Document:

Exhibit 4.2

 

 

TYCO INTERNATIONAL FINANCE S.A.,

as Issuer

 

AND

 

TYCO INTERNATIONAL LTD.,

as Guarantor

 

AND

 

DEUTSCHE BANK TRUST

COMPANY AMERICAS,

as Trustee

 

 

INDENTURE

 

Dated as of
[                     ],
2008

 

 

SUBORDINATED DEBT SECURITIES

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I.  DEFINITIONS

  	
   

  	
  1

  
	
  Section 1.01

  	
  Definitions
  of Terms

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II.  ISSUE,
  DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

  	
   

  	
  8

  
	
  Section 2.01

  	
  Designation
  and Terms of Securities

  	
   

  	
  8

  
	
  Section 2.02

  	
  Form of
  Securities and Trustee’s Certificate

  	
   

  	
  11

  
	
  Section 2.03

  	
  Denominations;
  Provisions for Payment

  	
   

  	
  13

  
	
  Section 2.04

  	
  Execution
  and Authentications

  	
   

  	
  15

  
	
  Section 2.05

  	
  Transfer and
  Exchange

  	
   

  	
  16

  
	
  Section 2.06

  	
  Temporary
  Securities

  	
   

  	
  23

  
	
  Section 2.07

  	
  Mutilated,
  Destroyed, Lost or Stolen Securities

  	
   

  	
  24

  
	
  Section 2.08

  	
  Cancellation

  	
   

  	
  24

  
	
  Section 2.09

  	
  Third Party
  Beneficiaries

  	
   

  	
  25

  
	
  Section 2.10

  	
  Authenticating
  Agent

  	
   

  	
  25

  
	
  Section 2.11

  	
  Global
  Securities

  	
   

  	
  25

  
	
  Section 2.12

  	
  CUSIP
  Numbers

  	
   

  	
  26

  
	
  Section 2.13

  	
  Securities
  Denominated in Foreign Currencies

  	
   

  	
  26

  
	
  Section 2.14

  	
  Wire
  Transfers

  	
   

  	
  26

  
	
  Section 2.15

  	
  Designated
  Currency

  	
   

  	
  27

  
	
  Section 2.16

  	
  Form of
  Guarantee

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III.  REDEMPTION OF SECURITIES AND SINKING FUND
  PROVISIONS

  	
   

  	
  28

  
	
  Section 3.01

  	
  Redemption

  	
   

  	
  28

  
	
  Section 3.02

  	
  Notice of
  Redemption

  	
   

  	
  28

  
	
  Section 3.03

  	
  Payment Upon
  Redemption

  	
   

  	
  29

  
	
  Section 3.04

  	
  Sinking Fund

  	
   

  	
  30

  
	
  Section 3.05

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
   

  	
  30

  
	
  Section 3.06

  	
  Redemption
  of Securities for Sinking Fund

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV.  CERTAIN COVENANTS

  	
   

  	
  31

  
	
  Section 4.01

  	
  Payment of
  Principal, Premium and Interest

  	
   

  	
  31

  
	
  Section 4.02

  	
  Maintenance
  of Office or Agency

  	
   

  	
  31

  
	
  Section 4.03

  	
  Paying
  Agents

  	
   

  	
  31

  
	
  Section 4.04

  	
  Statement by
  Officers as to Default

  	
   

  	
  32

  
	
  Section 4.05

  	
  Appointment
  to Fill Vacancy in Office of Trustee

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V.  SECURITYHOLDERS’ LISTS AND REPORTS BY THE
  COMPANY AND THE TRUSTEE

  	
   

  	
  33

  
	
  Section 5.01

  	
  Company to
  Furnish Trustee Names and Addresses of Securityholders

  	
   

  	
  33

  
	
  Section 5.02

  	
  Preservation
  of Information; Communications with Securityholders

  	
   

  	
  33

  
	
  Section 5.03

  	
  Reports by
  the Company

  	
   

  	
  33

  

 

i

 

	
  Section 5.04

  	
  Reports by
  the Trustee

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI.  REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
  ON EVENT OF DEFAULT

  	
   

  	
  34

  
	
  Section 6.01

  	
  Events of
  Default

  	
   

  	
  34

  
	
  Section 6.02

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
   

  	
  36

  
	
  Section 6.03

  	
  Application
  of Funds Collected

  	
   

  	
  37

  
	
  Section 6.04

  	
  Limitation
  on Suits

  	
   

  	
  38

  
	
  Section 6.05

  	
  Rights and
  Remedies Cumulative; Delay or Omission not Waiver

  	
   

  	
  38

  
	
  Section 6.06

  	
  Control by
  Securityholders

  	
   

  	
  39

  
	
  Section 6.07

  	
  Undertaking
  to Pay Costs

  	
   

  	
  40

  
	
  Section 6.08

  	
  Waiver Of
  Usury, Stay Or Extension Laws

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII.  CONCERNING THE TRUSTEE

  	
   

  	
  40

  
	
  Section 7.01

  	
  Certain
  Duties and Responsibilities of Trustee

  	
   

  	
  40

  
	
  Section 7.02

  	
  Certain
  Rights of Trustee

  	
   

  	
  42

  
	
  Section 7.03

  	
  Trustee not
  Responsible for Recitals or Issuance of Securities

  	
   

  	
  43

  
	
  Section 7.04

  	
  May Hold
  Securities

  	
   

  	
  43

  
	
  Section 7.05

  	
  Funds Held
  in Trust

  	
   

  	
  43

  
	
  Section 7.06

  	
  Compensation
  and Reimbursement

  	
   

  	
  43

  
	
  Section 7.07

  	
  Reliance on
  Officer’s Certificate

  	
   

  	
  44

  
	
  Section 7.08

  	
  Disqualification;
  Conflicting Interests

  	
   

  	
  44

  
	
  Section 7.09

  	
  Corporate
  Trustee Required; Eligibility

  	
   

  	
  44

  
	
  Section 7.10

  	
  Resignation
  and Removal; Appointment of Successor

  	
   

  	
  45

  
	
  Section 7.11

  	
  Acceptance
  of Appointment By Successor

  	
   

  	
  46

  
	
  Section 7.12

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
   

  	
  47

  
	
  Section 7.13

  	
  Preferential
  Collection of Claims Against the Company

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII.  CONCERNING THE SECURITYHOLDERS

  	
   

  	
  48

  
	
  Section 8.01

  	
  Evidence of
  Action by Securityholders

  	
   

  	
  48

  
	
  Section 8.02

  	
  Proof of
  Execution by Securityholders

  	
   

  	
  48

  
	
  Section 8.03

  	
  Who
  May be Deemed Owners

  	
   

  	
  49

  
	
  Section 8.04

  	
  Certain
  Securities Owned by Company Disregarded

  	
   

  	
  49

  
	
  Section 8.05

  	
  Actions
  Binding on Future Securityholders

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX.  SUPPLEMENTAL INDENTURES

  	
   

  	
  50

  
	
  Section 9.01

  	
  Supplemental
  Indentures Without the Consent of Securityholders

  	
   

  	
  50

  
	
  Section 9.02

  	
  Supplemental
  Indentures with Consent of Securityholders

  	
   

  	
  51

  
	
  Section 9.03

  	
  Effect of
  Supplemental Indentures

  	
   

  	
  52

  
	
  Section 9.04

  	
  Securities
  Affected by Supplemental Indentures

  	
   

  	
  52

  
	
  Section 9.05

  	
  Execution of
  Supplemental Indentures

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X.  SUCCESSOR

  	
   

  	
  53

  
	
  Section 10.01

  	
  Consolidation,
  Merger and Sale of Assets

  	
   

  	
  53

  
	
  Section 10.02

  	
  Successor
  Person Substituted

  	
   

  	
  54

  

 

ii

 

	
  ARTICLE XI.  SATISFACTION AND DISCHARGE

  	
   

  	
  54

  
	
  Section 11.01

  	
  Applicability
  of Article

  	
   

  	
  54

  
	
  Section 11.02

  	
  Satisfaction
  and Discharge of Indenture

  	
   

  	
  54

  
	
  Section 11.03

  	
  Defeasance
  and Discharge of Obligations; Covenant Defeasance

  	
   

  	
  55

  
	
  Section 11.04

  	
  Deposited
  Funds to be Held in Trust

  	
   

  	
  57

  
	
  Section 11.05

  	
  Payment of
  Funds Held by Paying Agents

  	
   

  	
  57

  
	
  Section 11.06

  	
  Repayment to
  Parent or the Company

  	
   

  	
  57

  
	
  Section 11.07

  	
  Reinstatement

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII.  IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
  OFFICERS AND DIRECTORS

  	
   

  	
  58

  
	
  Section 12.01

  	
  No Recourse

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII.  MISCELLANEOUS PROVISIONS

  	
   

  	
  59

  
	
  Section 13.01

  	
  Effect on
  Successors and Assigns

  	
   

  	
  59

  
	
  Section 13.02

  	
  Actions by
  Successor

  	
   

  	
  59

  
	
  Section 13.03

  	
  Notices

  	
   

  	
  59

  
	
  Section 13.04

  	
  Governing
  Law

  	
   

  	
  61

  
	
  Section 13.05

  	
  Treatment of
  Securities as Debt

  	
   

  	
  61

  
	
  Section 13.06

  	
  Compliance
  Certificates and Opinions

  	
   

  	
  61

  
	
  Section 13.07

  	
  Payments on
  Business Days

  	
   

  	
  62

  
	
  Section 13.08

  	
  Conflict
  with Trust Indenture Act

  	
   

  	
  62

  
	
  Section 13.09

  	
  Counterparts

  	
   

  	
  62

  
	
  Section 13.10

  	
  Separability

  	
   

  	
  62

  
	
  Section 13.11

  	
  No Adverse
  Interpretation of Other Agreements

  	
   

  	
  62

  
	
  Section 13.12

  	
  Table of
  Contents, Headings, Etc.

  	
   

  	
  62

  
	
  Section 13.13

  	
  Consent to
  Jurisdiction and Service of Process

  	
   

  	
  62

  
	
  Section 13.14

  	
  Waiver of
  Jury Trial

  	
   

  	
  63

  
	
  Section 13.15

  	
  USA Patriot
  Act

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV.  ADDITIONAL AMOUNTS; CERTAIN TAX PROVISIONS

  	
   

  	
  64

  
	
  Section 14.01

  	
  Redemption
  Upon Changes in Withholding Taxes

  	
   

  	
  64

  
	
  Section 14.02

  	
  Payment of
  Additional Amounts

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XV.  GUARANTEES

  	
   

  	
  68

  
	
  Section 15.01

  	
  Guarantee

  	
   

  	
  68

  
	
  Section 15.02

  	
  Execution
  and Delivery of Guarantee

  	
   

  	
  69

  
	
  Section 15.03

  	
  Release of
  Guarantee

  	
   

  	
  70

  
	
  Section 15.04

  	
  Subordination
  of Guarantee

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XVI.  SUBORDINATION OF SECURITIES

  	
   

  	
  70

  
	
  Section 16.01

  	
  Subordination
  Terms

  	
   

  	
  70

  

 

iii

 

Cross Reference Table*

 

	
  Section of 

  Trust Indenture Act 

  of 1939, as amended

  	
   

  	
  Section of 

  Indenture

  
	
  310(a)

  	
   

  	
  7.09

  
	
  310(b)

  	
   

  	
  7.08

  
	
   

  	
   

  	
  7.10

  
	
  310(c)

  	
   

  	
  Inapplicable

  
	
  311(a)

  	
   

  	
  7.13

  
	
  311(b)

  	
   

  	
  7.13

  
	
  311(c)

  	
   

  	
  Inapplicable

  
	
  312(a)

  	
   

  	
  5.01

  
	
   

  	
   

  	
  5.02(a)

  
	
  312(b)

  	
   

  	
  5.02(b)

  
	
  312(c)

  	
   

  	
  5.02(b)

  
	
  313(a)

  	
   

  	
  5.04(a)

  
	
  313(b)

  	
   

  	
  5.04(b)

  
	
  313(c)

  	
   

  	
  5.04(a)

  
	
   

  	
   

  	
  5.04(b)

  
	
  313(d)

  	
   

  	
  5.04(c)

  
	
  314(a)

  	
   

  	
  5.03

  
	
  314(b)

  	
   

  	
  Inapplicable

  
	
  314(c)

  	
   

  	
  13.06

  
	
  314(d)

  	
   

  	
  Inapplicable

  
	
  314(e)

  	
   

  	
  13.06

  
	
  314(f)

  	
   

  	
  Inapplicable

  
	
  315(a)

  	
   

  	
  7.01

  
	
  315(b)

  	
   

  	
  6.01(c)

  
	
  315(c)

  	
   

  	
  7.01(a)

  
	
  315(d)

  	
   

  	
  7.01(b)

  
	
  315(e)

  	
   

  	
  6.07

  
	
  316(a)

  	
   

  	
  6.06

  
	
   

  	
   

  	
  8.04

  
	
  316(b)

  	
   

  	
  6.04

  
	
  316(c)

  	
   

  	
  8.01

  
	
  317(a)

  	
   

  	
  6.02

  
	
  317(b)

  	
   

  	
  4.03

  
	
  318(a)

  	
   

  	
  13.08

  

 

*                             This Cross-Reference Table
does not constitute part of the Indenture and shall not have any bearing on the
interpretation of any of its terms or provisions.

 

iv

 

THIS
INDENTURE is dated as of
[                    ],
2008 among TYCO INTERNATIONAL FINANCE S.A., a Luxembourg company (the “Company”), TYCO INTERNATIONAL LTD., a
Bermuda company (“Parent”), and
DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation (the “Trustee”).

 

RECITALS

 

A.                                   This Indenture provides for the issuance of
unsecured subordinated debt securities (the “Securities”),
in an unlimited aggregate principal amount to be issued from time to time in
one or more series, to be authenticated by the certificate of the Trustee, and
for guarantees of the Securities.

 

B.                                     This Indenture is subject to the provisions
of the Trust Indenture Act (as defined below) that are deemed to be
incorporated into this Indenture and shall, to the extent applicable, be
governed by such provisions.

 

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

 

NOW,
THEREFORE, in consideration of the premises and the purchase of the Securities
by the holders thereof, it is mutually covenanted and agreed as follows for the
equal and ratable benefit of the holders of Securities:

 

ARTICLE I.

 

DEFINITIONS

 

Section 1.01                                Definitions
of Terms.

 

The terms defined in this Section 1.01 (except as in this
Indenture otherwise expressly provided or unless the context otherwise
requires) for all purposes of this Indenture and of any indenture supplemental
hereto shall have the respective meanings specified in this Section 1.01
and shall include the plural as well as the singular. All other terms used in
this Indenture that are defined in the Trust Indenture Act or that are by
reference in the Trust Indenture Act defined in the Securities Act of 1933, as
amended (the “Securities Act”)
(except as herein otherwise expressly provided or unless the context otherwise
requires), shall have the meanings assigned to such terms in the Trust
Indenture Act and in the Securities Act as in force at the date of the
execution of this instrument.  All accounting
terms used herein and not expressly defined shall have the meanings assigned to
such terms in accordance with generally accepted accounting principles, and the
term “generally accepted accounting principles” means such accounting
principles as are generally accepted in the United States at the time of any
computation.

 

“144A Global Security”,
with respect to any series of Securities, means one or more Global Securities
bearing the Private Placement Legend that will be issued in an aggregate amount
of denominations equal in total to the outstanding principal amount of the
Securities of such series sold in global form in reliance on Rule 144A.

 

 

“Additional Amounts” has
the meaning set forth in Section 14.02.

 

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

 

“Applicable Procedures”,
with respect to any transfer or exchange of or for beneficial interests in any
Global Security for a series of Securities, means the rules and procedures
of the Depositary, Euroclear and Clearstream that apply to such transfer or
exchange at the relevant time.

 

“Authenticating Agent”
means an authenticating agent with respect to all or any of the series of
Securities appointed with respect to all or any series of the Securities by the
Trustee pursuant to Section 2.10.

 

“Board of Directors” means
the Board of Directors of the Company or Parent, as applicable, or any duly
authorized committee of such Board of Directors.

 

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

 

“Business Day”, with
respect to any series of Securities, means any day other than Saturday, Sunday
or a day on which Federal or State banking institutions in the Borough of
Manhattan, The City of New York, or in the city where the office or agency for
payment on the Securities is maintained pursuant to Section 4.02, are
authorized or obligated by law, executive order or regulation to close.

 

“Capital Stock” of any
Person means any and all shares, interests, participations, rights in or other
equivalents (however designated) of such Person’s capital stock, other equity
interests whether now outstanding or issued after the date of this Indenture,
partnership interests (whether general or limited), any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person and
any rights (other than debt securities convertible into Capital Stock),
warrants or options exchangeable for or convertible into such Capital Stock.

 

“Clearstream” means
Clearstream Banking S.A., or its successors.

 

“Commission” means the
Securities and Exchange Commission.

 

“Company” means Tyco
International Finance S.A. until a successor entity shall have become such
pursuant to Article X, and thereafter “Company” shall mean such successor
entity.

 

2

 

“Corporate Trust Office”
means the office of the Trustee at which, at any particular time, its corporate
trust business shall be principally administered, which office at the date
hereof is located at 60 Wall Street, 27th Floor, New York, NY 10005.

 

“Currency” means Dollars
or Foreign Currency.

 

“Default” means any event,
act or condition that with notice or lapse of time, or both, would constitute
an Event of Default.

 

“Defaulted Interest” has the meaning set
forth in Section 2.03.

 

“Definitive Security”
means a certificated Security registered in the name of the Securityholder
thereof and issued in accordance with Section 2.05.

 

“Depositary”, with respect
to Securities of any series which the Company shall determine will be issued in
whole or in part as a Global Security, means The Depository Trust Company (“DTC”), New York, New York, another clearing
agency, or any successor registered as a clearing agency under the Exchange
Act, and any other applicable U.S. or foreign statute or regulation, which, in
each case, shall be designated by the Company pursuant to Section 2.01.

 

“Designated Currency” has
the meaning set forth in Section 2.15.

 

“Distribution Compliance Period”
means the restricted period as defined in Rule 903(b)(3) under the
Securities Act.

 

“Dollar” or “$” means such currency of the United States
as at the time of payment is legal tender for the payment of public and private
debts.

 

“Dollar Equivalent” means,
with respect to any monetary amount in a Foreign Currency, at any time for the
determination thereof, the amount of Dollars obtained by converting such
Foreign Currency involved in such computation into Dollars at the spot rate for
the purchase of Dollars with the applicable Foreign Currency as quoted by
JPMorgan Chase Bank, N.A. (unless another comparable financial institution is
designated by the Company) in New York, New York, at approximately 11:00 a.m.
(New York time) on the date two business days prior to such determination.

 

“Euroclear” means
Euroclear Bank S.A./N.V., or its successor, as operator of the Euroclear
System.

 

“Event of Default”, with
respect to Securities of a particular series, means any event specified in Section 6.01,
continued for the period of time, if any, therein designated.

 

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

 

“Foreign Currency” means a
currency, currency unit or composite currency, including the euro, issued by
the government of one or more countries other than the United States or by any
recognized confederation or association of such governments or a composite
currency the 

 

3

 

value of which is determined by reference to
the values of the currencies of any group of countries.

 

“Global Security”, with
respect to any series of Securities, means a Security executed by the Company
and delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instruction, all in accordance with this Indenture, which shall be registered
in the name of the Depositary or its nominee.

 

“Governmental Obligations”
means securities that are (i) direct obligations of the United States for
the payment of which its full faith and credit is pledged or (ii) 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 that, in
either case, are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act) as custodian with
respect to any such Governmental Obligation or a specific payment of principal
of or interest on any such Governmental Obligation held by such custodian for
the account of the holder of such depositary receipt; provided, however, that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the Governmental Obligation
or the specific payment of principal of or interest on the Governmental
Obligation evidenced by such depositary receipt.

 

“Guarantee” means the
unconditional  guarantee by Parent,
subordinated in right of payment to senior indebtedness of Parent to the extent
provided in Section 15.04, of the due and punctual payment of principal of
and interest on a series of Securities when and as the same shall become due
and payable, whether at the stated maturity, by acceleration, call for
redemption or otherwise in accordance with the terms of the Securities and this
Indenture.

 

“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.

 

“including” means including without
limitation.

 

“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 in accordance with the terms hereof.

 

“Indirect Participant”
means any entity that, with respect to DTC, clears through or maintains a
direct or indirect, custodial relationship with a Participant.

 

“Interest Payment Date,”
when used with respect to any installment of interest on a Security of a
particular series, means the date specified herein, in such Security or in a
Board Resolution or in an indenture supplemental hereto with respect to such
series as the fixed date on which an installment of interest with respect to
Securities of that series is due and payable.

 

“Officer” means any
managing director, the chairman or any vice chairman of the Board of Directors,
the chief executive officer, the president, the chief financial officer, any
vice 

 

4

 

president, the treasurer, any assistant
treasurer, the secretary or any assistant secretary of the Company or Parent,
as the case may be.

 

“Officer’s  Certificate” means a certificate, signed by
any managing director or by  the chairman
or any vice chairman of the Board of Directors, or the chief executive officer,
president, chief financial officer or vice president or  the secretary or any assistant secretary or
the treasurer or any assistant treasurer of the Company or Parent, as the case
may be, that is delivered to the Trustee in accordance with the terms hereof.
Each such certificate shall include the statements provided for in Section 13.06,
if and to the extent required by the provisions thereof.

 

“Opinion of Counsel” means
an opinion in writing of legal counsel, who may be an Officer or employee of or
counsel for Parent or the Company, that is delivered to the Trustee in
accordance with the terms hereof. Each such opinion shall include the
statements provided for in Section 13.06, if and to the extent required by
the provisions thereof.

 

“Original Issue Discount Security”
means a Security that 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 6.01.

 

“Outstanding”, when used
with reference to Securities of any series, subject to the provisions of Section 8.04,
means, as of any particular time, all Securities of such series authenticated
and delivered by the Trustee under this Indenture, except:

 

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

 

(b)                                 Securities,
or portions thereof, for the payment or redemption of which funds in the
necessary amount shall have been deposited in trust with the Trustee or with
any paying agent other than the Company, or, if the Company shall act as its
own paying agent, shall have been set aside, segregated and held in trust by
the Company for the Holders of such Securities, provided that if such
Securities, or portions thereof, are to be redeemed prior to the maturity
thereof, notice of such redemption shall have been given as herein provided, or
provision satisfactory to the Trustee shall have been made for giving such
notice; and

 

(c)                                  Securities
in substitution for which other Securities shall have been authenticated and
delivered, or which shall have been paid, pursuant to the terms of Section 2.07,
except with respect to any such Security as to which proof satisfactory to the
Trustee is presented that such Security is held by a person in whose hands such
Security is a legal, valid and binding obligation of the Company.

 

In determining whether the holders of the requisite principal amount of
Outstanding Securities of any series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a
declaration of acceleration of the maturity thereof pursuant to Section 6.01
and the principal amount of a Security 

 

5

 

denominated in one or more currencies that
shall be deemed to be Outstanding for such purposes shall be based on the
Dollar Equivalent, on the date of original issuance of such Security, of the
principal amount of such Security.

