Document:

Unassociated Document

                                                                                                                                                                                  Exhibit
      10.1

     

    
 

      Agreement
        and General Release

      

      This
        Agreement and General Release (“Agreement”) sets forth the agreement between
        Career Education Corporation (“CEC” or “the Company”) and you, Stephen C.
        Fireng (“You”).

      

      1.           Employment
        Separation.  Your employment with CEC terminates
        effective February 11, 2008 (the “Separation Date”).  On that date,
        You must resign from all of Your positions, including but not limited to
        CEC
        Group President and member of the American InterContinental University and
        the
        Colorado Technical University Governing Boards.  You understand and
        agree that from and after the Separation Date, except as described in provision
        9, You are no longer authorized to incur any expenses, obligations or
        liabilities on behalf of CEC.  On its part, CEC agrees to reimburse
        You, in accordance with CEC’s regular expense reimbursement processes, for any
        expenses incurred through the Separation Date, provided that such expenses
        are
        consistent with CEC’s expense policy and practice.

       

      2.           Benefits
        Following the Separation Date. You hereby
        acknowledge that, after the Separation Date, You will no longer be entitled
        to
        participate in any employee benefit plan sponsored or maintained by the
        Company, except for (a) continuation coverage that may be elected under
        group health plans maintained by the Company, which coverage is intended
        to
        satisfy the requirements of Sections 601 through 608 of the Employee Retirement
        Income Security Act of 1974, as amended (“ERISA”), and (b) any benefit provided
        under the provisions of a pension plan (as defined in Section 3(2) of ERISA)
        which is accrued and vested as of the Separation Date, any such benefit to
        be
        paid in accordance with the written terms of such pension plan.
In the event that You elect to continue the benefit
        coverage described in clause (a) of the preceding sentence, the
        following benefit coverage will be continued at CEC’s cost for the
        thirty-two (32) week period following the Separation Date, upon the same
        terms
        and conditions as such coverage (if any) is provided to other
        actively employed key executives of the Company generally during
        such thirty-two (32) week period: (i) medical plan including vision
        (normal); (ii) medical plan (Execu-Care) and (iii) dental; provided,
        that You do not become eligible to receive similar benefits from a
        subsequent employer.   

       

      3.           Payments
        by CEC.  In exchange for the promises and agreements made by
        You contained in this Agreement, and in lieu of the payments described in
        CEC’s
        Severance Plan for Executive Level Employees CEC will pay You an amount equal
        to
        thirty-two (32) weeks of pay (subject to taxes and withholdings), calculated
        based on Your gross base wages as of Your Separation Date.  The gross
        amount of separation pay payable to You as calculated in accordance with
        this
        paragraph is $246,153.85 and will be paid to You by check, mailed to Your
        last-known address according to CEC’s payroll records, within two weeks
        following the receipt by the Company of the fully executed Agreement at the
        address and within the fourteen (14) day time frame described in Paragraph
        11 of
        this Agreement.  In addition the Company will pay to you on or before
        March 15, 2009, a lump sum payment of Your pro-rated bonus earned (Your 2008
        target bonus being 40% of base salary) during you period of employment in
        calendar year 2008, calculated in accordance with the method for determining
        bonuses for other similarly situated employees (it being understood that
        the
        amount may be zero) and paid in accordance with the normal procedures of
        the
        Company.  The parties agree that the monies and benefits set forth in
        this provision 3 constitute additional consideration, above and beyond anything
        to which You are already entitled, in exchange for You executing this
        Agreement.

      

      4.           Waiver
        and Release of All Claims.  In exchange for the consideration
        described in Paragraphs 2(a) and 3, You, on behalf of Yourself, Your agents,
        executors, attorneys, administrators, heirs and assigns, are waiving and
        releasing all known or unknown claims or causes of action against CEC, its
        divisions, subsidiaries, affiliates and predecessors, and each of their assigns,
        successors, officers, directors, employees, shareholders and agents
        (collectively, “the Releases”), which claims have or could have arisen out of
        Your employment with and/or termination of employment from CEC and/or any
        other
        occurrence whatsoever arising on or before the date this Agreement is executed,
        including but not limited to:

      

      
        	
                (a)  

              	
                claims
                  arising under Title VII of the Civil Rights Act of 1964, as amended,
                  the
                  Civil Rights Act of 1991, the Equal Pay Act, the Americans with
                  Disabilities Act of 1990, the Family and Medical Leave Act of 1993,
                  the
                  Age Discrimination in Employment Act of 1967, as amended, Section
                  1981 of
                  the Civil Rights Act of 1866, the Pregnancy Discrimination Act,
                  the
                  Employee Retirement Income Security Act, as amended, the National
                  Labor
                  Relations Act, and/or any other federal, state, county, or local
                  employment discrimination or civil rights laws or regulations (including
                  but not limited to claims based on race, color, creed, sex, national
                  origin, religion, age, ancestry, veteran status, pregnancy, disability,
                  marital status, sexual orientation, gender identity, familial status,
                  whistleblower status, retaliation and/or attainment of benefit
                  plan
                  rights); and/or

              

      

      
        	
                (b)  

              	
                claims
                  arising out of any other federal, state, or local statute, law,
                  constitution, ordinance or regulation;
                  and/or

              

      

      
        	
                (c)  

              	
                claims
                  that CEC has violated its personnel policies, procedures, handbooks,
                  any
                  covenant of good faith and fair dealing, or any express or implied
                  contract of any kind; and/or

              

      

      
        	
                (d)  

              	
                claims
                  of a violation of public policy, statutory or common law, including
                  but
                  not limited to claims for: personal injury; invasion of privacy;
                  retaliatory discharge; negligent hiring, retention or supervision;
                  defamation; intentional or negligent infliction of emotional distress
                  and/or mental anguish; intentional interference with contract;
                  negligence;
                  detrimental reliance; loss of consortium to you or any member of
                  your
                  family; and/or promissory estoppel;
                  and/or

              

      

      
        	
                (e)  

              	
                claims
                  that CEC is in any way obligated for any reason to pay You damages,
                  expenses, litigation costs (including attorneys’ fees), back pay, front
                  pay, disability or other benefits (other than accrued 401(k) or
                  vacation
                  benefits), compensatory damages, punitive damages, and/or interest,
                  and/or

              

      

      
        	
                (f)  

              	
                claims
                  to employment, reinstatement, or seniority with
                  CEC.

              

      

       

      You
        represent that you have not commenced or joined in any claim, charge, action
        or
        proceeding whatsoever against CEC or any of the other Releases, arising out
        of
        or relating to any of the matters set forth in this Agreement. You further
        agree
        that You will not be entitled to any personal recovery in, and shall not
        commence or join, any action or proceeding whatsoever against CEC or any
        of the
        Releases for any of the matters set forth in this Agreement. You acknowledge
        that other than as set forth in provisions 2(a) and 3 above, the Company’s
        obligations under the Agreement are in lieu of and in full satisfaction of
        any
        and all amounts that might otherwise be payable to You or for Your benefit
        under
        any contract, agreement, plan, policy, program, practice or otherwise, past
        or
        present, of the Company.

       

       

      You
        further acknowledge that, other than the Company’s obligations under this
        Agreement, following the Separation Date, the Company shall have no further
        obligations to You, and that You shall have no right to any other payments
        or
        benefits from the Company with respect to Your employment with the Company
        or
        the termination thereof.

       

      5.           Exclusions
        from Waiver and Release of All Claims.  Excluded from the
        above Waiver and Release of All Claims are any claims which by law cannot
        be
        waived, including but not limited to the right to file a charge with or
        participate in an investigation by the Equal Employment Opportunity Commission
        (“EEOC).  You do, however, hereby waive any right to recover any money
        should the EEOC or any other agency or individual pursue any claims on Your
        behalf.  In addition, the above Waiver and Release of Claims will not
        be construed to affect (i) Your eligibility to receive continuation coverage
        in
        the Company’s medical plan(s) following the Separation Date pursuant to the
        Sections 601 through 608 of ERISA, provided that You timely elect such coverage,
        (ii) Your right to benefits under the Company’s 401(k) plan to the extent that
        You are vested therein as of the Separation Date, (iii) Your rights to
        indemnification under the Company’s certificate of incorporation or bylaws of
        the Company or any existing Indemnification Agreement between You and the
        Company, (iv) rights to workers compensation, disability insurance benefits
        and
        life insurance benefits (to the extent such benefits, by their terms, may
        be
        available after the Separation Date), (v) rights to vested benefits under
        the
        Company’s deferred compensation plan, and (vi) claims to enforce this
        Agreement.

       

      6.           Non-Competition,
        Non-Solicitation and Confidential
        Information.

       

       

      6.1           Non-Competition. Commencing
        on the Separation Date and for thirty-two (32) weeks thereafter, You will
        not
        own or engage in, either directly or indirectly, as an officer, manager,
        employee, independent contractor, consultant, director, partner, sole
        proprietor, stockholder, or in any other capacity, any business operating
        any
        post-secondary, private trade or vocational schools, that offers classes,
        courses or instruction in or is otherwise engaged in any curriculum or field
        of
        study offered by any of the schools operated by the Company (the “Schools”) or
        any other curriculum or field of study that the Company has expressed an
        interest in offering, during Your employment by the Company, whether through
        the
        Schools or through a potential acquisition (the “Competitive
        Activities”).  You hereby acknowledge that the Company intends to
        promote the Schools on an international basis and that the geographical scope
        of
        this Agreement is intended to encompass all Competitive Activities engaged
        in
        anywhere in the United States, its possessions and territories and any other
        country where the Company and its subsidiaries are promoting the Schools
        on the
        Separation Date. Nothing herein shall prevent You from owning less than two
        percent (2%) of the capital stock of a company whose stock is publicly traded
        and that is engaged in Competitive Activities.

       

       

      6.2           Non-Solicitation.
        Commending on the Separation Date and for thirty-two (32) weeks thereafter,
        You
        will not, directly or indirectly, individually or on behalf of any Person
        (as
        defined below) solicit, aid or induce (a) any then-current employee of the
        Company or its Affiliates to leave the Company or its Affiliates to accept
        employment with or render services for You or such Person, or (b) any student,
        customer, client, vendor, lender, supplier or sales representative of the
        Company or its Affiliates or similar persons engaged in business with the
        Company or its Affiliates to discontinue the relationship or reduce the amount
        of business done with the Company or its Affiliates. “Person” means any
        individual, a partnership, a corporation, an association, a limited liability
        company, a joint stock company, a trust, a joint venture, an unincorporated
        organization, a governmental entity, or any department, agency or political
        subdivision thereof, or an accrediting body. “Affiliate” means: (i) with respect
        to any natural Person, any individual related by blood or marriage to such
        Person; and (ii) with respect to any other Person, any Person controlling,
        controlled by or under common control with such Person.

       

       

      6.3           Confidential
        Information. You acknowledge and agree that throughout and as an
        incident to Your employment by the Company, You have been in possession of
        and
        exposed to Confidential Information relating to the Company, its Affiliates
        and
        each School. “Confidential Information” means all proprietary or confidential
        information concerning the business, finances, financial statements, curricula,
        properties and operations of the Company, its Affiliates and each School,
        including, without limitation, all student and prospective student and supplier
        lists, know-how, trade secrets, business and marketing plans, techniques,
        forecasts, projections, budgets, unpublished financial statements, price
        lists,
        costs, computer programs, source and object codes, algorithms, data, and
        other
        original works of authorship, along with all information received from third
        parties and held in confidence by the Company, its Affiliates and each
        School (including, without limitation, personnel files and student records).
        At
        all times after the Separation Date, You will hold the Confidential Information
        in the strictest confidence and will not disclose or make use of (directly
        or
        indirectly) the Confidential Information or any portion thereof to or on
        behalf
        of Yourself or any third party except as required by the order of any court
        or
        similar tribunal or any other governmental body or agency of appropriate
        jurisdiction; provided, that You will, to the extent practicable, give
        the Company prior written notice of any such disclosure and will cooperate
        with
        the Company in obtaining a protective order or such similar protection as
        the
        Company may deem appropriate to preserve the confidential nature of such
        information. The foregoing obligations to maintain the Confidential Information
        shall not apply to any Confidential Information that is, or without any action
        by You becomes, generally available to the public.

       

       

      6.4           Acknowledgements.
        You fully understand the nature and burdens of this provision 6.  You
        acknowledge that the provisions of this provision 6 are fair, reasonable,
        and
        not excessively broad, that they are necessary to protect important and
        legitimate business interests of the Company, its Affiliates and each School,
        and that in light of Your education, experience, and capabilities, You can
        honor
        all parts of this provision 6 without being prevented from earning a
        fully adequate livelihood for Yourself and Your dependents from now throughout
        any period during which Your activities are restricted hereunder.

       

       

      6.5  Scope
        of Restriction. The parties have attempted to limit the scope of the
        covenants set forth in this provision 6 to the extent necessary to give the
        Company the benefit of its bargain with respect to the other provisions of
        this
        Agreement. The parties agree that if the scope and duration of any of the
        covenants would, but for this provision, be deemed by a court of competent
        authority to be unreasonable or otherwise unenforceable, such court may modify
        such covenant(s) to the extent that the court determines to be necessary
        to
        grant enforcement thereof as modified.

       

       

      6.6   Remedies. The
        parties recognize that the Company will suffer irreparable injury in the
        event
        of any breach or threatened or anticipated breach of the terms of this provision
        6 by You, and that the remedy at law for any such actual breach or threatened
        or
        anticipated breach will be inadequate. Accordingly, in the event of any breach
        or threatened or anticipated breach of the terms of this provision 6 by You
        and/or any Persons acting for or in concert with You, the Company will be
        entitled, in addition to any other remedies and damages available and without
        proof of monetary or immediate damage, to seek and obtain from any court
        of
        competent jurisdiction a decree of specific performance and a temporary and
        permanent injunction, without bond or other security, enjoining and restricting
        the breach or threatened or anticipated breach.

       

       

      6.7           Common
        Law of Torts or Trade Secrets. The parties agree that nothing in this
        Agreement will be construed to limit or negate the common law of torts or
        trade
        secrets where it provides the Company with broader protection than that provided
        herein.

       

      7.           Non-Admission.  Both
        parties acknowledge that this Agreement does not constitute an admission
        by
        either party of any liability, wrongdoing or violation of law
        whatsoever.

      

      8.           Company
        Property.  You represent, warrant and covenant that You
        have returned to the Company (or will return to the Company on or before
        the
        Separation Date) all Company property in Your possession or control, including,
        without limitation, all telephones, keys, access cards, security badges,
        credit
        cards, phone cards, equipment, computer hardware (including but not limited
        to
        all computers, Blackberry devices, and personal data assistants), all contents
        of all such hardware, all passwords and codes needed to obtain access to
        or
        operate all or part of any such hardware, all electronic storage devices
        (including but not limited to all hard drives, disk drives, diskettes, CDs,
        CD-ROMs, DVDs, and DVD-ROMs), all contents of all such electronic storage
        devices, all passwords and codes needed to obtain access to or use all or
        part
        of any such electronic storage device, all computer software and programs,
        financial information, accounting records, computer printouts, manuals, data,
        materials, papers, books, files, documents, records, policies, student
        information and lists, customer information and lists, marketing information,
        specifications and plans, data base information and lists, mailing lists,
        and
        notes, including but not limited to any property describing or containing
        any
        Confidential Information, and You agree that You will not retain any
        cop­ies, dupli­cates, reproductions or excerpts thereof in any form
        whatsoever.

       

      9.           Indemnity
        and Cooperation.  In the event of a lawsuit or claim in
        which You are sued either jointly or separately for acts arising out of the
        scope of Your employment with CEC, CEC agrees to defend You and hold You
        harmless in accordance with its policies and practices for defending employees
        and subject to any limitations and exceptions therein.  In turn, with
        respect to matters as to which You obtained knowledge during Your employment
        with the Company, You agree to cooperate fully, at the Company’s reasonable
        request, with the Company and any of its officers, directors, attorneys or
        employees (a) in connection with the defense or prosecution of any and all
        charges, complaints, claims, liabilities, obligations, promises, agreements,
        demands and causes of action of any nature whatsoever, which are asserted
        by any
        person or entity (including the Company) concerning or related to any matter
        that arises out of or concerns events or occurrences during Your employment
        with
        the Company, and (b) concerning requests for information about the business
        of
        the Company or Your involvement and participation therein. You will provide
        such
        cooperation on reasonable notice.  To the extent such cooperation (i)
        is rendered at the written request of the Company and (ii) does not include
        testimony given pursuant to a lawfully issued and valid subpoena or notice
        of
        deposition (as opposed to preparation for testimony with employees of the
        Company or counsel to the Company), You will be entitled to compensation
        at a
        rate of $150 per hour.  You will also be entitled to reimbursement,
        upon receipt by the Company of suitable documentation, for reasonable and
        necessary travel and other expenses not reimbursed or reimbursable by a third
        party that You may incur at the specific request of the Company and as approved
        in advance by the Company in accordance with its policies and
        procedures.  Nothing in this provision 9 should be construed as
        suggesting or implying that You should testify in any way other than truthfully
        or provide anything other than accurate, truthful information.

