Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 4.01  

 
 
 
SUBORDINATED INDENTURE  

between 

Brooke Corporation  

and 

Wells Fargo Bank Minnesota, N.A.,

as Trustee 

Subordinated Debentures  

Dated as of                , 2002 

 
 

TABLE OF CONTENTS    
  

	ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	

Section 1.01.	
 	

Definitions	
 	

1
	Section 1.02.	 	Compliance Certificates and Opinions	 	6
	Section 1.03.	 	Form of Documents Delivered to Trustee	 	6
	Section 1.04.	 	Acts of Holders	 	7
	Section 1.05.	 	Notices, Etc., To Trustee and Company	 	8
	Section 1.06.	 	Notice to Holders; Waiver	 	8
	Section 1.07.	 	Counterparts; Effect of Headings and Table of Contents	 	9
	Section 1.08.	 	Successors and Assigns	 	9
	Section 1.09.	 	Severability Clause	 	9
	Section 1.10.	 	Benefits of Indenture	 	9
	Section 1.11.	 	Governing Law	 	9
	Section 1.12.	 	Legal Holidays	 	9
	Section 1.13.	 	Immunity of Stockholders, Directors, Officers and Agents of the Company	 	9
	

ARTICLE II

DEBENTURES TERMS
	

Section 2.01.	
 	

Forms of Debentures	
 	

9
	Section 2.02.	 	Form of Trustee's Certificate of Authentication	 	10
	Section 2.03.	 	Debentures Issuable in Global Form	 	10
	

ARTICLE III

THE DEBENTURES
	

Section 3.01.	
 	

Amount Limited; Issuable in Series	
 	

11
	Section 3.02.	 	Denominations	 	13
	Section 3.03.	 	Execution, Authentication, Delivery and Dating	 	13
	Section 3.04.	 	Temporary Debentures	 	15
	Section 3.05.	 	Registration, Registration of Transfer and Exchange	 	15
	Section 3.06.	 	Mutilated, Destroyed, Lost and Stolen Debentures	 	17
	Section 3.07.	 	Payment of Interest; Interest Rights Reserved	 	17
	Section 3.08.	 	Persons Deemed Owners	 	19
	Section 3.09.	 	Cancellation	 	19
	Section 3.10.	 	Computation of Interest	 	20
	

ARTICLE IV

SATISFACTION AND DISCHARGE
	

Section 4.01.	
 	

Satisfaction and Discharge of Indenture	
 	

20
	Section 4.02.	 	Application of Trust Funds	 	20
	

ARTICLE V

REMEDIES
	

Section 5.01.	
 	

Events of Default	
 	

21
	Section 5.02.	 	Acceleration of Maturity; Rescission and Annulment	 	22
	Section 5.03.	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	22
	Section 5.04.	 	Trustee May File Proofs of Claim	 	23
	Section 5.05.	 	Trustee May Enforce Claims Without Possession of Debentures	 	24
	Section 5.06.	 	Application of Money Collected	 	24
	Section 5.07.	 	Limitation on Suits	 	24
	Section 5.08.	 	Unconditional Rights of Holders to Receive Principal, Premium, if any and Interest	 	25

 

	Section 5.09.	 	Restoration of Rights and Remedies	 	25
	Section 5.10.	 	Rights and Remedies Cumulative	 	25
	Section 5.11.	 	Delay or Omission not Waiver	 	25
	Section 5.12.	 	Control by Holders of Debentures	 	25
	Section 5.13.	 	Waiver of Past Defaults	 	25
	Section 5.14.	 	Waiver of Usury, Stay or Extension Laws	 	26
	

ARTICLE VI

THE TRUSTEE
	

Section 6.01.	
 	

Notice of Defaults	
 	

26
	Section 6.02.	 	Certain Rights of Trustee	 	26
	Section 6.03.	 	Not Responsible for Recitals or Issuance of Debentures	 	28
	Section 6.04.	 	May Hold Debentures	 	28
	Section 6.05.	 	Money Held in Trust	 	28
	Section 6.06.	 	Compensation and Reimbursement	 	28
	Section 6.07.	 	Corporate Trustee Required; Eligibility; Conflicting Interests	 	28
	Section 6.08.	 	Resignation and Removal; Appointment of Successor	 	29
	Section 6.09.	 	Acceptance of Appointment by Successor	 	30
	Section 6.10.	 	Merger, Conversion, Consolidation or Succession to Business	 	30
	Section 6.11.	 	Appointment of Authenticating Agent	 	30
	

ARTICLE VII

HOLDERS' LISTS AND REPORTS BY COMPANY
	

Section 7.01.	
 	

Disclosure of Names and Addresses of Holders	
 	

32
	Section 7.02.	 	[Reserved]	 	32
	Section 7.03.	 	Reports by Company	 	32
	Section 7.04.	 	Company to Furnish Trustee Names and Addresses of Holders	 	32
	

ARTICLE VIII

CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE
	

Section 8.01.	
 	

Consolidations and Mergers of Company and Sales, Leases and Conveyances Permitted Subject to Certain Conditions	
 	

32
	Section 8.02.	 	Rights and Duties of Successor Corporation	 	33
	Section 8.03.	 	Officers' Certificate and Opinion of Counsel	 	33
	

ARTICLE IX

SUPPLEMENTAL INDENTURES
	

Section 9.01.	
 	

Supplemental Indentures Without Consent of Holders	
 	

33
	Section 9.02.	 	Supplemental Indentures with Consent of Holders	 	34
	Section 9.03.	 	Execution of Supplemental Indentures	 	35
	Section 9.04.	 	Effect of Supplemental Indenture	 	35
	Section 9.05.	 	Conformity with Trust Indenture Act	 	35
	Section 9.06.	 	Reference in Debentures to Supplemental Indentures	 	35
	

ARTICLE X

COVENANTS; SUBORDINATION
	

Section 10.01.	
 	

Payment of Principal, Premium, if any, and Interest	
 	

36
	Section 10.02.	 	Maintenance of Office or Agency	 	36
	Section 10.03.	 	Money for Debentures Payments to be Held in Trust	 	37
	Section 10.04.	 	Existence	 	38
	Section 10.05.	 	Maintenance of Properties	 	38

ii

 

	Section 10.06.	 	Insurance	 	38
	Section 10.07.	 	Payment of Taxes and Other Claims	 	38
	Section 10.08.	 	Provision of Financial Information	 	38
	Section 10.09.	 	Statement as to Compliance	 	39
	Section 10.10.	 	Waiver of Certain Covenants	 	39
	Section 10.11.	 	Subordination	 	39
	

ARTICLE XI

REDEMPTION OF DEBENTURES
	

Section 11.01.	
 	

Applicability of Article	
 	

40
	Section 11.02.	 	Election to Redeem; Notice to Trustee	 	40
	Section 11.03.	 	Selection by Trustee of Debentures to be Redeemed	 	40
	Section 11.04.	 	Notice of Redemption	 	40
	Section 11.05.	 	Deposit of Redemption Price	 	41
	Section 11.06.	 	Debentures Payable on Redemption Date	 	41
	Section 11.07.	 	Debentures Redeemed in Part	 	42
	

ARTICLE XII

SINKING FUNDS
	

Section 12.01.	
 	

Applicability of Article	
 	

42
	Section 12.02.	 	Satisfaction of Sinking Fund Payments with Debentures	 	42
	Section 12.03.	 	Redemption of Debentures for Sinking Fund	 	42
	

ARTICLE XIII

REPAYMENT AT THE OPTION OF HOLDERS
	

Section 13.01.	
 	

Applicability of Article	
 	

43
	Section 13.02.	 	Repayment of Debentures	 	43
	Section 13.03.	 	Exercise of Option	 	43
	Section 13.04.	 	When Debentures Presented for Repayment Become Due and Payable	 	44
	Section 13.05.	 	Debentures Repaid in Part	 	44
	

ARTICLE XIV

DEFEASANCE AND COVENANT DEFEASANCE
	

Section 14.01.	
 	

Applicability of Article; Company's Option to Effect Defeasance or Covenant Defeasance	
 	

44
	Section 14.02.	 	Defeasance and Discharge	 	45
	Section 14.03.	 	Covenant Defeasance	 	45
	Section 14.04.	 	Conditions to Defeasance or Covenant Defeasance	 	45
	Section 14.05.	 	Deposited Money and Government Obligations to be Held in Trust; Other Miscellaneous Provisions	 	47
	

EXHIBIT A	
 	

FORM OF REDEEMABLE OR NONREDEEMABLE DEBENTURE	
 	

A-1

iii

        THIS SUBORDINATED INDENTURE (this "Indenture") dated as of                ,
2002, by and between  Brooke Corporation, a Kansas corporation (the "Company") having its principal office at 10895 Grandview Drive, Suite 250, Overland Park, Kansas 66210,
and Wells Fargo Bank Minnesota, N.A., a national banking association organized and existing under the laws of the United States of America, as Trustee
hereunder (the "Trustee"), having a Corporate Trust Office at Sixth Street and Marquette, Minneapolis, MN 55479. 

RECITALS OF THE COMPANY  

        The Company deems it necessary to issue from time to time for its lawful purposes debt Securities (hereinafter called the "Debentures") in series evidencing its
indebtedness and has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of the Debentures to be issued in one or more series as provided in this
Indenture. 

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

        NOW,
THEREFORE THIS INDENTURE WITNESSETH: 

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

ARTICLE I  

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION  

        Section 1.01.    Definitions.    For all purposes of this Indenture, except as otherwise expressly provided
unless the context otherwise requires: 

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

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

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

        "Act" when used with respect to any Holder, has the meaning specified in Section 1.04. 

        "Advance Interest" has the meaning specified in Section 10.01(a). 

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

        "Authenticating Agent" means the Trustee or any other authenticating agent appointed by the Trustee pursuant to Section 6.11 to act
on behalf of the Trustee to authenticate Debentures. 

        "Authorized Newspaper" means a newspaper, printed in the English language or in an official language of the country of publication,
customarily published on each Business Day, whether or not published on Saturdays, Sundays or holidays, and of general circulation in each place in connection with which the term is used or in the
financial community of each such place. Whenever successive publications are required to be made in Authorized Newspapers, the successive publications may be made in the same or in different
Authorized Newspapers in the same city meeting the foregoing requirements and in each case on any Business Day. 

 

        "Bankruptcy Law" has the meaning specified in Section 5.01. 

        "Board of Directors" means the board of directors of the Company, or any committee of that board duly authorized to act hereunder. 

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

        "Business Day" when used with respect to any Place of Payment or any other particular location referred to in this Indenture or in the
Debentures, means, unless otherwise specified with respect to any Debentures pursuant to Section 3.01, any day, other than a Saturday or Sunday, that is not a day on which banking institutions
in that Place of Payment or particular location are authorized or required by law, regulation or executive order to close. 

        "Cede & Co." means Cede & Co., the nominee of DTC, and any successor nominee of DTC. 

        "Commission" means the Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of
1934, as amended, or, if at any time after execution of this instrument such Commission is not existing and performing the duties now assigned to it under such Act, then the body performing such
duties on such date. 

        "Common Stock" means, with respect to any Person, all shares of capital stock issued by such Person other than any Preferred Stock. 

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

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

        "Conflicting Interest" shall have the meaning set forth in Section 310(b)(1) of the Trust Indenture Act of 1939, as amended. 

        "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 Sixth Street and Marquette, MAC N9303-110, Minneapolis, MN 55479. 

        "Corporation" includes corporations, associations, companies and business trusts. 

        "Custodian" has the meaning specified in Section 5.01. 

        "Debenture" has the meaning stated in the first recital of this Indenture and, more particularly, means any Debenture or Debentures of
each series authenticated and delivered under this Indenture, the form of which is attached as Exhibit A. 

        "Debenture Register" and "Debenture Registrar" have the respective meanings specified in
Section 3.05. 

        "Defaulted Interest" has the meaning specified in Section 3.07. 

        "Dollar" or "$" means a dollar or other equivalent unit in such coin or currency of the
United States of America as at the time shall be legal tender for the payment of public and private debts. 

        "DTC" means The Depository Trust Company, New York, New York, and its successors and assigns. 

2

 

        "Eligible Investments" means (a) interest-bearing time or money market deposits of financial institutions whose
long-term unsecured debt obligations are rated at least (x) "AA-" (or its equivalent) by Fitch, (y) "Aa3" (or its equivalent) by Moody's and (z) at least
"AA-" by Standard & Poor's, if the deposits are to be held in the account more than 30 days, including the Trustee if it has such ratings, (b) investments rated
"A-1" or "P-1" by any nationally recognized statistical rating organization, or (c) money market funds registered under the Investment Company Act of 1940, as amended.
Each investment described in clauses (a) and (b) of the preceding sentence shall, unless specifically provided otherwise herein, mature (or be at all times subject to liquidation and not
restricted as to liquidation) no later than one Business Day before the Interest Payment Date next succeeding the date of investment. 

        "Event of Default" has the meaning specified in Article V. 

        "Fiscal Year" means the fiscal year of the Company, which begins on January 1, and ends on December 31 of the same calendar
year. 

        "GAAP" means generally accepted accounting principles, as in effect from time to time, as used in the United States applied on a
consistent basis. 

        "Global Debenture" means a security evidencing all or a part of a series of Debentures issued to and registered in the name of the
depositary for such series, or its nominee, in accordance with Section 3.05, and bearing the legend prescribed in Section 2.03. 

        "Government Obligations" means securities which are (a) direct obligations of the United States or the government which issued the
Foreign Currency in which the Debentures of a particular series are payable, for the payment of which its full faith and credit is pledged or (b) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States or such government which issued the Foreign Currency in which the Debentures of such series are payable, the payment of
which is unconditionally guaranteed as a full faith and credit obligation by the United States or such other government, which, in either case, are not callable or redeemable at the option of the
issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such Government Obligation or a specific payment of interest on or
principal of any such Government Obligation held by such custodian for the account of the holder of a depository 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 depository receipt from any amount received by the custodian in respect of the Government Obligation or the specific
payment of interest on or principal of the Government Obligation evidenced by such depository receipt. 

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

        "Indenture" means this instrument as originally executed or as it may be supplemented or amended from time to time by one or more
indentures supplemental hereto entered into pursuant to the applicable provisions hereof, and shall include the terms of particular series of Debentures established as contemplated by
Section 3.01. 

        "Interest" when used with respect to an Original Issue Discount Debenture which by its terms bears interest only after Maturity, means
interest payable on or after Maturity and when used with respect to any other Debenture, means interest payable on an Interest Payment Date at the annual interest rate set forth in the Debenture. 

        "Interest Payment Date" when used with respect to any Debenture, means, except as otherwise specified with respect to a series,
semi-annually on            1 and            1 commencing
on            1, 2003. 

        "Maturity" when used with respect to any Debenture, means the date on which the principal of such Debenture or an installment of principal
becomes due and payable as therein or herein provided, 

3

 

whether at the Stated Maturity or by declaration of acceleration, notice of redemption, notice of option to elect repayment or otherwise. 

        "Officers' Certificate" means a certificate signed by the Chairman of the Board of Directors, the President, any Executive Vice President,
any Senior Vice President or Vice President and by the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, and delivered to the Trustee. 

        "Opinion of Counsel" means a written opinion of counsel, who may be counsel for the Company or who may be an employee of or other counsel
for the Company and who shall be satisfactory to the Trustee. 

        "Original Issue Discount Debenture" means any Debenture which provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02. 

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

        (a)  securities
theretofore cancelled by the Trustee or delivered to the Trustee for cancellation; 

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

        (c)  securities,
except to the extent provided in Sections 14.02 and 14.03, with respect to which the Company has effected defeasance and/or covenant defeasance as provided
in Article XIV; 

        (d)  securities
which have been paid pursuant to Section 3.06 or in exchange for or in lieu of which other Debentures have been authenticated and delivered pursuant to
this Indenture, other than any such Debentures in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Debentures are held by a bona fide purchaser in
whose hands such Debentures are valid obligations of the Company; and 

        (e)  securities
converted into Common Stock or Preferred Stock pursuant to or in accordance with this Indenture if the terms of such Debentures provide for convertibility
pursuant to Section 3.01; 

provided,
however, that in determining whether the Holders of the requisite principal amount of the Outstanding Debentures have given any request, demand, authorization, direction, notice, consent or
waiver hereunder or are present at a meeting of Holders for quorum purposes, (i) the principal amount of an Original Issue Discount Debenture that may be counted in making such determination or
calculation and that shall be deemed to be Outstanding for such purpose shall be equal to the amount of principal thereof that would be (or shall have been declared to be) due and payable, at the time
of such determination, upon a declaration of acceleration of the maturity thereof pursuant to Section 5.02, and (ii) Debentures owned by the Company or of any other obligor upon the
Debentures or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in making
such calculation or in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Debentures which the Trustee knows to be so owned shall be so disregarded.
Debentures owned as provided in clause (ii) above which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act 

4

 

with respect to such Debentures and that the pledgee is not the Company or any other obligor upon the Debentures or any Affiliate of the Company or of such other obligor. 

        "Paying Agent" means any Person authorized by the Company to pay the principal of (and premium, if any) or interest on any Debentures on
behalf of the Company. 

        "Payment Account" means the account by that name established and maintained pursuant to Section 10.01(b). 

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

        "Place of Payment" when used with respect to the Debentures of or within any series, means the place or places where the principal of (and
premium, if any) and interest on such Debentures are payable as specified as contemplated by Sections 3.01 and 10.02. 

        "Predecessor Debenture" of any particular Debenture means every previous Debenture evidencing all or a portion of the same debt as that
evidenced by such particular Debenture; and, for the purposes of this definition, any Debenture authenticated and delivered under Section 3.06 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Debenture. 

        "Preferred Stock" means, with respect to any Person, all capital stock, if any, issued by such Person that are entitled to a preference or
priority over any other capital stock issued by such Person with respect to any distribution of such Person's assets, whether by dividend or upon any voluntary or involuntary liquidation, dissolution
or winding up. 

        "Redemption Date" when used with respect to any Debenture to be redeemed, in whole or in part, means the Interest Payment Date fixed for
such redemption by or pursuant to this Indenture. 

        "Redemption Price" when used with respect to any Debenture to be redeemed, means, unless otherwise applicable with respect to a series, an
amount equal to the principal balance of the Debenture plus accrued interest to the date of redemption. 

        "Registered Debenture" shall mean any Debenture which is registered in the Debenture Register. 

        "Regular Record Date" for the interest payable on any Interest Payment Date on the Registered Debentures of or within any series means the
fifteenth day of the month preceding the calendar month in which such Interest Payment Date occurs or any other date specified for that purpose as contemplated by Section 3.01, whether or not a
Business Day. 

        "Repayment Date" means, when used with respect to any Debenture to be repaid at the option of the Holder, the date fixed for such
repayment by or pursuant to this Indenture. 

        "Responsible Officer" when used with respect to the Trustee, means the chairman or vice chairman of the board of directors, the chairman
or vice chairman of the executive committee of the board of directors, the president, any vice president (whether or not designated by a number or a word or words added before or after the title "vice
president"), the secretary, any assistant secretary, the treasurer, any assistant treasurer, the cashier, any assistant cashier, any trust officer or assistant trust officer, the controller or any
other officer of the Trustee customarily performing functions similar to those performed by any of the above-designated officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of such officer's knowledge and familiarity with the particular subject. 

        "Significant Subsidiary" means any Subsidiary which is a "significant subsidiary" (as defined in Article I,
Rule 1-02 of Regulation S-X promulgated under the Securities Act of 1933, as amended) of the Company. 

5

  

        "Special Record Date" for the payment of any Defaulted Interest on the Registered Debentures of or within any series means a date fixed by
the Company pursuant to Section 3.07. 

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

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

        "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939, as amended and as in
force at the date as of which this Indenture was executed, except as provided in Section 9.05. 

        "Trustee" means the Person named as the "Trustee" in the first paragraph of this Indenture until a successor Trustee shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter "Trustee" shall mean or include each Person who is then a Trustee hereunder. 

        "United States" means, unless otherwise specified with respect to any Debentures pursuant to Section 3.01, the United States of
America (including the states and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction. 

        "Yield to Maturity" means the yield to maturity, computed at the time of issuance of a Debenture (or, if applicable, at the most recent
redetermination of interest on such Debenture) and as set forth in such Debenture in accordance with generally accepted United States bond yield computation principles. 

        Section 1.02. Compliance Certificates and Opinions .    Upon any application or request by the Company to the Trustee to
take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and an Opinion of Counsel to the effect that, in the opinion of such counsel, all such conditions precedent, if any, have been complied with,
except that in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular
application or request, no additional certificate or opinion need be furnished. 

        Every
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (including certificates delivered pursuant to Section 10.09)
shall include: 

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

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

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

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

        Section 1.03. Form of Documents Delivered to Trustee.    In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so 

6

 

certified or covered by only one document, but one such Person may certify or give an opinion as to some matters and one or more other such Persons as to other matters, and any such Person may
certify or give an opinion as to such matters in one or several documents. 

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

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

        Section 1.04. Acts of Holders .    Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders of the Outstanding Debentures of all series or one or more series, as the case may be, may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or by agents duly appointed in writing. Except as herein otherwise expressly provided, such action shall become effective
when such instrument or instruments or record or both are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments and any such record (and
the action embodied therein and evidenced thereby) are herein sometimes referred to as the "Act" of the Holders signing such instrument or instruments or so voting at any such meeting. Proof of
execution of any such instrument or of a writing appointing any such agent, or of the holding by any Person of a Debenture, shall be sufficient for any purpose of this Indenture and conclusive in
favor of the Trustee and the Company and any agent of the Trustee or the Company, if made in the manner provided in this Section 1.04. 

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

        The
ownership of Registered Debentures shall be proved by the Debenture Register. As to any matter relating to beneficial ownership interests in any Global Debenture, the appropriate
depositary's records shall be dispositive for purposes of this Indenture. 

        If
the Company shall solicit from the Holders of Registered Debentures any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its
option, in or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so. Such record date shall be the record date specified in or pursuant to such Board Resolution, which shall be a date not earlier than the
date 30 days prior to the first solicitation of Holders generally in connection therewith and not later than the date such
solicitation is completed. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only
the 

7

 

Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Outstanding Debentures have
authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Debentures shall be computed as of such
record date; provided, however, that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later then eleven months after the record date. 

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

        Section 1.05. Notices, Etc., To Trustee and Company.    Any request, demand, authorization, direction, notice, consent,
waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with: 

        (a)  the
Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at the
address of its Corporate Trust Office specified in the first paragraph of this Indenture, Attention: Corporate Trust Department; 

        (b)  the
Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of its principal office specified in the first paragraph of this Indenture or at any other address previously furnished in
writing to the Trustee by the Company, Attention: Chief Financial Officer (with a copy to the Company's general counsel); or 

        (c)  either
the Trustee or the Company, by the other party shall be sufficient for every purpose hereunder if given by facsimile transmission, receipt confirmed by telephone
followed by an original copy delivered by guaranteed overnight courier; if to the Trustee at facsimile number (612) 667-2160; and if to the Company at facsimile number
(913) 451-3183. 

        Section 1.06. Notice to Holders; Waiver.    Where this Indenture provides for notice of any event to Holders of
Registered Debentures by the Company or the Trustee, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid,
to each such Holder affected by such event, at his address as it appears in the Debenture Register, not later than the latest date, and not earlier than the earliest date, if any, prescribed for the
giving of such notice. In any case where notice to Holders of Registered Debentures is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other Holders of Registered Debentures given as provided herein. Any notice mailed to a Holder in the manner herein prescribed shall
be conclusively deemed to have been received by such Holder, whether or not such Holder actually receives such notice. 

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

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

8

 

        Where
this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver. 

        Section 1.07. Counterparts; Effect of Headings and Table of Contents.    This Indenture may be executed in any number of
counterparts, each of which when executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Indenture. The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the construction hereof. 

        Section 1.08. Successors and Assigns.    All covenants and agreements in this Indenture by the Company shall bind its
successors and assigns, whether so expressed or not. 

        Section 1.09. Severability Clause.    In case any provision in this Indenture or in any Debenture shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

        Section 1.10. Benefits of Indenture.    Nothing in this Indenture or in the Debentures, express or implied, shall give to
any Person, other than the parties hereto, any Debenture Registrar, any Paying Agent, any Authenticating Agent and their successors hereunder and the Holders any benefit or any legal or equitable
right, remedy or claim under this Indenture. 

        Section 1.11. Governing Law.    This Indenture and the Debentures shall be governed by and construed in accordance with
the law of the State of Kansas applicable to agreements made and to be performed therein. 

        Section 1.12. Legal Holidays.    In any case where any Interest Payment Date, Redemption Date, Repayment Date, Stated
Maturity or Maturity of any Debenture or the last date on which a Holder has the right to convert or exchange a Debenture shall not be a Business Day at any Place of Payment, then (notwithstanding any
other provision of this Indenture or any Debenture other than a provision in the Debentures of any series which specifically states that such provision shall apply in lieu hereof), payment of interest
or principal (and premium, if any) or conversion or exchange of such security need not be made at such Place of Payment on such date, but (except as otherwise provided in the supplemental indenture
with respect to such Debenture) may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the Interest Payment Date, Redemption Date,
Repayment Date or at the Stated Maturity or Maturity, or on such last day of conversion or exchange; provided, that no interest shall accrue on the amount so payable for the period from and after such
Interest Payment Date, Redemption Date, Repayment Date, Stated Maturity or Maturity, as the case may be. 