 

“Parent” means Tyco
International Ltd. until a successor entity shall have become such pursuant to Article X,
and thereafter “Parent” shall mean such successor entity.

 

“Participant”, with
respect to the Depositary, Euroclear or Clearstream, means a Person who has an
account with the Depositary, Euroclear or Clearstream, respectively (and, with
respect to DTC, shall include Euroclear and Clearstream).

 

“Periodic Offering” means
an offering of Securities of a series from time to time, during which any or
all of the specific terms of the Securities, including the rate or rates of
interest, if any, thereon, the maturity or maturities thereof and the
redemption provisions, if any, with respect thereto, are to be determined by
the Company or its agents upon the issuance of such Securities in accordance
with the terms of the relevant Supplemental Indenture.

 

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

 

“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.  For the purposes of this definition, any
Security authenticated and delivered under Section 2.07 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed or stolen Security.

 

“Private Placement Legend”
means the legend set forth in Section 2.02(b) to be placed on all
Restricted Securities issued under this Indenture or pursuant to a Board
Resolution or an indenture supplemental hereto with respect to a series of
Securities, except where specifically stated otherwise by the provisions of
this Indenture, such Board Resolution or such supplemental indenture.

 

“QIB” means a “qualified
institutional buyer” as defined in Rule 144A.

 

“Regulation S Global Security”
means, with respect to any series of Securities, a Regulation S Temporary
Global Security of such series, if required by Rule 903 of Regulation S,
or a Regulation S Permanent Global Security of such series, as the case may be.

 

“Regulation S Permanent Global
Security”, with respect to any series of Securities, means one or
more permanent Global Securities bearing the Private Placement Legend, that
will be issued in an aggregate amount of denominations equal in total to the
outstanding principal amount of the Securities of such series initially sold
or, if required by Rule 903 of Regulation S, of the Regulation S Temporary
Global Security of such series upon expiration of the Distribution Compliance
Period with respect to such series, as the case may be.

 

“Regulation S Temporary Global
Security”, with respect to any series of Securities, means one or
more temporary Global Securities, bearing the Private Placement Legend and the 

 

6

 

Regulation S Temporary Global Security
Legend, issued in an aggregate amount of denominations equal in total to the
outstanding principal amount of the Securities of such series initially sold,
if required by Rule 903 of Regulation S.

 

“Regulation S Temporary Global
Security Legend” means the legend set forth in Section 2.02(d),
which is required to be placed on all Regulation S Temporary Global Securities
issued under this Indenture.

 

“Regulation S” means
Regulation S promulgated under the Securities Act, as it may be amended from
time to time, and any successor provision thereto.

 

“Responsible Officer”
means any vice president, any trust officer, any assistant trust officer, any
assistant vice president, any assistant treasurer, or any other officer of the
Trustee customarily performing functions similar to those performed by the
Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of his knowledge of and familiarity
with the particular subject.

 

“Restricted Definitive Security”,
with respect to any series of Securities, means one or more Definitive
Securities of such series bearing the Private Placement Legend issued under
this Indenture.

 

“Restricted Global Security”,
with respect to any series of Securities, means one or more Global Securities
of such series bearing the Private Placement Legend, issued under this
Indenture.

 

“Restricted Security”,
with respect to any series of Securities, means a Security of such series,
unless or until it has been (i) effectively registered under the
Securities Act and disposed of in accordance with a registration statement with
respect to such series or (ii) distributed to the public pursuant to Rule 144
under the Securities Act or any similar provision then in force.

 

“Rule 144A” means Rule 144A
promulgated under the Securities Act, as it may be amended from time to time,
and any successor provision thereto.

 

“Securities” means the
securities authenticated and delivered under this Indenture.

 

“Securityholder,” “Holder,” “holder
of Securities,” “registered
holder,” or other similar term, means the Person or Persons in whose
name or names a particular Security shall be registered on the books of the
Company kept for that purpose in accordance with the terms of this Indenture.

 

“Security Register” has
the meaning set forth in Section 2.05(a).

 

“Security Registrar” has
the meaning set forth in Section 2.05(a).

 

“Stated Maturity”, with
respect to any Security, means the date specified in such security as the fixed
date on which the payment of principal of such security is due and payable,
including pursuant to any mandatory redemption provision, but excluding any
provision providing for the repurchase of such security at the option of the
holder thereof upon the 

 

7

 

happening of any contingency beyond the
control of the issuer unless such contingency has occurred.

 

“Subsidiary”, with respect
to any Person, means any other Person of which at least a majority of the
outstanding Voting Stock at the time is owned or controlled directly or
indirectly by such Person or by one or more Subsidiaries of such Person or by
such Person and one or more Subsidiaries of such Person.

 

“Taxes” has the meaning
set forth in Section 14.02.

 

“Taxing Jurisdiction” has
the meaning set forth in Section 14.01.

 

“Trustee” means Deutsche
Bank Trust Company Americas and, subject to the provisions of Article VII,
shall include its successors and assigns. The term “Trustee” as used with
respect to a particular series of the Securities shall mean the Trustee with
respect to that series.

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended, as in effect at the date of
execution of this instrument subject to the provisions of Sections 9.01, 9.02,
and 10.01.

 

“Unrestricted Definitive Security”,
with respect to any series of Securities, means one or more Definitive
Securities representing such series of Securities that do not bear and are not
required to bear the Private Placement Legend, issued under this Indenture.

 

“Unrestricted Global Security”,
with respect to any series of Securities, means one or more permanent Global
Securities representing such series of Securities that do not bear and are not
required to bear the Private Placement Legend, issued under this Indenture.

 

“Unrestricted Securities”,
with respect to any series of Securities, means a Security (i) effectively
registered under the Securities Act and disposed of in accordance with a
registration statement with respect to such series or (ii) distributed to
the public pursuant to Rule 144 under the Securities Act or any similar
provision then in force.

 

“Voting Stock” of a Person
means Capital Stock of such Person of the class or classes pursuant to which
the holders thereof have the general voting power under ordinary circumstances
to elect at least a majority of the board of directors, managers or trustees of
such Person, irrespective of whether or not at the time Capital Stock of any
other class or classes shall have or might have voting power by reason of the
happening of any contingency.

 

ARTICLE II.

 

ISSUE, DESCRIPTION,
TERMS, EXECUTION, REGISTRATION AND

EXCHANGE OF SECURITIES

 

Section 2.01                                Designation
and Terms of Securities.

 

(a)                                  The
aggregate principal amount of Securities that may be authenticated and
delivered under this Indenture is unlimited. 
The Securities may be issued in one or more series 

 

8

 

up to the aggregate principal amount of
Securities of that series from time to time authorized by or pursuant to a
Board Resolution of the Company or pursuant to one or more indentures
supplemental hereto.  Prior to the
initial issuance of Securities of any series, there shall be established in or
pursuant to a Board Resolution of the Company, and set forth in an Officer’s
Certificate of the Company, or established in one or more indentures
supplemental hereto, with respect to the Securities of the series:

 

(1)                                  the
title of the Security of the series, which shall distinguish the Securities of
the series from all other Securities;

 

(2)                                  any
limit upon the aggregate principal amount of the Securities of that series that
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 that series;

 

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

 

(4)                                  the
rate or rates, which may be fixed or variable, at which the Securities of the
series shall bear interest or the manner of calculation of such rate or rates,
if any, including any procedures to vary or reset such rate or rates, and the
basis upon which interest will be calculated if other than that of a 360 day
year of twelve 30-day months;

 

(5)                                  the
date or dates from which such interest shall accrue, the Interest Payment Dates
on which such interest will be payable or the manner of determination of such
Interest Payment Dates, and the record date for the determination of holders to
whom interest is payable on any such Interest Payment Dates;

 

(6)                                  any
trustees, authenticating agents or paying agents with respect to such series,
if different from those set forth in this Indenture;

 

(7)                                  the
right, if any, to extend the interest payment periods or defer the payment of
interest and the duration of such extension or deferral;

 

(8)                                  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;

 

(9)                                  the
obligation, if any, of the Company to redeem, purchase or repay Securities of
the series pursuant to any sinking fund or analogous provisions, including
payments made in cash in anticipation of future sinking fund obligations, 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, purchased or repaid, in whole or in part,
pursuant to such obligation;

 

(10)                            the
form of the Securities of the series including the form of the Trustee’s
certificate of authentication for such series;

 

9

 

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

 

(12)                            the
Currency or Currencies in which payment of the principal of, premium, if any,
and interest on, Securities of the series shall be payable;

 

(13)                            if the
principal amount payable at the Stated Maturity of Securities of the series
will not be determinable as of any one or more dates prior to such Stated Maturity,
the amount which will be deemed to be such principal amount as of any such date
for any purpose, including the principal amount thereof that will be due and
payable upon declaration of the maturity thereof pursuant to Section 6.01
or upon any maturity other than the Stated Maturity or that will be deemed to
be Outstanding as of any such date, or, in any such case, the manner in which
such deemed principal amount is to be determined;

 

(14)                            the
terms of any repurchase or remarketing rights;

 

(15)                            if the
Securities of the series shall be issued in whole or in part in the form of a
Global Security or Securities, the type of Global Security to be issued; the
terms and conditions, if different from those contained in this Indenture, upon
which such Global Security or Securities may be exchanged in whole or in part
for other individual Securities in definitive registered form; the Depositary
for such Global Security or Securities; and the form of any legend or legends
to be borne by any such Global Security or Securities in addition to or in lieu
of the legends referred to in Section 2.02;

 

(16)                            whether
the Securities of the series will be convertible into or exchangeable for other
Securities, common shares or other securities of any kind of the Company or
another obligor, and, if so, the terms and conditions upon which such
Securities will be so convertible or exchangeable, including the initial
conversion or exchange price or rate or the method of calculation, how and when
the conversion price or exchange ratio may be adjusted, whether conversion or
exchange is mandatory, at the option of the holder or at the Company’s option,
the conversion or exchange period, and any other provision in addition to or in
lieu of those described herein;

 

(17)                            any
additional restrictive covenants or Events of Default that will apply to the
Securities of the series, or any changes to the restrictive covenants set forth
in Article IV or the Events of Default set forth in Section 6.01 that
will apply to the Securities of the series, which may consist of establishing
different terms or provisions from those set forth in Article IV or Section 6.01
or eliminating any such restrictive covenant or Event of Default with respect
to the Securities of the series;

 

(18)                            any
provisions granting special rights to holders when a specified event occurs;

 

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

 

(20)                            any
special tax implications of the Securities, including provisions for 

 

10

 

original issue discount securities, if offered;

 

(21)                            whether
and upon what terms Securities of a series may be defeased if different from
the provisions set forth in this Indenture;

 

(22)                            with
regard to the Securities of any series that do not bear interest, the dates for
certain required reports to the Trustee;

 

(23)                            whether
the Securities of the series will be issued as Unrestricted Securities or
Restricted Securities, and, if issued as Restricted Securities, the rule or
regulation promulgated under the Securities Act in reliance on which they will
be sold;

 

(24)                            the
subordination terms of the Securities of the Series and the related
Guarantee; and

 

(25)                            any
and all additional, eliminated or changed terms that shall apply to the
Securities of the series, including any terms that may be required by or
advisable under United States laws or regulations, including the Securities Act
and the rules and regulations promulgated thereunder, or advisable in
connection with the marketing of Securities of that series.

 

(b)                                 All Securities of any one series shall be
substantially identical except that Securities of any particular series may be
issued at various times, in different denominations, with different currency of
payments due thereunder, with different dates on which the principal or any
installment of principal is payable, with different rates of interest, if any,
or different methods by which rates of interest may be determined, with
different dates from which such interest may accrue or on which such interest
may be payable, and with different redemption dates, and except as may
otherwise be provided in or pursuant to any such Board Resolution or in any
supplemental indenture.  If any of
the terms of the series are established by action taken pursuant to a Board
Resolution of the Company, a copy of an appropriate record of such action shall
be certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officer’s
Certificate of the Company setting forth the terms of the series.  The
terms of the Securities of any series may provide that such Securities shall be
authenticated and delivered by the Trustee upon original issuance from time to
time upon written order of persons designated in such Board Resolution or
supplemental indenture and that such persons are authorized to determine,
consistent with such Board Resolution or supplemental indenture, such terms and
conditions of the Securities of such series.

 

Section 2.02                                Form of
Securities and Trustee’s Certificate.

 

(a)                                  The
Securities of any series and the Trustee’s certificate of authentication to be
borne by such Securities shall be substantially of the tenor  set forth in an indenture supplemental hereto
or as provided in a Board Resolution of the Company and as set forth in an
Officer’s Certificate of the Company and may have such letters, numbers or
other marks of identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as the Company may deem appropriate
and as are not inconsistent with the provisions of this Indenture, any Board
Resolution or any indenture supplemental hereto, or as may be required to
comply with any law or with any rule or regulation made pursuant thereto
or with any rule or 

 

11

 

regulation of any stock exchange on which
Securities of that series may be listed, or to conform to usage.

 

(b)                                 Each
Restricted Security (and all Restricted Securities issued in exchange therefor
or substitution thereof) shall bear a Private Placement Legend in substantially
the following form:

 

“THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF
1933 (THE “SECURITIES ACT”). THIS SECURITY MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT
THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

 

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS
SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN
THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE
THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER
THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF
CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT
OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.”

 

(c)                                  To
the extent required by the Depositary for particular series of Securities, each
Global Security of such series shall bear legends in substantially the
following forms:

 

“THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF
THE HOLDERS OF BENEFICIAL INTERESTS HEREIN, AND IS NOT TRANSFERABLE TO ANY
PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE
ANY SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE INDENTURE, (II) THIS
GLOBAL SECURITY MAY BE 

 

12

 

EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.05(C) OF
THE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE
TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND (IV) THIS GLOBAL
SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR
WRITTEN CONSENT OF THE COMPANY.”

 

“UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT
AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF
THE DEPOSITARY TO THE DEPOSITARY OR TO ANOTHER NOMINEE OF THE DEPOSITARY OR BY
THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF ANY ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO SUCH ENTITY AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN.”

 

(d)                                 To
the extent required by the Depositary, each Regulation S Temporary Global
Security shall bear a legend in substantially the following form:

 

“THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL SECURITY,
AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR DEFINITIVE
SECURITIES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE
HOLDER NOR THE HOLDER OF BENEFICIAL INTERESTS IN THIS REGULATION S TEMPORARY
SECURITY SHALL BE ENTITLED TO RECEIVE CASH PAYMENTS OF INTEREST DURING THE
PERIOD WHICH SUCH HOLDER HOLDS THIS SECURITY. NOTHING IN THIS LEGEND SHALL BE
DEEMED TO PREVENT INTEREST FROM ACCRUING ON THIS SECURITY.”

 

Section 2.03                                Denominations;
Provisions for Payment.

 

The Securities shall be issuable as registered Securities and in the
denominations of $1,000 or any integral multiple thereof, subject to Section 2.01(a)(11).
The Securities of a particular series shall bear interest payable on the dates
and at the rate specified as provided in Section 2.01 with respect to that
series. The principal of and the interest on the Securities of any series, as
well as any premium thereon in case of redemption thereof prior to maturity,
shall be 

 

13

 

payable in Dollars except as otherwise
specified pursuant to Section 2.01(a)(12), at the office or agency of the
Company maintained for that purpose pursuant to Section 4.02. Each
Security shall be dated the date of its authentication. Unless otherwise
specified with respect to a series of Securities in accordance with the
provisions of Section 2.01(a)(4), interest on the Securities shall be
computed on the basis of a 360-day year composed of twelve 30-day months.

 

The interest installment on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date for
Securities of that series shall be paid to the Person in whose name said
Security (or one or more Predecessor Securities) is registered at the close of
business on the regular record date for such interest installment. In the event
that any Security of a particular series or portion thereof is called for
redemption and the redemption date is subsequent to a regular record date with
respect to any Interest Payment Date and prior to such Interest Payment Date,
interest on such Security will be paid upon presentation and surrender of such
Security as provided in Section 3.03.

 

Unless otherwise set forth in a Board Resolution or one or more
indentures supplemental hereto establishing the terms of any series of any
Securities pursuant to Section 2.01, the term “regular record date” as
used in this Section 2.03 with respect to a series of Securities shall
mean a date 15 days immediately preceding any Interest Payment Date, whether or
not such day is a Business Day. Subject to the provisions of this Section 2.03,
each Security of a series delivered under this Indenture upon registration of
transfer or in exchange for or in lieu of any other Security of such series
shall carry the rights to interest accrued and unpaid, and to accrue, that were
carried by such other Security.

 

Unless otherwise specified with respect to a series of Securities in
accordance with the provisions of Section 2.01, any interest on any Security
that is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date for such Security (“Defaulted
Interest”) shall forthwith cease to be payable to the registered
holder on the relevant regular record date, and such Defaulted Interest shall
be paid by the Company, at its election, as provided in clause (1) or
clause (2) below.

 

(1)                                  The
Company may make payment of any Defaulted Interest on Securities to the Persons
in whose names such Securities (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 such Security and the date of the proposed payment,
and at the same time the Company shall deposit with the Trustee funds in an
amount 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 funds when
deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as provided in this clause (1). Thereupon the Trustee shall
fix a special record date for the payment of such Defaulted Interest which
shall not be more than 15 nor less than ten days prior to the date of the
proposed payment and not less than ten days after the receipt by the Trustee of
the notice of the proposed payment. The Trustee promptly shall 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 

 

14

 

such Defaulted Interest and the special
record date therefor to be mailed, first class postage prepaid, to each
Securityholder at his or her address as it appears in the Security Register,
not less than ten days prior to such special record date. Notice of the
proposed payment of such Defaulted Interest and the special record date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid
to the Persons in whose names such Securities, or their respective Predecessor
Securities, are registered on such special record date and shall not be payable
pursuant to the following clause (2).

 

(2)                                  The
Company may make payment of any Defaulted Interest on any Securities 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.

 

Section 2.04                                Execution
and Authentications.

 

The Securities shall be signed on behalf of the Company by any member
of the Board of Directors of the Company or by both (a) its president,
chief financial officer or vice president and (b) its secretary, any
assistant secretary, its treasurer or any assistant treasurer. Signatures may
be in the form of a manual or facsimile signature. In the case of Definitive
Securities of any series, such signatures may be imprinted or otherwise
reproduced on such Securities. The Securities may contain such notations,
legends or endorsements required by law, stock exchange rule or usage.
Each Security shall be dated the date of its authentication by the Trustee.

 

A Security shall not be valid until authenticated manually by an
authorized signatory of the Trustee or by an Authenticating Agent. Such
signature shall be conclusive evidence, and the only evidence, that the
Security so authenticated has been duly authenticated and delivered hereunder.
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,  with the form of Guarantee
thereon executed by Parent, to the Trustee for authentication, together with a
written order of the Company for the authentication and delivery of such
Securities, signed by an Officer (an “Authentication
Order”), and the Trustee in accordance with such written order shall
authenticate and deliver such Securities.

 

Notwithstanding the provisions of Section 2.01 and the preceding
paragraph, 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 an Authentication
Order or such other procedures acceptable to the Trustee as may be specified by
or pursuant to a supplemental indenture or the written order of the Company
delivered to the Trustee prior to the time of the first authentication of
Securities of such series.  With respect
to Securities of a series subject to a Periodic Offering, the Trustee
conclusively may rely, as to the authorization by the Company of any of such
Securities, the forms and terms thereof and the legality, validity, binding
effect and enforceability thereof, upon the written order of the Company,
Opinion of Counsel, Officer’s Certificate and other documents delivered
pursuant to this Section 2.04 at or prior to the time of the first
authentication of Securities of such series unless and until such written
order, Opinion of Counsel, Officer’s Certificate or other documents have been
superseded or revoked, and written notice thereof is provided to Trustee, or
expire by their terms.

 

15

 

Section 2.05                                Transfer
and Exchange.

 

(a)                                  Registration
of Transfer and Exchange.  The
Company shall keep, or cause to be kept, at its office or agency designated for
such purpose as provided in Section 4.02, a register or registers (the “Security Register”) in which, subject to
such reasonable regulations as it may prescribe, the Company shall register the
Securities and the transfers of Securities as provided in this Article II
and which at all reasonable times shall be open for inspection by the Trustee. The
registrar for the purpose of registering Securities and the transfer of
Securities as herein provided shall be appointed as authorized by Board
Resolution (the “Security Registrar”).  If the Company fails to appoint or maintain
another entity as Security Registrar, the Trustee shall act as such.  The Company or any of its Subsidiaries may
act as Security Registrar.

 

To permit registrations of transfers and exchanges, the Company shall
execute a new Security or Securities of the same series as the Security
presented for a like aggregate principal amount and in authorized
denominations, and Parent shall execute the form of Guarantee or Guarantees
thereon, and the Trustee shall authenticate and deliver such Security or
Securities upon receipt of an Authentication Order. The Trustee shall not be
required to register the transfer of or exchange any Security selected for
redemption in whole or in part, except the unredeemed portion of any Security
being redeemed in part.

 

All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company and Parent, evidencing
the same indebtedness as the Securities surrendered upon such registration of
transfer or exchange. Prior to such due presentment for the registration of a
transfer of any Security, the Trustee, the Company, any paying agent and the
Security Registrar may deem and treat the Person in whose name any Security is
registered as the absolute owner of such Security for the purpose of receiving
payment of principal of and interest on such Securities and for all other
purposes, and none of the Trustee, the Company, the paying agent or the
Security Registrar shall be affected by notice to the contrary.

 

All certifications, Officer’s Certificates and Opinions of Counsel
required to be submitted to the Trustee pursuant to this Section 2.05 to
effect a registration of transfer or exchange may be submitted by facsimile, to
be followed by delivery of the original document to Trustee within three (3) Business
Days of delivery by facsimile.

 

(b)                                 Service
Charge.  No service charge shall be
payable by a holder of a beneficial interest in a Global Security or by a
Holder of a Definitive Security for any exchange or registration of transfer of
Securities, or for any issue of new Securities in case of partial redemption of
any series.  The Company, however, may
require payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, other than any such taxes or other governmental
charge payable upon exchange or registration of transfer pursuant to Sections
2.06, 3.03(b) and 9.04.

