Document:

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                                                                   EXHIBIT 10.36

                             DATED 10th OCTOBER, 2001

                              THE MASTER FELLOWS AND    (1)
                           SCHOLARS OF TRINITY COLLEGE
                                    CAMBRIDGE

                                VIRCO U.K. LIMITED      (2)

                           VISIBLE GENETICS UK LIMITED

                               VISIBLE GENETICS INC     (4)

                        ---------------------------------

                                LICENCE TO ASSIGN

                         IN RESPECT OF UNIT 184 PHASE 3
                       CAMBRIDGE SCIENCE PARK MILTON ROAD
                                    CAMBRIDGE

                        --------------------------------

                 LICENSE TO ASSIGN (WITH SURETY) ("NEW TENANCY")

                                  MILLS & REEVE
                                    CAMBRIDGE

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         THIS LICENCE is made on 10th October, 2001 BETWEEN:

         (1)      THE MASTER FELLOWS AND SCHOLARS OF THE COLLEGE OF THE HOLY AND
                  UNDIVIDED TRINITY WITHIN THE TOWN AND UNIVERSITY OF CAMBRIDGE
                  OF KING HENRY THE EIGHTH'S FOUNDATION ("LANDLORD");

         (2)      VIRCO U.K. LIMITED incorporated in England with registered
                  number 03348588 whose registered office is at Cartwright &
                  Company 106 High Street Stevenage Hertfordshire SG1 3DW
                  ("TENANT");

         (3)      VISIBLE GENETICS UK LIMITED incorporated in England with
                  registered number 04076100 whose registered office is at 20-22
                  Bedford Row London WC1R 4JS ("ASSIGNEE");

         (4)      VISIBLE GENETICS INC an Ontario corporation incorporated in
                  the Province of Ontario Canada whose registered office is at
                  700 Bay Street Suite 1000 Toronto Canada M5G 126 ("SURETY").

         NOW THIS DEED WITNESSES as follows:

1.       INTERPRETATION

1.1      In this License the following expressions have (unless the context
         otherwise requires) the following meanings:

         "ASSIGNMENT" means the assignment of the Lease by the Tenant to the
         Assignee authorized by this License;

         "LANDLORD" includes the immediate reversioner from time to time to the
         Lease;

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         "LEASE" means the lease of the Premises which is briefly described in
         Schedule 1 and includes any "collateral agreement" (as that term is
         defined by section 28 Landlord and Tenant (Covenants) Act 1995)
         mentioned in Schedule 1;

         "PREMISES" means the premises briefly described in Schedule 1;

         "TENANT COVENANT" means a "tenant covenant" as defined by section 28
         Landlord and Tenant (Covenants) Act 1995.

1.2      In this License unless the context otherwise requires:

         1.2.1    words importing any gender include every gender;

         1.2.2    words importing the singular number only include the plural
                  number and vice versa;

         1.2.3    words importing persons include firms companies and
                  corporations and vice versa;

         1.2.4    where any obligation is undertaken by two or more persons
                  jointly those persons will be jointly and severally liable in
                  respect of that obligation;

         1.2.5    the headings to the clauses will not affect the
                  interpretation.

1.3      The guarantee given by the Tenant in Schedule 2 is an authorized
         guarantee agreement under section 16 Landlord and Tenant (Covenants)
         Act 1995 and is entered into by the Tenant as a result of the Landlord
         having stipulated that the Landlord's consent to the Assignment is
         conditional upon the Tenant entering into the guarantee.

2.       GRANT OF LICENSE

2.1      At the request of the Tenant and the Surety the Landlord grants to the
         Tenant its license to assign the Lease to the Assignee.

3.       ASSIGNEE'S COVENANTS

3.1      The Assignee covenants with the Landlord that within 28 days of the
         date of completion of the Assignment it will send to the Landlord:

                                       2
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         3.1.1    notice of the address to which future rent demands should be
                  sent;

         3.1.2    a certified Copy of the deed effecting the Assignment.

4.       AUTHORIZED GUARANTEE AGREEMENT

4.1      The Tenant covenants with the Landlord as a primary obligation (and
         without the need for any express assignment) to observe and perform the
         covenants set out in Schedule 2.

5.       SURETY COVENANTS

5.1      The Surety covenants with the Landlord (and without the need for any
         express assignment) as a primary obligation to observe and perform the
         covenants set out in Schedule 3.

6.       TENANT'S COVENANT

6.1      The Tenant covenants with the Landlord:

         6.1.1    not to allow the Assignee into occupation of the Premises
                  until completion of the Assignment; and

         6.1.2    to pay the Landlord's solicitors' and surveyors' reasonable
                  costs incurred in connection with this License not exceeding
                  in the case of the solicitors (pound)[ ] and (pound)[ ] for
                  the surveyors plus (in both instances) Value Added Tax and
                  disbursements.

7.       VALIDITY OF LICENSE

7.1      Unless the Assignment is completed within two months after the date of
         this License (as to which time is of the essence) this License will be
         void but without any obligation on the part of the Landlord to refund
         any costs paid by the Tenant in connection with the grant of this
         License.

8.       CONTINUING EFFECT OF THE LEASE

8.1      This License is restricted to the Assignment and all the covenants and
         conditions in the Lease so far as the law allows remain in full force
         and effect.

                                       3
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9.       FORFEITURE

9.1      The condition for re-entry contained in the Lease is exercisable if the
         Tenant breaches any of the covenants and conditions in this License.

10.      RIGHTS OF THIRD PARTIES

10.1     The parties to this License do not intend that any of its terms will be
         enforceable by virtue of the Contracts (Rights of Third Parties) Act
         1999.

11.      PROPER LAW

11.1     This License shall be governed by English Law and the Tenant the
         Assignee and the Surety irrevocably submit to the non-exclusive
         jurisdiction of the English Courts.

11.2     The Surety irrevocably authorizes and appoints McCarthy Tetrault of
         Pountney Hill House, 6 Laurence Pountney Hill, London EC4R 0BL (or such
         other form of solicitors resident in England and Wales as it may from
         time to time by written notice to the Landlord substitute) to accept
         service of all legal process arising out of or connected with this
         License and service on McCarthy Tetrault (or such substitute) shall be
         deemed to be service on the Surety.

12.      NOTICES

12.1     The Landlord shall serve on the Surety confirmatory copies of any
         notice served on the Tenant or Assignee in writing by courier (but at
         the Surety's cost) by registered post or by facsimile to the address or
         facsimile number set out below or as specified from time to time by the
         Surety: Attention: General Counsel, Visible Genetics Inc, 700 Bay
         Street, Suite 1000, Toronto, Ontario, Canada M5G 126; Fax:
         +1-416-813-3255.

13.      EXECUTION

13.1     This instrument:

         13.1.1   is executed as a deed and by its execution the parties
                  authorize their solicitors to deliver it for them when it is
                  dated;

         13.1.2   was delivered when it was dated.

                                       4
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                                   SCHEDULE 1

                                   (THE LEASE)

         The Premises: Unit 184 Phase 3 Cambridge Science Park Milton Road
         Cambridge

         The Contractual Term: From 19 January 1999 to 25 March 1999 and
         thereafter for a term of 15 years

         The Parties: (1) the Landlord and (2) the Tenant and (3) VIRCO NV

                                       5
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                                   SCHEDULE 2

                      (THE AUTHORIZED GUARANTEE AGREEMENT)

1.       In this schedule:

         "AUTHORIZED GUARANTEE AGREEMENT" means an authorized guarantee
         agreement within the meaning of section 16 Landlord and Tenant
         (Covenants) Act 1995;

         "RELEVANT VARIATION" means a relevant variation as defined in section
         18(4) Landlord and Tenant (Covenants) Act 1995;

         "SECURED OBLIGATIONS" means the obligation of the Assignee:

         (a)      to pay all sums from time to time due or expressed to be due
                  to the Landlord from the Assignee under the Lease; and

         (b)      to observe and perform the Tenant Covenants in the Lease;

         "TERM" means the contractual term granted by the Lease together with
         the period of any holding over and any extension of the contractual
         term by statute or otherwise;

         "TERMINATING EVENT" means the disclaimer of the Lease (including
         without limitation the disclaimer by the Crown under section 656
         Companies Act 1985) following the liquidation or bankruptcy of the
         Assignee or the Assignee being wound up or ceasing to exist.

2.       This guarantee is given pursuant to a provision in the Lease requiring
         it to be given and is an Authorized Guarantee Agreement.

3.       The Tenant unconditionally and irrevocably covenants with and
         guarantees to the Landlord that the Assignee will throughout the Term
         pay and discharge the Secured Obligations when they fall due or are
         expressed to fall due under the Lease for payment and discharge.

                                       6
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4.       The Tenant shall upon being requested to do so by the Landlord enter
         into any deed of variation license consent or other document to which
         in each case the Assignee is a party and which is in each case
         supplemental to the Lease for the purpose of acknowledging that the
         Tenant's liabilities under this Authorized Guarantee Agreement extend
         to it but to the extent that the document effects a Relevant Variation
         paragraph 13 shall apply.

5.       The guarantee and covenant in paragraph 3 shall impose on the Tenant
         the same liability as if the Tenant were the principal debtor in
         respect of the Assignee's obligations under the Lease and that
         liability shall continue notwithstanding (and will not be discharged in
         whole or in part or otherwise affected by):

         (a)      any forbearance by the Landlord to enforce against the
                  Assignee the Tenant Covenants;

         (b)      the giving of time or other concessions or the taking or
                  holding of or varying realizing releasing or not enforcing any
                  other security for the liabilities of the Assignee;

         (c)      any legal limitation or incapacity relating to the Assignee;

         (d)      the invalidity or unenforceability of any of the obligations
                  of the Assignee;

         (e)      the Assignee ceasing to exist;

         (f)      the giving and subsequent withdrawal of any notice to
                  determine the Lease;

         (g)      any increase or reduction in the extent of the Premises or in
                  the rent payable under the Lease or any other variation to the
                  Lease;

         (h)      the disclaimer (including without limitation disclaimer by the
                  Crown under section 656 Companies Act 1985) of the Lease;

         (i)      any other act or omission of the Landlord or any other
                  circumstances which but for this paragraph 5 would discharge
                  the Tenant

         and for the purposes of this paragraph 5 the Tenant shall be deemed
         liable to continue to pay and discharge,.; the Secured Obligations
         notwithstanding any of the above matters and any money expressed to be
         payable by the Assignee which may not be recoverable

                                       7
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         for any such reason shall be recoverable by the Landlord from the
         Tenant as principal debtor.

6.       The Tenant shall if required by the Landlord in writing within three
         months after a Terminating Event accept a lease of the Premises for the
         residue of the contractual term unexpired at and with effect from the
         date of the Terminating Event at the same annual rent as reserved by
         the Lease (reviewable at the same times as the annual rent would have
         been reviewable under the Lease had there been no disclaimer) and
         subject to the same covenants and provisos (except that the Tenant
         shall not be required to procure that any other person is made a party
         to that lease as a guarantor) and the Tenant on execution of the new
         lease will pay the reserved rents for the period from the date of the
         disclaimer to the quarter day following the date of the new lease and
         the costs of and incidental to the new lease and will execute and
         deliver to the Landlord a counterpart.

7.       Where the Tenant consists of more than one person and if the Landlord
         requires consequently more than one person to take a new lease those
         guarantors shall take that new lease as joint tenants.

8.       Until the Secured Obligations have been paid and discharged in full the
         Tenant shall not without Consent exercise any rights:

         (a)      of subrogation or indemnity in respect of the Secured
                  Obligations;

         (b)      to take the benefit of share in or enforce any security, or
                  other guarantee or indemnity for the Secured Obligations;

         (c)      to prove in the bankruptcy or liquidation of the Assignee in
                  competition with the Landlord.

9.       The Tenant has not taken any security from the Assignee and will not do
         so.

10.      Any security taken by the Tenant in breach of paragraph 8 and all money
         at any time received in respect of it shall be held in trust for the
         Landlord as security for the liability of the Tenant under this
         Authorized Guarantee Agreement.

                                       8
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11.      Nothing in this Authorized Guarantee Agreement shall operate so as to
         make the Tenant liable for anything in respect of which the Assignee is
         released from liability by the provisions of the Landlord and Tenant
         (Covenants) Act 1995.

12.      To the extent that this Authorized Guarantee Agreement purports to
         impose on the Tenant any liability for anything in respect of which the
         Assignee is released from liability by the provisions of the Landlord
         and Tenant (Covenants) Act 1995 the relevant provision of this
         Authorized Guarantee Agreement shall to that extent only be void but
         that shall not affect:

         (a)      enforceability of that provision except to that extent; or

         (b)      the enforceability of any other provision of this deed.

13.      The Secured Obligations shall not include obligations arising under a
         Relevant Variation but the making of a Relevant Variation shall not
         discharge the Tenant's liability under this Authorized Guarantee
         Agreement.

14.      The liability of the Tenant under this Authorized Guarantee Agreement
         shall be the joint and several liability of all parties who have
         executed it as Tenant and all other parties who from time to time
         guarantee the Assignee's obligations to the Landlord and any demand for
         payment by the Landlord on any one or more of such persons jointly and
         severally liable shall be deemed to be a demand made on all such
         persons.

                                       9
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                                   SCHEDULE 3

                               (SURETY COVENANTS)

1.       In this schedule:

         "AUTHORIZED GUARANTEE AGREEMENT" means an authorized guarantee
         agreement within the meaning of section 16 Landlord and Tenant
         (Covenants) Act 1995;

         "RELEVANT VARIATION" means a relevant variation as defined in section
         18(4) Landlord and Tenant (Covenants) Act 1995;

         "SECURED OBLIGATIONS" means the obligation of the Assignee:

         (a)      to pay all sums from time to time due or expressed to be due
                  to the Landlord from the Assignee under the Lease;

         (b)      and to observe and perform:

                  (i)      the Tenant Covenants in the Lease; or

                  (ii)     the covenants in any Authorized Guarantee Agreement
                           which the Assignee gives to the Landlord consequent
                           upon an assignment of the Lease;

         "TERM" means the contractual term granted by the Lease together with
         the period of any holding over and any extension of the contractual
         term by statute or otherwise;

         "TERMINATING EVENT" means the disclaimer of the Lease (including
         without limitation the disclaimer by the Crown under section 656
         Companies Act 1985) following the liquidation or bankruptcy of the
         Assignee or the Assignee being wound up or ceasing to exist.

2.       The Surety unconditionally and irrevocably covenants with and
         guarantees to the Landlord that the Assignee will throughout the Term
         pay and discharge the Secured Obligations when they fall due or are
         expressed to fall due under the Lease for payment and discharge.

                                       10
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3.       The Surety shall upon being requested to do so by the Landlord enter
         into any deed of variation license consent or other document to which
         in each case the Assignee is a party and which is in each case
         supplemental to the Lease for the purpose of acknowledging that the
         Surety's liabilities under this guarantee extend to it but to the
         extent that the document effects a Relevant Variation paragraph 12
         shall apply.

4.       The guarantee and covenant in paragraph 2 shall impose on the Surety
         the same liability as if the Surety were the principal debtor in
         respect of the Assignee's obligations under the Lease and that
         liability shall continue notwithstanding (and will not be discharged in
         whole or in part or otherwise affected by):

         (a)      any forbearance by the Landlord to enforce against the
                  Assignee the Tenant Covenants or any covenants in any
                  Authorized Guarantee Agreement;

         (b)      the giving of time or other concessions or the taking or
                  holding of or varying realizing releasing or not enforcing any
                  other security for the liabilities of the Assignee;

         (c)      any legal limitation or incapacity relating to the Assignee;

         (d)      the invalidity or unenforceability of any of the obligations
                  of the Assignee;

         (e)      the Assignee ceasing to exist;

         (f)      the giving and subsequent withdrawal of any notice to
                  determine the Lease;

         (g)      any increase or reduction in the extent of the Premises or in
                  the rent payable under the Lease or any other variation to the
                  Lease;

         (h)      the disclaimer (including without limitation disclaimer by the
                  Crown under section 656 Companies Act 1985) of the Lease;

         (i)      any other act or omission of the Landlord or any other
                  circumstances which but for this paragraph 4 would discharge
                  the Surety

         and for the purposes of this paragraph 4 the Surety shall be deemed
         liable to continue to pay and discharge the Secured Obligations
         notwithstanding any of the above matters and

                                       11
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         any money expressed to be payable by the Assignee which may not be
         recoverable for any such reason shall be recoverable by the Landlord
         from the Surety as principal debtor.

5.       The Surety shall if required by the Landlord in writing within three
         months after a Terminating Event accept a lease of the. Premises for
         the residue of the contractual term unexpired at and with effect from
         the date of the Terminating Event at the same annual rent as reserved
         by the Lease (reviewable at the same times as the annual rent would
         have been reviewable under the Lease had there been no disclaimer) and
         subject to the same covenants and provisos (except that the Surety
         shall not be required to procure that any other person is made a party
         to that lease as a guarantor) and the Surety on execution of the new
         lease will pay the reserved rents for the period from the date of the
         disclaimer to the quarter day following the date of the new lease and
         the costs of and incidental to the new lease and will execute and
         deliver to the Landlord a counterpart.

6.       Where the Surety consists of more than one person and if the Landlord
         requires consequently more than one person to take a new lease those
         persons shall take that new lease as joint tenants.

7.       Until the Secured Obligations have been paid and discharged in full the
         Surety shall not without Consent exercise any rights:

         (a)      of subrogation or indemnity in respect of the Secured
                  Obligations;

         (b)      to take the benefit of share in or enforce any security or
                  other guarantee or indemnity for the Secured Obligations;

         (c)      to prove in the bankruptcy or liquidation of the Assignee in
                  competition with the Landlord.

8.       The Surety has not taken any security from the Assignee and will not do
         so.

9.       Any security taken by the Surety in breach of paragraphs 8 and 9 and
         all money at any time received in respect of it shall be held in trust
         for the Landlord as security for the liability of the Surety under this
         guarantee.

                                       12
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10.      Nothing in this guarantee shall operate so as to make the Surety liable
         for anything in respect of which the Assignee is released from
         liability by the provisions of the Landlord and Tenant (Covenants) Act
         1995.

11.      To the extent that this guarantee purports to impose on the Surety any
         liability for anything in respect of which the Assignee is released
         from liability by the provisions of the Landlord and Tenant (Covenants)
         Act 1995 the relevant provision of this guarantee shall to that extent
         only be void but that shall not affect:

         (a)      enforceability of that provision except to that extent; or

         (b)      the enforceability of any other provision of this guarantee.

12.      The Secured Obligations shall not include obligations arising under a
         Relevant Variation but the making of a Relevant Variation shall not
         discharge the Surety's liability under this guarantee.

13.      The liability of the Surety under this guarantee shall be the joint and
         several liability of all parties who have executed it as Surety and all
         other parties who from time to time guarantee the Assignee's
         obligations to the Landlord and any demand for payment by the Landlord
         on any one or more of such persons jointly and severally liable shall
         be deemed to be a demand made on all such persons.

The common seal of THE MASTER                                 )
FELLOWS AND SCHOLARS OF                                       )
TRINITY COLLEGE CAMBRIDGE was                                 )
affixed in the presence of                                    )

....................................................
Senior Bursar

....................................................
Junior Bursar

                                       13
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Signed as a deed by VIRCO U.K. LIMITED                        )
acting by [a director and its secretary] [two                 )
directors]                                                    )

.........................................................

Director

.........................................................
Director/Secretary

Signed as a deed by VISIBLE GENETICS                          )
UK LIMITED acting by [ a director and its                     )
secretary] [two directors]

.........................................................

Director

.........................................................

Director/Secretary

Signed as a deed by VISIBLE GENETICS                          )
INC. a corporation incorporated in the                        )
Province of Ontario by [                 ] and                )
[                        ] being persons who in               )
accordance with the laws of that territory are                )
acting under the authority of the corporation                 )

.........................................................

Chairman/President/Vice-President

.........................................................

Any officer or director

                                       14
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                                                                      SCHEDULE A

                             DATED JANUARY 19, 1999

                       THE MASTER FELLOWS AND SHCOLARS OF
                          TRINITYCOLLEGE CAMBRIDGE (1)

                             VIRCO U.K. LIMITED (2)

                                  VIRCO NV (3)

                       -----------------------------------

                                     LEASE

                                      -OF-

                                UNIT 184 PHASE 3
                             CAMBRIDGE SCIENCE PARK
                             MILTON ROAD, CAMBRIDGE

                       -----------------------------------

                       Term:                 15 years (plus broken quarter
                       Initial Rent:         (pound)286,000 per annum
                       Rent Review dates:    Every five years
                       Expiry Date:          March 24, 2014

                                 MILLS & REEVE
                                   Cambridge

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<Table>
<S>                                                                                                               <C>
Definitions and Interpretation.....................................................................................1

The demise habendum and reddendum..................................................................................4

Tenant's covenants.................................................................................................5

Landlord's covenants...............................................................................................5

Proviso agreement and declaration..................................................................................5
   Forfeiture......................................................................................................5
   Notices  .......................................................................................................6
   Rent abatement..................................................................................................6
   Part II Landlord and Tenant At 1954.............................................................................7
   Warranties......................................................................................................7
   Landlord's powers to deal with the Landlord's Neighboring Premises..............................................7
   Arbitration.....................................................................................................7
   Landlord's obligations..........................................................................................7
   Value added tax proviso.........................................................................................7
   Rights of access or entry.......................................................................................8

Surety's covenant..................................................................................................8

Proper law.........................................................................................................8

Schedule 1.........................................................................................................9
   The property and rights included in this demise.................................................................9
      Part 1 - The property........................................................................................9
      Part 2 - The rights..........................................................................................9

Right to services..................................................................................................9

Right of way.......................................................................................................9

Schedule 2.........................................................................................................10
   Part 1 - Exceptions and reservations in favor of the Landlord...................................................10

Right to services..................................................................................................10

Right to light and air.............................................................................................10

Right to support...................................................................................................10

Right to enter.....................................................................................................10

Right to enter to cultivate........................................................................................10
      Part 2 - Existing Encumbrances...............................................................................11

Schedule 3.........................................................................................................12
   The rents payable by the Tenant.................................................................................12
      Part 1 - Rents payable quarterly.............................................................................12

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Definitions........................................................................................................12

The rent review....................................................................................................13

Memorandum of agreement as to rent.................................................................................13

Where assessment of rent delayed...................................................................................13

Intermediate rent periods..........................................................................................13
      Part 2 - Rents payable upon demand...........................................................................14

Insurance Rent.....................................................................................................14

Rent for common parts..............................................................................................14

Service rent.......................................................................................................15

Interest on arrears................................................................................................15

Insurance excess...................................................................................................16

Schedule 4.........................................................................................................16
   Tenant's covenants..............................................................................................16

To pay rent........................................................................................................16

To Pay outgoings...................................................................................................16

To repaid and decorate.............................................................................................16

Not to make alterations............................................................................................17

To permit entry....................................................................................................18

To repair on notice................................................................................................18

To pay Landlord's costs............................................................................................19

As to use and safety...............................................................................................19

Not to sue for unlawful or illegal purposes or cause nuisance......................................................19

Not to reside......................................................................................................20

As to user.........................................................................................................20

To keep open and security..........................................................................................20

Displays and advertisements........................................................................................21

To keep clean......................................................................................................21

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To comply with Enactments and give notice..........................................................................21

To comply with the Planning Acts...................................................................................22

Insurance..........................................................................................................23

To Indemnify.......................................................................................................23

Dealings with the Premises.........................................................................................24

To give notice of assignment, devaluation, etc.....................................................................27

As to loss or acquisition of easements.............................................................................27

To produce plans/documents.........................................................................................27

Not to interfere with reserved rights..............................................................................27

To permit entry for reletting, etc.................................................................................28

To yield up........................................................................................................28

New surety.........................................................................................................28

As to value added tax..............................................................................................28

As to maintenance contracts........................................................................................29

Statutory acquisitions.............................................................................................29

Fire fighting appliances...........................................................................................29

Existing Encumbrances..............................................................................................29

Not to obstruct....................................................................................................29

To comply with regulations.........................................................................................30

As to water supply.................................................................................................30

To comply with Planning Agreements.................................................................................30

To pay cost of damage..............................................................................................31

Schedule 5.........................................................................................................31
   Landlord's covenants............................................................................................31

As to quiet enjoyment..............................................................................................31

To insure..........................................................................................................31

Schedule 6.........................................................................................................32

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   Surety's covenants and agreements...............................................................................32

Covenants by Surety................................................................................................32

Agreements by Surety...............................................................................................32

Schedule 7.........................................................................................................34
   Guarantee Agreement.............................................................................................34

Definitions and interpretation.....................................................................................34

Guarantee..........................................................................................................35

New lease..........................................................................................................35

Security taken by Guarantor........................................................................................36

Limitation on Guarantor's liability................................................................................36

Joint and several Guarantors.......................................................................................36
</Table>

<Page>

THIS LEASE is made on January 19, 1999 BETWEEN

(1)      (the "Landlord") THE MASTER FELLOWS AND SCHOLARS OF THE COLLEGE OF THE
         HOLY AND UNDIVIDED TRINITY WITHIN THE TOWN AND UNIVERSITY OF CAMBRIDGE
         OF KING HENRY THE EIGHTH'S FOUNDATION

(2)      (the "Tenant") VIRCO U.K. LIMITED (company number 03348588) whose
         registered office is c/o Cartwright & Company, 106 High Street,
         Stevenage, Herts. SG1 3DW

(3)      (the "Surety") VIRCO NV of Central Biological Laboratory, Inter City
         Business Park, Gen de Witterlaan L11B4, 2800 Mechelen, Belgium

WHEREAS, the Premises are held by the Landlord which is an exempt charity;

NOW THIS LEASE WITNESSETH as follows:

1.       DEFINITIONS AND INTERPRETATION

1.1      In this Lease unless the context otherwise requires:

         "Agreement" means an agreement dated November 25, 1998 and made between
         the parties hereto in like order.

