or Stolen Notes

            	
              17

            
	 	
              Section
                2.9

            	
              Payments
                of Transfer Taxes

            	
              17

            
	 	
              Section
                2.10

            	
              Book-Entry
                Provisions.

            	
              18

            
	 	
              Section
                2.11

            	
              Special
                Transfer Provisions.

            	
              19

            
	 	
              Section
                2.12

            	
              Temporary
                Definitive Notes

            	
              24

            
	 	
              Section
                2.13

            	
              Statements
                to Noteholders.

            	
              24

            
	 	
              Section
                2.14

            	
              CUSIP,
                CINS, ISIN and Private Placement Numbers

            	
              25

            
	 	
              Section
                2.15

            	
              Refinancing
                Notes.

            	
              26

            
	 	
              Section
                2.16

            	
              Class
                B Notes.

            	
              27

            
	 	
              Section
                2.17

            	
              Limitation
                on Number of Holders of Notes

            	
              29

            
	 	 
	 	
              ARTICLE
                III

            
	 	
              ACCOUNTS;
                PRIORITY OF PAYMENTS

            
	 	 	 	 
	 	
              Section
                3.1

            	
              Establishment
                of Accounts.

            	
              29

            
	 	
              Section
                3.2

            	
              Investments
                of Cash

            	
              32

            
	 	
              Section
                3.3

            	
              Closing
                Date Deposits; Withdrawals and Transfers.

            	
              32

            
	 	
              Section
                3.4

            	
              Capital
                Contributions

            	
              33

            
	 	
              Section
                3.5

            	
              Calculation
                Date Calculations.

            	
              33

            
	 	
              Section
                3.6

            	
              Payment
                Date First Step Transfers

            	
              35

            
	 	
              Section
                3.7

            	
              Payment
                Date Second Step Withdrawals.

            	
              35

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Section
                3.8

            	
              Interest
                Reserve Account and Capital Account; Shortfalls

            	
              37

            
	 	
              Section
                3.9

            	
              Parent
                Shortfall

            	
              37

            
	 	
              Section
                3.10

            	
              Redemptions.

            	
              37

            
	 	
              Section
                3.11

            	
              Procedure
                for Redemptions.

            	
              38

            
	 	 
	 	
              ARTICLE
                IV

            
	 	
              DEFAULT
                AND REMEDIES

            
	 	 	 	 
	 	
              Section
                4.1

            	
              Events
                of Default

            	
              40

            
	 	
              Section
                4.2

            	
              Acceleration,
                Rescission and Annulment.

            	
              41

            
	 	
              Section
                4.3

            	
              Other
                Remedies

            	
              42

            
	 	
              Section
                4.4

            	
              Limitation
                on Suits

            	
              43

            
	 	
              Section
                4.5

            	
              Waiver
                of Existing Defaults.

            	
              44

            
	 	
              Section
                4.6

            	
              Restoration
                of Rights and Remedies

            	
              44

            
	 	
              Section
                4.7

            	
              Remedies
                Cumulative

            	
              44

            
	 	
              Section
                4.8

            	
              Rights
                of Noteholders to Receive Payment

            	
              45

            
	 	
              Section
                4.9

            	
              Trustee
                May File Proofs of Claim

            	
              45

            
	 	
              Section
                4.10

            	
              Undertaking
                for Costs

            	
              45

            
	 	
              Section
                4.11

            	
              Control
                by Noteholders

            	
              45

            
	 	
              Section
                4.12

            	
              Senior
                Trustee

            	
              45

            
	 	
              Section
                4.13

            	
              Application
                of Proceeds

            	
              46

            
	 	
              Section
                4.14

            	
              Waivers
                of Rights Inhibiting Enforcement

            	
              46

            
	 	
              Section
                4.15

            	
              Security
                Interest Absolute

            	
              46

            
	 	 
	 	
              ARTICLE
                V

            
	 	
              REPRESENTATIONS,
                WARRANTIES AND COVENANTS

            
	 	 	 	 
	 	
              Section
                5.1

            	
              Representations
                and Warranties

            	
              47

            
	 	
              Section
                5.2

            	
              Covenants

            	
              50

            
	 	
              Section
                5.3

            	
              Reports
                and Other Deliverables by the Issuer.

            	
              55

            
	 	 
	 	
              ARTICLE
                VI

            
	 	
              THE
                TRUSTEE

            
	 	 	 	 
	 	
              Section
                6.1

            	
              Acceptance
                of Trusts and Duties

            	
              56

            
	 	
              Section
                6.2

            	
              Copies
                of Documents and Other Notices.

            	
              56

            
	 	
              Section
                6.3

            	
              Representations
                and Warranties

            	
              57

            
	 	
              Section
                6.4

            	
              Reliance;
                Agents; Advice of Counsel

            	
              58

            
	 	
              Section
                6.5

            	
              Not
                Acting in Individual Capacity

            	
              60

            
	 	
              Section
                6.6

            	
              Compensation
                of Trustee

            	
              60

            
	 	
              Section
                6.7

            	
              Notice
                of Defaults

            	
              60

            
	 	
              Section
                6.8

            	
              May
                Hold Notes

            	
              60

            
	 	
              Section
                6.9

            	
              Corporate
                Trustee Required; Eligibility

            	
              60

            
	 	
              Section
                6.10

            	
              Reports
                by the Trustee

            	
              61

            
	 	
              Section
                6.11

            	
              Calculation
                Agent

            	
              61

            
	 	
              Section
                6.12

            	
              Pledge
                and Security Agreement and Other Transaction Documents

            	
              61

            
	 	
              Section
                6.13

            	
              Custody
                of the Collateral

            	
              61

            
	 	
              Section
                6.14

            	
              Preservation
                and Disclosure of Noteholder Lists

            	
              62

            

    

    
      	 	
              Section
                6.15

            	
              Audit
                Rights

            	
              62

            

    

    
    

    
       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          
 

      

    

    
      	 	
              Section
                6.16

            	
              Compliance
                with Applicable Anti-Terrorism and Anti-Money Laundering
                Regulations

            	
              62

            
	 	
              Section
                6.17

            	
              Jurisdiction
                of Trustee

            	
              62

            
	 	 
	 	
              ARTICLE
                VII

            
	 	
              SUCCESSOR
                TRUSTEES

            
	 	 	 	 
	 	
              Section
                7.1

            	
              Resignation
                and Removal of Trustee

            	
              63

            
	 	
              Section
                7.2

            	
              Appointment
                of Successor.

            	
              63

            
	 	 
	 	
              ARTICLE
                VIII

            
	 	
              INDEMNITY

            
	 	 	 	 
	 	
              Section
                8.1

            	
              Indemnity

            	
              64

            
	 	
              Section
                8.2

            	
              Noteholders’
                Indemnity

            	
              64

            
	 	
              Section
                8.3

            	
              Survival

            	
              65

            
	 	 
	 	
              ARTICLE
                IX

            
	 	
              MODIFICATION

            
	 	 	 	 
	 	
              Section
                9.1

            	
              Modification
                with Consent of Noteholders

            	
              65

            
	 	
              Section
                9.2

            	
              Modification
                Without Consent of Noteholders

            	
              66

            
	 	
              Section
                9.3

            	
              Subordination;
                Priority of Payments

            	
              67

            
	 	
              Section
                9.4

            	
              Execution
                of Amendments by Trustee

            	
              67

            
	 	
              Section
                9.5

            	
              Conformity
                with Trust Indenture Act

            	
              67

            
	 	 
	 	
              ARTICLE
                X

            
	 	
              SUBORDINATION

            
	 	 	 	 
	 	
              Section
                10.1

            	
              Subordination
                of the Notes.

            	
              67

            
	 	 
	 	
              ARTICLE
                XI

            
	 	
              DISCHARGE
                OF INDENTURE

            
	 	 	 	 
	 	
              Section
                11.1

            	
              Discharge
                of Indenture.

            	
              69

            
	 	 
	 	
              ARTICLE
                XII

            
	 	
              MISCELLANEOUS

            
	 	 	 	 
	 	
              Section
                12.1

            	
              Right
                of Trustee to Perform

            	
              69

            
	 	
              Section
                12.2

            	
              Waiver

            	
              70

            
	 	
              Section
                12.3

            	
              Severability

            	
              70

            
	 	
              Section
                12.4

            	
              Restrictions
                on Exercise of Certain Rights

            	
              70

            
	 	
              Section
                12.5

            	
              Notices

            	
              70

            
	 	
              Section
                12.6

            	
              Assignments

            	
              71

            
	 	
              Section
                12.7

            	
              Application
                to Court

            	
              72

            
	 	
              Section
                12.8

            	
              GOVERNING
                LAW

            	
              72

            
	 	
              Section
                12.9

            	
              Jurisdiction.

            	
              72

            
	 	
              Section
                12.10

            	
              Counterparts

            	
              73

            
	 	
              Section
                12.11

            	
              Table
                of Contents and Headings

            	
              73

            
	 	
              Section
                12.12

            	
              Trust
                Indenture Act

            	
              74

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Section
                12.13

            	
              Confidential
                Information

            	
              74

            
	 	
              Section
                12.14

            	
              Limited
                Recourse

            	
              75

            
	 	
              Section
                12.15

            	
              Tax
                Characterization; No Gross Up; Withholding

            	
              75

            
	 	 	 	 

    

    
      
        	
                Annex
                  A

              	 	
                Rules
                  of Construction and Defined Terms

              	 
	
                Exhibit
                  A

              	 	
                Form
                  of Original Class A Notes

              	 
	
                Exhibit
                  B

              	 	
                Form
                  of Resale Confidentiality Agreement

              	 
	
                Exhibit
                  C

              	 	
                Agents
                  for Service of Process

              	 
	
                Exhibit
                  D

              	 	
                Coverage
                  of Distribution Report

              	 
	
                Exhibit
                  E

              	 	
                UCC
                  Financing Statements

              	 
	
                Exhibit
                  F

              	 	
                Form
                  of Certificate of Euroclear or Clearstream for Permanent Regulation
                  S
                  Global Note

              	 
	
                Exhibit
                  G

              	 	
                Form
                  of Certification of Beneficial Owner of Temporary Regulation S
                  Global
                  Note

              	 
	
                Exhibit
                  H

              	 	
                Form
                  of Certification of Euroclear or Clearstream for Payments

              	 
	
                Exhibit
                  I

              	 	
                Form
                  of Certificate of Proposed Transferor

              	 
	
                Exhibit
                  J

              	 	
                Form
                  of Certificate of Certain Proposed Institutional Accredited Investor
                  Transferees

              	 

      

    

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    INDENTURE

     

    This
      INDENTURE, dated as of February 21, 2008, is by and between AZITHROMYCIN ROYALTY
      SUB LLC, a Delaware limited liability company, as issuer of the Notes described
      herein, and U.S. BANK NATIONAL ASSOCIATION, a national banking association,
      as
      initial trustee of the Notes described herein.

     

    GRANTING
      CLAUSE

     

    THIS
      INDENTURE WITNESSETH, that, in consideration of the premises and the acceptance
      by the Trustee of the trusts hereby created and of the purchase and acceptance
      of the Notes by the Noteholders, and for other good and valuable consideration,
      the receipt of which is hereby acknowledged, in order to secure (i) the prompt
      payment of the principal of, Premium (if any) and interest on, and all other
      amounts due with respect to, the Notes from time to time Outstanding hereunder,
      (ii) the payment of any fees, expenses or other amounts that the Issuer is
      obligated to pay under or in respect of the Notes, this Indenture or any other
      Transaction Document to which the Issuer is a party, (iii) the payment and
      performance of all the obligations of the Issuer in respect of any amendment,
      modification, extension, renewal or refinancing of the Notes and (iv) the
      performance and observance by the Issuer of all the agreements, covenants and
      provisions expressed or implied herein and in the Notes for the benefit of
      the
      Noteholders (collectively, the “Secured
      Obligations”)
      and
      for the uses and purposes and subject to the terms and provisions hereof, the
      Issuer does hereby grant, bargain, sell, assign, transfer, convey, mortgage,
      pledge and confirm unto the Trustee, its successors and assigns, for the
      security and benefit of the Noteholders from time to time of the Notes, a first
      priority security interest in all right, title and interest of the Issuer in,
      to
      and under the following described property, rights and privileges (each
      property, including all other property hereafter specifically subjected to
      the
      lien of this Indenture or any indenture supplemental hereto, being the
“Collateral”
and,
      collectively, including all other property hereafter specifically subjected
      to
      the lien of this Indenture or any indenture supplemental hereto, are included
      within and defined as the “Indenture
      Estate”),
      to
      wit:

     

    (1) Royalty
      Payments actually made by Inspire under the Inspire License Agreement (but
      not
      the rights thereunder to receive such payments) and the Replacement Royalty
      Payments, if any;

     

    (2) the
      Purchase and Sale Agreement, the Residual License Agreement, the Servicing
      Agreement and all other Transaction Documents, Principal Documents and other
      agreements to which the Issuer is a party, including those relating to the
      rights of the Issuer in respect of the sale, transfer, conveyance, assignment,
      contribution, grant and servicing of the Purchased Assets;

     

    (3) (A)
      all
      Accounts established under this Indenture at any time, (B) all amounts from
      time
      to time credited to such Accounts, (C) all cash, financial assets and other
      investment property, instruments, documents, chattel paper, general intangibles,
      accounts and other property from time to time credited to such Accounts or
      representing investments and reinvestments of amounts credited to such Accounts
      and (D) all interest, principal payments, dividends and other distributions
      payable on or with respect to, and all proceeds of, (i) all property so credited
      or representing such investments and reinvestments and (ii) such
      Accounts;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (4) all
      of
      the Issuer’s rents, issues, profits, revenues and other income of the property
      subjected or required to be subjected to the lien of this
      Indenture;

     

    (5) all
      other
      property and assets of the Issuer with respect to which a security interest
      can
      be created under Article 9 of the UCC, including all goods, deposit accounts,
      investment property, financial assets, letter-of-credit rights, supporting
      obligations, commercial tort claims, accounts, contract rights, general
      intangibles and all other cash (except (i) to the extent permitted to be
      distributed by the Issuer to the Parent pursuant to Section 3.7(c) and (ii)
      proceeds from any Notes issued in accordance with and pursuant to this Indenture
      in excess of amounts applicable to any Redemption of the Notes);

     

    (6) all
      rights of the Issuer (contractual and otherwise) constituting, arising under,
      connected with or in any way related to any or all of the foregoing
      property;

     

    (7) all
      books, records, files, correspondence, computer programs, tapes, disks and
      related data (owned by the Issuer) that at any time evidence or contain
      information relating to any of the foregoing property or are otherwise necessary
      or helpful in the collection thereof or realization thereupon;

     

    (8) all
      documents of title, policies and certificates of insurance, securities, chattel
      paper and other documents or instruments evidencing or pertaining to any of
      the
      foregoing property of the Issuer; and

     

    (9) all
      proceeds and products of any and all of the foregoing property;

     

    BUT
      SUBJECT TO all of the terms and conditions of this Indenture.

     

    HABENDUM
      CLAUSE

     

    TO
      HAVE
      AND TO HOLD all and singular the aforesaid property unto the Trustee, its
      successors and assigns, in trust for the benefit and security of the Noteholders
      from time to time of each class of the Notes, without any priority of any one
      class of Notes over any other class of Notes by reason of difference in time
      of
      issuance or otherwise, except as expressly provided herein, and for the uses
      and
      purposes and subject to the terms and provisions set forth in this
      Indenture.

     

    PROVIDED,
      HOWEVER, that, notwithstanding any of the foregoing provisions or anything
      to
      the contrary herein, so long as no Event of Default shall have occurred and
      be
      continuing, the Issuer shall have the right, to the exclusion of the Trustee
      and
      the Noteholders, to exercise in the Issuer’s name all rights and powers of the
      Issuer under the Purchase and Sale Agreement, the Residual License Agreement,
      the Servicing Agreement and any other agreement to which the Issuer is or may
      be
      a party or third party beneficiary (including Principal Documents), except
      as
      otherwise set forth in any such agreement, and SUBJECT TO all of the terms
      and
      conditions of this Indenture.

     

    It
      is
      hereby further agreed that any and all property described or referred to in
      the
      Granting Clause that is hereafter acquired by the Issuer shall ipso facto,
      and
      without any other conveyance, assignment or act on the part of the Issuer or
      the
      Trustee, become and be subject to the Security Interest herein granted as fully
      and completely as though specifically described herein, but nothing contained
      in
      this paragraph shall be deemed to modify or change the obligations of the Issuer
      contained in the foregoing paragraphs.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    The
      Issuer does hereby ratify and confirm this Indenture and the other Transaction
      Documents to which it is a party and, subject to the other terms of this
      Indenture, does hereby agree that it will not take or omit to take any action,
      the taking or omission of which might result in an alteration or impairment
      of
      the assignment hereunder or of any of the rights created by any
      thereof.

     

    It
      is
      expressly agreed that anything herein contained to the contrary notwithstanding,
      the Issuer shall remain liable under the Transaction Documents and any other
      contracts and agreements included in the Collateral to the extent set forth
      therein and shall remain obligated to perform all of the duties and obligations
      of the Issuer thereunder to the same extent as if this Indenture had not been
      executed in accordance with and pursuant to the terms and provisions thereof,
      the exercise by the Trustee of any of its rights hereunder shall not release
      the
      Issuer from any of its duties or obligations under any such Transaction
      Documents or other contracts or agreements included in the Collateral, and,
      prior to the foreclosure of the lien of this Indenture under Section 4.3, the
      Trustee and the Noteholders shall have no obligation or liability under any
      thereof by reason of or arising out of this Indenture or the assignment
      hereunder, nor shall the Trustee or the Noteholders be required or obligated
      in
      any manner to perform or fulfill any obligations or duties of the Issuer under
      or pursuant to any Transaction Document or any other contract or agreement
      included in the Collateral or, except as herein expressly provided, to make
      any
      payment, make any inquiry as to the nature or sufficiency of any payment
      received by it, present or file any claim or take any action to collect or
      enforce any claim for payment assigned hereunder or the payment of any amounts
      that may have been assigned to it or to which it may be entitled at any time
      or
      times; provided,
      however,
      that,
      in exercising any right of the Issuer under any Transaction Document or any
      other contract or agreement included in the Collateral, the Trustee and the
      Noteholders shall be bound by, and shall comply with, the provisions thereof
      applicable to the Issuer in respect of the exercise of such right and the
      confidentiality provisions set forth therein.

     

    IT
      IS
      HEREBY COVENANTED AND AGREED by and between the parties hereto as
      follows:

     

    ARTICLE
      I

    GENERAL

     

    Section
      1.1 Rules
      of Construction and Defined Terms.
      The
      rules
      of construction set forth in Annex
      A
      shall
      apply to this Indenture and are hereby incorporated by reference into this
      Indenture as if set forth fully in this Indenture. Capitalized terms used but
      not otherwise defined in this Indenture shall have the respective meanings
      given
      to such terms in Annex
      A,
      which
      is hereby incorporated by reference into this Indenture as if set forth fully
      in
      this Indenture. Not all terms defined in Annex
      A
      are used
      in this Indenture.

     

    Section
      1.2 Compliance
      Certificates and Opinions.
      Upon
      any application or request by the Issuer to the Trustee to take any action
      under
      any provision of this Indenture, the Issuer shall furnish to the Trustee an
      Officer’s Certificate stating that, in the opinion of the signer thereof in his
      or her capacity as such, all conditions precedent, if any, provided for in
      this
      Indenture relating to the proposed action have been complied with, and an
      Opinion of Counsel stating that, in the opinion of such counsel, all such
      conditions precedent, if any, have been complied with, 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
      particular application or request, no additional certificate or opinion need
      be
      furnished.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture (other than a certificate provided pursuant
      to
      Section 5.3) or any indenture supplemental hereto shall include:

     

    (a) a
      statement that each individual signing such certificate or opinion has read
      such
      covenant or condition and the definitions in this Indenture relating
      thereto;

     

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

     

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

     

    (d) a
      statement as to whether, in the opinion of each such individual, such condition
      or covenant has been complied with.

     

    Section
      1.3 Acts
      of Noteholders.

     

    (a) Any
      direction, consent, waiver or other action provided by this Indenture in respect
      of the Notes of any class to be given or taken by Noteholders may be embodied
      in
      and evidenced by one or more instruments of substantially similar tenor signed
      by such Noteholders in person or by an agent or proxy duly appointed in writing,
      and, except as herein otherwise expressly provided, such action shall become
      effective when such instrument or instruments are delivered to the Trustee
      or to
      the Issuer. Such instrument or instruments (and the action embodied therein
      and
      evidenced thereby) are herein sometimes referred to as the “Act”
of
      the
      Noteholders signing such instrument or instruments. Proof of execution of any
      such instrument or of a writing appointing any such agent shall be sufficient
      for any purpose under this Indenture and conclusive in favor of the Trustee
      or
      the Issuer, if made in the manner provided in this Section 1.3(a).

     

    (b) The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the certificate of any notary public or other officer of any
      jurisdiction authorized to take acknowledgments of deeds or administer oaths
      that the Person executing such instrument acknowledged to him or her the
      execution thereof, or by an affidavit of a witness to such execution sworn
      to
      before any such notary or such other officer and, where such execution is by
      an
      officer of a corporation or association, trustee of a trust or member of a
      partnership, on behalf of such corporation, association, trust or partnership,
      such certificate or affidavit shall also constitute sufficient proof of his
      or
      her 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 reasonable manner that the Trustee deems sufficient.

     

    
      
        
        

      

      
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    (c) In
      determining whether the Noteholders have given any direction, consent, request,
      demand, authorization, notice, waiver or other Act (a “Direction”)
      under
      this Indenture, Notes owned by the Issuer, the Parent or any Affiliate of any
      such Person shall be disregarded and deemed not to be Outstanding for purposes
      of any such determination. In determining whether the Trustee shall be protected
      in relying upon any such Direction, only Notes that a Responsible Officer of
      the
      Trustee actually knows to be so owned shall be so disregarded. Notwithstanding
      the foregoing, (i) if any such Person owns 100% of the Notes of any class
      Outstanding, such Notes shall not be so disregarded as aforesaid, and (ii)
      if
      any amount of Notes of such class so owned by any such Person have been pledged
      in good faith, such Notes shall not be disregarded as aforesaid 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 Issuer, the Parent
      or
      an Affiliate of any such Person.

     

    (d) The
      Issuer may, at its option, by delivery of Officer’s Certificate(s) to the
      Trustee, set a record date other than the Record Date to determine the
      Noteholders in respect of the Notes of any class entitled to give any Direction
      in respect of such Notes. Such record date shall be the record date specified
      in
      such Officer’s Certificate, which shall be a date not more than 30 days prior to
      the first solicitation of Noteholders in connection therewith. If such a record
      date is fixed, such Direction may be given before or after such record date,
      but
      only the Noteholders of the applicable class at the close of business on such
      record date shall be deemed to be Noteholders for the purposes of determining
      whether Noteholders of the requisite proportion of Outstanding Notes of such
      class have authorized, agreed or consented to such Direction, and for that
      purpose the Outstanding Notes of such class shall be computed as of such record
      date; provided,
      that no
      such Direction by the Noteholders on such record date shall be deemed effective
      unless it shall become effective pursuant to the provisions of this Indenture
      not later than one year after the record date.

     

    (e) Any
      Direction or other action by the Noteholder of any Note shall bind the
      Noteholder of every Note issued upon the transfer thereof, in exchange therefor
      or in lieu thereof, whether or not notation of such action is made upon such
      Note, and any Direction or other action by the Beneficial Holder of any
      Beneficial Interest in any Note shall bind any transferee of such Beneficial
      Interest.

     

    ARTICLE
      II

    THE
      NOTES

     

    Section
      2.1 Amount
      of Notes; Terms; Form; Execution and Delivery.

     

    (a) The
      Outstanding Principal Balance of any class of Notes that may be authenticated
      and delivered from time to time under this Indenture shall not exceed, with
      respect to the Original Class A Notes, the initial Outstanding Principal Balance
      for the Original Class A Notes set forth in the definition thereof or, with
      respect to any Class B Notes or any class of Refinancing Notes, the Outstanding
      Principal Balance authorized in the Manager Resolution or indenture supplemental
      hereto establishing such Class B Notes or Refinancing Notes; provided,
      that
      (i) any Refinancing Notes shall be issued in accordance with Section 2.15 and
      (ii) any Class B Notes shall be issued in accordance with Section
      2.16.

     

    
      
        
        

      

      
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    (b) There
      shall be issued, authenticated and delivered on the Closing Date and on the
      date
      of issuance of any Class B Notes or any Refinancing Notes to each of the
      Noteholders Notes in the principal amounts and maturities and bearing the
      interest rates, in each case in registered form and, in the case of the Original
      Class A Notes, substantially in the form set forth in Exhibit
      A
      or, in
      the case of any Class B Notes or any Refinancing Notes, substantially in the
      form set forth in the indenture supplemental hereto pursuant to which such
      Class
      B Notes or Refinancing Notes are issued, with such appropriate insertions,
      omissions, substitutions and other variations as are required or permitted
      by
      this Indenture, and may have such letters, numbers or other marks of
      identification and such legends or endorsements typewritten, printed,
      lithographed or engraved thereon, as may, consistently herewith, be prescribed
      by the Trustee. The Trustee shall authenticate Notes and make Notes available
      for delivery only upon the written order of the Issuer signed by a Responsible
      Officer of the Issuer. Such order shall specify the aggregate principal amount
      of Notes to be authenticated, the date of issue, whether they are to be issued
      as Global Notes or Definitive Notes and delivery instructions.

     

    Definitive
      Notes of each class shall be typewritten, printed, lithographed or engraved
      or
      produced by any combination of these methods, as determined by the Trustee.
      Any
      Notes offered and sold to Institutional Accredited Investors that are not QIBs
      that are not offered and sold in offshore transactions in reliance on Regulation
      S shall be issued initially in the form of Definitive Notes.

     

    Any
      Notes
      offered and sold in reliance on Rule 144A shall be issued initially in the
      form
      of one or more permanent Global Notes in registered form, substantially in
      the
      form set forth in the applicable Exhibit to this Indenture or in any indenture
      supplemental hereto (each, a “144A
      Global Note”),
      registered in the name of the nominee of DTC, deposited with the Trustee, as
      custodian for DTC, duly executed by the Issuer and authenticated by the Trustee
      as hereinafter provided. The aggregate principal amount of each 144A Global
      Note
      may from time to time be increased or decreased by adjustments made on the
      books
      and records of the Registrar, as hereinafter provided.

     

    Any
      Notes
      offered and sold to Institutional Accredited Investors in offshore transactions
      in reliance on Regulation S shall be issued initially in the form of one or
      more
      temporary global Notes in registered form substantially in the form set forth
      in
      the applicable Exhibit to this Indenture or in any indenture supplemental hereto
      (each, a “Temporary
      Regulation S Global Note”),
      registered in the name of the nominee of DTC, deposited with the Trustee, as
      custodian for DTC, duly executed by the Issuer and authenticated by the Trustee
      as hereinafter provided. At any time following the applicable Regulation S
      Global Note Exchange Date, upon receipt by the Trustee and the Issuer of a
      certificate substantially in the form of Exhibit
      F,
      executed by Euroclear or Clearstream, as the case may be, together with copies
      of certificates from Euroclear or Clearstream, as the case may be, certifying
      that it has received certification of non-U.S. beneficial ownership of a
      Temporary Regulation S Global Note (or portion thereof) with respect to any
      Notes to be exchanged, one or more permanent Global Notes for such Notes in
      registered form substantially in the form set forth in the applicable Exhibit
      to
      this Indenture or in any indenture supplemental hereto (each, a “Permanent
      Regulation S Global Note”
and,
      together with each Temporary Regulation S Global Note, the “Regulation
      S Global Notes”)
      duly
      executed by the Issuer and authenticated by the Trustee as hereinafter provided
      shall be deposited with the Trustee, as custodian for DTC, and the Registrar
      shall reflect on its books and records the date and a decrease in the principal
      amount of the Temporary Regulation S Global Note of such class in an amount
      equal to the principal amount of such Temporary Regulation S Global Note
      exchanged. Until the Regulation S Global Note Exchange Date with respect to
      any
      Temporary Regulation S Global Note, Beneficial Interests in such Temporary
      Regulation S Global Note may be held only through Agent Members acting for
      and
      on behalf of Euroclear and Clearstream.

     

    
      
        
        

      

      
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    Notes,
      if
      so provided herein or in any indenture supplemental hereto, shall be issued
      in
      the form of permanent certificated Notes in registered form in substantially
      the
      form set forth in this Section 2.1(b) (collectively with any definitive, fully
      registered Notes issued pursuant to Section 2.10(b), the “Definitive
      Notes”).

     

    (c) Interest
      shall accrue on any class of Fixed Rate Notes from the date of issuance of
      such
      Fixed Rate Notes and shall be computed for each Interest Accrual Period on
      the
      basis of a 360-day year consisting of twelve 30-day months on the Outstanding
      Principal Balance of such Notes. Interest shall accrue on any class of Floating
      Rate Notes from the date of issuance of such Floating Rate Notes and shall
      be
      computed for each Interest Accrual Period on the basis of a 360-day year and
      the
      actual number of days elapsed in such Interest Accrual Period on the Outstanding
      Principal Balance of such Notes. If any interest payment is not made when due
      on
      a Payment Date, the unpaid portion of such interest payment will accrue interest
      at the rate then applicable to the Notes, compounded quarterly, until paid
      in
      full.

     

    (d) On
      the
      date of any Refinancing, the Issuer shall issue and deliver, as provided in
      Section 2.15, an aggregate principal amount of Refinancing Notes having the
      maturities and bearing the interest rates and such other terms authorized by
      one
      or more Manager Resolutions or in any indenture supplemental hereto providing
      for the issuance of such Refinancing Notes or specified in the form of such
      Refinancing Notes, in each case in accordance with Section 2.15.

     

    (e) On
      the
      date of any Class B Issuance, the Issuer shall issue and deliver, as provided
      in
      Section 2.16, an aggregate principal amount of Class B Notes having the
      maturities and bearing the interest rates and such other terms authorized by
      one
      or more Manager Resolutions or in any indenture supplemental hereto providing
      for the issuance of such Class B Notes or specified in the form of such Class
      B
      Notes, in each case in accordance with Section 2.16.

     

    (f) The
      Notes
      shall be executed on behalf of the Issuer by the manual or facsimile signature
      of any individual who at the time such Note was executed was authorized to
      execute such Note by the Manager.

     

    (g) Each
      Note
      bearing the manual or facsimile signature of any individual who at the time
      such
      Note was executed was authorized to execute such Note by the Manager shall
      bind
      the Issuer, notwithstanding that any such individual has ceased to hold such
      authority thereafter but prior to the authentication and delivery of such Notes
      or any payment thereon.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (h) At
      any
      time and from time to time after the execution of any Notes, the Issuer may
      deliver such Notes to the Trustee for authentication and, subject to the
      provisions of Section 2.1(i), the Trustee shall authenticate such Notes by
      manual or facsimile signature upon receipt by it of a written order of the
      Issuer. The Notes shall be authenticated on behalf of the Trustee by any
      Responsible Officer of the Trustee.

     

    (i) No
      Note
      shall be entitled to any benefit under this Indenture or be valid or obligatory
      for any purpose, unless it shall have been executed on behalf of the Issuer
      as
      provided in Section 2.1(f) and authenticated by or on behalf of the Trustee
      as
      provided in Section 2.1(h). Such signatures shall be conclusive evidence that
      such Note has been duly executed and authenticated under this Indenture. Each
      Note shall be dated the date of its authentication.

     

    Section
      2.2 Restrictive
      Legends.
      Each
      Note (and all Notes issued in exchange therefor or upon registration of transfer
      or substitution thereof) shall bear the following legend on the face thereof
      (the “Private
      Placement Legend”):

    
       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

    

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), THE SECURITIES LAWS OF ANY STATE OR THE SECURITIES LAWS OF
      ANY OTHER JURISDICTION, NOR IS SUCH REGISTRATION CONTEMPLATED. NEITHER THIS
      NOTE
      NOR ANY INTEREST HEREIN MAY BE ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED,
      SOLD
      OR OFFERED FOR SALE OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
      UNDER THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION THEREUNDER
      AND
      ANY OTHER APPLICABLE SECURITIES LAW REGISTRATION REQUIREMENTS. EACH PERSON
      WHO
      ACQUIRES OR ACCEPTS THIS NOTE OR AN INTEREST HEREIN BY SUCH ACQUISITION OR
      ACCEPTANCE (1) REPRESENTS THAT (A) IT IS A QUALIFIED INSTITUTIONAL BUYER (AS
      DEFINED IN RULE 144A UNDER THE SECURITIES ACT) AND IS PURCHASING THIS NOTE
      IN A
      TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT,
      (B)
      IT IS AN INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN SUBPARAGRAPH (a) (1),
      (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT (AN “INSTITUTIONAL
      ACCREDITED INVESTOR”), HAS SUFFICIENT KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND
      BUSINESS MATTERS TO BE CAPABLE OF EVALUATING THE MERITS AND RISKS OF THE
      PURCHASE OF THIS NOTE AND IS ABLE AND PREPARED TO BEAR THE ECONOMIC RISK OF
      INVESTING IN AND HOLDING THIS NOTE, (C) IT IS AN INSTITUTIONAL ACCREDITED
      INVESTOR THAT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE
      TRANSACTION IN COMPLIANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE
      SECURITIES ACT OR (D) IT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING
      THIS
      NOTE AFTER THE RESALE RESTRICTION TERMINATION DATE (AS DEFINED BELOW), (2)
      AGREES THAT IT WILL NOT OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE OR AN
      INTEREST HEREIN, EXCEPT (A) TO THE ISSUER OR A SUBSIDIARY THEREOF, (B) FOR
      SO
      LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
      SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
      BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
      INSTITUTIONAL BUYER, TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE
      IN
      RELIANCE ON RULE 144A UNDER THE SECURITIES ACT, (C) TO AN INSTITUTIONAL
      ACCREDITED INVESTOR THAT IS PURCHASING THIS NOTE OR AN INTEREST HEREIN, AS
      THE
      CASE MAY BE, FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
      ACCREDITED INVESTOR FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR
      OFFER
      OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES
      ACT
      OR (D) TO AN INSTITUTIONAL ACCREDITED INVESTOR OUTSIDE THE UNITED STATES IN
      AN
      OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 903 OR 904 OF REGULATION S UNDER
      THE SECURITIES ACT (IF AVAILABLE), IN EACH CASE UNLESS CONSENTED TO BY THE
      ISSUER IN ITS SOLE DISCRETION AND SUCH OFFER, SALE OR OTHER TRANSFER OCCURS
      FOLLOWING (X) THE DATE THAT IS ONE YEAR (OR SUCH SHORTER PERIOD OF TIME AS
      PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION
      THEREUNDER) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR ANY
      PREDECESSOR OF THIS NOTE) AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED
      BY
      APPLICABLE LAW (THE “RESALE RESTRICTION TERMINATION DATE”) AND (3) AGREES THAT
      IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS
      TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; PROVIDED,
      THAT
      THE ISSUER AND THE TRUSTEE SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE
      OR
      TRANSFER PURSUANT TO CLAUSE (2)(C) OR (D) OF THIS PARAGRAPH TO REQUIRE THE
      DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
      SATISFACTORY TO EACH OF THEM TO THE EFFECT THAT THE RELEVANT FOREGOING
      CONDITIONS ARE MET. THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S.
      PERSON” HAVE THE RESPECTIVE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE
      SECURITIES ACT. THE INDENTURE REFERRED TO HEREINAFTER CONTAINS A PROVISION
      REQUIRING THE REGISTRAR APPOINTED THEREUNDER TO REFUSE TO REGISTER ANY TRANSFER
      OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTIONS.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Each
      Note
      shall also bear the following legend on the face thereof:

     

    BY
      ITS
      PURCHASE AND ACCEPTANCE OF THIS NOTE, EACH PURCHASER WILL BE DEEMED TO HAVE
      REPRESENTED AND WARRANTED (A) THAT EITHER (I) NO PLAN ASSETS HAVE BEEN USED
      TO
      PURCHASE THIS NOTE OR (II) TO THE EXTENT THAT PLAN ASSETS ARE USED TO PURCHASE
      THIS NOTE ONE OR MORE STATUTORY OR ADMINISTRATIVE EXEMPTIONS APPLIES SUCH THAT
      THE USE OF PLAN ASSETS TO PURCHASE AND HOLD THIS NOTE WILL NOT CONSTITUTE A
      NON-EXEMPT PROHIBITED TRANSACTION, AND (B) THAT EITHER (X) NO ASSETS OF A
      GOVERNMENTAL, CHURCH OR FOREIGN PLAN HAVE BEEN USED TO PURCHASE SUCH NOTES
      OR
      (Y) TO THE EXTENT SUCH ASSETS ARE USED, NEITHER THE PURCHASE NOR HOLDING OF
      THE
      NOTES WILL CONSTITUTE OR RESULT IN A VIOLATION OF ANY APPLICABLE FEDERAL, STATE,
      LOCAL OR NON-U.S. LAW THAT IS SIMILAR TO THE PROHIBITED TRANSACTION PROVISIONS
      OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE. “PLAN ASSETS” HAS THE
      MEANING GIVEN TO IT BY SECTION 3(42) OF THE EMPLOYEE RETIREMENT INCOME SECURITY
      ACT OF 1974, AS AMENDED (“ERISA”) AND REGULATIONS OF THE U.S. DEPARTMENT OF
      LABOR.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    THIS
      NOTE
      MAY NOT BE RESOLD OR TRANSFERRED EXCEPT AS SET FORTH IN THE INDENTURE REFERRED
      TO HEREINAFTER, AND, IN ADDITION, EACH PERSON WHO ACQUIRES OR ACCEPTS THIS
      NOTE
      OR AN INTEREST HEREIN BY SUCH ACQUISITION OR ACCEPTANCE AGREES THAT IT SHALL
      CAUSE ANY PROPOSED TRANSFEREE TO EXECUTE A RESALE CONFIDENTIALITY AGREEMENT
      IN
      THE FORM ATTACHED AS EXHIBIT B TO SUCH INDENTURE AND DELIVER SUCH RESALE
      CONFIDENTIALITY AGREEMENT TO THE REGISTRAR (AS DEFINED IN SUCH INDENTURE) AND
      FURTHER AGREES TO OTHERWISE COMPLY WITH THE TRANSFER RESTRICTIONS SET FORTH
      IN
      SUCH INDENTURE, INCLUDING SECTION 2.11 THEREOF, AND FURTHER ACKNOWLEDGES AND
      AGREES TO THE PROVISIONS SET FORTH IN SECTION 2.5 OF SUCH INDENTURE.

     

    Each
      Note
      shall also bear the following legend on the face thereof:

     

    BY
      ITS
      ACQUISITION HEREOF, THE HOLDER ACKNOWLEDGES THAT THIS NOTE (OR ANY BENEFICIAL
      INTEREST THEREIN) MAY NOT BE EXCHANGED OR TRANSFERRED IF, IMMEDIATELY AFTER
      SUCH
      EXCHANGE OR TRANSFER, THERE WOULD BE MORE THAN 95 NOTEHOLDERS (IN THE CASE
      OF
      NOTES THAT ARE DEFINITIVE NOTES) OR BENEFICIAL HOLDERS (IN THE CASE OF NOTES
      THAT ARE GLOBAL NOTES) OF NOTES, AND ANY SUCH PURPORTED EXCHANGE OR TRANSFER
      SHALL BE VOID AB INITIO.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Each
      Global Note shall also bear the following legend on the face
      thereof:

     

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

     

    TRANSFERS
      OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
      NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE
      AND TRANSFERS OF PORTIONS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
      ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.11 OF THE INDENTURE
      REFERRED TO HEREINAFTER.

     

    Each
      Temporary Regulation S Global Note shall also bear the following legend on
      the
      face thereof:

     

    THIS
      NOTE
      IS A TEMPORARY REGULATION S GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
      REFERRED TO HEREINAFTER AND IS SUBJECT TO RESTRICTIONS ON THE TRANSFER AND
      EXCHANGE THEREOF AND ON THE PAYMENT OF INTEREST THEREON AS SPECIFIED IN THE
      INDENTURE REFERRED TO HEREINAFTER.

     

    Section
      2.3 Registrar
      and Paying Agent.

     

    (a) With
      respect to each class of Notes, there shall at all times be maintained an office
      or agency in the location set forth in Section 12.5 where the Notes of such
      class may be presented or surrendered for registration of transfer or for
      exchange (including any additional registrar, each, a “Registrar”)
      and
      for payment thereof (including any additional paying agent, each, a
“Paying
      Agent”)
      and
      where notices and demands to or upon the Issuer in respect of such Notes may
      be
      served. The Trustee shall be the initial Paying Agent and Registrar, and the
      Issuer shall not be permitted to act as a Paying Agent or a Registrar. The
      Issuer shall cause each Registrar to keep a register of such class of Notes
      for
      which it is acting as Registrar and of their transfer and exchange (the
“Register”).
      Written notice of the location of each such other office or agency and of any
      change of location thereof shall be given by the Trustee to the Issuer and
      the
      Noteholders of such class of Notes. In the event that no such office or agency
      shall be maintained or no such notice of location or of change of location
      shall
      be given, presentations and demands may be made and notices may be served at
      the
      Corporate Trust Office.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (b) Each
      Authorized Agent in the location set forth in Section 12.5 shall be a bank,
      trust company or corporation organized and doing business under the laws of
      the
      U.S., any state or territory thereof or of the District of Columbia, with a
      combined capital and surplus of at least $75,000,000 (or having a combined
      capital and surplus in excess of $5,000,000 and the obligations of which,
      whether now in existence or hereafter incurred, are fully and unconditionally
      Guaranteed by a bank, trust company or corporation organized and doing business
      under the laws of the U.S., any state or territory thereof or of the District
      of
      Columbia and having a combined capital and surplus of at least $75,000,000)
      and
      shall be authorized under the laws of the U.S., any state or territory thereof
      or the District of Columbia to exercise corporate trust powers, subject to
      supervision by federal or state authorities (such requirements, the
“Eligibility
      Requirements”).
      Each
      Registrar other than the Trustee shall furnish to the Trustee, at least five
      Business Days prior to each Payment Date, and at such other times as the Trustee
      may request in writing, a copy of the Register maintained by such
      Registrar.