        Section 1.13. Immunity of Stockholders, Directors, Officers and Agents of the
Company. No recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in any Debenture, or
because of any indebtedness evidenced thereby, shall be had against any past, present or future stockholder, employee, officer or director, as such, of the Company or of any successor, either directly
or through the Company or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all
such liability being expressly waived and released by the acceptance of the Debentures by the Holders and as part of the consideration for the issue of the Debentures. 

9

 

 
 

ARTICLE II    
    
    DEBENTURES TERMS    
  

        Section 2.01. Forms of Debentures.    The Registered Debentures, if any, of each series shall be substantially in the
form of Exhibit A hereto or in such other form as shall be established in one or more indentures supplemental hereto or approved from time to time by or pursuant to a Board Resolution in
accordance with Section 3.01, shall have such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture or any indenture supplemental
hereto, and may have such letters, numbers or other marks of identification or designation and such legends or endorsements placed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which the Debentures may be listed, or to conform to usage. 

        Subject
to Section 3.04, the definitive Debentures shall be printed, lithographed or engraved, or produced by any combination of these methods, on a steel engraved border or steel
engraved borders or mechanically reproduced on safety paper or may be produced in any other manner, all as determined by the officers of the Company executing such Debentures, as evidenced by their
execution of such Debentures. 

        Section 2.02. Form of Trustee's Certificate of Authentication.    Subject to Section 6.11, the Trustee's
certificate of authentication shall be in substantially the following form: 

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

	 	 	                                , as Trustee
	 	 	By	 	    

	 	 	Authorized Signatory

        Section 2.03. Debentures Issuable in Global Form.    If Debentures of or within a series are issuable in the form of one
or more Global Debentures, then, notwithstanding clause (h) of Section 3.01 and the provisions of Section 3.02, any such Global Debenture or Debentures may provide that it or they
shall represent the aggregate amount of all Outstanding Debentures of such series (or such lesser amount as is permitted by the terms thereof) from time to time endorsed thereon and may also provide
that the aggregate amount of Outstanding Debentures of such series represented thereby may from time to time be increased or decreased to reflect exchanges. Any endorsement of any Global Debenture to
reflect the amount, or any increase or decrease in the amount, or changes in the rights of Holders thereof, of Outstanding Debentures represented thereby shall be made by the Trustee in such manner or
by such Person or Persons as shall be specified therein or in the Company Order to be delivered to the Trustee pursuant to Section 3.03 or 3.04. Subject to the provisions of Section 3.03
and, if applicable, Section 3.04, the Trustee shall deliver and redeliver any Global Debenture in permanent global form in the manner
and upon instructions given by the Person or Persons specified therein or in the applicable Company Order. If a Company Order pursuant to Section 3.03 or 3.04 has been, or simultaneously is,
delivered, any instructions by the Company with respect to endorsement or delivery or redelivery of a Global Debenture shall be in writing but need not comply with Section 1.02 and need not be
accompanied by an Opinion of Counsel. 

        The
provisions of the last sentence of Section 3.03 shall apply to any Debenture represented by a Global Debenture if such Debenture was never issued and sold by the Company and
the Company delivers to the Trustee the Global Debenture together with written instructions (which need not comply with Section 1.02 and need not be accompanied by an Opinion of Counsel) with
regard to the reduction in the principal amount of Debentures represented thereby, together with the written statement contemplated by the last sentence of Section 3.03. 

10

 

        Notwithstanding
the provisions of Section 3.07, unless otherwise specified as contemplated by Section 3.01, payment of principal of and any premium and interest on any
Global Debenture shall be made to the Person or Persons specified therein. 

        Notwithstanding
the provisions of Section 3.08 and except as provided in the preceding paragraph, the Company, the Trustee and any agent of the Company and the Trustee shall treat
as the Holder of such principal amount of Outstanding Debentures represented by a permanent Global Debenture the Holder of such permanent Global Debenture in registered form. 

        Any
Global Debenture authenticated and delivered hereunder shall bear a legend in substantially the following form: 

This
Debenture is a Global Debenture within the meaning set forth in the Indenture hereinafter referred to and is registered in the name of a Depositary or a nominee of a Depositary. This Debenture is
exchangeable for Debentures registered in the name of a person other than the Depositary or its nominee only in the limited circumstances described in the Indenture, and may not be transferred except
as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or its nominee to a successor
Depositary or its nominee. 

 
 

ARTICLE III    
    
    THE DEBENTURES    
  

        Section 3.01. Amount Limited; Issuable in Series..    The aggregate principal amount of Debentures of all series which
may be authenticated and delivered under this Indenture is limited to $10,000,000. 

        The
Debentures may be issued in one or more series. There shall be established in one or more Board Resolutions or pursuant to authority granted by one or more Board Resolutions and,
subject to Section 3.03, set forth in an Officers' Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Debentures of any series: 

        (a)  the
title of the Debentures of the series (which shall distinguish the Debentures of such series from all other series of Debentures by alphabetical designation); 

        (b)  any
limit upon the aggregate principal amount of the Debentures of the series that may be authenticated and delivered under this Indenture (except for Debentures
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Debentures of the series pursuant to Section 3.04, 3.05, 3.06, 9.06, 11.07 or 13.05); 

        (c)  the
date or dates, or the method by which such date or dates will be determined, on which the principal of the Debentures of the series shall be payable; 

        (d)  the
rate or rates at which the Debentures of the series shall bear interest, if any, or the method by which such rate or rates shall be determined, the date or dates
from which such interest shall accrue or the method by which such date or dates shall be determined, the Interest Payment Dates on which such interest will be payable and the Regular Record Date, if
any, for the interest payable on any Registered Debenture on any Interest Payment Date, or the method by which such date shall be determined, and the basis upon which interest shall be calculated if
other than that of a 360-day year of twelve 30-day months; 

        (e)  the
place or places where the principal of (and premium, if any), interest, if any, on Debentures of the series shall be payable, any Debentures of the series may be
surrendered for registration of
transfer, exchange or conversion (each to the extent applicable) and notices or demands to or upon the Company in respect of the Debentures of the series and this Indenture may be served; 

11

 

        (f)    the
period or periods within which, the price or prices at which, the currency or currencies, currency unit or units or composite currency or currencies in which, and
other terms and conditions upon which Debentures of the series may be redeemed, in whole or in part, at the option of the Company, if the Company is to have the option; 

        (g)  the
obligation, if any, of the Company to redeem, repay or purchase Debentures of the series pursuant to any sinking fund or analogous provision or at the option of a
Holder thereof, and the period or periods within which or the date or dates on which, the price or prices at which, the currency or currencies, currency unit or units or composite currency or
currencies in which, and other terms and conditions upon which Debentures of the series shall be redeemed, repaid or purchased, in whole or in part, pursuant to such obligation; 

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

        (i)    if
other than the Trustee, the identity of each Debenture Registrar, Authentication Agent and/or Paying Agent; 

        (j)    the
price (expressed as a percentage of the principal amount thereof or otherwise) at which the Debentures of the series will be issued and, if other than the principal
amount thereof, the portion of the principal amount of Debentures of the series that shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 5.02 or, if
applicable, the portion of the principal amount of Debentures of the series that is convertible in accordance with the provisions of this Indenture, or the method by which such portion shall be
determined; 

        (k)  whether
the amount of payments of principal of (and premium, if any) or interest, if any, on the Debentures of the series may be determined with reference to an index,
formula or other method (which index, formula or method may be based, without limitation, on one or more currencies, currency units, composite currencies, commodities, equity indices or other
indices), and the manner in which such amounts shall be determined; 

        (l)    whether
the principal of (and premium, if any) or interest on the Debentures of the series are to be payable, at the election of the Company or a Holder thereof, in a
currency or currencies, currency unit
or units or composite currency or currencies other than that in which such Debentures are denominated or stated to be payable, the period or periods within which, and the terms and conditions upon
which, such election may be made, and the time and manner of, and identity of the exchange rate agent with responsibility for, determining the exchange rate between the currency or currencies,
currency unit or units or composite currency or currencies in which such Debentures are denominated or stated to be payable and the currency or currencies, currency unit or units or composite currency
or currencies in which such Debentures are to be so payable; 

        (m)  provisions,
if any, granting special rights to the Holders of Debentures of the series upon the occurrence of such events as may be specified and the provisions, if any,
relating to the subordination of the Debentures of the series to other obligations of the Company; 

        (n)  any
deletions from, modifications of or additions to the Events of Default or covenants of the Company with respect to Debentures of the series, whether or not such
Events of Default or covenants are consistent with the Events of Default or covenants set forth herein, and any change in the right of any trustee or any of the Holders to declare the principal amount
of any such Debentures due and payable; 

        (o)  the
Person to whom any interest on any Registered Debenture of the series shall be payable, if other than the person in whose name that Debenture (or one or more
Predecessor Debentures) is registered at the close of business on the Regular Record Date for such interest, and the extent to which, or the manner in which, any interest payable on a temporary Global
Debenture on an Interest Payment Date will be paid if other than in the manner provided in Section 3.04; 

        (p)  the
applicability, if any, of Sections 14.02 and/or 14.03 to the Debentures of the series and any provisions in modification of, in addition to or in lieu of any of the
provisions of Article XIV; 

12

  

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

        (r)  the
obligation, if any, of the Company to permit the conversion of the Debentures of such series into the Company's Common Stock or Preferred Stock, as the case may be,
and the terms and conditions upon which such conversion shall be effected (including, without limitation, the initial conversion price or rate, the conversion period, any adjustment of the applicable
conversion price and any requirements relative to the reservation of such shares for purposes of conversion) and applicable limitations on the ownership or transferability of the Common Stock or
Preferred Stock into which such Debentures are convertible; 

        (s)  the
provisions, if any, relating to any security provided for the Debentures of the series; 

        (t)    any
other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture); and 

        (u)  the
rate or rates at which the Debentures of the series shall bear Default Interest, or the method by which such rate or rates shall be determined, and the basis upon
which Default Interest shall be calculated if other than that of a 360-day year of twelve 30-day months. 

        All
Debentures of any one series shall be substantially identical except, in the case of Registered Debentures, as to denomination and except as may otherwise be provided in or pursuant
to such Board Resolution (subject to Section 3.03) and set forth in such Officers' Certificate or in any such indenture supplemental hereto. All Debentures of any one series need not be issued
at the same time and, unless otherwise provided, a series may be reopened, without the consent of the Holders, for issuances of additional Debentures of such series. 

        If
any of the terms of the Debentures of any series are established by action taken pursuant to one or more Board Resolutions, a copy of an appropriate record of such action(s) shall be
certified by the
Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or before the delivery of the Officers' Certificate setting forth the terms of the Debentures of such series. 

        Section 3.02.    Denominations.    The Debentures of each series shall be issuable in such denominations as
shall be specified as contemplated by Section 3.01. With respect to Debentures of any series denominated in Dollars, in the absence of any such provisions with respect to the Debentures of any
series, the Debentures of such series, other than Debentures issued in global form (which may be of any denomination), shall be issuable in denominations of $1,000 and any integral multiple thereof. 

        Section 3.03.    Execution, Authentication, Delivery and Dating.    The Debentures shall be executed on behalf
of the Company by its Chairman of the Board, its President or one of its Executive or Senior Vice Presidents, and attested by its Secretary or one of its Assistant Secretaries. The signature of any of
these officers on the Debentures may be manual or facsimile signatures of the present or any future such authorized officer and may be imprinted or otherwise reproduced on the Debentures. 

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

        At
any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Debentures of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such Debentures, and the Trustee in accordance with the Company Order shall authenticate and deliver such
Debentures. 

13

 

        If
all the Debentures of any series are not to be issued at one time and if the Board Resolution or supplemental indenture establishing such series shall so permit, such Company Order
may set forth procedures acceptable to the Trustee for the issuance of such Debentures and determining the terms of particular Debentures of such series, such as interest rate or formula, maturity
date, date of issuance and date from which interest shall accrue. In authenticating such Debentures, and accepting the additional responsibilities under this Indenture in relation to such Debentures,
the Trustee shall be entitled to receive, and shall be fully protected in relying upon: 

        (a)  an
Opinion of Counsel stating that: 

        (i)    the
form or forms of such Debentures have been established in conformity with the provisions of this Indenture; 

        (ii)  the
terms of such Debentures have been established in conformity with the provisions of this Indenture; and 

        (iii)  such
Debentures, when completed by appropriate insertions and executed and delivered by the Company to the Trustee for authentication in accordance with this
Indenture, authenticated and delivered by the Trustee in accordance with this Indenture and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will
constitute legal, valid and binding obligations of the Company, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization and other
similar laws of general applicability relating to or affecting the enforcement of creditors' rights generally and to general equitable principles; and 

        (b)  an
Officers' Certificate stating that all conditions precedent provided for in this Indenture relating to the issuance of the Debentures have been complied with and
that, to the best of the knowledge of the signers of such certificate, no Event of Default with respect to any of the Debentures shall have occurred and be continuing. 

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

        Notwithstanding
the provisions of Section 3.01 and of the preceding paragraph, if all the Debentures of any series are not to be issued at one time, it shall not be necessary to
deliver an Officers' Certificate otherwise required pursuant to Section 3.01 or a Company Order, or an Opinion of Counsel or an Officers' Certificate otherwise required pursuant to the
preceding paragraph at the time of issuance of each Debenture of such series, but such order, opinion and certificates, with appropriate modifications to cover such future issuances, shall be
delivered at or before the time of closing of each such series or the closing of any portion thereof. 

        Each
Registered Debenture shall be dated the date of its authentication. 

        No
Debenture shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Debenture a certificate of authentication
substantially in the form provided for herein duly executed by the Trustee by manual signature of an authorized signatory, and such certificate upon any Debenture shall be conclusive evidence, and the
only evidence, that such Debenture has been duly authenticated and delivered hereunder and is entitled to the benefits of this
Indenture. Notwithstanding the foregoing, if any Debenture (including a Global Debenture) shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the
Company shall deliver such Debenture to the Trustee for cancellation as provided in Section 3.09 together with a written statement (which need not comply with Section 1.02 and need not
be accompanied by an Opinion of Counsel) stating that such Debenture has never been issued and sold by 

14

 

the Company, for all purposes of this Indenture such Debenture shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture. 

        Section 3.04.    Temporary Debentures.    Pending the preparation of definitive Debentures of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Debentures which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Debentures in lieu of which they are issued, in registered form, and with such appropriate insertions, omissions, substitutions
and other variations as the officers executing such Debentures may determine, as conclusively evidenced by their execution of such Debentures. In the case of Debentures of any series, such temporary
Debentures may be in global form. 

        Except
in the case of temporary Debentures (which shall be exchanged as otherwise provided herein or as otherwise provided in or pursuant to a Board Resolution), if temporary Debentures
of any series are issued, the Company will cause definitive Debentures of that series to be prepared without unreasonable delay. After the preparation of definitive Debentures of such series, the
temporary Debentures of such series shall be exchangeable for definitive Debentures of such series upon surrender of the temporary Debentures of such series at the office or agency of the Company in a
Place of Payment for that series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Debentures of any series, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of definitive Debentures of the same series of authorized denominations. Until so exchanged, the temporary Debentures of any
series shall in all respects be entitled to the same benefits under this Indenture as definitive Debentures of such series. 

        Section 3.05.    Registration, Registration of Transfer and Exchange.    The Company shall cause to be kept at
the Corporate Trust Office of the Trustee or in any office or agency of the Company in a Place of Payment a register for each series of Debentures (the registers maintained in such office or in any
such office or agency of the Company in a Place of Payment being herein sometimes referred to collectively as the "Debenture Register") in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Debentures and of transfers of Debentures. The Debenture Register shall be in written form or any other form capable of being converted
into written form within a reasonable time. The Trustee, at its Corporate Trust Office, is hereby initially appointed "Debenture Registrar" for the purpose of registering Debentures and transfers of
Debentures on such Debenture Register as herein provided. If the Trustee shall cease to be Debenture Registrar, it shall have the right to examine the Debenture Register at all reasonable times. 

        Subject
to the provisions of this Section 3.05, upon surrender for registration of transfer of any Registered Debenture of any series at any office or agency of the Company in a
Place of Payment for that series, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Debentures of the
same series, of any authorized denominations and of a like aggregate principal amount, bearing a number not contemporaneously outstanding, and containing identical terms and provisions. 

        Subject
to the provisions of this Section 3.05, at the option of the Holder, Debentures of any series may be exchanged for other Debentures of the same series, of any authorized
denomination or denominations and of a like aggregate principal amount, containing identical terms and provisions, upon surrender of the Debentures to be exchanged at any such office or agency.
Whenever any such Debentures are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Debentures which the Holder making the exchange is entitled
to receive. 

        Notwithstanding
the foregoing, except as otherwise specified as contemplated by Section 3.01, any permanent Global Debenture shall be exchangeable only as provided in this
paragraph. If the depositary for any permanent Global Debenture is DTC, then, unless the terms of such Global 

15

 

Debenture expressly permit such Global Debenture to be exchanged in whole or in part for definitive Debentures, a Global Debenture may be transferred, in whole but not in part, only to a nominee of
DTC, or by a nominee of DTC to DTC, or to a successor to DTC for such Global Debenture selected or approved by the Company or to a nominee of such successor to DTC. If at any time DTC notifies the
Company that it is unwilling or unable to continue as depositary for the applicable Global Debenture or Debentures or if at any time DTC ceases to be a clearing agency registered under the Securities
Exchange Act of 1934, as amended, if so required by applicable law or regulation, the Company shall appoint a successor depositary with respect to such Global Debenture or Debentures. If (a) a
successor depositary for such Global Debenture or Debentures is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such unwillingness,
inability or ineligibility, (b) an Event of Default has occurred and is continuing and the beneficial owners representing a majority in principal amount of the applicable series of Debentures
represented by such Global Debenture or Debentures advise DTC to cease acting as depositary for such Global Debenture or Debentures or (c) the Company, in its sole discretion, determines at any
time that all Outstanding Debentures (but not less than all) of any series issued or issuable in the form of one or more Global Debentures shall no longer be represented by such Global Debenture or
Debentures, then the Company shall execute, and the Trustee shall authenticate and deliver, definitive Debentures of like series, rank, tenor and terms in definitive form in an aggregate principal
amount equal to the principal amount of such Global Debenture or Debentures. If any beneficial owner of an interest in a permanent Global Debenture is otherwise entitled to exchange such interest for
Debentures of such series and of like tenor and principal amount of another authorized form and denomination, as specified as contemplated by Section 3.01 and provided that any applicable
notice provided in the permanent Global Debenture shall have been given, then without unnecessary delay but in any event not later than the earliest date on which such interest may be so exchanged,
the Company shall execute, and the Trustee shall authenticate and deliver, definitive Debentures in aggregate principal amount equal to the principal amount of such beneficial owner's interest in such
permanent Global Debenture. On or after the earliest date on which such interests may be so exchanged, such permanent Global Debenture shall be surrendered for exchange by DTC or such other depositary
as shall be specified in the Company Order with respect thereto to the Trustee, as the Company's agent for such purpose; provided, however, that no such exchanges may occur during a period beginning
at the opening of business
15 days before any selection of Debentures to be redeemed and ending on the relevant Redemption Date if the Debenture for which exchange is requested may be among those selected for redemption.
If a Registered Debenture is issued in exchange for any portion of a permanent Global Debenture after the close of business at the office or agency where such exchange occurs on (i) any Regular
Record Date and before the opening of business at such office or agency on the relevant Interest Payment Date or (ii) any Special Record Date and the opening of business at such office or
agency on the related proposed date for payment of Defaulted Interest, interest or Defaulted Interest, as the case may be, will not be payable on such Interest Payment Date or proposed date for
payment, as the case may be, in respect of such Registered Debenture, but will be payable on such Interest Payment Date or proposed date for payment, as the case may be, only to the Person to whom
interest in respect of such portion of such permanent Global Debenture is payable in accordance with the provisions of this Indenture. 

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

        Every
Registered Debenture presented or surrendered for registration of transfer or for exchange or redemption shall (if so required by the Company or the Debenture Registrar) be duly
endorsed, or be accompanied by a written instrument of transfer (including evidence of title and identity) in form satisfactory to the Company, the Trustee, the Company's designated agent (if any) and
the Debenture Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing. 

16

 

        No
service charge shall be made for any registration of transfer or exchange of Debentures, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of Debentures, other than exchanges pursuant to Section 3.04, 9.06, 11.07 or 13.05 not involving any
transfer. 

        The
Company or the Trustee, as applicable, shall not be required to (a) issue, register the transfer of or exchange any Debenture if such Debenture may be among those selected for
redemption during a period beginning at the opening of business 15 days before date of mailing of the relevant notice of redemption and ending at the close of business on the date of the
mailing of the relevant notice of redemption, or (b) register the transfer of or exchange any Registered Debenture so selected for redemption in whole or in part, except, in the case of any
Registered Debenture to be redeemed in part, the portion thereof not to be redeemed, or (c) issue, register the transfer of or exchange any Debenture which has been surrendered for repayment at
the option of the Holder, except the portion, if any, of such Debenture not to be so repaid. 

        Section 3.06.    Mutilated, Destroyed, Lost and Stolen Debentures.    If any mutilated Debenture is surrendered
to the Trustee or the Company, together with, in proper cases, such security or indemnity
as may be required by the Company or the Trustee to save each of them or any agent of either of them harmless, the Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Debenture of the same series and principal amount, containing identical terms and provisions and bearing a number not contemporaneously outstanding appertaining to the surrendered
Debenture. 

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

        Notwithstanding
the provisions of the previous two paragraphs, in case any such mutilated, destroyed, lost or stolen Debenture has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Debenture appertaining to such destroyed, lost or stolen Debenture, pay such Debenture. 

        Upon
the issuance of any new Debenture under this Section 3.06, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 

        Every
new Debenture of any series issued pursuant to this Section 3.06 in lieu of any destroyed, lost or stolen Debenture, shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Debenture shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Debentures of that series duly issued hereunder. 

        The
provisions of this Section 3.06 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Debentures. 

        Section 3.07.    Payment of Interest; Interest Rights Reserved.    Except as otherwise specified with respect
to a series of Debentures in accordance with the provisions of Section 3.01, interest on any Registered Debenture that is payable, and is punctually paid or duly provided for, on any Interest 

17

 

Payment Date shall be paid to the Person in whose name that Debenture (or one or more Predecessor Debentures) is registered at the close of business on the Regular Record Date for such interest at
the office or agency of the Company maintained for such purpose pursuant to Section 10.02; provided, however, that each installment of interest on any Registered Debenture may at the Company's
option be paid by (a) mailing a check for such interest, payable to or upon the written order of the Person entitled thereto pursuant to Section 3.08, to the address of such Person as it
appears on the Debenture Register or (b) wire transfer to an account maintained by the payee located inside the United States. 

        Unless
otherwise provided as contemplated by Section 3.01, every permanent Global Debenture will provide that interest, if any, payable on any Interest Payment Date will be paid
to DTC with respect to that portion of such permanent Global Debenture held for its account by Cede & Co for the purpose of permitting such party to credit the interest received by it in
respect of such permanent Global Debenture to the accounts of the beneficial owners thereof. 

        Except
as otherwise specified with respect to a series of Debentures in accordance with the provisions of Section 3.01, any interest on any Registered Debenture of any series that
is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease to be payable to the registered Holder thereof on
the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election, in each case as provided in clause (a) or
(b) below: 

        (a)  The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Debentures of such series (or their respective Predecessor Debentures)
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 Registered Debenture of such series and the date of the proposed payment (which shall not be less than 20 days after such
notice is received by the Trustee), and at the same time the Company shall deposit with the Trustee an amount of money in the currency or currencies, currency unit or units or composite currency or
currencies in which the Debentures of such series are payable (except as otherwise specified pursuant to Section 3.01 for the Debentures of such series) 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 on or prior to the date of the proposed payment, such money when deposited to
be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Debentures of such series at his address as it appears in the Debenture
Register not less than 10 days prior to such Special Record Date. The Trustee may, in its discretion, in the name and at the expense of the Company, cause a similar notice to be published at
least once in an Authorized Newspaper in each Place of Payment, but such publications shall not be a condition precedent to the establishment of such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names the Debentures of such
series (or their respective Predecessor Debentures) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (b). 

        (b)  The
Company may make payment of any Defaulted Interest on the Debentures of any series in any other lawful manner not inconsistent with the requirements of any
Debentures 

18

 

exchange on which such Debentures may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee or the proposed payment pursuant to
this clause, such manner of payment shall be deemed practicable by the Trustee. 

        Subject
to the foregoing provisions of this Section 3.07 and Section 3.05, each Debenture delivered under this Indenture upon registration of transfer of or in exchange for
or in lieu of any other Debenture shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Debenture. 

        Section 3.08.    Persons Deemed Owners.    Prior to due presentment of a Registered Debenture for registration
of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Registered Debenture is registered as the owner of such Debenture for the
purpose of receiving payment of principal of (and premium, if any), and (subject to Sections 3.05 and 3.07) interest on, such Registered Debenture and for all other purposes whatsoever, whether or not
such Registered Debenture be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. All such payments so made to any
such Person, or upon such Person's order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for money payable upon any such Debenture. 

