Document:

Exhibit 10.1

 

Form of
Employee Restricted Stock Award Agreement

 

KEY ENERGY SERVICES, INC.

2007 EQUITY AND CASH
INCENTIVE PLAN

RESTRICTED STOCK AWARD
AGREEMENT

 

THIS RESTRICTED STOCK AWARD
AGREEMENT (“Agreement”) is made, effective as of the
       day of             ,
20     (the “Date of Grant”), between Key Energy
Services, Inc., a Maryland corporation (the “Company”), and
                          
(the “Participant”).

 

R E C I T A L S:

 

WHEREAS, the Company
has adopted the Key Energy Services, Inc. 2007 Equity and Cash Incentive
Plan (the “Plan”) pursuant to which awards of restricted shares of
common stock of the Company (“Common Stock”) may be granted; and

 

WHEREAS, the Committee
has determined that it is in the best interests of the Company and its stockholders
to grant the award of restricted shares of Common Stock provided for herein
(the “Restricted Stock Award”) to the Participant in recognition of the
Participant’s services to the Company, such grant to be subject to the terms
set forth herein.

 

NOW, THEREFORE, in
consideration for the services rendered by the Participant to the Company and
the mutual covenants hereinafter set forth, the parties hereto agree as
follows:

 

1.                                       Grant of Restricted
Stock Award.  Pursuant to Section 7.1 of the Plan, the
Company hereby issues to the Participant on the Date of Grant a Restricted
Stock Award consisting of, in the aggregate,
           shares of Common
Stock of the Company (hereinafter called the “Restricted Stock”) having
the rights and subject to the restrictions set out in this Agreement and the
Plan.  The Restricted Stock shall vest in
accordance with Section 4 hereof.

 

2.                                       Incorporation by
Reference.  The provisions of the Plan including, without
limitation, Section 14.5 thereof, are hereby incorporated herein by
reference.  Except as otherwise expressly
set forth herein, this Agreement shall be construed in accordance with the
provisions of the Plan and any capitalized terms not otherwise defined in this
Agreement shall have the definitions set forth in the Plan.  The Committee shall have the authority to
interpret and construe the Plan and this Agreement and to make any and all
determinations thereunder, and its decision shall be binding and conclusive
upon the Participant and his or her legal representative in respect of any
questions arising under the Plan or this Agreement.

 

3.                                       Restrictions. 
Except as provided in the Plan or this Agreement, the restrictions on
the Restricted Stock are that they will be forfeited by the Participant and all
of the Participant’s rights to such shares shall immediately terminate without
any payment or consideration by the Company, in the event of any sale,
assignment, transfer, hypothecation, pledge or other alienation of such
Restricted Stock made or attempted during the Restricted Period, whether
voluntary or involuntary, and if involuntary whether by process of law in any
civil or criminal suit, action or proceeding, whether in the nature of an
insolvency or bankruptcy proceeding or otherwise, without the written consent of
the Board.

 

 

4.                                       Vesting. 
Except as otherwise provided herein, the restrictions described in Section 3
above will lapse on the date or dates, as the case may be, set forth on Exhibit A
to this Agreement (each a “Vesting Date,” and the period beginning on
the Date of Grant and ending on each Vesting Date, the “Restricted Period”);
provided, that, the Participant is still in Continuous Service
with the Company on such Vesting Date.

 

(a)                                  Death,
Disability.  The
Restricted Period shall expire and all restrictions will lapse with respect to
100% of the Restricted Stock upon the termination of the Participant’s
Continuous Service due to death or Disability prior to the Vesting Date.

 

(b)                                 Change in
Control.  The Restricted Period shall
expire and all restrictions will lapse with respect to 100% of the Restricted
Stock upon the occurrence of a Change in Control prior to the Vesting Date; provided,
that, the Participant is in Continuous Service immediately prior to such
Change in Control.

 

(c)                                  Termination of
Continuous Service.  Except as
otherwise set forth in Section 4(a) or Section 4(b) above,
if the Participant’s Continuous Service terminates for any reason at any time
prior to the Vesting Date, the unvested Restricted Stock will be forfeited and
all of the Participant’s rights to such shares of Common Stock shall
immediately terminate.

 

5.                                       Taxes.

 

(a)                                  Tax Withholding.  The Company shall have the right to deduct
from any compensation paid to the Participant pursuant to the Plan the amount
of taxes required by law to be withheld therefrom, or to require the
Participant to pay the Company in cash such amount required to be
withheld.  Subject to the discretion of
the Committee, the Participant may satisfy any foreign, federal, state or local
tax withholding obligation relating to the acquisition of shares of Common
Stock under this Restricted Stock Award by any of the following means (in
addition to the Company’s right to withhold or to direct the withholding from
any compensation paid to the Participant by the Company or by an Affiliate) or
by a combination of such means:  (i) tendering
a cash payment; (ii) authorizing the Company to withhold vested Restricted
Stock otherwise deliverable to the Participant hereunder; provided, however,
that no Restricted Stock is withheld with a value exceeding the minimum amount
of tax required to be withheld by applicable law; or (iii) delivering to
the Company previously owned and unencumbered shares of Common Stock.

 

(b)                                 Section 83(b) of
the Code.  If the
Participant properly elects, within thirty (30) days of the Date of Grant, to
include in gross income for federal income tax purposes an amount equal to the
Fair Market Value of the Restricted Stock as of the Date of Grant pursuant to Section 83(b) of
the Code, to the extent required by law, the Participant shall pay to the
Company, or make other arrangements satisfactory to the Committee to pay to the
Company in the year of such grant, any federal, state or local taxes required
to be withheld with respect to such shares of Common Stock.  If the Participant fails to make such
payments, the Company or its Affiliates shall, to the extent permitted by law,
have the right to deduct from any payment of any kind otherwise due to 

 

2

 

the Participant any federal, state or local taxes of any kind required
by law to be withheld with respect to such Common Stock.