     

    (c) Any
      Person into which any Authorized Agent may be merged or converted or with which
      it may be consolidated, or any Person resulting from any merger, consolidation
      or conversion to which any Authorized Agent shall be a party, or any Person
      succeeding to all or substantially all of the corporate trust business of any
      Authorized Agent (including the administration of the fiduciary relationship
      contemplated by this Indenture), shall be the successor of such Authorized
      Agent
      hereunder, if such successor corporation is otherwise eligible under this
      Section 2.3, without the execution or filing of any paper or any further act
      on
      the part of the parties hereto or such Authorized Agent or such successor
      Person.

     

    (d) Any
      Authorized Agent may at any time resign by giving written notice of resignation
      to the Trustee and the Issuer. The Issuer may, and at the request of the Trustee
      shall, at any time terminate the agency of any Authorized Agent by giving
      written notice of termination to such Authorized Agent and to the Trustee.
      Upon
      the resignation or termination of an Authorized Agent or if at any time any
      such
      Authorized Agent shall cease to be eligible under this Section 2.3 (when, in
      either case, no other Authorized Agent performing the functions of such
      Authorized Agent shall have been appointed by the Trustee), the Issuer shall
      promptly appoint one or more qualified successor Authorized Agents, reasonably
      satisfactory to the Trustee, to perform the functions of the Authorized Agent
      that has resigned or whose agency has been terminated or who shall have ceased
      to be eligible under this Section 2.3. The Issuer shall give written notice
      of
      any such appointment made by it to the Trustee, and in each case the Trustee
      shall mail notice of such appointment to all Noteholders of the related class
      of
      Notes as their names and addresses appear on the Register for such class of
      Notes.

     

    (e) The
      Issuer agrees to pay, or cause to be paid, from time to time to each Authorized
      Agent reasonable compensation for its services and to reimburse it for its
      reasonable expenses to be agreed to pursuant to separate agreements with each
      such Authorized Agent.

     

    Section
      2.4 Paying
      Agent to Hold Money in Trust.
      The
      Trustee shall require each Paying Agent other than the Trustee to agree in
      writing that all moneys deposited with any Paying Agent for the purpose of
      any
      payment on the Notes shall be deposited and held in trust for the benefit of
      the
      Noteholders entitled to such payment, subject to the provisions of this Section
      2.4. Moneys so deposited and held in trust shall constitute a separate trust
      fund for the benefit of the Noteholders with respect to which such money was
      deposited.

     

    
      
        
        

      

      
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    The
      Trustee may at any time, for the purpose of obtaining the satisfaction and
      discharge of this Indenture or for any other purpose, direct any Paying Agent
      to
      pay to the Trustee all sums held in trust by such Paying Agent, and, upon such
      payment by any Paying Agent to the Trustee, such Paying Agent shall be released
      from all further liability with respect to such money.

     

    Section
      2.5 Method
      of Payment.

     

    (a) On
      each
      Payment Date, the Trustee shall, or shall instruct a Paying Agent to, pay,
      to
      the extent of the Available Collections Amount for such Payment Date and any
      funds withdrawn from the Interest Reserve Account or the Capital Account by
      the
      Trustee pursuant to Section 3.8, to the Noteholders all interest, principal
      and
      Premium, if any, on each class of Notes in the amounts determined by the
      Calculation Agent pursuant to Section 3.5; provided,
      that
      payment on a Temporary Regulation S Global Note shall be made to the Noteholder
      thereof only in conformity with Section 2.5(c) and payment on any Note may
      be
      deferred as provided in Section 2.5(d). Each payment on any Payment Date other
      than the final payment with respect to any class of Notes shall be made by
      the
      Trustee or Paying Agent to the Noteholders as of the Record Date for such
      Payment Date. The final payment with respect to any class of Notes, however,
      shall be made only upon presentation and surrender of such Note by the
      Noteholder or its agent at an office or agency of the Trustee or Paying Agent
      in
      New York City.

     

    (b) At
      such
      time, if any, as the Notes of any class are issued in the form of Definitive
      Notes, payments on a Payment Date shall be made by check mailed to each
      Noteholder of a Definitive Note on the applicable Record Date at its address
      appearing on the Register maintained with respect to such class of Notes.
      Alternatively, upon application in writing to the Trustee, not later than the
      applicable Record Date, by a Noteholder, subject to Section 2.5(d), any such
      payments shall be made by wire transfer to an account designated by such
      Noteholder at a financial institution in New York City; provided,
      that
      the final payment for any class of Notes shall be made only upon presentation
      and surrender of the Definitive Notes of such class by the Noteholder or its
      agent at an office or agency of the Trustee or Paying Agent in New York
      City.
      Payments
      in respect of the Notes represented by a Global Note (including principal,
      Premium, if any, and interest) shall be made by wire transfer of immediately
      available funds to the account specified by DTC at a financial institution
      in
      New York City.

     

    (c) The
      beneficial owner of a Temporary Regulation S Global Note may arrange to receive
      payments through Euroclear or Clearstream on such Temporary Regulation S Global
      Note only after delivery by such beneficial owner to Euroclear or Clearstream,
      as the case may be, of a written certification substantially in the form of
      Exhibit
      G
      and upon
      delivery by Euroclear or Clearstream, as the case may be, to the Paying Agent
      of
      a certification or certifications substantially in the form of Exhibit
      H.
      No
      interest shall be paid to any beneficial owner and no interest shall be paid
      to
      Euroclear or Clearstream on such beneficial owner’s interest in a Temporary
      Regulation S Global Note unless Euroclear or Clearstream, as the case may be,
      has provided such a certification to the Paying Agent with respect to such
      interest.

     

    
      
        
        

      

      
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    (d) Not
      later
      than five Business Days prior to each Payment Date or any other date on which
      a
      Distribution Report is to be distributed to Noteholders and Beneficial Holders
      pursuant to Section 2.13(a), the Registrar shall use commercially reasonable
      efforts to (i) prepare a list (the “Approved
      Holder List”)
      of
      each Noteholder and Beneficial Holder as of the related Record Date that has
      executed and delivered to the Registrar a Confidentiality Agreement, (ii) obtain
      from DTC a list (the “DTC
      List”)
      of the
      Agent Members holding Beneficial Interests in the Notes as of such Record Date,
      (iii) obtain from each such Agent Member as of such Record Date the
      corresponding Beneficial Holders of the Beneficial Interests held by each such
      Agent Member set forth on the DTC List as of such Record Date and prepare a
      list
      thereof and of the Beneficial Interests owned by each such Beneficial Holder
      (the “Actual
      Beneficial Holder List”),
      (iv)
      prepare a list (the “Escrow
      List”),
      if
      necessary, that identifies any differences between (x) the Noteholders and
      Beneficial Holders listed on the Approved Holder List and (y)(A) the Noteholders
      of Definitive Notes set forth in the Register and (B) the Beneficial Holders
      listed on the Actual Beneficial Holder List (or those Beneficial Holders that
      the Registrar actually knows have not executed and delivered to the Registrar
      Confidentiality Agreements), in each case as of such Record Date, and (v)
      provide the Approved Holder List, the DTC List, the Actual Beneficial Holder
      List and any Escrow List to the Issuer, the Servicer and the Trustee. Each
      Noteholder, Agent Member and Beneficial Holder hereby agrees, acknowledges
      and
      consents that (I) with respect to a Noteholder of any Notes (other than DTC
      or
      its nominee) that as of such Record Date has not executed and delivered to
      the
      Registrar a Confidentiality Agreement and, therefore, is listed on the Escrow
      List, the Trustee promptly (but in no event less than three Business Days prior
      to the applicable Payment Date) shall use commercially reasonable efforts to
      notify such Noteholder of such failure and, on the applicable Payment Date,
      cause any payment of principal, Premium, if any, or interest on such Notes
      to be
      paid directly to the Escrow Account and (II) with respect to a Beneficial Holder
      of any Beneficial Interest in a Note that as of such Record Date has not
      executed and delivered to the Registrar a Confidentiality Agreement and,
      therefore, is listed on the Escrow List, the Trustee promptly (but in no event
      less than three Business Days prior to the applicable Payment Date) shall use
      commercially reasonable efforts to cause the Beneficial Interest of such
      Beneficial Holder to be transferred into the name of the Trustee (including
      the
      Trustee acting as an Agent Member with respect to such Beneficial Interests)
      and
      shall use commercially reasonable efforts to cause any payment of principal,
      Premium, if any, or interest on such Notes or Beneficial Interests received
      on
      such Payment Date to be deposited into the Escrow Account upon receipt thereof;
      provided,
      that
      the Record Date for purposes of receiving such payments only and with respect
      only to such Beneficial Holder shall be changed to the Business Day immediately
      prior to the related Payment Date. Upon receipt by the Trustee and the Issuer
      of
      written notice from the Registrar that the applicable Noteholder or Beneficial
      Holder has executed and delivered to the Registrar a Confidentiality Agreement,
      the Trustee will distribute such amounts, without interest, from the Escrow
      Account to the Trustee for distribution to each such Noteholder or Beneficial
      Holder, but prior to the receipt thereof the Trustee shall be authorized to
      treat such purported Noteholder or Beneficial Holder as not being a Noteholder
      or Beneficial Holder, as the case may be, for purposes of this
      Indenture.

     

    (e) Subject
      to the application of Section 3.7(b) in respect of the next Payment Date, to
      the
      extent that the full amount of any interest due on the Class A Notes is not
      paid
      in full on any Payment Date and funds are deposited into the Collection Account
      following such Payment Date but prior to the third Business Day prior to the
      immediately succeeding Calculation Date, notwithstanding anything to the
      contrary in this Indenture, the Trustee shall use such funds to pay to the
      Noteholders of record the overdue interest together with Additional Interest
      on
      such overdue interest on or before the third Business Day after such funds
      are
      deposited; provided,
      that
      all Expenses with respect to such preceding Payment Date contemplated by Section
      3.7(a)(i) shall have been paid. With each such payment the Trustee shall furnish
      a brief statement to Noteholders eligible to receive Distribution Reports in
      accordance with this Indenture indicating the aggregate amount of funds received
      and the balance of overdue interest (and interest thereon) to which the payment
      is being applied. Subject to Section 2.5(d), any such payment shall be made
      to
      the Noteholders of record as of the third Business Day preceding the date of
      each such payment. Any funds that are deposited on or after the third Business
      Day prior to the immediately succeeding Calculation Date shall be held in the
      Collection Account and applied in accordance with this Indenture on the next
      succeeding Payment Date.

     

    
      
        
        

      

      
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    Section
      2.6 Minimum
      Denominations.
      Each
      class of Notes shall be issued in minimum denominations of $1,000,000 or
      integral multiples of $1,000 in excess thereof.

     

    Section
      2.7 Transfer
      and Exchange; Cancellation.
      The
      Notes are issuable only in fully registered form without coupons. A Noteholder
      or a Beneficial Holder may transfer a Note or a Beneficial Interest therein
      only
      by written application to the Registrar stating the name of the proposed
      transferee and otherwise complying with the terms of this Indenture, including
      the requirement for the execution and delivery of a Confidentiality Agreement
      by
      such proposed transferee to the Registrar relating to such transfer as set
      forth
      in Section 2.11(j). No such transfer shall be effected until, and such proposed
      transferee shall succeed to the rights of a Noteholder or a Beneficial Holder
      only upon, final acceptance and registration of the transfer by the Registrar
      and confirmation by the Registrar pursuant to Section 2.11(j) that such
      Noteholder or such Beneficial Holder has executed and delivered an appropriate
      Confidentiality Agreement to the Registrar.

     

    Prior
      to
      the due presentment for registration of transfer of a Note and satisfaction
      of
      the requirements specified in the last sentence of the preceding paragraph,
      the
      Issuer and the Trustee may deem and treat the applicable registered Noteholder
      as the absolute owner and holder of such Note for the purpose of receiving
      payment of all amounts payable with respect to such Note and for all other
      purposes and shall not be affected by any notice to the contrary. The Registrar
      (if different from the Trustee) shall promptly notify the Trustee in writing
      and
      the Trustee shall promptly notify the Issuer of each request for a registration
      of transfer of a Note by furnishing the Issuer a copy of such
      request.

     

    Furthermore,
      any Noteholder of a Global Note shall, by acceptance of such Global Note, agree
      that, subject to Section 2.10(b) and Section 2.11, transfers of Beneficial
      Interests in such Global Note may be effected only through a book-entry system
      maintained by the Noteholder of such Global Note (or its agent) and that
      ownership of a Beneficial Interest in such Global Note shall be required to
      be
      reflected in a book-entry system. When Notes are presented to the Registrar
      with
      a request to register the transfer or to exchange them for an equal principal
      amount of Notes of other authorized denominations, the Registrar shall register
      the transfer or make the exchange as requested if its requirements for such
      transactions are met (including, in the case of a transfer, that such Notes
      are
      duly endorsed or accompanied by a written instrument of transfer in form
      satisfactory to the Trustee and Registrar duly executed by the Noteholder
      thereof or by an attorney who is authorized in writing to act on behalf of
      the
      Noteholder). To permit registrations of transfers and exchanges, the Issuer
      shall execute and the Trustee shall authenticate Notes at the Registrar’s
      request. Except as set forth in Section 2.8 and Section 2.9, no service charge
      shall be made for any registration of transfer or exchange or redemption of
      the
      Notes.

     

    
      
        
        

      

      
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    The
      Registrar shall not be required to exchange or register the transfer of any
      Notes as above provided during the 15-day period preceding the Final Legal
      Maturity Date of any such Notes or during a 15-day period preceding the first
      mailing of any notice of Redemption or Refinancing of Notes to be redeemed
      or
      refinanced. The Registrar shall not be required to exchange or register the
      transfer of any Notes that have been selected, called or are being called for
      Redemption or Refinancing except, in the case of any Notes where written notice
      has been given that such Notes are to be redeemed in part, the portion thereof
      not so to be redeemed.

     

    The
      Issuer at any time may deliver Notes to the Trustee for cancellation. The
      Trustee and no one else shall cancel and destroy in accordance with its
      customary practices in effect from time to time (subject to the record retention
      requirements of the Exchange Act) any such Notes, together with any other Notes
      surrendered to it for registration of transfer, exchange or payment. The Issuer
      may not issue new Notes (other than Refinancing Notes issued in connection
      with
      any Refinancing) to replace Notes it has redeemed, paid or delivered to the
      Trustee for cancellation.

     

    Section
      2.8 Mutilated,
      Destroyed, Lost or Stolen Notes.
      If any
      Note shall become mutilated, destroyed, lost or stolen, the Issuer shall, upon
      the written request of the Noteholder thereof and presentation of the Note
      or
      satisfactory evidence of destruction, loss or theft thereof to the Trustee
      or
      Registrar and a confirmation by the Registrar to the Trustee that such
      Noteholder (or Beneficial Holder of the Beneficial Interest therein) has
      executed and delivered to the Registrar a Confidentiality Agreement, issue,
      and
      the Trustee shall authenticate and the Trustee or Registrar shall deliver in
      exchange therefor or in replacement thereof, a new Note, payable to such
      Noteholder in the same principal amount, of the same maturity, with the same
      payment schedule, bearing the same interest rate and dated the date of its
      authentication. If the Note being replaced has become mutilated, such Note
      shall
      be surrendered to the Trustee or the Registrar and forwarded to the Issuer
      by
      the Trustee or such Registrar. If the Note being replaced has been destroyed,
      lost or stolen, the Noteholder thereof shall furnish to the Issuer, the Trustee
      and the Registrar (a) such security or indemnity as may be required by the
      Issuer, the Trustee and the Registrar to save each of them harmless (an
      unsecured indemnity from any QIB being satisfactory security or indemnity)
      and
      (b) evidence satisfactory to the Issuer, the Trustee and the Registrar of the
      destruction, loss or theft of such Note and of the ownership thereof (an
      affidavit from any QIB being satisfactory evidence). The Noteholders will be
      required to pay any Tax or other governmental charge imposed in connection
      with
      such exchange or replacement and any other expenses (including the fees and
      expenses of the Trustee and the Registrar) connected therewith.

     

    Section
      2.9 Payments
      of Transfer Taxes.
      Upon
      the transfer of any Note or Notes pursuant to Section 2.7, the Issuer or the
      Trustee may require from the party requesting such new Note or Notes payment
      of
      a sum to reimburse the Issuer or the Trustee for, or to provide funds for the
      payment of, any transfer Tax or similar governmental charge payable in
      connection therewith.

     

    
      
        
        

      

      
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    Section
      2.10 Book-Entry
      Provisions.

     

    (a) Global
      Notes shall (i) be registered in the name of DTC or a nominee of DTC, (ii)
      be
      delivered to the Trustee as custodian for DTC and (iii) bear the Private
      Placement Legend. In accordance with the requirements of DTC, the Issuer will
      cause the Trustee to authenticate an additional Global Note or additional Global
      Notes in the appropriate principal amount such that no Global Note may exceed
      an
      aggregate principal amount of $500,000,000 at any time.

     

    Members
      of, or participants in, DTC (“Agent
      Members”)
      shall
      have no rights under this Indenture with respect to any Global Note held on
      their behalf by DTC, or the Trustee as its custodian, or under such Global
      Note,
      and DTC may be treated by the Issuer, the Trustee and any agent of the Issuer
      or
      the Trustee as the absolute owner of such Global Note for all purposes
      whatsoever.

     

    Whenever
      notice or other communication to the Noteholders of any class of Global Notes
      is
      required under this Indenture, unless and until Definitive Notes shall have
      been
      issued pursuant to Section 2.10(b), the Trustee shall give all such notices
      and
      communications specified herein to be given to Noteholders of such class of
      Global Notes to DTC and/or the Agent Members, and shall make available
      additional copies as requested by such Agent Members, subject to the limitations
      on distribution contained in Section 2.13.

     

    Notwithstanding
      the foregoing, nothing herein shall prevent the Issuer, the Trustee or any
      agent
      of the Issuer or the Trustee from giving effect to any written certification,
      proxy or other authorization furnished by DTC or impair, as between DTC and
      its
      Agent Members, the operation of customary practices governing the exercise
      of
      the rights of a Noteholder under any Global Note. Neither the Issuer nor the
      Trustee shall be liable for any delay by DTC in identifying the Agent Members
      in
      respect of the Global Notes, and the Issuer and the Trustee may conclusively
      rely on, and shall be fully protected in relying on, instructions from DTC
      for
      all purposes (including with respect to the registration and delivery, and
      the
      respective principal amounts, of any Global Notes to be issued).

     

    (b) Transfers
      of a Global Note shall be limited to transfers of such Global Note in whole,
      but
      not in part, to DTC, its successors or their respective nominees. Interests
      of
      Agent Members in a Global Note may be transferred in accordance with the rules
      and procedures of DTC and the provisions of Section 2.11. Except as set forth
      in
      Section 2.11(a), Definitive Notes shall be issued to the individual Agent
      Members or Beneficial Holders or their nominees in exchange for their Beneficial
      Interests in a Global Note with respect to any class of Notes only if (i) the
      Issuer advises the Trustee in writing that DTC is no longer willing or able
      to
      properly discharge its responsibilities as depositary with respect to such
      class
      of Notes and the Trustee or the Issuer is unable to appoint a qualified
      successor within 90 days of such notice, (ii) the Issuer, at its option, elects
      to terminate the book-entry system through DTC or (iii) during the occurrence
      of
      an Event of Default with respect to such class of Notes, Noteholders of a
      majority of the Outstanding Principal Balance of such class of Notes advise
      the
      Issuer, the Trustee and DTC through the Agent Members in writing that the
      continuation of a book-entry system through DTC (or a successor thereto) is
      no
      longer in the best interests of the Noteholders of such class. Upon the
      occurrence of any event described in the immediately preceding sentence, the
      Trustee shall notify all affected Noteholders of such class, through DTC, of
      the
      occurrence of such event and of the availability of Definitive Notes of such
      class; provided,
      however,
      that in
      no event shall the Temporary Regulation S Global Note be exchanged for
      Definitive Notes prior to the later of (x) the Regulation S Global Note Exchange
      Date and (y) the date of receipt by the Issuer of any certificates determined
      by
      it to be required pursuant to Rule 903 or 904 under the Securities Act. Upon
      surrender to the Trustee of the Global Notes of such class held by DTC,
      accompanied by registration instructions from DTC for registration of Definitive
      Notes, the Issuer shall issue and the Trustee shall authenticate and deliver
      the
      Definitive Notes of such class to the Agent Members and Beneficial Holders
      of
      such class or their nominees in accordance with the instructions of
      DTC.

     

    
      
        
        

      

      
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    None
      of
      the Issuer, the Registrar, the Paying Agent or the Trustee shall be liable
      for
      any delay in delivery of such instructions and may conclusively rely on, and
      shall be fully protected in relying on, such registration instructions. Upon
      the
      issuance of Definitive Notes of such class, the Trustee shall recognize the
      Persons in whose name the Definitive Notes are registered in the Register as
      Noteholders hereunder. Neither the Issuer nor the Trustee shall be liable if
      the
      Trustee or the Issuer is unable to locate a qualified successor to
      DTC.

     

    Definitive
      Notes of any class will be freely transferable and exchangeable for Definitive
      Notes of the same class at the office of the Trustee or the office of the
      Registrar upon compliance with the requirements set forth herein. In the case
      of
      a transfer of only part of a holding of Definitive Notes, a new Definitive
      Note
      shall be issued to the transferee in respect of the part transferred and a
      new
      Definitive Note in respect of the balance of the holding not transferred shall
      be issued to the transferor and may be obtained at the office of the applicable
      Registrar.

     

    (c) Any
      Beneficial Interest in one of the Global Notes as to any class that is
      transferred to a Person who takes delivery in the form of an interest in another
      Global Note will, upon transfer, cease to be an interest in such Global Note
      and
      become an interest in such other Global Note and, accordingly, will thereafter
      be subject to all transfer restrictions, if any, and other procedures applicable
      to Beneficial Interests in such other Global Note for as long as it remains
      such
      an interest.

     

    (d) Any
      Definitive Note delivered in exchange for an interest in a Global Note pursuant
      to Section 2.10(b) shall bear the Private Placement Legend applicable to a
      Global Note.

     

    Section
      2.11 Special
      Transfer Provisions.

     

    (a) The
      following provisions shall apply with respect to any proposed transfer of a
      Beneficial Interest in a 144A Global Note, a Permanent Regulation S Global
      Note
      or a Definitive Note to any Institutional Accredited Investor that is not a
      QIB
      (excluding Non-U.S. Persons) prior to the Resale Restriction Termination
      Date:

     

    (i) The
      Registrar shall register the transfer of any Definitive Note if the proposed
      transferee has delivered to the Registrar (A) a certificate substantially in
      the
      form of Exhibit
      J
      (such
      certificate also to be delivered to the Issuer), (B) an Opinion of Counsel
      acceptable to the Issuer that such transfer is in compliance with the Securities
      Act and (C) a Confidentiality Agreement duly executed by such
      transferee.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (ii) If
      the
      proposed transferor is an Agent Member holding a Beneficial Interest in a 144A
      Global Note or a Permanent Regulation S Global Note, upon receipt by the
      Registrar of (A) the documents required by Section 2.11(a)(i), including the
      Confidentiality Agreement, and (B) instructions given in accordance with DTC’s
      and the Registrar’s procedures, the Registrar shall reflect on its books and
      records the date and a decrease in the principal amount of the 144A Global
      Note
      or the Permanent Regulation S Global Note, as the case may be, in an amount
      equal to the principal amount of the Beneficial Interest in the Global Note
      to
      be transferred, and the Issuer shall execute, and the Trustee shall authenticate
      and deliver, one or more Definitive Notes of like tenor and amount.

     

    (b) The
      following provisions shall apply with respect to any proposed transfer of a
      Beneficial Interest in a 144A Global Note, a Permanent Regulation S Global
      Note
      or a Definitive Note to a QIB (excluding Non-U.S. Persons) prior to the Resale
      Restriction Termination Date:

     

    (i) If
      the
      Note to be transferred consists of (A) Definitive Notes, the Registrar shall
      reflect the transfer on its books and records if such transfer is being made
      by
      a proposed transferor who has delivered such Note and checked the box provided
      for on the form of Note stating, or has otherwise advised the Issuer and the
      Registrar in writing, that the sale has been made in compliance with the
      provisions of Rule 144A to a transferee who has signed the certification
      provided for on the form of Note stating, or has otherwise advised the Issuer
      and the Registrar in writing, that (w) it is purchasing the Note for its own
      account or an account with respect to which it exercises sole investment
      discretion and that it and any such account are QIBs within the meaning of
      Rule
      144A, (x) it is or such QIBs are aware that the sale to it or them is being
      made
      in reliance on Rule 144A and acknowledge that it has or they have received
      such
      information regarding the Issuer as it has or they have requested pursuant
      to
      Rule 144A or has or have determined not to request such information, (y) it
      is
      or such QIBs are aware that the transferor is relying upon the foregoing
      representations in order to claim the exemption from registration provided
      by
      Rule 144A and (z) it has and all such QIBs have duly executed and delivered
      to
      the Registrar a Confidentiality Agreement or (B) a Beneficial Interest in a
      144A
      Global Note, the transfer of such Beneficial Interest may be effected only
      through the book-entry system maintained by DTC and to the extent provided
      in
      the agreement with DTC, and, in each case, each transferee has delivered to
      the
      Registrar a Confidentiality Agreement duly executed by such
      transferee.

     

    (ii) If
      the
      proposed transferee is an Agent Member, and the Note to be transferred is a
      Definitive Note, upon receipt by the Registrar of the documents referred to
      in
      Section 2.11(b)(i), including the Confidentiality Agreement, and instructions
      given in accordance with DTC’s and the Registrar’s procedures, the Registrar
      shall reflect on its books and records the date and an increase in the principal
      amount at maturity of the 144A Global Note in an amount equal to the principal
      amount at maturity of the Definitive Note to be transferred, and the Trustee
      shall cancel the Definitive Note so transferred (upon written direction from
      the
      Registrar if different from the Trustee).

     

    
      
        
        

      

      
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    (iii) If
      the
      proposed transferee is an Agent Member, and the Note to be transferred is
      represented by a Beneficial Interest in a Permanent Regulation S Global Note,
      upon receipt by the Registrar of the documents referred to in Section
      2.11(b)(i), including the Confidentiality Agreement, and instructions given
      in
      accordance with DTC’s and the Registrar’s procedures, the Registrar shall
      reflect on its books and records the date and a decrease in the principal amount
      of the Permanent Regulation S Global Note in an amount equal to the principal
      amount of the Beneficial Interest in the Permanent Regulation S Global Note
      to
      be transferred, and the Registrar shall reflect on its books and records an
      increase in the principal amount of the 144A Global Note in an amount equal
      to
      such transferred amount.

     

    (c) With
      respect to any proposed transfer of a Beneficial Interest in a Temporary
      Regulation S Global Note to an Institutional Accredited Investor prior to the
      Resale Restriction Termination Date, the Registrar shall reflect on its books
      and records the transfer of such Beneficial Interest (A) if the proposed
      transferee is a Non-U.S. Person, the proposed transferor has delivered to the
      Registrar a certificate substantially in the form of Exhibit
      I
      (such
      certificate also to be delivered to the Issuer) and the proposed transferee
      has
      duly executed and delivered to the Registrar a Confidentiality Agreement (in
      which case the transferee will receive a corresponding Beneficial Interest
      in
      the Temporary Regulation S Global Note) or (B) if the proposed transferee is
      a
      QIB and the proposed transferor has checked the box provided for on the form
      of
      Note stating, or has otherwise advised the Issuer and the Registrar in writing,
      that the sale has been made in compliance with the provisions of Rule 144A
      to a
      transferee who has signed the certification provided for on the form of Note
      stating, or has otherwise advised the Issuer and the Registrar in writing,
      that
      (w) it is purchasing the Note (or the Beneficial Interest therein) for its
      own
      account or an account with respect to which it exercises sole investment
      discretion and that it and any such account are QIBs within the meaning of
      Rule
      144A, (x) it is or such QIBs are aware that the sale to it or them is being
      made
      in reliance on Rule 144A and acknowledge that it has or they have received
      such
      information regarding the Issuer as it has or they have requested pursuant
      to
      Rule 144A or has or have determined not to request such information, (y) it
      is
      or such QIBs are aware that the transferor is relying upon the foregoing
      representations in order to claim the exemption from registration provided
      by
      Rule 144A and (z) it has and all such QIBs have duly executed and delivered
      to
      the Registrar a Confidentiality Agreement (in which case the Registrar shall
      reflect on its books and records the date and an increase in the principal
      amount of the 144A Global Note of the relevant class, in an amount equal to
      the
      principal amount of the Temporary Regulation S Global Note (or the Beneficial
      Interest therein) of such class to be transferred, and the Trustee shall
      decrease the amount of the Temporary Regulation S Global Note of such class
      (upon written direction from the Registrar if different from the
      Trustee)).

     

    (d) Except
      as
      set forth in Section 2.11(c), prior to the Resale Restriction Termination Date,
      the following provisions shall apply with respect to any transfer of a Note
      (or
      a Beneficial Interest therein) to a Non-U.S. Person:

     

    (i) Except
      as
      set forth in Section 2.11(c), prior to the applicable Regulation S Global Note
      Exchange Date, the Registrar shall not register or reflect on its books and
      records any proposed transfer of a Note (or a Beneficial Interest therein)
      to a
      Non-U.S. Person.

     

    
      
        
        

      

      
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    (ii) The
      Registrar shall register or reflect on its books and records, as the case may
      be, any proposed transfer of a Note (or a Beneficial Interest therein) to any
      Non-U.S. Person that is an Institutional Accredited Investor if the Note to
      be
      transferred is a Definitive Note or a Beneficial Interest in a 144A Global
      Note,
      upon receipt of a certificate substantially in the form of Exhibit
      I
      from the
      proposed transferor and a Confidentiality Agreement duly executed and delivered
      to the Registrar by such Non-U.S. Person that is an Institutional Accredited
      Investor.

     

    (iii) (A)
      If
      the proposed transferor is an Agent Member holding a Beneficial Interest in
      a
      144A Global Note, upon receipt by the Registrar of (x) the documents, if any,
      required by Section 2.11(d)(ii) and (y) instructions in accordance with DTC’s
      and the Registrar’s procedures, the Registrar shall reflect on its books and
      records the date and a decrease in the principal amount of the 144A Global
      Note
      in an amount equal to the principal amount of the Beneficial Interest in such
      144A Global Note to be transferred, and (B) if the proposed transferee is an
      Agent Member, upon receipt by the Registrar of instructions given in accordance
      with DTC’s and the Registrar’s procedures, the Registrar shall reflect on its
      books and records the date and an increase in the principal amount of the
      Permanent Regulation S Global Note of the relevant class in an amount equal
      to
      the principal amount of the Beneficial Interest in such 144A Global Note or
      any
      Definitive Notes issued in exchange for such Beneficial Interest in such 144A
      Global Note to be transferred, and the Trustee shall cancel the Definitive
      Note,
      if any, so transferred or decrease the amount of the 144A Global Note (upon
      written direction from the Registrar if different from the
      Trustee).

     

    (e) With
      respect to any proposed transfer of any Note (or a Beneficial Interest therein)
      after the Resale Restriction Termination Date, the Registrar shall reflect
      the
      transfer of such Note or Beneficial Interest on its books and records (along
      with any appropriate increase or decrease in the principal amount at maturity
      of
      any Global Note upon receipt by the Registrar of instructions given in
      accordance with DTC’s and the Registrar’s procedures) if the proposed transferee
      has duly executed and delivered to the Registrar a Confidentiality
      Agreement.

     

    (f) Upon
      the
      transfer, exchange or replacement of Notes bearing the Private Placement Legend,
      the Registrar shall deliver only Notes that bear the Private Placement
      Legend.

     

    (g) By
      its
      acceptance of any Note bearing the Private Placement Legend, each Noteholder
      of
      such Note acknowledges the restrictions on transfer of such Note set forth
      in
      this Indenture and in the Private Placement Legend and agrees that it will
      transfer such Note (or the Beneficial Interest therein) only as provided in
      this
      Indenture and in accordance with the Private Placement Legend. The Registrar
      shall not register or reflect on its books and records a transfer of any Note
      (or any Beneficial Interest therein) unless such transfer complies with the
      restrictions on transfer of such Note set forth in this Indenture and in
      accordance with the Private Placement Legend. In connection with any transfer
      of
      Notes (or Beneficial Interests therein), each Noteholder (or Beneficial Holder)
      agrees by its acceptance of the Notes (or Beneficial Interests therein) to
      furnish the Trustee the certifications and legal opinions described herein
      to
      confirm that such transfer is being made pursuant to an exemption from, or
      a
      transaction not subject to, the registration requirements of the Securities
      Act;
provided,
      that
      the Trustee shall not be required to determine (but may rely on a determination
      made by the Issuer with respect to) the sufficiency of any such legal
      opinions.

     

    
      
        
        

      

      
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    (h) The
      Notes
      shall be issued pursuant to an exemption from registration under the Securities
      Act. The Issuer agrees that it will not at any time (i) apply to list, list
      or
      list upon notice of issuance, (ii) consent to or authorize an application for
      the listing or the listing of, or (iii) enable or authorize the trading of,
      the
      Notes on an established securities market, including (w) a national securities
      exchange registered under the Exchange Act or exempted from registration because
      of the limited volume of transactions, (x) a foreign securities exchange that,
      under the law of the jurisdiction where it is organized, satisfies regulatory
      requirements that are analogous to the regulatory requirements under the
      Exchange Act applicable to exchanges described in Section 2.11(h)(w), (y) a
      regional or local exchange or (z) an over-the-counter market, as the term
“established securities market” and the terms in this Section 2.11(h) are
      defined for purposes of Section 7704 of the Code.

     

    (i) The
      Trustee shall retain copies of all letters, notices and other written
      communications received pursuant to Section 2.10 or this Section 2.11. The
      Issuer shall have the right to inspect and make copies of all such letters,
      notices, Confidentiality Agreements or other written communications at any
      reasonable time upon the giving of reasonable written notice to the
      Trustee.

     

    (j) Each
      Noteholder, Agent Member and Beneficial Holder agrees, by acceptance of any
      Note
      or any Beneficial Interest therein, that it will not take any action to transfer
      any Note (or any Beneficial Interest therein) to a proposed transferee without
      causing such proposed transferee to execute and deliver to the Registrar an
      appropriate Confidentiality Agreement relating to such transfer as set forth
      in
      this Section 2.11. After the Closing Date with respect to the Original Class
      A
      Notes (or the date of issuance with respect to any Class B Notes or any
      Refinancing Notes), forms of Confidentiality Agreements will be available to
      Noteholders, Agent Members and Beneficial Holders and proposed transferees
      of
      the Notes (or the Beneficial Interests therein) from the Registrar, initially
      at
      the Corporate Trust Office. Each such Confidentiality Agreement shall be
      delivered to the Registrar promptly upon execution by the parties thereto and
      the Registrar shall record the receipt of such Confidentiality Agreement. The
      Registrar shall promptly, but in any event no later than two Business Days
      after
      receipt of any such executed Confidentiality Agreement, furnish a copy of such
      executed Confidentiality Agreement to the Trustee, the Issuer and the Servicer
      and shall maintain a list of proposed transferees (including Noteholders and
      Beneficial Holders) who have furnished such executed Confidentiality Agreements,
      whether or not such proposed transferees purchase any Notes (or any Beneficial
      Interests therein), and make such list available for inspection at the request
      of the Trustee, the Issuer or the Servicer.

     

    (k) Notwithstanding
      any other provision contained in this Indenture to the contrary, any Noteholder
      or Beneficial Holder may assign a security interest in, or pledge, all or any
      portion of the Notes (or any interest therein) held by it to a trustee (or
      other
      similar representative) under any indenture, loan agreement or similar agreement
      to which such Noteholder or Beneficial Holder is party in support of any
      obligations of such Noteholder or Beneficial Holder to a holder or holders
      of
      securities or other obligations issued by such Noteholder or Beneficial Holder;
      provided, that no such assignment or pledge shall release the assigning or
      pledging Noteholder or Beneficial Holder from its obligations
      hereunder.

     

    
      
        
        

      

      
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    Section
      2.12 Temporary
      Definitive Notes.
      Pending
      the preparation of Definitive Notes of any class, the Issuer may execute and
      the
      Trustee may authenticate and deliver temporary Definitive Notes of such class
      that are printed, lithographed, typewritten or otherwise produced, in any
      denomination, containing substantially the same terms and provisions as are
      set
      forth in the applicable Exhibit or in any indenture supplemental hereto, except
      for such appropriate insertions, omissions, substitutions and other variations
      relating to their temporary nature as the Manager executing such temporary
      Definitive Notes may determine, as evidenced by his or her execution of such
      temporary Definitive Notes.

     

    If
      temporary Definitive Notes of any class are issued, the Issuer shall cause
      such
      Definitive Notes of such class to be prepared without unreasonable delay. After
      the preparation of Definitive Notes of such class, the temporary Definitive
      Notes shall be exchangeable for Definitive Notes upon surrender of such
      temporary Definitive Notes at the Corporate Trust Office, without charge to
      the
      Noteholder thereof. Upon surrender for cancellation of any one or more temporary
      Definitive Notes of any class, the Issuer shall execute and the Trustee shall
      authenticate and deliver in exchange therefor Definitive Notes of like class,
      in
      authorized denominations and in the same aggregate principal amounts. Until
      so
      exchanged, such temporary Definitive Notes shall in all respects be entitled
      to
      the same benefits under this Indenture as Definitive Notes.

     

    Section
      2.13 Statements
      to Noteholders.

     

    (a) On
      each
      Payment Date and any other date for distribution of any payments with respect
      to
      any class of Notes then Outstanding, the Trustee shall deliver a report,
      covering the information set forth in Exhibit
      D
      and
      prepared by the Servicer, giving effect to such payments (each, a “Distribution
      Report”),
      to
      (i) each Noteholder and
      Beneficial Holder included on the Approved Holder List
      (and not
      to any Noteholder or Beneficial Holder not included on the Approved Holder
      List), (ii) the Issuer, (iii) the Calculation Agent and (iv) the Parent, and
      to
      no other Person. Each Noteholder and Beneficial Holder shall be entitled to
      receive the Distribution Report only if such Noteholder or Beneficial Holder
      has
      executed and delivered to the Registrar a Confidentiality
      Agreement.

     

    (b) Each
      Distribution Report provided to each Noteholder and Beneficial Holder by the
      Trustee for each Payment Date pursuant to Section 2.13(a), commencing May 15,
      2008, shall be accompanied by (i) a statement prepared by the Servicer setting
      forth an analysis of the Collection Account activity for the period commencing
      on the day next following the preceding Calculation Date and ending on the
      Calculation Date relating to such Payment Date, which shall set forth, among
      other things, the aggregate amount payable to Pfizer and certain other third
      parties entitled to royalties in respect of Subject Products set forth in the
      report contemplated by Section 4.1(c)(xi) of the Servicing Agreement, (ii)
      such
      information, if any, that the Parent shall have provided to the Trustee pursuant
      to Section 6.3 of the Purchase and Sale Agreement during
      the Interest Accrual Period then ended
      and
      (iii) the information, if any, that the Issuer shall have provided to the
      Trustee pursuant to Section 5.3 (or the Servicer shall have provided to the
      Trustee pursuant to Section 4.1 of the Servicing Agreement) during the Interest
      Accrual Period then ended.

     

    
      
        
        

      

      
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    (c) After
      the
      end of each calendar year but not later than the latest date permitted by law,
      the Trustee shall (or shall instruct any Paying Agent to) furnish to each Person
      who at any time during such calendar year was a Noteholder of any class of
      Notes
      a statement (for example, a Form 1099 or any other means required by law)
      prepared by the Trustee containing the sum of the amounts determined pursuant
      to
      the information covered by Exhibit
      D
      with
      respect to the class of Notes for such calendar year or, in the event such
      Person was a Noteholder of any class of Notes during only a portion of such
      calendar year, for the applicable portion of such calendar year, and such other
      items as are readily available to the Trustee and that a Noteholder shall
      reasonably request as necessary for the purpose of such Noteholder’s preparation
      of its U.S. federal income or other tax returns. So long as any of the Notes
      are
      registered in the name of DTC or its nominee, such report and such other items
      will be prepared on the basis of such information supplied to the Trustee by
      DTC
      and the Agent Members and will be delivered by the Trustee to DTC and by DTC
      to
      the applicable Beneficial Holders in the manner described above. In the event
      that any such information has been provided by any Paying Agent directly to
      such
      Person through other tax-related reports or otherwise, the Trustee in its
      capacity as Paying Agent shall not be obligated to comply with such request
      for
      information.

     

    (d) At
      such
      time, if any, as the Notes of any class are issued in the form of Definitive
      Notes, the Trustee shall prepare and deliver the information described in
      Section 2.13(c) to each Noteholder of a Definitive Note of such class for the
      relevant period of registered ownership of such Definitive Note as appears
      on
      the books and records of the Trustee, subject to confirmation that each such
      Noteholder has executed and delivered to the Registrar a Confidentiality
      Agreement.

     

    (e) The
      Trustee shall be at liberty to sanction any method of giving notice to the
      Noteholders of any class if, in its opinion, such method is reasonable, having
      regard to the number and identity of the Noteholders of such class and/or to
      market practice then prevailing, is in the best interests of the Noteholders
      of
      such class, and any such notice shall be deemed to have been given on such
      date
      as the Trustee may approve; provided,
      that
      notice of such method is given to the Noteholders of such class in such manner
      as the Trustee shall require.