         "Basic Rent" means (pound)286,000 per annum exclusive of value added
         tax (subject to increase as provided in part 1 of schedule 3).

         "Connected Person" means any person, firm or company which is connected
         with the Tenant for the purposes of section 839 Income and Corporation
         Taxes Act 1988.

         "Consent" means an approval permission authority license or other
         relevant form of approval given by the Landlord in writing.

         "Enactments" shall include all present and future Acts of Parliament
         (including but not limited to the Public Health Acts 1975 to 1961, the
         Factories Act 1961, the Offices Shops and Railway Premises Act 1963,
         the Fire Precautions Act 1971, the Defective Premises Act 1972, the
         Health and Safety at Work, etc. Act of 1974 and the Planning Acts) and
         all notices, directions, orders, regulations, bye-laws, rules and
         conditions under or in pursuant of or deriving effect therefrom and any
         reference herein to a specific enactment or enactments (whether by
         reference to its or their short title or otherwise) shall include a
         reference to any enactment amending or replacing the same and any
         future legislation of a like nature.

         "the Estate" shall mean Cambridge Science Park shown edged blue on the
         Plan situate adjoining Milton Road partly in the City of Cambridge and
         partly in the County of Cambridgeshire (together with any such further
         neighboring area in respect of which the Landlord or its lessees may
         from time to time or at any time during the Period of Limitation
         receive planning permission to develop for uses similar or ancillary to
         the use of the said area edged blue and which the Landlord during the
         Period of Limitation elects to include in Cambridge Science Park.

         "Existing Encumbrances" means the matters set out in part 2 of schedule
         2.

<Page>

         "Group Company" means any company of which the Tenant is a Subsidiary
         or which has the same Holding Company as the Tenant where Subsidiary
         and Holding Company have the meanings given to them by section 736
         Companies Act 1985.

         "Insured Risks" means at any particular time the risk of loss or damage
         by fire, storm, flood, explosion, riot, civil commotion, bursting or
         overflow of water tanks, boilers or apparatus impact by road vehicles
         or aircraft and other aerial devices or articles dropped therefrom and
         the risk of any other kind of loss or damage which the Landlord may
         from time to time in their discretion (to be exercised reasonably) deem
         it desirable to insure against and against which they shall at that
         particular time have a policy of insurance in effects subject to such
         exclusions and limitations as the insurers may impose and subject in
         every case to the availability of insurance cover against the risk and
         subject to the conditions on which and to the extent that insurance
         cover against each risk is generally available in relation to property
         such as the Premises.

         "Interest" shall mean interest at the yearly rate of four percent above
         the base rate published from time to time by Barclays Bank PLC or (in
         the event of base rate or Barclays Bank PLC ceasing to exist) such
         other equivalent rate of interest as the Landlord may from time to time
         in writing specify.

         "Landlord" includes the immediate reversioner to this Lease from time
         to time.

         "Landlord's Neighboring Premises" means any land or buildings now or
         hereafter during the Period of Limitation erected adjoining or
         neighboring the Premises (whether beside, under or over) which belong
         to the Landlord now or hereafter during the Period of Limitation.

         "Lettable Unit" shall mean a pat of the building on the Premises
         designed or intended for letting or exclusive occupation or capable of
         being used for separate self-contained occupation which odes not
         prejudice the use of the remainder of the building on the Premises for
         separate self-contained occupation.

         "Period of Limitation" means the period of eighty years commencing on
         the date hereof or such longer period as the law may permit (which
         period is hereby specified as the perpetuity period applicable to this
         Lease under the rule against perpetuities).

         "the Plan" shall mean the plan annexed hereto.

         "the Planning Acts" means the Town and Country Planning Acts of 1948 to
         1990, the "Planning Hazardous Substances Act 1990, the Planning Listed
         Buildings and Conservation Areas Act 1990, the Local Government
         Planning and Land Act 1980 and all notices, directions, orders,
         regulations, bye-laws, rules and conditions under or in pursuance of or
         deriving effect therefrom from time to time and any reference herein to
         these or any other Act or Acts shall include a reference to any
         statutory modification or re-enactment thereof for the time being in
         force and any future legislation of a like nature.

         "the Planning Agreements" shall mean:

         (a)      an agreement dated 8th November 1971 made pursuant to section
                  37 of the Town and Country Planning Act 1962 between the
                  County Council of the Administrative County of Cambridgeshire
                  and Isle of Ely(1) and the Landlord(2); and

                                       2
<Page>

         (b)      an agreement dated 19th August 1975 made pursuant to section
                  52 of the Town and Country Planning Act 1971 between the same
                  parties and in the same order as the section 37 agreement; and

         (c)      an agreement dated 2nd February 1982 made pursuant to section
                  52 of the Town and Country Planning Act 1971 between South
                  Cambridgeshire District Council(1) and the Landlord(2); and

         (d)      an agreement dated 26th June 1984 made pursuant to section 52
                  of the Town and Country Planning Act 1971 between South
                  Cambridgeshire District Council(1) and the Landlord(2); and

         (e)      an agreement dated 2nd June 1988 made pursuant to section 52
                  of the Town and Country Planning Act 1971 between South
                  Cambridgeshire District Council(1) and the Landlord(2).

         "the Premises" means the property hereby demised as described in part 1
         of schedule 1 including all Service Channels in, on or under such
         property and fixtures and fittings (other than trade or tenant's
         fixtures and fittings) therein together with all additions, alterations
         and improvements to such property.

         "Schedule of Condition" means a schedule of conditions made between the
         Landlord(1) and Cantab Pharmaceuticals Research Limited (2) in relation
         to the Premises dated 15th August 1997, a copy of which is annexed
         hereto.

         "Service Channels" means all such flues, sewers, drains, ditches,
         pipes, wires, watercourses, cables, channels, gutters, ducts and other
         conductors of services and plumbing and ventilating equipment and
         motors appurtenant thereto as are now existing or which may be
         constructed or laid during the Term and within the Period of Limitation
         as herein defined.

         "the Surety" shall include the Surety's successors whether by
         substitution or otherwise including personal representatives.

         "Surveyor" means the surveyors, consulting engineers and agents for the
         time being of the Landlord.

         "the Tenant" shall include the person in whom the Term is presently
         vested.

         "the Term" means the total period of demise hereby granted and (other
         than in the case of the references to the term in the definition of
         "Relevant Date" and in the habendum of this Lease) includes any period
         of holding over or any extension or continuance of the contractual term
         by Enactment or otherwise.

1.2      Words importing the masculine gender only include the feminine gender
         and vice versa and include any body of persons, corporate or
         unincorporated words importing the singular number only include the
         plural number and vice versa and the word "person" shall include any
         body of persons corporate or unincorporated and all covenants by any
         party hereto shall be deemed to be joint and several covenants where
         that party is more than one person and any covenant by the Tenant to do
         or not to do or omit to do an act or thing shall be deemed to include
         an obligation

                                       3
<Page>

         not to permit or suffer such act or thing to be done or omitted by any
         person under the Tenant's control.

1.3      (a)      References to numbered clauses and schedules are references to
                  the relevant clause or schedules to this Lease and references
                  to numbered paragraphs are references to the numbered
                  paragraphs of that schedule or the part of the schedule in
                  which they appear.

         (b)      The clause, paragraph and schedule headings do not form part
                  of this Lease and are not to be taken into account when
                  construing it.

1.4      This instrument:

         (a)      is executed as a deed and by its execution the parties
                  authorize their solicitors to deliver it for them when it is
                  dated; and

         (b)      was delivered when it was dated.

1.5      This Lease is a new tenancy for the purposes of the Landlord and Tenant
         (Covenants) Act 1995.

2.        THE DEMISE HABENDUM AND REDDENDUM

2.1      In consideration of the several rents and covenants on the part of the
         Tenant and the Surety herein respectively reserved and contained the
         Landlord HEREBY DEMISES unto the Tenant ALL THOSE premises more
         particularly described in part 1 of schedule 1 TOGETHER WITH (in common
         with the Landlord, their lessees and assigns and all other persons from
         time to time having the like rights) the rights set out in part 2 of
         schedule 1 EXCEPT AND RESERVING UNTO THE LANDLORD and its successors in
         title assigns and lessees and all persons from time to time authorized
         by it the interests, rights, reservations and exceptions more
         particularly set out in part 1 of schedule 2 TO HOLD the Premises unto
         the Tenant SUBJECT to any or all easements and other rights (if any)
         now subsisting over or which may affect the same (including any such as
         are more particularly set out in part 2 of schedule 2) from January 19,
         1999 to March 25, 1999 and thereafter for the term of 15 years but
         determinable nevertheless as hereinafter provided YIELDING AND PAYING
         THEREFOR unto the Landlord during the Term by way of rent:

         (a)      from the date of this Lease until March 18, 1999 a peppercorn
                  if demanded and thereafter;

         (b)      yearly and proportionately for any fraction of a year the
                  Basic Rent the first such payment or a proportionate part
                  thereof in respect of the period from March19, 1999 to March
                  25, 1999 to be made on the date hereof and thereafter such
                  rents to be paid by equal quarterly installments in advance on
                  the four usual quarter days in every year;

         (c)      on demand the rents specified in part 2 of schedule 3;

         (d)      any other sums which may become due from the Tenant to the
                  Landlord under the provisions of this Lease;

         all such payments to be made without any deductions.

                                       4
<Page>

3.       TENANT'S COVENANTS

3.1      The Tenant HEREBY COVENANTS with the Landlord to observe and perform
         all the covenants and provisions on the Tenant's part set out in
         schedule 4.

4.       LANDLORD'S COVENANTS

4.1      The Landlord HEREBY COVENANTS with the Tenant whilst the reversion to
         this Lease is vested in the Landlord to observe and perform all the
         covenants and provisions on the Landlord's part set out in schedule 5
         but not so as to impose any personal liability upon the Landlord except
         for the Landlord's own acts and defaults.

5.       PROVISO AGREEMENT AND DECLARATION

5.1      FORFEITURE

         Without prejudice to any other rights of the Landlord if:

         (a)      the whole or part of the rent remains unpaid twenty-one days
                  after becoming due (whether demanded or not); or

         (b)      any of the Tenant's covenants in this Lease are not performed
                  or observed; or

         (c)      the Tenant or any guarantor or surety of the Tenant's
                  obligations under this Lease (including the Surety):

                  (i)      proposes or enters into any composition or
                           arrangement with its creditors generally or any class
                           of its creditors; or

                  (ii)     is the subject of any judgment or order made against
                           it which is not complied with within seven days or is
                           the subject of any execution , distress,
                           sequestration or other process leveled upon or
                           enforced against any pat of its undertaking property,
                           assets or revenue; or

                  (iii)    being a company:

                           (A)      is the subject of a petition presented or an
                                    order made or a resolution passed or
                                    analogous proceedings taken for appointing
                                    an administrator of or winding up such
                                    company (save for the purpose of and
                                    followed within four months by an
                                    amalgamation or reconstruction which does
                                    not involve or arise out of insolvency or
                                    given rise to a reduction in capital and
                                    which is on terms previously approved by
                                    Landlord); or

                           (B)      an encumbrancer takes possession or
                                    exercises or attempts to exercise any power
                                    of sale or a receiver or administrative
                                    receiver is appointed of the whole or any
                                    part of the undertaking property, assets or
                                    revenues of such company; or

                           (C)      stops payment or agrees to declare a
                                    moratorium or becomes or is deemed to be
                                    insolvent or unable to pay its debts within
                                    the meaning of

                                       5
<Page>

                                    section 123 Insolvency Act 1986; or

                           (D)      without prior consent ceases or threatens to
                                    cease to carry on its business in the normal
                                    course from the Premises; or

                  (iv)     being an individual:

                           (A)      is the subject of a bankruptcy petition o
                                    bankruptcy order; or

                           (B)      is the subject of an application or order or
                                    appointment under section 253 or section 273
                                    or section 286 Insolvency Act 1986; or

                           (C)      is unable to pay or has no reasonable
                                    prospect of being able to pay his debts
                                    within the meaning of sections 267 and 268
                                    Insolvency Act 1986.

         (d)      any event occurs or proceedings are taken with respect to the
                  Tenant or any guarantor of the Tenant's obligations under this
                  Lease (including the Surety) in any jurisdiction to which it
                  is subject which has an effect equivalent or similar to any of
                  the events mentioned in clause 5.1(c);

         then and in any of such cases the Landlord may at any time (and
         notwithstanding the waiver of any previous right of re-entry) re-enter
         the Premises whereupon this Lease shall absolutely determine but
         without prejudice to any right of action of the Landlord in respect of
         any previous breach by the Tenant of this Lease.

5.2      NOTICES.

         Any notice under this Lease shall be in writing and any notice

         (a)      to the Tenant or the Surety shall be deemed to be sufficiently
                  served if:

                  (i)      left addressed to the Tenant on the Premises; or

                  (ii)     sent to the Tenant or the Surety by post at the last
                           known address or (if a Company) registered office of
                           the Tenant or the Surety; and

         (b)      to the Landlord shall be deemed to be sufficiently served if:

                  (i)      sent to the Landlord by post at the last known
                           address or (if a Company) registered office of the
                           Landlord; or

                  (ii)     whilst the reversion immediately expectant on the
                           determination of the Term is vested in the original
                           Landlord (as named herein) addressed to the
                           Landlord's Senior Bursar and delivered to him
                           personally or sent to him by post.

5.3      RENT ABATEMENT.

         If the Premises are destroyed or rendered wholly or partly unfit for
         use by any of the Insured Risks then (provided the destruction or
         damage is not caused by the act or default of the Tenant or any person
         on the Premises with the Tenant's express or implied authority or any
         predecessor in

                                       6
<Page>

         title of any of them so that the insurance policy effected by the
         Landlord is vitiated or payment of any part of the policy money is
         withheld), the whole or a fair proportion of the Basic Rent and (in the
         case of the premises being wholly unfit for use), the rents specified
         in paragraph 3 of part 2 of schedule 3 according to the extent of the
         damage sustained shall cease to be payable for the shorter of a period
         of three years or the period during which the Premises remain unfit for
         use and any dispute with reference to this proviso shall be referred to
         arbitration in accordance with the Arbitration Act 1996.

5.4      PART II LANDLORD AND TENANT AT 1954

         If this Lease is within Part II of the Landlord and Tenant Act 1954
         then subject to the provisions of subsection (2) of section 38 of that
         Act neither the Tenant nor any assignee or undertenant of the Term or
         of the Premises shall be entitled on quitting the Premises to any
         compensation under section 37 of that Act.

5.5      WARRANTIES

         The Tenant hereby acknowledges and admits that the Landlord has not
         given or made any representation or warranty that the use of the
         Premises herein authorized is or will remain a permitted use under the
         Planning Acts.

5.6      LANDLORD'S POWERS TO DEAL WITH THE LANDLORD'S NEIGHBORING PREMISES

         Notwithstanding anything herein contained, the Landlord and all persons
         authorized by the Landlord shall have power without obtaining any
         consent from or making any compensation to he Tenant to deal as the
         Landlord may think fit with the Estate and the Landlord's Neighboring
         Premises and to erect thereon or on any part thereof any building
         whatsoever and to make any repairs, alterations or additions and carry
         out any demolition ore rebuilding whatsoever (whether or not affecting
         the light or air to the Premises) which the Landlord may think fit or
         desire to do.

5.7      ARBITRATION

         (Unless the Lease otherwise provides) if any dispute or difference
         shall arise between the parties hereto touching these presents or the
         rights or obligations of the parties hereunder, such dispute and
         difference shall in the event of this Lease expressly so providing and
         otherwise may by agreement between the parties be referred to a single
         arbitrator to be agreed upon the parties hereto or in default of
         agreement to be nominated by the President or Vice President for the
         time being of the Royal Institution of Chartered Surveyors on the
         application of any party in accordance with and subject to the
         provisions of the Arbitration Act 1996.

5.8      LANDLORD'S OBLIGATIONS

         Nothing herein contained shall render the Landlord liable (whether by
         implication of law or otherwise howsoever) to do any act or thing which
         the Landlord has not expressly covenanted to carry out, provide or do
         in schedule 5.

5.9      VALUE ADDED TAX PROVISO

         Any consideration on supplies made by the Landlord under this Lease is
         exclusive of value added tax (or substituted tax).

                                       7
<Page>

5.10     RIGHTS OF ACCESS OR ENTRY

         The exercise of all rights of entry onto the Premises by the Landlord
         or those authorized by the Landlord shall be subject to the following
         conditions:

         (a)      reasonable prior notice must be given save in emergency;

         (b)      the persons so entering must cause as little disturbance and
                  inconvenience as practicable to the Tenant;

         (c)      the persons so entering must comply with all reasonable
                  requirements stipulated by the Tenant having particular regard
                  to the Tenant's use and business carried on at the Premises;
                  and

         (d)      must make good any damage caused to the reasonable
                  satisfaction of the Tenant as speedily as practicable.

6.       SURETY'S COVENANT

6.1      The Surety (in consideration of this demise having been made at the
         Surety's request) hereby covenants with the Landlord (as principal and
         not merely as guarantor) that the Surety will observe and perform the
         covenants, agreements and declarations set out in schedule 6.

7.       PROPER LAW

7.1      This Lease shall be governed by English Law and the Tenant and the
         Surety irrevocably submit to the non-exclusive jurisdiction of the
         English Courts.

7.2      The Surety irrevocably authorizes and appoints Hewitson Becke & Shaw of
         42 Newmarket Road, Cambridge (or such other firm of solicitors resident
         in England and Wales as it may from time to time by written notice to
         the Landlord substitute) to accept service of all legal process arising
         out of or connected with this Lease and service on Hewitson Beck & Shaw
         (or such substitute) shall be deemed to be service on the Surety.

                                       8
<Page>

                                   SCHEDULE 1

                 THE PROPERTY AND RIGHTS INCLUDED IN THIS DEMISE

                             PART 1 - THE PROPERTY.

ALL THAT piece or parcel of land forming part of Cambridge Science Park
containing 1,897.82 square meters more or less as the same is more particularly
delineated on the Plan and thereon edged red together with the care parking
spaces laid out thereon and the buildings standing thereon or on some part
thereof.

                               PART 2 - THE RIGHTS

1.       RIGHT TO SERVICES

1.1      At all times hereafter, the right of passage and running of appropriate
         services (including, but not limited to, gas, water, electricity,
         telecommunications, surface water and foul water) through the Services
         Channels now, under or across the Estate or the Landlord's Neighboring
         Premises, and to make connection with such Service Channels, or any of
         them for the purpose of exercising the said rights and all such rights
         of access for the Tenant and the Tenant's lessees and employees as may
         from time to time be reasonably required for the purpose of laying,
         inspecting, cleansing, repairing, maintaining, renewing or adding to
         such Service Channels or any of them, but the enjoyment of the
         aforesaid rights shall be subject to the Tenant or other person or
         person's exercising the same or having the benefit thereof being liable
         to make good all damage to the Estate or the Landlord's Neighboring
         Premises thereby occasioned with reasonable dispatch.

2.       RIGHT OF WAY

2.1      The right of way for all purposes reasonably necessary for the use and
         enjoyment of the Premises for the purposes herein authorized, but not
         further or otherwise, with or without vehicles over the roadways
         colored brown on the Plan.

                                       9
<Page>

                                   SCHEDULE 2

          PART 1 - EXCEPTIONS AND RESERVATIONS IN FAVOR OF THE LANDLORD

1.       RIGHT TO SERVICES

1.1      At all times hereafter the right of passage and running of appropriate
         services through the Service Channels forming part of the Premises and
         to make connection with such Service Channels or any of them for the
         purpose of exercising the said rights and all such rights of access for
         the Landlord, the Surveyor and the Landlord's lessees and employees,
         and all persons from time to time authorized by the Landlord as may
         from time to time be reasonably required for the purpose of laying,
         cleanings, repairing, maintaining, renewing or adding to such Service
         Channels or any of them, but the enjoyment of the aforesaid rights
         shall be subject to the Landlord or other person or person's exercising
         the same or having the benefit thereof being liable to make good all
         damage to the Premises thereby occasioned with reasonable dispatch.

2.       RIGHT TO LIGHT AND AIR

2.1      Tenant shall not be entitled to any right of access of light or air to
         the Premises which would restrict or interfere with the user of the
         Estate or any of the Estate or the Landlord's Neighboring Premises for
         building or otherwise howsoever.

3.       RIGHT TO SUPPORT

3.1      The right to support and shelter and all other rights and privileges in
         the nature of easements and quasi-easements now or thereafter belonging
         to or enjoyed by the Estate or the Landlord's Neighboring Premises.