 

6.                                       Rights as Shareholders;
Dividends.  The Participant shall be the record owner of
the Restricted Stock unless and until such shares of Common Stock are cancelled
or rescinded pursuant to the terms of the Plan or sold or otherwise disposed
of, and as record owner shall be entitled to all rights of a stockholder of the
Company, including, without limitation, voting rights, if any, with respect to
the Restricted Stock and the right to receive dividends, if any, while the
Restricted Stock is held in custody.

 

7.                                       Certificates. 
Reasonably promptly following the Date of Grant, the Company shall cause
to be issued to the Participant a certificate in respect of the Restricted
Stock, which shall bear the following (or a similar) legend in addition to any
other legends that may be required under federal or state securities laws:

 

“THE TRANSFERABILITY OF THIS CERTIFICATE AND THE
SHARES OF COMMON STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND
CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE KEY ENERGY SERVICES, INC.
2007 EQUITY AND CASH INCENTIVE PLAN AND THE RESTRICTED STOCK AWARD AGREEMENT
DATED AS OF [                              ]
ENTERED INTO BETWEEN THE REGISTERED OWNER AND KEY ENERGY SERVICES, INC.  A COPY OF THE PLAN AND THE AWARD AGREEMENT
ARE ON FILE AT THE OFFICES OF KEY ENERGY SERVICES, INC.”

 

The Committee shall require
that the certificate evidencing such shares of Common Stock be delivered upon
issuance to the Company or such other depository as may be designated by the
Committee as a depository for safekeeping until the restrictions set forth
herein and in the Plan lapse.  At the expiration
of the restrictions, the Company shall deliver to the Participant (or his legal
representative, beneficiary or heir, if applicable) stock certificates for the
shares of Common Stock deposited with it free from legend except as otherwise
provided by the Plan or as otherwise required by applicable law.

 

8.                                       Compliance with Laws and
Regulations.  The issuance and transfer of the Restricted
Stock shall be subject to compliance by the Company and the Participant with
all applicable requirements of securities laws and with all applicable requirements
of any stock exchange on which the Company’s Common Stock may be listed at the
time of such issuance or transfer.

 

9.                                       Stop-Transfer
Instructions.  The Participant agrees that, to ensure
compliance with the restrictions imposed by this Agreement, the Company may
issue appropriate “stop-transfer” instructions to its transfer agent, if any,
and if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

 

10.                                 Refusal to Transfer. 
The Company will not be required to (i) register any transfer of
shares of Common Stock on its register of stockholders if such shares of Common
Stock have been sold or otherwise transferred in violation of any of the
provisions of this 

 

3

 

Agreement
or (ii) treat as owner of such shares of Common Stock, or to accord the
right to vote or pay dividends to any purchaser or other transferee to whom
such shares of Common Stock have been so transferred.

 

11.                                 No Right to Continuous
Service.  Nothing in this Agreement shall be deemed by
implication or otherwise to impose any limitation on any right of the Company
or any of its Affiliates to terminate the Participant’s Continuous Service at
any time.

 

12.                                 Notices. 
All notices, demands and other communications provided for or permitted
hereunder shall be made in writing and shall be by registered or certified
first class mail, return receipt requested, telecopier, courier service or
personal delivery:

 

if
to the Company:

 

Key Energy Services, Inc.

1301 McKinney Street, Suite 1800

Houston, Texas 77010

Facsimile: 713-651-4559

Attention: General Counsel

 

if
to the Participant, at the Participant’s last known address on file with the
Company.

 

All such notices, demands and other communications
shall be deemed to have been duly given when delivered by hand, if personally
delivered; when delivered by courier, if delivered by commercial courier
service; five (5) business days after being deposited in the mail, postage
prepaid, if mailed; and when receipt is mechanically acknowledged, if
telecopied.

 

13.                                 Bound by Plan. 
By signing this Agreement, the Participant acknowledges that he has
received a copy of the Plan and has had an opportunity to review the Plan and
agrees to be bound by all of the terms and provisions of the Plan.

 

14.                                 Beneficiary. 
The Participant may file with the Committee a written designation of a
beneficiary on such form as may be prescribed by the Committee and may, from
time to time, amend or revoke such designation. 
If no designated beneficiary survives the Participant, the executor or
administrator of the Participant’s estate shall be deemed to be the Participant’s
beneficiary.

 

15.                                 Successors. 
The terms of this Agreement shall be binding upon and inure to the
benefit of the Company, its successors and assigns, and on the Participant and
the beneficiaries, executors and administrators, heirs and successors of the
Participant.

 

16.                                 Amendment of Restricted
Stock Award.
Subject to Section 17 of this Agreement, the Committee at any time
and from time to time may amend the terms of this Restricted Stock Award; provided,
however, that the Participant’s rights under this Restricted Stock Award
shall not be impaired by any such amendment unless (i) the Company
requests the Participant’s consent and (ii) the Participant consents in
writing.

 

4

 

17.                                 Adjustment Upon Changes
in Capitalization.  Restricted Stock Awards may be adjusted as
provided in the Plan including, without limitation, Section 11 of the
Plan.  The Participant, by his execution
and entry into this Agreement, irrevocably and unconditionally consents and
agrees to any such adjustments as may be made at any time hereafter.

 

18.                                 Governing Law. This Agreement shall be construed and
interpreted in accordance with the laws of the State of Maryland without regard
to principles of conflicts of law thereof, or principles of conflicts of laws
of any other jurisdiction that could cause the application of the laws of any
jurisdiction other than the State of Maryland.

 

19.                                 Severability. 
Every provision of this Agreement is intended to be severable and any
illegal or invalid term shall not affect the validity or legality of the
remaining terms.

 

20.                                 Headings. 
The headings of the Sections hereof are provided for convenience only
and are not to serve as a basis for interpretation of construction, and shall
not constitute a part of this Agreement.

 

21.                                 Signature in
Counterparts.  This Agreement may be signed in counterparts,
each of which shall be deemed an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

 

[Signature Page Follows]

 

5

 

IN WITNESS WHEREOF, the parties
have executed this Agreement as of the
         day of
            ,
20    .