     

    Section
      2.14 CUSIP,
      CINS, ISIN and Private Placement Numbers.
      The
      Issuer in issuing the Notes may use CUSIP, CINS, ISIN, private placement or
      other identification numbers (if then generally in use), and, if so, the Trustee
      shall use such CUSIP, CINS, ISIN, private placement or other identification
      numbers, as the case may be, in notices of redemption or exchange as a
      convenience to Noteholders; provided,
      that
      any such notice shall state that no representation is made as to the correctness
      of such numbers either as printed on the Notes or as contained in any notice
      of
      redemption or exchange and that reliance may be placed only on the other
      identification numbers printed on the Notes; provided,
      further,
      that
      failure to use CUSIP, CINS, ISIN, private placement or other identification
      numbers in any notice of redemption or exchange shall not affect the validity
      or
      sufficiency of such notice.

     

    
      
        
        

      

      
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    Section
      2.15 Refinancing
      Notes.

     

    (a) Subject
      to Section 2.15(b), Section 2.15(c) and Section 2.15(d), the Issuer may issue
      Refinancing Notes pursuant to this Indenture for the purpose of refinancing
      all
      of the Outstanding Principal Balance of any class of Notes (including a
      refinancing of Refinancing Notes). Each refinancing of any class of Notes with
      the proceeds of an offering of Refinancing Notes (a “Refinancing”)
      shall
      be authorized pursuant to one or more Manager Resolutions. Each Refinancing
      Note
      shall be designated generally as a Note for all purposes under this Indenture,
      with such further designations added or incorporated in such title as specified
      in the related Manager Resolution or in any indenture supplemental hereto
      providing for the issuance of such Notes or specified in the form of such Notes,
      as the case may be. The Refinancing Notes shall be issued on the Payment Date
      on
      which the Redemption in whole of the class of Notes being refinanced is to
      occur
      as provided in Section 3.11.

     

    (b) A
      Refinancing of any class of Notes shall be effected as a Redemption pursuant
      to
      Section 3.10, provided that a Refinancing of the Original Class A Notes shall
      be
      effected as an Optional Redemption pursuant to Section 3.10(b). On the date
      of
      any Refinancing, the Issuer shall issue and sell an aggregate principal amount
      of Refinancing Notes (when added to the Available Collections Amount and any
      funds in the Interest Reserve Account, the Redemption Account or the Capital
      Account used or to be used in connection with such Refinancing) not less than
      the amount sufficient to pay in full the applicable Redemption Price of the
      Notes being refinanced in whole thereby plus the Refinancing Expenses relating
      thereto. The proceeds of each sale of Refinancing Notes shall be used to the
      extent necessary to make the deposit required by Section 3.11 and to pay such
      Refinancing Expenses. Subject to Section 3.11(b), once a notice of a Redemption
      in respect of any Refinancing is published in accordance with Section 3.11(a),
      each class of Notes to which such notice applies shall become due and payable
      on
      the Refinancing Date stated in such notice at their Redemption
      Price.

     

    (c) Each
      Refinancing Note shall contain such terms as may be established in or pursuant
      to the related Manager Resolution (subject to Section 2.1) or in any indenture
      supplemental hereto providing for the issuance of such Notes or specified in
      the
      form of such Notes to the extent permitted below. Prior to the issuance of
      any
      Refinancing Notes, any or all of the following, as applicable, with respect
      to
      the related issue of Refinancing Notes shall have been determined by the Issuer
      and set forth in such Manager Resolution and in any indenture supplemental
      hereto providing for the issuance of such Notes or specified in the form of
      such
      Notes, as the case may be:

     

    (i) the
      class
      of Notes to be refinanced by such Refinancing Notes;

     

    (ii) the
      aggregate principal amount of each class of Refinancing Notes that may be issued
      in respect of such Refinancing;

     

    (iii) the
      proposed date of such Refinancing;

     

    (iv) the
      Final
      Legal Maturity Date of each class of such Refinancing Notes;

     

    
      
        
        

      

      
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    (v) the
      rate
      at which such Refinancing Notes shall bear interest or the method by which
      such
      rate shall be determined;

     

    (vi) the
      denomination or denominations in which any class of such Refinancing Notes
      shall
      be issuable;

     

    (vii) whether
      any such Refinancing Notes are to be issuable initially in temporary or
      permanent global form and, if so, whether beneficial owners of interests in
      any
      such permanent global Refinancing Note may exchange such interests for
      Refinancing Notes of such class and of like tenor of any authorized form and
      denomination and the circumstances under which any such exchanges may occur,
      if
      other than in the manner provided in Section 2.7, and the circumstances under
      which and the place or places where any such exchanges may be made and the
      identity of any initial depositary therefor; and

     

    (viii) any
      other
      terms, conditions, rights and preferences (or limitations on such rights and
      preferences) relating to the class of Refinancing Notes (which terms shall
      comply with Applicable Law and not violate any restrictions of this
      Indenture).

     

    (d) If
      any of
      the terms of any issue of Refinancing Notes are established by action taken
      pursuant to one or more Manager Resolutions, such Manager Resolutions shall
      be
      delivered to the Trustee setting forth the terms of such Refinancing
      Notes.

     

    Section
      2.16 Class
      B Notes.

     

    (a) Subject
      to Section 2.16(b), Section 2.16(c) and Section 2.16(d), the Issuer may issue
      Class B Notes pursuant to this Indenture (a “Class
      B Issuance”)
      for
      any purpose, including, at the option of the Issuer, for the purpose of funding
      a redemption of the Class A Notes, in whole or in part. Each Class B Issuance
      shall be authorized pursuant to one or more Manager Resolutions. Each Class
      B
      Note shall be designated generally as a Note for all purposes under this
      Indenture. Each Class B Note shall have such further designations added or
      incorporated in such title as specified in the related Manager Resolution or
      in
      any indenture supplemental hereto providing for the issuance of such Notes
      or
      specified in the form of such Notes, as the case may be. There are no
      limitations on the use of proceeds from the issuance of such Class B Notes.
      If
      the proceeds of the Class B Notes are being used to redeem the Class A Notes,
      in
      whole or in part, the Class B Notes shall be issued on the Payment Date on
      which
      the Optional Redemption of the Class A Notes being refinanced is to occur as
      provided in Section 3.11.

     

    (b) If
      the
      proceeds of the Class B Notes are being used to redeem any Class A Notes, such
      redemption shall be effected as an Optional Redemption pursuant to Section
      3.10.
      On the date of any such Optional Redemption, the Issuer shall issue and sell
      an
      aggregate principal amount of Class B Notes in an amount not less than the
      amount sufficient to pay in full the applicable Redemption Price of the Notes
      being redeemed thereby plus the Transaction Expenses relating thereto. The
      proceeds of each sale of Class B Notes shall be used to make the deposit
      required by Section 3.11, to the extent applicable, to pay such Transaction
      Expenses and/or for such other purposes, if any, as shall be specified in the
      Manager Resolution authorizing the issuance of such Class B Notes. Subject
      to
      Section 3.11(b), once a notice of Redemption in respect of any Class B Issuance
      is published in accordance with Section 3.11(a), each class of Notes to which
      such notice applies shall become due and payable on the Redemption Date stated
      in such notice at their Redemption Price.

     

    
      
        
        

      

      
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    (c) Each
      Class B Note shall contain such terms as may be established in or pursuant
      to
      the related Manager Resolution (subject to Section 2.1) or in any indenture
      supplemental hereto providing for the issuance of such Notes or specified in
      the
      form of such Notes to the extent permitted herein, and shall be subordinate
      to
      the Class A Notes to the extent provided in this Indenture. Prior to the
      issuance of the Class B Notes, any or all of the following, as applicable,
      with
      respect to the related Class B Issuance shall have been determined by the Issuer
      and set forth in such Manager Resolution and in any indenture supplemental
      hereto or specified in the form of such Class B Notes, as the case may be,
      with
      respect to the Class B Notes to be issued:

     

    (i) the
      aggregate principal amount of any such Class B Notes that may be
      issued;

     

    (ii) the
      proposed date of such Class B Issuance;

     

    (iii) the
      Final
      Legal Maturity Date of any such Class B Notes;

     

    (iv) whether
      any such Class B Notes are to have the benefit of any reserve account and,
      if
      so, the amount and terms thereof;

     

    (v) the
      rate
      at which such Class B Notes shall bear interest or the method by which such
      rate
      shall be determined;

     

    (vi) the
      denomination or denominations in which such Class B Notes shall be
      issuable;

     

    (vii) whether
      any such Class B Notes are to be issuable initially in temporary or permanent
      global form and, if so, whether beneficial owners of interests in any such
      permanent global Class B Note may exchange such interests for Class B Notes
      of
      like tenor and of any authorized form and denomination and the circumstances
      under which any such exchanges may occur, if other than in the manner provided
      in Section 2.7, and the circumstances under which and the place or places where
      any such exchanges may be made and the identity of any initial depositary
      therefor; and

     

    (viii) any
      other
      terms, conditions, rights and preferences (or limitations on such rights and
      preferences) relating to Class B Notes (which terms shall comply with Applicable
      Law and not violate any restrictions of this Indenture).

     

    (d) If
      any of
      the terms of any issue of Class B Notes are established by action taken pursuant
      to one or more Manager Resolutions, such Manager Resolutions shall be delivered
      to the Trustee setting forth the terms of such Class B Notes.

     

    
      
        
        

      

      
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    Section
      2.17 Limitation
      on Number of Holders of Notes.
      The
      Issuer shall not issue, and the Registrar shall not issue, and exchange or
      register the transfer of, any Note, if, immediately after such issuance,
      exchange or transfer, there would be more than 95 Noteholders (for purposes
      of
      Notes that are Definitive Notes) and Beneficial Holders (for purposes of Notes
      that are Global Notes), taken together in the aggregate, and any purported
      exchange or transfer in violation of this Section 2.17 shall be void ab initio
      and result in the purported Noteholder or Beneficial Holder not being treated
      as
      a Noteholder or Beneficial Holder, as the case may be, for purposes of this
      Indenture.

     

    ARTICLE
      III

    ACCOUNTS;
      PRIORITY
      OF PAYMENTS

     

    Section
      3.1 Establishment
      of Accounts.

     

    (a) Pursuant
      to the terms of the Servicing Agreement, the Issuer will cause the Servicer,
      acting on behalf of the Issuer, to establish and maintain with the Operating
      Bank on its books and records in the name of the Issuer, subject to the Liens
      established under this Indenture, (i) a collection account (the “Collection
      Account”),
      (ii)
      if applicable, a redemption account (the “Redemption
      Account”),
      (iii)
      a capital contribution account (the “Capital
      Account”),
      (iv)
      if applicable, an escrow account (the “Escrow
      Account”),
      (v)
      an interest reserve account (the “Interest
      Reserve Account”)
      and
      (vi) any additional accounts the establishment of which is set forth in a
      Manager Resolution delivered by the Issuer to the Servicer and the Trustee,
      in
      each case at such time as is set forth in this Section 3.1 or in such Manager
      Resolution.

     

    (b) Pursuant
      to the terms and conditions of this Indenture, the Issuer has granted to the
      Trustee a security interest in the Collection Account, the Redemption Account,
      the Capital Account, the Escrow Account and the Interest Reserve Account
      (collectively, the “Controlled
      Accounts”)
      and
      all payments deposited in the Controlled Accounts.

     

    (c) The
      Operating Bank acknowledges that (i) the Issuer has granted a security interest
      in all of the Issuer’s right, title and interest in and to any funds from time
      to time on deposit in, and all funds credited to, the Controlled Accounts,
      (ii)
      prior to the satisfaction of the Secured Obligations, the Trustee shall have
      sole dominion and control over the Controlled Accounts (including, among other
      things, the sole power to direct withdrawals or transfers from the Controlled
      Accounts and to direct the investment and reinvestment of funds in the Accounts,
      subject to Section 3.2) and (iii) the Operating Bank shall transfer funds from
      the Controlled Accounts in accordance with the Trustee’s instructions until the
      satisfaction of the Secured Obligations.

     

    (d) The
      Trustee shall make withdrawals and transfers from the Accounts in accordance
      with the terms of this Indenture based on the Relevant Information and as
      calculated by it pursuant to this Indenture. Each of the Issuer and the Trustee
      acknowledges and agrees that each of the Controlled Accounts is a “deposit
      account” within the meaning of Section 9-102 of the UCC, that the Operating Bank
      is acting as a “bank” within the meaning of Section 9-102 of the UCC and that
      the Trustee has “control”, for purposes of Section 9-314 of the UCC, of the
      Controlled Accounts that are maintained with the Operating Bank. The Operating
      Bank agrees that the State of New York shall be deemed to be the “bank’s
      jurisdiction” within the meaning of Section 9-304 of the UCC.

     

    
      
        
        

      

      
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    (e) The
      Issuer agrees that, if any Controlled Account is established or maintained
      with
      any Operating Bank other than the Trustee, the Issuer shall cause (or direct
      the
      Servicer to cause) such Operating Bank to enter into an agreement with the
      Trustee, the Issuer and the Servicer pursuant to which such Operating Bank
      agrees to comply with any and all instructions of the Trustee directing the
      disposition, investment and reinvestment of funds in all Controlled Accounts
      maintained with such Operating Bank without the further consent of the Issuer
      or
      the Servicer, and the Issuer shall take such other actions as are reasonably
      required by the Trustee to establish its “control”, for purposes of Section
      9-314 of the UCC, over any such Accounts.

     

    (f) If,
      at
      any time, any Controlled Account ceases to be an Eligible Account, the Issuer
      will cause the Servicer or an agent thereof, within ten Business Days, to
      establish a new Controlled Account meeting the conditions set forth in this
      Section 3.1 in respect of such Controlled Account and transfer any cash or
      investments in the existing Controlled Account to such new Controlled Account,
      and, from the date such new Controlled Account is established, it shall have
      the
      same designation as the existing Controlled Account. If the Operating Bank
      should change at any time, then the Issuer will cause the Servicer, acting
      on
      behalf of the Issuer, to thereupon promptly establish replacement Controlled
      Accounts as necessary at the successor Operating Bank and transfer the balance
      of funds in each Controlled Account then maintained at the former Operating
      Bank
      pursuant to the terms of the Servicing Agreement to such successor Operating
      Bank.

     

    (g) The
      Issuer will cause the Servicer to establish and maintain the Collection Account
      at the Operating Bank not later than the Closing Date, and the Collection
      Account shall bear a designation clearly indicating that the funds or other
      assets deposited therein are held for the benefit of the Trustee. Except as
      expressly provided herein, all Collections shall be deposited in the Collection
      Account and transferred therefrom in accordance with the terms of this
      Indenture. No funds shall be deposited in the Collection Account that do not
      constitute Collections except as expressly provided in this Indenture without
      the prior written consent of the Trustee.

     

    (h) Upon
      receipt of written notice of a Redemption of any class of Notes, the Issuer
      will
      cause the Servicer to establish and maintain a Redemption Account at the
      Operating Bank that shall bear a description clearly indicating that the funds
      or other assets deposited therein are held for the benefit of the Trustee,
      who
      shall hold such amounts for the benefit of the Noteholders of Notes that are
      the
      subject of such Redemption. All amounts received for the purpose of any such
      Redemption shall be deposited in such Redemption Account and shall be held
      in
      such Account until such amounts are applied to pay the Redemption Price of
      such
      Notes (together with related Expenses) and such Notes are cancelled by the
      Trustee.

     

    
      
        
        

      

      
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    (i) The
      Issuer will cause the Servicer to establish and maintain the Capital Account
      at
      the Operating Bank not later than the Closing Date, and the Capital Account
      shall bear a designation clearly indicating that the funds or other assets
      deposited therein are held for the benefit of the Trustee into which the Parent
      shall deposit any capital contributions made to the Issuer. All such capital
      contributions shall be held in such Account and transferred (i) to the
      Collection Account only to the extent permitted by Section 3.7, (ii) to the
      Redemption Account only to the extent specifically provided for in any written
      notice of an Optional Redemption delivered to the Trustee pursuant to Section
      3.10(b) and (iii) to the Parent only to the extent permitted by Section
      3.8.

     

    (j) Upon
      notice by the Trustee to the Servicer that any Noteholder, Agent Member or
      Beneficial Holder has not delivered a Confidentiality Agreement to the
      Registrar, the Issuer will cause the Servicer to establish and maintain an
      Escrow Account at the Operating Bank in the name of the Trustee that shall
      bear
      a designation clearly indicating that the funds or other assets deposited
      therein are held for the benefit of any such Noteholder, Agent Member or
      Beneficial Holder. All amounts withheld from such Noteholder, Agent Member
      or
      Beneficial Holder pursuant to Section 2.5(d) shall be deposited in such Escrow
      Account and shall be held in such Escrow Account until such amounts are
      distributed as provided in Section 2.5(d). 

     

    (k) The
      Issuer will cause the Servicer to establish and maintain the Interest Reserve
      Account at the Operating Bank not later than the Closing Date, and the Interest
      Reserve Account shall bear a designation clearly indicating that the funds
      deposited therein are held for the benefit of the Trustee. Amounts shall be
      deposited into the Interest Reserve Account only pursuant to Section
      3.3(a)(iii). All such amounts shall be held in such Interest Reserve Account
      and
      transferred to the Collection Account only pursuant to Section 3.8.

     

    (l) The
      Operating Bank, in its capacity as securities intermediary (the “Securities
      Intermediary”),
      hereby confirms that it has established in the name of the Issuer a securities
      account identified with account number 121030005 (such account, the
“Securities
      Account”).
      The
      Securities Intermediary hereby agrees and confirms that (i) the Securities
      Intermediary is a bank or broker that in the ordinary course of its business
      maintains securities accounts for others and is acting in that capacity in
      maintaining the Securities Account, (ii) the Issuer will be entitled to exercise
      the rights that comprise each Financial Asset credited to the Securities Account
      and (iii) its books and records will contain appropriate entries to reflect
      the
      status of the Issuer as the Person having a security entitlement against the
      securities intermediary with respect to each Financial Asset credited to the
      Securities Account by the Securities Intermediary.

     

    (m) The
      Securities Intermediary acknowledges that (i) the Issuer has granted a security
      interest in all of the Issuer’s right, title and interest in and to any
      Financial Assets from time to time credited to the Securities Account and (ii)
      prior to the satisfaction of the Secured Obligations, it will comply with any
      entitlement orders originated by the Trustee (including entitlement orders
      directing the Securities Intermediary to transfer or redeem any Financial
      Assets) with respect to the Securities Account without further consent from
      the
      Issuer.

     

    (n) The
      Securities Intermediary hereby agrees that any property credited to the
      Securities Account (whether “investment property”, “financial asset” or
“security” (each as defined in the UCC) or cash, and the proceeds thereof) shall
      be treated as “financial assets” within the meaning of Section 8-102(a)(9) of
      the UCC.

     

    
      
        
        

      

      
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    Section
      3.2 Investments
      of Cash.
      The
      Issuer or the Servicer, on its behalf, shall direct the Trustee in writing
      to
      invest and reinvest the funds on deposit in the Accounts in Eligible
      Investments, to the extent such Eligible Investments are available to the
      relevant Operating Bank; provided,
      however,
      that,
      so long as an Event of Default has occurred and is continuing, the Trustee
      shall
      direct each Operating Bank to invest such amount in Eligible Investments
      described in clause (d) of the definition thereof from the time of receipt
      thereof until such time as such amounts are required to be distributed pursuant
      to the terms of this Indenture. In the absence of written direction delivered
      to
      the Trustee from the Issuer or the Servicer, the Trustee shall direct each
      Operating Bank to invest any funds in Eligible Investments described in clause
      (d) of the definition thereof. The Trustee shall direct each Operating Bank
      to
      make such investments and reinvestments in accordance with the terms of the
      following provisions:

     

    (a) the
      Eligible Investments shall have maturities and other terms such that sufficient
      funds shall be available to make required payments pursuant to this Indenture
      on
      the Business Day immediately preceding the next occurring Payment Date after
      such investment is made;

     

    (b) if
      any
      funds to be invested are received in the Accounts after 1:00 p.m., New York
      City
      time, on any Business Day, such funds shall, if possible, be invested in
      overnight Eligible Investments;

     

    (c) all
      interest and earnings on Eligible Investments held in the Accounts shall be
      invested in Eligible Investments on an overnight basis and credited to the
      appropriate Account until the next Payment Date; and

     

    (d) the
      Issuer acknowledges that regulations of the U.S. Comptroller of the Currency
      grant the Issuer the right to receive confirmations of security transactions
      as
      they occur. The Issuer specifically waives receipt of such confirmations to
      the
      extent permitted by Applicable Law and acknowledges that the Operating Bank
      will
      instead furnish periodic cash transaction statements that will detail all
      investment transactions as set forth in this Indenture.

     

    Section
      3.3 Closing
      Date Deposits; Withdrawals and Transfers.

     

    (a) On
      the
      Closing Date, the Trustee shall, subject to the receipt of written direction
      from the Issuer upon receipt of the proceeds from the sale by the Issuer of
      the
      Notes, make the following payments from such proceeds in the amounts so directed
      by the Issuer:

     

    (i) to
      such
      Persons as shall be specified by the Issuer, such Transaction Expenses as shall
      be due and payable in connection with the issuance and sale of the
      Notes;

     

    (ii) to
      the
      Parent, in accordance with the Purchase and Sale Agreement, an amount equal
      to
      the Cash Purchase Price; and

     

    (iii) to
      the
      Interest Reserve Account, $5,000,000.

     

    
      
        
        

      

      
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    (b) On
      the
      date of issuance of any Class B Notes or any Refinancing Notes, the Trustee
      shall, subject to the receipt of written direction from the Issuer upon receipt
      of the proceeds of the sale by the Issuer of such Notes, make such payments
      and
      transfers as shall be specified in this Indenture, the related Manager
      Resolution or any indenture supplemental hereto in respect of such Notes, copies
      of which Manager Resolution and indenture supplemental hereto shall be attached
      to such written direction.

     

    (c) The
      Trustee shall hold all funds received on or prior to the Closing Date from
      the
      Note Purchasers in trust for the Note Purchasers pending completion of the
      closing of the transactions contemplated by the Note Purchase Agreements. Upon
      receipt by the Trustee of the aggregate Purchase Price from all Note Purchasers,
      the Trustee shall disburse the Purchase Price in accordance with this Section
      3.3. If the aggregate Purchase Price shall not have been received by the Trustee
      by 3:30 p.m. (New York City time) on the Closing Date, or if the closing of
      the
      transactions contemplated by the Note Purchase Agreements shall not otherwise
      be
      capable of being consummated by 3:30 p.m. (New York City time) on the Closing
      Date, then each Note Purchaser who has paid its respective portion of the
      Purchase Price shall have the right to instruct the Trustee at or after 3:30
      p.m. (New York City time) on the Closing Date to return such portion of the
      Purchase Price to such Note Purchaser prior to the close of business on the
      Closing Date or as soon thereafter as reasonably practicable.

     

    Section
      3.4 Capital
      Contributions.
      The
      Issuer will immediately forward any capital contributions received by it from
      the Parent for deposit in the Capital Account.

     

    Section
      3.5 Calculation
      Date Calculations.

     

    (a) As
      soon
      as reasonably practicable after each Calculation Date (a “Relevant
      Calculation Date”),
      but
      in no event later than 12:00 noon (New York City time) on the second Business
      Day prior to the immediately succeeding Payment Date, the Calculation Agent
      shall, based on the Servicer Information received by the Calculation Agent,
      and
      based on information known to it or Relevant Information provided to it, make
      the following determinations and calculations (and each of the Trustee and
      the
      Issuer (for itself and on behalf of the Servicer) agrees to provide any Relevant
      Information reasonably requested by the Calculation Agent for the purpose of
      making such determinations and calculations):

     

    (i) the
      Available Collections Amount for such Payment Date;

     

    (ii) (x)
      the
      amount of Collections received during the period commencing on the day
      immediately following the Calculation Date that immediately preceded such
      Relevant Calculation Date and ending on such Relevant Calculation Date and
      (y)
      the amount, if any, to be transferred from the Interest Reserve Account as
      of
      the Relevant Calculation Date to the Collection Account on such Payment Date
      in
      accordance with Section 3.8;

     

    (iii) the
      balance of funds on deposit in each Account other than the Collection Account
      on
      such Relevant Calculation Date and the amount of interest and earnings (net
      of
      losses and investment expenses), if any, on investments of funds on deposit
      therein from the day immediately following the Calculation Date that immediately
      preceded such Relevant Calculation Date and ending on such Relevant Calculation
      Date;

     

    
      
        
        

      

      
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    (iv) the
      balance of funds on deposit in the Collection Account on such Relevant
      Calculation Date and the amount of interest and earnings (net of losses and
      investment expenses), if any, on investments of funds on deposit therein from
      the day immediately following the Calculation Date that immediately preceded
      such Relevant Calculation Date and ending on such Relevant Calculation
      Date;

     

    (v) all
      fees,
      costs and expenses (including reasonable attorneys’ fees and legal expenses) of
      the Noteholders under this Indenture not previously reimbursed;

     

    (vi) all
      other
      Expenses not previously reimbursed, with the amounts shown on all invoices
      attached to the Servicer Information received by the Calculation Agent for
      the
      reimbursement or payment of Expenses or Servicing Fees not previously paid
      or
      reimbursed;

     

    (vii) the
      applicable interest rate on each class of Floating Rate Notes determined on
      the
      Reference Date for the Interest Accrual Period beginning on such Payment Date
      and the Interest Amount (including any Additional Interest) on each class of
      Floating Rate Notes and Fixed Rate Notes for such Payment Date;

     

    (viii) if
      such
      Payment Date is a Redemption Date on which a Redemption of Notes is scheduled
      to
      occur, the amount necessary to pay the Redemption Price of the Notes to be
      repaid on such Redemption Date and the Redemption Premium, if any, to be paid
      as
      part of such Redemption Price;

     

    (ix) the
      amount of the Parent Shortfall Payment, if any, to be made on such Payment
      Date,
      provided such payment is being made in accordance with Section 3.9;

     

    (x) the
      difference, if any, between the Interest Amount due to the Noteholders of Class
      A Notes pursuant to Section 3.7(a)(iii) on such Payment Date and the portion
      of
      the Available Collections Amount available to pay such Interest Amount for
      such
      Payment Date (a “Shortfall”),
      taking into account any Parent Shortfall Payment determined pursuant to Section
      3.5(a)(ix) and the payment of expenses described in Section 3.5(a)(v) and
      Section 3.5(a)(vi) payable on such Payment Date and, with respect to each
      Shortfall, the amount to be withdrawn from the Interest Reserve Account and/or
      the Capital Account, if any, determined as provided in Section 3.8;

     

    (xi) the
      Outstanding Principal Balance of each class of Notes on such Payment Date
      immediately prior to any principal payment on such date and the amount of any
      principal payment to be made in respect of each class of Notes on such Payment
      Date, taking into account the other payments to be made on such Payment Date
      entitled to priority pursuant to Section 3.7;

     

    (xii) the
      amounts, if any, distributable to the Issuer on such Payment Date pursuant
      to
      Section 3.7(a)(viii); and

     

    
      
        
        

      

      
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    (xiii) any
      other
      information, determinations and calculations reasonably required in order to
      give effect to the terms of this Indenture and the other Transaction
      Documents.

     

    (b) Following
      the calculations and determinations by the Calculation Agent described in
      Section 3.5(a), and not later than 1:00 p.m., New York City time, on the second
      Business Day prior to the immediately succeeding Payment Date, the Calculation
      Agent shall provide to each of the Servicer, the Issuer and the Trustee a
      calculation report (a “Calculation
      Report”)
      listing such determinations and calculations and the amount of the Available
      Collections Amount to be applied on such Payment Date to make each of the
      payments and transfers contemplated by Section 3.7(a) or Section 3.10(a), and
      any Parent Shortfall Payment due and payable on such date, as applicable,
      setting forth the payments to be made in respect of the Notes. The calculations
      set forth in each Calculation Report shall be conclusive and binding on each
      of
      the Issuer, the Servicer, the Trustee and each Noteholder, absent manifest
      error.

     

    Section
      3.6 Payment
      Date First Step Transfers.
      On each
      Payment Date, the Trustee shall transfer from any Account (other than the
      Collection Account and the Capital Account) to the Collection Account the amount
      of interest and earnings (net of losses and investment expenses), if any, earned
      as a result of investments of funds on deposit therein from the day immediately
      following the Calculation Date that immediately preceded the Relevant
      Calculation Date and ending on the Relevant Calculation Date.

     

    Section
      3.7 Payment
      Date Second Step Withdrawals.

     

    (a) On
      each
      Payment Date, after the applicable transfers provided for in Section 3.6 have
      been made and after the making of any Parent Shortfall Payment pursuant to
      Section 3.9, the Trustee shall distribute from the Collection Account the
      amounts set forth below in the order of priority set forth below but, in each
      case, only to the extent that all amounts then required to be paid ranking
      prior
      thereto have been paid in full:

     

    (i) first,
      to the
      payment of all Expenses due and payable on such Payment Date, with the amounts
      shown on all invoices attached to the Servicer Information received by the
      Trustee for the reimbursement or payment of Expenses not previously paid or
      reimbursed;

     

    (ii) second,
      to the
      payment of the Servicing Fee for such Payment Date and any unpaid Servicing
      Fee
      in respect of prior Payment Dates;

     

    (iii) third,
      to the
      Trustee for distribution to the Noteholders of the Class A Notes to the ratable
      payment of the Interest Amount then due and payable on the Class A Notes, taking
      into account any amounts paid pursuant to Section 3.8 on such Payment Date,
      provided such Noteholder has executed and delivered a Confidentiality
      Agreement;

     

    (iv) fourth,
      to the
      Trustee for distribution to the Noteholders of the Class A Notes, principal
      payments on the Class A Notes (without premium or penalty), allocated pro rata
      in proportion to the Outstanding Principal Balance of such Class A Notes held
      by
      such Noteholders, until the Outstanding Principal Balance of such Class A Notes
      has been paid in full, provided such Noteholder has executed and delivered
      a
      Confidentiality Agreement;

     

    
      
        
        

      

      
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    (v) fifth,
      after
      the Class A Notes have been paid in full, to the Trustee for distribution to
      the
      Noteholders of the Class B Notes, if any, the Interest Amount on the Class
      B
      Notes in accordance with their terms;

     

    (vi) sixth,
      after
      the Class A Notes have been paid in full, to the Trustee for distribution to
      the
      Noteholders of the Class B Notes, if any, payment of the principal amount of
      the
      Class B Notes in accordance with their terms until the Class B Notes have been
      paid in full;

     

    (vii) seventh,
      after
      the Notes have been paid in full, to the ratable payment of all other
      obligations under this Indenture until all such amounts are paid in full;
      and

     

    (viii) eighth,
      after
      the Notes have been paid in full, to the Issuer, all remaining
      amounts.

     

    (b) Prior
      to
      the Trustee making any distributions pursuant to Section 3.7(a), the Trustee
      shall pay to the Parent from the Available Collections Amount, to be held in
      trust or escrow for Pfizer and other third parties entitled to royalties from
      the Parent in respect of Subject Products in one or more segregated accounts
      of
      the Parent, within 30 days of the end of each calendar quarter, the royalties
      due to such Persons in respect of Subject Products as set forth in the report
      to
      be prepared by the Servicer and delivered by the Servicer to the Trustee
      pursuant to Section 4.1(c)(xi) of the Servicing Agreement, but in no event
      shall
      such royalties exceed, in the aggregate, 3.5% of Net Sales (as defined in the
      Inspire License Agreement) for such calendar quarter.

     

    (c) To
      the
      extent the Issuer receives amounts from the Trustee from the Collection Account
      pursuant to Section 3.7(a)(viii), such amounts may be distributed by the Issuer
      to the Parent (or as otherwise directed by the Parent or any Person designated
      by the Parent to give such directions) in its sole discretion.

     

    (d) To
      the
      extent that any monies are deposited in the Collection Account to reimburse
      prior distributions in respect of a Parent Shortfall, such monies shall be
      paid
      to the Trustee on behalf of the Noteholders before making any other
      distributions pursuant to Section 3.7(a) to the extent that such monies
      otherwise would have been paid to such Noteholders on the prior respective
      Payment Date in accordance with this Section 3.7 in the absence of such Parent
      Shortfall.

     

    
      
        
        

      

      
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    Section
      3.8 Interest
      Reserve Account and Capital Account; Shortfalls.
      The
      Available Collections Amount does not include the aggregate amount of funds
      on
      deposit in the Interest Reserve Account or the Capital Account; provided,
      that,
      if the Calculation Agent has determined that a Shortfall exists pursuant to
      the
      Calculation Report with respect to any Payment Date and there is a positive
      balance in the Interest Reserve Account on the Relevant Calculation Date
      immediately preceding such Payment Date, then on such Payment Date the Trustee
      shall withdraw from the Interest Reserve Account an amount equal to the lesser
      of the Shortfall and the balance in the Interest Reserve Account and distribute
      it to the Noteholders of the Class A Notes in payment of the Interest Amount;
      provided,
      further,
      that,
      if the amount available in the Interest Reserve Account (if any) is less than
      the amount of such Shortfall and there is a positive balance in the Capital
      Account on the Relevant Calculation Date immediately preceding such Payment
      Date, then on such Payment Date the Trustee shall withdraw from the Capital
      Account an amount equal to the lesser of (i) the amount by which the Shortfall
      exceeds the amount, if any, withdrawn from the Interest Reserve Account and
      (ii)
      the balance in the Capital Account and distribute it to the Noteholders of
      the
      Class A Notes in payment of the Interest Amount; provided,
      further,
      that
      the Trustee shall (x) make such a withdrawal from the Capital Account on not
      more than six Payment Dates in total prior to the Final Legal Maturity Date
      and
      on not more than any three consecutive Payment Dates and (y) distribute any
      funds remaining in the Capital Account to the Parent in the event that
      withdrawals from the Capital Account have been made on six Payment
      Dates.

     

    On
      February 15, 2010, any funds remaining in the Interest Reserve Account (after
      any application of the prior paragraph on the February 15, 2010 Payment Date)
      shall be transferred to the Collection Account and included in the Available
      Collections Amount and applied as provided under Section 3.7.

     

    Section
      3.9 Parent
      Shortfall.
      If, no
      later than ten Business Days prior to any Calculation Date, the Trustee receives
      written notice of the existence of a Parent Shortfall, the Trustee shall
      promptly (but in no event later than the next succeeding Business Day following
      receipt of such written notice) notify the Servicer, the Parent and the Issuer
      of such existence of a Parent Shortfall. Upon the Issuer or the Parent receiving
      notification of the same, or upon the Issuer or the Parent otherwise becoming
      aware of a Parent Shortfall, the Issuer shall cause the Servicer, no later
      than
      such Calculation Date, to confirm the amount of any such Parent Shortfall in
      writing to the Trustee, with a copy to the Issuer and the Parent. Unless the
      Trustee shall have received prior to the related Payment Date (i) written
      notification from the Parent or the Servicer certifying that any such Parent
      Shortfall has been cured in full or (ii) written notice from the Trustee that
      at
      least two-thirds of the Outstanding Principal Balance of the Senior Class of
      Notes has indicated that such payment shall not be made on such Payment Date,
      then prior to making any other distributions pursuant to Section 3.7 or Section
      3.8, the Trustee shall make a Parent Shortfall Payment to the relevant
      counterparty on such Payment Date in the amount of such Parent Shortfall from
      the Collection Account; provided,
      that if
      the relevant counterparty shall refuse to accept such payment, then such funds
      shall be returned to the Collection Account for distribution in accordance
      with
      this Indenture.

     

    Section
      3.10 Redemptions.

     

    (a) On
      any
      Payment Date on which any class of Notes is to be the subject of a Redemption,
      in whole or in part, the Trustee shall distribute the amounts in the applicable
      Redemption Account as provided herein and in the applicable Manager Resolution,
      including:

     

    (i) paying
      to
      such Persons as shall be specified by the Issuer such Transaction Expenses
      as
      shall be due and payable in connection with the issuance and sale of the
      applicable Class B Notes or Refinancing Notes;

     

    
      
        
        

      

      
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    (ii) after
      application of Section 3.7 and Section 3.8, remitting to the Noteholders of
      such
      class of Notes, in accordance with the Manager Resolution authorizing such
      Redemption, an amount equal to the Redemption Price plus Premium, if any,
      allocated, in the event of a Redemption of such Notes in part, pro rata in
      proportion to the Outstanding Principal Balance of such Notes held by such
      Noteholders; and

     

    (iii) making
      such other distributions and payments as shall be authorized and directed by
      the
      Manager Resolution and indentures supplemental hereto executed in connection
      with such Redemption.

     

    (b) Subject
      to the provisions of Section 3.11, on any Payment Date, to the extent that
      any
      class of Notes will remain outstanding on such Payment Date after application
      of
      Section 3.7 and Section 3.8, the Issuer may elect to redeem such class of Notes,
      in whole, but not in part, out of the proceeds of the Refinancing Notes and
      any
      funds in the Interest Reserve Account or the Capital Account in the case of
      a
      Refinancing of such class of Notes, or, in whole or in part, out of amounts
      available in the Redemption Account for such purpose, if any, including the
      proceeds of any Class B Notes (but excluding in the case of a Redemption in
      part
      any funds in the Interest Reserve Account or the Capital Account), in each
      case,
      at the Redemption Price (any such redemption, an “Optional
      Redemption”).
      The
      Issuer shall give written notice of any such Optional Redemption to the Trustee
      and the Servicer not later than five Business Days prior to the date on which
      notice is to be given to Noteholders in accordance with Section 3.11(a) (unless
      the Trustee and the Servicer agree to waive or limit the requirement for such
      notice). Such written notice to the Trustee shall include a copy of the Manager
      Resolution authorizing such Optional Redemption and shall set forth the relevant
      information regarding such Optional Redemption, including the information to
      be
      included in the notice given pursuant to Section 3.11(a).

     

    (c) An
      indenture supplemental hereto providing for the issuance of any Class B Notes
      or
      Refinancing Notes may authorize one or more redemptions, in whole or in part,
      of
      such Notes, on such terms and subject to such conditions as shall be specified
      in such indenture supplemental hereto.

     

    Section
      3.11 Procedure
      for Redemptions.

     

    (a) The
      Trustee (or the Servicer acting as its agent (or any authorized agent of the
      Servicer)) shall give written notice in respect of any Redemption of any class
      of Notes under Section 3.10 to each Noteholder of such Notes at least 30 days
      but not more than 60 days before such Redemption Date. Each notice in respect
      of
      a Redemption given pursuant to this Section 3.11(a) shall state (A) the expected
      applicable Redemption Date, (B) the arrangements for making payments in respect
      of such Redemption, (C) the projected Redemption Price of the Notes to be
      redeemed, (D) in the case of a Redemption of the Notes of any class in part,
      the
      portion of the Outstanding Principal Balance of the Notes that is expected
      to be
      redeemed, (E) that Notes to be redeemed in a Redemption in whole must be
      surrendered (which action may be taken by any Noteholder or its authorized
      agent) to the Trustee to collect the Redemption Price on such Notes and (F)
      that, unless the Issuer fails to pay the Redemption Price, interest on Notes
      called for Redemption in whole shall cease to accrue on and after the Redemption
      Date. If mailed in the manner herein provided, the notice shall be conclusively
      presumed to have been given whether or not the Noteholder receives such notice.
      Failure to give notice or any defect in the notice shall not affect the validity
      of the notice.

     

    
      
        
        

      

      
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    (b) If,
      at
      the time of the mailing of any notice in respect of a Redemption, the Issuer
      shall not have irrevocably directed the Trustee to apply funds then on deposit
      with the Trustee or held by the Issuer and available to be used for such
      Redemption to redeem all of the Notes called for Redemption, such notice, at
      the
      election of the Issuer, may state that it is conditional and subject to the
      receipt of the redemption moneys in an amount sufficient to pay the principal
      and premium, if any, and interest on Notes being redeemed by the Trustee on
      or
      before the Redemption Date and that such notice shall be of no force and effect
      unless such moneys are so received on or before such Redemption
      Date.

     

    (c) If
      notice
      in respect of a Redemption for any Notes shall have been given as provided
      in
      Section 3.11(a) and such notice shall not contain the language permitted at
      the
      Issuer’s option under Section 3.11(b), such Notes shall become due and payable
      on the Redemption Date at the Corporate Trust Office at the applicable
      Redemption Price, interest on such Notes shall cease to accrue and such Notes
      shall be deemed not to be entitled to any benefit under this Indenture, except
      to receive payment of the Redemption Price. Upon presentation and surrender
      of
      such Notes at the Corporate Trust Office, such Notes shall be paid and redeemed
      at the applicable Redemption Price. On or before any Redemption Date in respect
      of such a Redemption, the Issuer shall, to the extent an amount equal to the
      Redemption Price of such Notes (and any Refinancing Expenses relating thereto
      as
      of the Redemption Date) is not then held by the Issuer or on deposit in the
      Redemption Account, deposit or cause to be deposited in the Redemption Account
      an amount in immediately available funds equal to such amount.

     

    (d) If
      notice
      in respect of a Redemption for any Notes shall have been given as provided
      in
      Section 3.11(a) and such notice shall contain the language permitted at the
      Issuer’s option under Section 3.11(b), such Notes shall become due and payable
      on the Redemption Date at the Corporate Trust Office at the applicable
      Redemption Price, interest on such Notes shall cease to accrue and such Notes
      shall be deemed not to be entitled to any benefit under this Indenture, except
      to receive payment of the Redemption Price; provided,
      that,
      in each case, the Issuer shall have deposited with the Trustee or a Paying
      Agent
      on or prior to 11:00 a.m. (New York City time) on the Redemption Date an amount
      sufficient to pay the Redemption Price. Upon the Issuer making such deposit
      and
      presentation and surrender of such Notes at the Corporate Trust Office, such
      Notes shall be paid and redeemed at the applicable Redemption Price. If the
      Issuer shall not make such deposit on or prior to 11:00 a.m. (New York City
      time) on the Redemption Date, the notice in respect of Redemption shall be
      of no
      force and effect, and the principal on such Notes or specified portions thereof
      shall continue to bear interest as if such notice in respect of Redemption
      had
      not been given.