4.       RIGHT TO ENTER

4.1      At all times during the Term the right with or without the Surveyor,
         the Landlord's employees and workmen, and any persons authorized by
         them to enter the Premises for the purpose of doing any act, matter or
         thing in respect of which the Landlord is permitted entry to the
         Premises under Schedule 4, upon the terms therein stated, and for all
         such other requirements of the Landlord, as in the opinion of the
         Landlord, shall be reasonably necessary such reservation to be in
         addition to, and not in substitution for or limitation of, any other
         rights exceptions or reservations to which the Landlord is entitled
         hereunder.

5.       RIGHT TO ENTER TO CULTIVATE

5.1      A right of access at all times together with the Surveyor, the
         Landlord's employees, servants, workmen and all persons authorized by
         the Landlord, to all such parts of the Premises as shall from time to
         time be unbuilt upon for the purpose of cultivating, planting,
         maintaining and landscaping the same n such manner as shall, in the
         discretion (to be exercised reasonably) of the Landlord, from time to
         time, seem appropriate.

                                       10
<Page>

                         Part 2 - Existing Encumbrances

(1)      The easements, rights, covenants and other matters contained or
         referred to in the Planning Agreements.

(2)      All other easements, rights, covenants and other matters affecting the
         Premises.

                                       11
<Page>

                                   SCHEDULE 3

                         THE RENTS PAYABLE BY THE TENANT

                        PART 1 - RENTS PAYABLE QUARTERLY

1.       DEFINITIONS

1.1      In this part of this schedule the following words shall have the
         followings meanings:

         (a)      the "Relevant Date" shall mean March 25, 2004 and every fifth
                  anniversary of that date.

         (b)      "the Full Open Market Yearly Rent" shall mean the best yearly
                  rent for which the whole of the Premises might reasonably be
                  expected to let in the open market by a willing landlord to a
                  willing tenant (after the expiry of any rentfree period or
                  period of concessionary rent which may then be usual on the
                  grant of a new lease to enable the tenant to fit out the
                  Premises) on the assumption (if not fact) that:

                  (i)      the Premises are fully repaired, maintained and
                           decorated in accordance with the provisions of this
                           Lease and are vacant and fit for immediate occupation
                           and use (and all statutory requirements are complied
                           with and all requisite consents and permissions
                           therefore have been obtained) and that no work has
                           been carried out thereon which would diminish the
                           rental value of the Premises and that in case the
                           Premises had been damaged or destroyed by any of the
                           Insured Risk they had been fully restored in
                           accordance with the terms hereof; and

                  (ii)     the lease of the Premises shall be for a term of
                           years certain for a term equal to the longer of 15
                           years or the unexpired residue of the Term (taking
                           into account the tenant's right to apply to the court
                           for the grant of a new tenancy under Part II Landlord
                           and Tenant Act 1954) without payment of a fine or
                           premium or any other form of inducement being offered
                           or received and upon the same terms, provisions,
                           agreements and declarations (other than as to the
                           amount of rent and any rent-free period hereunder but
                           including like provisions for the review of rent to
                           those herein contained) and covenants on the part of
                           the Landlord and the Tenant as those herein
                           contained.

         there being disregarded:

                           (A)      any effect on rent of the fact that the
                                    Tenant or any undertenant or their
                                    respective predecessors in title have been
                                    in occupation of the Premises; and

                           (B)      any good will attached to the Premises by
                                    reason of trade or business carried on
                                    therein by the Tenant or any undertenant or
                                    their respective predecessors in title; and

                           (C)      any effect on rent of any improvements to
                                    the Premises (being an improvement effected
                                    or completed within a period of twenty-one
                                    years immediately preceding the Relevant
                                    Date on which the rent is being reviewed)
                                    carried out by the Tenant or any undertenant
                                    or their respective predecessors in title in
                                    that capacity with the prior consent in
                                    writing of the Landlord other than an
                                    improvement effected at the

                                       12
<Page>

                                    expense of the Landlord or in pursuance of
                                    an obligation to the Landlord whether under
                                    this Lease or otherwise PROVIDED THAT the
                                    Landlord or their predecessors in title have
                                    not had or been entitled to vacant
                                    possession of the Premises since the
                                    improvement was carried out save in respect
                                    of improvements carried out by predecessors
                                    occupying the Premises by virtue of a lease
                                    dated December 4, 1985; and

                           (D)      as far as may be permitted by law all
                                    restrictions whatsoever relating to rent
                                    contained in any Enactments (whether
                                    relating to the method of determination of
                                    rent otherwise).

2.       THE RENT REVIEW

2.1      At each Relevant Date the rent shall be reviewed in accordance with the
         provisions of this part of this schedule and from and after each
         Relevant Date the Tenant shall pay to the Landlord by way of rent in
         respect of the Premises whichever is the greater of:

         (a)      the maximum yearly rent payable hereunder immediately prior to
                  that Relevant Date; and

         (b)      the Full Open Market Yearly Rent for the Premises at that
                  Relevant Date such Full Open Market Yearly Rent to be
                  determined (in default of agreement between the Landlord and
                  the Tenant) by arbitration in accordance with clause 5.7 of
                  this Lease on the application of the Landlord or the Tenant
                  made at any time before or after that Relevant Date.

3.       MEMORANDUM OF AGREEMENT AS TO RENT

3.1      As soon as practicable after the agreement or determination of the
         amount of the Full Open Market Yearly Rent a memorandum recording the
         same shall be endorsed on or otherwise annexed to the Original and
         Counterpart of this Lease.

4.       WHERE ASSESSMENT OF RENT DELAYED

4.1      Should the rent to be agreed or determined in accordance with paragraph
         2 (herein in this paragraph 4.1 called "the New Rent") not have been
         agreed or determined as aforesaid by an Relevant Date then the Tenant
         shall on and after that day pay rent at the rate equal to the rent
         payable immediately before that Relevant Date (herein in this paragraph
         4.1 called "the Old Rent") and so soon as the New Rent shall have been
         agreed or determined as aforesaid, the Tenant shall forthwith pay to
         the Landlord by way of additional rent the difference between the New
         Rent and the Old Rent for each quarter for which the New Rent should
         have been paid together with interest at 4% below the rate specified in
         the definition of Interest thereon from the date upon which the same
         became payable until the date of payment.

5.       INTERMEDIATE RENT PERIODS

5.1      If at any Relevant Date the Landlord shall be obliged legally or
         otherwise to comply with any Enactments dealing with the control or
         rent and which shall restrict or modify the Landlord's right to review
         the Old Rent or to receive the New Rent (which expressions are defined
         in paragraph 4.1) in accordance with the terms hereof then the Landlord
         shall as often as such Enactment is removed, relaxed or modified be
         entitled to give not less than one month's notice in writing (herein
         called "an Intermediate Rent Review Notice") to the Tenant expiring not
         earlier

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         than the date of each such removal, relaxation or modification to
         introduce an intermediate review of rent additional to the reviews of
         rent specified in this part of this schedule and the expiry of the
         Intermediate Rent Review Notice shall be deemed to be the Relevant Date
         for the purpose of paragraphs 2, 3 and 4 PROVIDED THAT nothing herein
         contained shall vary or modify any subsequent Relevant Date as defined
         in paragraph 1.1(a).

                       PART 2 - RENTS PAYABLE UPON DEMAND

1.       INSURANCE RENT

1.1      A sum or sums of money equal to the amount or amounts which the
         Landlord shall form time to time incur in or in respect of effecting or
         maintaining the insurance t reasonably competitive rates of the
         Premises in accordance with the Landlord's covenant contained in
         paragraph 2 of schedule 5 and all processional fees which the Landlord
         may from time to time incur in connection with the valuation of the
         Premises for insurance purposes.

2.       RENT FOR COMMON PARTS

2.1      A proper proportion attributable to the Premises of the cost and
         expense reasonably incurred of making repairing, maintaining. renewing,
         rebuilding, cleansing and operating all ways, roads, payments, Service
         Channels, yards, bicycle stores, vehicle parks and gardens, fences,
         party walls and structures and any installations, equipment, fittings,
         fixtures, easements, appurtenances or conveniences which shall belong
         to or be used by the Premises in common with the Estate and the
         Landlord's Neighboring Premises and with any other premises adjoining
         or neighboring or over or under the Premises (or any of them) including
         architect's and surveyor's fees properly incurred in connection with
         such works (such proper proportion to be certified by the Surveyor
         whose certificate shall be final and binding on the Tenant).

3.       SERVICE RENT

3.1      A service rent in respect of:

         (a)      the maintenance, repair, cultivation and management of the
                  Estate including all roads, ways and paths, service channels,
                  amenity grounds and cultivated areas (whether situate thereon
                  or otherwise serving the same); and

         (b)      all such other matters whatsoever which in the opinion of the
                  Surveyor shall be necessary to maintain high standards for a
                  development of such a character including (without prejudice
                  to the generality hereof) a national figure as certified by
                  the Surveyor equivalent to the reasonable market rental for
                  the time being of any premises provided by the Landlord on the
                  Estate being used or occupied (whether with or without rental)
                  to enable the Landlord, the Surveyor and their respective
                  servants or employees to implement and carry out such
                  maintenance repairs, cultivation and management of the Estate
                  and all other matters as aforesaid but less any rental thereof
                  received by the Landlord;

         such service rent to be in the reasonable opinion of the Surveyor such
         as shall be just and equitable in all the circumstances PROVIDED ALWAYS
         THAT such service rent shall not include any sum in respect of the cost
         of the initial laying out or construction of the matters

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         referred to in paragraphs 3.1(a) and 3.1(b) above or any work or costs
         arising out of or in connection with such initial construction.

4.       INTEREST ON ARREARS

4.1      Interest on any monies payable by the Tenant to the Landlord under any
         covenant or provision of this Lease which remain unpaid for seven days
         shall be payable by the Tenant such Interest to be calculated from the
         date when such monies were due until the date when such monies are
         received by the Landlord PROVIDED THAT the provisions of this paragraph
         4.1 shall not prejudice any rights or remedies of the Landlord in
         respect of any breach of any of the covenants on the part of the Tenant
         herein contained.

5.       INSURANCE EXCESS

5.1      If a claim arising under any policy of insurance effected by the
         Landlord upon the Premises shall be subject to any insurance excess
         notified to the Tenant in writing at the time of renewal of the policy
         the Tenant shall reimburse or otherwise indemnify the Landlord against
         the amount of such excess.

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                                   SCHEDULE 4

                               TENANT'S COVENANTS

1.       TO PAY RENT

1.1      To pay to the Landlord the rents hereby reserved (including but not
         limited to the rent as reviewed from time to time in accordance with
         part 1 of schedule 3) at the times and in the manner herein appointed
         for payment thereof without any deduction set off or (except as
         provided by clause 5.3 of this Lease) abatement whatsoever and to pay
         those rents reserved in part 1 of schedule 3 by standing order to the
         bankers of the Landlord or as it shall direct.

2.       TO PAY OUTGOINGS

2.1      To pay and discharge all rates taxes duties assessments charges
         impositions and outgoings whatsoever (whether parliamentary local
         public utility or of any other description and whether or not of a
         recurrent name) now or at any time during the Term taxed, assessed,
         charged, imposed upon or payable in respect of the Premises or any part
         thereof a by the Landlord or Tenet a owner or occupier m respect
         thereof, except any payable in respect of dealings with the reversion
         or on rents received (other than Value Added Tax).

3.       TO REPAID AND DECORATE

3.1      Well and substantially to cleanse, maintain and repair the Premises and
         every part thereof (including all additions the and all fixtures,
         fittings, plant and machinery therein and improvements thereto and the
         Service Channels forming part of the Premises and the boundary
         structures (if any) of the Premises) and drains connecting to the
         Premises to and as far as the common drain.

3.2      As and when reasonably required by the Landlord to clean (and to
         repaint where appropriate) all external surfaces of the buildings from
         time to time comprised in the Premises.

3.3      Without prejudice to the generality of paragraphs 3.1 and 3.2, to paint
         (or otherwise decorate) with two coats of paint (or other suitable
         materials) all such parts of the Premises as have been usually painted
         (or otherwise decorated) such painting (or other decoration) to be:

         (a)      as to the outside in every third year of the Term and with
                  such colors as have been approved by the Surveyor; and

         (b)      as to the inside, in every fifth year of the Term; and

         (c)      as to both the outside and the inside, in the last yea of the
                  Term (however determined) and otherwise as the Landlord may
                  reasonably so require.

3.4      Not to remove or damage any of the Landlords fixtures and fittings in
         the Promises and to replace with similar articles of at least equal
         quality such fixtures and fittings as may be lost or worn out or become
         unfit for use;

         PROVIDED THAT all work referred to it this paragraph 3 shall be done in
         a good and workmanlike master and to the reasonable satisfaction of the
         Surveyor AND PROVIDED THAT

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<Page>

         nothing in this paragraph 3 shall oblige the Tenant to put the Premises
         into a better state of repair than they are at the commencement of this
         Lease as evidenced by the Schedule of Condition, AND PROVIDED FURTHER
         THAT the liability of the Tenant under this paragraph shall not extend
         to damage caused by any of the Insured Risks unless the insurance shall
         have been vitiated or insurance monks rendered irrecoverable in whole
         or in part by any sot omission neglect or default of the Tenant any
         undertenant or their respective employees, servants, agents independent
         contractors, customers, visitors, licensees, invitees or my other
         person under the Tenant's or the undertenant's control.

3.5      The Tenant shall give written notice to the Landlord immediately on
         becoming aware of:

         (a)      any damage to or destruction of the Premises; or

         (b)      any defect or want or repair in the Premises (including,
                  without limitation, any relevant defect within the meaning of
                  section 4 Defective Premises Act 1972) which the Landlord is
                  liable to repair under this Lease or which the Landlord is or
                  may be liable to repair under common law or by virtue of any
                  Enactment.

4.       NOT TO MAKE ALTERATIONS

4.1      Not to make any alteration or addition to the Premises which would
         reduce or otherwise adversely affect the value of the Landlord's
         reversionary interest in the Premises or the prospects of re-letting or
         the letting or re-letting value thereof (as to which the decision of do
         Surveyor shall be conclusive).

4.2      Without prejudice to the prohibition in paragraph 4.1, not to demolish
         the existing buildings comprising the Premises or construct new
         buildings or make any alteration, addition or improvement so the
         Premises whether structural or otherwise except as expressly permitted
         under paragraph 4.3.

4.3      The Tent may carry out alterations, additions or improvements to the
         Premises which do not affect my part of the exterior or structure of
         the Premises where:

         (a)      the Tenant has submitted to the landlord detailed plans and
                  specifications showing the works; and

         (b)      the Tenant has given to the landlord such covenants relating
                  to the carrying out of the works as the Landlord may
                  reasonably requite (including (but not limited to)
                  reinstatement of the Premises at the expiration or sooner
                  determination of the Term);

         (c)      the Tenant has, if so required by the Landlord, provided the
                  Landlord with suitable security which will allow the Landlord
                  to carry out and complete the works if the Tempt falls to do
                  so; and

         (d)      the Tenant has obtained Consent to the works (which shall not
                  be unreasonably withheld or delayed).

         PROVIDED THAT the Tenant shell indemnity the Landlord against any
         liability for any tax assessed upon the Landlord by reason of any such
         alteration, creation or addition to the Premises carried out by or on
         behalf of the Tenant.

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<Page>

4.4      Without prejudice to any other rights of the landlord immediately upon
         the Landlord by notice in waiting to that effect requiring them so to
         do to remove all additional buildings, erections, works, alterations or
         additions whatsoever to the Premises for which Consent has not first
         been obtained pursuant to the provisions of paragraph 4.3 (herein
         called the "Unauthorized Works"), and to make good and restore the
         Premises to the state and condition thereof before the Unauthorized
         Works were carried out and if the Tenant shall neglect to do so for
         seven days after such notice, then it shall be lawful for the Surveyor
         , the Landlord and the Landlord's servants, contractors, agents and
         workmen to enter upon the Premises and to remove the Unauthorized Works
         and to make good and restore the same to the state and condition
         existing before the carrying out of the Unauthorized Work, and all
         expenses of so doing shall be repaid to the Landlord by the Tenant
         within seven days of a written demand in that behalf.

5.       TO PERMIT ENTRY

5.1      To permit the Landlord, the Surveyor and their respective workmen and
         persons duly authorized by them, respectively, on reasonable notice
         (except in emergency) at reasonable hours to enter the Premises for the
         purposes of:

         (a)      viewing the same;

         (b)      taking Inventories of the fixtures, fittings, appliances and
                  equipment to be yielded up at the expiration or sooner
                  determination of the Term;

         (c)      inspecting for defects in and recording the condition of the
                  Premises or any other breaches of covenant on the part of the
                  Tenant;

         (d)      inspecting, cleansing, maintaining, repairing, altering,
                  renewing or adding to the Estate or the Landlord's Neighboring
                  Premises as any other premises adjoining the Premises (whether
                  beside, under or over) or any Service Channels not comprised
                  within the Promises;

         (e)      performing any covenant complying with any condition or
                  pursuant to any reservation contained in this Lease;

         or any other reasonable purpose connected with the management of the
         Premises or the Estate or the Landlords Neighboring Premises or the
         Landlord's interest therein PROVIDED THAT the Landlord shall make good
         all damage to the Premises caused by such entry as soon as practicable
         without the payment of compensation to the Tenant.

6.       TO REPAIR ON NOTICE.

6.1      To make good to the reasonable satisfaction of the Surveyor within two
         months or sooner if requisite (or immediately in case of emergency) any
         defect in the repair or decoration of the Premises for which the Tensed
         is liable hereunder or any other want of compliance with any of the
         obligations on the part of the Tenant under this Lease of which the
         Landlord or the Surveyor has given notice in writing to the Tenant or
         left notice in writing as the Premise.

6.2      If the Tenant shall not comply with paragraph 6.1, the Tenant shall
         permit the Landlord, the Surveyor and their respective workmen (without
         prejudice to any other remedy of the Landlord) to enter the Premises
         and make good such defect, breach or want of compliance as aforesaid

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<Page>

         without the payment of any compensation to the Tenant and all expenses
         of so doing (including legal costs and Surveyor's fees properly
         incurred) shall be paid by the Tenant to the Landlord on demand and
         shall be recoverable as rent in arrears.

7.       TO PAY LANDLORD'S COSTS

7.1      To pay the Landlord's costs and expenses (including legal costs and
         Surveyor's and other professional fees) such costs and expenses to be
         reasonable and proper:

         (a)      In or in contemplation of any proceedings relating to the
                  Premises under sections 146 and/or 147 of the Law of Property
                  Act 1925 or the preparation and service of notice thereunder
                  (whether or not any right of re-entry or forfeiture has been
                  waived by the Landlord or a notice served under section 146 is
                  complied with by the Tenant or the Tenant has been relieved
                  under to provisions of the said Act and notwithstanding that
                  forfeiture is avoided otherwise than by relief granted by the
                  Court).

         (b)      In the preparation and service of any Schedule of Dilapidation
                  at any time during or within the three months after the Term.

         (c)      In connection with the recovery of arrears of rend due from
                  the Tenant hereunder (including, but not limited to, bailiff's
                  commission incurred by the Landlord of and incidental to every
                  distress levied by the Landlord on the Tenant's goods for the
                  recovery of overdue rent or other suns due under this Lease).

         (d)      In connection with approving plans and specifications required
                  hereunder and the supervision and inspection of alterations,
                  erections, additions and any other works carried out by the
                  Tenant and any undertenant.

         (e)      In respect of any application for Consent required by this
                  Lease whether or not such Consent be granted.

8.       AS TO USE AND SAFETY.

8.1      Not to keep or use or permit, or suffer to be kept or used on the
         Premises any materials which are inflammable, explosive or otherwise
         dangerous (save in accordance with health and safety legislation), nor
         any machinery, apparatus or equipment or any other thing which may
         attack or in any way injure by percolation, corrosion, vibration,
         excessive weight strain or otherwise the surfaces, floors ceilings,
         roofs contents, or structure of any building comprised therein and in
         the Estate or in the Landlord's Neighboring Premises (or either of
         them), the keeping or using whereof may contravene any Enactments.

9.       NOT TO SUE FOR UNLAWFUL OR ILLEGAL PURPOSES OR CAUSE NUISANCE.

9.1      Not to:

         (a)      use or permit or suffer the Premises or any part thereof to be
                  use for any unlawful, illegal or immoral purpose or for the
                  manufacture, sale or consumption of intoxicating liquors or
                  for the manufacture, sale or consumption of Controlled Drugs,
                  as defined by the Misuse of Drugs Act of 1971 (otherwise by a
                  practitioner or pharmacist, as defined by that Act),

                                       19
<Page>

                  or for the manufacture, publication or sale of any article or
                  thing which may, in the opinion of the Landlord, be
                  pornographic, offensive or obscene or for betting, gaming or
                  lotteries or as a hotel, club, billiards saloon, dance hall,
                  funfair or amusement premises or for an auction or for any
                  noisy, noxious or offensive trade or business; and

         (b)      do or permit or suffer to be done on the Premises or any part
                  thereof anything which may be or become or cause an annoyance,
                  inconvenience, nuisance, damage, disturbance, injury, or
                  danger of or to the Landlord or to the owners, lessees, or
                  occupiers of any premises in the neighborhood or which, in the
                  opinion of the Landlord, would be detrimental to the use or
                  development of the Premises, the Estate and of any Landlord's
                  Neighboring Premises (or any of them ), and to pay to the
                  Landlord all costs, charges and expenses which may be incurred
                  by the Landlord in abating any nuisance on or arising from the
                  Premises, and executing all works as may be necessary for such
                  purpose.

         (c)      use any radio, television, video or sound system audible
                  outside the Premises or play or suffer to be played any
                  musical instrument audible outside the Premises.

10.      NOT TO RESIDE

10.1     Not to reside on the Premises and not to create or permit or suffer to
         be created any residential tenancy or residential occupation of the
         Premises or any part thereof.

11.      AS TO USER.

11.1     Not to use the Premises or any part thereof other than for a purpose
         appropriate to a Science Park that is to say any one or more of the
         following uses:

         (a)      scientific research associated with industrial production;

         (b)      light industrial production of kind which is dependent on
                  regular consultation with either or both of the following

                  (i)      the Tenant's own research, development and design
                           staff established in the Cambridge Study Area;

                  (ii)     the scientific staff or facilities of the University
                           or of local scientific institutions;

         (c)      ancillary buildings and works appropriate in the sole opinion
                  of the Landlord to the use of the Premises as an integral part
                  of a Science Park.

12.      TO KEEP OPEN AND SECURITY.

12.1     Not to permit the Premises to remain vacant or unattended for more than
         72 hours unless it is first made fully secure.

12.2     To indemnify the Landlord against any empty property rate or penal rate
         levied or accessed upon the Landlord by reason of the Premises having
         been left empty.

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<Page>

12.3     To ensure that the Landlord at all times has written notice of the
         names and addresses and telephone number of at least one keyholder of
         the Premises.

13.      DISPLAYS AND ADVERTISEMENTS

13.1     Not to display or permit to be displayed on any part the Premises so as
         to be visible outside the Premises any name, writing, notice, sign,
         placard, sticker or advertisement of whatsoever nature other than a
         notice or sign (not being a "Neon" notice or sign or any notice or sign
         of a similar nature), displaying the name of the Tenant and the name of
         the building comprised within the demise (if any) first approved to
         writing by the Landlord, such approval not a be unreasonably withheld
         or delayed and not to place, leave or install any merchandise or
         display outside the Premises, and on any breach by the Tenant, the
         Landlord, the Surveyor and their respective workmen may, without notice
         and without prejudice to any other remedy of the Landlord, remove the
         cause of the breach of this covenant and shall not be liable to make
         good any loss or pay compensation for so doing.