 

 

	
   

  	
  KEY ENERGY SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address:

  	
    1301 McKinney Street, Suite 1800

   Houston, Texas  77010

  
			

 

 

The undersigned hereby accepts the terms of this Agreement and the
Plan.

 

 

	
   

  	
   

  
	
   

  	
  [Participant]

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

6

 

EXHIBIT A

 

	
  RESTRICTED STOCK

  	
   

  	
  VESTING
  DATE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

7Exhibit 4.1

 

 

GLOBALSTAR, INC.

 

AND

 

U.S. BANK, NATIONAL ASSOCIATION

 

Trustee

 

 

INDENTURE

 

DATED AS OF April 15, 2008

 

 

SENIOR DEBT SECURITIES

 

 

 

GLOBALSTAR, INC.

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939, AS AMENDED, AND
INDENTURE, DATED AS OF April 15, 2008

 

	
  TRUST
  INDENTURE ACT SECTION

  	
   

  	
  INDENTURE SECTION

  
	
   

  	
   

  	
   

  
	
  Section 310(a)(1)

  	
   

  	
  6.9

  
	
  (a)(2)

  	
   

  	
  6.9

  
	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
  (a)(5)

  	
   

  	
  6.9

  
	
  (b)

  	
   

  	
  6.8

  
	
   

  	
   

  	
   

  
	
  Section 311

  	
   

  	
  6.13

  
	
   

  	
   

  	
   

  
	
  Section 312(a)

  	
   

  	
  7.1, 7.2 (a)

  
	
  (b)

  	
   

  	
  7.2 (b)

  
	
  (c)

  	
   

  	
  7.2 (c)

  
	
   

  	
   

  	
   

  
	
  Section 313(a)

  	
   

  	
  7.3

  
	
  (b)

  	
   

  	
  *

  
	
  (c)

  	
   

  	
  *

  
	
  (d)

  	
   

  	
  7.3

  
	
   

  	
   

  	
   

  
	
  Section 314(a)

  	
   

  	
  7.4

  
	
  (a)(4)

  	
   

  	
  10.5

  
	
  (b)

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
  1.3

  
	
  (c)(2)

  	
   

  	
  1.3

  
	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
  1.3

  
	
   

  	
   

  	
   

  
	
  Section 315(a)

  	
   

  	
  6.1 (a)

  
	
  (b)

  	
   

  	
  6.2

  
	
  (c)

  	
   

  	
  6.1 (b)

  
	
  (d)

  	
   

  	
  6.1 (c)

  
	
  (d)(1)

  	
   

  	
  6.1 (a)(1)

  
	
  (d)(2)

  	
   

  	
  6.1 (c)(2)

  
	
  (d)(3)

  	
   

  	
  6.1 (c)(3)

  
	
  (e)

  	
   

  	
  5.14

  
	
   

  	
   

  	
   

  
	
  Section 316(a)

  	
   

  	
  1.1, 1.2

  
	
  (a)(1)(A)

  	
   

  	
  5.2, 5.12

  
	
  (a)(1)(B)

  	
   

  	
  5.13

  
	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
  (b)

  	
   

  	
  5.8

  
	
  (c)

  	
   

  	
  1.5 (f)

  

 

 

	
  TRUST
  INDENTURE ACT SECTION

  	
   

  	
  INDENTURE SECTION

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 317(a)(1)

  	
   

  	
   

  	
  5.3

  
	
  (a)(2)

  	
   

  	
   

  	
  5.4

  
	
  (b)

  	
   

  	
   

  	
  10.3

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 318(a)

  	
   

  	
   

  	
  1.8

  

 

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

 

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  PARTIES

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  RECITALS OF THE COMPANY:

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE ONE
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
  1

  
	
   

  	
  Section 1.1.

  	
  Definitions

  	
  1

  
	
   

  	
  Section 1.2.

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
  7

  
	
   

  	
  Section 1.3.

  	
  Compliance
  Certificates and Opinions

  	
  8

  
	
   

  	
  Section 1.4.

  	
  Form of
  Documents Delivered to Trustee

  	
  8

  
	
   

  	
  Section 1.5.

  	
  Acts
  of Holders; Record Dates

  	
  9

  
	
   

  	
  Section 1.6.

  	
  Notices,
  Etc., to Trustee and Company

  	
  10

  
	
   

  	
  Section 1.7.

  	
  Notice
  to Holders; Waiver

  	
  10

  
	
   

  	
  Section 1.8.

  	
  Conflict
  with Trust Indenture Act

  	
  11

  
	
   

  	
  Section 1.9.

  	
  Effect
  of Headings and Table of Contents

  	
  11

  
	
   

  	
  Section 1.10.

  	
  Successors
  and Assigns

  	
  11

  
	
   

  	
  Section 1.11.

  	
  Separability
  Clause

  	
  11

  
	
   

  	
  Section 1.12.

  	
  Benefits
  of Indenture

  	
  11

  
	
   

  	
  Section 1.13.

  	
  Governing
  Law

  	
  11

  
	
   

  	
  Section 1.14.

  	
  Legal
  Holidays

  	
  12

  
	
   

  	
  Section 1.15.

  	
  Securities
  in a Composite Currency, Currency Unit or Foreign Currency

  	
  12

  
	
   

  	
  Section 1.16.

  	
  Payment
  in Required Currency; Judgment Currency

  	
  13

  
	
   

  	
  Section 1.17.

  	
  Language
  of Notices, Etc.

  	
  13

  
	
   

  	
  Section 1.18.

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

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO SECURITY
  FORMS

  	
  13

  
	
   

  	
  Section 2.1.

  	
  Forms
  Generally

  	
  13

  
	
   

  	
  Section 2.2.

  	
  Form of
  Face of Security

  	
  16

  
	
   

  	
  Section 2.3.

  	
  Form of
  Reverse of Security

  	
  16

  
	
   

  	
  Section 2.4.

  	
  Global
  Securities

  	
  19

  
	
   

  	
  Section 2.5.

