Document:

Exhibit
4.10

 

 

FORM
OF SUBORDINATED INDENTURE

 

 

 

ABGENIX,
INC.

Issuer

 

 

and

 

 

U.S.
BANK NATIONAL ASSOCIATION

Trustee

 

 

SUBORDINATED
INDENTURE

 

 

Dated as of
        , 2004

 

 

 

 

ABGENIX, INC.

Reconciliation
and tie between Trust Indenture Act of 1939 and

Indenture, dated as of         , 2004

 

	
  Trust
  Indenture Act Section

  	
   

  	
  Indenture
  Section

  
	
   

  	
   

  	
   

  
	
  §310

  	
  (a)(1)

  	
   

  	
  6.09

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
   

  	
  (b)

  	
   

  	
  6.08

  
	
   

  	
   

  	
   

  	
  6.10

  
	
  §311

  	
  (a)

  	
   

  	
  6.13

  
	
   

  	
  (b)

  	
   

  	
  6.13

  
	
  §312

  	
  (a)

  	
   

  	
  7.01

  
	
   

  	
   

  	
   

  	
  7.02(a)

  
	
   

  	
  (b)

  	
   

  	
  7.02(b)

  
	
   

  	
  (c)

  	
   

  	
  7.02(c)

  
	
  §313

  	
  (a)

  	
   

  	
  7.03(a)

  
	
   

  	
  (b)

  	
   

  	
  7.03(b)

  
	
   

  	
  (c)

  	
   

  	
  7.03(a)

  
	
   

  	
   

  	
   

  	
  7.03(b

  
	
   

  	
  (d)

  	
   

  	
  7.03(c)

  
	
  §314

  	
  (a)

  	
   

  	
  7.04

  
	
   

  	
  (c)(1)

  	
   

  	
  1.02

  
	
   

  	
  (c)(2)

  	
   

  	
  1.02

  
	
   

  	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
  (d)

  	
   

  	
  Not Applicable

  
	
   

  	
  (e)

  	
   

  	
  1.02

  
	
  §315

  	
  (a)

  	
   

  	
  6.01(a)

  
	
   

  	
  (b)

  	
   

  	
  6.02

  
	
   

  	
  (c)

  	
   

  	
  6.01(b)

  
	
   

  	
  (d)

  	
   

  	
  6.01(c)

  
	
   

  	
  (d)(1)

  	
   

  	
  6.01(c)

  
	
   

  	
  (d)(2)

  	
   

  	
  6.01(c)(2)

  
	
   

  	
  (d)(3)

  	
   

  	
  6.01(c)(3)

  
	
   

  	
  (e)

  	
   

  	
  5.09

  
	
  §316

  	
  (a)

  	
   

  	
  5.08

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  5.08

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  5.02

  
	
   

  	
   

  	
   

  	
  5.08

  
	
   

  	
  (a)(2)

  	
  Not Applicable

  
	
   

  	
  (b)

  	
   

  	
  5.05

  
	
  §317

  	
  (a)(1)

  	
   

  	
  5.03

  
	
   

  	
  (a)(2)

  	
   

  	
  5.03

  
	
   

  	
  (b)

  	
   

  	
  10.03

  
	
  §318

  	
  (a)

  	
   

  	
  1.07

  
						

 

	
   

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

  

 

 

Table of Contents

 

	
  ARTICLE ONE 

  	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  1.01. Definitions

  	
   

  
	
   

  	
   

  	
  SECTION 1.02. Acts of Holders

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  TWO 

  	
  SECURITY
  FORMS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION 2.01. Forms Generally

  	
   

  
	
   

  	
   

  	
  SECTION 2.02. Form of Trustee’s Certificate
  of Authentication

  	
   

  
	
   

  	
   

  	
  SECTION 2.03. Securities in Global Form

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  THREE 

  	
  THE
  SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION 3.01. Amount Unlimited; Issuable in
  Series

  	
   

  
	
   

  	
   

  	
  SECTION 3.02. Denominations

  	
   

  
	
   

  	
   

  	
  SECTION 3.03. Authentication and Dating

  	
   

  
	
   

  	
   

  	
  SECTION 3.04. Execution of Securities

  	
   

  
	
   

  	
   

  	
  SECTION 3.05. Exchange and Registration of
  Transfer of Securities

  	
   

  
	
   

  	
   

  	
  SECTION
  3.06. Mutilated, Destroyed, Lost or Stolen Securities

  	
   

  
	
   

  	
   

  	
  SECTION
  3.07. Temporary Securities

  	
   

  
	
   

  	
   

  	
  SECTION
  3.08. Payment of Interest; Interest Rights Preserved

  	
   

  
	
   

  	
   

  	
  SECTION
  3.09. Persons Deemed Owners

  	
   

  
	
   

  	
   

  	
  SECTION
  3.10. Cancellation

  	
   

  
	
   

  	
   

  	
  SECTION
  3.11. Computation of Interest

  	
   

  
	
   

  	
   

  	
  SECTION
  3.12. CUSIP Numbers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  FOUR 

  	
  SATISFACTION
  AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  4.01. Satisfaction and Discharge of Indenture

  	
   

  
	
   

  	
   

  	
  SECTION
  4.02. Application of Trust Money

  	
   

  
	
   

  	
   

  	
  SECTION
  4.03. Repayment to Company

  	
   

  
	
   

  	
   

  	
  SECTION
  4.04. Reinstatement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  FIVE 

  	
  REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION 5.01. Events of Default

  	
   

  
	
   

  	
   

  	
  SECTION 5.02. Acceleration

  	
   

  
	
   

  	
   

  	
  SECTION 5.03. Other Remedies

  	
   

  
	
   

  	
   

  	
  SECTION
  5.04. Waiver of Defaults and Events of Default

  	
   

  
	
   

  	
   

  	
  SECTION
  5.05. Control by Majority

  	
   

  
	
   

  	
   

  	
  SECTION
  5.06. Limitations on Suits

  	
   

  
	
   

  	
   

  	
  SECTION
  5.07. Collection Suit by Trustee

  	
   

  
					

 

i

 

	
   

  	
   

  	
  SECTION
  5.08. Trustee May File Proofs of Claim

  	
   

  
	
   

  	
   

  	
  SECTION
  5.09. Priorities

  	
   

  
	
   

  	
   

  	
  SECTION
  5.10. Undertaking for Costs

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  SIX 

  	
  THE
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  6.01. Certain Duties and Responsibilities

  	
   

  
	
   

  	
   

  	
  SECTION
  6.02. Notice of Defaults

  	
   

  
	
   

  	
   

  	
  SECTION 6.03. Certain Rights of Trustee

  	
   

  
	
   

  	
   

  	
  SECTION
  6.04. Not Responsible for Recitals or Issuance of Securities

  	
   

  
	
   

  	
   

  	
  SECTION
  6.05. May Hold Securities

  	
   

  
	
   

  	
   

  	
  SECTION
  6.06. Money Held in Trust

  	
   

  
	
   

  	
   

  	
  SECTION
  6.07. Compensation and Reimbursement

  	
   

  
	
   

  	
   

  	
  SECTION
  6.08. Disqualification; Conflicting Interests

  	
   

  
	
   

  	
   

  	
  SECTION
  6.09. Corporate Trustee Required; Eligibility

  	
   

  
	
   

  	
   

  	
  SECTION
  6.10. Resignation and Removal; Appointment of Successor

  	
   

  
	
   

  	
   

  	
  SECTION
  6.11. Acceptance of Appointment by Successor

  	
   

  
	
   

  	
   

  	
  SECTION
  6.12. Merger, Conversion, Consolidation or Succession to Business

  	
   

  
	
   

  	
   

  	
  SECTION
  6.13. Preferential Collection of Claims Against Company

  	
   

  
	
   

  	
   

  	
  SECTION
  6.14. Appointment of Authenticating Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  SEVEN

  	
  HOLDER’S
  LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  7.01. Company to Furnish Trustee Names and Addresses of Holders

  	
   

  
	
   

  	
   

  	
  SECTION
  7.02. Preservation of Information; Communications to Holders

  	
   

  
	
   

  	
   

  	
  SECTION
  7.03. Reports by Trustee

  	
   

  
	
   

  	
   

  	
  SECTION
  7.04. Reports by Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  EIGHT

  	
  CONSOLIDATION,
  MERGER, SALE, CONVEYANCE OR LEASE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  8.01. Consolidations and Mergers of Company and Conveyances Permitted Subject
  to Certain Conditions

  	
   

  
	
   

  	
   

  	
  SECTION
  8.02. Successor Substituted

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  NINE

  	
  SUPPLEMENTAL
  INDENTURES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  9.01. Supplemental Indentures without Consent of Holders

  	
   

  
	
   

  	
   

  	
  SECTION
  9.02. Supplemental Indentures and Waiver with Consent of Holders

  	
   

  
	
   

  	
   

  	
  SECTION
  9.03. Compliance with Trust Indenture Act; Effect of Supplemental Indentures

  	
   

  
	
   

  	
   

  	
  SECTION
  9.04. Notation on Securities

  	
   

  
	
   

  	
   

  	
  SECTION
  9.05. Evidence of Compliance of Supplemental Indenture to be Furnished
  Trustee

  	
   

  
					

 

ii

 

	
  ARTICLE
  TEN

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  10.01. Payment of Principal and Interest

  	
   

  
	
   

  	
   

  	
  SECTION
  10.02. Maintenance of Office or Agency

  	
   

  
	
   

  	
   

  	
  SECTION
  10.03. Money for Security Payments to be Held in Trust

  	
   

  
	
   

  	
   

  	
  SECTION
  10.04. Compliance Certificates

  	
   

  
	
   

  	
   

  	
  SECTION
  10.05. Corporate Existence

  	
   

  
	
   

  	
   

  	
  SECTION
  10.06. Waiver of Certain Covenants

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  ELEVEN

  	
  REDEMPTION
  OF SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  11.01. Applicability of Article

  	
   

  
	
   

  	
   

  	
  SECTION
  11.02. Notice of Redemption; Selection of Securities

  	
   

  
	
   

  	
   

  	
  SECTION
  11.03. Payment of Securities Called for Redemption

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  TWELVE

  	
  SUBORDINATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  12.01. Agreement to Subordinate

  	
   

  
	
   

  	
   

  	
  SECTION
  12.02. Payments to Holders

  	
   

  
	
   

  	
   

  	
  SECTION
  12.03. Subrogation of Securities

  	
   

  
	
   

  	
   

  	
  SECTION
  12.04. Authorization to Effect Subordination

  	
   

  
	
   

  	
   

  	
  SECTION
  12.05. Notice to Trustee

  	
   

  
	
   

  	
   

  	
  SECTION
  12.06. Trustee’s Relation to Senior Indebtedness

  	
   

  
	
   

  	
   

  	
  SECTION
  12.07. Trustee as Holder of Senior Indebtedness

  	
   

  
	
   

  	
   

  	
  SECTION
  12.08. No Impairment of Subordination

  	
   

  
	
   

  	
   

  	
  SECTION
  12.09. Article Applicable to Paying Agents

  	
   

  
	
   

  	
   

  	
  SECTION
  12.10. Senior Indebtedness Entitled to Rely

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN 

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  SECTION
  13.01. Form of Documents Delivered to Trustee

  	
   

  
	
   

  	
   

  	
  SECTION
  13.02. Notices

  	
   

  
	
   

  	
   

  	
  SECTION
  13.03. Notice to Holders; Waiver

  	
   

  
	
   

  	
   

  	
  SECTION
  13.04. Trust Indenture Act Controls

  	
   

  
	
   

  	
   

  	
  SECTION
  13.05. Certificate and Opinion as to Conditions Precedent

  	
   

  
	
   

  	
   

  	
  SECTION
  13.06. Statements Required in Certificate or Opinion

  	
   

  
	
   

  	
   

  	
  SECTION
  13.07. Table of Contents, Headings, etc.

  	
   

  
	
   

  	
   

  	
  SECTION
  13.08. Successors and Assigns

  	
   

  
	
   

  	
   

  	
  SECTION
  13.09. Separability Clause

  	
   

  
	
   

  	
   

  	
  SECTION
  13.10. Benefits of Indenture

  	
   

  
	
   

  	
   

  	
  SECTION
  13.11. Rules by Trustee and Agents.

  	
   

  
	
   

  	
   

  	
  SECTION
  13.12. No Personal Liability of Directors, Officers, Employees and
  Stockholders.

  	
   

  
	
   

  	
   

  	
  SECTION
  13.13. Governing Law

  	
   

  
	
   

  	
   

  	
  SECTION
  13.14. Legal Holidays

  	
   

  
	
   

  	
   

  	
  SECTION
  13.15. Indenture and Securities Solely Corporate Obligations

  	
   

  
	
   

  	
   

  	
  SECTION
  13.16. No Security Interest Created

  	
   

  
					

 

iii

 

	
   

  	
   

  	
  SECTION
  13.17. Counterpart Originals

  	
   

  
	
   

  	
   

  	
  SECTION
  13.18. No Adverse Interpretation of Other Agreements

  	
   

  

 

iv

 

FORM OF
SUBORDINATED INDENTURE, dated as of
        , 2004 between Abgenix, Inc., a
Delaware corporation (hereinafter called the “Company”), and U.S. Bank National
Association, a national banking association organized and existing under the
laws of the United States, as Trustee (the “Trustee”).

 

RECITALS OF
THE COMPANY

 

WHEREAS, the
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its unsecured subordinated
debentures, notes or other evidences of indebtedness to be issued in one or
more series (the “Securities”), as in this Indenture provided, up to such
principal amount or amounts as may from time to time be authorized in or
pursuant to one or more Board Resolutions; and

 

WHEREAS, all
things necessary to make this Indenture a valid and legally binding 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 covenanted and 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 1.01.  Definitions.

 

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

 

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

 

(2)          all other terms used herein that 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 the term “generally accepted accounting principles”
with respect to any computation required or permitted hereunder shall mean such
accounting principles which are generally accepted at the date or time of such
computation; and

 

(4)          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 1.02.

 

 

“Affiliate” of any specified Person means
any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person.  For the purposes of this definition,
“control” (including, with correlative meanings, the terms “controlling,” “controlled
by” and “under common control with”) 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 agreement or otherwise.

 

“Authenticating Agent” means any
authenticating agent appointed by the Trustee pursuant to Section 6.14.

 

“Board of Directors” means the board of
directors of the Company or any duly authorized committee of that board or any
director or directors and/or officer or officers of the Company to whom that board
or committee shall have duly delegated its authority.

 

“Board Resolution” means (1) 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 or any duly authorized committee
of that board and to be in full force and effect on the date of such
certification, or (2) a certificate signed by the director or directors and/or
officer or officers to whom the Board of Directors or any duly authorized
committee of that board shall have duly delegated its authority, in each case
delivered to the Trustee for the Securities of any series.

 

“Business Day” means each day that is not a
Legal Holiday.