        No
Holder of any beneficial interest in any Global Debenture held on its behalf by a depositary shall have any rights under this Indenture with respect to such Global Debenture and such
depositary shall be treated by the Company, the Trustee, and any agent of the Company or the Trustee as the owner of such Global Debenture for all purposes whatsoever. None of the Company, the
Trustee, any Paying Agent or the Debenture Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests
of a Global Debenture or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 

        Notwithstanding
the foregoing, with respect to any Global Debenture, nothing herein shall prevent the Company, the Trustee, or any agent of the Company or the Trustee, from giving effect
to any written certification, proxy or other authorization furnished by any depositary, as a Holder, with respect to such Global Debenture or impair, as between such depositary and owners of
beneficial interests in such Global Debenture, the operation of customary practices governing the exercise of the rights of such depositary (or its nominee) as Holder of such Global Debenture. 

        Section 3.09.    Cancellation.    All Debentures surrendered for payment, redemption, repayment at the option
of the Holder, registration of transfer or exchange or conversion or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee, and any such Debentures and Debentures surrendered directly to the Trustee for any such purpose shall
be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Debentures previously authenticated and delivered hereunder which the Company may have acquired in
any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Debentures previously authenticated hereunder which the Company has not
issued and sold, and all Debentures so delivered shall be promptly cancelled by the Trustee. If the Company shall so acquire any of the Debentures, however, such acquisition shall not operate as a
redemption or satisfaction of the indebtedness represented by such Debentures unless and until the same are surrendered to the Trustee for cancellation. No Debentures shall be authenticated in lieu of
or in exchange for any Debentures cancelled as provided in this Section 3.09, except as expressly permitted by this Indenture. Cancelled Debentures held by the Trustee shall be destroyed by the
Trustee and the Trustee shall deliver a certificate of such destruction to the Company, unless the Trustee is otherwise directed by a Company Order. 

19

 

        Section 3.10.    Computation of Interest.    Except as otherwise specified as contemplated by
Section 3.01 with respect to Debentures of any series, interest on the Debentures of each series shall be computed on the basis of a 360-day year consisting of twelve
30-day months. 

 
 

ARTICLE IV    
    
    SATISFACTION AND DISCHARGE    
  

        Section 4.01.    Satisfaction and Discharge of Indenture.    This Indenture shall upon Company Request cease to
be of further effect with respect to any series of Debentures specified in such Company Request (except as to any surviving rights of registration of transfer or exchange of Debentures of such series
herein expressly provided for, and the Trustee, upon receipt of a Company Order, and at the expense of the Company, shall execute instruments in form and substance satisfactory to the Trustee and the
Company acknowledging satisfaction and discharge of this Indenture as to such series when 

        (a)  either:

        (i)    all
Debentures of such series theretofore authenticated and delivered have been delivered to the Trustee for cancellation; or 

        (ii)  all
Debentures of such series delivered to the Trustee for cancellation: 

        (A)  have
become due and payable; 

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

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

        and
the Company, in the case of (A), (B) or (C) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose an
amount in the currency or currencies, currency unit or units or composite currency or currencies in which the Debentures of such series are payable, sufficient to pay and discharge the entire
indebtedness on such Debentures not theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and interest, to the date of such deposit (in the case of Debentures
which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; 

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

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

        Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee and any predecessor Trustee under Section 6.06, the obligations of
the Company to any Authenticating Agent under Section 6.11 and, if money shall have been deposited with and held by the Trustee pursuant to clause (ii) of this Section 4.01, the
obligations of the Trustee under Section 4.02 and the last paragraph of Section 10.03 shall survive. 

        Section 4.02.    Application of Trust Funds.    Subject to the provisions of the last paragraph of
Section 10.03, all money deposited with the Trustee pursuant to Section 4.01 shall be held in trust and applied by it, in accordance with the provisions of the Debentures and this
Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto of the
principal (and premium, if any) and 

20

 

any interest for whose payment such money has been deposited with or received by the Trustee, but such money need not be segregated from other funds except to the extent required by law. 

 
 

ARTICLE V    
    
    REMEDIES    
  

        Section 5.01.    Events of Default.    "Event of Default," wherever used herein with respect to any particular
series of Debentures and except as otherwise specified with respect to a series pursuant to Section 3.01, means any one of the following events (whatever the reason for such Event of Default
and whether or not it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body): 

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

        (b)  default
in the payment of the principal of (or premium, if any, on) any Debenture of that series when it becomes due and payable at its Maturity and the continuance of
such default for a period of     days; 

        (c)  default
in the deposit of any sinking fund payment, when and as due by the terms of any Debenture of that series; 

        (d)  default
in the performance, or breach, of any covenant or warranty of the Company set forth in this Indenture with respect to any Debenture of that series (other than a
covenant or warranty a default in the performance of which or the breach of which is elsewhere in this Section 5.01 specifically dealt with), and continuance of such default or breach for a
period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least    % in
principal amount of the Outstanding Debentures of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a "Notice of
Default" hereunder; or 

        (e)  the
Company or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 

        (i)    commences
a voluntary case; 

        (ii)  consents
to the entry of an order for relief against it in an involuntary case; 

        (iii)  consents
to the appointment of a Custodian of it or for all or substantially all of its property; or 

        (iv)  makes
a general assignment for the benefit of its creditors; or 

        (f)    a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

        (i)    is
for relief against the Company or any Significant Subsidiary in an involuntary case; 

        (ii)  appoints
a Custodian of the Company or any Significant Subsidiary or for all or substantially all of either of their property; or 

        (iii)  orders
the liquidation of the Company or any Significant Subsidiary and the order or decree remains unstayed and in effect for 90 days; or 

        (g)  any
other Event of Default provided with respect to Debentures of that series. 

21

   
        As used in this Section 5.01, the term "Bankruptcy Law" means Title 11, U.S. Code or any similar federal or state law for the relief of debtors and the term "Custodian" means any
receiver, trustee, assignee, liquidator or other similar official under any Bankruptcy Law. 

        Section 5.02. Acceleration of Maturity; Rescission and Annulment.    If an Event of Default with respect to Debentures of
any series at the time Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Debentures of that
series may declare the principal amount (or, if Debentures of that series are Original Issue Discount Debentures or Indexed Debentures, such portion of the principal as may be specified in the terms
thereof) of all the Debentures of that series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders), and upon any such declaration such
principal or specified portion thereof shall become immediately due and payable. 

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

        (a)  the
Company has paid or deposited with the Trustee a sum sufficient to pay in the currency in which the Debentures of such series are payable (except as otherwise
specified pursuant to Section 3.01 for the Debentures of such series): 

        (i)    all
overdue installments of interest on and payable in respect of all Outstanding Debentures of that series; 

        (ii)  the
principal of (and premium, if any, on) any Outstanding Debentures of that series which have become due otherwise than by such declaration of acceleration and
interest thereon at the rate or rates borne by or provided for in such Debentures; 

        (iii)  to
the extent that payment of such interest is lawful, interest upon overdue installments of interest at the rate or rates borne by or provided for in such Debentures;
and 

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

        (b)  all
Events of Default with respect to Debentures of that series, other than the nonpayment of the principal of (or premium, if any) or interest on Debentures of that
series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 5.13. 

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

        Section 5.03. Collection of Indebtedness and Suits for Enforcement by Trustee.    The Company covenants that if: 

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

        (b)  default
is made in the payment of the principal of (or premium, if any, on) any Debenture of any series at its Maturity, 

then
the Company will, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders of such Debentures of such series, the whole amount then due and payable on such Debentures for
principal (and premium, if any) and interest, with interest upon any overdue principal (and premium, if 

22

 

any) and, to the extent that payment of such interest shall be legally enforceable, upon any overdue installments of interest at the rate or rates borne by or provided for in such Debentures, and, in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee
and its agents and counsel. 

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

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

        Section 5.04. Trustee May File Proofs of Claim.    In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Debentures or the property of the Company or of such
other obligor or their creditors, the Trustee (irrespective of whether the principal of the Debentures of any series shall then be due and payable as therein expressed or by declaration or otherwise
and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal, premium, if any, or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise: 

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

        (b)  to
collect and receive any money or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator (or other similar official) in any such judicial proceeding is hereby authorized by each Holder of Debentures of such series to make such payments to the Trustee, and if the
Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the
Trustee and any predecessor Trustee, their agents and counsel, and any other amounts due the Trustee or any predecessor Trustee under Section 6.06. 

        Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder of a Debenture any plan of reorganization,
arrangement, adjustment or composition affecting the Debentures or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of a Debenture in any
such proceeding. 

        In
any proceedings brought by the Trustee (and also any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party), the Trustee
shall be held to 

23

 

represent all the Holders of the Debentures, and it shall not be necessary to make any Holders of the Debentures parties to any such proceedings. 

        Section 5.05. Trustee May Enforce Claims Without Possession of Debentures.    All rights of action and claims under this
Indenture or any of the Debentures may be prosecuted and enforced by the Trustee without the possession of any of the Debentures or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee and its agents and counsel, be for the ratable benefit of the Holders of the Debentures in respect of which such judgment has been
recovered. 

        Section 5.06. Application of Money Collected.    Any money collected by the Trustee pursuant to this Article V
shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or interest, upon
presentation of the Debentures, or both, as the case may be, and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 

        FIRST,
to the payment of all amounts due the Trustee and any predecessor Trustee under Section 6.06; 

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

        THIRD,
to the payment of the remainder, if any, to the Company. 

        Section 5.07. Limitation on Suits.    No Holder of any Debenture of any series shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 

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

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

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

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

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

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

24

 

        Section 5.08. Unconditional Rights of Holders to Receive Principal, Premium, if any and Interest.

Notwithstanding any other provision in this Indenture, the Holder of any Debenture shall have the right, which is absolute and unconditional (subject to Sections 3.05 and 3.07), to receive payment of
the principal of (and premium, if any) and interest on such Debenture on the respective due dates expressed in such Debenture (or, in the case of redemption, on the Redemption Date) and to institute
suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 

        Section 5.09. Restoration of Rights and Remedies.    If the Trustee or any Holder of a Debenture has instituted any
proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder,
then and in every such case, the Company, the Trustee and the Holders of Debentures shall, subject to any determination in such proceeding, be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted. 

        Section 5.10. Rights and Remedies Cumulative.    Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Debentures in the last paragraph of Section 3.06, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders of Debentures is
intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy. 

        Section 5.11. Delay or Omission not Waiver.    No delay or omission of the Trustee or of any Holder of any Debenture to
exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article V or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders of
Debentures, as the case may be. 

        Section 5.12. Control by Holders of Debentures.    The Holders of not less than a majority in principal amount of the
Outstanding Debentures of any series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power
conferred on the Trustee with respect to the Debentures of such series, provided that: 

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

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

        (c)  the
Trustee need not take any action which might involve it in personal liability or be unduly prejudicial to the Holders of Debentures of such series not joining
therein. 

        Nothing
in this Indenture shall impair the right of the Trustee in its discretion to take any action deemed proper by the Trustee and which is not inconsistent with such direction by
Holders. 

        Section 5.13. Waiver of Past Defaults.    The Holders of not less than a majority in principal amount of the Outstanding
Debentures of any series may on behalf of the Holders of all the Debentures of such series waive any past default hereunder with respect to such series and its consequences, except a default: 

25

 

        (a)  in
the payment of the principal of (or premium, if any) or interest on any Debenture of such series; or 

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

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

        Section 5.14. Waiver of Usury, Stay or Extension Laws.    The Company covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any usury, stay or extension law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no
such law had been enacted. 

ARTICLE VI  

 THE TRUSTEE  

        Section 6.01. Notice of Defaults.    Within 90 days after the occurrence of any default hereunder with respect to
the Debentures of any series, the Trustee shall transmit notice to each of the Holders of such series of such default hereunder known to the Trustee, unless such default shall have been cured or
waived; provided, however, that, except in the case of a default in the payment of the principal of (or premium, if any) or interest on such series, or in the payment of any sinking fund installment
with respect to the Debentures of such series, the Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of the Trustee in good faith determine that the
withholding of such notice is in the interest of the Holders of the Debentures of such series; and provided further that in the case of any default or breach of the character specified in
Section 5.01(d) with respect to the Debentures of such series, no such notice to Holders shall be given until at least 60 days after the occurrence thereof. For the purpose of this
Section 6.01, the term "default" means any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to the Debentures of such series. 

        Section 6.02. Certain Rights of Trustee.    

        (a)  The
Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, coupon or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. 

        (b)  Any
request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order (other than delivery of any Debenture to
the Trustee for authentication and delivery pursuant to Section 3.03 which shall be sufficiently evidenced as provided therein) and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution. 

        (c)  Whenever
in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the 

26

 

Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officers' Certificate. 

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

        (e)  The
Trustee shall be under no obligation to exercise any of the rights or power vested in it by this Indenture at the request or direction of any of the Holders of
Debentures of any series pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or direction. 

        (f)    The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, coupon or other paper or document, unless requested in writing so to do by the Holders of not less than a majority in aggregate principal
amount of the Outstanding Debentures of any series; provided that, if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the
making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable
indemnity against such expenses or liabilities as a condition to proceeding; the reasonable expenses of every such examination shall be paid by the Holders or, if paid by the Trustee, shall be repaid
by the Holders upon demand. The Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make
such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, relevant to the facts or matters that are the subject of its inquiry, personally
or by agent or attorney. 

        (g)  The
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall
not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 

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

        The
Trustee shall not be required to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any
of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 

        Except
during the continuance of an Event of Default, the Trustee undertakes to perform only such duties as are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee. If an Event of Default has occurred (which has not been cured), the Trustee shall exercise such of the rights and powers vested in it
by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 

27

  

        Section 6.03. Not Responsible for Recitals or Issuance of Debentures.    The recitals contained herein and in the
Debentures, except the Trustee's certificate of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for
their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Debentures, except that the Trustee represents that it is duly authorized to
execute and deliver this Indenture, authenticate the Debentures and perform its obligations hereunder. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application
by the Company of Debentures or the proceeds thereof. 

        Section 6.04. May Hold Debentures.    The Trustee, any Paying Agent, Debenture Registrar, Authenticating Agent or any
other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Debentures and may otherwise deal with the Company with the same rights it would have if it were
not Trustee, Paying Agent, Debenture Registrar, Authenticating Agent or such other agent. 

        Section 6.05. Money Held in Trust.    Money held by the Trustee in trust hereunder need not be segregated from other
funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company. 

        Section 6.06. Compensation and Reimbursement.    The Company agrees: 

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

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

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

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

        As
security for the performance of the obligations of the Company under this Section 6.06, the Trustee shall have a lien prior to the Debentures upon all property and money held
or collected by the Trustee as such, except money held in trust for the payment of principal of (or premium, if any) or interest on particular Debentures. 

        The
provisions of this Section 6.06 shall survive the termination of this Indenture. 

        Section 6.07. Corporate Trustee Required; Eligibility; Conflicting Interests.    There shall at all times be a Trustee
hereunder which shall have a combined capital and surplus of at least $25,000,000. If such entity publishes reports of condition at least annually, pursuant to law or the requirements of federal,
state, territorial or District of Columbia supervising or examining authority, then for the 

28

 

purposes of this Section 6.07, the combined capital and surplus of such entity shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 6.07, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article VI. Neither the Company nor any Person directly or indirectly controlling or controlled by, or under common control with, the Company shall serve as
Trustee. If the Trustee shall acquire any Conflicting Interest, the Trustee shall, within 90 days after ascertaining that it has such Conflicting Interest, either eliminate such Conflicting
Interest or resign, such resignation to become effective upon the appointment of a successor Trustee and such successor Trustee's acceptance of such appointment, and the Company shall take prompt
steps to have a successor Trustee appointed in the manner provided in Sections 6.08 and 6.09 below. 

        Section 6.08. Resignation and Removal; Appointment of Successor.    No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article VI shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements
of Section 6.09. 

        The
Trustee may resign at any time with respect to the Debentures of one or more series by giving written notice thereof to the Company. 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 or resignation, the resigning Trustee may petition any court of competent jurisdiction for
the appointment of a successor Trustee. 

        The
Trustee may be removed at any time with respect to the Debentures of all series by Act of the Holders of a majority in principal amount of the Outstanding Debentures of all series
delivered to the Trustee and to the Company. 

        If
at any time: 

        (a)  the
Trustee shall cease to be eligible under Section 6.07 and shall fail to resign after written request therefor by the Company or by any Holder of a Debenture
who has been a bona fide Holder of a Debenture for at least six months; or 

        (b)  the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any
public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; 

then,
in any such case, (i) the Company by or pursuant to a Board Resolution may remove the Trustee and appoint a successor Trustee with respect to all Debentures or (ii) any Holder of a
Debenture who has been a bona fide Holder of a Debenture for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Debentures and the appointment of a successor Trustee or Trustees. 

        If
the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause with respect to the Debentures, the Company, by
or pursuant to a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Debentures. If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Debentures shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Debentures of all series
delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment, become the successor Trustee with respect to the
Debentures and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Debentures shall have been so appointed by the Company or the
Holders of Debentures and accepted appointment in the manner hereinafter provided, any Holder of a Debenture who has 

29

 

been a bona fide Holder of a Debenture for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Debentures. 

        The
Company shall give notice of each resignation and each removal of the Trustee with respect to the Debentures and each appointment of a successor Trustee with respect to the
Debentures in the manner provided for notices to the Holders of Debentures in Section 1.06. Each notice shall include the name of the successor Trustee with respect to the Debentures and the
address of its Corporate Trust Office. 

        Section 6.09. Acceptance of Appointment by Successor.    In case of the appointment hereunder of a successor Trustee with
respect to all Debentures, every such successor Trustee shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee; but, on request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to
such successor Trustee all the rights, powers and trusts of the retiring Trustee, and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder, subject nevertheless to its claim, if any, provided for in Section 6.06. 

        In
case of the appointment hereunder of a successor Trustee with respect to the Debentures, the Company, the retiring Trustee and each successor Trustee with respect to the Debentures
shall execute and deliver an indenture supplemental hereto, pursuant to Article IX, wherein each successor Trustee shall accept such appointment and which (a) 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
Debentures and (b) 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 and upon the
execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and the 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 Debentures. 

        Upon
request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such
rights, powers and trusts referred to in this Section 6.09, as the case may be. 

        No
successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article VI. 

        Section 6.10. Merger, Conversion, Consolidation or Succession to Business.    Any entity 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 such entity shall be otherwise qualified and eligible under this Article VI, without the execution or filing of any paper or any further act on
the part of the parties hereto. In case any Debentures 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 Debentures so authenticated with the same effect as if such successor Trustee had itself authenticated such Debentures. In case any
Debentures shall not have been authenticated by such predecessor Trustee, any such successor Trustee may authenticate and deliver such Debentures, in either its own name or that of its predecessor
Trustee, with the full force and effect which this Indenture provides for the certificate of authentication of the Trustee. 

30

 

        Section 6.11. Appointment of Authenticating Agent.    The Trustee is hereby appointed the initial Authenticating Agent.
At any time when any of the Debentures remain Outstanding, the Trustee may appoint another Authenticating Agent or Agents with respect to one or more series of Debentures which shall be authorized to
act on behalf of the Trustee to authenticate Debentures of such series issued upon exchange, registration of transfer or partial redemption or repayment thereof, and Debentures so authenticated shall
be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Any such appointment shall be evidenced by an instrument
in writing signed by a Responsible Officer of the Trustee, a copy of which instrument shall be promptly furnished to the Company. Wherever reference is made in this Indenture to the authentication and
delivery of Debentures by the Trustee or the Trustee's certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all
times be a bank or trust company or corporation organized and doing business and in good standing under the laws of the United States or of any state or the District of Columbia authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of not less than $25,000,000 and subject to supervision or examination by federal or state authorities. If such
Authenticating Agent publishes reports of condition at least annually, pursuant to law or the requirements of the aforesaid supervising or examining authority, then for the purposes of this
Section 6.11, the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so
published. In case at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section 6.11, such Authenticating Agent shall resign immediately in
the manner and with the effect specified in this Section 6.11. 

        Any
corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section 6.11, without the execution or filing of any paper or further act on the part of the Trustee or
the Authenticating Agent. 

        An
Authenticating Agent for any series of Debentures may at any time resign by giving written notice of resignation to the Trustee for such series and to the Company. The Trustee for any
series of Debentures may at any time terminate the agency of an Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section 6.11, the Trustee
for such series may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give notice of such appointment to all Holders of Debentures of the series with respect
to which such Authenticating Agent will serve in the manner set forth in Section 1.06. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with
all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent herein. No successor Authenticating Agent shall be appointed unless
eligible under the provisions of this Section 6.11. 

        The
Company agrees to pay to each Authenticating Agent from time to time reasonable compensation, including reimbursement of its reasonable expenses for its services under this
Section 6.11. 

31

 

ARTICLE VII  

 HOLDERS' LISTS AND REPORTS BY COMPANY  

        Section 7.01. Disclosure of Names and Addresses of Holders.    Every Holder of Debentures, by receiving and holding the
same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor any Debenture Registrar shall be held accountable by reason
of the disclosure of any information as to the names and addresses of the Holders of Debentures 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 by a Holder. 

        Section 7.02. [Reserved].    

        Section 7.03. Reports by Company.    The Company will: 

        (a)  file
with the Trustee, within 15 days after the Company is required to file the same with the Commission, copies of the annual reports and of the information,
documents and other reports, including financial statements, if any, filed therewith (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and
regulations prescribe) which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended; or, if
the Company is not required to file information, documents or reports pursuant to either of such Sections, then it will file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the
Securities Exchange Act of 1934, as amended, in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations; and 

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

        Section 7.04. Company to Furnish Trustee Names and Addresses of Holders.    The Company will furnish or cause to be
furnished to the Trustee: 

        (a)  semiannually,
not later than 15 days after the Regular Record Date for interest for each series of Debentures, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders of Debentures of such series as of such Regular Record Date or, if there is no Regular Record Date for interest for such series of Debentures,
semiannually, upon such dates as are set forth in the Board Resolution or indenture supplemental hereto authorizing such series, and 

        (b)  at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is furnished; 

        provided,
however, that, so long as the Trustee is the Debenture Registrar, no such list shall be required to be furnished. 

ARTICLE VIII  

 CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE  

        Section 8.01. Consolidations and Mergers of Company and Sales, Leases and Conveyances Permitted Subject to Certain
Conditions.    The Company may consolidate with, or sell, lease or convey 

32

 

all or substantially all of its assets to, or merge with or into any other entity, provided that in any such case (a) either the Company shall be the continuing entity, or the successor entity
(if other than the Company) formed by or resulting from any such consolidation or merger or which shall have received the transfer of such assets shall be an entity organized and existing under the
laws of the United States or a state thereof and such successor entity shall expressly assume the due and punctual payment of the principal of (and premium, if any) and any interest on all of the
Debentures, according to their tenor, and the due and punctual performance and observance of all of the covenants and conditions of this Indenture to be performed by the Company by supplemental
indenture, complying with Article IX, satisfactory to the Trustee, executed and delivered to the Trustee by such entity and (b) immediately after giving effect to such transaction and
treating any indebtedness which becomes an obligation of such successor entity, the Company or any Subsidiary as a result thereof as having been incurred by such successor entity, the Company or such
Subsidiary at the time of such transaction, no Event of Default, and no event which, after notice or the lapse of time, or both, would become an Event of Default, shall have occurred and be
continuing. 

        Section 8.02. Rights and Duties of Successor Corporation.    In case of any such consolidation, merger, sale, lease or
conveyance and upon any such assumption by the successor corporation, such successor corporation shall succeed to and be substituted for the Company, with the same effect as if it had been named
herein as the party of the first part, and the predecessor corporation, except in the event of a lease, shall be relieved of any further obligation under this Indenture and the Debentures. Such
successor corporation thereupon may cause to be signed, and may issue either in its own name or in the name of the Company, any or all of the Debentures issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Trustee; and, upon the order of such successor corporation, instead of the Company, and subject to all the terms, conditions and limitations in
this Indenture prescribed, the Trustee shall authenticate and shall deliver any Debentures which previously shall have been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Debentures which such successor corporation thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Debentures so issued shall in all
respects have the same legal rank and benefit under this Indenture as the Debentures theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Debentures
had been issued at the date of the execution hereof. 

        In
case of any such consolidation, merger, sale, lease or conveyance, such changes in phraseology and form (but not in substance) may be made in the Debentures thereafter to be issued as
may be appropriate. 

        Section 8.03.    Officers' Certificate and Opinion of Counsel.    Any consolidation, merger, sale, lease or
conveyance permitted under Section 8.01 is also subject to the condition that the Trustee receive an Officers' Certificate and an Opinion of Counsel to the effect that any such consolidation,
merger, sale, lease or conveyance, and the assumption by any successor corporation, complies with the provisions of this Article VIII and that all conditions precedent herein provided for
relating to such transaction have been complied with. 