     

    (e) All
      Notes
      that are redeemed will be surrendered to the Trustee for cancellation and may
      not be reissued or resold.

     

    
      
        
        

      

      
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    ARTICLE
      IV

    DEFAULT
      AND REMEDIES

     

    Section
      4.1 Events
      of Default.
      Each of
      the following events or occurrences shall constitute an “Event
      of Default”
      hereunder with respect to any class of Notes (except for clauses (a), (b),
      (c)
      and (d) below in which the potential events or occurrences that would constitute
      an Event of Default are specific to certain classes of Notes, in which case
      such
      Event of Default shall be constituted only with respect to such classes of
      Notes
      (and not all classes of Notes)), and each such Event of Default shall be deemed
      to exist and continue so long as, but only so long as, it shall not have been
      waived or remedied, as applicable:

     

    (a) failure
      to pay interest on the Class A Notes due on any Payment Date (other than the
      Final Legal Maturity Date or any Redemption Date) within five days of such
      Payment Date, but only to the extent of the Available Collections Amount
      available for interest payments pursuant to the priority of payments in Section
      3.7, any funds in the Interest Reserve Account and any capital contributed
      to
      the Issuer by the Parent as described in Section 3.1(i);

     

    (b) (i)
      failure to pay interest on the Class A Notes due on any Payment Date (other
      than
      the Final Legal Maturity Date, any Redemption Date or as set forth in Section
      4.1(a)) in full by the next succeeding Payment Date, together with Additional
      Interest on any interest not paid on the Payment Date on which it was originally
      due, and (ii) in the case of any class of Notes other than the Class A Notes,
      except as provided in the related Manager Resolution or any indenture
      supplemental hereto providing for the issuance of such Notes pursuant to Section
      2.15 or Section 2.16, failure to pay interest on any Notes of such class on
      the
      Payment Date that such interest is due;

     

    (c) (i)
      failure to pay principal and Premium, if any, and accrued and unpaid interest
      on
      any Notes of such class on the applicable Final Legal Maturity Date or (ii)
      subject to Section 3.11(b), failure to pay the Redemption Price when due on
      any
      Redemption Date for such class;

     

    (d) failure
      to pay any other amount when due and payable in connection with such class
      of
      Notes and the continuance of such default for a period of 30 or more days after
      written notice thereof is given to the Issuer by the Trustee;

     

    (e) (i)
      failure by the Issuer to comply in any material respect with any of the
      covenants set forth in Section 5.2 (other than Section 5.2(h), Section 5.2(k),
      Section 5.2(l), Section 5.2(m), Section 5.2(p) and Section 5.2(v)), Section
      5.3(a), Section 5.3(b) or Section 5.3(c), and written notice thereof being
      given
      to the Issuer by
      the
      Trustee at the Direction of Noteholders of a majority of the Outstanding
      Principal Balance of the Notes;
      or (ii)
      failure by the Issuer to comply in any material respect with any of the other
      covenants, obligations, conditions or provisions binding on it under this
      Indenture or the Notes (other than a payment default for which provision is
      made
      in Section 4.1(a), Section 4.1(b), Section 4.1(c) or Section 4.1(d)) if (in
      the
      case of this Section 4.1(e)(ii) only) such failure continues for a period of
      30
      days or more after written notice thereof has been given to the Issuer by the
      Trustee at the Direction of Noteholders of a majority of the Outstanding
      Principal Balance of the Notes;

     

    
      
        
        

      

      
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    (f) the
      Issuer becomes subject to a Voluntary Bankruptcy or an Involuntary
      Bankruptcy;

     

    (g) any
      judgment or order for the payment of money in excess of $1,000,000 shall be
      rendered against the Issuer and either (i) enforcement proceedings have been
      commenced by any creditor upon such judgment or order or (ii) there is any
      period of ten consecutive days during which a stay of enforcement of such
      judgment or order, by reason of a pending appeal or otherwise, shall not be
      in
      effect;

     

    (h) the
      Issuer becomes an investment company required to be registered under the
      Investment Company Act of 1940, as amended;

     

    (i) the
      Parent shall have failed to perform in any material respect any of its covenants
      under Article VI of the Purchase and Sale Agreement
      or
      Article VI of the Pledge and Security Agreement;

     

    (j) the
      Pfizer License Agreement shall be terminated or shall otherwise fail to be
      in
      full force and effect and such failure continues for a period of 30 days or
      more;

     

    (k) the
      Interim Sublicense (as defined in the Residual License Agreement) has terminated
      pursuant to the Residual License Agreement; or

     

    (l) any
      withdrawal or revocation by the U.S. Food and Drug Administration of approvals
      to sell AzaSite in the United States for efficacy or safety reasons which has,
      or would reasonably be expected to have, a material adverse effect on repayment
      of the Class A Notes.

     

    Section
      4.2 Acceleration,
      Rescission and Annulment.

     

    (a) If
      an
      Event of Default with respect to the Notes (other than an Acceleration Default)
      occurs and is continuing, the Trustee may, and, upon the Direction of
      Noteholders of a majority of the Outstanding Principal Balance of the Senior
      Class of Notes, shall, give an Acceleration Notice to the Issuer. Upon delivery
      of such an Acceleration Notice (and so long as such Acceleration Notice has
      not
      been rescinded and annulled pursuant to this Indenture), such Outstanding
      Principal Balance and all accrued and unpaid interest thereon shall be
      immediately due and payable. At any time after the Trustee or the Noteholders
      have so declared the Outstanding Principal Balance of the Notes to be
      immediately due and payable, and prior to the exercise of any other remedies
      pursuant to this Article IV, the Trustee, upon the Direction of Noteholders
      of a
      majority of the Outstanding Principal Balance of the Senior Class of Notes,
      shall, subject to Section 4.5(a), by written notice to the Issuer, rescind
      and
      annul such declaration and thereby annul its consequences if (i) there has
      been
      paid to or deposited with the Trustee an amount sufficient to pay all overdue
      installments of interest on the Notes, and the principal of, and Premium, if
      any, on the Notes that would have become due otherwise than by such declaration
      of acceleration, (ii) the rescission would not conflict with any judgment or
      decree and (iii) all other Defaults and Events of Default, other than
      non-payment of interest on and principal and Premium, if any, of the Notes
      that
      have become due solely because of such declaration of acceleration, have been
      cured or waived. If an Acceleration Default occurs, the Outstanding Principal
      Balance of the Notes and all accrued and unpaid interest thereon shall
      automatically become immediately due and payable without any further action
      by
      any party.

     

    
      
        
        

      

      
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    (b) Notwithstanding
      this Section 4.2, Section 4.3 and Section 4.11, after the occurrence and during
      the continuation of an Event of Default, no Noteholders of any class of Notes
      other than the Senior Class of Notes shall be permitted to give or direct the
      giving of an Acceleration Notice, or to exercise any remedy in respect of such
      Event of Default, and no Person other than the Senior Trustee, at the Direction
      of a majority of the Outstanding Principal Balance of the Senior Class of Notes,
      may give an Acceleration Notice or exercise any such remedy.

     

    (c) Within
      30
      days after the occurrence of an Event of Default in respect of any class of
      Notes, the Trustee shall give to the Noteholders of such class of Notes notice,
      transmitted by mail, of all uncured or unwaived Defaults known to it on such
      date; provided,
      that
      the Trustee may withhold such notice with respect to a Default (other than
      a
      payment default with respect to interest, principal or Premium, if any) if
      it
      determines in good faith that withholding such notice is in the interest of
      the
      affected Noteholders.

     

    Section
      4.3 Other
      Remedies.
      Subject
      to the provisions of this Indenture, if an Event of Default shall have occurred
      and be continuing, then the Senior Trustee may, but only at the Direction of
      Noteholders of a majority of the Outstanding Principal Balance of the Senior
      Class of Notes, pursue any available remedy by proceeding at law or in equity
      to
      collect the payment of principal of, Premium, if any, or interest on the Notes
      or to enforce the performance of any provision of the Notes, this Indenture,
      the
      Servicing Agreement or the Pledge and Security Agreement, including any of
      the
      following, to the fullest extent permitted by law, subject to the receipt of
      such Direction:

     

    (a) The
      Senior Trustee may obtain the appointment of a Receiver of the Indenture Estate
      as provided in Section 12.7 and the Issuer consents to any such
      appointment.

     

    (b) The
      Senior Trustee may, without notice to the Issuer and at such time as the Senior
      Trustee in its sole discretion may determine, exercise any or all of the
      Issuer’s rights in, to and under or in any way connected with or related to any
      or all of the Indenture Estate, including (i) demanding and enforcing payment
      and performance of, and exercising any or all of the Issuer’s rights and
      remedies with respect to the collection, enforcement or prosecution of, any
      or
      all of the Indenture Estate, in each case by legal proceedings or otherwise,
      (ii) settling, adjusting, compromising, extending, renewing, discharging and
      releasing any or all of, and any legal proceedings brought to collect or enforce
      any or all of, the Royalty Payments actually made by Inspire under the Inspire
      License Agreement (but not the rights thereunder to receive such payments)
      and
      the Replacement Royalty Payments, if any, and otherwise under the Transaction
      Documents and (iii) preparing, filing and signing the name of the Issuer on
      (A)
      any proof of claim or similar document to be filed in any bankruptcy or similar
      proceeding involving the Indenture Estate and (B) any notice of lien, assignment
      or satisfaction of lien, or similar document in connection with the Indenture
      Estate.

     

    
      
        
        

      

      
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    (c) The
      Senior Trustee may, without notice except as specified herein, sell or cause
      the
      sale of all or any part of the Indenture Estate in one or more parcels at public
      or private sale, at any of the Senior Trustee’s offices or elsewhere, for cash,
      on credit or for future delivery, and upon such other terms as the Senior
      Trustee may deem commercially reasonable, provided,
      that,
      so long as the Principal Documents remain in force, the Senior Trustee shall
      make any such sale only to a Person that is a Permitted Holder. The Issuer
      agrees that, to the extent notice of sale shall be required by law, at least
      ten
      days’ notice to the Issuer of the time and place of any public sale or the time
      after which any private sale is to be made shall constitute reasonable
      notification. The Senior Trustee shall not be obligated to make any sale of
      all
      or any part of the Indenture Estate regardless of notice of sale having been
      given. The Senior Trustee may adjourn any public or private sale from time
      to
      time by announcement at the time and place fixed therefor, and such sale may,
      without further notice, be made at the time and place to which it was so
      adjourned.

     

    (d) The
      Senior Trustee may, instead of exercising the power of sale conferred upon
      it by
      Section 4.3(c) and Applicable Law, proceed by a suit or suits at law or in
      equity to foreclose the Security Interest and sell all or any portion of the
      Indenture Estate under a judgment or a decree of a court or courts of competent
      jurisdiction, provided,
      that,
      so long as the Principal Documents remain in force, the Senior Trustee shall
      make any such foreclosure sale only to a Person that is a Permitted
      Holder.

     

    (e) The
      Senior Trustee may require the Issuer to, and the Issuer hereby agrees that
      it
      shall at its expense and upon request of the Senior Trustee, forthwith assemble
      all or part of the Indenture Estate as directed by the Senior Trustee and make
      it available to the Senior Trustee at a place to be designated by the Senior
      Trustee that is reasonably convenient to both parties.

     

    (f) In
      addition to the rights and remedies provided for in this Indenture, the Senior
      Trustee may exercise in respect of the Indenture Estate all the rights and
      remedies of a secured party upon default under the UCC (whether or not the
      UCC
      applies to the affected property included in the Indenture Estate) and under
      all
      other Applicable Law; provided,
      that,
      so long as the Principal Documents remain in force, the Senior Trustee shall
      cause any sale of the Collateral to be made only to a Person that is a Permitted
      Holder.

     

    (g) The
      Senior Trustee may maintain a proceeding even if it does not possess any of
      the
      Notes or does not produce any of them in the proceeding.

     

    Section
      4.4 Limitation
      on Suits.
      Without
      limiting the provisions of Section 4.8 and the final sentence of Section 12.4,
      no Noteholder shall have any right to institute any proceeding, judicial or
      otherwise, with respect to this Indenture, the Pledge and Security Agreement
      or
      the Notes, for the appointment of a receiver or trustee or for any other remedy
      hereunder, unless:

     

    (a) such
      Noteholder is a holder of the Senior Class of Notes and has previously given
      written notice to the Senior Trustee of a continuing Event of
      Default;

     

    (b) the
      Noteholders of a majority of the Outstanding Principal Balance of the Senior
      Class of Notes make a written request to the Senior Trustee to pursue a remedy
      hereunder;

     

    (c) such
      Noteholder or Noteholders offer to the Senior Trustee an indemnity reasonably
      satisfactory to the Senior Trustee against any costs, expenses and liabilities
      to be incurred in complying with such request;

     

    
      
        
        

      

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

     

    (e) during
      such 60-day period, Noteholders of a majority of the Outstanding Principal
      Balance of the Senior Class of Notes do not give the Senior Trustee a Direction
      inconsistent with such request.

     

    No
      one or
      more Noteholders may use this Indenture to affect, disturb or prejudice the
      rights of another Noteholder or to obtain or seek to obtain any preference
      or
      priority not otherwise created by this Indenture and the terms of the Notes
      over
      any other Noteholder or to enforce any right under this Indenture, except in
      the
      manner herein provided.

     

    Section
      4.5 Waiver
      of Existing Defaults.

     

    (a) The
      Senior Trustee or the Noteholders of a majority of the Outstanding Principal
      Balance of the Senior Class of Notes by written notice to the Senior Trustee
      may
      waive any existing Default (or Event of Default) hereunder and its consequences,
      except a Default (or Event of Default) (i) in the payment of the interest on,
      principal of, and Premium, if any, on any Note or (ii) in respect of a covenant
      or provision hereof that under Article IX cannot be modified or amended without
      the consent of the Noteholder of each Note affected thereby. Upon any such
      waiver, such Default shall cease to exist, and any Event of Default arising
      therefrom shall be deemed to have been cured for every purpose of this
      Indenture, but no such waiver shall extend to any subsequent or other Default
      (or Event of Default) or impair any right consequent thereon.

     

    (b) Any
      written waiver of a Default or an Event of Default given by Noteholders to
      the
      Senior Trustee and the Issuer in accordance with the terms of this Indenture
      shall be binding upon the Senior Trustee and the other parties hereto. Unless
      such writing expressly provides to the contrary, any waiver so granted shall
      extend only to the specific event or occurrence that gave rise to the Default
      or
      Event of Default so waived and not to any other similar event or occurrence
      that
      occurs subsequent to the date of such waiver.

     

    Section
      4.6 Restoration
      of Rights and Remedies.
      If the
      Senior Trustee or any Noteholder of the Senior Class of Notes has instituted
      any
      proceeding to enforce any right or remedy under this Indenture, and such
      proceeding has been discontinued or abandoned for any reason or has been
      determined adversely to the Senior Trustee or such Noteholder, then in every
      such case the Issuer, the Senior Trustee and the Noteholders shall, subject
      to
      any determination in such proceeding, be restored severally and respectively
      to
      their former positions hereunder, and thereafter all rights and remedies of
      the
      Senior Trustee and the Noteholders shall continue as though no such proceeding
      has been instituted.

     

    Section
      4.7 Remedies
      Cumulative.
      Each
      and every right, power and remedy herein given to the Trustee specifically
      or
      otherwise in this Indenture shall be cumulative and shall, to the extent
      permitted by law, be in addition to every other right, power and remedy herein
      specifically given or now or hereafter existing at law, in equity or by statute,
      and each and every right, power and remedy whether specifically herein given
      or
      otherwise existing may be exercised from time to time and as often and in such
      order as may be deemed expedient by the Trustee, and the exercise or the
      beginning of the exercise of any power or remedy shall not be construed to
      be a
      waiver of the right to exercise at the same time or thereafter any other right,
      power or remedy. No delay or omission by the Trustee in the exercise of any
      right, remedy or power or in the pursuance of any remedy shall impair any such
      right, power or remedy or be construed to be a waiver of any Default on the
      part
      of the Issuer or to be an acquiescence.

     

    
      
        
        

      

      
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    Section
      4.8 Rights
      of Noteholders to Receive Payment.
      Notwithstanding any other provision of this Indenture, the right of any
      Noteholder to receive payment of interest on, principal of, or Premium, if
      any,
      on any Note on or after the respective due dates therefor expressed in such
      Note, or to bring suit for the enforcement of any such payment on or after
      such
      respective dates, shall not be impaired or affected without the consent of
      such
      Noteholder.

     

    Section
      4.9 Trustee
      May File Proofs of Claim.
      The
      Trustee may file such proofs of claim and other papers or documents as may
      be
      necessary or advisable in order to have the claims of the Trustee and of any
      Noteholder allowed in any judicial proceedings relating to any obligor on the
      Notes, its creditors or its property.

     

    Section
      4.10 Undertaking
      for Costs.
      All
      parties to this Indenture agree, and each Noteholder by its acceptance hereof
      shall be deemed to have agreed, that, in any suit for the enforcement of any
      right or remedy under this Indenture or in any suit against the Trustee for
      any
      action taken or omitted by it as Trustee, a court in its discretion may require
      the filing by any party litigant in such suit of an undertaking to pay the
      costs
      of such suit, and the court in its discretion may assess reasonable costs,
      including reasonable attorneys’ fees, against any party litigant in such suit,
      having due regard to the merits and good faith of the claims or defense made
      by
      the party litigant. This Section 4.10 does not apply to a suit instituted by
      the
      Trustee, a suit instituted by any Noteholder for the enforcement of the payment
      of interest, principal, or Premium, if any, on any Note on or after the
      respective due dates expressed in such Note or a suit by a Noteholder or
      Noteholders of at least 10% of the Outstanding Principal Balance of the
      Notes.

     

    Section
      4.11 Control
      by Noteholders.
      Subject
      to Section 4.2 and Section 4.4 and to the rights of the Trustee hereunder,
      Noteholders of a majority of the Outstanding Principal Balance of the Notes
      shall have the right to direct the time, method and place of conducting any
      proceeding for any remedy available to the Trustee or exercising any trust,
      right or power conferred on the Trustee under any Transaction Document;
provided,
      that:

     

    (a) such
      Direction shall not be in conflict with any rule of law or with this Indenture
      and would not involve the Trustee in personal liability or expense;

     

    (b) the
      Trustee shall not determine that the action so directed would be unjustly
      prejudicial to the Noteholders of such class not taking part in such Direction;
      and

     

    (c) the
      Trustee may take any other action deemed proper by the Trustee that is not
      inconsistent with such Direction.

     

    Section
      4.12 Senior
      Trustee.
      The
      Trustee irrevocably agrees (and the Noteholders (other than the Noteholders
      represented by the Senior Trustee) shall be deemed to agree by virtue of their
      purchase of the Notes) that the Senior Trustee shall have all of the rights
      granted to it under this Indenture, including the right to direct the Trustee
      to
      take certain action as provided for in this Indenture, and the Trustee hereby
      agrees to act in accordance with each such authorized direction of the Senior
      Trustee.

     

    
      
        
        

      

      
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    Section
      4.13 Application
      of Proceeds.
      All
      cash proceeds received by the Senior Trustee in respect of any sale of,
      collection from or other realization upon all or any part of the Indenture
      Estate shall be deposited in the Collection Account and distributed as provided
      in Article III. Any surplus of such cash proceeds held and remaining after
      payment in full of all Secured Obligations shall be paid over to the Issuer
      or
      whomsoever may be lawfully entitled to receive such surplus as provided in
      Section 3.7. Any amount received for any sale or sales conducted in accordance
      with the terms of Section 4.3 shall to the extent permitted by Applicable Law
      be
      deemed conclusive and binding on the Issuer and the Noteholders.

     

    Section
      4.14 Waivers
      of Rights Inhibiting Enforcement.
      The
      Issuer waives (a) any claim that, as to any part of the Indenture Estate, should
      the Senior Trustee elect to proceed with a private sale thereof, the mere fact
      that such a sale is a private sale does not, in and of itself, mean that such
      sale is not a commercially reasonable method of sale for such part of the
      Indenture Estate, (b) the right to assert in any action or proceeding between
      it
      and the Senior Trustee offsets or counterclaims that it may have, (c) all rights
      of redemption, appraisement, valuation, stay and extension or moratorium and
      (d)
      except as otherwise provided in any of the Transaction Documents, all other
      rights the exercise of which would, directly or indirectly, prevent, delay
      or
      inhibit the enforcement of any of the rights or remedies under this Indenture
      or
      the absolute sale of the Indenture Estate, now or hereafter in force under
      any
      Applicable Law, and the Issuer, for itself and all who may claim under it,
      insofar as it or they now or hereafter lawfully may, hereby waives the benefit
      of all such laws and rights.

     

    Section
      4.15 Security
      Interest Absolute.
      All
      rights of the Trustee and security interests hereunder, and all obligations
      of
      the Issuer hereunder, shall be absolute and unconditional irrespective of,
      and
      the Issuer hereby irrevocably waives any defenses it may now have or may
      hereafter acquire in any way relating to, any or all of the
      following:

     

    (a) any
      lack
      of validity or enforceability of any of the Transaction Documents or any other
      agreement or instrument relating thereto (other than against the
      Trustee);

     

    (b) any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Secured Obligations, or any other amendment or waiver of or any
      consent to any departure from the Transaction Documents or any other agreement
      or instrument relating thereto;

     

    (c) any
      taking, exchange, surrender, release or non-perfection of any Collateral or
      any
      other collateral, or any release or amendment or waiver of or consent to any
      departure from any guaranty, for all or any of the Secured
      Obligations;

     

    (d) any
      manner of application of any Collateral or any other collateral, or proceeds
      thereof, to all or any of the Secured Obligations, or any manner of sale or
      other disposition of any Collateral or any other collateral for all or any
      of
      the Secured Obligations or any other obligations of the Issuer under or in
      respect of the Transaction Documents or any other assets of the
      Issuer;

     

    
      
        
        

      

      
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    (e) any
      change, restructuring or termination of the limited liability company structure
      or existence of the Issuer;

     

    (f) the
      failure of any other Person to execute this Indenture or any other agreement
      or
      the release or reduction of liability of the Issuer or other grantor or surety
      with respect to the Secured Obligations; or

     

    (g) any
      other
      circumstance (including any statute of limitations) or any existence of or
      reliance on any representation by the Trustee that might otherwise constitute
      a
      defense available to, or a discharge of, the Issuer.

     

    ARTICLE
      V

    REPRESENTATIONS,
      WARRANTIES AND COVENANTS

     

    Section
      5.1 Representations
      and Warranties.
      The
      Issuer represents and warrants to the Trustee as follows as of the Closing
      Date:

     

    (a) The
      Issuer is a limited liability company created under the laws of the State of
      Delaware, is duly qualified to do business and is in good standing in each
      jurisdiction where such qualification is required and has full power and
      authority to conduct its business, and the Issuer is not in liquidation or
      bankruptcy and has not become subject to a Voluntary Bankruptcy or an
      Involuntary Bankruptcy.

     

    (b) The
      Issuer has not engaged in any activities since its organization (other than
      those incidental to its organization and permitted by the Issuer Organizational
      Documents, the execution and performance of the Transaction Documents to which
      it is a party and the activities referred to in or contemplated by such
      agreements), and the Issuer has not paid any dividends or made any similar
      distributions since its organization.

     

    (c) The
      creation of the Notes and the issuance, execution and delivery, and the
      compliance by the Issuer with the terms, of the Notes and each of the other
      Transaction Documents to which it is a party:

     

    (i) do
      not at
      the Closing Date conflict with, result in a breach of any of the terms or
      provisions of or constitute a default under the Issuer Organizational Documents
      or with any judgment, order or decree of any Governmental Authority having
      jurisdiction over the Issuer, its assets or properties or, except where it
      would
      not have or would not be reasonably likely to have a Material Adverse Effect,
      with any Applicable Law; and

     

    (ii) do
      not at
      the Closing Date violate, or constitute a default under, any deed, indenture,
      agreement or other instrument or obligation to which the Issuer is a party
      or by
      which it or any part of its assets, property or revenues are bound.

     

    (d) The
      creation, execution and issuance of the Notes, the execution and delivery by
      the
      Issuer of the Transaction Documents executed by it and the performance by the
      Issuer of its obligations hereunder and thereunder and the arrangements
      contemplated hereby and thereby to be performed by it have been duly authorized,
      executed and delivered by the Issuer.

     

    
      
        
        

      

      
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    (e) This
      Indenture constitutes, and the other Transaction Documents to which it is a
      party, when executed and delivered and, in the case of the Notes, when issued
      and authenticated, will constitute, valid, legally binding and (subject to
      general equitable principles, and laws relating to insolvency, liquidation,
      reorganization and other laws of general application relating to creditors’
rights or claims or to laws of prescription or the concepts of materiality,
      reasonableness, good faith and fair dealing) enforceable obligations of the
      Issuer.

     

    (f) On
      the
      Closing Date, there exists no Event of Default nor any event that, had the
      Notes
      already been issued, would constitute a Default or an Event of
      Default.

     

    (g) On
      the
      Closing Date, subject to the Liens created in favor of the Trustee and except
      for any other Permitted Liens, there exists no Lien over the assets of the
      Issuer.

     

    (h) All
      consents, approvals, authorizations or other orders of all Governmental
      Authorities required (excluding any required by the other parties to the
      Transaction Documents) for or in connection with the execution, delivery and
      performance of the Transaction Documents by the Issuer and the issuance and
      performance of the Notes and the offering of the Notes by the Issuer have been
      obtained and are in full force and effect and are not contingent upon
      fulfillment of any condition. No consent of any Governmental Authority or any
      other party (including directors, officers, members, managers or creditors
      of
      the Issuer) is required that has not been obtained for the pledge by the Issuer
      of the Collateral pursuant to this Indenture.

     

    (i) The
      Issuer is not required to register as an “investment company” within the meaning
      of the Investment Company Act of 1940, as amended.

     

    (j) There
      is
      no action, suit, investigation or proceeding pending or, to the knowledge of
      the
      Issuer, threatened against the Issuer before any Governmental Authority that
      in
      any manner challenges or seeks to prevent, enjoin, alter or materially delay
      the
      transactions contemplated by this Indenture and the other Transaction Documents
      to which the Issuer is a party.

     

    (k) The
      Issuer has no Subsidiaries.

     

    (l) The
      Issuer is the sole legal and beneficial owner of the assets and properties
      constituting the Collateral and the other Purchased Assets, free and clear
      of
      any Liens other than Permitted Liens.

     

    (m) Under
      the
      laws of the State of Delaware, the laws of the State of New York and U.S.
      federal law in force at the Closing Date, it is not necessary that this
      Indenture or any other Transaction Document (other than evidences and perfection
      of the Liens) be filed, recorded or enrolled by the Issuer with any court or
      other Governmental Authority in any such jurisdictions or that any stamp,
      registration or similar Tax be paid by the Issuer on or in relation to this
      Indenture or any of the other Transaction Documents (other than filings of
      Uniform Commercial Code financing statements set forth in Exhibit
      E
      and the
      various consents and agreements, if any, pursuant hereto).

     

    
      
        
        

      

      
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    (n) The
      filings of financing statements under the UCC and other recordings, if any,
      in
      the appropriate offices therefor and any other actions required to perfect
      a
      security interest in favor of the Trustee in the Collateral, including the
      Royalty Payments actually made by Inspire under the Inspire License Agreement
      (but not the rights thereunder to receive such payments) and the Replacement
      Royalty Payments, if any, in each case sold, transferred, conveyed, assigned,
      contributed and granted on the Closing Date pursuant to the Purchase and Sale
      Agreement, have been or shall have been duly made by the Closing Date, and,
      subject to the terms and provisions of this Indenture, the Issuer has or shall
      have the same rights as the Parent has with respect to the Purchased Assets
      (if
      the Parent were still the owner of such Purchased Assets) against Inspire.
      No
      other security agreement, financing statement or other public notice with
      respect to all or any part of the Collateral (other than any of the foregoing
      that is referenced in Exhibit
      B
      to the
      Purchase and Sale Agreement or Exhibit
      E
      to this
      Indenture or otherwise names the Trustee as secured party) is on file or of
      record in any public office that perfects a valid security interest therein.
      This Indenture creates a valid security interest in the Collateral securing
      the
      payment of the Secured Obligations.

     

    (o) The
      Issuer has determined, and by virtue of its entering into the transactions
      contemplated hereby and its authorization, execution and delivery of this
      Indenture and the other Transaction Documents to which it is party, that the
      issuance of the Notes and the consummation of the transactions contemplated
      hereby and thereby, and its incurrence of Indebtedness and other liability
      hereunder or thereunder or contemplated hereby or thereby (i) is in its own
      best
      interests, (ii) does not leave it unable to pay its debts as they become due
      in
      the ordinary course of business, (iii) will not leave it with debts that cannot
      be paid from the present saleable value of its property and (iv) will not render
      it insolvent within the meaning of Section 101(32) of the United States
      Bankruptcy Code or Section 271 of the New York Debtor and Creditor Law or leave
      it with unreasonably small capital.

     

    (p) No
      material adverse change in the business, condition (financial or otherwise),
      performance or properties of the Issuer has occurred since its date of
      formation.

     

    (q) The
      Issuer has never filed any tax return or report under any name other than its
      exact legal name. The Issuer is an entity that is disregarded as separate from
      the Parent for U.S. federal income tax purposes.

     

    (r) No
      step
      has been taken or is intended by the Issuer or, so far as it is aware, any
      other
      Person for the winding-up, liquidation, dissolution, administration, merger
      or
      consolidation or for the appointment of a receiver or administrator of the
      Issuer or all or any of its assets.

     

    (s) The
      Issuer has not assigned or pledged any of its right, title or interest in the
      Collateral to anyone other than the Trustee.

     

    (t) The
      representations and warranties made by the Issuer in any of the other
      Transaction Documents to which it is a party are true and accurate as of the
      date made.

     

    
      
        
        

      

      
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    Section
      5.2 Covenants.
      The
      Issuer covenants with the Trustee that, so long as any Notes are Outstanding,
      it
      will perform and comply with each of the following covenants and not engage
      in
      any activity prohibited by this Indenture without the prior written consent
      of
      the Trustee pursuant to Section 9.1 or Section 9.2, as applicable, authorizing
      the Issuer not to perform any such covenants or to engage in any such activity
      prohibited by this Indenture, in each case on such terms and conditions, if
      any,
      as shall be specified in such prior written consent:

     

    (a) Except
      as
      expressly permitted by any Transaction Document or Principal Document, the
      Issuer shall not take any action, whether orally or in writing, that would
      amend, waive, modify, supplement, restate, cancel or terminate, or discharge
      or
      prejudice the validity or effectiveness of, this Indenture, the Notes, the
      Pledge and Security Agreement, the Purchase and Sale Agreement, the Residual
      License Agreement or the Servicing Agreement, or permit any party to any such
      document to be released from such obligations.

     

    (b) The
      Issuer shall not, directly or indirectly, (i) declare or pay any dividend or
      make any distribution on its Capital Securities, whether in cash, property,
      securities or a combination thereof, to the Parent or any other owner of a
      beneficial interest in the Issuer or otherwise with respect to any ownership
      of
      its Capital Securities, except that the Issuer may distribute to the Parent
      (x)
      all or any portion of any amounts transferred to the Issuer pursuant to Section
      3.7(a)(viii) or (y) any proceeds from an issuance of Notes in accordance with
      this Indenture, (ii) purchase, redeem, retire or otherwise acquire for value
      any
      issued Capital Securities of the Issuer or any of its Affiliates, (iii) make
      any
      payment of principal, interest or Premium, if any, on the Notes or make any
      voluntary or optional redemption, repurchase, defeasance or other acquisition
      or
      retirement for value of, or make any deposit (including the payment of amounts
      into a sinking fund or other similar fund) with respect to, Indebtedness of
      the
      Issuer other than in accordance with the Notes and this Indenture or (iv) make
      any loan or advance to a Person, any purchase or other acquisition of any
      beneficial interest, Capital Securities, warrants, rights, options, obligations
      or other securities of such Person, any capital contribution to such Person
      or
      any other investment in such Person (other than Eligible Investments and
      investments permitted under Section 5.2(f) or otherwise in accordance with
      the
      Notes and this Indenture).

     

    (c) The
      Issuer shall not (and shall not consent to the Parent taking any action that
      would) incur or suffer to exist any Lien over or with respect to any of the
      Issuer’s assets, other than (i) any Permitted Lien or (ii) any security interest
      created or required to be created hereunder, including in connection with the
      issuance of any Class B Notes and any Refinancing Notes.

     

    (d) The
      Issuer shall not incur, create, issue, assume, Guarantee or otherwise become
      liable for or with respect to, or become responsible for, the payment or
      performance of, contingently or otherwise, whether present or future (in any
      such case, to “Incur”),
      Indebtedness; provided,
      however,
      that
      the Issuer may Incur Indebtedness in respect of the Original Class A Notes,
      any
      Class B Notes and any Refinancing Notes issued in accordance with this
      Indenture.

     

    (e) The
      Issuer shall not liquidate or dissolve, consolidate with, merge with or into,
      or
      sell, convey, transfer, lease or otherwise dispose of the Purchased Assets
      or
      all or any material portion of its other property and assets to, or purchase
      or
      otherwise acquire all or substantially all of the assets of, any other Person,
      or permit any other Person to merge with or into, or consolidate or otherwise
      combine with, the Issuer.

     

    
      
        
        

      

      
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    (f) The
      Issuer shall not, directly or indirectly, issue, deliver or sell, or consent
      to
      issue, deliver or sell, any actual, contingent, future or executory membership
      interests, limited liability company interests, beneficial interests or other
      equity or ownership interests (however designated, whether voting or
      non-voting), except for any additional Capital Securities of the Issuer issued
      to the Parent, provided that such additional Capital Securities are pledged
      to
      the Trustee pursuant to the Pledge and Security Agreement, and except for any
      membership interests issued to the Independent Member pursuant to the Issuer
      Organizational Documents, and provided further that the Issuer shall not accept
      any capital contributions from the Parent after the Closing Date except for
      contributions of funds deposited into the Capital Account, which may be used
      only as provided in Section 3.1(i).

     

    (g) Except
      as
      otherwise provided in the Issuer Organizational Documents, the Issuer shall
      not
      engage in any business or activity other than purchasing and holding the
      Purchased Assets and the license granted by the Residual License Agreement,
      pledging the Collateral, collecting the Royalty Payments and the Replacement
      Royalty Payments, if any, issuing the Notes, exercising its rights under the
      Residual License Agreement and remaining a party to the Transaction Documents
      and Principal Documents.

     

    (h) The
      Issuer shall not, directly or indirectly, enter into, renew or extend any
      transaction (including the purchase, sale, lease or exchange of property or
      assets, or the rendering of any service) with any Affiliate of the Issuer,
      except for the Transaction Documents and Principal Documents as in effect on
      the
      Closing Date.

     

    (i) The
      Issuer shall not take any action to become subject to a Voluntary Bankruptcy
      or
      an Involuntary Bankruptcy. The Issuer shall provide promptly the Trustee with
      written notice of the institution of any proceeding by or against the Issuer
      seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
      winding-up, reorganization, arrangement, adjustment, protection, relief or
      composition of its debts under any law relating to bankruptcy, insolvency or
      reorganization or relief of debtors, or seeking the entry of an order for relief
      or the appointment of a receiver, trustee or other similar official for it
      or
      for any substantial part of its property. The Issuer shall not, without an
      affirmative written resolution adopted by all of the Members, take any action
      to
      waive, repeal, amend, vary, supplement or otherwise modify any provision of
      any
      of the Issuer Organizational Documents that requires unanimous written consent
      of the Members. The Issuer shall comply with, and cause compliance with, the
      Issuer Organizational Documents.

     

    (j) The
      Issuer shall not take any action to waive, repeal, amend, vary, supplement
      or
      otherwise modify the Issuer Organizational Documents in a manner that would
      adversely affect (x) the rights, remedies, privileges or preferences of any
      Noteholder or (y) the Collateral, any other Purchased Assets or the Issuer
      Pledged Collateral.

     

    (k) The
      Issuer shall duly and punctually pay the principal, Premium, if any, and
      interest on the Notes in accordance with the terms of this Indenture and the
      Notes; provided,
      that
      the Issuer shall be in compliance with this covenant with respect to any Payment
      Date (other than the Final Legal Maturity Date or any Redemption Date subject
      to
      3.11(b)) if any such interest in excess of the portion of the Available
      Collections Amount available to pay such interest on the relevant Payment Date
      and funds in the Interest Reserve Account and the Capital Account are paid
      in
      full not later than the immediately succeeding Payment Date (together with
      Additional Interest thereon).

     

    
      
        
        

      

      
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    (l) The
      Issuer shall not employ any employees other than as required by any provisions
      of local law; provided,
      that
      the Members, the Manager and Service Providers shall not be deemed to be
      employees for purposes of this Section 5.2(l).

     

    (m) During
      any period in which the Issuer is not subject to Section 13 or 15(d) of the
      Exchange Act, the Issuer shall make available to any Noteholder or Beneficial
      Holder in connection with any sale of any or all of its Notes and any
      prospective purchaser of such Notes from such Noteholder or Beneficial Holder
      the information required by Rule 144A(d)(4) under the Securities
      Act.

     

    (n) The
      Issuer shall not assign, amend, modify, supplement or restate any Principal
      Document, breach any of the provisions of any Principal Document, enter into
      any
      new agreement in respect of the Purchased Assets or the Subject Products (in
      respect of the Territory in the Field) or exercise or waive any right or option,
      fail to exercise any right or option or grant any consent in respect of the
      Purchased Assets, the Subject Products (in respect of the Territory in the
      Field) or the Principal Documents in any manner that would, in each case,
      materially adversely affect the Issuer, the Issuer’s rights under the Purchase
      and Sale Agreement or the Residual License Agreement or the rights and interests
      of the Trustee and the Noteholders with respect thereto or conflict with or
      cause an event of default under, or breach of, this Indenture, any other
      Transaction Document or any Principal Document; provided,
      however,
      that
      the Issuer shall not be required to take any action unless the Issuer has
      determined in good faith that such action is not illegal or unlawful and will
      not subject the Issuer to any risk of personal liability from any third party
      unless such liability is a result of the Issuer’s gross negligence or willful
      misconduct (except that the foregoing shall not relieve the Issuer from any
      breach of its obligations under this Indenture).

     

    (o) The
      Issuer shall not terminate (or consent to any termination of) any Principal
      Document in whole or in part.

     

    (p) The
      Issuer shall at all times enforce its rights and remedies under the Purchase
      and
      Sale Agreement, the Residual License Agreement, the Servicing Agreement and
      the
      Inspire License Agreement in a timely and commercially reasonable manner;
      provided, that, following the occurrence and continuation of an Event of
      Default, the Issuer shall give notice to the Trustee on behalf of the
      Noteholders of any contemplated enforcement of such rights and remedies and
      will
      follow any commercially reasonable direction of the Trustee at the Direction
      of
      Noteholders of a majority of the Outstanding Principal Balance of the
      Notes.

     

    (q) The
      Issuer shall maintain its existence separate and distinct from any other Person
      in all material respects, including taking the following actions, as
      appropriate:

     

    (i) maintaining
      in full effect its existence, rights and franchises as a Delaware limited
      liability company and obtaining and preserving its qualification to do business
      in each jurisdiction in which such qualification is or will be necessary to
      protect the validity and enforceability of this Indenture and each other
      instrument or agreement necessary or appropriate to properly administer this
      Indenture and permit and effectuate the transactions contemplated hereby and
      thereby;

     

    
      
        
        

      

      
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    (ii) maintaining
      its own deposit accounts, separate from those of the Parent, any of its
      directors or officers and their respective Affiliates;

     

    (iii) conducting
      no material transactions between the Issuer and any of its Affiliates, other
      than entering into and performing the Transaction Documents to which it is
      party;

     

    (iv) allocating
      fairly and reasonably the cost of any shared overhead expenses, including office
      space, with the Parent, any of its directors or officers or any of their
      respective Affiliates;

     

    (v) conducting
      its affairs separately from those of the Parent, any of its directors or
      officers or any of their respective Affiliates and maintaining accurate and
      separate books, records and accounts and financial statements, including in
      connection with the purchase of the Purchased Assets from the Parent; it being
      agreed that performance under the Transaction Documents will not result in
      the
      Issuer’s contravening this Section 5.2(q)(v);

     

    (vi) acting
      solely in its own name and not that of any other Person, including the Parent,
      any of its directors or officers or any of their respective Affiliates, and
      at
      all times using its own stationery, invoices and checks separate from those
      of
      the Parent, any of its directors or officers or any of their respective
      Affiliates;

     

    (vii) not
      holding itself out as having agreed to pay or guarantee, or as otherwise being
      liable for, the obligations of the Parent, any of its directors or officers
      or
      any of their respective Affiliates;

     

    (viii) insuring
      that any financial reports prepared by the Issuer disclose the effects of the
      sale of the Purchased Assets from the Parent and any of its Affiliates in
      compliance with GAAP;

     

    (ix) maintaining
      all of its assets in its own name and not commingling its assets with those
      of
      any other Person except as required under the Transaction
      Documents;

     

    (x) paying
      its own operating expenses and other liabilities out of its own
      funds;

     

    (xi) paying
      (or causing to be paid) all of its Taxes owed by it except to the extent being
      challenged in good faith;

     

    (xii) observing
      all formalities required by the Issuer Organizational Documents;

     

    
      
        
        

      

      
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    (xiii) maintaining
      adequate capital for the normal obligations reasonably foreseeable in light
      of
      its contemplated business operations;

     

    (xiv) not
      acquiring obligations of the Parent, any of its directors or officers or any
      of
      their respective Affiliates except as required under the Transaction
      Documents;

     

    (xv) holding
      itself out to the public as a legal entity separate and distinct from any other
      Person, including the Parent or any Affiliate of the Parent;

     

    (xvi) correcting
      any known misunderstanding regarding its separate identity;

     

    (xvii) not
      forming, acquiring or holding any subsidiaries; and

     

    (xviii) not
      sharing any common logo with or identifying itself as a department or division
      of the Parent, any of its directors or officers or any of their respective
      Affiliates.