 

“Commission” means the Securities and
Exchange Commission, as 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 on such date.

 

“Company” means Abgenix, Inc., and any and
all successors thereto.

 

“Company Request” and “Company Order” mean, respectively, a
written request or order signed in the name of the Company by two (2) Officers
and delivered to the Trustee.

 

“Corporate Trust Office” of the Trustee
means the corporate trust office of the Trustee at which at any particular time
the trust created by this Indenture shall be principally administered, which
office as of the date hereof is located at 633 West Fifth Street, 24th
Floor, Los Angeles, California 90071, Attention:  Corporate Trust Services.

 

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

 

“Defaulted Interest” has the meaning
specified in Section 3.08.

 

“Depositary” means a clearing agency
registered under the Securities Exchange Act of 1934, as amended, or any
successor thereto, which shall in either case be designated by the Corporation
pursuant to Section 3.01, until a successor Depositary shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
“Depositary” shall mean or include each Person who is then a Depositary
hereunder, and if at any time there is more than

 

2

 

one such Person, “Depositary” as used with respect to
the Securities of any series shall mean the Depositary with respect to the
Securities of that series.

 

“Event of Default” has the meaning
specified in Article Five.

 

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

 

“Global Security” means a Security
evidencing all or part of a series of Securities, including, without
limitation, any temporary or permanent Global Securities.

 

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

 

“Indebtedness” means, with respect to any
Person, without duplication, (a) all indebtedness, obligations and other
liabilities (contingent or otherwise) of such Person (i) for borrowed money
(including obligations of such Person in respect of overdrafts, foreign
exchange contracts, currency exchange agreements, interest rate protection
agreements, and any loans or advances from banks, whether or not evidenced by
notes or similar instruments) or (ii) evidenced by credit or loan agreements,
bonds, debentures, notes or similar instruments (whether or not the recourse of
the lender is to the whole of the assets of such Person or to only a portion
thereof) (other than any accounts payable or other accrued current liability or
obligation incurred in the ordinary course of business in connection with the
obtaining of materials or services), (b) all reimbursement obligations and
other liabilities (contingent or otherwise) of such Person with respect to
letters of credit, bank guarantees or bankers’ acceptances, (c) all
obligations and liabilities (contingent or otherwise) of such Person (i) in
respect of (A) leases of such Person required, in conformity with GAAP, to be
accounted for as capitalized lease obligations on the balance sheet of such
Person (as determined by the Company), and (B) ground leases the Company may
enter into the future with respect to the Company’s facilities in Fremont,
California, or (ii) under any lease or related document (including a
purchase agreement, conditional sale or other title retention agreement) in
connection with the lease of real property or improvement thereon (or any
personal property included as part of any such lease) which provides that such
Person is contractually obligated to purchase or cause a third party to
purchase the leased property or pay an agreed upon residual value of the leased
property to the lessor (whether or not such lease transaction is characterized
as an operating lease or a capitalized lease in accordance with GAAP),
(d) all obligations (contingent or otherwise) of such Person with respect
to any interest rate or other swap, cap, floor or collar agreement, hedge
agreement, forward contract, or other similar instrument or agreement or
foreign currency hedge, exchange, purchase or similar instrument or agreement;
(e) all direct or indirect guaranties, agreements to be jointly liable or
similar agreements by such Person in respect of, and obligations or liabilities
of such Person to purchase or otherwise acquire or otherwise assure a creditor
against loss in respect of, indebtedness, obligations or liabilities of another
Person of the kind described in clauses (a) through (d), and (f) any and
all deferrals, renewals, extensions, refinancings and refundings of, or
amendments, modifications or supplements to, any indebtedness, obligation or
liability of the kind described in clauses (a) through (e).

 

“Indenture” means this instrument as
originally executed or 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, and shall include the form and terms of
particular series of Securities established as contemplated hereunder;
provided, however, that if at any time

 

3

 

more than one Person is acting as Trustee under this
instrument, “Indenture” shall mean with respect to any one or more series of
Securities for which such Person is Trustee, this instrument as originally
executed or 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 and shall include the terms of particular series of
Securities for which such person is Trustee established as contemplated by
Section 3.01, exclusive, however, of any provisions or terms which relate
solely to other series of Securities for which such Person is not Trustee,
regardless of when such terms or provisions were adopted, and exclusive of any
provisions or terms adopted by means of one or more indentures supplemental
hereto executed and delivered after such Person had become such Trustee but to
which such Person, as such Trustee, was not a party.

 

“interest” when used with respect to
non-interest bearing Securities means interest payable after Maturity.

 

“Interest Payment Date” means the Stated
Maturity of an installment of interest on the Security (in the case of an
interest-bearing Security).

 

“Legal
Holiday” means each Saturday and Sunday and each day on which state
or federally chartered banking institutions in New York, New York and the state
in which the Corporate Trust Office is located are not required to be open.

 

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

 

“Officer” means the Chairman of the Board,
the President, any Vice President, the Chief Financial Officer, the Treasurer,
an Assistant Treasurer, the Controller, an Assistant Controller, the Secretary
or an Assistant Secretary of the Company.

 

“Officers’ Certificate” means a certificate
signed by two (2) Officers and delivered to the Trustee.

 

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

 

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

 

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

 

(ii)                                  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 aggregated in trust by the Company (if the
Company shall act as its own Paying Agent), for the Holders of such Securities,
provided 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;
and

 

4

 

(iii)                               Securities
in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture;

 

provided,
however, that in determining whether the Holders of the requisite
aggregate principal amount of Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder,
Securities owned by the Company or any Affiliate of the Company 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 or waiver, only Securities
that a Responsible Officer of the Trustee actually 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 established 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 Affiliate of the Company.

 

“Paying Agent”
means any Person authorized by the Company to pay the principal of (or premium,
if any) or interest on any Securities on behalf of the Company.

 

“Person” means any individual, corporation,
limited liability company, partnership, joint venture, association, joint-stock
company, trust, estate, unincorporated organization or government or any agency
or political subdivision thereof, and shall include any syndicate or group that
would be deemed to be a person under Section 13(d)(3) of the Exchange Act.

 

“Redemption Date” when used with respect to
any Security to be redeemed means the date fixed for such redemption by or
pursuant to the Board Resolution or supplemental indenture establishing the
series of Securities of which the Security to be redeemed is a member.

 

“Redemption Price” when used with respect
to any Security to be redeemed means the price at which it is to be redeemed
pursuant to the Board Resolution or supplemental indenture establishing the
series of Securities of which the Security to be redeemed is a member.

 

“Regular Record Date” for the interest
payable on any Interest Payment Date (in the case of an interest-bearing
Security) means such date or dates as may be fixed for such purpose in the
Board Resolution or supplemental indenture establishing the series of
Securities of which the Security is a member.

 

“Representative”
means the (a) indenture trustee or other trustee, agent or representative
for any Senior Indebtedness or (b) with respect to any Senior Indebtedness
that does not have any such trustee, agent or other representative, (i) in
the case of such Senior Indebtedness issued pursuant to an agreement providing
for voting arrangements as among the holders or owners of such Senior
Indebtedness, any holder or owner of such Senior Indebtedness acting with the
consent of the required persons necessary to bind such holders or owners of
such Senior Indebtedness and (ii) in the case of all other such Senior
Indebtedness, the holder or owner of such Senior Indebtedness.

 

“Responsible Officer” when used with
respect to the Trustee means any officer in the Corporate Trust Office of the
Trustee and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of such officer’s
knowledge of and familiarity with the particular subject.

 

5

 

“Securities” has the meaning stated in the
first recital of this Indenture and more particularly means any Securities
authenticated and delivered under this Indenture; provided, however, that if at
any time there is more than one Person acting as Trustee under this instrument,
“Securities” with respect to the Indenture as to which such Person is Trustee
shall have the meaning stated in the first recital of this instrument and shall
more particularly mean Securities authenticated and delivered under this
instrument, exclusive, however of Securities of any series as to which such
Person is not Trustee.

 

“Security Register” and “Security Registrar”, have the meanings
specified in Section 3.05.

 

“Senior Indebtedness” means the
principal of, premium, if any, interest (including all interest accruing
subsequent to the commencement of any bankruptcy or similar proceeding, whether
or not a claim for post-petition interest is allowed as a claim in any such
proceeding) and rent payable on or in connection with, and all fees, costs,
expenses and other amounts accrued or due on or in connection with,
Indebtedness of the Company, whether outstanding on the date of this Indenture
or thereafter created, incurred, assumed, guaranteed or in effect guaranteed by
the Company (including all deferrals, renewals, extensions or refundings of, or
amendments, modifications or supplements to, the foregoing), unless in the case
of any particular Indebtedness the instrument creating or evidencing the same
or the assumption or guarantee thereof expressly provides that such Indebtedness
shall not be senior in right of payment to the Securities or expressly provides
that such Indebtedness is “pari passu” or “junior” to the Securities.  Notwithstanding the foregoing, the term
Senior Indebtedness shall not include (i) any Indebtedness of the Company
to any Subsidiary of the Company (other than Indebtedness of the Company to
such Subsidiary arising by reason of guarantees by the Company of Indebtedness
of such Subsidiary to a Person that is not a Subsidiary of the Company);
(ii) the Securities; (iii) Indebtedness of or amounts owed by the Company
for compensation to employees, or for goods or materials purchased in the
ordinary course of business, or for services; (iv) the Company’s 3.5%
Convertible Subordinated Notes due March 15, 2007; (v) the convertible
subordinated note issued by the Company to AstraZeneca UK Limited (the “AstraZeneca Convertible Note”); or (vi)
any subordinated promissory note issued by the Company pursuant to (A) Section
9 of the Certificate of Designations of its Series A-1 Convertible Preferred
Stock or (B) Section 9 of the AstraZeneca Convertible Note.  If any payment made to any holder of any
Senior Indebtedness or its Representative with respect to such Senior
Indebtedness is rescinded or must otherwise be returned by such holder or
Representative upon the insolvency, bankruptcy or reorganization of the Company
or otherwise, the reinstated Indebtedness of the Company arising as a result of
such rescission or return shall constitute Senior Indebtedness effective as of
the date of such rescission or return..

 

“Significant Subsidiary” means any
Subsidiary that would be a “significant subsidiary” as defined in
Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities
Act, as such Regulation is in effect on the date of this Indenture.

 

“Special Record Date” for the payment of
any Defaulted Interest means a date fixed by the Trustee pursuant to Section
3.08.

 

6

 

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

 

“Subsidiary” means, in respect of any
Person, any corporation, association, partnership or other business entity of
which more than 50% of the total voting power of shares of Capital Stock or
other interests (including partnership interests) entitled (without regard to
the occurrence of any contingency) to vote in the election of directors,
managers, general partners or trustees thereof is at the time owned or
controlled, directly or indirectly, by (i) such Person; (ii) such
Person and one or more Subsidiaries of such Person; or (iii) one or more
Subsidiaries of such Person.

 

“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 such successor Trustee; provided, however,
that if at any time there is more than one such person, “Trustee” as used with
respect to the Securities of any series shall mean only the Trustee with
respect to Securities of that series.

 

“Trust
Indenture Act” or “TIA” means the Trust Indenture Act of
1939, as amended by the Trust Indenture Reform Act of 1990, as in force and
effect at the date as of which this instrument was executed, except as provided
in Section 9.03.

 

“United States” means the United States excluding
its territories and possessions.

 

SECTION 1.02.  Acts of Holders.

 

(a)          Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by 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 6.01) conclusive in favor of the Trustee and the Company and any
agent of the Trustee or the Company, if made in the manner provided in this
Section.

 

(b)         The fact and date of the
execution by any Person of any such instrument or writing may be proved by the
affidavit of a witness of such execution or by the certificate of any 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 an officer of a corporation or association or a member of
a partnership or an official of a public or governmental body, on behalf of
such corporation, association, partnership, or public or governmental body or
by a fiduciary, such certificate or affidavit shall also constitute sufficient
proof of his authority.  The fact and
date of the execution by any Person of any such instrument or writing, or the
authority of the Person executing the

 

7

 

same, may also be proved in any
other manner which the Trustee deems sufficient and in accordance with such
reasonable rules as the Trustee may determine.

 

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

 

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

 

ARTICLE TWO

 

SECURITY FORMS

 

SECTION
2.01.  Forms
Generally. 
The Securities of each series shall be in substantially such 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 any law or with any rules made pursuant thereto or with
any rules of any securities exchange or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution of the Securities.

 

The definitive
Securities shall be printed, lithographed or engraved 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
2.02.  Form
of Trustee’s Certificate of Authentication.  The Trustee’s certificate of authentication
on all Securities 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.

 

	
   

  	
   

  	
  U.S. Bank National Association,

  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  
					

 

SECTION
2.03.  Securities
in Global Form.  If any Security of
a series is issuable in global form, such Global Security may provide that it
shall represent the aggregate amount of

 

8

 

Outstanding Securities from
time to time endorsed thereon and may also provide that the aggregate amount of
Outstanding Securities represented thereby may from time to time be reduced to
reflect exchanges. Any endorsement of a Global Security to reflect the amount,
or any increase or decrease in the amount, of Outstanding Securities
represented thereby shall be made by the Trustee and in such manner as shall be
specified in such Global Security. Any instructions by the Company with respect
to a Global Security, after its initial issuance, shall be in writing.

 

None of the
Company, the Trustee, any Paying Agent or the Security Registrar will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests of a Global Security
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

 

ARTICLE THREE

 

THE SECURITIES

 

SECTION
3.01.  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 and the Securities of each such series
shall rank equally and pari passu
with the Securities of each other series, but all Securities issued hereunder
shall be subordinate and junior in right of payment, to the extent and in the
manner set forth in Article Twelve, to all Senior Indebtedness of the
Company.  There shall be established in
or pursuant to a Board Resolution 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,
including CUSIP Numbers (which shall distinguish the Securities of the series
from all other Securities);

 

(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 3.05, 3.06, 3.07, 9.04 or 11.03);

 

(3)          the date or dates on which the principal and
premium, if any, of the Securities of the series is payable;

 

(4)          the rate or rates at which the Securities of
the series shall bear interest, or the method by which such rate or rates shall
be determined, if any, the date or dates from which such interest shall accrue,
or the method by which such date or dates shall be determined, the interest
payment dates on which such interest shall be payable and the record dates for
the determination of Holders to whom interest is payable;

 

(5)          the place or places, if any, in addition to
or instead of the Corporate Trust Office of the Trustee, where the principal of
(and premium, if any) and interest on Securities of the series shall be
payable; the extent to which, or the manner in which, any interest payable on
any Global Security on an Interest Payment Date will be paid, if other than in
the manner provided in Section 3.08; and the manner in which any principal of,
or

 

9

 

premium, if any, on, any Global Security will be paid, if other than as
set forth elsewhere herein;

 

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

 

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

 

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

 

(9)          if other than the principal amount thereof,
the portion of the principal amount of Securities of the series which shall be
payable upon declaration of acceleration of the maturity thereof pursuant to
Section 5.02 or provable in bankruptcy pursuant to Section 5.03;

 

(10)    any Events of Default with respect to the
Securities of a particular series, if not set forth herein or if other than as
set forth herein;

 

(11)    whether the Securities of the series shall be
issued in whole or in part in the form of one or more Global Securities and, in
such case, the Depositary for such Global Security or Securities; the manner in
which and the circumstances under which Global Securities representing
Securities of the series may be exchanged for Securities in definitive form, if
other than, or in addition to, the manner and circumstances specified in Section
3.07;

 

(12)    the ranking of the Securities of such series, if
other than on a parity with all other unsecured, unsubordinated indebtedness of
the Company;

 

(13)    provisions, if any, with regard to the conversion
or exchange of the Securities of such series, at the option of the Holders
thereof or the Company, as the case may be, for or into new Securities of a
different series or common stock or other securities of the Company;

 

(14)    any trustees, depositaries, authenticating or
paying agents, transfer agents or registrars or any other agents with respect
to the Securities of such series; and

 

(15)    any other terms of the series (which terms shall
not be inconsistent with the provisions of this Indenture).