 
 

ARTICLE IX
    
  SUPPLEMENTAL INDENTURES    
  

        Section 9.01.    Supplemental Indentures Without Consent of Holders.    Without the consent of any Holders of
Debentures, the Company, when authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes: 

        (a)  to
evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company herein and in the Debentures; 

        (b)  to
add to the covenants of the Company for the benefit of the Holders of all or any series of Debentures (and if such covenants are to be for the benefit of less than
all series of Debentures, stating that such covenants are expressly being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the Company; 

33

  

        (c)  to
add any additional Events of Default for the benefit of the Holders of all or any series of Debentures (and if such Events of Default are to be for the benefit of
less than all series of Debentures, stating that such Events of Default are expressly being included solely for the benefit of such series); provided, however, that in respect of any such additional
Events of Default such supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults), may
provide for an immediate enforcement upon such default, may limit the remedies available to the Trustee upon such default or may limit the right of the Holders of a majority in aggregate principal
amount of that or those series of Debentures to which such additional Events of Default apply to waive such default; 

        (d)  to
add or modify any of the provisions of this Indenture to such extent as may be necessary in order to permit or facilitate the qualification of this Indenture under
the Trust Indenture Act; 

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

        (f)    to
secure the Debentures; 

        (g)  to
establish the form or terms of Debentures of any series as permitted by Sections 2.01 and 3.01, including the provisions and procedures relating to Debentures
convertible into Common Stock or Preferred Stock, as the case may be; 

        (h)  to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Debentures of one or more series and to add to or change
any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee or different Trustees; 

        (i)    to
cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture which shall not be inconsistent with the provisions of this
Indenture; provided, however, that such provisions shall not adversely affect the interests of the Holders of Debentures of any series in any material respect; or 

        (j)    to
supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of
Debentures pursuant to Sections 4.01, 14.02 and 14.03; provided, however, that any such action shall not adversely affect the interests of the Holders of Debentures of such series or any other series
of Debentures in any material respect. 

        Section 9.02.    Supplemental Indentures with Consent of Holders.    With the consent of the Holders of not
less than a majority in principal amount of all Outstanding Debentures of a series, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by or pursuant to a
Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture with respect to such series or of modifying in any manner the rights of the Holders of Debentures of such series under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each Outstanding Debenture affected thereby: 

        (a)  change
the Stated Maturity of the principal of (or premium, if any, on) or any installment of principal of or interest on, any Debenture; or reduce the principal amount
thereof or the rate 

34

 

or amount of interest thereon payable in respect thereof, or any premium payable upon the redemption thereof, or reduce the amount of the principal of an Original Issue Discount Debenture that would
be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02 or the amount thereof provable in bankruptcy pursuant to Section 5.04, or adversely
affect any right of repayment of the Holder of any Debenture, or change any Place of Payment where, or the currency or currencies, currency unit or units or composite currency or currencies in which,
the principal of any Debenture or any premium or the interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof
(or, in the case of redemption or repayment at the option of the Holder, on or after the Redemption Date or the Repayment Date, as the case may be); 

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

        (c)  modify
any of the provisions of this Section 9.02, Section 5.13 or 10.10, except to increase the required percentage to effect such action or to provide
that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Debenture affected thereby. 

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

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

        Section 9.03.    Execution of Supplemental Indentures.    In executing or accepting the additional trusts
created by any supplemental indenture permitted by this Article IX or the modification thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and shall be
fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the Trustee's own rights, duties or immunities under this Indenture or otherwise. 

        Section 9.04.    Effect of Supplemental Indenture.    Upon the execution of any supplemental indenture under
this Article IX, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of
Debentures that are theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. 

        Section 9.05.    Conformity with Trust Indenture Act.    Unless an exemption is available therefrom, every
supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect. 

        Section 9.06.    Reference in Debentures to Supplemental Indentures.    Debentures of any series authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and shall, if required by the Trustee, bear a notation in form approved by the Trustee as to any
matter provided for in such supplemental indenture. If the Company shall so determine, new 

35

 

Debentures of any series so modified as to conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Debentures of such series. 

 
 

ARTICLE X    
    
    COVENANTS; SUBORDINATION    
  

        Section 10.01.    Payment of Principal, Premium, if any, and Interest.    

        (a)  The
Company covenants and agrees for the benefit of the Holders of each series of Debentures that it will duly and punctually pay the principal of (and premium, if any)
and interest on the Debentures of that series in accordance with the terms of such series of Debentures and this Indenture. In furtherance of the foregoing, the Company covenants and agrees, except as
otherwise agreed with respect to a series, to pay to the Trustee for deposit into the Payment Account (i) prior to 11:00 a.m. New York time
on                        1 and            1 of
each year, commencing on            1, 200 , an amount equal to 50% of the interest due on the Debentures on the following Interest Payment Date ("Advance Interest"), and (ii) the
remaining amount of interest due on the Debentures on the following Interest Payment Date (after giving effect to funds on deposit in the Interest Payment Account) prior to 11:00 a.m. New York
time on the Business Day preceding each such Interest Payment Date. Unless otherwise specified with respect to Debentures of any series pursuant to Section 3.01, at the option of the Company,
all payments of principal may be paid by check to the registered Holder of the Registered Debenture or other person entitled thereto against surrender of such Debenture. 

        (b)  As
of the date of this Indenture, the Trustee shall establish and maintain the Payment Account as a trust account into which shall be deposited any funds received from
the Company for deposit therein to pay interest and principal on the Debentures of a series. Advance Interest on deposit in the Payment Account shall be invested by the Trustee upon receipt of
direction from the Company in Eligible Investments, and earnings and income thereon shall be deposited into the Payment Account. The Trustee shall use funds on deposit in the Payment Account to pay
principal and interest due on the Debentures on an Interest Payment Date or on the Maturity, as the case may be. Any funds remaining in the Payment Account upon termination of this Indenture shall be
paid to the Company. 

        Section 10.02.    Maintenance of Office or Agency.    The Company shall maintain in each Place of Payment for
any series of Debentures an office or agency where Debentures of that series may be presented or surrendered for payment or conversion, where Debentures of that series may be surrendered for
registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Debentures of that series and this Indenture may be served. The Company will give prompt
written notice to the Trustee of the location, and any change in the location, of each such office or agency. If at any time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. 

        The
Company may from time to time designate one or more other offices or agencies where the Debentures of one or more series may be presented or surrendered for any or all of such
purposes, and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office
or agency in accordance with the requirements set forth above for Debentures of any series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or agency. Unless otherwise specified with respect to any Debentures pursuant to Section 3.01 with respect to a series of
Debentures, the Company hereby designates as a Place of Payment for each series of Debentures the office or agency of the 

36

 

Trustee, in the City of Minneapolis, Minnesota, and initially appoints the Trustee at its Corporate Trust Office as Paying Agent in such city and as its agent to receive all such presentations,
surrenders, notices and demands. 

        Section 10.03.    Money for Debentures Payments to be Held in Trust.    If the Company shall at any time act as
its own Paying Agent with respect to any series of any Debentures, it will, on or before each due date of the principal of (and premium, if any), or interest on the Debentures of that series,
segregate and hold in trust for the benefit of the Persons entitled thereto a sum in the currency or currencies, currency unit or units or composite currency or currencies in which the Debentures of
such series are payable (except as otherwise specified pursuant to Section 3.01 for the Debentures of such series) sufficient to pay the principal (and premium, if any) or interest so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and will promptly notify the Trustee of its action or failure so to act. 

        Whenever
the Company shall have one or more Paying Agents for any series of Debentures, it will, on or before each due date of the principal of (and premium, if any), or interest on any
Debentures of that series, deposit with a Paying Agent a sum (in the currency or currencies, currency unit or units or composite currency or currencies described in the preceding paragraph) sufficient
to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act. 

        The
Company will cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section 10.03, that such Paying Agent will: 

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

        (b)  give
the Trustee notice of any default by the Company (or any other obligor upon the Debentures) in the making of any such payment of principal (and premium, if any) or
interest on the Debentures of that series; and 

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

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

        Except
as otherwise provided in the Debentures of any series, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the
principal of (and premium, if any) or interest on any Debenture of any series and remaining unclaimed for two years after such principal (and premium, if any), interest has become due and payable
shall be paid to the Company upon Company Request or (if then held by the Company) shall be discharged from such trust; and the Holder of such Debenture shall thereafter, as an unsecured general
creditor, look only to the Company for payment of such principal of (and premium, if any) or interest on any Debenture, without interest thereon, and all liability of the Trustee or such Paying Agent
with respect to such trust money, and all liability of the Company as Trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make
any such repayment, may at the expense of the Company cause to be published once, in an Authorized Newspaper, notice that such 

37

 

money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company. 

        Section 10.04.    Existence.    Subject to Article VIII, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate existence, all material rights (by certificate of incorporation, bylaws and statute) and material franchises; provided,
however, that the Company shall not be required to preserve any right or franchise if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the
business of the Company. 

        Section 10.05.    Maintenance of Properties.    The Company will cause all of its material properties used or
useful in the conduct of its business or the business of any Subsidiary to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause
to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection
therewith
may be properly and advantageously conducted at all times; provided, however, that the Company and its Subsidiaries shall not be prevented from selling or otherwise disposing of their properties for
value in the ordinary course of their business. 

        Section 10.06.    Insurance.    The Company will, and will cause each of its Subsidiaries to, keep in force
upon all of its properties and operations policies of insurance carried with responsible companies in such amounts and covering all such risks as shall be customary in the industry in accordance with
prevailing market conditions and availability. 

        Section 10.07.    Payment of Taxes and Other Claims.    The Company will pay or discharge or cause to be paid
or discharged, before the same shall become delinquent, (a) all taxes, assessments and governmental charges levied or imposed upon it or any Subsidiary or upon the income, profits or property
of the Company or any Subsidiary and (b) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a lien upon the property of the Company or any Subsidiary;
provided, however, that the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim the amount, applicability or validity of which
is being contested in good faith by appropriate proceedings, provided all liabilities relating to such tax, assessment, charge or claim are adequately provided for on the books of the Company in
accordance with GAAP. The Company, any Subsidiaries and any partnership in which the Company or its Subsidiaries are a partner shall timely and accurately file all tax returns required by law to have
been filed. 

        Section 10.08.    Provision of Financial Information.    Whether or not the Company is subject to
Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Company will, within 15 days after each of the respective dates by which the Company would have been required
to file annual reports, quarterly reports and other documents with the Commission if the Company were so subject, (a) transmit by mail to all Holders, as their names and addresses appear in the
Debenture Register, without cost to such Holders summaries of the annual reports, quarterly reports and other documents which the Company would have been required to file with the Commission pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, if the Company were subject to such Sections, and (b) file with the Trustee copies of the annual reports,
quarterly reports and other documents which the Company would have been required to file with the Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended,
if the Company were subject to such Sections and (c) promptly upon written request and payment of the reasonable cost of duplication and delivery, supply copies of such documents to any
prospective Holder. 

38

 

        Section 10.09.    Statement as to Compliance.    The Company will deliver to the Trustee, within
120 days after the end of each Fiscal Year, a brief certificate from the principal executive officer, principal financial officer or principal accounting officer as to his or her knowledge of
the Company's compliance with all conditions and covenants under this Indenture and, in the event of any noncompliance, specifying such noncompliance and the nature and status thereof. For purposes of
this Section 10.09, such compliance
shall be determined without regard to any period of grace or requirement of notice under this Indenture. 

        Section 10.10.    Waiver of Certain Covenants.    The Company may omit in any particular instance to comply
with any term, provision or condition set forth in Sections 10.04 to 10.08, inclusive, if before or after the time for such compliance the Holders of at least a majority in principal amount of all
outstanding Debentures of such series, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such covenant or condition, but no such waiver shall
extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in
respect of any such term, provision or condition shall remain in full force and effect. 

        Section 10.11.    Subordination.    The payment of the principal of (and premium, if any) and interest on the
Debentures is, to the extent set forth in this Indenture, subordinated in right of payment to the prior payment in full of all Senior Indebtedness, whether currently outstanding or subsequently
incurred. "Senior Indebtedness" is defined as: 

        (a)  the
principal of (and premium, if any) and interest on indebtedness of the Company for money borrowed from or guaranteed to banks, trust companies, insurance companies,
or pension trusts or evidenced by securities issued under the provisions of an indenture or similar instrument between the Company and a bank or trust company other than indebtedness evidenced by
instruments which expressly provide that such indebtedness is not superior in right of payment to the Subordinated Debentures issued under this Indenture; and 

        (b)  indebtedness
created after the date of this Indenture, as to which the instrument creating or evidencing the indebtedness provides that such indebtedness is superior in
right of payment to the Debentures issued under this Indenture. 

        By
reason of the subordination provisions of this Indenture, no payment on account of principal of (or premium, if any) or interest on the Debentures shall be made, and no Debentures
shall be purchased, either directly or indirectly, by the Company or any of its Subsidiaries, unless full payment of amounts then due for principal of (and premium, if any) and interest (including
interest on overdue principal and interest, to the extent permitted by law) on Senior Indebtedness has been made or duly provided for. In addition, no payment on account of principal of (or premium,
if any) or interest on the Debentures shall be made, and no Debentures shall be purchased, either directly or indirectly, by the Company or any of its Subsidiaries, if at the time of such payment or
purchase or immediately after giving effect to such payment or purchase, there shall exist under any Senior Indebtedness or any indenture or agreement pursuant to which any Senior Indebtedness is
issued any default or any condition, event or act, which, with notice or lapse of time, or both, would constitute a default. 

        In
the event that any Debenture is declared due and payable before its stated maturity or upon any other acceleration of payment of the principal of the Debentures because of an Event of
Default and
upon any payment or distribution of assets of the Company, whether in cash, property or securities, to creditors, all principal of (and premium, if any) and interest (including interest on overdue
principal and interest) due or to become due upon all Senior Indebtedness shall first be paid in full before the Holders of the Debentures or the Trustee under this Indenture shall be entitled to
retain any assets so paid or distributed in respect of the Debentures (for principal, premium, if any, or interest). Any such payment or distribution of assets of the Company, whether in cash,
property or securities, to which the Holders of the Debentures or the Trustee would otherwise be entitled, shall be 

39

 

paid by the Company directly to the owners of Senior Indebtedness (pro rata), or their representatives, to the extent necessary to pay all Senior Indebtedness in full, after giving effect to any
concurrent payment or distribution to or for the owners of Senior Indebtedness, before any payment or distribution is made to the Holders of the Debentures or to the Trustee under this Indenture. By
reason of such subordination, in the event of the Company's insolvency, holders of Senior Indebtedness may receive more, ratably, and the Holders of the Debentures may receive less, ratably, than
other creditors of the Company. 

 
 

ARTICLE XI    
    
    REDEMPTION OF DEBENTURES    
  

        Section 11.01.    Applicability of Article.    Debentures of any series which are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 3.01 for Debentures of any series) in accordance with this
Article XI. The Series A Debentures are not subject to any redemption prior to Maturity. The Series B Debentures are redeemable at the Company's option, in whole or in part, at
any time on or after the date of the third anniversary of the issuance of the Series B Debentures.

        Section 11.02.    Election to Redeem; Notice to Trustee.    The election of the Company to redeem any
Debentures shall be evidenced by or pursuant to a Board Resolution. In case of any redemption at the election of the Company of less than all of the Debentures of any series, the Company shall, at
least 45 days prior to the giving of the notice of redemption in Section 11.04 (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date
and of the principal amount of Debentures of such series to be redeemed. In the case of any redemption of Debentures prior to the expiration of any restriction on such redemption provided in the terms
of such Debentures or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers' Certificate evidencing compliance with such restriction. 

        Section 11.03.    Selection by Trustee of Debentures to be Redeemed.    If less than all the Debentures of any
series issued on the same day with the same terms are to be redeemed, the particular Debentures to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Debentures of such series issued on such date with the same terms not
previously called for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of portions (equal to the minimum authorized
denomination for Debentures of that series or any integral multiple thereof) of the principal amount of Debentures of such series of a denomination larger than the minimum authorized denomination for
Debentures of that series. 

        The
Trustee shall promptly notify the Company and the Debenture Registrar (if other than itself) in writing of the Debentures selected for redemption and, in the case of any Debentures
selected for partial redemption, the principal amount thereof to be redeemed. 

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

        Section 11.04. Notice of Redemption.    Notice of redemption shall be given in the manner provided in
Section 1.06, not less than 30 days nor more than 60 days prior to the Redemption Date, unless a shorter period is specified by the terms of such series established pursuant to
Section 3.01, to each Holder of Debentures to be redeemed, but failure to give such notice in the manner herein provided to the Holder of any Debenture designated for redemption as a whole or
in part, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the redemption of any other such Debenture or portion thereof. 

40

  

        Any notice that is mailed to the Holders of Debentures in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the Holder receives the
notice. 

        All
notices of redemption shall state: 

        (a)  the
Redemption Date; 

        (b)  the
Redemption Price, accrued interest to the Redemption Date payable as provided in Section 11.06, if any; 

        (c)  if
less than all Outstanding Debentures of any series are to be redeemed, the identification (and, in the case of partial redemption, the principal amount) of the
particular Debenture or Debentures to be redeemed; 

        (d)  in
case any Debenture is to be redeemed in part only, the notice which relates to such Debenture shall state that on and after the Redemption Date, upon surrender of
such Debenture, the holder will receive, without a charge, a new Debenture or Debentures or authorized denominations for the principal amount thereof remaining unredeemed; 

        (e)  that
on the Redemption Date the Redemption Price and accrued interest to the Redemption Date payable as provided in Section 11.06, if any, will become due and
payable upon each such Debenture, or the portion thereof, to be redeemed and, if applicable, that interest thereon shall cease to accrue on and after said date; 

        (f)    the
Place or Places of Payment where such Debentures maturing after the Redemption Date, are to be surrendered for payment of the Redemption Price and accrued interest,
if any, or for conversion; 

        (g)  that
the redemption is for a sinking fund, if such is the case; 

        (h)  the
CUSIP number of such Debenture, if any; and 

        (i)    if
applicable, that a Holder of Debentures who desires to convert Debentures for redemption must satisfy the requirements for conversion contained in such Debentures,
the then-existing conversion price or rate, the place or places where such Debentures may be surrendered for conversion, and the date and time when the option to convert shall expire. 

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

        Section 11.05. Deposit of Redemption Price.    Prior to 11:00 a.m. EST on any Redemption Date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, which it may not do in the case of a sinking fund payment under Article XII, segregate and
hold in trust as provided in Section 10.03) an amount of money in the currency or currencies, currency unit or units or composite currency or currencies in which the Debentures of such series
are payable (except as otherwise specified pursuant to Section 3.01 for the Debentures of such series) sufficient to pay on the Redemption Date the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on, all the Debentures or portions thereof which are to be redeemed on that date. 

        If
any Debenture called for redemption is converted, any money deposited with the Trustee or with any Paying Agent or so segregated and held in trust for the redemption of such Debenture
shall be paid to the Company upon Company Request or, if then held by the Company, shall be discharged from such trust. 

        Section 11.06. Debentures Payable on Redemption Date.    Notice of redemption having been given as aforesaid, the
Debentures so to be redeemed shall, on the Redemption Date, become due and 

41

 

payable at the Redemption Price therein specified and from and after such date (unless the Company shall default in the payment of the Redemption Price). Upon surrender of any such Debenture for
redemption in accordance with said notice, maturing after the Redemption Date, such Debenture shall be paid by the Company at the Redemption Price on the Redemption Date. 

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

        Section 11.07. Debentures Redeemed in Part.    Any Registered Debenture which is to be redeemed only in part (pursuant to
the provisions of this Article XI or of Article XII) shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his or her attorney duly authorized in writing) and the Company shall execute
and the Trustee shall authenticate and deliver to the Holder of such Debenture without service charge a new Debenture or Debentures of the same series of any authorized denomination as requested by
such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Debenture so surrendered. If a Global Debenture is so surrendered, the Company
shall execute and the Trustee shall authenticate and deliver to the depositary, without service charge, a new Global Debenture in a denomination equal to and in exchange for the unredeemed portion of
the principal of the Global Debenture so surrendered. 

 
 

ARTICLE XII    
    
    SINKING FUNDS    
  

        Section 12.01. Applicability of Article.    The provisions of this Article XII shall be applicable to any sinking
fund for the retirement of Debentures of a series except as otherwise specified as contemplated by Section 3.01 for Debentures of such series. The Class A and Class B Debentures
shall not be subject to a sinking fund. 

        The
minimum amount of any sinking fund payment provided for by the terms of Debentures of any series is herein referred to as a "mandatory sinking fund payment," and any payment in
excess of such minimum amount provided for by the terms of such Debentures of any series is herein referred to as an "optional sinking fund payment." If provided for by the terms of any Debentures of
any series, the cash amount of any mandatory sinking fund payment may be subject to reduction as provided in Section 12.02. Each sinking fund payment shall be applied to the redemption of
Debentures of any series as provided for by the terms of Debentures of such series. 

        Section 12.02. Satisfaction of Sinking Fund Payments with Debentures.    The Company may, in satisfaction of all or any
part of any mandatory sinking fund payment with respect to the Debentures of a series, (a) deliver Outstanding Debentures of such series (other than any previously called for redemption) and
(b) apply as a credit Debentures of such series which have been redeemed either at the election of the Company pursuant to the terms of such Debentures or through the application of permitted
optional sinking fund payments pursuant to the terms of such Debentures, as provided for by the terms of such Debentures, or which have otherwise been acquired by the Company; provided, however, that
such Debentures so delivered or applied as a credit have not been previously so credited. Such Debentures shall be received and credited for such purpose by the Trustee at the applicable
Redemption Price specified in such Debentures for redemption through operation of the sinking fund and the amount of such mandatory sinking fund payment shall be reduced accordingly. 

        Section 12.03. Redemption of Debentures for Sinking Fund.    Not less than 60 days prior to each sinking fund
payment date for Debentures of any series, the Company will deliver to the Trustee an Officers' Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that 

42

 

series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by payment of cash in the currency in which the Debentures of such series are payable (except as
otherwise specified pursuant to Section 3.01 for the Debentures of such series) and the portion thereof, if any, which is to be satisfied by delivering and crediting Debentures of that series
pursuant to Section 12.02, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and will also deliver to the Trustee any Debentures to be so
delivered and credited. If such Officers' Certificate shall specify an optional amount to be added in cash to the next ensuing mandatory sinking fund payment, the Company shall thereupon be obligated
to pay the amount therein specified. Not less than 30 days before each such sinking fund payment date the Trustee shall select the Debentures to be redeemed upon such sinking fund payment date
in the manner specified in Section 11.03 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 11.04.
Such notice having been duly given, the redemption of such Debentures shall be made upon the terms and in the manner stated in Sections 11.06 and 11.07. 

 
 

ARTICLE XIII    
    
    REPAYMENT AT THE OPTION OF HOLDERS    
  

        Section 13.01. Applicability of Article.    Repayment of Debentures of any series before their Stated Maturity at the
option of Holders thereof shall be made in accordance with the terms of such Debentures, if any, and (except as otherwise specified by the terms of such series established pursuant to
Section 3.01) in accordance with this Article XIII. 

        Section 13.02. Repayment of Debentures.    Debentures of any series subject to repayment in whole or in part at the
option of the Holders thereof will, unless otherwise provided in the terms of such Debentures, be repaid at a price equal to the principal amount thereof, together with interest, if any, thereon
accrued to the Repayment Date specified in or pursuant to the terms of such Debentures. The Company covenants that on or prior to the Repayment Date it will deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.03) an amount of money in the currency or currencies, currency unit or units
or composite currency or currencies in which the Debentures of such series are payable (except as
otherwise specified pursuant to Section 3.01 for the Debentures of such series) sufficient to pay the principal (or, if so provided by the terms of the Debentures of any series, a percentage of
the principal) of, and (except if the Repayment Date shall be an Interest Payment Date) accrued interest on, all the Debentures or portions thereof, as the case may be, to be repaid on such date. 

        Section 13.03. Exercise of Option.    Debentures of any series subject to repayment at the option of the Holders thereof
will contain an "Option to Elect Repayment" form on the reverse of such Debentures. In order for any Debenture to be repaid at the option of the Holder, the Trustee must receive at the Place of
Payment therefor specified in the terms of such Debenture (or at such other place or places of which the Company shall from time to time notify the Holders of such Debentures) not earlier than
60 days nor later than 30 days prior to the Repayment Date (a) the Debenture so providing for such repayment together with the "Option to Elect Repayment" form on the reverse
thereof duly completed by the Holder (or by the Holder's attorney duly authorized in writing) or (b) a telegram, telex, facsimile transmission or letter from a member of a national securities
exchange, or the National Association of Debentures Dealers, Inc., or a commercial bank or trust company in the United States setting forth the name of the Holder of the Debenture, the
principal amount of the Debenture, the principal amount of the Debenture to be repaid, the CUSIP number, if any, or a description of the tenor and terms of the Debenture, a statement that the option
to elect repayment is being exercised thereby and a guarantee that the Debenture to be repaid, together with the duly completed form entitled "Option to Elect Repayment" on the reverse of the
Debenture, will be received by the Trustee not later than the fifth Business Day after the date of such telegram, telex, 

43

 

facsimile transmission or letter; provided, however, that such telegram, telex, facsimile transmission or letter shall only be effective if such Debenture and form duly completed are received by the
Trustee by such fifth Business Day. If less than the entire principal amount of such Debenture is to be repaid in accordance with the terms of such Debenture, the principal amount of such Debenture to
be repaid, in increments of the minimum denomination for Debentures of such series, and the denomination or denominations of the Debenture or Debentures to be issued to the Holder for the portion of
the principal amount of such Debenture surrendered that is not to be repaid, must be specified. The principal amount of any Debenture providing for repayment at the option of the Holder thereof may
not be repaid in part if, following such repayment, the unpaid principal amount of such Debenture would be less than the minimum authorized denomination of Debentures of the series of which such
Debenture to be repaid is a part. Except as otherwise may be provided by the terms of any Debenture providing for repayment at the option of the Holder thereof, exercise or the repayment option by the
Holder shall be irrevocable unless waived by the Company. 