  	
  Form of
  Trustee’s Certificate of Authentication

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE THE
  SECURITIES

  	
  21

  
	
   

  	
  Section 3.1.

  	
  Amount
  Unlimited; Issuable in Series

  	
  21

  
	
   

  	
  Section 3.2.

  	
  Denominations

  	
  23

  
	
   

  	
  Section 3.3.

  	
  Execution,
  Authentication, Delivery and Dating

  	
  23

  
	
   

  	
  Section 3.4.

  	
  Temporary
  Securities

  	
  25

  
	
   

  	
  Section 3.5.

  	
  Registration,
  Registration of Transfer and Exchange

  	
  25

  
	
   

  	
  Section 3.6.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  	
  27

  
	
   

  	
  Section 3.7.

  	
  Payment
  of Interest; Interest Rights Preserved

  	
  28

  
	
   

  	
  Section 3.8.

  	
  Persons
  Deemed Owners

  	
  29

  
	
   

  	
  Section 3.9.

  	
  Cancellation

  	
  29

  
	
   

  	
  Section 3.10.

  	
  Computation
  of Interest

  	
  29

  
	
   

  	
  Section 3.11.

  	
  CUSIP
  or CINS Numbers

  	
  30

  
									

 

i

 

	
  ARTICLE FOUR
  SATISFACTION AND DISCHARGE

  	
  30

  
	
   

  	
  Section 4.1.

  	
  Satisfaction
  and Discharge of Indenture

  	
  30

  
	
   

  	
  Section 4.2.

  	
  Application
  of Trust Money

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE REMEDIES
  

  	
  31

  
	
   

  	
  Section 5.1.

  	
  Events
  of Default

  	
  31

  
	
   

  	
  Section 5.2.

  	
  Acceleration
  of Maturity; Rescission and Annulment

  	
  31

  
	
   

  	
  Section 5.3.

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
  32

  
	
   

  	
  Section 5.4.

  	
  Trustee
  May File Proofs of Claim

  	
  33

  
	
   

  	
  Section 5.5.

  	
  Trustee
  May Enforce Claims Without Possession of Securities

  	
  33

  
	
   

  	
  Section 5.6.

  	
  Application
  of Money Collected

  	
  34

  
	
   

  	
  Section 5.7.

  	
  Limitation
  on Suits

  	
  35

  
	
   

  	
  Section 5.8.

  	
  Unconditional
  Right of Holders to Receive Principal, Premium and Interest

  	
  35

  
	
   

  	
  Section 5.9.

  	
  Restoration
  of Rights and Remedies

  	
  35

  
	
   

  	
  Section 5.10.

  	
  Rights
  and Remedies Cumulative

  	
  36

  
	
   

  	
  Section 5.11.

  	
  Delay
  or Omission Not Waiver

  	
  36

  
	
   

  	
  Section 5.12.

  	
  Control
  by Holders

  	
  36

  
	
   

  	
  Section 5.13.

  	
  Waiver
  of Past Defaults

  	
  37

  
	
   

  	
  Section 5.14.

  	
  Undertaking
  for Costs

  	
  37

  
	
   

  	
  Section 5.15.

  	
  Waiver
  of Stay or Extension Laws

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX THE
  TRUSTEE

  	
  37

  
	
   

  	
  Section 6.1.

  	
  Certain
  Duties and Responsibilities

  	
  37

  
	
   

  	
  Section 6.2.

  	
  Notice
  of Defaults

  	
  38

  
	
   

  	
  Section 6.3.

  	
  Certain
  Rights of Trustee

  	
  38

  
	
   

  	
  Section 6.4.

  	
  Not
  Responsible for Recitals or Issuance of Securities

  	
  40

  
	
   

  	
  Section 6.5.

  	
  May Hold
  Securities

  	
  40

  
	
   

  	
  Section 6.6.

  	
  Money
  Held in Trust

  	
  40

  
	
   

  	
  Section 6.7.

  	
  Compensation
  and Reimbursement

  	
  40

  
	
   

  	
  Section 6.8.

  	
  Disqualification;
  Conflicting Interests

  	
  41

  
	
   

  	
  Section 6.9.

  	
  Corporate
  Trustee Required; Eligibility

  	
  41

  
	
   

  	
  Section 6.10.

  	
  Resignation
  and Removal; Appointment of Successor

  	
  41

  
	
   

  	
  Section 6.11.

  	
  Acceptance
  of Appointment by Successor

  	
  42

  
	
   

  	
  Section 6.12.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
  43

  
	
   

  	
  Section 6.13.

  	
  Preferential
  Collection of Claims Against Company

  	
  43

  
	
   

  	
  Section 6.14.

  	
  Appointment
  of Authenticating Agent

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN
  HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
  45

  
	
   

  	
  Section 7.1.

  	
  Company
  to Furnish Trustee Names and Addresses of Holders

  	
  45

  
	
   

  	
  Section 7.2.

  	
  Preservation
  of Information; Communications to Holders

  	
  45

  
	
   

  	
  Section 7.3.

  	
  Reports
  by Trustee

  	
  46

  
	
   

  	
  Section 7.4.

  	
  Reports
  by Company

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT
  CONSOLIDATION, AMALGAMATION, MERGER AND SALE

  	
  47

  
	
   

  	
  Section 8.1.

  	
  Company
  May Consolidate, Etc., Only On Certain Terms

  	
  47

  
	
   

  	
  Section 8.2.

  	
  Successor
  Substituted

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE
  AMENDMENT, SUPPLEMENT AND WAIVER

  	
  48

  
	
   

  	
  Section 9.1.

  	
  Without
  Consent of Holders

  	
  48

  
	
   

  	
  Section 9.2.

  	
  With
  Consent of Holders

  	
  50

  
	
   

  	
  Section 9.3.

  	
  Execution
  of Supplemental Indentures

  	
  51

  
											

 

ii

 

	
   

  	
  Section 9.4.

  	
  Effect
  of Supplemental Indentures

  	
  51

  
	
   

  	
  Section 9.5.

  	
  Conformity
  with Trust Indenture Act

  	
  52

  
	
   

  	
  Section 9.6.