14.      TO KEEP CLEAN

14.1     Not to allow any rubbish or refuse of any description to accumulate
         upon the Premises save in suitably located dustbins provided by the
         Tenant for that purpose and so often as it shall be necessary or
         desirable and, in any event, at least once a week to cause such
         dustbins to be emptied.

14.2     Generally to keep the premises (including, but and limited to,
         forecourts, roads and paths) clean and tidy and properly lighted
         internally and externally.

14.3     To clean the inside and outside of all windows in the Premises at least
         once each month.

14.4     Not to bring or keep, or suffer to be brought or kept, upon the
         Premises anything which in the reasonable opinion of the Landlord are
         or may become unclean, unsightly or detrimental to the Premises, the
         Estate or the Landlord's Neighboring Premises and nearby premises (or
         any of them).

14.5     Not to discharge into any Service Channel oil, grease solids, or other
         deleterious matter or any substance which might be or become a source
         of damage or injury to the drainage system of the Premises, the Estate
         or the Landlord's Neighboring Premises (or any of them), or which may
         pollute the water of any watercourse so as to render the Landlord
         liable to action or proceedings by any person or body and generally to
         keep the Service Channels comprised within the demise unobstructed.

15.      TO COMPLY WITH ENACTMENTS AND GIVE NOTICE.

15.1     At the Tenant's own expense, to comply with the provisions and
         requirements of all Enactments or as prescribed or required by any
         competent authority, court or body so far as they relate to or affect
         the Premises or the owner or occupier thereof.

15.2     At the Tenant's own expense, to do all works and all other things so as
         to comply with paragraph 15.1 above including, (without prejudice to
         the generality of the foregoing) the obtaining of any fire certificate
         required for the Premises.

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15.3     Within seven days of receipt of notice thereof, to give to the Landlord
         particulars of any provision or requirement of all Enactments or as
         prescribed or required by any competent authority, court or body or
         proposal therefor relating to the Premises, the Estate or the
         Landlord's Neighboring Premises (or any of them), or the condition or
         use thereof, respectively, and at the request an cost of the Landlord
         in making such objection or representation against any such proposal as
         the Landlord shall reasonably require.

15.4     To pay to the Landlord upon demand a due proportion of all reasonable
         costs, charges and expenses (including the Surveyor's and other
         professional advisers' fees) properly incurred by the Landlord of or
         incidental to:

         (a)      complying with all provisions and requirements of all
                  Enactments or as prescribed or required by any competent
                  authority, court or body; and

         (b)      doing all works and other things so as to comply therewith;

         so far as the same relate to any premises capable of being used or
         enjoyed by the Tenant in common or jointly with any other person or the
         use thereof.

16.      TO COMPLY WITH THE PLANNING ACTS.

16.1     At all times during the Term to comply in all respects with the
         provisions and requirements of the Planning Acts and any regulations or
         orders made thereunder and all licenses, consents, permissions and
         conditions (if any) granted or imposed thereunder so far as the same,
         respectively, relate to or affect the Premises or any part thereof and
         to keep the Landlord fully and effectually indemnified against all
         actions, proceedings, damages, costs, expenses, claims and demands
         whatsoever is respect of or arising as of any contravention of the
         Planning Acts and against the cost of any permissions and consents
         thereunder and the implementation thereof.

16.2     In the event of the Landlord giving Consent to any of the matters in
         respect of which the Landlord's Consent shall be required pursuant to
         the provisions of any covenant or condition contained in this Lease to
         apply at the cost of the Tenant to the local and planning authorities
         for all necessary consents and permissions in connection therewith and
         to give notice to the Landlord of the granting or refusal (as the case
         may be) of all such consents and permissions forthwith on the receipt
         thereof.

16.3     in the event of the said Planning Authority agreeing to grant such
         necessary consent or permission only with modifications or subject to
         conditions to give to the Landlord forthwith full particulars of such
         modifications or conditions, AND, if such modifications or such
         conditions shall, in the reasonable opinion of the Landlord, be
         undesirable, then the Tenant shall not implement or proceed with the
         matters, works or change of use to which the application relates.

16.4     If the Tenant shall receive any compensation in respect of the Premises
         under or by virtue of the Planning Acts forthwith to make such
         provision as is just and equitable for the Landlord to receive their
         due benefit from such compensation.

16.5     Not to apply for or implement any planning permission in respect of the
         whole or any part of the Premises if such application or the
         implementation thereof would or might give rise to any tax charge or
         other levy payable by the Landlord.

                                       22
<Page>

16.6     Unless the Landlord shall otherwise direct to carry out before the
         expiration or sooner determination of the Term any works stipulated to
         be carried out to the Premises by a date subsequent to such expiration
         or sooner determination as a condition of the grant of any planning
         permission obtained by the Tenant during the Term.

17.      INSURANCE

17.1     Not to do or omit to do (or permit or suffer to be done or emitted to
         be done) anything whereby the policy or policies of insurance on the
         Premises against the Insured Risks may become void or voidable or
         whereby the rate of premium thereon or upon the Estate or the
         Landlord's Neighboring Premises (or any of them) or the maybe increased
         or cause the insurers to impose more onerous terms on such policy or
         policies and to repay to the Landlord all sums paid by way of increased
         premiums and any expenses incurred by the Landlord in or about any
         renewal of such policy or policies consequent upon a breach of this
         covenant and all such sums shall be added to the rent herein reserved
         and be recoverable upon demand as rent and in the event of the Premises
         or any part thereof being damaged by the Insured Risks and the
         insurance money under any insurance effected against the same being
         wholly or partly irrecoverable by reason solely or in part of any
         omission, neglect or default of the Tenant or any undertenant, then,
         and in every such case, the Tenant will forthwith pay to the Landlord
         the whole or (as the case may require) an appropriate proportion of the
         costs of completely rebuilding and reinstating the Premises, provided
         that the Tenant's obligations under this paragraph shall apply only to
         the policy or policies the terms of which have been most recently
         notified to the Tenant by the Landlord (whether under the provisions of
         paragraph 2.3 of schedule 5 or otherwise).

17.2     To comply with any requirements or recommendations of the insurers of
         the Premises.

17.3     Unless insured by the Landlord to insure and keep insured in the joint
         names of the Landlord and the Tenant, the plate and other glass
         windows, doors and partitions in the Premises against breakage or
         damage, howsoever causes, in its full reinstatement value for the time
         being with some Insurance Office approved in writing by the Landlord
         and whenever so required to produce to the Landlord the policy of such
         insurance and the receipt for the current year's premium.

17.4     On each occasion that the plate or other glass is broken or damaged, to
         reinstate the same forthwith with glass of at least the sane nature,
         thickness and quality.

18.      TO INDEMNIFY.

18.1     To keep the Landlord fully and effectually indemnified from and against
         all liability in respect of losses, damages, proceedings, claims,
         costs, expenses and any other liability whatsoever arising from or in
         connection with:

         (a)      the injury or death of any person;

         (b)      damage to or destruction of any property whatsoever;

         (c)      the infringement, disturbance or destruction of any rights,
                  easements or privileges;

         (d)      the breach by the Tenant of any of the terms, covenants and
                  conditions on the part of the Tenant herein contained

                                       23
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         arising directly or indirectly out of

                  (i)      the repair, condition or use of the Premises or of
                           any alteration to the Premises or works carried out r
                           in the course of being carried out to the Promises;

                  (ii)     anything now or hereafter attached to or projecting
                           from the Premises and which has been constructed or
                           installed by the Tenant, its undertenants, their
                           respective employees, customers and invitees and
                           anyone else under their respective control;

                  (iii)    any act, default or negligence of any person or body
                           other than the Landlord;

         and to insure against such liability in a reputable Insurance Office.

19.      DEALINGS WITH THE PREMISES.

19.1     Unless expressly permitted under paragraph 19.9 or by a Consent granted
         under paragraphs 19.2, 19.3 or 19.4 or the Tenant shall not assign,
         underlet, charge, part with or share possession or occupation of all or
         any part of the Premises, nor hold the Premises on trust for any other
         person.

19.2     The Landlord shall not unreasonably withhold or delay Consent to a
         legal charge of the whole of the Premises.

19.3     The Landlord shall not unreasonably withhold or delay Consent to an
         assignment of the whole of the Premises, but the Landlord and the
         Tenant agree for the purposes of Section 19(1A) Landlord and Tenant Act
         1927 that the Landlord may withhold that Consent unless the following
         conditions are satisfied:

         (a)      in relation to either a prospective assignee or any
                  prospective guarantor or guarantors:

                  (i)      that party shall in the reasonable opinion of the
                           Landlord be a substantial and respectable body or
                           person; and

                  (ii)     that party has submitted references reasonably
                           satisfactory to the Landlord.

         (b)      the prospective assignee is not a Group Company or a Connected
                  Person unless the proposed assignment is to a Group Company in
                  connection with a bona fide reconstruction or amalgamation of
                  the Tenant's group of companies;

         (c)      in the reasonable opinion of the Landlord, the prospective
                  assignee is of sufficient financial standing to enable it to
                  comply with the Tenant's covenants in this Lease;

         (d)      the Tenant and the Surety (and any former Tenant or Surety
                  who, by virtue of there having bean an "excluded assignment"
                  as defined in Section 11 of the Landlord and Tenant
                  (Covenants) Act 1995 has not bean released from the Tenant's
                  covenants in this Lease), enters into an authorized guarantee
                  agreement within the meaning of the Landlord and Tenant
                  (Covenants) Act 1995 with the Landlord in the form set out in
                  Schedule 7 or on such other terms as the Landlord may
                  reasonably require;

                                       24
<Page>

         (e)      if the Landlord reasonably requires, a guarantor or guarantors
                  acceptable to the Landlord acting reasonably has guaranteed to
                  the Landlord the due performance of the prospective assignee's
                  obligations in the form set out in Schedule 6 or on such other
                  such terms as the Landlord may reasonably require; and

         (f)      any security for the Tenant's obligations under this Lease
                  which the Landlord holds immediately before the assignment is
                  continued or renewed in each case on such terms as the
                  Landlord may reasonably require in respect of the Tenant's
                  liability under the authorized guarantee agreement referred to
                  in paragraph 19.3(d) (but this paragraph shall not apply to
                  any authorized guarantee agreement entered into by a former
                  Tenant or by any guarantor of a former Tenant) and;

         (g)      any sum due from the Tenant to the Landlord under this Lease
                  (or any deed of variation, license, Consent or other document
                  supplemental to or associated with this Lease) is paid; and

         (h)      the Landlord has received an undertaking from the Tenant's
                  solicitors in such form as the Landlord may reasonably require
                  to pay the Landlord on demand the reasonable legal and
                  surveyor's costs and disbursements (including Value Added Tax)
                  properly incurred by the Landlord in considering the Tenant's
                  documentation whether or not the application is withdrawn or
                  the Consent is granted; and

         (i)      the prospective assignee (and any guarantor of the assignee)
                  enters into direct covenants with the Landlord to observe and
                  perform the Tenant's obligations under the Lease then past,
                  present and future during the period that the Term is vested
                  in that assignee and any subsequent period during which such
                  assignee and/or guarantor is liable under any authorized
                  guarantee agreement referred to in paragraph 19.3(d) above.

19.4     The Landlord shall not unreasonably withhold or delay Consent to an
         underletting of any Lettable Unit as distinct from the whole or any
         other part of the Premises where all of the following conditions are
         satisfied:

         (a)      the prospective undertenant has produced references in a form
                  reasonably acceptable to the Landlord;

         (b)      the prospective undertenant has covenanted with the Landlord
                  to observe and perform until it assigns the underlease with
                  Consent as required by the underlease the Tenant's covenants
                  and obligations in this Lease (except the covenant to pay rent
                  and insofar only as such covenants affect the underlet
                  Premises);

         (c)      if the Landlord reasonably requires a guarantor or guarantors
                  acceptable to the Landlord has guaranteed the due performance
                  by the undertenant of its above covenant in such terms as the
                  Landlord may reasonably require; and

         (d)      no fine or premium is taken for the grant of the underlease;
                  and

         (e)      the basic rent payable under the underlease is not less than
                  the best rent reasonably obtainable for the underlease; and

                                       25
<Page>

         (f)      any rent free period or other financial inducements given to
                  the undertenant are no greater than is usual at the time in
                  all the circumstances; and

         (g)      the form of the underlease has been approved in writing by the
                  Landlord (approval not to be unreasonably withheld or delayed
                  where the provisions of it are consistent with the provisions
                  of this Lease and where the basic rent is reviewable at the
                  same times and on the same terms as the Basic Rent); and

         (h)      any such underlease shall be excluded from the operation of
                  Sections 24-28 Landlord and Tenant Act 1954; and

         (i)      the total number of such underleases which may subsist at any
                  time during the Term shall not exceed four and at any time the
                  Premises may not comprise more than four separate units of
                  accommodation to the intent that if the Tenant remains in
                  occupation of the Premises, not more than three such
                  underleases may subsist; and

         (j)      any such underlease shall contain provisions enabling the
                  Tenant (as lessor) to recover from the undertenant by way of
                  rent a due proportion of the sum due under this Lease in
                  respect of insurance of the Premises and of the cost to the
                  Tenant of repairing, decorating and operating the Premises and

         (k)      any such underlease shall preclude further underletting of all
                  or part of the underlet premises.

19.5     The Tenant shall:

         (a)      enforce against any undertenant the provisions of any
                  underlease and shall not waive them;

         (b)      operate the rent review provisions contained in any underlease
                  so as to ensure that the rent is reviewed at the correct times
                  and in accordance with those provisions; and

         (c)      not accept a surrender of part only of the underlet premises.

19.6     The Tenant shall not without Consent (which shall not be unreasonably
         withheld or delayed):

         (a)      vary the terms of any underlease; or

         (b)      agree any review of the rent under any underlease.

19.7     The Tenant shall not require or permit any rent reserved by any
         underlease to be commuted or to be paid more than one quarter in
         advance or to be reduced.

19.8     Any Consent granted under this paragraph 19 shall (unless it expressly
         states otherwise) only be valid if the dealing to which it relates is
         completed within two months after the date of the Consent.

19.9     The Tenant may (after giving written notice to the Landlord containing
         all relevant information) share occupation of the Premises with any
         Group Company on condition that the sharing shall not

                                       26
<Page>

         create any relationship of Landlord and tenant and that on any occupier
         ceasing to be a Group Company the occupation shall immediately cease to
         be otherwise in accordance with this paragraph 19.

20.      TO GIVE NOTICE OF ASSIGNMENT, DEVALUATION, ETC.

20.1     To produce a certified copy of every assignment, underlease, transfer,
         charge, Probate Letters of Administration, order, instrument or other
         writing affecting or evidencing any transmission or devolution of any
         estate or interest in the Premises or any part thereof to the
         solicitors of the Landlord for registration within one month from the
         date thereof and to pay to the Landlord's solicitors their reasonable
         fees for each such registration.

20.2     Within seven days of an assignment of this Lease to give to the
         Landlord written notice of the person to whom future rent demands
         should be sent.

20.3     Upon being requested so to do by the Landlord from time to time to
         supply the Landlord with such details of the occupiers of the Premises
         and the terms upon which they occupy.

21.      AS TO LOSS OR ACQUISITION OF EASEMENTS

21.1     Not to permit any easement or right comprised in, belonging to or used
         with the Premises or any part thereof from being obstructed or lost.

21.2     Not to give to any third party any acknowledgement that the die Tenant
         enjoys the access of light to any of do windows or openings in the
         Premises by the consent of such third party nor to pay to such third
         party any sum of money nor to enter into any agreement with such third
         party for the purpose of inducing or binding such third party to
         abstain from obstructing the access of light to any such windows or
         openings.

21.3     To take all such steps that may be necessary to prevent the acquisition
         of any easement or right against, over, upon or under the Premises or
         any part thereof and any encroachment thereon and to give to do
         Landlord immediate notice of my encroachment or threatened encroachment
         upon the Premises or any attempt to acquire any easement or right under
         or over the Premises which shall be within the Tenant's knowledge and
         to do all such things as may be necessary to prevent any encroachment
         being made or any new easement being acquired.

22.      TO PRODUCE PLANS/DOCUMENTS

22.1     If and whenever called upon so to do to produce to the Landlord or the
         Surveyor all such plans, documents or other evidence as the Landlord
         may from time to time require to satisfy themselves that the Tenant has
         complied in all respects with the provisions of the Tenant's covenants
         herein.

23.      NOT TO INTERFERE WITH RESERVED RIGHTS

23.1     Not to interrupt or interfere with any reasonable exercise of the
         rights contained or referred to in schedule 2.

                                       27
<Page>

24.      TO PERMIT ENTRY FOR RELETTING, ETC.

24.1     During the last six months before the expiration or sooner
         determination of the Term or after the expiration thereof (or at any
         time during the Term in the event of a sale of the Landlord's interest
         in the Premises) to permit the Landlord and the Surveyor to enter upon
         the Premises and to affix upon any suitable part or parts thereof a
         notice board or boards for reletting or other disposal of the Premises
         and not to remove or obscure the same and at all reasonable times in
         the daytime to permit all persons authorized by the Landlord or the
         Surveyor to enter and inspect the Premises following reasonable prior
         notice.

25.      TO YIELD UP

25.1     At the expiration or sooner determination of the Term peaceably and
         quietly to surrender and yield up to the I.andlord the Premises
         (together with all keys thereto) with vacant possession so repaired,
         maintained, decorated, cleansed, glazed, painted and kept as herein
         provided and if so required by the Landlord to remove such tenants and
         trade fixtu5es as the Landlord may specify the Tenant making good all
         damage caused by the removal of these to the satisfaction of the
         Surveyor.

26.      NEW SURETY

26.1     If during the Term any surety (which expression in this paragraph 26
         includes any guarantor) for the time being of the Tenant's obligations
         under this Lease (or any of them if there is more than one):

         (a)      (being an individual) dies, has a bankruptcy order made
                  against the surety or an interim receiver appointed in respect
                  to the surety's property; or

         (b)      (being a company) enters into liquidation, has an
                  administration order made in respect of the surety or has a
                  receiver (administrative or otherwise) appointed of any of the
                  surety's undertaking or assets the Tenant will give the
                  Landlord notice of that fact within fourteen days of
                  occurrence of the event and if required by the Landlord will
                  within twenty-eight days of the event procure that some other
                  person acceptable to the Landlord enters into a deed of
                  covenant with the Landlord in the same terms (mutatis
                  mutandis) as the original surety.

27.      AS TO VALUE ADDED TAX

27.1     On demand to discharge any liabilities of the Landlord relating to
         value added tax (or any substituted tax) in respect of any supply of
         goods or services for value added tax purposes made pursuant to or in
         consequence of this Lease.

27.2     For the purposes of this paragraph:

         (a)      "VAT" means value added tax or any tax charged in addition to
                  or substitution for it;

         (b)      "VAT Act" means the Value Added Tax Act 1994; and

                                       28
<Page>

         (c)      any reference to a statute or statutory instrument includes a
                  reference to any later statute or statutory instrument
                  replacing or amending it.

27.3     The Tenant covenants:

         (a)      to be at the time of this Lease and to remain at all times
                  during the Term and at any time any supply under this Lease is
                  made to the Tenant a taxable person within the meaning of the
                  VAT Act; and

         (b)      not to use or intend to use or permit the use of the Premises
                  at any time during the Term for any purpose or purposes other
                  than eligible purposes (within the meaning of Article 3A of
                  Schedule 10 VAT Act).

27.4     The parties intent that the supplies effected by this Lease are
         standard rated for VAT purposes and the Tenant covenants not to negate
         or challenge the treatment of such supplies as standard rated for VAT
         purposes.

28.      AS TO MAINTENANCE CONTRACTS.

28.1     Where there are within the Premises any lifts, hoists, boilers or
         air-conditioning or central heating installations to enter into and
         maintain throughout the Term, maintenance and safety contracts with
         reputable engineers for the maintenance and safety of the same and to
         produce to the Landlord on demand any such contract and the receipt for
         the current payments or premiums thereunder.

29.      STATUTORY ACQUISITIONS

29.1     Not to do or omit to do any act, matter or thing as a consequence
         whereof the Landlord's reversion immediately expectant upon the
         determination of the Term shall become liable to acquisition pursuant
         to any Enactments.

30.      FIRE FIGHTING APPLIANCES

30.1     To keep the Premises sufficiently supplied end equipped with such
         suitable fire fighting and extinguishing appliances as shall from time
         to time be required by law or by the local or other competent authority
         and by the Landlord's insurers and such appliances shall be open to
         inspection and shall be properly maintained and also not to obstruct
         the access to or means of working such appliances or the means of
         escape from the Premises in case of fire.

31.      EXISTING ENCUMBRANCES

31.1     To observe and perform all covenants in respect of the Premises arising
         from the Existing Encumbrances so far as they affect the Premises and
         we still subsisting.

32.      NOT TO OBSTRUCT

32.1     Not to permit any vehicles to stand on the roadways comprised within
         the Estate or on any other part of the Estate except on such parts as
         shall from time to time have been authorized by the Landlord or shall
         have been designated by the Landlord as a loading bay for the Tenant
         (but

                                       29
<Page>

         during the period of loading and unloading of vehicles only) and not to
         park on or obstruct any communal part of the Estate.

33.      TO COMPLY WITH REGULATIONS

33.1     To comply with all reasonable regulations made by the Landlord form
         time to time for the management of the Estate and of any land or
         premises used or to be used in common or jointly with any other person
         and to procure that the Tenants employees and all persons under the
         control of the Tenant shall at all times observe and perform the same.

34.      AS TO WATER SUPPLY

34.1     Not to use or permit or suffer to be used the supply of water to the
         Estate for any purpose other than the Tenant's purposes hereby
         permitted and not in my event to use the same or permit or suffer the
         same to be used for research or industrial purposes without the
         provision of a proper recirculation system to a specification first
         approved by the Statutory Water Undertaker or otherwise in compliance
         with the reasonable recommendations of the Water Authority.

35.      TO COMPLY WITH PLANNING AGREEMENTS

35.1     In addition to and not in substitution for or limitation of the
         covenants contained herein and in particular the Tenant's covenants as
         to the use of the Premises or my part thereof to observe and perform
         all the covenants on the Landlord's part in the Planning Agreements
         respectively contained and the agreements and provisions of the
         Planning Agreements to the extent that the same affect the Premises or
         any part thereof and at all times to indemnify the Landlord against any
         breach or non-observance of the same.

36.      TO PAY COST OF DAMAGE

36.1     Without prejudice to any other provisions herein contained to pay to
         the Landlord on demand the full cost as assessed by the Surveyor of
         making good any damage to the said roads colored brown on the Plan and
         any road fittings including but not limited to lighting and signs or
         any other put of the Estate whether occasioned by the Tenant, any
         undertenant or their respective employees, servants, agents,
         independent contractors, customers, visitors, licensees, invitees or
         any other person under the Tenant's or the undertenant's control.