        Section 13.04. When Debentures Presented for Repayment Become Due and Payable.    If Debentures of any series providing
for repayment at the option of the Holders thereof shall have been surrendered as provided in this Article XIII and as provided by or pursuant to the terms of such Debentures, such Debentures
or the portions thereof, as the case may be, to be repaid shall become due and payable and shall be paid by the Company on the Repayment Date therein specified, and on and after such Repayment Date
(unless the Company shall default in the payment of such Debentures on such Repayment Date) such Debentures shall, if the same were interest-bearing, cease to bear interest so to be repaid, except to
the extent provided below, shall be void. Upon surrender of any such Debenture for repayment in accordance with such provisions maturing after the Repayment Date, the principal amount of such
Debenture so to be repaid shall be paid by the Company, together with accrued interest, if any, to the Repayment Date; provided, that, in the case of Debentures, installments of interest, if any,
whose Stated Maturity is on or prior to the Repayment Date shall be payable (but
without interest thereon, unless the Company shall default in the payment thereof) to the Holders of such Debentures, or one or more Predecessor Debentures, registered as such at the close of business
on the relevant record dates according to their terms and the provisions of Section 3.07. 

        If
the principal amount of any Debenture surrendered for repayment shall not be so repaid upon surrender thereof, such principal amount (together with interest, if any, thereon accrued
to such Repayment Date) shall, until paid, bear interest from the Repayment Date at the rate of interest or Yield to Maturity (in the case of Original Issue Discount Debentures) set forth in such
Debenture. 

        Section 13.05. Debentures Repaid in Part.    Upon surrender of any Registered Debenture which is to be repaid in part
only, the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Debenture, without service charge and at the expense of the Company, a new Registered Debenture or
Debentures of the same series, of any authorized denomination specified by the Holder, in an aggregate principal amount equal to and in exchange for the portion of the principal of such Debenture so
surrendered which is not to be repaid. 

 
 

ARTICLE XIV    
    
    DEFEASANCE AND COVENANT DEFEASANCE    
  

        Section 14.01. Applicability of Article; Company's Option to Effect Defeasance or Covenant Defeasance. If,
pursuant to Section 3.01, provision is made for either or both of (a) defeasance of the Debentures of or within a series under Section 14.02 or (b) covenant defeasance of
the Debentures of or within a series under Section 14.03, then the provisions of such Section or Sections, as the case may be, together with the other provisions of this Article XIV
(with such modifications thereto as may be specified pursuant to Section 3.01 with respect to any Debentures), shall be applicable to such Debentures, and the Company may at its option by Board
Resolution, at any time, with respect to such 

44

 

Debentures, elect to have Section 14.02 (if applicable) or Section 14.03 (if applicable) be applied to such Outstanding Debentures upon compliance with the conditions set forth below in
this Article XIV. 

        Section 14.02. Defeasance and Discharge.    Upon the Company's exercise of the above option applicable to this
Section 14.02 with respect to any Debentures of or within a series, the Company shall be deemed to have been discharged from its obligations with respect to such Outstanding Debentures on the
date the conditions set forth in Section 14.04 are satisfied (hereinafter, "defeasance"). For this purpose, such defeasance means that the Company shall be deemed to have paid and discharged
the entire indebtedness represented by such Outstanding Debentures, which shall thereafter be deemed to be "Outstanding" only for the purposes of Section 14.05 and the other Sections of this
Indenture referred to in clauses (a) and (b) below, and to have satisfied all of its other obligations under such Debentures and this Indenture insofar as such Debentures are concerned
(and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of
such Outstanding Debentures to receive, solely from the trust fund described in Section 14.04 and as more fully set forth in such Section, payments in respect of the principal of (and premium,
if any) and interest, if any, on such Debentures when such payments are due, (b) the Company's obligations with respect to such Debentures under Sections 3.05, 3.06, 10.02 and 10.03,
(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and (d) this Article XIV. Subject to compliance with this Article XIV the Company may
exercise its option under this Section 14.02 notwithstanding the prior exercise of its option under Section 14.03 with respect to such Debentures. 

        Section 14.03. Covenant Defeasance.    Upon the Company's exercise of the above option applicable to this Section with
respect to any Debentures of or within a series, the Company shall be released from its obligations under Sections 10.04 to 10.08, inclusive, and, if specified pursuant to Section 3.01, its
obligations under any other covenant, with respect to such Outstanding Debentures on and after the date the conditions set forth in Section 14.04 are satisfied (hereinafter, "covenant
defeasance"), and such Debentures shall thereafter be deemed to be not "Outstanding" for the purposes of any direction, waiver, consent or declaration or Act of Holders (and the consequences of any
thereof) in connection with Sections 10.04 to 10.08, inclusive, or such other covenant, but shall continue to be deemed "Outstanding" for all other purposes hereunder. For this purpose, such covenant
defeasance means that, with respect to such Outstanding Debentures, 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 Section or such other covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such Section or such other covenant or by reason of reference in any such
Section or such other covenant to any other provision herein or in any other document, and such omission to comply shall not constitute a default or an Event of Default under Section 5.01(d) or
5.01(h) or otherwise, as the case may be, but, except as specified above, the remainder of this Indenture and such Debentures shall be unaffected thereby. 

        Section 14.04. Conditions to Defeasance or Covenant Defeasance.    The following shall be the conditions to application
of Section 14.02 or Section 14.03 to any Outstanding Debentures of or within a series: 

        (a)  The
Company shall irrevocably have deposited or caused to be deposited with the Trustee (or another Trustee satisfying the requirements of Section 6.07 who shall
agree to comply with the provisions of this Article XIV applicable to it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Debentures, (i) an amount in such currency, currencies or currency unit in which such Debentures are then specified as payable at Stated
Maturity, or (ii) Government Obligations applicable to such Debentures (determined on the basis of the currency, currencies or currency 

45

 

unit in which such Debentures are then specified as payable at Stated Maturity) which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment of principal of (and premium, if any) and interest, if any, on such Debentures or (iii) a combination thereof, in any case, in
an amount sufficient, without consideration of any reinvestment of such principal and interest, in the opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or other
qualifying Trustee) to pay and discharge, (A) the principal of (and premium, if any) and interest, if any, on such Outstanding Debentures on the Stated Maturity of such principal or installment
of principal or interest and (B) any mandatory sinking fund payments or analogous payments applicable to such Outstanding Debentures on the day on which such payments are due and payable in
accordance with the terms of this Indenture and of such Debentures. 

        (b)  Such
defeasance or covenant defeasance shall not result in a breach or violation of, or constitute a default under, this Indenture or any other material agreement or
instrument to which the Company is a party or by which it is bound. 

        (c)  No
Event of Default or event which with notice or lapse of time or both would become an Event of Default with respect to such Debentures shall have occurred and be
continuing on the date of such deposit or, insofar as Sections 5.01(f) and 5.01(g) are concerned, at any time during the period ending on the 91st day after the date of such deposit (it being
understood that this condition shall not be deemed satisfied until the expiration of such period). 

        (d)  In
the case of an election under Section 14.02, the Company shall have delivered to the Trustee an Opinion of Counsel stating that (i) the Company has
received from, or there has been published by, the Internal Revenue Service a ruling or (ii) since the date of execution of this Indenture, there has been a change in the applicable federal
income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the Holders of such Outstanding Debentures will not recognize income, gain or loss for federal
income tax purposes as a result of such defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such
defeasance had not occurred. 

        (e)  In
the case of an election under Section 14.03, the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of such
Outstanding Debentures will not recognize income, gain or loss for federal income tax purposes as a result of such covenant defeasance and will be subject to federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such covenant defeasance had not occurred. 

        (f)    The
Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent to the defeasance under
Section 14.02 or the covenant defeasance under Section 14.03 (as the case may be) have been complied with and an Opinion of Counsel to the effect that either (i) as a result of a
deposit pursuant to clause (a) above and the related exercise of the Company's option under Section 14.02 or 14.03 (as the case may be), registration is not required under the Investment
Company Act of 1940, as amended, by the Company, with respect to the trust funds representing such deposit or by the Trustee for such trust funds or (ii) all necessary registrations under said
act have been effected. 

        (g)  Notwithstanding
any other provisions of this Section 14.04, such defeasance or covenant defeasance shall be effected in compliance with any additional or
substitute terms, conditions or limitations which may be imposed on the Company in connection therewith pursuant to Section 3.01. 

46

 

        Section 14.05. Deposited Money and Government Obligations to be Held in Trust; Other Miscellaneous Provisions. Subject to the
provisions of the last paragraph of Section 10.03, all money and Government Obligations (or other property as may be provided pursuant to Section 3.01) (including the proceeds thereof)
deposited with the Trustee (or other qualifying Trustee, collectively for purposes of this Section 14.05, the "Trustee") pursuant to Section 14.04 in respect of any Outstanding
Debentures of any series shall be held in trust and applied by the Trustee, in accordance with the provisions of such Debentures and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Debentures of all sums due and to become due thereon in respect of principal
(and premium, if any) and interest but such money need not be segregated from other funds except to the extent required by law. 

        The
Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the Government Obligations deposited pursuant to Section 14.04
or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of such Outstanding Debentures. 

        Anything
in this Article XIV to the contrary notwithstanding, subject to Section 6.06, the Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or Government Obligations (or other property and any proceeds therefrom) held by it as provided in Section 14.04 which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect a
defeasance or covenant defeasance, as applicable, in accordance with this Article XIV. 

47

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

	 	 	Brooke Corporation
	

 	
 	
By	

 
	 	 	 	

	 	 	Name	 
	 	 	 	

	 	 	Title	 
	 	 	 	

	

 	
 	
Wells Fargo Bank Minnesota, N.A., as Trustee
	

 	
 	
By	

 
	 	 	 	

	 	 	Name	 
	 	 	 	

	 	 	Title	 
	 	 	 	

48

 

	STATE OF	 	)	 	 
	 	 	) ss.	 	 
	COUNTY OF	 	)	 	 

        On
this            day of                        , before me, the
undersigned, a Notary Public in and for the State of                        , duly commissioned and sworn,
personally
appeared                        and                
        to me known to be the persons who signed as                        ,
and                        , respectively,
of                        , the corporation that
executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned and on oath
stated that they were duly elected, qualified and acting as said officers of the corporation, that they were authorized to execute said instrument and that the seal affixed if any, is the corporate
seal of said corporation. 

        IN
WITNESS WHEREOF I have hereunto see my hand and official seal the day and year first above written. 

	 	 	    
 (Signature of Notary)
	

 	
 	

    
 (Print or stamp name of Notary)
	

 	
 	

NOTARY PUBLIC in and for the State of                        , residing
at                        . My Appointment
Expires:                        .

49

 

	STATE OF	 	)	 	 
	 	 	) ss.	 	 
	COUNTY OF	 	)	 	 

        On
this            day of                        , before me, the
undersigned, a Notary Public in and for the State of                        , duly commissioned and sworn,
personally
appeared                        and                
        , to me known to be the persons who signed
as                        and                 
       , respectively, of                        , the national banking
association that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of said national banking association for the uses and purposes
therein mentioned, and on oath stated that they were duly elected, qualified and acting as said officers of the national banking association, that they were authorized to execute said instrument and
that the seal affixed if any, is the seal of said national banking association. 

        IN
WITNESS WHEREOF I have hereunto set my hand and official seal the day and year first above written. 

	 	 	    
 (Signature of Notary)
	

 	
 	

    
 (Print or stamp name of Notary)
	

 	
 	

NOTARY PUBLIC in and for the State of                        , residing
at                        . My Appointment
Expires:                        .

50

 
 

EXHIBIT A    
  

 
  FORM OF DEBENTURE    
  

 
  [FACE OF DEBENTURE]    
  

        [If
the Holder of this Debenture (as indicated below it) is The Depository Trust Company ("DTC") or a nominee of DTC, this Debenture is a Global Debenture and the following
two legends apply: 

        UNLESS
THIS DEBENTURE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY ("DTC"), 55 WATER STREET, NEW YORK, NEW YORK TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH DEBENTURE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

        UNLESS
AND UNTIL THIS DEBENTURE IS EXCHANGED IN WHOLE OR IN PART FOR DEBENTURES IN CERTIFICATED FORM, THIS DEBENTURE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF
OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.] 

        [IF
THIS DEBENTURE IS AN ORIGINAL ISSUE DISCOUNT DEBENTURE, INSERT—FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE
CODE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THIS DEBENTURE IS            % OF ITS PRINCIPAL AMOUNT, THE ISSUE DATE
IS                        ,            [AND] THE YIELD TO
MATURITY IS            %. [THE METHOD USED TO DETERMINE THE AMOUNT OF ORIGINAL ISSUE DISCOUNT APPLICABLE TO THE SHORT ACCRUAL PERIOD
OF                        ,            TO
                        ,            ,
IS            % OF THE PRINCIPAL AMOUNT OF THIS DEBENTURE.] 

 
 

[DESIGNATION OF SERIES]    
  

	No.	 	$

        BROOKE CORPORATION, a Kansas corporation (herein referred to as the "Company," which term includes any successor under the Indenture referred to on the reverse
hereof), for value received, hereby promises to pay to                        or registered assigns the principal sum
of                        Dollars
on                        (the "Stated Maturity Date")
[OR INSERT DATE FIXED FOR EARLIER REDEMPTION (the "Redemption Date)" and, together with the Stated Maturity Date with respect to principal repayable on such date, the "Maturity
Date")]. 

        [IF
THE DEBENTURE IS TO BEAR INTEREST PRIOR TO MATURITY, INSERT—and to pay interest thereon from                        or from
the most recent interest payment date to
which interest has been paid or duly provided for, in arrears [semi-annually on            1 and            1 (each, an "Interest
Payment Date"), commencing
                        1, 2003, at the rate of            % per annum,
 until the entire principal amount hereof is paid or duly provided for. The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Holder in whose name this Debenture (or one or more predecessor Debentures) is registered at the close of business
on the Regular Record Date for such interest, which shall be the fifteenth day of the month (whether or not a Business Day, as defined below) next preceding such Interest Payment Date [at
the office or agency of the Company maintained for such purpose; provided, however, that such interest may be paid, at the Company's option, by mailing a check to such Holder at such Holder's
registered address or by transfer of funds to an account maintained by such Holder within the United States]. Any such interest not so punctually paid or duly provided for shall forthwith 

 

cease to be payable to the Holder on such Regular Record Date, and may be paid to the Holder in whose name this Debenture (or one or more predecessor Debentures) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Debentures of this series not more than
15 days and not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Debentures of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.] 

        [IF
THE DEBENTURE IS NOT TO BEAR INTEREST PRIOR TO MATURITY, INSERT—The principal of this Debenture shall not bear interest except in the case of a default in
payment of principal upon acceleration, upon redemption or at the [Stated] Maturity Date and in such case the overdue principal of this Debenture shall bear interest at the
rate of        % per annum (to the extent that the payment of such interest shall be legally enforceable), which shall accrue from the date of such default in payment to the date payment of
such principal has been made or duly provided for. Interest on any overdue principal shall be payable on demand. Any such interest on any overdue principal that is not so paid on demand shall bear
interest at the rate of            % per annum (to the extent that the payment of such interest shall be legally enforceable), which shall accrue from the date of such demand for payment to
the
date payment of such interest has been made or duly provided for, and such interest shall also be payable on demand.] 

        Interest
payable on this Debenture on any Interest Payment Date and on the [Stated] Maturity Date [or Redemption Date, as the case may
be,] will include interest accrued from and including the next preceding Interest Payment Date in respect of which interest has been paid or duly provided for (or from and including
            , if no interest has been paid on this Debenture) to but excluding such Interest Payment Date or the [Stated] Maturity Date [or Redemption Date, as
the case may be]. If any Interest Payment Date or the [Stated] Maturity Date [or Redemption Date] falls on a day that is not a Business Day,
principal, premium, if any, and/or interest payable with respect to such Interest Payment Date or [Stated] Maturity Date [or Redemption Date, as the case may
be,] will be paid on the next succeeding Business Day with the same force and effect as if it were paid on the date such payment was due, and no interest shall accrue on the amount so
payable for the period from and after such Interest Payment Date or [Stated] Maturity Date [or Redemption Date, as the case may be]. "Business Day"
means any day, other than a Saturday or Sunday, on which banks in New York are not required or authorized by law or executive order to close. 

        [IF
THIS DEBENTURE IS A GLOBAL DEBENTURE, INSERT—All payments of principal, premium, if any, and interest in respect of this Debenture will be made by the Company
in immediately available funds.] 

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

        Unless
the Certificate of Authentication hereon has been executed by the Trustee by manual signature of one of its authorized signatories, this Debenture shall not be entitled to any
benefit under the Indenture, or be valid or obligatory for any purpose. 

        IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its [facsimile] corporate seal. 

	Dated	 	    
	 	    

	

Attest:	
 	

By	
 	

    

	

 Secretary	
 	

 	
 	

 

A-2

 
 
 

[Reverse of Debenture]    

        This
Debenture is one of a duly authorized issue of securities of the Company, issued and to be issued in one or more series under a Subordinated Indenture an Indenture, dated as of
                        ,            (herein called the "Indenture")
between the Company and Wells Fargo Bank Minnesota, N.A., as Trustee (herein called the "Trustee," which term includes any successor
trustee under the Indenture with respect to the series of which this Debenture is a part), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Debentures, and of the terms upon which the Debentures are, and are to be,
authenticated and delivered. This Debenture is
one of the duly authorized series of Debentures designated on the face hereof (collectively, the "Debentures"), [IF APPLICABLE, INSERT—and the aggregate principal amount of the
securities to be issued under such series is limited to $                        (except for Debentures authenticated and
delivered upon transfer of, or in exchange for, or in lieu of other
Debentures).] All terms used in this Debenture which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

        If
an Event of Default shall occur and be continuing, the principal of the Debentures of this series may be declared due and payable in the manner and with the effect provided in the
Indenture. 

        [IF
APPLICABLE, INSERT—The Debentures may not be redeemed prior to the [Stated] Maturity Date.] 

        [IF
APPLICABLE, INSERT—The Debentures are subject to redemption [(a) [IF APPLICABLE, INSERT—on
                     in any year commencing with the year        and ending with the
year        through operation of the sinking fund for this series at a Redemption Price equal to
100% of the principal amount and (b)] [IF APPLICABLE, INSERT—at any time [on or after                        ], as a whole or
in part, at the
election of the Company, at the following Redemption Prices (expressed as percentages of the principal amount): If redeemed on or
before                        ,        % and if redeemed during the
12-month period beginning                        of the years indicated, at the Redemption Prices indicated below. 

	Year
	 	Redemption Price
	 	Year
	 	Redemption Price

	 	 	 	 	 	 	 

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

        [IF
APPLICABLE, INSERT—The Debentures are subject to redemption (a)
 on                                 in any year commencing with the year
        and ending with the
year                                 at the Redemption Prices for redemption through
operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below and
(b) at any time [on or after                    ], as a whole or in part, at the election of the Company, at the Redemption Prices for redemption
otherwise than through
operation of the sinking fund (expressed as percentages of the 

A-3

 

principal amount) set forth in the table below: If redeemed during the 12-month period beginning                    of the years indicated,

	Year
	 	Redemption Price for Redemption Through Operation of the Sinking Fund
	 	Redemption Price for Redemption Otherwise Than Through Operation of the Sinking Fund

	 	 	 	 	 

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

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

        [IF
APPLICABLE, INSERT—The sinking fund for the Debentures provides for the redemption on                        in each year,
beginning with the year            and
ending with the year            , of [not less than] $    ] [("mandatory sinking fund") and not more than
$                        ]
aggregate principal amount of the Debentures. [The Debentures acquired or redeemed by the Company otherwise than through [mandatory] sinking fund payments may be
credited against subsequent [mandatory] sinking fund payments otherwise required to be made in the [DESCRIBE ORDER] order in which they become
due.]] 

        Notice
of redemption will be given by mail to Holders of Debentures, not less than 30 nor more than 60 days prior to the Redemption Date, all as provided in the Indenture. 

        In
the event of redemption of the Debenture in part only, a new Debenture or Debentures for the unredeemed portion hereof shall be issued in the name of the Holder hereof upon the
cancellation hereof. 

        [IF
APPLICABLE, INSERT CONVERSION PROVISIONS SET FORTH IN ANY BOARD RESOLUTION OR INDENTURE SUPPLEMENTAL TO THE INDENTURE.] 

        The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the Debentures under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority of the aggregate principal amount of all Debentures issued
under the Indenture at the time Outstanding and affected thereby. The Indenture also contains provisions permitting the Holders of not less than a majority of the aggregate principal amount of the
Outstanding Debentures, on behalf of the Holders of all such Debentures, to waive compliance by the Company with certain provisions of the Indenture. Furthermore, provisions in the Indenture permit
the Holders of not less than a majority of the aggregate principal amount, in certain instances, of the Outstanding Debentures of any series to waive, on behalf of all of the Holders of Debentures of
such series, certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Debenture shall be conclusive and binding upon such Holder and upon all
future Holders of this Debenture and other Debentures issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Debenture. 

A-4

 

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

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

        As
provided in the Indenture and subject to certain limitations therein [and herein] set forth, this Debenture is exchangeable for a like aggregate principal
amount of Debentures of different authorized
denominations but otherwise having the same terms and conditions, as requested by the Holder hereof surrendering the same. 

        The
Debentures of this series are issuable only in registered form in denominations of $                        and any integral
multiple thereof. No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

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

        No
recourse shall be had for the payment of the principal of or premium, if any, or the interest on this Debenture, or for any claim based thereon, or otherwise in respect hereof, or
based on or in respect of the Indenture or any indenture supplemental thereto, against any past, present or future stockholder, employee, officer or director, as such, of the Company or of any
successor, either directly or through the Company or any successor, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all
such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 

        The
Indenture and the Debentures shall be governed by and construed in accordance with the laws of the State
of                        applicable to agreements made and to be performed entirely
in such State. 

 
 

TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
  

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

	 	 	[NAME OF TRUSTEE], as Trustee
	

 	
 	

By:	

    
 Authorized Signatory

A-5

QuickLinks

SUBORDINATED INDENTURE

TABLE OF CONTENTS

ARTICLE II DEBENTURES TERMS

ARTICLE III THE DEBENTURES

ARTICLE IV SATISFACTION AND DISCHARGE

ARTICLE V REMEDIES

ARTICLE IX SUPPLEMENTAL INDENTURES

ARTICLE X COVENANTS; SUBORDINATION

ARTICLE XI REDEMPTION OF DEBENTURES

ARTICLE XII SINKING FUNDS

ARTICLE XIII REPAYMENT AT THE OPTION OF HOLDERS

ARTICLE XIV DEFEASANCE AND COVENANT DEFEASANCE

EXHIBIT A

FORM OF DEBENTURE

[FACE OF DEBENTURE]

[DESIGNATION OF SERIES]

[Reverse of Debenture]

TRUSTEE'S CERTIFICATE OF AUTHENTICATIONQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.4    
  

 
  SUREBEAM CORPORATION    
  

 
  2000 STOCK OPTION AND INCENTIVE PLAN    
  

 
 
 

TABLE OF CONTENTS    
  

	 
	 	 
	 	 
	 	 
	 	Page

	1.	 	PURPOSE	 	1
	

2.	
 	

DEFINITIONS	
 	

1
	

3.	
 	

ADMINISTRATION OF THE PLAN	
 	

4
	

 	
 	

3.1	
 	

Board	
 	

4
	

 	
 	

3.2	
 	

Committee	
 	

4
	

 	
 	

3.3	
 	

Awards	
 	

4
	

 	
 	

3.4	
 	

No Liability	
 	

5
	

4.	
 	

STOCK SUBJECT TO THE PLAN	
 	

5
	

5.	
 	

EFFECTIVE DATE AND TERM OF THE PLAN	
 	

5
	

 	
 	

5.1	
 	

Effective Date	
 	

5
	

 	
 	

5.2	
 	

Term	
 	

5
	

6.	
 	

OPTION GRANTS	
 	

5
	

 	
 	

6.1	
 	

Company or Subsidiary Employees; Service Providers; Other Persons	
 	

5
	

 	
 	

6.2	
 	

Successive Awards	
 	

5
	

 	
 	

6.3	
 	

Reload Options	
 	

5
	

7.	
 	

LIMITATIONS ON GRANTS	
 	

6
	

 	
 	

7.1	
 	

Limitation on Shares of Stock Subject to Awards and Cash Awards	
 	

6
	

 	
 	

7.2	
 	

Limitations on Incentive Stock Options	
 	

6
	

8.	
 	

AWARD AGREEMENT	
 	

6
	

9.	
 	

OPTION PRICE	
 	

6
	

10.	
 	

VESTING, TERM AND EXERCISE OF OPTIONS	
 	

7
	

 	
 	

10.1	
 	

Vesting and Option Period	
 	

7
	

 	
 	

10.2	
 	

Term	
 	

7
	

 	
 	

10.3	
 	

Acceleration	
 	

7
	

 	
 	

10.4	
 	

Termination of Employment or Other Relationship	
 	

7
	

 	
 	

10.5	
 	

Rights in the Event of Death	
 	

7
	

 	
 	

10.6	
 	

Rights in the Event of Disability	
 	

8
	

 	
 	

10.7	
 	

Limitations on Exercise of Option	
 	

8
	

 	
 	

10.8	
 	

Method of Exercise	
 	

8
	

 	
 	

10.9	
 	

Delivery of Stock Certificates	
 	

9
	

11.	
 	