 

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 such resolution of
the Board of Directors or in any such indenture supplemental hereto.

 

10

 

SECTION 3.02.  Denominations.   The Securities of each series shall be issuable in registered form
without coupons in such denominations as shall be specified as contemplated by
Section 3.01.  In the absence of any
such specification 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 3.03.  Authentication and Dating.  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.  Except as otherwise provided in this Article
Three, the Trustee shall thereupon authenticate and deliver said Securities to
or upon a Company Order, signed by two Officers of the Company by manual or
facsimile signature.  In authenticating
such Securities, and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall receive, and
(subject to Section 6.01) shall be fully protected in relying upon:

 

(1)          a copy of any Board Resolution relating
thereto and, if applicable, an appropriate record of any action taken pursuant
to such resolution, in each case certified by the Secretary or an Assistant
secretary of the Company;

 

(2)          an executed supplemental indenture, if any;
and

 

(3)          an Officers’ Certificate;

 

(a)          an Opinion of Counsel,
which shall also state 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, reorganization and other laws
of general applicability relating to or affecting the enforcement of creditors’
rights and to general equity principles.

 

The Trustee
shall have the right to decline to authenticate and deliver any Securities
under this Section if the Trustee, being advised by counsel, determines that
such action may not lawfully be taken or if the Trustee in good faith shall
determine that such action would expose the Trustee to personal liability to
existing Holders.

 

Each Security
shall be dated the date of its authentication.

 

SECTION
3.04.  Execution
of Securities.  The Securities shall be signed in the name and on behalf of the
Company by the manual or facsimile signatures of two Officers of the Company
(which may be printed, engraved or otherwise reproduced thereon, by facsimile
or otherwise).  Only such Securities as
shall bear thereon a certificate of authentication substantially in the form
hereinbefore recited, executed by the Trustee, shall be entitled to the
benefits of this Indenture or be valid or obligatory for any purpose.  Such certificate by the Trustee upon any
Security executed by the Company shall be conclusive evidence that the Security
so authenticated has been duly authenticated and delivered hereunder and that
the Holder is entitled to the benefits of this Indenture.

 

11

 

In case any
Officer of the Company who shall have signed any of the Securities shall cease
to be such officer before the Securities so signed shall have been
authenticated and delivered by the Trustee, or disposed of by the Company, such
Securities nevertheless may be authenticated and delivered or disposed of as
though the person who signed such Securities had not ceased to be such officer
of the Company; and any Security may be signed on behalf of the Company by such
persons as, at the actual date of the execution of such Security, shall be the
proper officers of the Company, although at the date of the execution of this
Indenture any such person was not such an officer.

 

SECTION
3.05.  Exchange
and Registration of Transfer of Securities. 
Securities of any series may be exchanged for a like aggregate principal
amount of Securities of the same series of other authorized denominations.  Securities to be exchanged shall be
surrendered at the office or agency to be maintained by the Company, as
provided in Section 10.02.  The Trustee
is hereby appointed “Security Registrar” for the purpose of the registration of
Securities and of transfer of Securities in the Security Register as herein
provided.  The Company shall cause to be
kept at the Corporate Trust Office of the Trustee a register for each series of
Securities issued hereunder (hereinafter collectively referred to as the
“Security Register”) in which, subject to such reasonable regulations at it may
prescribe, the Company shall provide for the registration of Securities and the
transfer of Securities as in this Article Three provided.  The Security Register shall be in written
form or in any other form capable of being converted into written form within a
reasonable time.  Upon due presentment
for registration of transfer of any Security of any series at such office or
agency, the Company shall execute and the Trustee shall register, authenticate
and deliver in the name of the transferee or transferees a new Security or
Securities of the same series for an equal aggregate principal amount.

 

All Securities
presented for registration of transfer or for exchange, redemption or payment
shall (if so required by the Company or the Security Registrar) be duly
endorsed by, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the registered Holder or his attorney duly authorized in writing.

 

No service
charge shall be made for any exchange or registration of transfer 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
therewith.

 

The Company
shall not be required to exchange or register the transfer of (a) any
Securities of any series for a period of 15 days preceding the first mailing or
publication of notice of redemption of Securities of such series to be
redeemed, or (b) any Securities selected, called or being called for redemption
except, in the case of any Security to be redeemed in part, the portion thereof
not so to be redeemed.

 

SECTION 3.06. 
Mutilated, Destroyed, Lost or Stolen
Securities.  In case any
temporary or definitive Security shall become mutilated or be destroyed, lost
or stolen, the Company in the case of a mutilated Security shall, and in the
case of a lost, stolen or destroyed Security may in its discretion, execute,
and upon its request the Trustee shall authenticate and deliver, a new Security
of the same series bearing a number, letter or other distinguishing symbol not
contemporaneously outstanding, in exchange and substitution for the mutilated
Security, or in lieu of and in substitution for the Security so destroyed, lost
or stolen, or if any such Security

 

12

 

shall have matured or shall be
about to mature, instead of issuing a substituted Security, the Company may pay
or authorize the payment of the same without surrender thereof (except in the
case of a mutilated Security).  In every
case the applicant for a substituted Security shall furnish to the Company and
to the Trustee such security or indemnity as may be required by them to save
each of them harmless, and, in every case of destruction, loss or theft, the
applicant shall also furnish to the Company and to the Trustee evidence to
their satisfaction of the destruction, loss or theft of such Security and of
the ownership thereof.

 

The Trustee
may authenticate any such substituted Security and deliver the same upon the
written request or authorization of any Officer of the Company.  Upon the issuance of any substituted
Security, 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 connected therewith and in addition a further sum not
exceeding two dollars for each Security so issued in substitution.

 

Every
substituted Security issued pursuant to the provisions of this Section 3.06 by
virtue of the fact that any Security is destroyed, lost or stolen shall
constitute an additional contractual obligation of the Company, whether or not
the destroyed, lost or stolen Security shall be found at any time, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series duly issued hereunder.  All Securities shall be held and owned upon
the express condition that the foregoing provisions are exclusive with respect
to the replacement or payment of mutilated, destroyed, lost or stolen
Securities and shall preclude (to the extent lawful) any and all other rights
or remedies with respect to the replacement or payment of negotiable
instruments or other securities without their surrender.

 

SECTION 3.07.  Temporary
Securities.  Pending the
preparation of definitive Securities of any series the Company may execute and
the Trustee shall authenticate and deliver temporary Securities (printed or
lithographed).  Temporary Securities
shall be issuable in any authorized denomination and substantially in the form
of the definitive Securities but with such omissions, insertions and variations
as may be appropriate for temporary Securities, all as may be determined by the
Company.  Every such temporary Security
shall be executed by the Company and shall be authenticated by the Trustee upon
the same conditions and in substantially the same manner, and with the same
effect, as the definitive Securities. 
Without unreasonable delay the Company will execute and deliver to the
Trustee definitive Securities of such series and thereupon any or all temporary
Securities of such series may be surrendered in exchange therefore, at the
Corporate Trust Office of the Trustee, and the Trustee shall authenticate and
deliver in exchange for such temporary Securities an equal aggregate principal
amount of definitive Securities.  Such
exchange shall be made by the Company at its own expense and without any charge
therefor except that in case of any such exchange involving any registration of
transfer the Company may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in relation thereto.  Until so exchanged, the temporary Securities
shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities authenticated and delivered hereunder.

 

If the
Company shall establish pursuant to Section 3.01 that the Securities of a
series are to be issued in whole or in part in the form of one or more Global
Securities, then the Company shall execute and the Trustee shall, in accordance
with Section 3.03 and the Company Order with respect to such series,
authenticate and deliver one or more Global Securities in temporary or

 

13

 

permanent form that (i) shall represent and shall be
denominated in an amount equal to the aggregate principal amount of the
Outstanding Securities of such series to be represented by one or more Global
Securities, (ii) shall be registered in the name of the Depositary for such
Global Security or Securities or the nominee of such depositary, and (iii)
shall bear a legend substantially to the following effect: “This Security may
not be transferred except as a whole by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary, unless and until
this Security is exchanged in whole or in part for Securities in definitive
form” and such other legend as may be required by the Depositary.

 

Notwithstanding
any other provision of this Section or Section 3.05, unless and until it is
exchanged in whole or in part for Securities in definitive form, a Global
Security representing all or a portion of the Securities of a series may not be
transferred except as a whole by the Depositary for such series to a nominee of
such depositary or by a nominee of such depositary to such depositary or
another nominee of such depositary or by such depositary or any such nominee to
a successor Depositary for such series or a nominee of such successor
depositary.

 

If at
any time the Depositary for the Securities of a series notifies the Company
that it is unwilling or unable to continue as Depositary for the Securities of
such series or if at any time the Depositary for Securities of a series shall
no longer be a clearing agency registered and in good standing under the Securities
Exchange Act of 1934, as amended, or other applicable statute or regulation,
the Company shall appoint a successor Depositary with respect to the Securities
of such series. If a successor Depositary for the Securities of such series is
not appointed by the Company within 90 days after the Company receives such
notice or becomes aware of such condition, the Company will execute, and the
Trustee, upon receipt of a Company Order for the authentication and delivery of
definitive Securities of such series, will authenticate and deliver, Securities
of such series in definitive form in an aggregate principal amount equal to the
principal amount of the Global Security or Securities representing such series
in exchange for such Global Security or Securities.

 

The
Company may at any time and in its sole discretion determine that the
Securities of any series issued in the form of one or more Global Securities
shall no longer be represented by such Global Security or Securities. In such
event, the Company will execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of definitive Securities of such
series, will authenticate and deliver, Securities of such series in definitive
form and in an aggregate principal amount equal to the principal amount of the
Global Security or Securities representing such series in exchange for such
Global Security or Securities.

 

If the
Securities of any series shall have been issued in the form of one or more
Global Securities and if an Event of Default with respect to the Securities of
such series shall have occurred and be continuing, the Company will promptly
execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of definitive Securities of such series, will authenticate
and deliver Securities of such series in definitive form and in an aggregate
principal amount equal to the principal amount of the Global Security or
Securities representing such series in exchange for such Global Security or
Securities.

 

14

 

If
specified by the Company pursuant to Section 3.01 with respect to Securities of
a series, the Depositary for such series of Securities may surrender a Global
Security for such series of Securities in exchange in whole or in part for
Securities of such series in definitive form on such terms as are acceptable to
the Company and such depositary. Thereupon, the Company shall execute and the
Trustee shall authenticate and deliver, without charge:

 

(1)          to each Person specified by the Depositary a
new Registered Security or Securities of the same series, of any authorized
denomination as requested by such Person in an aggregate principal amount equal
to and in exchange for such Person’s beneficial interest in the Global
Security; and

 

(2)          to the Depositary a new Global Security in a
denomination equal to the difference, if any, between the principal amount of
the surrendered Global Security and the aggregate principal amount of
Securities delivered to Holders thereof.

 

Upon the
exchange of a Global Security in whole for Securities in definitive form, such
Global Security shall be cancelled by the Trustee. Securities so issued in
exchange for a Global Security shall be registered in such names and in such
authorized denominations as the Depositary for such Global Security, pursuant
to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver such Securities to the Persons
in whose names such Securities are so registered.

 

SECTION 3.08.  Payment
of Interest; Interest Rights Preserved.  Interest on any Security which is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person
in whose name that Security is registered at the close of business on the
Regular Record Date for such interest.

 

Any interest
on any Security which is payable, but is not punctually paid or duly provided
for, on any Interest Payment Date or within 30 days thereafter (herein called
“Defaulted Interest”) shall forthwith cease to be payable to the registered
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 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 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

 

15

 

notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor to be mailed, first-class postage prepaid, to each
Holder at his address as it appears in the Security Register not less than 10
days prior to such Special Record Date. The Trustee may, in its discretion, in
the name and at the expense of the Company, cause a similar notice to be
published at least once in a newspaper, customarily published in the English
language on each Business Day and of general circulation in the Borough of
Manhattan, The City of New York, but such publication shall not be a condition
precedent to the establishment of such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
the Securities are registered 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 in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the 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.

 

SECTION 3.09.   Persons
Deemed Owners.  Prior to due
presentment of a Security for registration of transfer, the Company, the
Trustee, the Authenticating Agent and any agent of the Company or the Trustee
may treat the Person in whose name the Security is registered as the owner of
such Security for the purpose of receiving payment of principal of, and
(subject to Section 3.08) interest on, such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the Company,
the Trustee, the Authenticating Agent nor any agent of the Company or the
Trustee shall be affected by notice to the contrary.

 

SECTION 3.10.  Cancellation.  All Securities surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee, and any such
Securities and Securities surrendered directly to the Trustee for any such
purpose 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 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 by the Trustee in its
customary manner.

 

SECTION 3.11. 
Computation of Interest.  Except as otherwise specified as
contemplated by Section 3.01 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.

 

16

 

SECTION 3.12. 
CUSIP Numbers.  The Company in issuing the Securities may use
“CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use
“CUSIP” numbers in notices of redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers.  The Company will promptly notify the Trustee
of any change in the “CUSIP” numbers.

 

ARTICLE FOUR

 

SATISFACTION AND DISCHARGE

 

SECTION 4.01.  Satisfaction and Discharge of Indenture.  This Indenture shall 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, on
demand of and 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 3.06 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 10.03) 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 Maturities 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 an amount
sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal (and
premium, if any) and interest to the date of such deposit (in the case of
Securities that have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

 

17

 

(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 6.07 and the obligations of the Trustee to any
Authenticating Agent under Section 6.14 shall survive such satisfaction and
discharge.

 

SECTION 4.02.  Application
of Trust Money.  All money
deposited with the Trustee pursuant to Section 4.01 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 premium, if
any) and interest for whose payment such money has been deposited with the
Trustee; but such money need not be segregated from other funds except to the
extent required by law.