  	
  Reference
  in Securities to Supplemental Indentures

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN COVENANTS

  	
  52

  
	
   

  	
  Section 10.1.

  	
  Payment
  of Principal, Premium and Interest

  	
  52

  
	
   

  	
  Section 10.2.

  	
  Maintenance
  of Office or Agency

  	
  52

  
	
   

  	
  Section 10.3.

  	
  Money
  for Securities Payments to Be Held in Trust

  	
  53

  
	
   

  	
  Section 10.4.

  	
  Existence

  	
  54

  
	
   

  	
  Section 10.5.

  	
  Statement
  by Officers as to Default

  	
  54

  
	
   

  	
  Section 10.6.

  	
  Additional
  Amounts

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN
  REDEMPTION OF SECURITIES

  	
  55

  
	
   

  	
  Section 11.1.

  	
  Applicability
  of Article

  	
  55

  
	
   

  	
  Section 11.2.

  	
  Election
  to Redeem; Notice to Trustee

  	
  55

  
	
   

  	
  Section 11.3.

  	
  Selection
  by Trustee of Securities to Be Redeemed

  	
  55

  
	
   

  	
  Section 11.4.

  	
  Notice
  of Redemption

  	
  56

  
	
   

  	
  Section 11.5.

  	
  Deposit
  of Redemption Price

  	
  56

  
	
   

  	
  Section 11.6.

  	
  Securities
  Payable on Redemption Date

  	
  56

  
	
   

  	
  Section 11.7.

  	
  Securities
  Redeemed in Part

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE
  SINKING FUNDS

  	
  57

  
	
   

  	
  Section 12.1.

  	
  Applicability
  of Article

  	
  57

  
	
   

  	
  Section 12.2.

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
  57

  
	
   

  	
  Section 12.3.

  	
  Redemption
  of Securities for Sinking Fund

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN
  DEFEASANCE

  	
  58

  
	
   

  	
  Section 13.1.

  	
  Option
  to Effect Legal Defeasance or Covenant Defeasance

  	
  58

  
	
   

  	
  Section 13.2.

  	
  Legal
  Defeasance and Discharge

  	
  58

  
	
   

  	
  Section 13.3.

  	
  Covenant
  Defeasance

  	
  59

  
	
   

  	
  Section 13.4.

  	
  Conditions
  to Legal or Covenant Defeasance

  	
  59

  
	
   

  	
  Section 13.5.

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

  	
  60

  
	
   

  	
  Section 13.6.

  	
  Repayment

  	
  61

  
	
   

  	
  Section 13.7.

  	
  Reinstatement

  	
  61

  
											

 

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

 

iii

 

 

PARTIES

 

INDENTURE, dated as of April 15, 2008, between GLOBALSTAR, INC., a
corporation duly organized and existing under the laws of the State of Delaware
(herein called the “Company”) and U.S. BANK, NATIONAL ASSOCIATION, a banking
corporation organized under the laws of the United States, as trustee (the “Trustee”).

 

RECITALS OF
THE COMPANY:

 

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

 

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

 

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

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION

 

Section 1.1.            Definitions.

 

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

 

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

 

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

 

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

 

(d)   the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Indenture as a whole and not to
any particular Article, Section or other subdivision;

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“CINS”
means the CUSIP International Numbering System.

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Default”
means, with respect to a series of Securities, any event that is, or after
notice or lapse of time or both would be, an Event of Default.

 

“Defaulted
Interest” has the meaning specified in Section 3.7.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

“Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof, including, for all purposes
of this instrument, and any such supplemental indenture, the provisions of the
Trust Indenture Act that are deemed to be part of and govern this instrument
and any such supplemental indenture, respectively.  The term “Indenture” also shall include the
terms of a particular series of Securities established as contemplated by Section 3.1.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 1.2.            Incorporation by Reference of
Trust Indenture Act

 

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

 

“commission”
means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Holder.

 

“indenture to be qualified” means this Indenture.

 

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

 

7

 

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

 

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

 

Section 1.3.            Compliance Certificates and
Opinions.

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 1.4.            Form of Documents Delivered
to Trustee.

 

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

 

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

 

8

 

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

 

Section 1.5.            Acts of Holders; Record Dates.

 

(a)   Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed (either physically or by
means of a facsimile or an electronic transmission, provided
that such electronic transmission is transmitted through the facilities of a
Depositary) by such Holders in person or by agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is hereby expressly required, to the Company.  Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or instruments.  Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Section 315 of the Trust Indenture Act)
conclusive in favor of the Trustee and the Company if made in the manner
provided in this Section.

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

If to the Company:

 

c/o Globalstar, Inc.

461 So. Milpitas Blvd

Milpitas, CA 95035

Facsimile:  408-933-4949

Attention:  Chief Financial Officer

 

If to the Trustee:

 

U.S. Bank National Association, as Trustee 

Corporate Trust Dept. CN-OH-W6CT

425 Walnut Street

Cincinnati, OH 45202

Facsimile:  513-632-5511

 

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

 

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

 

Section 1.7.            Notice to Holders; Waiver.

 

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

 

Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the

 

10

 

equivalent of such notice.  Waivers of notice by Holders shall be filed
with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

 

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

 

Section 1.8.            Conflict
with Trust Indenture Act.

 

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

 

Section 1.9.            Effect
of Headings and Table of Contents.

 

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

 

Section 1.10.          Successors and Assigns.

 

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

 

Section 1.11.          Separability Clause.

 

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

 

Section 1.12.          Benefits of Indenture.

 

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

 

Section 1.13.          Governing Law.

 

THIS INDENTURE AND THE SECURITIES
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

 

Section 1.14.          Legal Holidays.

 

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

 

11

 

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

 

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

 

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

 

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

 

Section 1.16.          Payment in Required Currency;
Judgment Currency.

 

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

 

12

 

Section 1.17.          Language
of Notices, Etc.

 

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

 

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

 

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

 

ARTICLE TWO

SECURITY FORMS

 

Section 2.1.            Forms
Generally.