 

(c)                                  Transfer
and Exchange of Global Securities.  A
Global Security may not be transferred except as a whole by the Depositary for
a series of the Securities to a nominee of such Depositary, by a nominee of
such Depositary to such Depositary or to another nominee of such Depositary or
by such Depositary or any such nominee to a successor Depositary for a series
of 

 

16

 

the Securities or a nominee of such successor
Depositary. If at any time the Depositary for a series of the Securities
notifies the Company that it is unwilling or unable to continue as Depositary
for such series or if at any time the Depositary for such series shall no
longer be registered or in good standing under the Exchange Act or other
applicable statute or regulation, and a successor Depositary for such series is
not appointed by the Company within 90 days after the Company receives such
notice or becomes aware of such condition, the provisions of Section 2.11
shall no longer be applicable to the Securities of such series. In addition,
the Company may at any time determine that the Securities of any series shall
no longer be represented by a Global Security and that the provisions of Section 2.11
shall no longer apply to the Securities of such series. In either such event
the Company will execute the Definitive Securities of such series, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series, and Parent will execute
the form of Guarantees thereon, and subject to this Section 2.05 the
Trustee, upon receipt of an Officer’s Certificate evidencing such determination
by the Company, if applicable, will authenticate and deliver such Definitive
Securities in exchange for such Global Security. Upon the exchange of the
Global Security of such series for such Definitive Securities of such series,
the Global Security shall be canceled by the Trustee. Such Definitive
Securities shall be registered in such names and in such authorized
denominations as the Depositary, pursuant to instructions from its Participants
or Indirect Participants or otherwise, shall in writing instruct the Trustee.
The Trustee shall deliver such Securities to the Depositary for delivery to the
Persons in whose names such Securities are so registered.

 

Except as provided in Sections 2.06 and 2.07, a Global Security may not
be exchanged for another Security other than as provided in this Section 2.05(c);
however, beneficial interests in a Global Security may be transferred and
exchanged as provided in Section 2.05(d) or (e). The provisions of
this Section 2.05(c) are subject to Section 2.11.

 

(d)                                 Transfer
and Exchange of Beneficial Interests in the Global Securities. The transfer
and exchange of beneficial interests in the Global Securities of a series shall
be effected through the Depositary, in accordance with the provisions of this
Indenture, any Board Resolution and any one or more indentures supplemental
hereto, and the Applicable Procedures. Beneficial interests in the Restricted
Global Securities of a series shall be subject to restrictions on transfer
comparable to those set forth herein to the extent required by the Securities
Act. Transfers of beneficial interests in the Global Securities also shall
require compliance with either subparagraph (1) or (2) below, as
applicable, as well as one or more of the other following subparagraphs, as
applicable:

 

(1)                                  Transfer
of Beneficial Interests in the Same Global Security.  Beneficial interests in any Restricted Global
Security of a series may be transferred to Persons who take delivery thereof in
the form of a beneficial interest in the same Restricted Global Security in
accordance with the transfer restrictions set forth in the Private Placement
Legend. Beneficial interests in any Unrestricted Global Security of a series
may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Security of such series. Subject
to Section 2.05(e)(4), no written orders or instructions shall be required
to be delivered to the Security Registrar to effect the transfers described in
this Section 2.05(d)(1).

 

17

 

(2)                                  All Other
Transfers and Exchanges of Beneficial Interests in Global Securities.  In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.05(d)(1) above,
the transferor of such beneficial interest must deliver to the Security
Registrar, as applicable, either:

 

(A)(1) an order from a Participant or an Indirect Participant
given to the Depositary in accordance with the relevant Applicable Procedures
directing the Depositary to credit or cause to be credited a beneficial
interest in another Global Security of such series in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions
given in accordance with the relevant Applicable Procedures containing
information regarding the Participant account to be credited with such
increase; or

 

(B)(1) an order from a Participant or an Indirect Participant
given to the Depositary in accordance with the relevant Applicable Procedures
directing the Depositary to cause to be issued a Definitive Security of such
series in an amount equal to the beneficial interest to be transferred or
exchanged and (2) instructions given by the Depositary to the Security
Registrar containing information regarding the Person in whose name such
Definitive Security shall be registered to effect the transfer or exchange
referred to in (B)(1) above;

 

provided that in no event shall Definitive
Securities of a series be issued upon the transfer or exchange of beneficial
interests in the Regulation S Temporary Global Security of such series prior to
(y) the expiration of the relevant Distribution Compliance Period and (z) the
receipt by the Security Registrar of any certificates identified by the Company
or its counsel to be required pursuant to Rule 903 and Rule 904 under
the Securities Act. Upon satisfaction of all the requirements for transfer and
exchange of beneficial interests in Global Securities of a series contained in
this Indenture, any Board Resolution, or one or more indentures supplemental
hereto and the Securities of such series or otherwise applicable under the
Securities Act, the Trustee shall adjust the principal amount of the relevant
Global Security or Securities of such series pursuant to Section 2.05(h).

 

(3)                                  Transfer
of Beneficial Interests to Another Restricted Global Security.  A beneficial interest in any Restricted
Global Security of a series may be transferred to a Person who takes delivery
thereof in the form of a beneficial interest in another Restricted Global Security
of the same series if the transfer complies with the requirements of Section 2.05(d)(2) and
the Security Registrar receives a completed certificate in the form of Exhibit A.

 

(4)                                  Transfer
and Exchange of Beneficial Interests in a Restricted Global Security for
Beneficial Interests in an Unrestricted Global Security.  A beneficial interest in any Restricted
Global Security of any series may be exchanged by any holder thereof for a
beneficial interest in an Unrestricted Global Security of such series or
transferred to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Security of such series if the exchange or
transfer complies with the requirements of Section 2.05(d)(2) above
and the Security Registrar receives a completed certificate from such holder in
the form of Exhibit A or Exhibit B, as applicable, and an opinion of 

 

18

 

counsel in form, and from legal counsel,
reasonably acceptable to the Security Registrar and the Company to the effect
that such exchange or transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the
Securities Act.

 

If any such transfer is effected at a time when an Unrestricted Global
Security of such series has not yet been issued, the Company shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.04,
the Trustee shall authenticate one or more Unrestricted Global Securities of
such series in an aggregate principal amount equal to the aggregate principal
amount of beneficial interests so transferred. Beneficial interests in an
Unrestricted Global Security of a series cannot be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a beneficial
interest in a Restricted Global Security of such series.

 

(e)                                  Transfer
or Exchange of Beneficial Interests for Definitive Securities.

 

(1)                                  Beneficial
Interests in Restricted Global Securities to Restricted Definitive Securities.  If any holder of a beneficial interest in a
Restricted Global Security of a series proposes to exchange such beneficial
interest for a Restricted Definitive Security of such series or to transfer
such beneficial interest to a Person who takes delivery thereof in the form of
a Restricted Definitive Security of such series, then, upon receipt by the
Security Registrar of a completed certificate from such holder in the form of Exhibit A
or Exhibit B, as applicable, and certificates and opinions of counsel, if
applicable, the Trustee, upon receipt of written instructions accompanied by an
Officer’s Certificate, shall cause the aggregate principal amount of the
applicable Restricted Global Security of such series to be reduced accordingly
pursuant to Section 2.05(h), and the Company shall execute a Restricted
Definitive Security of such series in the appropriate principal amount, and
Parent shall execute the form of Guarantee thereon, and, upon receipt of an
Authentication Order pursuant to Section 2.04, the Trustee shall
authenticate and deliver to the Person designated in the instructions such
Restricted Definitive Security. Any Restricted Definitive Security of such
series issued in exchange for a beneficial interest in a Restricted Global
Security of such series pursuant to this Section 2.05(e) shall be
registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Security Registrar through instructions from the Depositary for such series and
the Participant or Indirect Participant. The Trustee shall deliver such
Restricted Definitive Securities of such series to the Persons in whose names
such Securities are so registered. Any Restricted Definitive Security of such
series issued in exchange for a beneficial interest in a Restricted Global
Security of such series pursuant to this Section 2.05(e)(1) shall
bear the Private Placement Legend and shall be subject to all restrictions on
transfer contained therein.

 

(2)                                  Beneficial
Interests in Restricted Global Securities to Unrestricted Definitive Securities.
A holder of a beneficial interest in a Restricted Global Security of a series
may exchange such beneficial interest for an Unrestricted Definitive Security
of such series or may transfer such beneficial interest to a Person who takes
delivery thereof 

 

19

 

in the form of an Unrestricted Definitive Security
of such series only if the Security Registrar receives a completed certificate
from such holder in the form of Exhibit A or Exhibit B, as
applicable, and an opinion of counsel in form, and from legal counsel,
reasonably acceptable to the Security Registrar and the Company to the effect
that such exchange or transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the
Securities Act.

 

(3)                                  Beneficial
Interests in Unrestricted Global Securities to Unrestricted Definitive
Securities.  If any holder of a
beneficial interest in an Unrestricted Global Security of a series proposes to
exchange such beneficial interest for an Unrestricted Definitive Security of
such series or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of an Unrestricted Definitive Security of such
series, then, upon satisfaction of the conditions set forth in Section 2.05(d)(2),
the Trustee, upon receipt of written instructions accompanied by an Officer’s
Certificate, shall cause the aggregate principal amount of the applicable
Unrestricted Global Security of such series to be reduced accordingly pursuant
to Section 2.05(h), and the Company shall execute an Unrestricted
Definitive Security of such series in the appropriate principal amount, and
Parent shall execute the form of Guarantee thereon, and, upon receipt of an
Authentication Order in accordance with Section 2.04, the Trustee shall
authenticate and deliver to the Person designated in the instructions such
Unrestricted Definitive Security. Any Unrestricted Definitive Security issued
in exchange for a beneficial interest pursuant to this Section 2.05(e)(3) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Security Registrar through instructions from the Depositary for such series and
the Participant or Indirect Participant. The Trustee shall deliver such
Unrestricted Definitive Securities to the Persons in whose names such
Securities are so registered. Any Unrestricted Definitive Security issued in
exchange for a beneficial interest pursuant to this Section 2.05(e)(3) shall
not bear the Private Placement Legend.

 

(4)                                  Transfer
or Exchange of Regulation S Temporary Global Securities. Notwithstanding
the other provisions of this Section 2.05, a beneficial interest in the
Regulation S Temporary Global Security of a series may not be (A) exchanged
for a Definitive Security of such series prior to (y) the expiration of
the Distribution Compliance Period with respect to such series, unless such
exchange is effected by the Company, does not require an investment decision on
the part of the Holder thereof and does not violate the provisions of
Regulation S, and (z) the receipt by the Security Registrar of any
certificates identified by the Company or its counsel to be required pursuant
to Rule 903(b)(3)(ii)(B) under the Securities Act or (B) transferred
to a U.S. person (as such term is defined in Regulation S) or for the account
or benefit of a U.S. person, other than an initial purchaser of such Regulation
S Temporary Global Security, or a Person who takes delivery thereof in the form
of a Definitive Security of such series prior to the events set forth in clause
(A) above or unless the transfer is pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 903 or
904.

 

20

 

(f)                                    Transfer
and Exchange of Definitive Securities for Beneficial Interests.

 

(1)                                  Restricted
Definitive Securities to Beneficial Interests in Restricted Global Securities.  If any Holder of a Restricted Definitive  Security of a series proposes to exchange
such Security for a beneficial interest in a Restricted Global Security of such
series or to transfer such Restricted Definitive Securities of such series to a
Person who takes delivery thereof in the form of a beneficial interest in a
Restricted Global Security of such series, then, upon receipt by the Trustee of
the following documentation:

 

(A) if the Holder of such Restricted Definitive Security of such
series proposes to exchange such Security for a beneficial interest in a
Restricted Global Security of such series, a completed certificate from such
holder in the form of Exhibit B; or

 

(B) if such Restricted Definitive Security is being transferred to
a QIB in accordance with Rule 144A under the Securities Act or to a
non-U.S. person in an offshore transaction in accordance with Rule 903 or
904 under the Securities Act, a completed certificate to that effect set forth
in Exhibit A,

 

the Trustee shall cancel the Restricted Definitive Security of such
series, increase or cause to be increased the aggregate principal amount of, in
the case of clause (A) above, the appropriate Restricted Global Security
of such series and, in the case of clause (B) above, the 144A Global
Security of such series or the Regulation S Global Security of such series as
applicable.

 

(2)                                  Restricted
Definitive Securities to Beneficial Interests in Unrestricted Global Securities.
A Holder of a Restricted Definitive Security of a series may exchange such
Security for a beneficial interest in an Unrestricted Global Security of such
series or transfer such Restricted Definitive Security of such series to a
Person who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Security of such series only if the Security Registrar
receives a completed certificate from such Holder in the form of Exhibit A
or Exhibit B, as applicable, and an opinion of counsel in form, and from
legal counsel, reasonably acceptable to the Security Registrar and the Company
to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in
the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act. Upon receipt of evidence of the
satisfaction of the conditions of any of the subparagraphs in this Section 2.05(f)(2),
the Trustee shall cancel the Restricted Definitive Securities of such series so
transferred or exchanged and increase or cause to be increased the aggregate
principal amount of the Unrestricted Global Security of such series.

 

(3)                                  Unrestricted
Definitive Securities to Beneficial Interests in Unrestricted Global Securities.  A Holder of an Unrestricted Definitive
Security of a series may exchange such Security for a beneficial interest in an
Unrestricted Global Security of such series or transfer such Definitive
Securities of such series to a Person who takes delivery thereof in the form of
a beneficial interest in an Unrestricted Global Security of such series at any
time. Upon receipt of a written request for such an exchange or transfer, the
Trustee shall cancel the applicable Unrestricted Definitive Security and
increase or cause or be increased the aggregate principal amount of one of the 

 

21

 

Unrestricted Global Securities of such
series. If any such exchange or transfer from a Definitive Security of a series
to a beneficial interest is effected pursuant to subparagraphs (2) or (3) of
this Section 2.05(f) at a time when an Unrestricted Global Security
of such series has not yet been issued, the Company shall issue and, upon
receipt of an Authentication Order in accordance with Section 2.04, the
Trustee shall authenticate one or more Unrestricted Global Securities of such
series in an aggregate principal amount equal to the principal amount of
Definitive Securities of such series so transferred.

 

(g)                                 Transfer
and Exchange of Definitive Securities for Definitive Securities.  Upon written request by a Holder of Definitive
Securities of a series and such Holder’s compliance with the provisions of this
Section 2.05(g), the Trustee shall register the transfer or exchange of
Definitive Securities of such series pursuant to the provisions of Section 2.05(a).
In addition to the requirements set forth in Section 2.05(a), the
requesting Holder shall provide any additional certifications, documents, and
information, as applicable, required pursuant to the following provisions of
this Section 2.05(g).

 

(1)                                  Restricted
Definitive Securities to Restricted Definitive Securities.  Any Restricted Definitive Security of a
series may be transferred to and registered in the name of Persons who take
delivery thereof in the form of a Restricted Definitive Security of such series
if the Trustee receives a completed certificate in the form of Exhibit A,
including the certifications, certificates and opinions of counsel required by
item (3) thereof, if applicable.

 

(2)                                  Restricted
Definitive Securities to Unrestricted Definitive Securities.  Any Restricted Definitive Security of a
series may be exchanged by the Holder thereof for an Unrestricted Definitive Security of such series or transferred to a
Person or Persons who take delivery thereof in the form of an Unrestricted
Definitive Security of such series if the Security Registrar receives a
completed certificate from such Holder in the form of Exhibit A or Exhibit B,
as applicable and an opinion of counsel in form, and from legal counsel,
reasonably acceptable to the Company to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

(3)                                  Unrestricted
Definitive Securities to Unrestricted Definitive Securities.  A Holder of Unrestricted Definitive
Securities of a series may transfer such Securities to a Person who takes
delivery thereof in the form of an Unrestricted Definitive Security of such
series in accordance with Section 2.05(a). Upon receipt of a request to
register such a transfer, the Security Registrar shall register the
Unrestricted Definitive Securities of such series pursuant to the instructions
from the Holder thereof.

 

(h)                                 Cancellation
and/or Adjustment of Global Securities. 
At such time as all beneficial interests in a particular Global Security
of a series have been exchanged for Definitive Securities of such series or a
particular Global Security of a series has been redeemed, repurchased or
cancelled in whole and not in part, each such Global Security of such series
shall be returned to or retained and cancelled by the Trustee in accordance
with Section 2.08. At any 

 

22

 

time prior to such cancellation, if any
beneficial interest in a Global Security of such series is exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Security of such series or for Definitive
Securities of such series, the principal amount of Securities of such series
represented by such Global Security shall be reduced accordingly and an
endorsement may be made on such Global Security by the Trustee or by the
Depositary at the direction of the Trustee to reflect such reduction; and if
the beneficial interest is being exchanged for or transferred to a Person who
will take delivery thereof in the form of a beneficial interest in another
Global Security of such series, such other Global Security shall be increased
accordingly and an endorsement may be made on such Global Security by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
increase.

 

(i)                                     No
Exchange or Transfer.  The Company
shall not be required (i) to issue, exchange or register the transfer of
any Securities during a period beginning at the opening of business 15 days
before the day of the mailing of a notice of redemption of less than all the
Outstanding Securities of the same series and ending at the close of business
on the day of such mailing, (ii) to register the transfer of or exchange
any Securities of any series or portions thereof called for redemption, or (iii) to
register the transfer of or exchange a Security of any series between the
applicable record date pursuant to Section 2.01(a)(5) and the next succeeding Interest Payment Date.

 

Section 2.06                                Temporary
Securities.

 

Pending the preparation of definitive Securities of any series, the
Company may execute temporary Securities (printed, lithographed or typewritten)
of any authorized denomination, and Parent shall execute the Guarantees
thereon, and the Trustee, upon receipt of an Authentication Order, shall
authenticate and deliver such Securities. Such temporary Securities shall be
substantially in the form of the definitive Securities in lieu of which they
are issued, but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the Company.
Every temporary Security of any series shall be executed by the Company, with
the form of Guarantee thereon executed by Parent, and be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with
like effect, as the definitive Securities of such series. Without unnecessary
delay the Company will execute, and if applicable Parent will endorse, and will
furnish definitive Securities of such series and thereupon any or all temporary
Securities of such series may be surrendered in exchange therefor without charge
to the holders, at the office or agency of the Company maintained pursuant to Section 4.02
for the purpose of exchanges of Securities of such series, and the Trustee,
upon receipt of an Authentication Order, shall authenticate and such office or
agency shall deliver in exchange for such temporary Securities an equal
aggregate principal amount of definitive Securities of such series, unless the
Company advises the Trustee to the effect that definitive Securities need not
be executed and furnished until further notice from the Company. Until so
exchanged, temporary Securities of any series shall in all respects be valid
obligations under this Indenture.

 

23

 

Section 2.07                                Mutilated,
Destroyed, Lost or Stolen Securities.

 

In case any temporary or definitive Security shall become mutilated or
be destroyed, lost or stolen, the Company, subject to the next succeeding
sentence, shall execute a new Security of the same series, bearing a number not
contemporaneously outstanding in exchange and substitution for the mutilated
Security, or in lieu of and in substitution for the Security so destroyed, lost
or stolen, and Parent shall execute the form of Guarantee thereon, and upon the
Company’s written request the Trustee, subject to the next succeeding sentence,
upon receipt of an Authentication Order, shall authenticate and deliver such
Security. In every case the applicant for a substituted Security shall furnish
to the Company and the Trustee such security or indemnity as may be required by
them to save each of them harmless, and, in every case of destruction, loss or
theft, the applicant shall also furnish to the Company and the Trustee evidence
to their satisfaction of the destruction, loss or theft of the applicant’s Security
and of the ownership thereof. The Trustee, upon receipt of an Authentication
Order, shall authenticate any such substituted Security and deliver the same.
Upon the issuance of any substituted Security, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses, including the fees
and expenses of the Trustee, connected therewith. In case any Security that has
matured or is about to mature shall become mutilated or be destroyed, lost or
stolen, the Company, instead of issuing a substitute Security, may pay or
authorize the payment of the same, without surrender thereof except in the case
of a mutilated Security, if the applicant for such payment shall furnish to the
Company and the Trustee such security or indemnity as they may require to save
them harmless, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft
of such Security and of the ownership thereof.

 

Every
replacement Security issued pursuant to the provisions of this Section 2.07
shall constitute an additional contractual obligation of the Company whether or
not the mutilated, destroyed, lost or stolen Security shall be found at any
time, or be enforceable by anyone. All Securities shall be held and owned upon
the express condition that the foregoing provisions are exclusive with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities,
and shall preclude, to the extent lawful, any and all other rights or remedies,
notwithstanding any law or statute existing or hereafter enacted to the
contrary with respect to the replacement or payment of negotiable instruments
or other securities without their surrender.

 

Section 2.08                                Cancellation.

 

All Securities surrendered for the purpose of payment, redemption,
exchange or registration of transfer, if surrendered to the Company or any
paying agent, shall be delivered to the Trustee for cancellation, or, if
surrendered to the Trustee, shall be cancelled by it, and no Securities shall
be issued in lieu thereof except as expressly required or permitted by any of
the provisions of this Indenture. On written request of the Company at the time
of such surrender, the Trustee shall deliver to the Company evidence of the
cancellation of Securities by the Trustee. If the Company shall otherwise
acquire any of the Securities, however, such acquisition shall not operate as a
redemption or satisfaction of the indebtedness represented by such Securities
unless and until the same are delivered to the Trustee for cancellation.

 

24

 

Section 2.09                                Third
Party Beneficiaries.

 

Nothing in this Indenture or in the Securities, express or implied,
shall give or be construed to give to any Person, other than the parties
hereto, the holders of the Securities and, to the extent provided in Article XVI,
the holders of senior indebtedness, any legal or equitable right, remedy or claim
under or in respect of this Indenture, or under any covenant, condition or
provision contained herein.

 

Section 2.10                                Authenticating
Agent.

 

So long as any of the Securities of any series remain Outstanding,
there may be an Authenticating Agent for any or all such series of Securities
which either the Trustee or the Company shall have the right to appoint. The
Authenticating Agent shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series, including Securities issued upon
exchange, registration of transfer or partial redemption thereof, and
Securities so authenticated shall be valid obligations for all purposes as if
authenticated by the Trustee hereunder. All references in this Indenture to the
authentication of Securities by the Trustee shall be deemed to include
authentication by an Authenticating Agent for such series. Each Authenticating
Agent shall be acceptable to the Company and shall be a corporation that has a
combined capital and surplus, as most recently reported or determined by it,
sufficient under the laws of any jurisdiction under which it is organized or in
which it is doing business to conduct a trust business, and that is otherwise
authorized under such laws to conduct such business and is subject to supervision
or examination by Federal or State authorities. If at any time any
Authenticating Agent shall cease to be eligible in accordance with these
provisions, it shall resign immediately. 
Any Authenticating Agent may resign at any time by giving written notice
of resignation to the Trustee and to the Company.  The Trustee with the Consent of the Company
at any time may, and upon request by the Company shall, terminate the agency of
any Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or
cessation of eligibility of any Authenticating Agent, either the Trustee or the
Company may appoint an eligible successor Authenticating Agent acceptable to
the Company. Any successor Authenticating Agent, upon acceptance of its
appointment hereunder, shall become vested with all the rights, powers and
duties of its predecessor hereunder as if originally named as an Authenticating
Agent pursuant hereto.

 

Section 2.11                                Global
Securities.

 

(a)                                  General.  If the Company shall establish pursuant to Section 2.01
that the Securities of a particular series are to be issued as a Global
Security, then the Company shall execute one or more Global Securities that (i) shall
represent, and shall be denominated in an amount equal to the aggregate
principal amount of, all of the Outstanding Securities of such series, (ii) shall
be registered in the name of the Depositary or its nominee and (iii) shall
be delivered to the Trustee as custodian for the Depositary or otherwise
delivered pursuant to the Depositary’s instructions, and Parent shall execute
the Guarantee or Guarantees thereon, and the Trustee in accordance with Section 2.04
shall authenticate such Global Security or Global Securities.