     

    (r) The
      Issuer will not enter into any agreement prohibiting the ability of the Trustee
      or any Noteholder to amend or otherwise modify any Transaction Document;
provided,
      that
      the foregoing prohibition shall not apply to restrictions contained in any
      Transaction Document.

     

    (s) The
      Issuer will not change, amend or alter its exact legal name at any time except
      following 30 days’ notice given by the Issuer to the Trustee.

     

    (t) The
      Issuer will not assign or pledge, so long as the assignment hereunder shall
      remain in effect and has not been terminated pursuant to Section 11.1, any
      of
      its right, title or interest in the Collateral hereby assigned to anyone other
      than the Trustee.

     

    (u) The
      Issuer agrees that, at any time and from time to time, at the Issuer’s expense
      and upon the Trustee’s written request, the Issuer will promptly and duly
      execute and deliver or cause to be duly executed and delivered any and all
      such
      further instruments and documents, and take all further action, that may be
      necessary in the reasonable discretion of the Trustee, in order to perfect
      the
      security interest in the Collateral and to carry out the provisions of this
      Indenture or to enable the Trustee to exercise and enforce its rights and
      remedies hereunder with respect to any Collateral. The Issuer also agrees that,
      at any time and from time to time, at the Issuer’s expense, the Issuer will file
      (or cause to be filed) such UCC continuation statements and such other
      instruments or notices as may be necessary, including UCC financing statements
      or amendments thereto, that the Trustee may reasonably request in order to
      perfect and preserve the security interests and other rights granted or
      purported to be granted to the Trustee hereby. With respect to the foregoing
      and
      the grant of the security interest hereunder, the Issuer hereby authorizes
      the
      Trustee to file one or more financing or continuation statements, and amendments
      thereto, relative to all or any part of the Collateral without the signature
      of
      the Issuer where permitted by Applicable Law. The Issuer agrees that a carbon,
      photographic or other reproduction of any financing statement covering the
      Collateral or any part thereof shall be sufficient as a financing statement
      where permitted by Applicable Law.

     

    
      
        
        

      

      
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    (v) The
      Issuer 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 Issuer in respect of the Notes and this Indenture may be served.
      Each of the Corporate Trust Office and each office or agency of the Trustee
      in
      the Borough of Manhattan, The City of New York shall initially be one such
      office or agency for all of the aforesaid purposes. The Issuer shall give prompt
      written notice to the Trustee of the location, and of 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 Issuer 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 12.5. The Issuer
      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 Issuer of its
      obligation to maintain an office or agency in the Borough of Manhattan, The
      City
      of New York, for such purposes.

     

    (w) The
      Issuer shall maintain its status as an entity that is disregarded as separate
      from the Parent for U.S. federal income tax purposes.

     

    Section
      5.3 Reports
      and Other Deliverables by the Issuer.

     

    (a) The
      Issuer shall furnish to the Trustee, within 120 days after the end of each
      fiscal year commencing with the fiscal year ending December 31, 2008, a
      certificate from a Responsible Officer of the Issuer as to his or her knowledge
      of the Issuer’s compliance with all of its obligations under this Indenture (it
      being understood that, for purposes of this Section 5.3, such compliance shall
      be determined without regard to any period of grace or requirement of notice
      provided under this Indenture but shall reflect any interest paid on the
      Original Class A Notes by the next succeeding Payment Date as contemplated
      by
      the proviso to Section 5.2(k) as have been timely paid).

     

    (b) The
      Issuer shall deliver written notice to the Trustee of the occurrence of (i)
      any
      Default or Event of Default under this Indenture and (ii) any of the events
      described in Section 6.3(d) of the Purchase and Sale Agreement promptly and
      in
      any event within five Business Days of a Responsible Officer or manager having
      actual knowledge of such Default, Event of Default, event or
      situation.

     

    (c) The
      Issuer shall promptly (and in any event within five Business Days of receipt
      thereof) provide to the Servicer and the Trustee copies of all materials that
      the Issuer receives from the Parent pursuant to Section 6.3 of the Purchase
      and
      Sale Agreement or otherwise in respect of the Principal Documents.

     

    (d) Within
      120 days after the beginning of each fiscal year commencing with the fiscal
      year
      beginning January 1, 2009, the Issuer shall furnish to the Trustee an opinion
      of
      its legal counsel, which opinion shall state whether there are any actions
      to be
      taken, including any financing statements to be filed in any office, within
      the
      period of 12 full consecutive calendar months following the date of such opinion
      in order to continue the perfection of the security interests granted under
      the
      Transaction Documents or to continue the effectiveness of any financing
      statements filed in connection with the Principal Documents as of the date
      hereof.

     

    
      
        
        

      

      
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    ARTICLE
      VI

    THE
      TRUSTEE

     

    Section
      6.1 Acceptance
      of Trusts and Duties.
      Except
      during the continuance of an Event of Default, the Trustee undertakes to perform
      such duties and only such duties as are specifically set forth in this
      Indenture, and no implied covenants or obligations shall be read into this
      Indenture against the Trustee; provided,
      that,
      to the extent those duties are qualified, limited or otherwise affected by
      the
      provisions of any other Transaction Document, the Trustee shall be required
      to
      perform those duties only as so qualified, limited or otherwise affected. The
      duties and responsibilities of the Trustee shall be as provided by the Trust
      Indenture Act (as if the Trust Indenture Act applied to this Indenture) and
      as
      set forth herein. The Trustee accepts the trusts hereby created and applicable
      to it and agrees to perform the same but only upon the terms of this Indenture
      and the Trust Indenture Act (as if the Trust Indenture Act applied to this
      Indenture) and agrees to receive and disburse all moneys received by it in
      accordance with the terms hereof. The Trustee in its individual capacity shall
      not be answerable or accountable under any circumstances except for its own
      willful misconduct or negligence or breach of any of its representations or
      warranties set forth herein, and the Trustee shall not be liable for any action
      or inaction of the Issuer or any other parties to any of the Transaction
      Documents. Any amounts received by or due to the Trustee under this Indenture,
      including the fees, out-of-pocket expenses and indemnities of the Trustee,
      shall
      be Expenses of the Issuer.

     

    The
      Issuer does hereby constitute and appoint the Trustee the true and lawful
      attorney of the Issuer, irrevocably, granted for good and valuable consideration
      and coupled with an interest and with full power of substitution, and with
      full
      power (in the name of the Issuer or otherwise), to ask, require, demand,
      receive, compound and give acquittance for any and all monies and claims for
      monies (in each case including insurance and requisition proceeds) due and
      to
      become due under or arising out of any Transaction Document and all other
      property that now or hereafter constitutes part of the Indenture Estate, to
      endorse any checks or other instruments or orders in connection therewith and
      to
      file any claims or take any action or institute any proceedings that the Trustee
      may deem to be necessary or advisable in the premises; provided,
      that
      the Trustee shall not exercise any such rights except upon
      the
      occurrence and during the continuance of an Event of Default hereunder in
      accordance with Section 4.3.

     

    Section
      6.2 Copies
      of Documents and Other Notices.

     

    (a) The
      Trustee, upon written request, shall furnish to each requesting Noteholder
      or
      Beneficial Holder included on the Approved Holder List and the Servicer,
      promptly upon receipt thereof, duplicates or copies of all reports, Notices,
      requests, demands, certificates, financial statements and other instruments
      furnished thereafter to the Trustee under or in connection with this
      Indenture.

     

    
      
        
        

      

      
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    (b) The
      Trustee shall furnish to Noteholders and Beneficial Holders included on the
      Approved Holder List and the Servicer promptly after receipt thereof any reports
      or notices received from any of the Issuer, the Parent, Inspire or Pfizer,
      including (i) the report of any audit contemplated by Section 4.1(b) or 4.1(c)
      of the Servicing Agreement and (ii) notice of any dispute between the Parent
      and
      any other party to any of the Principal Documents in respect of any Principal
      Document as contemplated by Section 6.1(h) of the Purchase and Sale
      Agreement.

     

    Section
      6.3 Representations
      and Warranties.
      The
      Trustee does not make and shall not be deemed to have made any representation
      or
      warranty as to the validity, legality or enforceability of this Indenture,
      the
      Notes or any other document or instrument or as to the correctness of any
      statement contained in any thereof, except that the Trustee in its individual
      capacity hereby represents and warrants as follows:

     

    (a) The
      Trustee is a national banking association and is validly existing and in good
      standing under the laws of the United States, and is duly authorized and
      licensed under applicable law to conduct its business as presently
      conducted.

     

    (b) The
      Trustee has all requisite right, power and authority to execute and deliver
      this
      Indenture and its related documents and to perform all of its duties as Trustee
      hereunder and thereunder.

     

    (c) The
      execution and delivery by the Trustee of this Indenture and the other
      Transaction Documents to which it is a party, and the performance by the Trustee
      of its duties hereunder and thereunder, have been duly authorized by all
      necessary corporate proceedings, and no further approvals or filings, including
      any governmental approvals, are required for the valid execution and delivery
      by
      the Trustee, or the performance by the Trustee, of this Indenture and such
      other
      Transaction Documents to which it is a party.

     

    (d) The
      execution, delivery and performance by the Trustee of this Indenture and the
      other Transaction Documents to which it is a party (i) to the best of the
      Trustee’s knowledge and without independent inquiry or investigation into the
      facts thereto, do not violate any provision of any Applicable Law and (ii)
      do
      not violate any provision of its corporate charter or by-laws.

     

    (e) The
      execution, delivery and performance by the Trustee of this Indenture and the
      other Transaction Documents to which it is a party, to the best of the Trustee’s
      knowledge and without independent inquiry or investigation into the facts
      thereto, do not require the authorization, consent or approval of, the giving
      of
      notice to, the filing or registration with, or the taking of any action in
      respect of, any Governmental Authority.

     

    (f) The
      Trustee has duly executed and delivered this Indenture and each other
      Transaction Document to which it is a party, and each of this Indenture and
      each
      such other Transaction Document constitutes the legal, valid and binding
      obligation of the Trustee in accordance with its terms, except as (i) such
      enforceability may be limited by bankruptcy, insolvency, reorganization,
      moratorium and similar laws relating to or affecting the enforcement of
      creditors’ rights generally and (ii) the availability of equitable remedies may
      be limited by equitable principles of general applicability.

     

    
      
        
        

      

      
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    Section
      6.4 Reliance;
      Agents; Advice of Counsel.
      The
      Trustee shall incur no liability to anyone acting upon any signature,
      instrument, notice, resolution, request, consent, order, certificate, report,
      opinion, bond or other document or paper believed by it to be genuine and
      believed by it to be signed by the proper party or parties. The Trustee may
      accept a copy of a resolution of, in the case of the Issuer, the Manager and,
      in
      the case of any other party to any Transaction Document, the governing body
      of
      such Person, certified in an accompanying Officer’s Certificate as duly adopted
      and in full force and effect, as conclusive evidence that such resolution has
      been duly adopted and that the same is in full force and effect. As to any
      fact
      or matter the manner of ascertainment of which is not specifically described
      herein, the Trustee shall be entitled to receive and may for all purposes hereof
      conclusively rely on a certificate, signed by an officer of any duly authorized
      Person, as to such fact or matter, and such certificate shall constitute full
      protection to the Trustee for any action taken or omitted to be taken by it
      in
      good faith in reliance thereon. To the extent not otherwise specifically
      provided herein, the Trustee shall assume, and shall be fully protected in
      assuming, that the Issuer is authorized by its constitutional documents to
      enter
      into this Indenture and to take all action permitted to be taken by it pursuant
      to the provisions hereof and shall not be required to inquire into the
      authorization of the Issuer with respect thereto. To the extent not otherwise
      specifically provided herein, the Trustee shall furnish to the Servicer upon
      written request such information and copies of such documents as the Trustee
      may
      have and as are necessary for the Servicer to perform its duties under Article
      II and Article III or otherwise.

     

    The
      Trustee shall not be liable for any action it takes or omits to take in good
      faith that it believes to be authorized or within its rights or powers or for
      any action it takes or omits to take in accordance with the Direction of the
      Noteholders in accordance with Section 4.11 relating to the time, method and
      place of conducting any proceeding for any remedy available to the Trustee,
      or
      exercising any trust, right or power conferred upon the Trustee, under any
      Transaction Document.

     

    The
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder or under any other Transaction Document either directly or by or
      through agents or attorneys or a custodian or nominee, and the Trustee shall
      not
      be responsible for any misconduct or negligence on the part of, or for the
      supervision of, any such agent, attorney, custodian or nominee appointed with
      due care by it hereunder.

     

    The
      Trustee may consult with counsel as to any matter relating to this Indenture
      or
      any other Transaction Document and any Opinion of Counsel or any advice of
      such
      counsel shall be full and complete authorization and protection in respect
      of
      any action taken or suffered or omitted by it hereunder in good faith and in
      accordance with such advice or Opinion of Counsel.

     

    The
      Trustee shall be under no obligation to exercise any of the rights or powers
      vested in it by this Indenture or any other Transaction Document, or to
      institute, conduct or defend any litigation hereunder or in relation hereto,
      at
      the request, order or Direction of any of the Noteholders, pursuant to the
      provisions of this Indenture or any other Transaction Document, unless such
      Noteholders shall have offered to the Trustee security or indemnity reasonably
      satisfactory to it against the costs, expenses and liabilities that may be
      incurred therein or thereby.

     

    
      
        
        

      

      
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    The
      Trustee shall not be required to expend or risk its own funds or otherwise
      incur
      any financial liability in the performance of any of its duties hereunder or
      under any other Transaction Document, or in the exercise of any of its rights
      or
      powers, if there is reasonable ground for believing that the repayment of such
      funds or indemnity satisfactory to it against such risk or liability is not
      reasonably assured to it, and none of the provisions contained in this Indenture
      or any other Transaction Document shall in any event require the Trustee to
      perform, or be responsible or liable for the manner of performance of, any
      obligations of the Issuer or the Servicer under this Indenture or any of the
      other Transaction Documents.

     

    The
      Trustee shall not be liable for any Losses or Taxes (except for Taxes relating
      to any compensation, fees or commissions of any entity acting in its capacity
      as
      Trustee hereunder) or in connection with the selection of Eligible Investments
      or for any investment losses resulting from Eligible Investments.

     

    When
      the
      Trustee incurs expenses or renders services in connection with an Acceleration
      Default, such expenses (including the fees and expenses of its counsel) and
      the
      compensation for such services are intended to constitute expenses of
      administration under any bankruptcy law or law relating to creditors’ rights
      generally.

     

    The
      Trustee shall not be charged with knowledge of an Event of Default unless a
      Responsible Officer of the Trustee obtains actual knowledge of such event or
      has
      received written notice of such event at its Corporate Trust Office from the
      Issuer, the Servicer or Noteholders of not less than 10% of the Outstanding
      Principal Balance of the Notes.

     

    The
      Trustee shall have no duty to monitor the performance of the Issuer, the
      Servicer or any other party to the Transaction Documents, nor shall it have
      any
      liability in connection with the malfeasance or nonfeasance by such
      parties.

     

    Whenever
      in the administration of the provisions of this Indenture the Trustee shall
      deem
      it necessary or desirable that a matter be proved or established prior to taking
      or suffering any action to be taken hereunder or under any other Transaction
      Document, such matter (unless other evidence in respect thereof be herein
      specifically prescribed) may, in the absence of gross negligence or bad faith
      on
      the part of the Trustee, be deemed to be conclusively proved and established
      by
      a certificate signed by a Responsible Officer of the Issuer and delivered to
      the
      Trustee, and such certificate, in the absence of gross negligence or bad faith
      on the part of the Trustee, shall be full warrant to the Trustee for any action
      taken, suffered or omitted by it under the provisions of this Indenture or
      any
      other Transaction Document upon the faith thereof.

     

    Except
      as
      provided expressly hereunder, the Trustee shall have no obligation to invest
      and
      reinvest any cash held in the Accounts in the absence of timely and specific
      written investment direction by or on behalf of the Issuer. In no event shall
      the Trustee be liable for the selection of investments or for investment losses
      incurred thereon. The Trustee shall have no liability in respect of losses
      incurred as a result of the liquidation of any investment prior to its stated
      maturity or the failure of the Issuer to provide timely written investment
      direction.

     

    When
      the
      Trustee incurs expenses after the occurrence of a Default specified in Section
      4.1 with respect to the Issuer, if the surviving entity has failed to honor
      such
      obligation, the expenses are intended to constitute expenses of administration
      under any insolvency law or under the Bankruptcy Code.

     

    
      
        
        

      

      
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    Section
      6.5 Not
      Acting in Individual Capacity.
      The
      Trustee acts hereunder solely as trustee unless otherwise expressly provided,
      and all Persons, other than the Noteholders to the extent expressly provided
      in
      this Indenture, having any claim against the Trustee by reason of the
      transactions contemplated hereby shall look, subject to the lien and priorities
      of payment as provided herein or in any other Transaction Document, only to
      the
      property of the Issuer for payment or satisfaction thereof.

     

    Section
      6.6 Compensation
      of Trustee.
      The
      Trustee agrees that it shall have no right against the Noteholders or, except
      as
      provided in Section 3.7(a), the property of the Issuer, for any fee as
      compensation for its services hereunder. The Issuer shall pay to the Trustee
      from time to time such compensation as has been agreed between the two parties
      on or prior to the date hereof. The compensation shall be paid to the Trustee
      as
      provided in Section 3.5(a) and Section 3.7(a).

     

    Section
      6.7 Notice
      of Defaults.
      As
      promptly as practicable after, and in any event within 30 days after, the
      occurrence of any Default hereunder, the Trustee shall transmit by mail to
      the
      Issuer, the Servicer and the Noteholders of the related class, in accordance
      with Section 313(c) of the Trust Indenture Act (as if the Trust Indenture Act
      applied to this Indenture), notice of such Default hereunder actually known
      to a
      Responsible Officer of the Trustee, unless such Default shall have been cured
      or
      waived; provided,
      however,
      that,
      except in the case of a Default on the payment of the interest, principal or
      Premium, if any, on any Note, the Trustee shall be fully protected in
      withholding such notice if and so long as a trust committee of Responsible
      Officers of the Trustee in good faith determines that the withholding of such
      notice is in the interests of the Noteholders of the related class.

     

    Section
      6.8 May
      Hold Notes.
      The
      Trustee, any Paying Agent, the Registrar or any of their Affiliates or any
      other
      agent in their respective individual or any other capacity may become the owner
      or pledgee of the Notes and, subject to Sections 310(b) and 311 of the Trust
      Indenture Act (as if the Trust Indenture Act applied to this Indenture), may
      otherwise deal with the Issuer with the same rights it would have if it were
      not
      the Trustee, Paying Agent, Registrar or such other agent.

     

    Section
      6.9 Corporate
      Trustee Required; Eligibility.
      There
      shall at all times be a Trustee that shall be eligible to act as a trustee
      under
      Section 310(a) of the Trust Indenture Act (as if the Trust Indenture Act applied
      to this Indenture) and shall meet the Eligibility Requirements. If such
      corporation publishes reports of conditions at least annually, pursuant to
      law
      or to the requirements of any federal, state, foreign, territorial or District
      of Columbia supervising or examining authority, then, for the purposes of this
      Section 6.9, 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 conditions so published.

     

    In
      case
      at any time the Trustee shall cease to be eligible in accordance with the
      provisions of this Section 6.9 to act as Trustee, the Trustee shall resign
      immediately as Trustee in the manner and with the effect specified in Section
      7.1.

     

    
      
        
        

      

      
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    Section
      6.10 Reports
      by the Trustee.
      Within
      60 days after May 15 of each year commencing with the first full calendar year
      following the issuance of any class of Notes, the Trustee shall, if required
      by
      Section 313(a) of the Trust Indenture Act (as if the Trust Indenture Act applied
      to this Indenture), transmit to the Noteholders of each class, as provided
      in
      Section 313(c) of the Trust Indenture Act (as if the Trust Indenture Act applied
      to this Indenture), a brief report describing, among other things, any changes
      in eligibility and qualifications of the Trustee and of any Class B
      Issuance.

     

    Section
      6.11 Calculation
      Agent.
      The
      Trustee shall act as the Calculation Agent hereunder. Subject to the approval
      of
      the Issuer and Noteholders of a majority of the Outstanding Principal Balance
      of
      the Notes, another Person may become the Calculation Agent on such terms as
      shall be approved by them. To the extent not otherwise specifically provided
      herein, the Trustee shall furnish to the Calculation Agent, and the Calculation
      Agent shall furnish to the Trustee, upon written request such information and
      copies of such documents as the Trustee or the Calculation Agent may have and
      as
      are necessary for the Calculation Agent and the Trustee to perform their
      respective duties under Article III or otherwise.

     

    Section
      6.12 Pledge
      and Security Agreement and Other Transaction Documents.
      The
      Trustee shall enter into the Pledge and Security Agreement with the Parent
      on
      the Closing Date and shall hold the collateral pledged thereunder as part of
      the
      Collateral and the Indenture Estate for purposes of this Indenture. The
      provisions of this Article VI shall apply to the Trustee’s exercise of rights
      and remedies under the Pledge and Security Agreement, mutatis mutandis. In
      addition, the Trustee shall enter into such other Transaction Documents on
      the
      Closing Date to which it is party.

     

    Section
      6.13 Custody
      of the Collateral.
      The
      Trustee shall hold such of the Indenture Estate as consists of instruments,
      deposit accounts, negotiable documents, money, goods, letters of credit and
      advices of credit in the State of New York. The Trustee shall hold such of
      the
      Indenture Estate as constitutes investment property through a securities
      intermediary, which securities intermediary shall agree with the Trustee that
      (a) such investment property shall at all times be credited to a securities
      account of the Trustee, (b) such securities intermediary shall treat the Trustee
      as entitled to exercise the rights that comprise each financial asset credited
      to such securities account, (c) all property credited to such securities account
      shall be treated as a financial asset, (d) such securities intermediary shall
      comply with entitlement orders originated by the Trustee without the further
      consent of any other Person, (e) such securities intermediary will not agree
      with any Person other than the Trustee to comply with entitlement orders
      originated by such other Person, (f) such securities account and the property
      credited thereto shall not be subject to any lien, security interest or right
      of
      set-off in favor of such securities intermediary or anyone claiming through
      it
      (other than the Trustee) and (g) such agreement shall be governed by the laws
      of
      the State of New York. Except as permitted by this Section 6.13 or as otherwise
      permitted by any Transaction Document, the Trustee shall not hold any part
      of
      the Indenture Estate through an agent or a nominee.

     

    
      
        
        

      

      
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    Section
      6.14 Preservation
      and Disclosure of Noteholder Lists.
      The
      Registrar shall preserve, in as current a form as is reasonably practicable,
      all
      information as to the names and addresses of the Noteholders received by it,
      including the Approved Holder List. At any time when a default or an Event
      of
      Default has occurred and is continuing, in case either (a) three or more
      Noteholders that have executed and delivered to the Registrar a Confidentiality
      Agreement or (b) one or more Noteholders of at least 25% of the Outstanding
      Principal Balance of the Senior Class of Notes that have executed and delivered
      to the Registrar a Confidentiality Agreement (in each case, “Applicants”)
      apply
      in writing to the Registrar and furnish to the Registrar reasonable proof that
      each such Applicant has owned a Note for a period of at least three months
      preceding the date of such application, and such application states that the
      Applicants desire to communicate with other Noteholders with respect to their
      rights under this Indenture or under the Notes and such application is
      accompanied by a copy of the form of proxy or other communication that such
      Applicants propose to transmit, then the Registrar shall, within five Business
      Days after the receipt of such application, inform such Applicants as to the
      approximate number of Noteholders whose names and addresses appear in such
      information and as to the approximate cost of mailing to such Noteholders the
      form of proxy or other communication, if any, specified in such application.
      The
      Registrar shall, upon the written request of such Applicants, mail to each
      Noteholder whose name and address appears in such information a copy of the
      form
      of proxy or other communication that is specified in such request, with
      reasonable promptness after a tender to the Registrar of the material to be
      mailed and of payment, or provision for the payment, of the reasonable expenses
      of mailing. Each and every Noteholder, by receiving and holding the same, agrees
      with the Issuer and the Registrar that neither the Registrar nor any agent
      of
      the Issuer or the Registrar shall be held accountable by reason of mailing
      any
      material pursuant to a request made under this Section 6.14.

     

    Section
      6.15 Audit
      Rights.
      At the
      Direction of Noteholders of at least 25% of the Outstanding Principal Balance
      of
      the Senior Class of Notes, but subject to limitations on frequency and scope
      as
      set forth in the Inspire License Agreement, the Senior Trustee shall instruct
      the Servicer on behalf of the Issuer to exercise its rights (if currently
      exercisable) pursuant to Section 5.7 of the Inspire License Agreement to have
      the books and records of Inspire audited by a certified public accountant or
      other Person permitted by the Inspire License Agreement.

     

    Section
      6.16 Compliance
      with Applicable Anti-Terrorism and Anti-Money Laundering
      Regulations.
      In
      order to comply with Applicable Laws in effect from time to time applicable
      to
      banking institutions, including those relating to the funding of terrorist
      activities and money laundering, the Trustee is required to obtain, verify
      and
      record certain information relating to Persons that maintain a business
      relationship with the Trustee. Accordingly, the Issuer agrees to provide to
      the
      Trustee upon its request from time to time such identifying information and
      documentation as may be available for the Issuer in order to enable the Trustee
      to comply with such Applicable Laws.

     

    Section
      6.17 Jurisdiction
      of Trustee.
      Each
      of
      the Issuer and the Trustee agrees that the State of New York shall be the
      Trustee’s jurisdiction for purposes of Sections 8-110, 9-304 and 9-305 of the
      UCC.

     

    
      
        
        

      

      
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    ARTICLE
      VII

    SUCCESSOR
      TRUSTEES

     

    Section
      7.1 Resignation
      and Removal of Trustee.
      The
      Trustee may resign as to all or any of the classes of Notes at any time without
      cause by giving at least 30 days’ prior written notice to the Issuer, the
      Servicer and the Noteholders. Noteholders of a majority of the Outstanding
      Principal Balance of any class of Notes may at any time remove the Trustee
      as to
      such class without cause, with the consent of the Issuer (such consent not
      to be
      unreasonably withheld) if no Event of Default shall have occurred and be
      continuing, by an instrument in writing delivered to the Issuer, the Servicer
      and the Trustee being removed. In addition, the Issuer may remove the Trustee
      as
      to any class of Notes if (a) such Trustee fails to comply with Section 310
      of
      the Trust Indenture Act (as if the Trust Indenture Act applied to this
      Indenture) after written request therefor by the Issuer or the Noteholders
      of
      the related class who have been bona fide Noteholders for at least six months,
      (b) such Trustee fails to comply with Section 7.2(d) or any other provision
      hereof, (c) such Trustee is adjudged a bankrupt or an insolvent, (d) a receiver
      or public officer takes charge of such Trustee or its property or (e) such
      Trustee becomes incapable of acting. References to the Trustee in this Indenture
      include any successor Trustee as to all or any of the classes of Notes appointed
      in accordance with this Article VII. Any resignation or removal of the Trustee
      pursuant to this Section 7.1 shall not be effective until a successor Trustee
      shall have been duly appointed and vested as Trustee pursuant to Section
      7.2.

     

    Section
      7.2 Appointment
      of Successor.

     

    (a) In
      the
      case of the resignation or removal of the Trustee as to any class of Notes
      under
      Section 7.1, the Issuer shall promptly appoint a successor Trustee as to such
      class; provided,
      that
      the Noteholders of a majority of the Outstanding Principal Balance of such
      class
      of Notes may appoint, within one year after such resignation or removal, a
      successor Trustee as to such class that may be other than the successor Trustee
      appointed by the Issuer, and such successor Trustee appointed by the Issuer
      shall be superseded by the successor Trustee so appointed by the Noteholders.
      If
      a successor Trustee as to any class of Notes shall not have been appointed
      and
      accepted its appointment hereunder within 60 days after the Trustee gives notice
      of resignation as to such class, the retiring Trustee, the Issuer, the Servicer
      or a majority of the Outstanding Principal Balance of such class of Notes may
      petition any court of competent jurisdiction for the appointment of a successor
      Trustee as to such class. Any successor Trustee so appointed by such court
      shall
      immediately and without further act be superseded by any successor Trustee
      appointed as provided in the first sentence of this paragraph within one year
      from the date of the appointment by such court.

     

    (b) Any
      successor Trustee as to any class of Notes, however appointed, shall execute
      and
      deliver to the Issuer, the Servicer and the predecessor Trustee as to such
      class
      an instrument accepting such appointment, and thereupon such successor Trustee,
      without further act, shall become vested with all the estates, properties,
      rights, powers, duties and trusts of such predecessor Trustee hereunder in
      the
      trusts hereunder applicable to it with like effect as if originally named the
      Trustee as to such class herein; provided,
      that,
      upon the written request of such successor Trustee, such predecessor Trustee
      shall, upon payment of all amounts due and owing to it, execute and deliver
      an
      instrument transferring to such successor Trustee, upon the trusts herein
      expressed applicable to it, all the estates, properties, rights, powers and
      trusts of such predecessor Trustee, and such predecessor Trustee shall duly
      assign, transfer, deliver and pay over to such successor Trustee all moneys
      or
      other property then held by such predecessor Trustee hereunder solely for the
      benefit of such class of Notes.

     

    
      
        
        

      

      
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    (c) If
      a
      successor Trustee is appointed with respect to one or more (but not all) classes
      of the Notes, the Issuer, the predecessor Trustee and each successor Trustee
      with respect to each class of Notes shall execute and deliver an indenture
      supplemental hereto that shall contain such provisions as shall be deemed
      necessary or desirable to confirm that all the rights, powers, trusts and duties
      of the predecessor Trustee with respect to the classes of Notes as to which
      the
      predecessor Trustee is not retiring shall continue to be vested in the
      predecessor Trustee, and shall add to or change any of the provisions of this
      Indenture as shall be necessary to provide for or facilitate the administration
      of the Notes hereunder by more than one Trustee.

     

    (d) Each
      Trustee shall be an Eligible Institution and shall meet the Eligibility
      Requirements, if there be such an institution willing, able and legally
      qualified to perform the duties of a Trustee hereunder.

     

    (e) Any
      Person into which the Trustee may be merged or converted or with which it may
      be
      consolidated, or any Person resulting from any merger, conversion or
      consolidation to which the Trustee shall be a party, or any Person to which
      all
      or substantially all of the corporate trust business of the Trustee (including
      the administration of the trust created by this Indenture) may be transferred,
      shall, subject to the terms of Section 7.2(c), be the Trustee under this
      Indenture without the execution or filing of any paper with any party hereto
      or
      any further act on the part of any party hereto, except where an instrument
      of
      transfer or assignment is required by law to effect such succession, anything
      herein to the contrary notwithstanding.

     

     

    ARTICLE
      VIII

    INDEMNITY

     

    Section
      8.1 Indemnity.
      The
      Issuer shall indemnify and defend the Trustee (and its officers, directors,
      managers, employees and agents) for, and hold it harmless from and against,
      and
      reimburse the Trustee for, any loss, liability or expense incurred by it without
      bad
      faith, gross negligence or willful misconduct
      on its
      part in connection with the acceptance or administration of this Indenture
      and
      its performance of its duties under this Indenture and the Notes or any other
      Transaction Document to which the Trustee is party, including the reasonable
      costs and expenses of defending itself against any claim or liability and of
      complying with any process served upon it or any of its officers in connection
      with the exercise or performance of any of its powers or duties, and hold it
      harmless against any loss, liability or reasonable expense incurred without
      bad
      faith, gross negligence or willful misconduct on its part, arising out of or
      in
      connection with actions taken or omitted to be taken in reliance on any
      Officer’s Certificate furnished hereunder, or the failure to furnish any such
      Officer’s Certificate required to be furnished hereunder. The Trustee shall
      notify the Issuer promptly of any claim asserted against the Trustee for which
      it may seek indemnity; provided,
      however,
      that
      failure to provide such notice shall not invalidate any right to indemnity
      hereunder. The Issuer shall defend any such claim and the Trustee shall
      cooperate in the defense thereof. The Trustee may have separate counsel and
      the
      Issuer shall pay the reasonable fees and expenses of one separate outside
      counsel for the Trustee, in which case the Issuer does not have to defend such
      claim. The Issuer need not pay for any settlements made without its consent;
      provided,
      that
      such consent shall not be unreasonably withheld or delayed. The Issuer need
      not
      reimburse any expense or provide any indemnity against any loss, liability
      or
      expense incurred by the Trustee through bad faith, gross negligence or willful
      misconduct.

     

    Section
      8.2 Noteholders’
      Indemnity.
      The
      Trustee shall be entitled, subject to such Trustee’s duty during a Default to
      act with the standard of care required under this Indenture, to be indemnified
      by the Noteholders of any class of Notes before proceeding to exercise any
      right
      or power under this Indenture or any other Transaction Document at the request
      or Direction of such Noteholders.

     

    
      
        
        

      

      
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    Section
      8.3 Survival.
      The
      provisions of Section 8.1 and Section 8.2 shall survive the termination of
      this
      Indenture or the earlier resignation or removal of the Trustee.

     

    ARTICLE
      IX

    MODIFICATION

     

    Section
      9.1 Modification
      with Consent of Noteholders.
      With
      the consent of Noteholders of a majority of the Outstanding Principal Balance
      of
      the Notes (voting or acting as a single class), the Trustee may amend or modify
      this Indenture, the Notes, the Pledge and Security Agreement, the Purchase
      and
      Sale Agreement, the Bill of Sale, the Residual License Agreement or the
      Servicing Agreement to the extent the Trustee is a party or to consent to the
      amendment or modification of the Pledge and Security Agreement, the Purchase
      and
      Sale Agreement, the Bill of Sale, the Residual License Agreement or the
      Servicing Agreement (or the waiver of any provision thereof). However, no such
      amendment, modification, consent or waiver may, without the consent of
      Noteholders of 100% of the Outstanding Principal Balance of the class of Notes
      affected thereby:

     

    (a) reduce
      the percentage of Noteholders of any such class of Notes required to take or
      approve any action hereunder or thereunder;

     

    (b) reduce
      the amount or change the time of payment of any amount owing or payable with
      respect to any such class of Notes or change the rate of interest or change
      the
      manner of calculation of interest payable with respect to any such class of
      Notes;

     

    (c) alter
      or
      modify in any respect the provisions of this Indenture with respect to the
      Collateral or the Issuer Pledged Collateral for the Notes, the provisions of
      the
      Pledge and Security Agreement with respect to the Issuer Pledged Collateral
      for
      the Notes or the manner of payment or the order of priorities in which payments
      or distributions hereunder will be made as between the Noteholders of such
      Notes
      and the Issuer or as among the Noteholders; or

     

    (d) consent
      to any assignment of the Issuer’s rights to a party other than the Trustee for
      the benefit of the Noteholders;

     

    provided,
      that
      the Noteholders of a majority of the Outstanding Principal Balance of the Senior
      Class of Notes, by written notice to the Trustee, may waive any Default or
      Event
      of Default pursuant to Section 4.5.

     

    It
      shall
      not be necessary for the consent of the Noteholders under this Section 9.1
      to
      approve the particular form of any proposed amendment or waiver, but it shall
      be
      sufficient if such consent approves the substance thereof. Any such modification
      approved by the required Noteholders of any class of Notes will be binding
      on
      the Noteholders of the relevant class of Notes and each party to this
      Indenture.

     

    
      
        
        

      

      
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    After
      an
      amendment under this Section 9.1 becomes effective, the Issuer or, at the
      direction of the Issuer, the Trustee shall mail to the Noteholders a notice
      briefly describing such amendment. Any failure of the Issuer or the Trustee
      to
      mail such notice, or any defect therein, shall not, however, in any way impair
      or affect the validity of any such amendment.

     

    After
      an
      amendment under this Section 9.1 becomes effective, it shall bind every
      Noteholder, whether or not notation thereof is made on any Note held by such
      Noteholder.

     

    Section
      9.2 Modification
      Without Consent of Noteholders.
      The
      Trustee may agree, without the consent of any Noteholder, to amend or modify
      this Indenture, the Notes, the Pledge and Security Agreement, the Purchase
      and
      Sale Agreement, the Bill of Sale, the Residual License Agreement or the
      Servicing Agreement to the extent the Trustee is a party or to consent to the
      amendment or modification of the Pledge and Security Agreement, the Purchase
      and
      Sale Agreement, the Bill of Sale, the Residual License Agreement or the
      Servicing Agreement (or the waiver of any provision thereof) to:

     

    (a) establish
      the terms of any Refinancing Notes or Class B Notes pursuant to Section 2.15
      and
      Section 2.16, respectively;

     

    (b) evidence
      the succession of a successor to the Trustee, the removal of the Trustee or
      the
      appointment of any separate or additional trustee or trustees and to define the
      rights, powers, duties and obligations conferred upon any such separate trustee
      or trustees or co-trustees;

     

    (c) correct,
      confirm or amplify the description of any property at any time subject to the
      lien of this Indenture or to convey, transfer, assign, mortgage or pledge any
      property to or with the Trustee;

     

    (d) cure
      any
      ambiguity in or correct or supplement any defective or inconsistent provision
      of
      this Indenture, the Notes, the Pledge and Security Agreement, the Purchase
      and
      Sale Agreement, the Bill of Sale, the Residual License Agreement or the
      Servicing Agreement, in any manner that will not adversely affect the interests
      of the Noteholders in any material respect as confirmed in an Officer’s
      Certificate of the Issuer;

     

    (e) grant
      or
      confer upon the Trustee for the benefit of the Noteholders any additional
      rights, remedies, powers, authority or security that may be lawfully granted
      or
      conferred and that are not contrary or inconsistent with this
      Indenture;

     

    (f) add
      to
      the covenants or agreements to be observed by the Issuer, which are not contrary
      to this Indenture, or to add Events of Default for the benefit of the
      Noteholders;

     

    (g) comply
      with the requirements of the SEC or any regulatory body or any Applicable Law;
      or

     

    (h) effect
      any indenture supplemental hereto or any other amendment, modification,
      supplement, waiver or consent with respect to this
      Indenture, the Notes, the Pledge and Security Agreement, the Purchase and Sale
      Agreement, the Bill of Sale, the Residual License Agreement or the Servicing
      Agreement;
      provided,
      that
      such indenture supplemental hereto, amendment, modification, supplement, waiver
      or consent will not adversely affect the interests of the Noteholders in any
      material respect as confirmed in an Officer’s Certificate of the
      Issuer.

     

    
      
        
        

      

      
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    After
      an
      amendment under this Section 9.2 becomes effective, the Issuer or, at the
      direction of the Issuer, the Trustee shall mail to the Noteholders a notice
      briefly describing such amendment. Any failure of the Issuer or the Trustee
      to
      mail such notice, or any defect therein, shall not, however, in any way impair
      or affect the validity of any such amendment.

     

    After
      an
      amendment under this Section 9.2 becomes effective, it shall bind every
      Noteholder, whether or not notation thereof is made on any Note held by such
      Noteholder.

     

    Section
      9.3 Subordination;
      Priority of Payments.
      The
      subordination provisions contained in Article X may not be amended or modified
      without the consent of Noteholders of 100% of the Outstanding Principal Balance
      of the class of Notes affected thereby. In no event shall the provisions set
      forth in Section 3.7 relating to the priority of payment of Expenses be amended
      or modified. In no event shall the provisions of Section 3.7(b) (or this
      sentence of Section 9.3) be amended or modified without the prior written
      consent of the Parent (the Parent shall be deemed to be a third party
      beneficiary of this Indenture in respect of the last sentence of this Section
      9.3).

     

    Section
      9.4 Execution
      of Amendments by Trustee.
      In
      executing, or accepting the additional trusts created by, any amendment or
      modification to this Indenture permitted by this Article IX or the modifications
      thereby of the trusts created by this Indenture, the Trustee shall be entitled
      to receive, and shall be fully protected in relying upon, an Officer’s
      Certificate and an Opinion of Counsel stating that the execution of such
      amendment is authorized or permitted by this Indenture. The Trustee may, but
      shall not be obligated to, enter into any such amendment that affects the
      Trustee’s own rights, duties or immunities under this Indenture or
      otherwise.

     

    Section
      9.5 Conformity
      with Trust Indenture Act.
      Every
      indenture supplemental hereto pursuant to this Article IX shall conform to
      the
      requirements of the Trust Indenture Act as then in effect (as if the Trust
      Indenture Act applied to this Indenture).

     

    ARTICLE
      X

    SUBORDINATION

     

    Section
      10.1 Subordination
      of the Notes.

     

    (a) Each
      of
      the Issuer and the Trustee (on behalf of the Noteholders) covenants and agrees,
      and each Noteholder, by its acceptance of a Note, covenants and agrees, that
      the
      Notes of each class will be issued subject to the provisions of this Article
      X.
      Each Noteholder, by its acceptance of a Note, further agrees that all amounts
      payable on any Note will, to the extent and in the manner set forth in this
      Article X and Section 3.7, be subordinated in right of payment to the prior
      payment in full of all Expenses payable to the Service Providers pursuant to
      this Indenture and the other Transaction Documents. Each Noteholder of a Class
      B
      Note, by its acceptance of a Class B Note, further agrees that all amounts
      payable on any Class B Note will, to the extent and in the manner set forth
      in
      this Article X and Section 3.7, be subordinated in right of payment to the
      payment in full of the Class A Notes. Any claim to payment so stated to be
      subordinated is referred to as a “Subordinated
      Claim”;
      each
      claim to payment to which another claim to payment is a Subordinated Claim
      is
      referred to as a “Senior
      Claim”
with
      respect to such Subordinated Claim.