 

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

 

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

 

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

 

Section 2.2.            Form of
Face of Security.

 

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

 

13

 

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

 

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

 

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

 

GLOBALSTAR, INC.

 

[TITLE OF SECURITY]

 

	
  No              

  	
   

  	
  U.S.
  $.                 

  

 

[CUSIP No.  ]

 

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

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

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

 

	
  Dated:

  	
   

  
	
   

  	
  GLOBALSTAR,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

15

 

Section 2.3.            Form of
Reverse of Security.

 

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

 

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

 

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

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  	
  Year

  	
   

  	
  Redemption Price

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

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

 

16

 

	
  Year

  	
   

  	
  Redemption Price for 

  Redemption Through 

  Operation of the Sinking Fund

  	
   

  	
  Redemption Price for 

  Redemption Otherwise Than 

  Through Operation of the 

  Sinking Fund

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

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

 

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

 

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

 

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

	
   

  
	
  (Please Print or
  Typewrite Name and Address of Assignee)

  

 

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

 

Please Insert Social Security or Other Identifying
Number of Assignee:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Signature)

  
					

 

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

 

Section 2.4.            Global
Securities.

 

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

 

19

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	
   

  	
                                                                                          ,

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

20

 

ARTICLE THREE

THE SECURITIES

 

Section 3.1.            Amount
Unlimited; Issuable in Series.

 

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

 

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

 

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

 

(b)   any limit
upon the aggregate principal amount of the Securities of the series which may
be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to Section 3.4,
Section 3.5, Section 3.6, Section 9.6 or Section 11.7 and
except for any Securities which, pursuant to Section 3.3, are deemed never
to have been authenticated and delivered hereunder);

 

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

 

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

 

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

 

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

 

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

 

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

 

21

 

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

 

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

 

(k)   if other
than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 5.2;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise
be provided in or pursuant to the Board Resolution referred to above and 

 

22

 

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

 

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

 

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

 

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

 

Section 3.2.            Denominations.

 

The Securities of each series shall be issuable in
registered form without coupons in such denominations as shall be specified as
contemplated by Section 3.1.  In the
absence of any such provisions with respect to the Securities of any series,
the Securities of such series shall be issuable in denominations of $1,000 and
any integral multiple thereof.

 

Section 3.3.            Execution,
Authentication, Delivery and Dating.

 

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

 

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

 

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

 

23

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Each Security shall be dated the date of its
authentication.

 

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

 

24

 

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

 

Section 3.4.            Temporary
Securities.

 

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

 

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

 

Section 3.5.            Registration,
Registration of Transfer and Exchange.

 

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

 

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

 

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

 

25

 

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

 

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

 

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

 

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

 

Notwithstanding any other provisions of this Indenture
and except as otherwise specified with respect to any particular series of
Securities as contemplated by Section 3.1, a Global Security representing
all or a portion of the Securities of a series may not be transferred, except
as a whole by the Depositary for such series to a nominee of such Depositary or
by a nominee of such Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a successor Depositary
for such series or a nominee of such successor Depositary.  Every Security authenticated and delivered
upon registration of, transfer of, or in exchange for or in lieu of, a Global Security
shall be a Global Security except as provided in the two paragraphs immediately
following.

 

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

 

The Company may at any time and in its sole discretion
determine that the Securities of any series issued in the form of one or more
Global Securities shall no longer be represented by a Global Security or
Securities.  In such event, the Company
will execute and the Trustee, upon receipt of a Company Order for the
authentication and delivery of the Definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive registered
form without coupons, in any authorized denominations, in an aggregate
principal amount equal to the principal amount of the Global 

 

26

 

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

 

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

 

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

 

(b)   to such
Depositary, a new Global Security in a denomination equal to the difference, if
any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of Securities authenticated and delivered pursuant
to clause (a) above.

 

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

 

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

 

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

 

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

 

(d)   none of the
Company, the Trustee, nor any agent of any of them will have any responsibility
or liability for any aspect of the records relating to or payments made on
account of beneficial ownership interests of a Global Security or for
maintaining, supervising or reviewing any records relating to such beneficial
ownership interests.

 

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

 

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

 

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

 

27

 

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

 

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

 

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

 

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

 

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

 

Section 3.7.            Payment
of Interest; Interest Rights Preserved.

 

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

 

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

 

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

 

28

 

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

 

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

 

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

 

Section 3.8.            Persons
Deemed Owners.

 

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

 

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

 

Section 3.9.            Cancellation.

 

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

 

Section 3.10.          Computation
of Interest.

 

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

 

29

 

Section 3.11.                             CUSIP or CINS Numbers.

 

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

 

ARTICLE FOUR

SATISFACTION AND DISCHARGE

 

Section 4.1.                                   Satisfaction and Discharge of Indenture.

 

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

 

(a)          either

 

(i)                                     all such Securities theretofore
authenticated and delivered (other than (A) such Securities which have
been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 3.6, and (B) such Securities for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 10.3) have been delivered to the Trustee for
cancellation; or

 

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

 

(A)                              have become due and payable, or

 

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

 

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

 

and the Company, in the case of (A), (B) or (C) above, has
deposited or caused to be deposited with the Trustee as trust funds in trust
for such purpose an amount sufficient to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal (and premium, if any) and interest to the date of
such deposit (in the case of Securities which have become due and payable) or
to the Stated Maturity or Redemption Date, as the case may be, together with
instructions from the Company irrevocably directing the Trustee to apply such
funds to the payment thereof at maturity or redemption, as the case may be;

 

30

 

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

 

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

 

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

 

Section 4.2.                                   Application of Trust Money.

 

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

 

ARTICLE FIVE

REMEDIES

 

Section 5.1.                                   Events of Default.

 

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

 

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

 

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

 

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

 

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

 

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

 

31

 

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

 

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

 

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

 

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

 

Section 5.2.                                   Acceleration of Maturity; Rescission and
Annulment.