 

25

 

(b)                                 Euroclear
and Clearstream Procedures Applicable. 
The provisions of the “Operating Procedures of the Euroclear System” and
the “Terms and Conditions Governing Use of Euroclear” and the “General Terms
and Conditions” and “Customer Handbook” of Clearstream, respectively, in effect
at the relevant time shall be applicable to transfers of beneficial interests
in the Regulation S Global Securities of such series that are held by
Participants through Euroclear or Clearstream.

 

Section 2.12                                CUSIP
Numbers.

 

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

 

Section 2.13                                Securities
Denominated in Foreign Currencies.

 

Except as otherwise specified pursuant to Section 2.01 for
Securities of any series, payment of the principal of, premium, if any, and
interest on, Securities of such series denominated in any Foreign Currency will
be made in such Foreign Currency.

 

In the event any Foreign Currency or Currencies in which any payment
with respect to any series of Securities may be made ceases to be a freely
convertible Currency on United States Currency markets, for any date thereafter
on which payment of principal of, premium, if any, or interest on the
Securities of a series is due, the Company shall select the Currency of payment
for use on such date, all as provided in the Securities of such series, in a
Board Resolution or in one or more indentures supplemental hereto. In such
event, the Company shall notify the Trustee of the Currency which it has
selected to constitute the funds necessary to meet the Company’s obligations on
such payment date and of the amount of such Currency to be paid. Such amount
shall be determined as provided in the Securities of such series, in a Board
Resolution or in one or more indentures supplemental hereto. The payment with
respect to such payment date shall be deposited with the Trustee by the Company
solely in the Currency so selected.

 

Section 2.14                                Wire
Transfers.

 

Notwithstanding any other provision to the contrary in this Indenture,
the Company may make any payment required to be deposited with the Trustee or
any Paying Agent on account of principal of, premium, if any, or interest on,
the Securities by any method of wire transfer to an account designated in
writing by the Trustee or such Paying Agent such that funds are available on or
before the date such payment is to be made to the Holders of the Securities in
accordance with the terms hereof. If the Company is acting as its own Paying
Agent with respect to Securities of any series that are represented by one or
more Global Securities, the Company may make any such payment by wire transfer
to an account designated in writing by the Depositary for such Securities.

 

26

 

Section 2.15                                Designated
Currency.

 

The Company may provide pursuant to Section 2.01
for Securities of any series that:

 

(a) the obligation, if any, of the Company to pay the principal
of, premium, if any, and interest on the Securities of any series in a Foreign
Currency or Dollars (the “Designated Currency”)
as may be specified pursuant to Section 2.01(a)(12) is of the
essence and agree that, to the fullest extent possible under applicable law,
judgments in respect of Securities of such series shall be given in the
Designated Currency;

 

(b) the
obligation of the Company to make payments in the Designated Currency of the
principal of, premium, if any, and interest on such Securities shall be
discharged, notwithstanding any payment in any other Currency (whether pursuant
to a judgment or otherwise), only to the extent of the amount in the Designated
Currency that the Securityholder receiving such payment, in accordance with
normal banking procedures, may purchase with the amount paid in such other
Currency after any premium and cost of exchange on the business day in the
country of issue of the Designated Currency or in the international banking
community immediately following the day on which such Securityholder receives
such payment;

 

(c) if
the amount in the Designated Currency that may be so purchased for any reason
falls short of the amount originally due, the Company shall pay such additional
amounts as may be necessary to compensate for such shortfall; and

 

(d) any
obligation of the Company not discharged by such payment shall be due as a
separate and independent obligation and, until discharged as provided herein,
shall continue in full force and effect.

 

Section 2.16                                Form of
Guarantee.

 

The form of Guarantee shall be set forth on the applicable series of
Securities substantially as follows:

 

GUARANTEE

 

For value received, Parent hereby absolutely, unconditionally and
irrevocably guarantees to the holder of this Security the payment of principal
of, premium, if any, and interest on, the Security upon which this Guarantee is
set forth in the amounts and at the time when due and payable whether by
declaration thereof, or otherwise, and interest on the overdue principal and
interest, if any, of such Security, if lawful, to the holder of such Security
and the Trustee on behalf of the Holders, all in accordance with and subject to
the terms and limitations of such Security and Article XV of the
Indenture.  This Guarantee will not
become effective until the Trustee or Authenticating Agent duly executes the
certificate of authentication on this Security. 
This Guarantee shall be governed by and construed in accordance with the
laws of the State of New York, without regard to conflict of law principles
thereof.

 

27

 

Dated:

 

	
   

  	
  TYCO INTERNATIONAL LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
    Name:

  
	
   

  	
    Title:

  

 

ARTICLE III.

 

REDEMPTION OF SECURITIES
AND SINKING FUND PROVISIONS

 

Section 3.01                                Redemption.

 

The Company may redeem the Securities of any series issued hereunder on
and after the dates and in accordance with the terms established for such
series pursuant to Section 2.01 or 14.01.

 

Section 3.02                                Notice
of Redemption.

 

(a)                                  If
the Company desires to exercise such right to redeem all or, as the case may
be, a portion of the Securities of any series, the Company shall, or shall
instruct the Trustee in writing to, give notice of such redemption to holders
of the Securities of such series to be redeemed by mailing, first class postage
prepaid, a notice of such redemption not less than 30 days and not more than 90
days before the date fixed for redemption of that series to such holders at
their last addresses as they shall appear upon the Security Register, unless a
shorter period is specified in the Securities to be redeemed. Any notice that
is mailed in the manner herein provided shall be conclusively presumed to have
been duly given, whether or not the registered holder receives the notice. In any
case, failure duly to give such notice to the holder of any Security of any
series designated for redemption in whole or in part, or any defect in the
notice, shall not affect the validity of the proceedings for the redemption of
any other Securities of such series or any other series. In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officer’s Certificate
evidencing compliance with any such restriction.

 

Each such notice of redemption shall specify the date fixed for
redemption and the redemption price at which Securities of that series are to
be redeemed, and shall state that:  (i) payment
of the redemption price of such Securities to be redeemed will be made at the
office or agency of the Company maintained for such purpose, or, if none, at
the Corporate Trust Office of the Trustee, upon presentation and surrender of
such Securities; (ii) interest accrued to the date fixed for redemption
will be paid as specified in said notice; (iii) from and after said date
interest will cease to accrue; and (iv) the redemption is for a sinking
fund, if such is the case. If less than all the Securities of a series are to
be redeemed, the notice to the holders of Securities of that series to be
redeemed in whole or in part shall specify the particular Securities to be so
redeemed. In case any Security is to be redeemed in part only, the notice that relates
to such Security shall state the portion of the principal amount thereof to be
redeemed, and shall state 

 

28

 

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

 

(b)                                 If
all or less than all the Securities of a series are to be redeemed, the Company
shall give the Trustee at least 45 days’ written notice, unless a shorter
period shall be satisfactory to the Trustee, in advance of the date fixed for
redemption as to the aggregate principal amount of Securities of the series to
be redeemed.  If less than all the
Securities are to be redeemed, the Trustee thereupon shall select from
Securities of such series Outstanding not previously called for redemption, in
accordance with a method that complies
with the requirements, if any,
of any stock exchange on which Securities are listed and that the Trustee
considers fair and appropriate, which may include selection pro rata or by lot,
and that may provide for the selection of a portion or portions equal to $1,000
or any integral multiple thereof of the principal amount of such Securities of
such series of a denomination larger than $1,000, the Securities of such series
to be redeemed.  The Trustee promptly
shall notify the Company in writing of the numbers of the Securities of such
series to be redeemed, in whole or in part.

 

The Company, if and whenever it shall so elect, by delivery of an
Officer’s Certificate, may instruct the Trustee or any paying agent to call all
or any part of the Securities of a particular series for redemption and to give
notice of redemption in the manner set forth in this Section 3.02, such
notice to be in the name of the Company or its own name, as the Trustee or such
paying agent may deem advisable. In any case in which notice of redemption is
to be given by the Trustee or any such paying agent, the Company shall deliver
or cause to be delivered to, or permit to remain with, the Trustee or such
paying agent, as the case may be, such Security Register, transfer books or
other records, or suitable copies or extracts therefrom, sufficient to enable
the Trustee or such paying agent to give any notice by mail that may be
required under the provisions of this Section 3.02.

 

Section 3.03                                Payment
Upon Redemption.

 

(a)                                  If
the giving of notice of redemption shall have been completed as above provided,
the Securities or portions of Securities of the series to be redeemed specified
in such notice shall become due and payable on the date and at the place stated
in such notice at the applicable redemption price, together with interest
accrued to the date fixed for redemption, in each case as established pursuant
to Section 2.01 or 14.01.  Interest
on such Securities or portions of Securities shall cease to accrue on and after
the date fixed for redemption, unless the Company shall default in the payment
of such redemption price and accrued interest with respect to any such Security
or portion thereof. On presentation and surrender of such Securities on or
after the date fixed for redemption at the place of payment specified in the
notice, such Securities shall be paid and redeemed at the applicable redemption
price for such series, together with interest accrued thereon to the date fixed
for redemption (but if the date fixed for redemption is an Interest Payment
Date, the interest installment payable on such date shall be payable to the
registered holder at the close of business on the applicable record date
pursuant to Section 2.01).

 

(b)                                 Upon
presentation of any Security of such series that is to be redeemed in part
only, the Company shall execute a new Security of the same series and tenor of
authorized denominations in principal amount equal to the unredeemed portion of
the Security so presented, 

 

29

 

and Parent shall execute the form of
Guarantee thereon, and the Trustee, upon receipt of an Authentication Order,
shall authenticate, and the office or agency where the Security is presented
shall deliver to the holder thereof, at the expense of the Company, such new
Security; except that if a Global Security is so surrendered, the Company shall
execute a new Global Security of like tenor in a denomination equal to and in
exchange for the unredeemed portion of the principal of the Global Security so
surrendered, and Parent shall execute the form of Guarantee thereon, and, upon
receipt of an Officer’s Certificate requesting authentication and delivery, the
Trustee, upon receipt of an Authentication Order, shall authenticate and
deliver to the Depositary for such Global Security, without service charge,
such new Global Security.

 

Section 3.04                                Sinking
Fund.

 

The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to
any sinking fund for the retirement of Securities of a series, except as
otherwise specified as contemplated by Section 2.01 for Securities of such
series.

 

The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is 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 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 3.05.
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 3.05                                Satisfaction
of Sinking Fund Payments with Securities.

 

The Company (i) may deliver Outstanding Securities of a series
other than any Securities previously called for redemption and (ii) may
apply as a credit Securities of a series that 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, 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 3.06                                Redemption
of Securities for Sinking Fund.

 

Not less than 30 days prior to each sinking fund payment date for any
series of Securities, 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 the series, the portion thereof, if any,
that is to be satisfied by payment of cash in the Currency in which the
Securities of such series are denominated (except as provided pursuant to Section 2.01),
the portion thereof, if any, that is to be satisfied by delivering and
crediting Securities of that series pursuant to Section 3.05 and the basis
for such credit.  Together with such
Officer’s Certificate, the Company will deliver to the Trustee any Securities
to be so delivered. Not less than 30 days 

 

30

 

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 3.02 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 3.02. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Section 3.03.

 

ARTICLE IV.

 

CERTAIN COVENANTS

 

The following covenants shall apply to the Securities, except with
respect to any series of Securities for which the supplemental indenture or
resolution of the Board of Directors under which such series of Securities is
issued or the form of Security for such series expressly provides that any such
covenant shall not apply to such series of Securities:

 

Section 4.01                                Payment
of Principal, Premium and Interest.

 

The Company will duly and punctually pay or cause to be paid the
principal of, premium, if any, and interest on the Securities of a series at
the time and place and in the manner provided herein and established with
respect to such Securities.

 

Section 4.02                                Maintenance
of Office or Agency.

 

So long as any series of the Securities remain Outstanding, the Company
will maintain for such series an office or agency where Securities of such
series may be presented or surrendered for payment, where Securities of such
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 such
series and this Indenture may be given or served.  Such designation will continue with respect to
each office or agency until the Company, by written notice signed by any
Officer and delivered to the Trustee, shall designate some other office or
agency for such purposes or any of them. 
If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all presentations, surrenders, notices and
demands.  Unless otherwise specified in
accordance with Section 2.01 with respect to a series of Securities, the
Company initially designates the Corporate Trust Office of Deutsche Bank Trust
Company Americas, 60 Wall Street, 27th Floor, MSNYC6-2710, New York, New York
10005, acting as the Company’s agent, as the office to be maintained by it for
each such purpose.

 

Section 4.03                                Paying
Agents.

 

(a)                                  The
Company, upon written notice to the Trustee accompanied by an Officer’s
Certificate, may appoint one or more paying agents, other than the Trustee, for
all or any series of the Securities. If the Company fails to appoint or
maintain another entity as paying agent, the Trustee shall act as such. Parent,
the Company or any of their Subsidiaries, upon notice to the Trustee, may act
as paying agent.

 

31

 

(b)                                 The
Company shall require each paying agent, other than Parent, the Company and the
Trustee, to agree in writing with the Company, and the Company shall deliver a
copy of such agreement to the Trustee, that the paying agent will hold in trust
for the benefit of Securityholders or the Trustee all funds held by the paying
agent for the payment of principal, premium, if any, or interest on the
Securities, and will promptly notify the Trustee in writing of any default by
the Company in making any such payment. 
While any such default continues, the Trustee may require a paying agent
to pay all funds held by it to the Trustee. 
The Company at any time may require a paying agent to pay all funds held
by it to the Trustee.  Upon payment over
to the Trustee, the paying agent, if other than Parent or the Company, shall
have no further liability for the funds. If Parent or the Company acts as
paying agent, it shall segregate and hold in a separate trust fund for the
benefit of the Securityholders all funds held by it as paying agent.

 

(c)                                  Notwithstanding
anything in this Section 4.03 to the contrary, (i) the agreement to
hold funds in trust as provided in this Section 4.03 is subject to the
provisions of Section 11.06, and (ii) the Company at any time, for
the purpose of obtaining the satisfaction and discharge or defeasance of this
Indenture or for any other purpose, may 
pay, or direct any paying agent to pay, to the Trustee all funds held in
trust by the Company or such paying agent, such funds to be held by the Trustee
upon the same terms and conditions as those upon which such funds were held by
the Company or such paying agent.  Upon
such payment by any paying agent to the Trustee, such paying agent shall be
released from all further liability with respect to such funds.

 

Section 4.04                                Statement
by Officers as to Default.

 

So long as any of the Securities remain outstanding, the Company and
Parent will furnish to the Trustee on or before March 31 in each year a
certificate, which need not comply with Section 13.06, executed by the
principal executive, financial or accounting officer of each of the Company and
Parent on their respective behalf as to his or her knowledge of the Company’s
or Parent’s, as the case may be, compliance with all covenants and agreements
under this Indenture required to be complied with by the Company and Parent,
respectively (such compliance to be determined without regard to any period of
grace or requirement of notice provided under this Indenture).  Such certificate need not include a reference
to any non-compliance that has been fully cured prior to the date as of which
such certificate speaks.

 

The Company shall provide written notice to the Trustee within 30 days
of the occurrence of any Event of Default under Section 6.01.

 

Section 4.05                                Appointment
to Fill Vacancy in Office of Trustee.

 

The Company, whenever necessary to avoid or to fill a vacancy in the
office of Trustee, will appoint, in the manner provided in Section 7.10, a
Trustee, so that there shall be at all times a Trustee hereunder.

 

32

 

ARTICLE V.

 

SECURITYHOLDERS’ LISTS
AND REPORTS BY THE COMPANY AND

THE TRUSTEE

 

Section 5.01                                Company
to Furnish Trustee Names and Addresses of Securityholders.

 

The Company will furnish or cause to be furnished to the Trustee (a) semi-annually
at least seven Business Days before each Interest Payment Date for a series of
Securities (and in all events at intervals of not more than six months) a list,
in such form as the Trustee may reasonably require, of the names and addresses
of the holders of each series of Securities as of such date, provided that the
Company shall not be obligated to furnish or cause to furnish such list at any
time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the
Trustee may require 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,
in either case, no such list need be furnished for any series for which the
Trustee shall be the Security Registrar.

 

Section 5.02                                Preservation
of Information; Communications with Securityholders.

 

(a)                                  The
Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Securities
contained in the most recent list furnished to it as provided in Section 5.01
and as to the names and addresses of holders of Securities received by the
Trustee in its capacity as Security Registrar (if acting in such capacity).

 

(b)                                 Securityholders
may communicate as provided in Section 312(b) of the Trust Indenture
Act with other Securityholders with respect to their rights under this
Indenture or under the Securities. Each Securityholder, by receiving and
holding a Security, agrees with Parent, the Company and the Trustee that none
of Parent, the Company or the Trustee or 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 this Section 5.02(b),
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under this Section 5.02(b).

 

Section 5.03                                Reports
by the Company.

 

(a)                                  So
long as any Securities are outstanding, the Company shall file with the
Trustee, within 15 days after Parent files with the Commission, copies of the
annual reports and of the information, documents and other reports (or copies
of such portions of any of the foregoing as the Commission may from time to
time by rules and regulations prescribe) that Parent may be required to
file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act.  The Company shall be
deemed to have complied with the previous sentence to the extent that such
information, documents and reports are filed with the Commission via EDGAR (or
any successor electronic delivery procedure).

 

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

 

33

 

Section 5.04                                Reports
by the Trustee.

 

(a)                                  Any
Trustee’s report required under Section 313(a) of the Trust Indenture
Act shall be transmitted on or before July 15 in each year following the
date hereof, so long as any Securities are outstanding hereunder, and shall be
dated as of a date convenient to the Trustee no more than 60 nor less than 45
days prior thereto.

 

(b)                                 The
Trustee shall comply with Section 313(b) and Section 313(c) of the Trust
Indenture Act.

 

(c)                                  A
copy of each Trustee’s report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with the Company, with any stock
exchange upon which any Securities are listed and with the Commission. The
Company agrees to notify the Trustee when any Securities become listed on any
stock exchange or delisted therefrom.

 

ARTICLE VI.

 

REMEDIES OF THE TRUSTEE
AND SECURITYHOLDERS ON

EVENT OF DEFAULT

 

Section 6.01                                Events
of Default.

 

(a)                                  Whenever
used herein with respect to Securities of a particular series, “Event of Default” means any one or more of
the following events that has occurred and is continuing, except with respect
to any series of Securities for which the supplemental indenture or resolution
of the Board of Directors under which such series of Securities is issued or
the form of Security for such series expressly provides that any such Event of
Default shall not apply to such series of Securities:

 

(1)                                  default
in the payment of any installment of interest upon any of the Securities of
such series as and when the same shall become due and payable, and continuance
of such default for a period of 30 days; or

 

(2)                                  default
in the payment of all or any part of the principal of or premium, if any, on
any of the Securities of such series as and when the same shall become due and
payable either at maturity, upon redemption, by declaration or otherwise; or

 

(3)                                  default
in the payment of any sinking fund installment as and when the same shall
become due and payable by the terms of the Securities of such series; or

 

(4)                                  default
in the performance, or breach, of any covenant or agreement of Parent or the
Company in respect of the Securities of such series and the related Guarantee
(other than a default or breach that is specifically dealt with elsewhere in
this Section 6.01), and continuance of such default or breach for a period
of 90 days after the date on which there has been given, by registered or
certified mail, to Parent and the Company by the Trustee or to Parent, the
Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities of such series, a written notice specifying such
default or breach and requiring it to be remedied and stating that such notice
is a “Notice of Default” hereunder; or

 

34

 

(5)                                  the
Guarantee with respect to the Securities of such series shall for any reason
cease to be, or shall for any reason be asserted in writing by Parent or the
Company not to be, in full force and effect and enforceable in accordance with
its terms except to the extent contemplated by this Indenture and such
Guarantee; or

 

(6)                                  a
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company or Parent in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee or
sequestrator or similar official of the Company or Parent or for any
substantial part of its property or ordering the winding up or liquidation of
its affairs, and such decree or order shall remain unstayed and in effect for a
period of 90 consecutive days; or

 

(7)                                  the
Company or Parent shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
consent to the entry of an order for relief in an involuntary case under any
such law, or consent to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee or sequestrator or similar official of
the Company or Parent or for any substantial part of its property, or make any
general assignment for the benefit of creditors; or

 

(8)                                  any
other Event of Default provided in the supplemental indenture or resolution of
the Board of Directors under which such series of Securities is issued or in
the form of Security for such series.

 

(b)                                 If an Event of Default shall have occurred
and be continuing in respect of the Securities of a series, in each and every
such case, unless the principal of all the Securities of that series shall have
already become due and payable, either the Trustee or the holders of not less
than 25% in aggregate principal amount of the Securities of that series then
Outstanding hereunder, by notice in writing to Parent and the Company, and to
the Trustee if given by such Securityholders, may declare the unpaid principal
of all the Securities of that series to be due and payable immediately, and
upon any such declaration the same shall become and shall be immediately due
and payable, notwithstanding anything contained in this Indenture or in the
Securities of that series or established with respect to that series pursuant
to Section 2.01 to the contrary.

 

(c)                                  The Trustee shall give to the Securityholders
of any series, as the names and addresses of such Holders appear on the
Security Register, notice by mail of all defaults known to the Trustee that
have occurred with respect to such series, such notice to be transmitted within
90 days after the occurrence thereof, unless such defaults shall have been
cured before the giving of such notice (the term “default” or “defaults” for
the purposes of this Section 6.01(c) being hereby defined to mean any
event or condition which is, or with notice or lapse of time or both would
become, an Event of Default); provided that, except in the case of default in
the payment of the principal of, premium, if any, or interest on any of the
Securities of such series, or in the payment of any sinking or purchase fund
installment with respect to the Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee, or a trust committee of directors or trustees and/or
Responsible Officers 

 

35

 

in good faith determines that the withholding of such notice is in the
interests of the Securityholders of such series.

 

Section 6.02                                Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

(a)                                  The
Company covenants that (i) in case it shall default in the payment of any
installment of interest on any of the Securities of a series, or any payment
required by any sinking or analogous fund established with respect to that
series as and when the same shall have become due and payable, and such default
shall have continued for a period of 30 days, or (ii) in case it shall
default in the payment of the principal of, or premium, if any, on any of the
Securities of a series when the same shall have become due and payable, whether
upon maturity of the Securities of a series or upon redemption or upon
declaration or otherwise, then, upon demand of the Trustee, the Company will
pay to the Trustee, for the benefit of the holders of the Securities of that
series, the whole amount that then shall have been become due and payable on
all such Securities for principal, premium, if any, or interest, or both, with
interest upon the overdue principal, premium, if any, and, to the extent that
payment of such interest is enforceable under applicable law, upon overdue
installments of interest at the rate expressed in the Securities of that
series; and, in addition thereto, such further amount as shall be sufficient to
cover the costs and expenses of collection, and the amount payable to the
Trustee under Section 7.06.