                                       30
<Page>

                                   SCHEDULE 5

                              LANDLORD'S COVENANTS

1.       AS TO QUIET ENJOYMENT

1.1      That the Tenant paying the rents hereby reserved at the times and in
         the manner herein appointed, and performing and observing the covenants
         on the Tenant's part and the condition agreements and stipulations
         herein contained may peaceably enjoy the Premises for the Term without
         any lawful interruption from the Landlord or any person lawfully
         claiming under or in trust for the Landlord.

2.       TO INSURE

2.1      That the Landlord will, during the Term, insure and keep insured, in
         some established Insurance Office, the Premises (excluding all plate
         and other glass therein) against the Insured Risks with a sum assured
         to cover the following:

         (a)      the full reinstatement value thereof (excluding the amount of
                  any insurance excess for which the Tenant shall be liable) to
                  be determined from time to time by the Landlord; and

         (b)      architect's, surveyor's and other professional fees,
                  demolition, site clearance and the cost of boarding and
                  propping, including a due allowance for cost increases over
                  any likely rebuilding period; and

         (c)      three years' loss of rent; and

         (d)      liability attaching to the Landlord as owners or landlords of
                  the Premises; and

         (e)      incidental expenses.

         AND where there are within the Premises goods or passenger lifts,
         hoists, air conditioning or central heating installments the Landlord
         may insure the same (or any of them) separately in such manner and for
         such amount as the Landlord may from time to time determine.

2.2      The Landlord shall have full power to settle and adjust with the
         insurers all questions with regard to the liability of the insurers and
         the amount or amounts payable under any policy.

2.3      The Landlord will, whenever reasonably requested, but not more than
         once in every year, produce to the Tenant a copy of the insurance
         policy (or a summary of the terms of it), and evidence of payment of
         the current premium.

                                       31
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                                   SCHEDULE 6

                        SURETY'S COVENANTS AND AGREEMENTS

1.       COVENANTS BY SURETY

1.1      the Surety HEREBY COVENANTS with and guarantees to the Landlord that:

         (a)      at all time during the Term, and until this demise is lawfully
                  brought to an end and the Landlord has beneficial occupation
                  of the Premises, or until the Tenant assigns this Lease as a
                  whole with Consent as required by this Lease (if earlier), or
                  otherwise if the Tenant remains liable for payment under the
                  Landlord and Tenant Act of 1954 to pay the rents hereby
                  reserved and all other sums and payments covenanted and/or
                  agreed to by paid by the Tenant at the respective times and in
                  manner herein appointed for payment thereof, and will also
                  duly perform and observe and keep the several covenants and
                  provisions on the Tenant's part herein contained; and

         (b)      the Surety will pay and make good to the Landlord all losses,
                  liabilities, costs and expenses sustained by the Landlord
                  through the default of the Tenant in respect of any of the
                  before mentioned matters; and

         (c)      that any neglect or forbearance of the Landlord in endeavoring
                  to obtain payment of the said several rents and payments, as
                  and when the same become due or their delay to take any steps
                  to enforce performance or observance of the several covenants
                  and provisions herein on the Tenant's part contained and any
                  time which may be given by the Landlord to the Tenant, shall
                  not release or in any way lessen or affect the liability of
                  the Surety under the guarantee on the Surety's part herein
                  contained; and

         (d)      if the Tenant (being a Company) shall become the subject to an
                  administration order, or be the subject of a winding up order
                  by the Court, or otherwise go into liquidation, or if the
                  Tenant (being an individual) shall be adjudged bankrupt and
                  the Liquidator or Administrator or the Trustee of the
                  bankrupt's estate (as the case may be) shall disclaim this
                  Lease and if the Landlord shall within three months after such
                  disclaimer by notice in writing, require the Surety to accept
                  a lease of the Premises for a term equal to the residue which,
                  if there had been no such disclaimer, would have remained of
                  the Term at the same rents and under the like covenants and
                  provisions as are reserved by and contained in the Lease, the
                  said new lease, and the rights and liabilities thereunder to
                  take effect as from the date of the said disclaimer, then, and
                  in such case, the Surety shall accept such lease accordingly
                  and execute and deliver to the Landlord a counterpart thereof
                  in all respects at the sole cost of the Surety; and

         (e)      upon demand to pay to the Landlord Interest on all amounts due
                  under this paragraph 1 form the date the same respectively
                  fell due until the date of payment thereof.

2.       AGREEMENTS BY SURETY

2.1      It is hereby agreed and declared that:

         (a)      the Surety covenants as principal debtor and not as guarantor
                  and, accordingly (for the avoidance of doubt):

                                       32
<Page>

                  (i)      it shall be necessary for the Landlord to resort to
                           or seek to enforce any other guarantee or security
                           (whether from the Tenant or otherwise) before
                           claiming payment hereunder; and

                  (ii)     until all monies and liabilities due or incurred by
                           the Tenant to the Landlord have been paid or
                           discharged in full notwithstanding payment in whole
                           or in part of the amount by the Surety or any
                           purported release or cancellation hereof, the Surety
                           shall not, by virtue of any such payment or on any
                           other ground:

                           (A)      claim any set off or counter claim against
                                    the Tenant in respect of any liability on
                                    the part of the Surety to the Landlord; and

                           (B)      make or enforce any claim or right against
                                    the Tenant or prove in competition with the
                                    Landlord or exercise any right as a
                                    preferential creditor against the Tenant or
                                    against the assets of the Tenant;

         and

         (b)      the Surety's covenants herein contained shall not be affected
                  or modified in any way the liquidation or dissolution of the
                  Tenant or the appointment of any receiver, administrator or
                  manager; and

         (c)      the Landlord shall be at liberty at all times without
                  affecting or discharging the Surety's liability hereunder:

                  (i)      to vary release or modify the rights of the Landlord
                           against the Tenant hereunder without the Surety's
                           consent; and

                  (ii)     to compound with discharge, release or vary the
                           liability of the Tenant or any other guarantor or
                           other person; and

                  (iii)    to appropriate any payment the Landlord may receive
                           from the Tenant, the Surety or any other person
                           towards such monies due under this Lease as the
                           Landlord shall in their absolute discretion think
                           fit.

         (d)      the Landlord and the Tenant shall be at liberty to review the
                  rent hereunder from time to time in accordance with the
                  provisions of this Lease without reference to the Surety and
                  the covenants, conditions, agreements and declarations on the
                  part of the Surety contained in this Lease shall apply to the
                  rent as reviewed from time to time as much as to the rent
                  reserved hereby at the commencement of the Term.

                                       33
<Page>

                                   SCHEDULE 7

                               GUARANTEE AGREEMENT

THIS DEED dated                               is made BETWEEN:

(1)      ("the Guarantor")

(2)      ("the Landlord")

1.       DEFINITIONS AND INTERPRETATION

1.1      In this deed:

         "Basic Rent", "Consent", "Premises", "Rent", "Rent Day" and "Term" have
         the same meanings as in the Lease.

         "the Lease" means [this lease] and includes where relevant any deed of
         variation license Consent or other document supplemental to or
         associated with the Lease by which the Tenant is bound whether
         presently existing or not.

         "Relevant Variation" means a relevant variation as defined in section
         18(4) of the Landlord and Tenant (Covenants) Act 1995.

         "Secured Obligations" means the obligation to pay all sums from time to
         time due or expressed to be due to the Landlord from the Tenant under
         the Lease and to perform all other obligations which from time to time
         are or are expressed to be obligations of the Tenant under the Lease.

         "the Tenant" means [the proposed assignee].

1.2      In this deed unless the context otherwise requires:

         (a)      references to the singular include the plural and vice versa
                  any references to a person includes a reference to a body
                  corporate and words importing any gender include every gender.

         (b)      references to numbered clauses are references to the relevant
                  clause in this deed.

1.3      The clause headings do not form part of this deed and are not to be
         taken into account when construing it.

1.4      This instrument:

         (a)      is executed as a deed and by its execution the parties
                  authorize their solicitors to deliver it for them when it is
                  dated.

         (b)      was delivered when it was dated.

                                       34
<Page>

2.       GUARANTEE

2.1      This guarantee is given pursuant to a provision in the Lease requiring
         it to be given and is an authorized guarantee agreement for the
         purposes of section 16 of the Landlord and Tenant (Covenants) Act of
         1995.

2.2      The Guarantor unconditionally and irrevocably covenants with and
         guarantees to the Landlord that Tenant will, until the Tenant assigns
         the Lease as a whole with Consent, pay and discharge the Secured
         Obligations when they fall due or are expressed to fall due under the
         Lease for payment and discharge.

2.3      The Guarantor shall, upon being requested to do so by the Landlord,
         enter into any deed of variation, license, Consent or other document to
         which, in each case, the Tenant is a party and which is, in each case,
         supplemental to the Lease, for the purpose of acknowledging that the
         Guarantor's liabilities under this deed extend to it, but to the extent
         that the document effects a Relevant Variation, paragraph 5.3 shall
         apply.

2.4      The guarantee and covenant in paragraph 2.2 shall impose on the
         Guarantor the same liability as if the Guarantor were the principal
         debtor in respect of the Tenant's obligations under the Lease and that
         liability shall continue notwithstanding (and will not be discharged in
         whole or in part or otherwise affected by):

         (a)      any forbearance by the Landlord to enforce against the Tenant
                  the tenant's covenants in the Lease.

         (b)      the giving of time or other concessions or the taking or
                  holding of or varying, realizing, releasing or not enforcing
                  any other security for the liabilities of the Tenant.

         (c)      any legal limitation or incapacity relating to the Tenant.

         (d)      the Tenant ceasing to exist.

         (e)      any increase or reduction in the extent of the Premises or in
                  the rent payable under the Lease or any other variation to the
                  Lease.

         (f)      the disclaimer of the Lease.

         (g)      any other act or omission of the Landlord or any other
                  circumstances which but for this paragraph 2.4 would discharge
                  the Guarantor

         and for the purposes of this paragraph 2 the Tenant shall be deemed
         liable to continue to pay and discharge the Secured Obligations
         notwithstanding any of the above matters and any money expressed to be
         payable by the Tenant which may not be recoverable for any such reason
         shall be recoverable by the Landlord from the Guarantor as principal
         debtor.

3.       NEW LEASE

3.1      The Guarantor shall, if required by the Landlord in writing within the
         period beginning on the day of a disclaimer of this lease and expiring
         three months after the Landlord has been notified in

                                       35
<Page>

         writing by the Guarantor or the Tenant of that disclaimer, accept a
         lease of the Premises for the residue of the contractual term unexpired
         at and with effect from the date of the disclaimer at the same Basic
         Rent as reserved by the Lease (reviewable at the same times as the
         Basic Rent would have been reviewable under the Lease had there been no
         disclaimer) and subject to the same covenants and provisos, and the
         Tenant, on execution of the new lease, will pay Rent for the period
         from the date of the disclaimer to the Rent Day following the date of
         the lease, and the costs of and incidental to the new lease, and will
         execute and deliver to the Landlord a counterpart.

3.2      If the Landlord requires more than one guarantor to take a new lease,
         those guarantors shall take that new lease as joint tenants.

4.       SECURITY TAKEN BY GUARANTOR

4.1      Until the Secured Obligations have been paid and discharged in full.
         the Guarantor shall not, without consent, exercise any rights:

         (a)      of subrogation or indemnity in respect of the Secured
                  Obligations.

         (b)      to take the benefit or share in or enforce any security or
                  other guarantee or indemnity for the Secured Obligations.

5.       LIMITATION ON GUARANTOR'S LIABILITY

5.1      Nothing in this agreement shall operate so as to make the Guarantor
         liable for anything in respect of which the Tenant is released from
         liability by the provisions of the Landlord and Tenant (Covenants) Act
         1995.

5.2      To the extent that this deed purports to impose on the Guarantor any
         liability for anything in respect of which the Tenant is released from
         liability by the provisions of the Landlord and Tenant (Covenants) Act
         1995, the relevant provision of this deed shall to that extent be void,
         but that shall not affect:

         (a)      enforceability of that provision except to that extent, or

         (b)      the enforceability of any other provision of this deed.

5.3      The Secured Obligations shall not include obligations arising under a
         Relevant Variation but the making of a Relevant Variation shall not
         discharge the Guarantor's liability under this deed.

6.       JOINT AND SEVERAL GUARANTORS

6.1      The liability of the Guarantor under this deed shall be the joint and
         several liability of all parties who have executed this deed as
         Guarantor and all other parties who from time to time guarantee the
         Tenant's obligations to the Landlord, and any demand for payment by the
         Landlord on any one or more of such persons jointly and severally
         liable shall be deemed to be a demand made on all such persons.

                                       36
<Page>

6.2      Each person who has executed this deed as Guarantor, or on whose behalf
         this deed has been so executed, agrees to be bound by this deed,
         notwithstanding that the other person intended to execute or be bound
         by this deed may not do so or may not be effectually bound, and
         notwithstanding that this deed may be determined or become invalid or
         unenforceable against any other person, whether or not the deficiency
         is known to the Landlord.

[Executed by the Guarantor and the Landlord as a deed]

Signed as a deed by VIRCO U.K.      )
LIMITED acting by a director and    )
its secretary                       )

                                         ---------------------------------------
                                         Director

                                         ---------------------------------------
                                         Secretary

                                         Signed as a deed by VIRCO NV acting by:

                                         ---------------------------------------

                                         ---------------------------------------

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Exhibit 4.13  

 
 

ANTHEM, INC.    
    
    TO    
    
    THE BANK OF NEW YORK

                                         
 Trustee    
  

 
 

Indenture    
  

 
 

Dated as of            , 2002    

  

 
 

Certain Sections of this Indenture relating to Sections 310 through 318,
  inclusive, of the Trust Indenture Act of 1939:    
  

	Trust Indenture Act Section
 
	 	Indenture Section

	§ 310	 	(a)(1)	 	609
	 	 	(a)(2)	 	609
	 	 	(a)(3)	 	Not Applicable
	 	 	(a)(4)	 	Not Applicable
	 	 	(b)	 	608
	 	 	 	 	610
	§ 311	 	(a)	 	613
	 	 	(b)	 	613
	§ 312	 	(a)	 	701
	 	 	 	 	702
	 	 	(b)	 	702
	 	 	(c)	 	702
	§ 313	 	(a)	 	703
	 	 	(b)	 	703
	 	 	(c)	 	703
	 	 	(d)	 	703
	§ 314	 	(a)	 	704
	 	 	(a)(4)	 	101
	 	 	 	 	1004
	 	 	(b)	 	Not Applicable
	 	 	(c)(1)	 	102
	 	 	(c)(2)	 	102
	 	 	(c)(3)	 	Not Applicable
	 	 	(d)	 	Not Applicable
	 	 	(e)	 	102
	§ 315	 	(a)	 	601
	 	 	(b)	 	602
	 	 	(c)	 	601
	 	 	(d)	 	601
	 	 	(e)	 	514
	§ 316	 	(a)	 	101
	 	 	(a)(1)(A)	 	502
	 	 	 	 	512
	 	 	(a)(1)(B)	 	513
	 	 	(a)(2)	 	Not Applicable
	 	 	(b)	 	508
	 	 	(c)	 	104
	§ 317	 	(a)(1)	 	503
	 	 	(a)(2)	 	504
	 	 	(b)	 	1003
	§ 318	 	(a)	 	107

NOTE:
This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture. 

2

 
 

TABLE OF CONTENTS    
  

	 
	 	Page

	PARTIES	 	1
	RECITALS OF THE COMPANY	 	1

 
 

ARTICLE ONE
  
    DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION    
  

	

SECTION 101.	
 	

Definitions	
 	

1
	 	 	Act	 	2
	 	 	Affiliate; control	 	2
	 	 	Authenticating Agent	 	2
	 	 	Board of Directors	 	2
	 	 	Board Resolution	 	2
	 	 	Business Day	 	2
	 	 	Commission	 	2
	 	 	Company	 	2
	 	 	Company Request; Company Order	 	2
	 	 	Corporate Trust Office	 	2
	 	 	corporation	 	3
	 	 	Covenant Defeasance	 	3
	 	 	Defaulted Interest	 	3
	 	 	Defeasance	 	3
	 	 	Depository	 	3

Note:    This
Table of Contents shall not, for any purpose, be deemed to be a party of the Indenture. 

 

	

 	
 	

Event of Default	
 	

3
	 	 	Exchange Act	 	3
	 	 	Expiration Date	 	3
	 	 	Global Security	 	3
	 	 	Holder	 	3
	 	 	Indenture	 	3
	 	 	interest	 	3
	 	 	Interest Payment Date	 	3
	 	 	Investment Company Act	 	3
	 	 	Maturity	 	3
	 	 	Notice of Default	 	4
	 	 	Officers' Certificate	 	4
	 	 	Opinion of Counsel	 	4
	 	 	Original Issue Discount Security	 	4
	 	 	Outstanding	 	4
	 	 	Paying Agent	 	5
	 	 	Person	 	5
	 	 	Place of Payment	 	5
	 	 	Predecessor Security	 	5
	 	 	Redemption Date	 	5
	 	 	Redemption Price	 	5
	 	 	Regular Record Date	 	5
	 	 	Responsible Officer	 	6
	 	 	Securities	 	6
	 	 	Securities Act	 	6
	 	 	Security Register; Security Registrar	 	6
	 	 	Special Record Date	 	6
	 	 	Stated Maturity	 	6
	 	 	Subsidiary	 	6
	 	 	Trust Indenture Act	 	6
	 	 	Trustee	 	6
	 	 	U.S. Government Obligation	 	6
	 	 	Vice President	 	7
	SECTION 102.	 	Compliance Certificates and Opinions.	 	7
	SECTION 103.	 	Form of Documents Delivered to Trustee.	 	7
	SECTION 104.	 	Acts of Holders; Record Dates.	 	8

ii

 

	SECTION 105.	 	Notices, Etc., to Trustee and Company.	 	10
	SECTION 106.	 	Notice to Holders; Waiver.	 	10
	SECTION 107.	 	Conflict with Trust Indenture Act.	 	11
	SECTION 108.	 	Effect of Headings and Table of Contents.	 	11
	SECTION 109.	 	Successors and Assigns.	 	11
	SECTION 110.	 	Separability Clause.	 	11
	SECTION 111.	 	Benefits of Indenture.	 	11
	SECTION 112.	 	Governing Law.	 	11
	SECTION 113.	 	Legal Holidays.	 	11

 
 

ARTICLE TWO
  
    SECURITY FORMS    
  

	

SECTION 201.	
 	

Forms Generally.	
 	

12
	SECTION 202.	 	Form of Face of Security.	 	12
	SECTION 203.	 	Form of Reverse of Security.	 	14
	SECTION 204.	 	Form of Legend for Global Securities.	 	18
	SECTION 205.	 	Form of Trustee's Certificate of Authentication.	 	19

 
 

ARTICLE THREE
  
    THE SECURITIES    
  

	

SECTION 301.	
 	

Amount Unlimited; Issuable in Series.	
 	

19
	SECTION 302.	 	Denominations.	 	22
	SECTION 303.	 	Execution, Authentication, Delivery and Dating.	 	22
	SECTION 304.	 	Temporary Securities.	 	23

iii

 

	SECTION 305.	 	Registration, Registration of Transfer and Exchange.	 	24
	SECTION 306.	 	Mutilated, Destroyed, Lost and Stolen Securities.	 	25
	SECTION 307.	 	Payment of Interest; Interest Rights Preserved.	 	26
	SECTION 308.	 	Persons Deemed Owners.	 	27
	SECTION 309.	 	Cancellation.	 	27
	SECTION 310.	 	Computation of Interest.	 	28

 
 

ARTICLE FOUR
  
    SATISFACTION AND DISCHARGE    
  

	

SECTION 401.	
 	

Satisfaction and Discharge of Indenture.	
 	

28
	SECTION 402.	 	Application of Trust Money.	 	29

 
 

ARTICLE FIVE
  
    REMEDIES    
  

	

SECTION 501.	
 	

Events of Default.	
 	

29
	SECTION 502.	 	Acceleration of Maturity; Rescission and Annulment.	 	30
	SECTION 503.	 	Collection of Indebtedness and Suits for Enforcement by Trustee.	 	31
	SECTION 504.	 	Trustee May File Proofs of Claim.	 	32
	SECTION 505.	 	Trustee May Enforce Claims Without Possession of Securities.	 	32
	SECTION 506.	 	Application of Money Collected.	 	33
	SECTION 507.	 	Limitation on Suits.	 	33
	SECTION 508.	 	Unconditional Right of Holders to Receive Principal, Premium and Interest.	 	34
	SECTION 509.	 	Restoration of Rights and Remedies.	 	34
	SECTION 510.	 	Rights and Remedies Cumulative.	 	34

iv

 

	SECTION 511.	 	Delay or Omission Not Waiver.	 	34
	SECTION 512.	 	Control by Holders.	 	34
	SECTION 513.	 	Waiver of Past Defaults.	 	35
	SECTION 514.	 	Undertaking for Costs.	 	35
	SECTION 515.	 	Waiver of Usury, Stay or Extension Laws.	 	35

 
 

ARTICLE SIX
  
    THE TRUSTEE    
  

	

SECTION 601.	
 	

Certain Duties and Responsibilities.	
 	

36
	SECTION 602.	 	Notice of Defaults.	 	36
	SECTION 603.	 	Certain Rights of Trustee.	 	36
	SECTION 604.	 	Not Responsible for Recitals or Issuance of Securities.	 	37
	SECTION 605.	 	May Hold Securities.	 	37
	SECTION 606.	 	Money Held in Trust.	 	37
	SECTION 607.	 	Compensation and Reimbursement.	 	38
	SECTION 608.	 	Conflicting Interests.	 	38
	SECTION 609.	 	Corporate Trustee Required; Eligibility.	 	38
	SECTION 610.	 	Resignation and Removal; Appointment of Successor.	 	39
	SECTION 611.	 	Acceptance of Appointment by Successor.	 	40
	SECTION 612.	 	Merger, Conversion, Consolidation or Succession to Business.	 	41
	SECTION 613.	 	Preferential Collection of Claims Against Company.	 	41
	SECTION 614.	 	Appointment of Authenticating Agent.	 	41

v

 
 
 

ARTICLE SEVEN
  
    HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY    
  

	

SECTION 701.	
 	

Company to Furnish Trustee Names and Addresses of Holders.	
 	

43
	SECTION 702.	 	Preservation of Information; Communications to Holders.	 	43
	SECTION 703.	 	Reports by Trustee.	 	44
	SECTION 704.	 	Reports by Company.	 	44

 
 

ARTICLE EIGHT
  
    CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE    
  

	

SECTION 801.	
 	

Company May Consolidate, Etc., Only on Certain Terms.	
 	

44
	SECTION 802.	 	Successor Substituted.	 	45

 
 

ARTICLE NINE
  
    SUPPLEMENTAL INDENTURES    
  

	

SECTION 901.	
 	

Supplemental Indentures Without Consent of Holders.	
 	

45
	SECTION 902.	 	Supplemental Indentures With Consent of Holders.	 	46
	SECTION 903.	 	Execution of Supplemental Indentures.	 	47
	SECTION 904.	 	Effect of Supplemental Indentures.	 	47
	SECTION 905.	 	Conformity with Trust Indenture Act.	 	48
	SECTION 906.	 	Reference in Securities to Supplemental Indentures.	 	48

vi

 
 
 

ARTICLE TEN
  
    COVENANTS    
  

	

SECTION 1001.	
 	