 

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

 

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

 

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

 

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

 

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

 

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

 

32

 

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

 

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

 

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

 

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

 

The Company
covenants that if:

 

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

 

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

 

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

 

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

 

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

 

Section 5.4.                                   Trustee May File Proofs of Claim.

 

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

 

33

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 5.6.                                   Application of Money Collected.

 

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

 

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

 

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

 

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

 

34

 

Section 5.7.                                   Limitation on Suits.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 5.9.                                   Restoration of Rights and Remedies.

 

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

 

Section 5.10.                             Rights and Remedies Cumulative.

 

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

 

35

 

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

 

Section 5.11.                             Delay or Omission Not Waiver.

 

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

 

Section 5.12.                             Control by Holders.

 

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

 

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

 

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

 

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

 

Section 5.13.                             Waiver of Past Defaults.

 

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

 

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

 

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

 

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

 

36

 

Section 5.14.                             Undertaking for Costs.

 

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

 

Section 5.15.                             Waiver of Stay or Extension Laws.

 

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

 

ARTICLE SIX

THE TRUSTEE

 

Section 6.1.                                   Certain Duties and Responsibilities.

 

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

 

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

 

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

 

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

 

37

 

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

 

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

 

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

 

(iii)                               the Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders of a majority in principal amount
of the Outstanding Securities of any series, given pursuant to Section 5.12,
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture with respect to the Securities of such
series; and

 

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

 

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

 

Section 6.2.                                   Notice of Defaults.

 

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

 

Section 6.3.                                   Certain Rights of Trustee.

 

Subject to the
provisions of Section 6.1:

 

(a)          the Trustee may conclusively rely and
shall be fully protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other

 

38

 

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

 

(b)         any request or direction of the Company
mentioned herein shall be sufficiently evidenced by a Company Request or
Company Order (other than delivery of any Security to the Trustee for
authentication and delivery pursuant to Section 3.3, which shall be
sufficiently evidenced as provided therein) and any resolution of the Board of
Directors may be sufficiently evidenced by a Board Resolution;

 

(c)          whenever in the administration of this Indenture the
Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless other
evidence be herein specifically prescribed) shall be entitled to receive and
may, in the absence of bad faith on its part, rely upon an Officer’s
Certificate;

 

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

 

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

 

(f)            the Trustee shall not be bound to make
any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney;

 

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

 

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

 

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

 

(j)             the Trustee shall not be deemed to have
notice of any Default or Event of Default unless a Responsible Officer of the
Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a default is received by the Trustee at the Corporate
Trust Office of the Trustee, and such notice references the Notes and this
Indenture.

 

39

 

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

 

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

 

Section 6.5.                                   May Hold Securities.

 

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

 

Section 6.6.                                   Money Held in Trust.

 

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

 

Section 6.7.                                   Compensation and Reimbursement.

 

The Company
agrees:

 

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

 

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

 

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

 

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

 

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

 

40

 

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

 

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

 

Section 6.8.                                   Disqualification; Conflicting Interests.

 

Reference is made
to Section 310(b) of the Trust Indenture Act.  There shall be excluded from the operation of

Section 310(b)(1) of the Trust Indenture Act this Indenture with respect
to the Securities of more than one series.

 

Section 6.9.                                   Corporate Trustee Required; Eligibility.

 

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

 

Section 6.10.                             Resignation and Removal; Appointment of Successor.

 

(a)          No resignation or removal of the Trustee
and no appointment of a successor Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the successor Trustee
in accordance with the applicable requirements of Section 6.11.

 

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

 

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

 

(d)         If at any time:

 

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

 

41

 

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

 

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

 

(e)          If the Trustee shall resign, be removed
or become incapable of acting, or if a vacancy shall occur in the office of
Trustee for any cause, with respect to the Securities of one or more series,
the Company, by a Board Resolution, shall promptly appoint a successor Trustee
or Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the
Securities of one or more or all of such series and that at any time there
shall be only one Trustee with respect to the Securities of any particular series)
and shall comply with the applicable requirements of Section 6.11.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of Section 6.11, become the successor
Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company.  If no successor Trustee with respect to the
Securities of any series shall have been so appointed by the Company or the
Holders and accepted appointment in the manner required by Section 6.11,
any Holder who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

 

(f)            The Company shall give notice of each
resignation and each removal of the Trustee with respect to the Securities of
any series and each appointment of a successor Trustee with respect to the
Securities of any series to all Holders of Securities of such series in the
manner provided in Section 1.7. 
Each notice shall include the name of the successor Trustee with respect
to the Securities of such series and the address of its Corporate Trust Office.

 

Section 6.11.                             Acceptance of Appointment by Successor.

 

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

 

42

 

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

 

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

 

(d)         No successor Trustee shall accept its
appointment unless at the time of such acceptance such successor Trustee shall
be qualified and eligible under this Article and the Trust Indenture Act.

 

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

 

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

 

Section 6.13.                             Preferential Collection of Claims Against
Company.

 

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

 

43

 

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

 

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

 

Section 6.14.                             Appointment of Authenticating Agent.

 

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

 

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

 

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

 

44

 

which
such Authenticating Agent will serve, as their names and addresses appear in
the Security Register.  Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent.  No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

 

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

 

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

 

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

 

	
   

  	
  ,

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  As
  Authenticating Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  
				

 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

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

 

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

 

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

 

(b)         at such other times as the Trustee may
request in writing, within 30 days after the receipt by the Company of any such
request, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished; provided, however, that if and so long as the Trustee shall be the
Security Registrar, no such list need be furnished with respect to such series
of Securities.

 

Section 7.2.                                   Preservation of Information;
Communications to Holders.

 

(a)          The Trustee shall preserve, in as current
a form as is reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as provided in Section 7.1
and the names and addresses of Holders received by the Trustee in its

 

45

 

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

 

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

 

(i)                                     afford such applicants access to the
information preserved at the time by the Trustee in accordance with Section 7.2(a),
or

 

(ii)                                  inform such applicants as to the
approximate number of Holders whose names and addresses appear in the
information preserved at the time by the Trustee in accordance with Section 7.2(a),
and as to the approximate cost of mailing to such Holders the form of proxy or
other communication, if any, specified in such application.