STOCK APPRECIATION RIGHTS	
 	

9
	

 	
 	

11.1	
 	

Right to Payment	
 	

9
	
 	
 	

 	
 	

 	
 	

 	
 	

 

ii

 

	

 	
 	

11.2	
 	

Other Terms	
 	

9
	

12.	
 	

TRANSFERABILITY OF OPTIONS	
 	

9
	

 	
 	

12.1	
 	

Transferability of Options	
 	

9
	

 	
 	

12.2	
 	

Family Transfers	
 	

9
	

13.	
 	

RESTRICTED STOCK	
 	

10
	

 	
 	

13.1	
 	

Grant of Restricted Stock or Restricted Stock Units	
 	

10
	

 	
 	

13.2	
 	

Restrictions	
 	

10
	

 	
 	

13.3	
 	

Restricted Stock Certificates	
 	

10
	

 	
 	

13.4	
 	

Rights of Holders of Restricted Stock	
 	

10
	

 	
 	

13.5	
 	

Rights of Holders of Restricted Stock Units	
 	

10
	

 	
 	

13.6	
 	

Termination of Employment or Other Relationship	
 	

11
	

 	
 	

13.7	
 	

Rights in the Event of Death	
 	

11
	

 	
 	

13.8	
 	

Rights in the Event of Disability	
 	

11
	

 	
 	

13.9	
 	

Delivery of Stock and Payment Therefor	
 	

11
	

14.	
 	

DEFERRED STOCK AWARDS	
 	

11
	

 	
 	

14.1	
 	

Nature of Deferred Stock Awards	
 	

11
	

 	
 	

14.2	
 	

Election to Receive Deferred Stock Awards in Lieu of Compensation	
 	

12
	

 	
 	

14.3	
 	

Rights as a Stockholder	
 	

12
	

 	
 	

14.4	
 	

Restrictions	
 	

12
	

 	
 	

14.5	
 	

Termination	
 	

12
	

15.	
 	

Unrestricted Stock Awards	
 	

12
	

 	
 	

15.1	
 	

Grant or Sale of Unrestricted Stock	
 	

12
	

16.	
 	

Performance Stock Awards	
 	

12
	

 	
 	

16.1	
 	

Nature of Performance Stock Awards	
 	

12
	

 	
 	

16.2	
 	

Rights as a Stockholder	
 	

13
	

 	
 	

16.3	
 	

Termination	
 	

13
	

 	
 	

16.4	
 	

Acceleration, Waiver, Etc	
 	

13
	

17.	
 	

Dividend Equivalent Rights	
 	

13
	

 	
 	

17.1	
 	

Dividend Equivalent Rights	
 	

13
	

 	
 	

17.2	
 	

Interest Equivalents	
 	

13
	

 	
 	

17.3	
 	

Termination	
 	

13
	

18.	
 	

Certain Provisions Applicable to Awards	
 	

14
	

 	
 	

18.1	
 	

Stand-Alone, Additional, Tandem, and Substitute Awards	
 	

14
	
 	
 	

 	
 	

 	
 	

 	
 	

 

iii

 

	

 	
 	

18.2	
 	

Term of Awards	
 	

14
	

 	
 	

18.3	
 	

Form and Timing of Payment Under Awards; Deferrals	
 	

14
	

 	
 	

18.4	
 	

Performance and Annual Incentive Awards	
 	

14
	

 	
 	

 	
 	

18.4.1	
 	

Performance Conditions	
 	

14
	

 	
 	

 	
 	

18.4.2	
 	

Performance Awards Granted to Designated Covered Employees	
 	

15
	

 	
 	

 	
 	

18.4.3	
 	

Annual Incentive Awards Granted to Designated Covered Employees	
 	

16
	

 	
 	

 	
 	

18.4.4	
 	

Written Determinations	
 	

17
	

 	
 	

 	
 	

18.4.5	
 	

Status of Section 18.4.3 and Section 18.4.2 Awards Under Code Section 162(m)	
 	

17
	

19.	
 	

Parachute Limitations	
 	

17
	

20.	
 	

Requirements of Law	
 	

18
	

 	
 	

20.1	
 	

General	
 	

18
	

 	
 	

20.2	
 	

Rule 16b-3	
 	

18
	

 	
 	

20.3	
 	

Limitation Following a Hardship Distribution	
 	

18
	

21.	
 	

Amendment and Termination of The Plan	
 	

19
	

22.	
 	

Effect of Changes in Capitalization	
 	

19
	

 	
 	

22.1	
 	

Changes in Stock	
 	

19
	

 	
 	

22.2	
 	

Reorganization in Which the Company Is the Surviving Entity and in Which No Change in Control Occurs	
 	

19
	

 	
 	

22.3	
 	

Reorganization, Sale of Assets or Sale of Stock Which Involves a Change in Control	
 	

20
	

 	
 	

22.4	
 	

Adjustments	
 	

20
	

 	
 	

22.5	
 	

No Limitations on Company	
 	

20
	

23.	
 	

Pooling	
 	

20
	

24.	
 	

Disclaimer of Rights	
 	

20
	

25.	
 	

Nonexclusivity of The Plan	
 	

21
	

26.	
 	

Withholding Taxes	
 	

21
	

27.	
 	

Captions	
 	

21
	

28.	
 	

Other Provisions	
 	

21
	

29.	
 	

California Provisions	
 	

22
	

 	
 	

29.1	
 	

Definitions	
 	

22
	

 	
 	

29.2	
 	

Fair Market Value	
 	

23
	

 	
 	

29.3	
 	

Share Reserve Limitation	
 	

23
	

 	
 	

29.4	
 	

Ten Percent Shareholders	
 	

23
	

 	
 	

29.5	
 	

Nonstatutory Stock Options	
 	

23
	
 	
 	

 	
 	

 	
 	

 	
 	

 

iv

 

	

 	
 	

 	
 	

(a)	
 	

Exercise Price	
 	

23
	

 	
 	

 	
 	

(b)	
 	

Transferability	
 	

23
	

 	
 	

29.6	
 	

Minimum Vesting Prior to the Listing Date	
 	

24
	

 	
 	

29.7	
 	

Awards Other Than Options	
 	

24
	

 	
 	

 	
 	

(a)	
 	

Purchase Price	
 	

24
	

 	
 	

 	
 	

(b)	
 	

Transferability	
 	

24
	

 	
 	

29.8	
 	

Information Obligation	
 	

24
	

 	
 	

29.9	
 	

Repurchase Limitation	
 	

24
	

 	
 	

 	
 	

(a)	
 	

Fair Market Value	
 	

24
	

 	
 	

 	
 	

(b)	
 	

Original Purchase Price	
 	

25
	

 	
 	

29.10	
 	

Voting Rights	
 	

25
	

 	
 	

29.11	
 	

Plan Termination Date	
 	

25
	

30.	
 	

Number and Gender	
 	

25
	

31.	
 	

Severability	
 	

25
	

32.	
 	

Governing Law	
 	

25

v

 
 

SUREBEAM CORPORATION    
  

 
  2000 STOCK OPTION AND INCENTIVE PLAN    
  

        SUREBEAM CORPORATION, a Delaware corporation (the "COMPANY"), sets forth herein the terms of the Company's 2000 Stock Option and Incentive Plan (the "PLAN") as
follows: 

1.    PURPOSE  

        The purpose of the Plan is to enhance the Company's ability to attract, retain, and compensate highly qualified officers, key employees, and other persons, and to
motivate such officers, key employees, and other persons to serve the Company and its affiliates (as defined herein) and to expend maximum effort to improve the business results and earnings of the
Company, by providing to such officers, key employees and other persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company and with
other financial incentives. To this end, the Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock awards, unrestricted
stock awards, performance stock awards, dividend equivalent rights, performance awards and annual incentive awards in accordance with the terms hereof. Stock options granted under the Plan may be
non-qualified stock options or incentive stock options, as provided herein. 

2.    DEFINITIONS  

        For purposes of interpreting the Plan and related documents (including Award Agreements), the following definitions shall apply: 

        2.1  "AFFILIATE"
of, or person "AFFILIATED" with, a person means any company or other trade or business that controls, is controlled by or is under common control with such
person within the meaning of Rule 405 of Regulation C under the Securities Act. 

        2.2  "ANNUAL
INCENTIVE AWARD" means a conditional right granted to a Grantee under Section 18.4.3 hereof to receive a cash payment, Stock or other Award, unless
otherwise determined by the Committee, after the end of a specified fiscal year. 

        2.3  "AWARD"
means a grant of an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Deferred Stock, Unrestricted Stock, Performance Stock, Dividend
Equivalent Rights, Performance or Annual Incentive Awards under the Plan. 

        2.4  "AWARD
AGREEMENT" means the stock option agreement, stock appreciation rights agreement, restricted stock agreement, restricted stock unit agreement, deferred stock
award agreement, unrestricted stock award agreement, performance stock award agreement, dividend equivalent rights agreement, performance award agreement, annual incentive award agreement or other
written agreement between the Company and a Grantee that evidences and sets out the terms and conditions of an Award. 

        2.5  "BENEFIT
ARRANGEMENT" shall have the meaning set forth in Section 19 hereof. 

        2.6  "BOARD"
means the Board of Directors of the Company. 

        2.7  "CHANGE
IN CONTROL" means a merger, consolidation, or reorganization of the Company with one or more other entities in which the Company is not the surviving entity, a
sale of substantially all of the assets of the Company to another entity, or any transaction (including, without limitation, a merger or reorganization in which the Company is the surviving entity)
approved by the Board that results in any person or entity (or person or entities acting as a group or otherwise in concert), owning fifty percent (50%) or more of the combined voting power of all
classes of securities of the Company). 

        2.8  "CODE"
means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. 

 

        2.9  "COMMITTEE"
means a committee of, and designated from time to time by resolution of, the Board, which shall consist of no fewer than two members of the Board, none of
whom shall be an officer or other salaried employee of the Company or any affiliate of the Company. 

        2.10 "COMPANY"
means SureBeam Corporation. 

        2.11 "COVERED
EMPLOYEE" means a Grantee who is a Covered Employee within the meaning of Section 162(m)(3) of the Code. 

        2.12 "DEFERRED
STOCK" means a right, granted to a Grantee under Section 14 hereof, to receive Stock, cash or a combination thereof at the end of a specified deferral period. 

        2.13 "DIVIDEND
EQUIVALENT" means a right, granted to a Grantee under Section 17 hereof, to receive cash, Stock, other Awards or other property equal in value to
dividends paid with respect to a specified number of shares of Stock, or other periodic payments. 

        2.14 "EFFECTIVE
DATE" means August 4, 2000, the date on which the Plan was adopted by the Board. 

        2.15 "EXCHANGE
ACT" means the Securities Exchange Act of 1934, as now in effect or as hereafter amended. 

        2.16 "FAMILY
MEMBER" means a person who is a spouse, child, stepchild, grandchild, parent, stepparent, grandparent, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of the Grantee, any person sharing the Grantee's household (other than a tenant or employee), a trust
in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the Grantee) control the management of assets, and any other entity in which
these persons (or the Grantee) own more than fifty percent of the voting interests. 

        2.17 "FAIR
MARKET VALUE" means the value of a share of Stock, determined as follows: if on the Grant Date or other determination date the Stock is listed on an established
national or regional stock exchange, is admitted to quotation on The Nasdaq Stock Market, Inc., or is publicly traded on an established securities market, the Fair Market Value of a share of
Stock shall be the closing price of the Stock on such exchange or in such market (the highest such closing price if there is more than one such exchange or market) on the Grant Date or such other
determination date (or if there is no such reported closing price, the Fair Market Value shall be the mean between the highest bid and lowest asked prices or between the high and low sale prices on
such trading day) or, if no sale of Stock is
reported for such trading day, on the next preceding day on which any sale shall have been reported. If the Stock is not listed on such an exchange, quoted on such system or traded on such a market,
Fair Market Value shall be the value of the Stock as determined by the Board in good faith. 

        2.18 "GRANT
DATE" means, as determined by the Board or authorized Committee, (i) the date as of which the Board or such Committee approves an Award, (ii) the
date on which the recipient of such Award first became an employee of or otherwise entered into a relationship with the Company or an affiliate of the Company or (iii) such other date as may be
specified by the Board or such Committee. 

        2.19 "GRANTEE"
means a person who receives or holds a grant of an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Deferred Stock, Unrestricted
Stock, Performance Stock, Performance or Annual Incentive Awards, or Dividend Equivalent Rights under the Plan. 

2

 

        2.20 "INCENTIVE
STOCK OPTION" means an "incentive stock option" within the meaning of Section 422 of the Code, or the corresponding provision of any subsequently
enacted tax statute, as amended from time to time. 

        2.21 "OPTION"
means an option to purchase one or more shares of Stock pursuant to the Plan. 

        2.22 "OPTION
PERIOD" means the period during which Options may be exercised as set forth in Section 10 hereof. 

        2.23 "OPTION
PRICE" means the purchase price for each share of Stock subject to an Option. 

        2.24 "OTHER
AGREEMENT" shall have the meaning set forth in Section 19 hereof. 

        2.25 "OUTSIDE
DIRECTOR" means a member of the Board who is not an officer or employee of the Company. 

        2.26 "PERFORMANCE
STOCK AWARD" means Awards granted pursuant to Section 16. 

        2.27 "PLAN"
means this SureBeam Corporation 2000 Stock Option and Incentive Plan. 

        2.28 "REPORTING
PERSON" means a person who is required to file reports under Section 16(a) of the Exchange Act. 

        2.29 "RESTRICTED
PERIOD" means the period during which Restricted Stock or Restricted Stock Units are subject to restrictions or conditions pursuant to Section 13.2
hereof. 

        2.30 "RESTRICTED
STOCK" means shares of Stock, awarded to a Grantee pursuant to Section 13 hereof, that are subject to restrictions and to a risk of forfeiture. 

        2.31 "RESTRICTED
STOCK UNIT" means a unit awarded to a Grantee pursuant to Section 13 hereof, which represents a conditional right to receive a share of Stock in the
future, and which is subject to restrictions and to a risk of forfeiture. 

        2.32 "SECURITIES
ACT" means the Securities Act of 1933, as now in effect or as hereafter amended. 

        2.33 "SERVICE
PROVIDER" means a consultant or adviser to the Company, a manager of the Company's properties or affairs, or other similar service provider or affiliate of the
Company, and employees of any of the foregoing, as such persons may be designated from time to time by the Board pursuant to Section 6 hereof. 

        2.34 "STOCK"
means the Class A common stock, par value $.001 per share, of the Company. 

        2.35 "STOCK
APPRECIATION RIGHTS" or "SAR" means a right granted to a Grantee under Section 11 hereof. 

        2.36 "SUBSIDIARY"
means any "subsidiary corporation" of the Company within the meaning of Section 424(f) of the Code. 

        2.37 "TERMINATION
DATE" means the date upon which an Option shall terminate or expire, as set forth in Section 10.2 hereof. 

        2.38 "UNRESTRICTED
STOCK AWARD" means any Award granted pursuant to Section 15. 

3

 

3.    ADMINISTRATION OF THE PLAN  

        3.1    BOARD.

        The
Board shall have such powers and authorities related to the administration of the Plan as are consistent with the Company's certificate of incorporation and by-laws and applicable
law. The Board shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have full
power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or
appropriate to the administration of the Plan, any Award or any Award Agreement. All such actions and determinations shall be by the affirmative vote of a majority of the members of the Board present
at a meeting or by unanimous consent of the Board executed in writing in accordance with the Company's certificate of incorporation and by-laws and applicable law. The interpretation and construction
by the Board of any provision of the Plan, any Award or any Award Agreement shall be final and conclusive. To the extent permitted by law, the Board may delegate its authority under the Plan to a
member of the Board of Directors or to an executive officer of the Company who is a member of the Board of Directors. 

        3.2    COMMITTEE.

        The
Board from time to time may delegate to a Committee such powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 above
and in other applicable provisions, as the Board shall determine, consistent with the certificate of incorporation and by-laws of the Company and applicable law. In the event that the Plan, any Award
or any Award Agreement entered into hereunder provides for any action to be taken by or determination to be made by the Board, such action may be taken or such determination may be made by the
Committee if the power and authority to do so has been delegated to the Committee by the Board as provided for in this Section. Unless otherwise expressly determined by the Board, any such action or
determination by the Committee shall be final, binding and conclusive. To the extent permitted by law, the Committee may delegate its authority under the Plan to a member of the Board of Directors or
an executive officer of the Company who is a member of the Board of Directors. 

        3.3    AWARDS. 

        Subject
to the other terms and conditions of the Plan, the Board shall have full and final authority (i) to designate Grantees, (ii) to determine the type or types of
Awards to be made to a Grantee, (iii) to determine the number of shares of Stock to be subject to an Award, (iv) to establish the terms and conditions of each Award (including, but not
limited to, the exercise price of any Option, the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an
Award or the shares of Stock subject thereto, and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options), (v) to prescribe the form of each Award Agreement
evidencing an Award, and (vi) to amend, modify, or supplement the terms of any outstanding Award. Such authority specifically includes the authority, in order to effectuate the purposes of the Plan
but without amending the Plan, to modify Awards to eligible individuals who are foreign nationals or are individuals who are employed outside the United States to recognize differences in local law,
tax policy, or custom. As a condition to any subsequent Award, the Board shall have the right, at its discretion, to require Grantees to return to the Company Awards previously made under the Plan.
Subject to the terms and conditions of the Plan, any such new Award shall be upon such terms and conditions as are specified by the Board at the time the new Award is made. 

4

 

        3.4    NO
LIABILITY. 

        No
member of the Board or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award or Award Agreement. 

4.    STOCK SUBJECT TO THE PLAN  

        Subject to adjustment as provided in Section 22 hereof, the number of shares of Stock available for issuance under the Plan shall be two million one
hundred seventy thousand eight hundred (2,170,800), no more than five hundred thousand (500,000) of which may be issued pursuant to awards of other than Options. Stock issued or to be issued under the
Plan shall be authorized but unissued shares. If any shares covered by an Award are not purchased or are forfeited, or if an Award otherwise terminates without delivery of any Stock subject thereto,
then the number of shares of Stock counted against the aggregate number of shares available under the Plan with respect to such Award shall, to the extent of any such forfeiture or termination, again
be available for making Awards under the Plan. 

5.    EFFECTIVE DATE AND TERM OF THE PLAN  

        5.1    EFFECTIVE
DATE. 

        The
Plan shall be effective as of the Effective Date, subject to approval of the Plan within one year of the Effective Date, by a majority of the votes cast on the proposal at a meeting
of shareholders, provided that the total votes cast represent a majority of all shares entitled to vote. Upon approval of the Plan by the shareholders of the Company as set forth above, all Awards
made under the Plan on or after the Effective Date shall be fully effective as if the shareholders of the Company had approved the Plan on the Effective Date. If the shareholders fail to approve the
Plan within one year after the Effective Date, any Awards made hereunder shall be null and void and of no effect. 

        5.2    TERM.

        The
Plan has no termination date; however, no Incentive Stock Option may be granted under the Plan on or after the tenth anniversary of the Effective Date. 

6.    OPTION GRANTS  

        6.1    COMPANY
OR SUBSIDIARY EMPLOYEES; SERVICE PROVIDERS; OTHER PERSONS. 

        Subject
to Section 7, Awards may be made under the Plan to: (i) any employee of, or a Service Provider to, the Company or of any affiliate, including any such employee who
is an officer or director of the Company or of any affiliate, as the Board shall determine and designate from time to time, and (ii) any other individual whose participation in the Plan is
determined to be in the best interests of the Company by the Board. 

        6.2    SUCCESSIVE
AWARDS. 

        An
eligible person may receive more than one Award, subject to such restrictions as are provided herein. 

        6.3    RELOAD
OPTIONS. 

        At
the discretion of the Board and subject to such restrictions, terms and conditions as the Board may establish, Options granted under the Plan may include a "reload" feature pursuant
to which a Grantee exercising an Option by the delivery of a number of shares of Stock in accordance with Section 10.8 hereof would automatically be granted an additional Option (with an
exercise price equal to the Fair Market Value of the Stock on the date the additional Option is granted and with such other terms as the Board may provide) to purchase that number of shares of Stock
equal to the number 

5

 

delivered to exercise the original Option with an Option term equal to the remainder of the original Option term unless the Board otherwise determines in the Option Award Agreement for the original
grant. 

7.    LIMITATIONS ON GRANTS  

        7.1    LIMITATION
ON SHARES OF STOCK SUBJECT TO AWARDS AND CASH AWARDS. 

        During
any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, the maximum number of shares of Stock subject to Options that can
be awarded under the Plan to any person eligible for an Award under Section 6 hereof is one million (1,000,000) per year. During any time when the Company has a class of equity security
registered under Section 12 of the Exchange Act, the maximum number of shares that can be awarded under the Plan, other than pursuant to an Option to any person eligible for an Award under
Section 6 hereof is five hundred thousand (500,000) per year. The maximum amount that may be earned as an Annual Incentive Award or other cash Award in any fiscal year by any one Grantee shall
be $4,000,000 and the maximum amount that may be earned as a Performance Award or other cash Award in respect of a performance period by any one Grantee shall be $4,000,000. 

        7.2    LIMITATIONS
ON INCENTIVE STOCK OPTIONS. 

        An
Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option is an employee of the Company or any Subsidiary of the Company; (ii) to the
extent specifically provided in
the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the shares of Stock with respect to which all
Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee's employer and its affiliates) does not
exceed $100,000. This limitation shall be applied by taking Options into account in the order in which they were granted. 

8.    AWARD AGREEMENT  

        Each Award granted pursuant to the Plan shall be evidenced by an Award Agreement, to be executed by the Company and by the Grantee, in such form or forms as the
Board shall from time to time determine. Award Agreements granted from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the Plan. Each
Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be non-qualified stock options or Incentive Stock Options, and in the absence of such specification
such options shall be deemed non-qualified stock options. 

9.    OPTION PRICE  

        The Option Price of each Option shall be fixed by the Board and stated in the Award Agreement evidencing such Option. The Option Price shall be the aggregate Fair
Market Value on the Grant Date of the shares of Stock subject to the Option; PROVIDED, HOWEVER, that in the event that a Grantee would otherwise be ineligible to receive an Incentive Stock Option by
reason of the provisions of Sections 422(b)(6) and 424(d) of the Code (relating to ownership of more than ten percent of the Company's outstanding Stock), the Option Price of an Option
granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than the greater of the par value of a share of Stock or 110 percent of the Fair Market Value of a share of
Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock. 

6

 

10.    VESTING, TERM AND EXERCISE OF OPTIONS  

        10.1    VESTING
AND OPTION PERIOD. 

        Subject
to Sections 10.2 and 22.3 hereof, each Option granted under the Plan shall become exercisable at such times and under such conditions as shall be determined by the Board and
stated in the Award Agreement. For purposes of this Section 10.1, fractional numbers of shares of Stock subject to an Option shall be rounded down to the next nearest whole number. The period
during which any Option shall be exercisable shall constitute the "Option Period" with respect to such Option. 

        10.2    TERM.

        Each
Option granted under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten years from the date such Option is
granted, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Board and stated in the Award Agreement relating to such Option (the
"TERMINATION DATE"); PROVIDED, HOWEVER, that in the event that the Grantee would otherwise be ineligible to receive an Incentive Stock Option by reason of the provisions of Sections
422(b)(6) and 424(d) of the Code (relating to ownership of more than ten percent of the outstanding Stock), an Option granted to such Grantee that is intended to be an Incentive Stock
Option shall not be exercisable after the expiration of five years from its Grant Date. 

        10.3    ACCELERATION.

        Any
limitation on the exercise of an Option contained in any Award Agreement may be rescinded, modified or waived by the Board, in its sole discretion, at any time and from time to time
after the Grant Date of such Option, so as to accelerate the time at which the Option may be exercised. Notwithstanding any other provision of the Plan, no Option shall be exercisable in whole or in
part prior to the date the Plan is approved by the shareholders of the Company as provided in Section 5.1 hereof. 

        10.4    TERMINATION
OF EMPLOYMENT OR OTHER RELATIONSHIP. 

        Upon
the termination of a Grantee's employment or other relationship with the Company or any affiliate other than by reason of death or "permanent and total disability" (within the
meaning of Section 22(e)(3) of the Code), any Option or portion thereof held by such Grantee that has not vested in accordance with the provisions of Section 10.1 hereof shall
terminate immediately, and any Option or portion thereof that has vested in accordance with the provisions of Section 10.1 hereof but has not been exercised shall terminate at the close of
business on the 90th day following the Grantee's termination of employment or other relationship (or, if such 90th day is a Saturday, Sunday or holiday, at the close of business on the next preceding
day that is not a Saturday, Sunday or holiday), unless the Board, in its discretion, extends the period during which the Option may be exercised (which period may not be extended beyond the original
term of the Option). Upon termination of an Option or portion thereof, the Grantee shall have no further right to purchase shares of Stock pursuant to such Option or portion thereof. Whether a
termination of employment or other relationship shall have occurred for purposes of the Plan shall be determined by the Board, which determination shall be final
and conclusive. For purposes of the Plan, a termination of employment, service or other relationship shall not be deemed to occur if the Grantee is immediately thereafter a director of the Company or
an affiliate. 

        10.5    RIGHTS
IN THE EVENT OF DEATH. 

        Unless
otherwise provided by the Board in the applicable Award Agreement, if a Grantee dies while employed by or providing services to the Company, all Options granted to such Grantee
that have not vested as of the date of such termination shall terminate and the executors or Boards or legatees or distributees of such Grantee's estate shall have the right, at any time within one
year after 

7

 

the date of such Grantee's death (or such longer period as the Board, in its discretion, may determine prior to the expiration of such one-year period) and prior to termination of the Option pursuant
to Section 10.2 above, to exercise any Option that was vested as of the date of such Grantee's death. 