 

SECTION 4.03.   Repayment
to Company.  The Trustee and
each Paying Agent shall promptly pay to the Company upon request any excess
money (1) deposited with them pursuant to Section 4.02 and (2) held
by them at any time.

 

The
Trustee and each Paying Agent shall pay to the Company upon request any money
held by them for the payment of principal or interest that remains unclaimed
for two years after a right to such money has matured; provided,
however, that the Trustee or such Paying Agent, before being required to
make any such payment, may at the expense of the Company cause to be mailed to
each Holder entitled to such money notice that such money remains unclaimed and
that after a date specified therein, which shall be at least 30 days from the
date of such mailing, any unclaimed balance of such money then remaining will
be repaid to the Company.  After payment
to the Company, Holders entitled to money must look to the Company for payment
as general creditors unless an applicable abandoned property law designates
another person.

 

SECTION 4.04. 
Reinstatement.  If the Trustee or any Paying Agent is unable
to apply any money in accordance with Section 4.02 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application,
then the Company’s obligations under this Indenture and the Securities shall be
revived and reinstated as though no deposit had occurred pursuant to Section
4.01 until such time as the Trustee or such Paying Agent is permitted to apply
all such money in accordance with Section 4.02;
provided, however, that if the Company has made any payment of the
principal of or interest on any Securities because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive any such payment from the money held by the Trustee
or such Paying Agent.

 

18

 

ARTICLE FIVE

 

REMEDIES

 

SECTION
5.01.  Events
of Default.

 

“Events of Default”, wherever used herein with
respect to Securities of any series, means any one of the following events and
such other events as may be established with respect to the Securities of that
series as contemplated by Section 3.01 hereof (whatever the reasons for such
Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body):

 

(a)                                  the Company defaults
in the payment of any interest on any Security when the same becomes due and
payable and the default continues for a period of 30 days, whether or not such
payment shall be prohibited by the provisions of Article Twelve hereof; or

 

(b)                                 the Company defaults
in the payment of any principal of (including, without limitation, any premium,
if any, on) any Security when the same becomes due and payable (whether at
maturity, upon redemption or otherwise), whether or not such payment shall be
prohibited by the provisions of Article Twelve hereof; or

 

(c)                                  the Company fails to
comply with any of its other agreements contained in the Securities or this
Indenture and the default continues for the period and after the notice
specified below;

 

(d)                                 the commencement by
the Company or any Significant Subsidiary of the Company of a voluntary case or
proceeding under any applicable U.S. 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 the Company or any
Significant Subsidiary to the entry of a decree or order for relief in respect
of the Company or any Significant Subsidiary of the Company in an involuntary
case or proceeding under any applicable U.S. federal or state bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against the Company or any
Significant Subsidiary of the Company, or the filing by the Company or any
Significant Subsidiary of the Company of a petition or answer or consent
seeking reorganization or relief under any applicable U.S. federal or state
law, or the consent by the Company or any Significant Subsidiary of the Company
to the filing of such petition or to the appointment of or the taking
possession by a custodian of the Company or any Significant Subsidiary of the
Company or of any substantial part of their properties, or the making by the Company
or any Significant Subsidiary of the Company of an assignment for the benefit
of creditors, or the admission by the Company or any Significant Subsidiary of
the Company in writing of their inability to pay its debts generally as they
become due, or the taking of corporate action by the Company or any Significant
Subsidiary of the Company expressly in furtherance of any such action.

 

A
default under clause (c) above is not an Event of Default until the
Trustee notifies the Company, or the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding notify the Company and the
Trustee in writing of the default, and the Company does not cure the default
within 60 days after receipt of such notice. 
The notice given pursuant to this Section 5.01 must specify the default,
demand that it be remedied and state that the notice is a “Notice of
Default.”  When any default under this
Section 5.01 is cured, it ceases.

 

19

 

The
Trustee shall not be charged with knowledge of any Event of Default unless
written notice thereof shall have been given to a Trust Officer at the
Corporate Trust Office of the Trustee by the Company, a Paying Agent, any
Holder or any agent of any Holder.

 

SECTION 5.02.  Acceleration.

 

If an Event of
Default (other than an Event of Default specified in clause (d) of Section
5.01) occurs and is continuing, the Trustee may, by notice to the Company, or
the Holders of at least 25% in aggregate principal amount of the Securities
then outstanding may, by notice to the Company and the Trustee, declare all
unpaid principal to the date of acceleration on the Securities then outstanding
(if not then due and payable) to be due and payable upon any such declaration,
and the same shall become and be immediately due and payable.  If an Event of Default specified in
clause (d) of Section 5.01 occurs, all unpaid principal of the Securities
then outstanding shall ipso facto become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any
Holder.  The Holders of a majority in
aggregate principal amount of the Securities then outstanding by notice to the
Trustee may rescind an acceleration and its consequences if (a) all
existing Events of Default, other than the nonpayment of the principal of the
Securities which has become due solely by such declaration of acceleration,
have been cured or waived; (b) to the extent the payment of such interest
is lawful, interest on overdue installments of interest and overdue principal,
which has become due otherwise than by such declaration of acceleration, has
been paid; (c) the rescission would not conflict with any judgment or
decree of a court of competent jurisdiction; and (d) all payments due to
the Trustee and any predecessor Trustee under Section 6.07 have been made.  No such rescission shall affect any
subsequent default or impair any right consequent thereto.

 

SECTION 5.03.  Other Remedies.

 

If an Event of Default occurs and is continuing, the Trustee may, but
shall not be obligated to, pursue any available remedy by proceeding at law or
in equity to collect the payment of the principal of or interest on the
Securities or to enforce the performance of any provision of the Securities or
this Indenture.

 

The Trustee
may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Holder in exercising
any right or remedy accruing upon an Event of Default shall not impair the
right or remedy or constitute a waiver of or acquiescence in the Event of
Default.  No remedy is exclusive of any
other remedy.  All available remedies
are cumulative to the extent permitted by law.

 

SECTION 5.04. 
Waiver of Defaults and Events of
Default.  Subject to Section
9.02, the Holders of a majority in aggregate principal amount of the Securities
then outstanding by notice to the Trustee may waive an existing default or
Event of Default and its consequence, except a default or Event of Default in
the payment of the principal of, premium, if any, or interest on any Security
or any default or Event of Default in respect of any provision of this
Indenture or the Securities which, under Section 9.02, cannot be modified or
amended without the consent of the Holder of each Security affected.  When a default or Event of Default is
waived, it is cured and ceases.

 

20

 

SECTION 5.05. 
Control by Majority.  The Holders of a majority in
aggregate principal amount of the Securities then outstanding may direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on it.  However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, that the Trustee
determines may be unduly prejudicial to the rights of another Holder or the
Trustee, or that may involve the Trustee in personal liability unless the
Trustee is offered indemnity satisfactory to it; provided, however, that the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such
direction.

 

SECTION 5.06.  Limitations
on Suits.  A Holder may not
pursue any remedy with respect to this Indenture or the Securities (except
actions for payment of overdue principal or interest) unless:

 

(1)          the Holder gives to the Trustee written
notice of a continuing Event of Default;

 

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

 

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

 

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

 

(5)          no direction inconsistent with such written
request has been given to the Trustee during such 60-day period by the Holders
of a majority in aggregate principal amount of the Securities then outstanding.

 

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

 

SECTION 5.07. 
Collection Suit by Trustee.  If an Event of Default in the payment of principal
or interest specified in clause (a) or (b) of Section 5.01 occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of
an express trust against the Company or another obligor on the Securities for
the whole amount of principal and accrued interest remaining unpaid, together
with, to the extent that payment of such interest is lawful, interest on
overdue principal and on overdue installments of interest, in each case at the
rate per annum borne by the Securities and 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.

 

SECTION 5.08.  Trustee
May File Proofs of Claim.  The
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company (or any other obligor on the Securities),
its creditors or its property and shall be entitled and empowered to collect
and receive any money or other property payable or deliverable on any such
claims and to distribute the same, and any

 

21

 

receiver, trustee, assignee,
liquidator, sequestrator or similar official in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee and, in
the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section
6.07, and to the extent that such payment of the reasonable compensation,
expenses, disbursements and advances in any such proceedings shall be denied
for any reason, payment of the same shall be secured by a lien on, and shall be
paid out of, any and all distributions, dividends, money, securities and other
property which the Holders may be entitled to receive in such proceedings,
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.  Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to, or, on
behalf of any Holder, to authorize, accept or adopt any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights
of any Holder thereof, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding.

 

SECTION 5.09. 
Priorities.  If the Trustee collects any money pursuant
to this Article Five, it shall pay out the money in the following order:

 

First, to the
Trustee for amounts due under Section 6.07;

 

Second, to the holders of Senior Indebtedness to the extent required by
Article Twelve;

 

Third, to Holders for amounts due and unpaid on the Securities for
principal and interest, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Securities for principal and
interest, respectively; and

 

Fourth, the balance, if any, to the Company.

 

The
Trustee may fix a record date and payment date for any payment to Holders
pursuant to this Section 5.09.

 

SECTION 5.10.   Undertaking
for Costs.  In any suit for
the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court
in its discretion may require the filing by any party litigant in the suit of
an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant.  This Section 5.10 does not apply to a
suit made by the Trustee or a suit by Holders of more than 10% in aggregate
principal amount of the Securities then outstanding.

 

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 6.01.  Certain
Duties and Responsibilities.

 

(a)          Except during the
continuance of an Event of Default,

 

22

 

(1)          the Trustee undertakes to perform such
duties, and only such duties, as are specifically set forth in this Indenture
or the Trust Indenture Act, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

 

(2)          in the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture;
but in the case of any such certificates or opinions which by any provisions
hereof are specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not they
substantially conform to the requirements of this Indenture (but needs not
confirm or investigate the accuracy of mathematical calculations or other facts
stated therein).

 

(b)         In case an Event of
Default actually known to a Responsible Officer of the Trustee with respect to
the Securities of a series has occurred and is continuing, the Trustee shall
exercise such of the rights and powers vested in it by this Indenture with
respect to such series, and use the same degree of care and skill in their
exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs.

 

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

 

(1)          this Subsection shall not be construed to
limit the effect of Subsection (a) of this Section;

 

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

 

(3)          the Trustee shall not be liable with respect
to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders pursuant to Section 5.05 relating to the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture; and

 

(4)          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.

 

(d)         The Trustee shall not be
obligated to pay interest on any money or other assets received by it unless
otherwise agreed with the Company. 
Assets held in trust by the Trustee need not be segregated from other
funds except to the extent required by law.

 

(e)          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.

 

23

 

SECTION 6.02. 
Notice of Defaults.

 

Within 90 days
after the occurrence of any Default with respect to the Securities of any
series, the Trustee shall transmit by mail to all Holders of Securities of that
Series, as their names and addresses appear in the Security Register, notice of
all Defaults with respect to that Series actually known to a Responsible
Officer of the Trustee, unless such Defaults shall have been cured or waived
before the giving of such notice; provided,
however, that, except in the case of a Default in the payment of the
principal of or premium, if any, or interest on any of the Securities of such
series, the Trustee shall be protected in withholding such notice if and so
long as the Board of Directors and/or Responsible Officers of the Trustee in
good faith determine that the withholding of such notice is in the interests of
the Holders.

 

SECTION 6.03.  Certain
Rights of Trustee.

 

Except as
otherwise provided in Section 6.01:

 

(a)                                  the Trustee may
conclusively rely and shall be fully protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture or other
paper or document (whether in its original or facsimile form) believed by it to
be genuine and to have been signed or presented by the proper party or parties;

 

(b)                                 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
may be sufficiently evidenced by a Board Resolution;

 

(c)                                  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, conclusively rely
upon an Officers’ Certificate;

 

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

 

(e)                                  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 security
or indemnity satisfactory to it against the costs, expenses and liabilities
which might be incurred by it in complying with such request or direction;

 

(f)                                    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 or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, 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

 

24

 

the Company, personally or by agent or attorney at the expense of the
Company and shall incur no liability of any kind by reason of such inquiry or
investigation;

 

(g)                                 the Trustee may
execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents or attorneys 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;

 

(h)                                 the Trustee shall not
be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such a default is received by the
Trustee pursuant to Section 13.02, and such notice references the Securities
and this Indenture; and

 

(i)                                     the rights,
privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder.

 

(j)                                     the Trustee may
request that the Company deliver an Officers’ Certificate setting forth the
names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers’ Certificate may
be signed by any person authorized to sign an Officers’ Certificate, including
any person specified as so authorized in any such certificate previously
delivered and not superseded.

 

SECTION 6.04.  Not
Responsible for Recitals or Issuance of Securities.

 

The recitals
contained herein and in the Securities, except the Trustee’s certificate of
authentication, shall be taken as the statements of the Company, and the
Trustee and any Authenticating Agent assume no responsibility for their correctness.  The Trustee and any Authenticating Agent
make no representations as to the validity or sufficiency of this Indenture or
of the Securities.  The Trustee shall
not be accountable for the use or application by the Company of the Securities
or the proceeds thereof.

 

SECTION 6.05. 
May Hold Securities.

 

The Trustee,
any Paying Agent, Security Registrar, Authenticating Agent or any other agent
of the Company or of the Trustee, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 6.08 and
6.13, may otherwise deal with the Company with the same rights it would have if
it were not Trustee, Paying Agent, Security Registrar, Authenticating Agent or
such other agent.

 

SECTION 6.06.  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.

 

25

 

SECTION 6.07. 
Compensation and Reimbursement.

 

The Company
agrees:

 

(1)          to pay to the Trustee from time to time such
compensation as the Company and the Trustee shall from time to time agree in
writing 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 shall be determined by a court of competent
jurisdiction to have been caused by its own negligence or willful misconduct;
and

 

(3)          to fully indemnify the Trustee, any
predecessor Trustee and their agents for, and to hold them harmless against,
any and all loss, liability, claim, damage, taxes (other than taxes based upon
the income of the Trustee) or expense (including legal fees and expenses)
incurred without negligence or willful misconduct on their part, arising out of
or in connection with the acceptance or administration of this trust, including
the costs and expenses of defending themselves against any claim (whether
asserted by the Company, or any Holder or any other Person) or liability in connection
with the exercise or performance of any of their powers or duties hereunder and
shall not be subordinate to the payment of Senior Indebtedness pursuant to
Article Twelve.

 

As security
for the performance of the obligations of the Company under this Section the
Trustee shall have a lien prior to the Securities upon all property and funds
held or collected by the Trustee as such, except funds held in trust for the
payment of principal of (or premium, if any) or interest on Securities.

 

When the
Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 5.01(d), the expenses (including the reasonable
charges and expenses of its counsel) and the compensation for the services are
intended to constitute expenses of administration under any applicable Federal
or state bankruptcy, insolvency or other similar law.

 

The provisions
of this Section shall survive the termination of this Indenture and the
resignation or removal of the Trustee.