 

(b)                                 If
the Company shall fail to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, shall be entitled
and empowered to institute any action or proceedings at law or in equity for
the collection of the amounts so due and unpaid, and may prosecute any such
action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or Parent  and collect the amounts adjudged or decreed
to be payable in the manner provided by law out of the property of the Company
or Parent, wherever situated.

 

(c)                                  In
case of any receivership, insolvency, liquidation, bankruptcy, reorganization,
readjustment, arrangement, composition or judicial proceedings affecting the
Company or Parent or its respective creditors or property, the Trustee shall
have power to intervene in such proceedings and take any action therein that
may be permitted by the court and, except as otherwise provided by law, shall
be entitled to file such proofs of claim and other papers and documents as may
be necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and
payable by the Company under this Indenture at the date of institution of such
proceedings and for any additional amount that may become due and payable by
the Company after such date, and to collect and receive any funds or other
property payable or deliverable on any such claim, and to distribute the same
in accordance with Section 6.03. 
Any receiver, assignee or trustee in bankruptcy or reorganization is
hereby authorized by each of the holders of Securities of such series to make
such payments to the Trustee, and, in the event that the Trustee shall consent
to the making of such payments directly to such Securityholders, to pay to the
Trustee any amount due it under Section 7.06.

 

(d)                                 All
rights of action and of asserting claims under this Indenture, or under any of
the terms established with respect to Securities of that series, may be
enforced by the Trustee without the possession of any of such Securities, or
the production thereof at any trial or other 

 

36

 

proceeding relative thereto.  Any such suit or 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 payment to the Trustee of
any amounts due under Section 7.06, be for the ratable benefit of the
holders of the Securities of such series.

 

In case of an Event of Default, the Trustee in its discretion or in
accordance with the direction of the holders of a majority in aggregate
principal amount of the Securities of any series at the time Outstanding may
proceed to protect and enforce the rights vested in it by this Indenture by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any of such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant
or agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

 

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

 

Section 6.03                                Application
of Funds Collected.

 

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

 

FIRST: To the payment of costs and expenses of collection and of all
amounts payable to the Trustee under Section 7.06;

 

SECOND: To the payment of all senior indebtedness of the Company if and
to the extent required by Article XVI;

 

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

 

FOURTH: To the Company.

 

Section 6.04                                Limitation
on Suits.

 

No holder of any Security of any series shall have any right by virtue
or by availing of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless (i) such holder previously shall have given to
the Trustee 

 

37

 

written notice of an Event of Default and of
the continuance thereof with respect to the Securities of such series
specifying such Event of Default; (ii) the holders of not less than 25% in
aggregate principal amount of the Securities of such series then Outstanding
shall have made written request upon the Trustee to institute such action, suit
or proceeding in its own name as trustee hereunder; (iii) such holder or
holders shall have offered to the Trustee such reasonable indemnity as it may
require against the costs, expenses and liabilities to be incurred therein or
thereby; (iv) the Trustee for 60 days after its receipt of such notice,
request and offer of indemnity, shall have failed to institute any such action,
suit or proceeding; and (v) during such 60 day period, the holders of a
majority in principal amount of the Securities of that series do not give the
Trustee a direction inconsistent with the request.

 

Notwithstanding anything contained herein to the contrary, any other
provisions of this Indenture, the right of any holder of any Security to
receive payment of the principal of, and premium, if any, and interest on such
Security, as therein provided, on or after the respective due dates expressed
in such Security or, in the case of redemption, on the redemption date, or to
institute suit for the enforcement of any such payment on or after such
respective dates or redemption date, shall not be impaired or affected without
the consent of such holder.  By accepting
a Security hereunder it is expressly understood, intended and covenanted by the
taker and holder of every Security of such series with every other such taker
and holder and the Trustee, that no one or more holders of Securities of such
series shall have any right in any manner whatsoever by virtue or by availing
of any provision of this Indenture to affect, disturb or prejudice the rights
of the holders of any other of such Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities of such series. For the
protection and enforcement of the provisions of this Section 6.04, each
Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

 

Section 6.05                                Rights
and Remedies Cumulative; Delay or Omission not Waiver.

 

(a)                                  Except
as otherwise provided in Section 2.07, all powers and remedies given by
this Article VI to the Trustee or to the Securityholders, to the extent
permitted by law, shall be deemed cumulative and not exclusive of any other
powers and remedies available to the Trustee or the holders of the Securities,
by judicial proceedings or otherwise, to enforce the performance or observance
of the covenants and agreements contained in this Indenture or otherwise
established with respect to such Securities.

 

(b)                                 No
delay or omission of the Trustee or of any holder of any of the Securities to
exercise any right or power accruing upon any Event of Default occurring and
continuing shall impair any such right or power, or shall be construed to be a
waiver of any such default or an acquiescence therein.  Subject to the provisions of Section 6.04,
every power and remedy given by this Article VI or by law to the Trustee
or the Securityholders may be exercised from time to time, and as often as
shall be deemed expedient, by the Trustee or by the Securityholders.

 

38

 

Section 6.06                                Control
by Securityholders.

 

(a)                                  The
holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding, determined in accordance with Section 8.04,
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 such series; provided, however,
that such direction shall not be in conflict with any rule of law or with
this Indenture or be unduly prejudicial to the rights of holders of Securities
of any other series at the time Outstanding determined in accordance with Section 8.04.
Subject to the provisions of Section 7.01, the Trustee shall have the
right to decline to follow any such direction if the Trustee in good faith, by
a Responsible Officer or Responsible Officers of the Trustee, shall determine
that the proceeding so directed would involve the Trustee in personal
liability.

 

(b)                                 In
the case of an Event of Default with respect to a series of Securities, at any
time before the principal of the Securities of that series shall have been
declared due and payable, the holders of a majority in aggregate principal
amount of the Securities of such series at the time Outstanding, determined in
accordance with Section 8.04, on behalf of the holders of all of the
Securities of such series, by written
notice to Parent and the Company and the Trustee, may waive any existing
default in the performance of any of the covenants contained herein or established
pursuant to Section 2.01 with respect to such series and its consequences,
except a default in the payment of the principal of, premium, if any, or
interest on, any of the Securities of that series as and when the same shall
become due by the terms of such Securities. 
Upon any such waiver, the default covered thereby and any Event of
Default arising therefrom shall be deemed to be cured for all purposes of this
Indenture and the Company, the Trustee and the holders of the Securities of
such series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other
default or impair any right consequent thereon.

 

(c)                                  At any time after the principal of the
Securities of that series shall have been declared due and payable, and before
any judgment or decree for the payment of the amount due shall have been
obtained or entered as hereinafter provided, the holders of a majority in
aggregate principal amount of the Securities of that series at the time
Outstanding hereunder, by written notice to Parent and the Company and the
Trustee, may rescind and annul such declaration and its consequences if: (i) the
Company has or has caused to be paid or deposited with the Trustee an amount
sufficient to pay all matured installments of interest upon all the Securities
of that series and the principal of and premium, if any, on any and all
Securities of that series that shall have become due otherwise than by
acceleration, with interest upon such principal and premium, if any, and, to
the extent that such payment is enforceable under applicable law, upon overdue
installments of interest, at the rate expressed in the Securities of that
series to the date of such payment or deposit, and (ii) any and all Events
of Default under this Indenture with respect to such series, except
non-payment of the principal of, premium, if any, or interest on, any of the
Securities of that series as a result of such declaration, shall have been remedied or waived. No such
rescission and annulment shall extend to or shall affect any subsequent default
or impair any right consequent thereon.

 

(d)                                 In case the Trustee shall have proceeded to
enforce any right with respect to Securities of that series under this
Indenture and such proceedings shall have been discontinued 

 

39

 

or abandoned because of such rescission or annulment or for any other
reason or shall have been determined adversely to the Trustee, then and in
every such case the Company and the Trustee shall be restored respectively to
their former positions and rights hereunder, and all rights, remedies and
powers of the Company and the Trustee shall continue as though no such
proceedings had been taken.

 

Section 6.07                                Undertaking
to Pay Costs.

 

All parties to this Indenture agree, and each holder of any Securities
by such holder’s 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 or omitted by it as Trustee, the filing by any party litigant
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 and expenses, 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 6.07 shall not apply to
any suit instituted by the Trustee, to any suit instituted by any
Securityholder, or group of Securityholders, holding more than 10% in aggregate
principal amount of the Outstanding Securities of any series, or to any suit
instituted by any Securityholder for the enforcement of the payment of the
principal of, premium, if any, or interest on any Security of such series, on
or after the respective due dates expressed in such Security or established
pursuant to this Indenture.

 

Section 6.08                                Waiver
Of Usury, Stay Or Extension Laws.

 

Each of Parent and the Company covenants, to the extent that it may
lawfully do so, that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any usury, stay or
extension law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and each of
Parent 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, by resort to any such law, 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 VII.

 

CONCERNING THE TRUSTEE

 

Section 7.01                                Certain
Duties and Responsibilities of Trustee.

 

(a)                                  In
case an Event of Default with respect to the Securities of a series has
occurred (that has not been cured or waived), the Trustee shall exercise with
respect to Securities of that series 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 person would exercise or use under the circumstances in the
conduct of his or her own affairs.

 

40

 

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

 

(1)                                  prior
to the occurrence of an Event of Default with respect to the Securities of a
series and after the curing or waiving of all such Events of Default with
respect to that series that may have occurred:

 

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

 

 (ii)                      in the absence of bad faith on
the part of the Trustee, the Trustee with respect to the Securities of such
series may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any 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 that by any
provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical computations or other facts,
statements and opinions stated therein);

 

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

 

(3)                                  the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the holders of
not less than a majority in principal amount of the Securities of any series at
the time Outstanding 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 that series; and

 

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

 

Section 7.02                                Certain
Rights of Trustee.

 

Except as otherwise provided in Section 7.01:

 

41

 

(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, consent, order, approval, bond, security or
other paper or document (whether in its
original or facsimile form) believed by it to be genuine and to have been
signed or presented by the proper party or parties.

 

(b)                                 Any
request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a Board Resolution or an instrument signed in the
name of the Company by an Officer (unless other evidence in respect thereof is
specifically prescribed herein).

 

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

 

(d)                                 The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Securityholders, pursuant to the provisions of this Indenture, unless such
Securityholders shall have offered to the Trustee indemnity satisfactory to it
against the costs, expenses and liabilities that may be incurred therein or
thereby.

 

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

 

(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, consent, order, approval, bond, security or other papers or
documents, but the Trustee, in its discretion, may make such further inquiry
into such 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
at the sole cost of the Company and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation.

 

(g)                                 The
Trustee shall not be deemed to have notice of any 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.

 

(h)                                 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.

 

(i)                                     The
rights, privileges, protections and immunities given to the Trustee, including
its right to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

 

42

 

(j)                                     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.

 

Section 7.03                                Trustee
not Responsible for Recitals or Issuance of Securities.

 

(a)                                  The
recitals contained herein and in the Securities shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same.

 

(b)                                 The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities.

 

(c)                                  The
Trustee shall not be accountable for the use or application by the Company of
any of the Securities or of the proceeds of such Securities, or for the use or
application of any funds paid over by the Trustee in accordance with any
provision of this Indenture or established pursuant to Section 2.01, or
for the use or application of any funds received by any paying agent other than
the Trustee.

 

Section 7.04                                May Hold
Securities.

 

The Trustee or any paying agent or Security Registrar, in its
individual or any other capacity, may become the owner or pledgee of Securities
with the same rights it would have if it were not Trustee, paying agent or
Security Registrar. However, the Trustee is subject to Sections 7.08 and 7.13.

 

Section 7.05                                Funds
Held in Trust.

 

Subject to the provisions of Section 11.06, all funds received by
the Trustee, until used or applied as herein provided, shall be held in trust
for the purposes for which they were received, but need not be segregated from
other funds except to the extent required by law. The Trustee shall be under no
liability for interest on any funds received by it hereunder except such as it
may agree with the Company to pay thereon.

 

Section 7.06                                Compensation
and Reimbursement.

 

(a)                                  The
Company shall pay to the Trustee, and the Trustee shall be entitled to be paid,
such compensation, which shall not be limited by any provision of law in regard
to the compensation of a trustee of an express trust, as the Company and the
Trustee from time to time may agree in writing, for all services rendered by it
in the execution of the trusts hereby created and in the exercise and
performance of any of the powers and duties hereunder of the Trustee.  Except as otherwise expressly provided
herein, the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses and disbursements incurred or made by the Trustee in
accordance with any of the provisions of this Indenture, including the
reasonable compensation and the expenses and disbursements of its counsel and
of all Persons not regularly in its employ, except any such expense or
disbursement as may arise from its own negligence or bad faith. The Company and
Parent shall indemnify the Trustee (and its officers, agents, 

 

43

 

directors and employees) for, and shall hold
it harmless against, any and all loss, liability, claim, damage or expense,
including taxes, other than taxes based upon, measured by or determined by the
income of the Trustee, reasonably incurred by the Trustee without negligence or
bad faith on its part and arising out of or in connection with the acceptance
or administration or enforcement of this trust, including the reasonable costs
and expenses of defending itself against any claim of liability whether
asserted by the Company, any Holder or any other Person.

 

(b)                                 The
obligations of the Company under this Section 7.06 to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for expenses and
disbursements shall: (i) be secured by a lien prior to that of the
Securities upon all property and funds held or collected by the Trustee as
such, except funds held in trust for the benefit of the holders of particular
Securities; and (ii) survive the termination of this Indenture and
resignation or removal of the Trustee.

 

(c)                                  Where
the Trustee incurs expenses or renders services in connection with a bankruptcy
event of default, such costs and expenses (including reasonable attorneys’ fees
and expenses) and the compensation for the services are intended to constitute
expenses of administration under applicable Federal or state, bankruptcy,
insolvency or other law.

 

Section 7.07                                Reliance
on Officer’s Certificate.

 

Except as otherwise provided in Section 7.01, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking
or suffering or omitting to take any action hereunder, such matter, unless
other evidence in respect thereof be herein specifically prescribed, in the
absence of negligence or bad faith on the part of the Trustee, may be deemed to
be conclusively proved and established by an Officer’s Certificate delivered to
the Trustee and such certificate, in the absence of negligence or bad faith on
the part of the Trustee, shall be full warrant to the Trustee for any action
taken, suffered or omitted to be taken by it under the provisions of this
Indenture upon the faith thereof.

 

Section 7.08                                Disqualification;
Conflicting Interests.

 

If the Trustee has or shall acquire any “conflicting interest” within
the meaning of Section 310(b) of the Trust Indenture Act, the Trustee
and the Company shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

 

Section 7.09                                Corporate
Trustee Required; Eligibility.

 

There shall at all times be a Trustee with respect to the Securities
issued hereunder which shall at all times be a corporation organized and doing
business under the laws of the United States or any State or Territory thereof
or of the District of Columbia, or a corporation or other Person permitted to
act as trustee by the Commission, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least
$100,000,000, and subject to supervision or examination by Federal, State, Territorial,
or District of Columbia authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this Section 7.09
the combined capital and surplus of such corporation shall be deemed to be its 

 

44

 

combined capital and surplus as set forth in
its most recent report of condition so published. The Company may not, nor may
any Affiliate of the Company, serve as Trustee. In case at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section 7.09,
the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.10.

 

Section 7.10                                Resignation
and Removal; Appointment of Successor.

 

(a)                                  The
Trustee or any successor hereafter appointed may resign at any time with
respect to the Securities of one or more series by giving written notice
thereof to the Company and by transmitting notice of resignation by mail, first
class postage prepaid, to the Securityholders of such series, as their names
and addresses appear upon the Security Register.  Upon receiving such notice of resignation, the
Company promptly shall appoint a successor trustee with respect to Securities
of such series. If no successor trustee shall have been so appointed and have
accepted appointment within 60 days after the retiring Trustee resigns, the
retiring Trustee, at the expense of the Company, or the Company may petition
any court of competent jurisdiction for the appointment of a successor trustee
with respect to Securities of such series, or any Securityholder of that series
who has been a bona fide holder of a Security or Securities for at least six months
may on behalf of himself and all others similarly situated, petition any such
court for the appointment of a successor trustee. Such court may thereupon
after such notice, if any, as it may deem proper and prescribe, appoint a
successor trustee.

 

(b)                                 In
case at any time any one of the following shall occur, the Company may remove
the Trustee with respect to all or any series of Securities and appoint a
successor trustee, or, unless the Trustee’s duty to resign is stayed as
provided herein, any Securityholder who has been a bona fide holder of a
Security or Securities for at least six months, on behalf of that holder and
all others similarly situated, may petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor trustee:

 

(1)                                  the
Trustee shall fail to comply with the provisions of Section 7.08 after
written request therefor by the Company or by any Securityholder who has been a
bona fide holder of a Security or Securities for at least six months; or

 

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

 

(3)                                  the
Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the
Trustee or of its property shall be appointed or consented to, 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.

 

Such court may thereupon after such notice, if any, as it may deem
proper and prescribe, remove the Trustee and appoint a successor trustee. If an
instrument of acceptance by a successor Trustee shall not have been delivered
to the Trustee within 30 days after the giving of such notice of removal, the
Trustee being removed may petition, at the expense of the Company, any court of

 

45

 

competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

 

(c)                                  The
holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding at any time may remove the Trustee with respect
to such series by so notifying the Trustee and the Company and may appoint a
successor Trustee for such series with the consent of the Company.

 

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

 

(e)                                  Any
successor trustee appointed pursuant to this Section 7.10 may be appointed
with respect to the Securities of one or more series or all of such series, and
at any time there shall be only one Trustee with respect to the Securities of
any particular series.

 

Section 7.11                                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.  On the request of the Company or the
successor trustee, such retiring Trustee, upon payment of its charges, shall
execute and deliver an instrument transferring to such successor trustee all
the rights, powers, and trusts of the retiring Trustee and shall assign,
transfer and deliver to such successor trustee all property and funds held by
such retiring Trustee hereunder.

 

(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) 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, 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 that no Trustee shall be responsible for any act or failure to
act on the part of any other Trustee hereunder. 
Upon the execution and 

 

46

 

delivery of such supplemental indenture the
resignation or removal of the retiring Trustee shall become effective to the
extent provided therein, and such retiring Trustee shall have no further
responsibility with respect to the Securities of that or those series to which
the appointment of such successor trustee relates for the exercise of rights
and powers or for the performance of the duties and obligations vested in the
Trustee under this Indenture.  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.  On
request of the Company or any successor trustee, such retiring Trustee shall
assign, transfer and deliver to such successor trustee, to the extent
contemplated by such supplemental indenture, the property and funds 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 may 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 Section 7.11(a) or
(b), 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 VII.

 

(e)                                  Upon
acceptance of appointment by a successor trustee as provided in this Section 7.11,
the successor trustee shall cause a notice of its succession to be transmitted
to Securityholders.

 

Section 7.12                                Merger,
Conversion, Consolidation or Succession to Business.

 

Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be qualified under the provisions of Section 7.08
and eligible under the provisions of Section 7.09, without the execution
or filing of any paper or any further act on the part of any of the parties
hereto. 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 7.13                                Preferential
Collection of Claims Against the Company.

 

The Trustee shall comply with Section 311(a) of the Trust
Indenture Act, excluding any creditor relationship described in Section 311(b) of
the Trust Indenture Act. A Trustee who has resigned or been removed shall
continue to be subject to Section 311(a) of the Trust Indenture Act.

 

47

 

ARTICLE VIII.

 

CONCERNING THE
SECURITYHOLDERS

 

Section 8.01                                Evidence
of Action by Securityholders.

 

Whenever in this Indenture it is provided that the holders of a
majority or specified percentage in aggregate principal amount of the
Securities of a particular series may take any action (including the making of
any demand or request, the giving of any notice, consent or waiver or the
taking of any other action), the fact that at the time of taking any such
action the holders of such majority or specified percentage of that series have
joined therein may be evidenced by any instrument or any number of instruments
of similar tenor executed by such holders of Securities of that series in
Person or by agent or proxy appointed in writing.

 

If the Company shall solicit from the Securityholders of any series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company, at its option, as evidenced by an Officer’s Certificate,
may fix in advance a record date for such series for the determination of
Securityholders entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other action, but the Company shall have no
obligation to do so. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of Outstanding Securities of that series have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other action, and for that purpose the Outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

 

Section 8.02                                Proof
of Execution by Securityholders.

 

Subject to the provisions of Section 7.01, proof of the execution
of any instrument by a Securityholder (such proof will not require
notarization) or his agent or proxy and proof of the holding by any Person of
any of the Securities shall be sufficient if made in the following manner:

 

(a)                                  The
fact and date of the execution by any such Person of any instrument may be
proved in any reasonable manner acceptable to the Trustee.

 

(b)                                 The
ownership of Securities shall be proved by the Security Register of such
Securities or by a certificate of the Security Registrar thereof.

 

(c)                                  The
Trustee may require such additional proof of any matter referred to in this Section 8.02
as it shall deem necessary.

 

48

 

Section 8.03                                Who
May be Deemed Owners.

 

Prior to the due presentment for registration of transfer of any
Security, the Company, the Trustee, any paying agent and any Security Registrar
may deem and treat the Person in whose name such Security shall be registered
upon the books of the Company as the absolute owner of such Security, whether
or not such Security shall be overdue and notwithstanding any notice of
ownership or writing thereon made by anyone other than the Security Registrar,
for the purpose of receiving payment of or on account of the principal of,
premium, if any, and (subject to Section 2.03) interest on such Security
and for all other purposes; and neither the Company nor the Trustee nor any
paying agent nor any Security Registrar shall be affected by any notice to the
contrary.

 

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

 

Section 8.04                                Certain
Securities Owned by Company Disregarded.

 

In determining whether the holders of the requisite aggregate principal
amount of Securities of a particular series have concurred in any direction,
consent of waiver under this Indenture, the Securities of that series that are
owned by Parent, the Company or any other obligor on the Securities of that
series or by an Affiliate of Parent or the Company shall be disregarded and
deemed not to be Outstanding for the purpose of any such determination, except
that for the purpose of determining whether the Trustee shall be protected in
relying on any such direction, consent or waiver, only Securities of such
series that a Responsible Officer of the Trustee knows are so owned shall be so
disregarded. The Securities so owned that have been pledged in good faith may
be regarded as Outstanding for the purposes of this Section 8.04, if the pledgee
shall establish to the satisfaction of the Trustee the pledgee’s right so to
act with respect to such Securities and that the pledgee is not an Affiliate.
In case of a dispute as to such right, any decision by the Trustee taken upon
the advice of counsel shall be full protection to the Trustee.  Upon request of the Trustee, the Company
shall furnish to the Trustee promptly an Officer’s Certificate listing and
identifying all Securities of a particular series, if any known by Parent or
the Company to be owned or held by or for the account of any of the above
described Persons and, subject to Sections 7.01 and 7.02, the Trustee shall be
entitled to accept such Officer’s Certificate as conclusive evidence of the
facts therein set forth and of the fact that all Securities of such particular
series not listed therein are Outstanding for the purpose of any such
determination.