 

If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each Holder whose name and address appear in the information preserved
at the time by the Trustee in accordance with Section 7.2(a) a copy
of the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender the Trustee shall mail to
such applicants and file with the SEC, together with a copy of the material to
be mailed, a written statement to the effect that, in the opinion of the
Trustee, such mailing would be contrary to the best interest of the Holders or
would be in violation of applicable law. 
Such written statement shall specify the basis of such opinion.  If the SEC, after opportunity for a hearing
upon the objections specified in the written statement so filed, shall enter an
order refusing to sustain any of such objections or if, after the entry of an
order sustaining one or more of such objections, the SEC shall find, after
notice and opportunity for hearing, that all the objections so sustained have
been met and shall enter an order so declaring, the Trustee shall mail copies
of such material to all such Holders with reasonable promptness after the entry
of such order and the renewal of such tender; otherwise the Trustee shall be
relieved of any obligation or duty to such applicants respecting their application.

 

(c)          Every Holder of Securities, by receiving
and holding the same, agrees with the Company and the Trustee that none of the
Company nor the Trustee nor any agent of any of them shall be held accountable
by reason of the disclosure of any such information as to the names and
addresses of the Holders in accordance with Section 7.2(b), regardless of
the source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a request
made under Section 7.2(b).

 

Section 7.3.                                   Reports by Trustee.

 

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

 

46

 

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

 

Section 7.4.                                   Reports by Company.

 

The Company shall:

 

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

 

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

 

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

 

ARTICLE EIGHT

CONSOLIDATION, AMALGAMATION, MERGER AND SALE

 

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

 

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

 

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

 

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

 

47

 

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

 

(c)          immediately before and after giving pro
forma effect to such transaction, no Event of Default, and no event which,
after notice or lapse of time or both, would become an Event of Default, shall
have occurred and be continuing; and

 

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

 

Section 8.2.                                   Successor Substituted.

 

Upon any
consolidation or merger of the Company with or into any other Person or any
sale, conveyance, transfer, lease or other disposition of all or substantially
all of the properties and assets of the Company on a consolidated basis in
accordance with Section 8.1, the successor or resulting Person formed by
or resulting upon such consolidation or merger (if other than the Company) or
to which such sale, conveyance, transfer, lease or other disposition is made
shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, except
in the case of a lease, the predecessor Company shall be relieved of all
obligations and covenants under this Indenture and the Securities.

 

ARTICLE NINE

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.1.                                   Without Consent of Holders.

 

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

 

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

 

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

 

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

 

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

 

48

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

49

 

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

 

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

 

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

 

Section 9.2.                                   With Consent of Holders.

 

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

 

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

 

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

 

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

 

50

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 9.3.                                   Execution of Supplemental Indentures.

 

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

 

Section 9.4.                                   Effect of Supplemental Indentures.

 

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

 

51

 

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

 

Section 9.5.                                   Conformity with Trust Indenture Act.

 

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

 

Section 9.6.                                   Reference in Securities to Supplemental
Indentures.

 

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

 

ARTICLE TEN

COVENANTS

 

Section 10.1.                             Payment of Principal, Premium and
Interest.

 

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

 

Section 10.2.                             Maintenance of Office or Agency.

 

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

 

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

 

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

 

52

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

53

 

such Paying Agent, before being required to make any
such repayment, may at the expense of the Company cause to be published once,
in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in the Borough of Manhattan, The City
of New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

 

Section 10.4.                             Existence.

 

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

 

Section 10.5.                             Statement by Officers as to Default.

 

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

 

Section 10.6.                             Additional Amounts.

 

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

 

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

 

54

 

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

 

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

 

Section 11.1.                             Applicability of Article.

 

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

 

Section 11.2.                             Election to Redeem; Notice to Trustee.

 

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

 

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

 

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

 

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

 

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

 

55

 

Section 11.4.                             Notice of Redemption.

 

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

 

All notices of redemption shall state:

 

(a)          the Redemption Date,

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 11.5.                             Deposit of Redemption Price.

 

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

 

Section 11.6.                             Securities Payable on Redemption Date.

 

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

 

56

 

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

 

Section 11.7.                             Securities Redeemed in Part.

 

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

 

ARTICLE TWELVE

SINKING FUNDS

 

Section 12.1.                             Applicability of Article.

 

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

 

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

 

Section 12.2.                             Satisfaction of Sinking Fund Payments
with Securities.

 

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

 

Section 12.3.                             Redemption of Securities for Sinking Fund.

 

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

 

57

 

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

 

ARTICLE THIRTEEN

DEFEASANCE

 

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

 

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

 

Section 13.2.                             Legal Defeasance and Discharge.

 

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

 

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

 

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

 

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

 

(d)         this Article Thirteen.

 

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

 

58

 

Section 13.3.                             Covenant Defeasance.

 

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

 

Section 13.4.                             Conditions to Legal or Covenant
Defeasance.

 

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

 

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

 

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

 

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

 

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

 

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

 

59

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

60

 

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

 

Section 13.6.                             Repayment.

 

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal
of, premium, if any, or interest on any Security and remaining unclaimed for
two years after such principal, premium, if any, or interest has become due and
payable shall be paid to the Company on its request or (if then held by the
Company) will be discharged from such trust; and the Holder of such Security
will thereafter be permitted to look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof, will
thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in the New York
Times and The Wall Street Journal (national edition), notice that such money
remains unclaimed and that, after a date specified therein, which will not be
less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

 

Section 13.7.                             Reinstatement.

 

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

 

* * *

 

61

 

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

 

IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.

 

	
   

  	
  GLOBALSTAR, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fuad Ahmad

  
	
   

  	
  Name: Fuad Ahmad

  
	
   

  	
  Title: Vice
  President & Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK,
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack C.
  Hannah

  
	
   

  	
  Name: Jack C.
  Hannah

  
	
   

  	
  Title: Assistant
  Vice President & Trust Officer

  

 

62

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