Payment of Principal, Premium and Interest.	
 	

48
	SECTION 1002.	 	Maintenance of Office or Agency.	 	48
	SECTION 1003.	 	Money for Securities Payments to Be Held in Trust.	 	49
	SECTION 1004.	 	Statement by Officers as to Default.	 	50
	SECTION 1005.	 	Existence.	 	50
	SECTION 1006.	 	Maintenance of Properties.	 	50
	SECTION 1007.	 	Payment of Taxes and Other Claims.	 	50
	SECTION 1008.	 	Waiver of Certain Covenants.	 	51

 
 

ARTICLE ELEVEN
  
    REDEMPTION OF SECURITIES    
  

	

SECTION 1101.	
 	

Applicability of Article.	
 	

51
	SECTION 1102.	 	Election to Redeem; Notice to Trustee.	 	51
	SECTION 1103.	 	Selection by Trustee of Securities to Be Redeemed.	 	51
	SECTION 1104.	 	Notice of Redemption.	 	52
	SECTION 1105.	 	Deposit of Redemption Price.	 	53
	SECTION 1106.	 	Securities Payable on Redemption Date.	 	53
	SECTION 1107.	 	Securities Redeemed in Part.	 	53

vii

 
 
 

ARTICLE TWELVE
  
    SINKING FUNDS    
  

	

SECTION 1201.	
 	

Applicability of Article.	
 	

54
	SECTION 1202.	 	Satisfaction of Sinking Fund Payments with Securities.	 	54
	SECTION 1203.	 	Redemption of Securities for Sinking Fund.	 	54

 
 

ARTICLE THIRTEEN
  
    DEFEASANCE AND COVENANT DEFEASANCE    
  

	

SECTION 1301.	
 	

Company's Option to Effect Defeasance or Covenant Defeasance.	
 	

55
	SECTION 1302.	 	Defeasance and Discharge.	 	55
	SECTION 1303.	 	Covenant Defeasance.	 	55
	SECTION 1304.	 	Conditions to Defeasance or Covenant Defeasance.	 	56
	SECTION 1305.	 	Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions.	 	57
	SECTION 1306.	 	Reinstatement.	 	58

viii

        INDENTURE, dated as of                        , 2002 between Anthem, Inc., a
corporation duly organized and existing under the laws of the State of Indiana (herein called the "Company"),
having its principal office at 120 Monument Circle, Indianapolis, Indiana, 46204, and The Bank of New York, a New York banking corporation, as Trustee (herein called the "Trustee"). 

 
 

RECITALS OF THE COMPANY    

        The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured debentures, notes or
other evidences of indebtedness (herein called the "Securities"), to be issued in one or more series as in this Indenture provided. 

        All
things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done. 

        NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

 
 

ARTICLE ONE
  
    DEFINITIONS AND OTHER PROVISIONS
  OF GENERAL APPLICATION    
  

SECTION
101.    Definitions.

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

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

        (2)
all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; 

        (3)
all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles, and, except as otherwise herein
expressly provided, the term "generally accepted accounting principles" with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted
at the date of such computation; 

        (4)
unless the context otherwise requires, any reference to an "Article" or a "Section" refers to an Article or a Section, as the case may be, of this Indenture; and 

        (5)
the words "herein", "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. 

        "Act",
when used with respect to any Holder, has the meaning specified in Section 104. 

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

        "Authenticating
Agent" means any Person authorized by the Trustee pursuant to Section 614 to act on behalf of the Trustee to authenticate Securities of one or more series. 

 

        "Board
of Directors" means either the board of directors of the Company or any duly authorized committee of that board. 

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

        "Business
Day", when used with respect to any Place of Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place
of Payment are authorized or obligated by law or executive order to close. 

        "Commission"
means the Securities and Exchange Commission, from time to time constituted, created under the Exchange Act, or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 

        "Company"
means the Person named as the "Company" in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter "Company" shall mean such successor Person. 

        "Company
Request" or "Company Order" means a written request or order signed in the name of the Company by its Chairman of the Board, its Vice Chairman of the Board, its President or a
Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 

        "Corporate
Trust Office" means the principal office of the Trustee or the Security Registrar, as the case may be, at which at any particular time its corporate trust business will be
administered, which office as of the date hereof is located at 20 Broad Street, Lower Level, Attn: Corporate Trust Reorg. Department, New York, New York 10005. 

        "corporation"
means a corporation, association, company, joint-stock company or business trust. 

        "Covenant
Defeasance" has the meaning specified in Section 1303. 

        "Defaulted
Interest" has the meaning specified in Section 307. 

        "Defeasance"
has the meaning specified in Section 1302. 

        "Depository"
means, with respect to Securities of any series issuable in whole or in part in the form of one or more Global Securities, a clearing agency registered under the Exchange
Act that is designated to act as Depository for such Securities as contemplated by Section 301. 

        "Event
of Default" has the meaning specified in Section 501. 

        "Exchange
Act" means the Securities Exchange Act of 1934 and any statute successor thereto, in each case as amended from time to time. 

        "Expiration
Date" has the meaning specified in Section 104. 

        "Global
Security" means a Security that evidences all or part of the Securities of any series and bears the legend set forth in Section 204 (or such legend as may be specified as
contemplated by Section 301 for such Securities). 

        "Holder"
means a Person in whose name a Security is registered in the Security Register. 

        "Indenture"
means this instrument as originally executed and as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to
the applicable provisions hereof, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and 

2

 

govern this instrument and any such supplemental indenture, respectively. The term "Indenture" shall also include the terms of particular series of Securities established as contemplated by
Section 301. 

        "interest",
when used with respect to an Original Issue Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity. 

        "Interest
Payment Date", when used with respect to any Security, means the Stated Maturity of an installment of interest on such Security. 

        "Investment
Company Act" means the Investment Company Act of 1940 and any statute successor thereto, in each case as amended from time to time. 

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

        "Notice
of Default" means a written notice of the kind specified in Section 501(4). 

        "Officers'
Certificate" means a certificate signed by the Chairman of the Board, a Vice Chairman of the Board, the President or a Vice President, and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Company, and delivered to the Trustee. One of the officers signing an Officers' Certificate given pursuant to Section 1004 shall be
the principal executive, financial or accounting officer of the Company. 

        "Opinion
of Counsel" means a written opinion of counsel, who may be counsel for the Company, and who shall be acceptable to the Trustee. 

        "Original
Issue Discount Security"means any Security which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502. 

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

        (1)
Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation; 

        (2)
Securities for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set
aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities; provided, however,
that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; 

        (3)
Securities as to which Defeasance has been effected pursuant to Section 1302; and 

        (4)
Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose
hands such Securities are valid obligations of the Company; 

        provided, however, that in determining whether the Holders of the requisite principal
amount of the Outstanding Securities have given, made or taken any request, demand, authorization, direction, notice, consent, waiver or other action hereunder as of any date, (A) the principal
amount of an Original Issue Discount Security which shall be deemed to be Outstanding shall be the amount of the principal thereof which would be due and payable as of such date upon acceleration of
the Maturity thereof to such date pursuant to Section 502, (B) if, as of such date, the principal amount payable at the Stated Maturity of a Security is not determinable, the principal
amount of such Security which shall be 

3

 

deemed to be Outstanding shall be the amount as specified or determined as contemplated by Section 301, (C) the principal amount of a Security denominated in one or more foreign
currencies or currency units which shall be deemed to be Outstanding shall be the U.S. dollar equivalent, determined as of such date in the manner provided as contemplated by Section 301, of
the principal amount of such Security (or, in the case of a Security described in Clause (A) or (B) above, of the amount determined as provided in such Clause), and (D) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent, waiver or other action, only Securities which the Trustee knows
to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor. 

        "Paying
Agent" means any Person authorized by the Company to pay the principal of or any premium or interest on any Securities on behalf of the Company. 

        "Person"
means any individual, corporation, partnership, limited liability company, joint venture, trust, unincorporated organization or government or any agency or political subdivision
of a government or governmental agency. 

        "Place
of Payment", when used with respect to the Securities of any series, means the place or places where the principal of and any premium and interest on the Securities of that series
are payable as specified as contemplated by Section 301. 

        "Predecessor
Security" of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the
purposes of this definition, any Security authenticated and delivered under Section 306 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence
the same debt as the mutilated, destroyed, lost or stolen Security. 

        "Redemption
Date", when used with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 

        "Redemption
Price", when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture. 

        "Regular
Record Date" for the interest payable on any Interest Payment Date on the Securities of any series means the date specified for that purpose as contemplated by
Section 301. 

        "Responsible
Officer", when used with respect to the Trustee, means the chairman or any vice chairman of the board of directors, the chairman or any vice chairman of the executive
committee of the board of directors, the chairman of the trust committee, the president, any vice president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer, the controller or any assistant controller or any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge
of and familiarity with the particular subject. 

        "Securities"
has the meaning stated in the first recital of this Indenture and more particularly means any Securities authenticated and delivered under this Indenture. 

        "Securities
Act" means the Securities Act of 1933 and any statute successor thereto, in each case as amended from time to time. 

4

 

        "Security
Register" and "Security Registrar" have the respective meanings specified in Section 305. 

        "Special
Record Date" for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 307. 

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

        "Subsidiary"
means a corporation more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, "voting stock" means stock which ordinarily has voting power for the election of directors, whether at all times or
only so long as no senior class of stock has such voting power by reason of any contingency. 

        "Trust
Indenture Act" means the Trust Indenture Act of 1939 as in force at the date as of which this instrument was executed; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after such date, "Trust Indenture Act" means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended. 

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

        "U.S.
Government Obligation" has the meaning specified in Section 1304. 

        "Vice
President", when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title
"vice president". 

SECTION
102.    Compliance Certificates and Opinions.

        Upon
any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be required under the Trust Indenture Act. Each such certificate or opinion shall be given in the form of an Officers' Certificate, if to be given by an officer of the Company, or an
Opinion of Counsel, if to be given by counsel, and shall comply with the requirements of the Trust Indenture Act and any other requirements set forth in this Indenture. 

        Every
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include, 

        (1)
a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 

        (2)
a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 

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

        (4)
a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 

5

 

SECTION
103.    Form of Documents Delivered to Trustee.

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

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

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

SECTION
104.    Acts of Holders; Record Dates.

        Any
request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture to be given, made or taken by Holders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agent 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 and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to as the "Act" of the Holders 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 of this Indenture and (subject to Section 601) conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section. 

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

        The
ownership of Securities shall be proved by the Security Register. 

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

        The
Company may set any day as a record date for the purpose of determining the Holders of Outstanding Securities of any series entitled to give, make or take any request, demand,
authorization, 

6

 

direction, notice, consent, waiver or other action provided or permitted by this Indenture to be given, made or taken by Holders of Securities of such series, provided,
however, that the Company may not set a record date for, and the provisions of this paragraph shall not apply with respect to, the giving or making of any notice, declaration,
request or direction referred to in the next paragraph. If any record date is set pursuant to this paragraph, the Holders of Outstanding Securities of the relevant series on such record date, and no
other Holders, shall be entitled to take the relevant action, whether or not such Holders remain Holders after such record date; provided, however, that
no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities of such series on such
record date. Nothing in this paragraph shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with no action by any Person be cancelled and of no effect), and nothing in this paragraph shall be construed to render
ineffective any action taken by Holders of the requisite principal amount of Outstanding Securities of the relevant series on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Trustee in
writing and to each Holder of Securities of the relevant series in the manner set forth in Section 106. 

        The
Trustee may set any day as a record date for the purpose of determining the Holders of Outstanding Securities of any series entitled to join in the giving or making of (i) any
Notice of Default, (ii) any declaration of acceleration referred to in Section 502, (iii) any request to institute proceedings referred to in Section 507(2) or
(iv) any direction referred to in Section 512, in each case with respect to Securities of such series. If any record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of such series on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction, whether or not such Holders remain Holders after such
record date; provided, however, that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders
of the requisite principal amount of Outstanding Securities of such series on such record date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a new record date for
any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person be cancelled and of
no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Securities of the relevant series on the
date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Trustee, at the Company's expense, shall cause notice of such record date, the proposed action by
Holders and the applicable Expiration Date to be given to the Company in writing and to each Holder of Securities of the relevant series in the manner set forth in Section 106. 

        With
respect to any record date set pursuant to this Section, the party hereto which sets such record dates may designate any day as the "Expiration Date" and from time to time may
change the Expiration Date to any earlier or later day; provided, however, that no such change shall be effective unless notice of the proposed new
Expiration Date is given to the other party hereto in writing, and to each Holder of Securities of the relevant series in the manner set forth in Section 106, on or prior to the existing
Expiration Date. If an Expiration Date is not designated with respect to any record date set pursuant to this Section, the party hereto which set such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with respect thereto, subject to its right to change the Expiration Date as provided in this paragraph. Notwithstanding the
foregoing, no Expiration Date shall be later than the 180th day after the applicable record date. 

        Without
limiting the foregoing, a Holder entitled hereunder to take any action hereunder with regard to any particular Security may do so with regard to all or any part of the principal
amount of 

7

 

such Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such principal amount. 

SECTION
105.    Notices, Etc., to Trustee and Company.

        Any
request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to,
or filed with, 

        (1)
the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at its Corporate
Trust Office, Attention: Corporate Trust Administration, or 

        (2)
the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage
prepaid, to the Company addressed to it at the address of its principal office specified in the first paragraph of this instrument or at any other address previously furnished in writing to the
Trustee by the Company. 

SECTION
106.    Notice to Holders; Waiver.

        Where
this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each
Holder affected by such event, at his address as it appears in the Security Register, not later than the latest date (if any), and not earlier than the earliest date (if any), prescribed for the
giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver. 

        In
case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification as shall be made
with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. 

SECTION
107.    Conflict with Trust Indenture Act.

        If
any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture Act which is required under such Act to be a part of and govern this Indenture, the latter
provision shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be. 

SECTION
108.    Effect of Headings and Table of Contents.

        The
Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

SECTION
109.    Successors and Assigns.

        All
covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 

8

 

SECTION
110.    Separability Clause.

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

SECTION
111.    Benefits of Indenture.

        Nothing
in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and the Holders, any benefit or
any legal or equitable right, remedy or claim under this Indenture. 

SECTION
112.    Governing Law.

        This
Indenture and the Securities shall be governed by and construed in accordance with the law of the State of New York. 

SECTION
113.    Legal Holidays.

        In
any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of any Security which specifically states that such provision shall apply in lieu of this Section)) payment of interest or
principal (and premium, if any) need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as
if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity. 

9

  

 
 

ARTICLE TWO
  
    SECURITY FORMS    
  

SECTION
201.    Forms Generally.  

        The Securities of each series shall be in substantially the form set forth in this Article, or in such other form as shall be established by or pursuant to a
Board Resolution or in one or more indentures supplemental hereto, in each case 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 placed thereon as may be required to comply with the rules of any securities exchange or
Depository therefor or as may, consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution thereof. If the form of Securities of any series is
established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to
the Trustee at or prior to the delivery of the Company Order contemplated by Section 303 for the authentication and delivery of such Securities. 

        The
definitive Securities shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities. 

SECTION
202.    Form of Face of Security.  

        [If the Security is a Global Security, insert the legend as required by Section 204.] 

        [Insert any legend required by the Internal Revenue Code and the regulations thereunder.]  

                                        
         

                                        
                                        
 

No.
                                      
$                                 

10

 

        Anthem, Inc.,
a corporation duly organized and existing under the laws of the State of Indiana (herein called the "Company", which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to                        , or registered assigns,
the principal sum of                        Dollars
on                        
[if the Security is to bear interest prior to Maturity, insert—, and to pay interest thereon
from                        or from the
most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually
on                        and                 
       in each year, commencing                        , at
the rate of    % per annum, until the principal hereof is paid or made available for payment [if applicable, insert—, provided,
however that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the rate of            % per annum (to the
extent
that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on
demand]. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be
the                        or                 
       (whether or
not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date,
or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture.][if the Security is not to bear interest prior to Maturity,
insert—. The principal of this Security shall not bear interest except in the case of a default in payment of principal upon acceleration, upon redemption or at
Stated Maturity and in such case the overdue principal and any overdue premium shall bear interest at the rate of    % per annum (to the extent that the payment of such interest shall be
legally enforceable), from the dates such amounts are due until they are paid or made available for payment. Interest on any overdue principal or premium shall be payable on demand. [Any
such interest on overdue principal or premium which is not paid on demand shall bear interest at the rate of    % per annum (to the extent that the payment of such interest on interest
shall be legally enforceable), from the date of such demand until the amount so demanded is paid or made available for payment. Interest on any overdue interest shall be payable on
demand.]] 

        Payment
of the principal of (and premium, if any) and [if applicable, insert—any such] interest on
this Security will be made at the office or agency of the Company maintained for that purpose in The City
of New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts
[if applicable, insert—;  provided,    however, that at the option of the Company
payment of interest may be made by
check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register]. 

        Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth
at this place. 

        Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 

11

 

        In
Witness Whereof, the Company has caused this instrument to be duly executed under its corporate seal. 

	Dated:	 	 	 	 
	

 	
 	

Anthem, Inc.
	

 	
 	

By:	
 	

 Name:

Title:
	

Attest:	
 	

 	
 	

 
	 	 	 	 	 
	
 Name:

Title:	 	 	 	 

SECTION
203.    Form of Reverse of Security.  

        This Security is one of a duly authorized issue of securities of the Company (herein called the "Securities"), issued and to be issued in one or more series under
an Indenture, dated as of            , 2002 (herein called the "Indenture", which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York,
 as
Trustee (herein called the "Trustee", which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof [if applicable,
insert—, limited in aggregate principal amount to
$                        ]. 

        [If applicable, insert—The Securities of this series are subject to redemption at any time, upon not less than
30 days' notice by mail, as a whole or from time to time in part, at the election of the Company [if applicable,
insert—(provided, however, that, if the Company shall have elected pursuant to the Indenture to defease
[the entire indebtedness of this Security][or] [certain restrictive covenants and Events of Defaults with respect to this
Security], prior to making such election to redeem the Securities it shall have deposited in trust amounts sufficient to pay the Redemption Price)], on any date prior to their
Stated Maturity at a Redemption Price equal to the greater of (i) 100% of the principal amount of such Securities to be redeemed, plus accrued interest thereon to the Redemption Date and
(ii) as determined by a Treasury Dealer (as defined below), whose determination shall be binding absent manifest error, the sum of the present values of the remaining scheduled payments of
principal and interest thereon, assuming for this purpose that the Securities remain outstanding until maturity (not including any portion of such payments of interest accrued as of the Redemption
Date) discounted to the Redemption Date on a semiannual compounding basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below),
plus            basis points, together in the case of any such redemption with accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture. 

        "Treasury
Rate" means the semiannual equivalent yield to maturity of the Treasury Security referred to below that corresponds to the Treasury Price referred to below (calculated in
accordance 

12

 

with standard market practice and computed as of the second trading day preceding the Redemption Date). "Treasury Security" means the United States Treasury security that the Treasury Dealer
determines would be appropriate to use, at the time of determination and in accordance with standard market practice, in pricing the Securities being redeemed in a tender offer based on a spread to
United States Treasury yields. "Treasury Price" means the bid-side price for the Treasury Security as of the third trading day preceding the Redemption Date, as set forth in the daily
statistical release (or any successor release) published by the Federal Reserve Bank of New York on that trading day and designated "Composite 3:30 p.m. Quotations for U.S. Government
Securities", except that (i) if that release (or any successor release) is not published or does not contain that price information on that trading day; or (ii) if the Treasury Dealer
determines that price information is not reasonably reflective of the actual bid-side price for the Treasury Security prevailing at 3:30 p.m., New York City time, on that trading
day, then Treasury Price will instead mean the bid-side price for the Treasury Security at or
around 3:30 p.m., New York City time, on that trading day (expressed on a next trading day settlement basis) as determined by the Treasury Dealer through such alternative means as the Treasury
Dealer considers to be appropriate under the circumstances. "Treasury Dealer" means                        (or its successor) or,
if                        (or its successor) refuses to act as Treasury Dealer for
these purposes or ceases to be a primary U.S. Government securities dealer, another nationally recognized investment banking firm that is a primary U.S. Government securities dealers specified by the
Company for these purposes.] 

        [If applicable, insert—The Securities of this series are subject to redemption upon not less than 30 days'
notice by mail, [if applicable, insert—(1) on            in any year commencing with the
year            and ending
with the year    through operation of the sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)] at any time
[if applicable, insert—on or after                        ], as a whole or in
part, at the election of the Company, at the
following Redemption Prices (expressed as percentages of the principal amount): If redeemed [if applicable, insert—on or before
                        and if redeemed] during the 12-month period
beginning            of the years indicated, 

	Year
	 	Redemption Price
	 	Year
	 	Redemption Price

	
	 	 	 	 	 	 

and
thereafter at a Redemption Price equal to            % of the principal amount, together in the case of any such redemption [if applicable,
insert—(whether through operation of the sinking fund or otherwise)] with accrued interest to the Redemption Date, but interest installments whose
Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.] 

        [If applicable, insert—The Securities of this series are subject to redemption upon not less than 30 days'
notice by mail, (1) on            in any year commencing with the year            and ending with the
year            through operation of the sinking fund for this series at the
Redemption Prices for redemption through operation of the sinking fund (expressed as percentages of the principal amount) set forth in the table below, and (2) at any time
[if applicable, insert—on or after                        ], as a whole or in
part, at the election of the
Company, at the Redemption Prices for redemption otherwise than through operation of the sinking fund (expressed as percentages of the principal amount) set forth 

13

 

in the table below: If redeemed during the 12-month period beginning on                        of the years indicated, 

	Year
	 	Redemption Price for Redemption through Operation of the Sinking Fund
	 	Redemption Price for Redemption Otherwise than through Operation of the Sinking Fund

	
	 	 	 	 

and
thereafter at a Redemption Price equal to    % of the principal amount, together in the case of any such redemption (whether through operation of the sinking fund or otherwise) with
accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture.] 

        [If applicable, insert—Notwithstanding the foregoing, the Company may not, prior
to                        , redeem any
Securities of this series as contemplated by [if applicable, insert—Clause (2) of] the preceding paragraph as
a part of, or in anticipation of, any refunding operation by the application, directly or indirectly, of moneys borrowed having an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than            % per annum.] 

        [If applicable, insert—The sinking fund for this series provides for the redemption
on                        in each
year beginning with the year    and ending with the year    of [if applicable, insert—not less than
$                              ("mandatory sinking fund") and not more than]
$                              aggregate principal amount of Securities of this series. Securities
of this
series acquired or redeemed by the Company otherwise than through [if applicable, insert—mandatory] sinking fund
payments may be credited against subsequent [if applicable, insert—mandatory] sinking fund payments otherwise
required to be made [if applicable, insert—, in the inverse order in which they become due].] 

        [If the Security is subject to redemption of any kind, insert—In the event of redemption of this Security in part
only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.] 

        [If applicable, insert—The Indenture contains provisions for defeasance at any time of [the entire
indebtedness of this Security] [or] [certain restrictive covenants and Events of Default with respect to this Security] [, in
each case] upon compliance with certain conditions set forth in the Indenture.] 