 

Section 8.05                                Actions
Binding on Future Securityholders.

 

At any time prior to the evidencing to the Trustee, as provided in Section 8.01,
of the taking of any action by the holders of the majority or percentage in
aggregate principal amount of the Securities of a particular series specified
in this Indenture in connection with such action, any holder of a Security of
that series that is shown by the evidence to be included in the Securities the
holders of which have consented to such action, by filing written notice with
the Trustee, and upon proof of holding as provided in Section 8.02, may
revoke such action so far as 

 

49

 

concerns such Security. Except as aforesaid
any such action taken by the holder of any Security shall be conclusive and
binding upon such holder and upon all future holders and owners of such
Security, and of any Security issued in exchange therefor, on registration of
transfer thereof or in place thereof, irrespective of whether or not any
notation in regard thereto is made upon such Security. Any action taken by the
holders of the majority or percentage in aggregate principal amount of the
Securities of a particular series specified in this Indenture in connection
with such action shall be conclusively binding upon the Company, the Trustee
and the holders of all the Securities of that series.

 

ARTICLE IX.

 

SUPPLEMENTAL INDENTURES

 

Section 9.01                                Supplemental
Indentures Without the Consent of Securityholders.

 

In addition to any supplemental indenture otherwise authorized by this
Indenture, Parent, the Company and the Trustee from time to time and at any
time may enter into an indenture or indentures supplemental hereto which shall
conform to the provisions of the Trust Indenture Act as then in effect, without
the consent of the holders of any series of Securities, for one or more of the
following purposes:

 

(a)                                  to
cure any ambiguity, defect, or inconsistency herein or in the Securities of any
series, including making such changes as are required for this Indenture to
comply with the Trust Indenture Act;

 

(b)                                 to
add an additional obligor on the Securities, or to evidence the succession of
another Person to Parent or the Company, or successive successions, and the
assumption by the successor Person of the covenants, agreements and obligations
of Parent or the Company, as the case may be, pursuant to Article X;

 

(c)                                  to
provide for uncertificated Securities in addition to or in place of
certificated Securities;

 

(d)                                 to
add to the covenants of the Company for the benefit of the holders of any
outstanding series of Securities (and if such covenants are to be for the
benefit of less than all outstanding 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 Parent or the Company;

 

(e)                                  to
add any additional Events of Default for the benefit of the holders of any
outstanding series of Securities (and if such Events of Default are to be
applicable to less than all outstanding series, stating that such Events of
Default are expressly being included solely to be applicable to such series);

 

(f)                                    to
change or eliminate any of the provisions of this Indenture, provided that any
such change or elimination shall not become effective with respect to any
outstanding Security of any series created prior to the execution of such supplemental
indenture which is entitled to the benefit of such provision;

 

50

 

(g)                                 to
secure the Securities of any series;

 

(h)                                 to
make any other change that does not adversely affect the rights of any Securityholder
of Outstanding Securities in any material respect;

 

(i)                                     to
provide for the issuance of and establish the form and terms and conditions of
the Securities of any series as provided in Section 2.01, to provide
which, if any, of the covenants of the Company shall apply to such series, to
provide which of the Events of Default shall apply to such series, to provide
for the terms and conditions upon which the Guarantee by Parent of such series
of Securities may be released or terminated, or to define the rights of the
holders of such series of Securities;

 

(j)                                     to
issue additional Securities of any series; provided that such additional
Securities have the same terms as, and be deemed part of the same series as,
the applicable series of Securities issued hereunder to the extent required by Section 2.01(b);
or

 

(k)                                  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 trust hereunder by more than one
Trustee.

 

Upon the request of the Company, accompanied by Board Resolutions
authorizing the execution of any such supplemental indenture, and upon receipt
by the Trustee of the documents described in Section 9.05, the Trustee
shall join with Parent and the Company in the execution of any such
supplemental indenture, and to make any further appropriate agreements and
stipulations that may be therein contained, 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.

 

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

 

Section 9.02                                Supplemental
Indentures with Consent of Securityholders.

 

With the consent (evidenced as provided in Section 8.01) of the
holders of not less than a majority in aggregate principal amount of the
Securities of each series at the time Outstanding affected by such supplemental
indenture or indentures, Parent and the Company, when authorized by Board
Resolutions, and the Trustee from time to time and at any time may enter into
an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of any supplemental indenture or of modifying in any manner
not covered by Section 9.01 the rights of the holders of the Securities of
such series under this Indenture; provided, however, that no such supplemental
indenture, without the consent of the holders of each Security then Outstanding
and affected thereby, shall:  (i) extend
a fixed maturity of or any installment of principal of any Securities of any
series or reduce the principal amount thereof or reduce the amount of principal
of any original issue discount security that would be due and payable upon
declaration of acceleration of the maturity thereof; (ii) reduce the rate
of or extend the time for payment of 

 

51

 

interest on any Security of any series; (iii) reduce
the premium payable upon the redemption of any Security; (iv) make any
Security payable in Currency other than that stated in the Security; (v) impair
the right to institute suit for the enforcement of any payment on or after the
fixed maturity thereof (or in the case of redemption, on or after the
redemption date); (vi) modify the subordination provisions applicable to
any Security or the related Guarantee in a manner adverse in any material
respect to the holder thereof or (vii) reduce the aforesaid percentage of
Securities, the holders of which are required to consent to any such
supplemental indenture or indentures.

 

A supplemental indenture that changes or eliminates any covenant, Event
of Default or other provision of this Indenture that has been expressly
included solely for the benefit of one or more particular series of Securities,
if any, or which modifies the rights of the holders of Securities of such
series with respect to such covenant, Event of Default 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 the consent of Securityholders of a
series affected thereby under this Section 9.02 to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such
consent shall approve the substance thereof.

 

Promptly after the execution by Parent, the Company and the Trustee of
any supplemental indenture pursuant to the provisions of this Section 9.02,
the Company shall mail or caused to be mailed a notice thereof by first class
mail to the Holders of Securities of each series affected thereby at their
addresses as they shall appear on the Security Register, setting forth in
general terms the substance of such supplemental indenture.  Any failure of the Company to mail such
notice, or any defect therein, shall not in any way impair or affect the
validity of any such supplemental indenture.

 

Section 9.03                                Effect
of Supplemental Indentures.

 

Upon the execution of any supplemental indenture pursuant to the
provisions of this Article IX or Section 10.01, this Indenture shall
be and be deemed to be modified and amended with respect to such series in
accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, Parent,
the Company and the holders of Securities of the series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

 

Section 9.04                                Securities
Affected by Supplemental Indentures.

 

Securities of any series affected by a supplemental indenture and
authenticated and delivered after the execution of such supplemental indenture
pursuant to the provisions of this Article or of Section 10.01 may
bear a notation in form approved by the Company, provided such form meets the
requirements of any exchange upon which such series may be listed, as to any
matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of that series so modified as to conform, in the
opinion of the Board of Directors of the Company, to any modification of this
Indenture contained in any such supplemental indenture 

 

52

 

may be prepared by the Company, authenticated
by the Trustee in accordance with the terms of this Indenture and delivered in
exchange for the Securities of that series then Outstanding.

 

Section 9.05                                Execution
of Supplemental Indentures.

 

Upon the request of the Company, accompanied by Board Resolutions
authorizing the execution of any such supplemental indenture, and, if
applicable, upon the filing with the Trustee of evidence of the consent of
Securityholders required to consent thereto as aforesaid, the Trustee shall
join with Parent and the Company in the execution of such supplemental
indenture unless such supplemental indenture affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee in its discretion  may but shall
not be obligated to enter into such supplemental indenture.  The Trustee, subject to the provisions of Section 7.01,
may receive an Opinion of Counsel and Officer’s Certificate as conclusive
evidence that any supplemental indenture executed pursuant to this Article IX
is authorized or permitted by, and conforms to, the terms of this Article IX.

 

Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section 9.05,
the Trustee shall transmit by mail, first class postage prepaid, a notice,
setting forth in general terms the substance of such supplemental indenture, to
the Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

 

ARTICLE X.

 

SUCCESSOR

 

Section 10.01                          Consolidation,
Merger and Sale of Assets.

 

Each of Parent and the Company covenants that it will not merge or
consolidate with any other Person or sell or convey all or substantially all of
its assets to any Person, unless:

 

(i) either Parent or the Company, as the case may be, shall be the
continuing entity, or the successor entity or the Person which acquires by sale
or conveyance substantially all the assets of Parent or the Company, as the
case may be (if other than Parent or the Company, as the case may be), (A) shall
expressly assume the due and punctual payment of the principal of, premium, if
any, and interest on all the Securities or the obligations under the
Guarantees, as the case may be, according to their tenor, and the due and
punctual performance and observance of all of the covenants and agreements of
this Indenture to be performed or observed by Parent or the Company, as the
case may be, by supplemental indenture reasonably satisfactory to the Trustee,
executed and delivered to the Trustee by such Person and (B) is an entity
treated as a “corporation” for United States tax purposes or Parent or the
Company, as the case may be, obtains either (x) an opinion, in form and
substance reasonably acceptable to the Trustee, of tax counsel of recognized
standing reasonably acceptable to the Trustee, which 

 

53

 

counsel shall include Gibson, Dunn & Crutcher LLP, or (y) a
ruling from the United States Internal Revenue Service, in either case to the
effect that such merger or consolidation, or such sale or conveyance, will not
result in an exchange of the Securities for new debt instruments for United
States federal income tax purposes; and

 

(ii) no Event of Default and no event that, after notice or lapse
of time or both, would become an Event of Default shall be continuing
immediately after such merger or consolidation, or such sale or conveyance.

 

The Company shall deliver to the Trustee prior to the consummation of
the proposed transaction an Officer’s Certificate to the foregoing effect and
an Opinion of Counsel stating that the proposed transaction and such
supplemental indenture comply with this Indenture.

 

To the extent that a Board Resolution or supplemental indenture
pertaining to any series provides for different provisions relating to the
subject matter of this Article X, the provisions in such Board Resolution
or supplemental indenture shall govern for purposes of such series.

 

Section 10.02                          Successor
Person Substituted.

 

Upon any consolidation or merger, or any sale, lease, conveyance or
other disposition of all or substantially all of the assets of Parent or the
Company, as the case may be, the successor Person formed by such consolidation
or into or with which Parent or the Company, as the case may be, is merged or
to which such sale, lease, conveyance or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of,
Parent or the Company, as the case may be, under this Indenture with the same
effect as if such successor Person has been named as Parent or the Company, as
the case may be, herein.  In the event of
any such sale or conveyance (other than a conveyance by way of lease) Parent or
the Company, as the case may be, or any successor entity which shall theretofore
have become such in the manner described in this Article X, shall be
discharged from all obligations and covenants under this Indenture, the
Securities and the Guarantees and may be liquidated and dissolved.

 

ARTICLE XI.

 

SATISFACTION AND
DISCHARGE

 

Section 11.01                          Applicability
of Article.

 

If the Securities of a  series
are denominated and payable only in Dollars (except as provided pursuant to Section 2.01),
then the provisions of this Article XI relating to defeasance of
Securities shall be applicable except as otherwise specified pursuant to Section 2.01
for Securities of such series. Defeasance provisions, if any, for Securities
denominated in a Foreign Currency may be specified pursuant to Section 2.01.

 

Section 11.02                          Satisfaction
and Discharge of Indenture.

 

If at any time:

 

54

 

(a) Parent or the Company shall have delivered or shall have
caused to be delivered to the Trustee for cancellation all Securities of a
series theretofore authenticated, other than any Securities that shall have
been destroyed, lost or stolen and that shall have been replaced or paid as
provided in Section 2.07, and Securities for whose payment funds or
Governmental Obligations have theretofore been deposited in trust or segregated
and held in trust by Parent or the Company and thereupon repaid to Parent or
the Company or discharged from such trust, as provided in Section 11.06;
or

 

(b) all such Securities of a particular series not theretofore
delivered to the Trustee for cancellation shall have become due and payable or
are by their terms to become due and payable within one year or are to be
called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption, and Parent or the Company shall
irrevocably deposit or cause to be deposited with the Trustee as trust funds
the entire amount, in funds or Governmental Obligations sufficient, or a
combination thereof sufficient, to pay at maturity or upon redemption all
Securities of such series not theretofore delivered to the Trustee for
cancellation, including principal, premium, if any, and interest due or to
become due on such date of maturity or redemption date, as the case may be, and
if in either case Parent or the Company shall also pay or cause to be paid all
other sums payable hereunder with respect to such series by the Company,

 

then this Indenture shall cease to be of further effect with respect to
such series except for the provisions of Sections 2.03, 2.04, 2.05, 2.07, 4.01,
4.02, 4.03, 7.05 and 7.10, that shall survive until the date of maturity or
redemption date, as the case may be, and Sections 7.06 and 11.06 and Article XIV,
that shall survive to such date and thereafter, and the Trustee, on demand of
the Company and at the cost and expense of the Company shall execute proper
instruments acknowledging satisfaction of and discharging this Indenture with
respect to such series.

 

Section 11.03                          Defeasance
and Discharge of Obligations; Covenant Defeasance.

 

(a)                                  If
at any time:

 

(i) all such Securities of a particular series not heretofore
delivered to the Trustee for cancellation or that have not become due and
payable as described in Section 11.02 shall have been paid by Parent or
the Company by depositing irrevocably with the Trustee in trust funds or
Governmental Obligations, or a combination thereof, sufficient to pay at
maturity or upon redemption all such Securities of that series not theretofore
delivered to the Trustee for cancellation, including principal, premium, if
any, and interest due or to become due to such date of maturity or date fixed
for redemption, as the case may be, and

 

(ii) Parent or the Company shall also pay or cause to be paid all
other amounts payable hereunder by the Company with respect to such series,

 

then, subject to Section 11.03(c), after the date such funds or
Governmental Obligations, as the case may be, are deposited with the Trustee,
the obligations of Parent and the Company under this Indenture with respect to
such series shall cease to be of further effect except, to the extent 

 

55

 

applicable to each, for the provisions of Sections 2.03, 2.04, 2.05,
2.07, 4.01, 4.02, 4.03, 7.05 and 7.10 hereof that shall survive until such
Securities shall mature and be paid. 
Thereafter, Sections 7.06 and 11.06 and Article XIV shall survive
such satisfaction and discharge.

 

(b)                                 In
addition, each of Parent and the Company, at its option and at any time, by
written notice executed by an Officer delivered to the Trustee, may elect to
have its obligations, to the extent applicable to each, under Section 5.03
and any covenant contained in Article X, and any other covenant contained
in the Board Resolution or supplemental indenture relating to such series pursuant
to Section 2.01, discharged with respect to all Outstanding Securities of
a series, this Indenture and any indentures supplemental to this Indenture
insofar as such Securities are concerned (“covenant
defeasance”), such discharge to be effective on the date the
conditions set forth in clauses (i) through (vi) of Section 11.03(c) are
satisfied, and such Securities shall thereafter be deemed to be not “Outstanding”
for the purposes of any direction, waiver, consent or declaration of
Securityholders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be “Outstanding” for all other purposes under
this Indenture.  For this purpose, such
covenant defeasance means that, with respect to the Outstanding Securities of a
series, Parent and the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of reference in any such covenant to any other provision herein or in any
other document and such omission to comply shall not constitute an Event of
Default under Section 6.01(a)(4) or otherwise, but except as
specified in this Section 11.03(b), the remainder of Parent’s and the
Company’s obligations under the Securities of such series, this Indenture, and
any indentures supplemental to this Indenture with respect to such series shall
be unaffected thereby.

 

(c)                                  The
following shall be the conditions to the application of Section 11.03 to
the Outstanding Securities of the applicable series:

 

(i)                                     Parent
or the Company irrevocably deposits in trust with the Trustee or, at the option
of the Trustee, with a trustee satisfactory to the Trustee and Parent or the
Company, as the case may be, under the terms of an irrevocable trust agreement
in form and substance satisfactory to the Trustee, funds or Governmental
Obligations sufficient to pay principal of, premium, if any, and interest on
the Outstanding Securities of such series to maturity or redemption, as the
case may be, and to pay all other amounts payable by it hereunder, provided
that (A) the trustee of the irrevocable trust shall have been irrevocably
instructed to pay such funds or the proceeds of such Governmental Obligations
to the Trustee and (B) the Trustee shall have been irrevocably instructed
to apply such funds or the proceeds of such Governmental Obligations to the
payment of said principal, premium, if any, and interest with respect to the
Securities of such series;

 

(ii)                                  Parent
or the Company, as the case may be, delivers to the Trustee an Officer’s
Certificate stating that all conditions precedent specified herein relating to
defeasance or covenant defeasance, as the case may be, have been complied with,
and an Opinion of Counsel to the same effect;

 

56

 

(iii)                               no
Event of Default under clauses (1), (2), (3), (5), (6) or (7) of Section 6.01(a) shall
have occurred and be continuing, and no event which with notice or lapse of
time or both would become such an Event of Default shall have occurred and be
continuing, on the date of such deposit;

 

(iv)                              Parent
or the Company, as the case may be, shall have delivered to the Trustee an
Opinion of Counsel or a ruling received from the Internal Revenue Service to
the effect that the holders of the Securities of such series will not recognize
income, gain or loss for Federal income tax purposes as a result of Parent’s or
the Company’s exercise of either option under this Section 11.03 and will
be subject to Federal income tax in the same amount and in the same manner and
at the same times as would have been the case if such election had not been
exercised;

 

(v)                                 such
defeasance or covenant defeasance shall not (i) cause the Trustee to have
a conflicting interest for purposes of the Trust Indenture Act with respect to
any Securities or (ii) result in the trust arising from such deposit to
constitute, unless it is registered as such, a regulated investment company
under the Investment Company Act of 1940; and

 

(vi)                              notwithstanding
any other provisions of this Section 11.03, such covenant defeasance shall
be effected in compliance with any additional or substitute terms, conditions
or limitations which may be imposed on Parent or the Company pursuant to Section 2.01.

 

After such irrevocable deposit made pursuant to this Section 11.03
and satisfaction of the other conditions set forth herein, the Trustee upon
written request shall acknowledge in writing the discharge of Parent’s and the
Company’s obligations pursuant to this Section 11.03.

 

Section 11.04                          Deposited
Funds to be Held in Trust.

 

All funds or Governmental Obligations deposited with the Trustee
pursuant to Sections 11.02 or 11.03 shall be held in trust and shall be
available for payment as due, either directly or through any paying agent,
including Parent or the Company acting as its own paying agent, to the holders
of the particular series of Securities for the payment or redemption of which
such funds or Governmental Obligations have been deposited with the Trustee.

 

Section 11.05                          Payment
of Funds Held by Paying Agents.

 

In connection with the provisions of Section 11.02 or 11.03, all
funds or Governmental Obligations then held by any paying agent under the
provisions of this Indenture shall, upon demand of Parent or the Company, be
paid to the Trustee and thereupon such paying agent shall be released from all
further liability with respect to such funds or Governmental Obligations.

 

Section 11.06                          Repayment
to Parent or the Company.

 

Any funds or Governmental Obligations deposited with any paying agent
or the Trustee, or then held by Parent or the Company, in trust for payment of
principal of, premium, if any, or 

 

57

 

interest on the Securities of a particular
series that are not applied but remain unclaimed by the holders of such
Securities for at least one year after the date upon which the principal of,
premium, if any, or interest on such Securities shall have respectively become
due and payable, shall be repaid to Parent or the Company, as applicable,  or if then held by Parent or the Company
shall be discharged from such trust; and thereafter, the paying agent and the
Trustee shall be released from all further liability with respect to such funds
or Governmental Obligations, and the holder of any of the Securities entitled
to receive such payment shall thereafter, as an unsecured general creditor,
look only to Parent or the Company, as applicable, for the payment thereof.
Anything in this Article XI to the contrary notwithstanding, subject to Section 7.06,
the Trustee shall deliver or pay to Parent or the Company, as applicable, from
time to time upon written request by Parent or the Company, which shall be
accompanied by an Officer’s Certificate, any funds or Governmental Obligations
(or other property and any proceeds therefrom) held by it as provided in
Sections 11.02 or 11.03 which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof that would then
be required to be deposited to effect a defeasance or covenant defeasance, as
the case may be, in accordance with this Article XI.

 

Section 11.07                          Reinstatement.

 

If the Trustee or paying agent is unable to apply any funds or
Governmental Obligations in accordance with Section 11.02 or 11.03 by
reason of any legal proceeding or by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, Parent and the Company’s obligations under this Indenture, any
indentures supplemental to this Indenture with respect to the applicable series
of Securities and the Securities of such series shall be revived and reinstated
as though no deposit had occurred pursuant to Section 11.02 or 11.03, as
the case may be, until such time as the Trustee or paying agent is permitted to
apply all such funds or Governmental Obligations in accordance with Section 11.02
or 11.03, as the case may be; provided, however, that if Parent or the Company
has made any payment of principal, premium, if any, or interest on any
Securities of such series following the reinstatement of its obligations as
aforesaid, Parent or the Company, as applicable, shall be subrogated to the
rights of the holders of such Securities of such series to receive such payment
from the funds or Governmental Obligations held by the Trustee or paying agent.

 

ARTICLE XII.

 

IMMUNITY OF
INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS

 

Section 12.01                          No
Recourse.

 

No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of any Security, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, shareholder, officer or
director, past, present or future as such, of Parent or the Company or of any
predecessor or successor corporation, either directly or through Parent or the
Company or any such predecessor or successor corporation, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or 

 

58

 

otherwise; it being expressly understood that
this Indenture and the obligations issued hereunder are solely corporate
obligations, and that no such personal liability whatever shall attach to, or
is or shall be incurred by, the incorporators, shareholders, officers or
directors as such, of Parent or the Company or of any predecessor or successor
corporation, or any of them, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements
contained in this Indenture or in any of the Securities or implied therefrom;
and that any and all such personal liability of every name and nature, either
at common law or in equity or by constitution or statute, of, and any and all
such rights and claims against, every such incorporator, shareholder, officer or
director as such, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements
contained in this Indenture or in any of the Securities or implied therefrom,
are hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issuance of such
Securities.

 

ARTICLE XIII.

 

MISCELLANEOUS PROVISIONS

 

Section 13.01                          Effect
on Successors and Assigns.

 

All the agreements of Parent and the Company in this Indenture or the
Securities shall bind their respective successors whether so expressed or not.
All agreements of the Trustee in this Indenture shall bind its successor.

 

Section 13.02                          Actions
by Successor.

 

Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of Parent
or the Company shall and may be done and performed with like force and effect
by the corresponding board, committee or officer of any corporation that shall
at the time be the lawful sole successor of Parent or the Company, as
applicable.

 

Section 13.03                          Notices.

 

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

 

	
  If to the Company:

  	
  Tyco
  International Finance S.A.