       

       

       10.       Non-Disparagement.  You
        agree that You will not disparage or speak negatively about CEC or any school
        affiliated with CEC, or any former or present Company director, officer,
        shareholder, agent, employee, or student, to any third parties, including
        but
        limited to the press, the media or the public generally, or to any current,
        former or prospective employee or student of CEC, except if testifying
        truthfully under oath pursuant to any lawful court order or subpoena or
        otherwise responding to or providing disclosures required by
        law.  Likewise, CEC agrees that its executive officers and directors
        shall not disparage the You to third parties in any manner likely to be harmful
        to Your personal or business reputation, except if testifying truthfully
        under
        oath pursuant to any lawful court order or subpoena or otherwise responding
        to
        or providing disclosures required by law.

       

      11.           Deadline
        for Return of Signed Agreement.  The signed Agreement
        must be returned via U.S. mail or facsimile within thirty (30) days of the
        Separation Date to:

      

      Harry
        L. Geller

      Senior
        Vice President of Human
        Resources

      Career
        Education
        Corporation

      2895
        Greenspoint Parkway

      Hoffman
        Estates, Illinois
        60169

      (FAX)
        847-585-2062

      (TEL)
        847-585-2022

      

      12.           Entire
        Agreement.  This Agreement constitutes the entire
        agreement between CEC and You concerning your separation, and it supersedes
        and
        replaces all prior negotiations and all agreements proposed or otherwise,
        whether written or oral, concerning the subject matters of the
        Agreement.  You represent and agree that no promises, statements or
        inducements have been made to You that caused You to sign this Agreement
        other
        than those which are expressly stated in this Agreement.  This is an
        integrated document and may not be altered except by a written agreement
        signed
        by both parties.

       

      13.           Separability.  If
        any portion of this Agreement is found to be unenforceable, the remainder
        of the
        Agreement will remain in full force and effect. The provisions of this
        Agreement shall be deemed severable and the invalidity, illegality or
        unenforceability of any provision shall not affect or impair the validity,
        legality or enforceability of the other provisions hereof. Moreover, if any
        one
        or more of the provisions of this Agreement shall be held to be excessively
        broad as to duration, activity or subject, such provision shall be construed
        by
        limiting and reducing them so as to be enforceable to the maximum extent
        allowed
        by applicable law.

       

      14.           Choice
        of Law.  All issues and questions concerning the
        construction, validity, enforcement and interpretation of this Agreement
        and all
        its attachments will be governed by and construed in accordance with the
        laws of
        the State of Illinois, without giving effect to any choice of law or conflict
        of
        law rules or provisions (whether of Illinois or any other jurisdiction) that
        would cause the laws of any other jurisdiction other than the State of Illinois
        to apply.

       

      WHEREFORE,
        You agree that You have read and voluntarily entered into this Agreement
        with
        full knowledge of its significance.

       

      

       

      Career
        Education
        Corporation

       

      /s/
        Stephen C.
        Fireng                                                                           By:
/s/ Gary E. McCullough

       

      Stephen
        C.
        Fireng                                                                                 Gary
        E. McCullough

       

      Date:
        March 11,
        2008                                                                           President
& Chief Executive Officer

       

      Date:
        March 13, 2008Exhibit 4.3

 

 

GLOBALSTAR, INC.

 

AND

 

U.S. BANK, NATIONAL ASSOCIATION

 

Trustee

 

 

INDENTURE

 

DATED AS OF [             
], 2008

 

 

SENIOR DEBT SECURITIES

 

 

 

GLOBALSTAR,
INC.

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939, AS AMENDED,

AND INDENTURE, DATED AS OF [                
], 2008

 

	
  TRUST INDENTURE ACT SECTION

  	
   

  	
  INDENTURE SECTION

  
	
   

  	
   

  	
   

  
	
  Section 310(a)(1)

  	
   

  	
  6.9

  
	
  (a)(2)

  	
   

  	
  6.9

  
	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
  (a)(5)

  	
   

  	
  6.9

  
	
  (b)

  	
   

  	
  6.8

  
	
   

  	
   

  	
   

  
	
  Section 311

  	
   

  	
  6.13

  
	
   

  	
   

  	
   

  
	
  Section 312(a)

  	
   

  	
  7.1, 7.2(a)

  
	
  (b)

  	
   

  	
  7.2(b)

  
	
  (c)

  	
   

  	
  7.2(c)

  
	
   

  	
   

  	
   

  
	
  Section 313(a)

  	
   

  	
  7.3

  
	
  (b)

  	
   

  	
  *

  
	
  (c)

  	
   

  	
  *

  
	
  (d)

  	
   

  	
  7.3

  
	
   

  	
   

  	
   

  
	
  Section 314(a)

  	
   

  	
  7.4

  
	
  (a)(4)

  	
   

  	
  10.5

  
	
  (b)

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
  1.3

  
	
  (c)(2)

  	
   

  	
  1.3

  
	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
  1.3

  
	
   

  	
   

  	
   

  
	
  Section 315(a)

  	
   

  	
  6.1(a)

  
	
  (b)

  	
   

  	
  6.2

  
	
  (c)

  	
   

  	
  6.1(b)

  
	
  (d)

  	
   

  	
  6.1(c)

  
	
  (d)(1)

  	
   

  	
  6.1(a)(1)

  
	
  (d)(2)

  	
   

  	
  6.1(c)(2)

  
	
  (d)(3)

  	
   

  	
  6.1(c)(3)

  
	
  (e)

  	
   

  	
  5.14

  
	
   

  	
   

  	
   

  
	
  Section 316(a)

  	
   

  	
  1.1, 1.2

  
	
  (a)(1)(A)

  	
   

  	
  5.2, 5.12

  
	
  (a)(1)(B)

  	
   

  	
  5.13

  
	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
  (b)

  	
   

  	
  5.8

  
	
  (c)

  	
   

  	
  1.5(f)

  

 

 

	
  TRUST INDENTURE ACT SECTION

  	
   

  	
  INDENTURE SECTION

  
	
   

  	
   

  	
   

  
	
  Section 317(a)(1)

  	
   

  	
  5.3

  
	
  (a)(2)

  	
   

  	
  5.4

  
	
  (b)

  	
   

  	
  10.3

  
	
   

  	
   

  	
   

  
	
  Section 318(a)

  	
   

  	
  1.8

  

 

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

 

* Deemed included pursuant to Section 318(c) of
the Trust Indenture Act

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  PARTIES

  	
   

  	
   

  
	
   

  	
   

  	
  1

  
	
  RECITALS OF THE COMPANY:

  	
   

  	
   

  
	
   

  	
   

  	
  1

  
	
  ARTICLE ONE
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
   

  
	
  Section 1.1.

  	
  Definitions

  	
  1

  
	
  Section 1.2.

  	
  Incorporation by Reference of Trust
  Indenture Act

  	
  7

  
	
  Section 1.3.

  	
  Compliance Certificates and Opinions

  	
  8

  
	
  Section 1.4.

  	
  Form of Documents Delivered to Trustee

  	
  8

  
	
  Section 1.5.

  	
  Acts of Holders; Record Dates

  	
  9

  
	
  Section 1.6.

  	
  Notices, Etc., to Trustee and Company

  	
  10

  
	
  Section 1.7.

  	
  Notice to Holders; Waiver

  	
  10

  
	
  Section 1.8.

  	
  Conflict with Trust Indenture Act

  	
  11

  
	
  Section 1.9.

  	
  Effect of Headings and Table of Contents

  	
  11

  
	
  Section 1.10.

  	
  Successors and Assigns

  	
  11

  
	
  Section 1.11.

  	
  Separability Clause

  	
  11

  
	
  Section 1.12.

  	
  Benefits of Indenture

  	
  11

  
	
  Section 1.13.

  	
  Governing Law

  	
  11

  
	
  Section 1.14.

  	
  Legal Holidays

  	
  11

  
	
  Section 1.15.

  	
  Securities in a Composite Currency,
  Currency Unit or Foreign Currency

  	
  12

  
	
  Section 1.16.

  	
  Payment in Required Currency; Judgment
  Currency

  	
  12

  
	
  Section 1.17.

  	
  Language of Notices, Etc.

  	
  13

  
	
  Section 1.18.

  	
  Incorporators, Shareholders, Officers and
  Directors of the Company Exempt from Individual Liability

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO SECURITY FORMS

  	
  13

  
	
  Section 2.1.

  	
  Forms Generally

  	
  13

  
	
  Section 2.2.

  	
  Form of Face of Security

  	
  13

  
	
  Section 2.3.

  	
  Form of Reverse of Security

  	
  16

  
	
  Section 2.4.

  	
  Global Securities

  	
  19

  
	
  Section 2.5.

  	
  Form of Trustee’s Certificate of
  Authentication

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE THE SECURITIES

  	
  21

  
	
  Section 3.1.

  	
  Amount Unlimited; Issuable in Series

  	
  21

  
	
  Section 3.2.

  	
  Denominations

  	
  23

  
	
  Section 3.3.

  	
  Execution, Authentication, Delivery and
  Dating

  	
  23

  
	
  Section 3.4.

  	
  Temporary Securities

  	
  25

  
	
  Section 3.5.

  	
  Registration, Registration of Transfer and
  Exchange

  	
  25

  
	
  Section 3.6.

  	
  Mutilated, Destroyed, Lost and Stolen
  Securities

  	
  27

  
	
  Section 3.7.

  	
  Payment of Interest; Interest Rights Preserved

  	
  28

  
	
  Section 3.8.

  	
  Persons Deemed Owners

  	
  29

  
	
  Section 3.9.

  	
  Cancellation

  	
  29

  
	
  Section 3.10.

  	
  Computation of Interest

  	
  29

  
	
  Section 3.11.

  	
  CUSIP or CINS Numbers

  	
  30

  
				

 

i

 

	
  ARTICLE FOUR SATISFACTION AND DISCHARGE

  	
  30

  
	
  Section 4.1.

  	
  Satisfaction and Discharge of Indenture

  	
  30

  
	
  Section 4.2.

  	
  Application of Trust Money

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE REMEDIES

  	
  31

  
	
  Section 5.1.

  	
  Events of Default

  	
  31

  
	
  Section 5.2.

  	
  Acceleration of Maturity; Rescission and
  Annulment

  	
  32

  
	
  Section 5.3.

  	
  Collection of Indebtedness and Suits for
  Enforcement by Trustee

  	
  33

  
	
  Section 5.4.

  	
  Trustee May File Proofs of Claim

  	
  33

  
	
  Section 5.5.

  	
  Trustee May Enforce Claims Without
  Possession of Securities

  	
  34

  
	
  Section 5.6.

  	
  Application of Money Collected

  	
  34

  
	
  Section 5.7.

  	
  Limitation on
  Suits

  	
  35

  
	
  Section 5.8.

  	
  Unconditional Right of Holders to Receive
  Principal, Premium and Interest

  	
  35

  
	
  Section 5.9.

  	
  Restoration of Rights and Remedies

  	
  35

  
	
  Section 5.10.

  	
  Rights and Remedies Cumulative

  	
  35

  
	
  Section 5.11.

  	
  Delay or Omission Not Waiver

  	
  36

  
	
  Section 5.12.

  	
  Control by Holders

  	
  36

  
	
  Section 5.13.

  	
  Waiver of Past Defaults

  	
  36

  
	
  Section 5.14.

  	
  Undertaking for Costs

  	
  37

  
	
  Section 5.15.

  	
  Waiver of Stay or Extension Laws

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX THE TRUSTEE

  	
  37

  
	
  Section 6.1.

  	
  Certain Duties and Responsibilities

  	
  37

  
	
  Section 6.2.

  	
  Notice of Defaults

  	
  38

  
	
  Section 6.3.

  	
  Certain Rights of Trustee

  	
  38

  
	
  Section 6.4.

  	
  Not Responsible for Recitals or Issuance of
  Securities

  	
  40

  
	
  Section 6.5.

  	
  May Hold Securities

  	
  40

  
	
  Section 6.6.

  	
  Money Held in Trust

  	
  40

  
	
  Section 6.7.

  	
  Compensation and Reimbursement

  	
  40

  
	
  Section 6.8.

  	
  Disqualification; Conflicting Interests

  	
  41

  
	
  Section 6.9.

  	
  Corporate Trustee Required; Eligibility

  	
  41

  
	
  Section 6.10.

  	
  Resignation and Removal; Appointment of
  Successor

  	
  41

  
	
  Section 6.11.

  	
  Acceptance of Appointment by Successor

  	
  42

  
	
  Section 6.12.

  	
  Merger, Conversion, Consolidation or
  Succession to Business

  	
  43

  
	
  Section 6.13.

  	
  Preferential Collection of Claims Against
  Company

  	
  43

  
	
  Section 6.14.

  	
  Appointment of Authenticating Agent

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
  45

  
	
  Section 7.1.

  	
  Company to Furnish Trustee Names and
  Addresses of Holders

  	
  45

  
	
  Section 7.2.

  	
  Preservation of Information; Communications
  to Holders

  	
  45

  
	
  Section 7.3.

  	
  Reports by Trustee

  	
  46

  
	
  Section 7.4.

  	
  Reports by Company

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT CONSOLIDATION, AMALGAMATION, MERGER AND SALE

  	
  47

  
	
  Section 8.1.

  	
  Company May Consolidate, Etc., Only On
  Certain Terms

  	
  47

  
	
  Section 8.2.

  	
  Successor Substituted

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE AMENDMENT, SUPPLEMENT AND WAIVER

  	
  48

  
	
  Section 9.1.

  	
  Without Consent of Holders

  	
  48

  
	
  Section 9.2.

  	
  With Consent of Holders

  	
  50

  
	
  Section 9.3.

  	
  Execution of Supplemental Indentures

  	
  51

  

 

ii

 

	
  Section 9.4.

  	
  Effect of Supplemental Indentures

  	
  51

  
	
  Section 9.5.

  	
  Conformity with Trust Indenture Act

  	
  52

  
	
  Section 9.6.

  	
  Reference in Securities to Supplemental
  Indentures

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN COVENANTS

  	
  52

  
	
  Section 10.1.

  	
  Payment of Principal, Premium and Interest

  	
  52

  
	
  Section 10.2.

  	
  Maintenance of Office or Agency

  	
  52

  
	
  Section 10.3.

  	
  Money for Securities Payments to Be Held in
  Trust

  	
  53

  
	
  Section 10.4.

  	
  Existence

  	
  54

  
	
  Section 10.5.

  	
  Statement by Officers as to Default

  	
  54

  
	
  Section 10.6.

  	
  Additional Amounts

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN REDEMPTION OF SECURITIES

  	
  55

  
	
  Section 11.1.

  	
  Applicability of Article

  	
  55

  
	
  Section 11.2.

  	
  Election to Redeem; Notice to Trustee

  	
  55

  
	
  Section 11.3.

  	
  Selection by Trustee of Securities to Be
  Redeemed

  	
  55

  
	
  Section 11.4.

  	
  Notice of Redemption

  	
  56

  
	
  Section 11.5.

  	
  Deposit of Redemption Price

  	
  56

  
	
  Section 11.6.

  	
  Securities Payable on Redemption Date

  	
  56

  
	
  Section 11.7.

  	
  Securities Redeemed in Part

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE SINKING FUNDS

  	
  57

  
	
  Section 12.1.

  	
  Applicability of Article

  	
  57

  
	
  Section 12.2.

  	
  Satisfaction of Sinking Fund Payments with
  Securities

  	
  57

  
	
  Section 12.3.

  	
  Redemption of Securities for Sinking Fund

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN DEFEASANCE

  	
  58

  
	
  Section 13.1.