     

    
      
        
        

      

      
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    (b) If,
      prior
      to the payment in full of all Senior Claims then due and payable, the Trustee
      or
      any Noteholder of a Subordinated Claim shall have received any payment or
      distribution in respect of such Subordinated Claim in excess of the amount
      to
      which such Noteholder was then entitled under Section 3.7, then such payment
      or
      distribution shall be received and held in trust by such Person and paid over
      or
      delivered to the Trustee for application as provided in Section
      3.7.

     

    (c) If
      any
      Service Provider, the Trustee or any Noteholder of any Senior Claim receives
      any
      payment in respect of any Senior Claim that is subsequently invalidated,
      declared preferential, set aside and/or required to be repaid to a trustee,
      receiver or other party, then, to the extent such payment is so invalidated,
      declared preferential, set aside and/or required to be repaid, such Senior
      Claim
      shall be revived and continue in full force and effect and shall be entitled
      to
      the benefits of this Article X, all as if such payment had not been
      received.

     

    (d) The
      Trustee (on its own behalf and on behalf of the Noteholders) and the Issuer
      each
      confirm that the payment priorities specified in Section 3.7 shall apply in
      all
      circumstances.

     

    (e) Each
      Noteholder, by its acceptance of a Note, authorizes and expressly directs the
      Trustee on its behalf to take such action as may be necessary or appropriate
      to
      effectuate the subordination provided in this Article X, and appoints the
      Trustee its attorney-in-fact for such purposes, including, in the event of
      any
      dissolution, winding-up, liquidation or reorganization of the Issuer (whether
      in
      bankruptcy, insolvency, receivership, reorganization or similar proceedings
      or
      upon an assignment for the benefit of creditors or otherwise), any actions
      tending towards liquidation of the property and assets of the Issuer or the
      filing of a claim for the unpaid balance of its Notes in the form required
      in
      those proceedings.

     

    (f) If
      payment on the Notes is accelerated as a result of an Event of Default, the
      Issuer shall promptly notify the holders of the Senior Claims of such
      acceleration.

     

    (g) After
      all
      Senior Claims are paid in full and until the Subordinated Claims are paid in
      full, and to the extent that such Senior Claims shall have been paid with funds
      that would, but for the subordination pursuant to this Article X, have been
      paid
      to and retained by such holders of Subordinated Claims, the holders of
      Subordinated Claims shall be subrogated to the rights of holders of Senior
      Claims to receive payments applicable to Senior Claims. A payment made under
      this Article X to holders of Senior Claims that otherwise would have been made
      to the holders of Subordinated Claims is not, as between the Issuer and the
      holders of Subordinated Claims, a payment by the Issuer.

     

    (h) No
      right
      of any holder of any Senior Claim to enforce the subordination of any
      Subordinated Claim shall be impaired by an act or failure to act by the Issuer
      or the Trustee or by any failure by either the Issuer or the Trustee to comply
      with this Indenture.

     

    
      
        
        

      

      
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    (i) Each
      Noteholder by accepting a Note acknowledges and agrees that the foregoing
      subordination provisions are, and are intended to be, an inducement and a
      consideration to each holder of any Senior Claim, whether such Senior Claim
      was
      created or acquired before or after the issuance of such Noteholder’s claim, to
      acquire and continue to hold such Senior Claim, and such holder of any Senior
      Claim shall be deemed conclusively to have relied on such subordination
      provisions in acquiring and continuing to hold such Senior Claim. Each holder
      of
      a Subordinated Claim agrees to comply with the provisions of Article
      IV.

     

    ARTICLE
      XI

    DISCHARGE
      OF INDENTURE

     

    Section
      11.1 Discharge
      of Indenture.

     

    (a) When
      (i)
      all outstanding Secured Obligations have been satisfied and the Issuer delivers
      to the Trustee all Outstanding Notes (other than Notes replaced pursuant to
      Section 2.8) for cancellation or (ii) all Outstanding Notes have become due
      and
      payable, whether at maturity or as a result of the mailing of a notice of an
      Optional Redemption pursuant to Section 3.10(b) or any other Redemption pursuant
      to Section 3.10(c), in each case that is subject to Section 3.11(c), and the
      Issuer irrevocably deposits in the Redemption Account funds sufficient to pay
      all remaining Expenses accrued and payable through such date and to pay all
      principal and interest and premium (if any) on outstanding Notes at maturity
      or
      upon redemption all Outstanding Notes, including interest and any Premium
      thereon to maturity or the Redemption Date (other than Notes replaced pursuant
      to Section 2.8), and if in either case the Issuer pays all other sums payable
      hereunder by the Issuer, then this Indenture shall, subject to Section 11.1(b),
      cease to be of further effect and the security interest granted to the Trustee
      hereunder in the Collateral and the Indenture Estate shall terminate. The
      Trustee shall acknowledge satisfaction and discharge of this Indenture, and
      file
      all UCC termination statements and similar documents prepared by the Issuer,
      on
      demand of the Issuer accompanied by an Officer’s Certificate and an Opinion of
      Counsel, at the cost and expense of the Issuer, to the effect that any
      conditions precedent to a discharge of this Indenture have been
      met.

     

    (b) Notwithstanding
      Section 11.1(a), the Issuer’s obligations in Section 8.1 and the Trustee’s
      obligations in Section 12.13 shall survive the satisfaction and discharge of
      this Indenture.

     

     

    ARTICLE
      XII

    MISCELLANEOUS

     

    Section
      12.1 Right
      of Trustee to Perform.
      If the
      Issuer for any reason fails to observe or punctually to perform any of its
      obligations to the Trustee, whether under this Indenture, under any of the
      other
      Transaction Documents or otherwise, the Trustee shall have the power (but shall
      have no obligation), on behalf of or in the name of the Issuer or otherwise,
      to
      perform such obligations or cause performance of such obligations and to take
      any steps that the Trustee may, in its absolute discretion, consider appropriate
      with a view to remedying, or mitigating the consequences of, such failure by
      the
      Issuer, in which case the reasonable expenses of the Trustee, including the
      fees
      and expenses of its counsel, incurred in connection therewith shall be payable
      by the Issuer under Section 8.1; provided,
      that no
      exercise or failure to exercise this power by the Trustee shall in any way
      prejudice the Trustee’s other rights under this Indenture or any of the other
      Transaction Documents.

     

    
      
        
        

      

      
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    Section
      12.2 Waiver.
      Any
      waiver by any party of any provision of this Indenture or any right, remedy
      or
      option hereunder shall only prevent and estop such party from thereafter
      enforcing such provision, right, remedy or option if such waiver is given in
      writing and only as to the specific instance and for the specific purpose for
      which such waiver was given. The failure or refusal of any party hereto to
      insist in any one or more instances, or in a course of dealing, upon the strict
      performance of any of the terms or provisions of this Indenture by any party
      hereto or the partial exercise of any right, remedy or option hereunder shall
      not be construed as a waiver or relinquishment of any such term or provision,
      but the same shall continue in full force and effect. No failure on the part
      of
      the Trustee to exercise, and no delay on its part in exercising, any right
      or
      remedy under this Indenture will operate as a waiver thereof, nor will any
      single or partial exercise of any right or remedy preclude any other or further
      exercise thereof or the exercise of any other right or remedy. The rights and
      remedies provided in this Indenture are cumulative and not exclusive of any
      rights or remedies provided by law.

     

    Section
      12.3 Severability.
      In the
      event that any provision of this Indenture or the application thereof to any
      party hereto or to any circumstance or in any jurisdiction governing this
      Indenture shall, to any extent, be invalid or unenforceable under any applicable
      statute, regulation or rule of law, then such provision shall be deemed
      inoperative to the extent that it is invalid or unenforceable, and the remainder
      of this Indenture, and the application of any such invalid or unenforceable
      provision to the parties, jurisdictions or circumstances other than to whom
      or
      to which it is held invalid or unenforceable, shall not be affected thereby
      nor
      shall the same affect the validity or enforceability of this Indenture. The
      parties hereto further agree that the holding by any court of competent
      jurisdiction that any remedy pursued by the Trustee hereunder is unavailable
      or
      unenforceable shall not affect in any way the ability of the Trustee to pursue
      any other remedy available to it.

     

    Section
      12.4 Restrictions
      on Exercise of Certain Rights.
      The
      Trustee and, during the continuance of a payment Default with respect to the
      Senior Class of Notes, the Senior Trustee, except as otherwise provided in
      Section 4.4, may sue for recovery or take any other steps for the purpose of
      recovering any of the obligations hereunder or any other debts or liabilities
      whatsoever owing to it by the Issuer. Each of the Noteholders shall at all
      times
      be deemed to have agreed by virtue of the acceptance of the Notes that only
      the
      Trustee and, during the continuance of a payment Default with respect to the
      Senior Class of Notes, the Senior Trustee, except as provided in Section 4.4,
      may take any steps for the purpose of procuring the appointment of an
      administrative receiver, examiner, receiver or similar officer or the making
      of
      an administration order or for instituting any bankruptcy, reorganization,
      arrangement, insolvency, winding-up, liquidation, composition, examination
      or
      any like proceedings under Applicable Law.

     

    Section
      12.5 Notices.
      All
      Notices shall be in writing and shall be effective (a) upon receipt when sent
      through the mails, registered or certified mail, return receipt requested,
      postage prepaid, with such receipt to be effective the date of delivery
      indicated on the return receipt, (b) upon receipt when sent by an overnight
      courier, (c) on the date personally delivered to an authorized officer of the
      party to which sent, (d) on the date transmitted by legible telecopier
      transmission with a confirmation of receipt or (e) in the case of reports under
      Article III and any other report that is of a routine nature, on the date sent
      by first class mail or overnight courier or transmitted by legible telecopier
      transmission, in all cases, with a copy emailed to the recipient at the
      applicable address, addressed to the recipient as follows:

     

    
      
        
        

      

      
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    if
      to the
      Issuer, to:

     

    Azithromycin
      Royalty Sub LLC

    c/o
      InSite Vision Incorporated

    965
      Atlantic Avenue

    Alameda,
      California 94501

    Attention:
      Louis Drapeau

    Telephone:
      510-747-1241

    Facsimile:
      510-865-5700

    Email:
      ldrapeau@insite.com

     

    if
      to the
      Parent or the Servicer, to:

     

    InSite
      Vision Incorporated

    965
      Atlantic Avenue

    Alameda,
      California 94501

    Attention:
      Louis
      Drapeau

    Telephone:
      510-747-1241

    Facsimile:
      510-865-5700

    Email:
      ldrapeau@insite.com

     

    if
      to the
      Trustee, the Registrar, the Paying Agent or the Calculation Agent,
      to:

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services (Azithromycin Royalty Sub LLC)

    Telephone:
      617-603-6553

    Facsimile:
      617-603-6683

     

    A
      copy of
      each notice given hereunder to any party hereto shall also be given to each
      of
      the other parties hereto. Each party hereto may, by notice given in accordance
      herewith to each of the other parties hereto, designate any further or different
      address to which subsequent Notices shall be sent; provided,
      however,
      in the
      case of Inspire or Pfizer, such notice may be given by the
      Servicer.

     

    Section
      12.6 Assignments.
      This
      Indenture shall be a continuing obligation of the Issuer and shall (a) be
      binding upon the Issuer and its successors and assigns and (b) inure to the
      benefit of and be enforceable by the Trustee and by its successors, transferees
      and assigns. The Issuer may not assign any of its obligations under this
      Indenture or delegate any of its duties hereunder.

     

    
      
        
        

      

      
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    Section
      12.7 Application
      to Court.
      The
      Trustee may at any time after the service of an Acceleration Notice apply to
      any
      court of competent jurisdiction for an order that the terms of this Indenture
      be
      carried into execution under the direction of such court and for the appointment
      of a Receiver of the Collateral or any part thereof and for any other order
      in
      relation to the administration of this Indenture as the Trustee shall deem
      fit,
      and it may assent to or approve any application to any court of competent
      jurisdiction made at the instigation of any of the Noteholders and shall be
      indemnified by the Issuer against all costs, charges and expenses incurred
      by it
      in relation to any such application or proceedings.

     

    Section
      12.8 GOVERNING
      LAW.
      THIS
      INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
      SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF
      RELATING TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL
      OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND
      REMEDIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS.

     

    Section
      12.9 Jurisdiction.

     

    (a) Each
      of
      the parties hereto agrees that the U.S. federal and State of New York courts
      located in the Borough of Manhattan, The City of New York shall have
      jurisdiction to hear and determine any suit, action or proceeding, and to settle
      any disputes, which may arise out of or in connection with this Indenture and,
      for such purposes, submits to the jurisdiction of such courts. Each of the
      parties hereto waives any objection that it might now or hereafter have to
      the
      U.S. federal or State of New York courts located in the Borough of Manhattan,
      The City of New York being nominated as the forum to hear and determine any
      suit, action or proceeding, and to settle any disputes, which may arise out
      of
      or in connection with this Indenture and agrees not to claim that any such
      court
      is not a convenient or appropriate forum. Each of the parties hereto has
      irrevocably designated, appointed and empowered the respective Persons named
      in
Exhibit
      C
      as its
      designee, appointee and agent to receive, accept and acknowledge for and on
      its
      behalf, and its properties, assets and revenues, service of any and all legal
      process, summons, notices and documents that may be served in any suit, action
      or proceeding brought against such party in any United States or state court
      arising out of or relating to this Indenture or the Notes. If for any reason
      any
      such designee, appointee and agent hereunder shall cease to be available to
      act
      as such, such party agrees to designate a new designee, appointee and agent
      in
      the Borough of Manhattan, The City of New York on the terms and for the purposes
      of this Section 12.9 satisfactory to such other party. Each party further hereby
      irrevocably consents and agrees to the service of any and all legal process,
      summons, notices and documents in any suit, action or proceeding against such
      party by serving a copy thereof upon the relevant agent for service of process
      referred to in this Section 12.9 (whether or not the appointment of such agent
      shall for any reason prove to be ineffective or such agent shall accept or
      acknowledge such service) or by mailing copies thereof by registered or
      certified mail, postage prepaid, to such party at its address specified in
      or
      designated pursuant to this Indenture. Each party agrees that the failure of
      any
      such designee, appointee and agent to give any notice of such service to it
      shall not impair or affect in any way the validity of such service or any
      judgment rendered in any action or proceeding based thereon. Nothing herein
      shall in any way be deemed to limit the ability of the Issuer or the Trustee
      and
      the Noteholders, as the case may be, to serve any such legal process, summons,
      notices and documents in any other manner permitted by Applicable Law or to
      obtain jurisdiction over such party or bring suits, actions or proceedings
      against such party in such other jurisdictions, and in such manner, as may
      be
      permitted by Applicable Law.

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

     

    (b) The
      submission to the jurisdiction of the courts referred to in Section 12.9(a)
      shall not (and shall not be construed so as to) limit the right of the Trustee
      to take proceedings against the Issuer in any other court of competent
      jurisdiction, nor shall the taking of proceedings in any one or more
      jurisdictions preclude the taking of proceedings in any other jurisdiction,
      whether concurrently or not.

     

    (c) If,
      for
      the purpose of obtaining a judgment or order in any court, it is necessary
      to
      convert a sum due hereunder to any Noteholder from U.S. dollars into another
      currency, the Issuer has agreed, and each Noteholder by holding a Note will
      be
      deemed to have agreed, to the fullest extent that they may effectively do so,
      that the rate of exchange used shall be that at which, in accordance with normal
      banking procedures, such Noteholder could purchase U.S. dollars with such other
      currency in the Borough of Manhattan, The City of New York on the Business
      Day
      preceding the day on which final judgment is given.

     

    (d) The
      obligation of the Issuer in respect of any sum payable by it to a Noteholder
      shall, notwithstanding any judgment or order in a currency other than U.S.
      dollars (the “Judgment
      Currency”),
      be
      discharged only to the extent that, on the Business Day following receipt by
      such Noteholder of such security of any sum adjudged to be so due in the
      Judgment Currency, such Noteholder may in accordance with normal banking
      procedures purchase U.S. dollars with the Judgment Currency. If the amount
      of
      U.S. dollars so purchased is less than the sum originally due to such Noteholder
      in the Judgment Currency (determined in the manner set forth in Section
      12.9(c)), the Issuer agrees, as a separate obligation and notwithstanding any
      such judgment, to indemnify such Noteholder against such loss, and, if the
      amount of the U.S. dollars so purchased exceeds the sum originally due to such
      Noteholder, such Noteholder agrees to remit to the Issuer such excess, provided
      that such Noteholder shall have no obligation to remit any such excess as long
      as the Issuer shall have failed to pay such Noteholder any obligations due
      and
      payable under the Notes of such Noteholder, in which case such excess may be
      applied to such obligations of the Issuer under such Notes in accordance with
      the terms thereof. The foregoing indemnity shall constitute a separate and
      independent obligation of the Issuer and shall continue in full force and effect
      notwithstanding any such judgment or order as aforesaid.

     

    (e) EACH
      OF
      THE PARTIES HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION,
      PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION WITH THIS INDENTURE
      OR ANY MATTER ARISING HEREUNDER.

     

    Section
      12.10 Counterparts.
      This
      Indenture may be executed in one or more counterparts by the parties hereto,
      and
      each such counterpart shall be considered an original and all such counterparts
      shall constitute one and the same instrument.

     

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

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

     

    Section
      12.12 Trust
      Indenture Act.
      This
      Indenture shall not be qualified under the Trust Indenture Act and shall not
      be
      subject to the provisions of the Trust Indenture Act, although it shall
      incorporate such provisions for ease of reference.

     

    Section
      12.13 Confidential
      Information.
      The
      Trustee, in its individual capacity and as Trustee, agrees and acknowledges
      that
      all information (including Confidential Information) provided to the Trustee
      by
      the Parent may be considered to be proprietary and confidential information
      of
      Inspire. The Trustee agrees to take all reasonable precautions necessary to
      keep
      such information confidential, which precautions shall be no less stringent
      than
      those that the Trustee employs to protect its own confidential information.
      The
      Trustee shall not disclose to any third party other than as set forth herein,
      and shall not use for any purpose other than the exercise of the Trustee’s
      rights and the performance of its obligations under this Indenture, any such
      information without the prior written consent of Inspire. In addition, the
      Trustee agrees to be bound by the provisions of Article 8 of the Inspire License
      Agreement to the extent it receives confidential information of Inspire pursuant
      to Section 5.3 of this Indenture or Section 4.1 of the Servicing Agreement.
      The
      Trustee shall limit access to such information received hereunder to (a) its
      directors, officers, managers and employees and (b) its legal advisors, to
      each
      of whom disclosure of such information is necessary for the purposes described
      above; provided,
      however,
      that in
      each case such party has expressly agreed to maintain such information in
      confidence under terms and conditions substantially identical to the terms
      of
      this Section 12.13.

     

    The
      Trustee agrees that Inspire does not have any responsibility whatsoever for
      any
      reliance on such information by the Trustee or by any Person to whom such
      information is disclosed in connection with this Indenture, whether related
      to
      the purposes described above or otherwise. Without limiting the generality
      of
      the foregoing, the Trustee agrees that Inspire makes no representation or
      warranty whatsoever to it with respect to such information or its suitability
      for such purposes. The Trustee further agrees that it shall not acquire any
      rights against Inspire or any employee, officer, director, manager,
      representative or agent of Inspire (together with Inspire, “Confidential
      Parties”)
      as a
      result of the disclosure of such information to the Trustee or to any Noteholder
      or Beneficial Holder and that no Confidential Party has any duty,
      responsibility, liability or obligation to any Person as a result of any such
      disclosure.

     

    In
      the
      event the Trustee is required to disclose any such information received
      hereunder in order to comply with any laws, regulations or court orders, it
      may
      disclose such information only to the extent necessary for such compliance;
      provided,
      however,
      that it
      shall give Inspire and the Issuer reasonable advance written notice of any
      such
      court proceeding in which such disclosure may be required pursuant to a court
      order so as to afford Inspire a full and fair opportunity to oppose the issuance
      of such order and to appeal therefrom and shall cooperate reasonably with
      Inspire in opposing such order and in securing confidential treatment of any
      such information to be disclosed and/or obtaining a protective order narrowing
      the scope of such disclosure.

     

    The
      Trustee agrees that Inspire is an express third-party beneficiary of the
      provisions of this Section 12.13 and Article III.

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

    Each
      of
      the Calculation Agent, the Paying Agent and the Registrar agrees to be bound
      by
      this Section 12.13 to the same extent as the Trustee.

     

    Section
      12.14 Limited
      Recourse.
      Each of
      the parties hereto accepts that the enforceability against the Issuer of the
      obligations of the Issuer hereunder and under the Notes shall be limited to
      the
      assets of the Issuer, whether tangible or intangible, real or personal
      (including the Collateral) and the proceeds thereof. Once all such assets have
      been realized upon and such assets (and proceeds thereof) have been applied
      in
      accordance with Article III, any outstanding obligations of the Issuer shall
      be
      extinguished. Each of the parties hereto further agrees that it shall take
      no
      action against any employee, director, officer or administrator of the Issuer
      or
      the Trustee in relation to this Indenture; provided,
      that
      nothing herein shall limit the Issuer (or its permitted successors or assigns,
      including any party hereto that becomes such a successor or assign) from
      pursuing claims, if any, against any such person. The provisions of this Section
      12.14 shall survive termination of this Indenture; provided,
      further,
      that
      the foregoing shall not in any way limit, impair or otherwise affect any rights
      of the Trustee or the Noteholders to proceed against any such Person (a) for
      intentional and willful fraud or intentional and willful misrepresentations
      on
      the part of or by such Person or (b) for the receipt of any distributions or
      payments to which the Issuer or any successor in interest is entitled, other
      than distributions expressly permitted pursuant to this Indenture and the other
      Transaction Documents. 

     

    Section
      12.15 Tax
      Characterization; No Gross Up; Withholding.
      

     

    (a) The
      Issuer has entered into this Indenture, and the Notes will be issued, with
      the
      intention that, for federal, state and local income, single business and
      franchise Tax purposes, the Notes will qualify as indebtedness. The Issuer,
      by
      entering into this Indenture, and each Noteholder or Beneficial Holder, agree
      to
      treat the Notes for federal, state and local income, single business and
      franchise Tax purposes as indebtedness.

     

    (b) The
      Issuer shall not be obligated to pay any additional amounts to the Noteholders
      or Beneficial Holders as a result of any withholding or deduction for, or on
      account of, any present or future Taxes imposed on payments in respect of the
      Notes.

     

    (c) If
      any
      withholding Tax is imposed on the Issuer’s payment (or allocations of income)
      under the Notes to any Noteholder, such Tax shall reduce the amount otherwise
      distributable to such Noteholder. The Trustee is hereby authorized and directed
      to retain from amounts otherwise distributable to any Noteholder sufficient
      funds for the payment of any withholding Tax that is legally owed by the Issuer
      (but such authorization shall not prevent the Trustee from contesting any such
      withholding Tax in appropriate proceedings and withholding payment of such
      Tax,
      if permitted by Applicable Law, pending the outcome of such proceedings). The
      amount of any withholding Tax imposed with respect to any Noteholder shall
      be
      treated as cash distributed to such Noteholder at the time it is withheld by
      the
      Trustee and remitted to the appropriate taxing authority. If there is a
      possibility that withholding Tax is payable with respect to a payment under
      the
      Notes, the Trustee may in its sole discretion withhold such amounts in
      accordance with this Section 12.15. If any Noteholder wishes to apply for a
      refund of any such withholding Tax, the Trustee shall reasonably cooperate
      with
      such Noteholder in making such claim so long as such Noteholder agrees to
      reimburse the Trustee for any out-of-pocket expenses incurred. Nothing herein
      shall impose an obligation on the part of the Trustee to determine the amount
      of
      any Tax or withholding obligation on the part of the Issuer or in respect of
      the
      Notes.

     

    [SIGNATURE
      PAGE FOLLOWS]

    

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Indenture to be duly
      executed, all as of the date first written above.

     

    
      	
              AZITHROMYCIN
                ROYALTY SUB LLC,

            
	
              as
                Issuer

            
	 
	
              By:

            	
              InSite
                Vision Incorporated, its Manager

            
	 	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            
	 	 
	
              U.S.
                BANK NATIONAL ASSOCIATION,

            
	
              as
                Trustee

            
	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            

    

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    FORM
      OF ORIGINAL CLASS A NOTE

     

    [INSERT
      THE APPLICABLE LEGEND(S) SET FORTH IN SECTION 2.2]

     

    AZITHROMYCIN
      ROYALTY SUB LLC

     

    Azithromycin
      PhaRMASM
      Secured 16% Notes Due 2019

     

    Class
      A

     

    
      	
              No.
                __________

            	
              CUSIP:
                __________

            

    

    

    U.S.$60,000,000

     

    AZITHROMYCIN
      ROYALTY SUB LLC, a limited liability company organized under the laws of the
      State of Delaware (herein referred to as the “Issuer”),
      for
      value received, hereby promises to pay to CEDE & CO., or registered assigns,
      the principal amount set forth on Schedule
      I
      hereto
      on or before May 15, 2019 (the “Final
      Legal Maturity Date”)
      and to
      pay interest quarterly in arrears on the Outstanding Principal Balance hereof
      at
      a rate per annum equal to 16% (the “Stated
      Rate of Interest”),
      from
      the date hereof until the Outstanding Principal Balance hereof is paid or duly
      provided for, which interest shall be due and payable on each Payment Date;
      provided,
      that,
      with respect to any Payment Date (other than the Final Legal Maturity Date
      or
      any Redemption Date), any such interest in excess of the portion of the
      Available Collections Amount available to pay such interest on such Payment
      Date
      and funds in the Interest Reserve Account and the Capital Account shall be
      payable in full not later than the immediately succeeding Payment Date (together
      with Additional Interest on the amount of unpaid interest from the Payment
      Date
      on which it was due until the date on which it is paid, compounded quarterly
      on
      each Payment Date). Interest on this Note in each Interest Accrual Period shall
      be calculated on the basis of a 360-day year consisting of twelve 30-day months.
      If this Note is issued in the form of a Global Note, in accordance with the
      requirements of DTC, the Issuer will cause the Trustee to authenticate an
      additional Note or additional Notes in the appropriate principal amount such
      that neither this Note nor any other such Note may exceed an aggregate principal
      amount of U.S.$500,000,000 at any time.

     

    This
      Note
      is a duly authorized issue of Notes of the Issuer, designated as its
“Azithromycin PhaRMASM
      Secured
      16% Notes Due 2019”, issued under the Indenture dated as of February 21, 2008
      (as amended, restated, supplemented or otherwise modified from time to time
      in
      accordance with the terms thereof, the “Indenture”),
      between the Issuer and U.S. Bank National Association, as trustee (including
      any
      successor appointed in accordance with the terms of the Indenture, the
“Trustee”).
      The
      Indenture also provides for the issuance of Refinancing Notes and Class B Notes.
      All capitalized terms used in this Note and not defined herein shall have the
      respective meanings assigned to such terms in the Indenture. Reference is made
      to the Indenture and all indentures supplemental thereto for a statement of
      the
      respective rights and obligations thereunder of the Issuer, the Trustee and
      the
      Noteholders. This Note is subject to all terms of the Indenture.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    The
      Issuer will pay the Outstanding Principal Balance of this Note on or prior
      to
      the Final Legal Maturity Date on the Payment Dates specified in the Indenture,
      subject to the availability of the Available Collections Amount therefor after
      making payments entitled to priority under Section 3.7 of the
      Indenture.

     

    The
      indebtedness evidenced by the Original Class A Notes is, to the extent and
      in
      the manner provided in the Indenture, senior in right of payment to the right
      of
      payment of the Class B Notes, and this Note is issued subject to such
      provisions. The maturity of this Note is subject to acceleration upon the
      occurrence and during the continuance of the Events of Default specified in
      the
      Indenture.

     

    The
      Issuer may redeem all or part of the Outstanding Principal Balance of this
      Note
      prior to the Final Legal Maturity Date on the Payment Dates, in the amounts
      and
      under the circumstances specified in the Indenture.

     

    Any
      amount of Premium or interest on this Note that is not paid when due shall,
      to
      the fullest extent permitted by Applicable Law, bear interest (“Additional
      Interest”)
      at an
      interest rate per annum equal to the Stated Rate of Interest from the date
      when
      due until such amount is paid or duly provided for, compounded quarterly and
      payable on the next succeeding Payment Date, subject to the availability of
      the
      Available Collections Amount therefor after making payments entitled to priority
      under Section 3.7 of the Indenture.

     

    This
      Note
      is and will be secured by the Collateral pledged as security therefor as
      provided in the Indenture.

     

    Subject
      to and in accordance with the terms of the Indenture, there will be distributed
      quarterly from the Collection Account on each Payment Date commencing on May
      15,
      2008, to the Person in whose name this Note is registered at the close of
      business on the Record Date with respect to such Payment Date, in the manner
      specified in Section 3.7 of the Indenture, such Person’s pro rata share (based
      on the aggregate percentage of the Outstanding Principal Balance of the Original
      Class A Notes held by such Person) of the aggregate amount distributable to
      all
      Noteholders of Original Class A Notes on such Payment Date.

     

    All
      amounts payable in respect of this Note shall be payable in U.S. dollars in
      the
      manner provided in the Indenture to the Noteholder hereof on the Record Date
      relating to such payment. The final payment with respect to this Note, however,
      shall be made only upon presentation and surrender of this Note by the
      Noteholder or its agent at an office or agency of the Trustee or Paying Agent
      in
      New York City. At such time, if any, as this Note is issued in the form of
      one
      or more Definitive Notes, payments on a Payment Date shall be made by check
      mailed to each Noteholder of such a Definitive Note on the applicable Record
      Date at its address appearing on the Register maintained with respect to the
      Original Class A Notes. Alternatively, upon application in writing to the
      Trustee or other Paying Agent, not later than the applicable Record Date, by
      a
      Noteholder, any such payments shall be made by wire transfer to an account
      designated by such Noteholder at a financial institution in New York City.
      The
      final payment with respect to any such Definitive Note, however, shall be made
      only upon presentation and surrender of such Definitive Note by the Noteholder
      or its agent at an office or agency of the Trustee or Paying Agent in New York
      City. Notwithstanding the foregoing, payments in respect of this Note issued
      in
      the form of a Global Note (including principal, Premium, if any, and interest)
      shall be made by wire transfer of immediately available funds to the account
      specified by DTC. Any reduction in the Outstanding Principal Balance of this
      Note (or any one or more predecessor Original Class A Notes) effected by any
      payments made on any Payment Date shall be binding upon all future Noteholders
      of this Note and of any Original Class A Note issued upon the registration
      of
      transfer of, in exchange or in lieu of or upon the refinancing of this Note,
      whether or not noted hereon.

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    The
      Noteholder of this Note agrees, by acceptance hereof, to pay over to the Trustee
      any money (including principal, Premium, if any, and interest) paid to it in
      respect of this Note in the event that the Trustee, acting in good faith,
      determines subsequently that such monies were not paid in accordance with the
      priority of payment provisions of the Indenture or as a result of any other
      mistake of fact or law on the part of the Trustee in making such
      payment.

     

    This
      Note
      is issuable only in registered form. A Noteholder or Beneficial Holder may
      transfer this Note or a Beneficial Interest herein only by delivery of a written
      application to the Registrar stating the name of the proposed transferee, a
      Confidentiality Agreement duly executed and delivered to the Registrar by such
      transferee and otherwise complying with the terms of the Indenture. No such
      transfer shall be effected until, and such transferee shall succeed to the
      rights of a Noteholder only upon, final acceptance and registration of the
      transfer by the Registrar in the Register. When this Note is presented to the
      Registrar with a request to register the transfer or to exchange it for an
      equal
      principal amount of Original Class A Notes of other authorized denominations,
      the Registrar shall register the transfer or make the exchange as requested
      if
      its requirements for such transactions are met (including, in the case of a
      transfer, that such Note is duly endorsed or accompanied by a written instrument
      of transfer in form satisfactory to the Trustee and Registrar duly executed
      by
      the Noteholder thereof or by an attorney who is authorized in writing to act
      on
      behalf of the Noteholder and that the transferee has executed and delivered
      to
      the Registrar a Confidentiality Agreement). No service charge shall be made
      for
      any registration of transfer or exchange of this Note, but the party requesting
      such new Original Class A Note or Original Class A Notes may be required to
      pay
      a sum sufficient to cover any transfer Tax or similar governmental charge
      payable in connection therewith.

     

    Prior
      to
      the registration of transfer of this Note, the Issuer and the Trustee may deem
      and treat the Person in whose name this Note (as of the day of determination
      or
      as of such other date as may be specified in the Indenture) is registered as
      the
      absolute owner and Noteholder hereof for the purpose of receiving payment of
      all
      amounts payable with respect to this Note and for all other purposes, and
      neither the Issuer nor the Trustee shall be affected by notice to the
      contrary.

     

    The
      Indenture permits the amendment or modification of the Indenture and the
      Original Class A Notes by the Issuer with the consent of the Noteholders of
      a
      majority of the Outstanding Principal Balance of all Notes (voting or acting
      as
      a single class). However, no amendment or modification of the Indenture or
      the
      Original Class A Notes may, without the consent of Noteholders of 100% of the
      Outstanding Principal Balance of the class of Notes affected thereby, (i) reduce
      the percentage of Noteholders of any such class of Notes required to take or
      approve any action under the Indenture, (ii) reduce the amount or change the
      time of payment of any amount owing or payable with respect to any such class
      of
      Notes or change the rate of interest or change the manner of calculation of
      interest payable with respect to any such class of Notes, (iii) alter or modify
      the provisions with respect to the Collateral for the Notes or the manner of
      payment or the order of priorities in which payments or distributions under
      the
      Indenture will be made as between the Noteholders of such Notes and the Issuer
      or as among the Noteholders or (iv) consent to any assignment of the Issuer’s
      rights to a party other than the Trustee for the benefit of the Noteholders.
      Any
      such amendment or modification shall be binding on every Noteholder hereof,
      whether or not notation thereof is made upon this Note.

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    The
      subordination provisions contained in Article X of the Indenture may not be
      amended or modified without the consent of Noteholders of 100% of the
      Outstanding Principal Balance of the class of Notes affected
      thereby.

     

    The
      Indenture also contains provisions permitting the Noteholders of a majority
      of
      the Outstanding Principal Balance of the Senior Class of Notes, on behalf of
      the
      Noteholders of all of the Original Class A Notes, to waive compliance by the
      Issuer with certain provisions of the Indenture and certain past defaults under
      the Indenture and their consequences. Any such consent or waiver shall be
      conclusive and binding upon all present and future Noteholders of this Note
      and
      of any Original Class A Note issued upon the registration of transfer of, in
      exchange or in lieu of or upon the refinancing of this Note, whether or not
      notation of such consent or waiver is made upon this Note.

     

    The
      Original Class A Notes are issuable only in registered form in denominations
      as
      provided in the Indenture, subject to certain limitations therein set
      forth.

     

    THIS
      NOTE
      SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE
      LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING
      TO
      CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF
      THE
      STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES HEREUNDER SHALL
      BE
      DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee whose
      name appears below by manual or facsimile signature, this Note shall not be
      entitled to any benefit under the Indenture, or be valid or obligatory for
      any
      purpose.

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

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

     

    
      	
              Date:
                February 21, 2008

            	 	
              AZITHROMYCIN
                ROYALTY SUB LLC

            
	 	 	 	 
	 	 	
              By:

            	
              InSite
                Vision Incorporated, its Manager

            
	 	 	 	 
	 	 	
              By:

            	 
	 	 	 	
              Name:

            
	 	 	 	
              Title:

            

    

     

    TRUSTEE’S
      CERTIFICATE OF AUTHENTICATION

     

    This
      Note
      is one of the Azithromycin PhaRMASM
      Secured
      16% Notes Due 2019 designated above and referred to in the within-mentioned
      indenture.

     

    
      	
              Date:
                February 21, 2008

            	 	 	
              U.S.
                BANK NATIONAL ASSOCIATION,

            
	 	 	 	
              as
                Trustee

            
	 	 	 	 
	 	 	
              By:

            	 
	 	 	 	
              Authorized
                Signatory

            

    

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

    FORM
      OF TRANSFER NOTICE

     

    FOR
      VALUE
      RECEIVED the undersigned registered holder hereby sell(s), assign(s) and
      transfer(s) unto

     

    Insert
      Taxpayer Identification No. _____________________

     

      
        

      

    

    (Please
      print or typewrite name and address including zip code of assignee)

     

    the
      within Note and all rights thereunder, hereby irrevocably constituting and
      appointing _________________________________________ attorney to transfer said
      Note on the books of the Issuer with full power of substitution in the
      premises.

     

    
      	 	 	 
	
              Date

            	 	
              Signature
                of Transferor

            

    

    NOTE:
      The
      signature to this assignment must correspond with the name as written upon
      the
      face of the within-mentioned instrument in every particular, without alteration
      or any change whatsoever.

     

    [THE
      FOLLOWING PROVISIONS TO BE INCLUDED ON ALL NOTES]

     

    In
      connection with any transfer of the within-mentioned Note, the undersigned
      confirms without utilizing any general solicitation or general advertising
      that:

     

    [Check
      One]

     

    __(a) the
      within-mentioned Note is being transferred in compliance with the exemption
      from
      registration under the Securities Act provided by Rule 144A
      thereunder

     

    __(b) the
      within-mentioned Note is being transferred other than in accordance with clause
      (a) above and documents are being furnished that comply with the conditions
      of
      transfer set forth in the within-mentioned Note and the Indenture

     

    If
      neither of the foregoing boxes is checked, the Trustee or other Registrar shall
      not be obligated to register the within-mentioned Note in the name of any Person
      other than the Noteholder hereof unless and until the conditions to any such
      transfer of registration set forth herein and in Section 2.11 of the Indenture
      shall have been satisfied.

     

    
      	 	 	 
	
              Date

               

            	 	
              NOTICE:
                The signature to this assignment must correspond with the name as
                written
                upon the face of the within-mentioned instrument in every particular,
                without alteration or any change whatsoever.

               

            

    

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

     

    TO
      BE
      COMPLETED BY PURCHASER IF CLAUSE (a) ABOVE IS CHECKED.

     

    The
      undersigned represents and warrants that it is purchasing the within-mentioned
      Note for its own account or an account with respect to which it exercises sole
      investment discretion and that each of it and any such account is a “qualified
      institutional buyer” within the meaning of Rule 144A and is aware that the sale
      to it is being made in reliance on Rule 144A and acknowledges that it has
      received such information regarding the Issuer as the undersigned has requested
      pursuant to Rule 144A or has determined not to request such information and
      that
      it is aware that the transferor is relying upon the undersigned’s foregoing
      representations in order to claim the exemption from registration provided
      by
      Rule 144A and has executed and delivered to the Registrar a Confidentiality
      Agreement.

     

    Dated:
      __________

    
      	 
	
              Executive
                Officer

            

    

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

     

    AZITHROMYCIN
      ROYALTY SUB LLC

    Azithromycin
      PhaRMASM
      Secured
      16% Notes Due 2019

     

    No.
      ____

     

    
      	
              Date

            	 	
              Principal
                Amount

            	 	
              Notation
                Explaining

              Principal
                Amount

              Recorded

            	 	
              Authorized
                Signature

              of
                Trustee or

              Custodian

            
	 	 	 	 	 	 	 

    

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    FORM
      OF RESALE CONFIDENTIALITY AGREEMENT

     

    No.
      ____

     

    AZITHROMYCIN
      ROYALTY SUB LLC

    c/o
      InSite Vision Incorporated

    965
      Atlantic Avenue

    Alameda,
      California 94501

    __________,
      20__

     

    RESALE
      CONFIDENTIALITY AGREEMENT

     

    In
      connection with our possible interest in the purchase of the Azithromycin
      PhaRMASM
      Secured
      16% Notes due 2019 (the “Notes”)
      issued
      by Azithromycin Royalty Sub LLC, a Delaware limited liability company (the
      “Company”)
      (the
“Transaction”),
      we
      have requested a copy of the Private Placement Memorandum, dated February 15,
      2008, relating to the Notes (the “Private
      Placement Memorandum”).
      In
      addition to receiving the Private Placement Memorandum, we may also request
      that
      you or your directors, officers, managers, members, partners, employees,
      affiliates, assigns, representatives (including, without limitation, financial
      advisors, attorneys and accountants), investors, agents or similar persons
      (collectively, “Your
      Representatives”)
      furnish us or our directors, officers, managers, members, partners, employees,
      affiliates, assigns, representatives (including, without limitation, financial
      advisors, attorneys and accountants), investors, agents or similar persons
      (collectively, “Our
      Representatives”)
      with
      certain information relating to the Company, the Transaction (including notices,
      reports or other documents delivered to us in respect of the Notes or the
      Indenture (as defined herein)) and the rights acquired by the Company from
      InSite Vision Incorporated, a Delaware corporation (the “Parent”).
      All
      such information (whether written or oral, and whether tangible or electronic)
      furnished on or after the date hereof by you or Your Representatives to us
      or
      Our Representatives, including, without limitation, the Private Placement
      Memorandum, and any materials containing, based on or derived from any such
      information (including any financial models or other analyses, compilations,
      forecasts, studies or other documents based thereon) prepared by us or Our
      Representatives in connection with our or Our Representatives’ review of, or our
      interest in, the Transaction, is hereinafter referred to as the “Information”.
      The
      term Information will not, however, include information that (i) is already
      legally known by us without an obligation of confidentiality to a third party
      at
      the time such information is disclosed unless such information was disclosed
      to
      us under a confidentiality agreement with you that was entered into in
      connection with our earlier consideration of the Notes, (ii) is or thereafter
      becomes available in the public domain, other than by breach by us or Our
      Representatives of our obligations hereunder, (iii) is obtainable by us from
      another source without breach of such source’s obligations of confidentiality to
      you or (iv) is independently developed by our Representatives who have not
      had
      access to such information.