  
	
   

  	
  29 Avenue de la Porte Neuve

  
	
   

  	
  L-2227 Luxembourg

  
	
   

  	
  Attention: The Managing Directors

  
	
   

  	
  Facsimile No.: 352 2663 7891

  
	
   

  	
   

  
	
  If to Parent:

  	
  Tyco International Ltd.

  
	
   

  	
  90 Pitts Bay Road

  
	
   

  	
  Pembroke HM08

  

 

59

 

	
   

  	
  Bermuda

  
	
   

  	
  Attn: Chief Corporate
  Counsel

  
	
   

  	
  Facsimile No.: (441)
  295-9647

  
	
   

  	
   

  
	
  In either case, with
  copies to:

  
	
   

  
	
   

  	
  Tyco International
  (U.S.), Inc.

  
	
   

  	
  9 Roszel Road

  
	
   

  	
  Princeton, New Jersey
  08540

  
	
   

  	
  Attn:  Treasurer

  
	
   

  	
  Facsimile No.:  (609) 720-4208

  
	
   

  	
   

  
	
  and

  	
   

  
	
   

  	
   

  
	
   

  	
  Gibson, Dunn &
  Crutcher LLP

  
	
   

  	
  200 Park Avenue

  
	
   

  	
  New York, New York 10166

  
	
   

  	
  Attention:  Steven R. Finley

  
	
   

  	
  Facsimile No.:  (212) 351-4035

  
	
   

  	
   

  
	
  If to the Trustee:

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
  60 Wall
  Street, 27th Floor

  
	
   

  	
  MS:
  NYC60-2710

  
	
   

  	
  New York, NY
  10005

  
	
   

  	
  Attention:  Trust & Securities Services

  
	
   

  	
   

  
	
  With a copy to:

  	
   

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank National Trust Company

  
	
   

  	
  for Deutsche Bank Trust Company Americas

  
	
   

  	
  25 DeForest Avenue

  
	
   

  	
  Mail Stop: SUM01-0105

  
	
   

  	
  Summit, New Jersey 07901

  
	
   

  	
  Attn:  Trust &
  Securities Services

  
	
   

  	
  Facsimile No.:  732-578-4635

  

 

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

 

All notices and communications, other than those sent to
Securityholders, shall be deemed to have been duly given: at the time delivered
by hand, if personally delivered; five Business Days after being deposited in
the mail, postage prepaid, if mailed; when answered back, if telexed; when
receipt acknowledged, if telecopied; and the next Business Day after timely
delivery to the courier, if sent by overnight air courier guaranteeing next day
delivery.

 

Any notice or communication to a Securityholder shall be mailed by
first-class mail, certified or registered, return receipt requested, to his
address shown on the Security Register. 

 

60

 

Failure to mail a notice or communication to
a Securityholder or any defect in it shall not affect its sufficiency with
respect to other Securityholders.

 

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

 

If a notice or communication is mailed in the manner provided above
within the time prescribed, it is conclusively presumed duly given, whether or
not the addressee receives it.

 

Section 13.04                          Governing
Law.

 

This Indenture and each Security shall be deemed to be a contract made
under the internal laws of the State of New York, and for all purposes shall be
construed in accordance with the laws of said State without regard to conflicts
of laws principles that would require the application of any other law. This
Indenture is subject to the provisions of the Trust Indenture Act that are
required to be part of this Indenture and shall, to the extent applicable, be
governed by such provisions.

 

Section 13.05                          Treatment
of Securities as Debt.

 

It is intended that the Securities will be treated as indebtedness and
not as equity for United States federal income tax purposes. The provisions of
this Indenture shall be interpreted to further this intention.

 

Section 13.06                          Compliance
Certificates and Opinions.

 

(a)                                  Upon
any application or demand by Parent or the Company to the Trustee to take any
action under any of the provisions of this Indenture, Parent or the Company
shall furnish to the Trustee an Officer’s Certificate stating that, in the
opinion of the signer, all conditions precedent 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 have been complied with, except that in the case of any such
application or demand as to which the furnishing of such documents is
specifically dealt with by any provision of this Indenture relating to such
particular application or demand, no additional certificate or opinion need be
furnished.

 

(b)                                 Each
certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant in this
Indenture shall include:  (1) a
statement that the Person making such certificate or opinion has read such
covenant or condition; (2) a brief statement as to the nature and scope of
the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based; (3) a statement that,
in the opinion of such Person, he has made such examination or investigation as
is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and (4) a statement as
to whether or not, in the opinion of such Person, such condition or covenant
has been complied with.

 

61

 

Section 13.07                          Payments
on Business Days.

 

Except as provided pursuant to Section 2.01 pursuant to a Board
Resolution, and as set forth in an Officer’s Certificate or established in one
or more indentures supplemental to this Indenture, in any case where the date
of maturity of interest or principal of any Security or the date of redemption
of any Security shall not be a Business Day, then payment of principal,
premium, if any, or interest or principal and premium, if any, may be made on
the next succeeding Business Day with the same force and effect as if made on
the nominal date of maturity or redemption, and no interest shall accrue for
the period after such nominal date.

 

Section 13.08                          Conflict
with Trust Indenture Act.

 

If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

 

Section 13.09                          Counterparts.

 

This Indenture may be executed in any number of counterparts, each of
which shall be an original, but such counterparts shall together constitute but
one and the same instrument.

 

Section 13.10                          Separability.

 

In case any one or more of the provisions contained in this Indenture
or in the Securities of any series shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Indenture or of
such Securities, but this Indenture and such Securities shall be construed as
if such invalid or illegal or unenforceable provision had never been contained
herein or therein.

 

Section 13.11                          No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another indenture, loan or
debt agreement of Parent, the Company or a Subsidiary. Any such indenture, loan
or debt agreement may not be used to interpret this Indenture.

 

Section 13.12                          Table
of Contents, Headings, Etc.

 

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

 

Section 13.13                          Consent
to Jurisdiction and Service of Process.

 

Each of Parent and the Company agrees that any legal suit, action or
proceeding brought by any party to enforce any rights under or with respect to
this Indenture, any Security and any Guarantee or any other document or the
transactions contemplated hereby or thereby may be instituted in any state or
federal court in The City of New York, State of New York, United States of
America, irrevocably waives to the fullest extent permitted by law any
objection which 

 

62

 

it may now or hereafter have to the laying of
venue of any such suit, action or proceeding, irrevocably waives to the fullest
extent permitted by law any claim that and agrees not to claim or plead in any
court that any such action, suit or proceeding brought in such court has been
brought in an inconvenient forum and irrevocably submits to the non-exclusive
jurisdiction of any such court in any such suit, action or proceeding or for
recognition and enforcement of any judgment in respect thereof.

 

Each of Parent and the Company hereby irrevocably and unconditionally
designates and appoints CT Corporation System, 111 Eighth Avenue, New York, New
York 10011, U.S.A. (and any successor entity) as its authorized agent to
receive and forward on its behalf service of any and all process which may be
served in any such suit, action or proceeding in any such court and agrees that
service of process upon CT Corporation shall be deemed in every respect
effective service of process upon the Company in any such suit, action or
proceeding and shall be taken and held to be valid personal service upon Parent
or the Company, as the case may be.  Said
designation and appointment shall be irrevocable.  Nothing in this Section 13.13 shall
affect the right of the Holders to serve process in any manner permitted by law
or limit the right of the Holders to bring proceedings against Parent or the
Company in the courts of any jurisdiction or jurisdictions.  Each of Parent and the Company further agrees
to take any and all action, including the execution and filing of any and all
such documents and instruments, as may be necessary to continue such
designation and appointment of CT Corporation in full force and effect so long
as the Securities are outstanding.  Each
of Parent and the Company hereby irrevocably and unconditionally authorizes and
directs CT Corporation to accept such service on its behalf.  If for any reason CT Corporation ceases to be
available to act as such, each of Parent and the Company agrees to designate a
new agent in New York City.

 

To the extent that Parent or the Company has or hereafter may acquire
any immunity from jurisdiction of any court (including any court in the United
States, the State of New York, Luxembourg, Bermuda or other jurisdiction in
which Parent or the Company, or any successor thereof, may be organized or any
political subdivisions thereof) or from any legal process (whether through
service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property or
assets, this Indenture, the Securities, the Guarantees or any other documents
or actions to enforce judgments in respect of any thereof, then each of Parent
and the Company hereby irrevocably waives such immunity, and any defense based
on such immunity, in respect of its obligations under the above-referenced
documents and the transactions contemplated thereby, to the extent permitted by
law.

 

Section 13.14                          Waiver
of Jury Trial.

 

EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

63

 

Section 13.15                          USA
Patriot Act.

 

The parties hereto acknowledge that in accordance with Section 326
of the USA Patriot Act the Trustee, like all financial institutions and in
order to help fight the funding of terrorism and money laundering, is required
to obtain, verify, and record information that identifies each person or legal
entity that establishes a relationship or opens an account with Deutsche Bank
Trust Company Americas.  The parties to
this Indenture agree that they will provide the Trustee with such information
as it may request in order for the Trustee to satisfy the requirements of the
USA Patriot Act.

 

ARTICLE XIV.

 

ADDITIONAL AMOUNTS;
CERTAIN TAX PROVISIONS

 

Section 14.01                          Redemption
Upon Changes in Withholding Taxes.

 

The Securities of any series may be redeemed, as a whole but not in
part, at the option of the Company, upon not less than 30 nor more than 90 days
notice (which notice shall be irrevocable), at a redemption price equal to 100%
of the principal amount thereof, together with accrued interest, if any, to the
redemption date and Additional Amounts (as defined in Section 14.02), if
any, if as a result of any amendment to, or change in, the laws or regulations
of Luxembourg, Bermuda or the United States, as applicable, or any political
subdivision thereof or therein having the power to tax (a “Taxing Jurisdiction”), or any change in the
application or official interpretation of such laws, including any action taken
by a taxing authority or a holding by a court of competent jurisdiction
(regardless of whether such action or such holding is with respect to the
Company or Parent), which amendment or change is announced or becomes effective
after the date the Securities of such series are issued, Parent or the Company
has become, or there is a material probability that it will become, obligated
to pay Additional Amounts on the next date on which any amount would be payable
with respect to the Securities of such series, and such obligation cannot be
avoided by the use of commercially reasonable measures available to Parent or
the Company, as the case may be; provided, however, that (a) no such
notice of redemption may be given earlier than 90 days prior to the earliest
date on which Parent or the Company, as the case may be, would be obligated to
pay such Additional Amounts, and (b) at the time such notice of redemption
is given, such obligation to pay such Additional Amounts remains in
effect.  Prior to the giving of any
notice of redemption described in this paragraph, the Company shall deliver to
the Trustee (i)(A) certificate signed by two directors of the Company
stating that the obligation to pay Additional Amounts cannot be avoided by the
Company taking commercially reasonable measures available to it or (B) a
certificate signed by two Officers of Parent stating that the obligation to pay
Additional Amounts cannot be avoided by Parent taking commercially reasonable
measures available to it, as the case may be, and (ii) a written opinion
of independent legal counsel to Parent or the Company, as the case may be, of
recognized standing to the effect that the Company has or there is a material
probability that it will become obligated to pay Additional Amounts as a result
of a change, amendment, official interpretation or application described above
and that Parent or the Company, as the case may be, cannot avoid the payment of
such Additional Amounts by taking commercially reasonable measures available to
it.

 

64

 

Section 14.02                          Payment
of Additional Amounts.

 

All payments made by Parent or the Company under or with respect to the
Securities and the Guarantees will be made free and clear of and without
withholding or deduction for or on account of any present or future taxes,
duties, levies, imposts, assessments or governmental charges of whatever nature
imposed or levied by or on behalf of any Taxing Jurisdiction (“Taxes”), unless Parent or the Company, as
the case may be, is required to withhold or deduct Taxes by law or by the
interpretation or administration thereof. 
In the event that Parent or the Company is required to so withhold or
deduct any amount for or on account of any Taxes from any payment made under or
with respect to the Securities or the Guarantees, as the case may be, Parent or
the Company, as the case may be, will pay such additional amounts (“Additional Amounts”) as may be necessary so
that the net amount received by each holder of Securities (including Additional
Amounts) after such withholding or deduction will equal the amount that such
Holder would have received if such Taxes had not been required to be withheld
or deducted; provided that no Additional Amounts will be payable with respect
to a payment to a holder of Securities or a holder of a beneficial interests in
Global Securities where such holder is subject to taxation on such payment by a relevant Taxing
Jurisdiction for any reason other than such holder’s mere ownership of the
Securities or for or on account of:

 

(a)                                 any Taxes that are imposed
or withheld solely because such holder or a fiduciary, settler, beneficiary, or
member of such holder if such holder is an estate, trust, partnership, limited
liability company or other fiscally transparent entity, or a person holding a
power over an estate or trust administered by a fiduciary holder:

 

(i)                                    is
or was present or engaged in, or is or was treated as present or engaged in, a
trade or business in the Taxing Jurisdiction or has or had a permanent
establishment in the Taxing Jurisdiction;

 

(ii)                                 has
or had any present or former connection (other than the mere fact of ownership
of such Securities) with the Taxing Jurisdiction imposing such Taxes, including
being or having been a citizen or resident thereof or being treated as being or
having been a resident thereof;

 

(iii)                              with
respect to any withholding Taxes imposed by the United States, is or was with
respect to the United States a personal holding company, a passive foreign
investment company, a controlled foreign corporation, a foreign tax exempt
organization or corporation that has accumulated earnings to avoid United
States federal income tax; or

 

(iv)                             owns
or owned 10% or more of the total combined voting power of all classes of stock
of the Parent or the Company;

 

(b)                                any estate, inheritance,
gift, sales, transfer, excise or personal property Taxes imposed with respect
to the Securities, except as otherwise provided herein;

 

(c)                                 any Taxes imposed
solely as a result of the presentation of such Securities (where presentation
is required) for payment on a date more than 30 days after the date on which
such payment became due and payable or the date on which payment thereof is 

 

65

 

duly provided for, whichever is later, except
to the extent that the beneficiary or holder thereof would have been entitled
to the payment of Additional Amounts had the Securities been presented for
payment on any date during such 30-day period;

 

(d)                                 any
Taxes imposed solely as a result of the failure of such holder or any other
person to comply with applicable certification, information, documentation or
other reporting requirements concerning the nationality, residence, identity or
connection with the Taxing Jurisdiction of such holder, if such compliance is
required by statute or regulation of the relevant Taxing Jurisdiction as a
precondition to relief or exemption from such Taxes;

 

(e)                                  with
respect to withholding Taxes imposed by the United States, any such Taxes
imposed by reason of the failure of such holder to fulfill the statement
requirements of sections 871(h) or 881(c) of the Code;

 

(f)                                    any
Taxes that are payable by any method other than withholding or deduction by the
Parent or the Company or any paying agent from payments in respect of such
Securities;

 

(g)                                 any
Taxes required to be withheld by any paying agent from any payment in respect
of any Securities if such payment can be made without such withholding by at
least one other paying agent;

 

(h)                                 any
Taxes required to be deducted or withheld pursuant to the European Council
Directive 2003/48/EC of June 3, 2003 on the taxation of savings income in
the form of interest payments, or any amendment thereof, or any law
implementing or complying with, or introduced in order to conform to, that
Directive or the Luxembourg Law of December 23, 2005, as amended;

 

(i)                                     any
withholding or deduction for Taxes which would not have been imposed if the
relevant Securities had been presented to another paying agent in a Member
State of the European Union; or

 

(j)                                     any
combination of Section 14.02(a), (b), (c), (d), (e), (f), (g), (h) and
(i).

 

Additional Amounts will not be payable to or for the account of any
Holder or the holder of a beneficial interest in a Global Security if such
payment would not be subject to such withholding or deduction of Taxes but for
the failure of a Holder or the holder of a beneficial interest in a Global
Security to make a valid declaration of non-residence or other similar claim
for exemption or to provide a certificate declaring its non-residence, if the
Company were treated as a domestic corporation under United States federal
income tax and if (x) the making of such declaration or claim or the
provision of such certificate is required or imposed by statute, treaty,
regulation, ruling or administrative practice of the relevant Taxing Authority
as a precondition to an exemption from, or reduction in, the relevant Taxes,
and (y)  at least 60 days prior to the first payment date with respect to
which Tyco or the Company shall apply this paragraph, Tyco or the Company shall
have notified all Holders of Securities in writing that they shall be required
to provide such declaration or claim.

 

66

 

Additional Amounts also will not be payable to any Holder or the holder
of a beneficial interest in a Global Security that is a fiduciary, partnership,
limited liability company or other fiscally transparent entity, or to such
holder that is not the sole Holder or holder of such beneficial interests of
such Security, as the case may be.  This
exception, however, will apply only to the extent that a beneficiary or settlor
with respect to the fiduciary, or a beneficial owner or member of the
partnership, limited liability company or other fiscally transparent entity, would
not have been entitled to the payment of an Additional Amount had the
beneficiary, settlor, beneficial owner or member  received directly its beneficial or
distributive share of the payment.

 

Parent or the Company, as the case may be, will also (i) make such
withholding or deduction of Taxes and (ii) remit the full amount of Taxes
so deducted or withheld to the relevant Taxing Jurisdiction in accordance with
all applicable laws.  Parent or the
Company, as applicable, will use its commercially reasonable efforts to obtain
certified copies of tax receipts evidencing the payment of any Taxes so
deducted or withheld from each Taxing Authority imposing such Taxes.  Parent or the Company, as the case may be,
will, upon request, make available to the holders of the Securities, within 90
days after the date the payment of any Taxes so deducted or withheld is due
pursuant to applicable law, certified copies of tax receipts evidencing such
payment by Parent or the Company or if, notwithstanding Parent’s or the Company’s
efforts to obtain such receipts, the same are not obtainable, other evidence of
such payments by Parent or the Company.

 

At least 30 days prior to each date on which any payment under or with
respect to the Securities or Guarantees is due and payable, if Parent or the
Company will be obligated to pay Additional Amounts with respect to such
payment, Parent or the Company will deliver to the Trustee an Officer’s
Certificate stating the fact that such Additional Amounts will be payable, the
amounts so payable and will set forth such other information as is necessary to
enable such Trustee to pay such Additional Amounts to holders of Securities on
the payment date.

 

In addition, the Company will pay any stamp, issue, registration,
documentary or other similar taxes and duties, including interest, penalties
and Additional Amounts with respect thereto, payable in Luxembourg or the
United States or any political subdivision or taxing authority of or in the
foregoing in respect of the creation, issue, offering, enforcement, redemption
or retirement of the Securities.

 

The provisions of this Article XIV shall survive any termination
of the discharge of this Indenture and shall apply mutatis mutandis to any
jurisdiction in which Parent or the Company or any successor Person to Parent
or the Company, as the case may be, is organized or is engaged in business for
tax purposes or any political subdivisions or taxing authority or agency
thereof or therein; provided, however, the date on which Parent or the Company
changes its jurisdiction in which it is organized or such Person becomes a
successor to Parent or the Company, as the case may be, shall be substituted
for the date on which the series of Securities was issued.

 

Whenever in this Indenture, the Securities or the Guarantees there is
mentioned, in any context, the payment of principal and premium, if any,
redemption price, interest or any other amount payable under or with respect to
any Security, such mention shall be deemed to include 

 

67

 

mention of the payment of Additional Amounts
to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof.

 

ARTICLE XV.

 

GUARANTEES

 

Section 15.01                          Guarantee.

 

Parent hereby fully and unconditionally guarantees (i) to each
Holder of each Security that is authenticated and delivered by the Trustee, and
(ii) to the Trustee on behalf of such Holder, the due and punctual payment
of the principal of, premium, if any, and interest on such Security when and as
the same shall become due and payable, whether at the stated maturity, by
acceleration, call for redemption or otherwise, in accordance with the terms of
such Security and of this Indenture.  In
case of the failure of the Company punctually to make any such payment, Parent
hereby agrees to cause such payment to be made punctually when and as the same
shall become due and payable, whether at the stated maturity or by
acceleration, call for redemption or otherwise, and as if such payment were
made by the Company.

 

Parent hereby agrees that its obligations hereunder shall be absolute
and unconditional, irrespective of, and shall be unaffected by, the validity,
regularity or enforceability of such Security or this Indenture, the absence of
any action to enforce the same or any release, amendment, waiver or indulgence
granted to the Company or Parent or any consent to departure from any
requirement of any other guarantee of all or any of the Securities or any other
circumstances which might otherwise constitute a legal or equitable discharge
or defense of a surety or guarantor. 
Parent hereby waives the benefits of diligence, presentment, demand for
payment, any requirement that the Trustee or any of the Holders protect,
secure, perfect or insure any security interest in or other lien on any
property subject thereto or exhaust any right or take any action against the
Company or any other Person or any collateral, filing of claims with a court in
the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest or notice with respect to such
Security or the indebtedness evidenced thereby and all demands whatsoever, and
covenants that this Guarantee will not be discharged in respect of such Security
except by complete performance of the obligations contained in such Security
and in such Guarantee.  Parent agrees
that if, after the occurrence and during the continuance of an Event of
Default, the Trustee or any of the Holders of the applicable series of
Securities are prevented by applicable law from exercising their respective
rights to accelerate the maturity of such Securities, to collect interest on
such Securities, or to enforce or exercise any other right or remedy with
respect to such Securities, Parent agrees to pay to the Trustee for the account
of such Holders, upon demand therefor, the amount that would otherwise have
been due and payable had such rights and remedies been permitted to be
exercised by the Trustee or any of such Holders.

 

Parent shall be subrogated to all rights of the holders of the
Securities against the Company in respect of any amounts paid by Parent on
account of such Security pursuant to the provisions of its Guarantee or this
Indenture; provided, however, that Parent shall not be entitled to enforce or
to receive any payment arising out of, or based upon, such right of subrogation
until 

 

68

 

the principal of and interest on all
Securities of such series issued hereunder shall have been paid in full.

 

The Guarantee shall remain in full force and effect and continue to be
effective should any petition be filed by or against the Company for
liquidation or reorganization, should the Company become insolvent or make an
assignment for the benefit of creditors or should a receiver or trustee be
appointed for all or any part of the Company’s assets, and shall, to the
fullest extent permitted by law, continue to be effective or be reinstated, as
the case may be, if at any time payment and performance of such Securities, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise
be restored or returned by any holder of such Securities, whether as a “voidable
preference,” “fraudulent transfer,” or otherwise, all as though such payment or
performance had not been made.  In the
event that any payment, or any part thereof, is rescinded, reduced, restored or
returned, such Securities shall, to the fullest extent permitted by law, be
reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

 

Any term or provision of the Guarantee to the contrary notwithstanding,
the aggregate amount of the obligations guaranteed hereunder shall be reduced
to the extent necessary to prevent such Guarantee from violating or becoming
voidable under applicable law relating to fraudulent conveyance or fraudulent
transfer or similar laws affecting the rights of creditors generally.

 

Section 15.02                          Execution
and Delivery of Guarantee.

 

The Guarantee shall include the terms of the Guarantee set forth in Section 15.01
and shall be substantially in the form established pursuant to Section 2.16.  Parent hereby agrees to execute its
Guarantee, in a form established pursuant to Section 2.16, on each Security
authenticated and delivered by the Trustee.