        [If the Security is not an Original Issue Discount Security, insert—If an Event of Default with respect to
Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the
Indenture.] 

        [If the Security is an Original Issue Discount Security, insert—If an Event of Default with respect to Securities
of this series shall occur and be continuing, an amount of principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. Such
amount shall be equal to—insert formula for determining the amount. Upon payment (i) of the amount of principal so declared due and
payable and (ii) of interest on any overdue principal, premium and interest (in each case to the extent that the payment of such interest shall be legally enforceable), all of the Company's
obligations in respect of the payment of the principal of and premium and interest, if any, on the Securities of this series shall terminate.] 

        The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the 

14

 

Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time
Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

        As
provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time
Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall
not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute
any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 

        No
reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

        As
provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more
new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

        The
Securities of this series are issuable only in registered form without coupons in denominations of
$                              and any integral multiple thereof. As provided in
the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the same. 

        No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. 

        Prior
to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 

15

 

        All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

SECTION
204.    Form of Legend for Global Securities.  

        Unless otherwise specified as contemplated by Section 301 for the Securities evidenced thereby, every Global Security authenticated and delivered hereunder
shall bear a legend in substantially the following form: 

        THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT
BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITORY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

SECTION
205.    Form of Trustee's Certificate of Authentication.  

        The Trustee's certificates of authentication shall be in substantially the following form: 

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

	

 	
 	

The Bank of New York,
 As Trustee
	

 	
 	
By:	
 	

Authorized Officer

 
 

ARTICLE THREE
  
    THE SECURITIES    
  

SECTION
301.    Amount Unlimited; Issuable in Series.  

        The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited. 

        The
Securities may be issued in one or more series. There shall be established in or pursuant to a Board Resolution and, subject to Section 303, set forth, or determined in the
manner provided, in an Officers' Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series, 

        (1)    the
title of the Securities of the series (which shall distinguish the Securities of the series from Securities of any other series); 

        (2)    any
limit upon the aggregate principal amount of the Securities of the series which may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been authenticated and delivered hereunder); 

16

 

        (3)    the
Person to whom any interest on a Security of the series shall be payable, if other than the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest; 

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

        (5)    the
rate or rates at which any Securities of the series shall bear interest, if any, the date or dates from which any such interest shall accrue, the Interest Payment
Dates on which any such interest shall be payable and the Regular Record Date for any such interest payable on any Interest Payment Date; 

        (6)    the
place or places where the principal of and any premium and interest on any Securities of the series shall be payable; 

        (7)    the
period or periods within which, the price or prices at which and the terms and conditions upon which any Securities of the series may be redeemed, in whole or in
part, at the option of the Company and, if other than by a Board Resolution, the manner in which any election by the Company to redeem the Securities shall be evidenced; 

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

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

        (10)    if
the amount of principal of or any premium or interest on any Securities of the series may be determined with reference to an index or pursuant to a formula, the
manner in which such amounts shall be determined; 

        (11)    if
other than the currency of the United States of America, the currency, currencies or currency units in which the principal of or any premium or interest on any
Securities of the series shall be payable and the manner of determining the equivalent thereof in the currency of the United States of America for any purpose, including for purposes of the definition
of "Outstanding" in Section 101; 

        (12)    if
the principal of or any premium or interest on any Securities of the series is to be payable, at the election of the Company or the Holder thereof, in one or more
currencies or currency units other than that or those in which such Securities are stated to be payable, the currency, currencies or currency units in which the principal of or any premium or interest
on such Securities as to which such election is made shall be payable, the periods within which and the terms and conditions upon which such election is to be made and the amount so payable (or the
manner in which such amount shall be determined); 

        (13)    if
other than the entire principal amount thereof, the portion of the principal amount of any Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 502; 

        (14)    if
the principal amount payable at the Stated Maturity of any Securities of the series will not be determinable as of any one or more dates prior to the Stated
Maturity, the amount which shall be deemed to be the principal amount of such Securities as of any such date for any purpose thereunder or hereunder, including the principal amount thereof which shall
be due and payable upon any Maturity other than the Stated Maturity or which shall be deemed to be 

17

 

Outstanding as of any date prior to the Stated Maturity (or, in any such case, the manner in which such amount deemed to be the principal amount shall be determined); 

        (15)    if
applicable, that the Securities of the series, in whole or any specified part, shall be defeasible pursuant to Section 1302 or Section 1303 or both
such Sections and, if other than by a Board Resolution, the manner in which any election by the Company to defease such Securities shall be evidenced; 

        (16)    if
applicable, that any Securities of the series shall be issuable in whole or in part in the form of one or more Global Securities and, in such case, the respective
Depositories for such Global Securities, the form of any legend or legends which shall be borne by any such Global Security in addition to or in lieu of that set forth in Section 204 and any
circumstances in addition to or in lieu of those set forth in Clause (2) of the last paragraph of Section 305 in which any such Global Security may be exchanged in whole or in part for
Securities registered, and any transfer of such Global Security in whole or in part may be registered, in the name or names of Persons other than the Depository for such Global Security or a nominee
thereof; 

        (17)    any
addition to or change in the Events of Default which applies to any Securities of the series and any change in the right of the Trustee or the requisite Holders of
such Securities to declare the principal amount thereof due and payable pursuant to Section 502; 

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

        (19)    any
other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture, except as permitted by Section 901(5)). 

        All
Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to the Board Resolution referred to
above and (subject to
Section 303) set forth, or determined in the manner provided, in the Officers' Certificate referred to above or in any such indenture supplemental hereto. 

        If
any of the terms of the series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers' Certificate setting forth the terms of the series. 

SECTION
302.    Denominations.

        The
Securities of each series shall be issuable only in registered form without coupons and only in such denominations as shall be specified as contemplated by Section 301. In the
absence of any such specified denomination with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $1,000 and any integral multiple thereof. 

SECTION
303.    Execution, Authentication, Delivery and Dating.

        The
Securities shall be executed on behalf of the Company by its Chairman of the Board, its Vice Chairman of the Board, its President or one of its Vice Presidents, under its corporate
seal reproduced thereon attested by its Secretary or one of its Assistant Secretaries. The signature of any of these officers on the Securities may be manual or facsimile. 

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

18

 

        At
any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been established by or pursuant to one or more Board Resolutions as permitted by Sections 201 and 301, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Section 601) shall be
fully protected in relying upon, an Opinion of Counsel stating, 

        (1)
if the form of such Securities has been established by or pursuant to Board Resolution as permitted by Section 201, that such form has been established in conformity with the
provisions of this Indenture; 

        (2)
if the terms of such Securities have been established by or pursuant to Board Resolution as permitted by Section 301, that such terms have been established in conformity with
the provisions of this Indenture; and 

        (3)
that such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors' rights and to general equity principles. 

If
such form or terms have been so established, the Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee's
own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee. 

        Notwithstanding
the provisions of Section 301 and of the preceding paragraph, if all Securities of a series are not to be originally issued at one time, it shall not be necessary
to deliver the Officers' Certificate otherwise required pursuant to Section 301 or the Company Order and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior
to the authentication of each Security of such series if such documents are delivered at or prior to the authentication upon original issuance of the first Security of such series to be issued. 

        Each
Security shall be dated the date of its authentication. 

        No
Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee by manual signature, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued and sold by the
Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in Section 309, for all purposes of this Indenture such Security shall be deemed never to have
been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture. 

SECTION
304.    Temporary Securities.

        Pending
the preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and
with such 

19

 

appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities. 

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

SECTION
305.    Registration, Registration of Transfer and Exchange.

        The
Company shall cause to be kept at the Corporate Trust Office of the Trustee a register (the register maintained in such office and in any other office or agency of the Company in a
Place of Payment being herein sometimes collectively referred to as the "Security Register") in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby appointed "Security Registrar" for the purpose of registering Securities and transfers of Securities as herein
provided. 

        Upon
surrender for registration of transfer of any Security of a series at the office or agency of the Company in a Place of Payment for that series, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of the same series, of any authorized denominations and of like tenor and
aggregate principal amount. 

        At
the option of the Holder, Securities of any series may be exchanged for other Securities of the same series, of any authorized denominations and of like tenor and aggregate principal
amount, upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive. 

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

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

        No
service charge shall be made for any registration of transfer or exchange of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 304, 906 or 1107 not involving any transfer. 

        If
the Securities of any series (or of any series and specified tenor) are to be redeemed in part, the Company shall not be required (A) to issue, register the transfer of or
exchange any Securities of that series (or of that series and specified tenor, as the case may be) during a period beginning at the opening of business 15 days before the day of the mailing of
a notice of redemption of any such Securities selected for redemption under Section 1103 and ending at the close of business on the day of 

20

 

such mailing, or (B) to register the transfer of or exchange any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part. 

        The
provisions of Clauses (1), (2), (3) and (4) below shall apply only to Global Securities: 

        (1)
Each Global Security authenticated under this Indenture shall be registered in the name of the Depository designated for such Global Security or a nominee thereof and delivered to
such Depository or a nominee thereof or custodian therefor, and each such Global Security shall constitute a single Security for all purposes of this Indenture. 

        (2)
Notwithstanding any other provision in this Indenture, no Global Security may be exchanged in whole or in part for Securities registered, and no transfer of a Global Security in
whole or in part may be registered, in the name of any Person other than the Depository for such Global Security or a nominee thereof unless (A) such Depository (i) has notified the
Company that it is unwilling or unable to continue as Depository for such Global Security or (ii) has ceased to be a clearing agency registered under the Exchange Act, (B) there shall
have occurred and be continuing an Event of Default with respect to such Global Security or (C) there shall exist such circumstances, if any, in addition to or in lieu of the foregoing as have
been specified for this purpose as contemplated by Section 301. 

        (3)
Subject to Clause (2) above, any exchange of a Global Security for other Securities may be made in whole or in part, and all Securities issued in exchange for a Global
Security or any portion thereof shall be registered in such names as the Depository for such Global Security shall direct. 

        (4)
Every Security authenticated and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Security or any portion thereof, whether pursuant to this
Section, Section 304, 306, 906 or 1107 or otherwise, shall be authenticated and delivered in the form of, and shall be, a Global Security, unless such Security is registered in the name of a
Person other than the Depository for such Global Security or a nominee thereof. 

SECTION
306.    Mutilated, Destroyed, Lost and Stolen Securities.

        If
any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 

        If
there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or
indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by
a bona fide purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of the same series and of like
tenor and principal amount and bearing a number not contemporaneously outstanding. 

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

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

        Every
new Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be 

21

 

entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that series duly issued hereunder. 

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

SECTION
307.    Payment of Interest; Interest Rights Preserved.

        Except
as otherwise provided as contemplated by Section 301 with respect to any series of Securities, interest on any Security which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record
Date for such interest. 

        Any
interest on any Security of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called "Defaulted Interest") shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below: 

        (1)
The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing
of the amount of Defaulted Interest proposed to be paid on each Security of such series and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount
of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than
10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of
the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be given to each Holder of Securities of such series in the manner set forth
in Section 106, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such
Special Record Date and shall no longer be payable pursuant to the following Clause (2). 

        (2)
The Company may make payment of any Defaulted Interest on the Securities of any series in any other lawful manner not inconsistent with the requirements of any securities exchange on
which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this Clause,
such manner of payment shall be deemed practicable by the Trustee. 

        Subject
to the foregoing provisions of this Section, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 

22

 

SECTION
308.    Persons Deemed Owners.  

        Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of and any premium and (subject to Section 307) any interest on such
Security and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to
the contrary. 

SECTION
309.    Cancellation.

        All
Securities surrendered for payment, redemption, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities previously
authenticated hereunder which the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by the Trustee. No Securities shall be authenticated in lieu of or in
exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of as directed by a
Company Order. 

23

  

SECTION 310.    Computation of Interest.  

        Except as otherwise specified as contemplated by Section 301 for Securities of any series, interest on the Securities of each series shall be computed on
the basis of a 360-day year of twelve 30-day months. 

 
 

ARTICLE FOUR
  
    SATISFACTION AND DISCHARGE    
  

SECTION
401.    Satisfaction and Discharge of Indenture.  

        This Indenture shall upon Company Request cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of Securities
herein expressly provided for), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when 

        (1)    either

        (A)    all
Securities theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been replaced or paid
as provided in Section 306 and (ii) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust, as provided in Section 1003) have been delivered to the Trustee for cancellation; or 

        (B)    all
such Securities not theretofore delivered to the Trustee for cancellation 

        (i)    have
become due and payable, or 

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

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

and
the Company, in the case of (i), (ii) or (iii) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose money in an amount sufficient
to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and any premium and interest to the date of such deposit (in
the case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; 

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

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

        Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 607, the obligations of the Trustee to any
Authenticating Agent under Section 614 and, if money shall have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of this Section, the obligations of the
Trustee under Section 402 and the last paragraph of Section 1003 shall survive. 

24

 

SECTION
402.    Application of Trust Money.  

        Subject to the provisions of the last paragraph of Section 1003, all money deposited with the Trustee pursuant to Section 401 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying
Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal and any premium and interest for whose payment such money has been deposited with the Trustee. 

 
 

ARTICLE FIVE
  
    REMEDIES    
  

SECTION
501.    Events of Default.  

        "Event of Default", wherever used herein with respect to Securities of any series, means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body): 

        (1)    default
in the payment of any interest upon any Security of that series when it becomes due and payable, and continuance of such default for a period of 30 days;
or 

        (2)    default
in the payment of the principal of or any premium on any Security of that series at its Maturity; or 

        (3)    default
in the deposit of any sinking fund payment, when and as due by the terms of a Security of that series; or 

        (4)    default
in the performance, or breach, of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty a default in whose performance or
whose breach is elsewhere in this Section specifically dealt with or which has expressly been included in this Indenture solely for the benefit of series of Securities other than that series), and
continuance of such default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such
notice is a "Notice of Default" hereunder; or 

        (5)    the
entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company or in an involuntary case or proceeding
under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order adjudging the Company or a bankrupt or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in respect of the Company or under any applicable Federal or State law, or appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial part of the its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree
or order for relief or any such other decree or order unstayed and in effect for a period of 60 consecutive days; or 

        (6)    the
commencement by the Company of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or of
any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree or order for relief in respect of the Company in an involuntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, 

25

 

or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable Federal or State law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of the its property, or
the making by the Company of an assignment for the benefit of creditors, or the admission by the Company in writing of the its inability to pay the its debts generally as they become due, or the
taking of corporate action by the Company in furtherance of any such action; or 

        (7)    any
other Event of Default provided with respect to Securities of that series. 

SECTION
502.    Acceleration of Maturity; Rescission and Annulment.  

        If an Event of Default (other than an Event of Default specified in Section 501(5) or 501(6)) with respect to Securities of any series at the time
Outstanding occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of that series may declare the principal
amount of all the Securities of that series (or, if any Securities of that series are Original Issue Discount Securities, such portion of the principal amount of such Securities as may be specified by
the terms thereof) to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified
amount) shall become immediately due and payable. If an Event of Default specified in Section 501(5) or 501(6) with respect to Securities of any series at the time Outstanding occurs, the
principal amount of all the Securities of that series (or, if any Securities of that series are Original Issue Discount Securities, such portion of the principal amount of such Securities as may be
specified by the terms thereof) shall automatically, and without any declaration or other action on the part of the Trustee or any Holder, become immediately due and payable. 

        At
any time after such a declaration of acceleration with respect to Securities of any series has been made and before a judgment or decree for payment of the money due has been obtained
by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the Outstanding Securities of that series, by written notice to the Company and the Trustee,
may rescind and annul such declaration and its consequences if 

        (1)    the
Company has paid or deposited with the Trustee a sum sufficient to pay 

        (A)    all
overdue interest on all Securities of that series, 

        (B)    the
principal of (and premium, if any, on) any Securities of that series which have become due otherwise than by such declaration of acceleration and any interest
thereon at the rate or rates prescribed therefor in such Securities, 

        (C)    to
the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such Securities, and 

        (D)    all
sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; 

        and

        (2)    all
Events of Default with respect to Securities of that series, other than the non-payment of the principal of Securities of that series which have become
due solely by such declaration of acceleration, have been cured or waived as provided in Section 513. 

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

SECTION
503.    Collection of Indebtedness and Suits for Enforcement by Trustee.  

        The Company covenants that if 

26

 

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

        (2)    default
is made in the payment of the principal of (or premium, if any, on) any Security at the Maturity thereof, 

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

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

SECTION
504.    Trustee May File Proofs of Claim.  

        In case of any judicial proceeding relative to the Company (or any other obligor upon the Securities), its property or its creditors, the Trustee shall be
entitled and empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders and the Trustee
allowed in any such proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607. 

        No
provision of this Indenture shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding; provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a creditors' or other similar committee. 

SECTION
505.    Trustee May Enforce Claims Without Possession of Securities.  

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

SECTION
506.    Application of Money Collected.  

        Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of 

27

 

principal or any premium or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 

        FIRST:
To the payment of all amounts due the Trustee under Section 607; and 

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

SECTION
507.    Limitation on Suits.  

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

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

        (2)    the
Holders of not less than 25% in principal amount of the Outstanding Securities of that series shall have made written request to the Trustee to institute proceedings
in respect of such Event of Default in its own name as Trustee hereunder; 

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

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

        (5)    no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount
of the Outstanding Securities of that series; 

it
being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all of such Holders. 

SECTION
508.    Unconditional Right of Holders to Receive Principal, Premium and Interest.  

        Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of
the principal of and any premium and (subject to Section 307) interest on such Security on the respective Stated Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 

SECTION
509.    Restoration of Rights and Remedies.  

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

28

 

SECTION
510.    Rights and Remedies Cumulative.  

        Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of
Section 306, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of
any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 

SECTION
511.    Delay or Omission Not Waiver.  

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

SECTION
512.    Control by Holders.  

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

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

        (2)    the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction. 

SECTION
513.    Waiver of Past Defaults.  

        The Holders of not less than a majority in principal amount of the Outstanding Securities of any series may on behalf of the Holders of all the Securities of such
series waive any past default hereunder with respect to such series and its consequences, except a default 

        (1)    in
the payment of the principal of or any premium or interest on any Security of such series, or 

        (2)    in
respect of a covenant or provision hereof which under Article Nine cannot be modified or amended without the consent of the Holder of each Outstanding Security of
such series affected. 

        Upon
any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon. 

SECTION
514.    Undertaking for Costs.  

        In any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, a court may require any party litigant in such suit to file an undertaking to pay the costs of such suit, and may assess costs against any such party litigant, in the manner and to the extent
provided in the Trust Indenture Act; provided, however, that neither this Section nor the Trust Indenture Act shall be deemed to authorize any court to
require such an undertaking or to make such an assessment in any suit instituted by the Company. 

29

 

SECTION
515.    Waiver of Usury, Stay or Extension Laws.  

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

30

  

 
 

ARTICLE SIX
  
    THE TRUSTEE    
  

SECTION
601.    Certain Duties and Responsibilities.

        The
duties and responsibilities of the Trustee shall be as provided by the Trust Indenture Act. Notwithstanding the foregoing, no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. Whether or not therein expressly so provided, every
provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section. 

SECTION
602.    Notice of Defaults.

        If
a default occurs hereunder with respect to Securities of any series, the Trustee shall give the Holders of Securities of such series notice of such default as and to the extent
provided by the Trust Indenture Act; provided, however, that in the case of any default of the character specified in Section 501(4) with respect
to Securities of such series, no such notice to Holders shall be given until at least 30 days after the occurrence thereof. For the purpose of this Section, the term "default" means any event
which is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of such series. 

SECTION
603.    Certain Rights of Trustee.

        Subject
to the provisions of Section 601: 

        (1)
the Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 

        (2)
any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order, and any resolution of the Board of Directors shall be
sufficiently evidenced by a Board Resolution; 

        (3)
whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officers' Certificate; 

        (4)
the Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 

        (5)
the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this
Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such
request or direction; 

        (6)
the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into
such facts or 

31

 

matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and 

        (7)
the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 

SECTION
604.    Not Responsible for Recitals or Issuance of Securities.

        The
recitals contained herein and in the Securities, except the Trustee's certificates of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities. Neither the
Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of Securities or the proceeds thereof. 

SECTION
605.    May Hold Securities.

        The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent. 

SECTION
606.    Money Held in Trust.

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

SECTION
607.    Compensation and Reimbursement.

        The
Company agrees 

        (1)
to pay to the Trustee from time to time reasonable compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard
to the compensation of a trustee of an express trust); 

        (2)
except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith; and 

        (3)
to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection
with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. 

SECTION
608.    Conflicting Interests.

        If
the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in
the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture. To the extent permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being 

32

 

a trustee under the indenture pursuant to which Anthem's 6.00% Equity Security Units are outstanding. 

SECTION
609.    Corporate Trustee Required; Eligibility.

        There
shall at all times be one (and only one) Trustee hereunder with respect to the Securities of each series, which may be Trustee hereunder for Securities of one or more other series.
Each Trustee shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000 and has its Corporate Trust Office in
the United States of America. If any such Person publishes reports of condition at least annually, pursuant to law or to the requirements of its supervising or examining authority, then for the
purposes of this Section and to the extent permitted by the Trust Indenture Act, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. If at any time the Trustee with respect to the Securities of any series shall cease to be eligible in accordance with the provisions of this Section,
it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 

SECTION
610.    Resignation and Removal; Appointment of Successor.

        No
resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor
Trustee in accordance with the applicable requirements of Section 611. 

        The
Trustee may resign at any time with respect to the Securities of one or more series by giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court
of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 

        The
Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company. 

        If
at any time: 

        (1)
the Trustee shall fail to comply with Section 608 after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six
months, or 

        (2)
the Trustee shall cease to be eligible under Section 609 and shall fail to resign after written request therefor by the Company or by any such Holder, or 

        (3)
the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer
shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 

then,
in any such case, (A) the Company by a Board Resolution may remove the Trustee with respect to all Securities, or (B) subject to Section 514, any Holder who has been a bona
fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect
to all Securities and the appointment of a successor Trustee or Trustees. 

        If
the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, with respect to the Securities of one or more
series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such successor
Trustee may be appointed 

33

 

with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series) and shall comply with
the
applicable requirements of Section 611. If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the
Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 611, become the successor Trustee with respect
to the Securities of such series and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any series shall have been so
appointed by the Company or the Holders and accepted appointment in the manner required by Section 611, any Holder who has been a bona fide Holder of a Security of such series for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series. 

        The
Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series to all Holders of Securities of such series in the manner provided in Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office. 

SECTION
611.    Acceptance of Appointment by Successor.

        In
case of the appointment hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor Trustee,
such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall
duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. 

        In
case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor
Trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which
(1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of
that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) 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 trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any
other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each
such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates; but, on 

34

 

request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder
with respect to the Securities of that or those series to which the appointment of such successor Trustee relates. 

        Upon
request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such
rights, powers and trusts referred to in the first or second preceding paragraph, as the case may be. 

        No
successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article. 

SECTION
612.    Merger, Conversion, Consolidation or Succession to Business.

        Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any
Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. 

SECTION
613.    Preferential Collection of Claims Against Company.

        If
and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor). 

SECTION
614.    Appointment of Authenticating Agent.

        The
Trustee may appoint an Authenticating Agent or Agents with respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon original issue and upon exchange, registration of transfer or partial redemption thereof or pursuant to Section 306, and Securities so authenticated shall
be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee's certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee
by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at
all times be a corporation organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by Federal or State authority. If such Authenticating Agent publishes
reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of
such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section. 