     

    As
      a
      condition to receiving the Information, we hereby agree as follows:

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    1. We
      and
      Our Representatives hereby agree (i) to keep the Information confidential,
      (ii)
      that the Information will be used solely for the purpose of evaluating or
      entering into the Transaction and, if the Transaction is entered into,
      monitoring or enforcing the Transaction and (iii) not to, without your prior
      written consent, disclose any Information in any manner whatsoever; provided,
      however,
      that we
      may reveal the Information to (a) Our Representatives who need to know the
      Information for the purpose of evaluating or entering into the Transaction
      and,
      if the Transaction is entered into, monitoring or enforcing the Transaction
      or
      (b) third parties in order to comply with any applicable law, rule, regulation
      or legal process or pursuant to requests of governmental authorities or
      regulatory agencies having oversight over us or Our Representatives, and only
      after compliance with paragraph 3 below, provided,
      that
      all of Our Representatives to which we disclosed Information shall agree to
      keep
      such information confidential, and only to use such information, on reasonable
      and customary terms that are substantially the same as the terms we are subject
      to, and, provided,
      further,
      that we
      shall be wholly responsible for the full compliance of this Resale
      Confidentiality Agreement by Our Representatives to which we disclosed
      Information. Notwithstanding and without limitation of the foregoing, we and
      Our
      Representatives agree not to reveal Information to advisors who are principally
      engaged in the business of investment banking, capital markets or securitization
      of financial assets without prior written notice to you.

     

    2. We
      and
      Our Representatives agree, whether or not the Transaction is consummated, not
      to
      (except as required by applicable law, rule, regulation or legal process or
      pursuant to requests of governmental authorities or regulatory agencies having
      oversight over us or Our Representatives, and only after compliance with
      paragraph 3 below), without your prior written consent, disclose to any person
      the fact that the Information or the Transaction exists or has been made
      available, that we are considering the Transaction, or that discussions or
      negotiations are taking or have taken place concerning the Transaction or any
      term, condition or other fact relating to the Transaction or such discussions
      or
      negotiations, including, without limitation, the status thereof.

     

    3. In
      the
      event that we or any of Our Representatives are required by applicable law,
      rule, regulation or legal process or pursuant to requests of governmental
      authorities or regulatory agencies having oversight over us or Our
      Representatives to disclose any of the Information, we agree to use commercially
      reasonable efforts to notify you promptly (unless such notice is not permitted
      by applicable law, rule or regulation) so that you may seek, at your own
      expense, a protective order or other appropriate remedy or, in your sole
      discretion, waive compliance with the terms of this Resale Confidentiality
      Agreement. In the event that no such protective order or other remedy is
      obtained, or that you do not waive compliance with the terms of this Resale
      Confidentiality Agreement, we agree to furnish only that portion of the
      Information that we are advised by counsel (which may be internal counsel)
      is
      legally required and will exercise all commercially reasonable efforts to obtain
      reliable assurance that confidential treatment will be accorded the
      Information.

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    4. If
      we
      determine not to proceed with the Transaction or we cease to have an interest
      arising from the Transaction, we will promptly inform you of that decision
      or
      event and, in that case, and at any time upon your request or the request of
      any
      of Your Representatives, we and Our Representatives agree to (i) promptly
      deliver to you all copies of the Information in our possession (except as
      described in the following proviso), (ii) promptly destroy all copies of any
      written Information (whether in tangible or electronic form, or otherwise)
      that
      we and Our Representatives have created, including, without limitation, any
      notes we have taken on any discussions with you or Your Representatives, and
      upon your request such destruction shall be certified in writing (including
      via
      email) to you by an authorized officer supervising such destruction (provided
      in
      each case that an appropriate person within our organization may retain one
      copy
      of the Information, subject to the provisions of this Resale Confidentiality
      Agreement, if required to comply with internal record retention policies or
      regulatory considerations, in which case, regardless of paragraph 17 below,
      the
      confidentiality provisions of this Resale Confidentiality Agreement will
      continue to apply to such Information for so long as it is retained by such
      person or any other of Our Representatives) and (iii) certify that clauses
      (i)
      and (ii) above have been complied with. Any oral Information will continue
      to be
      subject to the terms of this Resale Confidentiality Agreement.

     

    5. We
      acknowledge that you have not updated, and have no obligation to update, the
      Private Placement Memorandum in any respect for events, developments or
      circumstances (including, without limitation, the level of royalty payments
      for
      AzaSite or the sales of AzaSite compared to the sales forecasts contained in
      the
      Independent Consultant’s Report included as Appendix A to the Private Placement
      Memorandum). We further acknowledge that neither you nor any of Your
      Representatives, nor any of your or their respective officers, directors,
      managers, members, partners, employees, agents or controlling persons within
      the
      meaning of Section 20 of the Securities Exchange Act of 1934, as amended, makes
      any express or implied representation or warranty as to the accuracy or
      completeness of the Information, and we agree that no such person will have
      any
      liability relating to the Information or for any errors therein or omissions
      therefrom. We further agree that we are not entitled to rely on the accuracy
      or
      completeness of the Information.

     

    6. We
      acknowledge that we are aware of the restrictions imposed by the United States
      securities laws on the purchase or sale of securities of an issuer or an
      affiliate or controlling person of the issuer by any person who has received
      material, non-public information from the issuer or an affiliate or controlling
      person of the issuer or from a person owing a duty to any of the foregoing,
      and
      on the communication of such information to any other person when it is
      reasonably foreseeable that such other person is likely to purchase or sell
      such
      securities in reliance upon such information.

     

    7. We
      represent that we maintain effective internal procedures with respect to
      maintaining the confidentiality and use of the Information.

     

    8. We
      further represent and warrant that we are a qualified institutional buyer (as
      defined in Rule 144A under the Securities Act of 1933, as amended) or an
      institutional accredited investor (as defined in subparagraph (a) (1), (2),
      (3)
      or (7) of Rule 501 under the Securities Act of 1933, as amended).

     

    9. We
      represent and warrant: (A) that either (i) no Plan Assets (as defined by Section
      3(42) of the U.S. Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”),
      and
      regulations issued by the U.S. Department of Labor) will be used to purchase
      a
      Note or (ii) to the extent that Plan Assets are used to purchase a Note, one
      or
      more statutory or administrative exemptions applies such that the use of such
      Plan Assets to purchase and hold such Notes will not constitute a non-exempt
      prohibited transaction within the meaning of Section 406 of ERISA or Section
      4975 of the Internal Revenue Code of 1986, as amended (the “Code”);
      and
      (B) that either (i) assets of a governmental, church or foreign plan have been
      used to purchase a Note or (ii) to the extent such assets are used, neither
      the
      purchase nor holding of the Notes will constitute or result in a violation
      of
      any law that is similar to the prohibited transaction provisions of Section
      406
      of ERISA or Section 4975 of the Code.

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

    10. We
      represent and warrant that either (i) we are not, and will not become, a
      partnership, Subchapter S corporation or grantor trust for U.S. federal income
      tax purposes or (ii) we are a partnership, Subchapter S corporation or grantor
      trust for U.S. federal income tax purposes but (A) none of the direct or
      indirect beneficial owners of any of our interests have allowed or caused,
      or
      will allow or cause, 50% or more of the value of such interests to be
      attributable to such ownership of Notes or (B) our partnership, Subchapter
      S
      corporation or grantor trust was not formed with a principal purpose of
      permitting the Company to satisfy the 100-partner limitation in Treasury
      Regulation Section 1.7704-1(h)(1)(ii) (assuming for this purpose that the Notes
      were classified as equity, and not debt, for U.S. federal income tax purposes),
      and we will not participate or transfer an interest in any Note to any person
      or
      entity who is of a type described in clause (i) above but is not of a type
      described in clause (ii) above.

     

    11. We
      acknowledge that remedies at law may be inadequate to protect you against any
      actual or threatened breach of this Resale Confidentiality Agreement by us
      or
      Our Representatives, and, without prejudice to any other rights and remedies
      otherwise available to you, we agree to permit you to seek the granting of
      injunctive relief in your favor without proof of actual damages.

     

    12. We
      acknowledge and agree that each of the Parent and Inspire Pharmaceuticals,
      Inc.
      is a third party beneficiary of this Resale Confidentiality Agreement and shall
      have the right to enforce any provision of this Resale Confidentiality
      Agreement.

     

    13. We
      agree
      that no failure or delay by you in exercising any right, power or privilege
      hereunder will operate as a waiver thereof, nor will any single or partial
      exercise thereof preclude any other or further exercise thereof or the exercise
      of any right, power or privilege hereunder.

     

    14. This
      Resale Confidentiality Agreement shall be governed by, and construed,
      interpreted and enforced in accordance with, the laws of the State of New York,
      without giving effect to the principles of conflicts of law thereof (other
      than
      the provisions of Section 5-1401 of the General Obligations Law of the State
      of
      New York).

     

    15. This
      Resale Confidentiality Agreement contains the entire agreement between you
      and
      us concerning the confidentiality of the Information, and no modifications
      of
      this Resale Confidentiality Agreement or waiver of the terms and conditions
      hereof will be binding upon you or us, unless approved in writing by each of
      you
      and us.

     

    16. Neither
      this Resale Confidentiality Agreement nor any right granted hereunder shall
      be
      assignable or otherwise transferable by us by operation of law or otherwise
      without the Company’s prior written consent. This Resale Confidentiality
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns.

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

     

    17. This
      Resale Confidentiality Agreement will terminate (i) if we do not proceed with
      the Transaction, 24 months after the date hereof, and (ii) if we do proceed
      with
      the Transaction, 24 months from the date we cease to have an interest arising
      from the Transaction, whether through a sale of our interest, the maturity
      or
      repayment of our interest or otherwise.

     

    18. If
      we
      propose to purchase, transfer, sell or otherwise dispose of any of our interest
      at any time, we agree to (i) abide by any transfer restrictions described in
      the
      Private Placement Memorandum, (ii) inform any proposed transferee of such
      interest of any such transfer restrictions, including any requirement that
      such
      proposed transferee enter into a resale confidentiality agreement with the
      Company, and (iii) not furnish any Information to such proposed transferee.
      We
      acknowledge that the servicer for the Transaction shall be responsible for
      the
      delivery of all Information to any such prospective transferee following
      execution by such prospective transferee of an appropriate resale
      confidentiality agreement with the Company.

     

    19. This
      Resale Confidentiality Agreement may be executed in any number of counterparts,
      each of which so executed shall be deemed to be an original, but all of such
      counterparts shall together constitute but one and the same instrument. Any
      counterpart may be executed by facsimile signature and such facsimile signature
      shall be deemed an original.

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

    Please
      confirm your agreement with the foregoing by signing and returning to the
      undersigned the duplicate copy of this Resale Confidentiality Agreement enclosed
      herewith. In
      accordance with Section 2.11(j) of the Indenture dated as of February 21, 2008
      (the “Indenture”), made by and between you and U.S. Bank National Association,
      as trustee, we will provide a fully executed copy of this Resale Confidentiality
      Agreement to the Registrar (as defined in the Indenture) promptly after receipt
      thereof from you.

     

    
      	
              Very
                truly yours,

            
	 
	 

	
              [Please
                insert prospective purchaser’s name]

            
	 	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            
	 	
              Address:

            

    

    

    
      	
              Accepted
                and agreed as of the date first written above:

            
	 	 
	
              AZITHROMYCIN
                ROYALTY SUB LLC

            
	 	 
	
              By:

            	
              InSite
                Vision Incorporated, its Manager

            
	 	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            

    

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    AGENTS
      FOR SERVICE OF PROCESS

     

    
      	
              Party

            	 	
              Jurisdiction

            	 	
              Appointed
                Agent

            
	
              Azithromycin
                Royalty Sub LLC

            	 	
              Delaware

            	 	
              Corporation
                Service Company

            
	
              Azithromycin
                Royalty Sub LLC

            	 	
              New
                York

            	 	
              Corporation
                Service Company

            

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D

     

    COVERAGE
      OF DISTRIBUTION REPORT

     

    
      
        
          	(i)	
                  With
                    respect to the current Payment Date, (A) the balances on deposit
                    in the
                    Collection Account and any other Account established under the
                    Indenture
                    on the Calculation Date immediately preceding the prior Payment
                    Date (or,
                    with respect to the first Payment Date, on the Closing Date)
                    (the
                    “Preceding
                    Calculation Date”),
                    (B) the aggregate amounts of deposits into and withdrawals from
                    the
                    Collection Account and any other Account established under the
                    Indenture
                    from but excluding the Preceding Calculation Date to and including
                    the
                    Calculation Date immediately preceding the Payment Date (the
“Current
                    Calculation Date”)
                    and (C) the balances on deposit in the Collection Account and
                    any other
                    Account established under the Indenture on the Current Calculation
                    Date.

                

        

      

    

     

    
      	(ii)	
              Analysis
                of Collection Account activity from the Preceding Calculation Date
                to the
                Current Calculation Date

            

    

     

    Balance
      on the Preceding Calculation Date

    Collections
      from but excluding the Preceding Calculation Date to and including the Current
      Calculation Date (“Current
      Collections”)

    Aggregate
      Note payments from but excluding the Preceding Calculation Date to and including
      the Current Calculation Date, including pursuant to Section 2.5(e)

    Amount,
      if any, paid to Pfizer and certain other third parties entitled to royalties
      in
      respect of Subject Products between the prior Payment Date and the current
      Payment Date

    Expense
      payments payable on the Current Calculation Date (“Current
      Expenses”)

    Balance
      on the Current Calculation Date

     

    
      
        	(iii)	
                Amount,
                  if any, to be transferred from the Interest Reserve Account to
                  the
                  Collection Account on the current Payment
                  Date

              

      

    

     

    
      
        
          	(iv)	
                  Payments
                    on the current Payment
                    Date

                

        

      

    

     

    Current
      Expenses

    Servicing
      Fee

    Interest
      Amount

    Additional
      Interest, if any

    Principal
      payments, if any

     

    
      	(v)	
              Outstanding
                Principal Balance

            

    

     

    Opening
      Outstanding Principal Balance

    Principal
      payments, if any, made on the current Payment Date

    Closing
      Outstanding Principal Balance

     

    
      	(vi)	
              Amount
                distributed to the Issuer from the Collection Account, if any, with
                respect to the current Payment Date

            

    

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

     

    
      	(vii)	
              A
                withholding obligation may be
                included

            

    

     

    
      	(viii)	
              Appropriate
                modifications will be made to contemplate any Refinancing Notes and/or
                Class B Notes

            

    

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    UCC
      FINANCING STATEMENTS

     

    
      	 	
              1.

            	
              A
                Form UCC-1 Financing Statement will be filed with the Secretary of
                State
                of the State of Delaware naming the Issuer as debtor and the Trustee
                as
                secured party.

            

    

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

     

    FORM
      OF CERTIFICATE OF EUROCLEAR OR CLEARSTREAM FOR 

    PERMANENT
      REGULATION S GLOBAL NOTE

     

    __________,
      20__

     

    U.S.
      Bank
      National Association, 

    as
      Trustee

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services (Azithromycin Royalty Sub LLC)

     

    Azithromycin
      Royalty Sub LLC

    c/o
      InSite Vision Incorporated

    965
      Atlantic Avenue

    Alameda,
      California 94501

    Attention:
      Louis Drapeau

     

    
      	 	
              Re:

            	
              Azithromycin
                Royalty Sub LLC (the “Issuer”)

            

    

    

    Ladies
      and Gentlemen:

     

    This
      letter relates to U.S.$__________ principal amount of Azithromycin
      PhaRMASM
      Secured
      16% Notes Due 2019 of the Issuer (the “Notes”)
      represented by a Note that bears a legend (the “Legended
      Note”)
      outlining restrictions upon transfer of such Legended Note. Pursuant to Section
      2.1 of the Indenture dated as of February 21, 2008 (the “Indenture”)
      relating to the Notes and certain other classes of notes of the Issuer, we
      hereby certify that we are (or we will hold such securities on behalf of) an
      Institutional Accredited Investor (as defined in the Indenture) outside the
      United States to whom the Notes may be transferred in accordance with Rule
      904
      of Regulation S promulgated under the U.S. Securities Act of 1933, as amended
      (“Regulation
      S”).
      Accordingly, you are hereby requested to exchange the Legended Note for a
      Permanent Regulation S Global Note (as defined in the Indenture) representing
      an
      identical principal amount of Notes, all in the manner provided for in the
      Indenture.

     

    Each
      of
      you is entitled to rely upon this letter and is irrevocably authorized to
      produce this letter or a copy hereof to any interested party in any
      administrative or legal proceeding or official inquiry with respect to the
      matters covered hereby. Certain terms used in this certificate have the meanings
      set forth in Regulation S.

     

    
      	
              Very
                truly yours, 

            
	 	 
	
              [Euroclear
                Bank S.A./N.V.][Clearstream Banking] 

            
	 
	
              By:

            	
               

            
	 	
              Authorized
                Signatory 

            

    

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G

     

    FORM
      OF CERTIFICATE OF BENEFICIAL OWNER OF TEMPORARY 

    REGULATION
      S GLOBAL NOTE

     

    Euroclear
      Bank S.A./N.V.

    [Address]

     

    AND/OR

     

    Clearstream
      Banking

    [Address]

     

    Re:      
       Azithromycin
      Royalty Sub LLC (the “Issuer”)

     

    Reference
      is hereby made to the Indenture, dated as of February 21, 2008 (the
“Indenture”),
      made
      by and between the Issuer and U.S. Bank National Association, as trustee (the
      “Trustee”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Indenture.

     

    This
      letter relates to U.S.$__________ principal amount of Azithromycin
      PhaRMASM
      Secured
      16% Notes Due 2019 that are held in the form of a Beneficial Interest in the
      Temporary Regulation S Global Note (CUSIP No. __________) through DTC by the
      undersigned (the “Holder”)
      in the
      name of __________. The Holder of such Temporary Regulation S Global Note hereby
      requests the receipt of payments due and payable [on the applicable Payment
      Date] pursuant to Section 2.5 of the Indenture.

     

    The
      Holder hereby represents and warrants that it (i) is an Institutional Accredited
      Investor, (ii) is not a U.S. Person, (iii) does not hold the above-referenced
      Temporary Regulation S Global Note for the account or benefit of a U.S. Person
      (other than a distributor) and (iv) has executed and delivered to the Registrar
      a Confidentiality Agreement. Certain terms in this certificate not otherwise
      defined in the Indenture have the meanings given to them in Regulation
      S.

     

    This
      certificate and the statements contained herein are made for your benefit and
      the benefit of the Paying Agent.

     

    
      	
              [Name
                of Holder] 

            
	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            

    

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      H

     

    FORM
      OF CERTIFICATE OF EUROCLEAR OR CLEARSTREAM FOR PAYMENTS

     

    U.S.
      Bank
      National Association, 

    as
      Paying
      Agent

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services (Azithromycin Royalty Sub LLC)

     

    Re:       
      Azithromycin
      Royalty Sub LLC (the “Issuer”)

     

    Reference
      is hereby made to the Indenture, dated as of February 21, 2008 (the
“Indenture”),
      made
      by and between the Issuer and U.S. Bank National Association, as trustee (the
      “Trustee”).
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Indenture.

     

    This
      letter relates to U.S.$__________ principal amount of Azithromycin
      PhaRMASM
      Secured
      16% Notes Due 2019 that are held in the form of a Beneficial Interest in the
      Temporary Regulation S Global Note (CUSIP No. __________) through DTC by the
      undersigned (the “Holder”)
      in the
      name of __________. Certain Holders of the Beneficial Interests in such
      Temporary Regulation S Global Note have requested the receipt of payments due
      and payable [on the applicable Payment Date] pursuant to Section 2.5 of the
      Indenture.

     

    We
      have
      received from such Holders certifications to the effect that they (i) are
      Institutional Accredited Investors, (ii) are not U.S. Persons, (iii) do not
      hold
      the above-referenced Temporary Regulation S Global Note for the account or
      benefit of U.S. Persons (other than distributors) and (iv) have executed and
      delivered to the Registrar a Confidentiality Agreement. Certain terms in this
      certificate not otherwise defined in the Indenture have the meanings given
      to
      them in Regulation S.

     

    Accordingly,
      the Holders of the Beneficial Interests in the Temporary Regulation S Global
      Note are entitled to receive interest, principal and premium, if any, in
      accordance with the terms of the Indenture in the amount of
      U.S.$__________.

     

    
      	
              [Clearstream
                Banking][Euroclear Bank S.A./N.V.]

            
	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            

    

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    FORM
      OF CERTIFICATE OF PROPOSED TRANSFEROR

     

    __________,
      20__

     

    U.S.
      Bank
      National Association, 

    as
      Registrar

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services (Azithromycin Royalty Sub LLC)

     

    Azithromycin
      Royalty Sub LLC

    c/o
      InSite Vision Incorporated

    965
      Atlantic Avenue

    Alameda,
      California 94501

    Attention:
      Louis Drapeau

     

    Re:
      Azithromycin Royalty Sub LLC (the “Issuer”)

     

    Ladies
      and Gentlemen:

     

    In
      connection with our proposed sale of U.S.$ __________ aggregate principal amount
      of Azithromycin PhaRMASM
      Secured
      16% Notes Due 2019 of the Issuer (the “Notes”),
      we
      confirm that such sale has been effected pursuant to and in accordance with
      Regulation S under the U.S. Securities Act of 1933, as amended (“Regulation
      S”)
      and,
      accordingly, we represent that:

     

    (1) the
      offer
      of the Notes was not made to a person in the U.S.;

     

    (2) at
      the
      time the buy order was originated, the transferee was an institutional
      accredited investor (as defined in subparagraph (a) (1), (2), (3) or (7) of
      Rule
      501 under the U.S. Securities Act of 1933, as amended) outside the U.S. or
      we
      and any person acting on our behalf reasonably believed that the transferee
      was
      an institutional accredited investor outside the U.S.;

     

    (3) no
      directed selling efforts have been made by us in the U.S. in contravention
      of
      the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as
      applicable;

     

    (4) the
      transaction is not part of a plan or scheme to evade the registration
      requirements of the U.S. Securities Act of 1933; and

     

    (5) the
      transferee has entered into the confidentiality agreement required in connection
      with the purchase of the Notes.

     

    Each
      of
      you is entitled to rely upon this letter and is irrevocably authorized to
      produce this letter or a copy hereof to any interested party in any
      administrative or legal proceeding or official inquiry with respect to the
      matters covered hereby. Certain terms used in this certificate have the meanings
      set forth in Regulation S.

     

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

    

     

    
      	
              Very
                truly yours,

            
	 	 
	
              [Name
                of Transferor]

            
	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    
      
        
        

      

      
        I-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      J

     

    FORM
      OF CERTIFICATE OF CERTAIN PROPOSED INSTITUTIONAL 

    ACCREDITED
      INVESTOR TRANSFEREES

     

    __________,
      20__

     

    U.S.
      Bank
      National Association, 

    as
      Registrar

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services (Azithromycin Royalty Sub LLC)

     

    Azithromycin
      Royalty Sub LLC

    c/o
      InSite Vision Incorporated

    965
      Atlantic Avenue

    Alameda,
      California 94501Attention: Louis Drapeau

     

    Ladies
      and Gentlemen:

     

    In
      connection with our proposed purchase of Notes (the “Notes”)
      of
      Azithromycin Royalty Sub LLC (the “Issuer”),
      we
      confirm that:

     

    1. We
      have
      duly executed and delivered to the Registrar (as defined in that certain
      Indenture dated as of February 21, 2008 (the “Indenture”)
      between the Issuer and U.S. Bank National Association, as trustee, as amended,
      restated, supplemented or otherwise modified from time to time in accordance
      with the terms thereof) a Resale Confidentiality Agreement and have subsequently
      received a copy of the Private Placement Memorandum dated February 15, 2008
      (the
“Private
      Placement Memorandum”)
      relating to the Notes and such other information as we deem necessary in order
      to make our investment decision. We acknowledge that we have read and agreed
      to
      the matters stated in the section entitled “Transfer Restrictions” of such
      Private Placement Memorandum and the restrictions on duplication and circulation
      of such Private Placement Memorandum.

     

    2. We
      understand that any subsequent transfer of the Notes is subject to certain
      restrictions and conditions set forth in the Private Placement Memorandum under
      “Transfer Restrictions” and the undersigned agrees to be bound by, and not to
      resell, pledge or otherwise transfer the Notes except in compliance with, such
      restrictions and conditions and the U.S. Securities Act of 1933, as amended
      (the
“Securities
      Act”).

     

    
      
        
        

      

      
        J-1

        
          

        

      

      
        
        

      

    

     

    3. We
      understand that the offer and sale of the Notes have not been registered under
      the Securities Act, that the Notes will only be in the form of definitive
      physical certificates and that the Notes may not be offered or sold except
      as
      permitted in the following sentence. We agree, on our own behalf and on behalf
      of any accounts for which we are acting as hereinafter stated, that, if we
      should sell any Notes in the future, we will do so only (1) (A) to the Issuer
      or
      any subsidiary thereof, (B) in accordance with Rule 144A under the Securities
      Act to a qualified institutional buyer (as defined therein), (C) to an
      institutional accredited investor (as defined in Rule 501(a)(1), (2), (3) or
      (7)
      of Regulation D under the Securities Act) (“Institutional
      Accredited Investor”)
      that,
      prior to such transfer, furnishes to the Trustee (as defined in the Indenture)
      a
      signed letter containing certain representations and agreements relating to
      the
      restrictions on transfer of the Notes (the form of which letter can be obtained
      from the Trustee) and an opinion of counsel acceptable to the Issuer that such
      transfer is in compliance with the Securities Act, (D) to an Institutional
      Accredited Investor in an offshore transaction in compliance with Rule 904
      of
      Regulation S under the Securities Act or (E) to an Institutional Accredited
      Investor after the relevant time period referred to in Rule 144 under the
      Securities Act expires, and we further agree to provide to any entity purchasing
      any of the Notes from us a notice advising such purchaser that resales of the
      Notes are restricted as stated herein and (2) in each case, in accordance with
      any applicable securities laws of any state in the U.S. or any other applicable
      jurisdiction and in accordance with the legend to be set forth in the Notes,
      which will reflect the substance of this paragraph.

     

    4. We
      understand that, on any proposed resale of any Notes, we will be required to
      furnish to the Issuer and the Trustee such certifications, legal opinions and
      other information as the Issuer and the Trustee may reasonably require to
      confirm that the proposed sale complies with the foregoing restrictions. We
      further understand that a resale confidentiality agreement is required under
      the
      Indenture to be executed and delivered by any proposed transferee to whom we
      wish to sell any Notes.

     

    5. We
      are an
      Institutional Accredited Investor and have such knowledge and experience in
      financial and business matters as to be capable of evaluating the merits and
      risks of our investment in the Notes, and we and any accounts for which we
      are
      acting are able to bear the economic risks of our or their
      investment.

     

    6. We
      are
      acquiring the Notes purchased by us for our own account or for one or more
      accounts (each of which is an Institutional Accredited Investor) as to each
      of
      which we exercise sole investment discretion.

     

    7. We
      are
      not acquiring the Notes with a view to distribution thereof or with any present
      intention of offering or selling the Notes, except as permitted above, provided
      that the disposition of our property and property of any accounts for which
      we
      are acting as fiduciary shall remain at all times within our
      control.

     

    You,
      the
      Issuer and the Trustee are entitled to rely upon this letter and are irrevocably
      authorized to produce this letter or a copy hereof to any interested party
      in
      any administrative or legal proceeding or official inquiry with respect to
      the
      matters covered hereby.

     

    
      	
              Very
                truly yours,

            
	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title

            

    

     

    
       

      
        
          
          

        

        
          J-2

          
            

          

        

        
          
          

        

      

    

    Annex
      A

    

    

    See
      Annex
      A to the Purchase and Sale Agreement by and between Azithromycin Royalty Sub
      LLC
      and the Company dated February 21, 2008, attached as Exhibit 10.1 to this
      Quarterly Report on Form 10-Q".Unassociated Document

     

    Exhibit
      10.4

     

    PLEDGE
      AND SECURITY AGREEMENT

     

    MADE
      BY

     

    INSITE
      VISION INCORPORATED

     

    TO

     

    U.S.
      BANK NATIONAL ASSOCIATION, AS TRUSTEE

     

    DATED
      AS OF FEBRUARY 21, 2008

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Table
      of
      Contents

     

    
      	 	 	
              Page

            
	 	 
	
              ARTICLE
                I

              RULES
                OF CONSTRUCTION AND DEFINED TERMS

            	 
	 	 
	
              Section
                1.1

            	
              Rules
                of Construction and Defined Terms

            	
              1

            
	 	 
	
              ARTICLE
                II

              PLEDGE

            	 
	 	 	 
	
              Section
                2.1

            	
              Pledge

            	
              2

            
	 	 	 
	
              ARTICLE
                III 

              DELIVERY
                OF ISSUER PLEDGED COLLATERAL

            	 
	 	 	 
	
              Section
                3.1

            	
              Delivery
                of Issuer Pledged Collateral

            	
              2

            
	
              Section
                3.2

            	
              Recording
                of Lien

            	
              3

            
	
              Section
                3.3

            	
              Capital
                Securities

            	
              3

            
	 	 	 
	
              ARTICLE
                IV 

              REPRESENTATIONS
                AND WARRANTIES

            	 
	 	 	 
	
              Section
                4.1

            	
              Representations
                and Warranties

            	
              3

            
	 	 	 
	
              ARTICLE
                V 

              SUPPLEMENTS;
                FURTHER ASSURANCES

            	 
	 	 	 
	
              Section
                5.1

            	
              Supplements

            	
              5

            
	
              Section
                5.2

            	
              Further
                Assurances

            	
              5

            
	 	 	 
	
              ARTICLE
                VI

              COVENANTS

            	 
	 	 	 
	
              Section
                6.1

            	
              No
                Liens

            	
              6

            
	
              Section
                6.2

            	
              Notices

            	
              6

            
	
              Section
                6.3

            	
              Voting
                Rights

            	
              6

            
	
              Section
                6.4

            	
              Dividends
                and Distributions

            	
              7

            
	
              Section
                6.5

            	
              Capital
                Securities

            	
              7

            
	
              Section
                6.6

            	
              Legal
                Existence

            	
              7

            
	
              Section
                6.7

            	
              Compliance
                with Laws

            	
              7

            
	
              Section
                6.8

            	
              Taxes

            	
              7

            
	
              Section
                6.9

            	
              Modifications

            	
              8

            
	
              Section
                6.10

            	
              No
                Liquidation

            	
              8

            
	
              Section
                6.11

            	
              Monies
                Held in Trust

            	
              8

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                6.12

            	
              No
                Claims

            	
              8

            

    

     

    
      	
              ARTICLE
                VII 

              TRUSTEE
                APPOINTED ATTORNEY-IN-FACT

            	 
	 	 
	
              Section
                7.1

            	
              Trustee
                Appointed Attorney-In-Fact

            	
              8

            
	
              ARTICLE
                VIII 

              REASONABLE
                CARE

            	 
	 	 	 
	
              Section
                8.1

            	
              Reasonable
                Care

            	
              9

            
	 	 	 
	
              ARTICLE
                IX 

              NO
                LIABILITY

            	 
	 	 	 
	
              Section
                9.1

            	
              No
                Liability

            	
              9

            
	 	 	 
	
              ARTICLE
                X 

              REMEDIES
                UPON EVENT OF DEFAULT

            	 
	 	 	 
	
              Section
                10.1

            	
              Remedies
                Upon Event of Default

            	
              9

            
	 	 	 
	
              ARTICLE
                XI 

              PURCHASE
                OF THE ISSUER PLEDGED COLLATERAL

            	 
	 	 	 
	
              Section
                11.1

            	
              Purchase
                of the Issuer Pledged Collateral

            	
              12

            
	 	 	 
	
              ARTICLE
                XII 

              EXPENSES

            	 
	 	 	 
	
              Section
                12.1

            	
              Expenses

            	
              12

            
	 	 	 
	
              ARTICLE
                XIII 

              NO
                WAIVER; REMEDIES

            	 
	 	 	 
	
              Section
                13.1

            	
              No
                Waiver; Remedies

            	
              12

            
	 	 	 
	
              ARTICLE
                XIV 

              AMENDMENTS

            	 
	 	 	 
	
              Section
                14.1

            	
              Amendments

            	
              13

            
	 	 	 
	
              ARTICLE
                XV 

              RELEASE;
                TERMINATION

            	 
	 	 	 
	
              Section
                15.1

            	
              Release;
                Termination

            	
              13

            
	 	 	 
	
              ARTICLE
                XVI 

              NOTICES

            	 
	 	 	 
	
              Section
                16.1

            	
              Notices

            	
              13

            
	 	 	 
	
              ARTICLE
                XVII 

              CONTINUING
                SECURITY INTEREST

            	 
	 	 	 
	
              Section
                17.1

            	
              Continuing
                Security Interest

            	
              14

            

    

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    

    
      	
              Article
                XVIII 

              SECURITY
                INTEREST ABSOLUTE

            	 
	 	 
	
              Section
                18.1

            	
              Security
                Interest Absolute

            	
              14

            
	 	 	 
	
              Article
                XIX 

              INDEMNITY

            	 
	 	 
	
              Section
                19.1

            	
              Indemnity

            	
              15

            
	 	 	 
	
              Article
                XX 

              OBLIGATIONS
                SECURED BY ISSUER PLEDGED COLLATERAL

            	 
	 	 
	
              Section
                20.1

            	
              Obligations
                Secured by Issuer Pledged Collateral

            	
              15

            
	 	 	 
	
              Article
                XXI 

              SEVERABILITY

            	 
	 	 
	
              Section
                21.1

            	
              Severability

            	
              15

            
	 	 	 
	
              Article
                XXII 

              COUNTERPARTS;
                EFFECTIVENESS

            	 
	 	 
	
              Section
                22.1

            	
              Counterparts;
                Effectiveness

            	
              16

            
	 	 	 
	
              Article
                XXIII 

              REINSTATEMENT

            	 
	 	 
	
              Section
                23.1

            	
              Reinstatement

            	
              16

            
	 	 	 
	
              Article
                XXIV 

              SUBMISSION
                TO JURISDICTION; WAIVER OF JURY TRIAL

            	 
	 	 
	
              Section
                24.1

            	
              SUBMISSION
                TO JURISDICTION.

            	
              16

            
	 	 	 
	
              Article
                XXV 

              GOVERNING
                LAW

            	 
	 	 
	
              Section
                25.1

            	
              GOVERNING
                LAW

            	
              17

            
	 	 	 
	
              Article
                XXVI 

              TABLE
                OF CONTENTS AND HEADINGS

            	 
	 	 
	
              Section
                26.1

            	
              Table
                of Contents and Headings

            	
              17

            
	 	 	 
	
              Annex
                A

            	
              Rules
                of Construction and Defined Terms

            	 

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    PLEDGE
      AND SECURITY AGREEMENT

     

    This
      PLEDGE AND SECURITY AGREEMENT, dated as of February 21, 2008, is made by
INSITE
      VISION INCORPORATED, a Delaware corporation, in favor of U.S. Bank National
      Association, a national banking association, as the Trustee under the Indenture,
      as grantee hereunder.

     

    WITNESSETH:

     

    WHEREAS,
      pursuant to the Purchase and Sale Agreement, contemporaneous with the execution
      and delivery of this Pledge and Security Agreement, the Parent has sold,
      transferred, conveyed, assigned, contributed and granted all of the Purchased
      Assets to the Issuer, in consideration of the payment by the Issuer to the
      Parent of the Cash Purchase Price and the issuance by the Issuer to the Parent
      of all of the Capital Securities of the Issuer owned by the Parent;

     

    WHEREAS,
      in order to secure the repayment of the Original Class A Notes issued by the
      Issuer pursuant to the Indenture, the Issuer shall grant a security interest
      in
      certain of its property and rights to the Trustee for the benefit of the
      Noteholders, including Royalty Payments actually made by Inspire under the
      Inspire License Agreement (but not the rights thereunder to receive such
      payments) and the Replacement Royalty Payments, if any, its rights under the
      Purchase and Sale Agreement, any Accounts and certain other collateral in
      accordance with the terms and conditions thereof;

     

    WHEREAS,
      in addition to the grant of security interest by the Issuer to the Trustee
      as
      set forth in the immediately preceding recital, in order to further secure
      repayment of the Original Class A Notes, the Trustee desires that the Parent
      pledge all of the Capital Securities of the Issuer owned by the Parent to the
      Trustee for the benefit of the Noteholders; and

     

    WHEREAS,
      the Parent and the Trustee hereby agree that the Parent shall execute and
      deliver this Pledge and Security Agreement and make the pledge contemplated
      hereby to the Trustee for its benefit;

     

    NOW,
      THEREFORE, in consideration of the foregoing premises and for other good and
      valuable consideration, the receipt and adequacy of which are hereby
      acknowledged, and in order to induce the Noteholders to purchase the Original
      Class A Notes issued pursuant to the Indenture, the Parent agrees, for the
      benefit of the Trustee on behalf of each Noteholder, as follows:

     

    ARTICLE
      I

    RULES
      OF CONSTRUCTION AND DEFINED TERMS

     

    Section
      1.1 Rules
      of Construction and Defined Terms.
      The
      rules of construction set forth in Annex
      A
      shall
      apply to this Pledge and Security Agreement and are hereby incorporated by
      reference into this Pledge and Security Agreement as if set forth fully in
      this
      Pledge and Security Agreement. Capitalized terms used but not otherwise defined
      in this Pledge and Security Agreement shall have the respective meanings given
      to such terms in Annex
      A,
      which
      is hereby incorporated by reference into this Pledge and Security Agreement
      as
      if set forth fully in this Pledge and Security Agreement. Not all terms defined
      in Annex
      A
      are used
      in this Pledge and Security Agreement.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II

    PLEDGE

     

    Section
      2.1 Pledge.
      As
      security for the payment and performance of the Secured Obligations and subject
      to and in accordance with the provisions of this Pledge and Security Agreement,
      the Parent hereby pledges, grants, assigns, hypothecates, transfers and delivers
      (subject to Section 3.1) to the Trustee, its successors and assigns, for the
      security and benefit of the Noteholders, a continuing first priority security
      interest in all of the Parent’s right, title and interest in, to and under the
      following property, whether now owned or hereafter acquired (the “Issuer
      Pledged Collateral”):

     

    (a) all
      of
      the Parent’s Capital Securities in the Issuer, whether now owned or acquired in
      the future, and all certificates, agreements or other instruments, if any,
      representing such Capital Securities (the “Issuer
      Pledged Equity”);

     

    (b) subject
      to Section 6.4, the right to receive all monies and property representing a
      distribution in respect of the Issuer Pledged Equity (except for proceeds of
      the
      Notes to the extent not applicable to any Redemption of the Notes), whether
      by
      way of dividend, redemption, liquidation payments, repurchase or otherwise;
      and

     

    (c) subject
      to Section 6.4, all proceeds, products and accessions of and to the Issuer
      Pledged Equity and any of the foregoing, including all shares, securities,
      rights, monies or other property accruing, offered or issued at any time by
      way
      of redemption, conversion, exchange, substitution, preference, option or
      otherwise in respect of the Issuer Pledged Equity;

     

    TO
      HAVE
      AND TO HOLD the Issuer Pledged Collateral, together with all right, title,
      interest, powers, privileges and preferences pertaining or incidental thereto,
      unto the Trustee, its successors and assigns, forever, subject to the terms
      and
      conditions set forth herein.

     

    ARTICLE
      III

    DELIVERY
      OF ISSUER PLEDGED COLLATERAL

     

    Section
      3.1 Delivery
      of Issuer Pledged Collateral.
      Contemporaneously with the execution of this Pledge and Security Agreement,
      the
      Parent shall deliver or cause to be delivered to the Trustee, to the extent
      not
      previously delivered, (a) any and all certificates and other instruments
      evidencing the Issuer Pledged Equity then held in the form of certificates
      or
      other instruments by the Parent, together with undated stock powers or
      assignments of such certificates duly executed and signed in blank, (b) any
      and
      all certificates or other instruments or documents representing any of the
      Issuer Pledged Collateral then held by the Parent and (c) all other property
      comprising part of the Issuer Pledged Collateral then held in the form of
      certificates or other instruments by the Parent with proper instruments of
      assignment or transfer duly executed and such other instruments or documents
      as
      the Trustee may reasonably request to effect the purposes contemplated
      hereby.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Section
      3.2 Recording
      of Lien.
      The
      Parent shall record the Lien of the Trustee on its records at its principal
      office within ten Business Days after the date hereof and provide to the Trustee
      written confirmation that such Lien has been so recorded and that there are
      no
      other Liens on its records with respect to the Issuer Pledged
      Equity.

     

    Section
      3.3 Capital
      Securities.
      If the
      Parent shall become entitled to receive or shall receive, in respect of the
      Issuer Pledged Equity, any Capital Securities, options, warrants, rights or
      other similar property, including any certificate representing any distribution
      in connection with any recapitalization, reclassification or increase or
      reduction of capital (whether as an addition to, in substitution of or in
      exchange for such Issuer Pledged Equity or otherwise), the Parent
      agrees:

     

    (a) to
      accept
      the same as the agent of the Trustee;

     

    (b) to
      hold
      the same in trust on behalf of and for the benefit of the Trustee and separate
      and apart from its other property; and

     

    (c) to
      deliver any and all certificates or instruments evidencing the same to the
      Trustee on or before the close of business on the fifth Business Day following
      the receipt thereof by the Parent, in the exact form received, with the
      endorsement or assignment in blank of the Parent when necessary and with
      appropriate undated irrevocable proxies duly executed in blank (with signatures
      properly guaranteed), to be held by the Trustee, subject to the terms of this
      Pledge and Security Agreement, as additional Issuer Pledged
      Collateral.