  	
  Option to Effect Legal Defeasance or
  Covenant Defeasance

  	
  58

  
	
  Section 13.2.

  	
  Legal Defeasance and Discharge

  	
  58

  
	
  Section 13.3.

  	
  Covenant Defeasance

  	
  59

  
	
  Section 13.4.

  	
  Conditions to Legal or Covenant Defeasance

  	
  59

  
	
  Section 13.5.

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

  	
  60

  
	
  Section 13.6.

  	
  Repayment

  	
  61

  
	
  Section 13.7.

  	
  Reinstatement

  	
  61

  

 

NOTE:  This
table of contents shall not, for any purpose, be deemed to be a part of the
Indenture.

 

iii

 

PARTIES

 

INDENTURE, dated as of [          ], 2008, between GLOBALSTAR, INC., a
corporation duly organized and existing under the laws of the State of Delaware
(herein called the “Company”) and U.S. BANK, NATIONAL ASSOCIATION, a banking
corporation organized under the laws of the United States, as trustee (the “Trustee”).

 

RECITALS OF
THE COMPANY:

 

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

 

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

 

This Indenture is subject to the provisions of the
Trust Indenture Act that are required to be a part of this Indenture and, to
the extent applicable, shall be governed by such provisions.

 

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 1.1.            Definitions.

 

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

 

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

 

(b)   all terms
used in this Indenture that are defined in the Trust Indenture Act, defined by
a Trust Indenture Act reference to another statute or defined by an SEC rule under
the Trust Indenture Act have the meanings so assigned to them;

 

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

 

(d)   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;

 

(e)   the words “Article”
and “Section” refer to an Article and Section, respectively, of this
Indenture; and

 

(f)    the word “includes”
and its derivatives means “includes, but is not limited to” and corresponding
derivative definitions.

 

 

Certain terms, used principally in Article Six,
are defined in that Article.

 

“Act,” when used with respect to any Holder, has the
meaning specified in Section 1.5.

 

“Additional Defeasible Provision” means a covenant or
other provision contained that is (a) made part of this Indenture pursuant
to a supplemental indenture hereto, a Board Resolution or an Officer’s
Certificate delivered pursuant to Section 3.1, and (b) pursuant to
the terms set forth in such supplemental indenture, Board Resolution or Officer’s
Certificate, made subject to the provisions of Article Thirteen.

 

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

 

“Authenticating Agent” means any Person authorized by
the Trustee to act on behalf of the Trustee to authenticate Securities.

 

“Banking Day” means, in respect of any city, any date
on which commercial banks are open for business in that city.

 

“Bankruptcy Law” means any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law.

 

“Board of Directors” means the board of directors of
the Company or any duly authorized committee of that board to which the powers
of that board have been lawfully delegated.

 

“Board Resolution” means a copy of a resolution
certified by the Secretary or an Assistant Secretary of the Company, the
principal financial officer of the Company, any other authorized officer of the
Company, or a person duly authorized by any of them, in each case as
applicable, to have been duly adopted by the Board of Directors and to be in
full force and effect on the date of such certification, and delivered to the
Trustee.  Where any provision of this
Indenture refers to action to be taken pursuant to a Board Resolution
(including the establishment of any series of the Securities and the forms and
terms thereof), such action may be taken by any committee, officer or employee
of the Company authorized to take such action by the Board of Directors as
evidenced by a Board Resolution.

 

“Business Day,” when used with respect to any Place of
Payment or other location, means, except as otherwise provided as contemplated
by Section 3.1 with respect to any series of Securities, each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in that Place of Payment or other location are authorized or
obligated by law, executive order or regulation to close.

 

“CINS” means the CUSIP International Numbering System.

 

“Code” means the United States Internal Revenue Code
of 1986, as amended.

 

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

 

2

 

“Company Request” or “Company Order” means, in the
case of the Company, a written request or order signed in the name of the
Company by its Chairman of the Board, its Chief Executive Officer, its Chief
Financial Officer, its Chief Operating Officer, its President, any of its Vice
Presidents or any other duly authorized officer of the Company or any person
duly authorized by any of them, and delivered to the Trustee.

 

“Corporate Trust Office” means the office of the
Trustee at its address specified in Section 1.6 or such other address as
to which the Trustee may give notice to the Company.

 

“corporation” includes corporations, companies,
associations, partnerships, limited partnerships, limited liability companies,
joint-stock companies and trusts.

 

“Covenant Defeasance” has the meaning specified in Section 13.3.

 

“CUSIP” means the Committee on Uniform Securities
Identification Procedures.

 

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

 

“Debt” means any obligation created or assumed by any
Person for the repayment of money borrowed and any purchase money obligation
created or assumed by such Person and any guarantee of the foregoing.

 

“Default” means, with respect to a series of
Securities, 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 3.7.

 

“Definitive Security” means a security other than a
Global Security or a temporary Security.

 

“Depositary” means, with respect to the Securities of
any series issuable or issued in whole or in part in the form of one or more
Global Securities, a clearing agency registered under the Exchange Act that is
designated to act as Depositary for such Securities as contemplated by Section 3.1,
until a successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter shall mean or include each Person
which is a Depositary hereunder, and if at any time there is more than one such
Person, shall be a collective reference to such Persons.

 

“Dollar” or “$” means the coin or currency of the
United States of America, which at the time of payment is legal tender for the
payment of public and private debts.

 

“Event of Default” has the meaning specified in Section 5.1.

 

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

 

“Foreign Currency” means a currency used by the
government of a country other than the United States of America.

 

“GAAP” means generally accepted accounting principles
in the United States of America as in effect from time to time, including those
set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other 

 

3

 

entity as approved by a
significant segment of the accounting profession.  All ratios and computations based on GAAP
contained in this Indenture will be computed in conformity with GAAP.

 

“Global Security” means a Security in global form that
evidences all or part of a series of Securities and is authenticated and
delivered to, and registered in the name of, the Depositary for the Securities
of such series or its nominee.

 

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

 

“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, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the Trust Indenture Act that are
deemed to be part of and govern this instrument and any such supplemental
indenture, respectively.  The term “Indenture”
also shall include the terms of a particular series of Securities established
as contemplated by Section 3.1.

 

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

 

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

 

“Judgment Currency” has the meaning specified in Section 1.16.

 

“Legal Defeasance” has the meaning specified in Section 13.2.

 

“mandatory sinking fund payment” has the meaning
specified in Section 12.1.

 

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

 

“Notice of Default” means a written notice of the kind
specified in Section 5.1(e).

 

“Officer’s Certificate” means, in the case of the
Company, a certificate signed by the Chairman of the Board, the Chief Executive
Officer, the Chief Financial Officer, the Chief Operating Officer, the
President, any Vice President or any other duly authorized officer of the
Company, or a person duly authorized by any of them, and delivered to the
Trustee.

 

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

 

“optional sinking fund payment” has the meaning
specified in Section 12.1.

 

“Original Issue Discount Security” means any Security
which provides for an amount less than the principal amount thereof to be due
and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 5.2.

 

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

 

4

 

(a)           Securities
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

 

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

 

(c)           Securities
which have been paid pursuant to Section 3.6 or in exchange for or in lieu
of which other Securities have been authenticated and delivered pursuant to
this Indenture, other than any such Securities in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; and

 

(d)           Securities,
except to the extent provided in Section 13.2 and Section 13.3, with
respect to which the Company has effected Legal Defeasance or Covenant Defeasance
as provided in Article Thirteen, which Legal Defeasance or Covenant
Defeasance then continues in effect;

 

provided, however,
that in determining whether the Holders of the requisite principal amount of
the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, (i) the principal amount
of an Original Issue Discount Security that shall be deemed to be Outstanding
shall be the amount of the principal thereof that would be due and payable as
of the date of such determination upon acceleration of the Maturity thereof on
such date pursuant to Section 5.2, (ii) the principal amount of a
Security denominated in one or more currencies or currency units other than
U.S. dollars shall be the U.S. dollar equivalent of such currencies or currency
units, determined in the manner provided as contemplated by Section 3.1 on
the date of original issuance of such Security or by Section 1.15, if not
otherwise so provided pursuant to Section 3.1, of the principal amount
(or, in the case of an Original Issue Discount Security, the U.S. dollar
equivalent (as so determined) on the date of original issuance of such Security
of the amount determined as provided in clause (i) above) of such
Security, and (iii) Securities owned by the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor
shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities which the Trustee knows to be so owned shall be so disregarded.  Securities so owned as described in clause (iii) of
the immediately preceding sentence which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right to act with respect to such Securities and that the
pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor.

 

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

 

“Periodic Offering” means an offering of Securities of
a series from time to time, the specific terms of which Securities, including,
without limitation, the rate or rates of interest or formula for determining
the rate or rates of interest thereon, if any, the Stated Maturity or Stated Maturities
thereof, the original issue date or dates thereof, the redemption provisions,
if any, with respect thereto, and any other terms specified as contemplated by Section 3.1
with respect thereto, are to be determined by the Company upon the issuance of such
Securities.

 

5

 

“Person” means any individual, corporation, company,
limited liability company, partnership, limited partnership, joint venture,
association, joint-stock company, trust, other entity, unincorporated
organization or government or any agency or political subdivision thereof.

 

“Place of Payment,” when used with respect to the
Securities of any series, means, unless otherwise specifically provided for
with respect to such series as contemplated by Section 3.1, the office or
agency of the Company in the City of New York and such other place or places
where, subject to the provisions of Section 10.2, the principal of and any
premium and interest on the Securities of that series are payable as contemplated
by Section 3.1.

 

“Predecessor Security” of any particular Security
means every previous Security evidencing all or a portion of the same debt as
that evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 3.6 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

 

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

 

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

 

“Regular Record Date” for the interest payable on any
Interest Payment Date on the Securities of any series means the date specified
for that purpose as contemplated by Section 3.1.

 

“Required Currency” has the meaning specified in Section 1.16.

 

“Responsible Officer” when used with respect to the
Trustee, means any officer within the Corporate Trust Administration of the
Trustee (or any successor group of the Trustee) or any other officer of the
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his knowledge of and familiarity with the particular subject.

 

“SEC” 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 at such time.

 

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

 

“Security Register” and “Security Registrar” have the
respective meanings specified in Section 3.5.

 

“Significant Subsidiary” means any Subsidiary that
would be a “Significant Subsidiary” of the Company within the meaning of Rule 1-02
under Regulation S-X promulgated by the SEC.

 

“Special Record Date” for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 3.7.

 

6

 

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

 

“Subsidiary” means (a) a corporation more than
50% of the outstanding voting stock of which is owned, directly or indirectly,
by the Company or by one or more other Subsidiaries, or by the Company and one
or more other Subsidiaries or (b) any partnership or similar business
organization more than 50% of the ownership interests having ordinary voting
power of which shall at the time be so owned. For the purposes of this
definition, “voting stock” means capital stock or equity interests which
ordinarily have voting power for the election of directors, whether at all
times or only so long as no senior class of stock has such voting power by
reason of any contingency.

 

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

 

“Trust Indenture Act” means the Trust Indenture Act of
1939, as amended, as in force at the date as of which this instrument was
executed, except as provided in Section 9.5; provided,
however, that if the Trust Indenture Act
of 1939 is amended after such date, “Trust Indenture Act” means, to the extent
required by any such amendment, the Trust Indenture Act of 1939 as so amended.

 

“U.S. Person” shall have the meaning assigned to such
term in Section 7701(a)(30) of the Code.

 

“U.S. Government Obligations” means securities which
are (a) direct obligations of the United States for the payment of which
its full faith and credit is pledged, or (b) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States, the payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States, each of which are not
callable or redeemable at the option of the issuer thereof.

 

“Vice President,” when used with respect to the
Company or the Trustee, means any vice president, regardless of whether
designated by a number or a word or words added before or after the title “vice
president.”

 

Section 1.2.            Incorporation
by Reference of Trust Indenture Act

 

Whenever this Indenture refers to a provision of the
Trust Indenture Act, the provision is incorporated by reference in and made a
part of this Indenture.  The following
Trust Indenture Act terms used in this Indenture have the following meanings:

 

“commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Holder.

 

“indenture to be qualified” means this Indenture.

 

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

 

7

 

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

 

All terms used in this Indenture that are defined by
the Trust Indenture Act, defined by a Trust Indenture Act reference to another
statute or defined by an SEC rule under the Trust Indenture Act have the
meanings so assigned to them.

 

Section 1.3.            Compliance
Certificates and Opinions.

 

Upon any application or request by the Company to the
Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officer’s Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished except as required under
Section 314(c) of the Trust Indenture Act.

 

Every certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture (except
for certificates provided for in Section 10.5) shall include:

 

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

 

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

 

(c)   a statement
that, in the opinion of each such individual, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as
to whether such covenant or condition has been complied with; and

 

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

 

Section 1.4.            Form of
Documents Delivered to Trustee.

 

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

 

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

 

8

 

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 1.5.            Acts
of Holders; Record Dates.

 

(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 (either physically or by means of a facsimile or an electronic
transmission, provided that such electronic
transmission is transmitted through the facilities of a Depositary) 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 315
of the Trust Indenture Act) conclusive in favor of the Trustee and the Company
if made in the manner provided in this Section.

 

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

 

(c)   The
ownership, principal amount and serial numbers of Securities held by any
Person, and the date of commencement of such Person’s holding of same, shall be
proved by the Security Register.

 

(d)   Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of the Holder of any Security shall bind every future Holder of the same
Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, regardless of whether notation of such action is made upon
such Security.

 

(e)   Without
limiting the foregoing, a Holder entitled to give or take any action hereunder
with regard to any particular Security may do so with regard to all or any part
of the principal amount of such Security or by one or more duly appointed
agents each of which may do so pursuant to such appointment with regard to all
or any different part of such principal amount.

 

(f)    The
Company may set any day as the record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to give or take any
request, demand, authorization, direction, notice, consent, waiver or other Act
provided or permitted by this Indenture to be given or taken by Holders of Securities
of such series, but the Company shall have no obligation to do so.  With regard to any record date set pursuant
to this paragraph, the Holders of Outstanding Securities of the relevant series
on such record date (or their duly 

 

9

 

appointed agents), and only such Persons, shall be entitled to give or
take the relevant action, regardless of whether such Holders remain Holders
after such record date.

 

Section 1.6.            Notices,
Etc., to Trustee and Company.

 

(a)           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), telecopier or overnight air courier guaranteeing next day
delivery, to the others’ address:

 

If to the Company:

 

c/o Globalstar, Inc.

461 So. Milpitas Blvd

Milpitas, CA 95035

Facsimile:  408-933-4949

Attention:  Chief Financial Officer

 

If to the Trustee:

 

U.S. Bank National Association, as Trustee 

Corporate Trust Dept. CN-OH-W6CT

425 Walnut Street

Cincinnati, OH 45202

Facsimile:  513-632-5511

 

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

 

(c)           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; three Business Days after being deposited in the
mail, postage prepaid, if mailed; 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.

 

Section 1.7.            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.  Any
notice mailed to a Holder in the manner herein prescribed shall be conclusively
deemed to have been received by such Holder, regardless of whether such Holder
actually receives such notice.

 

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 

 

10

 

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 1.8.            Conflict
with Trust Indenture Act.

 

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

 

Section 1.9.            Effect
of Headings and Table of Contents.

 

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

 

Section 1.10.          Successors
and Assigns.

 

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

 

Section 1.11.          Separability
Clause.

 

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

 

Section 1.12.          Benefits
of Indenture.

 

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

 

Section 1.13.          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 1.14.          Legal
Holidays.

 

In any case where any Interest Payment Date,
Redemption Date or Stated Maturity of any Security shall not be a Business Day
at any Place of Payment, then (notwithstanding any other provision of this
Indenture or of the Securities (other than a provision of the Securities of any
series that specifically states that such provision shall apply in lieu of this
Section 1.14)) payment of interest or principal and any premium need not
be made at such Place of Payment on such date, but may be made on the next
succeeding Business Day at such Place of Payment with the same force and effect
as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, provided that no interest shall 

 

11

 

accrue for the period
from and after such Interest Payment Date, Redemption Date or Stated Maturity,
as the case may be.

 

Section 1.15.          Securities
in a Composite Currency, Currency Unit or Foreign Currency.