 

The Guarantee shall be executed on behalf of Parent by any one of its
chairman of the Board of Directors, president, vice presidents or other person
duly authorized by Parent’s Board of Directors. 
The signature of any or all of these persons on the Guarantee may be
manual or facsimile.

 

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

 

The delivery of any Security by the Trustee, after the authentication
thereof, shall constitute due delivery of the Guarantee on behalf of Parent and
shall bind Parent notwithstanding the fact that the Guarantee does not bear the
signature of Parent.  Parent agrees that
its Guarantee set forth in Section 15.01 and in the form of Guarantee established
pursuant to Section 2.16 shall remain in full force and effect
notwithstanding any failure to execute a Guarantee on any such Security.

 

69

 

Section 15.03                          Release
of Guarantee.

 

Notwithstanding anything in this Article XV to the contrary,
concurrently with the payment in full of the principal of, premium, if any, and
interest on Securities of a series, Parent shall be released from and relieved
of its obligations under this Article XV with respect to the Securities of
such series.  Upon the delivery by the
Company to the Trustee of an Officer’s Certificate and an Opinion of Counsel to
the effect that the transaction giving rise to the release of this Guarantee
was made by the Company in accordance with the provisions of this Indenture and
the Securities, the Trustee shall execute any documents reasonably required in
order to evidence the release of Parent from its obligations under this
Guarantee.  If any of the obligations to
pay the principal of, premium, if any, and interest on such Securities and all
other obligations of the Company are revived and reinstated after the
termination of this Guarantee, then all of the obligations of Parent under this
Guarantee shall be revived and reinstated as if this Guarantee had not been
terminated until such time as the principal of, premium, if any, and interest
on such Securities are paid in full, and Parent shall enter into an amendment
to this Guarantee, reasonably satisfactory to the Trustee, evidencing such
revival and reinstatement.

 

Section 15.04                          Subordination
of Guarantee.

 

The obligations of Parent under this Article XV with respect to
the Securities of a series shall be subordinated in right of payment to the
extent provided in the subordination terms with respect to the Guarantee
relating to such Securities that are established pursuant to Section 2.01.

 

ARTICLE XVI.

 

SUBORDINATION OF
SECURITIES

 

Section 16.01                          Subordination
Terms.

 

The Securities of a series issued hereunder shall be subordinated in
right of payment to the extent provided in the subordination terms with respect
to such Securities that are established pursuant to Section 2.01.

 

70

 

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

 

	
   

  	
  TYCO INTERNATIONAL FINANCE S.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TYCO INTERNATIONAL LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY 

  AMERICAS

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

71

 

EXHIBIT A

 

FORM OF CERTIFICATE OF TRANSFER

 

Tyco
International Finance S.A.

29 Avenue de la Porte Neuve

L-2227 Luxembourg

Attention: The Managing Directors

 

[Trustee]

[Address]

 

Re: [insert description of
Securities]

 

Ladies and Gentlemen,

 

Reference is hereby made to the Indenture, dated as of
                    ,
        , among Tyco International Finance
S.A., a Luxembourg company (the “Company”),
Tyco International Ltd., a Bermuda company (“Parent”),
and
                            ,
a                             ,
as trustee (the “Trustee”), [as
supplemented by that certain supplemental indenture dated as of
                  ][and
the Board Resolution adopted
                    ]
(together, the “Indenture”).
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.
                              
(the “Transferor”) owns and
proposes to transfer the Security or Securities or interest[s] in such Security
or Securities specified in Annex A hereto, in the principal amount of
$                  
in such Security or Securities or interest[s] (the “Transfer”), to
                      
(the “Transferee”), as further
specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that:

 

[CHECK ALL THAT APPLY

 

1.                                       o                                    Check if
Transferee will take delivery of a beneficial interest in the 144A Global
Security or a Definitive Security Pursuant to Rule 144A.  The
Transfer is being effected pursuant to and in accordance with Rule 144A
under the United States Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the
Transferor hereby further certifies that the beneficial interest or Definitive
Security is being transferred to a Person that the Transferor reasonably
believed and believes is purchasing the beneficial interest or Definitive
Security for its own account, or for one or more accounts with respect to which
such Person exercises sole investment discretion, and such Person and each such
account is a “qualified institutional buyer” within the meaning of Rule 144A
(a “QIB”) in a transaction meeting
the requirements of Rule 144A and such Transfer is in compliance with any
applicable blue sky securities laws of any State of the United States. Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Security will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the 144A Global Security and/or the Definitive Security and
in the Indenture and the Securities Act.

 

A-1

 

2.                                       o                                    Check if
Transferee will take delivery of a beneficial interest in the Regulation S
Global Security or a Definitive Security pursuant to Regulation S.  The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904
under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a person in the
United States and (y) at the time the buy order was originated, the
Transferee was outside the United States or such Transferor and any Person
acting on its behalf reasonably believed and believes that the Transferee was
outside the United States or (z) the transaction was executed in, on or
through the facilities of a designated offshore securities market and neither
such Transferor nor any Person acting on its behalf knows that the transaction
was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule 903(b) or
Rule 904 (b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed Transfer is
being made prior to the expiration of the Distribution Compliance Period, the
Transfer is not being made to a U.S. person (as such is defined in Regulation
S) or for the account or benefit of a U.S. person (other than an initial
purchaser of the Securities) and the interest transferred will be held
immediately thereafter through Euroclear or Clearstream. Upon consummation of
the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Security will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the
Regulation S Global Security and/or the Definitive Security and in the
Indenture and the Securities Act.

 

3.                                       o                                    Check and
complete if Transferee will take delivery of a beneficial interest in a
Definitive Security pursuant to any provision of the Securities Act other than Rule 144A
or Regulation S.  The Transfer is being effected in compliance
with the transfer restrictions applicable to beneficial interests in Restricted
Global Securities and Restricted Definitive Securities and pursuant to and in
accordance with the Securities Act and any applicable blue sky securities laws
of any State of the United States, and accordingly the Transferor hereby
further certifies that (check one):

 

(a)                                  o                                    Such
Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act; or

 

(b)                                 o                                    Such
Transfer is being effected to the Company or a subsidiary thereof; or

 

(c)                                  o                                    Such
Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act.

 

4.                                       o                                    Check if
Transferee will take delivery of a beneficial interest in an Unrestricted
Global Security or of an Unrestricted Definitive Security.

 

(a)                                  o                                    Check if Transfer is pursuant to Rule 144.  (i) The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and
in 

 

A-2

 

compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any State of the United States
and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Security will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Securities, on Restricted Definitive Securities and in the Indenture and the
Securities Act.

 

(b)                                 o                                    Check if Transfer is Pursuant to
Regulation S.  (i) The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904
under the Securities Act and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
State of the United States and (ii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Security will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Global Securities, on Restricted Definitive Securities and in
the Indenture and the Securities Act.

 

(c)                                  o                                    Check if Transfer is Pursuant to
Other Exemption.  (i) The
Transfer is being effected pursuant to and in compliance with an exemption from
the registration requirements of the Securities Act other than Rule 144, Rule 903
or Rule 904 and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any State of the
United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Security will not be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Securities or Restricted Definitive Securities and in the
Indenture.

 

A-3

 

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

 

	
   

  	
  Dated:

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Insert Name of Transferor]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

A-4

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.                                       The
Transferor owns and proposed to transfer the following:

 

[CHECK ONE OF (a) OR (b)]

 

(a)                                  o                                     a
beneficial interest in the:

 

(i)                                     o                                    144A
Global Security (CUSIP
              ),
or

 

(ii)                                  o                                    Regulation
S Global Security (CUSIP
              ),
or

 

(b)                                 o                                     a
Restricted Definitive Security.

 

2.                                       After
the transfer the Transferee will hold:

 

(a)                                  o                                     a
beneficial interest in the:

 

(i)                                     o                                    144A
Global Security (CUSIP
              ),
or

 

(ii)                                  o                                    Regulation
S Global Security (CUSIP
              ),
or

 

(iii)                               o                                    Unrestricted
Global Security (CUSIP
              );
or

 

(b)                                 o                                     a
Restricted Definitive Security; or

 

(c)                                  o                                     an
Unrestricted Definitive Security,

 

in accordance with the terms of the Indenture.

 

A-5

 

EXHIBIT B

 

FORM OF CERTIFICATE OF EXCHANGE

 

Tyco
International Finance S.A.

29 Avenue de la Porte Neuve

L-2227 Luxembourg

Attention: The Managing Directors

 

[Address of Trustee]

 

Re: [insert description of
the Securities]

 

Ladies and Gentlemen,

 

Reference is hereby made to the Indenture, dated as of
                    ,
        , among Tyco International Finance
S.A., a Luxembourg company (the “Company”),
Tyco International Ltd., a Bermuda company (“Parent”),
and
                            ,
a                                 ,
as trustee (the “Trustee”) [as
supplemented by that certain supplemental indenture dated as of
                  ][and
the Board Resolution adopted
                    ]
(together, the “Indenture”).
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

                              ,
(the “Owner”) owns and proposes to
transfer the Security or Securities or interest[s] in such Security or
Securities specified herein, in the principal amount of
$                  
in such Security or Securities or interest[s] (the “Exchange”). In connection with the Transfer, the Transferor
hereby certifies that:

 

1.                                       Exchange of Restricted Definitive
Securities or Beneficial Interests in a Restricted Global Security for
Unrestricted Definitive Securities or Beneficial Interests in an Unrestricted
Global Security.

 

(a)                                  o                                    Check if Exchange is from beneficial
interest in a Restricted Global Security to beneficial interest in an
Unrestricted Global Security. In connection with the Exchange of
the Owner’s beneficial interest in a Restricted Global Security for a beneficial
interest in an Unrestricted Global Security in an equal principal amount, the
Owner hereby certifies (i) the beneficial interest is being acquired for
the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Global
Securities and pursuant to and in accordance with the United States Securities
Act of 1933, as amended (the “Securities Act”),
(iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the beneficial interest in an Unrestricted
Global Security is being acquired in compliance with any applicable blue sky
securities laws of any State of the United States.

 

C-1

 

(b)                                 o                                    Check if Exchange is from beneficial
interest in a Restricted Global Security to Unrestricted Definitive Security.
In connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Security for an Unrestricted Definitive Security in an equal principal amount, the Owner
hereby certifies (i) the Definitive Security is being acquired for the
Owner’s own account without transfer, (ii) such Exchange has been effected
in compliance with the transfer restrictions applicable to the Restricted
Global Securities and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Definitive Security is being acquired in compliance with any
applicable blue sky securities laws of any State of the United States.

 

(c)                                  o                                    Check if Exchange is from Restricted
Definitive Security to beneficial interest in an Unrestricted Global Security.
In connection with the Owner’s Exchange of a Restricted Definitive Security for
a beneficial interest in an Unrestricted Global Security, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to Restricted Definitive
Securities and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the beneficial interest in an Unrestricted Global Security is being
acquired in compliance with any applicable blue sky securities laws of any
State of the United States.

 

(d)                                 o                                    Check if Exchange is from Restricted
Definitive Security to Unrestricted Definitive Security.  In connection with the Owner’s Exchange of a
Restricted Definitive Security for an Unrestricted Definitive Security, the
Owner hereby certifies (i) the Unrestricted Definitive Security is being
acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Securities and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Unrestricted
Definitive Security is being acquired in compliance with any applicable blue
sky securities laws of any State of the United States.

 

2.                                       Exchange of Restricted Definitive
Securities or Beneficial Interests in Restricted Global Securities for
Restricted Definitive Securities or Beneficial Interests in Restricted Global
Securities.

 

(a)                                  o                                    Check if Exchange is from beneficial
interest in a Restricted Global Security to Restricted Definitive Security.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Security for a Restricted Definitive
Security with an equal principal amount, the Owner hereby certifies that the
Restricted Definitive Security is being acquired for the Owner’s own account
without transfer. Upon consummation of the proposed Exchange in accordance with
the terms of the Indenture, the Restricted Definitive Security issued will
continue to be subject to the restrictions on transfer enumerated in the 

 

C-2

 

Private Placement Legend printed on the
Restricted Definitive Security and in the Indenture and the Securities Act.

 

(b)                                 o                                    Check if Exchange is from Restricted
Definitive Security to beneficial interest in a Restricted Global Security.  In connection with the Exchange of the Owner’s
Restricted Definitive Security for a beneficial interest in the: [CHECK ONE] o 144A Global Security
or o
Regulation S Global Security with an equal principal amount, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s
own account without transfer and (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to Restricted Global
Securities and pursuant to and in accordance with the Securities Act, and in
compliance with any applicable blue sky securities laws of any State of the
United States. Upon consummation of the proposed Exchange in accordance with
the terms of the Indenture, the beneficial interest issued will be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed
on the relevant Restricted Global Security and in the Indenture and the
Securities Act.

 

C-3

 

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

 

	
   

  	
   

  
	
  [Insert Name of Owner]

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
				

 

C-4Filed by sedaredgar.com - ColorStars Group  - Exhibit 10.3

OFFICE LEASE AGREEMENT 

This Office Lease Agreement ("Lease") is made and effective
this 1stst Day of
November 2005 by and between Mr. Wei-Rur
Chen ("Landlord") and Color Stars, Inc. ("Tenant").

1. PREMISES.

Landlord hereby rents to Tenant and Tenant accepts in its
present condition the house at following address: 10F, No. 566 and No. 568
Jungjeng Road, Sindian City, Taipei County, Taiwan 231 (the
"Office").

2. TERM.

The term of this Lease shall start on Nov. 7,
2005, and end on Nov. 6, 2010. In the event that
Landlord is unable to provide the Office on the exact start date, then Landlord
shall provide the Office as soon as possible, and Tenant's obligation to pay
rent shall abate during such period. Tenant shall not be entitled to any other
remedy for any delay in providing the Office.

3. RENT.

Tenant agrees to pay, without demand, to Landlord as rent for
the Office the sum of Twelve Thousand New Taiwan Dollars
(NTD$120,000) per month in advance on the first day of each calendar
month to the Landlord. Landlord may impose a late payment charge of Five
Hundred New Taiwan Dollars (NTD$500) per day for any amount that is more
than five (5) days late. Rent will be prorated if the term does not start on the
first day of the month or for any other partial month of the term.

4. SECURITY DEPOSIT.

Upon execution of this Lease, Tenant deposits with Landlord
NTD$0.00, as security for the performance by Tenant of the terms
of this Lease to be returned to Tenant, Without Interest, following the
full and faithful performance by Tenant of this Lease. In the event of damage to
the Office caused by Tenant or Tenant's family, agents or visitors, Landlord may
use funds from the deposit to repair, but is not limited to this fund and Tenant
remains liable.

5. QUIET ENJOYMENT.

Landlord agrees that if Tenant timely pays the rent and
performs the other obligations in this Lease, Landlord will not interfere with
Tenant's peaceful use and enjoyment of the Office. 

6. USE OF PREMISES.

A. The Office shall be used and occupied by Tenant exclusively
as a private single-family residence. Neither the Office nor any part of the
Office or yard shall be used at any time during the term of this Lease for the
purpose of carrying on any business, profession, or trade of any kind, or for
any purpose other than as a private single-family residence.

B. Tenant shall comply with all the health and sanitary laws,
ordinances, rules, and orders of appropriate governmental authorities and homes
associations, if any, with respect to the Office.

7. CONDITION OF PREMISES.

A.  Tenant agrees that Tenant has examined the Office, including the grounds and all buildings and improvements, and that they are, at the time of this Lease, in good order, good repair, safe, clean, and tenantable condition.

B. Landlord and Tenant agree that a copy of the "Joint Inspection," the original of which is maintained by Landlord and a copy provided to Tenant, attached hereto reflects the condition of the Office at the commencement of Tenant's occupancy.

8. ASSIGNMENT AND SUBLETTING.

A. Tenant shall not assign this Lease, or sublet or grant any concession or license to use the Office or any part of the Office without Landlord's prior written consent.

B. Any assignment, subletting, concession, or license without the prior written consent of Landlord, or an assignment or subletting by operation of law, shall be void and, at Landlord's option, terminate this Lease.

9. ALTERATIONS AND IMPROVEMENTS.

A. Tenant shall make no alterations to the Office or construct any building or make other improvements without the prior written consent of Landlord.

B. All alterations, changes, and improvements built, constructed, or placed on or around the Office by Tenant, with the exception of fixtures properly removable without damage to the Office and movable personal property, shall, unless otherwise
provided by written agreement between Landlord and Tenant, be the property of Landlord and remain at the expiration or earlier termination of this Lease.

10. DAMAGE TO PREMISES.

If the Office, or any part of the Office, shall be partially damaged by fire or other casualty not due to Tenant's negligence or willful act, or that of Tenant's family, agent, or visitor, there shall be an abatement of rent corresponding with the
time during which, and the extent to which, the Office is untenantable. If Landlord shall decide not to rebuild or repair, the term of this Lease shall end and the rent shall be prorated up to the time of the damage.

11. DANGEROUS MATERIALS.

Tenant shall not keep or have on or around the Office any article or thing of a dangerous, inflammable, or explosive character that might unreasonably increase the danger of fire on or around the Office or that might be considered hazardous.

12. UTILITIES.

Tenant shall be responsible for arranging and paying for all utility services required on the premises. Tenant shall not default on any obligation to a utility provider for utility services at the Office.

13. MAINTENANCE AND REPAIR.

A. Tenant will, at Tenant's sole expense, keep and maintain the Office and appurtenances in good and sanitary condition and repair during the term of this Lease. In particular, Tenant shall keep the fixtures in the Office in good order and repair;
keep the furnace clean; and keep the walks free from dirt and debris. Tenant shall, at Tenant's sole expense, make all required repairs to the plumbing, range, oven heating apparatus, electric and gas fixtures, other mechanical devices and systems,
floors, ceilings and walls whenever damage to such items shall have resulted from Tenant's misuse, waste, or neglect, or that of the Tenant's family, agent, or visitor.

B. Tenant agrees that no signs shall be placed or painting done on or about the Office by Tenant without the prior written consent of Landlord.

C.  Tenant agrees to promptly notify Landlord in the event of any damage, defect or destruction of the Office, or the failure of any of Landlord's appliances or mechanical systems, and except for repairs or replacements that are the obligation of
Tenant pursuant to Subsection A above, Landlord shall use its best efforts to repair or replace such damaged or defective area, appliance or mechanical system.

14. RIGHT OF INSPECTION.

Landlord and Landlord's agents shall have the right at all reasonable times during the term of this Lease and any renewal of this Lease to enter the Office for the purpose of inspecting the premises and/or making any repairs to the premises or other
item as required under this Lease.

15. HOLDOVER BY TENANT.

Should Tenant remain in possession of the Office with the consent of Landlord after the expiration of the Term of this Lease, a new tenancy from month to month shall be created which shall be subject to all the terms and conditions of this Lease,
but shall be terminable on thirty (30) days by either party or longer notice if required by law. If Tenant holds over without Landlord's consent, Landlord is entitled to double rent, prorated per each day of the holdover, lasting until Tenant leaves
the Office.

16. SURRENDER OF PREMISES.

At the expiration of the Lease, Tenant shall quit and surrender the Office in as good a condition as it was at the commencement of this Lease, reasonable wear and tear and damages by the elements excepted.

17. FORFEITURE OF SECURITY DEPOSIT - DEFAULT.

It is understood and agreed that Tenant shall not attempt to apply or deduct any portion of any security deposit from the last or any month's rent or use or apply any such security deposit at any time in lieu of payment of rent.  If Tenant fails to
comply, such security deposit shall be forfeited and Landlord may recover the rent due as if any such deposit had not been applied or deducted from the rent due. For the purposes of this paragraph, it shall be conclusively presumed that a Tenant
leaving the Premises while owing rent is making an attempted deduction of deposits. Furthermore, any deposit shall be held as a guarantee that Tenant shall perform the obligations of the Lease and shall be forfeited by the Tenant should 

Tenant breach any of the terms and conditions of this Lease.  In the event of default, by Tenant, of any obligation in this Lease which is not cured by Tenant within fifteen (15) days notice from Landlord, then in addition to forfeiture of the
Security Deposit, Landlord may pursue any other remedy available at law, equity or otherwise.

18. ABANDONMENT.

If at any time during the term of this Lease, Tenant abandons the Office or any of Tenant's personal property in or about the Office, Landlord shall have the following rights: Landlord may, at Landlord's option, enter the Office by any means without
liability to Tenant for damages and may relet the Office, for the whole or any part of the then unexpired term, and may receive and collect all rent payable by virtue of such reletting; Also, at Landlord's option, Landlord may hold Tenant liable for
any difference between the rent that would have been payable under this Lease during the balance of the unexpired term, if this Lease had continued in force, and the net rent for such period realized by Landlord by means of such reletting.  Landlord
may also dispose of any of Tenant's abandoned personal property as Landlord deems appropriate, without liability to Tenant. Landlord is entitled to presume that Tenant has abandoned the Office if Tenant removes substantially all of Tenant's
furnishings from the Office, if the Office is unoccupied for a period of two (2) consecutive weeks, or if it would otherwise be reasonable for Landlord to presume under the circumstances that the Tenant has abandoned the Office.

19. SECURITY.

Tenant acknowledges that Landlord does not provide a security alarm system or any security for the Office or for Tenant and that any such alarm system or security service, if provided, is not represented or warranted to be complete in all respects
or to protect Tenant from all harm. Tenant hereby releases Landlord from any loss, suit, claim, charge, damage or injury resulting from lack of security or failure of security.

20. SEVERABILITY.

If any part or parts of this Lease shall be held unenforceable for any reason, the remainder of this Agreement shall continue in full force and effect.

21. INSURANCE.

Tenant acknowledges that Landlord will not provide insurance coverage for Tenant's property, nor shall Landlord be responsible for any loss of Tenant's property, whether by theft, fire, acts of God, or otherwise.

22. BINDING EFFECT.

The covenants and conditions contained in the Lease shall apply to and bind the heirs, legal representatives, and permitted assigns of the parties.

23. GOVERNING LAW.

It is agreed that this Lease shall be governed by, construed, and enforced in accordance with the laws of the State of Taiwan.

24. ENTIRE AGREEMENT.

This Lease shall constitute the entire agreement between the
parties. Any prior understanding or representation of any kind preceding the
date of this Lease is hereby superseded. This Lease may be modified only by a
writing signed by both Landlord and Tenant.

25. NOTICES. 

Any notice required or otherwise given pursuant to this Lease
shall be in writing; hand delivered, mailed certified return receipt requested,
postage prepaid, or delivered by overnight delivery service, if to Tenant, at
the Office and if to Landlord, at the address for payment of rent. 

IN WITNESS WHEREOF, the parties have caused this Lease to be
executed the day and year first above written.

 

 

	Landlord: 	/s/ Wei-Rur Chen 	 
	  	Mr. Wei-Rur Chen 	 
	  	 	 
	  	 	 
	  	 	 
	Tenant: 	/s/ ColorStars, Inc. 	 
	  	Color Stars, Inc.

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