 

SECTION 6.08.  Disqualification;
Conflicting Interests.

 

The Trustee for the Securities shall be
subject to the provisions of Section 310(b) of the Trust Indenture Act during
the period of time required thereby. Nothing herein shall prevent the Trustee
from filing with the Commission the application referred to in the penultimate
paragraph of Section 310(b) of the Trust Indenture Act. In determining whether
the Trustee has a conflicting interest as defined in Section 310(b) of the
Trust Indenture Act with respect to the Securities of any series, there shall
be excluded Securities of any particular series of Securities other than that
series.

 

26

 

SECTION 6.09. 
Corporate Trustee Required;
Eligibility.

 

There
shall at all times be a Trustee hereunder which shall be:

 

(1)          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 exercise corporate trust
powers, and subject to supervision or examination by Federal or State
authority, or

 

(2)          a corporation or other Person organized and
doing business under the laws of a foreign government that is permitted to act
as a Trustee pursuant to a rule, regulation, or other order of the Commission,
authorized under such laws to exercise corporate trust powers, and subject to
supervision or examination by authority of such foreign government or a
political subdivision thereof substantially equivalent to supervision or
examination applicable to United States institutional trustee,

 

having (or, in
the case of a subsidiary of a bank holding company, its holding company parent
shall have) a combined capital and surplus of at least $50,000,000 and having
its Corporate Trust Office in the Borough of Manhattan, the City of New York,
or such other city as contemplated by Section 3.01 with respect to any series
of Securities. If such corporation publishes reports of condition at least
annually, pursuant to law or to requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. Neither the Company nor any Person directly or indirectly
controlling, controlled by, or under the common control with the Company shall
serve as Trustee for the Securities. If at any time the Trustee shall cease to
be eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereunder specified in this
Article.

 

SECTION 6.10.   Resignation
and Removal; Appointment of Successor.

 

(a)          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 under Section 6.11.

 

(b)         The Trustee may resign at
any time with respect to one or more or all series of Securities by giving
written notice thereof to the Company. 
If an instrument of acceptance by a successor Trustee required by
Section 6.11 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition at
the expense of the Company any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.

 

(c)          The Holders of a
majority in aggregate principal amount of the Securities of one or more series
(each series voting as a class) or all series at the time Outstanding may at
any time remove the Trustee with respect to the applicable series or all
series, as the case may be, and by written notice of such action to the
Company, the Trustee and the successor Trustee, nominate with respect to the
applicable series or all series, as the case may be, a successor Trustee, which
shall be deemed appointed as successor Trustee with respect to the applicable
series unless within ten days after such nomination the Company objects
thereto, in which case the Trustee so

 

27

removed or any Holder of Securities of the applicable series who has
been a bona fide holder of a Security or the applicable series for at least six
months may, subject to the provisions of Section 5.09 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 such
series.

 

(d)         If at any time:

 

(1)          the Trustee shall fail to comply with Section
310(b) of the Trust Indenture Act pursuant to Section 6.08 hereof 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, unless the Trustee’s duty to
resign is stayed in accordance with the provisions of Section 310(b) of the
Trust Indenture Act, or

 

(2)          the Trustee shall cease to be eligible under
Section 6.09 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 a decree or order for relief by a court having jurisdiction in the premises
shall have been entered in respect of the Trustee in an involuntary case under
the Federal bankruptcy laws, as now or hereafter constituted, or any other
applicable Federal or State, bankruptcy, insolvency or similar law; or a decree
or order by a court having jurisdiction in the premises for the appointment of
a receiver or custodian or liquidator or trustee or assignee in bankruptcy or
insolvency of the Trustee or of its property, or for the winding up of its
affairs shall have been entered, or

 

(4)          the Trustee shall commence a voluntary case
under the Federal bankruptcy laws, as now or hereafter constituted, or any
other applicable Federal or State bankruptcy, insolvency or similar law, or
shall consent to the appointment of a receiver or custodian or liquidator or
trustee or assignee in bankruptcy or insolvency of it or of its property, or
shall make an assignment for the benefit of creditors, or shall fail generally
to pay its debts as they become due, or corporate action shall be taken by the
Trustee in furtherance of any such action,

 

then, in any
such case, (i) the Company by a Board Resolution may remove the Trustee, or
(ii) subject to Section 5.09, 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 and the appointment of a successor Trustee.

 

(e)          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 to the vacated office. 
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, become the successor Trustee
with respect to the Securities of such series and supersede the successor
Trustee appointed by the

 

28

 

Company.  If no successor Trustee shall have been so
appointed by the Company or the Holders and accepted appointment in the manner
hereinafter provided, 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.

 

(f)            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 by mailing written notice of such event
by first-class mail, postage prepaid, to the Holders of Securities of such
series as their names and addresses appear in the Security Register.  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 6.11.  Acceptance
of Appointment by Successor.

 

Every
successor Trustee appointed hereunder 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 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, subject nevertheless to its lien, if any, provided for in
Section 6.07.  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.

 

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 predecessor Trustee and each
successor Trustee with respect to the Securities of any applicable series shall
execute and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the predecessor Trustee with respect to
the Securities of any series as to which the predecessor Trustee is not
retiring shall continue to be vested in the predecessor Trustee, and shall add
to or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the 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 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.

 

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 6.12. 
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 of

 

29

 

the corporate
trust business of the Trustee (including the administration of the trust
created by this Indenture), 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 Security 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 6.13.   Preferential
Collection of Claims Against Company.

 

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

 

SECTION 6.14.  Appointment of Authenticating Agent.

 

At any time
when any of the Securities remain Outstanding the Trustee may appoint an
Authenticating Agent or Agents which shall be authorized to act on behalf of
the Trustee to authenticate Securities issued upon exchange, transfer or
partial redemption thereof or pursuant to Section 3.06, 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 bank or trust company or corporation organized and doing
business and in good standing under the laws of the United States of America,
or of any State, authorized under such laws to act as Authenticating Agent,
having a combined capital and surplus of not less than $1,500,000 and subject
to supervision or examination by Federal or State authorities.  If such Authenticating Agent publishes
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purposes of
this Section, 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. 
In case 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.

 

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 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 at any time resign by giving written notice of
resignation to the Trustee and to the Company. 
The Trustee may at any time terminate the agency of an

 

30

 

Authenticating
Agent by giving written notice of termination 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 mail notice of such
appointment to all Holders, as their names and addresses appear on the Security
Register.  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 herein.  No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

 

The Company
agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

 

If an
appointment is made pursuant to this Section, the Securities shall have
endorsed thereon, in addition to the Trustee’s Certificate, an alternate
Trustee’s Certificate in the following form:

 

This is one of
the Securities described in the within-mentioned Indenture.

 

	
   

  	
   

  	
  U.S. Bank National Association,

  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authenticating Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
					

 

ARTICLE SEVEN

 

HOLDER’S LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

SECTION 7.01. 
Company to Furnish Trustee Names and
Addresses of Holders.

 

The Company
will furnish or cause to be furnished to the Trustee:

 

(a)                                  semi-annually (and
not more than 15 days after each Regular Record Date of each series of
Securities having such a Regular Record Date), a list, in such form as the
Trustee may reasonable require, of the names and addresses of the Holders as of
such Regular Record Date, and

 

31

 

(b)                                 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 the capacity of Security Registrar if the
Trustee is then acting in such capacity.

 

SECTION 7.02. 
Preservation of Information;
Communications to Holders.

 

(a)          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 7.01 and the names and addresses of Holders received by
the Trustee in the capacity of Security Registrar if the Trustee is then acting
in such capacity.  The Trustee may
destroy any list furnished to it as provided in Section 7.01 upon receipt of a
new list so furnished.

 

(b)         If three or more Holders
(hereinafter referred to as “applicants”) apply in writing to the Trustee, and
furnish to the Trustee reasonable proof that each such applicant has owned a
Security for a period of at least six months preceding the date of such
application, and such application states that the applicants desire to
communicate with other Holders with respect to their rights under this
Indenture or under the Securities and is accompanied by a copy of the form of
proxy or other communication which such applicants propose to transmit, then
the Trustee shall, within five business days after the receipt of such
application, at its election, either:

 

(i)                                     afford such
applicants access to the information preserved at the time by the Trustee in
accordance with Section 7.02(a), or

 

(ii)                                  inform such
applicants as to the approximate number of Holders whose names and addresses
appear in the information preserved at the time by the Trustee in accordance
with Section 7.02(a), and as to the approximate cost of mailing to such Holders
the form of proxy or other communication, if any, specified in such
application.

 

If the Trustee
shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Holder
whose name and address appears in the information preserved at the time by the
Trustee in accordance with Section 7.02(a), a copy of the form of proxy or
other communication which is specified in such request, with reasonable
promptness after a tender to the Trustee of the material to be mailed and of
payment, or provision for the payment, of the reasonable expenses of mailing,
unless within five days after such tender, the Trustee shall mail to such
applicants and file with the Commission, together with a copy of the material
to be mailed, a written statement to the effect that, in the opinion of the
Trustee, such mailing would be contrary to the best interests of the Holders or
would be in violation of applicable law. 
Such written statement shall specify the basis of such opinion.  If the Commission, after opportunity for a
hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all the objections
so sustained have been met and shall enter an order so declaring, the Trustee
shall mail copies of such material to all such Holders with reasonable
promptness after the entry of such order and

 

32

 

the renewal of
such tender; otherwise the Trustee shall be relieved of any obligation or duty
to such applicants respecting their application.

 

(c)          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 Authenticating Agent
nor any Paying Agent nor any Security Registrar shall be held accountable by
reason of the disclosure of any such information as to the names and addresses
of the Holders in accordance with Section 7.02(b), regardless of the source
from which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
Section 7.02(b).

 

SECTION 7.03.  Reports by Trustee.

 

(a)          Within 60 days after May
15 of each year commencing with the year 20   , the Trustee
shall transmit by mail to all Holders, as their names and addresses appear in
the Security Register, a brief report dated as of May 15 with respect to any of
the following events which may have occurred within the prior 12 months (but if
no such event has occurred within such period no report need be transmitted):

 

(1)          any change to its eligibility under Section
6.09 and its qualifications under Section 6.08;

 

(2)          the creation of any material change to a
relationship specified in Section 310(b)(1) through Section 310(b)(10) of the
Trust Indenture Act;

 

(3)          the character and amount of any advances (and
if the Trustee elects so to state the circumstances surrounding the making
thereof) made by the Trustee (as such) that remain unpaid on the date of such
report, and for the reimbursement of which it claims or may claim a lien or
charge, prior to that of the Securities, on any property or funds held or
collected by it as Trustee, except that the Trustee shall not be required (but
may elect) to report such advances if such advances so remaining unpaid
aggregate not more than 1/2 of 1% of the principal amount of the Outstanding
Securities on the date of such report;

 

(4)          any change to the amount, interest rate and
maturity date of all other indebtedness owing by the Company (or by any other
obligor on the Securities) to the Trustee in its individual capacity, on the
date of such report, with a brief description of any property held as
collateral security therefor, except an indebtedness based upon a creditor
relationship arising in any manner described in Section 6.13(b)(2), (3), (4) or
(6);

 

(5)          any change to the property and funds, if any,
physically in the possession of the Trustee as such on the date of such report;

 

(6)          any additional issue of Securities which the
Trustee has not previously reported; and

 

(7)          any action taken by the Trustee in the
performance of its duties hereunder that it has not previously reported and
that in its opinion materially affects the Securities,

 

33

 

except action in respect of a default, notice of which has been or is
to be withheld by the Trustee in accordance with Section 6.02.

 

(b)         The Trustee shall
transmit by mail to all Holders, as their names and addresses appear in the
Security Register, a brief report with respect to the character and amount of
any advances (and if the Trustee elects so to state, the circumstances
surrounding the making thereof) made by the Trustee (as such) since the date of
the last report transmitted pursuant to Subsection (a) of this Section (or if
no such report has yet been so transmitted, since the date of execution of this
instrument) for the reimbursement of which it claims or may claim a lien or
charge, prior to that of the Securities, on property or funds held or collected
by it as Trustee, and which it has not previously reported pursuant to this
Subsection, except that the Trustee shall not be required (but may elect) to
report such advances if such advances remaining unpaid at any time aggregate
10% or less of the principal amount of the Outstanding Securities at such time,
such report to be transmitted within 90 days after such time.

 

(c)          A copy of each such
report shall, at the time of such transmission to Holders, be filed by the
Trustee with each securities exchange upon which the Securities are listed and
also with the Commission.  The Company
will notify the Trustee when the Securities are listed on any securities
exchange.

 

SECTION 7.04. 
Reports by Company.

 

The Company
will:

 

(1)          File with the Trustee, within 15 days after
the Company files them with or furnishes them to the Commission, copies of the
annual reports and of the information, documents and other reports (or copies
of such portions of any of the foregoing as the Commission may from time to
time by rules and regulations prescribe) which the Company may be required to
file with the Commission pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934; provided, however, that delivery of said
reports, information and documents to the Trustee by electronic means shall
constitute “filing” of such reports with the Trustee for purposes of this
Section 7.04; provided, further, that the Company shall not be required to
deliver to the Trustee any materials for which the Company has sought and
obtained confidential treatment from the Commission; and

 

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

 

Delivery of
such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).

 

34

 

ARTICLE EIGHT

 

CONSOLIDATION, MERGER, SALE, CONVEYANCE OR LEASE

 

SECTION 8.01.  Consolidations
and Mergers of Company and Conveyances Permitted Subject to Certain Conditions.

 

The Company
shall not consolidate with or merge into any other Person (in a transaction in
which the Company is not the surviving corporation) or convey, transfer or
lease its properties and assets substantially as an entirety to any Person,
unless:

 

(1)          in case the Company shall consolidate with or
merge into another Person (in a transaction in which the Company is not the
surviving corporation) or convey, transfer or lease its properties and assets
substantially 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, the properties and assets of the
Company substantially as an entirety shall be a corporation 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, 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 8.02.  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 8.01, 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.