        10.6    RIGHTS
IN THE EVENT OF DISABILITY. 

        Unless
otherwise stated in the applicable Award Agreement, if a Grantee terminates employment or other relationship with the Company by reason of the "permanent and total disability"
(within the meaning of Section 22(e)(3) of the Code) of such Grantee, such Grantee's Options shall terminate to the extent the Options are not vested, and shall be exercisable to the
extent that they were vested as of the date of the Optionee's termination of employment or other relationship, for a period of one year after such termination of employment or other relationship (or
such longer period as the Board, in its discretion, may determine prior to the expiration of such one-year period), subject to earlier termination of the Option as provided in Section 10.2
above. Whether a termination of employment or service is to be considered by reason of "permanent and total disability" for purposes of the Plan shall be determined by the Board, which determination
shall be final and conclusive. 

        10.7    LIMITATIONS
ON EXERCISE OF OPTION. 

        Notwithstanding
any other provision of the Plan, in no event may any Option be exercised, in whole or in part, prior to the date the Plan is approved by the shareholders of the Company
as provided herein, or after ten years following the date upon which the Option is granted, or after the occurrence of an event referred to in Section 22 hereof which results in termination of
the Option. 

        10.8    METHOD
OF EXERCISE. 

        An
Option that is exercisable may be exercised by the Grantee's delivery to the Company of written notice of exercise on any business day, at the Company's principal office, addressed to
the attention of the Board. Such notice shall specify the number of shares of Stock with respect to which the Option is being exercised and shall be accompanied by payment in full of the Option Price
of the shares for which the Option is being exercised. The minimum number of shares of Stock with respect to which an Option may be exercised, in whole or in part, at any time shall be the lesser of
(i) 100 shares or such lesser number set forth in the applicable Award Agreement and (ii) the maximum number of shares available for purchase under the Option at the time of exercise.
Payment of the Option Price for the shares purchased pursuant to the exercise of an Option shall be made (i) in cash or in cash equivalents acceptable to the Company; (ii) through the
tender to the Company of shares of Stock, which shares, if acquired from the Company, shall have been held for at least six months and which shall be valued, for purposes of determining the extent to
which the Option Price has been paid thereby, at their Fair Market Value on the date of exercise; or (iii) by a combination of the methods described in (i) and (ii). Unless the Board
provides otherwise in the Award Agreement, payment in full of the Option Price need not accompany the written notice of exercise provided that the notice of exercise directs that the certificate or
certificates for the shares of Stock for which the Option is exercised be delivered to a licensed broker acceptable to the Company as the agent for the individual exercising the Option and, at the
time such certificate or certificates are delivered, the broker tenders to the Company cash (or cash equivalents acceptable to the Company) equal to the Option Price for the shares of Stock purchased
pursuant to the exercise of the Option plus the amount (if any) of federal and/or other taxes which the Company may in its judgment, be required to withhold with respect to the exercise of the Option.
An attempt to exercise any Option granted hereunder other than as set forth above shall be invalid and of no force and effect. Unless otherwise stated in the applicable Award Agreement, an individual
holding or exercising an Option shall have none of the rights of a shareholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject shares of Stock
or to direct the voting of the subject shares of Stock ) until the shares of Stock covered thereby are fully paid and issued to him. Except as provided in Section 22 hereof, no 

8

   
adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date of such issuance. 

        10.9    DELIVERY
OF STOCK CERTIFICATES. 

        Promptly
after the exercise of an Option by a Grantee and the payment in full of the Option Price, such Grantee shall be entitled to the issuance of a stock certificate or certificates
evidencing his or her ownership of the shares of Stock subject to the Option. 

11.    STOCK APPRECIATION RIGHTS  

        The Board each is authorized to grant SARs to Grantees on the following terms and conditions: 

        11.1    RIGHT
TO PAYMENT. 

        A
SAR shall confer on the Grantee to whom it is granted a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of
exercise over (B) the grant price of the SAR as determined by the Board. The grant price of an SAR shall not be less than the Fair Market Value of a share of Stock on the date of grant except
as provided in Section 18.1. 

        11.2    OTHER
TERMS. 

        The
Board shall determine at the date of grant or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on
achievement of performance goals and/or future service requirements), the time or times at which SARs shall cease to be or become exercisable following termination of employment or upon other
conditions, the method of exercise, method of settlement, form of consideration payable in settlement, method by or forms in which Stock will be delivered or deemed to be delivered to Grantees,
whether or not a SAR shall be in tandem or in combination with any other Award, and any other terms and conditions of any SAR. SARs may be either freestanding or in tandem with other Awards. 

12.    TRANSFERABILITY OF OPTIONS  

        12.1    TRANSFERABILITY
OF OPTIONS. 

        Except
as provided in Section 12.2, during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or incompetency, the Grantee's guardian or legal
representative) may exercise an Option. Except as provided in Section 12.2, no Option shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of
descent and distribution. 

        12.2    FAMILY
TRANSFERS. 

        If
authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of an Option which is not an Incentive Stock Option to any Family Member. For the
purpose of this Section 12.2, a "not for value" transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property
rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity.
Following a transfer under this Section 12.2, any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. Subsequent
transfers of transferred Options are prohibited except to Family Members of the original Grantee in accordance with this Section 12.2 or by will or the laws of descent and distribution. The
events of termination of employment or other relationship of Section 10.4 hereof shall continue to be applied with respect to the original Grantee, following which the Option shall be
exercisable by the transferee only to the extent, and for the periods specified in Sections 10.4, 10.5, or 10.6. 

9

 

13.    RESTRICTED STOCK  

        13.1    GRANT
OF RESTRICTED STOCK OR RESTRICTED STOCK UNITS. 

        The
Board may from time to time grant Restricted Stock or Restricted Stock Units to persons eligible to receive Awards under Section 6 hereof, subject to such restrictions,
conditions and other terms as the Board may determine. 

        13.2    RESTRICTIONS.

        At
the time a grant of Restricted Stock or Restricted Stock Units is made, the Board shall establish a period of time (the "RESTRICTED PERIOD") applicable to such Restricted Stock or
Restricted Stock Units. Each Award of Restricted Stock or Restricted Stock Units may be subject to a different Restricted Period. The Board may, in its sole discretion, at the time a grant of
Restricted Stock or Restricted Stock Units is made, prescribe restrictions in addition to or other than the expiration of the Restricted Period, including the satisfaction of corporate or individual
performance objectives, which may be applicable to all or any portion of the Restricted Stock or Restricted Stock Units in accordance with Section 18.4.1 and 18.4.2. Neither Restricted Stock
nor Restricted Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other restrictions
prescribed by the Board with respect to such Restricted Stock or Restricted Stock Units. 

        13.3    RESTRICTED
STOCK CERTIFICATES. 

        The
Company shall issue, in the name of each Grantee to whom Restricted Stock has been granted, stock certificates representing the total number of shares of Restricted Stock granted to
the Grantee, as soon as reasonably practicable after the Grant Date. The Board may provide in an Award Agreement that either (i) the Secretary of the Company shall hold such certificates for
the Grantee's benefit until such time as the Restricted Stock is forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be delivered to the Grantee, PROVIDED,
HOWEVER, that such certificates shall bear a legend or legends that complies with the applicable securities laws and regulations and makes appropriate reference to the restrictions imposed under the
Plan and the Award Agreement. 

        13.4    RIGHTS
OF HOLDERS OF RESTRICTED STOCK. 

        Unless
the Board otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to vote such Stock and the right to receive any dividends declared or paid
with respect to such Stock. The Board may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and
restrictions applicable to such Restricted Stock. All distributions, if any, received by a Grantee with respect to Restricted Stock as a result of any stock split, stock dividend, combination of
shares, or other similar transaction shall be subject to the restrictions applicable to the original Grant. 

        13.5    RIGHTS
OF HOLDERS OF RESTRICTED STOCK UNITS. 

        Unless
the Board otherwise provides in an Award Agreement, holders of Restricted Stock Units shall have no rights as stockholders of the Company. The Board may provide in an Award
Agreement evidencing a grant of Restricted Stock Units that the holder of such Restricted Stock Units shall be entitled to receive, upon the Company's payment of a cash dividend on its outstanding
Stock, a cash payment for each Restricted Stock Unit held equal to the per-share dividend paid on the Stock. Such Award Agreement may also provide that such cash payment will be deemed reinvested in
additional Restricted Stock Units at a price per unit equal to the Fair Market Value of a share of Stock on the date that such dividend is paid. 

10

 

        13.6    TERMINATION
OF EMPLOYMENT OR OTHER RELATIONSHIP. 

        Upon
the termination of a Grantee's employment or other relationship with the Company other than by reason of death or "permanent and total disability" (within the meaning of
Section 22(e)(3) of the Code), any Restricted Stock or Restricted Stock Units held by such Grantee that has not vested, or with respect to which all applicable restrictions and
conditions have not lapsed, shall immediately be deemed forfeited, unless the Board, in its discretion, determines otherwise. Upon forfeiture of Restricted Stock or Restricted Stock Units, the Grantee
shall have no further rights with respect to such Grant, including but not limited to any right to vote Restricted Stock or any right to receive dividends with respect to shares of Restricted Stock or
Restricted Stock Units. Whether a leave of absence or leave on military or government service shall constitute a termination of employment or other relationship for purposes of the Plan shall be
determined by the Board, which determination shall be final and conclusive. For purposes of the Plan, a termination of employment, service or other relationship shall not be deemed to occur if the
Grantee is immediately thereafter a director of the Company. 

        13.7    RIGHTS
IN THE EVENT OF DEATH. 

        Unless
otherwise provided in the Award Agreement, if a Grantee dies while employed by the Company, all Restricted Stock or Restricted Stock Units granted to such Grantee shall fully vest
on the date of death, and the shares of Stock represented thereby shall be deliverable in accordance with the terms of the Plan to the executors, administrators, legatees or distributees of the
Grantee's estate. 

        13.8    RIGHTS
IN THE EVENT OF DISABILITY. 

        Unless
otherwise provided in the Award Agreement, if a Grantee terminates employment or other relationship with the Company by reason of the "permanent and total disability" (within the
meaning of Section 22(e)(3) of the Code) of such Grantee, such Grantee's Restricted Stock or Restricted Stock Units shall continue to vest in accordance with the applicable Award
Agreement for a period of one year after such termination of employment or service (or such longer period as the Board, in its discretion, may determine prior to the expiration of such one-year
period), subject to the earlier forfeiture of such Restricted Stock or Restricted Stock Units in accordance with the terms of the applicable Award Agreement. Whether a termination of employment or
service is to be considered by reason of "permanent and total disability" for purposes of the Plan shall be determined by the Board, which determination shall be final and conclusive. 

        13.9    DELIVERY
OF STOCK AND PAYMENT THEREFOR. 

        Upon
the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Board, the restrictions applicable to shares of Restricted
Stock or Restricted Stock Units shall lapse, and, unless otherwise provided in the Award Agreement, upon payment by the Grantee to the Company, in cash or by check, of the aggregate par value of the
shares of Stock represented by such Restricted Stock or Restricted Stock Units (or such other higher purchase price determined by the Board), a stock certificate for such shares shall be delivered,
free of all such restrictions, to the Grantee or the Grantee's beneficiary or estate, as the case may be. 

14.    DEFERRED STOCK AWARDS  

        14.1    NATURE
OF DEFERRED STOCK AWARDS. 

        A
Deferred Stock Award is an Award of phantom stock units to a Grantee, subject to restrictions and conditions as the Board may determine at the time of grant. Conditions may be based on
continuing employment (or other business relationship) and/or achievement of pre-established performance goals and objectives. The grant of a Deferred Stock Award is contingent on the Grantee
executing the Deferred Stock Award Agreement. The terms and conditions of each such agreement 

11

 

shall be determined by the Board, and such terms and conditions may differ among individual Awards and Grantees. At the end of the deferral period, the Deferred Stock Award, to the extent vested,
shall be paid to the Grantee in the form of shares of Stock. 

        14.2    ELECTION
TO RECEIVE DEFERRED STOCK AWARDS IN LIEU OF COMPENSATION. 

        The
Board may, in its sole discretion, permit a Grantee to elect to receive a portion of the cash compensation or Restricted Stock Award otherwise due to such Grantee in the form of a
Deferred Stock Award. Any such election shall be made in writing and shall be delivered to the Company no later than the date specified by the Board and in accordance with rules and procedures
established by the Board. The Board shall have the sole right to determine whether and under what circumstances to permit such elections and to impose such limitations and other terms and conditions
thereon as the Board deems appropriate. 

        14.3    RIGHTS
AS A STOCKHOLDER. 

        During
the deferral period, a Grantee shall have no rights as a Stockholder; PROVIDED, HOWEVER, that the Grantee may be credited with Dividend Equivalent Rights with respect to the
phantom Stock units underlying his Deferred Stock Award, subject to such terms and conditions as the Board may determine. 

        14.4    RESTRICTIONS. 

        A
Deferred Stock Award may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of during the deferral period. 

        14.5    TERMINATION.

        Except
as may otherwise be provided by the Board either in the Award Agreement or, in writing after the Award Agreement is issued, a Grantee's right in all Deferred Stock Awards that
have not vested shall automatically terminate upon the Grantee's termination of employment or other relationship with the Company for any reason. 

15.    UNRESTRICTED STOCK AWARDS  

        15.1    GRANT
OR SALE OF UNRESTRICTED STOCK. 

        The
Board may, in its sole discretion, grant (or sell at par value or such other higher purchase price determined by the Board) an Unrestricted Stock Award to any Grantee pursuant to
which such Grantee may receive shares of Stock free of any restrictions ("UNRESTRICTED STOCK") under the Plan. Unrestricted Stock Awards may be granted or sold as described in the preceding sentence
in respect of past services or other valid consideration, or in lieu of any cash compensation due to such Grantee. 

16.    PERFORMANCE STOCK AWARDS  

        16.1    NATURE
OF PERFORMANCE STOCK AWARDS. 

        A
Performance Stock Award is an Award entitling the recipient to acquire shares of Stock upon the attainment of specified performance goals. The Board may make Performance Stock Awards
independent of or in connection with the granting of any other Award under the Plan. The Board in its sole discretion shall determine whether and to whom Performance Stock Awards shall be made, the
performance goals applicable under each such Award, the periods during which performance is to be measured, and all other limitations and conditions applicable to the awarded Performance Stock;
PROVIDED, HOWEVER, that the Board may rely on the performance goals and other standards 

12

 

applicable to other performance unit plans of the Company in setting the standards for Performance Stock Awards under the Plan. 

        16.2    RIGHTS
AS A STOCKHOLDER. 

        A
Grantee receiving a Performance Stock Award shall have the rights of a Stockholder only as to shares actually received by the Grantee under the Plan and not with respect to shares
subject to the Award but not actually received by the Grantee. A Grantee shall be entitled to receive a Stock certificate evidencing the acquisition of Stock under a Performance Stock Award only upon
satisfaction of all conditions specified in the written instrument evidencing the Performance Stock Award (or in a performance plan adopted by the Board). 

        16.3    TERMINATION. 

        Except
as may otherwise be provided by the Board either in the Award Agreement in writing after the Award Agreement is issued, a Grantee's rights in all Performance Stock Awards shall
automatically terminate upon the Grantee's termination of employment or other relationship with the Company and its affiliates for any reason. 

        16.4    ACCELERATION,
WAIVER, ETC. 

        At
any time prior to the Grantee's termination of employment (or other business relationship) by the Company and its affiliates, the Board may in its sole discretion accelerate, waive or
amend any or all of the goals, restrictions or conditions imposed under any Performance Stock Award. 

17.    DIVIDEND EQUIVALENT RIGHTS  

        17.1    DIVIDEND
EQUIVALENT RIGHTS. 

        A
Dividend Equivalent Right is an Award entitling the recipient to receive credits based on cash distributions that would have been paid on the shares of Stock specified in the Dividend
Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the recipient. A Dividend Equivalent Right may be granted hereunder to any Grantee as a component of
another Award or as a freestanding award. The terms and conditions of Dividend Equivalent Rights shall be specified in the grant. Dividend Equivalents credited to the holder of a Dividend Equivalent
Right may be paid currently or may be deemed to be reinvested in additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on
the date of reinvestment. Dividend Equivalent Rights may be settled in cash or Stock or a combination thereof, in a single installment or installments, all determined in the sole discretion of the
Board. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of
restrictions on, such other award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other award. A Dividend Equivalent Right granted
as a component of another Award may also contain terms and conditions different from such other award. 

        17.2    INTEREST
EQUIVALENTS. 

        Any
Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide in the grant for interest equivalents to be credited with respect to such cash
payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions as may be specified by the grant. 

        17.3    TERMINATION.

        Except
as may otherwise be provided by the Board either in the Award Agreement or in writing after the Award Agreement is issued, a Grantee's rights in all Dividend Equivalent Rights or
interest 

13

 

equivalents shall automatically terminate upon the Grantee's termination of employment or other relationship with the Company and its affiliates for any reason. 

18.    CERTAIN PROVISIONS APPLICABLE TO AWARDS  

        18.1    STAND-ALONE,
ADDITIONAL, TANDEM, AND SUBSTITUTE AWARDS. 

        Awards
granted under the Plan may, in the discretion of the Board, be granted either alone or in addition to, in tandem with, or in substitution or exchange for, any other Award or any
award granted under another plan of the Company, any affiliate, or any business entity to be acquired by the Company or a affiliate, or any other right of a Grantee to receive payment from the Company
or any affiliate. Such additional, tandem, and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, the Board shall require
the surrender of such other Award in consideration for the grant of the new Award. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash amounts payable under
other plans of the Company or any affiliate, in which the value of Stock subject to the Award is equivalent in value to the cash compensation (for example, Deferred Stock or Restricted Stock), or in
which the exercise price, grant price or purchase price of the Award in the nature of a right that may be exercised is equal to the Fair Market Value of the underlying Stock minus the value of the
cash compensation surrendered (for example, Options granted with an exercise price "discounted" by the amount of the cash compensation surrendered). 

        18.2    TERM
OF AWARDS. 

        The
term of each Award shall be for such period as may be determined by the Board; provided that in no event shall the term of any Option or SAR exceed a period of ten years (or such
shorter term as may be required in respect of an ISO under Section 422 of the Code). 

        18.3    FORM
AND TIMING OF PAYMENT UNDER AWARDS; DEFERRALS. 

        Subject
to the terms of the Plan and any applicable Award Agreement, payments to be made by the Company or an affiliate upon the exercise of an Option or other Award or settlement of an
Award may be made in such forms as the Board shall determine, including, without limitation, cash, Stock, other Awards or other property, and may be made in a single payment or transfer, in
installments, or on a deferred basis. The settlement of any Award may be accelerated, and cash paid in lieu of Stock in connection with such settlement, in the discretion of the Board or upon
occurrence of one or more specified events. Installment or deferred payments may be required by the Board or permitted at the election of the Grantee on terms and conditions established by the Board.
Payments may include, without limitation, provisions for the payment or crediting of a reasonable interest rate on installment or deferred payments or the grant or crediting of Dividend Equivalents or
other amounts in respect of installment or deferred payments denominated in Stock. 

        18.4    PERFORMANCE
AND ANNUAL INCENTIVE AWARDS. 

        18.4.1    PERFORMANCE
CONDITIONS. 

        The
right of a Grantee to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Board.
The Board may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions, and may exercise its discretion to reduce the amounts
payable under any Award subject to performance conditions, except as limited under Sections 18.4.2 and 18.4.3 hereof in the case of a Performance Award or Annual Incentive Award intended to qualify
under Code Section 162(m). If and to the extent required under Code Section 162(m), any power or authority relating to a Performance Award or Annual Incentive Award intended to qualify
under Code Section 162(m), shall be exercised by the Committee and not the Board. 

14

 

        18.4.2    PERFORMANCE
AWARDS GRANTED TO DESIGNATED COVERED EMPLOYEES. 

        If
and to the extent that the Committee determines that a Performance Award to be granted to a Grantee who is designated by the Committee as likely to be a Covered Employee should
qualify as
"performance-based compensation" for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Performance Award shall be contingent upon achievement of preestablished
performance goals and other terms set forth in this Section 18.4.2. 

        (a)  PERFORMANCE
GOALS GENERALLY. The performance goals for such Performance Awards shall consist of one or more business criteria and a targeted level or levels of
performance with respect to each of such criteria, as specified by the Committee consistent with this Section 18.4.2. Performance goals shall be objective and shall otherwise meet the
requirements of Code Section 162(m) and regulations thereunder including the requirement that the level or levels of performance targeted by the Committee result in the achievement of
performance goals being "substantially uncertain." The Committee may determine that such Performance Awards shall be granted, exercised and/or settled upon achievement of any one performance goal or
that two or more of the performance goals must be achieved as a condition to grant, exercise and/or settlement of such Performance Awards. Performance goals may differ for Performance Awards granted
to any one Grantee or to different Grantees. 

        (b)  BUSINESS
CRITERIA. One or more of the following business criteria for the Company, on a consolidated basis, and/or specified subsidiaries or business units of the
Company (except with respect to the total stockholder return and earnings per share criteria), shall be used exclusively by the Committee in establishing performance goals for such Performance Awards:
(1) total stockholder return; (2) such total stockholder return as compared to total return (on a comparable basis) of a publicly available index such as, but not limited to, the
Standard & Poor's 500 Stock Index; (3) net income; (4) pretax earnings; (5) earnings before interest expense, taxes, depreciation and amortization; (6) pretax
operating earnings after interest expense and before bonuses, service fees, and extraordinary or special items; (7) operating margin; (8) earnings per share; (9) return on equity;
(10) return on capital; (11) return on investment; (12) operating earnings; (13) working capital; and (14) ratio of debt to stockholders' equity. One or more of the foregoing business criteria
shall also be exclusively used in establishing performance goals for Annual Incentive Awards granted to a Covered Employee under Section 18.4.3 hereof that are intended to qualify as
"performance-based compensation" under Code Section 162(m). 

        (c)  PERFORMANCE
PERIOD; TIMING FOR ESTABLISHING PERFORMANCE GOALS. Achievement of performance goals in respect of such Performance Awards shall be measured over a
performance period of up to ten years, as specified by the Committee. Performance goals shall be established not later than 90 days after the beginning of any performance period applicable to such
Performance Awards, or at such other date as may be required or permitted for "performance-based compensation" under Code Section 162(m). 

        (d)  PERFORMANCE
AWARD POOL. The Committee may establish a Performance Award pool, which shall be an unfunded pool, for purposes of measuring Company performance in
connection with Performance Awards. The amount of such Performance Award pool shall be based upon the achievement of a performance goal or goals based on one or more of the business criteria set forth
in Section 18.4.2(ii) hereof during the given performance period, as specified by the Committee in accordance with Section 18.4.2(iii) hereof. The Committee may specify the
amount of the Performance Award pool as a percentage of any of such business criteria, a percentage thereof in excess of a threshold amount, or as another amount which need not bear a strictly
mathematical relationship to such business criteria. 

15

 

        (e)  SETTLEMENT
OF PERFORMANCE AWARDS; OTHER TERMS. Settlement of such Performance Awards shall be in cash, Stock, other Awards or other property, in the discretion of the
Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Performance Awards. The Committee shall specify the circumstances in
which such Performance Awards shall be paid or forfeited in the event of termination of employment by the Grantee prior to the end of a performance period or settlement of Performance Awards. 

        18.4.3    ANNUAL
INCENTIVE AWARDS GRANTED TO DESIGNATED COVERED EMPLOYEES. 

        If
and to the extent that the Committee determines that an Annual Incentive Award to be granted to a Grantee who is designated by the Committee as likely to be a Covered Employee should
qualify as "performance-based compensation" for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Annual Incentive Award shall be contingent upon achievement of
preestablished performance goals and other terms set forth in this Section 18.4.3. 

        (a)  ANNUAL
INCENTIVE AWARD POOL. The Committee may establish an Annual Incentive Award pool, which shall be an unfunded pool, for purposes of measuring Company performance
in connection with Annual Incentive Awards. The amount of such Annual Incentive Award pool shall be based upon the achievement of a performance goal or goals based on one or more of the business
criteria set forth in 18.4.2(ii) hereof during the given performance period, as specified by the Committee in accordance with 18.4.2(iii) hereof. The Committee may specify the amount of
the Annual Incentive Award pool as a percentage of any such business criteria, a percentage thereof in excess of a threshold amount, or as another amount which need not bear a strictly mathematical
relationship to such business criteria. 

        (b)  POTENTIAL
ANNUAL INCENTIVE AWARDS. Not later than the end of the 90th day of each fiscal year, or at such other date as may be required or permitted in the case of
Awards intended to be "performance-based compensation" under Code Section 162(m), the Committee shall determine the Eligible Persons who will potentially receive Annual Incentive Awards, and
the amounts potentially payable thereunder, for that fiscal year, either out of an Annual Incentive Award pool established by such date under Section 18.4.3(i) hereof or as individual
Annual Incentive Awards. In the case of individual Annual Incentive Awards intended to qualify under Code Section 162(m), the amount potentially payable shall be based upon the achievement of a
performance goal or goals based on one or more of the business criteria set forth in Section 18.4.2(ii) hereof in the given performance year, as specified by the Committee; in other
cases, such amount shall be based on such criteria as shall be established by the Committee. In all cases, the maximum Annual Incentive Award of any Grantee shall be subject to the limitation set
forth in Section 7.1 hereof. 