     

    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      4.1 Representations
      and Warranties.
      As
      of the
      date hereof, the Parent represents and warrants as follows:

     

    (a) The
      Parent has been duly organized, is validly existing and is in good standing
      under the laws of its jurisdiction of organization and has all licenses,
      permits, franchises and governmental authorizations necessary to carry on its
      business as now being conducted and shall appoint and employ agents or attorneys
      in each jurisdiction where it shall be necessary to take action under this
      Pledge and Security Agreement. The Parent is duly licensed or qualified to
      do
      business in good standing in each jurisdiction in which such qualification
      is
      required by law, except where such failure to qualify would not reasonably
      be
      likely to result in a Material Adverse Effect. The Parent has the full power
      and
      authority to own the property it purports to own and to carry on its business
      as
      presently conducted and as proposed to be conducted.

     

    (b) The
      Parent is the sole legal and beneficial owner of the Issuer Pledged Collateral
      free and clear of any Lien other than the Lien created pursuant to this Pledge
      and Security Agreement and the Indenture or other Permitted Liens. No security
      agreement, financing statement or other public notice with respect to all or
      any
      part of the Issuer Pledged Collateral is on file or of record in any public
      office, except such as may have been filed in favor of the Trustee pursuant
      to
      this Pledge and Security Agreement and the Indenture.

    
      
        
        

      

      
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    (c) The
      consummation of the transactions contemplated hereby has been duly and validly
      authorized by the Parent. The Parent has full power to execute and deliver
      this
      Pledge and Security Agreement and to perform its obligations hereunder and
      to
      pledge all the Issuer Pledged Collateral pursuant to this Pledge and Security
      Agreement. This Pledge and Security Agreement has been duly authorized, executed
      and delivered by the Parent. This Pledge and Security Agreement constitutes
      a
      legal, valid and binding obligation of the Parent enforceable against the Parent
      in accordance with its terms, except as enforceability may be limited by
      applicable bankruptcy, insolvency, moratorium or other similar laws affecting
      creditors’ rights generally and except as enforceability may be limited by
      general principles of equity (whether considered in a suit at law or in equity).
      All requisite action has been taken by the Parent to make this Pledge and
      Security Agreement valid and binding upon the Parent.

     

    (d) No
      consent of any other party (including directors, officers, members, managers
      or
      creditors of the Parent) and no government approval is required that has not
      been obtained (i) for the execution, delivery and performance by the Parent
      of
      this Pledge and Security Agreement and each other Transaction Document to which
      it is a party, (ii) for the pledge by the Parent of the Issuer Pledged
      Collateral pursuant to this Pledge and Security Agreement or (iii) for the
      exercise by the Trustee of the rights provided for in this Pledge and Security
      Agreement or the remedies in respect of the Issuer Pledged Collateral pursuant
      to this Pledge and Security Agreement (except as may be required (x) in
      connection with any disposition of all or any part of the Issuer Pledged
      Collateral under any laws affecting the offering and sale of securities
      generally, (y) under applicable federal and state laws, rules and regulations
      and applicable interpretations thereof providing for the supervision or
      regulation of the banking or trust businesses generally and applicable to the
      Trustee and (z) with respect to the Trustee as a result of any relationship
      that
      the Trustee may have with Persons not parties to, or any activity or business
      the Trustee may conduct other than pursuant to, any of the Transaction
      Documents).

     

    (e) The
      execution and delivery of this Pledge and Security Agreement concurrently with
      the delivery to the Trustee of the certificates and other items contemplated
      by
      Section 3.1 and the taking of the actions described in Section 3.3 constitute
      “control” of the Issuer Pledged Equity described in Section 8-106(b) of the UCC
      and create a valid security interest in the Issuer Pledged Collateral securing
      the Secured Obligations, and the Parent has done such other acts, if any,
      reasonably requested by the Trustee to perfect the security interest in the
      Issuer Pledged Collateral granted hereunder (including permitting the Trustee
      to
      file any appropriate UCC financing statement against the Parent).

     

    (f) The
      execution, delivery and performance of this Pledge and Security Agreement and
      the consummation of the transactions contemplated by this Pledge and Security
      Agreement do not (i) violate the provisions of the Parent Organizational
      Documents, (ii) violate the provisions of any Applicable Law (including any
      usury law), regulation or order of any Governmental Authority applicable to
      the
      Parent except where such violation would not have or would not be reasonably
      expected to have a Material Adverse Effect, (iii) result in a breach of, or
      constitute a default under, any material agreement relating to the management
      or
      affairs of the Parent, or any indenture, credit agreement or loan agreement
      or
      any other similar material agreement, lease or instrument to which the Parent
      is
      a party or by which the Parent or any of its material properties may be bound
      (which default or breach has not been permanently waived by the other party
      to
      such document) or (iv) result in or create any Lien (other than Permitted Liens)
      under, or require any consent that has not been obtained under, any indenture,
      credit agreement or loan agreement or any other material agreement, instrument
      or document to which the Parent is a party or the provisions of any order,
      writ,
      judgment, injunction, decree, determination or award of any Governmental
      Authority, binding upon the Parent, the Issuer Pledged Collateral or any
      material properties of the Parent.

    
      
        
        

      

      
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    (g) There
      are
      no proceedings and there is no action, suit or proceeding at law or in equity
      or
      by or before any Governmental Authority now pending against the Parent or,
      to
      the best knowledge of the Parent, threatened against the Parent that questions
      the validity or legality of this Pledge and Security Agreement or that seeks
      to
      prevent the consummation of any of the transactions contemplated by this Pledge
      and Security Agreement.

     

    (h) All
      of
      the Issuer Pledged Equity has been duly authorized and validly issued by the
      Issuer and is fully paid and non-assessable.

     

    ARTICLE
      V

    SUPPLEMENTS;
      FURTHER ASSURANCES

     

    Section
      5.1 Supplements.
      The
      Parent agrees that, at any time and from time to time, at the Parent’s expense
      and upon the Trustee’s reasonable request, the Parent will promptly execute and
      deliver all further instruments and documents, and take all further action,
      that
      may be necessary in the reasonable discretion of the Trustee, in order to
      perfect the security interest of the Trustee in the Issuer Pledged Collateral
      and to carry out the provisions of this Pledge and Security Agreement or to
      enable the Trustee to exercise and enforce its rights and remedies hereunder
      with respect to any Issuer Pledged Collateral.
      The
      Parent also agrees that, at any time and from time to time, at the Parent’s
      expense and upon the request of the Trustee at the Direction of Noteholders
      of a
      majority of the Outstanding Principal Balance of the Notes, the Parent will
      file
      (or cause to be filed) such UCC financing statements or continuation statements,
      or amendments thereto, and such other instruments or notices as may be necessary
      or that the Trustee may reasonably request at the Direction of Noteholders
      of a
      majority of the Outstanding Principal Balance of the Notes in order to perfect
      and preserve the security interests and other rights granted or purported to
      be
      granted to the Trustee hereby. With respect to the foregoing and the grant
      of
      the security interest hereunder, the Parent hereby authorizes the Trustee to
      file one or more UCC financing statements or continuation statements, and
      amendments thereto, relative to all or any part of the Issuer Pledged Collateral
      without the signature of the Parent where permitted by law. The Parent agrees
      that a carbon, photographic or other reproduction of this Pledge and Security
      Agreement or any UCC financing statement covering the Issuer Pledged Collateral
      or any part thereof shall be sufficient as a UCC financing statement where
      permitted by law.

     

    Section
      5.2 Further
      Assurances

     

    .
      If the
      Parent fails to perform any agreement contained herein after receipt of a
      written request to do so from the Trustee (it being understood that no such
      request need be given after the occurrence and during the continuance of an
      Event of Default), the Trustee may itself perform, or cause performance of,
      such
      agreement, in which case the reasonable expenses of the Trustee, including
      the
      fees and expenses of its counsel, incurred in connection therewith shall be
      payable by the Parent under Section 12.1.

    
      
        
        

      

      
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    ARTICLE
      VI

    COVENANTS

     

    Section
      6.1 No
      Liens.
      The
      Parent agrees that, without the consent of the Trustee pursuant to Section
      9.1
      or Section 9.2 of the Indenture, as applicable, it will not (a) sell or
      otherwise dispose of the Issuer Pledged Collateral or any interest therein
      or
      (b) except for Permitted Liens, create or permit to exist any Lien upon or
      with
      respect to any of the Issuer Pledged Collateral or any interest therein;
provided,
      however,
      that,
      so long as no Default or Event of Default is continuing, the Parent will be
      entitled to sell, transfer, assign, convey, contribute or grant the Issuer
      Pledged Equity subject to the lien of this Pledge and Security Agreement and
      satisfaction of the other conditions set forth in the exception provided in
      Section 6.2(a) of the Purchase and Sale Agreement.

     

    Section
      6.2 Notices.
      The
      Parent shall promptly provide the Trustee with copies of all notices and other
      communications received by the Parent with respect to any Issuer Pledged
      Collateral registered in the name of the Parent.

     

    Section
      6.3 Voting
      Rights.
      So long
      as the Parent is the owner of the Issuer Pledged Collateral, notwithstanding
      anything to the contrary in this Pledge and Security Agreement or any other
      Transaction Document, if no Event of Default has occurred and is continuing,
      the
      Parent may exercise any and all voting and consensual powers pertaining to
      the
      Issuer Pledged Collateral or any part thereof. If an Event of Default has
      occurred and is continuing, the Parent shall not be entitled to exercise any
      of
      the powers described in the preceding sentence, which shall be exercised
      exclusively by the Trustee. Notwithstanding the foregoing, upon the occurrence
      and during the continuance of an Event of Default comprised of any breach by
      the
      Parent of its covenant in Section 6.2(c) of the Purchase and Sale Agreement
      as
      to which the Trustee exercises remedies at law or equity available to it
      pursuant to or in relation to this Pledge and Security Agreement in respect
      of
      the Issuer Pledged Equity, the Trustee will have the right to instruct the
      Independent Member to exercise the powers and authority granted to the
      Independent Member pursuant to Section 2.13 of the limited liability company
      agreement of the Issuer to exercise any and all rights and options of the Issuer
      in relation to the Principal Documents to enforce performance by the other
      parties thereto of their obligations thereunder. If the Independent Member
      elects not to exercise such rights and options notwithstanding the provision
      by
      the Noteholders of reasonable indemnity thereto, then the Trustee will have
      the
      right to terminate the Independent Member and to appoint a successor Independent
      Member of the Issuer to exercise such rights and options. The Parent agrees
      to
      cooperate with the Trustee to cause such successor Independent Member to succeed
      the terminated Independent Member as the Class B Member of the Issuer, to be
      admitted as a member of the Issuer, and to obtain and enjoy to the exclusion
      of
      the terminated Independent Member all interests, powers, rights and authority
      previously owned, possessed or enjoyed by the terminated Independent Member
      pursuant to the limited liability company agreement of the Issuer. The Trustee
      will not be required to deliver any such instruction to the Independent Member
      or to terminate the Independent Member or appoint any successor Independent
      Member unless instructed to do so by Direction of Noteholders of a majority
      of
      the Outstanding Principal Balance of the Notes, will only do so as specified
      in
      such Direction, and will be entitled to be indemnified in full and held harmless
      by the Noteholders in connection with its delivery of any such instruction
      or
      any such termination or appointment.

    
      
        
        

      

      
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    Section
      6.4 Dividends
      and Distributions.
      So long
      as no Event of Default has occurred and is continuing, the Parent may receive
      and retain any dividends and other distributions on the Issuer Pledged Equity
      to
      the extent permitted under the Indenture. If an Event of Default has occurred
      and is continuing, the Parent shall not be entitled to receive any subsequent
      dividends or other distributions on the Issuer Pledged Equity and, unless
      otherwise agreed by the Trustee at the Direction of Noteholders of a majority
      of
      the Outstanding Principal Balance of the Notes, all such subsequent dividends
      and other distributions shall constitute Issuer Pledged Collateral.

     

    Section
      6.5 Capital
      Securities.
      The
      Parent agrees that it will not accept any Capital Securities or other equity
      ownership interests, any rights or options to acquire any Capital Securities
      or
      other equity ownership interests or other securities, each in addition to or
      in
      substitution for the Issuer Pledged Collateral, without prior written consent
      from the Trustee pursuant to Section 9.1 or Section 9.2 of the Indenture, as
      applicable, unless the foregoing are pledged to the Trustee pursuant
      hereto.

     

    Section
      6.6 Legal
      Existence.
      The
      Parent shall preserve and maintain (a) its legal existence as a corporation
      in
      good standing under the laws of the State of Delaware and (b) its qualification
      to do business in every jurisdiction where the ownership of its properties
      and
      the nature of its business require it to be so qualified and where the failure
      to be so qualified would have a material adverse effect on the security interest
      created by this Pledge and Security Agreement; provided,
      that
      this Section 6.6 shall not prohibit the Parent (or any parent entity of the
      Parent) from entering into any transaction of merger, consolidation or
      amalgamation with or, in the case of clause (i)(B) below, a sale of all or
      substantially all of the assets of the Parent (or any parent entity of the
      Parent) to, any other Person (i)(A) if the Parent (or such parent entity) is
      the
      continuing or surviving corporation or (B) if the Parent (or such parent entity)
      is not the continuing or surviving entity unless the continuing or surviving
      entity shall have assumed all of the obligations of the Parent under this Pledge
      and Security Agreement and the other Transaction Documents to which the Parent
      is a party immediately prior to such transaction and (ii) if the same is
      otherwise permitted by the terms of the Purchase and Sale Agreement without
      causing a violation of any of the covenants therein.

     

    Section
      6.7 Compliance
      with Laws.
      The
      Parent shall comply with all laws, and obtain, maintain and comply with all
      government approvals as shall now or hereafter be necessary under Applicable
      Law, in each case in connection with the making and performance by the Parent
      of
      any material provision of this Pledge and Security Agreement.

     

    Section
      6.8 Taxes.
      The
      Parent shall pay and discharge all material taxes, assessments and governmental
      charges or levies imposed on it or on its income or profits or on any of its
      properties by a taxing authority, in each case, prior to the date on which
      penalties attach thereto, and all lawful claims that, if unpaid, could
      reasonably be expected to become a Lien (other than a Permitted Lien) upon
      the
      Issuer Pledged Collateral, unless such matters are being challenged by the
      Parent in good faith by appropriate proceedings promptly instituted and
      diligently conducted, so long as (a) appropriate reserves shall have been made
      therefor and (b) in the case of a charge or claim that has become a Lien (other
      than a Permitted Lien), such proceedings conclusively operate to stay such
      charge or claim. The Parent will promptly pay or cause to be paid any valid,
      final judgment enforcing any such tax, assessment, charge, levy or claim and
      cause the same to be satisfied of record.

    
      
        
        

      

      
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    Section
      6.9 Modifications.
      The
      Parent shall not, without the prior written consent of the Trustee pursuant
      to
      Section 9.1 or Section 9.2 of the Indenture, as applicable, agree to or permit
      (a) the cancellation or termination of any of the Parent Organizational
      Documents, except upon the expiration of the stated term thereof or in
      connection with a merger, consolidation, asset sale or other similar transaction
      as contemplated by Section 6.6, or (b) any amendment, supplement or modification
      of, or waiver with respect to, any of the provisions of any of the Parent
      Organizational Documents, if any such amendment, supplement, modification or
      waiver would result in a material adverse change in the value of the Issuer
      Pledged Collateral or the rights of the Trustee.

     

    Section
      6.10 No
      Liquidation.
      Without
      the prior written direction by the Trustee pursuant to Section 9.1 or Section
      9.2 of the Indenture, as applicable, the Parent shall not take any action to
      liquidate or wind up the Issuer until all of the Secured Obligations are paid
      in
      full.

     

    Section
      6.11 Monies
      Held in Trust.
      Subject
      to Section 6.4, the Parent shall hold all monies received by it that constitute
      Issuer Pledged Collateral (including any payment or other benefit in breach
      of
      this Section 6.11 or Section 6.12) in trust for the Trustee, in order to satisfy
      the Secured Obligations pursuant to the direction of the Trustee.

     

    Section
      6.12 No
      Claims.
      Subject
      to Section 6.4, the Parent shall not claim payment, whether directly or by
      set-off, lien, counterclaim or otherwise, of any amount that may be or has
      become due to the Parent from the Issuer (other than Expenses and Servicing
      Fees
      in accordance with Section 3.7(a) of the Indenture and all royalties payable
      to
      the Parent to be held in trust or escrow for Pfizer and other third parties
      pursuant to Section 3.7(b) of the Indenture) until all of the Secured
      Obligations have been paid in full.

     

    ARTICLE
      VII

    TRUSTEE
      APPOINTED ATTORNEY-IN-FACT

     

    Section
      7.1 Trustee
      Appointed Attorney-In-Fact.
      The
      Parent hereby appoints the Trustee, or any Person (including any officer or
      agent) whom the Trustee may designate, as the Parent’s true and lawful
      attorney-in-fact, with full irrevocable power and authority in the place and
      stead of the Parent and in the name of the Parent or in its own name, at the
      Parent’s cost and expense, from time to time in the Trustee’s reasonable
      discretion to take any action and to execute any instrument that the Trustee
      may
      reasonably deem necessary or advisable to enforce its rights under this Pledge
      and Security Agreement, including authority to receive, endorse and collect
      all
      instruments made payable to the Parent representing any distribution, interest
      payment or other payment in respect of the Issuer Pledged Collateral or any
      part
      thereof and to give full discharge for the same and to sign, complete and
      deliver all transfers, proxies and letters of resignation; provided,
      however,
      that
      the Trustee will not exercise its powers under this Section 7.1 unless an Event
      of Default has occurred and is continuing and unless so instructed by the
      Noteholders pursuant to the Indenture.

    
      
        
        

      

      
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    ARTICLE
      VIII

    REASONABLE
      CARE

     

    Section
      8.1 Reasonable
      Care.
      The
      Trustee shall be deemed to have exercised reasonable care in the custody and
      preservation of the Issuer Pledged Collateral in its possession if the Issuer
      Pledged Collateral is accorded treatment substantially equivalent to that which
      the Trustee accords its own property of the type of which the Issuer Pledged
      Collateral consists, it being understood that the Trustee shall have no
      responsibility for (a) ascertaining or taking action with respect to calls,
      conversions, exchanges, maturities, tenders or other matters relative to any
      Issuer Pledged Collateral, whether or not the Trustee has or is deemed to have
      knowledge of such matters, or (b) taking any necessary steps to preserve rights
      against any parties with respect to any Issuer Pledged Collateral absent its
      gross negligence or willful misconduct.

     

    ARTICLE
      IX

    NO
      LIABILITY

     

    Section
      9.1 No
      Liability.
      Neither
      the Trustee nor any of its directors, officers, employees or agents shall be
      deemed to have assumed any of the liabilities or obligations of the Parent
      as a
      result of the pledge and security interest granted under or pursuant to this
      Pledge and Security Agreement. In the absence of gross negligence or willful
      misconduct, the Trustee or any of its directors, officers, employees or agents
      shall not be liable for any failure to collect or realize upon the Secured
      Obligations or any collateral security or guarantee therefor, or any part
      thereof, or for any delay in so doing nor shall it be under any obligation
      to
      take any action whatsoever with regard thereto.

     

    ARTICLE
      X

    REMEDIES
      UPON EVENT OF DEFAULT

     

    Section
      10.1 Remedies
      Upon Event of Default.
      If
      an
      Event of Default shall have occurred and be continuing, and subject to Section
      4.3 of the Indenture:

     

    (a) The
      Trustee may exercise the power of attorney described in Section 7.1 with respect
      to any of the certificates or other instruments delivered pursuant to Section
      3.1 with respect to the Issuer Pledged Collateral, and may sign, complete and
      deliver all transfers, proxies and letters of resignation and do all acts and
      things that the Trustee may in its absolute discretion specify to enable or
      assist the Trustee to perfect or improve its security over the Capital
      Securities, to vest ownership of the Capital Securities in the Trustee or its
      nominee, to provide that the Trustee is registered as the holder of the Capital
      Securities, to exercise any rights or powers attaching to the Capital
      Securities, to sell the Capital Securities or otherwise to enforce any of the
      rights of the Trustee under this Pledge and Security Agreement.

    
      
        
        

      

      
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    (b) The
      Trustee may exercise in respect of the Issuer Pledged Collateral, in addition
      to
      other rights and remedies provided for herein or otherwise available to it,
      all
      the rights and remedies of a secured party on default under the UCC, to the
      extent permitted by Applicable Law or the UCC as then in effect in any
      applicable jurisdiction, and the Trustee may also in its sole discretion,
      without notice except as specified below or except as required by mandatory
      provisions of the UCC and other Applicable Law, sell the Issuer Pledged
      Collateral or any part thereof in one or more parcels at public or private
      sale
      or at any of the Trustee’s offices or elsewhere, for cash, on credit or for
      future delivery, and at such price or prices and upon such other terms as the
      Trustee may deem commercially reasonable, irrespective of the impact of any
      such
      sales on the market price of the Issuer Pledged Collateral at any such sale.
      Each purchaser at any such sale shall hold the property, sold absolutely, free
      from any claim or right on the part of the Parent, and the Parent hereby waives
      (to the extent permitted by law) all rights of redemption, stay and/or appraisal
      that it now has or may at any time in the future have under any rule of law
      or
      statute now existing or hereafter enacted. The Parent agrees that, to the extent
      notice of sale shall be required by law, at least ten days’ notice to the Parent
      of the time and place of any public or private sale shall constitute reasonable
      notification. The Trustee shall not be obligated to make any sale of Issuer
      Pledged Collateral regardless of notice of sale having been given. The Trustee
      may adjourn any public or private sale from time to time by announcement at
      the
      time and place fixed therefor, and such sale may, without further notice, be
      made at the time and place to which it was so adjourned. The Trustee shall
      incur
      no liability as a result of the sale of the Issuer Pledged Collateral, or any
      part thereof, at any public or private sale. The Parent hereby waives any claims
      against the Trustee arising by reason of the fact that the price at which any
      Issuer Pledged Collateral may have been sold at such a private sale was less
      than the price that might have been obtained at a public sale.

     

    (c) The
      Parent recognizes that the Trustee may elect in its sole discretion to sell
      all
      or a part of the Issuer Pledged Collateral to one or more purchasers in
      privately negotiated transactions in which the purchasers will be obligated
      to
      agree, among other things, to acquire the Issuer Pledged Collateral for their
      own account, for investment and not with a view to the distribution or resale
      thereof. The Parent acknowledges that any such private sales may be at prices
      and on terms less favorable than those obtainable through a public sale
      (including a public offering made pursuant to a registration statement under
      the
      Securities Act), and the Parent and the Trustee agree that the mere fact that
      such private sales were private sales individually negotiated, does not mean
      that such private sales were not made in a commercially reasonable manner,
      and
      that the Trustee has no obligation to engage in public sales or to delay sale
      of
      any Issuer Pledged Collateral to permit the Issuer to register the Issuer
      Pledged Collateral for a form of public sale thereof requiring registration
      under the Securities Act.

     

    (d) Any
      cash
      held by the Trustee as Issuer Pledged Collateral, and all cash proceeds received
      by the Trustee in respect of any sale of, collection from or other realization
      upon all or any part of the Issuer Pledged Collateral, shall, as soon as
      reasonably practicable, be applied by the Trustee first
      to the
      payment of the costs and expenses (including pursuant to Section 12.1) of such
      sale, collection or other realization, if any, including reasonable
      out-of-pocket costs and expenses of the Trustee (including the reasonable fees
      and out-of-pocket expenses of its counsel), and all reasonable expenses,
      liabilities and advances made or incurred by the Trustee in connection therewith
      to the extent not paid by the Parent pursuant to Section 12.1, second
      to the
      payment of the Secured Obligations in accordance with the terms of the Indenture
      and third
      all
      remaining amounts shall promptly be paid to the Parent or its successors or
      assigns.

    
      
        
        

      

      
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    (e) The
      Trustee may by writing without notice to the Parent appoint one or more persons
      as the Trustee deems fit to be a receiver in relation to the Issuer Pledged
      Collateral. Where the Trustee appoints two or more persons as such receiver,
      such receivers may act jointly or independently. With respect to the enforcement
      of this Pledge and Security Agreement, such receiver may sell, charge or
      otherwise dispose of the Issuer Pledged Collateral, exercise any powers,
      discretion, voting or other rights or entitlements in relation to the Issuer
      Pledged Collateral and generally carry out any other action that such receiver
      may in such receiver’s sole discretion deem necessary in relation to the
      enforcement of this Pledge and Security Agreement. Such receiver shall have,
      in
      addition to the other powers set forth in this Section 10.1(e), the power
      to:

     

    (i) take
      possession of, collect and get in the Issuer Pledged Collateral and, for that
      purpose, take such proceedings as may seem to such receiver to be
      expedient;

     

    (ii) raise
      or
      borrow money and grant security therefor over the Issuer Pledged
      Collateral;

     

    (iii) appoint
      an attorney or accountant or other professionally qualified person to assist
      such receiver in the performance of such receiver’s functions;

     

    (iv) bring
      or
      defend any action or other legal proceeding in the name of and on behalf of
      the
      Parent in respect of the Issuer Pledged Collateral;

     

    (v) do
      all
      acts and execute in the name and on behalf of the Parent any document or deed
      in
      respect of the Issuer Pledged Collateral;

     

    (vi) make
      any
      payment that is necessary or incidental to the performance of such receiver’s
      functions;

     

    (vii) make
      any
      arrangement or compromise on behalf of the Parent in respect of the Issuer
      Pledged Collateral;

     

    (viii) rank
      and
      claim in the insolvency or liquidation of the Issuer and receive dividends
      and
      accede to agreements for the creditors of the Issuer;

     

    (ix) present
      or defend a petition for the winding up of the Issuer; and

     

    (x) do
      all
      other things incidental to the exercise of the foregoing powers.

     

    (f) The
      Parent agrees that:

     

    (i) in
      any
      sale of any of the Issuer Pledged Collateral whenever an Event of Default shall
      have occurred and be continuing, the Trustee is hereby authorized to comply
      with
      any limitation or restriction in connection with such sale as it may be advised
      by counsel is necessary in order to:

     

    (A) avoid
      any
      violation of Applicable Law (including compliance with such procedures as may
      restrict the number of prospective bidders and purchasers, require that such
      prospective bidders and purchasers have certain qualifications and restrict
      such
      prospective bidders and purchasers to Persons who will represent and agree
      that
      they are purchasing for their own account for investment and not with a view
      to
      the distribution or resale of such Issuer Pledged Collateral);
      or

    
      
        
        

      

      
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    (B) obtain
      any required approval of the sale or of the purchaser by any Governmental
      Authority or official; and

     

    (ii) such
      compliance shall not result in such sale being considered or deemed not to
      have
      been made in a commercially reasonable manner, nor shall the Trustee be liable
      or accountable to the Parent for any discount allowed by the reason of the
      fact
      that such Issuer Pledged Collateral is sold in compliance with any such
      limitation or restriction.

     

    ARTICLE
      XI

    PURCHASE
      OF THE ISSUER PLEDGED COLLATERAL

     

    Section
      11.1 Purchase
      of the Issuer Pledged Collateral.
      The
      Parent may, but shall not be required to, bid on and be a purchaser of the
      Issuer Pledged Collateral or any part thereof or any right or interest therein
      at any sale thereof, whether pursuant to foreclosure, power of sale or otherwise
      hereunder and the Trustee may apply the purchase price to the payment of the
      Secured Obligations secured hereby. Any purchaser of all or any part of the
      Issuer Pledged Collateral shall, upon any such purchase, acquire good title
      to
      the Issuer Pledged Collateral so purchased, free of the security interests
      created by this Pledge and Security Agreement.

     

    ARTICLE
      XII

    EXPENSES

     

    Section
      12.1 Expenses.
      The
      Parent will upon demand pay to the Trustee the amount of any and all reasonable
      expenses, including the reasonable fees and expenses of its counsel and of
      any
      experts and the Trustee, and any transfer taxes, in each case payable upon
      sale
      of the Issuer Pledged Collateral, which the Trustee may incur in connection
      with
      (a) the custody or preservation of, or the sale of, collection from or other
      realization upon, any of the Issuer Pledged Collateral, (b) the exercise or
      enforcement of any of the rights of the Trustee hereunder, (c) the failure
      by
      the Parent to perform or observe any of the provisions hereof or (d) the
      administration of this Pledge and Security Agreement. Any amount payable by
      the
      Parent pursuant to this Section 12.1 shall be payable upon demand and shall
      constitute Secured Obligations secured hereby.

     

    ARTICLE
      XIII

    NO
      WAIVER;
      REMEDIES

     

    Section
      13.1 No
      Waiver;
      Remedies.
      No
      failure or delay on the part of the Trustee to exercise, and no course of
      dealing with respect to, and no delay in exercising, any right, power or remedy
      hereunder shall operate as a waiver thereof, nor shall any single or partial
      exercise by the Trustee of any right, power or remedy preclude any additional
      exercise by the Trustee of such right, power or remedy. The remedies herein
      provided are to the fullest extent permitted by law cumulative and are not
      exclusive of any remedies provided by law. No notice to or demand on the Parent
      in any case shall entitle the Parent to any other or further notice or demand
      in
      similar or other circumstances.

    
      
        
        

      

      
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    ARTICLE
      XIV

    AMENDMENTS

     

    Section
      14.1 Amendments.
      No
      waiver, amendment, modification or termination of any provision of this Pledge
      and Security Agreement, or consent to any departure by the Parent therefrom,
      shall in any event be effective without the written concurrence of the Trustee
      pursuant to Section 9.1 or Section 9.2 of the Indenture, as applicable, and
      (except as otherwise provided in Section 15.1) none of the Issuer Pledged
      Collateral shall be released without the written consent of the Trustee pursuant
      to Section 9.1 or Section 9.2 of the Indenture, as applicable. Any such waiver
      or consent shall be effective only in the specific instance and for the specific
      purpose for which given.

     

    ARTICLE
      XV

    RELEASE;
      TERMINATION

     

    Section
      15.1 Release;
      Termination.
      Upon
      payment and performance in full of the Secured Obligations or discharge of
      the
      Indenture pursuant to Section 11.1 of the Indenture, this Pledge and Security
      Agreement shall terminate automatically, and the Trustee (a) upon written
      request by the Parent shall promptly deliver to the Parent any remaining Issuer
      Pledged Collateral and money received in respect thereof in its possession,
      and
      all documents, agreements or instruments representing the Issuer Pledged
      Collateral held by the Trustee prior to such termination, and (b) upon written
      request by the Parent, shall promptly execute and deliver to the Parent and,
      if
      necessary, file or record, at the Parent’s expense, all such documentation
      (including UCC termination statements) necessary to release, and evidence the
      release of, the liens on the Issuer Pledged Collateral, such documentation
      to be
      prepared by the Parent and delivered to the Trustee. If the Trustee fails to
      promptly deliver or file or record the UCC termination statements referred
      to
      in, and in accordance with, clause (b) in the immediately preceding sentence,
      then the Parent may file or record such UCC termination statements.

     

    ARTICLE
      XVI

    NOTICES

     

    Section
      16.1 Notices.
      All
      Notices shall be in writing and shall be effective (a) upon receipt when sent
      through the mails, registered or certified mail, return receipt requested,
      postage prepaid, with such receipt to be effective the date of delivery
      indicated on the return receipt, (b) upon receipt when sent by an overnight
      courier, (c) on the date personally delivered to an authorized officer of the
      party to which sent, (d) on the date transmitted by legible telecopier
      transmission with a confirmation of receipt or (e) in the case of any report
      that is of a routine nature, on the date sent by first class mail or overnight
      courier or transmitted by legible telecopier transmission, in all cases, with
      a
      copy emailed to the recipient at the applicable address, addressed to the
      recipient in accordance with Section 12.5 of the Indenture. Each party hereto
      may, by notice given in accordance herewith to each of the other parties hereto,
      designate any further or different address to which subsequent Notices shall
      be
      sent.

    
      
        
        

      

      
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    ARTICLE
      XVII

    CONTINUING
      SECURITY INTEREST

     

    Section
      17.1 Continuing
      Security Interest.
      This
      Pledge and Security Agreement shall create a continuing Lien in the Issuer
      Pledged Collateral and remain in full force and effect until the release thereof
      pursuant to Section 15.1 or the sale thereof pursuant to Section 11.1, shall
      be
      binding upon the Parent and its successors, transferees and assigns and shall
      inure to the benefit of and be enforceable by the Trustee and its successors,
      transferees and assigns; provided,
      however,
      that
      the Parent may not (unless otherwise permitted under the terms of the Indenture)
      assign any of its obligations hereunder without the prior written consent of
      the
      Trustee. The Trustee and the Noteholders may assign or otherwise transfer any
      indebtedness held by any of them secured by this Pledge and Security Agreement
      to any other Person in accordance with the Indenture, and such transfer will
      not
      diminish the rights and benefits granted to the Trustee herein or
      otherwise.

     

    ARTICLE
      XVIII

    SECURITY
      INTEREST ABSOLUTE

     

    Section
      18.1 Security
      Interest Absolute.
      All
      rights of the Trustee and security interests hereunder, and all obligations
      of
      the Parent hereunder, shall be absolute and unconditional irrespective of,
      and
      the Parent hereby irrevocably waives any defenses it may now have or may
      hereafter acquire in any way relating to, any or all of the
      following:

     

    (a) any
      lack
      of validity or enforceability of any of the Transaction Documents or any other
      agreement or instrument relating thereto (other than against the
      Trustee);

     

    (b) any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Secured Obligations, or any other amendment or waiver of or any
      consent to any departure from the Transaction Documents or any other agreement
      or instrument relating thereto, including any increase in the Secured
      Obligations resulting from the extension of additional credit;

     

    (c) any
      taking, exchange, surrender, release or non-perfection of any Issuer Pledged
      Collateral or any other collateral securing the Secured Obligations, or any
      release or amendment or waiver of or consent to any departure from any guaranty,
      for all or any of the Secured Obligations;

     

    (d) any
      manner of application of any other collateral, or proceeds thereof, to all
      or
      any of the Secured Obligations, or any manner of sale or other disposition
      of
      any other collateral securing all or any of the Secured Obligations or any
      other
      obligations of the Issuer under or in respect of the Transaction
      Documents;

     

    (e) any
      change, restructuring or termination of the limited liability company structure
      or existence of the Issuer;

     

    (f) the
      release or reduction of liability of any guarantor or surety with respect to
      the
      Secured Obligations; or

    
      
        
        

      

      
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    (g) any
      other
      circumstance (including any statute of limitations) or any existence of or
      reliance on any representation to the Trustee that might otherwise constitute
      a
      defense available to, or a discharge of, the obligations of the
      Parent.

     

    ARTICLE
      XIX

    INDEMNITY

     

    Section
      19.1 Indemnity.
      The
      Parent agrees to indemnify, reimburse, defend and save and hold the Trustee
      and
      its officers, directors, employees, agents, advisors and affiliates (each,
      an
“Indemnitee”
and,
      collectively, the “Indemnitees”)
      harmless from and against, and shall pay on demand, any and all liabilities,
      losses, obligations, damages, injuries, penalties, claims, demands, actions,
      suits, judgments and any and all costs and expenses (including attorneys’ fees
      and disbursements) of whatsoever kind and nature imposed on, asserted against
      or
      incurred by any of the Indemnitees (a) in connection with the custody or
      preservation of, or the sale of, collection from or other realization upon,
      any
      of the Issuer Pledged Collateral pursuant to the exercise or enforcement of
      any
      of the rights of the Trustee hereunder, (b) in connection with the failure
      by
      the Parent to perform or observe any of the provisions hereof or (c) arising
      out
      of or in connection with or resulting from this Pledge and Security Agreement
      and the transactions contemplated hereby, excluding those arising out of the
      bad
      faith, gross negligence or willful misconduct of any Indemnitee. Each Indemnitee
      agrees to use its best efforts to promptly notify the Parent of any assertion
      of
      any such liability, damage, injury, penalty, claim, demand, action, judgment
      or
      suit of which such Indemnitee has knowledge.

     

    The
      obligations of the Parent in this Section 19.1 shall survive the termination
      of
      this Pledge and Security Agreement.

     

    ARTICLE
      XX

    OBLIGATIONS
      SECURED BY ISSUER PLEDGED COLLATERAL

     

    Section
      20.1 Obligations
      Secured by Issuer Pledged Collateral.
      Any
      amounts paid by any Indemnitee as to which such Indemnitee has the right to
      indemnification, and any amounts paid by the Trustee in preservation of any
      of
      its rights or interest in the Issuer Pledged Collateral, shall constitute
      Secured Obligations secured by the Issuer Pledged Collateral.

     

    ARTICLE
      XXI

    SEVERABILITY

     

    Section
      21.1 Severability.
      Any
      provision of this Pledge and Security Agreement that is prohibited or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such prohibition or unenforceability without invalidating
      the
      remaining provisions hereof, and any such prohibition or unenforceability in
      any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction. Where provisions of any law or regulation resulting in
      such
      prohibition or unenforceability may be waived, they are hereby waived by the
      parties hereto to the full extent permitted by law so that this Pledge and
      Security Agreement shall be deemed a valid, binding agreement in accordance
      with
      its terms.

    
      
        
        

      

      
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    ARTICLE
      XXII

    COUNTERPARTS;
      EFFECTIVENESS

     

    Section
      22.1 Counterparts;
      Effectiveness.
      This
      Pledge and Security Agreement and any amendments, waivers, consents or
      supplements may be executed in counterparts, each of which when so executed
      and
      delivered shall be deemed an original, but all such counterparts together shall
      constitute but one and the same instrument. This Pledge and Security Agreement
      shall become effective upon the execution and delivery of a counterpart hereof
      by each of the parties hereto.

     

    ARTICLE
      XXIII

    REINSTATEMENT

     

    Section
      23.1 Reinstatement.
      This
      Pledge and Security Agreement shall continue to be effective or be reinstated,
      as the case may be, if at any time any amount received by the Trustee hereunder
      or pursuant hereto is rescinded or must otherwise be restored or returned by
      the
      Trustee, as the case may be, upon the insolvency, bankruptcy, dissolution,
      liquidation or reorganization of the Parent or upon the appointment of any
      intervenor or conservator of, or trustee or similar official for, the Parent
      or
      any substantial part of its assets, or upon the entry of an order by a
      bankruptcy court avoiding the payment of such amount, or otherwise, all as
      though such payments had not been made.

     

    ARTICLE
      XXIV

    SUBMISSION
      TO JURISDICTION; WAIVER OF JURY TRIAL

     

    Section
      24.1 SUBMISSION
      TO JURISDICTION.

     

    (a) ANY
      LEGAL
      ACTION OR PROCEEDING WITH RESPECT TO THIS PLEDGE AND SECURITY AGREEMENT MAY
      BE
      BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF
      MANHATTAN, THE CITY OF NEW YORK OR OF THE UNITED STATES FEDERAL COURT SITTING
      IN
      THE BOROUGH OF MANHATTAN, THE CITY OF NEW YORK, AND, BY EXECUTION AND DELIVERY
      OF THIS PLEDGE AND SECURITY AGREEMENT, EACH PARTY HERETO CONSENTS, FOR ITSELF
      AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE
      COURTS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE
      MANNER PROVIDED FOR NOTICES IN SECTION 16.1. NOTHING IN THIS PLEDGE AND SECURITY
      AGREEMENT SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY
      OTHER MANNER PERMITTED BY LAW. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE
      MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY OBJECTION TO
      THE
      LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY
      NOW
      OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
      JURISDICTION IN RESPECT OF THIS PLEDGE AND SECURITY AGREEMENT OR ANY DOCUMENT
      RELATED HERETO. EACH PARTY HERETO WAIVES PERSONAL SERVICE OF ANY SUMMONS,
      COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED
      BY
      NEW YORK LAW.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (b) THE
      PARENT IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
      AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE SENDING OF COPIES
      THEREOF BY FEDERAL EXPRESS OR OTHER OVERNIGHT COURIER COMPANY, TO THE PARENT
      AT
      ITS ADDRESS SPECIFIED BY SECTION 16.1.

     

    ARTICLE
      XXV

    GOVERNING
      LAW

     

    Section
      25.1 GOVERNING
      LAW.
      THIS
      PLEDGE AND SECURITY AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
      WITH THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
      TO
      THE RULES THEREOF RELATING TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF
      THE
      GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS
      AND REMEDIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, EXCEPT
      TO THE EXTENT THE VALIDITY OR PERFECTION OF THE
      SECURITY INTEREST HEREUNDER, OR THE REMEDIES HEREUNDER, ARE GOVERNED BY THE
      LAWS
      OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

     

    ARTICLE
      XXVI

    TABLE
      OF CONTENTS AND HEADINGS

     

    Section
      26.1 Table
      of Contents and Headings.
      The
      Table of Contents and headings of the Articles and Sections of this Pledge
      and
      Security Agreement have been inserted for convenience of reference only, are
      not
      to be considered a part hereof and shall in no way modify or restrict any of
      the
      terms or provisions hereof.

     

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, each of the parties hereto has caused this Pledge and Security
      Agreement to be duly executed and delivered as of the date first above
      written.

     

    
      	
              INSITE
                VISION INCORPORATED

            
	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            
	
              U.S.
                BANK NATIONAL ASSOCIATION, 

              not
                in its individual capacity but solely as Trustee

            
	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

      Annex
        A

      

      

      See
        Annex
        A to the Purchase and Sale Agreement by and between Azithromycin Royalty
        Sub LLC
        and the Company dated February 21, 2008, attached as Exhibit 10.1 to this
        Quarterly Report on Form 10-Q".

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