 

35

 

ARTICLE NINE

 

SUPPLEMENTAL INDENTURES

 

SECTION 9.01.  Supplemental Indentures without Consent of Holders.  The Company, when authorized by a Board
Resolution and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto for one or more of the following
purposes:

 

(a)                                  to evidence the
succession of another corporation to the Company, or successive successions, and
the assumption by the successor corporation of the covenants, agreements and
obligations of the Company hereunder and the Securities; or

 

(b)                                 to convey, transfer,
assign, mortgage or pledge to the Trustee as security for the Securities any
property or assets which the Company may desire; or

 

(c)                                  to add to the
covenants of the Company such further covenants, restrictions or conditions for
the protection 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) as the Board of Directors of the Company and the Trustee shall
consider to be for the protection of the Holders of such Securities, and to
make the occurrence, or the occurrence and continuance, of a default in any of
such additional covenants, restrictions or conditions a default or an Event of
Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided, however, that in respect of any such additional
covenant, restriction or condition such supplemental indenture may provide for
a particular period of grace after default (which period may be shorter or
longer than that allowed in the case of other defaults) or may provide for an
immediate enforcement upon such default or may limit the remedies available to
the Trustee upon such default; or

 

(d)                                 to provide for the
issuance under this Indenture of Securities in coupon form (including
Securities registrable as to principal only) and to provide for exchangeability
of such Securities with the Securities issued hereunder in fully registered
form and to make all appropriate changes for such purpose; or

 

(e)                                  to establish the form
or terms of Securities of any series as permitted by Sections 2.01 and 3.01; or

 

(f)                                    to cure any
ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture that may be defective or inconsistent with any other
provision contained herein or in any supplemental indenture, or to make such
other provisions in regard to matters or questions arising under this Indenture
that shall not adversely affect the interests of any Holder in any material
respect; or

 

(g)                                 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

 

36

 

facilitate the administration of the trusts hereunder by more than one
trustee, pursuant to the requirements of Section 6.11; or

 

(h)                                 to surrender any right
or power herein conferred upon the Company;

 

(i)                                     to comply with the
requirements of the Commission in order to maintain the qualification of this
Indenture under the Trust Indenture Act; or

 

(j)                                     to add or modify
any other provisions with respect to matters or questions arising under this
Indenture which the Company and the Trustee may deem necessary or desirable; provided, however, that such action
pursuant to this clause (j) does not, in the good faith opinion of the Board of
Directors of the Company (as evidenced by a Board Resolution) and the Trustee,
adversely affect the interests of any Holder of Securities in any material
respect; or

 

(k)                                  to modify the
covenants or Events of Default solely in respect of, or add new covenants or
Events of Default that apply solely to, Securities not Outstanding on the date
of such supplemental indenture.

 

The Trustee is
hereby authorized to join with the Company in the execution of any such
supplemental indenture, to make any further appropriate agreements and
stipulations which may be therein contained and to accept the conveyance,
transfer, assignment, mortgage or pledge of any property thereunder, but the
Trustee shall not be obligated to, but may in its discretion, enter into any
such supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

 

Any
supplemental indenture authorized by the provisions of this Section 9.01 may be
executed by the Company and the Trustee without the consent of the Holders of
any of the Securities at the time Outstanding, notwithstanding any of the
provisions of Section 9.02.

 

SECTION 9.02.  Supplemental Indentures and Waiver with Consent of
Holders.  With the consent
(evidenced as provided in Section 1.02) of the Holders of not less than
a majority in aggregate principal amount of the Outstanding Securities of each
series affected by such supplemental indenture (each series voting separately
as a class), the Company, when authorized by a Board Resolution, and the
Trustee may from time to time and at any time 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 any
supplemental indenture or of modifying in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the Holders of the Securities of each such series;
and the Holders of not less than a majority in aggregate principal amount of
the Outstanding Securities of each series affected by such waiver (each series
voting separately as a class) may waive the Company’s compliance with any of
the provisions of this Indenture or of any supplemental indenture; provided,
however, that no such supplemental indenture or waiver shall, without the
consent of the Holder of each affected Security, (i) change the Stated Maturity
of any Security, or reduce the rate or change the time of payment of interest
thereon, or reduce the principal amount thereof or any premium thereon, or make
the principal thereof or interest or premium thereon payable in any coin or
currency other than that provided in the Securities or impair the right to
institute suit for enforcement of any

 

37

 

such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date), or adversely affect the right of repayment, if any, at the
option of the Holder, (ii) reduce the aforesaid percentage of Securities, the
Holders of which are required to consent to any such supplemental indenture, or
the Holders of which are required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture without the consent of the Holder
of each Security or (iii) modify any of the provisions of this Indenture
relating to the subordination of the Securities in a manner adverse to the
Holders.  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.

 

Upon the
request of the Company, accompanied by a Board Resolution authorizing the
execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of Holders as aforesaid, the Trustee shall
join with the Company in the execution of such supplemental indenture unless
such supplemental indenture affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such supplemental
indenture.  

 

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

 

SECTION 9.03.  Compliance
with Trust Indenture Act; Effect of Supplemental Indentures.  Any supplemental indenture executed pursuant
to the provisions of this Article Nine shall comply with the Trust Indenture
Act of 1939, as then in effect.  Upon
the execution of any supplemental indenture pursuant to the provisions of this
Article Nine, this Indenture shall be deemed to be modified and amended in
accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the
Company, and the Holders shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

 

SECTION 9.04.  Notation
on Securities.  Securities
authenticated and delivered after the execution of any supplemental indenture
pursuant to the provisions of this Article Nine may bear a notation in form
approved by the Trustee as to any matter provided for in such supplemental
indenture.  If the Company or the
Trustee shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Board of Directors, to any modification
of this Indenture contained in any such supplemental indenture may be prepared
and executed by the Company, authenticated by the Trustee and delivered in
exchange for the Securities of such series then Outstanding.

 

38

 

SECTION 9.05.  Evidence
of Compliance of Supplemental Indenture to be Furnished Trustee.

 

The Trustee,
subject to the provisions of Section 6.01, shall be provided with an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant hereto complies with the requirements
of this Article Nine.

 

ARTICLE TEN

 

COVENANTS

 

SECTION 10.01.  Payment
of Principal and Interest.

 

The Company
will duly and punctually pay or cause to be paid the principal of, premium, if
any, and interest, if any, on the Securities in accordance with the terms of
the Securities and this Indenture.

 

SECTION 10.02.  Maintenance
of Office or Agency.

 

The Company
shall maintain an office or agency where Securities may be presented or
surrendered for payment and an office or agency where Securities may be
surrendered for transfer or exchange and where notices and demands to or upon
the Company in respect of the Securities and this Indenture may be served.  The Corporate Trust Office of the Trustee
shall be such office of the Company, and the Trustee shall be the agent of the
Company for all of the foregoing purposes, unless the Company shall designate
and maintain some other office or agency for such purposes and give the Trustee
written notice of the location thereof. 
The Company will give prompt written notice to the Trustee of any change
in the location of any such office or agency. 
If at any time the Company shall fail to maintain any such required
office or agency, the Corporate Trust Office of the Trustee shall be
conclusively deemed to be the agency of the Company for all such purposes.

 

SECTION 10.03.  Money
for Security Payments to be Held in Trust.

 

If the Company
shall at any time act as its own Paying Agent, it will, on or before each due
date of the principal of or premium, if any, or interest on, any of the
Securities, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal or premium, if any, or 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 it will, on each due date of the
principal of or interest on, any Securities, deposit with a Paying Agent a sum
sufficient to pay the principal or premium, if any, or interest, so becoming
due, such sum to be held in trust for the benefit of the Persons entitled to
such principal or premium, if any, or interest, and (unless such Paying Agent
is the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.

 

The Company
will cause each Paying Agent 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:

 

39

 

(1)          hold all sums held by it for the payment of
the principal of or premium, if any, or interest on Securities in trust for the
benefit of the Persons entitled thereto until such sums shall be paid to such
Persons or otherwise disposed of as herein provided;

 

(2)          give the Trustee notice of any default by the
Company (or any other obligor upon the Securities) in the making of any payment
of principal or premium, if any, or interest; and

 

(3)          at any time during the continuance of any
such default, upon the written request of the Trustee, forthwith pay to the
Trustee all sums so held in trust by such Paying Agent.

 

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 premium, if any, or interest on
any Security and remaining unclaimed for two years after such principal or
premium, if any 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 the Borough of Manhattan, The City
of 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 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 10.04.   Compliance
Certificates.

 

The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year of the Company (beginning with the fiscal year ending
December 31, 20   ), an Officers’ Certificate as to the signer’s
knowledge of the Company’s compliance with all conditions and covenants on its
part contained in this Indenture and stating whether or not the signer knows of
any Default or Event of Default.  If
such signer knows of such a Default or Event of Default, the Officers’
Certificate shall describe the Default or Event of Default and the efforts to
remedy the same.  For the purposes of
this Section 10.04, compliance shall be determined without regard to any
grace period or requirement of notice provided pursuant to the terms of this
Indenture.

 

40

 

SECTION 10.05.   Corporate 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 corporate
existence.

 

SECTION 10.06.  Waiver of
Certain Covenants.

 

The Company
may omit in any particular instance to comply with any covenant or condition
set forth in Section 10.05 or any covenant added for the benefit of any series
of Securities as contemplated by Section 3.01, if before or after the time for
such compliance the Holders of at least a majority in principal amount of the
Securities of such series at the time Outstanding shall, by Act of such
Holders, waive such compliance in such instance, but no such waiver shall
extend to or affect such covenant 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 covenant or
condition shall remain in full force and effect.

 

ARTICLE ELEVEN

 

REDEMPTION OF SECURITIES

 

SECTION 11.01.  Applicability
of Article.  The provisions
of this Article shall be applicable to the Securities of any series that are
redeemable before their maturity except as otherwise specified as contemplated
by Section 3.01 for Securities of such series.

 

SECTION 11.02.  Notice of
Redemption; Selection of Securities.  In case the Company shall desire to exercise the right to redeem
all, or, as the case may be, any part of the Securities of any series in
accordance with their terms, it shall fix a date for redemption and shall mail
or cause to be mailed a notice of such redemption at least 20 and not more than
60 days prior to the date fixed for redemption to the Holders of Securities of
such series so to be redeemed as a whole or in part at their last addresses as the
same appear on the Security Register. 
Such mailing shall be by first class mail.  The notice if mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the Holder
receives such notice.  In any case, failure
to give such notice by mail or any defect in the notice to the Holder of any
Security of a series designated for redemption as a whole or in part shall not
affect the validity of the proceedings for the redemption of any other Security
of such series.

 

Each such
notice of redemption shall include CUSIP numbers and specify the date fixed for
redemption, the redemption price at which Securities of such series are to be
redeemed, the place or places of payment, that payment will be made upon
presentation and surrender of such Securities, that any interest accrued to the
date fixed for redemption will be paid as specified in said notice, and that on
and after said date any interest thereon or on the portions thereof to be
redeemed will cease to accrue.  If less
than all the Securities of a series are to be redeemed the notice of redemption
shall specify the numbers of the Securities of that series to be redeemed.  In case any Security of a series is to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the

 

41

 

date fixed for
redemption, upon surrender of such Security, a new Security or Securities of
that series in principal amount equal to the unredeemed portion thereof will be
issued.

 

On the
redemption date specified in the notice of redemption given as provided in this
Section 11.02, the Company will deposit with the Trustee or with one or more
paying agents an amount of money sufficient to redeem on the redemption date
all the Securities or portions thereof so called for redemption at the
appropriate redemption price, together with accrued interest to the date fixed
for redemption.

 

If all or less
than all the Securities of a series are to be redeemed, the Company will give
the Trustee notice not less than 60 days prior to the redemption date (unless a
shorter period is acceptable to the Trustee) as to the aggregate principal
amount of Securities to be redeemed and the Trustee shall select, in such
manner as in its sole discretion it shall deem appropriate, the Securities of
that series or portions thereof (in multiples of $1,000, except as otherwise
set forth in the applicable form of Security) to be redeemed.

 

SECTION 11.03.  Payment of
Securities Called for Redemption. 
If notice of redemption has been given as provided in Section 11.02, the
Securities or portions of Securities of the series with respect to which such
notice has been given shall become due and payable on the date and at the place
or places stated in such notice at the applicable redemption price, together
with any interest accrued to the date fixed for redemption, and on and after
said date (unless the Company shall default in the payment of such Securities
at the applicable redemption price, together with any interest accrued to said
date) any interest on the Securities or portions of Securities of any series so
called for redemption shall cease to accrue. 
On presentation and surrender of such Securities at a place of payment
in said notice specified, the said Securities or the specified portions thereof
shall be paid and redeemed by the Company at the applicable redemption price,
together with any interest accrued thereon to the date fixed for redemption.

 

Upon
presentation of any Security redeemed in part only, the Company shall execute
and the Trustee shall authenticate and deliver to the Holder thereof, at the
expense of the Company, a new Security or Securities of such series, of authorized
denominations, in principal amount equal to the unredeemed portion of the
Security so presented.

 

ARTICLE TWELVE

 

SUBORDINATION

 

SECTION 12.01.  Agreement
to Subordinate.  The Company
covenants and agrees, and each Holder of Securities issued hereunder by its
acceptance thereof likewise covenants and agrees, that all Securities shall be
issued subject to the provisions of this Article Twelve; and each Person
holding any Security, whether upon original issue or upon transfer, assignment
or exchange thereof, accepts and agrees to be bound by such provisions.

 

The payment of the principal of, premium, if any, and interest on all
Securities issued hereunder shall, to the extent and in the manner hereinafter
set forth, be subordinated and subject in right of payment to the prior payment
in full in cash or payment satisfactory to the holders of Senior Indebtedness
of all Senior Indebtedness, whether outstanding at the date of this Indenture
or thereafter incurred.

 

42

 

No provision of this Article Twelve shall
prevent the occurrence of any default or Event of Default hereunder.

 

SECTION 12.02.   Payments to
Holders.  No payment shall be
made with respect to the principal of, or premium, if any, or interest on the
Securities, except payments and distributions made by the Trustee as permitted
by the first or second paragraph of Section 12.05, if:

 

(i)                                     a
default in the payment of principal, premium, interest, rent or other
obligations due on any Designated Senior Indebtedness occurs and is continuing
(or, in the case of Designated Senior Indebtedness for which there is a period
of grace, in the event of such a default that continues beyond the period of
grace, if any, specified in the instrument or lease evidencing such Designated
Senior Indebtedness), unless and until such default shall have been cured or
waived or shall have ceased to exist; or

 

(ii)                                  a
default, other than a payment default, on a Designated Senior Indebtedness
occurs and is continuing that then permits holders of such Designated Senior
Indebtedness to accelerate its maturity and the Trustee receives a notice of
the default (a “Payment Blockage Notice”)
from a Representative or holder of Designated Senior Indebtedness or the
Company.

 

Subject to the
provisions of Section 12.05, if the Trustee receives any Payment Blockage
Notice pursuant to clause (ii) above, no subsequent Payment Blockage
Notice shall be effective for purposes of this Section unless and until (a) at
least 365 days shall have elapsed since the initial effectiveness of the
immediately prior Payment Blockage Notice; and (b) all scheduled payments on
the Securities that have come due have been paid in full in cash.  No nonpayment default that existed or was
continuing on the date of delivery of any Payment Blockage Notice to the
Trustee (unless such default was waived, cured or otherwise ceased to exist and
thereafter subsequently reoccurred) shall be, or be made, the basis for a
subsequent Payment Blockage Notice.

 

The Company may
and shall resume payments on and distributions in respect of the Securities
upon the earlier of:

 

(a)          in the case of a default
referred to in clause (i) above, the date upon which the default is cured
or waived or ceases to exist, or

 

(b)         in the case of a default
referred to in clause (ii) above, 
the earlier of the date on which such default is cured or waived or
ceases to exist or 179 days pass after the date on which the applicable Payment
Blockage Notice is received, if the maturity of such Designated Senior Indebtedness
has not been accelerated, unless this Article Twelve otherwise prohibits the
payment or distribution at the time of such payment or distribution.