35

 

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

        An
Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and
shall give notice of such appointment in the manner provided in Section 106 to all Holders of Securities of the series with respect to which such Authenticating Agent will serve. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section. 

        The
Trustee agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section, and the Trustee shall be entitled to be reimbursed
for such payments, subject to the provisions of Section 607. 

        If
an appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed thereon, in addition to the Trustee's certificate
of authentication, an alternative certificate of authentication in the following form: 

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

	Dated:	 	 	 	 	 	 	 
	 	
	 	 	 	 	 	The Bank of New York,
 As Trustee
	

 	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	 	
As Authenticating Agent
	

 	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	 	
Authorized Officer

36

  

 
 

ARTICLE SEVEN
  
    HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY    
  

SECTION
701.    Company to Furnish Trustee Names and Addresses of Holders.  

        The Company will furnish or cause to be furnished to the Trustee 

        (1)    semi-annually,
not later than January 15 and July 15 in each year, a list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Securities of each series as of the preceding January 1 or July 1, as the case may be, and 

        (2)    at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is furnished; 

excluding from any such list names and addresses received by the Trustee in its capacity as Security Registrar. 

SECTION
702.    Preservation of Information; Communications to Holders.  

        The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to
the Trustee as provided in Section 701 and the names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as
provided in Section 701 upon receipt of a new list so furnished. 

        The
rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Securities, and the corresponding rights and privileges of the
Trustee, shall be as provided by the Trust Indenture Act. 

        Every
Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be
held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant to the Trust Indenture Act. 

SECTION
703.    Reports by Trustee.  

        The Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture
Act at the times and in the manner provided pursuant thereto. 

        A
copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any Securities are listed, with the Commission
and with the Company. The Company will notify the Trustee when any Securities are listed on any stock exchange. 

SECTION
704.    Reports by Company.  

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

37

 

 
 

ARTICLE EIGHT
  
    CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE    
  

        SECTION 801.    Company May Consolidate, Etc., Only on Certain Terms.  

        The Company shall not consolidate with or merge into any other Person or convey, transfer or lease its properties and assets substantially as an entirety to any
Person, and the Company shall not permit any Person to consolidate with or merge into the Company or convey, transfer or lease its properties and assets substantially as an entirety to the Company,
unless: 

        (1)    in
case the Company shall consolidate with or merge into another Person or convey, transfer or lease substantially all of its properties and assets as an entirety to any
Person, the Person formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer, or which leases substantially all of the properties and
assets of the Company as an entirety shall be a corporation, partnership, limited liability company or trust, shall be organized and validly existing under the laws of the United States of America,
any State thereof or the District of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and
punctual payment of the principal of and any premium and interest on all the Securities and the performance or observance of every covenant of this Indenture on the part of the Company to be performed
or observed; 

        (2)    immediately
after giving effect to such transaction and treating any indebtedness which becomes an obligation of the Company or any Subsidiary as a result of such
transaction as having been incurred by the Company or such Subsidiary at the time of such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an
Event of Default, shall have happened and be continuing; and 

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

SECTION
802.    Successor Substituted.  

        Upon any consolidation of the Company with, or merger of the Company into, any other Person or any conveyance, transfer or lease of the properties and assets of
the Company substantially as an entirety in accordance with Section 801, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had
been named as the Company herein, and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all obligations and covenants under this Indenture and the Securities. 

38

 

 
 

ARTICLE NINE
  
    SUPPLEMENTAL INDENTURES    
  

SECTION
901.    Supplemental Indentures without Consent of Holders.  

        Without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or
more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 

        (1)    to
evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company herein and in the Securities; or 

        (2)    to
add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit of less than
all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the Company; or 

        (3)    to
add any additional Events of Default for the benefit of the Holders of all or any series of Securities (and if such additional Events of Default are to be for the
benefit of less than all series of Securities, stating that such additional Events of Default are expressly being included solely for the benefit of such series); or 

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

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

        (6)    to
secure the Securities; or 

        (7)    to
establish the form or terms of Securities of any series as permitted by Sections 201 and 301; or 

        (8)    to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change
any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of
Section 611; or 

        (9)    to
cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture, provided that such action pursuant to this Clause (9) shall not
adversely affect the interests of the Holders of Securities of any series. 

SECTION
902.    Supplemental Indentures with Consent of Holders.  

        With the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series affected by such supplemental
indenture, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of
Securities of such series under this Indenture; 

39

 

 provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security affected thereby, 

        (1)    change
the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the principal amount thereof or the rate of
interest thereon or any premium payable upon the redemption thereof, or reduce the amount of the principal of an Original Issue Discount Security or any other Security which would be due and payable
upon a declaration of acceleration of the Maturity thereof pursuant to Section 502, or change any Place of Payment where, or the coin or currency in which, any Security or any premium or
interest thereon is payable, or impair
the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or 

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

        (3)    modify
any of the provisions of this Section, Section 513 or Section 1008, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby; provided,
however, that this clause shall not be deemed to require the consent of any Holder with respect to changes in the references to "the Trustee" and concomitant changes in this
Section and Section 1008, or the deletion of this proviso, in accordance with the requirements of Sections 611 and 901(8). 

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

        It
shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall
approve the substance thereof. 

SECTION
903.    Execution of Supplemental Indentures.  

        In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture which affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise. 

SECTION
904.    Effect of Supplemental Indentures.  

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

SECTION
905.    Conformity with Trust Indenture Act.  

        Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act. 

40

 

SECTION
906.    Reference in Securities to Supplemental Indentures.  

        Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series. 

 
 

ARTICLE TEN
  
    COVENANTS    
  

SECTION
1001.    Payment of Principal, Premium and Interest.  

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

SECTION
1002.    Maintenance of Office or Agency.  

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

        The
Company may also from time to time designate one or more other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in each Place of Payment for Securities of any series for such purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such other office or agency. 

SECTION
1003.    Money for Securities Payments to Be Held in Trust.  

        If the Company shall at any time act as its own Paying Agent with respect to any series of Securities, it will, on or before each due date of the principal of or
any premium or interest on any of the Securities of that series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal and any premium and
interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure so to act. 

        Whenever
the Company shall have one or more Paying Agents for any series of Securities, it will, prior to each due date of the principal of or any premium or interest on any Securities
of that series, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of its action or failure so to act. 

41

 

        The
Company will cause each Paying Agent for any series of Securities other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying Agent will (1) comply with the provisions of the Trust Indenture Act applicable to it as a Paying Agent and
(2) during the continuance of any default by the Company (or any other obligor upon the Securities of that series) in the making of any payment in respect of the Securities of that series, upon
the written request of the Trustee,
forthwith pay to the Trustee all sums held in trust by such Paying Agent for payment in respect of the Securities of that series. 

        The
Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to
pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; 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. 

        Any
money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of or any premium or interest on any Security of any
series and remaining unclaimed for two years after such principal, premium or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company)
shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee
or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in New York, New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company. 

SECTION
1004.    Statement by Officers as to Default.  

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

SECTION
1005.    Existence.  

        Subject to Article Eight, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights
(charter and statutory) and franchises; provided, however, that the Company shall not be required to preserve any such right or franchise if the Board
of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect
to the Holders. 

SECTION
1006.    Maintenance of Properties.  

        The Company will cause all properties used or useful in the conduct of its business or the business of any Subsidiary to be maintained and kept in good condition,
repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment
of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at 

42

 

all times; provided, however, that nothing in this Section shall prevent the Company from discontinuing the operation or maintenance of any of such
properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business or the business of any Subsidiary and not disadvantageous in any material respect to the
Holders. 

SECTION
1007.    Payment of Taxes and Other Claims.  

        The Company will pay or discharge or cause to be paid or discharged, before the same shall become delinquent, (1) all taxes, assessments and governmental
charges levied or imposed upon the Company or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary, and (2) all lawful claims for labor, materials and
supplies which, if unpaid, might by law become a lien upon the property of the Company or any Subsidiary; provided, however, that the Company shall not
be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate
proceedings. 

SECTION
1008.    Waiver of Certain Covenants.  

        Except as otherwise specified as contemplated by Section 301 for Securities of such series, the Company may, with respect to the Securities of any series,
omit in any particular instance to comply with any term, provision or condition set forth in any covenant provided pursuant to Section 301(18), 901(2) or 901(7) for the benefit of the Holders
of such series, if before the time for such compliance the Holders of at least a majority in principal amount of the Outstanding Securities of such series shall, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such term, provision or condition, but no such waiver shall extend to or affect such term, provision or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such term, provision or condition shall remain
in full force and effect. 

43

  

 
 

ARTICLE ELEVEN
  
    REDEMPTION OF SECURITIES    
  

SECTION
1101.    Applicability of Article.

        Securities
of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by
Section 301 for such Securities) in accordance with this Article. 

SECTION
1102.    Election to Redeem; Notice to Trustee.

        The
election of the Company to redeem any Securities shall be evidenced by a Board Resolution or in another manner specified as contemplated by Section 301 for such Securities. In
case of any redemption at the election of the Company of less than all the Securities of any series (including any such redemption affecting only a single Security), the Company shall, at least
60 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date, of the principal amount of
Securities of such series to be redeemed and, if applicable, of the tenor of the Securities to be redeemed. In the case of any redemption of Securities prior to the expiration of any restriction on
such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers' Certificate evidencing compliance with such
restriction. 

SECTION
1103.    Selection by Trustee of Securities to Be Redeemed.

        If
less than all the Securities of any series are to be redeemed (unless all the Securities of such series and of a specified tenor are to be redeemed or unless such redemption affects
only a single Security), the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such
series not previously called
for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of a portion of the principal amount of any Security of such
series, provided, however, that the unredeemed portion of the principal amount of any Security shall be in an authorized denomination (which shall not
be less than the minimum authorized denomination) for such Security. If less than all the Securities of such series and of a specified tenor are to be redeemed (unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series
and specified tenor not previously called for redemption in accordance with the preceding sentence. 

        The
Trustee shall promptly notify the Company in writing of the Securities selected for redemption as aforesaid and, in case of any Securities selected for partial redemption as
aforesaid, the principal amount thereof to be redeemed. 

        The
provisions of the two preceding paragraphs shall not apply with respect to any redemption affecting only a single Security, whether such Security is to be redeemed in whole or in
part. In the case of any such redemption in part, the unredeemed portion of the principal amount of the Security shall be in an authorized denomination (which shall not be less than the minimum
authorized denomination) for such Security. 

        For
all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Securities redeemed or
to be redeemed only in part, to the portion of the principal amount of such Securities which has been or is to be redeemed. 

44

 

SECTION
1104.    Notice of Redemption.

        Notice
of redemption shall be given by first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities
to be redeemed, at his address appearing in the Security Register. 

        All
notices of redemption shall state: 

        (1)
the Redemption Date, 

        (2)
the Redemption Price, 

        (3)
if less than all the Outstanding Securities of any series consisting of more than a single Security are to be redeemed, the identification (and, in the case of partial redemption of
any such Securities, the principal amounts) of the particular Securities to be redeemed and, if less than all the Outstanding Securities of any series consisting of a single Security are to be
redeemed, the principal amount of the particular Security to be redeemed, 

        (4)
that on the Redemption Date the Redemption Price will become due and payable upon each such Security to be redeemed and, if applicable, that interest thereon will cease to accrue on
and after said date, 

        (5)
the place or places where each such Security is to be surrendered for payment of the Redemption Price, and 

        (6)
that the redemption is for a sinking fund, if such is the case. 

        Notice
of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company's request, by the Trustee in the name and at the expense
of the Company and shall be irrevocable. 

SECTION
1105.    Deposit of Redemption Price.

        Prior
to any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities which are to be redeemed on that date. 

SECTION
1106.    Securities Payable on Redemption Date.

        Notice
of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and
from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company at the
Redemption Price, together with accrued interest to the Redemption Date; provided, however, that, unless otherwise specified as contemplated by
Section 301, installments of interest whose Stated Maturity is on or prior to the Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant Record Dates according to their terms and the provisions of Section 307. 

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

45

 

SECTION
1107.    Securities Redeemed in Part.

        Any
Security which is to be redeemed only in part shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series and of like tenor, of any authorized denomination as
requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. 

 
 

ARTICLE TWELVE
  
    SINKING FUNDS    
  

SECTION
1201.    Applicability of Article.

        The
provisions of this Article shall be applicable to any sinking fund for the retirement of Securities of any series except as otherwise specified as contemplated by Section 301
for such Securities. 

        The
minimum amount of any sinking fund payment provided for by the terms of any Securities is herein referred to as a "mandatory sinking fund payment", and any payment in excess of such
minimum amount provided for by the terms of such Securities is herein referred to as an "optional
sinking fund payment". If provided for by the terms of any Securities, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 1202. Each sinking fund
payment shall be applied to the redemption of Securities as provided for by the terms of such Securities. 

SECTION
1202.    Satisfaction of Sinking Fund Payments with Securities.

        The
Company (1) may deliver Outstanding Securities of a series (other than any previously called for redemption) and (2) may apply as a credit Securities of a series which
have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to any Securities of such series required to be made pursuant to the terms of such Securities as
and to the extent provided for by the terms of such Securities; provided, however, that the Securities to be so credited have not been previously so
credited. The Securities to be so credited shall be received and credited for such purpose by the Trustee at the Redemption Price, as specified in the Securities so to be redeemed, for redemption
through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. 

SECTION
1203.    Redemption of Securities for Sinking Fund.

        Not
less than 90 days prior to each sinking fund payment date for any Securities, the Company will deliver to the Trustee an Officers' Certificate specifying the amount of the
next ensuing sinking fund payment for such Securities pursuant to the terms of such Securities, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting Securities pursuant to Section 1202 and will also deliver to the Trustee any Securities to be so delivered. Not less than
45 days prior to each such sinking fund payment date, the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 1103
and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner stated in Sections 1106 and 1107. 

46

 

 
 

ARTICLE THIRTEEN
  
    DEFEASANCE AND COVENANT DEFEASANCE    
  

SECTION
1301.    Company's Option to Effect Defeasance or Covenant Defeasance.

        The
Company may elect, at its option at any time, to have Section 1302 or Section 1303 applied to any Securities or any series of Securities, as the case may be, designated
pursuant to Section 301 as being defeasible pursuant to such Section 1302 or 1303, in accordance with any applicable requirements provided pursuant to Section 301 and upon
compliance with the conditions set forth below in this Article. Any such election shall be evidenced by a Board Resolution or in another manner specified as contemplated by Section 301 for such
Securities. 

SECTION
1302.    Defeasance and Discharge.

        Upon
the Company's exercise of its option (if any) to have this Section applied to any Securities or any series of Securities, as the case may be, the Company shall be deemed to have
been discharged from its obligations with respect to such Securities as provided in this Section on and after the date the conditions set forth in Section 1304 are satisfied (hereinafter called
"Defeasance"). For this purpose, such Defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by such Securities and to have satisfied all its
other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the
same), subject to the following which shall survive until otherwise terminated or discharged hereunder: (1) the rights of Holders of such Securities to receive, solely from the trust fund
described in Section 1304 and as more fully set forth in such Section, payments in respect of the principal of and any premium and interest on such Securities when payments are due,
(2) the Company's obligations with respect to such Securities under Sections 304, 305, 306, 1002 and 1003, (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder
and (4) this Article. Subject to compliance with this Article, the Company may exercise its option (if any) to have this Section applied to any Securities notwithstanding the prior exercise of
its option (if any) to have Section 1303 applied to such Securities. 

SECTION
1303.    Covenant Defeasance.

        Upon
the Company's exercise of its option (if any) to have this Section applied to any Securities or any series of Securities, as the case may be, (1) the Company shall be
released from its obligations under Sections 1006 through 1007, inclusive, and any covenants provided pursuant to Sections 301(18), 901(2) or 901(7) for the benefit of the Holders of such
Securities and (2) the occurrence of any event specified in Sections 501(4) (with respect to any of Sections 1006 through 1007, inclusive, and any such covenants provided pursuant to
Section 301(18), 901(2) or 901(7)) and 501(7) shall be deemed not to be or result in an Event of Default, in each case with respect to such Securities as provided in this Section on and after
the date the conditions set forth in Section 1304 are satisfied (hereinafter called "Covenant Defeasance"). For this purpose, such Covenant Defeasance means that, with respect to such
Securities, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such specified Section (to the extent so specified in the
case of Section 501(4)), whether directly or indirectly by reason of any reference elsewhere herein to any such
Section or by reason of any reference in any such Section to any other provision herein or in any other document, but the remainder of this Indenture and such Securities shall be unaffected thereby. 

SECTION
1304.    Conditions to Defeasance or Covenant Defeasance.

        The
following shall be the conditions to the application of Section 1302 or Section 1303 to any Securities or any series of Securities, as the case may be: 

        (1)
The Company shall irrevocably have deposited or caused to be deposited with the Trustee (or another trustee which satisfies the requirements contemplated by Section 609 and
agrees to 

47

 

comply with the provisions of this Article applicable to it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to,
the benefits of the Holders of such Securities, (A) money in an amount, or (B) U.S. Government Obligations which through the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount, or (C) a combination thereof, in each case sufficient, in the
opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the
Trustee (or any such other qualifying trustee) to pay and discharge, the principal of and any premium and interest on such Securities on the respective Stated Maturities, in accordance with the terms
of this Indenture and such Securities. As used herein, "U.S. Government Obligation" means (x) any security which is (i) a direct obligation of the United States of America for the
payment of which the full faith and credit of the United States of America is pledged or (ii) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of
the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case (i) or (ii), is not
callable or redeemable at the option of the issuer thereof, and (y) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with
respect to any U.S. Government Obligation which is specified in Clause (x) above and held by such bank for the account of the holder of such depositary receipt, or with respect to any specific
payment of principal of or interest on any U.S. Government Obligation which is so specified and held, provided, however, that (except as required by
law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of principal or interest evidenced by such depositary receipt. 

        (2)
In the event of an election to have Section 1302 apply to any Securities or any series of Securities, as the case may be, the Company shall have delivered to the Trustee an
Opinion of Counsel stating that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since the date of this instrument, there
has been a change in the applicable Federal income tax law, in either case (A) or (B) to the effect that, and based thereon such opinion shall confirm that, the Holders of such
Securities will not recognize gain or loss for Federal income tax purposes as a result of the deposit, Defeasance and discharge to be effected with respect to such Securities and will
be subject to Federal income tax on the same amount, in the same manner and at the same times as would be the case if such deposit, Defeasance and discharge were not to occur. 

        (3)
In the event of an election to have Section 1303 apply to any Securities or any series of Securities, as the case may be, the Company shall have delivered to the Trustee an
Opinion of Counsel to the effect that the Holders of such Securities will not recognize gain or loss for Federal income tax purposes as a result of the deposit and Covenant Defeasance to be effected
with respect to such Securities and will be subject to Federal income tax on the same amount, in the same manner and at the same times as would be the case if such deposit and Covenant Defeasance were
not to occur. 

        (4)
The Company shall have delivered to the Trustee an Officers' Certificate to the effect that neither such Securities nor any other Securities of the same series, if then listed on any
securities exchange, will be delisted as a result of such deposit. 

        (5)
No event which is, or after notice or lapse of time or both would become, an Event of Default with respect to such Securities or any other Securities shall have occurred and be
continuing at the time of such deposit or, with regard to any such event specified in Sections 

48

 

501(6) and (7), at any time on or prior to the 90th day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until after such 90th day). 

        (6)
Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting interest within the meaning of the Trust Indenture Act (assuming all Securities are in
default within the meaning of such Act). 

        (7)
Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any other agreement or instrument to which the Company is a party
or by which it is bound. 

        (8)
Such Defeasance or Covenant Defeasance shall not result in the trust arising from such deposit constituting an investment company within the meaning of the Investment Company Act
unless such trust shall be registered under such Act or exempt from registration thereunder. 

        (9)
The Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent with respect to such Defeasance or
Covenant Defeasance have been complied with. 

SECTION
1305.    Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions.

        Subject
to the provisions of the last paragraph of Section 1003, all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee or other
qualifying trustee (solely for purposes of this Section and Section 1306, the Trustee and any such other trustee are referred to collectively as the "Trustee") pursuant to Section 1304
in respect of any Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any
such Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Securities, of all sums due and to become due thereon in respect of
principal and any premium and interest, but money so held in trust need not be segregated from other funds except to the extent required by law. 

        The
Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited pursuant to
Section 1304 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of Outstanding Securities. 

        Anything
in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon Company Request any money or U.S. Government Obligations
held by it as provided in Section 1304 with respect to any Securities which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect the Defeasance or Covenant Defeasance, as the case may be,
with respect to such Securities. 

SECTION
1306.    Reinstatement.

        If
the Trustee or the Paying Agent is unable to apply any money in accordance with this Article with respect to any Securities by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the obligations under this Indenture and such Securities from which the Company has been discharged or
released pursuant to Section 1302 or 1303 shall be revived and reinstated as though no deposit had occurred pursuant to this Article with respect to such Securities, until such time as the
Trustee or Paying Agent is permitted to apply all money held in trust pursuant to Section 1305 with respect to such Securities in accordance with this Article; provided,
however, that if the Company makes any payment of principal of or any premium or interest on any such Security following such reinstatement of its obligations, the Company 

49

 

shall be subrogated to the rights (if any) of the Holders of such Securities to receive such payment from the money so held in trust. 

        This
instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one
and the same instrument. 

        In
Witness Whereof, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written. 

	 	 	ANTHEM, INC.
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

Attest:
	

 	
 	

	

 	
 	

 	

 
	 	 	THE BANK OF NEW YORK,

    as Trustee
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

50

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ANTHEM, INC. TO THE BANK OF NEW YORK Trustee

Indenture

Dated as of , 2002

Certain Sections of this Indenture relating to Sections 310 through 318, inclusive, of the Trus t Indenture Act of 1939

TABLE OF CONTENTS

ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

ARTICLE TWO SECURITY FORMS

ARTICLE THREE THE SECURITIES

ARTICLE FOUR SATISFACTION AND DISCHARGE

ARTICLE FIVE REMEDIES

ARTICLE SIX THE TRUSTEE

ARTICLE SEVEN HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

ARTICLE EIGHT CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

ARTICLE NINE SUPPLEMENTAL INDENTURES

ARTICLE TEN COVENANTS

ARTICLE ELEVEN REDEMPTION OF SECURITIES

ARTICLE TWELVE SINKING FUNDS

ARTICLE THIRTEEN DEFEASANCE AND COVENANT DEFEASANCE

RECITALS OF THE COMPANY

ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

ARTICLE TWO SECURITY FORMS

ARTICLE THREE THE SECURITIES

ARTICLE FOUR SATISFACTION AND DISCHARGE

ARTICLE FIVE REMEDIES

ARTICLE SIX THE TRUSTEE

ARTICLE SEVEN HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

ARTICLE EIGHT CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

ARTICLE NINE SUPPLEMENTAL INDENTURES

ARTICLE TEN COVENANTS

ARTICLE ELEVEN REDEMPTION OF SECURITIES

ARTICLE TWELVE SINKING FUNDS

ARTICLE THIRTEEN DEFEASANCE AND COVENANT DEFEASANCE

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