 

Unless otherwise specified in an Officer’s Certificate
delivered pursuant to Section 3.1 of this Indenture with respect to a
particular series of Securities, whenever for purposes of this Indenture any
action may be taken by the Holders of a specified percentage in aggregate
principal amount of Securities of all series or all series affected by a
particular action at the time Outstanding and, at such time, there are
Outstanding Securities of any series which are denominated in a coin, currency
or currencies other than Dollars (including, but not limited to, any composite
currency, currency units or Foreign Currency), then the principal amount of
Securities of such series which shall be deemed to be Outstanding for the purpose
of taking such action shall be that amount of Dollars that could be obtained
for such amount at the Market Exchange Rate. 
For purposes of this Section 1.15, the term “Market Exchange Rate”
shall mean the noon Dollar buying rate in The City of New York for cable
transfers of such currency or currencies as published by the Federal Reserve
Bank of New York, as of the most recent available date.  If such Market Exchange Rate is not so
available for any reason with respect to such currency, the Trustee shall use,
in its sole discretion and without liability on its part, such quotation of the
Federal Reserve Bank of New York as of the most recent available date, or
quotations or rates of exchange from one or more major banks in The City of New
York or in the country of issue of the currency in question, which for purposes
of euros shall be Brussels, Belgium, or such other quotations or rates of
exchange as the Trustee shall deem appropriate. 
The provisions of this paragraph shall apply in determining the equivalent
principal amount in respect of Securities of a series denominated in a currency
other than Dollars in connection with any action taken by Holders of Securities
pursuant to the terms of this Indenture.

 

All decisions and determinations of the Trustee
regarding the Market Exchange Rate or any alternative determination provided
for in the preceding paragraph shall be in its sole discretion and shall, in
the absence of manifest error, be conclusive to the extent permitted by law for
all purposes and irrevocably binding upon the Issuer and all Holders.

 

Section 1.16.          Payment
in Required Currency; Judgment Currency.

 

The Company agrees, to the fullest extent that it may effectively do so
under applicable law, that (a) if for the purpose of obtaining judgment in
any court it is necessary to convert the sum due in respect of the principal of
or interest on the Securities of any series (the “Required Currency”) into a
currency in which a judgment will be rendered (the “Judgment Currency”), the
rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the day on which final
unappealable judgment is entered, unless such day is not a Banking Day, then,
to the extent permitted by applicable law, the rate of exchange used shall be
the rate at which in accordance with normal banking procedures the Trustee
could purchase in The City of New York the Required Currency with the Judgment
Currency on the Banking Day next preceding the day on which final unappealable
judgment is entered and (b) its obligations under this Indenture to make
payments in the Required Currency (i) shall not be discharged or satisfied
by any tender, or any recovery pursuant to any judgment (regardless of whether
entered in accordance with subclause (a)), in any currency other than the
Required Currency, except to the extent that such tender or recovery shall
result in the actual receipt, by the payee, of the full amount of the Required
Currency expressed to be payable in respect of such payments, (ii) shall
be enforceable as an alternative or additional cause of action for the purpose
of recovering in the Required Currency the amount, if any, by which such actual
receipt shall fall short of the full amount of the Required Currency so
expressed to be payable and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture.

 

12

 

Section 1.17.          Language
of Notices, Etc.

 

Any request,
demand, authorization, direction, notice, consent, waiver or Act required or
permitted under this Indenture shall be in the English language, except that
any published notice may be in an official language of the country of
publication.

 

Section 1.18.          Incorporators,
Shareholders, Officers and Directors of the Company Exempt from Individual
Liability.

 

No recourse under
or upon any obligation, covenant or agreement of or contained in this Indenture
or of or contained in any Security or for any claim based thereon or otherwise
in respect thereof, or in any Security or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, member, officer, manager or director, as such, past, present or
future, of the Company or any successor Person, either directly or through the
Company or any successor Person, whether by virtue of any constitution, statute
or rule of law, or by the enforcement of any assessment or penalty or
otherwise, it being expressly understood that all such liability is hereby
expressly waived and released as a condition of, and as a part of the
consideration for, the execution of this Indenture and the issue of the
Securities.

 

ARTICLE TWO

SECURITY FORMS

 

Section 2.1.            Forms
Generally.

 

The Securities of
each series shall be in substantially the form set forth in this Article Two,
or in such other form or forms as shall be established by or pursuant to a
Board Resolution or in one or more indentures supplemental hereto, in each case
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any
securities exchange or as may, consistently herewith, be determined by the
officers executing such Securities as evidenced by their execution thereof.

 

The definitive Securities shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as
determined by the officers executing such Securities, as evidenced by their
execution thereof.  If the form of
Securities of any series is established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified
by an authorized officer or other authorized person on behalf of the Company
and delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 3.3 for the authentication and delivery of such
Securities.

 

The forms of Global Securities of any series shall have such provisions
and legends as are customary for Securities of such series in global form,
including without limitation any legend required by the Depositary for the
Securities of such series.

 

Section 2.2.            Form of
Face of Security.

 

[If the Security is an Original Issue Discount
Security, insert—FOR PURPOSES OF SECTION 1275 OF THE UNITED STATES
INTERNAL REVENUE CODE OF 1986, AS AMENDED, THE AMOUNT OF THE ORIGINAL ISSUE
DISCOUNT IS                ,
THE ISSUE DATE IS            ,
20       [AND] [,] THE YIELD TO MATURITY IS                [,]
[AND THE ORIGINAL ISSUE DISCOUNT FOR THE 

 

13

 

SHORT
ACCRUAL PERIOD IS                 AND
THE METHOD USED TO DETERMINE THE YIELD THEREFOR IS          ]]

 

[Insert
any other legend required by the Code or the regulations thereunder.]

 

[If a Global Security,—insert legend required by Section 2.4
of the Indenture] [If applicable,
insert  —UNLESS THIS
SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

GLOBALSTAR, INC.

 

[TITLE OF SECURITY]

 

No             .                                                                                                                                                             U.S.  $.
         

 

[CUSIP No.  ]

 

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

 

[If the Security is not to bear interest prior to
Maturity, insert—The principal of this Security shall not bear
interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the
overdue principal of this Security shall bear interest at the rate of 

 

14

 

     %
per annum (to the extent that the payment of such interest shall be legally
enforceable), which shall accrue from the date of such default in payment to
the date payment of such principal has been made or duly provided for.  Interest
on any overdue principal shall be payable on demand.  Any such interest on any overdue principal
that is not so paid on demand shall bear interest at the rate of
       % per annum (to the extent that the
payment of such interest shall be legally enforceable), which shall accrue from
the date of such demand for payment to the date payment of such interest has
been made or duly provided for, and such interest shall also be payable on
demand.]

 

[If a Global Security, insert—Payment of
the principal of (and premium, if any) and [if
applicable, insert—any such] interest on this Security will be made
by transfer of immediately available funds to a bank account in
                      
designated by the Holder in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts [state other currency].]

 

[If a Definitive Security, insert—Payment
of the principal of (and premium, if any) and [if
applicable, insert—any such] interest on this Security will be made
at the office or agency of the Company maintained for that purpose in
                              ,
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts] [state other
currency] [or subject to any laws or regulations applicable thereto and to the
right of the Company (as provided in the Indenture) to rescind the designation
of any such Paying Agent, at the [main] offices of
                                
in
                          ,
or at such other offices or agencies as the Company may designate, by [United
States Dollar] [state other currency] check drawn on, or transfer to a [United
States Dollar] account maintained by the payee with, a bank in The City of New
York (so long as the applicable Paying Agency has received proper transfer
instructions in writing at least        days
prior to the payment date)] [if applicable,
insert—; provided, however, that payment of interest may be made at the option
of the Company by [United States Dollar] [state other currency] check mailed to
the addresses of the Persons entitled thereto as such addresses shall appear in
the Security Register] [or by transfer to a [United States Dollar] [state other
currency] account maintained by the payee with a bank in The City of New York
[state other Place of Payment] (so long as the applicable Paying Agent has
received proper transfer instructions in writing by the record date prior to
the applicable Interest Payment Date)].]

 

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

 

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

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

Dated:

 

	
   

  	
  GLOBALSTAR, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

15

 

Section 2.3.            Form of
Reverse of Security.

 

This
Security is one of a duly authorized issue of senior securities of the Company
(herein called the “Securities”), issued and to be issued in one or more series
under an Indenture, dated as of
                    
    , 2008 (herein called the “Indenture”), between the
Company and U.S. Bank, National Association, as Trustee (herein called the “Trustee”,
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement, of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  As provided
in the Indenture, the Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may
mature at different times, may bear interest, if any, at different rates, may
be subject to different redemption provisions, if any, may be subject to
different sinking, purchase or analogous funds, if any, may be subject to different
covenants and Events of Default and may otherwise vary as in the Indenture
provided or permitted.  This Security is
one of the series designated on the face hereof [, limited in aggregate
principal amount to $                      ].

 

This
security is the general, unsecured, senior obligation of the Company.

 

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

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  	
  Year

  	
   

  	
  Redemption Price

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

[If applicable, insert—The Securities of
this series are subject to redemption upon not less than... nor more than ...
days’ notice by mail, (1) on                
in any year commencing with the year         and
ending with the year         through
operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of
the principal amount) set forth in the table below, and (2) at anytime [on
or after                     ],
as a whole or in part, at the election of the Company, at the Redemption Prices
for redemption otherwise than through operation of the sinking fund (expressed
as percentages of the principal amount) set forth in the table below:  If redeemed during the 12-month period
beginning                             of
the years indicated,

 

16

 

	
   

  Year

  	
   

  	
  Redemption Price for

  Redemption Through

  Operation of the Sinking Fund

  	
   

  	
  Redemption Price for

  Redemption Otherwise Than

  Through Operation of the

  Sinking Fund

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

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

 

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

 

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

 

[If applicable, insert—The Securities of
this series are not redeemable prior to Stated Maturity.]

 

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

 

[If the Security is an Original Issue Discount
Security, insert—If an Event of Default with
respect to Securities of this series shall occur and be continuing, an amount
of principal of the Securities of this series may be declared due and payable
in the manner and with the effect provided in the Indenture.  Such amount shall be equal to —insert formula for determining the amount.  Upon payment (i) of the amount of
principal so declared due and payable and (ii) of interest on any overdue
principal and overdue interest 

 

17

 

(in
each case to the extent that the payment of such interest shall be legally
enforceable), all of the Company’s obligations in respect of the payment of the
principal of and interest, if any, on the Securities of this series shall
terminate.]

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities of each series to be affected under
the Indenture at any time by the Company and the Trustee with the consent of
the Holders of a majority in principal amount of the Securities at the time
Outstanding of each series to be affected. 
The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of such
series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their
consequences.  Any such consent or waiver
by the Holder of this Security shall be conclusive and binding upon such Holder
and upon all future Holders of this Security and of any Security issued upon
the registration of transfer hereof or in exchange herefor or in lieu hereof,
regardless of whether notation of such consent or waiver is made upon this
Security.

 

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

 

[If a Global Security, insert—This Global
Security or portion hereof may not be exchanged for Definitive Securities of
this series except in the limited circumstances provided in the Indenture.  The holders of beneficial interests in this
Global Security will not be entitled to receive physical delivery of Definitive
Securities except as described in the Indenture and will not be considered the
Holders thereof for any purpose under the Indenture.]

 

[If a Definitive Security, insert—As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Security is registerable in the Security Register, upon
surrender of this Security for registration of transfer at the office or agency
of the Company in [if applicable, insert—any
place where the principal of and any premium and interest on this Security are
payable] [if applicable, insert—The
City of New York [, or, subject to any laws or regulations applicable thereto
and to the right of the Company (limited as provided in the Indenture) to
rescind the designation of any such transfer agent, at the [main] offices of
                      
in
                                
or at such other offices or agencies as the Company may designate]], duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.]

 

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

 

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

 

18

 

Prior
to due presentment of this Security for registration of transfer, the Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,
regardless of whether this Security be overdue, and none of the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

 

No
recourse under or upon any obligation, covenant or agreement of or contained in
the Indenture or of or contained in any Security, or for any claim based
thereon or otherwise in respect thereof, or in any Security, or because of the
creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, member, officer, manager or director, as such, past,
present or future, of the Company or of any successor Person, either directly
or through the Company or any successor Person, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any
assessment, penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released by the acceptance hereof and
as a condition of, and as part of the consideration for, the Securities and the
execution of the Indenture.

 

The
Indenture provides that the Company (a) will be discharged from any and
all obligations in respect of the Securities (except for certain obligations
described in the Indenture), or (b) need not comply with certain
restrictive covenants of the Indenture, in each case if the Company deposits,
in trust, with the Trustee money or U.S. Government Obligations (or a combination
thereof) which through the payment of interest thereon and principal thereof in
accordance with their terms will provide money, in an amount sufficient to pay
all the principal of and interest on the Securities, but such money need not be
segregated from other funds except to the extent required by law.

 

Except
as otherwise defined herein, all terms used in this Security which are defined
in the Indenture shall have the meanings assigned to them in the Indenture.

 

[If a Definitive Security, insert as a separate page—

 

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

 

                                                                                                 

(Please
Print or Typewrite Name and Address of Assignee)

 

the
within instrument of GLOBALSTAR, INC. and does hereby irrevocably constitute
and appoint
                                      
Attorney to transfer said instrument on the books of the within-named Company,
with full power of substitution in the premises.

 

Please Insert Social
Security or Other Identifying Number of Assignee:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Signature)

  

 

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

 

Section 2.4.            Global
Securities.

 

Every Global Security authenticated and delivered
hereunder shall bear a legend in substantially the following form:

 

19

 

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

 

EVERY
SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN
EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO
THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

If Securities of a series are issuable in whole or in part in the form
of one or more Global Securities, as specified as contemplated by Section 3.1,
then, notwithstanding clause (i) of Section 3.1 and the provisions of
Section 3.2, any Global Security shall represent such of the Outstanding
Securities of such series as shall be specified therein and may provide that it
shall represent the aggregate amount of Outstanding Securities from time to
time endorsed thereon and that the aggregate amount of Outstanding Securities
represented thereby may from time to time be reduced or increased, as the case
may be, to reflect exchanges.  Any
endorsement of a Global Security to reflect the amount, or any reduction or
increase in the amount, of Outstanding Securities represented thereby shall be
made in such manner and upon instructions given by such Person or Persons as
shall be specified therein or in a Company Order.  Subject to the provisions of Section 3.3,
Section 3.4 and Section 3.5, the Trustee shall deliver and redeliver
any Global Security in the manner and upon instructions given by the Person or
Persons specified therein or in the applicable Company Order.  Any instructions by the Company with respect
to endorsement or delivery or redelivery of a Global Security shall be in a
Company Order (which need not comply with Section 1.3 and need not be
accompanied by an Opinion of Counsel).

 

The provisions of the last sentence of Section 3.3 shall apply to
any Security represented by a Global Security if such Security was never issued
and sold by the Company and the Company delivers to the Trustee the Global
Security together with a Company Order (which need not comply with Section 1.3
and need not be accompanied by an Opinion of Counsel) with regard to the
reduction or increase, as the case may be, in the principal amount of
Securities represented thereby, together with the written statement
contemplated by the last sentence of Section 3.3.

 

Section 2.5.            Form of
Trustee’s Certificate of Authentication.

 

The Trustee’s
certificate(s) of authentication shall be in substantially the following
form:

 

This
is one of the Securities of the series designated [insert title
of applicable series] referred to in the within-mentioned Indenture.

	
   

  	
   

  
	
   

  	
  ,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

20

 

ARTICLE THREE

THE SECURITIES

 

Section 3.1.            Amount
Unlimited; Issuable in Series.