 

Upon
any payment by the Company, or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, to creditors upon
any dissolution or winding-up or liquidation or reorganization of the Company
(whether voluntary or involuntary) or in bankruptcy, insolvency, receivership
or similar proceedings, all amounts due or to become due upon all Senior
Indebtedness shall first be paid in full in cash, or other payments
satisfactory to the holders of Senior Indebtedness before any payment is made
on account of the principal of, premium, if any, or interest on the Securities
(except payments made pursuant to Article Four

 

43

 

from monies deposited with the Trustee pursuant
thereto prior to commencement of proceedings for such dissolution, winding-up,
liquidation or reorganization); and upon any such dissolution or winding-up or
liquidation or reorganization of the Company or bankruptcy, insolvency,
receivership or other proceeding, any payment by the Company, or distribution
of assets of the Company of any kind or character, whether in cash, property or
securities, to which the Holders of the Securities or the Trustee would be
entitled, except for the provision of this Article Twelve, shall (except as
aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Holders of the Securities or by the Trustee under this Indenture if
received by them or it, directly to the holders of Senior Indebtedness (pro
rata to such holders on the basis of the respective amounts of Senior
Indebtedness held by such holders, or as otherwise required by law or a court
order) or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any
Senior Indebtedness may have been issued, as their respective interests may
appear, to the extent necessary to pay all Senior Indebtedness in full in cash,
or other payment satisfactory to the holders of Senior Indebtedness, after giving
effect to any concurrent payment or distribution to or for the holders of
Senior Indebtedness, before any payment or distribution is made to the Holders
of the Securities or to the Trustee.

 

For
purposes of this Article Twelve, the words, “cash, property or securities”
shall not be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of reorganization or readjustment, the payment of which is subordinated
at least to the extent provided in this Article Twelve with respect to the
Securities to the payment of all Senior Indebtedness which may at the time be
outstanding; provided that
(i) the Senior Indebtedness is assumed by the new corporation, if any, resulting
from any reorganization or readjustment, and (ii) the rights of the
holders of Senior Indebtedness (other than leases which are not assumed by the
Company or the new corporation, as the case may be) are not, without the
consent of such holders, altered by such reorganization or readjustment. The
consolidation of the Company with, or the merger of the Company into, another
corporation or the liquidation or dissolution of the Company following the
conveyance, transfer or lease of its property as an entirety, or substantially
as an entirety, to another corporation upon the terms and conditions provided
for in Article Eight shall not be deemed a dissolution, winding-up, liquidation
or reorganization for the purposes of this Section 12.02 if such other corporation
shall, as a part of such consolidation, merger, conveyance, transfer or lease,
comply with the conditions stated in Article Eight.

 

In the
event of the acceleration of the Securities because of an Event of Default, no
payment or distribution shall be made to the Trustee or any Holder of
Securities in respect of the principal of, premium, if any, or interest on the
Securities by the Company, except payments and distributions made by the
Trustee as permitted by Section 12.05, until all Senior Indebtedness has been
paid in full in cash or other payment satisfactory to the holders of Senior
Indebtedness or such acceleration is rescinded in accordance with the terms of
this Indenture. If payment of the Securities is accelerated because of an Event
of Default, the Company shall promptly notify holders of Senior Indebtedness of
such acceleration.

 

In the
event that, notwithstanding the foregoing provisions, any payment or
distribution of assets of the Company of any kind or character, whether in
cash, property or securities (including, without limitation, by way of setoff
or otherwise), prohibited by the foregoing, shall be received by the Trustee or
the Holders of the Securities before all Senior Indebtedness is paid

 

44

 

in full, in cash or other payment satisfactory to the
holders of Senior Indebtedness, or provision is made for such payment thereof
in accordance with its terms in cash or other payment satisfactory to the
holders of Senior Indebtedness, such payment or distribution shall be held in
trust for the benefit of and shall be paid over or delivered to the holders of
Senior Indebtedness or their representative or representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments
evidencing any Senior Indebtedness may have been issued, as their respective
interests may appear, as calculated by the Company, for application to the
payment of all Senior Indebtedness remaining unpaid to the extent necessary to
pay all Senior Indebtedness in full, in cash or other payment satisfactory to
the holders of Senior Indebtedness, after giving effect to any concurrent
payment or distribution to or for the holders of such Senior Indebtedness.

 

Nothing
in this Section 12.02 shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 6.07.  This
Section 12.02 shall be subject to the further provisions of Section 12.05.

 

SECTION 12.03.  Subrogation
of Securities.  Subject to
the payment in full, in cash or other payment satisfactory to the holders of
Senior Indebtedness, of all Senior Indebtedness, the rights of the Holders of
the Securities shall be subrogated to the extent of the payments or
distributions made to the holders of such Senior Indebtedness pursuant to the
provisions of this Article Twelve (equally and ratably with the holders of all
indebtedness of the Company which by its express terms is subordinated to other
indebtedness of the Company to substantially the same extent as the Securities
are subordinated and is entitled to like rights of subrogation) to the rights
of the holders of Senior Indebtedness to receive payments or distributions of
cash, property or securities of the Company applicable to the Senior
Indebtedness until the principal, premium, if any, and interest on the
Securities shall be paid in full in cash or other payment satisfactory to the
holders of Senior Indebtedness; and, for the purposes of such subrogation, no
payments or distributions to the holders of the Senior Indebtedness of any
cash, property or securities to which the Holders of the Securities or the
Trustee would be entitled except for the provisions of this Article Twelve, and
no payment over pursuant to the provisions of this Article Twelve, to or for
the benefit of the holders of Senior Indebtedness by Holders of the Securities
or the Trustee, shall, as between the Company, its creditors other than holders
of Senior Indebtedness, and the Holders of the Securities, be deemed to be a
payment by the Company to or on account of the Senior Indebtedness; and no
payments or distributions of cash, property or securities to or for the benefit
of the Holders of the Securities pursuant to the subrogation provisions of this
Article Twelve, which would otherwise have been paid to the holders of Senior
Indebtedness shall be deemed to be a payment by the Company to or for the
account of the Securities.  It is
understood that the provisions of this Article Twelve are and are intended
solely for the purposes of defining the relative rights of the Holders of the
Securities, on the one hand, and the holders of the Senior Indebtedness, on the
other hand.

 

Nothing
contained in this Article Twelve or elsewhere in this Indenture or in the
Securities is intended to or shall impair, as among the Company, its creditors
other than the holders of Senior Indebtedness, and the Holders of the
Securities, the obligation of the Company, which is absolute and unconditional,
to pay to the Holders of the Securities the principal of (and premium, if any)
and interest on the Securities as and when the same shall become due and
payable in accordance with their terms, or is intended to or shall affect the
relative rights of the Holders of the Securities and creditors of the Company
other than the holders of the Senior

 

45

 

Indebtedness, nor shall anything herein or therein
prevent the Trustee or the Holder of any Security from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article Twelve of the holders of
Senior Indebtedness in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.

 

Upon
any payment or distribution of assets of the Company referred to in this
Article Twelve, the Trustee, subject to the provisions of Section 6.01, and the Holders of the
Securities shall be entitled to rely upon any order or decree made by any court
of competent jurisdiction in which such bankruptcy, dissolution, winding-up,
liquidation or reorganization proceedings are pending, or a certificate of the
receiver, trustee in bankruptcy, liquidating trustee, agent or other person
making such payment or distribution, delivered to the Trustee or to the Holders
of the Securities, for the purpose of ascertaining the persons entitled to
participate in such distribution, the holders of the Senior Indebtedness and
other indebtedness of the Company, the amount thereof or payable thereon and
all other facts pertinent thereto or to this Article Twelve.

 

SECTION 12.04.  Authorization
to Effect Subordination. 
Each Holder of a Security by the Holder’s acceptance thereof authorizes
and directs the Trustee on the Holder’s behalf to take such action as may be
necessary or appropriate to effectuate the subordination as provided in this
Article Twelve and appoints the Trustee to act as the Holder’s attorney-in-fact
for any and all such purposes.  If the
Trustee does not file a proper proof of claim or proof of debt in the form required
in any proceeding referred to in Section 12.03 hereof at least 30 days before
the expiration of the time to file such claim, the holders of any Senior
Indebtedness or their representatives are hereby authorized to file an
appropriate claim for and on behalf of the Holders of the Securities.

 

SECTION 12.05.   Notice to
Trustee.  The Company shall
give prompt written notice in the form of an Officers’ Certificate to a Trust
Officer of the Trustee and to any Paying Agent of any fact known to the Company
which would prohibit the making of any payment of monies to or by the Trustee
or any Paying Agent in respect of the Securities pursuant to the provisions of
this Article Twelve. Notwithstanding the provisions of this Article Twelve or
any other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts which would prohibit the making of any
payment of monies to or by the Trustee in respect of the Securities pursuant to
the provisions of this Article Twelve, unless and until a Trust Officer of the
Trustee shall have received written notice thereof at the Corporate Trust
Office from the Company (in the form of an Officers’ Certificate) or a
Representative or a Holder or Holders of Senior Indebtedness or from any
trustee thereof; and before the receipt of any such written notice, the
Trustee, subject to the provisions of Section 6.01, shall be entitled in all
respects to assume that no such facts exist; provided that if on a date not
less than one Business Day prior to the date upon which by the terms hereof any
such monies may become payable for any purpose (including, without limitation,
the payment of the principal of, or premium, if any, or interest on any
Security) the Trustee shall not have received, with respect to such monies, the
notice provided for in this Section 12.05, then, anything herein contained to
the contrary notwithstanding, the Trustee shall have full power and authority
to receive such monies and to apply the same to the purpose for which they were
received, and shall not be affected by any notice to the contrary which may be
received by it on or after such prior date. Notwithstanding anything in this
Article Twelve to the contrary, nothing shall prevent any payment by the
Trustee

 

46

 

to the Holders of monies
deposited with it pursuant to Article Four, and any such payment shall not be
subject to the provisions of Article Twelve.

 

The
Trustee, subject to the provisions of Section 6.01, shall be entitled to rely
on the delivery to it of a written notice by a Representative or a person
representing himself to be a holder of Senior Indebtedness (or a trustee on
behalf of such holder) to establish that such notice has been given by a
Representative or a holder of Senior Indebtedness or a trustee on behalf of any
such holder or holders. In the event that the Trustee determines in good faith
that further evidence is required with respect to the right of any person as a
holder of Senior Indebtedness to participate in any payment or distribution
pursuant to this Article Twelve, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
Senior Indebtedness held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article Twelve, and if such
evidence is not furnished the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment.

 

SECTION 12.06.   Trustee’s
Relation to Senior Indebtedness. 
The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article Twelve in respect of any Senior Indebtedness
at any time held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in Section 6.13 or elsewhere in this Indenture shall
deprive the Trustee of any of its rights as such holder.

 

SECTION 12.07   Trustee as
Holder of Senior Indebtedness. 
The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article Twelve in respect of any Senior Indebtedness
at any time held by it to the same extent as any other holder of Senior
Indebtedness and nothing in this Indenture shall be construed to deprive the
Trustee of any of its rights as such holder.

 

With respect
to the holders of Senior Indebtedness, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set
forth in this Article Twelve, and no implied covenants or obligations with
respect to the holders of Senior Indebtedness shall be read into this Indenture
against the Trustee.  The Trustee shall
not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness
and, subject to the provisions of Section 6.01, the Trustee shall not be liable
to any holder of Senior Indebtedness if it shall pay over or deliver to Holders
of Securities, the Company or any other person money or assets to which any
holder of Senior Indebtedness shall be entitled by virtue of this Article
Twelve or otherwise.

 

SECTION 12.08.  No
Impairment of Subordination.  No right of any present or future holder of any Senior
Indebtedness to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company or by any act or failure to act, in good faith, by any such holder,
or by any noncompliance by the Company with the terms, provisions and covenants
of this Indenture, regardless of any knowledge thereof which any such holder
may have or otherwise be charged with.

 

SECTION 12.09.  Article
Applicable to Paying Agents. 
If at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and be then acting hereunder, the term “Trustee” as
used in this Article shall (unless the context otherwise requires) be construed
as extending to and including such Paying Agent within its meaning as fully for
all

 

47

 

intents and purposes as if such
Paying Agent were named in this Article in addition to or in place of the
Trustee;  provided, however,
that the first paragraph of Section 12.05 shall not apply to the Company or any
Affiliate of the Company if it or such Affiliate acts as Paying Agent.

 

SECTION 12.10.  Senior
Indebtedness Entitled to Rely.  The
holders of Senior Indebtedness (including, without limitation, Designated
Senior Indebtedness) shall have the right to rely upon this Article Twelve, and
no amendment or modification of the provisions contained herein shall diminish
the rights of such holders unless such holders shall have agreed in writing
thereto.

 

ARTICLE THIRTEEN

 

Miscellaneous

 

SECTION 13.01.  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 of opinion of, or representations
by, counsel, unless such officer knows that the certificate or opinion or
representations with respect to 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 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 13.02.  Notices.

 

Any notice or
communication by the Company or the Trustee to the others is duly given if in
writing and delivered in Person or mailed by first class mail (registered or
certified, return receipt requested), telex, telecopier or overnight air
courier guaranteeing next day delivery, to the others’ address.

 

48

 

If to the Company:

 

Abgenix, Inc.

6701 Kaiser
Drive

Fremont,
California  94555

Attention:
Chief Executive Officer

Facsimile No.:
(510) 608-6547

Phone No.
(510) 608-6500

 

With a copy
to:

 

Abgenix, Inc.

6701 Kaiser
Drive

Fremont,
California  94555

Attention:
General Counsel

Facsimile No.:
(510) 790-5102

Phone No. 
(510) 608-6500

 

If to the Trustee:

 

U.S. Bank National Association

633 West Fifth Street, 24th Floor

LM-CA-T24T

Los Angeles, California 90071

Attn:  Corporate Trust Services 

(Abgenix, Inc. Subordinated Securities)

Facsimile No.: (213) 615-6047

Phone No.: (213) 615-6043

 

The Company or
the Trustee, by notice to the others may designate additional or different
addresses for subsequent notices or communications.

 

All notices
and communications (other than those sent to Holders) shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt acknowledged, if telecopied; and
the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery; provided, however,
that any notice of communication to the Trustee shall not be deemed to be
received by it until actually received by it at the Corporate Trust Office of
the Trustee.

 

Any notice or
communication to a Holder shall be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing
next day delivery to its address shown on the register kept by the Security
Registrar.  Any notice or communication
shall also be so mailed to any Person described in TIA § 313(c), to the
extent required by the TIA.  Failure to
mail a notice or communication to a Holder or any defect in it shall not affect
its sufficiency with respect to other Holders.