        (c)  PAYOUT
OF ANNUAL INCENTIVE AWARDS. After the end of each fiscal year, the Committee shall determine the amount, if any, of (A) the Annual Incentive Award pool,
and the maximum amount of potential Annual Incentive Award payable to each Grantee in the Annual Incentive Award pool, or (B) the amount of potential Annual Incentive Award otherwise payable to
each Grantee. The Committee may, in its discretion, determine that the amount payable to any Grantee as an Annual Incentive Award shall be reduced from the amount of his or her potential Annual
Incentive Award, including a determination to make no Award whatsoever. The Committee shall specify the circumstances in which an Annual Incentive Award shall be paid or forfeited in the event of
termination of employment by the Grantee prior to the end of a fiscal year or settlement of such Annual Incentive Award. 

16

 

        18.4.4    WRITTEN
DETERMINATIONS. 

        All
determinations by the Committee as to the establishment of performance goals, the amount of any Performance Award pool or potential individual Performance Awards and as to the
achievement of performance goals relating to Performance Awards under Section 18.4.2, and the amount of any Annual Incentive Award pool or potential individual Annual Incentive Awards and the
amount of final Annual Incentive Awards under Section 18.4.3, shall be made in writing in the case of any Award intended to qualify under Code Section 162(m). To the extent required to
comply with Code Section 162(m), the Committee may delegate any responsibility relating to such Performance Awards or Annual Incentive Awards. 

        18.4.5    STATUS
OF SECTION 18.4.3 AND SECTION 18.4.2 AWARDS UNDER CODE SECTION 162(m). 

        It
is the intent of the Company that Performance Awards and Annual Incentive Awards under Section 18.4.2 and Section 18.4.3 hereof granted to persons who are designated by
the Committee as likely to be Covered Employees within the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute "qualified
performance-based compensation" within the meaning of Code Section 162(m) and regulations thereunder. Accordingly, the terms of Section 18.4.2 and Section 18.4.3, including the
definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with Code Section 162(m) and regulations thereunder. The foregoing notwithstanding,
because the Committee cannot determine with certainty whether a given Grantee will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered Employee as
used herein shall mean only a person designated by the Committee, at the time of grant of Performance Awards or an Annual Incentive Award, as likely to be a Covered Employee with respect to that
fiscal year. If any provision of the Plan or any agreement relating to such Performance Awards or Annual Incentive Awards does not comply or is inconsistent with the requirements of Code
Section 162(m) or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 

19.    PARACHUTE LIMITATIONS  

        Notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by a Grantee with the
Company or any affiliate, except an agreement, contract, or understanding hereafter entered into that expressly modifies or excludes application of this paragraph (an "OTHER AGREEMENT"), and
notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which
the Grantee is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Grantee (a "BENEFIT ARRANGEMENT"), if the Grantee is a "disqualified
individual," as defined in Section 280G(c) of the Code, any Option, Restricted Stock or Restricted Stock Unit held by that Grantee and any right to receive any payment or other benefit
under this Plan shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits
to or for the Grantee under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Grantee under this Plan to be considered a "parachute payment"
within the meaning of Section 280G(b)(2) of the Code as then in effect (a "PARACHUTE PAYMENT") and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax
amounts received by the Grantee from the Company under this Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the
Grantee without causing any such payment or benefit to be considered a Parachute Payment. In the event that the receipt of any such right to exercise, vesting, payment, or benefit under this Plan, in
conjunction with all other rights, payments, or benefits to or for the Grantee under any Other Agreement or any Benefit Arrangement would cause the Grantee to be considered to 

17

 

have received a Parachute Payment under this Plan that would have the effect of decreasing the after-tax amount received by the Grantee as described in clause (ii) of the preceding sentence,
then the Grantee shall have the right, in the Grantee's sole discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements, and any Benefit Arrangements that
should be reduced or eliminated so as to avoid having the payment or benefit to the Grantee under this Plan be deemed to be a Parachute Payment. 

20.    REQUIREMENTS OF LAW  

        20.1    GENERAL.

        The
Company shall not be required to sell or issue any shares of Stock under any Award if the sale or issuance of such shares would constitute a violation by the Grantee, any other
individual exercising an Option, or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or
regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares
subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance or purchase of shares
hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual exercising an Option pursuant to such Award unless such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award.
Specifically, in connection with the Securities Act, upon the exercise of any Option or the delivery of any shares of Stock underlying an Award, unless a registration statement under such Act is in
effect with respect to the shares of Stock covered by such Award, the Company shall not be required to sell or issue such shares unless the Board has received evidence satisfactory to it that the
Grantee or any other individual exercising an Option may acquire such shares pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Board
shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be
obligated to take any affirmative action in order to cause the exercise of an Option or the issuance of shares of Stock pursuant to the Plan to comply with any law or regulation of any governmental
authority. As to any jurisdiction that expressly imposes the requirement that an Option shall not be exercisable until the shares of Stock covered by such Option are registered or are exempt from
registration, the exercise of such Option (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability
of such an exemption. 

        20.2    RULE
16b-3. 

        During
any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Awards pursuant to the Plan
and the exercise of Options granted hereunder will qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Board
does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Board, and shall not affect the validity of the
Plan. In the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify this Plan in any respect necessary to satisfy the requirements of, or to take
advantage of any features of, the revised exemption or its replacement. 

        20.3    LIMITATION
FOLLOWING A HARDSHIP DISTRIBUTION. 

        To
the extent required to comply with Treasury Regulation Section 1.401(k)-1(d)(2)(iv)(B)(4), or any amendment or successor thereto, a Grantee's "elective and employee
contributions" (within the meaning of such Treasury Regulation) under the Plan shall be suspended for a period of twelve months 

18

 

following such Grantee's receipt of a hardship distribution made in reliance on such Treasury Regulation from any plan containing a cash or deferred arrangement under Section 401(k) of the
Code maintained by the Company or a related party within the provisions of subsections (b), (c), (m) or (o) of Section 414 of the Code. 

21.    AMENDMENT AND TERMINATION OF THE PLAN  

        The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any shares of Stock as to which Awards have not been made; PROVIDED,
HOWEVER, that the Board shall not, without approval of the Company's shareholders, amend the Plan such that it does not comply with the Code. The Company may retain the right in an Award Agreement to
cause a forfeiture of the gain realized by a Grantee on account of the Grantee taking actions in "competition with the Company," as defined in the applicable Award Agreement. Furthermore, the Company
may annul an Award if the Grantee is an employee of the Company or an affiliate and is terminated "for cause" as defined in the applicable Award Agreement. Except as permitted under this
Section 21 or Section 22 hereof, no amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, alter or impair rights or obligations under any Award
theretofore awarded under the Plan. 

22.    EFFECT OF CHANGES IN CAPITALIZATION  

        22.1    CHANGES
IN STOCK. 

        If
the number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number or kind of shares or other securities
of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution payable in capital
stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares for which grants of
Options and other Awards may be made under the Plan shall be adjusted proportionately and accordingly by the Company. In addition, the number and kind of shares for which Awards are outstanding shall
be adjusted proportionately and accordingly so that the proportionate interest of the Grantee immediately following such event shall, to the extent practicable, be the same as immediately before such
event. Any such adjustment in outstanding Options shall not change the aggregate Option Price payable with respect to shares that are subject to the unexercised portion of an Option outstanding but
shall include a corresponding proportionate adjustment in the Option Price per share. The conversion of any convertible securities of the Company shall not be treated as an increase in shares effected
without receipt of consideration. 

        22.2    REORGANIZATION
IN WHICH THE COMPANY IS THE SURVIVING ENTITY AND IN WHICH NO CHANGE IN CONTROL OCCURS. 

        Subject
to Section 22.3 hereof, if the Company shall be the surviving entity in any reorganization, merger, or consolidation of the Company with one or more other entities in
which no Change in
Control Occurs, any Option theretofore granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number of shares of Stock subject to such Option would have
been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the Option Price per share so that the aggregate Option Price
thereafter shall be the same as the aggregate Option Price of the shares remaining subject to the Option immediately prior to such reorganization, merger, or consolidation. Subject to any contrary
language in an Award Agreement evidencing an Award, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result of the reorganization,
merger or consolidation. 

19

 

        22.3    REORGANIZATION,
SALE OF ASSETS OR SALE OF STOCK WHICH INVOLVES A CHANGE IN CONTROL. 

        (a)  Subject
to Section 22.3(b), upon the dissolution or liquidation of the Company or upon any transaction that results in a Change in Control, (i) all
outstanding shares subject to Awards shall be deemed to have vested, and all restrictions and conditions applicable to such shares subject to Awards shall be deemed to have lapsed, immediately prior
to the occurrence of such event, and (ii) all Options outstanding hereunder shall become immediately exercisable for a period of fifteen days immediately prior to the scheduled consummation of
the event. Any exercise of an Option during such fifteen-day period shall be conditioned upon the consummation of the event and shall be effective only immediately before the consummation of the
event. Upon consummation of any such event, the Plan and all outstanding but unexercised Options shall terminate. The Board shall send written notice of an event that will result in such a termination
to all individuals who hold Options not later than the time at which the Company gives notice thereof to its shareholders. 

        (b)  Section 22.3(a) shall
not apply to the extent provision is made in writing in connection with a transaction described in Section 22.3(a) for
the assumption of such Options theretofore granted, or for the substitution for such Options of new options covering the stock of a successor entity, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kinds of shares or units and exercise prices, in which event the Plan and Options theretofore granted shall continue in the manner and under the terms so
provided. 

        22.4    ADJUSTMENTS.

        Adjustments
under this Section 22 related to shares of Stock or securities of the Company shall be made by the Board, whose determination in that respect shall be final, binding
and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by
rounding downward to the nearest whole share. 

        22.5    NO
LIMITATIONS ON COMPANY. 

        The
making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of
its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets. 

23.    POOLING  

        In the event any provision of the Plan or the Award Agreement would prevent the use of pooling of interests accounting in a corporate transaction involving the
Company and such transaction is contingent upon pooling of interests accounting, then that provision shall be deemed amended or revoked to the extent required to preserve such pooling of interests.
The Company may require in an Award Agreement that a Grantee who receives an Award under the Plan shall, upon advice from the Company, take (or refrain from taking, as appropriate) all actions
necessary or desirable to ensure that pooling of interests accounting is available. 

24.    DISCLAIMER OF RIGHTS  

        No provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual the right to remain in the employ or service of the
Company or any affiliate, or to interfere in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual
at any time, or to terminate any employment or other relationship between any individual and the Company. In addition, 

20

 

notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, no Award granted under the Plan shall be affected by any change of duties or
position of the Grantee, so long as such Grantee continues to be a director, officer, consultant or employee of the Company or an affiliate. The obligation of the Company to pay any benefits pursuant
to this Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be
interpreted to require the Company to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the
Plan. No Grantee shall have any of the rights of a shareholder with respect to the shares of Stock subject to an Option except to the extent the certificates for such shares of Stock shall have been
issued upon the exercise of the Option. 

25.    NONEXCLUSIVITY OF THE PLAN  

        Neither the adoption of the Plan nor the submission of the Plan to the shareholders of the Company for approval shall be construed as creating any limitations
upon the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or
specifically to a particular individual or particular individuals) as the Board in its discretion determines desirable, including, without limitation, the granting of stock options otherwise than
under the Plan. 

26.    WITHHOLDING TAXES  

        The Company or an affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any Federal, state, or local
taxes of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to an Award or upon the issuance of any shares of Stock upon the exercise of
an Option or pursuant to an Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or the affiliate, as the case may be, any amount that the Company or the
affiliate may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Company or the affiliate, which may be withheld by the Company or the
affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company or the affiliate to withhold shares of
Stock otherwise issuable to the Grantee or (ii) by delivering to the Company or the affiliate shares of Stock already owned by the Grantee. The shares of Stock so delivered or withheld shall
have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company
or the affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to this Section 26 may satisfy his or her withholding
obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. 

27.    CAPTIONS  

        The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the Plan or
such Award Agreement. 

28.    OTHER PROVISIONS  

        Each Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Board, in its sole
discretion. 

21

   29.    CALIFORNIA PROVISIONS  

        Notwithstanding any other provision of the Plan to the contrary, for Stock Awards (as defined herein) granted prior to the Listing Date (as defined herein), and
as required by California Code Section 25102(o) for any other Awards granted prior to the Listing Date, the following provisions and additional definitions shall apply until the Listing Date. 

        29.1    DEFINITIONS. 

        (a)  "CONSULTANT"
means any person, including an advisor, (i) engaged by the Company or an affiliate of the Company to render consulting or advisory services and who
is compensated for such services or (ii) who is a member of the Board of Directors of an affiliate of the Company. However, the term "Consultant" shall not include either Directors who are not
compensated by the Company for their services as Directors or Directors who are merely paid a director's fee by the Company for their services as Directors. 

        (b)  "CONTINUOUS
SERVICE" means that the Participant's service with the Company or an affiliate of the Company, whether as an Employee, Director or Consultant, is not
interrupted or terminated. The Participant's Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the
Company or an affiliate of the Company as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or
termination of the Participant's Continuous Service. For example, a change in status from an Employee of the Company to a Consultant of an affiliate of the Company or a Director will not constitute an
interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party's sole discretion, may determine whether Continuous Service shall be considered interrupted
in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. 

        (c)  "DIRECTOR"
means a member of the Board of Directors of the Company. 

        (d)  "DISABILITY"
means the inability of a person, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of that person's position
with the Company or an affiliate of the Company because of the sickness or injury of the person. 

        (e)  "EMPLOYEE"
means any person employed by the Company or an affiliate of the Company. Mere service as a Director or payment of a director's fee by the Company or an
affiliate of the Company shall not be sufficient to constitute "employment" by the Company or an affiliate of the Company. 

        (f)    "LISTING
DATE" means the first date upon which any security of the Company is listed (or approved for listing) upon notice of issuance on any securities exchange or
designated (or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system if such securities exchange or interdealer quotation system has been
certified in accordance with the provisions of Section 25100(o) of the California Corporate Securities Law of 1968. 

        (g)  "NONSTATUTORY
STOCK OPTION" means an Option not intended to qualify as an Incentive Stock Option. 

        (h)  "OFFICER"
means any person designated by the Company as an officer. 

        (i)    "PARTICIPANT"
means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award. 

        (j)    "STOCK
AWARD" means any Option, stock bonus or right to acquire restricted stock granted under the Plan. 

22

 

        (k)  "TEN
PERCENT SHAREHOLDER" means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%)
of the total combined voting power of all classes of stock of the Company or of any of its affiliates. 

        29.2    FAIR
MARKET VALUE. 

        The
value of the Stock shall be determined in a manner consistent with Section 260.140.50 of Title 10 of the California Code of Regulations. 

        29.3    SHARE
RESERVE LIMITATION. 

        To
the extent required by Section 260.140.45 of Title 10 of the California Code of Regulations, the total number of shares of Stock issuable upon exercise of all outstanding
Options and the total number of shares of Stock provided for under any stock bonus or similar plan of the Company shall not exceed the applicable percentage as calculated in accordance with the
conditions and exclusions of Section 260.140.45 of Title 10 of the California Code of Regulations, based on the shares of Stock of the Company that are outstanding at the time the calculation
is made.(1) 

	(1)
	Section 260.140.45
generally provides that the total number of shares issuable upon exercise of all outstanding options (exclusive of certain rights) and the total number of
shares called for under any stock bonus or similar plan shall not exceed a number of shares which is equal to 30% of the then outstanding shares of the issuer (convertible preferred or convertible
senior common shares counted on an as if covered basis), exclusive of shares subject to promotional waivers under Section 260.141, unless a percentage higher than 30% is approved by at lease
two-thirds of the outstanding shares entitled to vote. 

        29.4    TEN
PERCENT SHAREHOLDERS. 

        (a)  A
Ten Percent Shareholder shall not be granted a Nonstatutory Stock Option unless the exercise price of such Option is at least (i) one hundred ten percent (110%)
of the Fair Market Value of the Stock at the date of grant or (ii) such lower percentage of the Fair Market Value of the Stock at the date of grant as is permitted by Section 260.140.41
of Title 10 of the California Code of Regulations at the time of the grant of the Option. 

        (b)  Except
as otherwise noted in subparagraph 29.4(a), to the extent an Award is covered by Section 260.140.42 of Title 10 of the California Code of Regulations, a
Ten Percent Shareholder shall not be granted a right to purchase Stock pursuant to such Award unless the purchase price for Stock issued pursuant to such Award is at least (i) one hundred
percent (100%) of the Fair Market Value of the Stock at the date of grant or (ii) such lower percentage of the Fair Market Value of the Stock at the date of grant as is permitted by
Section 260.140.42 of Title 10 of the California Code of Regulations at the time of the grant of the Award. 

        29.5    NONSTATUTORY
STOCK OPTIONS. 

        (a)  EXERCISE
PRICE. Subject to the provisions of subsection 29.4 regarding Ten Percent Shareholders, the exercise price of each Nonstatutory Stock Option shall be not less
than eighty-five percent (85%) of the Fair Market Value of the Stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, a Nonstatutory Stock Option may be granted
with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions
of Section 424(a) of the Code. 

        (b)  TRANSFERABILITY.
A Nonstatutory Stock Option shall not be transferable except by will or by the laws of descent and distribution and, to the extent provided in the
Option agreement, to such further extent as permitted by Section 260.140.41(d) of Title 10 of the 

23

 

California Code of Regulations at the time of the grant of the Option, and shall be exercisable during the lifetime of the Participant only by the Participant. 

        29.6    MINIMUM
VESTING PRIOR TO THE LISTING DATE. 

        To
the extent that the following restrictions on vesting are required by Section 260.140.41(f) of Title 10 of the California Code of Regulations at the time of the grant of
the Option, then: 

          (i)  Options
granted to an Employee who is not an Officer, Director or Consultant shall provide for vesting of the total number of shares of Stock at a rate of at least
twenty percent (20%) per year over five (5) years from the date the Option was granted, subject to reasonable conditions such as continued employment; and 

        (ii)  Options
granted to Officers, Directors or Consultants may be made fully exercisable, subject to reasonable conditions such as continued employment, at any time or
during any period established by the Company. 

        29.7    AWARDS
OTHER THAN OPTIONS. 

        (a)  PURCHASE
PRICE. Subject to the provisions of subsection 29.4 regarding Ten Percent Shareholders, and except as otherwise provided in subparagraph 29.5(a) herein,
to the extent an Award is covered by Sections 260.140.41 and/or 260.140.42 of Title 10 of the California Code of Regulations,
the purchase price for Stock issued pursuant to such Award shall not be less than eighty-five percent (85%) of the Stock's Fair Market Value on the date such Award is made or at the time the purchase
is consummated. 

        (b)  TRANSFERABILITY.
To the extent an Award is covered by Sections 260.140.41 and/or 260.140.42 of Title 10 of the California Code of Regulations, any right to acquire Stock
pursuant to such Award shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant. 

        29.8    INFORMATION
OBLIGATION. 

        To
the extent required by Section 260.140.46 of Title 10 of the California Code of Regulations, the Company shall deliver financial statements to Participants at least annually.
This subsection 10(g) shall not apply to key Employees whose duties in connection with the Company assure them access to equivalent information. 

        29.9    REPURCHASE
LIMITATION. 

        To
the extent required by Sections 260.140.41 and/or 260.140.42 of Title 10 of the California Code of Regulations, the terms of any repurchase option shall be specified in the Award and
may be either at Fair Market Value at the time of repurchase or at not less than the original purchase price. To the extent required by Sections 260.140.41 and/or 260.140.42 of Title 10 of the
California Code of Regulations at the time an Award is made, any repurchase option contained in an Award to a person who is not an Officer, Director or Consultant shall be upon the terms described
below: 

        (a)  FAIR
MARKET VALUE. If the repurchase option gives the Company the right to repurchase the shares of Stock upon termination of employment at not less than the Fair Market
Value of the shares of Stock to be purchased on the date of termination of Continuous Service, then (i) the right to repurchase shall be exercised for cash or cancellation of purchase money
indebtedness for the shares of Stock within ninety (90) days of termination of Continuous Service (or in the case of shares of Stock issued upon exercise of Awards after such date of termination,
within ninety (90) days after the date of the exercise) or such longer period as may be agreed to by the Company and the Participant (for example, for purposes of satisfying the requirements of
Section 1202(c)(3) of the Code regarding "qualified small business stock") and (ii) the right terminates when the shares of Stock become publicly traded. 

24

 

        (b)  ORIGINAL
PURCHASE PRICE. If the repurchase option gives the Company the right to repurchase the shares of Stock upon termination of Continuous Service at the original
purchase price, then (i) the right to repurchase at the original purchase price shall lapse at the rate of at least twenty percent (20%) of the shares of Stock per year over five
(5) years from the date the Award is granted (without respect to the date the Award was exercised or became exercisable) and (ii) the right to repurchase shall be exercised for cash or
cancellation of purchase money indebtedness for the shares of Stock within ninety (90) days of termination of Continuous Service (or in the case of shares of Stock issued upon exercise of Options
after such date of termination, within ninety (90) days after the date of the exercise) or such longer period as may be agreed to by the Company and the Participant (for example, for purposes of
satisfying the requirements of Section 1202(c)(3) of the Code regarding "qualified small business stock"). 

        29.10    VOTING
RIGHTS. 

        To
the extent required by Section 260.140.1 of Title 10 of the California Code of Regulations at the time a Stock Award is made, common shares and similar equity securities should
normally carry equal voting rights on all matters where such vote is permitted by applicable law. 

        29.11    PLAN
TERMINATION DATE. 

        Unless
sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the Plan is adopted by the Board or approved by the shareholders of the
Company, whichever is earlier. No Awards may be granted under the Plan after it is terminated. 

30.    NUMBER AND GENDER  

        With respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine gender, etc., as the
context requires. 

31.    SEVERABILITY  

        If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining
provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. 

32.    GOVERNING LAW  

        The validity and construction of this Plan and the instruments evidencing the Awards granted hereunder shall be governed by the laws of the State of California
(without giving effect to the choice of law provisions thereof). 

*
* * 

25

 

        The
Plan was duly adopted and approved by the Board of Directors of the Company as of the 4th day of August, 2000. 

	 	 	/s/  NICHOLAS J. COSTANZA      
 Nicholas J. Costanza
 Senior Vice President,
General Counsel

        The
Plan was duly adopted and approved by the stockholders of the Company as of the      day
of                        , 2000. 

	 	 	
 Nicholas J. Costanza
 Senior Vice President, General Counsel

26

 
 

AMENDMENT TO THE
  SUREBEAM CORPORATION
  2000 STOCK OPTION AND INCENTIVE PLAN    
  

        THIS AMENDMENT (the "Amendment") TO THE SUREBEAM CORPORATION 2000 STOCK OPTION AND INCENTIVE PLAN (the "Plan") was adopted by the Board of Directors (the "Board")
of SureBeam Corporation (the "Company") on February 21, 2002. 

        WHEREAS,
Section 21 of the Plan provides that the Board may at any time, and from time to time amend, suspend or terminate the Plan as to any shares of Stock as to which Awards
(as defined in the Plan) have not been made; PROVIDED, HOWEVER, that the Board shall not, without approval of the Company's shareholders, amend the Plan such that it does not comply with the Internal
Revenue Code of 1986, as now in effect or as hereafter amended; 

        WHEREAS,
as of December 31, 2001, options to purchase up to 821,174 shares of the Company's Class A Common Stock of the two million one hundred seventy thousand eight
hundred (2,170,800) shares of Class A Common Stock which may be issued under the Plan have been granted to eligible employees, officers, Directors and consultants pursuant to the terms of the
Plan; 

        WHEREAS,
in order to continue to attract and retain qualified employees, officers, Directors and consultants, the Board is of the opinion that it is necessary that the maximum number of
shares of Class A Common Stock that may be issued under the Plan be increased by three million (3,000,000) shares from two million one hundred seventy thousand eight hundred (2,170,800) shares
to five million one hundred seventy thousand eight hundred (5,170,800) shares (subject to adjustment as provided in the Plan); and, 

        NOW,
THEREFORE, the following amendments to the Plan are unanimously adopted by the Board, subject to the approval of the stockholders of the Company; 

        A.    Section 4
of the Plan is hereby amended by deleting the number "two million one hundred seventy thousand eight hundred (2,170,800) from the first full sentence
contained therein and substituting in lieu thereof the number "five million one hundred seventy thousand eight hundred (5,170,800) shares" 

        The
Plan is amended and modified only to the extent specifically amended or modified by this Amendment and none of the other terms, conditions or provisions of the Plan, is amended or
modified by this Amendment. 

        IN
WITNESS WHEREOF, the Company has caused this Amendment to be signed by its officer thereunto duly authorized to be effective as of the above-referenced date. 

	 	 	By:	 	/s/  DAVID A. RANE      
 David A. Rane
 Senior Vice President and Chief Financial
Officer

QuickLinks

Exhibit 4.4

SUREBEAM CORPORATION

2000 STOCK OPTION AND INCENTIVE PLAN

TABLE OF CONTENTS

SUREBEAM CORPORATION

2000 STOCK OPTION AND INCENTIVE PLAN

AMENDMENT TO THE SUREBEAM CORPORATION 2000 STOCK OPTION AND INCENTIVE PLAN

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]