 

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

 

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

 

(a)   the title of the Securities of the series
(which shall distinguish the Securities of the series from all other Securities
and which may be part of a series of Securities previously issued);

 

(b)   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 3.4, Section 3.5, Section 3.6,
Section 9.6 or Section 11.7 and except for any Securities which,
pursuant to Section 3.3, are deemed never to have been authenticated and
delivered hereunder);

 

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

 

(d)   the date or dates on which the principal of
the Securities of the series is payable or the method of determination thereof;

 

(e)   the rate or rates at which the Securities of
the series shall bear interest, if any, or the formula, method or provision
pursuant to which such rate or rates are determined, the date or dates from
which such interest shall accrue or the method of determination thereof, the
Interest Payment Dates on which such interest shall be payable and the Regular
Record Date for the interest payable on any Interest Payment Date;

 

(f)    the place or places where, subject to the
provisions of Section 10.2, the principal of and any premium and interest
on Securities of the series shall be payable, Securities of the series may be
surrendered for registration of transfer, Securities of the series may be
surrendered for exchange and notices, and demands to or upon the Company in
respect of the Securities of the series and this Indenture may be served;

 

(g)   the period or periods within which, the price
or prices at 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;

 

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

 

21

 

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

 

(j)    whether payment of principal of and premium,
if any, and interest, if any, on the Securities of the series shall be without
deduction for taxes, assessments or governmental charges paid by Holders of the
series;

 

(k)   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 5.2;

 

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

 

(m)  if and as applicable, that the Securities of
the series shall be issuable in whole or in part in the form of one or more
Global Securities and, in such case, the Depositary or Depositaries for such
Global Security or Global Securities and any circumstances other than those set
forth in Section 3.5 in which any such Global Security may be transferred
to, and registered and exchanged for Securities registered in the name of, a
Person other than the Depositary for such Global Security or a nominee thereof
and in which any such transfer may be registered;

 

(n)   any deletions from, modifications of or
additions to the Events of Default set forth in Section 5.1 or the
covenants of the Company set forth in Article Ten with respect to the
Securities of such series;

 

(o)   whether and under what circumstances the
Company will pay additional amounts on the Securities of the series held by a
Person who is not a U.S. Person in respect of any tax, assessment or
governmental charge withheld or deducted and, if so, whether the Company will
have the option to redeem the Securities of the series rather than pay such
additional amounts;

 

(p)   if the Securities of the series are to be
issuable in definitive form (whether upon original issue or upon exchange of a
temporary Security of such series) only upon receipt of certain certificates or
other documents or satisfaction of other conditions, the form and terms of such
certificates, documents or conditions;

 

(q)   if the Securities of the series are to be
convertible into or exchangeable for any other security or property of the
Company, including, without limitation, securities of another Person held by
the Company or its Affiliates and, if so, the terms thereof;

 

(r)    if other than as provided in Section 13.2
and Section 13.3, the means of Legal Defeasance or Covenant Defeasance as
may be specified for the Securities of the series;

 

(s)   if other than the Trustee, the identity of
the initial Security Registrar and any initial Paying Agent; and

 

(t)    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 the Board Resolution referred to above and 

 

22

 

(subject to Section 3.3) set forth, or determined in the manner
provided, in the Officer’s Certificate referred to above or in any such
indenture supplemental hereto.

 

All Securities of any one series need not be issued at the same time
and, unless otherwise provided, a series may be reopened, without the consent
of the Holders, for increases in the aggregate principal amount of such series
of Securities and issuances of additional Securities of such series or for the
establishment of additional terms with respect to the Securities of such
series.

 

If any of the terms of the series are established by action taken by or
pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by an authorized officer or other authorized person on
behalf of the Company and delivered to the Trustee at or prior to the delivery
of the Officer’s Certificate setting forth, or providing the manner for
determining, the terms of the series.

 

With respect to Securities of a series subject to a Periodic Offering,
such Board Resolution or Officer’s Certificate may provide general terms for
Securities of such series and provide either that the specific terms of
particular Securities of such series shall be specified in a Company Order or
that such terms shall be determined by the Company or one or more agents
thereof designated in an Officer’s Certificate, in accordance with a Company
Order.

 

Section 3.2.            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 3.1.  In the absence of any such provisions 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 3.3.            Execution,
Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its Chief Executive Officer, its President, its Chief
Financial Officer or any of its Vice Presidents and need not be attested.  The signature of any of these officers on the
Securities may be manual or facsimile.

 

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

 

At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by
the Company to the Trustee for authentication, together with a Company Order
for the authentication and delivery of such Securities, and the Trustee in
accordance with the Company Order shall authenticate and deliver such
Securities; provided, however,
that in the case of Securities offered in a Periodic Offering, the Trustee
shall authenticate and deliver such Securities from time to time in accordance
with such other procedures (including, without limitation, the receipt by the
Trustee of oral or electronic instructions from the Company or its duly
authorized agents, thereafter promptly confirmed in writing) acceptable to the
Trustee as may be specified by or pursuant to a Company Order delivered to the
Trustee prior to the time of the first authentication of Securities of such
series.  If the forms or terms of the
Securities of the series have been established in or pursuant to one or more
Board Resolutions as permitted by Section 2.1 and Section 3.1, in
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive such documents as it may reasonably request.  The Trustee shall also be 

 

23

 

entitled to receive, and (subject to Section 6.1) shall be fully
protected in relying upon, an Opinion of Counsel stating,

 

(a)   if the form or forms of such Securities has
been established in or pursuant to a Board Resolution as permitted by Section 2.1,
that each such form has been established in conformity with the provisions of
this Indenture;

 

(b)   if the terms of such Securities have been, or
in the case of Securities of a series offered in a Periodic Offering will be,
established in or pursuant to a Board Resolution as permitted by Section 3.1,
that such terms have been, or in the case of Securities of a series offered in
a Periodic Offering will be, established in conformity with the provisions of
this Indenture, subject, in the case of Securities of a series offered in a
Periodic Offering, to any conditions specified in such Opinion of Counsel; and

 

(c)   that such Securities when authenticated and
delivered by the Trustee and issued by the Company in the manner and subject to
any conditions and assumptions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Company enforceable in
accordance with their terms, subject to the following limitations: (i) bankruptcy,
insolvency, moratorium, reorganization, liquidation, fraudulent conveyance or
transfer and other similar laws of general applicability relating to or
affecting the enforcement of creditors’ rights, or to general equity
principles, (ii) the availability of equitable remedies being subject to
the discretion of the court to which application therefor is made; and (iii) such
other usual and customary matters as shall be specified in such Opinion of
Counsel.

 

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

 

Notwithstanding the provisions of Section 3.1 and of the preceding
paragraph, if all Securities of a series are not to be originally issued at one
time, it shall not be necessary to deliver the Officer’s Certificate otherwise
required pursuant to Section 3.1 or the Company Order and Opinion of
Counsel otherwise required pursuant to such preceding paragraph at or prior to
the time of authentication of each Security of such series if such documents
are delivered at or prior to the authentication upon original issuance of the
first Security of such series to be issued.

 

With respect to Securities of a series offered in a Periodic Offering,
the Trustee may rely, as to the authorization by the Company of any of such
Securities, on the form or forms and terms thereof and the legality, validity,
binding effect and enforceability thereof, upon the Opinion of Counsel and the
other documents delivered pursuant to Section 2.1 and Section 3.1 and
this Section, as applicable, in connection with the first authentication of
Securities of such series.

 

Each Security shall be dated the date of its authentication.

 

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

 

24

 

cancellation as provided in Section 3.9 for all purposes of this
Indenture such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this
Indenture.

 

Section 3.4.            Temporary
Securities.

 

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

 

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

 

Section 3.5.            Registration,
Registration of Transfer and Exchange.

 

The Company shall cause to be kept at the office or agency of the
Company in the Borough of Manhattan, the City of New York or in any other
office or agency of the Company in a Place of Payment required by Section 10.2
a register (the register maintained in such office being herein sometimes
referred to as the “Security Register”) in which, subject to such reasonable regulations
as it may prescribe, the Company shall provide for the registration of
Securities and of transfers of Securities. 
The Trustee is hereby appointed as the initial “Security Registrar” for
the purpose of registering Securities and transfers of Securities as herein
provided, and its corporate trust office in New York City, which, at the date
hereof, is located at 100 Wall Street, New York, New York 10005, is the initial
office or agency in the Borough of Manhattan where the Securities Register will
be maintained.  The Company may at any
time replace such Security Registrar, change such office or agency or act as
its own Security Registrar.  The Company
will give prompt written notice to the Trustee of any change of the Security
Registrar or of the location of such office or agency.

 

Upon surrender for registration of transfer of any Security of any
series at the office or agency maintained pursuant to Section 10.2 for
such purpose, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Securities of the same series and tenor, of any authorized denominations
and of a like aggregate principal amount.

 

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

 

25

 

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

 

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

 

No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 3.4, Section 9.6 or Section 11.7
not involving any transfer.

 

The Company shall not be required (a) to issue, register the
transfer of or exchange Securities of any series during a period beginning at,
the opening of business 15 days before the day of the mailing of a notice of
redemption of Securities of that series selected for redemption under Section 11.3
and ending at the close of business on the day of such mailing, or (b) to
register the transfer of or exchange any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

 

Notwithstanding any other provisions of this Indenture and except as
otherwise specified with respect to any particular series of Securities as
contemplated by Section 3.1, 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.  Every Security authenticated and delivered
upon registration of, transfer of, or in exchange for or in lieu of, a Global Security
shall be a Global Security except as provided in the two paragraphs immediately
following.

 

If at any time the Depositary for any Securities of a series
represented by one or more Global Securities notifies the Company that it is
unwilling or unable to continue as Depositary for such Securities or if at any
time the Depositary for such Securities shall no longer be eligible to continue
as Depositary under Section 3.1 or ceases to be a clearing agency
registered under the Exchange Act, the Company shall appoint a successor
Depositary with respect to such Securities. 
If a successor Depositary for such Securities is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such ineligibility, the Company’s election pursuant to Section 3.1 that
such Securities be represented by one or more Global Securities shall no longer
be effective and 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 registered form without coupons, in any authorized denominations, in
an aggregate principal amount equal to the principal amount of the Global
Security or Securities representing such Securities in exchange for such Global
Security or Securities registered in the names of such Persons as the
Depositary shall direct.

 

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 a 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 the Definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive registered
form without coupons, in any authorized denominations, in an aggregate
principal amount equal to the principal amount of the Global 

 

26

 

Security or Securities representing such Securities in exchange for
such Global Security or Securities registered in the names of such Persons as
the Depositary shall direct.

 

If specified by the Company pursuant to Section 3.1 with respect
to Securities represented by a Global Security, the Depositary for such Global
Security may surrender such Global Security in exchange in whole or in part for
Securities of the same series and tenor in definitive registered form on such
terms as are acceptable to the Company, the Trustee and such Depositary.  Thereupon, the Company shall execute, and the
Trustee, upon receipt of a Company Order for the authentication and delivery of
Securities in definitive registered form, shall authenticate and deliver, without
service charge,

 

(a)   to the Person specified by such Depositary, a
new Security or Securities of the same series and tenor, of any authorized
denominations 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

 

(b)   to such 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 authenticated and delivered pursuant to clause (a) above.

 

Every
Person who takes or holds any beneficial interest in a Global Security agrees
that:

 

(a)           the Company and the Trustee may deal
with the Depositary as sole owner of the Global Security and as the authorized
representative of such Person;

 

(b)   such Person’s rights in the Global Security
shall be exercised only through the Depositary and shall be limited to those
established by law and agreement between such Person and the Depositary and/or
direct and indirect participants of the Depositary;

 

(c)   the Depositary and its participants make
book-entry transfers of beneficial ownership among, and receive and transmit
distributions of principal and interest on the Global Securities to, such Persons
in accordance with their own procedures; and

 

(d)   none of the Company, the Trustee, nor any
agent of any of them 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.

 

Section 3.6.            Mutilated,
Destroyed, Lost and Stolen Securities.

 

If any mutilated Security is surrendered to the Trustee, together with,
in proper cases, such security or indemnity as may be required by the Company
or the Trustee to save each of them and any agent of any of them harmless, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

 

If there shall be delivered to the Company and the Trustee (a) evidence
to their satisfaction of the destruction, loss or theft of any Security and (b) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Security has been acquired by a bona fide purchaser,
the Company shall execute and upon its request the Trustee shall authenticate
and deliver, in lieu of any such destroyed, lost or stolen 

 

27

 

Security, a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

 

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

 

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

 

Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company regardless of whether the
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series duly issued
hereunder.

 

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

 

Section 3.7.            Payment
of Interest; Interest Rights Preserved.

 

Except as otherwise provided as contemplated by Section 3.1 with
respect to any series of Securities, interest on any Security which is payable,
and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.

 

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

 

(a)   The Company may elect to make payment of any
Defaulted Interest to the Persons in whose names the Securities of such series
(or their respective Predecessor Securities) are registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest,
which shall be fixed in the following manner. 
The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security of such series and the
date of the proposed payment, and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to
be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon, the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment.  The
Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first-class postage prepaid, to each Holder of Securities of such
series at his address as it appears in the Security Register, not less than 10
days prior to such Special Record Date. 
Notice of the proposed payment of such 

 

28

 

Defaulted Interest and
the Special Record Date therefor having been so mailed, such Defaulted Interest
shall be paid to the Persons in whose names the Securities of such series (or
their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to
the following clause (b).

 

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

 

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

 

Section 3.8.            Persons
Deemed Owners.

 

Except as otherwise provided as contemplated by Section 3.1 with
respect to any series of Securities, prior to due presentment of a Security for
registration of transfer, the Company, the Trustee and any agent thereof may
treat the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of and any premium
and (subject to Section 3.5 and Section 3.7) any interest on such
Security and for all other purposes whatsoever, regardless of whether such
Security be overdue, and none of the Company, the Trustee nor any agent of any
of them shall be affected by notice to the contrary.

 

No holder of any beneficial interest in any Global Security held on its
behalf by a Depositary shall have any rights under this Indenture with respect
to such Global Security, and such Depositary may be treated by the Company, the
Trustee and any agent of thereof as the owner of such Global Security for all
purposes whatsoever.

 

Section 3.9.            Cancellation.

 

All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly canceled by it. 
The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and may deliver to the Trustee (or
to any other Person for delivery to the Trustee) for cancellation any
Securities previously authenticated hereunder which the Company has not issued
and sold, and all Securities so delivered shall be promptly canceled by the
Trustee.  No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section, except as expressly permitted by this Indenture.  All canceled Securities held by the Trustee
shall be disposed of in accordance with its customary practices, and the
Trustee shall thereafter deliver to the Company a certificate with respect to
such disposition from time to time upon written request.

 

Section 3.10.          Computation
of Interest.

 

Except as otherwise specified as contemplated by Section 3.1 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a year of twelve 30-day months.

 

29

 

Section 3.11.          CUSIP or CINS Numbers.

 

The Company in issuing the Securities may use “CUSIP”
or “CINS” numbers (if then generally in use, and in addition to the other
identification numbers printed on the Securities), and, if so, the Trustee
shall use “CUSIP” or “CINS” numbers in notices of redemption as a convenience
to Holders; provided, however,
that any such notice may state that no representation is made as to the
correctness of such “CUSIP” or “CINS” 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 “CUSIP” or “CINS” numbers.

 

ARTICLE FOUR

SATISFACTION AND DISCHARGE

 

Section 4.1.            Satisfaction and
Discharge of Indenture.

 

This Indenture shall cease to be of further effect and
will be discharged with respect to the Securities of any series (except as to
any surviving rights of registration of transfer or exchange of Securities and
certain rights of the Trustee, in each case, herein expressly provided for),
and the Trustee, upon Company Request and at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to such Securities, when:

 

(a)   either

 

(i)            all
such Securities theretofore authenticated and delivered (other than (A) such
Securities which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 3.6, and (B) such 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 10.3) have been
delivered to the Trustee for cancellation; or

 

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

 

(A)          have
become due and payable, or

 

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

 

(C)           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 (A), (B) or (C) above, has deposited or
caused to be deposited with the Trustee as trust funds in trust for such
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 which have become due and payable) or to the Stated
Maturity or Redemption Date, as the case may be, together with instructions
from the Company irrevocably directing the Trustee to apply such funds to the
payment thereof at maturity or redemption, as the case may be;

 

30

 

(b)   the
Company has paid or caused to be paid all other sums payable hereunder by the Company
with respect to such Securities; and

 

(c)   the
Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, which, taken together, state that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture with
respect to such Securities have been complied with.

 

Notwithstanding the satisfaction and discharge of this
Indenture with respect to the Securities of any series, (x) the
obligations of the Company to the Trustee under Section 6.7, the
obligations of the Trustee to any Authenticating Agent under Section 6.14
and the right of the Trustee to resign under Section 6.10 shall survive,
and (y) if money shall have been deposited with the Trustee pursuant to
clause (a) of this Section, the obligations of the Company and the Trustee
under Section 4.2, Section 6.6 and Section 10.2 and the last
paragraph of Section 10.3 shall survive.