 

49

 

If a notice or
communication addressed to a party other than the Trustee is mailed in the
manner provided above within the time prescribed, it is duly given, whether or
not the addressee receives it.

 

If the Company
mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

 

SECTION 13.03.  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, and not earlier than the earliest date, 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 13.04.  Trust
Indenture Act Controls.

 

If any
provision hereof limits, qualifies or conflicts with the duties imposed by any
of Section 310 through 317, inclusive, of the Trust Indenture Act through the
operation of Section 318(c) thereof, such imposed duties shall control.

 

SECTION 13.05.  Certificate
and Opinion as to Conditions Precedent.

 

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

 

(1)          an Officers’ Certificate in form and
substance reasonably satisfactory to the Trustee (which shall include the
statements set forth in Section 13.06 hereof) stating that, in the opinion of
the signers, all conditions precedent and covenants, if any, provided for in
this Indenture relating to the proposed action have been satisfied; and

 

(2)          an Opinion of Counsel in form and substance
reasonably satisfactory to the Trustee (which shall include the statements set
forth in Section 13.06 hereof) stating that, in the opinion of such counsel,
all such conditions precedent and covenants, if any, have been satisfied,
except that in the case of any such application or request as to which the
furnishing of such documents is specifically required by any provision of this
Indenture

 

50

 

relating to such particular application or request, no additional
certificate or opinion need be furnished.

 

SECTION 13.06.  Statements
Required in Certificate or Opinion.

 

Each
certificate (other than certificates provided pursuant to Section 10.04) or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture shall include:

 

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

 

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

 

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

 

(4)          a statement as to whether, in the opinion of
such Person, such condition or covenant has been satisfied.

 

SECTION 13.07.  Table of
Contents, Headings, etc..

 

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

 

SECTION 13.08.  Successors
and Assigns.

 

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

 

SECTION 13.09.  Separability
Clause.

 

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

 

SECTION 13.10.   Benefits of
Indenture.

 

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

 

51

 

SECTION 13.11.  Rules by
Trustee and Agents..

 

The Trustee
may make reasonable rules for action by or at a meeting of Holders.  The Security Registrar or Paying Agent may
make reasonable rules and set reasonable requirements for its functions.

 

SECTION 13.12.  No
Personal Liability of Directors, Officers, Employees and Stockholders..

 

No past,
present or future director, officer, employee, incorporator or stockholder of
the Company or Person controlling such Persons, as such, shall have any
liability for any obligations of the Company or of any Person controlling such
Person under the Securities or this Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  Each Holder of the Securities by accepting a
Security waives and releases all such liability.  The waiver and release are part of the consideration for issuance
of the Securities.  Such waiver may not
be effective to waive liabilities under the federal securities laws and it is
the view of the Commission that such a waiver is against public policy.

 

SECTION 13.13.  Governing
Law.

 

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

 

SECTION 13.14.  Legal
Holidays.

 

In any case
where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day, then (notwithstanding any other provision
of this Indenture or the Security) payment of interest or principal need not be
made on such date, but may be made on the next succeeding Business Day with the
same force and effect as if made on the Interest Payment Date or Redemption
Date, or at the Stated Maturity, and no interest shall accrue for the period
from and after such Interest Payment Date, Redemption Date or Stated Maturity,
as the case may be.

 

SECTION 13.15.   Indenture and
Securities Solely Corporate Obligations.

 

No recourse
for the payment of principal of or interest on any Security or for any claim
based on any Security or this Indenture shall be had against any director or
officer or stockholder, past, present or future, of the Company.  Any such claim against any such Person is
expressly waived as a condition of, and as consideration for, the execution and
delivery of this Indenture and the issue of the Securities.

 

SECTION 13.16.   No Security
Interest Created.

 

Nothing in
this Indenture or in the Securities, expressed or implied, shall be construed
to constitute a security interest under the Uniform Commercial Code or similar
legislation, as now or hereafter enacted and in effect, in any jurisdiction
where property of the Company or its Subsidiaries is located.

 

52

 

SECTION 13.17.  Counterpart
Originals.

 

The parties
may sign any number of copies of this Indenture.  Each signed copy shall be an original, but all of them together
represent the same agreement.

 

SECTION 13.18.   No Adverse
Interpretation of Other Agreements.

 

This Indenture
may not be used to interpret any other Indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person.  Any such Indenture, loan or debt agreement may not be used to
interpret this Indenture.

 

*    *   
*    *    *    *

 

53

 

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,  all as of the day and year first above
written.

 

	
   

  	
  Abgenix, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name  

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. Bank National Association, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  
	
   

  	
   

  	
  Title

  

 

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[Exhibit 4.17]  

        THE SECURITY EVIDENCED BY THIS CERTIFICATE, AND THE SECURITIES INTO WHICH IT MAY BE CONVERTED, HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAW, AND NO INTEREST THEREIN (OR IN SUCH UNDERLYING SECURITIES) MAY BE SOLD OR OTHERWISE TRANSFERRED OR DISPOSED OF UNLESS
(A) THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE UNITED STATES SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES, OR (B) THIS
CORPORATION RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER OF THESE SECURITIES (CONCURRED IN BY LEGAL COUNSEL FOR THIS CORPORATION) STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR
(C) THIS CORPORATION OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.

 
 

WARRANT TO PURCHASE    
    
    SHARES OF COMMON STOCK    
    
    OF    
    
    MDU COMMUNICATIONS INTERNATIONAL, INC.    
    

Expires
July 23, 2008 

	No.: W-    	 	Number of Shares: 254,110
	Date of Issuance: July 23, 2003	 	 

        This
is to certify that, for value received and subject to the terms and conditions set forth below, that William Begley is entitled to
purchase, and MDU Communications International, Inc., a Delaware corporation ("the Company"), promises and agrees to sell and issue, 254,110 shares of Common Stock (hereinafter defined) at a
price of US$0.40 per share ("Exercise Price"). This Warrant shall expire on July 23, 2008. 

        This
Warrant is issued subject to the following terms and conditions: 

        1.    Definitions.    Except as may be otherwise clearly required by the context, the following terms shall have the
following meanings: 

        "Common Stock" means the common stock of the Company, $.01 par value per share. 

        "Company" means MDU Communications International, Inc., a Delaware corporation. 

        "Exercise Price" means the price at which a Warrant Holder may purchase one share of Common Stock (or Securities obtainable in lieu of one
share of Common Stock) upon exercise of Warrants as determined from time to time pursuant to the provisions hereof, which Exercise Price shall be US$0.40 per share. 

        "Securities" means the Common Stock issuable upon exercise of the Warrants. 

        "Warrant Holder" means the person named in the initial paragraph of this certificate or any successor who is a record holder of Warrants. 

        "Warrants" means the warrants evidenced by this certificate or by any certificate obtained upon partial exercise of Warrants. 

        2.    Exercise of Warrants.    The Warrant Holder may exercise this Warrant, in whole or in part, by the surrender of
this Warrant (with the exercise form attached hereto duly executed) at the principal office of the Company, together with the payment to the Company of an amount of consideration equal to the Exercise
Price in effect on the date of such exercise multiplied by the number of shares of Common Stock with respect to which this Warrant is then being exercised, payable by certified or 

official
bank check or by wire transfer to an account designated by the Company. If fewer than all the Warrants evidenced by this certificate are exercised, the Company will, upon such exercise,
execute and deliver to the Warrant Holder a new certificate (dated the date hereof), in form and tenor substantially similar to this certificate, evidencing the Warrants not exercised. 

        3.    Adjustments in Certain Events.    The number, class and Exercise Price of Securities for which this certificate
may be exercised are subject to adjustment from time to time upon the happening of certain events as follows: 

        (a)    Stock Dividends, Splits, Etc.    If the outstanding shares of the Company's Common Stock are divided into a
greater number of shares or a dividend in stock is paid on the Common Stock, the number of shares of Common Stock which may be purchased under this certificate shall be proportionately increased and
the Exercise Price proportionately decreased; and, conversely, if the outstanding shares of Common Stock are combined into a smaller number of shares of Common Stock, the number of shares of Common
Stock which may be purchased under this certificate shall be proportionately reduced and the Exercise Price proportionately increased. The increases and reductions provided for in this
Section 3(a) shall be made with the intent and, as nearly as practicable, the effect that neither the percentage of the total equity of the Company obtainable on exercise of the Warrants nor
the aggregate Exercise Price for such percentage upon such exercise shall be affected by any event described in this Section 3(a). 

        (b)    Mergers, Consolidations, Etc.    In case of any change in the Common Stock of the Company through merger,
consolidation, reclassification, reorganization, partial or complete liquidation, transfer of assets or other change in the capital structure of the Company (not including the issuance of additional
shares of Common Stock by the Company other than by stock split or stock dividend) (the "Capital Reorganization"), then, as a condition of such Capital Reorganization, lawful and adequate provision
shall be made so that the holder of this certificate will have the right thereafter to receive upon the exercise of the Warrants the kind and amount of shares of stock or other securities or property
to which it would have been entitled if, immediately prior to such Capital Reorganization, it had held the number of shares of Common Stock obtainable upon the exercise of the Warrants. In any such
case, appropriate adjustment shall be made in the application of the provisions set forth herein with respect to the rights and interest thereafter of the Warrant Holder, to the end that the
provisions set forth herein shall thereafter be applicable, as nearly as reasonably may be possible, in relation to any shares
of stock or other property thereafter deliverable upon the exercise of the Warrants. The Company will not permit any Capital Reorganization described in this Section 3(b) to occur unless the
issuer of the shares of stock or other securities to be received by the holder of this certificate, if not the Company, agrees to be bound by and comply with the provisions of this certificate. 

        (c)    Determination and Notice of Exercise Price.    When any adjustment is required to be made in the number of
shares of Common Stock, Exercise Price, other securities, or the property purchasable upon exercise of the Warrants as provided in this Section 3, the Company shall promptly determine the new
Exercise Price, number of such shares or other securities or property purchasable upon exercise of the Warrants and (i) prepare and retain on file a statement describing in reasonable
detail the method used in arriving at the new Exercise Price or number of such shares or other securities or property purchasable upon exercise of the Warrants and (ii) cause a copy of such
statement to be mailed to the Warrant Holder within sixty (60) days after the date when the event giving rise to the adjustment occurred. 

        (d)    No Fractional Shares.    No fractional shares of Common Stock or other Securities will be issued in connection
with the exercise of any Warrants, but the Company shall pay, in lieu of fractional shares, a cash payment therefore on the basis of the mean between the bid and asked prices in the
over-the-counter market or the closing price on a national securities exchange on the day immediately prior to exercise. 

        (e)    Issuance of Other Securities, Etc.    If other securities of the Company or securities of any subsidiary of the
Company are distributed pro rata to holders of any or all of the Company's 

Common
Stock, such number of securities shall be distributed to the Warrant Holder upon exercise of his rights hereunder as such Warrant Holder or assignee would have been entitled to if this Warrant
had been exercised prior to such distribution. The provisions with respect to adjustment of the Company's Common Stock provided in this Section 3 shall also apply to such other securities and
securities of any subsidiary to which the Warrant Holder or his assignee shall be entitled under this Section 3(e). 

        4.    Reservation of Shares.    The Company agrees that the number of shares of Common Stock or other Securities
sufficient to provide for the exercise of the Warrants upon the basis set forth above shall at all times during the term of the Warrants be reserved for exercise. 

        5.    Validity of Securities.    All Securities delivered upon the exercise of the Warrants shall be duly and validly
issued in accordance with their terms, and the Company will pay all documentary and transfer taxes, if any, in respect of the original issuance thereof upon exercise of the Warrants. 

        6.    Investment Representation.    The Warrant Holder represents and warrants that it has acquired the Warrants, and
will acquire the Common Stock or other Securities, if any, upon exercise of the Warrants for his, her or its own account, for investment purposes only and not with a view to resale or other
distribution thereof, nor with the intention of selling, transferring or otherwise disposing of all or any part of such shares (or underlying securities) for any particular event or circumstance,
except for selling, transferring or disposing of said shares in full compliance with all applicable provisions of the Act and the Securities Exchange Act of 1934, and the Rules and Regulations
promulgated by the Securities and Exchange Commission thereunder. The undersigned further understands and agrees that such shares may be sold only if they are subsequently registered under the Act or
an exemption from such registration is available, and that any routine sales or securities made in reliance upon Rule 144 can be made only after the holding period specified in that Rule, and
only in the amounts set forth in and pursuant to the other terms and conditions of that Rule. The undersigned understands that a stop order will be placed on the books and records of the transfer
agent regarding the shares. An appropriate legend to the foregoing effect and of the type commonly placed on certificates evidencing privately placed securities may be placed on all certificates
evidencing Securities. 

        7.    No Rights as a Shareholder.    Except as otherwise provided herein, the Warrant Holder shall not, by virtue of
ownership of Warrants, be entitled to any rights of a shareholder of the Company but shall, upon written request to the Company, be entitled to receive such quarterly or annual reports as the Company
by mail shall distribute to its shareholders. 

        8.    Registration Rights.    If the Company shall determine to proceed with the preparation and filing of a
registration statement under the Securities Act of 1933, as amended, in connection with the proposed offer and sale of any of its securities by it or any of its security holders (other than a
registration statement on Form S-4, S-8 or other limited purpose form), then the Company will give written notice of its determination to the Warrant Holder. Upon the
written request from the Warrant Holder, the Company will cause to be registered a sufficient number of shares of Common Stock to effect the full exercise of this Warrant in such registration
statement. The Company covenants and agrees to keep the registration statement effective and file any post-effective amendments or prospectus supplements required to maintain the
effectiveness of the Registration Statement during the term of this Warrant and for a period of ninety (90) days thereafter. 

        9.    Notices.    Any notices required or permitted to be given hereunder shall be in writing and may be served
personally or by mail, and if served by mail, shall be addressed as follows: 

	To Company:	 	MDU Communications International, Inc.

60-D Commerce Way

Totowa, New Jersey 07512

Attention: Brad Holmstrom

Telephone: (973) 237-9499

Facsimile: (973) 237-9243
	

To Warrant Holder:	
 	

William Begley

6480 South Marina Way

Stuart, Florida 34996

Telephone:

Facsimile: (516) 225-1504

        Any
notice so given by mail shall be deemed effectively given 48 hours after mailing when deposited in the United States mail, registered or certified mail, return receipt
requested, postage prepaid and addressed as specified above. Any party may by written notice to the other specify a different address for notice purposes. 

        10.    Applicable Law.    This Warrant shall be governed by and construed in accordance with the laws of the State of
New Jersey, without regard to principles of conflicts of law. 

        DATED as of July 23, 2003. 

	 	 	MDU COMMUNICATIONS INTERNATIONAL, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

QuickLinks

WARRANT TO PURCHASE SHARES OF COMMON STOCK OF MDU COMMUNICATIONS INTERNATIONAL, INC.

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