 

Section 4.2.            Application of
Trust Money.

 

Subject to the provisions of the last paragraph of Section 10.3,
all money deposited with the Trustee pursuant to Section 4.1 shall be held
in trust and applied by it, in accordance with the provisions of the Securities
and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium
and interest for whose payment such money has been deposited with the Trustee.

 

ARTICLE FIVE

REMEDIES

 

Section 5.1.            Events of Default.

 

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

 

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

 

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

 

(c)   default
in the deposit of any sinking fund payment when due; or

 

(d)   default
in the performance, or breach, of the covenant set forth in Section 8.1;
or

 

(e)   default
in the performance, or breach, of any covenant in this Indenture (other than the
covenant in Section 8.1 or any other covenant a default in whose
performance or whose breach is elsewhere in this Section specifically
dealt with or which has expressly been included in this Indenture solely for
the benefit of series of Securities other than that series), and continuance of
such default or breach for a period of 60 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of that series a written notice 

 

31

 

specifying such
default or breach and requiring it to be remedied and stating that such notice
is a “Notice of Default” hereunder; or

 

(f)    the
Company or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case or proceeding, (ii) consents
to the entry of any order for relief against it in an involuntary case or
proceeding, (iii) consents to the appointment of a Custodian of it or for
all or substantially all of its property, (iv) makes a general assignment
for the benefit of its creditors, (v) consents to or acquiesces in the
institution of a bankruptcy or an insolvency proceeding against it, (vi) takes
any corporate action to authorize or effect any of the foregoing, or (vii) takes
any comparable action under any foreign laws relating to insolvency; or

 

(g)   a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (i) is for relief against the Company or any Significant
Subsidiary in an involuntary case, (ii) appoints a Custodian of the
Company or any Significant Subsidiary for all or substantially all of its
property, or (iii) orders the liquidation or winding up of the Company or
any Significant Subsidiary; and the order or decree remains unstayed and in
effect for 30 consecutive days; or

 

(h)   any
other Event of Default provided with respect to Securities of that series in
accordance with Section 3.1.

 

Section 5.2.            Acceleration of
Maturity; Rescission and Annulment.

 

If an Event of Default with respect to Securities of
any series at the time Outstanding occurs and is continuing, then in every such
case the Trustee or the Holders of at least 25% in aggregate principal amount
of the Outstanding Securities of that series may declare the principal amount
(or, if the Securities of that series are Original Issue Discount Securities,
such portion of the principal amount as may be specified in the terms of that
series), together with any accrued and unpaid interest thereon, of all of the
Securities of that series to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by Holders), and upon any
such declaration such principal amount (or specified amount), together with any
accrued and unpaid interest thereon, shall become immediately due and payable.  Notwithstanding the foregoing, if an Event of
Default specified in clause (f) or (g) of Section 5.1 occurs,
the Securities of any series at the time Outstanding shall be due and payable
immediately without further action or notice.

 

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

 

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

 

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

 

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

 

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

 

32

 

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

 

(b)   all
Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due
solely by such declaration of acceleration, have been cured or waived as
provided in Section 5.13.

 

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

 

Section 5.3.            Collection of
Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that if:

 

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

 

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

 

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

 

If the Company fails to pay such amounts forthwith
upon such demand, the Trustee, in its own name and as trustee of an express
trust, may institute a judicial proceeding for the collection of the sums so
due and unpaid, may prosecute such proceeding to judgment or final decree and
may enforce the same against the Company or any other obligor upon such
Securities and collect the moneys adjudged or decreed to be payable in the
manner provided by law out of the property of the Company or any other obligor
upon such Securities, wherever situated.

 

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

 

Section 5.4.            Trustee May File
Proofs of Claim.

 

In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other
obligor upon the Securities, their property or their creditors, the Trustee
(irrespective of whether the principal of the Securities shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand on the Company for the payment
of overdue principal or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

 

33

 

(a)   to
file and prove a claim for the whole amount of principal (and premium, if any)
and interest owing and unpaid in respect of the Securities and to file such
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel)
and of the Holders allowed in such judicial proceeding, and

 

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

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee and, if
the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 6.7.

 

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

 

Section 5.5.            Trustee May Enforce
Claims Without Possession of Securities.

 

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

 

Section 5.6.            Application of
Money Collected.

 

Any money collected by the Trustee pursuant to this Article Five
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal
or any premium or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

 

FIRST: To the payment of all amounts due the Trustee
under Section 6.7;

 

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

 

THIRD: The balance, if any, to the Company.

 

34

 

Section 5.7.            Limitation on Suits.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 5.8.            Unconditional Right
of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other provision in this Indenture,
the Holder of any Security shall have the right, which is absolute and unconditional,
to receive payment of the principal of and any premium and (subject to Section 3.5
and Section 3.7) interest on such Security on the Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

 

Section 5.9.            Restoration of
Rights and Remedies.

 

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

 

Section 5.10.          Rights and Remedies
Cumulative.

 

Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in
the last paragraph of Section 3.6, no right or remedy herein conferred
upon or 

 

35

 

reserved to the Trustee
or to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. 
The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

Section 5.11.          Delay or Omission Not
Waiver.

 

To fullest extent permitted by applicable law, no
delay or omission of the Trustee or of any Holder of any Securities to exercise
any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein.  Every right and
remedy given by this Article Five or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.

 

Section 5.12.          Control by Holders.

 

The Holders of not less than a majority in principal
amount of the Outstanding Securities of any series shall have the right to direct
the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee, with respect to the Securities of such series; provided,
however, that:

 

(a)   such
direction shall not be in conflict with any rule of law or with this
Indenture;

 

(b)   the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction; and

 

(c)   subject
to the provisions of Section 6.1, the Trustee shall have the right to
decline to follow any such direction if the Trustee in good faith shall
determine that the proceeding so directed would involve the Trustee in personal
liability.

 

Section 5.13.          Waiver of Past
Defaults.

 

By written notice to the Company and the Trustee, the
Holders of not less than a majority in principal amount of the Outstanding
Securities of any series may on behalf of the Holders of all the Securities of
such series waive any past default hereunder with respect to such series and
its consequences, except:

 

(a)   a
continuing default in the payment of the principal of or any premium or
interest on any Security of such series, or

 

(b)   a
default in respect of a covenant or provision hereof which under Article Nine
cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series affected.

 

Upon any such waiver,
such default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture, but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

 

36

 

Section 5.14.          Undertaking for Costs.

 

All parties to this Indenture agree, and each Holder
of any Security by his acceptance thereof shall be deemed to have agreed, that
any court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for
any action taken, suffered or omitted by it as Trustee, the filing by any party
litigant, other than the Trustee, in such suit of an undertaking to pay the
costs of such suit, and that such court may in its discretion assess reasonable
costs, including reasonable attorneys’ fees, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section 5.14 shall
not apply to any suit instituted by the Company, to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in principal amount of the Outstanding Securities
of any series, or to any suit instituted by any Holder for the enforcement of
the payment of the principal of (or premium, if any) or interest on any
Security on or after the Stated Maturity or Maturities expressed in such
Security (or, in the case of redemption, on or after the Redemption Date).

 

Section 5.15.          Waiver of Stay or
Extension Laws.

 

The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and the Company
(to the extent that it may lawfully do so) hereby expressly waives all benefit
or advantage of any such law and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been
enacted.

 

ARTICLE SIX

THE TRUSTEE

 

Section 6.1.            Certain Duties and
Responsibilities.

 

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

 

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

 

(ii)           in the absence of bad faith on its part,
the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture;
but in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether they conform to
the requirements of this Indenture.

 

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

 

37

 

(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

 

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

 

(ii)           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;

 

(iii)          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 of a
majority in principal amount of the Outstanding Securities of any series, given
pursuant to Section 5.12, 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
with respect to the Securities of such series; and

 

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

 

(d)  Regardless of whether therein expressly
so provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

 

Section 6.2.            Notice of Defaults.

 

Within 90 days after the occurrence of any Default
hereunder with respect to the Securities of any series, the Trustee shall
transmit by mail to all Holders of Securities of such series, as their names
and addresses appear in the Security Register, notice of such Default hereunder
known to the Trustee, unless such Default shall have been cured or waived; provided, however, that,
except in the case of a Default in the payment of the principal of or any
premium or interest on any Security of such series or in the payment of any
sinking fund installment with respect to Securities of such series, the Trustee
may withhold from Holders of Securities notice of any continuing Default or
Event of Default if the Trustee in good faith determines that the withholding
of such notice is in the interest of the Holders of Securities of such series;
and, provided, further,
that in the case of any Default of the character specified in Section 5.1(c) with
respect to Securities of such series, no such notice to Holders shall be given
until at least 90 days after the occurrence thereof and that in the case of any
Default of the character specified in Section 5.1(e) with respect to
Securities of such series, no such notice to Holders shall be given until at
least 180 days after the occurrence thereof.

 

Section 6.3.            Certain Rights of
Trustee.

 

Subject to the provisions of Section 6.1:

 

(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, note, other evidence of
indebtedness or other 

 

38

 

paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

 

(b)  any request or direction of the Company
mentioned herein shall be sufficiently evidenced by a Company Request or
Company Order (other than delivery of any Security to the Trustee for
authentication and delivery pursuant to Section 3.3, which shall be
sufficiently evidenced as provided therein) 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) shall be
entitled to receive and may, in the absence of bad faith on its part, rely upon
an Officer’s Certificate;

 

(d)  the Trustee may consult with counsel
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 reasonable
security or indemnity against the costs, expenses and liabilities which might
be incurred by it in compliance 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, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney;

 

(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 and shall not be responsible for the supervision
of officers and employees of such agents or attorneys;

 

(h)  the Trustee may request that the
Company deliver an Officer’s 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 Officer’s Certificate may be signed by any
person authorized to sign an Officer’s Certificate, including any person
specified as so authorized in any such certificate previously delivered and not
superseded;

 

(i)  the Trustee shall be entitled to the
rights and protections afforded to the Trustee pursuant to this Article Six
in acting as a Paying Agent or Security Registrar hereunder; and

 

(j)  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 at the Corporate
Trust Office of the Trustee, and such notice references the Notes and this
Indenture.

 

39

 

Section 6.4.            Not Responsible for
Recitals or Issuance of Securities.

 

The recitals contained herein and in the Securities,
except the Trustee’s certificates of authentication, shall be taken as the
statements of the Company and the Trustee or any Authenticating Agent assumes
no responsibility for their correctness. 
Neither the Trustee nor any Authenticating Agent makes any
representations as to the validity or sufficiency of this Indenture or of the
Securities.  The Trustee or any
Authenticating Agent shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof.

 

Section 6.5.            May Hold
Securities.

 

The Trustee, any Authenticating Agent, any Paying
Agent, any Security Registrar or any other agent of the Company in its
individual or any other capacity, may become the owner or pledgee of Securities
and, subject to Sections 310(b) and 311 of the Trust Indenture Act and Section 6.8,
Section 6.9 and Section 6.13, may otherwise deal with the Company
with the same rights it would have if it were not Trustee, Authenticating
Agent, Paying Agent, Security Registrar or such other agent.

 

Section 6.6.            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 in
writing with the Company.

 

Section 6.7.            Compensation and
Reimbursement.

 

The Company agrees:

 

(a)  to pay to the Trustee from time to time
reasonable compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

 

(b)  except as otherwise expressly provided
herein, to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence or bad faith;
and

 

(c)  to indemnify each of the Trustee and
its officers, directors, agents and employees for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or willful
misconduct on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder.

 

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 (and premium,
if any) or interest on particular Securities.

 

Without limiting any rights available to the Trustee
under applicable law, when the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 5.1(f) or

 

40

 

Section 5.1(g), the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for the
services of the Trustee are intended to constitute expenses of administration
under any applicable Bankruptcy Law.

 

The provisions of this Section 6.7 shall survive
the satisfaction and discharge of this Indenture and the Legal Defeasance of
the Securities.

 

Section 6.8.            Disqualification;
Conflicting Interests.

 

Reference is made to Section 310(b) of the
Trust Indenture Act.  There shall be
excluded from the operation of Section 310(b)(1) of the Trust
Indenture Act this Indenture with respect to the Securities of more than one
series.

 

Section 6.9.            Corporate Trustee
Required; Eligibility.

 

There shall at all times be a Trustee hereunder which
shall be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus required by the Trust Indenture Act, subject to
supervision or examination by Federal or State authority.  If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published.  The Trustee shall not be an
obligor upon the Securities or an Affiliate thereof.  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 hereinafter specified in this Article Six.

 

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
in accordance with the applicable requirements of Section 6.11.

 

(b)  The Trustee may resign at any time with
respect to the Securities of one or more series by giving written notice
thereof to the Company.  If the
instrument of acceptance by a successor Trustee required by Section 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 any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.

 

(c)  The Trustee may be removed at any time
with respect to the Securities of any series by Act of the Holders of a
majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company.

 

(d)  If at any time:

 

(i)            the Trustee shall fail to comply with Section 310(b) of
the Trust Indenture Act after written request therefor by the Company or by any
Holder who has been a bona fide Holder of a Security for at least six months,
or

 

41

 

(ii)           the Trustee shall cease to be eligible
under Section 6.9 and shall fail to resign after written request therefor
by the Company or by any such Holder, or

 

(iii)          the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or
any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, (A) the Company by a Board Resolution
may remove the Trustee with respect to all Securities, or (B) subject to Section 5.14,
any Holder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the removal of the Trustee with respect
to all Securities and the appointment of a successor Trustee or Trustees.

 

(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
or Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the
Securities of one or more or all of such series and that at any time there
shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 6.11.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 6.11, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Company.  If no successor Trustee with respect to the
Securities of any series shall have been so appointed by the Company or the
Holders and accepted appointment in the manner required by Section 6.11,
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 to all Holders of Securities of such series in the
manner provided in Section 1.7. 
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.

 

(a)  In case of the appointment hereunder of
a successor Trustee with respect to all Securities, every such successor
Trustee so appointed shall execute, acknowledge and deliver to the Company and
to the retiring Trustee an instrument accepting such appointment, and thereupon
the resignation or removal of the retiring Trustee shall become effective and
such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on the request of the Company or the successor Trustee, such
retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee and shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee
hereunder.

 

42

 

(b)  In case of the appointment hereunder of
a successor Trustee with respect to the Securities of one or more (but not all)
series, the Company, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (ii) if the retiring Trustee
is not retiring with respect to all Securities, shall contain such provisions
as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (iii) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.

 

(c)  Upon request of any such successor
Trustee, the Company shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts referred to in paragraph (a) or (b) of this
Section, as the case may be.

 

(d)  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 and the Trust Indenture Act.

 

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 the corporate
trust business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this Article Six,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto.  In case any
Securities shall have been authenticated, but not delivered, by the Trustee
then in office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

 

Section 6.13.          Preferential
Collection of Claims Against Company.

 

Reference is
made to Section 311 of the Trust Indenture Act.  For purposes of Section 311(b) of
the Trust Indenture Act,

 

43

 

(a)  the term “cash transaction”
means any transaction in which full payment for goods or securities sold is
made within seven days after delivery of the goods or securities in currency or
in checks or other orders drawn upon banks or bankers and payable upon demand;

 

(b)  the term “self-liquidating
paper” means any draft, bill of exchange, acceptance or obligation which is
made, drawn, negotiated or incurred by the Company for the purpose of financing
the purchase, processing, manufacturing, shipment, storage or sale of goods,
wares or merchandise and which is secured by documents evidencing title to,
possession of, or a lien upon, the goods, wares or merchandise or the
receivables or proceeds arising from the sale of the goods, wares or
merchandise previously constituting the security, provided the security is
received by the Trustee simultaneously with the creation of the creditor
relationship with the Company arising from the making, drawing, negotiating or
incurring of the draft, bill of exchange, acceptance or obligation.

 

Section 6.14.          Appointment
of Authenticating Agent.

 

The Trustee
may appoint an Authenticating Agent or Agents with respect to one or more
series of Securities which shall be authorized to act on behalf of the Trustee
to authenticate Securities of such series issued upon exchange, registration of
transfer or partial redemption thereof or pursuant to Section 3.6, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder.  Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee’s certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. 
Each Authenticating Agent shall be acceptable to the Company and shall
at all times be a corporation organized and doing business under the laws of
the United States of America, any State thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to supervision or
examination by Federal or State authority. 
If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.  If at any time
an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

 

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 all or substantially all of the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating
Agent.

 

An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Company.  The
Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the
Company.  Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall mail written notice of
such appointment by first-class mail, postage prepaid, to all Holders of Securities
of the series with respect to

 

44

 

which such Authenticating Agent
will serve, as their names and addresses appear in 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. 
No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

 

Except with
respect to an Authenticating Agent appointed at the request of the Company, the
Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 6.14, and the Trustee shall be
entitled to be reimbursed by the Company for such payments, subject to the
provisions of Section 6.7.

 

If an
appointment with respect to one or more series is made pursuant to this Section
6.14, the Securities of such series may have endorsed thereon, in addition to
the Trustee’s certificate of authentication, an alternate certificate of
authentication in the following form:

 

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

 

	
   

  	
  ,

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   As Authenticating Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   Authorized Officer

  

 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND
COMPANY

 

Section 7.1.            Company
to Furnish Trustee Names and Addresses of Holders.

 

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

 

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

 

(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; provided, however, that
if and so long as the Trustee shall be the Security Registrar, no such list
need be furnished with respect to such series of Securities.

 

Section 7.2.            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 7.1 and the
names and addresses of Holders received by the Trustee in its 

 

45

 

capacity as
Security Registrar.  The Trustee may
destroy any list furnished to it as provided in Section 7.1 upon receipt of a
new list so furnished.

 

(b)  If three or more Holders
(herein 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
7.2(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 7.2(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 appear
in the information preserved at the time by the Trustee in accordance with
Section 7.2(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 SEC, 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
interest of the Holders or would be in violation of applicable law.  Such written statement shall specify the
basis of such opinion.  If the SEC, 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 SEC 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 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
none of the Company nor the Trustee nor any agent of any of them 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 7.2(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 7.2(b).

 

Section 7.3.            Reports
by Trustee.

 

Any Trustee’s
report required pursuant to Section 313(a) of the Trust Indenture Act shall be
dated as of May 15, and shall be transmitted within 60 days after May 15 of
each year (but in all events at intervals of not more than 12 months), commencing
with the year 20    , by mail to all Holders, as their 

 

46

 

names and addresses appear in
the Security Register.  A copy of each
such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the
SEC and with the Company.  The Company
will notify the Trustee when any Securities are listed on any stock exchange.

 

Section 7.4.            Reports
by Company.

 

The Company
shall:

 

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

 

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

 

(c)  transmit by mail to all Holders, as their names and
addresses appear in the Security Register, within 30 days after the filing
thereof with the Trustee, such summaries of any information, documents and
reports required to be filed by the Company pursuant to clauses (a) and (b) of
this Section as may be required by rules and regulations prescribed from time
to time by the SEC.

 

ARTICLE EIGHT

CONSOLIDATION, AMALGAMATION, MERGER AND SALE

 

Section 8.1.            Company
May Consolidate, Etc., Only on Certain Terms.

 

The Company
shall not consolidate or merge with or into any other Person or sell, convey,
transfer, lease or otherwise dispose of all or substantially all of the
properties and assets of the Company on a consolidated basis to any other
Person, and shall not permit any Person to consolidate or merge into the
Company, unless:

 

(a)  either: (i) the Company is the
surviving corporation; or (ii) the Person formed by or surviving any such
consolidation, amalgamation or merger or resulting from such conversion (if
other than the Company) or to which such sale, assignment, transfer, conveyance
or other disposition has been made is a corporation, limited liability company
or limited partnership organized or existing under the laws of the United
States, any state of the United States or the District of Columbia;

 

(b)  the Person formed by or
surviving any such conversion, consolidation, amalgamation or merger (if other
than the Company) or the Person to which such sale, assignment, transfer,
conveyance or other disposition has been made assumes all the obligations of
the Company under 

 

47

 

the Securities and this Indenture pursuant to agreements reasonably
satisfactory to the Trustee; provided that,
unless such Person is a corporation, a corporate co-issuer of the Securities
will be added to this Indenture by agreements reasonably satisfactory to the
Trustee;

 

(c)  immediately before and after
giving pro forma 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 occurred and be continuing; and

 

(d)  the Company has delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating
that such consolidation, amalgamation, merger, conveyance, sale, transfer or
lease and such supplemental indenture, if any, comply with this Article Eight
and that all conditions precedent herein provided for relating to such
transaction have been complied with.

 

Section 8.2.            Successor
Substituted.

 

Upon any
consolidation or merger of the Company with or into any other Person or any
sale, conveyance, transfer, lease or other disposition of all or substantially
all of the properties and assets of the Company on a consolidated basis in
accordance with Section 8.1, the successor or resulting Person formed by or
resulting upon such consolidation or merger (if other than the Company) or to
which such sale, conveyance, transfer, lease or other disposition 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 Company shall be relieved of all obligations and
covenants under this Indenture and the Securities.

 

ARTICLE NINE

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.1.            Without
Consent of Holders.

 

The Company
and the Trustee may amend or supplement this indenture or the Securities
without the consent of any holder of a Security:

 

(a)  to cure any ambiguity or to
correct or supplement any provision herein that may be inconsistent with any
other provision herein in a manner that does not adversely affect the rights of
any Holder of Securities in any material respect; or

 

(b)  to evidence the succession of
another Person to the Company and the assumption by any such successor of the
covenants of the Company herein and, to the extent applicable, to the
Securities; or

 

(c)  to provide for uncertificated
Securities in addition to or in place of certificated Securities; provided that the uncertificated Securities are issued in
registered form for purposes of Section 163(f) of the Code, or in the manner
such that the uncertificated Securities are described in Section 163(f)(2)(B)
of the Code; or

 

(d)  to secure the Securities of
any series; or

 

48

 

(e)  to add to the covenants of the
Company such further covenants, restrictions, conditions or provisions as the
Company shall consider to be appropriate for the benefit of the Holders of all
or any series of Securities (and if such covenants, restrictions, conditions or
provisions are to be for the benefit of less than all series of Securities,
stating that such covenants are expressly being included solely for the benefit
of such series) or to surrender any right or power herein conferred upon the
Company and to make the occurrence, or the occurrence and continuance, of a
Default in any such additional covenants, restrictions, conditions or
provisions an Event of Default permitting the enforcement of all or any of the
several remedies provided in this Indenture as herein set forth; provided, that in respect of any such additional covenant,
restriction, condition or provision 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 an Event of Default or may limit the remedies
available to the Trustee upon such an Event of Default or may limit the right
of the Holders of a majority in aggregate principal amount of the Securities of
such series to waive such an Event of Default; or

 

(f)  to make any change to any
provision of this Indenture that does not adversely affect the rights or
interests of any Holder of Securities; or

 

(g)  to provide for the issuance of
additional Securities in accordance with the provisions set forth in this
Indenture on the date of this Indenture; or

 

(h)  to add any additional Defaults
or Events of Default in respect of all or any series of Securities; or

 

(i)  to add to, change or eliminate
any of the provisions of this Indenture to such extent as shall be necessary to
permit or facilitate the issuance of Securities in bearer form, registrable or
not registrable as to principal, and with or without interest coupons; or

 

(j)  to change or eliminate any of
the provisions of this Indenture; provided that
any such change or elimination shall become effective only when there is no
Security Outstanding of any series created prior to the execution of such
supplemental indenture that is entitled to the benefit of such provision; or

 

(k)  to establish the form or terms
of Securities of any series as permitted by Section 2.1 and Section 3.1,
including to reopen any series of any Securities as permitted under Section
3.1; or

 

(l)  to evidence and provide for
the acceptance of appointment hereunder by a successor Trustee with respect to
the Securities of one or more series and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, pursuant
to the requirements of Section 6.11(b); or

 

(m)  to conform the text of this
Indenture (and/or any supplemental indenture) or any debt securities issued
thereunder to any provision of a description of such debt securities appearing
in a prospectus or prospectus supplement or an offering memorandum or offering
circular to the extent that such provision was intended to be a verbatim
recreation of a provision of the indenture (and/or any supplemental indenture)
or any debt securities issued thereunder; or

 

(n)  to modify, eliminate or add to
the provisions of this Indenture to such extent as shall be necessary to effect
the qualification of this Indenture under the Trust Indenture Act or under 

 

49

 

any similar federal statute subsequently enacted, and to add to this
Indenture such other provisions as may be expressly required under the Trust
Indenture Act.

 

After an
amendment under this Section 9.1 becomes effective, the Company shall mail to
Holders a notice briefly describing such amendment. The failure to give such
notice to Holders, or any defect therein, shall not impair or affect the
validity of an amendment under this Section 9.1.

 

Upon the
request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or 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 that may be therein contained and to accept the conveyance,
transfer, assignment, mortgage, charge or pledge of any property thereunder,
but the Trustee shall not be obligated to enter into any such supplemental
indenture that affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise.

 

Section 9.2.            With
Consent of Holders.

 

The Company and the Trustee
may amend or supplement this Indenture and the Securities with the consent of
the Holders of a majority in aggregate principal amount of the Outstanding
Securities of each series of Securities affected by such amendment or
supplemental indenture, with each such series voting as a separate class
(including, without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for Securities) and, subject to Section
5.8 and Section 5.13 hereof, any existing Default or Event of Default or
compliance with any provision of this Indenture or the Securities may be waived
with respect to each series of Securities with the consent of the Holders of a
majority in principal amount of the Outstanding Securities of such series
voting as a separate class (including consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Securities).

 

Upon the request of the
Company accompanied by a resolution of its Board of Directors authorizing the
execution of any such amended or supplemental indenture, and upon the filing
with the Trustee of evidence satisfactory to the Trustee of the consent of the
Holders of Securities as aforesaid, and upon receipt by the Trustee of the
documents described in Section 6.3 hereof, the Trustee will join with the
Company in the execution of such amended or supplemental indenture unless such
amended or supplemental indenture directly affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but will not be obligated to, enter into such
amended or supplemental Indenture.

 

It is not be necessary for
the consent of the Holders of Securities under this Section 9.2 to approve the
particular form of any proposed amendment or waiver, but it is sufficient if
such consent approves the substance of the proposed amendment or waiver.

 

After an amendment,
supplement or waiver under this Section 9.2 becomes effective, the Company will
mail to the Holders of Securities affected thereby a notice briefly describing
the amendment, supplement or waiver.  Any
failure of the Company to mail such notice, or any defect therein, will not,
however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver. 
Subject to Section 5.8 and Section 5.13 hereof, the application of or
compliance with, either generally or in any particular instance, of any
provision of this Indenture or the Securities may be waived as to each series
of Securities by the Holders of a majority in aggregate principal amount of the
Outstanding Securities of such series. 
However, without the consent of each Holder affected, an amendment or
waiver under this Section 9.2 may not (with respect to any Securities held by a
non-consenting Holder):

 

50

 

(a)   change
the Stated Maturity of the principal of, or any installment of principal of or
interest on, any Security, or reduce the principal amount thereof or the rate
of interest thereon or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue Discount Security that
would be due and payable upon a declaration of acceleration of the Maturity
thereof pursuant to Section 5.2, or change any Place of Payment where, or
the coin or currency in which, any Security or any premium or the interest
thereon is payable, or impair the right to institute suit for the enforcement
of any such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date), or

 

(b)   reduce
the percentage in principal amount of the Outstanding Securities of any series,
the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver (of compliance with
certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or

 

(c)   modify
any of the provisions of this Section 9.2, Section 5.8, Section 5.13
or Section 10.6, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Outstanding Security affected thereby, provided, however, that
this clause (c) shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the Trustee” and concomitant changes
in this Section, or the deletion of this proviso, in accordance with the
requirements of Section 6.11(b) and Section 9.1(h); or

 

(d)   waive
a redemption payment with respect to any Security; provided, however, that any purchase or repurchase of Securities
shall not be deemed a redemption of the Securities; or

 

(e)   make
any change in the foregoing amendment and waiver provisions.

 

A supplemental indenture that changes or eliminates
any covenant or other provision of this Indenture that has expressly been
included solely for the benefit of one or more particular series of Securities,
or that modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the
rights under this Indenture of the Holders of Securities of any other series.

 

It shall not be necessary for any Act of Holders under
this Section 9.2 to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

 

Section 9.3.            Execution
of Supplemental Indentures.

 

In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 6.1) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture.  The Trustee may, but shall not be obligated
to, enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

 

Section 9.4.            Effect of
Supplemental Indentures.

 

Upon the execution of any supplemental indenture under
this Article Nine, this Indenture shall be modified in accordance
therewith, and such supplemental indenture shall form a part of this Indenture
for 

 

51

 

all purposes; and every
Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

 

Section 9.5.            Conformity with
Trust Indenture Act.

 

Every supplemental indenture executed pursuant to this
Article Nine shall conform to the requirements of the Trust Indenture Act
as then in effect.

 

Section 9.6.            Reference in
Securities to Supplemental Indentures.

 

Securities of any series authenticated and delivered
after the execution of any supplemental indenture pursuant to this Article Nine
may, and shall if required by the Trustee, bear a notation in form approved by
the Trustee as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new
Securities of any series so modified as to conform, in the opinion of the
Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in
exchange for Outstanding Securities of such series.

 

ARTICLE TEN

COVENANTS

 

Section 10.1.          Payment of Principal,
Premium and Interest.

 

The Company covenants and agrees for the benefit of
each series of Securities that it will duly and punctually pay the principal of
and any premium and interest on the Securities of that series in accordance
with the terms of the Securities and this Indenture.

 

Section 10.2.          Maintenance of Office
or Agency.

 

The Company will maintain in the Borough of Manhattan,
The City of New York, an office or agency (which may be an office of the
Trustee or Registrar or agent of the Trustee or Registrar) where Securities of
that series may be presented or surrendered for payment, where Securities of
that series may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company in respect of the Securities
of that series and this Indenture may be served.  The Company will give prompt written notice to
the Trustee of the location, and any change in the location, of such office or
agency.  If at any time the Company shall
fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the Trustee.

 

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

 

Except as otherwise specified with respect to a series
of Securities as contemplated by Section 3.1, the Company hereby initially
designates the office of the Trustee located at 100 Wall Street, New York, New
York 10005, as the Company’s office or agency for each such purpose for each
series of Securities.

 

52

 

Section 10.3.          Money for Securities
Payments to Be Held in Trust.

 

If the Company shall at any time act as its own Paying
Agent, with respect to any series of Securities, it will, on or before each due
date of the principal of and any premium or interest on any of the Securities
of that series, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal and any premium and
interest so becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act.

 

Whenever the Company shall have one or more Paying
Agents for any series of Securities, it will, prior to each due date of the
principal of and any premium or interest on any Securities of that series,
deposit with a Paying Agent a sum sufficient to pay the principal and any
premium or interest so becoming due, such sum to be held in trust for the
benefit of the Persons entitled to such principal, premium 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.  For purposes of this Section 10.3, should
a due date for principal of and any premium or interest on, or sinking fund
payment with respect to any series of Securities not be on a Business Day, such
payment shall be due on the next Business Day without any interest for the
period from the due date until such Business Day.

 

The Company will cause each Paying Agent for any
series of Securities other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee,
subject to the provisions of this Section, that such Paying Agent will:

 

(a)   hold
all sums held by it for the payment of the principal of and any premium or
interest on Securities of that series 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;

 

(b)   give
the Trustee notice of any Default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment of principal and any
premium or interest on the Securities of that series; and

 

(c)   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.

 

Subject to any applicable escheat or abandoned
property laws, 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 and any
premium or interest on any Security of any series and remaining unclaimed for
one year after such principal and any premium or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by
the Company) shall be discharged from such trust; and the Holder of such
Security shall thereafter, as an unsecured general creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or 

 

53

 

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 balance of such money then remaining will be repaid
to the Company.

 

Section 10.4.          Existence.

 

Subject to Article Eight, the Company will do or
cause to be done all things necessary to preserve and keep in full force and
effect its existence, rights (charter and statutory) and franchises; provided, however, that
the Company shall not be required to preserve any such right or franchise if
the Company shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company.

 

Section 10.5.          Statement by Officers
as to Default.

 

Annually, within 150 days after the close of each
fiscal year beginning with the first fiscal year during which one or more
series of Securities are Outstanding, the Company will deliver to the Trustee a
brief certificate (which need not include the statements set forth in Section 1.3)
from the principal executive officer, principal financial officer or principal
accounting officer of the Company as to his or her knowledge of the Company’s
compliance (without regard to any period of grace or requirement of notice
provided herein) with all conditions and covenants under the Indenture and, if
the Company shall be in Default, specifying all such Defaults and the nature
and status thereof of which such officer has knowledge.

 

Section 10.6.          Additional Amounts.

 

If the Securities of a series provide for the payment
of additional amounts (as provided in Section 3.1(o)), at least 10 days
prior to the first Interest Payment Date with respect to that series of
Securities and at least 10 days prior to each date of payment of principal of,
premium, if any, or interest on the Securities of that series if there has been
a change with respect to the matters set forth in the below-mentioned Officer’s
Certificate, the Company shall furnish to the Trustee and the principal Paying
Agent, if other than the Trustee, an Officer’s Certificate instructing the
Trustee and such Paying Agent whether such payment of principal of, premium, if
any, or interest on the Securities of that series shall be made to holders of
the Securities of that series without withholding or deduction for or on
account of any tax, assessment or other governmental charge described in the
Securities of that series.  If any such
withholding or deduction shall be required, then such Officer’s Certificate
shall specify by country the amount, if any, required to be withheld or
deducted on such payments to such holders and shall certify the fact that
additional amounts will be payable and the amounts so payable to each holder,
and the Company shall pay to the Trustee or such Paying Agent the additional
amounts required to be paid by this Section. 
The Company covenants to indemnify the Trustee and any Paying Agent for,
and to hold them harmless against, any loss, liability or expense reasonably
incurred without negligence or bad faith on their part arising out of or in
connection with actions taken or omitted by any of them in reliance on any
Officer’s Certificate furnished pursuant to this Section 10.6.

 

Whenever in this Indenture there is mentioned, in any
context, the payment of the principal of or any premium, interest or any other
amounts on, or in respect of, any Securities of any series, such mention shall
be deemed to include mention of the payment of additional amounts provided by
the terms of such series established hereby or pursuant hereto to the extent
that, in such context, additional amounts are, were or would be payable in
respect thereof pursuant to such terms, and express mention of the payment 

 

54

 

of additional amounts (if applicable) in any provision
hereof shall not be construed as excluding the payment of additional amounts in
those provisions hereof where such express mention is not made.

 

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

 

Section 11.1.          Applicability of
Article.

 

Securities of any series which are redeemable before
their Stated Maturity shall be redeemable in accordance with their terms and
(except as otherwise specified as contemplated by Section 3.1 for
Securities of any series) in accordance with this Article Eleven.

 

Section 11.2.          Election to Redeem;
Notice to Trustee.

 

The election of the Company to redeem any Securities
shall be evidenced by a Board Resolution. 
In case of any redemption at the election of the Company of less than
all the Securities of any series, the Company shall, at least 15 days prior to
the last date for the giving of notice of such redemption (unless a shorter
notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be
redeemed and, if applicable, of the tenor of the Securities to be redeemed.  In the case of any redemption of Securities (a) prior
to the expiration of any restriction on such redemption provided in the terms
of such Securities or elsewhere in this Indenture or (b) pursuant to an
election of the Company that is subject to a condition specified in the terms
of the Securities of the series to be redeemed, the Company shall furnish the
Trustee with an Officer’s Certificate evidencing compliance with such
restriction or condition.

 

Section 11.3.          Selection by Trustee
of Securities to Be Redeemed.

 

If less than all the Securities of any series are to
be redeemed (unless all of the Securities of such series and of a specified
tenor are to be redeemed), the particular Securities to be redeemed shall be
selected not more than 45 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series not previously called for
redemption, by lot, pro rata or by another method as the Trustee shall deem
fair and appropriate, including any method required by the Depository with
respect to any Global Securities (and in such manner as is not prohibited by
applicable legal requirements) and which may provide for the selection for
redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series.

 

The Trustee shall promptly notify the Company in
writing of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be
redeemed.  If the Securities of any
series to be redeemed consist of Securities having different dates on which the
principal is payable or different rates of interest, or different methods by
which interest may be determined or have any other different tenor or terms,
then the Company may, by written notice to the Trustee, direct that the
Securities of such series to be redeemed shall be selected from among the
groups of such Securities having specified tenor or terms and the Trustee shall
thereafter select the particular Securities to be redeemed in the manner set
forth in the preceding paragraph from among the group of such Securities so
specified.

 

For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Securities redeemed or to be redeemed only in
part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

 

55

 

Section 11.4.          Notice of Redemption.

 

Notice of redemption shall be given by first-class
mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to
the Redemption Date, to each Holder of Securities to be redeemed, at his
address appearing in the Security Register.

 

All notices of redemption shall state:

 

(a)   the
Redemption Date,

 

(b)   the
Redemption Price, or if not then ascertainable, the manner of calculation
thereof,

 

(c)   if
less than all the Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amounts)
of the particular Securities to be redeemed,

 

(d)   that
on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon
will cease to accrue on and after said date,

 

(e)   the
place or places where such Securities are to be surrendered for payment of the
Redemption Price, and

 

(f)    that
the redemption is for a sinking fund, if such is the case.

 

Notice of redemption of Securities to be redeemed at the election of
the Company shall be given by the Company or, at the Company’s request, by the
Trustee in the name and at the expense of the Company.

 

Section 11.5.          Deposit of Redemption
Price.

 

Prior to any Redemption Date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section 10.3)
an amount of money sufficient to pay the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date) accrued interest on, all
the Securities which are to be redeemed on that date.

 

Section 11.6.          Securities Payable on
Redemption Date.

 

Notice of redemption having been given as aforesaid,
the Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified, and from and after such date
(unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest.  Upon surrender of any such Security for
redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest to the
Redemption Date; provided, however,
that unless otherwise specified with respect to Securities of any series as
contemplated in Section 3.1, installments of interest whose Stated
Maturity is on or prior to the Redemption Date shall be payable to the Holders
of such Securities, or one or more Predecessor Securities, registered as such
at the close of business on the relevant record dates according to their terms
and the provisions of Section 3.7.

 

56

 

If any Security called for redemption shall not be so
paid upon surrender thereof for redemption, the principal (and premium, if any)
shall, until paid, bear interest from the Redemption Date at the rate
prescribed therefor in the Security.

 

Section 11.7.          Securities Redeemed
in Part.

 

Any Security which is to be redeemed only in part
shall be surrendered at a Place of Payment therefor (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by,
the Holder thereof or his attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of
such Security without service charge, a new Security or Securities of the same
series and tenor, of any authorized denomination as requested by such Holder,
in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered.

 

ARTICLE TWELVE

SINKING FUNDS

 

Section 12.1.          Applicability of
Article.

 

The provisions of this Article Twelve shall be
applicable to any sinking fund for the retirement of Securities of a series
except as otherwise specified as contemplated by Section 3.1 for
Securities of such series.

 

The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series is herein referred to as
a “mandatory sinking fund payment,” and any payment in excess of such minimum
amount provided for by the terms of Securities of any series is herein referred
to as an “optional sinking fund payment.” If provided for by the terms of
Securities of any series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 12.2.  Each sinking fund payment shall be applied to
the redemption of Securities of any series as provided for by the terms of
Securities of such series.

 

Section 12.2.          Satisfaction of
Sinking Fund Payments with Securities.

 

The Company (a) may deliver Outstanding
Securities of a series (other than any previously called for redemption) and (b) may
apply as a credit Securities of a series which have been redeemed either at the
election of the Company pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms
of such Securities, in each case in satisfaction of all or any part of any
sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such Securities as provided for by the terms
of such series; provided that such Securities
have not been previously so credited.  Such
Securities shall be received and credited for such purpose by the Trustee at
the Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.

 

Section 12.3.          Redemption of
Securities for Sinking Fund.

 

Not less than 45 days prior to each sinking fund
payment date for any series of Securities (unless a shorter period shall be
satisfactory to the Trustee), the Company will deliver to the Trustee an
Officer’s Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion

 

57

 

thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 12.2
and stating the basis for such credit and that such Securities have not been
previously so credited, and will also deliver to the Trustee any Securities to
be so delivered.  Not less than 30 days
before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 11.3 and cause notice of the redemption thereof to be
given in the name of and at the expense of the Company in the manner provided
in Section 11.4.  Such notice having
been duly given, the redemption of such Securities shall be made upon the terms
and in the manner stated in Section 11.6 and Section 11.7.

 

ARTICLE THIRTEEN

DEFEASANCE

 

Section 13.1.          Option to Effect
Legal Defeasance or Covenant Defeasance.

 

The Company may, at the option of its Board of
Directors evidenced by a resolution set forth in an Officer’s Certificate, and
at any time, elect to have either Section 13.2 or Section 13.3 hereof
be applied to all outstanding Securities upon compliance with the conditions
set forth below in this Article Thirteen.

 

Section 13.2.          Legal Defeasance and
Discharge.

 

Upon the Company’s exercise under Section 13.1 hereof
of the option applicable to this Section 13.2, the Company will, subject
to the satisfaction of the conditions set forth in Section 13.4 hereof, be
deemed to have been discharged from their obligations with respect to all
outstanding Securities on the date the conditions set forth below are satisfied
(hereinafter, “Legal Defeasance”).  For
this purpose, Legal Defeasance means that the Company will be deemed to have
paid and discharged the entire Debt represented by the outstanding Securities,
which will thereafter be deemed to be “outstanding” only for the purposes of Section 13.5
hereof and the other sections of this Indenture referred to in clauses (a) and
(b) below, and to have satisfied all their other obligations under such
Securities and this Indenture (and the Trustee, on demand of and at the expense
of the Company, shall execute proper instruments acknowledging the same),
except for the following provisions which will survive until otherwise
terminated or discharged hereunder:

 

(a)   the
rights of Holders of Outstanding Securities to receive payments in respect of
the principal of, or interest or premium, if any, on such Securities when such
payments are due from the trust referred to in Section 13.4 hereof;

 

(b)   the
Company’s obligations with respect to such Securities under Section 3.4, Section 3.5,
Section 3.6, Section 10.2 and Section 10.3 hereof;

 

(c)   the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s obligations in connection therewith; and

 

(d)   this
Article Thirteen.

 

Subject to compliance with this Article Thirteen,
the Company may exercise its option under this Section 13.2
notwithstanding the prior exercise of its option under Section 13.3
hereof.

 

58

 

Section 13.3.          Covenant
Defeasance.

 

Upon the Company’s exercise under Section 13.1 hereof
of the option applicable to this Section 13.3, the Company will, subject
to the satisfaction of the conditions set forth in Section 13.4 hereof, be
released from each of their obligations under the covenants contained in Section 7.4,
Section 8.1 and Section 10.4 hereof as well as any Additional
Defeasible Provisions (such release and termination hereinafter referred to as “Covenant Defeasance”), and the Securities will thereafter be
deemed not “outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but will continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Securities will
not be deemed outstanding for accounting purposes).  For this purpose, Covenant Defeasance means
that, with respect to the outstanding Securities, the Company may omit to
comply with and will have no liability in respect of any term, condition or
limitation set forth in any such covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or by reason of
any reference in any such covenant to any other provision herein or in any
other document and such omission to comply will not constitute a Default or an
Event of Default under Section 5.1 hereof, but, except as specified above,
the remainder of this Indenture and such Securities will be unaffected
thereby.  In addition, upon the Company’s
exercise under Section 13.1 hereof of the option applicable to this Section 13.3
hereof, subject to the satisfaction of the conditions set forth in Section 13.4
hereof, Section 5.1(c) and Section 5.1(e) hereof and will
not constitute Events of Default.

 

Section 13.4.          Conditions
to Legal or Covenant Defeasance.

 

In order to exercise either Legal Defeasance or
Covenant Defeasance under either Section 13.2 or Section 13.3 hereof:

 

(a)   the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Securities, cash in U.S. dollars, non-callable U.S.
Government Obligations, or a combination of cash in U.S. dollars and
non-callable U.S. Government Obligations, in such amounts as will be
sufficient, in the opinion of a nationally recognized investment bank,
appraisal firm, or firm of independent public accountants to pay the principal
of, or interest and premium, if any, on the Outstanding Securities on the
stated date for payment thereof or on the applicable redemption date, as the
case may be, and the Company must specify whether the Securities are being
defeased to such stated date for payment or to a particular redemption date;

 

(b)   in
the case of an election under Section 13.2 hereof, the Company must
deliver to the Trustee an Opinion of Counsel confirming that:

 

(i)            the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling; or

 

(ii)           since
the Issue Date, there has been a change in the applicable federal income tax
law,

 

in either case to the effect that, and based thereon
such Opinion of Counsel will confirm that, the Holders of the Outstanding
Securities will not recognize income, gain or loss for federal income tax
purposes as a result of such Legal Defeasance and will be subject to federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case if such Legal Defeasance had not occurred;

 

59

 

(c)   in
the case of an election under Section 13.3 hereof, the Company must
deliver to the Trustee an Opinion of Counsel confirming that the Holders of the
Outstanding Securities will not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(d)   no
Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing
of funds to be applied to such deposit);

 

(e)   the
deposit will not result in a breach or violation of, or constitute a default
under, any other instrument to which the Company is a party or by which the
Company is bound;

 

(f)    such
Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or
instrument (other than this Indenture) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

 

(g)   the
Company must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders
of Securities over the other creditors of the Company with the intent of
defeating, hindering, delaying or defrauding any other creditors of the Company
or others;

 

(h)   the
Company must deliver to the Trustee an Officer’s Certificate, stating that all
conditions precedent set forth in clauses (a) through (g) of this Section 13.4
have been complied with; and

 

(i)    the
Company must deliver to the Trustee an Opinion of Counsel (which Opinion of
Counsel may be subject to customary assumptions, qualifications and
exclusions), stating that all conditions precedent set forth in clauses (b), (c) and
(e) of this Section 13.4 have been complied with; provided that the Opinion of Counsel with
respect to clause (e) of this Section 13.4 may be to the knowledge of
such counsel.

 

Section 13.5.          Deposited
Money and U.S. Government Obligations to be Held in Trust, Other Miscellaneous
Provisions.

 

Subject to Section 13.6 hereof, all money and
non-callable U.S. Government Obligation (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 13.5, the “Trustee”)
pursuant to Section 13.4 hereof in respect of the Outstanding Securities
will be held in trust and applied by the Trustee, in accordance with the
provisions of such Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as Paying
Agent) as the Trustee may determine, to the Holders of such Securities of all
sums due and to become due thereon in respect of principal, premium, if any,
and interest, but such money need not be segregated from other funds except to
the extent required by law.

 

The Company will pay and indemnify the Trustee against
any tax, fee or other charge imposed on or assessed against the cash or
non-callable U.S. Government Obligations deposited pursuant to Section 13.4
hereof or the principal and interest received in respect thereof other than any
such tax, fee or other charge which by law is for the account of the Holders of
the Outstanding Securities.

 

60

 

Notwithstanding anything in this Article Thirteen
to the contrary, the Trustee will deliver or pay to the Company from time to
time upon the request of the Company any money or non-callable U.S. Government
Obligations held by it as provided in Section 13.4 hereof which, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee (which
may be the opinion delivered under Section 13.4(a) hereof), are in
excess of the amount thereof that would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 13.6.          Repayment.

 

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, premium, if any, or interest on any Security and remaining unclaimed for
two years after such principal, premium, if any, or interest has become due and
payable shall be paid to the Company on its request or (if then held by the
Company) will be discharged from such trust; and the Holder of such Security
will thereafter be permitted to 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, will
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 the New York
Times and The Wall Street Journal (national edition), notice that such money
remains unclaimed and that, after a date specified therein, which will not be
less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

 

Section 13.7.          Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any
United States dollars or non-callable U.S. Government Obligations in accordance
with Section 13.2 or Section 13.3 hereof, as the case may be, 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 will be revived and
reinstated as though no deposit had occurred pursuant to Section 13.2 or Section 13.3
hereof until such time as the Trustee or Paying Agent is permitted to apply all
such money in accordance with Section 13.2 or Section 13.3 hereof, as
the case may be; provided, however,
that, if the Company makes any payment of principal of, premium, if any, or
interest on any Note following the reinstatement of its obligations, the
Company will be subrogated to the rights of the Holders of such Securities to
receive such payment from the money held by the Trustee or Paying Agent.

 

* * *

 

61

 

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, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.

 

	
   

  	
  GLOBALSTAR, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

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